-CITE-
    42 USC CHAPTER 8 - LOW-INCOME HOUSING                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
                      CHAPTER 8 - LOW-INCOME HOUSING                  

-MISC1-
    Sec.                                                     
    1401 to
     1404.      Omitted.                                          
    1404a.      Secretary of Housing and Urban Development; right
                     to sue; expenses.                                
    1405, 1406. Omitted.                                          
    1406a.      Expenses of management and operation of
                     transferred projects as nonadministrative;
                     payment.                                         
    1406b.      Expenses of uncompensated advisers serving United
                     States Housing Authority away from home.         
    1406c to
     1433.      Omitted or Repealed.                              
    1434.       Records; contents; examination and audit.         
    1435.       Access to books, documents, etc., for purpose of
                     audit.                                           
    1436.       Repealed.                                         
    1436a.      Restriction on use of assisted housing by
                     non-resident aliens.                             
    1436b.      Financial assistance in impacted areas.           
    1436c.      Insurance for public housing agencies and Indian
                     housing authorities.                             
    1436d.      Consultation with affected areas in settlement of
                     litigation.                                      

            SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING        
    1437.       Declaration of policy and public housing agency
                     organization.                                    
    1437a.      Rental payments.                                  
    1437a-1.    Repealed.                                         
    1437b.      Loans and commitments to make loans for low-income
                     housing projects.                                
    1437c.      Contributions for low-income housing projects.    
    1437c-1.    Public housing agency plans.                      
    1437d.      Contract provisions and requirements; loans and
                     annual contributions.                            
    1437e.      Designated housing for elderly and disabled
                     families.                                        
    1437f.      Low-income housing assistance.                    
    1437g.      Public housing Capital and Operating Funds.       
    1437h.      Implementation of provisions by Secretary.        
    1437i.      Obligations of public housing agencies;
                     contestability; full faith and credit of United
                     States pledged as security; tax exemption.       
    1437j.      Labor standards and community service requirement.
    1437j-1.    Repealed.                                         
    1437k.      Consortia, joint ventures, affiliates, and
                     subsidiaries of public housing agencies.         
    1437l.      Repealed.                                         
    1437m.      Payment of non-Federal share.                     
    1437n.      Eligibility for assisted housing.                 
    1437o.      Repealed.                                         
    1437p.      Demolition and disposition of public housing.     
    1437q.      Financing limitations.                            
    1437r.      Public housing resident management.               
    1437s.      Public housing homeownership and management
                     opportunities.                                   
    1437t.      Authority to convert public housing to vouchers.  
    1437u.      Family Self-Sufficiency program.                  
    1437v.      Demolition, site revitalization, replacement
                     housing, and tenant-based assistance grants for
                     projects.                                        
    1437w.      Transfer of management of certain housing to
                     independent manager at request of residents.     
    1437x.      Environmental reviews.                            
    1437y.      Provision of information to law enforcement and
                     other agencies.                                  
    1437z.      Exchange of information with law enforcement
                     agencies.                                        
    1437z-1.    Civil money penalties against section 1437f
                     owners.                                          
    1437z-2.    Public housing mortgages and security interests.  
    1437z-3.    Pet ownership in public housing.                  
    1437z-4.    Resident homeownership programs.                  
    1437z-5.    Required conversion of distressed public housing
                     to tenant-based assistance.                      
    1437z-6.    Services for public and Indian housing residents. 
    1437z-7.    Mixed-finance public housing.                     

      SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES  
    1437aa to 1437ee. Repealed.                                       
    1437ff.     Transferred.                                      

          SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP      
    1437aaa.    Program authority.                                
    1437aaa-1.  Planning grants.                                  
    1437aaa-2.  Implementation grants.                            
    1437aaa-3.  Homeownership program requirements.               
    1437aaa-4.  Other program requirements.                       
    1437aaa-5.  Definitions.                                      
    1437aaa-6.  Relationship to other homeownership opportunities.
    1437aaa-7.  Limitation on selection criteria.                 
    1437aaa-8.  Annual report.                                    

         SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION     
    1437bbb.    Purpose.                                          
    1437bbb-1.  Flexible grant program.                           
    1437bbb-2.  Program allocation and covered housing assistance.
    1437bbb-3.  Applicability of requirements under programs for
                     covered housing assistance.                      
    1437bbb-4.  Program requirements.                             
    1437bbb-5.  Application.                                      
    1437bbb-6.  Training.                                         
    1437bbb-7.  Accountability.                                   
    1437bbb-8.  Definitions.                                      
    1437bbb-9.  Termination and evaluation.                       

                 SUBCHAPTER III - MISCELLANEOUS PROVISIONS             
    1438.       Repealed.                                         
    1439.       Local housing assistance plan.                    
    1440.       State housing finance and development agencies.   

-End-



-CITE-
    42 USC Secs. 1401 to 1404                                   01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1401 to 1404. Omitted

-COD-
                               CODIFICATION                           
      Sections 1401 to 1404 were omitted in the general revision of the
    United States Housing Act of 1937 by Pub. L. 93-383, title II, Sec.
    201(a), Aug. 22, 1974, 88 Stat. 653.
      Section 1401, acts Sept. 1, 1937, ch. 896, Sec. 1, 50 Stat. 888;
    July 15, 1949, 338, title III, Sec. 307(a), 63 Stat. 429; Sept. 23,
    1959, Pub. L. 86-372, title V, Sec. 501, 73 Stat. 679; Aug. 1,
    1968, Pub. L. 90-448, title II, Sec. 206(a), 82 Stat. 504; Dec. 31,
    1970, Pub. L. 91-609, title II, Sec. 211, 84 Stat. 1779, set out
    declaration of policy. See section 1437 of this title.
      Section 1402, acts, Sept. 1, 1937, ch. 896, Sec. 2, 50 Stat. 888;
    July 15, 1949, ch. 338, title III, Secs. 302(b), 304(c), (i), 306,
    307(b), 63 Stat. 424, 425, 429; Oct. 26, 1951, ch. 577, Sec. 1, 65
    Stat. 647; June 30, 1953, 170, Sec. 24(c), 67 Stat. 128; Aug. 7,
    1956, ch. 1029, title IV, Sec. 404(a), 70 Stat. 1104; July 12,
    1957, Pub. L. 85-104, title III, Sec. 307, title IV, Sec. 401(a),
    71 Stat. 301; Sept. 23, 1959, Pub. L. 86-372, title V, Secs. 502,
    503(a), 504, 73 Stat. 680; June 30, 1961, Pub. L. 87-70, title II,
    Sec. 202, 75 Stat. 163; Sept. 2, 1964, Pub. L. 88-560, title II,
    Sec. 203(d), title IV, Sec. 401(a), 78 Stat. 784, 794; Aug. 10,
    1965, Pub. L. 89-117, title I, Secs. 103(b), 104, 79 Stat. 457;
    Aug. 1, 1968, Pub. L. 90-448, title II, Sec. 209(a), 82 Stat. 505;
    Dec. 24, 1969, Pub. L. 91-152, title II, Sec. 213(a), title IV,
    Sec. 403(a), 83 Stat. 389, 395; Dec. 31, 1970, Pub. L. 91-609,
    title II, Sec. 208(a), title IX, Sec. 903(c), 84 Stat. 1778, 1808;
    Dec. 22, 1971, Pub. L. 92-213, Sec. 9, 85 Stat. 776, defined
    applicable terms. See section 1437a of this title.
      Section 1403, acts Sept. 1, 1937, ch. 896, Sec. 3, 50 Stat. 889;
    May 25, 1967, Pub. L. 90-19, Sec. 2(b), 81 Stat. 20; Aug. 1, 1968,
    Pub. L. 90-448, title XVII, Sec. 1719(a), 82 Stat. 610, created the
    United States Housing Authority in the Department of Housing and
    Urban Development.
      Section 1404, acts Sept. 1, 1937, ch. 896, Sec. 4, 50 Stat. 889;
    Oct. 28, 1949, ch. 782, title XI, Sec. 1106(a), 63 Stat. 972; May
    25, 1967, Pub. L. 90-19, Sec. 2(a), (c), 81 Stat. 19, 20, provided
    for assistance of officers, etc., of other agencies and transfer of
    property to the Authority.


-MISC1-
              EFFECTIVE DATE OF 1969 AMENDMENT; APPLICABILITY          
      Section 213(b) of Pub. L. 91-152 provided that the rents fixed by
    public housing agencies not exceed one-fourth of a low-rent housing
    tenant's income be effective not later than ninety days after Dec.
    24, 1969, and that the requirements not apply in any case in which
    the Secretary of Housing and Urban Development determined that
    limiting the rent of any tenant or class of tenants would have
    resulted in a deduction in the amount of welfare assistance which
    would otherwise have been provided to the tenant or class of
    tenants by a public agency.

-End-



-CITE-
    42 USC Sec. 1404a                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1404a. Secretary of Housing and Urban Development; right to
      sue; expenses

-STATUTE-
      The Secretary of Housing and Urban Development may sue and be
    sued only with respect to its functions under the United States
    Housing Act of 1937, as amended [42 U.S.C. 1437 et seq.], and title
    II of Public Law 671, Seventy-sixth Congress, approved June 28,
    1940, as amended [42 U.S.C. 1501 et seq.]. Funds made available for
    carrying out the functions, powers, and duties of the Secretary of
    Housing and Urban Development (including appropriations therefor,
    which are authorized) shall be available, in such amounts as may
    from year to year be authorized by the Congress, for the
    administrative expenses of the Secretary of Housing and Urban
    Development. Notwithstanding any other provisions of law except
    provisions of law enacted after August 10, 1948 expressly in
    limitation hereof, the Secretary of Housing and Urban Development,
    or any State or local public agency administering a low-rent
    housing project assisted pursuant to the United States Housing Act
    of 1937 or title II of Public Law 671, Seventy-sixth Congress,
    approved June 38, 1940, shall continue to have the right to
    maintain an action or proceeding to recover possession of any
    housing accommodations operated by it where such action is
    authorized by the statute or regulations under which such housing
    accommodations are administered, and, in determining net income for
    the purposes of tenant eligibility with respect to low-rent housing
    projects assisted pursuant to said Acts, the Secretary of Housing
    and Urban Development is authorized, where it finds such action
    equitable and in the public interest, to exclude amounts or
    portions thereof paid by the United States Government for
    disability or death occurring in connection with military service.

-SOURCE-
    (Aug. 10, 1948, ch. 832, title V, Sec. 502(b), 62 Stat. 1284; Oct.
    28, 1949, ch. 782, title XI, Sec. 1106(a), 63 Stat. 972; Pub. L. 90-
    19, Sec. 5(d)(4)-(7), May 25, 1967, 81 Stat. 21; Pub. L. 100-242,
    title V, Sec. 570(a)(2), Feb. 5, 1988, 101 Stat. 1949.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The United States Housing Act of 1937, referred to in text, is
    act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and amended,
    which is classified generally to this chapter (Sec. 1437 et seq.).
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1437 of this title and Tables.
      Public Law 671, Seventy-sixth Congress, approved June 28, 1940,
    referred to in text, is act June 28, 1940, ch. 440, 54 Stat. 676,
    as amended. Title II of that Act is classified generally to
    subchapter I (Sec. 1501 et seq.) of chapter 9 of this title. For
    complete classification of this Act to the Code, see Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Housing Act of 1948, and not
    as part of the United States Housing Act of 1937 which comprises
    this chapter.
      Section 502 of act Aug. 10, 1948, is classified generally to
    section 1701c of Title 12, Banks and Banking.


-MISC1-
                                AMENDMENTS                            
      1988 - Pub. L. 100-242 substituted "Secretary of Housing and
    Urban Development" for "United States Housing Authority" in three
    places and for "Authority" in two places.
      1967 - Pub. L. 90-19 substituted "United States Housing
    Authority" for "Public Housing Administration" wherever appearing
    in first and fourth sentences, "Authority" for "Administration"
    wherever appearing in third sentence, and "may sue" for "shall sue"
    in first sentence, and struck out former second sentence
    authorizing the Public Housing Commissioner to appoint necessary
    officers and employees subject to the civil-service and
    classification laws, to delegate his functions and powers, and to
    make rules and regulations, respectively.
      1949 - Act Oct. 28, 1949, substituted "Classification Act of
    1949" for "Classification Act of 1923".

                                  REPEALS                              
      Act Oct. 28, 1949, ch. 782, cited as a credit to this section,
    was repealed (subject to a savings clause) by Pub. L. 89-554, Sept.
    6, 1966, Sec. 8, 80 Stat. 632, 655.

-End-



-CITE-
    42 USC Secs. 1405, 1406                                     01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1405, 1406. Omitted

-MISC1-
      Section 1405, acts Sept. 1, 1937, ch. 896, Sec. 5, 50 Stat. 890;
    May 25, 1967, Pub. L. 90-19, Sec. 2(d), (e), 81 Stat. 20, which
    enumerated miscellaneous powers and functions of the Authority, was
    omitted in the general revision of the United States Housing Act of
    1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88
    Stat. 653.
      Section 1406, acts Sept. 1, 1937, ch. 896, Sec. 6, 50 Stat. 890;
    July 15, 1949, ch. 338, title III, Sec. 307(c), 63 Stat. 429; Oct.
    31, 1951, ch. 654, Sec. 1(112), 65 Stat. 705; May 25, 1967, Pub. L.
    90-19, Sec. 2(a), 81 Stat. 19, which enumerated financial
    provisions applicable to the Authority, was omitted in the general
    revision of the United States Housing Act of 1937 by Pub. L. 93-
    383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653. Subsec.
    (b) of this section, which provided that section 5 of title 41 not
    apply to contracts for services or to purchases of supplies except
    when the aggregate amount involved was less than $300, was repealed
    by act Oct. 31, 1951, ch. 654, Sec. 1(112), 65 Stat. 705.

-End-



-CITE-
    42 USC Sec. 1406a                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1406a. Expenses of management and operation of transferred
      projects as nonadministrative; payment

-STATUTE-
      On and after May 10, 1939 all necessary expenses in connection
    with the management and operation of projects transferred to the
    Authority by Executive Order Numbered 7732 of October 27, 1937, as
    modified by Executive Order Numbered 7839 of March 12, 1938, may be
    considered as nonadministrative expenses, notwithstanding the
    provisions of section 712a of title 15, and be paid from the rents
    received from each transferred project.

-SOURCE-
    (May 10, 1939, ch. 119, Sec. 1, 53 Stat. 690.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the United States Housing Act
    of 1937 which comprises this chapter.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those in this section were contained in act
    June 25, 1938, ch. 681, title I, 52 Stat. 1129.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Housing Authority to
    Secretary of Housing and Urban Development, see note set out under
    section 1404a of this title.
      Executive Order No. 7732, Oct. 27, 1937, 2 FR 2324, 44 CFR
    201.11, effective Nov. 1, 1937, transferred to the United States
    Housing Authority all right, interest, and title held by the
    Federal Emergency Administration of Public Works in any housing or
    slum-clearance projects constructed or in the process of
    construction on Sept. 1, 1937.

-End-



-CITE-
    42 USC Sec. 1406b                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1406b. Expenses of uncompensated advisers serving United
      States Housing Authority away from home

-STATUTE-
      On and after May 10, 1939, the funds made available for
    administrative expenses of the United States Housing Authority
    shall be available for the payment, when specifically authorized by
    the Administrator, of actual transportation expenses and not to
    exceed $10 per diem in lieu of subsistence and other expenses to
    persons serving, while away from their homes, without other
    compensation from the United States, in an advisory capacity to the
    Authority.

-SOURCE-
    (May 10, 1939, ch. 119, Sec. 1, 53 Stat. 690.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the United States Housing Act
    of 1937 which comprises this chapter.


-MISC1-
                             PRIOR PROVISIONS                         
      Provisions similar to those in this section were contained in act
    June 25, 1938, ch. 681, title I, 52 Stat. 1128.


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of functions of United States Housing Authority and
    Administrator to Secretary of Housing and Urban Development, see
    note set out under section 1404a of this title.

-End-



-CITE-
    42 USC Secs. 1406c to 1411a                                 01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1406c to 1411a. Omitted

-COD-
                               CODIFICATION                           
      Section 1406c, act June 27, 1942, ch. 450, Sec. 1, 56 Stat. 410,
    which related to expenses for construction advisers on non-Federal
    projects, was from the Independent Offices Appropriation Act, 1943,
    and was not repeated in subsequent appropriation acts. Prior
    similar provisions were contained in acts Apr. 5, 1941, ch. 40,
    Sec. 1, 55 Stat. 111; Apr. 18, 1940, ch. 107, Sec. 1, 54 Stat. 130.
      Section 1407, acts Sept. 1, 1937, ch. 896, Sec. 7, 50 Stat. 891;
    Aug. 2, 1954, ch. 649, title VIII, Sec. 802(d), 68 Stat. 643; May
    25, 1967, Pub. L. 90-19, Sec. 2(f), 81 Stat. 20, provided for
    publication of information and submission of annual report by the
    Authority, prior to the general revision of the United States
    Housing Act of 1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug.
    22, 1974, 88 Stat. 653.
      Section 1408, act Sept. 1, 1937, ch. 896, Sec. 8, 50 Stat. 891,
    authorized promulgation of rules and regulations by the Authority,
    prior to the general revision of the United States Housing Act of
    1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88
    Stat. 653.
      Section 1409, acts Sept. 1, 1937, ch. 896, Sec. 9, 50 Stat. 891;
    July 15, 1949, ch. 338, title III, Sec. 304(c), (d), 63 Stat. 425;
    Dec. 24, 1969, Pub. L. 91-152, title II, Sec. 211, 83 Stat. 388,
    authorized loans for low-rent-housing and slum clearance projects,
    prior to the general revision of the United States Housing Act of
    1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88
    Stat. 653. See section 1437b of this title.
      Section 1410, acts Sept. 1, 1937, ch. 896, Sec. 10, 50 Stat. 891;
    June 21, 1938, ch. 554, title VI, Sec. 601, 52 Stat. 820; July 15,
    1949, ch. 338, title III, Secs. 302(a), 304(a), (c), (e), (f), 305,
    307(d), 63 Stat. 423 to 427, 430; Aug. 2, 1954, ch. 649, title IV,
    Secs. 401(1), (2), 402, 403, 405, 406, 68 Stat. 630; June 30, 1955,
    ch. 251, Sec. 3, 69 Stat. 225; Aug. 11, 1955, ch. 783, title I,
    Sec. 108(b), 69 Stat. 638; Aug. 7, 1956, ch. 1029, title IV, Secs.
    401(a), 404(b), 70 Stat. 1103, 1104; Sept. 23, 1959, Pub. L. 86-
    372, title V, Secs. 505(a), 507, 73 Stat. 680, 681; June 30, 1961,
    Pub. L. 87-70, title II, Secs. 203, 204(a), (b), 205, 206(b), (c),
    75 Stat. 163 to 165; Sept. 2, 1964, Pub. L. 88-560, title IV, Secs.
    401(b), 402 to 404, 78 Stat. 794, 795; Aug. 10, 1965, Pub. L. 89-
    117, title V, Secs. 501 to 504, 507(b)(1), (2); 79 Stat. 486 to
    488; May 25, 1967, Pub. L. 90-19, Sec. 2(a), 81 Stat. 19; Aug. 1,
    1968, Pub. L. 90-448, title II, Secs. 203(a), 206(b), 209(b), 82
    Stat. 503, 505; Dec. 24, 1969, Pub. L. 91-152, title II, Secs. 212,
    214, 217(b), 83 Stat. 388-390; Dec. 31, 1970, Pub. L. 91-609, title
    II, Secs. 202, 203, 204(a)(2), 210, 84 Stat. 1776 to 1778; Oct. 18,
    1972, Pub. L. 92-503, Sec. 3 (1) to (3), 86 Stat. 906; Oct. 2,
    1973, Pub. L. 93-117, Sec. 2, 87 Stat. 422, authorized annual
    contributions in assistance of low rentals for housing projects,
    prior to the general revision of the United States Housing Act of
    1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88
    Stat. 653. See section 1437c of this title. Subsec. (j) of this
    section, which related to self-liquidation of projects, was
    repealed by Pub. L. 87-70, title II, Sec. 206(c), June 30, 1961, 75
    Stat. 164.
      Section 1411, acts Sept. 1, 1937, ch. 896, Sec. 11, 50 Stat. 893;
    July 15, 1949, ch. 338, title III, Sec. 307(d), 63 Stat. 430,
    authorized capital grants to public housing agencies in assistance
    of low rentals, prior to the general revision of the United States
    Housing Act of 1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug.
    22, 1974, 88 Stat. 653.
      Section 1411a, act July 31, 1953, ch. 302, title I, Sec. 101, 67
    Stat. 306, which related to prohibition of projects in localities
    where rejected by public vote or governing body, was from the
    Independent Offices Appropriation Act, 1954, and was not repeated
    in subsequent appropriation acts.


-MISC1-
    RETROACTIVE EFFECT OF REPEAL OF RIGHTS OF UNITED STATES RELATING TO
                       SELF-LIQUIDATION OF PROJECTS
      Section 206(c) of Pub. L. 87-70, as amended by Pub. L. 93-383,
    title II, Sec. 205, Aug. 22, 1974, 88 Stat. 668, provided in part
    that: "The Secretary of Housing and Urban Development is authorized
    to agree with a public housing agency to the amendment of any
    annual contributions contract containing the provision prescribed
    in section 10(j) of the United States Housing Act of 1937 [subsec.
    (j) of section 1410 of this title] (as in effect prior to the
    enactment of the Housing and Community Development Act of 1974) so
    as to delete such provision and waive any rights of the United
    States that are accrued or may accrue under such provision."

-End-



-CITE-
    42 USC Sec. 1411b                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1411b. Repealed.

-MISC1-
    Sec. 1411b. Repealed. Aug. 7, 1956, ch. 1029, title IV, Sec.
      401(b), 70 Stat. 1103.
      Section, acts July 5, 1952, ch. 578, title I, Sec. 101, 66 Stat.
    403; July 31, 1953 ch. 302 title I, Sec. 101, 67 Stat. 307, limited
    number of housing units to be constructed during fiscal year.

-End-



-CITE-
    42 USC Sec. 1411c                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1411c. Omitted

-COD-
                               CODIFICATION                           
      Section, act July 31, 1953, ch. 302, title I, Sec. 101, 67 Stat.
    307, which barred subversives from occupancy of housing units and
    which provided for enforcement of such prohibition and affect of
    such prohibition on loans and contributions by the Public Housing
    Administration, was from the Independent Offices Appropriation Act,
    1954, and was not repeated in subsequent appropriation acts.

-End-



-CITE-
    42 USC Sec. 1411d                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1411d. Repealed.

-MISC1-
    Sec. 1411d. Repealed. Pub. L. 93-383, title II, Sec. 204, Aug. 22,
      1974, 88 Stat. 668.
      Section, act Aug. 2, 1954, ch. 649, title VIII, Sec. 815, 68
    Stat. 647, required submission of specifications by applicants
    prior to award of any contract for construction of a project and
    submission of data with respect to acquisition of land prior to
    authorization to purchase such land.

-End-



-CITE-
    42 USC Secs. 1412 to 1416                                   01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1412 to 1416. Omitted

-MISC1-
      Section 1412, acts Sept. 1, 1937, ch. 896, Sec. 12, 50 Stat. 894;
    Apr. 20, 1950, ch. 94, title II, Sec. 205(b), 64 Stat. 73; Aug. 7,
    1956, ch. 1029, title IV, Sec. 405, 70 Stat. 1104; Aug. 10, 1965,
    Pub. L. 89-117, title V, Sec. 505, 79 Stat. 487, authorized
    disposal of low-rent-housing projects transferred to or acquired by
    the Authority, prior to the general revision of the United States
    Housing Act of 1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug.
    22, 1974, 88 Stat. 653.
      Section 1413, acts Sept. 1, 1937, ch. 896, Sec. 13, 50 Stat. 894;
    July 15, 1949, ch. 338, title III, Sec. 307(e), 63 Stat. 430; May
    25, 1967, Pub. L. 90-19, Sec. 2(g), 81 Stat. 20, enumerated powers
    of the Authority, prior to the general revision of the United
    States Housing Act of 1937 by Pub. L. 93-383, title II, Sec.
    201(a), Aug. 22, 1974, 88 Stat. 653.
      Section 1413a, acts July 31, 1947, ch. 418, Sec. 2, 61 Stat. 705;
    Feb. 27, 1948, ch. 77, Sec. 3, 62 Stat. 37; Mar. 30, 1948, ch. 161,
    title III, Sec. 304, 62 Stat. 100, postponed until April 1, 1949,
    the institution of any eviction actions or proceedings in
    connection with publicly operated housing accommodations.
      Section 1414, acts Sept. 1, 1937, ch. 896, Sec. 14, 50 Stat. 895;
    July 15, 1949, 338, title III, Sec. 304(g), 63 Stat. 426; Dec. 24,
    1969, Pub. L. 91-152, title II, Sec. 213(c), 83 Stat. 389,
    authorized modification, amendment, or supersedure of contracts by
    the Authority, prior to the general revision of the United States
    Housing Act of 1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug.
    22, 1974, 88 Stat. 653. See section 1437c of this title.
      Section 1415, acts Sept. 1, 1937, ch. 896, Sec. 15, 50 Stat. 895;
    July 31, 1947, ch. 418, Sec. 1, 61 Stat. 704; July 15, 1949, ch.
    338, title III, Secs. 301, 303, 304(j), 63 Stat. 422, 424, 427;
    Aug. 2, 1954, ch. 649, title IV, Sec. 401(3), (4), 68 Stat. 631;
    Aug. 7, 1956, ch. 1029, title IV, Sec. 404(c), 70 Stat. 1104; July
    12, 1957, Pub. L. 85-104, title IV, Sec. 401(b), (c), 71 Stat. 302;
    Sept. 23, 1959. Pub. L. 86-372, title V, Secs. 503(b), 506, 507, 73
    Stat. 680, 681; June 30, 1961, Pub. L. 87-70, title II, Secs.
    204(b), 205(b), 206(a), 75 Stat. 164; Sept. 2, 1964, Pub. L. 88-
    560, title IV, Secs. 401(c), 405(a), 406, 78 Stat. 794, 795; Aug.
    10, 1965, Pub. L. 89-117, title IV, Sec. 404(c)(2), title V, Secs.
    506, 507(a), (b)(3), 79 Stat. 486-488; May 25, 1967, Pub. L. 90-19,
    Sec. 2(a), 81 Stat. 19; Aug. 1, 1968, Pub. L. 90-448, title II,
    Secs. 204, 205, 207, 82 Stat. 503, 504; Dec. 24, 1969, Pub. L. 91-
    152, title II, Secs. 215, 216, 83 Stat. 389, 390; Dec. 31, 1970,
    Pub. L. 91-609, title II, Secs. 207, 209(a), title IX, Sec. 903(d),
    84 Stat. 1777, 1778, 1809; Jan. 2, 1971, Pub. L. 91-646, title II,
    Sec. 220(a)(6), 84 Stat. 1903, set forth provisions relating to
    preservation of low rents in housing projects, prior to the general
    revision of the United States Housing Act of 1937 by Pub. L. 93-
    383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653. See
    sections 1437c, 1437d, and 1437f of this title.
      Section 1416, acts Sept. 1, 1937, ch. 896, Sec. 16, 50 Stat. 896;
    July 15, 1949, 338, title III, Sec. 307(f) 63 Stat. 430; Aug. 2,
    1954, ch. 649, title IV, Sec. 404, 68 Stat. 633; Nov. 3, 1966, Pub.
    L. 89-754, title X, Sec. 1003, 80 Stat. 1284; May 25, 1967, Pub. L.
    90-19, Sec. 2(h), (i), 81 Stat. 20, provided for application of
    labor standards to contracts, etc., involving Federal projects,
    prior to the general revision of the United States Housing Act of
    1937 by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88
    Stat. 653. See section 1437 of this title.

     APPLICATION FOR PRELIMINARY LOANS APPROVED PRIOR TO SEPTEMBER 2,
                                   1964
      Pub. L. 88-560, title IV, Sec. 405(b), Sept. 2, 1964, 78 Stat.
    795, provided that the amendments made by subsection (a) to subsec.
    (b)(7) of section 1415 of this title were not to be applicable to
    any project for which an application for a preliminary loan had
    been approved by the local governing body prior to Sept. 2, 1964.

              TRANSFERRED FUNDS; AVAILABILITY FOR EXPENDITURE          
      Act Apr. 20, 1950, ch. 94, title II, Sec. 205(c), 64 Stat. 73,
    provided that all unexpended receipts, notwithstanding any
    limitations contained in the second proviso of act May 26, 1947,
    ch. 82, title I, 61 Stat. 109, derived from the sale of labor
    supply centers, labor homes, labor camps, and facilities, and all
    other unexpended balances of funds available for the maintenance,
    operation, and liquidation of the properties transferred and for
    the administrative expenses of transfer were transferred to the
    Public Housing Administration, to be available until expended, in
    accordance with the provisions of this chapter.

-End-



-CITE-
    42 USC Sec. 1417                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1417. Repealed.

-MISC1-
    Sec. 1417. Repealed. Pub. L. 90-448, title XVII, Sec. 1719(b), Aug.
      1, 1968, 82 Stat. 610.
      Section, act Sept. 1, 1937, ch. 896, Sec. 17, 50 Stat. 897,
    related to capital stock of the Authority.

                        RETIREMENT OF CAPITAL STOCK                    
      Section 1719(b) of Pub. L. 90-448 provided in part that the
    capital stock referred to in this section be retired and the sum of
    $1,000,000 represented by such stock returned to the Treasury of
    the United States.

-End-



-CITE-
    42 USC Secs. 1417a to 1422                                  01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1417a to 1422. Omitted

-COD-
                               CODIFICATION                           
      Sections 1417a to 1422 were omitted in the general revision of
    the United States Housing Act of 1937 by Pub. L. 93-383, title II,
    Sec. 201(a), Aug. 22, 1974, 88 Stat. 653.
      Section 1417a, act Sept. 1, 1937, ch. 896, Sec. 17, as added Aug.
    1, 1968, Pub. L. 90-448, title XVII, Sec. 1719(c), 82 Stat. 610,
    set forth additional functions, powers, and duties of the
    Secretary. See section 1437h of this title.
      Section 1418, act Sept. 1, 1937, ch. 896, Sec. 18, 50 Stat. 897,
    authorized all assets and receipts of the Authority to remain
    available until expended. See section 1437h of this title.
      Section 1419, act Sept. 1, 1937, ch. 896, Sec. 19, 50 Stat. 897,
    authorized the allocation of funds available for similar purposes
    to the Authority.
      Section 1420, acts Sept. 1, 1937, ch. 896, Sec. 20, 50 Stat. 898;
    June 21, 1938, ch. 554, title VI, Sec. 602, 52 Stat. 820; Oct. 30,
    1941, ch. 467, 55 Stat. 759; July 15, 1949, ch. 338, title III,
    Sec. 304(h), 63 Stat. 427; Aug. 1, 1968, Pub. L. 90-448, title II,
    Sec. 203(b), 82 Stat. 503, authorized the Authority to issue
    obligations for purchase and sale by the Secretary of the Treasury.
    See section 1437b of this title.
      Section 1421, acts Sept. 1, 1937, ch. 896, Sec. 21, 50 Stat. 898;
    July 15, 1949, ch. 338, title III, Sec. 307(g), 63 Stat. 431; Aug.
    7, 1956, ch. 1029, title IV, Sec. 403, 70 Stat. 1103; June 30,
    1961, Pub. L. 87-70, title II, Sec. 204(c), 75 Stat. 164, set forth
    depository and other banking requirements applicable to the
    Authority. See section 1437h of this title.
      Section 1421a, act Sept. 1, 1937, ch. 896, Sec. 22, as added July
    15, 1949, ch. 338, title III, Sec. 304(b), 63 Stat. 424; amended
    June 30, 1961, Pub. L. 87-70, title III, Sec. 302(b), 75 Stat. 166;
    Aug. 10, 1965, Pub. L. 89-117, title V, Sec. 507(b)(4), 79 Stat.
    489; May 25, 1967, Pub. L. 90-19, Sec. 2(j), 81 Stat. 20, set forth
    provisions for private financing of low-rent-housing projects. See
    sections 1437d and 1437i of this title.
      Section 1421b, act Sept. 1, 1937, ch. 896, Sec. 23, as added Aug.
    10, 1965, Pub. L. 89-117, title I, Sec. 103(a), 79 Stat. 455;
    amended Nov. 3, 1966, Pub. L. 89-754, title X, Sec. 1002, 80 Stat.
    1284; Aug. 1, 1968, Pub. L. 90-448, title II, Secs. 208, 210, 82
    Stat. 504, 505; Dec. 24, 1969, Pub. L. 91-152, title II, Sec.
    217(c), 83 Stat. 390; Dec. 31, 1970, Pub. L. 91-609, title II, Sec.
    204(a)(1), (b), 84 Stat. 1777, set forth provisions authorizing low-
    rent housing in private accommodations. See section 1437f of this
    title.
      Section 1422, acts Sept. 1, 1937, ch. 896, Sec. 24, formerly Sec.
    22, 50 Stat. 899; renumbered, Sec. 23, July 15, 1949, ch. 338,
    title III, Sec. 307(h), 63 Stat. 431; renumbered Sec. 24, Aug. 10,
    1965, Pub. L. 87-117, title I, Sec. 103(a), 79 Stat. 455, provided
    for applicability of all general penal statutes relating to larceny
    etc., of moneys and properties of the Authority.


-MISC1-
     RETROACTIVE APPLICATION OF POLICIES OR PROCEDURES ESTABLISHED BY
     SECRETARY OF HOUSING AND URBAN DEVELOPMENT TO RIGHTS OF OWNERS OF
                LEASED HOUSING, INCLUDING RIGHT OF RENEWAL
      Pub. L. 93-383, title II, Sec. 208, Aug. 22, 1974, 88 Stat. 669,
    as amended by Pub. L. 95-128, title II, Sec. 201(h), Oct. 12, 1977,
    91 Stat. 1129, provided that: "Nothing in this title [see Tables
    for classification] or any other provision of law authorizes the
    Secretary of Housing and Urban Development to apply any policy or
    procedure established by him with respect to the rights of an owner
    under a lease entered into under section 23 of the United States
    Housing Act of 1937 [section 1421b of this title], including the
    right to renewal of such lease to the maximum term permitted by
    law, if such lease was entered into prior to the effective date of
    such policy or procedure."

-End-



-CITE-
    42 USC Secs. 1423 to 1426                                   01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1423 to 1426. Repealed.

-MISC1-
    Secs. 1423 to 1426. Repealed. June 25, 1948, ch. 645, Sec. 21, 62
      Stat. 862.
      Section 1423, act Sept. 1, 1937, ch. 896, Sec. 24, formerly Sec.
    23, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, related to penalties for false entries
    and reports.
      Section 1424, act Sept. 1, 1937, ch. 896, Sec. 25, formerly Sec.
    24, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, related to penalties for defrauding or
    hindering the Authority.
      Section 1425, act Sept. 1, 1937, ch. 896, Sec. 26, formerly Sec.
    25, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, related to penalties for concealment of
    interest in property.
      Section 1426, act Sept. 1, 1937, ch. 896, Sec. 27, formerly Sec.
    26, 50 Stat. 899, renumbered July 15, 1949, ch. 388, title III,
    Sec. 307(h), 63 Stat. 431, related to penalties for unlawful use of
    the name "United States Housing Authority".
      Sections 1423 to 1426 of this title are covered by section 1012
    of Title 18, Crimes and Criminal Procedure.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Sept. 1, 1948, see section 20 of act June 25,
    1948, set out as an Effective Date note preceding section 1 of
    Title 18, Crimes and Criminal Procedure.

-End-



-CITE-
    42 USC Secs. 1427 to 1431                                   01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Secs. 1427 to 1431. Omitted

-COD-
                               CODIFICATION                           
      Sections 1427 to 1431 were omitted in the general revision of the
    United States Housing Act of 1937 by Pub. L. 93-383, title II, Sec.
    201(a), Aug. 22, 1974, 88 Stat. 653.
      Section 1427, act Sept. 1, 1937, ch. 896, Sec. 28, formerly Sec.
    27, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, provided for application of provisions
    when conflicting with other laws relating to housing or slum
    clearance.
      Section 1428, act Sept. 1, 1937, ch. 896, Sec. 29, formerly Sec.
    28, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, made available funds for the District of
    Columbia.
      Section 1429, act Sept. 1, 1937, ch. 896, Sec. 30, formerly Sec.
    29, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, provided for separability of provisions.
      Section 1430, act Sept. 1, 1937, ch. 896, Sec. 31, formerly Sec.
    30, 50 Stat. 899, renumbered July 15, 1949, ch. 338, title III,
    Sec. 307(h), 63 Stat. 431, set forth short title of provisions as
    "United States Housing Act of 1937". See section 1 of act Sept. 1,
    1937, as added by section 201(a) of Pub. L. 93-383, set out as a
    Short Title note under section 1437 of this title.
      Section 1431, Pub. L. 91-556, title IV, Dec. 17, 1970, 84 Stat.
    1463, which provided that the necessary expenses of providing
    representatives at sites of non-Federal projects in connection with
    construction of these projects by public housing agencies with aid
    under this chapter, be compensated by these agencies by payments of
    fixed fees, was from the Independent Offices and Department of
    Housing and Urban Development Appropriations Act, 1971, and was not
    repeated in subsequent appropriation acts. Similar provisions were
    contained in the following prior appropriation acts:
      Nov. 26, 1969, Pub. L. 91-126, title III, 83 Stat. 242.
      Oct. 4, 1968, Pub. L. 90-550, title III, 82 Stat. 956.
      Nov. 3, 1967, Pub. L. 90-121, title II, 81 Stat. 360.
      Sept. 6, 1966, Pub. L. 89-555, title II, 80 Stat. 688.
      Aug. 16, 1965, Pub. L. 89-128, title II, 79 Stat. 542.
      Aug. 30, 1964, Pub. L. 88-507, title II, 78 Stat. 665.
      Dec. 19, 1963, Pub. L. 88-215, title II, 77 Stat. 447.
      Oct. 3, 1962, Pub. L. 87-741, title II, 76 Stat. 739.
      Aug. 17, 1961, Pub. L. 87-141, title II, 75 Stat. 363.
      July 12, 1960, Pub. L. 86-626, title II, 74 Stat. 444.
      Sept. 14, 1959, Pub. L. 86-255, title II, 73 Stat. 517.
      Aug. 28, 1958, Pub. L. 85-844, title II, 72 Stat. 1081.
      June 29, 1957, Pub. L. 85-69, title II, 71 Stat. 241.
      June 27, 1956, ch. 452, title II, 70 Stat. 355.
      June 30, 1955, ch. 244, title II, 69 Stat. 215.
      June 24, 1954, ch. 359, title II, 68 Stat. 297.
      July 31, 1953, ch. 302, title II, 67 Stat. 315.
      July 5, 1952, ch. 578, title III, 66 Stat. 417.
      Aug. 31, 1951, ch. 376, title IV, 65 Stat. 299.
      Sept. 6, 1950, ch. 896, Ch. VIII, title II, 64 Stat. 723.
      Aug. 24, 1949, ch. 506, title II, 63 Stat. 659.
      June 30, 1948, ch. 773, title II, 62 Stat. 1190.
      July 30, 1947, ch. 358, title II, 61 Stat. 579.
      July 20, 1946, ch. 589, title II, 60 Stat. 592.
      May 3, 1945, ch. 106, title I, 59 Stat. 124.

-End-



-CITE-
    42 USC Sec. 1432                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1432. Repealed.

-MISC1-
    Sec. 1432. Repealed. July 15, 1949, ch. 338, title VI, Sec. 606, 63
      Stat. 441.
      Section, act Aug. 10, 1948, ch. 832, title V, Sec. 503, 62 Stat.
    1285, related to State low-rent or veterans' housing projects.

-End-



-CITE-
    42 USC Sec. 1433                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1433. Omitted

-COD-
                               CODIFICATION                           
      Section, act July 15, 1949, ch. 338, title VI, Sec. 606, 63 Stat.
    440, provided for conversion of State and local low-rent or
    veterans' housing projects to Federal projects if the contract for
    State financial assistance for such project was entered into on or
    after Jan. 1, 1948, and prior to Jan. 1, 1950.

-End-



-CITE-
    42 USC Sec. 1434                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1434. Records; contents; examination and audit

-STATUTE-
      Every contract between the Department of Housing and Urban
    Development and any person or local body (including any corporation
    or public or private agency or body) for a loan, advance, grant, or
    contribution under the United States Housing Act of 1937, as
    amended [42 U.S.C. 1437 et seq.], the Housing Act of 1949, as
    amended [42 U.S.C. 1441 et seq.], or any other Act shall provide
    that such person or local body shall keep such records as the
    Department of Housing and Urban Development shall from time to time
    prescribe, including records which permit a speedy and effective
    audit and will fully disclose the amount and the disposition by
    such person or local body of the proceeds of the loan, advance,
    grant, or contribution, or any supplement thereto, the capital cost
    of any construction project for which any such loan, advance,
    grant, or contribution is made, and the amount of any private or
    other non-Federal funds used or grants-in-aid made for or in
    connection with any such project. No mortgage covering new or
    rehabilitated multifamily housing (as defined in section 1715r of
    title 12) shall be insured unless the mortgagor certifies that he
    will keep such records as are prescribed by the Secretary of
    Housing and Urban Development at the time of the certification and
    that they will be kept in such form as to permit a speedy and
    effective audit. The Department of Housing and Urban Development
    and the Comptroller General of the United States shall have access
    to and the right to examine and audit such records. This section
    shall become effective on the first day after the first full
    calendar month following the date of approval of the Housing Act of
    1961.

-SOURCE-
    (Aug. 2, 1954, ch. 649, title VIII, Sec. 814, 68 Stat. 647; Pub. L.
    87-70, title IX, Sec. 908, June 30, 1961, 75 Stat. 191; Pub. L. 90-
    19, Sec. 10(h), May 25, 1967, 81 Stat. 23.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The United States Housing Act of 1937, as amended, referred to in
    text, is act Sept. 1, 1937, ch. 896, as revised generally by Pub.
    L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653,
    which is classified generally to this chapter (Sec. 1437 et seq.).
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1437 of this title and Tables.
      The Housing Act of 1949, as amended, referred to in text, is act
    July 15, 1949, ch. 338, 63 Stat. 413, as amended, which is
    classified principally to chapter 8A (Sec. 1441 et seq.) of this
    title. For complete classification of this Act to the Code, see
    Short Title note set out under section 1441 of this title and
    Tables.
      The first day after the first full calendar month following the
    date of approval of the Housing Act of 1961, referred to in text,
    probably means Aug. 1, 1961, which is the first day after the first
    full calendar month following approval of Pub. L. 87-70, which was
    approved on June 30, 1961.

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the United States Housing Act
    of 1937 which comprises this chapter.
      Section was formerly classified to sections 1446 of this title
    and 1715s of Title 12, Banks and Banking.


-MISC1-
                                AMENDMENTS                            
      1967 - Pub. L. 90-19 substituted "Secretary of Housing and Urban
    Development" for "Federal Housing Commissioner" in second sentence
    and "Department of Housing and Urban Development" for "Housing and
    Home Finance Agency (or any official or constituent thereof)" and
    "Housing and Home Finance Agency (or such official or constituent
    thereof)" in first sentence and for "Housing and Home Finance
    Agency or any official or constituent agency thereof" in third
    sentence, respectively.
      1961 - Pub. L. 87-70 required record keeping provisions in
    contracts under the Housing Act of 1949 and in contracts under any
    other act, prohibited insurance of mortgages covering new or
    rehabilitated multifamily housing unless the mortgagor certifies
    that he will keep records, and empowered the Comptroller General to
    examine and audit records, and substituted "Housing Act of 1961"
    for "Housing Act of 1954".

                              EFFECTIVE DATE                          
      The fourth sentence of section 814 of act Aug. 2, 1954 (prior to
    the amendment by section 908 of act June 30, 1961) provided that
    this section is effective on first day after first calendar month
    following the date of approval of the act (Aug. 2, 1954).

-End-



-CITE-
    42 USC Sec. 1435                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1435. Access to books, documents, etc., for purpose of audit

-STATUTE-
      Every contract for loans or annual contributions under this
    chapter shall provide that the Secretary of Housing and Urban
    Development and the Comptroller General of the United States, or
    any of their duly authorized representatives, shall, for the
    purpose of audit and examination, have access to any books,
    documents, papers, and records of the public housing agency
    entering into such contract that are pertinent to its operations
    with respect to financial assistance under this chapter.

-SOURCE-
    (Aug. 2, 1954, ch. 649, title VIII, Sec. 816, 68 Stat. 647; Pub. L.
    90-19, Sec. 10(i), May 25, 1967, 81 Stat. 23.)

-COD-
                               CODIFICATION                           
      Section was not enacted as part of the United States Housing Act
    of 1937 which comprises this chapter.


-MISC1-
                                AMENDMENTS                            
      1967 - Pub. L. 90-19 substituted "Secretary of Housing and Urban
    Development" for "Public Housing Commissioner".

-End-



-CITE-
    42 USC Sec. 1436                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1436. Repealed.

-MISC1-
    Sec. 1436. Repealed. Pub. L. 91-609, title V, Sec. 503(4), Dec. 31,
      1970, 84 Stat. 1786.
      Section, Pub. L. 87-70, title II, Sec. 207, June 30, 1961, 75
    Stat. 165; Pub. L. 88-560, title II, Sec. 203(e), title IV, Sec.
    407, Sept. 2, 1964, 78 Stat. 784, 796; Pub. L. 89-117, title XI,
    Sec. 1105, Aug. 10, 1965, 79 Stat. 503; Pub. L. 90-19, Sec. 18(a),
    May 25, 1967, 81 Stat. 25; Pub. L. 90-448, title XVII, Sec.
    1714(a), Aug. 1, 1968, 82 Stat. 607, provided for low-rent housing
    demonstration programs and development grants. See section 1701z-1
    et seq. of Title 12, Banks and Banking.

                EFFECTIVE DATE OF REPEAL: SAVINGS PROVISION            
      Section 503 of Pub. L. 91-609 provided in part for repeal of
    sections 1701d-3, 1701e, 1701e note, and 1701f of Title 12, Banks
    and Banking, this section, note below, section 1452a, section 1456
    note, and sections 3372, 3373 of this title, effective July 1,
    1971, except that the repeal shall not affect contracts,
    commitments, reservations, or other obligations entered pursuant to
    such provisions prior to July 1, 1971.

              REPORT OF SELF-HELP STUDIES AND DEMONSTRATIONS          
      Pub. L. 90-448, title XVII, Sec. 1714(b), Aug. 1, 1968, 82 Stat.
    607, providing for report to Congress within one year after Aug. 1,
    1968, respecting self-help studies and demonstrations, was repealed
    by section 503(7) of Pub. L. 91-609.

-End-



-CITE-
    42 USC Sec. 1436a                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1436a. Restriction on use of assisted housing by non-resident
      aliens

-STATUTE-
    (a) Conditions for assistance
      Notwithstanding any other provision of law, the applicable
    Secretary may not make financial assistance available for the
    benefit of any alien unless that alien is a resident of the United
    States and is - 
        (1) an alien lawfully admitted for permanent residence as an
      immigrant as defined by section 1101(a)(15) and (20) of title 8,
      excluding, among others, alien visitors, tourists, diplomats, and
      students who enter the United States temporarily with no
      intention of abandoning their residence in a foreign country;
        (2) an alien who entered the United States prior to June 30,
      1948, or such subsequent date as is enacted by law, has
      continuously maintained his or her residence in the United States
      since then, and is not ineligible for citizenship, but who is
      deemed to be lawfully admitted for permanent residence as a
      result of an exercise of discretion by the Attorney General
      pursuant to section 1259 of title 8;
        (3) an alien who is lawfully present in the United States
      pursuant to an admission under section 1157 of title 8 or
      pursuant to the granting of asylum (which has not been
      terminated) under section 1158 of title 8;
        (4) an alien who is lawfully present in the United States as a
      result of an exercise of discretion by the Attorney General for
      emergent reasons or reasons deemed strictly in the public
      interest pursuant to section 1182(d)(5) of title 8;
        (5) an alien who is lawfully present in the United States as a
      result of the Attorney General's withholding deportation pursuant
      to section 1231(b)(3) of title 8;
        (6) an alien lawfully admitted for temporary or permanent
      residence under section 1255a of title 8; or
        (7) an alien who is lawfully resident in the United States and
      its territories and possessions under section 141 of the Compacts
      of Free Association between the Government of the United States
      and the Governments of the Marshall Islands, the Federated States
      of Micronesia (48 U.S.C. 1901 note) and Palau (48 U.S.C. 1931
      note) while the applicable section is in effect: Provided, That,
      within Guam any such alien shall not be entitled to a preference
      in receiving assistance under this Act over any United States
      citizen or national resident therein who is otherwise eligible
      for such assistance.
    (b) "Financial assistance" defined
      (1) For purposes of this section the term "financial assistance"
    means financial assistance made available pursuant to the United
    States Housing Act of 1937 [42 U.S.C. 1437 et seq.], section 1715z
    or 1715z-1 of title 12, the direct loan program under section 1472
    of this title or section 1472(c)(5)(D), 1474, 1490a(a)(2)(A), or
    1490r of this title, subtitle A of title III of the Cranston-
    Gonzalez National Affordable Housing Act [42 U.S.C. 12851 et
    seq.], or section 101 of the Housing and Urban Development Act of
    1965 [12 U.S.C. 1701s].
      (2) If the eligibility for financial assistance of at least one
    member of a family has been affirmatively established under the
    program of financial assistance and under this section, and the
    ineligibility of one or more family members has not been
    affirmatively established under this section, any financial
    assistance made available to that family by the applicable
    Secretary shall be prorated, based on the number of individuals in
    the family for whom eligibility has been affirmatively established
    under the program of financial assistance and under this section,
    as compared with the total number of individuals who are members of
    the family.
    (c) Preservation of families; students
      (1) If, following completion of the applicable hearing process,
    financial assistance for any individual receiving such assistance
    on February 5, 1988, is to be terminated, the public housing agency
    or other local governmental entity involved (in the case of public
    housing or assistance under section 8 of the United States Housing
    Act of 1937 [42 U.S.C. 1437f]) or the applicable Secretary (in the
    case of any other financial assistance) shall take one of the
    following actions:
        (A) Permit the continued provision of financial assistance, if
      necessary to avoid the division of a family in which the head of
      household or spouse is a citizen of the United States, a national
      of the United States, or an alien resident of the United States
      described in any of paragraphs (1) through (6) of subsection (a)
      of this section. For purposes of this paragraph, the term
      "family" means a head of household, any spouse, any parents of
      the head of household, any parents of the spouse, and any
      children of the head of household or spouse. Financial assistance
      continued under this subparagraph for a family may be provided
      only on a prorated basis, under which the amount of financial
      assistance is based on the percentage of the total number of
      members of the family that are eligible for that assistance under
      the program of financial assistance and under this section.
        (B)(i) Defer the termination of financial assistance, if
      necessary to permit the orderly transition of the individual and
      any family members involved to other affordable housing.
        (ii) Except as provided in clause (iii), any deferral under
      this subparagraph shall be for a 6-month period and may be
      renewed by the public housing agency or other entity involved for
      an aggregate period of 18-months. At the beginning of each
      deferral period, the public housing agency or other entity
      involved shall inform the individual and family members of their
      ineligibility for financial assistance and offer them other
      assistance in finding other affordable housing.
        (iii) The time period described in clause (ii) shall not apply
      in the case of a refugee under section 1157 of title 8 or an
      individual seeking asylum under section 1158 of title 8.

      (2) Notwithstanding any other provision of law, the applicable
    Secretary may not make financial assistance available for the
    benefit of - 
        (A) any alien who - 
          (i) has a residence in a foreign country that such alien has
        no intention of abandoning;
          (ii) is a bona fide student qualified to pursue a full course
        of study; and
          (iii) is admitted to the United States temporarily and solely
        for purposes of pursuing such a course of study at an
        established institution of learning or other recognized place
        of study in the United States, particularly designated by such
        alien and approved by the Attorney General after consultation
        with the Department of Education of the United States, which
        institution or place of study shall have agreed to report to
        the Attorney General the termination of attendance of each
        nonimmigrant student (and if any such institution of learning
        or place of study fails to make such reports promptly the
        approval shall be withdrawn); and

        (B) the alien spouse and minor children of any alien described
      in subparagraph (A), if accompanying such alien or following to
      join such alien.
    (d) Conditions for provision of financial assistance for
      individuals
      The following conditions apply with respect to financial
    assistance being or to be provided for the benefit of an
    individual:
        (1)(A) There must be a declaration in writing by the individual
      (or, in the case of an individual who is a child, by another on
      the individual's behalf), under penalty of perjury, stating
      whether or not the individual is a citizen or national of the
      United States, and, if that individual is not a citizen or
      national of the United States, that the individual is in a
      satisfactory immigration status. If the declaration states that
      the individual is not a citizen or national of the United States
      and that the individual is younger than 62 years of age, the
      declaration shall be verified by the Immigration and
      Naturalization Service. If the declaration states that the
      individual is a citizen or national of the United States, the
      applicable Secretary, or the agency administering assistance
      covered by this section, may request verification of the
      declaration by requiring presentation of documentation that the
      applicable Secretary considers appropriate, including a United
      States passport, resident alien card, alien registration card,
      social security card, or other documentation.
        (B) In this subsection, the term "satisfactory immigration
      status" means an immigration status which does not make the
      individual ineligible for financial assistance.
        (2) If such an individual is not a citizen or national of the
      United States, is not 62 years of age or older, and is receiving
      financial assistance on September 30, 1996, or applying for
      financial assistance on or after September 30, 1996, there must
      be presented either - 
          (A) alien registration documentation or other proof of
        immigration registration from the Immigration and
        Naturalization Service that contains the individual's alien
        admission number or alien file number (or numbers if the
        individual has more than one number), or
          (B) such other documents as the applicable Secretary
        determines constitutes reasonable evidence indicating a
        satisfactory immigration status.

      In the case of an individual applying for financial assistance on
      or after September 30, 1996, the applicable Secretary may not
      provide any such assistance for the benefit of that individual
      before documentation is presented and verified under paragraph
      (3) or (4).
        (3) If the documentation described in paragraph (2)(A) is
      presented, the applicable Secretary shall utilize the
      individual's alien file or alien admission number to verify with
      the Immigration and Naturalization Service the individual's
      immigration status through an automated or other system
      (designated by the Service for use with States) that - 
          (A) utilizes the individual's name, file number, admission
        number, or other means permitting efficient verification, and
          (B) protects the individual's privacy to the maximum degree
        possible.

        (4) In the case of such an individual who is not a citizen or
      national of the United States, is not 62 years of age or older,
      and is receiving financial assistance on September 30, 1996, or
      applying for financial assistance on or after September 30, 1996,
      if, at the time of application or recertification for financial
      assistance, the statement described in paragraph (1) is submitted
      but the documentation required under paragraph (2) is not
      presented or if the documentation required under paragraph (2)(A)
      is presented but such documentation is not verified under
      paragraph (3) - 
          (A) the applicable Secretary - 
            (i) shall provide a reasonable opportunity, not to exceed
          30 days, to submit to the applicable Secretary evidence
          indicating a satisfactory immigration status, or to appeal to
          the Immigration and Naturalization Service the verification
          determination of the Immigration and Naturalization Service
          under paragraph (3),
            (ii) in the case of any individual receiving assistance on
          September 30, 1996, may not delay, deny, reduce, or terminate
          the eligibility of that individual for financial assistance
          on the basis of the immigration status of that individual
          until the expiration of that 30-day period; and
            (iii) in the case of any individual applying for financial
          assistance on or after September 30, 1996, may not deny the
          application for such assistance on the basis of the
          immigration status of that individual until the expiration of
          that 30-day period; and

          (B) if any documents or additional information are submitted
        as evidence under subparagraph (A), or if appeal is made to the
        Immigration and Naturalization Service with respect to the
        verification determination of the Service under paragraph (3) -
        
            (i) the applicable Secretary shall transmit to the
          Immigration and Naturalization Service photostatic or other
          similar copies of such documents or additional information
          for official verification,
            (ii) pending such verification or appeal, the applicable
          Secretary may not - 
              (I) in the case of any individual receiving assistance on
            September 30, 1996, delay, deny, reduce, or terminate the
            eligibility of that individual for financial assistance on
            the basis of the immigration status of that individual; and
              (II) in the case of any individual applying for financial
            assistance on or after September 30, 1996, deny the
            application for such assistance on the basis of the
            immigration status of that individual; and

            (iii) the applicable Secretary shall not be liable for the
          consequences of any action, delay, or failure of the Service
          to conduct such verification.

        (5) If the applicable Secretary determines, after complying
      with the requirements of paragraph (4), that such an individual
      is not in a satisfactory immigration status, the applicable
      Secretary shall - 
          (A) deny the application of that individual for financial
        assistance or terminate the eligibility of that individual for
        financial assistance, as applicable;
          (B) provide that the individual may request a fair hearing
        during the 30-day period beginning upon receipt of the notice
        under subparagraph (C); and
          (C) provide to the individual written notice of the
        determination under this paragraph, the right to a fair hearing
        process, and the time limitation for requesting a hearing under
        subparagraph (C).

        (6) The applicable Secretary shall terminate the eligibility
      for financial assistance of an individual and the members of the
      household of the individual, for a period of not less than 24
      months, upon determining that such individual has knowingly
      permitted another individual who is not eligible for such
      assistance to reside in the public or assisted housing unit of
      the individual. This provision shall not apply to a family if the
      ineligibility of the ineligible individual at issue was
      considered in calculating any proration of assistance provided
      for the family.

    For purposes of this subsection, the term "applicable Secretary"
    means the applicable Secretary, a public housing agency, or another
    entity that determines the eligibility of an individual for
    financial assistance.
    (e) Regulatory actions against entities for erroneous
      determinations regarding eligibility based upon citizenship or
      immigration status
      The applicable Secretary shall not take any compliance,
    disallowance, penalty, or other regulatory action against an entity
    with respect to any error in the entity's determination to make an
    individual eligible for financial assistance based on citizenship
    or immigration status - 
        (1) if the entity has provided such eligibility based on a
      verification of satisfactory immigration status by the
      Immigration and Naturalization Service,
        (2) because the entity, under subsection (d)(4)(A)(ii) of this
      section (or under any alternative system for verifying
      immigration status with the Immigration and Naturalization
      Service authorized in the Immigration Reform and Control Act of
      1986 (Public Law 99-603)), was required to provide a reasonable
      opportunity to submit documentation, or
        (3) because the entity, under subsection (d)(4)(B)(ii) of this
      section (or under any alternative system for verifying
      immigration status with the Immigration and Naturalization
      Service authorized in the Immigration Reform and Control Act of
      1986 (Public Law 99-603)), was required to wait for the response
      of the Immigration and Naturalization Service to the entity's
      request for official verification of the immigration status of
      the individual, or the response from the Immigration and
      Naturalization Service to the appeal of that individual.
    (f) Verification system; liability of State or local government
      agencies or officials; prior consent agreements, court decrees or
      court orders unaffected
      (1) Notwithstanding any other provision of law, no agency or
    official of a State or local government shall have any liability
    for the design or implementation of the Federal verification system
    described in subsection (d) of this section if the implementation
    by the State or local agency or official is in accordance with
    Federal rules and regulations.
      (2) The verification system of the Department of Housing and
    Urban Development shall not supersede or affect any consent
    agreement entered into or court decree or court order entered prior
    to February 5, 1988.
    (g) Reimbursement for costs of implementation
      The applicable Secretary is authorized to pay to each public
    housing agency or other entity an amount equal to 100 percent of
    the costs incurred by the public housing agency or other entity in
    implementing and operating an immigration status verification
    system under subsection (d) of this section (or under any
    alternative system for verifying immigration status with the
    Immigration and Naturalization Service authorized in the
    Immigration Reform and Control Act of 1986 (Public Law 99-603)).
    (h) "Applicable Secretary" defined
      For purposes of this section, the term "applicable Secretary"
    means - 
        (1) the Secretary of Housing and Urban Development, with
      respect to financial assistance administered by such Secretary
      and financial assistance under subtitle A of title III of the
      Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.
      12851 et seq.]; and
        (2) the Secretary of Agriculture, with respect to financial
      assistance administered by such Secretary.
    (i) Verification of eligibility
      (1) In general
        No individual or family applying for financial assistance may
      receive such financial assistance prior to the affirmative
      establishment and verification of eligibility of at least the
      individual or one family member under subsection (d) of this
      section by the applicable Secretary or other appropriate entity.
      (2) Rules applicable to public housing agencies
        A public housing agency (as that term is defined in section 3
      of the United States Housing Act of 1937 [42 U.S.C. 1437a]) - 
          (A) may, notwithstanding paragraph (1) of this subsection,
        elect not to affirmatively establish and verify eligibility
        before providing financial assistance (!1)

          (B) in carrying out subsection (d) of this section - 
            (i) may initiate procedures to affirmatively establish or
          verify the eligibility of an individual or family under this
          section at any time at which the public housing agency
          determines that such eligibility is in question, regardless
          of whether or not that individual or family is at or near the
          top of the waiting list of the public housing agency;
            (ii) may affirmatively establish or verify the eligibility
          of an individual or family under this section in accordance
          with the procedures set forth in section 1324a(b)(1) of title
          8; and
            (iii) shall have access to any relevant information
          contained in the SAVE system (or any successor thereto) that
          relates to any individual or family applying for financial
          assistance.
      (3) Eligibility of families
        For purposes of this subsection, with respect to a family, the
      term "eligibility" means the eligibility of each family member.

-SOURCE-
    (Pub. L. 96-399, title II, Sec. 214, Oct. 8, 1980, 94 Stat. 1637;
    Pub. L. 97-35, title III, Sec. 329(a), Aug. 13, 1981, 95 Stat. 408;
    Pub. L. 99-603, title I, Sec. 121(a)(2), Nov. 6, 1986, 100 Stat.
    3386; Pub. L. 100-242, title I, Sec. 164(a)-(f)(1), Feb. 5, 1988,
    101 Stat. 1860-1863; Pub. L. 104-193, title IV, Sec. 441(a), Aug.
    22, 1996, 110 Stat. 2276; Pub. L. 104-208, div. C, title III, Sec.
    308(g)(7)(D)(ii), title V, Secs. 572-576, Sept. 30, 1996, 110 Stat.
    3009-624, 3009-684, 3009-685, 3009-687; Pub. L. 105-276, title V,
    Sec. 592(a), Oct. 21, 1998, 112 Stat. 2653; Pub. L. 106-504, Sec.
    3(b), Nov. 13, 2000, 114 Stat. 2312.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (a)(7), is Pub. L. 96-399, Oct.
    8, 1980, 94 Stat. 1614, as amended, known as the Housing and
    Community Development Act of 1980. For complete classification of
    this Act to the Code, see Short Title of 1980 Amendment note set
    out under section 5301 of this title and Tables.
      The United States Housing Act of 1937, referred to in subsec.
    (b), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L.
    93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and
    amended, which is classified generally to this chapter (Sec. 1437
    et seq.). For complete classification of this Act to the Code, see
    Short Title note set out under section 1437 of this title and
    Tables.
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsecs. (b)(1) and (h)(1), is Pub. L. 101-625, Nov. 28,
    1990, 104 Stat. 4079, as amended. Subtitle A of title III of the
    Act, known as the National Homeownership Trust Act, is classified
    generally to subchapter III (Sec. 12851 et seq.) of chapter 130 of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 12701 of this title and
    Tables.
      Section 101 of the Housing and Urban Development Act of 1965,
    referred to in subsec. (b), is section 101 of Pub. L. 89-117, title
    I, Aug. 10, 1965, 79 Stat. 451, which enacted section 1701s of
    Title 12, Banks and Banking, and amended sections 1451 and 1465 of
    this title.
      The Immigration Reform and Control Act of 1986, referred to in
    subsecs. (e)(2), (3) and (g), is Pub. L. 99-603, Nov. 6, 1986, 100
    Stat. 3359. For complete classification of this Act to the Code,
    see Short Title of 1986 Amendments note set out under section 1101
    of Title 8, Aliens and Nationality, and Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Housing and Community
    Development Act of 1980, and not as part of the United States
    Housing Act of 1937 which comprises this chapter.


-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (a)(7). Pub. L. 106-504 added par. (7).
      1998 - Subsec. (b)(2). Pub. L. 105-276, Sec. 592(a)(1),
    substituted "applicable Secretary" for "Secretary of Housing and
    Urban Development".
      Subsec. (c)(1)(B). Pub. L. 105-276, Sec. 592(a)(2), aligned cls.
    (ii) and (iii) with cl. (i).
      Subsec. (d)(1)(A). Pub. L. 105-276, Sec. 592(a)(3)(A), in last
    sentence, substituted "applicable Secretary, or" for "Secretary of
    Housing and Urban Development, or" and "applicable Secretary
    considers" for "Secretary considers".
      Subsec. (d)(2). Pub. L. 105-276, Sec. 592(a)(3)(B), aligned
    concluding provisions with par. (2) and inserted "applicable"
    before "Secretary" in concluding provisions.
      Subsec. (d)(4)(B)(ii). Pub. L. 105-276, Sec. 592(a)(3)(C),
    inserted "applicable" before "Secretary" in introductory
    provisions.
      Subsec. (d)(5). Pub. L. 105-276, Sec. 592(a)(3)(D), substituted
    "the applicable Secretary shall" for "the Secretary shall" in
    introductory provisions.
      Subsec. (d)(6). Pub. L. 105-276, Sec. 592(a)(3)(E), inserted
    "applicable" before "Secretary".
      Subsec. (h). Pub. L. 105-276, Sec. 592(a)(5), redesignated
    subsec. (h), relating to verification of eligibility, as (i).
      Subsec. (h)(1). Pub. L. 105-276, Sec. 592(a)(4)(A), substituted
    "No" for "Except in the case of an election under paragraph (2)(A),
    no" and "subsection (d) of this section" for "this section" and
    inserted "applicable" before "Secretary".
      Subsec. (h)(2)(A). Pub. L. 105-276, Sec. 592(a)(4)(B)(i), added
    subpar. (A) and struck out former subpar. (A) which read as
    follows: "may elect not to comply with this section; and".
      Subsec. (h)(2)(B). Pub. L. 105-276, Sec. 592(a)(4)(B)(ii),
    substituted "in carrying out subsection (d) of this section" for
    "in complying with this section" in introductory provisions.
      Subsec. (i). Pub. L. 105-276, Sec. 592(a)(5), redesignated
    subsec. (h), relating to verification of eligibility, as (i).
      1996 - Subsec. (a). Pub. L. 104-193, Sec. 441(a)(1), substituted
    "applicable Secretary" for "Secretary of Housing and Urban
    Development" in introductory provisions.
      Subsec. (a)(5). Pub. L. 104-208, Sec. 308(g)(7)(D)(ii),
    substituted "section 1231(b)(3)" for "section 1253(h)".
      Subsec. (b). Pub. L. 104-208, Sec. 572, designated existing
    provisions as par. (1) and added par. (2).
      Pub. L. 104-193, Sec. 441(a)(2), inserted "the direct loan
    program under section 1472 of this title or section 1472(c)(5)(D),
    1474, 1490a(a)(2)(A), or 1490r of this title, subtitle A of title
    III of the Cranston-Gonzalez National Affordable Housing Act,"
    after "1715z-1 of title 12,".
      Subsec. (c). Pub. L. 104-193, Sec. 441(a)(1), substituted
    "applicable Secretary" for "Secretary of Housing and Urban
    Development" in two places.
      Subsec. (c)(1). Pub. L. 104-208, Sec. 573(1), substituted "shall"
    for "may, in its discretion," in introductory provisions.
      Subsec. (c)(1)(A). Pub. L. 104-208, Sec. 573(2), inserted at end
    "Financial assistance continued under this subparagraph for a
    family may be provided only on a prorated basis, under which the
    amount of financial assistance is based on the percentage of the
    total number of members of the family that are eligible for that
    assistance under the program of financial assistance and under this
    section."
      Subsec. (c)(1)(B). Pub. L. 104-208, Sec. 573(3), designated first
    sentence of existing provisions as cl. (i), designated second and
    third sentences of existing provisions as cl. (ii) and substituted
    "Except as provided in clause (iii), any deferral" for "Any
    deferral" and "18-months" for "3 years", and added cl. (iii).
      Subsec. (d). Pub. L. 104-208, Sec. 574(1), inserted "or to be"
    after "being" in introductory provisions.
      Pub. L. 104-193, Sec. 441(a)(3), substituted "applicable
    Secretary" for "Secretary" wherever appearing in pars. (2) to (6).
      Pub. L. 104-193, Sec. 441(a)(1), (4), substituted "the term
    'applicable Secretary' " for "the term 'Secretary' " and
    "applicable Secretary" for "Secretary of Housing and Urban
    Development" in closing provisions.
      Subsec. (d)(1)(A). Pub. L. 104-208, Sec. 574(2), inserted at end
    "If the declaration states that the individual is not a citizen or
    national of the United States and that the individual is younger
    than 62 years of age, the declaration shall be verified by the
    Immigration and Naturalization Service. If the declaration states
    that the individual is a citizen or national of the United States,
    the Secretary of Housing and Urban Development, or the agency
    administering assistance covered by this section, may request
    verification of the declaration by requiring presentation of
    documentation that the Secretary considers appropriate, including a
    United States passport, resident alien card, alien registration
    card, social security card, or other documentation."
      Subsec. (d)(2). Pub. L. 104-208, Sec. 574(3), substituted "on
    September 30, 1996, or applying for financial assistance on or
    after September 30, 1996" for "on February 5, 1988" in introductory
    provisions and added concluding provisions.
      Subsec. (d)(4). Pub. L. 104-208, Sec. 574(4)(A), substituted "on
    September 30, 1996, or applying for financial assistance on or
    after September 30, 1996" for "on February 5, 1988" in introductory
    provisions.
      Subsec. (d)(4)(A)(i). Pub. L. 104-208, Sec. 574(4)(B)(i)(I),
    inserted ", not to exceed 30 days," after "reasonable opportunity".
      Subsec. (d)(4)(A)(ii), (iii). Pub. L. 104-208, Sec.
    574(4)(B)(i)(II), (ii), added cls. (ii) and (iii) and struck out
    former cl. (ii) which read as follows: "may not delay, deny,
    reduce, or terminate the individual's eligibility for financial
    assistance on the basis of the individual's immigration status
    until such a reasonable opportunity has been provided; and".
      Subsec. (d)(4)(B)(ii). Pub. L. 104-208, Sec. 574(4)(C), added cl.
    (ii) and struck out former cl. (ii) which read as follows: "pending
    such verification or appeal, the applicable Secretary may not
    delay, deny, reduce, or terminate the individual's eligibility for
    financial assistance on the basis of the individual's immigration
    status, and".
      Subsec. (d)(5). Pub. L. 104-208, Sec. 574(5), inserted ", the
    Secretary shall" after "status" in introductory provisions, added
    subpars. (A) to (C), and struck out former subpars. (A) and (B)
    which read as follows:
      "(A) the applicable Secretary shall deny or terminate the
    individual's eligibility for financial assistance, and
      "(B) the applicable fair hearing process shall be made available
    with respect to the individual."
      Subsec. (d)(6). Pub. L. 104-208, Sec. 574(6), added par. (6) and
    struck out former par. (6) which read as follows: "For purposes of
    paragraph (5)(B), the applicable fair hearing process made
    available with respect to any individual shall include not less
    than the following procedural protections:
        "(A) The applicable Secretary shall provide the individual with
      written notice of the determination described in paragraph (5)
      and of the opportunity for a hearing with respect to the
      determination.
        "(B) Upon timely request by the individual, the applicable
      Secretary shall provide a hearing before an impartial hearing
      officer designated by the applicable Secretary, at which hearing
      the individual may produce evidence of a satisfactory immigration
      status.
        "(C) The applicable Secretary shall notify the individual in
      writing of the decision of the hearing officer on the appeal of
      the determination in a timely manner.
        "(D) Financial assistance may not be denied or terminated until
      the completion of the hearing process."
      Subsec. (e). Pub. L. 104-193, Sec. 441(a)(1), substituted
    "applicable Secretary" for "Secretary of Housing and Urban
    Development" in introductory provisions.
      Subsec. (e)(3). Pub. L. 104-208, Sec. 575(2), inserted at end
    "the response from the Immigration and Naturalization Service to
    the appeal of that individual."
      Subsec. (e)(4). Pub. L. 104-208, Sec. 575(1), (3), struck out
    par. (4) which read as follows: "because of a fair hearing process
    described in subsection (d)(5)(B) of this section (or provided for
    under any alternative system for verifying immigration status with
    the Immigration and Naturalization Service authorized in the
    Immigration Reform and Control Act of 1986 (Public Law 99-603))."
      Subsec. (g). Pub. L. 104-193, Sec. 441(a)(1), substituted
    "applicable Secretary" for "Secretary of Housing and Urban
    Development".
      Subsec. (h). Pub. L. 104-208, Sec. 576, added subsec. (h)
    relating to verification of eligibility.
      Pub. L. 104-193, Sec. 441(a)(5), added subsec. (h) defining
    "applicable Secretary".
      1988 - Subsec. (a)(6). Pub. L. 100-242, Sec. 164(a), added par.
    (6).
      Subsec. (c). Pub. L. 100-242, Sec. 164(b), added subsec. (c).
      Subsec. (d). Pub. L. 100-242, Sec. 164(c)(8), amended last
    sentence generally. Prior to amendment, last sentence read as
    follows: "In this subsection and subsection (e) of this section,
    the term 'Secretary' refers to the Secretary and to a public
    housing authority or other entity which makes financial assistance
    available."
      Subsec. (d)(2). Pub. L. 100-242, Sec. 164(c)(1), inserted ", is
    not 62 years of age or older, and is receiving financial assistance
    on February 5, 1988" after "States".
      Subsec. (d)(4). Pub. L. 100-242, Sec. 164(c)(2), in introductory
    provisions, inserted ", is not 62 years of age or older, and is
    receiving financial assistance on February 5, 1988" after "States",
    and "or recertification" after "application".
      Subsec. (d)(4)(A)(i). Pub. L. 100-242, Sec. 164(c)(3), inserted
    after comma "or to appeal to the Immigration and Naturalization
    Service the verification determination of the Immigration and
    Naturalization Service under paragraph (3),".
      Subsec. (d)(4)(B). Pub. L. 100-242, Sec. 164(c)(4), amended
    introductory provisions generally. Prior to amendment, introductory
    provisions read as follows: "if there are submitted documents which
    the Secretary determines constitutes reasonable evidence indicating
    such status - ".
      Subsec. (d)(4)(B)(i), (ii). Pub. L. 100-242, Sec. 164(c)(5), (6),
    inserted "or additional information" after "documents" in cl. (i),
    and "or appeal" after "verification" in cl. (ii).
      Subsec. (d)(6). Pub. L. 100-242, Sec. 164(c)(7), added par. (6).
      Subsec. (e). Pub. L. 100-242, Sec. 164(d)(1), in introductory
    provisions, inserted "of Housing and Urban Development" after
    "Secretary".
      Subsec. (e)(2), (3). Pub. L. 100-242, Sec. 164(d)(2), (3),
    inserted "(or under any alternative system for verifying
    immigration status with the Immigration and Naturalization Service
    authorized in the Immigration Reform and Control Act of 1986
    (Public Law 99-603))".
      Subsec. (e)(4). Pub. L. 100-242, Sec. 164(d)(4), inserted "(or
    provided for under any alternative system for verifying immigration
    status with the Immigration and Naturalization Service authorized
    in the Immigration Reform and Control Act of 1986 (Public Law 99-
    603))".
      Subsec. (f). Pub. L. 100-242, Sec. 164(e), added subsec. (f).
      Subsec. (g). Pub. L. 100-242, Sec. 164(f)(1), added subsec. (g).
      1986 - Subsecs. (d), (e). Pub. L. 99-603 added subsecs. (d) and
    (e).
      1981 - Subsec. (a). Pub. L. 97-35 substituted provisions relating
    to restrictions on use of assisted housing by resident aliens
    meeting further conditions for provisions relating to prohibition
    on financial assistance to nonimmigrant student-aliens.
      Subsec. (b). Pub. L. 97-35 struck out "(1)" after "(b)" and par.
    (2) which defined "nonimmigrant student-alien".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-276, title V, Sec. 592(b), Oct. 21, 1998, 112 Stat.
    2654, provided that: "The amendments made by this section [amending
    this section] are made on, and shall apply beginning upon, the date
    of the enactment of this Act [Oct. 21, 1998]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by section 308(g)(7)(D)(ii) of Pub. L. 104-208
    effective, with certain transitional provisions, on the first day
    of the first month beginning more than 180 days after Sept. 30,
    1996, see section 309 of Pub. L. 104-208, set out as a note under
    section 1101 of Title 8, Aliens and Nationality.
      Amendment by sections 572-576 of Pub. L. 104-208 effective Sept.
    30, 1996, see section 591 of Pub. L. 104-208, set out as a note
    under section 1101 of Title 8.

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 164(h) of Pub. L. 100-242 provided that:
      "(1) The provisions of, and amendments made by, subsections (a),
    (b), (e), (f), and (g) [amending this section, repealing section
    1437r of this title, and enacting provisions set out below] shall
    take effect on the date of the enactment of this Act [Feb. 5,
    1988].
      "(2) The amendments made by subsections (c) and (d) [amending
    this section] shall take effect on October 1, 1988."

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Amendment by Pub. L. 99-603 effective on Oct. 1, 1988, with
    certain exceptions and qualifications, see section 121(c)(3), (4)
    of Pub. L. 99-603, set out as a note under section 1320b-7 of this
    title.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

                       SHORT TITLE OF 1996 AMENDMENT                   
      Section 571 of div. C of Pub. L. 104-208 provided that: "This
    subtitle [subtitle E (Secs. 571-577) of title V of div. C of Pub.
    L. 104-208, amending this section and enacting provisions set out
    as a note below] may be cited as the 'Use of Assisted Housing by
    Aliens Act of 1996'."

                                REGULATIONS                            
      Section 577 of div. C of Pub. L. 104-208 provided that:
      "(a) Issuance. - Not later than the 60 days after the date of
    enactment of this Act [Sept. 30, 1996], the Secretary of Housing
    and Urban Development shall issue any regulations necessary to
    implement the amendments made by this part [probably means this
    subtitle, subtitle E (Secs. 571-577) of title V of div. C of Pub.
    L. 104-208, see Short Title of 1996 Amendment note above]. Such
    regulations shall be issued in the form of an interim final rule,
    which shall take effect upon issuance and shall not be subject to
    the provisions of section 533 of title 5, United States Code,
    regarding notice or opportunity for comment.
      "(b) Failure To Issue. - If the Secretary fails to issue the
    regulations required under subsection (a) before the date specified
    in that subsection, the regulations relating to restrictions on
    assistance to noncitizens, contained in the final rule issued by
    the Secretary of Housing and Urban Development in RIN-2501-AA63
    (Docket No. R-95-1409; FR-2383-F-050), published in the Federal
    Register on March 20, 1995 (Vol. 60, No. 53; pp. 14824-14861),
    shall not apply after that date."


-TRANS-
    ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF
                                 FUNCTIONS
      For abolition of Immigration and Naturalization Service, transfer
    of functions, and treatment of related references, see note set out
    under section 1551 of Title 8, Aliens and Nationality.


-MISC2-
          TRANSITIONAL CERTIFICATION AND DOCUMENTATION PROVISIONS      
      Section 164(g) of Pub. L. 100-242 provided that: "In carrying out
    section 214 of the Housing and Community Development Act of 1980
    [this section] during fiscal year 1988, the Secretary of Housing
    and Urban Development shall require, as a condition of providing
    financial assistance for the benefit of any individual, that such
    individual - 
        "(1) declare in writing, under penalty of perjury, whether or
      not such individual is a citizen or national of the United
      States; and
        "(2) if not a citizen or national - 
          "(A) declare in writing, under penalty of perjury, the
        immigration status of such individual, if such individual is
        not less than 62 years of age 'and is receiving financial
        assistance on the date of the enactment of the Housing and
        Community Development Act of 1987' [Feb. 5, 1988]; or
          "(B) provide such documentation regarding the immigration
        status of such individual as the Secretary may require by
        regulation."

                 DELAYED IMPLEMENTATION OF 1981 AMENDMENT             
      Pub. L. 98-181, title IV, Sec. 474(e), Nov. 30, 1983, 97 Stat.
    1239, provided in part that: "The Secretary may not implement the
    amendment to section 214 of the Housing and Community Development
    Act of 1980 [this section], made by section 329(a) of the Housing
    and Community Development Amendments of 1981 [Pub. L. 97-35],
    before the expiration of the one-year period following the date of
    the enactment of this Act [Nov. 30, 1983]."

      ALIENS GRANTED CONDITIONAL ENTRY ELIGIBLE FOR ASSISTED HOUSING  
      Section 329(b) of Pub. L. 97-35 provided that: "An alien who is
    lawfully present in the United States as a result of being granted
    conditional entry pursuant to section 203(a)(7) of the Immigration
    and Nationality Act (8 U.S.C. 1153(a)(7)) before April 1, 1980,
    because of persecution or fear of persecution on account of race,
    religion, or political opinion or because of being uprooted by
    catastrophic natural calamity shall be deemed, for purposes of
    section 214 of the Housing and Community Development Act of 1980
    [this section], to be an alien described in section 214(a)(3) of
    such Act [subsec. (a)(3) of this section]."

-FOOTNOTE-               

    (!1) So in original. Probably should be followed by "; and".


-End-



-CITE-
    42 USC Sec. 1436b                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1436b. Financial assistance in impacted areas

-STATUTE-
      The Secretary of Housing and Urban Development shall not exclude
    from consideration for financial assistance under federally
    assisted housing programs proposals for housing projects solely
    because the site proposed is located within an impacted area. For
    the purposes of this section, the term "federally assisted housing
    programs" means any program authorized by the United States Housing
    Act of 1937 [42 U.S.C. 1437 et seq.], sections 1715z and 1715z-1 of
    title 12, section 101 of the Housing and Urban Development Act of
    1965 [12 U.S.C. 1701s], or section 1701q of title 12.

-SOURCE-
    (Pub. L. 96-399, title II, Sec. 216, Oct. 8, 1980, 94 Stat. 1638.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The United States Housing Act of 1937, referred to in text, is
    act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and amended,
    which is classified generally to this chapter (Sec. 1437 et seq.).
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1437 of this title and Tables.
      Section 101 of the Housing and Urban Development Act of 1965,
    referred to in text, is section 101 of Pub. L. 89-117, title I,
    Aug. 10, 1965, 79 Stat. 451, as amended, which enacted section
    1701s of Title 12, Banks and Banking, and amended sections 1451 and
    1465 of this title.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Housing and Community
    Development Act of 1980, and not as part of the United States
    Housing Act of 1937 which comprises this chapter.

-End-



-CITE-
    42 USC Sec. 1436c                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1436c. Insurance for public housing agencies and Indian
      housing authorities

-STATUTE-
      On and after October 28, 1991, notwithstanding any other
    provision of State or Federal law, regulation or other requirement,
    any public housing agency or Indian housing authority that
    purchases any line of insurance from a nonprofit insurance entity,
    owned and controlled by public housing agencies or Indian housing
    authorities, and approved by the Secretary, may purchase such
    insurance without regard to competitive procurement.
      On and after October 28, 1991, the Secretary shall establish
    standards as set forth herein, by regulation, adopted after notice
    and comment rulemaking pursuant to subchapter II of chapter 5 of
    title 5, which will become effective not later than one year from
    October 28, 1991.
      On and after October 28, 1991, in establishing standards for
    approval of such nonprofit insurance entities, the Secretary shall
    be assured that such entities have sufficient surplus capital to
    meet reasonably expected losses, reliable accounting systems, sound
    actuarial projections, and employees experienced in the insurance
    industry. The Secretary shall not place restrictions on the
    investment of funds of any such entity that is regulated by the
    insurance department of any State that describes the types of
    investments insurance companies licensed in such State may make.
    With regard to such entities that are not so regulated, the
    Secretary shall establish investment guidelines that are comparable
    to State law regulating the investments of insurance companies.
      On and after October 28, 1991, the Secretary shall not approve
    additional nonprofit insurance entities until such standards have
    become final, nor shall the Secretary revoke the approval of any
    nonprofit insurance entity previously approved by the Department
    unless for cause and after a due process hearing.
      On and after October 28, 1991, until the Department of Housing
    and Urban Development has adopted regulations specifying the nature
    and quality of insurance covering the potential personal injury
    liability exposure of public housing authorities and Indian housing
    authorities (and their contractors, including architectural and
    engineering services) as a result of testing and abatement of lead-
    based paint in federally subsidized public and Indian housing
    units, said authorities shall be permitted to purchase insurance
    for such risk, as an allowable expense against amounts available
    for capital improvements (modernization): Provided, That such
    insurance is competitively selected and that coverage provided
    under such policies, as certified by the authority, provides
    reasonable coverage for the risk of liability exposure, taking into
    consideration the potential liability concerns inherent in the
    testing and abatement of lead-based paint, and the managerial and
    quality assurance responsibilities associated with the conduct of
    such activities.

-SOURCE-
    (Pub. L. 102-139, title II, Oct. 28, 1991, 105 Stat. 758.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Herein, referred to in text, probably means Pub. L. 102-139, Oct.
    28, 1991, 105 Stat. 736, known as the Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1992. For complete classification of this Act
    to the Code, see Tables.

-COD-
                               CODIFICATION                           
      In the second undesignated par., "subchapter II of chapter 5 of
    title 5" was substituted for "the Administrative Procedures Act" on
    authority of Pub. L. 89-554, Sec. 7(b), Sept. 6, 1966, 80 Stat.
    631, the first section of which enacted Title 5, Government
    Organization and Employees.
      Section was enacted as part of the Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1992, and not as part of the United States
    Housing Act of 1937 which comprises this chapter.

-End-



-CITE-
    42 USC Sec. 1436d                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING

-HEAD-
    Sec. 1436d. Consultation with affected areas in settlement of
      litigation

-STATUTE-
      In negotiating any settlement of, or consent decree for,
    significant litigation regarding public housing or section 8 [42
    U.S.C. 1437f] tenant-based assistance that involves the Secretary
    and any public housing agency or any unit of general local
    government, the Secretary shall seek the views of any units of
    general local government and public housing agencies having
    jurisdictions that are adjacent to the jurisdiction of the public
    housing agency involved, if the resolution of such litigation would
    involve the acquisition or development of public housing dwelling
    units or the use of vouchers under section 1437f of this title in
    jurisdictions that are adjacent to the jurisdiction of the public
    housing agency involved in the litigation.

-SOURCE-
    (Pub. L. 105-276, title V, Sec. 599H(b), Oct. 21, 1998, 112 Stat.
    2668.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Secretary, referred to in text, means the Secretary of Housing
    and Urban Development.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Quality Housing and Work
    Responsibility Act of 1998, and not as part of the United States
    Housing Act of 1937 which comprises this chapter.


-MISC1-
                              EFFECTIVE DATE                          
      Pub. L. 105-276, title V, Sec. 599H(m), Oct. 21, 1998, 112 Stat.
    2670, provided that: "This section [enacting this section and
    amending section 1490 of this title] shall take effect on, and the
    amendments made by this section are made on, and shall apply
    beginning upon, the date of the enactment of this Act [Oct. 21,
    1998]."

-End-


-CITE-
    42 USC SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING    01/03/2007 

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
            SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING        


-MISC1-
                                AMENDMENTS                            
      1988 - Pub. L. 100-358, Sec. 5, June 29, 1988, 102 Stat. 681,
    added subchapter heading.

-End-



-CITE-
    42 USC Sec. 1437                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437. Declaration of policy and public housing agency
      organization

-STATUTE-
    (a) Declaration of policy
      It is the policy of the United States - 
        (1) to promote the general welfare of the Nation by employing
      the funds and credit of the Nation, as provided in this chapter -
      
          (A) to assist States and political subdivisions of States to
        remedy the unsafe housing conditions and the acute shortage of
        decent and safe dwellings for low-income families;
          (B) to assist States and political subdivisions of States to
        address the shortage of housing affordable to low-income
        families; and
          (C) consistent with the objectives of this subchapter, to
        vest in public housing agencies that perform well, the maximum
        amount of responsibility and flexibility in program
        administration, with appropriate accountability to public
        housing residents, localities, and the general public;

        (2) that the Federal Government cannot through its direct
      action alone provide for the housing of every American citizen,
      or even a majority of its citizens, but it is the responsibility
      of the Government to promote and protect the independent and
      collective actions of private citizens to develop housing and
      strengthen their own neighborhoods;
        (3) that the Federal Government should act where there is a
      serious need that private citizens or groups cannot or are not
      addressing responsibly; and
        (4) that our Nation should promote the goal of providing decent
      and affordable housing for all citizens through the efforts and
      encouragement of Federal, State, and local governments, and by
      the independent and collective actions of private citizens,
      organizations, and the private sector.
    (b) Public housing agency organization
      (1) Required membership
        Except as provided in paragraph (2), the membership of the
      board of directors or similar governing body of each public
      housing agency shall contain not less than 1 member - 
          (A) who is directly assisted by the public housing agency;
        and
          (B) who may, if provided for in the public housing agency
        plan, be elected by the residents directly assisted by the
        public housing agency.
      (2) Exception
        Paragraph (1) shall not apply to any public housing agency - 
          (A) that is located in a State that requires the members of
        the board of directors or similar governing body of a public
        housing agency to be salaried and to serve on a full-time
        basis; or
          (B) with less than 300 public housing units, if - 
            (i) the agency has provided reasonable notice to the
          resident advisory board of the opportunity of not less than 1
          resident described in paragraph (1) to serve on the board of
          directors or similar governing body of the public housing
          agency pursuant to such paragraph; and
            (ii) within a reasonable time after receipt by the resident
          advisory board established by the agency pursuant to section
          1437c-1(e) of this title of notice under clause (i), the
          public housing agency has not been notified of the intention
          of any resident to participate on the board of directors.
      (3) Nondiscrimination
        No person shall be prohibited from serving on the board of
      directors or similar governing body of a public housing agency
      because of the residence of that person in a public housing
      project or status as assisted under section 1437f of this title.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 2, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653; amended Pub. L.
    97-35, title III, Sec. 322(c), Aug. 13, 1981, 95 Stat. 402;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 101-625, title V, Sec. 572(2), Nov. 28, 1990,
    104 Stat. 4236; Pub. L. 105-276, title V, Sec. 505, Oct. 21, 1998,
    112 Stat. 2522.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 2 of act Sept. 1, 1937, ch. 896, 50 Stat. 888,
    related to definitions and was classified to section 1402 of this
    title, prior to the general revision of this chapter by Pub. L. 93-
    383.
      Prior similar provisions were contained in section 1 of act Sept.
    1, 1937, ch. 896, 50 Stat. 888, which was classified to section
    1401 of this title prior to the general revision of this chapter by
    Pub. L. 93-383.

                                AMENDMENTS                            
      1998 - Pub. L. 105-276 amended section catchline and text
    generally. Prior to amendment, text read as follows: "It is the
    policy of the United States to promote the general welfare of the
    Nation by employing its funds and credit, as provided in this
    chapter, to assist the several States and their political
    subdivisions to remedy the unsafe and unsanitary housing conditions
    and the acute shortage of decent, safe, and sanitary dwellings for
    families of lower income and, consistent with the objectives of
    this chapter, to vest in local public housing agencies the maximum
    amount of responsibility in the administration of their housing
    programs. No person should be barred from serving on the board of
    directors or similar governing body of a local public housing
    agency because of his tenancy in a low-income housing project."
      1990 - Pub. L. 101-625 substituted "low-income housing" for
    "lower income housing".
      1981 - Pub. L. 97-35 substituted reference to lower income for
    reference to low income in two places.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-276, title V, Sec. 503, Oct. 21, 1998, 112 Stat.
    2521, provided that:
      "(a) In General. - The amendments under this title [see Tables
    for classification] are made on the date of the enactment of this
    Act [Oct. 21, 1998], but this title shall take effect, and the
    amendments made by this title shall apply beginning upon, October
    1, 1999, except - 
        "(1) as otherwise specifically provided in this title; or
        "(2) as otherwise specifically provided in any amendment made
      by this title.
    The Secretary may, by notice, implement any provision of this title
    or any amendment made by this title before such date, except to the
    extent that such provision or amendment specifically provides
    otherwise.
      "(b) Savings Provision. - Notwithstanding any amendment under
    this title that is made (in accordance with subsection (a)) on the
    date of the enactment of this Act [Oct. 21, 1998] but applies
    beginning on October 1, 1999, the provisions of law amended by such
    amendment, as such provisions were in effect immediately before the
    making of such amendment, shall continue to apply during the period
    beginning on the date of the enactment of this Act and ending upon
    October 1, 1999, unless otherwise specifically provided by this
    title.
      "(c) Technical Recommendations. - Not later than 9 months after
    the date of the enactment of this Act [Oct. 21, 1998], the
    Secretary shall submit to the Committee on Banking, Housing, and
    Urban Affairs of the Senate and the Committee on Banking and
    Financial Services [now Committee on Financial Services] of the
    House of Representatives, recommended technical and conforming
    legislative changes necessary to carry out this title and the
    amendments made by this title.
      "(d) List of Obsolete Documents. - Not later than October 1,
    1999, the Secretary of Housing and Urban Development shall cause to
    be published in the Federal Register a list of all rules,
    regulations, and orders (including all handbooks, notices, and
    related requirements) pertaining to public housing or section 8 [42
    U.S.C. 1437f] tenant-based programs issued or promulgated under the
    United States Housing Act of 1937 [42 U.S.C. 1437 et seq.] before
    the date of the enactment of this Act [Oct. 21, 1998] that are or
    will be obsolete because of the enactment of this Act or are
    otherwise obsolete.
      "(e) Protection of Certain Regulations. - No provision of this
    title may be construed to repeal the regulations of the Secretary
    regarding tenant participation and tenant opportunities in public
    housing (24 C.F.R. 964).
      "(g)[(f)] Effective Date. - This section shall take effect on the
    date of the enactment of this Act [Oct. 21, 1998]."

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

                              EFFECTIVE DATE                          
      Section 201(b) of Pub. L. 93-383 provided that: "The provisions
    of subsection (a) of this section [enacting sections 1437 to 1437j
    of this title] shall be effective on such date or dates as the
    Secretary of Housing and Urban Development shall prescribe, but not
    later than eighteen months after the date of the enactment of this
    Act [Aug. 22, 1974]; except that (1) all of the provisions of
    section 3(1) of the United States Housing Act of 1937, as amended
    by subsection (a) of this section [section 1437a(1) of this title],
    shall become effective on the same date, (2) all of the provisions
    of sections 5 and 9(c) of such Act as so amended [sections 1437c
    and 1437g(c) of this title] shall become effective on the same
    date, and (3) section 8 of such Act [section 1437f of this title]
    as so amended shall be effective not later than January 1, 1975."
      Section 3(1) of the United States Housing Act of 1937, as
    amended, effective Sept. 26, 1975, see Effective Date note set out
    under section 1437a of this title.

                       SHORT TITLE OF 2003 AMENDMENT                   
      Pub. L. 108-186, title IV, Sec. 401, Dec. 16, 2003, 117 Stat.
    2693, provided that: "This title [amending section 1437v of this
    title and enacting provisions set out as a note under section 1437v
    of this title] may be cited as the 'HOPE VI Program Reauthorization
    and Small Community Mainstreet Rejuvenation and Housing Act of
    2003'."

                       SHORT TITLE OF 2002 AMENDMENT                   
      Pub. L. 107-116, title VI, Sec. 601(a), Jan. 10, 2002, 115 Stat.
    2220, provided that: "This title [amending sections 1437f and 5305
    of this title and section 1715n of Title 12, Banks and Banking,
    enacting provisions set out as notes under sections 1437f and 11301
    of this title and sections 1701q and 1715n of Title 12, and
    amending provisions set out as notes under sections 1437f and 11301
    of this title and section 1701q of Title 12] may be cited as the
    'Mark-to-Market Extension Act of 2001'."

                       SHORT TITLE OF 1998 AMENDMENT                   
      Pub. L. 105-276, title V, Sec. 501(a), Oct. 21, 1998, 112 Stat.
    2518, provided that: "This title [see Tables for classification]
    may be cited as the 'Quality Housing and Work Responsibility Act of
    1998'."

                       SHORT TITLE OF 1988 AMENDMENT                   
      Section 1 of Pub. L. 100-358 provided that: "This Act [enacting
    sections 1437aa to 1437ee of this title, amending sections 1437a
    and 1437c of this title, and enacting provisions set out as a note
    under section 1437a of this title] may be cited as the 'Indian
    Housing Act of 1988'."

                                SHORT TITLE                            
      Section 1 of title I of act Sept. 1, 1937, ch. 896, as added by
    section 201(a) of Pub. L. 93-383; renumbered title I, June 29,
    1988, Pub. L. 100-358, Sec. 5, 102 Stat. 681, provided that: "This
    Act [enacting this chapter] may be cited as the 'United States
    Housing Act of 1937'."

             APPLICABILITY OF 1996 AMENDMENTS; INDIAN HOUSING         
      Pub. L. 104-204, title II, Sec. 201(d), Sept. 26, 1996, 110 Stat.
    2893, provided that: "In accordance with section 201(b)(2) of the
    United States Housing Act of 1937 [former 42 U.S.C. 1437aa(b)(2)],
    the amendments made by subsections (a), (b), and (c) [amending
    provisions set out as notes under sections 1437a, 1437c, and 1437l
    of this title] shall apply to public housing developed or operated
    pursuant to a contract between the Secretary of Housing and Urban
    Development and an Indian housing authority."
      Pub. L. 104-134, title I, Sec. 101(e) [title II, Sec. 201(a)(3)],
    Apr. 26, 1996, 110 Stat. 1321-257, 1321-278; renumbered title I,
    Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided
    that: "In accordance with section 201(b)(2) of the United States
    Housing Act of 1937 [former 42 U.S.C. 1437aa(b)(2)], the amendment
    made by this subsection [amending section 1437l of this title]
    shall apply to public housing developed or operated pursuant to a
    contract between the Secretary of Housing and Urban Development and
    an Indian housing authority."
      Pub. L. 104-134, title I, Sec. 101(e) [title II, Sec. 201(b)(3)],
    Apr. 26, 1996, 110 Stat. 1321-257, 1321-278; renumbered title I,
    Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided
    that: "In accordance with section 201(b)(2) of the United States
    Housing Act of 1937 [former 42 U.S.C. 1437aa(b)(2)], the amendments
    made by this subsection [amending section 1437p of this title and
    provisions set out as a note under section 1437c of this title] and
    by sections 1002(a), (b), and (c) of Public Law 104-19 [amending
    sections 1437c, 1437p, and 1437aaa-3 of this title] shall apply to
    public housing developed or operated pursuant to a contract between
    the Secretary of Housing and Urban Development and an Indian
    housing authority."
      Pub. L. 104-99, title IV, Sec. 402(e), Jan. 26, 1996, 110 Stat.
    43, which provided that amendments made by section 402(a) to (d)
    and (f) of Pub. L. 104-99 were also to apply to public housing
    developed or operated pursuant to contract between Secretary of
    Housing and Urban Development and an Indian housing authority, was
    repealed by Pub. L. 105-276, title V, Sec. 595(e)(16), Oct. 21,
    1998, 112 Stat. 2659.

             APPLICABILITY OF 1990 AMENDMENTS; INDIAN HOUSING         
      Section 103(b) of Pub. L. 102-550 provided that:
      "(1) In general. - In accordance with section 201(b)(2) of the
    United States Housing Act of 1937 ([former] 42 U.S.C.
    1437aa(b)(2)), the provisions of sections 572, 573, and 574 of the
    Cranston-Gonzalez National Affordable Housing Act [Pub. L. 101-625,
    amending this section and sections 1437a, 1437b to 1437d, 1437f,
    1437g, 1437i, 1437j, 1437l, 1437n, 1437p, 1437r, 1437s, and 1437aa
    to 1437dd of this title, repealing section 1437o of this title, and
    enacting provisions set out as notes under section 1437a of this
    title] shall apply to public housing developed or operated pursuant
    to a contract between the Secretary of Housing and Urban
    Development and an Indian Housing Authority.
      "(2) Effective date. - Paragraph (1) shall take effect as if such
    provision were enacted upon the date of the enactment of the
    Cranston-Gonzalez National Affordable Housing Act [Nov. 28, 1990]."
      Section 419 of title IV of Pub. L. 101-625 provided that: "In
    accordance with section 201(b)(2) of the United States Housing Act
    of 1937 [former 42 U.S.C. 1437aa(b)(2)], the amendments made by
    this subtitle [subtitle A (Secs. 411-419) of title IV of Pub. L.
    101-625, enacting subchapter II-A of this chapter and amending
    sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this
    title] shall also apply to public housing developed or operated
    pursuant to a contract between the Secretary of Housing and Urban
    Development and an Indian housing authority, except that nothing in
    this title [see Short Title note set out under section 1437aaa of
    this title] affects the program under section 202 of such Act
    [former 42 U.S.C. 1437bb]."
      Section 527 of Pub. L. 101-625 provided that: "In accordance with
    section 201(b)(2) of the United States Housing Act of 1937
    ([former] 42 U.S.C. 1437aa(b)(2)), the provisions of this subtitle
    [subtitle A (Secs. 501-527) of title V of Pub. L. 101-625, see
    Tables for classification] that modify the public housing program
    under title I of the United States Housing Act of 1937 [42 U.S.C.
    1437 et seq.] shall also apply to public housing developed or
    operated pursuant to a contract between the Secretary of Housing
    and Urban Development and an Indian housing authority, except that
    sections 502 and 510 [amending sections 1437d and 1437l of this
    title and enacting provisions set out as notes under section 1437d
    of this title] shall not apply."

             APPLICABILITY OF 1989 AMENDMENTS; INDIAN HOUSING         
      Pub. L. 101-235, title I, Sec. 101(d), Dec. 15, 1989, 103 Stat.
    1990, provided that: "In accordance with section 201(b)(2) of the
    United States Housing Act of 1937 [former 42 U.S.C. 1437aa(b)(2)],
    the amendments made by subsections (a), (b), and (c) of this
    section [amending section 1439 of this title] shall also apply to
    public housing developed or operated pursuant to a contract between
    the Secretary of Housing and Urban Development and an Indian
    housing authority."
      Pub. L. 101-235, title I, Sec. 104(c), Dec. 15, 1989, 103 Stat.
    1998, provided that: "In accordance with section 201(b)(2) of the
    United States Housing Act of 1937 [former 42 U.S.C. 1437aa(b)(2)],
    the amendment made by subsection (a) [amending section 1439 of this
    title] and the provisions of subsection (b) of this section [set
    out as an Effective Date of 1989 Amendment note under section 1439
    of this title] shall also apply to public housing developed or
    operated pursuant to a contract between the Secretary of Housing
    and Urban Development and an Indian housing authority."

          REPORTS ON NUMBER AND COST OF FEDERALLY ASSISTED UNITS      
      Pub. L. 109-115, div. A, title III, Sec. 314, Nov. 30, 2005, 119
    Stat. 2463, provided that: "The Secretary of Housing and Urban
    Development shall submit an annual report no later than August 30,
    2006 and annually thereafter to the House and Senate Committees on
    Appropriations regarding the number of Federally assisted units
    under lease and the per unit cost of these units to the Department
    of Housing and Urban Development."
      Similar provisions were contained in the following prior
    appropriation acts:
      Pub. L. 108-447, div. I, title II, Sec. 214, Dec. 8, 2004, 118
    Stat. 3318.
      Pub. L. 108-199, div. G, title II, Sec. 213, Jan. 23, 2004, 118
    Stat. 393.
      Pub. L. 108-7, div. K, title II, Sec. 217, Feb. 20, 2003, 117
    Stat. 504.

                     FUNDING OF CERTAIN PUBLIC HOUSING                 
      Pub. L. 105-276, title II, Sec. 226, Oct. 21, 1998, 112 Stat.
    2490, which provided that no funds in this Act or any other Act may
    hereafter be used by the Secretary of Housing and Urban Development
    to determine allocations or provide assistance for operating
    subsidies or modernization for certain State and city funded and
    locally developed public housing units unless such unit was so
    assisted before Oct. 1, 1998, was repealed by Pub. L. 108-7, div.
    K, title II, Sec. 212(b), Feb. 20, 2003, 117 Stat. 504.
      [Pub. L. 108-7, div. K, title II, Sec. 212(d), Feb. 20, 2003, 117
    Stat. 504, provided that: "The amendment made by subsection (b)
    [repealing section 226 of Pub. L. 105-276, set out above] shall be
    deemed to have taken effect on October 21, 1998."]

             CONGRESSIONAL STATEMENT OF FINDINGS AND PURPOSES         
      Pub. L. 105-276, title V, Sec. 502, Oct. 21, 1998, 112 Stat.
    2520, provided that:
      "(a) Findings. - Congress finds that - 
        "(1) there exists throughout the Nation a need for decent,
      safe, and affordable housing;
        "(2) the inventory of public housing units owned, assisted, or
      operated by public housing agencies, an asset in which the
      Federal Government has invested over $90,000,000,000, has
      traditionally provided rental housing that is affordable to low-
      income persons;
        "(3) despite serving this critical function, the public housing
      system is plagued by a series of problems, including the
      concentration of very poor people in very poor neighborhoods and
      disincentives for economic self-sufficiency;
        "(4) the Federal method of overseeing every aspect of public
      housing by detailed and complex statutes and regulations has
      aggravated the problem and has placed excessive administrative
      burdens on public housing agencies; and
        "(5) the interests of low-income persons, and the public
      interest, will best be served by a reformed public housing
      program that - 
          "(A) consolidates many public housing programs into programs
        for the operation and capital needs of public housing;
          "(B) streamlines program requirements;
          "(C) vests in public housing agencies that perform well the
        maximum feasible authority, discretion, and control with
        appropriate accountability to public housing residents,
        localities, and the general public; and
          "(D) rewards employment and economic self-sufficiency of
        public housing residents.
      "(b) Purposes. - The purpose of this title [see Tables for
    classification] is to promote homes that are affordable to low-
    income families in safe and healthy environments, and thereby
    contribute to the supply of affordable housing, by - 
        "(1) deregulating and decontrolling public housing agencies,
      thereby enabling them to perform as property and asset managers;
        "(2) providing for more flexible use of Federal assistance to
      public housing agencies, allowing the authorities to leverage and
      combine assistance amounts with amounts obtained from other
      sources;
        "(3) facilitating mixed income communities and decreasing
      concentrations of poverty in public housing;
        "(4) increasing accountability and rewarding effective
      management of public housing agencies;
        "(5) creating incentives and economic opportunities for
      residents of dwelling units assisted by public housing agencies
      to work, become self-sufficient, and transition out of public
      housing and federally assisted dwelling units;
        "(6) consolidating the voucher and certificate programs for
      rental assistance under section 8 of the United States Housing
      Act of 1937 [42 U.S.C. 1437f] into a single market-driven program
      that will assist in making tenant-based rental assistance under
      such section more successful at helping low-income families
      obtain affordable housing and will increase housing choice for
      low-income families; and
        "(7) remedying the problems of troubled public housing agencies
      and replacing or revitalizing severely distressed public housing
      projects."

                         MENTAL HEALTH ACTION PLAN                     
      Pub. L. 105-276, title V, Sec. 517, Oct. 21, 1998, 112 Stat.
    2550, provided that: "The Secretary of Housing and Urban
    Development, in consultation with the Secretary of Health and Human
    Services, the Secretary of Labor, and appropriate State and local
    officials and representatives, shall - 
        "(1) develop an action plan and list of recommendations for the
      improvement of means of providing severe mental illness treatment
      to families and individuals receiving housing assistance under
      the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.],
      including public housing residents, residents of multifamily
      housing assisted with project-based assistance under section 8 of
      such Act [42 U.S.C. 1437f], and recipients of tenant-based
      assistance under such section; and
        "(2) develop and disseminate a list of current practices among
      public housing agencies and owners of assisted housing that serve
      to benefit persons in need of mental health care."

                               ANNUAL REPORT                           
      Pub. L. 105-276, title V, Sec. 581, Oct. 21, 1998, 112 Stat.
    2643, provided that:
      "(a) In General. - Not later than 1 year after the date of the
    enactment of this Act [Oct. 21, 1998], and annually thereafter, the
    Secretary shall submit a report to the Congress on - 
        "(1) the impact of the amendments made by this Act [Pub. L. 105-
      276, see Tables for classification] on - 
          "(A) the demographics of public housing residents and
        families receiving tenant-based assistance under the United
        States Housing Act of 1937 [42 U.S.C. 1437 et seq.]; and
          "(B) the economic viability of public housing agencies; and
        "(2) the effectiveness of the rent policies established by this
      Act and the amendments made by this Act on the employment status
      and earned income of public housing residents.
      "(b) Effective Date. - This section shall take effect on the date
    of the enactment of this Act [Oct. 21, 1998]."

                         USE OF AMERICAN PRODUCTS                     
      Pub. L. 105-276, title V, Sec. 584, Oct. 21, 1998, 112 Stat.
    2645, provided that:
      "(a) Purchase of American-Made Equipment and Products. - It is
    the sense of the Congress that, to the greatest extent practicable,
    all equipment and products purchased with funds made available in
    this Act [Pub. L. 105-276, see Tables for classification] should be
    American made.
      "(b) Notice Requirement. - In providing financial assistance to,
    or entering into any contract with, any entity using funds made
    available in this Act, the head of each Federal agency, to the
    greatest extent practicable, shall provide to such entity a notice
    describing the statement made in subsection (a) by the Congress.
      "(c) Effective Date. - This section shall take effect on the date
    of the enactment of this Act [Oct. 21, 1998]."

               GAO STUDY ON HOUSING ASSISTANCE PROGRAM COSTS           
      Pub. L. 105-276, title V, Sec. 585, Oct. 21, 1998, 112 Stat.
    2645, provided that:
      "(a) Study. - The Comptroller General of the United States shall
    conduct a study that provides an objective and independent
    accounting and analysis of the full cost to the Federal Government,
    public housing agencies, State and local governments, and other
    entities, per assisted household, of the Federal assisted housing
    programs, taking into account the qualitative differences among
    Federal assisted housing programs in accordance with applicable
    standards of the Department of Housing and Urban Development.
      "(b) Contents. - The study under this section shall - 
        "(1) analyze the full cost to the Federal Government, public
      housing agencies, State and local governments, and other parties,
      per assisted household, of the Federal assisted housing programs,
      in accordance with generally accepted accounting principles, and
      shall conduct the analysis on a nationwide and regional basis and
      in a manner such that accurate per unit cost comparisons may be
      made between Federal assisted housing programs, including grants,
      direct subsidies, tax concessions, Federal mortgage insurance
      liability, periodic renovation and rehabilitation, and
      modernization costs, demolition costs, and other ancillary costs
      such as security; and
        "(2) measure and evaluate qualitative differences among Federal
      assisted housing programs in accordance with applicable standards
      of the Department of Housing and Urban Development.
      "(c) Prohibition of Recommendations. - In conducting the study
    under this section and reporting under subsection (e), the
    Comptroller General may not make any recommendations regarding
    Federal housing policy.
      "(d) Federal Assisted Housing Programs. - For purposes of this
    section, the term 'Federal assisted housing programs' means - 
        "(1) the public housing program under the United States Housing
      Act of 1937 [42 U.S.C. 1437 et seq.], except that the study under
      this section shall differentiate between and compare the
      development and construction of new public housing and the
      assistance of existing public housing structures;
        "(2) the certificate program for rental assistance under
      section 8(b)(1) of the United States Housing Act of 1937 [42
      U.S.C. 1437f(b)(1)];
        "(3) the voucher program for rental assistance under section
      8(o) of the United States Housing Act of 1937 [42 U.S.C.
      1437f(o)];
        "(4) the programs for project-based assistance under section 8
      of the United States Housing Act of 1937 [42 U.S.C. 1437f];
        "(5) the rental assistance payments program under section
      521(a)(2)(A) of the Housing Act of 1949 [42 U.S.C.
      1490a(a)(2)(A)];
        "(6) the program for housing for the elderly under section 202
      of the Housing Act of 1959 [12 U.S.C. 1701q];
        "(7) the program for housing for persons with disabilities
      under section 811 of the Cranston-Gonzalez National Affordable
      Housing Act [42 U.S.C. 8013];
        "(8) the program for financing housing by a loan or mortgage
      insured under section 221(d)(3) of the National Housing Act [12
      U.S.C. 1715l(d)(3)] that bears interest at a rate determined
      under the proviso of section 221(d)(5) of such Act [12 U.S.C.
      1715l(d)(5)];
        "(9) the program under section 236 of the National Housing Act
      [12 U.S.C. 1715z-1];
        "(10) the program for construction or substantial
      rehabilitation under section 8(b)(2) of the United States Housing
      Act of 1937 [42 U.S.C. 1437f(b)(2)], as in effect before October
      1, 1983; and
        "(11) any other program for housing assistance administered by
      the Secretary of Housing and Urban Development or the Secretary
      of Agriculture, under which occupancy in the housing assisted or
      housing assistance provided is based on income, as the
      Comptroller General may determine.
      "(e) Report. - Not later than 12 months after the date of the
    enactment of this Act [Oct. 21, 1998], the Comptroller General
    shall submit to the Congress a final report which shall contain the
    results of the study under this section, including the analysis and
    estimates required under subsection (b).
      "(f) Effective Date. - This section shall take effect on the date
    of the enactment of this Act [Oct. 21, 1998]."

          LIMITATION ON WITHHOLDING OR CONDITIONING OF ASSISTANCE      
      Assistance provided for in Housing and Community Development Act
    of 1974 [42 U.S.C. 5301 et seq.], National Housing Act [12 U.S.C.
    1701 et seq.], United States Housing Act of 1937 [42 U.S.C. 1437 et
    seq.], Housing Act of 1949 [see Short Title note set out under
    section 1441 of this title], Demonstration Cities and Metropolitan
    Development Act of 1966 [see Short Title note set out under section
    3331 of this title], and Housing and Urban Development Acts of
    1965, 1968, 1969, and 1970 not to be withheld or made subject to
    conditions by reason of tax-exempt status of obligations issued or
    to be issued for financing of assistance, except as otherwise
    provided by law, see section 817 of Pub. L. 93-383, set out as a
    note under section 5301 of this title.

-End-



-CITE-
    42 USC Sec. 1437a                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437a. Rental payments

-STATUTE-
    (a) Families included; rent options; minimum amount; occupancy by
      police officers and over-income families
      (1) Dwelling units assisted under this chapter shall be rented
    only to families who are low-income families at the time of their
    initial occupancy of such units. Reviews of family income shall be
    made at least annually. Except as provided in paragraph (2) and
    subject to the requirement under paragraph (3), a family shall pay
    as rent for a dwelling unit assisted under this chapter (other than
    a family assisted under section 1437f(o) or (y) of this title or
    paying rent under section 1437f(c)(3)(B) (!1) of this title) the
    highest of the following amounts, rounded to the nearest dollar:

        (A) 30 per centum of the family's monthly adjusted income;
        (B) 10 per centum of the family's monthly income; or
        (C) if the family is receiving payments for welfare assistance
      from a public agency and a part of such payments, adjusted in
      accordance with the family's actual housing costs, is
      specifically designated by such agency to meet the family's
      housing costs, the portion of such payments which is so
      designated.

      (2) Rental payments for public housing families. - 
        (A) Authority for family to select. - 
          (i) In general. - A family residing in a public housing
        dwelling shall pay as monthly rent for the unit the amount
        determined under clause (i) or (ii) of subparagraph (B),
        subject to the requirement under paragraph (3) (relating to
        minimum rents). Each public housing agency shall provide for
        each family residing in a public housing dwelling unit owned,
        assisted, or operated by the agency to elect annually whether
        the rent paid by such family shall be determined under clause
        (i) or (ii) of subparagraph (B). A public housing agency may
        not at any time fail to provide both such rent options for any
        public housing dwelling unit owned, assisted, or operated by
        the agency.
          (ii) Authority to retain flat and ceiling rents. -
        Notwithstanding clause (i) or any other provision of law, any
        public housing agency that is administering flat rents or
        ceiling rents pursuant to any authority referred to in section
        519(d) of the Quality Housing and Work Responsibility Act of
        1998 before the effective day of such Act may continue to
        charge rent in accordance with such rent provisions after such
        effective date, except that the agency shall provide for
        families residing in public housing dwelling units owned or
        operated by the agency to elect annually whether to pay rent
        under such provisions or in accordance with one of the rent
        options referred to in subparagraph (A).

        (B) Allowable rent structures. - 
          (i) Flat rents. - Except as otherwise provided under this
        clause, each public housing agency shall establish, for each
        dwelling unit in public housing owned or operated by the
        agency, a flat rental amount for the dwelling unit, which shall
        - 
            (I) be based on the rental value of the unit, as determined
          by the public housing agency; and
            (II) be designed in accordance with subparagraph (D) so
          that the rent structures do not create a disincentive for
          continued residency in public housing by families who are
          attempting to become economically self-sufficient through
          employment or who have attained a level of self-sufficiency
          through their own efforts.

        The rental amount for a dwelling unit shall be considered to
        comply with the requirements of this clause if such amount does
        not exceed the actual monthly costs to the public housing
        agency attributable to providing and operating the dwelling
        unit. The preceding sentence may not be construed to require
        establishment of rental amounts equal to or based on operating
        costs or to prevent public housing agencies from developing
        flat rents required under this clause in any other manner that
        may comply with this clause.
          (ii) Income-based rents. - 
            (I) In general. - The monthly rental amount determined
          under this clause for a family shall be an amount, determined
          by the public housing agency, that does not exceed the
          greatest of the amounts (rounded to the nearest dollar)
          determined under subparagraphs (A), (B), and (C) of paragraph
          (1). This clause may not be construed to require a public
          housing agency to charge a monthly rent in the maximum amount
          permitted under this clause.
            (II) Discretion. - Subject to the limitation on monthly
          rental amount under subclause (I), a public housing agency
          may, in its discretion, implement a rent structure under this
          clause requiring that a portion of the rent be deposited to
          an escrow or savings account, imposing ceiling rents, or
          adopting income exclusions (such as those set forth in
          subsection (b)(5)(B) of this section), or may establish
          another reasonable rent structure or amount.

        (C) Switching rent determination methods because of hardship
      circumstances. - Notwithstanding subparagraph (A), in the case of
      a family that has elected to pay rent in the amount determined
      under subparagraph (B)(i), a public housing agency shall
      immediately provide for the family to pay rent in the amount
      determined under subparagraph (B)(ii) during the period for which
      such election was made upon a determination that the family is
      unable to pay the amount determined under subparagraph (B)(i)
      because of financial hardship, including - 
          (i) situations in which the income of the family has
        decreased because of changed circumstances, loss of (!2)
        reduction of employment, death in the family, and reduction in
        or loss of income or other assistance;

          (ii) an increase, because of changed circumstances, in the
        family's expenses for medical costs, child care,
        transportation, education, or similar items; and
          (iii) such other situations as may be determined by the
        agency.

        (D) Encouragement of self-sufficiency. - The rental policy
      developed by each public housing agency shall encourage and
      reward employment and economic self-sufficiency.
        (E) Income reviews. - Notwithstanding the second sentence of
      paragraph (1), in the case of families that are paying rent in
      the amount determined under subparagraph (B)(i), the agency shall
      review the income of such family not less than once every 3
      years.

      (3) Minimum rental amount. - 
        (A) Requirement. - Notwithstanding paragraph (1) of this
      subsection, the method for rent determination elected pursuant to
      paragraph (2)(A) of this subsection by a family residing in
      public housing, section 1437f(o)(2) of this title, or section
      206(d) of the Housing and Urban-Rural Recovery Act of 1983
      (including paragraph (5) of such section), the following entities
      shall require the following families to pay a minimum monthly
      rental amount (which amount shall include any amount allowed for
      utilities) of not more than $50 per month, as follows:
          (i) Each public housing agency shall require the payment of
        such minimum monthly rental amount, which amount shall be
        determined by the agency, by - 
            (I) each family residing in a dwelling unit in public
          housing by the agency;
            (II) each family who is assisted under the certificate or
          moderate rehabilitation program under section 1437f of this
          title; and
            (III) each family who is assisted under the voucher program
          under section 1437f of this title, and the agency shall
          reduce the monthly assistance payment on behalf of such
          family as may be necessary to ensure payment of such minimum
          monthly rental amount.

          (ii) The Secretary shall require each family who is assisted
        under any other program for rental assistance under section
        1437f of this title to pay such minimum monthly rental amount,
        which amount shall be determined by the Secretary.

        (B) Exception for hardship circumstances. - 
          (i) In general. - Notwithstanding subparagraph (A), a public
        housing agency (or the Secretary, in the case of a family
        described in subparagraph (A)(ii)) shall immediately grant an
        exemption from application of the minimum monthly rental under
        such subparagraph to any family unable to pay such amount
        because of financial hardship, which shall include situations
        in which (I) the family has lost eligibility for or is awaiting
        an eligibility determination for a Federal, State, or local
        assistance program, including a family that includes a member
        who is an alien lawfully admitted for permanent residence under
        the Immigration and Nationality Act [8 U.S.C. 1101 et seq.] who
        would be entitled to public benefits but for title IV of the
        Personal Responsibility and Work Opportunity Reconciliation Act
        of 1996 [8 U.S.C. 1601 et seq.]; (II) the family would be
        evicted as a result of the imposition of the minimum rent
        requirement under subparagraph (A); (III) the income of the
        family has decreased because of changed circumstance, including
        loss of employment; (IV) a death in the family has occurred;
        and (V) other situations as may be determined by the agency (or
        the Secretary, in the case of a family described in
        subparagraph (A)(ii)).
          (ii) Waiting period. - If a resident requests a hardship
        exemption under this subparagraph and the public housing agency
        (or the Secretary, in the case of a family described in
        subparagraph (A)(ii)) reasonably determines the hardship to be
        of a temporary nature, an exemption shall not be granted during
        the 90-day period beginning upon the making of a request for
        the exemption. A resident may not be evicted during such 90-day
        period for nonpayment of rent. In such a case, if the resident
        thereafter demonstrates that the financial hardship is of a
        long-term basis, the agency (or the Secretary) shall
        retroactively exempt the resident from the applicability of the
        minimum rent requirement for such 90-day period.

      (4) Occupancy by police officers. - 
        (A) In general. - Subject to subparagraph (B) and
      notwithstanding any other provision of law, a public housing
      agency may, in accordance with the public housing agency plan for
      the agency, allow a police officer who is not otherwise eligible
      for residence in public housing to reside in a public housing
      dwelling unit. The number and location of units occupied by
      police officers under this paragraph and the terms and conditions
      of their tenancies shall be determined by the public housing
      agency.
        (B) Increased security. - A public housing agency may take the
      actions authorized in subparagraph (A) only for the purpose of
      increasing security for the residents of a public housing
      project.
        (C) Definition. - In this paragraph, the term "police officer"
      means any person determined by a public housing agency to be,
      during the period of residence of that person in public housing,
      employed on a full-time basis as a duly licensed professional
      police officer by a Federal, State, or local government or by any
      agency thereof (including a public housing agency having an
      accredited police force).

      (5) Occupancy by over-income families in certain public housing. -
     
        (A) Authority. - Notwithstanding any other provision of law, a
      public housing agency that owns or operates less than 250 units
      may, on a month-to-month basis, lease a dwelling unit in a public
      housing project to an over-income family in accordance with this
      paragraph, but only if there are no eligible families applying
      for housing assistance from the public housing agency for that
      month and the agency provides not less than 30-day public notice
      of the availability of such assistance.
        (B) Terms and conditions. - The number and location of dwelling
      units of a public housing agency occupied under this paragraph by
      over-income families, and the terms and conditions of those
      tenancies, shall be determined by the public housing agency,
      except that - 
          (i) notwithstanding paragraph (2), rent for a unit shall be
        in an amount that is not less than the costs to operate the
        unit;
          (ii) if an eligible family applies for residence after an
        over-income family moves in to the last available unit, the
        over-income family shall vacate the unit in accordance with
        notice of termination of tenancy provided by the agency, which
        shall be provided not less than 30 days before such
        termination; and
          (iii) if a unit is vacant and there is no one on the waiting
        list, the public housing agency may allow an over-income family
        to gain immediate occupancy in the unit, while simultaneously
        providing reasonable public notice and outreach with regard to
        availability of the unit.

        (C) Definition. - For purposes of this paragraph, the term
      "over-income family" means an individual or family that is not a
      low-income family at the time of initial occupancy.
    (b) Definition of terms under this chapter
      When used in this chapter:
      (1) The term "low-income housing" means decent, safe, and
    sanitary dwellings assisted under this chapter. The term "public
    housing" means low-income housing, and all necessary appurtenances
    thereto, assisted under this chapter other than under section 1437f
    of this title. The term "public housing" includes dwelling units in
    a mixed finance project that are assisted by a public housing
    agency with capital or operating assistance. When used in reference
    to public housing, the term "low-income housing project" or
    "project" means (A) housing developed, acquired, or assisted by a
    public housing agency under this chapter, and (B) the improvement
    of any such housing.
      (2) The term "low-income families" means those families whose
    incomes do not exceed 80 per centum of the median income for the
    area, as determined by the Secretary with adjustments for smaller
    and larger families, except that the Secretary may establish income
    ceilings higher or lower than 80 per centum of the median for the
    area on the basis of the Secretary's findings that such variations
    are necessary because of prevailing levels of construction costs or
    unusually high or low family incomes. The term "very low-income
    families" means low-income families whose incomes do not exceed 50
    per centum of the median family income for the area, as determined
    by the Secretary with adjustments for smaller and larger families,
    except that the Secretary may establish income ceilings higher or
    lower than 50 per centum of the median for the area on the basis of
    the Secretary's findings that such variations are necessary because
    of unusually high or low family incomes. Such ceilings shall be
    established in consultation with the Secretary of Agriculture for
    any rural area, as defined in section 1490 of this title, taking
    into account the subsidy characteristics and types of programs to
    which such ceilings apply. In determining median incomes (of
    persons, families, or households) for an area or establishing any
    ceilings or limits based on income under this chapter, the
    Secretary shall determine or establish area median incomes and
    income ceilings and limits for Westchester and Rockland Counties,
    in the State of New York, as if each such county were an area not
    contained within the metropolitan statistical area in which it is
    located. In determining such area median incomes or establishing
    such income ceilings or limits for the portion of such metropolitan
    statistical area that does not include Westchester or Rockland
    Counties, the Secretary shall determine or establish area median
    incomes and income ceilings and limits as if such portion included
    Westchester and Rockland Counties. In determining areas that are
    designated as difficult development areas for purposes of the low-
    income housing tax credit, the Secretary shall include Westchester
    and Rockland Counties, New York, in the New York City metropolitan
    area.
      (3) Persons and families. - 
        (A) Single persons. - The term "families" includes families
      consisting of a single person in the case of (i) an elderly
      person, (ii) a disabled person, (iii) a displaced person, (iv)
      the remaining member of a tenant family, and (v) any other single
      persons. In no event may any single person under clause (v) of
      the first sentence be provided a housing unit assisted under this
      chapter of 2 or more bedrooms.
        (B) Families. - The term "families" includes families with
      children and, in the cases of elderly families, near-elderly
      families, and disabled families, means families whose heads (or
      their spouses), or whose sole members, are elderly, near-elderly,
      or persons with disabilities, respectively. The term includes, in
      the cases of elderly families, near-elderly families, and
      disabled families, 2 or more elderly persons, near-elderly
      persons, or persons with disabilities living together, and 1 or
      more such persons living with 1 or more persons determined under
      the public housing agency plan to be essential to their care or
      well-being.
        (C) Absence of children. - The temporary absence of a child
      from the home due to placement in foster care shall not be
      considered in determining family composition and family size.
        (D) Elderly person. - The term "elderly person" means a person
      who is at least 62 years of age.
        (E) Person with disabilities. - The term "person with
      disabilities" means a person who - 
          (i) has a disability as defined in section 423 of this title,
          (ii) is determined, pursuant to regulations issued by the
        Secretary, to have a physical, mental, or emotional impairment
        which (I) is expected to be of long-continued and indefinite
        duration, (II) substantially impedes his or her ability to live
        independently, and (III) is of such a nature that such ability
        could be improved by more suitable housing conditions, or
          (iii) has a developmental disability as defined in section
        15002 of this title.

      Such term shall not exclude persons who have the disease of
      acquired immunodeficiency syndrome or any conditions arising from
      the etiologic agent for acquired immunodeficiency syndrome.
      Notwithstanding any other provision of law, no individual shall
      be considered a person with disabilities, for purposes of
      eligibility for low-income housing under this subchapter, solely
      on the basis of any drug or alcohol dependence. The Secretary
      shall consult with other appropriate Federal agencies to
      implement the preceding sentence.
        (F) Displaced person. - The term "displaced person" means a
      person displaced by governmental action, or a person whose
      dwelling has been extensively damaged or destroyed as a result of
      a disaster declared or otherwise formally recognized pursuant to
      Federal disaster relief laws.
        (G) Near-elderly person. - The term "near-elderly person" means
      a person who is at least 50 years of age but below the age of 62.

      (4) The term "income" means income from all sources of each
    member of the household, as determined in accordance with criteria
    prescribed by the Secretary, in consultation with the Secretary of
    Agriculture, except that any amounts not actually received by the
    family and any amounts which would be eligible for exclusion under
    section 1382b(a)(7) of this title may not be considered as income
    under this paragraph.
      (5) Adjusted income. - The term "adjusted income" means, with
    respect to a family, the amount (as determined by the public
    housing agency) of the income of the members of the family residing
    in a dwelling unit or the persons on a lease, after any income
    exclusions as follows:
        (A) Mandatory exclusions. - In determining adjusted income, a
      public housing agency shall exclude from the annual income of a
      family the following amounts:
          (i) Elderly and disabled families. - $400 for any elderly or
        disabled family.
          (ii) Medical expenses. - The amount by which 3 percent of the
        annual family income is exceeded by the sum of - 
            (I) unreimbursed medical expenses of any elderly family or
          disabled family;
            (II) unreimbursed medical expenses of any family that is
          not covered under subclause (I), except that this subclause
          shall apply only to the extent approved in appropriation
          Acts; and
            (III) unreimbursed reasonable attendant care and auxiliary
          apparatus expenses for each handicapped member of the family,
          to the extent necessary to enable any member of such family
          (including such handicapped member) to be employed.

          (iii) Child care expenses. - Any reasonable child care
        expenses necessary to enable a member of the family to be
        employed or to further his or her education.
          (iv) Minors, students, and persons with disabilities. - $480
        for each member of the family residing in the household (other
        than the head of the household or his or her spouse) who is
        less than 18 years of age or is attending school or vocational
        training on a full-time basis, or who is 18 years of age or
        older and is a person with disabilities.
          (v) Child support payments. - Any payment made by a member of
        the family for the support and maintenance of any child who
        does not reside in the household, except that the amount
        excluded under this clause may not exceed $480 for each child
        for whom such payment is made; except that this clause shall
        apply only to the extent approved in appropriations Acts.
          (vi) Spousal support expenses. - Any payment made by a member
        of the family for the support and maintenance of any spouse or
        former spouse who does not reside in the household, except that
        the amount excluded under this clause shall not exceed the
        lesser of (I) the amount that such family member has a legal
        obligation to pay, or (II) $550 for each individual for whom
        such payment is made; except that this clause shall apply only
        to the extent approved in appropriations Acts.
          (vii) Earned income of minors. - The amount of any earned
        income of a member of the family who is not - 
            (I) 18 years of age or older; and
            (II) the head of the household (or the spouse of the head
          of the household).

        (B) Permissive exclusions for public housing. - In determining
      adjusted income, a public housing agency may, in the discretion
      of the agency, establish exclusions from the annual income of a
      family residing in a public housing dwelling unit. Such
      exclusions may include the following amounts:
          (i) Excessive travel expenses. - Excessive travel expenses in
        an amount not to exceed $25 per family per week, for employment-
         or education-related travel.
          (ii) Earned income. - An amount of any earned income of the
        family, established at the discretion of the public housing
        agency, which may be based on - 
            (I) all earned income of the family,(!3)

            (II) the amount earned by particular members of the family;
            (III) the amount earned by families having certain
          characteristics; or
            (IV) the amount earned by families or members during
          certain periods or from certain sources.

          (iii) Others. - Such other amounts for other purposes, as the
        public housing agency may establish.

      (6) Public housing agency. - 
        (A) In general. - Except as provided in subparagraph (B), the
      term "public housing agency" means any State, county,
      municipality, or other governmental entity or public body (or
      agency or instrumentality thereof) which is authorized to engage
      in or assist in the development or operation of public housing.
        (B) Section 1437f program. - For purposes of the program for
      tenant-based assistance under section 1437f of this title, such
      term includes - 
          (i) a consortia of public housing agencies that the Secretary
        determines has the capacity and capability to administer a
        program for assistance under such section in an efficient
        manner;
          (ii) any other public or private nonprofit entity that, upon
        the effective date under section 503(a) of the Quality Housing
        and Work Responsibility Act of 1998, was administering any
        program for tenant-based assistance under section 1437f of this
        title (as in effect before the effective date of such Act),
        pursuant to a contract with the Secretary or a public housing
        agency; and
          (iii) with respect to any area in which no public housing
        agency has been organized or where the Secretary determines
        that a public housing agency is unwilling or unable to
        implement a program for tenant-based assistance (!4) section
        1437f of this title, or is not performing effectively - 

            (I) the Secretary or another public or private nonprofit
          entity that by contract agrees to receive assistance amounts
          under section 1437f of this title and enter into housing
          assistance payments contracts with owners and perform the
          other functions of public housing agency under section 1437f
          of this title; or
            (II) notwithstanding any provision of State or local law, a
          public housing agency for another area that contracts with
          the Secretary to administer a program for housing assistance
          under section 1437f of this title, without regard to any
          otherwise applicable limitations on its area of operation.

      (7) The term "State" includes the several States, the District of
    Columbia, the Commonwealth of Puerto Rico, the territories and
    possessions of the United States, and the Trust Territory of the
    Pacific Islands.
      (8) The term "Secretary" means the Secretary of Housing and Urban
    Development.
      (9) Drug-related criminal activity. - The term "drug-related
    criminal activity" means the illegal manufacture, sale,
    distribution, use, or possession with intent to manufacture, sell,
    distribute, or use, of a controlled substance (as such term is
    defined in section 802 of title 21).
      (10) Mixed-finance project. - The term "mixed-finance project"
    means a public housing project that meets the requirements of
    section 1437z-7 of this title.
      (11) Public housing agency plan. - The term "public housing
    agency plan" means the plan of a public housing agency prepared in
    accordance with section 1437c-1 of this title.
      (12) Capital fund. - The term "Capital Fund" means the fund
    established under section 1437g(d) of this title.
      (13) Operating fund. - The term "Operating Fund" means the fund
    established under section 1437g(e) of this title.
    (c) Definition of terms used in reference to public housing
      When used in reference to public housing:
      (1) The term "development" means any or all undertakings
    necessary for planning, land acquisition, demolition, construction,
    or equipment, in connection with a low-income housing project. The
    term "development cost" comprises the costs incurred by a public
    housing agency in such undertakings and their necessary financing
    (including the payment of carrying charges), and in otherwise
    carrying out the development of such project, but does not include
    the costs associated with the demolition of or remediation of
    environmental hazards associated with public housing units that
    will not be replaced on the project site, or other extraordinary
    site costs as determined by the Secretary. Construction activity in
    connection with a low-income housing project may be confined to the
    reconstruction, remodeling, or repair of existing buildings.
      (2) The term "operation" means any or all undertakings
    appropriate for management, operation, services, maintenance,
    security (including the cost of security personnel), or financing
    in connection with a low-income housing project. The term also
    means the financing of tenant programs and services for families
    residing in low-income housing projects, particularly where there
    is maximum feasible participation of the tenants in the development
    and operation of such tenant programs and services. As used in this
    paragraph, the term "tenant programs and services" includes the
    development and maintenance of tenant organizations which
    participate in the management of low-income housing projects; the
    training of tenants to manage and operate such projects and the
    utilization of their services in project management and operation;
    counseling on household management, housekeeping, budgeting, money
    management, child care, and similar matters; advice as to resources
    for job training and placement, education, welfare, health, and
    other community services; services which are directly related to
    meeting tenant needs and providing a wholesome living environment;
    and referral to appropriate agencies in the community when
    necessary for the provision of such services. To the maximum extent
    available and appropriate, existing public and private agencies in
    the community shall be used for the provision of such services.
      (3) The term "acquisition cost" means the amount prudently
    required to be expended by a public housing agency in acquiring
    property for a low-income housing project.
      (4) The term "congregate housing" means low-rent housing with
    which there is connected a central dining facility where wholesome
    and economical meals can be served to occupants. Expenditures
    incurred by a public housing agency in the operation of a central
    dining facility in connection with congregate housing (other than
    the cost of providing food and service) shall be considered a cost
    of operation of the project.
      (5) The terms "group home" and "independent living facility" have
    the meanings given such terms in section 8013(k) of this title.
    (d) Disallowance of earned income from rent determinations
      (1) In general
        Notwithstanding any other provision of law, the rent payable
      under subsection (a) of this section by a family described in
      paragraph (3) of this subsection may not be increased as a result
      of the increased income due to such employment during the 12-
      month period beginning on the date on which the employment is
      commenced.
      (2) Phase-in of rent increases
        Upon the expiration of the 12-month period referred to in
      paragraph (1), the rent payable by a family described in
      paragraph (3) may be increased due to the continued employment of
      the family member described in paragraph (3)(B), except that
      during the 12-month period beginning upon such expiration the
      amount of the increase may not be greater than 50 percent of the
      amount of the total rent increase that would be applicable but
      for this paragraph.
      (3) Eligible families
        A family described in this paragraph is a family - 
          (A) that - 
            (i) occupies a dwelling unit in a public housing project;
          or
            (ii) receives assistance under section 1437f of this title;
          and

          (B)(i) whose income increases as a result of employment of a
        member of the family who was previously unemployed for 1 or
        more years;
          (ii) whose earned income increases during the participation
        of a family member in any family self-sufficiency or other job
        training program; or
          (iii) who is or was, within 6 months, assisted under any
        State program for temporary assistance for needy families
        funded under part A of title IV of the Social Security Act [42
        U.S.C. 601 et seq.] and whose earned income increases.
      (4) Applicability
        This subsection and subsection (e) of this section shall apply
      beginning upon October 1, 1999, except that this subsection and
      subsection (e) of this section shall apply with respect to any
      family described in paragraph 3(A)(ii) (!5) only to the extent
      provided in advance in appropriations Acts.

    (e) Individual savings accounts
      (1) In general
        In lieu of a disallowance of earned income under subsection (d)
      of this section, upon the request of a family that qualifies
      under subsection (d) of this section, a public housing agency may
      establish an individual savings account in accordance with this
      subsection for that family.
      (2) Deposits to account
        The public housing agency shall deposit in any savings account
      established under this subsection an amount equal to the total
      amount that otherwise would be applied to the family's rent
      payment under subsection (a) of this section as a result of
      employment.
      (3) Withdrawal from account
        Amounts deposited in a savings account established under this
      subsection may only be withdrawn by the family for the purpose of
      - 
          (A) purchasing a home;
          (B) paying education costs of family members;
          (C) moving out of public or assisted housing; or
          (D) paying any other expense authorized by the public housing
        agency for the purpose of promoting the economic self-
        sufficiency of residents of public and assisted housing.
    (f) Availability of income matching information
      (1) Disclosure to PHA
        A public housing agency, or the owner responsible for
      determining the participant's eligibility or level of benefits,
      shall require any family described in paragraph (2) who receives
      information regarding income, earnings, wages, or unemployment
      compensation from the Department of Housing and Urban Development
      pursuant to income verification procedures of the Department to
      disclose such information, upon receipt of the information, to
      the public housing agency that owns or operates the public
      housing dwelling unit in which such family resides or that
      provides the housing assistance under this chapter on behalf of
      such family, as applicable, or to the owner responsible for
      determining the participant's eligibility or level of benefits.
      (2) Families covered
        A family described in this paragraph is a family that resides
      in a dwelling unit - 
          (A) that is a public housing dwelling unit;
          (B) for which tenant-based assistance is provided under
        section 1437f of this title,(!6) or

          (C) for which project-based assistance is provided under
        section 1437f of this title, section 1437bb (!7) of this title,
        or section 811.(!7)


-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 3, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 654; amended Pub. L.
    94-375, Sec. 2(f), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95-557,
    title II, Sec. 206(c), Oct. 31, 1978, 92 Stat. 2091; Pub. L. 96-
    153, title II, Sec. 202(a), Dec. 21, 1979, 93 Stat. 1106; Pub. L.
    97-35, title III, Sec. 322(a), Aug. 13, 1981, 95 Stat. 400; Pub. L.
    98-181, title II, Secs. 202, 206(a)-(c), Nov. 30, 1983, 97 Stat.
    1178, 1179; Pub. L. 98-479, title I, Sec. 102(b)(1)-(3), Oct. 17,
    1984, 98 Stat. 2221; Pub. L. 100-242, title I, Secs. 102(a), 111,
    170(c), Feb. 5, 1988, 101 Stat. 1821, 1823, 1867; renumbered title
    I and amended Pub. L. 100-358, Secs. 4, 5, June 29, 1988, 102 Stat.
    680, 681; Pub. L. 101-235, title III, Sec. 302, Dec. 15, 1989, 103
    Stat. 2043; Pub. L. 101-625, title V, Secs. 515(b), 572, 573(a)-
    (d), 574, Nov. 28, 1990, 104 Stat. 4199, 4236-4238; Pub. L. 102-
    550, title I, Secs. 102-103(a)(2), 185(c)(4), title VI, Secs. 621,
    622(c), 625(a)(1), Oct. 28, 1992, 106 Stat. 3683, 3748, 3812, 3817,
    3820; Pub. L. 103-233, title III, Sec. 301, Apr. 11, 1994, 108
    Stat. 369; Pub. L. 104-99, title IV, Sec. 402(b)(1), (c), Jan. 26,
    1996, 110 Stat. 40, 41; Pub. L. 104-330, title V, Sec. 501(b)(1),
    Oct. 26, 1996, 110 Stat. 4041; Pub. L. 105-276, title V, Secs. 506,
    507(a), (c), 508(a), (b)(1), (c)(1), (d)(1), 520(a), 523, 524(a),
    546, Oct. 21, 1998, 112 Stat. 2523-2529, 2562, 2565-2567, 2604;
    Pub. L. 106-74, title II, Sec. 214(a), Oct. 20, 1999, 113 Stat.
    1074; Pub. L. 106-402, title IV, Sec. 401(b)(7), Oct. 30, 2000, 114
    Stat. 1738.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437f(c)(3)(B) of this title, referred to in subsec.
    (a)(1), was repealed by Pub. L. 105-276, title V, Sec.
    550(a)(3)(A)(ii), Oct. 21, 1998, 112 Stat. 2609.
      Section 519(d) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (a)(2)(A)(ii), is section 519(d) of
    Pub. L. 105-276 which is set out as a note below.
      The effective day of such Act and the effective date of such Act,
    referred to in subsecs. (a)(2)(A)(ii) and (b)(6)(B)(ii), probably
    means the general effective date for the Quality Housing and Work
    Responsibility Act of 1998, Pub. L. 105-276, title V, included in
    section 503 of the Act which is set out as an Effective Date of
    1998 Amendment note under section 1437 of this title.
      Section 206(d) of the Housing and Urban-Rural Recovery Act of
    1983, referred to in subsec. (a)(3)(A), is section 206(d) of Pub.
    L. 98-181, which is set out as a note below.
      The Immigration and Nationality Act, referred to in subsec.
    (a)(3)(B)(i)(I), is act June 27, 1952, ch. 477, 66 Stat. 163, as
    amended, which is classified principally to chapter 12 (Sec. 1101
    et seq.) of Title 8, Aliens and Nationality. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1101 of Title 8 and Tables.
      The Personal Responsibility and Work Opportunity Reconciliation
    Act of 1996, referred to in subsec. (a)(3)(B)(i)(I), is Pub. L. 104-
    193, Aug. 22, 1996, 110 Stat. 2105. Title IV of the Act is
    classified principally to chapter 14 (Sec. 1601 et seq.) of Title
    8, Aliens and Nationality. For complete classification of title IV
    to the Code, see Tables.
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (b)(6)(B)(ii), is section 503(a) of
    Pub. L. 105-276 which is set out as an Effective Date of 1998
    Amendment note under section 1437 of this title.
      The Social Security Act, referred to in subsec. (d)(3)(B)(iii),
    is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of
    title IV of the Act is classified generally to part A (Sec. 601 et
    seq.) of subchapter IV of chapter 7 of this title. For complete
    classification of this Act to the Code, see section 1305 of this
    title and Tables.
      Section 1437bb of this title, referred to in subsec. (f)(2)(C),
    was repealed by Pub. L. 104-330, title V, Sec. 501(a), Oct. 26,
    1996, 110 Stat. 4041.
      Section 811, referred to in subsec. (f)(2)(C), means section 811
    of the United States Housing Act of 1937, but that Act does not
    contain a section 811.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 3 of act Sept. 1, 1937, ch. 896, 50 Stat. 889, as
    amended, established the United States Housing Authority and was
    classified to section 1403 of this title, prior to the general
    revision of this chapter by Pub. L. 93-383.
      Prior similar provisions were contained in section 2 of act Sept.
    1, 1937, ch. 896, 50 Stat. 888, which was classified to section
    1402 of this title prior to the general revision of this chapter by
    Pub. L. 93-383.

                                AMENDMENTS                            
      2000 - Subsec. (b)(3)(E)(iii). Pub. L. 106-402 substituted
    "section 15002 of this title" for "section 6001 of this title".
      1999 - Subsec. (f)(1). Pub. L. 106-74, Sec. 214(a)(1), inserted
    ", or the owner responsible for determining the participant's
    eligibility or level of benefits," after "A public housing agency"
    and ", or to the owner responsible for determining the
    participant's eligibility or level of benefits" before period at
    end.
      Subsec. (f)(2)(C). Pub. L. 106-74, Sec. 214(a)(2), added subpar.
    (C).
      1998 - Subsec. (a)(1). Pub. L. 105-276, Sec. 507(c), inserted
    "and subject to the requirement under paragraph (3)" after
    "paragraph (2)" in third sentence.
      Subsec. (a)(2). Pub. L. 105-276, Sec. 523, amended par. (2)
    generally. For prior text, see 1996 Amendment note below.
      Subsec. (a)(3). Pub. L. 105-276, Sec. 507(a), added par. (3).
      Subsec. (a)(4), (5). Pub. L. 105-276, Sec. 524(a), added pars.
    (4) and (5).
      Subsec. (b)(1). Pub. L. 105-276, Sec. 506(1), inserted after
    second sentence "The term 'public housing' includes dwelling units
    in a mixed finance project that are assisted by a public housing
    agency with capital or operating assistance."
      Subsec. (b)(2). Pub. L. 105-276, Sec. 508(c)(1), substituted
    "limits for Westchester and Rockland Counties" for "limits for
    Westchester County", inserted "each" before "such county",
    substituted "include Westchester or Rockland Counties" for "include
    Westchester County" and "included Westchester and Rockland
    Counties" for "included Westchester County", and inserted at end
    "In determining areas that are designated as difficult development
    areas for purposes of the low-income housing tax credit, the
    Secretary shall include Westchester and Rockland Counties, New
    York, in the New York City metropolitan area."
      Subsec. (b)(3)(A). Pub. L. 105-276, Sec. 506(2)(A), struck out at
    end "In determining priority for admission to housing under this
    chapter, the Secretary shall give preference to single persons who
    are elderly, disabled, or displaced persons before single persons
    who are eligible under clause (v) of the first sentence."
      Subsec. (b)(3)(B). Pub. L. 105-276, Sec. 506(2)(B), substituted
    "public housing agency plan" for "regulations of the Secretary" in
    second sentence.
      Subsec. (b)(3)(E). Pub. L. 105-276, Sec. 506(3), inserted at end
    "Notwithstanding any other provision of law, no individual shall be
    considered a person with disabilities, for purposes of eligibility
    for low-income housing under this subchapter, solely on the basis
    of any drug or alcohol dependence. The Secretary shall consult with
    other appropriate Federal agencies to implement the preceding
    sentence."
      Subsec. (b)(5). Pub. L. 105-276, Sec. 508(a), amended par. (5)
    generally, substituting present provisions for provisions which had
    defined "adjusted income" as income which remained after excluding
    $550 for each member of family in household under 18 years of age,
    disabled, or a student, $400 for any elderly or disabled family,
    the amount by which medical and related expenses exceeded 3 percent
    of income, child care expenses, 10 percent of earned income, and
    any payment made for support and maintenance of nonresident child,
    spouse, or former spouse.
      Subsec. (b)(6). Pub. L. 105-276, Sec. 546, amended par. (6)
    generally. Prior to amendment, par. (6) read as follows: "The term
    'public housing agency' means any State, county, municipality, or
    other governmental entity or public body (or agency or
    instrumentality thereof) which is authorized to engage in or assist
    in the development or operation of low-income housing."
      Subsec. (b)(9) to (13). Pub. L. 105-276, Sec. 506(4), added pars.
    (9) to (13).
      Subsec. (c). Pub. L. 105-276, Sec. 508(b)(1)(A), which directed
    the amendment of subsec. (c) by striking out the undesignated par.
    after par. (3), was executed by striking out concluding provisions
    after par. (5), to reflect the probable intent of Congress.
    Concluding provisions read as follows: "The earnings of and
    benefits to any public housing resident resulting from
    participation in a program providing employment training and
    supportive services in accordance with the Family Support Act of
    1988, section 1437t of this title, or any comparable Federal,
    State, or local law shall not be considered as income for the
    purposes of determining a limitation on the amount of rent paid by
    the resident during - 
        "(1) the period that the resident participates in such program;
      and
        "(2) the period that - 
          "(A) begins with the commencement of employment of the
        resident in the first job acquired by the person after
        completion of such program that is not funded by assistance
        under this chapter; and
          "(B) ends on the earlier of - 
            "(i) the date the resident ceases to continue employment
          without good cause as the Secretary shall determine; or
            "(ii) the expiration of the 18-month period beginning on
          the date referred to in subparagraph (A)."
      Subsec. (c)(1). Pub. L. 105-276, Sec. 520(a), inserted before
    period at end of second sentence ", but does not include the costs
    associated with the demolition of or remediation of environmental
    hazards associated with public housing units that will not be
    replaced on the project site, or other extraordinary site costs as
    determined by the Secretary".
      Subsecs. (d), (e). Pub. L. 105-276, Sec. 508(b)(1)(B), added
    subsecs. (d) and (e).
      Subsec. (f). Pub. L. 105-276, Sec. 508(d)(1), added subsec. (f).
      1996 - Subsec. (a)(2). Pub. L. 104-99, Sec. 402(b)(1), (f),
    temporarily amended par. (2) generally, substituting
      "(2) Notwithstanding paragraph (1), a public housing agency may -
    
        "(A) adopt ceiling rents that reflect the reasonable market
      value of the housing, but that are not less than the monthly
      costs - 
          "(i) to operate the housing of the agency; and
          "(ii) to make a deposit to a replacement reserve (in the sole
        discretion of the public housing agency); and
        "(B) allow families to pay ceiling rents referred to in
      subparagraph (A), unless, with respect to any family, the ceiling
      rent established under this paragraph would exceed the amount
      payable as rent by that family under paragraph (1)." for
      "(2)(A) Any public housing agency may provide that each family
    residing in a public housing project owned and operated by such
    agency (or in low-income housing assisted under section 1437f of
    this title that contains more than 2,000 dwelling units) shall pay
    as monthly rent an amount determined by such agency to be
    appropriate that does not exceed a maximum amount that - 
        "(i) is established by such agency and approved by the
      Secretary;
        "(ii) is not more than the amount payable as rent by such
      family under paragraph (1); and
        "(iii) is not less than the average monthly amount of debt
      service and operating expenses attributable to dwelling units of
      similar size in public housing projects owned and operated by
      such agency.
      "(B) The terms of all ceiling rents established prior to December
    15, 1989, shall be extended without time limitation." See Effective
    and Termination Dates of 1996 Amendments note below.
      Subsec. (b)(5)(F). Pub. L. 104-330, Sec. 501(b)(1)(A)(i),
    inserted "and" after semicolon.
      Subsec. (b)(5)(G). Pub. L. 104-330, Sec. 501(b)(1)(A)(ii), (iii),
    redesignated subpar. (H) as (G) and struck out former subpar. (G)
    which read as follows: "excessive travel expenses, not to exceed
    $25 per family per week, for employment- or education-related
    travel, except that this subparagraph shall apply only to families
    assisted by Indian housing authorities; and".
      Subsec. (b)(5)(H). Pub. L. 104-330, Sec. 501(b)(1)(A)(iii),
    redesignated subpar. (H) as (G).
      Pub. L. 104-99, Sec. 402(c), (f), temporarily added subpar. (H)
    which read "for public housing, any other adjustments to earned
    income established by the public housing agency. If a public
    housing agency adopts other adjustments to income pursuant to
    subparagraph (H), the Secretary shall not take into account any
    reduction of or increase in the public housing agency's per unit
    dwelling rental income resulting from those adjustments when
    calculating the contributions under section 1437g of this title for
    the public housing agency for the operation of the public housing."
    See Effective and Termination Dates of 1996 Amendments note below.
      Subsec. (b)(6). Pub. L. 104-330, Sec. 501(b)(1)(B), struck out at
    end "The term includes any Indian housing authority."
      Subsec. (b)(7). Pub. L. 104-330, Sec. 501(b)(1)(C), inserted
    "and" before "the Trust" and struck out ", and Indian tribes" after
    "Pacific Islands".
      Subsec. (b)(9) to (12). Pub. L. 104-330, Sec. 501(b)(1)(D),
    struck out pars. (9) to (12) which read as follows:
      "(9) The term 'Indian' means any person recognized as being an
    Indian or Alaska Native by an Indian tribe, the Federal Government,
    or any State.
      "(10) The term 'Indian area' means the area within which an
    Indian housing authority is authorized to provide low-income
    housing.
      "(11) The term 'Indian housing authority' means any entity that -
    
        "(A) is authorized to engage in or assist in the development or
      operation of low-income housing for Indians; and
        "(B) is established - 
          "(i) by exercise of the power of self-government of an Indian
        tribe independent of State law; or
          "(ii) by operation of State law providing specifically for
        housing authorities for Indians, including regional housing
        authorities in the State of Alaska.
      "(12) The term 'Indian tribe' means any tribe, band, pueblo,
    group, community, or nation of Indians or Alaska Natives."
      1994 - Subsec. (b)(3)(B). Pub. L. 103-233 substituted "includes
    families with children and" for "means families with children".
      1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 185(c)(4),
    substituted "section 1437f(o) or (y) of this title or paying rent
    under section 1437f(c)(3)(B) of this title" for "section 1437f(o)
    of this title".
      Subsec. (a)(2)(A). Pub. L. 102-550, Sec. 102(a), struck out "for
    not more than a 5-year period" after "monthly rent".
      Subsec. (a)(2)(B). Pub. L. 102-550, Sec. 102(b), struck out first
    sentence which read as follows: "The 5-year limitation established
    in subparagraph (A) shall not apply to any family residing in a
    public housing project administered by an Indian public housing
    agency." and substituted "without time limitation" for "for the 5-
    year period beginning on December 15, 1989".
      Subsec. (b)(3). Pub. L. 102-550, Sec. 621, amended par. (3)
    generally, substituting present provisions for provisions relating
    to families consisting of single persons, elderly families,
    handicapped persons, displaced persons, and families with household
    heads 50 years old or older and the priorities for admission of
    such families and persons to housing under this chapter.
      Subsec. (b)(4). Pub. L. 102-550, Sec. 103(a)(1), inserted "and
    any amounts which would be eligible for exclusion under section
    1382b(a)(7) of this title" after "family".
      Subsec. (b)(5)(B). Pub. L. 102-550, Sec. 625(a)(1), inserted "or
    disabled" after "elderly".
      Subsec. (b)(5)(D). Pub. L. 102-550, Sec. 103(a)(2)(A), added
    subpar. (D) and struck out former subpar. (D) which read as
    follows: "(i) child care expenses to the extent necessary to enable
    another member of the family to be employed or to further his or
    her education; or (ii) excessive travel expenses, not to exceed $25
    per family per week, for employment or education related travel,
    except that this clause shall apply only to families assisted by
    Indian housing authorities;".
      Subsec. (b)(5)(G). Pub. L. 102-550, Sec. 103(a)(2)(B)-(D), added
    subpar. (G).
      Subsec. (c)(4), (5). Pub. L. 102-550, Sec. 622(c), which directed
    the amendment of subsec. (c) by inserting pars. (4) and (5) after
    "project.", was executed by making the insertion after "project."
    at the end of par. (3), to reflect the probable intent of Congress.
      1990 - Pub. L. 101-625, Sec. 515(b), added concluding
    undesignated par. directing that earnings and benefits to public
    housing residents resulting from participation in programs
    providing employment training and supportive services not be
    considered as income.
      Subsec. (a)(1). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families" in introductory
    provisions.
      Subsecs. (a)(2)(A), (b)(1). Pub. L. 101-625, Sec. 572(2),
    substituted "low-income housing" for "lower income housing"
    wherever appearing.
      Subsec. (b)(2). Pub. L. 101-625, Sec. 573(d), inserted sentences
    at end relating to determination or establishment of median incomes
    and income ceilings and limits for Westchester County and for
    metropolitan statistical areas outside Westchester County.
      Pub. L. 101-625, Sec. 572(1), substituted "low-income families"
    for "lower income families" wherever appearing.
      Subsec. (b)(3). Pub. L. 101-625, Sec. 574, inserted sentence at
    end relating to effect of temporary absence of child from the home
    due to placement in foster care on considerations of family
    composition and size.
      Pub. L. 101-625, Sec. 573(a), substituted "(D) and any other
    single persons. In no event may any single person under clause (D)
    be provided a housing unit assisted under this chapter of 2
    bedrooms or more." for "(D) other single persons in circumstances
    described in regulations of the Secretary." in first sentence,
    struck out after first sentence "In no event shall more than 15 per
    centum of the units under the jurisdiction of any public housing
    agency be occupied by single persons under clause (D).", and struck
    out third from last sentence which was executed (to reflect the
    probable intent of Congress) by striking out third sentence from
    end which read as follows: "The Secretary may increase the
    limitation described in the second sentence of this paragraph to
    not more than 30 per centum if, following consultation with the
    public housing agency involved, the Secretary determines that the
    dwelling units involved are neither being occupied, nor are likely
    to be occupied within the next 12 months, by families or persons
    described in clauses (A), (B), and (C), due to the condition or
    location of such dwelling units, and that such dwelling units may
    be occupied if made available to single persons described in clause
    (D)."
      Subsec. (b)(4). Pub. L. 101-625, Sec. 573(b), inserted before
    period at end ", except that any amounts not actually received by
    the family may not be considered as income under this paragraph".
      Subsec. (b)(5)(A). Pub. L. 101-625, Sec. 573(c)(1), substituted
    "$550" for "$480".
      Subsec. (b)(5)(C). Pub. L. 101-625, Sec. 573(c)(2), struck out
    "elderly" before "family" in cl. (i) and struck out "and" at end.
      Subsec. (b)(5)(E), (F). Pub. L. 101-625, Sec. 573(c)(3), added
    subpars. (E) and (F).
      Subsecs. (b)(6), (10), (11)(A), (c). Pub. L. 101-625, Sec.
    572(2), substituted "low-income housing" for "lower income housing"
    wherever appearing.
      1989 - Subsec. (a)(2)(A). Pub. L. 101-235, Sec. 302(1),
    substituted "5-year period" for "3-year period".
      Subsec. (a)(2)(B). Pub. L. 101-235, Sec. 302(2), substituted "5-
    year limitation" for "3-year limitation" and inserted at end "The
    terms of all ceiling rents established prior to December 15, 1989,
    shall be extended for the 5-year period beginning on December 15,
    1989."
      1988 - Subsec. (a). Pub. L. 100-242, Sec. 102(a), designated
    existing provisions as par. (1), substituted "Except as provided in
    paragraph (2), a" for "A", redesignated former pars. (1) to (3) as
    subpars. (A) to (C), respectively, and added par. (2).
      Subsec. (b)(3). Pub. L. 100-242, Sec. 170(c), in cl. (A),
    substituted "sixty-two years of age," for "sixty-two years of age
    or", and ", has a developmental disability as defined in section
    6001(7) of this title" for "or in section 102 of the Developmental
    Disabilities Services and Facilities Construction Amendments of
    1970".
      Pub. L. 100-242, Sec. 111, inserted provisions relating to
    determination of priority admission to public housing projects
    designed for elderly families.
      Subsec. (b)(5)(D). Pub. L. 100-358, Sec. 4(a), designated
    existing provisions as cl. (i) and added cl. (ii).
      Subsec. (b)(6). Pub. L. 100-358, Sec. 4(b), inserted at end "The
    term includes any Indian housing authority."
      Subsec. (b)(7). Pub. L. 100-358, Sec. 4(c), struck out ", bands,
    groups, and Nations, including Alaska Indians, Aleuts, and Eskimos,
    of the United States" after "and Indian tribes".
      Subsec. (b)(9) to (12). Pub. L. 100-358, Sec. 4(d)-(g), added
    pars. (9) to (12).
      1984 - Subsec. (b)(2). Pub. L. 98-479, Sec. 102(b)(1), inserted
    provision at end that such ceilings shall be established in
    consultation with the Secretary of Agriculture for any rural area,
    as defined in section 1490 of this title, taking into account the
    subsidy characteristics and types of programs to which such
    ceilings apply.
      Subsec. (b)(4). Pub. L. 98-479, Sec. 102(b)(2), inserted ", in
    consultation with the Secretary of Agriculture" at end.
      Subsec. (b)(5)(C). Pub. L. 98-479, Sec. 102(b)(3), designated
    existing provision as cl. (i), added cl. (ii), and inserted "the
    amount by which the aggregate of the following expenses of the
    family" in provisions preceding cl. (i).
      1983 - Subsec. (a). Pub. L. 98-181, Sec. 206(a), in provisions
    preceding par. (1), inserted provision requiring annual review of
    family income, and inserted "(other than a family assisted under
    section 1437f(o) of this title)".
      Subsec. (b)(2). Pub. L. 98-181, Sec. 206(b), qualified the term
    "very low-income families" in authorizing the Secretary to
    establish, where necessary, variations in income ceilings higher or
    lower than 50 per centum of the median for the area.
      Subsec. (b)(3). Pub. L. 98-181, Sec. 202, inserted provision at
    end of par. (3) authorizing increase from 15 to 30 per centum in
    the single person occupancy limitation for nonoccupancy of the
    involved dwelling units.
      Subsec. (b)(5). Pub. L. 98-181, Sec. 206(c), amended par. (5)
    generally, substituting provisions designating cls. (A) to (D) for
    prior exclusion from "adjusted income" of such amounts or types of
    income as the Secretary might prescribe, taking into account the
    number of minor children and other appropriate factors.
      1981 - Pub. L. 97-35 added subsecs. (a) and (c) and designated
    provisions constituting former section as subsec. (b), and in
    subsec. (b) as so designated, substituted provisions defining
    "lower income housing", "lower income families", "families",
    "income", "adjusted income", "public housing agency", "State", and
    "Secretary" for provisions defining "low-income housing", "low-
    income families", "development", "operation", "acquisition cost",
    "public housing agency", "State", "Secretary", and "low-income
    housing project".
      1979 - Par. (1). Pub. L. 96-153 substituted provisions that the
    rental for a dwelling shall not exceed certain portion of the
    resident family's income to be established by the Secretary, and
    that in the case of a very low income family 25 per centum and in
    other cases 30 per centum of family income for provisions that such
    rental shall not exceed one-fourth of the family's income as
    defined by the Secretary.
      1978 - Par. (2)(D). Pub. L. 95-557 substituted "15 per cent" for
    "10 per cent".
      1976 - Par. (2). Pub. L. 94-375 struck out "and" before cl. (C),
    added cl. (D), and two provisos relating to the percentage of units
    to be occupied by single persons and the priority to be given to
    single persons who are elderly, handicapped, or displaced,
    following cl. (D).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.
      Pub. L. 105-276, title V, Sec. 507(d), Oct. 21, 1998, 112 Stat.
    2526, provided that: "The amendments under this section [amending
    this section] are made on, and shall apply beginning upon, the date
    of the enactment of this Act [Oct. 21, 1998]."
      Pub. L. 105-276, title V, Sec. 508(c)(2), Oct. 21, 1998, 112
    Stat. 2529, provided that: "The amendments made by this paragraph
    [probably means this subsection, amending this section] are made
    on, and shall apply beginning upon, the date of the enactment of
    this Act [Oct. 21, 1998]."
      Pub. L. 105-276, title V, Sec. 524(b), Oct. 21, 1998, 112 Stat.
    2568, provided that: "The amendment made by this paragraph
    [probably means this section, amending this section] is made on,
    and shall apply beginning upon, the date of the enactment of this
    Act [Oct. 21, 1998]."

            EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS        
      Pub. L. 105-276, title V, Sec. 514(f), Oct. 21, 1998, 112 Stat.
    2548, provided that: "Section 402 of The Balanced Budget
    Downpayment Act, I [Pub. L. 104-99, see note below], and the
    amendments made by such section shall cease to be effective on the
    date of the enactment of this Act [Oct. 21, 1998]. Notwithstanding
    the inclusion in this Act [see Tables for classification] of any
    provision extending the effectiveness of such section or such
    amendments, such provision included in this Act shall not take
    effect."
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Section 402(f) of Pub. L. 104-99, as amended by Pub. L. 104-204,
    title II, Sec. 201(c)(2), Sept. 26, 1996, 110 Stat. 2893; Pub. L.
    105-65, title II, Sec. 201(d)(2), Oct. 27, 1997, 111 Stat. 1364,
    provided that: "This section [amending this section, sections 1437d
    to 1437f, 1437n, 1437v, and 13615 of this title, and section 1701s
    of Title 12, Banks and Banking, enacting provisions set out as
    notes under this section and sections 1437 and 1437d of this title,
    and amending provisions set out as a note under section 1437f of
    this title] shall be effective upon the enactment of this Act [Jan.
    26, 1996] and only for fiscal years 1996, 1997, and 1998."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 103(a)(3) of title I of Pub. L. 102-550 provided that:
    "To the extent that the amendments made by paragraphs (1) and (2)
    [amending this section] result in additional costs under this title
    [see Tables for classification], such amendments shall be effective
    only to the extent that amounts to cover such additional costs are
    provided in advance in appropriation Acts."
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 573(f) of Pub. L. 101-625 provided that: "The Secretary
    shall issue regulations implementing subsections (a) and (d) [sic]
    the amendments made by this section [amending this section] not
    later than the expiration of the 90-day period beginning on the
    date of the enactment of this Act [Nov. 28, 1990]. The regulations
    may not take effect until after September 30, 1991."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      Section 6 of Pub. L. 100-358 provided that: "The Secretary of
    Housing and Urban Development may carry out programs to provide
    lower income housing on Indian reservations and other Indian areas
    only in accordance with the amendments made by this Act [enacting
    sections 1437aa to 1437ee of this title, amending this section and
    section 1437c of this title, and enacting provisions set out as a
    note under section 1437 of this title], commencing on whichever of
    the following occurs earlier:
        "(1) Effective date of regulations. - The effective date of
      regulations issued under section 205 of the United States Housing
      Act of 1937 [former section 1437ee of this title].
        "(2) 90 days. - The expiration of the 90-day period beginning
      on the date of the enactment of this Act [June 29, 1988]."

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Section 202(c) of Pub. L. 96-153, which provided that amendment
    by section 202(a) of Pub. L. 96-153 (amending this section and
    section 1437f of this title) shall become effective on Jan. 1,
    1980, except that the amount of the tenant contribution required of
    families whose occupancy of housing units assisted under this
    chapter commenced prior to that date shall be determined in
    accordance with the provisions of this chapter in effect on Dec.
    31, 1979, so long as such occupancy was continuous thereafter, was
    repealed by Pub. L. 97-35, title III, Sec. 322(h)(1), Aug. 13,
    1981, 95 Stat. 404.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section
    206(h) of Pub. L. 95-557, set out as a note under section 1437c of
    this title.

                              EFFECTIVE DATE                          
      Section effective on such date or dates as the Secretary of
    Housing and Urban Development shall prescribe, but not later than
    eighteen months after Aug. 22, 1974, except that all of the
    provisions of par. (1) shall become effective on the same date, see
    section 201(b) of Pub. L. 93-383, set out as a note under section
    1437 of this title.
      The Department of Housing and Urban Development adopted an
    interim rule, 24 CFR 860.409, Sept. 26, 1975, 40 F.R. 44326, which
    provided: "The effective date of section 3(1) of the United States
    Housing Act of 1937, as amended [par. (1) of this section], shall
    be the date that these regulations [sections 860.401 to 860.409 of
    Title 24, CFR] are published in the Federal Register (September 26,
    1975)."

                                REGULATIONS                            
      Section 402(b)(2) of Pub. L. 104-99 provided that:
      "(A) In general. - The Secretary shall, by regulation, after
    notice and an opportunity for public comment, establish such
    requirements as may be necessary to carry out section 3(a)(2)(A) of
    the United States Housing Act of 1937 [42 U.S.C. 1437a(a)(2)(A)],
    as amended by paragraph (1).
      "(B) Transition rule. - Prior to the issuance of final
    regulations under paragraph (1), a public housing agency may
    implement ceiling rents, which shall be not less than the monthly
    costs to operate the housing of the agency and - 
        "(i) determined in accordance with section 3(a)(2)(A) of the
      United States Housing Act of 1937, as that section existed on the
      day before enactment of this Act [Jan. 26, 1996];
        "(ii) equal to the 95th percentile of the rent paid for a unit
      of comparable size by tenants in the same public housing project
      or a group of comparable projects totaling 50 units or more; or
        "(iii) equal to the fair market rent for the area in which the
      unit is located."
      [Section 402(b)(2) of Pub. L. 104-99, set out above, effective
    Jan. 26, 1996, and only for fiscal years 1996, 1997, and 1998, and
    to cease to be effective Oct. 21, 1998, see Effective and
    Termination Dates of 1996 Amendments notes above.]
      Section 191 of title I of Pub. L. 102-550 provided that: "The
    Secretary of Housing and Urban Development shall issue any final
    regulations necessary to implement the provisions of this title
    [see Tables for classification] and the amendments made by this
    title not later than the expiration of the 180-day period beginning
    on the date of the enactment of this Act [Oct. 28, 1992], except as
    expressly provided otherwise in this title and the amendments made
    by this title. Such regulations shall be issued after notice and
    opportunity for public comment pursuant to the provisions of
    section 553 of title 5, United States Code (notwithstanding
    subsections (a)(2), (b)(B), and (d)(3) of such section)."

                             SAVINGS PROVISION                         
      Pub. L. 105-276, title V, Sec. 508(b)(2), Oct. 21, 1998, 112
    Stat. 2528, provided that: "Notwithstanding the amendment made by
    paragraph (1) [amending this section], the provisions of the
    undesignated paragraph at the end of section 3(c)(3) of the United
    States Housing Act of 1937 [see 1998 and 1992 Amendment notes
    above], as such section was in effect immediately before the
    enactment of this Act [Oct. 21, 1998], shall continue to apply
    until the effective date under section 503 of this Act [set out as
    a note under section 1437 of this title]. Notwithstanding the
    amendment made by subsection (a) of this section [amending this
    section], nor the applicability under section 402(f) of The
    Balanced Budget Downpayment Act, I [Pub. L. 104-99] (42 U.S.C.
    1437a note) of the amendments made by such section 402 [see
    Effective and Termination Dates of 1996 Amendments note set out
    above], nor any repeal of such section 402(f), the provisions of
    section 3(b)(5)(G) of the United States Housing Act of 1937 (42
    U.S.C. 1437a(b)(5)(G)), as such section was in effect immediately
    before the date of the enactment of this Act, shall continue to
    apply until the effective date under section 503 of this Act."


-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.


-MISC2-
                        TRANSITIONAL CEILING RENTS                    
      Pub. L. 105-276, title V, Sec. 519(d), Oct. 21, 1998, 112 Stat.
    2561, provided that: "Notwithstanding section 3(a)(1) of the United
    States Housing Act of 1937 (42 U.S.C. 1437a[(a)](1)), during the
    period ending upon the later of the implementation of the formulas
    established pursuant to subsections (d)(2) and (e)(2) of [section 9
    of] such Act [42 U.S.C. 1437g(d)(2), (e)(2)] (as amended by this
    section) and October 1, 1999, a public housing agency may take any
    of the following actions with respect to public housing:
        "(1) New provisions. - An agency may - 
          "(A) adopt and apply ceiling rents that reflect the
        reasonable market value of the housing, but that are not less
        than - 
            "(i) for housing other than housing predominantly for
          elderly or disabled families (or both), 75 percent of the
          monthly cost to operate the housing of the agency;
            "(ii) for housing predominantly for elderly or disabled
          families (or both), 100 percent of the monthly cost to
          operate the housing of the agency; and
            "(iii) the monthly cost to make a deposit to a replacement
          reserve (in the sole discretion of the public housing
          agency); and
          "(B) allow families to pay ceiling rents referred to in
        subparagraph (A), unless, with respect to any family, the
        ceiling rent established under this paragraph would exceed the
        amount payable as rent by that family under paragraph (1).
        "(2) Ceiling rents from balanced budget act, I. - An agency may
      utilize the authority under section 3(a)(2) of the United States
      Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect
      immediately before the enactment of this Act [Oct. 21, 1998],
      notwithstanding any amendment to such section made by this Act.
        "(3) Transitional ceiling rents for balanced budget act, I. -
      An agency may utilize the authority with respect to ceiling rents
      under section 402(b)(2) of The Balanced Budget Downpayment Act, I
      [Pub. L. 104-99] (42 U.S.C. 1437a note), notwithstanding any
      other provision of law (including the expiration of the
      applicability of such section or the repeal of such section)."

    CERTAIN PAYMENTS MADE TO VICTIMS OF NAZI PERSECUTION DISREGARDED IN
     DETERMINING ELIGIBILITY FOR AND AMOUNT OF NEED-BASED BENEFITS AND
                                 SERVICES
      Pub. L. 103-286, Sec. 1, Aug. 1, 1994, 108 Stat. 1450, provided
    that:
      "(a) In General. - Payments made to individuals because of their
    status as victims of Nazi persecution shall be disregarded in
    determining eligibility for and the amount of benefits or services
    to be provided under any Federal or federally assisted program
    which provides benefits or services based, in whole or in part, on
    need.
      "(b) Applicability. - Subsection (a) shall apply to
    determinations made on or after the date of the enactment of this
    Act [Aug. 1, 1994] with respect to payments referred to in
    subsection (a) made before, on, or after such date.
      "(c) Prohibition Against Recovery of Value of Excessive Benefits
    or Services Provided Due to Failure to Take Account of Certain
    Payments Made to Victims of Nazi Persecution. - No officer, agency,
    or instrumentality of any government may attempt to recover the
    value of excessive benefits or services provided before the date of
    the enactment of this Act [Aug. 1, 1994] under any program referred
    to in subsection (a) by reason of any failure to take account of
    payments referred to in subsection (a).
      "(d) Notice to Individuals Who May Have Been Denied Eligibility
    for Benefits or Services Due to the Failure to Disregard Certain
    Payments Made to Victims of Nazi Persecution. - Any agency of
    government that has not disregarded payments referred to in
    subsection (a) in determining eligibility for a program referred to
    in subsection (a) shall make a good faith effort to notify any
    individual who may have been denied eligibility for benefits or
    services under the program of the potential eligibility of the
    individual for such benefits or services.
      "(e) Repayment of Additional Rent Paid Under HUD Housing Programs
    Because of Failure to Disregard Reparation Payments. - 
        "(1) Authority. - To the extent that amounts are provided in
      appropriation Acts for payments under this subsection, the
      Secretary of Housing and Urban Development shall make payments to
      qualified individuals in the amount determined under paragraph
      (3).
        "(2) Qualified individuals. - For purposes of this subsection,
      the term 'qualified individual' means an individual who - 
          "(A) has received any payment because of the individual's
        status as a victim of Nazi persecution;
          "(B) at any time during the period beginning on February 1,
        1993 and ending on April 30, 1993, resided in a dwelling unit
        in housing assisted under any program for housing assistance of
        the Department of Housing and Urban Development under which
        rent payments for the unit were determined based on or taking
        into consideration the income of the occupant of the unit;
          "(C) paid rent for such dwelling unit for any portion of the
        period referred to in subparagraph (B) in an amount determined
        in a manner that did not disregard the payment referred to in
        subparagraph (A); and
          "(D) has submitted a claim for payment under this subsection
        as required under paragraph (4).
      The term does not include the successors, heirs, or estate of an
      individual meeting the requirements of the preceding sentence.
        "(3) Amount of payment. - The amount of a payment under this
      subsection for a qualified individual shall be equal to the
      difference between - 
          "(A) the sum of the amount of rent paid by the individual for
        rental of the dwelling unit of the individual assisted under a
        program for housing assistance of the Department of Housing and
        Urban Development, for the period referred to in paragraph
        (2)(B), and
          "(B) the sum of the amount of rent that would have been
        payable by the individual for rental of such dwelling unit for
        such period if the payments referred to in paragraph (2)(A)
        were disregarded in determining the amount of rent payable by
        the individual for such period.
        "(4) Submission of claims. - A payment under this subsection
      for an individual may be made only pursuant to a written claim
      for such payment by such individual submitted to the Secretary of
      Housing and Urban Development in the form and manner required by
      the Secretary before - 
          "(A) in the case of any individual notified by the Department
        of Housing and Urban Development orally or in writing that such
        specific individual is eligible for a payment under this
        subsection, the expiration of the 6-month period beginning on
        the date of receipt of such notice; and
          "(B) in the case of any other individual, the expiration of
        the 12-month period beginning on the date of the enactment of
        this Act [Aug. 1, 1994]."

    INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING
      Section 626 of Pub. L. 102-550 provided that: "The amendments
    made by this subtitle [subtitle B (Secs. 621-626) of title VI of
    Pub. L. 102-550, amending this section and sections 1437c to 1437f,
    1437l, 1437o, 1438, and 8013 of this title] shall not apply with
    respect to lower income housing developed or operated pursuant to a
    contract between the Secretary of Housing and Urban Development and
    an Indian housing authority."

                             BUDGET COMPLIANCE                         
      Section 573(e) of Pub. L. 101-625 provided that: "The amendments
    made by subsections (b) and (c) [amending this section] shall apply
    only to the extent approved in appropriations Acts."

                            MEDIAN AREA INCOME                        
      Section 567 of Pub. L. 100-242 provided that: "For purposes of
    calculating the median income for any area that is not within a
    metropolitan statistical area (as established by the Office of
    Management and Budget) for programs under title I of the Housing
    and Community Development Act of 1974 [42 U.S.C. 5301 et seq.], the
    United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], the
    National Housing Act [12 U.S.C. 1701 et seq.], or title V of the
    Housing Act of 1949 [42 U.S.C. 1471 et seq.], the Secretary of
    Housing and Urban Development or the Secretary of Agriculture (as
    appropriate) shall use whichever of the following is higher:
        "(1) the median income of the county in which the area is
      located; or
        "(2) the median income of the entire nonmetropolitan area of
      the State."

        DETERMINATION OF RENT PAYABLE BY TENANTS OCCUPYING ASSISTED
     HOUSING; DELAYED APPLICATION OR STAGED IMPLEMENTATION OF AMENDED
                                PROVISIONS
      Section 206(d) of Pub. L. 98-181 provided that:
      "(1) The following provisions of this paragraph apply to
    determinations of the rent to be paid by or the contribution
    required of a tenant occupying housing assisted under the
    authorities amended by this section [amending this section] or
    subsections (a) through (h) of section 322 of the Housing and
    Community Development Amendments of 1981 [amending sections 1437 to
    1437d, 1437f, 1437g, 1437i, 1437j, and 1437l of this title and
    sections 1701s and 1715z-1 of Title 12, Banks and Banking, and
    repealing provisions set out as notes under this section and
    section 1701s of Title 12] (hereinafter referred to as 'assisted
    housing') on or before the effective date of regulations
    implementing this section:
        "(A) Notwithstanding any other provision of this section or
      subsections (a) through (h) of section 322 of the Housing and
      Community Development Amendments of 1981, the Secretary of
      Housing and Urban Development (hereinafter referred to as the
      'Secretary') may provide for delayed applicability, or for staged
      implementation, of the procedures for determining rents or
      contributions, as appropriate, required by such provisions if the
      Secretary determines that immediate application of such
      procedures would be impracticable, would violate the terms of
      existing leases, or would result in extraordinary hardship for
      any class of tenants.
        "(B) The Secretary shall provide that the rent or contribution,
      as appropriate, required to be paid by a tenant shall not
      increase as a result of the amendments made by this section and
      subsections (a) through (h) of section 322 of the Housing and
      Community Development Amendments of 1981, and as a result of any
      other provision of Federal law or regulation, by more than 10 per
      centum during any twelve-month period, unless the increase above
      10 per centum is attributable to increases in income which are
      unrelated to such amendments, law, or regulation.
      "(2) Tenants of assisted housing other than those referred to in
    paragraph (1) shall be subject to immediate rent payment or
    contribution determinations in accordance with applicable law and
    without regard to the provisions of paragraph (1), but the
    Secretary shall provide that the rent or contribution payable by
    any such tenant who is occupying assisted housing on the effective
    date of any provision of Federal law or regulation shall not
    increase, as a result of any such provision of Federal law or
    regulation, by more than 10 per centum during any twelve-month
    period, unless the increase above 10 per centum is attributable to
    increases in income which are unrelated to such law or regulation.
      "(3) In the case of tenants receiving rental assistance under
    section 521(a)(1) of the Housing Act of 1949 [section 1490a(a)(1)
    of this title] on the effective date of this section [Nov. 30,
    1983] whose assistance is converted to assistance under section 8
    of the United States Housing Act of 1937 [section 1437f of this
    title] on or after such date, the Secretary shall provide that the
    rent or contribution payable by any such tenant shall not increase,
    as a result of such conversion, by more than 10 per centum during
    any twelve-month period, unless the increase above 10 per centum is
    attributable to increases in income which are unrelated to such
    conversion or to any provision of Federal law or regulation.
      "(4)(A) Notwithstanding any other provision of law, in the case
    of the conversion of any assistance under section 101 of the
    Housing and Urban Development Act of 1965 [12 U.S.C. 1701s],
    section 236(f)(2) of the National Housing Act [12 U.S.C. 1715z-
    1(f)(2)], or section 23 of the United States Housing Act of 1937
    [section 1421b of this title] (as in effect before the date of the
    enactment of the Housing and Community Development Act of 1974
    [Aug. 22, 1974]) to assistance under section 8 of the United States
    Housing Act of 1937, any increase in rent payments or contributions
    resulting from such conversion, and from the amendments made by
    this section of any tenant benefiting from such assistance who is
    sixty-two years of age or older may not exceed 10 per centum per
    annum.
      "(B) In the case of any such conversion of assistance occurring
    on or after October 1, 1981, and before the date of the enactment
    of this section [Nov. 30, 1983], the rental payments due after such
    date of enactment by any tenant benefiting from such assistance who
    was sixty-two years of age or older on the date of such conversion
    shall be computed as if the tenant's rental payment or contribution
    had, on the date of conversion, been the lesser of the actual
    rental payment or contribution required, or 25 per centum of the
    tenant's income.
      "(5) The limitations on increases in rent contained in paragraphs
    (1)(B), (2), (3), and (4) shall remain in effect and may not be
    changed or superseded except by another provision of law which
    amends this subsection.
      "(6) As used in this subsection, the term 'contribution' means an
    amount representing 30 per centum of a tenant's monthly adjusted
    income, 10 per centum of the tenant's monthly income, or the
    designated amount of welfare assistance, whichever amount is used
    to determine the monthly assistance payment for the tenant under
    section 3(a) of the United States Housing Act of 1937 [subsec. (a)
    of this section].
      "(7) The provisions of subsections (a) through (h) of section 322
    of the Housing and Community Development Amendments of 1981 shall
    be implemented and fully applicable to all affected tenants no
    later than five years following the date of enactment of such
    amendments [Aug. 13, 1981], except that the Secretary may extend
    the time for implementation if the Secretary determines that full
    implementation would result in extraordinary hardship for any class
    of tenants."
      Prior provisions for determining rent payable by tenants
    occupying assisted housing under and authorizing delayed
    application or staged implementation of provisions amended by
    section 322 of Pub. L. 97-35 were contained in Pub. L. 97-35, title
    III, Sec. 322(i), Aug. 13, 1981, 95 Stat. 404, which was repealed
    by Pub. L. 98-181, title II, Sec. 206(e), Nov. 30, 1983, 97 Stat.
    1181.

        ESTABLISHMENT OF INCREASED MONTHLY RENTAL CHARGE FOR FAMILY
           OCCUPYING LOW-INCOME HOUSING UNIT; ADJUSTMENT FACTORS
      Section 202 of Pub. L. 93-383 provided that: "To the extent that
    section 3(1) of the United States Housing Act of 1937, as amended
    by section 201(a) of this Act [par. (1) of this section], would
    require the establishment of an increased monthly rental charge for
    any family which occupies a low-income housing unit as of the
    effective date of such section 3(1) (other than by reason of the
    provisions relating to welfare assistance payments) [see Effective
    Date note set out above], the required adjustment shall be made, in
    accordance with regulations of the Secretary, as follows: (A) the
    first adjustment shall not exceed $5 and shall become effective as
    of the month following the month of the first review of the
    family's income pursuant to section 6(c)(2) of such Act [section
    1437d(c)(2) of this title] which occurs at least six months after
    the effective date of such section 3(1), and (B) subsequent
    adjustments, each of which shall not exceed $5, shall be made at
    six-month intervals over whatever period is necessary to effect the
    full required increase in the family's rental charge."

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. Probably should be "or".

               

    (!3) So in original. The comma probably should be a semicolon.

    (!4) So in original. Probably should be "assistance under".

    (!5) So in original. Probably should be paragraph "(3)(A)(ii)".

    (!6) So in original. The comma probably should be a semicolon.

    (!7) See References in Text notes below.


-End-



-CITE-
    42 USC Sec. 1437a-1                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437a-1. Repealed.

-MISC1-
    Sec. 1437a-1. Repealed. Pub. L. 105-276, title V, Sec. 582(a)(1),
      Oct. 21, 1998, 112 Stat. 2643.
      Section, Pub. L. 101-625, title V, Sec. 519, Nov. 28, 1990, 104
    Stat. 4202, authorized public housing rent waiver for police
    officers. See section 1437a(a)(4) of this title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement the repeal before such date, and with savings provision,
    see section 503 of Pub. L. 105-276, set out as an Effective Date of
    1998 Amendment note under section 1437 of this title.

-End-



-CITE-
    42 USC Sec. 1437b                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437b. Loans and commitments to make loans for low-income
      housing projects

-STATUTE-
    (a) Authority of Secretary; interest rates; repayment date; use as
      security for obligations of public housing agency
      The Secretary may make loans or commitments to make loans to
    public housing agencies to help finance or refinance the
    development, acquisition, or operation of low-income housing
    projects by such agencies. Any contract for such loans and any
    amendment to a contract for such loans shall provide that such
    loans shall bear interest at a rate specified by the Secretary
    which shall not be less than a rate determined by the Secretary of
    the Treasury taking into consideration the current average market
    yield on outstanding marketable obligations of the United States
    with remaining periods to maturity comparable to the average
    maturities of such loans, plus one-eighth of 1 per centum. Such
    loans shall be secured in such manner and shall be repaid within
    such period not exceeding forty years, or not exceeding forty years
    from the date of the bonds evidencing the loan, as the Secretary
    may determine. The Secretary may require loans or commitments to
    make loans under this section to be pledged as security for
    obligations issued by a public housing agency in connection with a
    low-income housing project.
    (b) Issuance of obligations by Secretary; limitation on amounts;
      forms and denominations; terms and conditions; purchase,
      establishment of maturities and rates of interest, and sale by
      Secretary of the Treasury
      The Secretary may issue and have outstanding at any one time
    notes and other obligations for purchase by the Secretary of the
    Treasury in an amount which will not, unless authorized by the
    President, exceed $1,500,000,000. For the purpose of determining
    obligations incurred to make loans pursuant to this chapter against
    any limitation otherwise applicable with respect to such loans, the
    Secretary shall estimate the maximum amount to be loaned at any one
    time pursuant to loan agreements then outstanding with public
    housing agencies. Such notes or other obligations shall be in such
    forms and denominations and shall be subject to such terms and
    conditions as may be prescribed by the Secretary with the approval
    of the Secretary of the Treasury. The notes or other obligations
    issued under this subsection shall have such maturities and bear
    such rate or rates of interest as shall be determined by the
    Secretary of the Treasury. The Secretary of the Treasury is
    authorized and directed to purchase any notes or other obligations
    of the Secretary issued hereunder and for such purpose is
    authorized to use as a public debt transaction the proceeds from
    the sale of any securities issued under chapter 31 of title 31, and
    the purposes for which securities may be issued under such chapter
    are extended to include any purchases of such obligations. The
    Secretary of the Treasury may at any time sell any of the notes or
    other obligations acquired by him under this section. All
    redemptions, purchases, and sales by the Secretary of the Treasury
    of such notes or other obligations shall be treated as public debt
    transactions of the United States.
    (c) Public and Indian housing financing reforms
      (1) At such times as the Secretary may determine, and in
    accordance with such accounting and other procedures as the
    Secretary may prescribe, each loan made by the Secretary under
    subsection (a) of this section that has any principal amount
    outstanding or any interest amount outstanding or accrued shall be
    forgiven; and the terms and conditions of any contract, or any
    amendment to a contract, for such loan with respect to any promise
    to repay such principal and interest shall be canceled. Such
    cancellation shall not affect any other terms and conditions of
    such contract, which shall remain in effect as if the cancellation
    had not occurred. This paragraph shall not apply to any loan the
    repayment of which was not to be made using annual contributions,
    or to any loan all or part of the proceeds of which are due a
    public housing agency from contractors or others.
      (2)(A) On April 7, 1986, each note or other obligation issued by
    the Secretary to the Secretary of the Treasury pursuant to
    subsection (b) of this section, together with any promise to repay
    the principal and unpaid interest that has accrued on each note or
    obligation, shall be forgiven; and any other term or condition
    specified by each such obligation shall be canceled.
      (B) On September 30, 1986, and on any subsequent September 30,
    each such note or other obligation issued by the Secretary to the
    Secretary of the Treasury pursuant to subsection (b) of this
    section during the fiscal year ending on such date, together with
    any promise to repay the principal and unpaid interest that has
    accrued on each note or obligation, shall be forgiven; and any
    other term or condition specified by each such obligation shall be
    canceled.
      (3) Any amount of budget authority (and contract authority) that
    becomes available during any fiscal year as a result of the
    forgiveness of any loan, note, or obligation under this subsection
    shall be rescinded.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 4, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L.
    97-35, title III, Sec. 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L.
    98-479, title II, Sec. 203(b)(1), Oct. 17, 1984, 98 Stat. 2229;
    Pub. L. 99-272, title III, Sec. 3004, Apr. 7, 1986, 100 Stat. 102;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 101-625, title V, Sec. 572(2), Nov. 28, 1990,
    104 Stat. 4236.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 4 of act Sept. 1, 1937, ch. 896, 50 Stat. 889, as
    amended, provided for assistance of officers, etc., of other
    agencies and transfer of property to the Authority and was
    classified to section 1404 of this title, prior to the general
    revision of this chapter by Pub. L. 93-383.

                                AMENDMENTS                            
      1990 - Subsec. (a). Pub. L. 101-625 substituted "low-income
    housing" for "lower income housing" wherever appearing.
      1986 - Subsec. (c). Pub. L. 99-272 added subsec. (c).
      1984 - Subsec. (b). Pub. L. 98-479 substituted "chapter 31 of
    title 31" for "the Second Liberty Bond Act, as amended" and "such
    chapter" for "such Act".
      1981 - Subsec. (a). Pub. L. 97-35 substituted reference to lower
    income for reference to low-income in two places.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

         CARRYOVER OF AMOUNTS OF BUDGET AUTHORITY; AVAILABILITY AS
                     APPROPRIATION OF FUNDS FOR GRANTS
      Pub. L. 99-500, Sec. 101(g) [H.R. 5313, title I], Oct. 18, 1986,
    100 Stat. 1783-242, and Pub. L. 99-591, Sec. 101(g) [H.R. 5313,
    title I], Oct. 30, 1986, 100 Stat. 3341-242; Pub. L. 100-202, Sec.
    106, Dec. 22, 1987, 101 Stat. 1329-433, provided in part: "That the
    budget authority obligated under contracts for annual contributions
    shall be increased above amounts heretofore provided in
    appropriations Acts by $7,805,668,000: Provided further, That any
    part of the amount of the increase in budget authority provided for
    in the immediately foregoing proviso that is available under this
    Act for public housing development and acquisition costs or which
    is to be used for amendments for such costs, shall be available as
    an appropriation of funds, to remain available until expended, for
    grants, which are hereby authorized in lieu of loans under section
    4(a) of the United States Housing Act of 1937 (42 U.S.C. 1437b),
    and which the Secretary may make on substantially the same terms
    (except for repayment unless repayment is a properly imposed
    sanction) as those heretofore set forth in annual contributions
    contracts for loans and annual contributions: Provided further,
    That during 1987 and thereafter, any amounts of budget authority
    which are carried over from a prior year, or which are otherwise
    available for obligation, and which are available for public
    housing development and acquisition costs, together with any
    amounts of budget authority which are to be used for amendments for
    such costs, in accordance with any Act, shall also be made
    available as an appropriation of funds for grants, under the same
    terms as those applying under the immediately preceding proviso".

-End-



-CITE-
    42 USC Sec. 1437c                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437c. Contributions for low-income housing projects

-STATUTE-
    (a) Contract authorization; amounts; use as security for
      obligations of public housing agency; use of existing structures
      (1) The Secretary may make annual contributions to public housing
    agencies to assist in achieving and maintaining the lower income
    character of their projects. The Secretary shall embody the
    provisions for such annual contributions in a contract guaranteeing
    their payment. The contribution payable annually under this section
    shall in no case exceed a sum equal to the annual amount of
    principal and interest payable on obligations issued by the public
    housing agency to finance the development or acquisition cost of
    the lower income project involved. Annual contributions payable
    under this section shall be pledged, if the Secretary so requires,
    as security for obligations issued by a public housing agency to
    assist the development or acquisition of the project to which
    annual contributions relate and shall be paid over a period not to
    exceed 40 years.
      (2) The Secretary may make contributions (in the form of grants)
    to public housing agencies to cover the development cost of public
    housing projects. The contract under which such contributions shall
    be made shall specify the amount of capital contributions required
    for each project to which the contract pertains, and that the terms
    and conditions of such contract shall remain in effect for a 40-
    year period.
      (3) The amount of contributions that would be established for a
    newly constructed project by a public housing agency designed to
    accommodate a number of families of a given size and kind may be
    established under this section for a project by such public housing
    agency that would provide housing for the comparable number, sizes,
    and kinds of families through the acquisition and rehabilitation,
    or use under lease, of structures that are suitable for low-income
    housing use and obtained in the local market.
    (b) Maximum amount of contributions; regulations; criteria for
      rates of contribution
      The Secretary may prescribe regulations fixing the maximum
    contributions available under different circumstances, giving
    consideration to cost, location, size, rent-paying ability of
    prospective tenants, or other factors bearing upon the amounts and
    periods of assistance needed to achieve and maintain low rentals.
    Such regulations may provide for rates of contribution based upon
    development, acquisition, or operation costs, number of dwelling
    units, number of persons housed, interest charges, or other
    appropriate factors.
    (c) Limitation on aggregate contractual contributions; contracts
      for preliminary loans; payments of annual contributions;
      limitations on specific authorities
      (1) The Secretary may enter into contracts for annual
    contributions aggregating not more than $7,875,049,000 per annum,
    which amount shall be increased by $1,494,400,000 on October 1,
    1980, and by $906,985,000 on October 1, 1981. The additional
    authority to enter into such contracts provided on or after October
    1, 1980, shall be effective only in such amounts as may be approved
    in appropriation Acts. In addition, the aggregate amount which may
    be obligated over the duration of the contracts may not exceed
    $31,200,000,000 with respect to the additional authority provided
    on October 1, 1980, and $18,087,370,000 with respect to the
    additional authority provided on October 1, 1981.
      (2) The Secretary shall enter into only such new contracts for
    preliminary loans as are consistent with the number of dwelling
    units for which contracts for annual contributions may be entered
    into.
      (3) The full faith and credit of the United States is solemnly
    pledged to the payment of all annual contributions contracted for
    pursuant to this section, and there are hereby authorized to be
    appropriated in each fiscal year, out of any money in the Treasury
    not otherwise appropriated, the amounts necessary to provide for
    such payments.
      (4) All payments of annual contributions pursuant to this section
    shall be made out of any funds available for purposes of this
    chapter when such payments are due, except that funds obtained
    through the issuance of obligations pursuant to section 1437b(b) of
    this title (including repayments or other realizations of the
    principal of loans made out of such funds) shall not be available
    for the payment of such annual contributions.
      (5) During such period as the Secretary may prescribe for
    starting construction, the Secretary may approve the conversion of
    public housing development authority for use under section 1437g of
    this title or for use for the acquisition and rehabilitation of
    property to be used in public housing, if the public housing
    agency, after consultation with the unit of local government,
    certifies that such assistance would be more effectively used for
    such purpose, and if the total number of units assisted will not be
    less than 90 per centum of the units covered by the original
    reservation.
      (6) The aggregate amount of budget authority which may be
    obligated for contracts for annual contributions and for grants
    under section 1437o of this title is increased by $9,912,928,000 on
    October 1, 1983, and by such sums as may be approved in
    appropriation Acts on October 1, 1984. The aggregate amount of
    budget authority that may be obligated for contracts for annual
    contributions for assistance under section 1437f of this title, for
    contracts referred to in paragraphs (7)(A)(iv) and (7)(B)(iv), for
    grants for public housing, for comprehensive improvement
    assistance, and for amendments to existing contracts, is increased
    (to the extent approved in appropriation Acts) by $7,167,000,000 on
    October 1, 1987, and by $7,300,945,000 on October 1, 1988. The
    aggregate amount of budget authority that may be obligated for
    assistance referred to in paragraph (7) is increased (to the extent
    approved in appropriation Acts) by $16,194,000,000 on October 1,
    1990, and by $14,709,400,000 on October 1, 1991. The aggregate
    amount of budget authority that may be obligated for assistance
    referred to in paragraph (7) is increased (to the extent approved
    in appropriation Acts) by $14,710,990,520 on October 1, 1992, and
    by $15,328,852,122 on October 1993.
      (7)(A) Using the additional budget authority provided under
    paragraph (6) and the balances of budget authority that become
    available during fiscal year 1993, the Secretary shall, to the
    extent approved in appropriation Acts, reserve authority to enter
    into obligations aggregating - 
        (i) for public housing grants under subsection (a)(2) of this
      section, not more than $830,900,800, of which amount not more
      than $257,320,000 shall be available for Indian housing;
        (ii) for assistance under section 1437f of this title, not more
      than $1,977,662,720, of which $20,000,000 shall be available for
      15-year contracts for project-based assistance to be used for a
      multicultural tenant empowerment and homeownership project
      located in the District of Columbia, except that assistance
      provided for such project shall not be considered for purposes of
      the percentage limitations under section 1437f(i)(2) of this
      title; except that not more than 49 percent of any amounts
      appropriated under this clause may be used for vouchers under
      section 1437f(o) of this title;
        (iii) for comprehensive improvement assistance grants under
      section 1437l(k) of this title, not more than $3,100,000,000;
        (iv) for assistance under section 1437f of this title for
      property disposition, not more than $93,032,000;
        (v) for assistance under section 1437f of this title for loan
      management, not more than $202,000,000;
        (vi) for extensions of contracts expiring under section 1437f
      of this title, not more than $6,746,135,000, which shall be for 5-
      year contracts for assistance under section 1437f of this title
      and for loan management assistance under such section;
        (vii) for amendments to contracts under section 1437f of this
      title, not more than $1,350,000,000;
        (viii) for public housing lease adjustments and amendments, not
      more than $83,055,000;
        (ix) for conversions from leased housing contracts under
      section 1421b of this title (as in effect immediately before
      August 22, 1974) to assistance under section 1437f of this title,
      not more than $12,767,000; and
        (x) for grants under section 1437v of this title for
      revitalization of severely distressed public housing, not more
      than $300,000,000.

      (B) Using the additional budget authority provided under
    paragraph (6) and the balances of budget authority that become
    available during fiscal year 1994, the Secretary shall, to the
    extent approved in appropriation Acts, reserve authority to enter
    into obligations aggregating - 
        (i) for public housing grants under subsection (a)(2) of this
      section, not more than $865,798,634, of which amount not more
      than $268,127,440 shall be available for Indian housing;
        (ii) for assistance under section 1437f of this title, not more
      than $2,060,724,554, of which $20,000,000 shall be available for
      15-year contracts for project-based assistance to be used for a
      multicultural tenant empowerment and homeownership project
      located in the District of Columbia, except that assistance
      provided for such project shall not be considered for purposes of
      the percentage limitations under section 1437f(i)(2) of this
      title; except that not more than 49 percent of any amounts
      appropriated under this clause may be used for vouchers under
      section 1437f(o) of this title;
        (iii) for comprehensive improvement assistance grants under
      section 1437l(k) of this title, not more than $3,230,200,000;
        (iv) for assistance under section 1437f of this title for
      property disposition, not more than $96,939,344;
        (v) for assistance under section 1437f of this title for loan
      management, not more than $210,484,000;
        (vi) for extensions of contracts expiring under section 1437f
      of this title, not more than $7,029,472,670, which shall be for 5-
      year contracts for assistance under section 1437f of this title
      and for loan management assistance under such section;
        (vii) for amendments to contracts under section 1437f of this
      title, not more than $1,406,700,000;
        (viii) for public housing lease adjustments and amendments, not
      more than $86,543,310;
        (ix) for conversions from leased housing contracts under
      section 1421b of this title (as in effect immediately before
      August 22, 1974) to assistance under section 1437f of this title,
      not more than $13,303,214; and
        (x) for grants under section 1437v of this title for
      revitalization of severely distressed public housing, not more
      than $312,600,000.

      (C)(i) Any amount available for the conversion of a project to
    assistance under section 1437f(b)(1) of this title, if not required
    for such purpose, shall be used for assistance under section
    1437f(b)(1) of this title.
      (ii) Any amount available for assistance under section 1437f of
    this title for property disposition, if not required for such
    purpose, shall be used for assistance under section 1437f(b)(1) of
    this title.
      (8) Any amount available for Indian housing under subsection (a)
    of this section that is recaptured shall be used only for such
    housing.
    (d) Scope of contracts for loans or annual contributions
      Any contract for loans or annual contributions, or both, entered
    into by the Secretary with a public housing agency, may cover one
    or more than one low-income housing project owned by such public
    housing agency; in the event the contract covers two or more
    projects, such projects may, for any of the purposes of this
    chapter and of such contract (including, but not limited to, the
    determination of the amount of the loan, annual contributions, or
    payments in lieu of taxes, specified in such contract), be treated
    collectively as one project.
    (e) Local determination of need as prerequisite for contracts for
      preliminary loans, and contracts for loans or annual
      contributions; notice
      In recognition that there should be local determination of the
    need for low-income housing to meet needs not being adequately met
    by private enterprise - 
        (1) the Secretary shall not make any contract with a public
      housing agency for preliminary loans (all of which shall be
      repaid out of any moneys which become available to such agency
      for the development of the projects involved) for surveys and
      planning in respect to any low-income housing projects (i) unless
      the governing body of the locality involved has by resolution
      approved the application of the public housing agency for such
      preliminary loan; and (ii) unless the public housing agency has
      demonstrated to the satisfaction of the Secretary that there is
      need for such low-income housing which is not being met by
      private enterprise; and
        (2) the Secretary shall not make any contract for loans (other
      than preliminary loans) or for contributions pursuant to this
      chapter unless the governing body of the locality involved has
      entered into an agreement with the public housing agency
      providing for the local cooperation required by the Secretary
      pursuant to this chapter; the Secretary shall require that each
      such agreement shall provide that, notwithstanding any order,
      judgment, or decree of any court (including any settlement
      order), before making any amounts that are provided pursuant to
      any contract for contributions under this subchapter available
      for use for the development of any housing or other property not
      previously used as public housing, the public housing agency
      shall (A) notify the chief executive officer (or other
      appropriate official) of the unit of general local government in
      which the public housing for which such amounts are to be so used
      is located (or to be located) of such use, and (B) pursuant to
      the request of such unit of general local government, provide
      such information as may reasonably be requested by such unit of
      general local government regarding the public housing to be so
      assisted (except to the extent otherwise prohibited by law).
    (f) Modification by Secretary of terms of contracts, etc.;
      limitations; amendment or supersedure of contracts for annual
      contributions or loans
      Subject to the specific limitations or standards in this chapter
    governing the terms of sales, rentals, leases, loans, contracts for
    annual contributions, or other agreements, the Secretary may,
    whenever he deems it necessary or desirable in the fulfillment of
    the purposes of this chapter, consent to the modification, with
    respect to rate of interest, time of payment of any installment of
    principal or interest, security, amount of annual contribution, or
    any other term, of any contract or agreement of any kind to which
    the Secretary is a party. When the Secretary finds that it would
    promote economy or be in the financial interest of the Federal
    Government or is necessary to assure or maintain the lower income
    character of the project or projects involved, any contract
    heretofore or hereafter made for annual contributions, loans, or
    both, may be amended or superseded by a contract entered into by
    mutual agreement between the public housing agency and the
    Secretary. Contracts may not be amended or superseded in a manner
    which would impair the rights of the holders of any outstanding
    obligations of the public housing agency involved for which annual
    contributions have been pledged. Any rule of law contrary to this
    provision shall be deemed inapplicable.
    (g) Pledge of annual contributions as guarantee of payment of
      obligations issued by public housing agency; exception
      In addition to the authority of the Secretary under subsection
    (a) of this section to pledge annual contributions as security for
    obligations issued by a public housing agency, the Secretary is
    authorized to pledge annual contributions as a guarantee of payment
    by a public housing agency of all principal and interest on
    obligations issued by it to assist the development or acquisition
    of the project to which the annual contributions relate, except
    that no obligation shall be guaranteed under this subsection if the
    income thereon is exempt from Federal taxation.
    (h) Audits
      (1) By Secretary and Comptroller General
        Each contract for contributions for any assistance under this
      chapter to a public housing agency shall provide that the
      Secretary, the Inspector General of the Department of Housing and
      Urban Development, and the Comptroller General of the United
      States, or any of their duly authorized representatives, shall,
      for the purpose of audit and examination, have access to any
      books, documents, papers, and records of the public housing
      agency that are pertinent to this chapter and to its operations
      with respect to financial assistance under the this (!1) chapter.

      (2) Withholding of amounts for audits under Single Audit Act
        The Secretary may, in the sole discretion of the Secretary,
      arrange for and pay the costs of an audit required under chapter
      75 of title 31. In such circumstances, the Secretary may
      withhold, from assistance otherwise payable to the agency under
      this chapter, amounts sufficient to pay for the reasonable costs
      of conducting an acceptable audit, including, when appropriate,
      the reasonable costs of accounting services necessary to place
      the agency's books and records in auditable condition. As agreed
      to by the Secretary and the Inspector General, the Inspector
      General may arrange for an audit under this paragraph.
    (i) Prohibition on use of funds
      None of the funds made available to the Department of Housing and
    Urban Development to carry out this chapter, which are obligated to
    State or local governments, public housing agencies, housing
    finance agencies, or other public or quasi-public housing agencies,
    shall be used to indemnify contractors or subcontractors of the
    government or agency against costs associated with judgments of
    infringement of intellectual property rights.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 5, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L.
    94-375, Sec. 2(a), (b), Aug. 3, 1976, 90 Stat. 1067; Pub. L. 95-24,
    title I, Sec. 101(a), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95-128,
    title II, Sec. 201(a), (b), Oct. 12, 1977, 91 Stat. 1128; Pub. L.
    95-557, title II, Sec. 206(a), (b), Oct. 31, 1978, 92 Stat. 2091;
    Pub. L. 95-619, title II, Sec. 251(a), Nov. 9, 1978, 92 Stat. 3235;
    Pub. L. 96-153, title II, Sec. 201(a), (b), Dec. 21, 1979, 93 Stat.
    1105; Pub. L. 96-399, title II, Secs. 201(a), 210, Oct. 8, 1980, 94
    Stat. 1624, 1636; Pub. L. 97-35, title III, Secs. 321(a)-(c),
    322(c), Aug. 13, 1981, 95 Stat. 398, 402; Pub. L. 98-181, title II,
    Sec. 201(b), Nov. 30, 1983, 97 Stat. 1176; Pub. L. 100-242, title
    I, Secs. 101, 112(a), (b)(1), 113-115, Feb. 5, 1988, 101 Stat.
    1820, 1823-1825; renumbered title I and amended Pub. L. 100-358,
    Secs. 3, 5, June 29, 1988, 102 Stat. 680, 681; Pub. L. 101-625,
    title IV, Sec. 417(a), title V, Secs. 571, 572(2), Nov. 28, 1990,
    104 Stat. 4161, 4235, 4236; Pub. L. 102-550, title I, Secs. 101,
    111(a), title VI, Sec. 624, Oct. 28, 1992, 106 Stat. 3681, 3687,
    3819; Pub. L. 104-19, title I, Sec. 1002(c), July 27, 1995, 109
    Stat. 236; Pub. L. 104-330, title V, Sec. 501(b)(2), Oct. 26, 1996,
    110 Stat. 4042; Pub. L. 105-276, title V, Secs. 510, 518(a)(1),
    (b), 522(b)(1), 566, Oct. 21, 1998, 112 Stat. 2531, 2551, 2564,
    2632.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437o of this title, referred to in subsec. (c)(6), was
    repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,
    104 Stat. 4128.
      Section 1437l of this title, referred to in subsec.
    (c)(7)(A)(iii), (B)(iii), was repealed by Pub. L. 105-276, title V,
    Sec. 522(a), Oct. 21, 1998, 112 Stat. 2564.
      Section 1421b of this title, referred to in subsec.
    (c)(7)(A)(ix), (B)(ix), was omitted in the general revision of this
    chapter by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88
    Stat. 653.
      The Single Audit Act, referred to in subsec. (h)(2) heading,
    probably means the Single Audit Act of 1984, Pub. L. 98-502, Oct.
    19, 1984, 98 Stat. 2327, which is classified generally to chapter
    75 (Sec. 7501 et seq.) of Title 31, Money and Finance. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 7501 of Title 31 and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 5 of act Sept. 1, 1937, ch. 896, 50 Stat. 890, as
    amended, enumerated miscellaneous powers and functions of the
    Authority and was classified to section 1405 of this title, prior
    to the general revision of this chapter by Pub. L. 93-383.

                                AMENDMENTS                            
      1998 - Subsec. (c)(5). Pub. L. 105-276, Sec. 522(b)(1),
    substituted "for use under section 1437g of this title" for "for
    use under section 1437l of this title".
      Subsec. (e)(2). Pub. L. 105-276, Sec. 518(b), inserted before
    period at end "; the Secretary shall require that each such
    agreement shall provide that, notwithstanding any order, judgment,
    or decree of any court (including any settlement order), before
    making any amounts that are provided pursuant to any contract for
    contributions under this subchapter available for use for the
    development of any housing or other property not previously used as
    public housing, the public housing agency shall (A) notify the
    chief executive officer (or other appropriate official) of the unit
    of general local government in which the public housing for which
    such amounts are to be so used is located (or to be located) of
    such use, and (B) pursuant to the request of such unit of general
    local government, provide such information as may reasonably be
    requested by such unit of general local government regarding the
    public housing to be so assisted (except to the extent otherwise
    prohibited by law)".
      Subsec. (h). Pub. L. 105-276, Sec. 566, added subsec. (h).
      Pub. L. 105-276, Sec. 518(a)(1)(A), struck out subsec. (h) which
    read as follows: "Notwithstanding any other provision of law, a
    public housing agency may sell a low-income housing project to its
    lower income tenants, on such terms and conditions as the agency
    may determine, without affecting the Secretary's commitment to pay
    annual contributions with respect to that project, but such
    contributions shall not exceed the maximum contributions authorized
    under subsection (a) of this section."
      Subsec. (i). Pub. L. 105-276, Sec. 518(a)(1), redesignated
    subsec. (l) as (i) and struck out former subsec. (i) which read as
    follows: "In entering into contracts for assistance with respect to
    newly constructed or substantially rehabilitated projects under
    this section (other than for projects assisted pursuant to section
    1437f of this title), the Secretary shall require the installation
    of a passive or active solar energy system in any such project
    where the Secretary determines that such installation would be cost
    effective over the estimated life of the system."
      Subsecs. (j), (k). Pub. L. 105-276, Sec. 518(a)(1)(A), struck out
    subsecs. (j) and (k), which had: in subsec. (j), placed conditions
    upon reservation of funds for development of public housing after
    Sept. 30, 1987, and placed limitations on amounts used for
    redesign, reconstruction, redevelopment, or operational improvement
    of existing projects, but directed that not less than 5 percent of
    certain amounts appropriated in fiscal years 1993 and 1994 be
    reserved for public housing projects designated for elderly or
    disabled families; and in subsec. (k), prohibited recapture of
    amounts of public housing development funds reserved to a public
    housing agency for failure to begin construction or rehabilitation,
    or to complete acquisition, during 30-month period following date
    of reservation.
      Subsec. (l). Pub. L. 105-276, Sec. 518(a)(1)(B), redesignated
    subsec. (l) as (i).
      Pub. L. 105-276, Sec. 510, added subsec. (l).
      1996 - Subsec. (j)(1). Pub. L. 104-330, Sec. 501(b)(2)(A), struck
    out "(other than for Indian families)" after "for public housing"
    in introductory provisions.
      Subsec. (l). Pub. L. 104-330, Sec. 501(b)(2)(B), struck out
    subsec. (l) which read as follows: "The Secretary may not use as a
    criterion for distributing assistance under this section the
    progress made by an Indian public housing agency in collecting
    rents owed by tenants unless - 
        "(1) such criterion is used as 1 of several criteria that are
      weighted proportionally and is established by regulations issued
      after public notice and opportunity to comment in accordance with
      section 553 of title 5; or
        "(2) the Secretary determines that the Indian public housing
      agency has demonstrated a pattern of substantial noncompliance
      with requirements governing the collection of rents."
      1995 - Subsec. (h). Pub. L. 104-19 struck out at end "Any such
    sale shall be subject to the restrictions contained in section
    1437aaa-3(g) of this title."
      1992 - Subsec. (c)(6). Pub. L. 102-550, Sec. 101(a), inserted at
    end "The aggregate amount of budget authority that may be obligated
    for assistance referred to in paragraph (7) is increased (to the
    extent approved in appropriation Acts) by $14,710,990,520 on
    October 1, 1992, and by $15,328,852,122 on October 1993."
      Subsec. (c)(7)(A), (B). Pub. L. 102-550, Sec. 101(b), added
    subpars. (A) and (B) and struck out former subpars. (A) and (B)
    which directed Secretary to reserve authority to enter into certain
    obligations aggregating specified amounts using par. (6) budget
    authority and balances of such authority available in fiscal years
    1991 and 1992.
      Subsec. (j)(1)(D). Pub. L. 102-550, Sec. 624(c)(1), which
    directed the striking of "and" at end, was executed by striking
    "or" at end to reflect the probable intent of Congress.
      Subsec. (j)(1)(E). Pub. L. 102-550, Sec. 624(c)(3), which
    directed amendment of subsec. (j)(1) by adding at the end a new
    subpar. (E), was executed by adding subsec. (E) after subpar. (D)
    to reflect the probable intent of Congress. Former subpar. (E)
    redesignated (F).
      Subsec. (j)(1)(F). Pub. L. 102-550, Sec. 624(c)(2), redesignated
    subpar. (E) as (F).
      Subsec. (j)(2). Pub. L. 102-550, Sec. 624(a), added subpar. (G).
      Pub. L. 102-550, Sec. 111(a), amended par. (2) generally. Prior
    to amendment, par. (2) read as follows: "Notwithstanding any other
    provision of law, not more than 20 percent of the funds
    appropriated for development of public housing also may be
    committed by the Secretary for the substantial redesign,
    reconstruction, or redevelopment of existing public housing
    projects or units, which work shall be carried out pursuant to the
    rules and regulations applicable to the development of public
    housing."
      Subsec. (j)(3). Pub. L. 102-550, Sec. 624(b), added par. (3).
      1990 - Subsec. (a)(3). Pub. L. 101-625, Sec. 572(2), substituted
    "low-income housing" for "lower income housing".
      Subsec. (c)(6). Pub. L. 101-625, Sec. 571(a), inserted at end
    "The aggregate amount of budget authority that may be obligated for
    assistance referred to in paragraph (7) is increased (to the extent
    approved in appropriation Acts) by $16,194,000,000 on October 1,
    1990, and by $14,709,400,000 on October 1, 1991."
      Subsec. (c)(7)(A), (B). Pub. L. 101-625, Sec. 571(b), amended
    subpars. (A) and (B) generally, substituting present provisions for
    provisions directing Secretary to reserve authority to enter into
    certain obligations aggregating specified amounts using par. (6)
    budget authority and balances of such authority available in fiscal
    years 1988 and 1989.
      Subsecs. (d), (e). Pub. L. 101-625, Sec. 572(2), substituted "low-
    income housing" for "lower income housing" wherever appearing.
      Subsec. (h). Pub. L. 101-625, Sec. 572(2), substituted "low-
    income housing" for "lower income housing".
      Pub. L. 101-625, Sec. 417(a), inserted at end "Any such sale
    shall be subject to the restrictions contained in section 1437aaa-
    3(g) of this title."
      1988 - Pub. L. 100-242, Sec. 112(b)(1)(A), substituted
    "Contributions" for "Annual contributions" in section catchline.
      Subsec. (a). Pub. L. 100-242, Sec. 112(a), amended subsec. (a)
    generally, revising and restating as pars. (1) to (3) provisions
    formerly contained in a single unnumbered par.
      Subsec. (c)(6). Pub. L. 100-242, Sec. 101(a), inserted sentence
    at end providing for increases on Oct. 1, 1987, and Oct. 1, 1988,
    of aggregate amount of budget authority that may be obligated for
    specified purposes.
      Subsec. (c)(7). Pub. L. 100-242, Sec. 101(b), amended par. (7)
    generally, substituting provisions relating to Secretary's
    authority to enter into obligations under this section for fiscal
    years 1988 and 1989, for provisions relating to Secretary's
    authority for fiscal years 1984 and 1985 and substituting
    provisions whereby amounts available for conversion of project to
    assistance under section 1437f(b)(1) of this title and amounts
    available for assistance under section 1437f for property
    disposition, if not required for such purpose, shall be used for
    assistance under section 1437f(b)(1) of this title, for provisions
    wherein specific authorities under this paragraph would be subject
    to adjustments under par. (5) of this subsection.
      Subsec. (c)(8). Pub. L. 100-358, Sec. 3, added par. (8).
      Subsec. (e)(2). Pub. L. 100-242, Sec. 112(b)(1)(B), struck out
    "annual" before "contributions".
      Subsecs. (j) to (l). Pub. L. 100-242, Secs. 113-115, added
    subsecs. (j) to (l).
      1983 - Subsec. (c)(1). Pub. L. 98-181, Sec. 201(b)(1), struck out
    concluding provision requiring the Secretary, in utilizing the
    additional authority to enter into contracts on and after Oct. 1,
    1980, to administer the authorized programs to provide assistance,
    to the maximum extent practicable, consistent with section 1439(d)
    of this title.
      Subsec. (c)(2). Pub. L. 98-181, Sec. 201(b)(2), redesignated par.
    (4) as (2), and struck out former par. (2) which from funds made
    available on Oct. 1, 1980, had required at least $100,000,000 be
    available for section 1437l projects, and from remaining difference
    limited use of funds to 37.5 and 62.5 per centum for existing
    section 1437f projects and for newly constructed and substantially
    rehabilitated units.
      Subsec. (c)(3). Pub. L. 98-181, Sec. 201(b)(2), redesignated par.
    (5) as (3), and struck out former par. (3) which from funds made
    available on Oct. 1, 1981, had required at least $75,000,000 be
    available for section 1437l projects, from remaining difference
    allocated sums as provided in section 1439(d) for different
    community and area uses, and from remaining difference required the
    accommodation of preferences of units of local government based on
    stated factors.
      Subsec. (c)(4). Pub. L. 98-181, Sec. 201(b)(2), redesignated par.
    (6) as (4). Former par. (4) redesignated (2).
      Subsec. (c)(5) to (7). Pub. L. 98-181, Sec. 201(b)(3), added
    pars. (5) to (7). Former pars. (5) and (6) redesignated (3) and
    (4), respectively.
      1981 - Subsec. (a). Pub. L. 97-35, Sec. 322(c), substituted
    references to lower income for references to low-income wherever
    appearing.
      Subsec. (c). Pub. L. 97-35, Sec. 321(a)-(c), in par. (1) inserted
    provisions relating to increases on Oct. 1, 1981, and amount
    respecting additional authority as of Oct. 1, 1981, added par. (3),
    and redesignated former pars. (3) to (5) as (4) to (6),
    respectively.
      Subsecs. (d) to (f), (h). Pub. L. 97-35, Sec. 322(c), substituted
    references to lower income for references to low-income wherever
    appearing.
      1980 - Subsec. (c). Pub. L. 96-399, Sec. 201(a), redesignated
    existing provisions as par. (1), among other changes, substituted
    provisions relating to the discretionary power of the Secretary to
    enter into contracts for annual contributions for provisions
    authorizing the Secretary to enter into such contracts, deleted
    references to contributions for assistance to Indian tribes, and
    added pars. (2) to (5).
      Subsec. (i). Pub. L. 96-399, Sec. 210, added subsec. (i).
      1979 - Subsec. (c). Pub. L. 96-153 authorized increase in
    aggregate contractual contributions by $1,140,661,000 on Oct. 1,
    1979, and inserted requirements that out of such additional
    authority not more than $195,053,000 be authorized to be approved
    in appropriation acts for units assisted under this chapter other
    than under section 1437f of this title and that not less than
    $50,000,000 of the later amount be authorized to be approved for
    modernization of the units.
      1978 - Subsec. (c). Pub. L. 95-619 authorized the Secretary to
    enter into annual contribution contracts aggregating not more than
    $10,000,000 per annum for financing the purchase and installation
    of energy conserving improvement in existing low-income housing
    projects which the Secretary determined had the greatest need for
    such improvements.
      Pub. L. 95-557 inserted "and by $1,195,043,000 on October 1,
    1978" after "October 1, 1977", "and on and after October 1, 1978"
    after "October 1, 1976" and "Of the additional authority to enter
    into contracts for annual contributions provided on October 1,
    1978, and approved in appropriation Acts, the Secretary shall make
    available not less than $50,000,000 for modernization of low-income
    housing projects" after "pursuant to section 5304(a)(4) of this
    title", and struck out provisions after "only such amounts as may
    be approved in appropriations Acts" mandating that of the
    additional authority to enter into contracts provided on October 1,
    1976, at least $60,000,000 be made available for modernization of
    low-income housing projects and at least $140,000,000 to assist in
    financing low-income housing projects for ownership by public
    housing agencies other than under section 1437f, of which not less
    than $100,000,000 shall be available only for the purpose of
    financing the construction or rehabilitation of low-income housing
    projects, and provision after "plans prepared pursuant to section
    5304(a)(4) of this title" mandating that of the additional
    authority to enter into contracts for annual contributions provided
    on Oct. 1, 1977, not less than $42,500,000 shall be made available
    for low-income housing projects, not less than $197,139,200 for low-
    income housing projects permanently financed by loans from State
    housing finance or State development agencies, and not less than
    $120,000,000 for low-income housing projects permanently financed
    by loans pursuant to section 1701q of title 12.
      1977 - Subsec. (c). Pub. L. 95-128 authorized increase in
    aggregate contractual contributions by $1,159,995,000 on Oct. 1,
    1977, and required the Secretary to make available therefrom
    minimum amounts of $42,500,000 for modernization of low-income
    housing projects, $197,139,200 for such projects financed by loans
    from State housing finance or State development agencies, and
    $120,000,000 for such projects financed by loans pursuant to
    section 1701q of title 12.
      Pub. L. 95-24 substituted "and by $1,228,050,000 on October 1,
    1976" for "and by $850,000,000 on October 1, 1976".
      1976 - Subsec. (c). Pub. L. 94-375 substituted "$1,524,000,000
    per annum, which limit shall be increased by $965,000,000 on July
    1, 1974, by $662,300,000 on July 1, 1975, and by $850,000,000 on
    October 1, 1976, except that the additional authority to enter into
    contracts for annual contributions provided on or after July 1,
    1975, shall be effective only in such amounts as may be approved in
    appropriation Acts" for "$1,199,250,000 per annum, which limit
    shall be increased by $225,000,000 on July 1, 1971, by $150,000,000
    on July 1, 1972, by $400,000,000 on July 1, 1973, and by
    $965,000,000 on July 1, 1974", provision requiring the Secretary
    make available a total of at least $200,000,000 for modernization
    and financing of low-income housing projects under the additional
    authority to enter into contracts for annual contributions provided
    on Oct. 1, 1976, for provision which required the Secretary to
    enter into contracts for annual contributions of at least
    $150,000,000 to assist in financing the development or acquisition
    cost of low-income housing projects, inserted "and by not less than
    $17,000,000 per annum on October 1, 1976," after "not less than
    $15,000,000 per annum, on July 1, 1975", and struck out "to the
    amounts of contracts for annual contributions required to be
    entered into by the Secretary under the second sentence of this
    subsection" after "In addition".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Section 1002(d) of Pub. L. 104-19, as amended by Pub. L. 104-134,
    title I, Sec. 101(e) [title II, Sec. 201(b)(1)], Apr. 26, 1996, 110
    Stat. 1321-257, 1321-278; renumbered title I, Pub. L. 104-140, Sec.
    1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 104-204, title II, Sec.
    201(b), Sept. 26, 1996, 110 Stat. 2892; Pub. L. 105-65, title II,
    Sec. 201(a), Oct. 27, 1997, 111 Stat. 1364, provided that:
    Subsections (a), (b), and (c) [amending this section and sections
    1437p and 1437aaa-3 of this title] shall be effective for
    applications for the demolition, disposition, or conversion to
    homeownership of public housing approved by the Secretary, and
    other consolidation and relocation activities of public housing
    agencies undertaken, on, before, or after September 30, 1995 and on
    or before September 30, 1998."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 417(b) of Pub. L. 101-625 provided that: "The amendment
    made by subsection (a) [amending this section] shall not apply to
    applications submitted under section 5(h) of the United States
    Housing Act of 1937 [subsec. (h) of this section] prior to October
    1, 1990."

                     EFFECTIVE DATE OF 1988 AMENDMENT                 
      For date on which Secretary of Housing and Urban Development may
    carry out programs to provide lower income housing on Indian
    reservations and other Indian areas only in accordance with
    amendment by Pub. L. 100-358, see section 6 of Pub. L. 100-358, set
    out as a note under section 1437a of this title.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Section 206(h) of Pub. L. 95-557 provided that: "The amendments
    made by this section [amending this section and sections 1437a,
    1437f, and 1437g of this title], except the amendment made by
    subsection (d) [amending section 1437f of this title], shall become
    effective on October 1, 1978."

                     EFFECTIVE DATE OF 1976 AMENDMENT                 
      Section 2(b)(1), (2) of Pub. L. 94-375 provided that the
    amendment of subsec. (c), which required the Secretary to make
    available a total of $200,000,000 for modernization and financing
    of low-income housing and which struck out reference to the amount
    of contracts the Secretary was required to enter into under the
    second sentence of this subsection, is effective Oct. 1, 1976.

                              EFFECTIVE DATE                          
      Section effective on such date or dates as the Secretary of
    Housing and Urban Development shall prescribe, but not later than
    eighteen months after Aug. 22, 1974, except that all of the
    provisions of this section shall become effective on the same date,
    see section 201(b) of Pub. L. 93-383, set out as a note under
    section 1437 of this title.

                                REGULATIONS                            
      Section 111(c) of Pub. L. 102-550 provided that: "The Secretary
    shall issue regulations necessary to carry out the amendments made
    by this section [amending this section and sections 1437l and 1437p
    of this title] as provided under section 191 of this Act [42 U.S.C.
    1437a note]."

    INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING
      Amendment by section 624 of Pub. L. 102-550 not applicable with
    respect to lower income housing developed or operated pursuant to
    contract between Secretary of Housing and Urban Development and
    Indian housing authority, see section 626 of Pub. L. 102-550, set
    out as a note under section 1437a of this title.

     INCREASE IN BUDGET AUTHORITY FOR CERTIFICATE AND VOUCHER PROGRAMS
                            FOR DISASTER RELIEF
      Section 931 of Pub. L. 101-625, as amended by Pub. L. 105-276,
    title V, Sec. 550(c), Oct. 21, 1998, 112 Stat. 2609, provided that:
    "The budget authority available under section 5(c) of the United
    States Housing Act of 1937 (42 U.S.C. 1437c(c)) for tenant-based
    assistance under section 8 of the United States Housing Act of 1937
    [42 U.S.C. 1437f] is authorized to be increased in any fiscal year
    in which a major disaster is declared by the President under the
    Robert T. Stafford Disaster Relief and Emergency Assistance Act [42
    U.S.C. 5121 et seq.] in such amounts as may be necessary to provide
    assistance under such programs for individuals and families whose
    housing has been damaged or destroyed as a result of such disaster,
    except that in implementing this section, the Secretary shall
    evaluate the natural hazards to which any permanent replacement
    housing is exposed and shall take appropriate action to mitigate
    such hazards."

     INCREASE IN BUDGET AUTHORITY FOR MODERATE REHABILITATION PROGRAM
                            FOR DISASTER RELIEF
      Section 932 of Pub. L. 101-625 provided that: "The budget
    authority available under section 5(c) of the United States Housing
    Act of 1937 (42 U.S.C. 1437c(c)) for assistance under the moderate
    rehabilitation program under section 8(e)(2) of such Act [42 U.S.C.
    1437f(e)(2)] is authorized to be increased in any fiscal year in
    which a major disaster is declared by the President under the
    Robert T. Stafford Disaster Relief and Emergency Assistance Act [42
    U.S.C. 5121 et seq.] in such amount as may be necessary to provide
    assistance under such program for individuals and families whose
    housing has been damaged or destroyed as a result of such disaster,
    except that in implementing this section, the Secretary shall
    evaluate the natural hazards to which any permanent replacement
    housing is exposed and shall take appropriate action to mitigate
    such hazards."

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    42 USC Sec. 1437c-1                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437c-1. Public housing agency plans

-STATUTE-
    (a) 5-year plan
      (1) In general
        Subject to paragraph (3), not less than once every 5 fiscal
      years, each public housing agency shall submit to the Secretary a
      plan that includes, with respect to the 5 fiscal years
      immediately following the date on which the plan is submitted - 
          (A) a statement of the mission of the public housing agency
        for serving the needs of low-income and very low-income
        families in the jurisdiction of the public housing agency
        during such fiscal years; and
          (B) a statement of the goals and objectives of the public
        housing agency that will enable the public housing agency to
        serve the needs identified pursuant to subparagraph (A) during
        those fiscal years.
      (2) Statement of goals
        The 5-year plan shall include a statement by any public housing
      agency of the goals, objectives, policies, or programs that will
      enable the housing authority to serve the needs of child and
      adult victims of domestic violence, dating violence, sexual
      assault, or stalking.
      (3) Initial plan
        The initial 5-year plan submitted by a public housing agency
      under this subsection shall be submitted for the 5-year period
      beginning on October 1, 1999, or the first fiscal year thereafter
      for which the public housing agency initially receives assistance
      under this chapter.
    (b) Annual plan
      (1) In general
        Effective beginning upon October 1, 1999, each public housing
      agency shall submit to the Secretary an annual public housing
      agency plan under this subsection for each fiscal year for which
      the public housing agency receives assistance under section
      1437f(o) or 1437g of this title.
      (2) Updates
        For each fiscal year after the initial submission of an annual
      plan under this subsection by a public housing agency, the public
      housing agency may comply with requirements for submission of a
      plan under this subsection by submitting an update of the plan
      for the fiscal year.
    (c) Procedures
      (1) In general
        The Secretary shall establish requirements and procedures for
      submission and review of plans, including requirements for timing
      and form of submission, and for the contents of such plans.
      (2) Contents
        The procedures established under paragraph (1) shall provide
      that a public housing agency shall - 
          (A) in developing the plan consult with the resident advisory
        board established under subsection (e) of this section; and
          (B) ensure that the plan under this section is consistent
        with the applicable comprehensive housing affordability
        strategy (or any consolidated plan incorporating such strategy)
        for the jurisdiction in which the public housing agency is
        located, in accordance with title I of the Cranston-Gonzalez
        National Affordable Housing Act [42 U.S.C. 12701 et seq.], and
        contains a certification by the appropriate State or local
        official that the plan meets the requirements of this paragraph
        and a description of the manner in which the applicable
        contents of the public housing agency plan are consistent with
        the comprehensive housing affordability strategy.
    (d) Contents
      An annual public housing agency plan under subsection (b) of this
    section for a public housing agency shall contain the following
    information relating to the upcoming fiscal year for which the
    assistance under this chapter is to be made available:
      (1) Needs
        A statement of the housing needs of low-income and very low-
      income families residing in the jurisdiction served by the
      public housing agency, and of other low-income and very low-
      income families on the waiting list of the agency (including
      housing needs of elderly families and disabled families), and the
      means by which the public housing agency intends, to the maximum
      extent practicable, to address those needs.
      (2) Financial resources
        A statement of financial resources available to the agency and
      the planned uses of those resources.
      (3) Eligibility, selection, and admissions policies
        A statement of the policies governing eligibility, selection,
      admissions (including any preferences), assignment, and occupancy
      of families with respect to public housing dwelling units and
      housing assistance under section 1437f(o) of this title,
      including - 
          (A) the procedures for maintaining waiting lists for
        admissions to public housing projects of the agency, which may
        include a system of site-based waiting lists under section
        1437d(r) of this title; and
          (B) the admissions policy under section 1437n(a)(3)(B) of
        this title for deconcentration of lower-income families.
      (4) Rent determination
        A statement of the policies of the public housing agency
      governing rents charged for public housing dwelling units and
      rental contributions of families assisted under section 1437f(o)
      of this title.
      (5) Operation and management
        A statement of the rules, standards, and policies of the public
      housing agency governing maintenance and management of housing
      owned, assisted, or operated by the public housing agency (which
      shall include measures necessary for the prevention or
      eradication of pest infestation, including by cockroaches), and
      management of the public housing agency and programs of the
      public housing agency.
      (6) Grievance procedure
        A statement of the grievance procedures of the public housing
      agency.
      (7) Capital improvements
        With respect to public housing projects owned, assisted, or
      operated by the public housing agency, a plan describing the
      capital improvements necessary to ensure long-term physical and
      social viability of the projects.
      (8) Demolition and disposition
        With respect to public housing projects owned by the public
      housing agency - 
          (A) a description of any housing for which the PHA will apply
        for demolition or disposition under section 1437p of this
        title; and
          (B) a timetable for the demolition or disposition.
      (9) Designation of housing for elderly and disabled families
        With respect to public housing projects owned, assisted, or
      operated by the public housing agency, a description of any
      projects (or portions thereof) that the public housing agency has
      designated or will apply for designation for occupancy by elderly
      and disabled families in accordance with section 1437e of this
      title.
      (10) Conversion of public housing
        With respect to public housing owned by a public housing agency
      - 
          (A) a description of any building or buildings that the
        public housing agency is required to convert to tenant-based
        assistance under section 1437z-5 of this title or that the
        public housing agency plans to voluntarily convert under
        section 1437t of this title;
          (B) an analysis of the projects or buildings required to be
        converted under section 1437z-5 of this title; and
          (C) a statement of the amount of assistance received under
        this chapter to be used for rental assistance or other housing
        assistance in connection with such conversion.
      (11) Homeownership
        A description of any homeownership programs of the agency under
      section 1437f(y) of this title or for which the public housing
      agency has applied or will apply for approval under section 1437z-
      4 of this title.
      (12) Community service and self-sufficiency
        A description of - 
          (A) any programs relating to services and amenities provided
        or offered to assisted families;
          (B) any policies or programs of the public housing agency for
        the enhancement of the economic and social self-sufficiency of
        assisted families;
          (C) how the public housing agency will comply with the
        requirements of subsections (c) and (d) of section 1437j of
        this title (relating to community service and treatment of
        income changes resulting from welfare program requirements).
      (13) Domestic violence, dating violence, sexual assault, or
        stalking programs
        A description of - 
          (A) any activities, services, or programs provided or offered
        by an agency, either directly or in partnership with other
        service providers, to child or adult victims of domestic
        violence, dating violence, sexual assault, or stalking;
          (B) any activities, services, or programs provided or offered
        by a public housing agency that helps child and adult victims
        of domestic violence, dating violence, sexual assault, or
        stalking, to obtain or maintain housing; and
          (C) any activities, services, or programs provided or offered
        by a public housing agency to prevent domestic violence, dating
        violence, sexual assault, and stalking, or to enhance victim
        safety in assisted families.
      (14) Safety and crime prevention
        A plan established by the public housing agency, which shall be
      subject to the following requirements:
        (A) Safety measures
          The plan shall provide, on a project-by-project or
        jurisdiction-wide basis, for measures to ensure the safety of
        public housing residents.
        (B) Establishment
          The plan shall be established in consultation with the police
        officer or officers in command for the appropriate precinct or
        police department.
        (C) Content
          The plan shall describe the need for measures to ensure the
        safety of public housing residents and for crime prevention
        measures, describe any such activities conducted or to be
        conducted by the agency, and provide for coordination between
        the agency and the appropriate police precincts for carrying
        out such measures and activities.
        (D) Secretarial action
          If the Secretary determines, at any time, that the security
        needs of a project are not being adequately addressed by the
        plan, or that the local police precinct is not complying with
        the plan, the Secretary may mediate between the public housing
        agency and the local precinct to resolve any issues of
        conflict.
      (15) Pets
        The requirements of the agency, pursuant to section 1437z-3 of
      this title, relating to pet ownership in public housing.
      (16) Civil rights certification
        A certification by the public housing agency that the public
      housing agency will carry out the public housing agency plan in
      conformity with title VI of the Civil Rights Act of 1964 [42
      U.S.C. 2000d et seq.], the Fair Housing Act [42 U.S.C. 3601 et
      seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
      794], and title II of the Americans with Disabilities Act of 1990
      [42 U.S.C. 12131 et seq.], and will affirmatively further fair
      housing.
      (17) Annual audit
        The results of the most recent fiscal year audit of the public
      housing agency under section 1437c(h)(2) of this title.
      (18) Asset management
        A statement of how the agency will carry out its asset
      management functions with respect to the public housing inventory
      of the agency, including how the agency will plan for the long-
      term operating, capital investment, rehabilitation,
      modernization, disposition, and other needs for such inventory.
      (19) Other
        Any other information required by law to be included in a
      public housing agency plan.
    (e) Resident advisory board
      (1) In general
        Except as provided in paragraph (3), each public housing agency
      shall establish 1 or more resident advisory boards in accordance
      with this subsection, the membership of which shall adequately
      reflect and represent the residents assisted by the public
      housing agency.
      (2) Functions
        Each resident advisory board established under this subsection
      by a public housing agency shall assist and make recommendations
      regarding the development of the public housing agency plan for
      the agency. The agency shall consider the recommendations of the
      resident advisory boards in preparing the final public housing
      agency plan, and shall include, in the public housing agency plan
      submitted to the Secretary under this section, a copy of the
      recommendations and a description of the manner in which the
      recommendations were addressed.
      (3) Waiver
        The Secretary may waive the requirements of this subsection
      with respect to the establishment of resident advisory boards for
      a public housing agency if the agency demonstrates to the
      satisfaction of the Secretary that there exist resident councils
      or other resident organizations of the public housing agency that
      - 
          (A) adequately represent the interests of the residents of
        the public housing agency; and
          (B) have the ability to perform the functions described in
        paragraph (2).
    (f) (!1) Notice and hearing

      (1) In general
        In developing a public housing agency plan under this section,
      the board of directors or similar governing body of a public
      housing agency shall conduct a public hearing to discuss the
      public housing agency plan and to invite public comment regarding
      that plan. The hearing shall be conducted at a location that is
      convenient to residents.
      (2) Availability of information and notice
        Not later than 45 days before the date of a hearing conducted
      under paragraph (1), the public housing agency shall - 
          (A) make the proposed public housing agency plan and all
        information relevant to the hearing and proposed plan available
        for inspection by the public at the principal office of the
        public housing agency during normal business hours; and
          (B) publish a notice informing the public that - 
            (i) that the information is available as required under
          subparagraph (A); and
            (ii) that a public hearing under paragraph (1) will be
          conducted.
      (3) Adoption of plan
        A public housing agency may adopt a public housing agency plan
      and submit the plan to the Secretary in accordance with this
      section only after - 
          (A) conducting a public hearing under paragraph (1);
          (B) considering all public comments received; and
          (C) making any appropriate changes in the public housing
        agency plan, in consultation with the resident advisory board.
      (4) Advisory board consultation enforcement
        Pursuant to a written request made by the resident advisory
      board for a public housing agency that documents a failure on the
      part of the agency to provide adequate notice and opportunity for
      comment under this subsection and a finding by the Secretary of
      good cause within the time period provided for in subsection
      (i)(4) of this section, the Secretary may require the public
      housing agency to adequately remedy such failure before final
      approval of the public housing agency plan under this section.
    (g) Amendments and modifications to plans
      (1) In general
        Except as provided in paragraph (2), nothing in this section
      shall preclude a public housing agency, after submitting a plan
      to the Secretary in accordance with this section, from amending
      or modifying any policy, rule, regulation, or plan of the public
      housing agency, except that a significant amendment or
      modification may not - 
          (A) be adopted, other than at a duly called meeting of board
        of directors (or similar governing body) of the public housing
        agency that is open to the public; and
          (B) be implemented, until notification of the amendment or
        modification is provided to the Secretary and approved in
        accordance with subsection (i) of this section.
      (2) Consistency and notice
        Each significant amendment or modification to a public housing
      agency plan submitted to the Secretary under this section shall -
      
          (A) meet the requirements under subsection (c)(2) of this
        section (relating to consultation with resident advisory board
        and consistency with comprehensive housing affordability
        strategies); and
          (B) be subject to the notice and public hearing requirements
        of subsection (f) of this section.
    (h) Submission of plans
      (1) Initial submission
        Each public housing agency shall submit the initial plan
      required by this section, and any amendment or modification to
      the initial plan, to the Secretary at such time and in such form
      as the Secretary shall require.
      (2) Annual submission
        Not later than 75 days before the start of the fiscal year of
      the public housing agency, after submission of the initial plan
      required by this section in accordance with subparagraph (A),
      each public housing agency shall annually submit to the Secretary
      a plan update, including any amendments or modifications to the
      public housing agency plan.
    (i) Review and determination of compliance
      (1) Review
        Subject to paragraph (2), after submission of the public
      housing agency plan or any amendment or modification to the plan
      to the Secretary, to the extent that the Secretary considers such
      action to be necessary to make determinations under this
      paragraph, the Secretary shall review the public housing agency
      plan (including any amendments or modifications thereto) and
      determine whether the contents of the plan - 
          (A) set forth the information required by this section and
        this chapter to be contained in a public housing agency plan;
          (B) are consistent with information and data available to the
        Secretary, including the approved comprehensive housing
        affordability strategy under title I of the Cranston-Gonzalez
        National Affordable Housing Act [42 U.S.C. 12701 et seq.] for
        the jurisdiction in which the public housing agency is located;
        and
          (C) are not prohibited by or inconsistent with any provision
        of this subchapter or other applicable law.
      (2) Elements exempted from review
        The Secretary may, by regulation, provide that one or more
      elements of a public housing agency plan shall be reviewed only
      if the element is challenged, except that the Secretary shall
      review the information submitted in each plan pursuant to
      paragraphs (3)(B), (8), and (15) of subsection (d) of this
      section.
      (3) Disapproval
        The Secretary may disapprove a public housing agency plan (or
      any amendment or modification thereto) only if Secretary
      determines that the contents of the plan (or amendment or
      modification) do not comply with the requirements under
      subparagraph (A) through (C) of paragraph (1).
      (4) Determination of compliance
        (A) In general
          Except as provided in subsection (j)(2) of this section, not
        later than 75 days after the date on which a public housing
        agency plan is submitted in accordance with this section, the
        Secretary shall make the determination under paragraph (1) and
        provide written notice to the public housing agency if the plan
        has been disapproved. If the Secretary disapproves the plan,
        the notice shall state with specificity the reasons for the
        disapproval.
        (B) Failure to provide notice of disapproval
          In the case of a plan disapproved, if the Secretary does not
        provide notice of disapproval under subparagraph (A) before the
        expiration of the period described in subparagraph (A), the
        Secretary shall be considered, for purposes of this chapter, to
        have made a determination that the plan complies with the
        requirements under this section and the agency shall be
        considered to have been notified of compliance upon the
        expiration of such period. The preceding sentence shall not
        preclude judicial review regarding such compliance pursuant to
        chapter 7 of title 5 or an action regarding such compliance
        under section 1983 of this title.
      (5) Public availability
        A public housing agency shall make the approved plan of the
      agency available to the general public.
    (j) Troubled and at-risk PHAs
      (1) In general
        The Secretary may require, for each public housing agency that
      is at risk of being designated as troubled under section
      1437d(j)(2) of this title or is designated as troubled under
      section 1437d(j)(2) of this title, that the public housing agency
      plan for such agency include such additional information as the
      Secretary determines to be appropriate, in accordance with such
      standards as the Secretary may establish or in accordance with
      such determinations as the Secretary may make on an agency-by-
      agency basis.
      (2) Troubled agencies
        The Secretary shall provide explicit written approval or
      disapproval, in a timely manner, for a public housing agency plan
      submitted by any public housing agency designated by the
      Secretary as a troubled public housing agency under section
      1437d(j)(2) of this title.
    (k) Streamlined plan
      In carrying out this section, the Secretary may establish a
    streamlined public housing agency plan for - 
        (A) public housing agencies that are determined by the
      Secretary to be high performing public housing agencies;
        (B) public housing agencies with less than 250 public housing
      units that have not been designated as troubled under section
      1437d(j)(2) of this title; and
        (C) public housing agencies that only administer tenant-based
      assistance and that do not own or operate public housing.
    (l) Compliance with plan
      (1) In general
        In providing assistance under this subchapter, a public housing
      agency shall comply with the rules, standards, and policies
      established in the public housing agency plan of the public
      housing agency approved under this section.
      (2) Investigation and enforcement
        In carrying out this subchapter, the Secretary shall - 
          (A) provide an appropriate response to any complaint
        concerning noncompliance by a public housing agency with the
        applicable public housing agency plan; and
          (B) if the Secretary determines, based on a finding of the
        Secretary or other information available to the Secretary, that
        a public housing agency is not complying with the applicable
        public housing agency plan, take such actions as the Secretary
        determines to be appropriate to ensure such compliance.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 5A, as added Pub. L. 105-
    276, title V, Sec. 511(a), Oct. 21, 1998, 112 Stat. 2531; amended
    Pub. L. 109-162, title VI, Sec. 603, Jan. 5, 2006, 119 Stat. 3040.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsecs. (c)(2)(B) and (i)(1)(B), is Pub. L. 101-625, Nov.
    28, 1990, 104 Stat. 4079. Title I of the Act is classified
    generally to subchapter I (Sec. 12701 et seq.) of chapter 130 of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 12701 of this title and
    Tables.
      The Civil Rights Act of 1964, referred to in subsec. (d)(16), is
    Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of
    the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Fair Housing Act, referred to in subsec. (d)(16), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Americans with Disabilities Act of 1990, referred to in
    subsec. (d)(16), is Pub. L. 101-336, July 26, 1990, 104 Stat. 327,
    as amended. Title II of the Act is classified generally to
    subchapter II (Sec. 12131 et seq.) of chapter 126 of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 12101 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a)(1). Pub. L. 109-162, Sec. 603(1)(A),
    substituted "paragraph (3)" for "paragraph (2)".
      Subsec. (a)(2), (3). Pub. L. 109-162, Sec. 603(1)(B), (C), added
    par. (2) and redesignated former par. (2) as (3).
      Subsec. (d)(13) to (19). Pub. L. 109-162, Sec. 603(2), (3), added
    par. (13) and redesignated former pars. (13) to (18) as (14) to
    (19), respectively.

                              EFFECTIVE DATE                          
      Pub. L. 105-276, title V, Sec. 511(e), Oct. 21, 1998, 112 Stat.
    2539, provided that: "This section [enacting this section, amending
    section 1437d of this title, and enacting provisions set out as
    notes under this section] shall take effect, and the amendments
    made by this section are made on, and shall apply beginning upon,
    the date of the enactment of this Act [Oct. 21, 1998]."

                                REGULATIONS                            
      Pub. L. 105-276, title V, Sec. 511(b), Oct. 21, 1998, 112 Stat.
    2538, provided that:
      "(1) Interim rule. - Not later than 120 days after the date of
    the enactment of this Act [Oct. 21, 1998], the Secretary shall
    issue an interim rule to require the submission of an interim
    public housing agency plan by each public housing agency, as
    required by section 5A of the United States Housing Act of 1937 [42
    U.S.C. 1437c-1] (as added by subsection (a) of this section). The
    interim rule shall provide for a public comment period of not less
    than 60 days.
      "(2) Final regulations. - Not later than 1 year after the date of
    the enactment of this Act [Oct. 21, 1998], the Secretary shall
    issue final regulations implementing section 5A of the United
    States Housing Act of 1937 [42 U.S.C. 1437c-1] (as added by
    subsection (a) of this section).
      "(3) Factors for consideration. - Before the publication of the
    final regulations under paragraph (2), in addition to public
    comments invited in connection with the publication of the interim
    rule, the Secretary shall - 
        "(A) seek recommendations on the implementation of section 5A
      of the United States Housing Act of 1937 [42 U.S.C. 1437c-1] (as
      added by this [sic] subsection (a) of this section) from
      organizations representing - 
          "(i) State or local public housing agencies;
          "(ii) residents, including resident management corporations;
        and
          "(iii) other appropriate parties; and
        "(B) convene not less than 2 public forums at which the persons
      or organizations making recommendations under subparagraph (A)
      may express views concerning the proposed disposition of the
      recommendations.
    The Secretary shall publish in the final rule a summary of the
    recommendations made and public comments received and the
    Department of Housing and Urban Development's response to such
    recommendations and comments."

                         AUDIT AND REVIEW; REPORT                     
      Pub. L. 105-276, title V, Sec. 511(c), Oct. 21, 1998, 112 Stat.
    2538, provided that:
      "(1) Audit and review. - Not later than 1 year after the
    effective date of final regulations issued under subsection (b)(2)
    [set out as a note above], in order to determine the degree of
    compliance, by public housing agencies, with public housing agency
    plans approved under section 5A of the United States Housing Act of
    1937 [42 U.S.C. 1437c-1] (as added by subsection (a) of this
    section), the Comptroller General of the United States shall
    conduct - 
        "(A) a review of a representative sample of the public housing
      agency plans approved under such section 5A before such date; and
        "(B) an audit and review of the public housing agencies
      submitting such plans.
      "(2) Report. - Not later than 2 years after the date on which
    public housing agency plans are initially required to be submitted
    under section 5A of the United States Housing Act of 1937 [42
    U.S.C. 1437c-1] (as added by subsection (a) of this section) the
    Comptroller General of the United States shall submit to the
    Congress a report, which shall include - 
        "(A) a description of the results of each audit and review
      under paragraph (1); and
        "(B) any recommendations for increasing compliance by public
      housing agencies with their public housing agency plans approved
      under section 5A of the United States Housing Act of 1937 (as
      added by subsection (a) of this section)."

-FOOTNOTE-
    (!1) Subsection designation editorially supplied.


-End-



-CITE-
    42 USC Sec. 1437d                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437d. Contract provisions and requirements; loans and annual
      contributions

-STATUTE-
    (a) Conditions; elevators
      The Secretary may include in any contract for loans,
    contributions, sale, lease, mortgage, or any other agreement or
    instrument made pursuant to this chapter, such covenants,
    conditions, or provisions as he may deem necessary in order to
    insure the lower income character of the project involved, in a
    manner consistent with the public housing agency plan. Any such
    contract shall require that, except in the case of housing
    predominantly for elderly or disabled families, high-rise elevator
    projects shall not be provided for families with children unless
    the Secretary makes a determination that there is no practical
    alternative.
    (b) Limitation on development costs
      (1) Each contract for loans (other than preliminary loans) or
    contributions for the development, acquisition, or operation of
    public housing shall provide that the total development cost of the
    project on which the computation of any annual contributions under
    this chapter may be based may not exceed the amount determined
    under paragraph (2) (for the appropriate structure type) unless the
    Secretary provides otherwise, and in any case may not exceed 110
    per centum of such amount unless the Secretary for good cause
    determines otherwise.
      (2) For purposes of paragraph (1), the Secretary shall determine
    the total development cost by multiplying the construction cost
    guideline for the project (which shall be determined by averaging
    the current construction costs, as listed by not less than 2
    nationally recognized residential construction cost indices, for
    publicly bid construction of a good and sound quality) by - 
        (A) in the case of elevator type structures, 1.6; and
        (B) in the case of nonelevator type structures, 1.75.

      (3) In calculating the total development cost of a project under
    paragraph (2), the Secretary shall consider only capital assistance
    provided by the Secretary to a public housing agency that are (!1)
    authorized for use in connection with the development of public
    housing, and shall exclude all other amounts, including amounts
    provided under - 

        (A) the HOME investment partnerships program authorized under
      title II of the Cranston-Gonzalez National Affordable Housing Act
      [42 U.S.C. 12721 et seq.]; or
        (B) the community development block grants program under title
      I of the Housing and Community Development Act of 1974 [42 U.S.C.
      5301 et seq.].

      (4) The Secretary may restrict the amount of capital funds that a
    public housing agency may use to pay for housing construction
    costs. For purposes of this paragraph, housing construction costs
    include the actual hard costs for the construction of units,
    builders' overhead and profit, utilities from the street, and
    finish landscaping.
    (c) Revision of maximum income limits; certification of compliance
      with requirements; notification of eligibility; informal hearing;
      compliance with procedures for sound management
      Every contract for contributions shall provide that - 
        (1) the Secretary may require the public housing agency to
      review and revise its maximum income limits if the Secretary
      determines that changed conditions in the locality make such
      revision necessary in achieving the purposes of this chapter;
        (2) the public housing agency shall determine, and so certify
      to the Secretary, that each family in the project was admitted in
      accordance with duly adopted regulations and approved income
      limits; and the public housing agency shall review the incomes of
      families living in the project no less frequently than annually;
        (3) the public housing agency shall not deny admission to the
      project to any applicant on the basis that the applicant is or
      has been a victim of domestic violence, dating violence, or
      stalking if the applicant otherwise qualifies for assistance or
      admission, and that nothing in this section shall be construed to
      supersede any provision of any Federal, State, or local law that
      provides greater protection than this section for victims of
      domestic violence, dating violence, or stalking (!2)

        (4) the public housing agency shall promptly notify (i) any
      applicant determined to be ineligible for admission to the
      project of the basis for such determination and provide the
      applicant upon request, within a reasonable time after the
      determination is made, with an opportunity for an informal
      hearing on such determination, and (ii) any applicant determined
      to be eligible for admission to the project of the approximate
      date of occupancy insofar as such date can be reasonably
      determined; and
        (5) the public housing agency shall comply with such procedures
      and requirements as the Secretary may prescribe to assure that
      sound management practices will be followed in the operation of
      the project, including requirements pertaining to - 
          (A) making dwelling units in public housing available for
        occupancy, which shall provide that the public housing agency
        may establish a system for making dwelling units available that
        provides preference for such occupancy to families having
        certain characteristics; 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 1437c-1(f) of this title and
        under the requirements applicable to the comprehensive housing
        affordability strategy for the relevant jurisdiction;
          (B) the establishment of satisfactory procedures designed to
        assure the prompt payment and collection of rents and the
        prompt processing of evictions in the case of nonpayment of
        rent;
          (C) the establishment of effective tenant-management
        relationships designed to assure that satisfactory standards of
        tenant security and project maintenance are formulated and that
        the public housing agency (together with tenant councils where
        they exist) enforces those standards fully and effectively;
          (D) the development by local housing authority managements of
        viable homeownership opportunity programs for low-income
        families capable of assuming the responsibilities of
        homeownership;
          (E) for each agency that receives assistance under this
        subchapter, the establishment and maintenance of a system of
        accounting for rental collections and costs (including
        administrative, utility, maintenance, repair and other
        operating costs) for each project or operating cost center (as
        determined by the Secretary), which collections and costs shall
        be made available to the general public and submitted to the
        appropriate local public official (as determined by the
        Secretary); except that the Secretary may permit agencies
        owning or operating less than 500 units to comply with the
        requirements of this subparagraph by accounting on an agency-
        wide basis; and
          (F) requiring the public housing agency to ensure and
        maintain compliance with subtitle C of title VI of the Housing
        and Community Development Act of 1992 [42 U.S.C. 13601 et seq.]
        and any regulations issued under such subtitle.
    (d) Exemption from personal and real property taxes; payments in
      lieu of taxes; cash contribution or tax remission
      Every contract for contributions with respect to a low-income
    housing project shall provide that no contributions by the
    Secretary shall be made available for such project unless such
    project (exclusive of any portion thereof which is not assisted by
    contributions under this chapter) is exempt from all real and
    personal property taxes levied or imposed by the State, city,
    county, or other political subdivision; and such contract shall
    require the public housing agency to make payments in lieu of taxes
    equal to 10 per centum of the sum of the shelter rents charged in
    such project, or such lesser amount as (i) is prescribed by State
    law, or (ii) is agreed to by the local governing body in its
    agreement for local cooperation with the public housing agency
    required under section 1437c(e)(2) of this title, or (iii) is due
    to failure of a local public body or bodies other than the public
    housing agency to perform any obligation under such agreement. If
    any such project is not exempt from all real and personal property
    taxes levied or imposed by the State, city, county, or other
    political subdivision, such contract shall provide, in lieu of the
    requirement for tax exemption and payments in lieu of taxes, that
    no contributions by the Secretary shall be made available for such
    project unless and until the State, city, county, or other
    political subdivision in which such project is situated shall
    contribute, in the form of cash or tax remission, the amount by
    which the taxes paid with respect to the project exceed 10 per
    centum of the shelter rents charged in such project.
    (e) Repealed. Pub. L. 105-276, title V, Sec. 529(2), Oct. 21, 1998,
      112 Stat. 2569
    (f) Housing quality requirements
      (1) In general
        Each contract for contributions for a public housing agency
      shall require that the agency maintain its public housing in a
      condition that complies with standards which meet or exceed the
      housing quality standards established under paragraph (2).
      (2) Federal standards
        The Secretary shall establish housing quality standards under
      this paragraph that ensure that public housing dwelling units are
      safe and habitable. Such standards shall include requirements
      relating to habitability, including maintenance, health and
      sanitation factors, condition, and construction of dwellings, and
      shall, to the greatest extent practicable, be consistent with the
      standards established under section 1437f(o)(8)(B)(i) of this
      title. The Secretary may determine whether the laws, regulations,
      standards, or codes of any State or local jurisdiction meet or
      exceed these standards, for purposes of this subsection.
      (3) Annual inspections
        Each public housing agency that owns or operates public housing
      shall make an annual inspection of each public housing project to
      determine whether units in the project are maintained in
      accordance with the requirements under paragraph (1). The agency
      shall retain the results of such inspections and, upon the
      request of the Secretary, the Inspector General for the
      Department of Housing and Urban Development, or any auditor
      conducting an audit under section 1437c(h) of this title, shall
      make such results available.
    (g) Substantial default; conveyance of title and delivery of
      possession; reconveyance and redelivery; payments for outstanding
      obligations
      Every contract for contributions (including contracts which amend
    or supersede contracts previously made) may provide that - 
        (1) upon the occurrence of a substantial default in respect to
      the covenants or conditions to which the public housing agency is
      subject (as such substantial default shall be defined in such
      contract), the public housing agency shall be obligated at the
      option of the Secretary either to convey title in any case where,
      in the determination of the Secretary (which determination shall
      be final and conclusive), such conveyance of title is necessary
      to achieve the purposes of this chapter, or to deliver to the
      Secretary possession of the project, as then constituted, to
      which such contract relates; and
        (2) the Secretary shall be obligated to reconvey or redeliver
      possession of the project as constituted at the time of
      reconveyance or redelivery, to such public housing agency or to
      its successor (if such public housing agency or a successor
      exists) upon such terms as shall be prescribed in such contract,
      and as soon as practicable (i) after the Secretary is satisfied
      that all defaults with respect to the project have been cured,
      and that the project will, in order to fulfill the purposes of
      this chapter, thereafter be operated in accordance with the terms
      of such contract; or (ii) after the termination of the obligation
      to make annual contributions available unless there are any
      obligations or covenants of the public housing agency to the
      Secretary which are then in default. Any prior conveyances and
      reconveyances or deliveries and redeliveries of possession shall
      not exhaust the right to require a conveyance or delivery of
      possession of the project to the Secretary pursuant to
      subparagraph (1) upon the subsequent occurrence of a substantial
      default.

    Whenever such a contract for annual contributions includes
    provisions which the Secretary in such contract determines are in
    accordance with this subsection, and the portion of the annual
    contribution payable for debt service requirements pursuant to such
    contract has been pledged by the public housing agency as security
    for the payment of the principal and interest on any of its
    obligations, the Secretary (notwithstanding any other provisions of
    this chapter) shall continue to make such annual contributions
    available for the project so long as any of such obligations remain
    outstanding, and may covenant in such contract that in any event
    such annual contributions shall in each year be at least equal to
    an amount which, together with such income or other funds as are
    actually available from the project for the purpose at the time
    such annual contribution is made, will suffice for the payment of
    all installments, falling due within the next succeeding twelve
    months, of principal and interest on the obligations for which the
    annual contributions provided for in the contract shall have been
    pledged as security. In no case shall such annual contributions be
    in excess of the maximum sum specified in the contract involved,
    nor for longer than the remainder of the maximum period fixed by
    the contract.
    (h) New construction contracts
      On or after October 1, 1983, the Secretary may enter into a
    contract involving new construction only if the public housing
    agency demonstrates to the satisfaction of the Secretary that the
    cost of new construction in the neighborhood where the public
    housing agency determines the housing is needed is less than the
    cost of acquisition or acquisition and rehabilitation in such
    neighborhood, including any reserve fund under subsection (i) of
    this section, would be.
    (i) Reserve fund; major repairs
      The Secretary may, upon application by a public housing agency in
    connection with the acquisition of housing for use as public
    housing, establish and set aside a reserve fund in an amount not to
    exceed 30 per centum of the acquisition cost which shall be
    available for use for major repairs to such housing.
    (j) Performance indicators for public housing agencies
      (1) The Secretary shall develop and publish in the Federal
    Register indicators to assess the management performance of public
    housing agencies and resident management corporations. The
    indicators shall be established by rule under section 553 of title
    5. Such indicators shall enable the Secretary to evaluate the
    performance of public housing agencies and resident management
    corporations in all major areas of management operations. The
    Secretary shall, in particular, use the following indicators for
    public housing agencies, to the extent practicable:
        (A) The number and percentage of vacancies within an agency's
      inventory, including the progress that an agency has made within
      the previous 3 years to reduce such vacancies.
        (B) The amount and percentage of funds provided to the public
      housing agency from the Capital Fund under section 1437g(d) of
      this title which remain unobligated by the public housing agency
      after 3 years.
        (C) The percentage of rents uncollected.
        (D) The utility consumption (with appropriate adjustments to
      reflect different regions and unit sizes).
        (E) The average period of time that an agency requires to
      repair and turn-around vacant units.
        (F) The proportion of maintenance work orders outstanding,
      including any progress that an agency has made during the
      preceding 3 years to reduce the period of time required to
      complete maintenance work orders.
        (G) The percentage of units that an agency fails to inspect to
      ascertain maintenance or modernization needs within such period
      of time as the Secretary deems appropriate (with appropriate
      adjustments, if any, for large and small agencies).
        (H) The extent to which the public housing agency - 
          (i) coordinates, promotes, or provides effective programs and
        activities to promote the economic self-sufficiency of public
        housing residents; and
          (ii) provides public housing residents with opportunities for
        involvement in the administration of the public housing.

        (I) (!3) The extent to which the public housing agency - 

          (i) implements effective screening and eviction policies and
        other anticrime strategies; and
          (ii) coordinates with local government officials and
        residents in the project and implementation of such strategies.

        (J) The extent to which the public housing agency is providing
      acceptable basic housing conditions.
        (K) Any other factors as the Secretary deems appropriate which
      shall not exceed the seven factors in the statute, plus an
      additional five.
        (I) (!4) The Secretary shall:

          (1) administer the system of evaluating public housing
        agencies flexibly to ensure that such agencies are not
        penalized as result of circumstances beyond their control;
          (2) reflect in the weights assigned to the various indicators
        the differences in the difficulty of managing individual
        projects that result from their physical condition and their
        neighborhood environment; and
          (3) determine a public housing agency's status as "troubled
        with respect to the program under section 1437l (!5) of this
        title" based upon factors solely related to its ability to
        carry out that program.


      (2)(A)(i) The Secretary shall, under the rulemaking procedures
    under section 553 of title 5, establish procedures for designating
    troubled public housing agencies, which procedures shall include
    identification of serious and substantial failure to perform as
    measured by the performance indicators specified under paragraph
    (1) and such other factors as the Secretary may deem to be
    appropriate. Such procedures shall provide that an agency that
    fails on a widespread basis to provide acceptable basic housing
    conditions for its residents shall be designated as a troubled
    public housing agency. The Secretary may use a simplified set of
    indicators for public housing agencies with less than 250 public
    housing units. The Secretary shall also designate, by rule under
    section 553 of title 5, agencies that are troubled with respect to
    the program for assistance from the Capital Fund under section
    1437g(d) of this title.
      (ii) The Secretary may also, in consultation with national
    organizations representing public housing agencies and public
    officials (as the Secretary determines appropriate), identify and
    commend public housing agencies that meet the performance standards
    established under paragraph (1) in an exemplary manner.
      (iii) The Secretary shall establish procedures for public housing
    agencies to appeal designation as a troubled agency (including
    designation as a troubled agency for purposes of the program for
    assistance from the Capital Fund under section 1437g(d) of this
    title), to petition for removal of such designation, and to appeal
    any refusal to remove such designation.
      (B)(i) Upon designating a public housing agency with more than
    250 units as troubled pursuant to subparagraph (A) and determining
    that an assessment under this subparagraph will not duplicate any
    comparable and recent review, the Secretary shall provide for an on-
    site, independent assessment of the management of the agency.
      (ii) To the extent the Secretary deems appropriate (taking into
    account an agency's performance under the indicators specified
    under paragraph (1)), the assessment team shall also consider
    issues relating to the agency's resident population and physical
    inventory, including the extent to which (I) the agency's
    comprehensive plan prepared pursuant to section 1437l (!5) of this
    title adequately and appropriately addresses the rehabilitation
    needs of the agency's inventory, (II) residents of the agency are
    involved in and informed of significant management decisions, and
    (III) any projects in the agency's inventory are severely
    distressed and eligible for assistance pursuant to section 1437v of
    this title.
      (iii) An independent assessment under this subparagraph shall be
    carried out by a team of knowledgeable individuals selected by the
    Secretary (referred to in this section as the "assessment team")
    with expertise in public housing and real estate management. In
    conducting an assessment, the assessment team shall consult with
    the residents and with public and private entities in the
    jurisdiction in which the public housing is located. The assessment
    team shall provide to the Secretary and the public housing agency a
    written report, which shall contain, at a minimum, recommendations
    for such management improvements as are necessary to eliminate or
    substantially remedy existing deficiencies.
      (C) The Secretary shall seek to enter into an agreement with each
    troubled public housing agency, after reviewing the report
    submitted pursuant to subparagraph (B) (if applicable) and
    consulting with the agency's assessment team. Such agreement shall
    set forth - 
        (i) targets for improving performance as measured by the
      performance indicators specified under paragraph (1) and other
      requirements within a specified period of time;
        (ii) strategies for meeting such targets, including a
      description of the technical assistance that the Secretary will
      make available to the agency; and
        (iii) incentives or sanctions for effective implementation of
      such strategies, which may include any constraints on the use of
      funds that the Secretary determines are appropriate.

    To the extent the Secretary deems appropriate (taking into account
    an agency's performance under the indicators specified under
    paragraph (1)), such agreement shall also set forth a plan for
    enhancing resident involvement in the management of the public
    housing agency. The Secretary and the public housing agency shall,
    to the maximum extent practicable, seek the assistance of local
    public and private entities in carrying out the agreement.
      (D) The Secretary shall apply the provisions of this paragraph to
    resident management corporations as well as public housing
    agencies.
      (3)(A) Notwithstanding any other provision of law or of any
    contract for contributions, upon the occurrence of events or
    conditions that constitute a substantial default by a public
    housing agency with respect to the covenants or conditions to which
    the public housing agency is subject or an agreement entered into
    under paragraph (2), the Secretary may - 
        (i) solicit competitive proposals from other public housing
      agencies and private housing management agents which (I) in the
      discretion of the Secretary, may be selected by existing public
      housing residents through administrative procedures established
      by the Secretary, and (II) if appropriate, shall provide for such
      agents to manage all, or part, of the housing administered by the
      public housing agency or all or part of the other programs of the
      agency;
        (ii) petition for the appointment of a receiver (which may be
      another public housing agency or a private management
      corporation) of the public housing agency to any district court
      of the United States or to any court of the State in which the
      real property of the public housing agency is situated, that is
      authorized to appoint a receiver for the purposes and having the
      powers prescribed in this subsection;
        (iii) solicit competitive proposals from other public housing
      agencies and private entities with experience in construction
      management in the eventuality that such agencies or firms may be
      needed to oversee implementation of assistance made available
      from the Capital Fund under section 1437g(d) of this title for
      the housing; and (!6)

        (iv) take possession of all or part of the public housing
      agency, including all or part of any project or program of the
      agency, including any project or program under any other
      provision of this subchapter; and
        (v) require the agency to make other arrangements acceptable to
      the Secretary and in the best interests of the public housing
      residents and families assisted under section 1437f of this title
      for managing all, or part, of the public housing administered by
      the agency or of the programs of the agency.

    Residents of a public housing agency designated as troubled
    pursuant to paragraph (2)(A) may petition the Secretary in writing
    to take 1 or more of the actions referred to in this subparagraph.
    The Secretary shall respond to such petitions in a timely manner
    with a written description of the actions, if any, the Secretary
    plans to take and, where applicable, the reasons why such actions
    differ from the course proposed by the residents.
      (B)(i) If a public housing agency is identified as troubled under
    this subsection, the Secretary shall notify the agency of the
    troubled status of the agency.
      (ii)(I) Upon the expiration of the 1-year period beginning on the
    later of the date on which the agency receives initial notice from
    the Secretary of the troubled status of the agency under clause (i)
    and October 21, 1998, the agency shall improve its performance, as
    measured by the performance indicators established pursuant to
    paragraph (1), by at least 50 percent of the difference between the
    most recent performance measurement and the measurement necessary
    to remove that agency's designation as troubled.
      (II) Upon the expiration of the 2-year period beginning on the
    later of the date on which the agency receives initial notice from
    the Secretary of the troubled status of the agency under clause (i)
    and October 21, 1998, the agency shall improve its performance, as
    measured by the performance indicators established pursuant to
    paragraph (1), such that the agency is no longer designated as
    troubled.
      (III) In the event that a public housing agency designated as
    troubled under this subsection fails to comply with the
    requirements set forth in subclause (I) or (II), the Secretary
    shall - 
        (aa) in the case of a troubled public housing agency with 1,250
      or more units, petition for the appointment of a receiver
      pursuant to subparagraph (A)(ii); or
        (bb) in the case of a troubled public housing agency with fewer
      than 1,250 units, either petition for the appointment of a
      receiver pursuant to subparagraph (A)(ii), or take possession of
      the public housing agency (including all or part of any project
      or program of the agency) pursuant to subparagraph (A)(iv) and
      appoint, on a competitive or noncompetitive basis, an individual
      or entity as an administrative receiver to assume the
      responsibilities of the Secretary for the administration of all
      or part of the public housing agency (including all or part of
      any project or program of the agency).

    This subparagraph shall not be construed to limit the courses of
    action available to the Secretary under subparagraph (A).
      (IV) During the period between the date on which a petition is
    filed under subclause (III)(aa) and the date on which a receiver
    assumes responsibility for the management of the public housing
    agency under such subclause, the Secretary may take possession of
    the public housing agency (including all or part of any project or
    program of the agency) pursuant to subparagraph (A)(iv) and may
    appoint, on a competitive or noncompetitive basis, an individual or
    entity as an administrative receiver to assume the responsibilities
    of the Secretary for the administration of all or part of the
    public housing agency (including all or part of any project or
    program of the agency).
      (C) If a receiver is appointed pursuant to subparagraph (A)(ii),
    in addition to the powers accorded by the court appointing the
    receiver, the receiver - 
        (i) may abrogate any contract to which the United States or an
      agency of the United States is not a party that, in the
      receiver's written determination (which shall include the basis
      for such determination), substantially impedes correction of the
      substantial default, but only after the receiver determines that
      reasonable efforts to renegotiate such contract have failed;
        (ii) may demolish and dispose of all or part of the assets of
      the public housing agency (including all or part of any project
      of the agency) in accordance with section 1437p of this title,
      including disposition by transfer of properties to resident-
      supported nonprofit entities;
        (iii) if determined to be appropriate by the Secretary, may
      seek the establishment, as permitted by applicable State and
      local law, of 1 or more new public housing agencies;
        (iv) if determined to be appropriate by the Secretary, may seek
      consolidation of all or part of the agency (including all or part
      of any project or program of the agency), as permitted by
      applicable State and local laws, into other well-managed public
      housing agencies with the consent of such well-managed agencies;
      and
        (v) shall not be required to comply with any State or local law
      relating to civil service requirements, employee rights (except
      civil rights), procurement, or financial or administrative
      controls that, in the receiver's written determination (which
      shall include the basis for such determination), substantially
      impedes correction of the substantial default.

      (D)(i) If, pursuant to subparagraph (A)(iv), the Secretary takes
    possession of all or part of the public housing agency, including
    all or part of any project or program of the agency, the Secretary -
     
        (I) may abrogate any contract to which the United States or an
      agency of the United States is not a party that, in the written
      determination of the Secretary (which shall include the basis for
      such determination), substantially impedes correction of the
      substantial default, but only after the Secretary determines that
      reasonable efforts to renegotiate such contract have failed;
        (II) may demolish and dispose of all or part of the assets of
      the public housing agency (including all or part of any project
      of the agency) in accordance with section 1437p of this title,
      including disposition by transfer of properties to resident-
      supported nonprofit entities;
        (III) may seek the establishment, as permitted by applicable
      State and local law, of 1 or more new public housing agencies;
        (IV) may seek consolidation of all or part of the agency
      (including all or part of any project or program of the agency),
      as permitted by applicable State and local laws, into other well-
      managed public housing agencies with the consent of such well-
      managed agencies;
        (V) shall not be required to comply with any State or local law
      relating to civil service requirements, employee rights (except
      civil rights), procurement, or financial or administrative
      controls that, in the Secretary's written determination (which
      shall include the basis for such determination), substantially
      impedes correction of the substantial default; and
        (VI) shall, without any action by a district court of the
      United States, have such additional authority as a district court
      of the United States would have the authority to confer upon a
      receiver to achieve the purposes of the receivership.

      (ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary
    appoints an administrative receiver to assume the responsibilities
    of the Secretary for the administration of all or part of the
    public housing agency (including all or part of any project or
    program of the agency), the Secretary may delegate to the
    administrative receiver any or all of the powers given the
    Secretary by this subparagraph, as the Secretary determines to be
    appropriate and subject to clause (iii).
      (iii) An administrative receiver may not take an action described
    in subclause (III) or (IV) of clause (i) unless the Secretary first
    approves an application by the administrative receiver to authorize
    such action.
      (E) The Secretary may make available to receivers and other
    entities selected or appointed pursuant to this paragraph such
    assistance as the Secretary determines in the discretion of the
    Secretary is necessary and available to remedy the substantial
    deterioration of living conditions in individual public housing
    projects or other related emergencies that endanger the health,
    safety, and welfare of public housing residents or families
    assisted under section 1437f of this title. A decision made by the
    Secretary under this paragraph shall not be subject to review in
    any court of the United States, or in any court of any State,
    territory, or possession of the United States.
      (F) In any proceeding under subparagraph (A)(ii), upon a
    determination that a substantial default has occurred and without
    regard to the availability of alternative remedies, the court shall
    appoint a receiver to conduct the affairs of all or part of the
    public housing agency in a manner consistent with this chapter and
    in accordance with such further terms and conditions as the court
    may provide. The receiver appointed may be another public housing
    agency, a private management corporation, or any other person or
    appropriate entity. The court shall have power to grant appropriate
    temporary or preliminary relief pending final disposition of the
    petition by the Secretary.
      (G) The appointment of a receiver pursuant to this paragraph may
    be terminated, upon the petition of any party, when the court
    determines that all defaults have been cured or the public housing
    agency is capable again of discharging its duties.
      (H) If the Secretary (or an administrative receiver appointed by
    the Secretary) takes possession of a public housing agency
    (including all or part of any project or program of the agency), or
    if a receiver is appointed by a court, the Secretary or receiver
    shall be deemed to be acting not in the official capacity of that
    person or entity, but rather in the capacity of the public housing
    agency, and any liability incurred, regardless of whether the
    incident giving rise to that liability occurred while the Secretary
    or receiver was in possession of all or part of the public housing
    agency (including all or part of any project or program of the
    agency), shall be the liability of the public housing agency.
      (4) Sanctions for improper use of amounts. - 
        (A) In general. - In addition to any other actions authorized
      under this chapter, if the Secretary finds that a public housing
      agency receiving assistance amounts under section 1437g of this
      title for public housing has failed to comply substantially with
      any provision of this chapter relating to the public housing
      program, the Secretary may - 
          (i) terminate assistance payments under this (!7) section
        1437g of this title to the agency;

          (ii) withhold from the agency amounts from the total
        allocations for the agency pursuant to section 1437g of this
        title;
          (iii) reduce the amount of future assistance payments under
        section 1437g of this title to the agency by an amount equal to
        the amount of such payments that were not expended in
        accordance with this chapter;
          (iv) limit the availability of assistance amounts provided to
        the agency under section 1437g of this title to programs,
        projects, or activities not affected by such failure to comply;
          (v) withhold from the agency amounts allocated for the agency
        under section 1437f of this title; or
          (vi) order other corrective action with respect to the
        agency.

        (B) Termination of compliance action. - If the Secretary takes
      action under subparagraph (A) with respect to a public housing
      agency, the Secretary shall - 
          (i) in the case of action under subparagraph (A)(i), resume
        payments of assistance amounts under section 1437g of this
        title to the agency in the full amount of the total allocations
        under section 1437g of this title for the agency at the time
        that the Secretary first determines that the agency will comply
        with the provisions of this chapter relating to the public
        housing program;
          (ii) in the case of action under clause (ii) or (v) of
        subparagraph (A), make withheld amounts available as the
        Secretary considers appropriate to ensure that the agency
        complies with the provisions of this chapter relating to such
        program;
          (iii) in the case of action under subparagraph (A)(iv),
        release such restrictions at the time that the Secretary first
        determines that the agency will comply with the provisions of
        this chapter relating to such program; or
          (iv) in the case of action under subparagraph (vi), cease
        such action at the time that the Secretary first determines
        that the agency will comply with the provisions of this chapter
        relating to such program.

      (5) The Secretary shall submit to the Congress annually, as a
    part of the report of the Secretary under section 3536 of this
    title, a report that - 
        (A) identifies the public housing agencies that have been
      designated as troubled under paragraph (2);
        (B) describes the grounds on which such public housing agencies
      were designated as troubled and continue to be so designated;
        (C) describes the agreements that have been entered into with
      such agencies under such paragraph;
        (D) describes the status of progress under such agreements;
        (E) describes any action that has been taken in accordance with
      paragraph (3), including an accounting of the authorized funds
      that have been expended to support such actions; and
        (F) describes the status of any public housing agency
      designated as troubled with respect to the program for assistance
      from the Capital Fund under section 1437g(d) of this title and
      specifies the amount of assistance the agency received under such
      program.

      (6)(A) To the extent that the Secretary determines such action to
    be necessary in order to ensure the accuracy of any certification
    made under this section, the Secretary shall require an independent
    auditor to review documentation or other information maintained by
    a public housing agency pursuant to this section to substantiate
    each certification submitted by the agency or corporation relating
    to the performance of that agency or corporation.
      (B) The Secretary may withhold, from assistance otherwise payable
    to the agency or corporation under section 1437g of this title,
    amounts sufficient to pay for the reasonable costs of any review
    under this paragraph.
      (7) The Secretary shall apply the provisions of this subsection
    to resident management corporations in the same manner as applied
    to public housing agencies.
    (k) Administrative grievance procedure regulations: grounds of
      adverse action, hearing, examination of documents,
      representation, evidence, decision; judicial hearing; eviction
      and termination procedures
      The Secretary shall by regulation require each public housing
    agency receiving assistance under this chapter to establish and
    implement an administrative grievance procedure under which tenants
    will - 
        (1) be advised of the specific grounds of any proposed adverse
      public housing agency action;
        (2) have an opportunity for a hearing before an impartial party
      upon timely request within any period applicable under subsection
      (l) of this section;
        (3) have an opportunity to examine any documents or records or
      regulations related to the proposed action;
        (4) be entitled to be represented by another person of their
      choice at any hearing;
        (5) be entitled to ask questions of witnesses and have others
      make statements on their behalf; and
        (6) be entitled to receive a written decision by the public
      housing agency on the proposed action.

    For any grievance concerning an eviction or termination of tenancy
    that involves any activity that threatens the health, safety, or
    right to peaceful enjoyment of the premises of other tenants or
    employees of the public housing agency or any violent or drug-
    related criminal activity on or off such premises, or any activity
    resulting in a felony conviction, the agency may (A) establish an
    expedited grievance procedure as the Secretary shall provide by
    rule under section 553 of title 5, or (B) exclude from its
    grievance procedure any such grievance, in any jurisdiction which
    requires that prior to eviction, a tenant be given a hearing in
    court which the Secretary determines provides the basic elements of
    due process (which the Secretary shall establish by rule under
    section 553 of title 5). Such elements of due process shall not
    include a requirement that the tenant be provided an opportunity to
    examine relevant documents within the possession of the public
    housing agency. The agency shall provide to the tenant a reasonable
    opportunity, prior to hearing or trial, to examine any relevant
    documents, records, or regulations directly related to the eviction
    or termination.
    (l) Leases; terms and conditions; maintenance; termination
      Each public housing agency shall utilize leases which - 
        (1) have a term of 12 months and shall be automatically renewed
      for all purposes except for noncompliance with the requirements
      under section 1437j(c) of this title (relating to community
      service requirements); except that nothing in this subchapter
      shall prevent a resident from seeking timely redress in court for
      failure to renew based on such noncompliance;
        (2) do not contain unreasonable terms and conditions;
        (3) obligate the public housing agency to maintain the project
      in a decent, safe, and sanitary condition;
        (4) require the public housing agency to give adequate written
      notice of termination of the lease which shall not be less than -
      
          (A) a reasonable period of time, but not to exceed 30 days - 
            (i) if the health or safety of other tenants, public
          housing agency employees, or persons residing in the
          immediate vicinity of the premises is threatened; or
            (ii) in the event of any drug-related or violent criminal
          activity or any felony conviction;

          (B) 14 days in the case of nonpayment of rent; and
          (C) 30 days in any other case, except that if a State or
        local law provides for a shorter period of time, such shorter
        period shall apply;

        (5) require that the public housing agency may not terminate
      the tenancy except for serious or repeated violation of the terms
      or conditions of the lease or for other good cause, and that an
      incident or incidents of actual or threatened domestic violence,
      dating violence, or stalking will not be construed as a serious
      or repeated violation of the lease by the victim or threatened
      victim of that violence and will not be good cause for
      terminating the tenancy or occupancy rights of the victim of such
      violence;
        (6) provide that any criminal activity that threatens the
      health, safety, or right to peaceful enjoyment of the premises by
      other tenants or any drug-related criminal activity on or off
      such premises, engaged in by a public housing tenant, any member
      of the tenant's household, or any guest or other person under the
      tenant's control, shall be cause for termination of tenancy;
      except that: (A) criminal activity directly relating to domestic
      violence, dating violence, or stalking, engaged in by a member of
      a tenant's household or any guest or other person under the
      tenant's control, shall not be cause for termination of the
      tenancy or occupancy rights, if the tenant or immediate member of
      the tenant's family is a victim of that domestic violence, dating
      violence, or stalking; (B) notwithstanding subparagraph (A) or
      any Federal, State, or local law to the contrary, a public
      housing agency may bifurcate a lease under this section, or
      remove a household member from a lease under this section,
      without regard to whether a household member is a signatory to a
      lease, in order to evict, remove, terminate occupancy rights, or
      terminate assistance to any individual who is a tenant or lawful
      occupant and who engages in criminal acts of physical violence
      against family members or others, without evicting, removing,
      terminating assistance to, or otherwise penalizing the victim of
      such violence who is also a tenant or lawful occupant and such
      eviction, removal, termination of occupancy rights, or
      termination of assistance shall be effected in accordance with
      the procedures prescribed by Federal, State, and local law for
      the termination of leases or assistance under the relevant
      program of HUD-assisted housing; (C) nothing in subparagraph (A)
      may be construed to limit the authority of a public housing
      agency, when notified, to honor court orders addressing rights of
      access to or control of the property, including civil protection
      orders issued to protect the victim and issued to address the
      distribution or possession of property among the household
      members in cases where a family breaks up; (D) nothing in
      subparagraph (A) limits any otherwise available authority of a
      public housing agency to evict a tenant for any violation of a
      lease not premised on the act or acts of violence in question
      against the tenant or a member of the tenant's household,
      provided that the public housing agency does not subject an
      individual who is or has been a victim of domestic violence,
      dating violence, or stalking to a more demanding standard than
      other tenants in determining whether to evict or terminate; (E)
      nothing in subparagraph (A) may be construed to limit the
      authority of a public housing agency to terminate the tenancy of
      any tenant if the public housing agency can demonstrate an actual
      and imminent threat to other tenants or those employed at or
      providing service to the property if that tenant's tenancy is not
      terminated; and (F) nothing in this section shall be construed to
      supersede any provision of any Federal, State, or local law that
      provides greater protection than this section for victims of
      domestic violence, dating violence, or stalking.; (!8)

        (7) specify that with respect to any notice of eviction or
      termination, notwithstanding any State law, a public housing
      tenant shall be informed of the opportunity, prior to any hearing
      or trial, to examine any relevant documents, records, or
      regulations directly related to the eviction or termination;
        (7) (!9) provide that any occupancy in violation of section
      13661(b) of this title (relating to ineligibility of illegal drug
      users and alcohol abusers) or the furnishing of any false or
      misleading information pursuant to section 13662 of this title
      (relating to termination of tenancy and assistance for illegal
      drug users and alcohol abusers) shall be cause for termination of
      tenancy; (!10)


        (9) provide that it shall be cause for immediate termination of
      the tenancy of a public housing tenant if such tenant - 
          (A) is fleeing to avoid prosecution, or custody or
        confinement after conviction, under the laws of the place from
        which the individual flees, for a crime, or attempt to commit a
        crime, which is a felony under the laws of the place from which
        the individual flees, or which, in the case of the State of New
        Jersey, is a high misdemeanor under the laws of such State; or
          (2) (!11) is violating a condition of probation or parole
        imposed under Federal or State law.


    For purposes of paragraph (5),(!12) 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 802 of title 21).

    (m) Reporting requirements; limitation
      The Secretary shall not impose any unnecessarily duplicative or
    burdensome reporting requirements on tenants or public housing
    agencies assisted under this chapter.
    (n) Notice to post office regarding eviction for criminal activity
      When a public housing agency evicts an individual or family from
    a dwelling unit for engaging in criminal activity, including drug-
    related criminal activity, the public housing agency shall notify
    the local post office serving that dwelling unit that such
    individual or family is no longer residing in the dwelling unit.
    (o) Public housing assistance for foster care children
      In providing housing in low-income housing projects, each public
    housing agency may coordinate with any local public agencies
    involved in providing for the welfare of children to make available
    dwelling units to - 
        (1) families identified by the agencies as having a lack of
      adequate housing that is a primary factor - 
          (A) in the imminent placement of a child in foster care; or
          (B) in preventing the discharge of a child from foster care
        and reunification with his or her family; and

        (2) youth, upon discharge from foster care, in cases in which
      return to the family or extended family or adoption is not
      available.
    (p) Repealed. Pub. L. 105-276, title V, Sec. 519(b), Oct. 21, 1998,
      112 Stat. 2561
    (q) Availability of records
      (1) In general
        (A) Provision of information
          Notwithstanding any other provision of law, except as
        provided in subparagraph (C), the National Crime Information
        Center, police departments, and other law enforcement agencies
        shall, upon request, provide information to public housing
        agencies regarding the criminal conviction records of adult
        applicants for, or tenants of, covered housing assistance for
        purposes of applicant screening, lease enforcement, and
        eviction.
        (B) Requests by owners of project-based section 8 [42 U.S.C.
          1437f] housing
          A public housing agency may make a request under subparagraph
        (A) for information regarding applicants for, or tenants of,
        housing that is provided project-based assistance under section
        1437f of this title only if the housing is located within the
        jurisdiction of the agency and the owner of such housing has
        requested that the agency obtain such information on behalf of
        the owner. Upon such a request by the owner, the agency shall
        make a request under subparagraph (A) for the information. The
        agency may not make such information available to the owner but
        shall perform determinations for the owner regarding screening,
        lease enforcement, and eviction based on criteria supplied by
        the owner.
        (C) Exception
          A law enforcement agency described in subparagraph (A) shall
        provide information under this paragraph relating to any
        criminal conviction of a juvenile only to the extent that the
        release of such information is authorized under the law of the
        applicable State, tribe, or locality.
      (2) Opportunity to dispute
        Before an adverse action is taken with regard to assistance
      under this subchapter on the basis of a criminal record, the
      public housing agency shall provide the tenant or applicant with
      a copy of the criminal record and an opportunity to dispute the
      accuracy and relevance of that record.
      (3) Fees
        A public housing agency may be charged a reasonable fee for
      information provided under paragraph (1). In the case of a public
      housing agency obtaining information pursuant to paragraph (1)(B)
      for another owner of housing, the agency may pass such fee on to
      the owner initiating the request and may charge additional
      reasonable fees for making the request on behalf of the owner and
      taking other actions for owners under this subsection.
      (4) Records management
        Each public housing agency shall establish and implement a
      system of records management that ensures that any criminal
      record received by the public housing agency is - 
          (A) maintained confidentially;
          (B) not misused or improperly disseminated; and
          (C) destroyed, once the purpose for which the record was
        requested has been accomplished.
      (5) Confidentiality
        A public housing agency receiving information under this
      subsection may use such information only for the purposes
      provided in this subsection and such information may not be
      disclosed to any person who is not an officer, employee, or
      authorized representative of the agency and who has a job-related
      need to have access to the information in connection with
      admission of applicants, eviction of tenants, or termination of
      assistance. For judicial eviction proceedings, disclosures may be
      made to the extent necessary. The Secretary shall, by regulation,
      establish procedures necessary to ensure that information
      provided under this subsection to a public housing agency is
      used, and confidentiality of such information is maintained, as
      required under this subsection. The Secretary shall establish
      standards for confidentiality of information obtained under this
      subsection by public housing agencies on behalf of owners.
      (6) Penalty
        Any person who knowingly and willfully requests or obtains any
      information concerning an applicant for, or tenant of, covered
      housing assistance pursuant to the authority under this
      subsection under false pretenses, or any person who knowingly and
      willfully discloses any such information in any manner to any
      individual not entitled under any law to receive it, shall be
      guilty of a misdemeanor and fined not more than $5,000. The term
      "person" as used in this paragraph include (!13) an officer,
      employee, or authorized representative of any public housing
      agency.

      (7) Civil action
        Any applicant for, or tenant of, covered housing assistance
      affected by (A) a negligent or knowing disclosure of information
      referred to in this subsection about such person by an officer,
      employee, or authorized representative of any public housing
      agency, which disclosure is not authorized by this subsection, or
      (B) any other negligent or knowing action that is inconsistent
      with this subsection, may bring a civil action for damages and
      such other relief as may be appropriate against any public
      housing agency responsible for such unauthorized action. The
      district court of the United States in the district in which the
      affected applicant or tenant resides, in which such unauthorized
      action occurred, or in which the officer, employee, or
      representative alleged to be responsible for any such
      unauthorized action resides, shall have jurisdiction in such
      matters. Appropriate relief that may be ordered by such district
      courts shall include reasonable attorney's fees and other
      litigation costs.
      (8) Definitions
        For purposes of this subsection, the following definitions
      shall apply:
        (A) Adult
          The term "adult" means a person who is 18 years of age or
        older, or who has been convicted of a crime as an adult under
        any Federal, State, or tribal law.
        (B) Covered housing assistance
          The term "covered housing assistance" means - 
            (i) a dwelling unit in public housing;
            (ii) a dwelling unit in housing that is provided project-
          based assistance under section 1437f of this title,
          including new construction and substantial rehabilitation
          projects; and
            (iii) tenant-based assistance under section 1437f of this
          title.
        (C) Owner
          The term "owner" means, with respect to covered housing
        assistance described in subparagraph (B)(ii), the entity or
        private person (including a cooperative or public housing
        agency) that has the legal right to lease or sublease dwelling
        units in the housing assisted.
    (r) Site-based waiting lists
      (1) Authority
        A public housing agency may establish procedures for
      maintaining waiting lists for admissions to public housing
      projects of the agency, which may include (notwithstanding any
      other law, regulation, handbook, or notice to the contrary) a
      system of site-based waiting lists under which applicants may
      apply directly at or otherwise designate the project or projects
      in which they seek to reside. All such procedures shall comply
      with all provisions of title VI of the Civil Rights Act of 1964
      [42 U.S.C. 2000d et seq.], the Fair Housing Act [42 U.S.C. 3601
      et seq.], and other applicable civil rights laws.
      (2) Notice
        Any system described in paragraph (1) shall provide for the
      full disclosure by the public housing agency to each applicant of
      any option available to the applicant in the selection of the
      project in which to reside.
    (s) Authority to require access to criminal records
      A public housing agency may require, as a condition of providing
    admission to the public housing program or assisted housing program
    under the jurisdiction of the public housing agency, that each
    adult member of the household provide a signed, written
    authorization for the public housing agency to obtain records
    described in subsection (q)(1) of this section regarding such
    member of the household from the National Crime Information Center,
    police departments, and other law enforcement agencies.
    (t) Obtaining information from drug abuse treatment facilities
      (1) Authority
        Notwithstanding any other provision of law other than the
      Public Health Service Act (42 U.S.C. 201 et seq.), a public
      housing agency may require each person who applies for admission
      to public housing to sign one or more forms of written consent
      authorizing the agency to receive information from a drug abuse
      treatment facility that is solely related to whether the
      applicant is currently engaging in the illegal use of a
      controlled substance.
      (2) Confidentiality of applicant's records
        (A) Limitation on information requested
          In a form of written consent, a public housing agency may
        request only whether the drug abuse treatment facility has
        reasonable cause to believe that the applicant is currently
        engaging in the illegal use of a controlled substance.
        (B) Records management
          Each public housing agency that receives information under
        this subsection from a drug abuse treatment facility shall
        establish and implement a system of records management that
        ensures that any information received by the public housing
        agency under this subsection - 
            (i) is maintained confidentially in accordance with section
          543 of the Public Health Service Act [42 U.S.C. 290dd-2];
            (ii) is not misused or improperly disseminated; and
            (iii) is destroyed, as applicable - 
              (I) not later than 5 business days after the date on
            which the public housing agency gives final approval for an
            application for admission; or
              (II) if the public housing agency denies the application
            for admission, in a timely manner after the date on which
            the statute of limitations for the commencement of a civil
            action from the applicant based upon that denial of
            admission has expired.
        (C) Expiration of written consent
          In addition to the requirements of subparagraph (B), an
        applicant's signed written consent shall expire automatically
        after the public housing agency has made a final decision to
        either approve or deny the applicant's application for
        admittance to public housing.
      (3) Prohibition of discriminatory treatment of applicants
        (A) Forms signed
          A public housing agency may only require an applicant for
        admission to public housing to sign one or more forms of
        written consent under this subsection if the public housing
        agency requires all such applicants to sign the same form or
        forms of written consent.
        (B) Circumstances of inquiry
          A public housing agency may only make an inquiry to a drug
        abuse treatment facility under this subsection if - 
            (i) the public housing agency makes the same inquiry with
          respect to all applicants; or
            (ii) the public housing agency only makes the same inquiry
          with respect to each and every applicant with respect to whom
          - 
              (I) the public housing agency receives information from
            the criminal record of the applicant that indicates
            evidence of a prior arrest or conviction; or
              (II) the public housing agency receives information from
            the records of prior tenancy of the applicant that
            demonstrates that the applicant - 
                (aa) engaged in the destruction of property;
                (bb) engaged in violent activity against another
              person; or
                (cc) interfered with the right of peaceful enjoyment of
              the premises of another tenant.
      (4) Fee permitted
        A drug abuse treatment facility may charge a public housing
      agency a reasonable fee for information provided under this
      subsection.
      (5) Disclosure permitted by treatment facilities
        A drug abuse treatment facility shall not be liable for damages
      based on any information required to be disclosed pursuant to
      this subsection if such disclosure is consistent with section 543
      of the Public Health Service Act (42 U.S.C. 290dd-2).
      (6) Option to not request information
        A public housing agency shall not be liable for damages based
      on its decision not to require each person who applies for
      admission to public housing to sign one or more forms of written
      consent authorizing the public housing agency to receive
      information from a drug abuse treatment facility under this
      subsection.
      (7) Definitions
        For purposes of this subsection, the following definitions
      shall apply:
        (A) Drug abuse treatment facility
          The term "drug abuse treatment facility" means an entity that
        - 
            (i) is - 
              (I) an identified unit within a general medical care
            facility; or
              (II) an entity other than a general medical care
            facility; and

            (ii) holds itself out as providing, and provides,
          diagnosis, treatment, or referral for treatment with respect
          to the illegal use of a controlled substance.
        (B) Controlled substance
          The term "controlled substance" has the meaning given the
        term in section 802 of title 21.
        (C) Currently engaging in the illegal use of a controlled
          substance
          The term "currently engaging in the illegal use of a
        controlled substance" means the illegal use of a controlled
        substance that occurred recently enough to justify a reasonable
        belief that an applicant's illegal use of a controlled
        substance is current or that continuing illegal use of a
        controlled substance by the applicant is a real and ongoing
        problem.
      (8) Effective date
        This subsection shall take effect on October 21, 1998, and
      without the necessity of guidance from, or any regulation issued
      by, the Secretary.
    (u) Certification and confidentiality
      (1) Certification
        (A) In general
          A public housing agency responding to subsection (l)(5) and
        (6) of this section may request that an individual certify via
        a HUD approved certification form that the individual is a
        victim of domestic violence, dating violence, or stalking, and
        that the incident or incidents in question are bona fide
        incidents of such actual or threatened abuse and meet the
        requirements set forth in the aforementioned paragraphs. Such
        certification shall include the name of the perpetrator. The
        individual shall provide such certification within 14 business
        days after the individual receives a request for such
        certification from the public housing agency.
        (B) Failure to provide certification
          If the individual does not provide the certification within
        14 business days after the individual has received a request in
        writing for such certification from the public housing agency,
        nothing in this subsection, or in paragraph (5) or (6) of
        subsection (l) of this section, may be construed to limit the
        authority of the public housing agency to evict any tenant or
        lawful occupant that commits violations of a lease. The public
        housing agency may extend the 14-day deadline at its
        discretion.
        (C) Contents
          An individual may satisfy the certification requirement of
        subparagraph (A) by - 
            (i) providing the requesting public housing agency with
          documentation signed by an employee, agent, or volunteer of a
          victim service provider, an attorney, or a medical
          professional, from whom the victim has sought assistance in
          addressing domestic violence, dating violence, or stalking,
          or the effects of the abuse, in which the professional
          attests under penalty of perjury (28 U.S.C. 1746) to the
          professional's belief that the incident or incidents in
          question are bona fide incidents of abuse, and the victim of
          domestic violence, dating violence, or stalking has signed or
          attested to the documentation; or
            (ii) producing a Federal, State, tribal, territorial, or
          local police or court record.
        (D) Limitation
          Nothing in this subsection shall be construed to require any
        public housing agency to demand that an individual produce
        official documentation or physical proof of the individual's
        status as a victim of domestic violence, dating violence, or
        stalking in order to receive any of the benefits provided in
        this section. At the public housing agency's discretion, a
        public housing agency may provide benefits to an individual
        based solely on the individual's statement or other
        corroborating evidence.
        (E) Preemption
          Nothing in this section shall be construed to supersede any
        provision of any Federal, State, or local law that provides
        greater protection than this section for victims of domestic
        violence, dating violence, or stalking.
        (F) Compliance not sufficient to constitute evidence of
          unreasonable act
          Compliance with this statute by a public housing agency, or
        assisted housing provider based on the certification specified
        in subparagraphs (A) and (B) of this subsection (!14) or based
        solely on the victim's statement or other corroborating
        evidence, as permitted by subparagraph (D) of this
        subsection,(!14) shall not alone be sufficient to constitute
        evidence of an unreasonable act or omission by a public housing
        agency or employee thereof. Nothing in this subparagraph shall
        be construed to limit liability for failure to comply with the
        requirements of subsection (l)(5) and (6) of this section.

      (2) Confidentiality
        (A) In general
          All information provided to any public housing agency
        pursuant to paragraph (1), including the fact that an
        individual is a victim of domestic violence, dating violence,
        or stalking, shall be retained in confidence by such public
        housing agency, and shall neither be entered into any shared
        database nor provided to any related entity, except to the
        extent that disclosure is - 
            (i) requested or consented to by the individual in writing;
            (ii) required for use in an eviction proceeding under
          subsection (l)(5) or (6) of this section; or
            (iii) otherwise required by applicable law.
        (B) Notification
          Public housing agencies must provide notice to tenants
        assisted under this section of their rights under this
        subsection and subsection (l)(5) and (6) of this section,
        including their right to confidentiality and the limits
        thereof.
      (3) Definitions
        For purposes of this subsection, subsection (c)(3) of this
      section, and subsection (l)(5) and (6) of this section - 
          (A) the term "domestic violence" has the same meaning given
        the term in section 13925 of this title;
          (B) the term "dating violence" has the same meaning given the
        term in section 13925 of this title;
          (C) the term "stalking" means - 
            (i)(I) to follow, pursue, or repeatedly commit acts with
          the intent to kill, injure, harass, or intimidate; or
            (II) to place under surveillance with the intent to kill,
          injure, harass, or intimidate another person; and
            (ii) in the course of, or as a result of, such following,
          pursuit, surveillance, or repeatedly committed acts, to place
          a person in reasonable fear of the death of, or serious
          bodily injury to, or to cause substantial emotional harm to -
          
              (I) that person;
              (II) a member of the immediate family of that person; or
              (III) the spouse or intimate partner of that person; and

          (D) the term "immediate family member" means, with respect to
        a person - 
            (i) a spouse, parent, brother or sister, or child of that
          person, or an individual to whom that person stands in loco
          parentis; or
            (ii) any other person living in the household of that
          person and related to that person by blood or marriage.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 6, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 659; amended Pub. L.
    96-153, title II, Sec. 206(a), Dec. 21, 1979, 93 Stat. 1108; Pub.
    L. 96-399, title II, Secs. 201(c), (e), 202(c), Oct. 8, 1980, 94
    Stat. 1625, 1629; Pub. L. 97-35, title III, Sec. 322(c), (d), Aug.
    13, 1981, 95 Stat. 402; Pub. L. 98-181, title II, Secs. 201(c),
    203(a), 204, 205, 214(b), Nov. 30, 1983, 97 Stat. 1177-1179, 1185;
    Pub. L. 98-479, title I, Sec. 102(b)(4), (5), title II, Sec.
    204(b)(1), Oct. 17, 1984, 98 Stat. 2221, 2233; Pub. L. 99-160,
    title I, Sec. 101, Nov. 25, 1985, 99 Stat. 910; Pub. L. 100-242,
    title I, Secs. 112(b)(2), 116, 170(d), Feb. 5, 1988, 101 Stat.
    1824, 1826, 1867; renumbered title I, Pub. L. 100-358, Sec. 5, June
    29, 1988, 102 Stat. 681; Pub. L. 100-628, title X, Secs. 1001(b),
    1014(a)(1), Nov. 7, 1988, 102 Stat. 3263, 3269; Pub. L. 100-690,
    title V, Sec. 5101, Nov. 18, 1988, 102 Stat. 4300; Pub. L. 101-144,
    title II, Nov. 9, 1989, 103 Stat. 846; Pub. L. 101-625, title V,
    Secs. 501, 502(a), (c)(1), 503(a), (b), 504-506, 572, Nov. 28,
    1990, 104 Stat. 4180, 4181, 4183-4185, 4236; Pub. L. 102-139, title
    II, Oct. 28, 1991, 105 Stat. 756, 757; Pub. L. 102-550, title I,
    Secs. 112, 113, title VI, Secs. 622(b), 625(a)(2), 682(a), Oct. 28,
    1992, 106 Stat. 3689, 3817, 3820, 3830; Pub. L. 103-233, title I,
    Sec. 101(c)(1), title III, Sec. 303, Apr. 11, 1994, 108 Stat. 357,
    370; Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2315;
    Pub. L. 104-99, title IV, Sec. 402(d)(1), (6)(A)(i), Jan. 26, 1996,
    110 Stat. 41, 42; Pub. L. 104-120, Sec. 9(a)-(c), Mar. 28, 1996,
    110 Stat. 836, 837; Pub. L. 104-193, title IX, Sec. 903(a)(1), Aug.
    22, 1996, 110 Stat. 2348; Pub. L. 104-330, title V, Sec. 501(b)(3),
    Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105-276, title V, Secs.
    511(d), 512(b), 514(a)(1), (2)(A), 519(b), 520(b), 521, 525, 529,
    530, 564, 565(a), 575, 576(d)(1), Oct. 21, 1998, 112 Stat. 2539,
    2543, 2547, 2561, 2563, 2568, 2569, 2627, 2628, 2634, 2640; Pub. L.
    109-162, title VI, Sec. 607, Jan. 5, 2006, 119 Stat. 3048; Pub. L.
    109-271, Sec. 5(f), Aug. 12, 2006, 120 Stat. 761.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsec. (b)(3)(A), is Pub. L. 101-625, Nov. 28, 1990, 104
    Stat. 4079. Title II of the Act, known as the "HOME Investments
    Partnership Act", is classified principally to subchapter II (Sec.
    12721 et seq.) of chapter 130 of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 12701 of this title and Tables.
      The Housing and Community Development Act of 1974, referred to in
    subsec. (b)(3)(B), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633,
    as amended. Title I of the Act is classified principally to chapter
    69 (Sec. 5301 et seq.) of this title. For complete classification
    of this Act to the Code, see Short Title note set out under section
    5301 of this title and Tables.
      The Housing and Community Development Act of 1992, referred to in
    subsec. (c)(5)(F), is Pub. L. 102-550, Oct. 28, 1992, 106 Stat.
    3672. Subtitle C of title VI of the Act is classified generally to
    subchapter I (Sec. 13601 et seq.) of chapter 135 of this title. For
    complete classification of this Act to the Code, see Short Title of
    1992 Amendment note set out under section 5301 of this title and
    Tables.
      Section 1437l of this title, referred to in subsec. (j)(1)(I)(3),
    (2)(B)(ii), was repealed by Pub. L. 105-276, title V, Sec. 522(a),
    Oct. 21, 1998, 112 Stat. 2564.
      Paragraph (5), referred to in the concluding provisions of
    subsec. (l), was redesignated as par. (6) by Pub. L. 105-276, title
    V, Sec. 512(b)(1), Oct. 21, 1998, 112 Stat. 2543.
      The Civil Rights Act of 1964, referred to in subsec. (r)(1), is
    Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of
    the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Fair Housing Act, referred to in subsec. (r)(1), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The civil rights laws, referred to in subsec. (r)(1), are
    classified generally to chapter 21 (Sec. 1981 et seq.) of this
    title.
      The Public Health Service Act, referred to in subsec. (t)(1), is
    act July 1, 1944, ch. 373, 58 Stat. 682, as amended, which is
    classified generally to chapter 6A (Sec. 201 et seq.) of this
    title. For complete classification of this Act to the Code, see
    Short Title note set out under section 201 of this title and
    Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 6 of act Sept. 1, 1937, ch. 896, 50 Stat. 890, as
    amended, enumerated financial provisions applicable to the
    Authority and was classified to section 1406 of this title, prior
    to the general revision of this chapter by Pub. L. 93-383.

                                AMENDMENTS                            
      2006 - Subsec. (c)(3) to (5). Pub. L. 109-162, Sec. 607(1), (2),
    added par. (3) and redesignated former pars. (3) and (4) as (4) and
    (5), respectively.
      Subsec. (l)(5). Pub. L. 109-162, Sec. 607(3), inserted ", and
    that an incident or incidents of actual or threatened domestic
    violence, dating violence, or stalking will not be construed as a
    serious or repeated violation of the lease by the victim or
    threatened victim of that violence and will not be good cause for
    terminating the tenancy or occupancy rights of the victim of such
    violence" before semicolon at end.
      Subsec. (l)(6). Pub. L. 109-162, Sec. 607(4), inserted before
    semicolon at end "; except that: (A) criminal activity directly
    relating to domestic violence, dating violence, or stalking,
    engaged in by a member of a tenant's household or any guest or
    other person under the tenant's control, shall not be cause for
    termination of the tenancy or occupancy rights, if the tenant or
    immediate member of the tenant's family is a victim of that
    domestic violence, dating violence, or stalking; (B)
    notwithstanding subparagraph (A), a public housing agency under
    this section may bifurcate a lease under this section, in order to
    evict, remove, or terminate assistance to any individual who is a
    tenant or lawful occupant and who engages in criminal acts of
    physical violence against family members or others, without
    evicting, removing, terminating assistance to, or otherwise
    penalizing the victim of such violence who is also a tenant or
    lawful occupant; (C) nothing in subparagraph (A) may be construed
    to limit the authority of a public housing agency, when notified,
    to honor court orders addressing rights of access to or control of
    the property, including civil protection orders issued to protect
    the victim and issued to address the distribution or possession of
    property among the household members in cases where a family breaks
    up; (D) nothing in subparagraph (A) limits any otherwise available
    authority of a public housing agency to evict a tenant for any
    violation of a lease not premised on the act or acts of violence in
    question against the tenant or a member of the tenant's household,
    provided that the public housing agency does not subject an
    individual who is or has been a victim of domestic violence, dating
    violence, or stalking to a more demanding standard than other
    tenants in determining whether to evict or terminate; (E) nothing
    in subparagraph (A) may be construed to limit the authority of a
    public housing agency to terminate the tenancy of any tenant if the
    public housing agency can demonstrate an actual and imminent threat
    to other tenants or those employed at or providing service to the
    property if that tenant's tenancy is not terminated; and (F)
    nothing in this section shall be construed to supersede any
    provision of any Federal, State, or local law that provides greater
    protection than this section for victims of domestic violence,
    dating violence, or stalking."
      Subsec. (l)(6)(B). Pub. L. 109-271, Sec. 5(f)(1), added subpar.
    (B) and struck out former subpar. (B) which read as follows:
    "notwithstanding subparagraph (A), a public housing agency under
    this section may bifurcate a lease under this section, in order to
    evict, remove, or terminate assistance to any individual who is a
    tenant or lawful occupant and who engages in criminal acts of
    physical violence against family members or others, without
    evicting, removing, terminating assistance to, or otherwise
    penalizing the victim of such violence who is also a tenant or
    lawful occupant;".
      Subsec. (u). Pub. L. 109-162, Sec. 607(5), added subsec. (u).
      Subsec. (u)(1)(A). Pub. L. 109-271, Sec. 5(f)(2)(A), substituted
    "the individual receives a request for such certification from the
    public housing agency" for "the public housing agency requests such
    certification".
      Subsec. (u)(1)(B). Pub. L. 109-271, Sec. 5(f)(2)(B), substituted
    "the individual has received a request in writing for such
    certification from the public housing agency" for "the public
    housing agency has requested such certification in writing".
      Subsec. (u)(3)(D)(ii). Pub. L. 109-271, Sec. 5(f)(2)(C),
    substituted "blood or marriage" for "blood and marriage".
      1998 - Subsec. (a). Pub. L. 105-276, Sec. 511(d), in first
    sentence, inserted ", in a manner consistent with the public
    housing agency plan" before the period at end and struck out after
    first sentence "Any such contract may contain a condition requiring
    the maintenance of an open space or playground in connection with
    the housing project involved if deemed necessary by the Secretary
    for the safety or health of children."
      Subsec. (b)(3), (4). Pub. L. 105-276, Sec. 520(b), added pars.
    (3) and (4).
      Subsec. (c)(4)(A). Pub. L. 105-276, Sec. 514(a)(1), amended
    subpar. (A) generally. For former text of subpar. (A), see 1996
    Amendment note below.
      Subsec. (c)(4)(E). Pub. L. 105-276, Sec. 529(1), substituted "for
    each agency that receives assistance under this subchapter" for
    "except in the case of agencies not receiving operating assistance
    under section 1437g of this title".
      Subsec. (e). Pub. L. 105-276, Sec. 529(2), struck out subsec. (e)
    which read as follows: "Every contract for annual contributions
    shall provide that whenever in any year the receipts of a public
    housing agency in connection with a low-income housing project
    exceed its expenditures (including debt service, operation,
    maintenance, establishment of reserves, and other costs and
    charges), an amount equal to such excess shall be applied, or set
    aside for application, to purposes, which, in the determination of
    the Secretary, will effect a reduction in the amount of subsequent
    annual contributions."
      Subsec. (f). Pub. L. 105-276, Sec. 530, added subsec. (f).
      Subsec. (j)(1)(B). Pub. L. 105-276, Sec. 564(1)(A), added subpar.
    (B) and struck out former subpar. (B) which read as follows: "The
    amount and percentage of funds obligated to the public housing
    agency under section 1437l of this title which remain unexpended
    after 3 years."
      Subsec. (j)(1)(D). Pub. L. 105-276, Sec. 564(1)(B), substituted
    "utility" for "energy".
      Subsec. (j)(1)(E). Pub. L. 105-276, Sec. 564(1)(C), which
    directed the transfer and insertion of subpar. (E) after subpar.
    (D), required no change in text.
      Subsec. (j)(1)(H) to (K). Pub. L. 105-276, Sec. 564(1)(D), (E),
    added subpars. (H), (I), relating to extent to which agency
    implements and coordinates strategies, and (J), and redesignated
    former subpar. (H) as (K).
      Subsec. (j)(2)(A)(i). Pub. L. 105-276, Sec. 564(2)(A), inserted
    after first sentence "Such procedures shall provide that an agency
    that fails on a widespread basis to provide acceptable basic
    housing conditions for its residents shall be designated as a
    troubled public housing agency. The Secretary may use a simplified
    set of indicators for public housing agencies with less than 250
    public housing units." and, in last sentence, substituted "for
    assistance from the Capital Fund under section 1437g(d) of this
    title" for "under section 1437l of this title".
      Subsec. (j)(2)(A)(iii). Pub. L. 105-276, Sec. 564(2)(B),
    substituted "for assistance from the Capital Fund under section
    1437g(d) of this title" for "under section 1437l of this title".
      Subsec. (j)(2)(B)(i). Pub. L. 105-276, Sec. 564(2)(C), inserted
    "with more than 250 units" after "public housing agency" and
    substituted "comparable and recent review" for "review conducted
    under section 1437l(p) of this title".
      Subsec. (j)(2)(C). Pub. L. 105-276, Sec. 564(2)(D), inserted "(if
    applicable)" after "subparagraph (B)" in first sentence.
      Subsec. (j)(3)(A)(i). Pub. L. 105-276, Sec. 565(a)(1)(A), added
    cl. (i) and struck out former cl. (i) which read as follows:
    "solicit competitive proposals from other public housing agencies
    and private housing management agents (which may be selected by
    existing tenants through administrative procedures established by
    the Secretary) in the eventuality that these agents may be needed
    for managing all, or part, of the housing administered by a public
    housing agency;".
      Subsec. (j)(3)(A)(iii). Pub. L. 105-276, Sec. 565(a)(1)(B),
    substituted "from the Capital Fund under section 1437g(d) of this
    title" for "under section 1437l of this title".
      Subsec. (j)(3)(A)(iv), (v). Pub. L. 105-276, Sec. 565(a)(1)(C),
    added cls. (iv) and (v) and struck out former cl. (iv) which read
    as follows: "require the agency to make other arrangements
    acceptable to the Secretary and in the best interests of the public
    housing residents for managing all, or part of, such housing."
      Subsec. (j)(3)(B) to (H). Pub. L. 105-276, Sec. 565(a)(2), added
    subpars. (B) to (H) and struck out former subpars. (B) to (D) which
    read as follows:
      "(B) The Secretary may make available to receivers and other
    entities selected or appointed pursuant to this paragraph such
    assistance as is necessary to remedy the substantial deterioration
    of living conditions in individual public housing developments or
    other related emergencies that endanger the health, safety and
    welfare of the residents.
      "(C) In any proceeding under subparagraph (A)(ii), upon a
    determination that a substantial default has occurred, and without
    regard to the availability of alternative remedies, the court shall
    appoint a receiver to conduct the affairs of the public housing
    agency in a manner consistent with this chapter and in accordance
    with such further terms and conditions as the court may provide.
    The court shall have power to grant appropriate temporary or
    preliminary relief pending final disposition of the petition by the
    Secretary.
      "(D) The appointment of a receiver pursuant to this subsection
    may be terminated, upon the petition of any party, when the court
    determines that all defaults have been cured and the housing
    operated by the public housing agency will thereafter be operated
    in accordance with the covenants and conditions to which the public
    housing agency is subject."
      Subsec. (j)(4), (5). Pub. L. 105-276, Sec. 521, added par. (4)
    and redesignated former par. (4) as (5).
      Subsec. (j)(5)(F). Pub. L. 105-276, Sec. 564(3), substituted
    "program for assistance from the Capital Fund under section
    1437g(d) of this title and specifies the amount of assistance the
    agency received under such program." for "program under section
    1437l of this title and specifies the amount of assistance the
    agency received under section 1437l of this title and any credits
    accumulated by the agency under section 1437l(k)(5)(D) of this
    title."
      Subsec. (j)(6), (7). Pub. L. 105-276, Sec. 564(4), added pars.
    (6) and (7).
      Subsec. (k). Pub. L. 105-276, Sec. 575(a), in first sentence of
    concluding provisions, inserted "violent or" before "drug-related"
    and "or any activity resulting in a felony conviction," after "on
    or off such premises,".
      Subsec. (l)(1) to (3). Pub. L. 105-276, Sec. 512(b)(1), (3),
    added par. (1) and redesignated former pars. (1) to (3) as (2) to
    (4), respectively.
      Subsec. (l)(4). Pub. L. 105-276, Sec. 512(b)(1), redesignated
    par. (3) as (4). Former par. (4) redesignated (5).
      Subsec. (l)(4)(A). Pub. L. 105-276, Sec. 575(b)(1)(A), added
    subpar. (A) and struck out former subpar. (A) which read as
    follows: "a reasonable time, but not to exceed 30 days, when the
    health or safety of other tenants or public housing agency
    employees is threatened;".
      Subsec. (l)(4)(C). Pub. L. 105-276, Sec. 575(b)(1)(B), inserted
    ", except that if a State or local law provides for a shorter
    period of time, such shorter period shall apply" before semicolon
    at end.
      Subsec. (l)(5), (6). Pub. L. 105-276, Sec. 512(b)(1),
    redesignated pars. (4) and (5) as (5) and (6), respectively. Former
    par. (6) redesignated (7), relating to specification that tenant be
    informed of opportunity to examine documents.
      Subsec. (l)(7). Pub. L. 105-276, Sec. 575(b)(4), added par. (7)
    relating to termination for illegal drug use and alcohol abuse.
      Pub. L. 105-276, Sec. 575(b)(2), struck out "and" at end.
      Pub. L. 105-276, Sec. 512(b)(2), which directed the redesignation
    of par. (7) as (9), was executed by redesignating the par. (7),
    relating to termination of tenancy if tenant is fleeing prosecution
    or in violation of parole, as (9), to reflect the probable intent
    of Congress.
      Pub. L. 105-276, Sec. 512(b)(1), redesignated par. (6) as (7),
    relating to specification that tenant be informed of opportunity to
    examine documents.
      Subsec. (l)(9). Pub. L. 105-276, Sec. 512(b)(2), which directed
    the redesignation of par. (7) as (9), was executed by redesignating
    the par. (7), relating to termination of tenancy if tenant is
    fleeing prosecution or in violation of parole, as (9), to reflect
    the probable intent of Congress.
      Subsec. (o). Pub. L. 105-276, Sec. 514(a)(2)(A), substituted "In"
    for "Subject" and all that follows through ", in" in introductory
    provisions.
      Subsec. (p). Pub. L. 105-276, Sec. 519(b), struck out subsec. (p)
    which read as follows: "With respect to amounts available for
    obligation on or after October 1, 1991, the criteria established
    under section 1439(d)(5)(B) of this title for any competition for
    assistance for new construction, acquisition, or acquisition and
    rehabilitation of public housing shall give preference to
    applications for housing to be located in a local market area that
    has an inadequate supply of housing available for use by very low-
    income families. The Secretary shall establish criteria for
    determining that the housing supply of a local market area is
    inadequate, which shall require - 
        "(1)(A) information regarding housing market conditions showing
      that the supply of rental housing affordable by very low-income
      families is inadequate, taking into account vacancy rates in such
      housing and other market indicators; and
        "(B) evidence that significant numbers of families in the local
      market area holding certificates and vouchers under section 1437f
      of this title are experiencing significant difficulty in leasing
      housing meeting program and family-size requirements; or
        "(2) evidence that the proposed development would provide
      increased housing opportunities for minorities or address special
      housing needs."
      Subsec. (q)(1)(A). Pub. L. 105-276, Sec. 575(c)(1)(A)(ii), which
    directed the substitution of "covered housing assistance" for
    "public housing", was executed by making the substitution in the
    second place that "public housing" appeared, to reflect the
    probable intent of Congress.
      Pub. L. 105-276, Sec. 575(c)(1)(A)(i), substituted "subparagraph
    (C)" for "subparagraph (B)".
      Subsec. (q)(1)(B), (C). Pub. L. 105-276, Sec. 575(c)(1)(B), (C),
    added subpar. (B) and redesignated former subpar. (B) as (C).
      Subsec. (q)(3). Pub. L. 105-276, Sec. 575(c)(2), substituted
    "Fees" for "Fee" in heading and inserted at end "In the case of a
    public housing agency obtaining information pursuant to paragraph
    (1)(B) for another owner of housing, the agency may pass such fee
    on to the owner initiating the request and may charge additional
    reasonable fees for making the request on behalf of the owner and
    taking other actions for owners under this subsection."
      Subsec. (q)(5) to (8). Pub. L. 105-276, Sec. 575(c)(3), (4),
    added pars. (5) to (8) and struck out heading and text of former
    par. (5). Text read as follows: "For purposes of this subsection,
    the term 'adult' means a person who is 18 years of age or older, or
    who has been convicted of a crime as an adult under any Federal,
    State, or tribal law."
      Subsec. (r). Pub. L. 105-276, Sec. 576(d)(1), redesignated
    subsec. (s) as (r) and struck out heading and text of former
    subsec. (r). Text read as follows: "Any tenant evicted from housing
    assisted under this subchapter by reason of drug-related criminal
    activity (as that term is defined in section 1437f(f) of this
    title) shall not be eligible for housing assistance under this
    subchapter during the 3-year period beginning on the date of such
    eviction, unless the evicted tenant successfully completes a
    rehabilitation program approved by the public housing agency (which
    shall include a waiver of this subsection if the circumstances
    leading to eviction no longer exist)."
      Subsec. (s). Pub. L. 105-276, Sec. 576(d)(1)(B), redesignated
    subsec. (t) as (s). Former subsec. (s) redesignated (r).
      Pub. L. 105-276, Sec. 525, added subsec. (s).
      Subsec. (t). Pub. L. 105-276, Sec. 576(d)(1)(B), redesignated
    subsec. (u) as (t). Former subsec. (t) redesignated (s).
      Pub. L. 105-276, Sec. 575(d), added subsec. (t).
      Subsec. (u). Pub. L. 105-276, Sec. 576(d)(1)(B), redesignated
    subsec. (u) as (t).
      Pub. L. 105-276, Sec. 575(e), added subsec. (u).
      1996 - Subsec. (b)(1). Pub. L. 104-330 struck out "and public
    housing for Indians and Alaska Natives in accordance with the
    Indian Housing Act of 1988" after "operation of public housing".
      Subsec. (c)(4)(A). Pub. L. 104-99, Sec. 402(d)(1), (f),
    temporarily amended subpar. (A) generally, substituting
      "(A) the establishment, after public notice and an opportunity
    for public comment, of a written system of preferences for
    admission to public housing, if any, that is not inconsistent with
    the comprehensive housing affordability strategy under title I of
    the Cranston-Gonzalez National Affordable Housing Act;" for
      "(A) except for projects or portions of projects designated for
    occupancy pursuant to section 1437e(a) of this title with respect
    to which the Secretary has determined that application of this
    subparagraph would result in excessive delays in meeting the
    housing need of such families, the establishment of tenant
    selection criteria which - 
        "(i) for not less than 50 percent of the units that are made
      available for occupancy in a given fiscal year, give preference
      to families that occupy substandard housing (including families
      that are homeless or living in a shelter for homeless families),
      are paying more than 50 percent of family income for rent, or are
      involuntarily displaced (including displacement because of
      disposition of a multifamily housing project under section 1701z-
      11 of title 12) at the time they are seeking assistance under
      this chapter;
        "(ii) for any remaining units to be made available for
      occupancy, give preference in accordance with a system of
      preferences established by the public housing agency in writing
      and after public hearing to respond to local housing needs and
      priorities, which may include (I) assisting very low-income
      families who either reside in transitional housing assisted under
      title IV of the Stewart B. McKinney Homeless Assistance Act, or
      participate in a program designed to provide public assistance
      recipients with greater access to employment and educational
      opportunities; (II) assisting families in accordance with
      subsection (u)(2); (III) assisting families identified by local
      public agencies involved in providing for the welfare of children
      as having a lack of adequate housing that is a primary factor in
      the imminent placement of a child in foster care, or in
      preventing the discharge of a child from foster care and
      reunification with his or her family; (IV) assisting youth, upon
      discharge from foster care, in cases in which return to the
      family or extended family or adoption is not available; (V)
      assisting families that include one or more adult members who are
      employed; and (VI) achieving other objectives of national housing
      policy as affirmed by Congress; subclause (V) shall be effective
      only during fiscal year 1995;
        "(iii) prohibit any individual or family evicted from housing
      assisted under the chapter by reason of drug-related criminal
      activity from having a preference under any provision of this
      subparagraph for 3 years unless the evicted tenant successfully
      completes a rehabilitation program approved by the agency, except
      that the agency may waive the application of this clause under
      standards established by the Secretary (which shall include
      waiver for any member of a family of an individual prohibited
      from tenancy under this clause who the agency determines clearly
      did not participate in and had no knowledge of such criminal
      activity or when circumstances leading to eviction no longer
      exist); and
        "(iv) are designed to ensure that, to the maximum extent
      feasible, the projects of an agency will include families with a
      broad range of incomes and will avoid concentrations of low-
      income and deprived families with serious social problems."
    See Effective and Termination Dates of 1996 Amendments note below.
      Subsec. (k). Pub. L. 104-120, Sec. 9(a)(1), in concluding
    provisions, substituted "involves any activity" for "involves any
    criminal activity" and "on or off such premises" for "on or near
    such premises".
      Subsec. (l)(5). Pub. L. 104-120, Sec. 9(a)(2), substituted "on or
    off such premises" for "on or near such premises".
      Subsec. (l)(7). Pub. L. 104-193 added par. (7).
      Subsec. (o). Pub. L. 104-99, Sec. 402(d)(6)(A)(i), (f), in
    introductory provisions, temporarily substituted "written system of
    preferences for selection established pursuant to" for "preference
    rules specified in". See Effective and Termination Dates of 1996
    Amendments note below.
      Subsec. (q). Pub. L. 104-120, Sec. 9(b), added subsec. (q).
      Subsec. (r). Pub. L. 104-120, Sec. 9(c), added subsec. (r).
      1994 - Subsec. (c)(4)(A)(i). Pub. L. 103-233, Sec. 101(c)(1),
    inserted "(including displacement because of disposition of a
    multifamily housing project under section 1701z-11 of title 12)"
    after "displaced".
      Subsec. (c)(4)(A)(ii). Pub. L. 103-327 added subcl. (V),
    redesignated former subcl. (V) as (VI), and inserted "subclause (V)
    shall be effective only during fiscal year 1995;" after semicolon
    at end.
      Subsec. (c)(4)(E). Pub. L. 103-233, Sec. 303, substituted "500
    units" for "250 units".
      1992 - Subsec. (a). Pub. L. 102-550, Sec. 625(a)(2), substituted
    "elderly or disabled families" for "the elderly" in last sentence.
      Subsec. (c)(4)(A). Pub. L. 102-550, Sec. 622(b), substituted
    "designated for occupancy pursuant to section 1437e(a) of this
    title" for "specifically designated for elderly families" in
    introductory provisions.
      Subsec. (c)(4)(A)(i). Pub. L. 102-550, Sec. 112, substituted "50
    percent" for "70 percent" after "not less than".
      Subsec. (c)(4)(F). Pub. L. 102-550, Sec. 682(a), added subpar.
    (F).
      Subsec. (j)(1). Pub. L. 102-550, Sec. 113(e)(1)(C), which
    directed the substitution of "indicators for public housing
    agencies, to the extent practicable:" for "indicators." in fourth
    sentence, was executed by making the substitution for "indicators:"
    to reflect the probable intent of Congress.
      Pub. L. 102-550, Sec. 113(e)(1)(A), (B), in introductory
    provisions, inserted "and resident management corporations" before
    period in first sentence and after "agencies" in third sentence.
      Subsec. (j)(2)(B). Pub. L. 102-550, Sec. 113(a)(2), added subpar.
    (B). Former subpar. (B) redesignated (C).
      Subsec. (j)(2)(C). Pub. L. 102-550, Sec. 113(a)(1), (3),
    redesignated subpar. (B) as (C), substituted "agency, after
    reviewing the report submitted pursuant to subparagraph (B) and
    consulting with the agency's assessment team. Such agreement shall
    set forth" for "agency setting forth" in introductory provisions,
    and inserted "To the extent the Secretary deems appropriate (taking
    into account an agency's performance under the indicators specified
    under paragraph (1)), such agreement shall also set forth a plan
    for enhancing resident involvement in the management of the public
    housing agency." before "The Secretary and the public" in
    concluding provisions.
      Subsec. (j)(2)(D). Pub. L. 102-550, Sec. 113(e)(2), added subpar.
    (D).
      Subsec. (j)(3)(A). Pub. L. 102-550, Sec. 113(b)(5), inserted
    concluding provisions.
      Subsec. (j)(3)(A)(i). Pub. L. 102-550, Sec. 113(b)(1), inserted
    "(which may be selected by existing tenants through administrative
    procedures established by the Secretary)" after "management
    agents".
      Subsec. (j)(3)(A)(iii), (iv). Pub. L. 102-550, Sec. 113(b)(2)-
    (4), added cl. (iii) and redesignated former cl. (iii) as (iv).
      Subsec. (j)(3)(B) to (D). Pub. L. 102-550, Sec. 113(c), added
    subpar. (B) and redesignated former subpars. (B) and (C) as (C) and
    (D), respectively.
      Subsec. (j)(4)(E). Pub. L. 102-550, Sec. 113(d), which directed
    the insertion of ", including an accounting of the authorized funds
    that have been expended to support such actions" before semicolon
    in par. (5)(E) of subsec. (j), was executed by making the insertion
    in par. (4)(E) to reflect the probable intent of Congress, because
    subsec. (j) does not contain a par. (5).
      1991 - Subsec. (j)(1)(H), (I). Pub. L. 102-139, which directed
    amendment of "Section 6(j)(1) of the Housing Act of 1937, 42 U.S.C.
    1437d(j)(1) section 502(a) of the National Affordable Housing Act,"
    by adding "which shall not exceed the seven factors in the statute,
    plus an additional five" at the end of subpar. (H) and by adding
    subpar. (I), requiring Secretary to administer evaluation system,
    reflect in weights assigned indicators, and determine status, was
    executed to subsec. (j)(1) of this section, which is section 6 of
    the United States Housing Act of 1937, to reflect the probable
    intent of Congress.
      Subsec. (p). Pub. L. 102-139 added subsec. (p).
      1990 - Subsec. (c)(4)(A). Pub. L. 101-625, Sec. 501, amended
    subpar. (A) generally. Prior to amendment, subpar. (A) read as
    follows: "except for projects or portions of projects specifically
    designated for elderly families with respect to which the Secretary
    has determined that application of this clause would result in
    excessive delays in meeting the housing needs of such families, the
    establishment of tenant selection criteria which gives preference
    to families which occupy substandard housing, are paying more than
    50 percent of family income for rent, or are involuntarily
    displaced at the time they are seeking assistance under this
    chapter and which is designed to assure that, within a reasonable
    period of time, the project will include families with a broad
    range of incomes and will avoid concentrations of lower income and
    deprived families with serious social problems, but (i) this shall
    not permit maintenance of vacancies to await higher income tenants
    where lower income tenants are available and shall not permit
    public housing agencies to select families for residence in an
    order different from the order on the waiting list for the purpose
    of selecting relatively higher income families for residence; and
    (ii) the public housing agency may provide for circumstances in
    which families who do not qualify for any preference established in
    this subparagraph are provided assistance before families who do
    qualify for such preference, except that not more than 10 percent
    of the families who initially receive assistance in any 1-year
    period (or such shorter period selected by the public housing
    agency before the beginning of its first full year subject to this
    clause) may be families who do not qualify for such preference;".
      Subsec. (c)(4)(D). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families".
      Subsec. (c)(4)(E). Pub. L. 101-625, Sec. 502(c)(1), added subpar.
    (E).
      Subsecs. (d), (e). Pub. L. 101-625, Sec. 572(2), substituted "low-
    income housing" for "lower income housing" wherever appearing.
      Subsec. (j). Pub. L. 101-625, Sec. 502(a), amended subsec. (j)
    generally. Prior to amendment, subsec. (j) read as follows: "On or
    after October 1, 1983, in entering into commitments for the
    development of public housing, the Secretary shall give a priority
    to projects for the construction, acquisition, or acquisition and
    rehabilitation of housing suitable for occupancy by families
    requiring three or more bedrooms."
      Subsec. (k). Pub. L. 101-625, Sec. 503(a), added concluding
    provisions and struck out former concluding provisions which read
    as follows: "An agency may exclude from its procedure any grievance
    concerning an eviction or termination of tenancy in any
    jurisdiction which requires that, prior to eviction, a tenant be
    given a hearing in court which the Secretary determines provides
    the basic elements of due process."
      Subsec. (l)(5). Pub. L. 101-625, Sec. 504, amended par. (5)
    generally. Prior to amendment, par. (5) read as follows: "provide
    that a public housing tenant, any member of the tenant's household,
    or a guest or other person under the tenant's control shall not
    engage in criminal activity, including drug-related criminal
    activity, on or near public housing premises, while the tenant is a
    tenant in public housing, and such criminal activity shall be cause
    for termination of tenancy."
      Subsec. (l)(6). Pub. L. 101-625, Sec. 503(b), added par. (6).
      Subsecs. (n), (o). Pub. L. 101-625, Secs. 505, 506, added
    subsecs. (n) and (o).
      1989 - Subsec. (b). Pub. L. 101-144 added subsec. (b).
      1988 - Subsec. (a). Pub. L. 100-242, Sec. 170(d)(1), substituted
    "The Secretary" for "Secretary" at beginning.
      Pub. L. 100-242, Sec. 112(b)(2), struck out "annual" before
    "contributions".
      Subsec. (c). Pub. L. 100-242, Sec. 112(b)(2), struck out "annual"
    before "contributions" in introductory provisions.
      Subsec. (c)(4)(A). Pub. L. 100-628, Sec. 1014(a)(1), inserted cl.
    (i) designation after ", but" and added cl. (ii) before semicolon
    at end.
      Pub. L. 100-628, Sec. 1001(b), inserted before semicolon at end
    "and shall not permit public housing agencies to select families
    for residence in an order different from the order on the waiting
    list for the purpose of selecting relatively higher income families
    for residence".
      Pub. L. 100-242, Sec. 170(d)(2), inserted ", are paying more than
    50 percent of family income for rent," after "substandard housing",
    and struck out "or are paying more than 50 per centum of family
    income for rent" after "under this chapter".
      Subsec. (d). Pub. L. 100-242, Sec. 112(b)(2), struck out "annual"
    before "contributions" in four places and before "shelter" in two
    places.
      Subsec. (g). Pub. L. 100-242, Sec. 112(b)(2), struck out "annual"
    before "contributions" in introductory provisions.
      Subsec. (h). Pub. L. 100-242, Sec. 116, inserted "in the
    neighborhood where the public housing agency determines the housing
    is needed" after "is" and "in such neighborhood" after
    "rehabilitation".
      Subsec. (k)(4), (5). Pub. L. 100-242, Sec. 170(d)(3), substituted
    "their" for "his".
      Subsec. (l). Pub. L. 100-690 added par. (5) and concluding
    provisions defining term "drug-related criminal activity" for
    purposes of par. (5).
      1985 - Subsec. (b). Pub. L. 99-160 struck out subsec. (b) which
    related to cost of construction and equipment of a project, and
    prototype costs.
      1984 - Subsec. (a). Pub. L. 98-479, Sec. 204(b)(1), substituted
    "covenants" for "convenants".
      Subsec. (j). Pub. L. 98-479, Sec. 102(b)(4), inserted ",
    acquisition, or acquisition and rehabilitation" and substituted
    "families requiring three or more bedrooms" for "large families".
      Subsec. (m). Pub. L. 98-479, Sec. 102(b)(5), substituted
    "housing" for "hearing".
      1983 - Subsec. (c)(4)(A). Pub. L. 98-181, Sec. 203(a), inserted
    "or are paying more than 50 per centum of family income for rent".
      Subsec. (f). Pub. L. 98-181, Sec. 214(b), repealed subsec. (f)
    which provided for modification or closeout of housing project.
      Subsecs. (h) to (j). Pub. L. 98-181, Sec. 201(c), added subsecs.
    (h) to (j).
      Subsecs. (k), (l). Pub. L. 98-181, Sec. 204, added subsecs. (k)
    and (l).
      Subsec. (m). Pub. L. 98-181, Sec. 205, added subsec. (m).
      1981 - Subsec. (a). Pub. L. 97-35, Sec. 322(c), substituted
    reference to lower income for reference to low-income.
      Subsec. (c). Pub. L. 97-35, Sec. 322(c), (d), substituted
    provision in par. (2) requiring review at least annually for
    provision requiring review at least within two year intervals, or
    shorter where deemed desirable, in par. (4)(A) "lower income and"
    for "low-income and", and in par. (4)(D) reference to lower income
    for reference to low-income.
      Subsecs. (d), (e). Pub. L. 97-35, Sec. 322(c), substituted
    references to lower income for references to low-income wherever
    appearing.
      1980 - Subsec. (b). Pub. L. 96-399, Sec. 201(c), inserted
    exception relating to availability of prototype costs for projects
    to be located on Indian reservations or in Alaskan Native villages,
    and added cl. (8).
      Subsec. (c)(4)(A). Pub. L. 96-399, Sec. 201(e), inserted
    exception relating to application of this clause to projects
    specifically designated for elderly families.
      Subsec. (f). Pub. L. 96-399, Sec. 202(c), inserted "pursuant to
    section 1437l of this title" wherever appearing.
      1979 - Subsec. (c)(4)(A). Pub. L. 96-153 substituted "tenant
    selection criteria which gives preference to families which occupy
    substandard housing or are involuntarily displaced at the time they
    are seeking assistance under this chapter and which is designed"
    for "tenant selection criteria designed".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.
      Amendment by section 511 of Pub. L. 105-276 effective and
    applicable beginning upon Oct. 21, 1998, see section 511(e) of Pub.
    L. 105-276, set out as a note under section 1437c-1 of this title.
      Amendment by section 514(a)(1), (2)(A) of Pub. L. 105-276
    effective and applicable beginning upon Oct. 21, 1998, see section
    514(g) of Pub. L. 105-276, set out as a note under section 1701s of
    Title 12, Banks and Banking.
      Pub. L. 105-276, title V, Sec. 565(b), Oct. 21, 1998, 112 Stat.
    2631, provided that: "The provisions of, and duties and authorities
    conferred or confirmed by, the amendments made by subsection (a)
    [amending this section] shall apply with respect to any action
    taken before, on, or after the effective date of this Act [probably
    means the general effective date for title V of Pub. L. 105-276
    included in section 503 of Pub. L. 105-276, set out as an Effective
    Date of 1998 Amendment note under section 1437 of this title] and
    shall apply to any receiver appointed for a public housing agency
    before the date of the enactment of this Act [Oct. 21, 1998]."
      Pub. L. 105-276, title V, Sec. 565(e), Oct. 21, 1998, 112 Stat.
    2632, provided that: "This section [amending this section and
    section 1437f of this title and enacting provisions set out as
    notes under this section] shall take effect on, and the amendments
    made by this section are made on, and shall apply beginning upon,
    the date of the enactment of this Act [Oct. 21, 1998]."

            EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS        
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Pub. L. 104-120, Sec. 13, Mar. 28, 1996, 110 Stat. 845, provided
    that:
      "(a) Applicability. - This Act [enacting section 1490p-2 of this
    title, amending this section, sections 1437e, 1437n, 1479, 1485,
    1490p-2, and 5308 of this title, and sections 1715z-20, 1715z-22,
    and 1721 of Title 12, Banks and Banking, and enacting provisions
    set out as notes under sections 1437f, 5305, and 12805 of this
    title and sections 1701 and 4101 of Title 12] and the amendments
    made by this Act shall be construed to have become effective on
    October 1, 1995.
      "(b) Implementation. - The amendments made by sections 9 and 10
    [amending this section and sections 1437e and 1437n of this title]
    shall apply as provided in subsection (a) of this section,
    notwithstanding the effective date of any regulations issued by the
    Secretary of Housing and Urban Development to implement such
    amendments or any failure by the Secretary to issue any such
    regulations."
      Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for
    fiscal years 1996, 1997, and 1998, and to cease to be effective
    Oct. 21, 1998, see section 402(f) of Pub. L. 104-99, as amended,
    and section 514(f) of Pub. L. 105-276, set out as notes under
    section 1437a of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

                              IMPLEMENTATION                          
      Pub. L. 105-276, title V, Sec. 565(d), Oct. 21, 1998, 112 Stat.
    2632, provided that: "The Secretary may administer the amendments
    made by subsection (a) [amending this section] as necessary to
    ensure the efficient and effective initial implementation of this
    section [amending this section and section 1437f of this title and
    enacting provisions set out as notes under this section]."
      Section 502(c)(2) of Pub. L. 101-625, as amended by Pub. L. 102-
    550, title I, Sec. 130, Oct. 28, 1992, 106 Stat. 3712, provided
    that: "The Secretary of Housing and Urban Development shall, under
    the rulemaking procedures under section 553 of title 5, United
    States Code, establish guidelines and timetables appropriate to
    implement the amendment made by paragraph (1)(C) [amending this
    section], taking into account the requirements of public housing
    agencies of different sizes and characteristics, to achieve
    compliance with requirements established by such amendment not
    later than January 1, 1993 for public housing agencies with 500 or
    more units and not later than January 1, 1994 for public housing
    agencies with less than 500 units."

                                REGULATIONS                            
      For provisions requiring Secretary of Housing and Urban
    Development to issue regulations necessary to implement amendment
    to this section by section 101(c) of Pub. L. 103-233, see section
    101(f) of Pub. L. 103-233, set out as a note under section 1701z-11
    of Title 12, Banks and Banking.
      Section 104 of Pub. L. 102-550 provided that: "Not later than the
    expiration of the 180-day period beginning on the date of the
    enactment of this Act [Oct. 28, 1992], the Secretary of Housing and
    Urban Development shall issue regulations implementing the
    amendments made by sections 501 and 545 of the Cranston-Gonzalez
    National Affordable Housing Act [Pub. L. 101-625, amending this
    section and section 1437f of this title]. The regulations shall be
    issued after notice and opportunity for public comment pursuant to
    the provisions of section 553 of title 5, United States Code
    (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
    section) and shall take effect upon issuance."
      Section 503(c) of Pub. L. 101-625 provided that: "The Secretary
    of Housing and Urban Development shall issue, and publish in the
    Federal Register for comment, proposed rules implementing the
    amendments made by this section [amending this section] not later
    than the expiration of the 60-day period beginning on the date of
    the enactment of this Act [Nov. 28, 1990] and shall issue final
    rules implementing the amendments not later than the expiration of
    the 180-day period beginning on the date of the enactment of this
    Act."

    STUDY OF ALTERNATIVE METHODS FOR EVALUATING PUBLIC HOUSING AGENCIES
      Pub. L. 105-276, title V, Sec. 563, Oct. 21, 1998, 112 Stat.
    2624, provided that:
      "(a) In General. - The Secretary of Housing and Urban Development
    shall provide under subsection (e) for a study to be conducted to
    determine the effectiveness of various alternative methods of
    evaluating the performance of public housing agencies and other
    providers of federally assisted housing.
      "(b) Purposes. - The purposes of the study under this section
    shall be - 
        "(1) to identify and examine various methods of evaluating and
      improving the performance of public housing agencies in
      administering public housing and tenant-based rental assistance
      programs and of other providers of federally assisted housing,
      which are alternatives to oversight by the Department of Housing
      and Urban Development; and
        "(2) to identify specific monitoring and oversight activities
      currently conducted by the Department of Housing and Urban
      Development and to evaluate whether such activities should be
      eliminated, expanded, modified, or transferred to other entities
      (including governmental and private entities) to increase
      accuracy and effectiveness and improve monitoring.
      "(c) Evaluation of Various Performance Evaluation Systems. - To
    carry out the purposes under subsection (b), the study under this
    section shall identify, and analyze the advantages and
    disadvantages of various methods of regulating and evaluating the
    performance of public housing agencies and other providers of
    federally assisted housing, including the following methods:
        "(1) Current system. - The system pursuant to the United States
      Housing Act of 1937 [42 U.S.C. 1437 et seq.], including the
      methods and requirements under such system for reporting,
      auditing, reviewing, sanctioning, and monitoring of such agencies
      and housing providers and the public housing management
      assessment program pursuant to section 6(j) of the United States
      Housing Act of 1937 [42 U.S.C. 1437d(j)].
        "(2) Accreditation models. - Various models that are based upon
      accreditation of such agencies and housing providers, subject to
      the following requirements:
          "(A) The study shall identify and analyze various models used
        in other industries and professions for accreditation and
        determine the extent of their applicability to the programs for
        public housing and federally assisted housing.
          "(B) If any accreditation models are determined to be
        applicable to the public and federally assisted housing
        programs, the study shall identify appropriate goals,
        objectives, and procedures for an accreditation program for
        such agencies and housing providers.
          "(C) The study shall evaluate the feasibility and merit of
        establishing an independent accreditation and evaluation entity
        to assist, supplement, or replace the role of the Department of
        Housing and Urban Development in assessing and monitoring the
        performance of such agencies and housing providers.
          "(D) The study shall identify the necessary and appropriate
        roles and responsibilities of various entities that would be
        involved in an accreditation program, including the Department
        of Housing and Urban Development, the Inspector General of the
        Department, an accreditation entity, independent auditors and
        examiners, local entities, and public housing agencies.
          "(E) The study shall estimate the costs involved in
        developing and maintaining such an independent accreditation
        program.
        "(3) Performance based models. - Various performance-based
      models, including systems that establish performance goals or
      targets, assess the compliance with such goals or targets, and
      provide for incentives or sanctions based on performance relative
      to such goals or targets.
        "(4) Local review and monitoring models. - Various models
      providing for local, resident, and community review and
      monitoring of such agencies and housing providers, including
      systems for review and monitoring by local and State governmental
      bodies and agencies.
        "(5) Private models. - Various models using private contractors
      for review and monitoring of such agencies and housing providers.
        "(6) Other models. - Various models of any other systems that
      may be more effective and efficient in regulating and evaluating
      such agencies and housing providers.
      "(d) Consultation. - The entity that, pursuant to subsection (e),
    carries out the study under this section shall, in carrying out the
    study, consult with individuals and organizations experienced in
    managing public housing, private real estate managers,
    representatives from State and local governments, residents of
    public housing, families and individuals receiving tenant-based
    assistance, the Secretary of Housing and Urban Development, the
    Inspector General of the Department of Housing and Urban
    Development, and the Comptroller General of the United States.
      "(e) Contract to Conduct Study. - 
        "(1) In general. - Subject to paragraph (2), the Secretary
      shall enter into a contract, within 90 days of the enactment of
      this Act [Oct. 21, 1998], with a public or nonprofit private
      entity to conduct the study under this section, using amounts
      made available pursuant to subsection (g).
        "(2) National academy of public administration. - The Secretary
      shall request the National Academy of Public Administration to
      enter into the contract under paragraph (1) to conduct the study
      under this section. If such Academy declines to conduct the
      study, the Secretary shall carry out such paragraph through other
      public or nonprofit private entities, selected through a
      competitive process.
      "(f) Report. - 
        "(1) Interim report. - The Secretary shall ensure that, not
      later than the expiration of the 6-month period beginning on the
      date of the execution of the contract under subsection (e)(1),
      the entity conducting the study under this section submits to the
      Congress an interim report describing the actions taken to carry
      out the study, the actions to be taken to complete the study, and
      any findings and recommendations available at the time.
        "(2) Final report. - The Secretary shall ensure that - 
          "(A) not later than the expiration of the 12-month period
        beginning on the date of the execution of the contract under
        subsection (e)(1), the study required under this section is
        completed and a report describing the findings and
        recommendations as a result of the study is submitted to the
        Congress; and
          "(B) before submitting the report under this paragraph to the
        Congress, the report is submitted to the Secretary, national
        organizations for public housing agencies, and other
        appropriate national organizations at such time to provide the
        Secretary and such agencies an opportunity to review the report
        and provide written comments on the report, which shall be
        included together with the report upon submission to the
        Congress under subparagraph (A).
      "(g) Effective Date. - This section shall take effect on the date
    of the enactment of this Act [Oct. 21, 1998]."

          REFERENCES IN OTHER LAWS TO PREFERENCES FOR ASSISTANCE      
      Section 402(d)(6)(D) of Pub. L. 104-99, which provided that
    certain references to preferences for assistance under sections
    1437d(c)(4)(A)(i) and 1437f(d)(1)(A)(i), (o)(3)(B) of this title,
    as such sections existed on the day before Jan. 26, 1996, were to
    be considered to refer to the written system of preferences for
    selection established pursuant to sections 1437d(c)(4)(A) and
    1437f(d)(1)(A), (o)(3)(B) of this title, respectively, as amended
    by section 402 of Pub. L. 104-99, was repealed by Pub. L. 105-276,
    title V, Sec. 514(b)(2)(D), Oct. 21, 1998, 112 Stat. 2548.

    INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING
      Amendment by sections 622(b) and 625(a)(2) of Pub. L. 102-550 not
    applicable with respect to lower income housing developed or
    operated pursuant to contract between Secretary of Housing and
    Urban Development and Indian housing authority, see section 626 of
    Pub. L. 102-550, set out as a note under section 1437a of this
    title.

              REPORT ON TRAINING AND CERTIFICATION STANDARDS          
      Section 502(b) of Pub. L. 101-625 directed Secretary to submit to
    Congress, not later than 12 months after Nov. 28, 1990, a report
    regarding the feasibility and effectiveness of establishing uniform
    standards for training and certification of executive directors and
    other officers and members of local, regional, and State public
    housing agencies.

                               APPLICABILITY                           
      Section 503(d) of Pub. L. 101-625 provided that: "Any exclusion
    of grievances by a public housing agency pursuant to a
    determination or waiver by the Secretary (under section 6(k) of the
    United States Housing Act of 1937 [42 U.S.C. 1437d(k)], as such
    section existed before the date of the enactment of this Act [Nov.
    28, 1990]) that a jurisdiction requires a hearing in court
    providing the basic elements of due process shall be effective
    after the date of the enactment of this Act only to the extent that
    the exclusion complies with the amendments made by this section,
    except that any such waiver provided before the date of the
    enactment of this Act shall remain in effect until the earlier of
    the effective date of the final rules implementing the amendments
    made by this section or 180 days after the date of the enactment."

     REPORT ON IMPACT OF PUBLIC HOUSING LEASE AND GRIEVANCE REGULATION
       ON ABILITY OF PUBLIC HOUSING AGENCIES TO TAKE ACTION AGAINST
                      TENANTS ENGAGING IN DRUG CRIMES
      Section 5103 of Pub. L. 100-690 provided that: "The Secretary of
    Housing and Urban Development shall submit to the Congress a report
    on the impact of the implementation of the public housing tenancy
    and administrative grievance procedure regulations issued under
    section 6(k) of the United States Housing Act of 1937 (42 U.S.C.
    1437d(k)) on the ability of public housing agencies to evict or
    take other appropriate action against tenants engaging in criminal
    activity, especially with respect to the manufacture, sale,
    distribution, use, or possession of controlled substances (as
    defined in section 102 of the Controlled Substances Act (21 U.S.C.
    802)). The report shall be submitted not later than 12 months after
    the date of the enactment of this Act [Nov. 18, 1988]."

                              INDIAN HOUSING                          
      Section 1014(a)(2) of Pub. L. 100-628 provided that: "In
    accordance with section 201(b)(2) of the United States Housing Act
    of 1937 [former section 1437aa(b)(2) of this title], the amendments
    made by paragraph (1) [amending this section] shall also apply to
    public housing developed or operated pursuant to a contract between
    the Secretary of Housing and Urban Development and an Indian
    housing authority."

          STUDY OF PAYMENTS IN LIEU OF TAXES; REPORT TO CONGRESS      
      Pub. L. 95-128, title II, Sec. 201(g), Oct. 12, 1977, 91 Stat.
    1129, provided that the Secretary of Housing and Urban Development
    conduct a study of payment in lieu of taxes made under subsec. (d)
    of this section and report to the Congress on the status and
    adequacy of such payments not later than 12 months after Oct. 12,
    1977.

-FOOTNOTE-
    (!1) So in original. Probably should be "is".

               

    (!2) So in original. Probably should be followed by a semicolon.

    (!3) Another subpar. (I) is set out after subpar. (K).

    (!4) Another subpar. (I) is set out before subpar. (J).

    (!5) See References in Text note below.

               

    (!6) So in original. The word "and" probably should not appear.

    (!7) So in original. The word "this" probably should not appear.

               

    (!8) So in original. The period probably should not appear.

               

    (!9) So in original. Probably should be "(8)".

    (!10) So in original. Probably should be followed by "and".

    (!11) So in original. Probably should be "(B)".

    (!12) See References in Text note below.

    (!13) So in original. Probably should be "includes".

    (!14) So in original. Probably should be "of this paragraph".


-End-



-CITE-
    42 USC Sec. 1437e                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437e. Designated housing for elderly and disabled families

-STATUTE-
    (a) Authority to provide designated housing
      (1) In general
        Subject only to provisions of this section and notwithstanding
      any other provision of law, a public housing agency for which a
      plan under subsection (d) of this section is in effect may
      provide public housing projects (or portions of projects)
      designated for occupancy by (A) only elderly families, (B) only
      disabled families, or (C) elderly and disabled families.
      (2) Priority for occupancy
        In determining priority for admission to public housing
      projects (or portions of projects) that are designated for
      occupancy as provided in paragraph (1), the public housing agency
      may make units in such projects (or portions) available only to
      the types of families for whom the project is designated.
      (3) Eligibility of near-elderly families
        If a public housing agency determines that there are
      insufficient numbers of elderly families to fill all the units in
      a project (or portion of a project) designated under paragraph
      (1) for occupancy by only elderly families, the agency may
      provide that near-elderly families may occupy dwelling units in
      the project (or portion).
    (b) Standards regarding evictions
      Except as provided in section 1437n(e)(1)(B) (!1) of this title,
    any tenant who is lawfully residing in a dwelling unit in a public
    housing project may not be evicted or otherwise required to vacate
    such unit because of the designation of the project (or portion of
    a project) pursuant to this section or because of any action taken
    by the Secretary or any public housing agency pursuant to this
    section.

    (c) Relocation assistance
      A public housing agency that designates any existing project or
    building, or portion thereof, for occupancy as provided under
    subsection (a)(1) of this section shall provide, to each person and
    family who agrees to be relocated in connection with such
    designation - 
        (1) notice of the designation and an explanation of available
      relocation benefits, as soon as is practicable for the agency and
      the person or family;
        (2) access to comparable housing (including appropriate
      services and design features), which may include tenant-based
      rental assistance under section 1437f of this title, at a rental
      rate paid by the tenant that is comparable to that applicable to
      the unit from which the person or family has vacated; and
        (3) payment of actual, reasonable moving expenses.
    (d) Required plan
      A plan under this subsection for designating a project (or
    portion of a project) for occupancy under subsection (a)(1) of this
    section is a plan, prepared by the public housing agency for the
    project and submitted to the Secretary, that - 
        (1) establishes that the designation of the project is
      necessary - 
          (A) to achieve the housing goals for the jurisdiction under
        the comprehensive housing affordability strategy under section
        12705 of this title; and
          (B) to meet the housing needs of the low-income population of
        the jurisdiction; and

        (2) includes a description of - 
          (A) the project (or portion of a project) to be designated;
          (B) the types of tenants for which the project is to be
        designated;
          (C) any supportive services to be provided to tenants of the
        designated project (or portion);
          (D) how the design and related facilities (as such term is
        defined in section 1701q(d)(8) (!1) of title 12) of the project
        accommodate the special environmental needs of the intended
        occupants; and
          (E) any plans to secure additional resources or housing
        assistance to provide assistance to families that may have been
        housed if occupancy in the project were not restricted pursuant
        to this section.

    For purposes of this subsection, the term "supportive services"
    means services designed to meet the special needs of residents.
    (e) Review of plans
      (1) Review and notification
        The Secretary shall conduct a limited review of each plan under
      subsection (d) of this section that is submitted to the Secretary
      to ensure that the plan is complete and complies with the
      requirements of subsection (d) of this section. The Secretary
      shall notify each public housing agency submitting a plan whether
      the plan complies with such requirements not later than 60 days
      after receiving the plan. If the Secretary does not notify the
      public housing agency, as required under this paragraph or
      paragraph (2), the plan shall be considered, for purposes of this
      section, to comply with the requirements under subsection (d) of
      this section and the Secretary shall be considered to have
      notified the agency of such compliance upon the expiration of
      such 60-day period.
      (2) Notice of reasons for determination of noncompliance
        If the Secretary determines that a plan, as submitted, does not
      comply with the requirements under subsection (d) of this
      section, the Secretary shall specify in the notice under
      paragraph (1) the reasons for the noncompliance and any
      modifications necessary for the plan to meet such requirements.
      (3) Standards for determination of noncompliance
        The Secretary may determine that a plan does not comply with
      the requirements under subsection (d) of this section only if - 
          (A) the plan is incomplete in significant matters required
        under such subsection; or
          (B) there is evidence available to the Secretary that
        challenges, in a substantial manner, any information provided
        in the plan.
      (4) Treatment of existing plans
        Notwithstanding any other provision of this section, a public
      housing agency shall be considered to have submitted a plan under
      this subsection if the agency has submitted to the Secretary an
      application and allocation plan under this section (as in effect
      before March 28, 1996) that have not been approved or disapproved
      before March 28, 1996.
    (f) Effectiveness
      (1) 5-year effectiveness of original plan
        A plan under subsection (d) of this section shall be in effect
      for purposes of this section during the 5-year period that begins
      upon notification under subsection (e)(1) of this section of the
      public housing agency that the plan complies with the
      requirements under subsection (d) of this section.
      (2) Renewal of plan
        Upon the expiration of the 5-year period under paragraph (1) or
      any 2-year period under this paragraph, an agency may extend the
      effectiveness of the designation and plan for an additional 2-
      year period (that begins upon such expiration) by submitting to
      the Secretary any information needed to update the plan. The
      Secretary may not limit the number of times a public housing
      agency extends the effectiveness of a designation and plan under
      this paragraph.
      (3) Transition provision
        Any application and allocation plan approved under this section
      (as in effect before March 28, 1996) before March 28, 1996, shall
      be considered to be a plan under subsection (d) of this section
      that is in effect for purposes of this section for the 5-year
      period beginning upon such approval.
    (g) Inapplicability of Uniform Relocation Assistance and Real
      Property Acquisitions Policy Act of 1970
      No tenant of a public housing project shall be considered to be
    displaced for purposes of the Uniform Relocation Assistance and
    Real Property Acquisitions Policy Act of 1970 [42 U.S.C. 4601 et
    seq.] because of the designation of any existing project or
    building, or portion thereof, for occupancy as provided under
    subsection (a) of this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 7, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 662; amended Pub. L.
    95-557, title IV, Sec. 412, Oct. 31, 1978, 92 Stat. 2110; Pub. L.
    100-242, title I, Sec. 112(b)(3), Feb. 5, 1988, 101 Stat. 1824;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; amended Pub. L. 102-550, title VI, Sec. 622(a), Oct. 28,
    1992, 106 Stat. 3813; Pub. L. 104-99, title IV, Sec.
    402(d)(6)(A)(ii), Jan. 26, 1996, 110 Stat. 42; Pub. L. 104-120,
    Sec. 10(a), Mar. 28, 1996, 110 Stat. 838; Pub. L. 104-330, title V,
    Sec. 501(b)(4), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105-276,
    title V, Sec. 595(d), Oct. 21, 1998, 112 Stat. 2656.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437n(e)(1)(B) of this title, referred to in subsec. (b),
    was repealed by Pub. L. 105-276, title V, Sec. 576(d)(2), Oct. 21,
    1998, 112 Stat. 2640.
      Section 1701q of title 12, referred to in subsec. (d)(2)(D), was
    amended generally by Pub. L. 101-625, title VIII, Sec. 801(a), Nov.
    28, 1990, 104 Stat. 4297, and, as so amended, does not contain a
    subsec. (d)(8) or a definition of the term "related facilities".
      The Uniform Relocation Assistance and Real Property Acquisitions
    Policy Act of 1970, referred to in subsec. (g), probably means the
    Uniform Relocation Assistance and Real Property Acquisition Policy
    Act of 1970, Pub. L. 91-646, Jan. 2, 1971, 84 Stat. 1894, as
    amended, which is classified principally to chapter 61 (Sec. 4601
    et seq.) of this title. For complete classification of this Act to
    the Code, see Short Title note set out under section 4601 of this
    title and Tables.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 7 of act Sept. 1, 1937, ch. 896, 50 Stat. 891, as
    amended, required publication of information and submission of
    annual report by the Authority and was classified to section 1407
    of this title, prior to the general revision of this chapter by
    Pub. L. 93-383.

                                AMENDMENTS                            
      1998 - Subsec. (h). Pub. L. 105-276 struck out heading and text
    of subsec. (h). Text read as follows: "The provisions of this
    section shall not apply with respect to low-income housing
    developed or operated pursuant to a contract between the Secretary
    and an Indian housing authority."
      1996 - Pub. L. 104-330, Sec. 501(b)(4), which directed amendment
    of "subsection 7" of the United States Housing Act of 1937,
    probably meaning this section, by striking subsec. (l), could not
    be executed because this section does not contain a subsec. (l).
      Pub. L. 104-120 amended section generally, restating former
    subsecs. (a) to (g) relating to designated housing as subsecs. (a)
    to (h) relating to designated housing for elderly and disabled
    families.
      Subsec. (a)(2). Pub. L. 104-99, which directed the temporary
    amendment of par. (2) by substituting "in accordance with the
    written system of preferences for selection established pursuant
    to" for "according to the preferences for occupancy under", could
    not be executed because of the amendment by Pub. L. 104-120 which
    amended section generally retroactive to Oct. 1, 1995. See
    Effective and Termination Dates of 1996 Amendments note below.
      1992 - Pub. L. 102-550 amended section generally, substituting
    present provisions for provisions relating to and defining
    "congregate housing" and providing for design, development, and
    acquisition of congregate housing for displaced or elderly
    families, limitation on amounts for contracts for congregate
    housing, and costs for central dining facilities.
      1988 - Pub. L. 100-242 struck out "annual" before "contributions"
    in proviso.
      1978 - Pub. L. 95-557 substituted "(1) low-rent housing which, as
    of January 1, 1979, was built or under construction, with which
    there is connected a central dining facility where wholesome and
    economical meals can be served to such occupants; or (2) low-rent
    housing constructed after, but not under construction prior to,
    January 1, 1979, connected with which there is a central dining
    facility to provide wholesome and economical meals for such
    occupants. Such occupants of congregate housing may also be
    provided with other supportive services appropriate to their needs
    under title IV of the Housing and Community Development Amendments
    of 1978" for "low-income housing (A) in which some or all of the
    dwelling units do not have kitchen facilities, and (B) connected
    with which there is a central dining facility to provide wholesome
    and economical meals for elderly and displaced families under terms
    and conditions prescribed by the public housing agency to permit a
    generally self-supporting operation".

            EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS        
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Amendment by Pub. L. 104-120 to be construed to have become
    effective Oct. 1, 1995, notwithstanding the effective date of any
    regulations issued by Secretary of Housing and Urban Development to
    implement amendments by sections 9 and 10 of Pub. L. 104-120 or any
    failure by Secretary to issue any such regulations, see section 13
    of Pub. L. 104-120, set out as a note under section 1437d of this
    title.
      Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for
    fiscal years 1996, 1997, and 1998, and to cease to be effective
    Oct. 21, 1998, see section 402(f) of Pub. L. 104-99, as amended,
    and section 514(f) of Pub. L. 105-276, set out as notes under
    section 1437a of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

    INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING
      Amendment by Pub. L. 102-550 not applicable with respect to lower
    income housing developed or operated pursuant to contract between
    Secretary of Housing and Urban Development and Indian housing
    authority, see section 626 of Pub. L. 102-550, set out as a note
    under section 1437a of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    42 USC Sec. 1437f                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437f. Low-income housing assistance

-STATUTE-
    (a) Authorization for assistance payments
      For the purpose of aiding low-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
    subchapter II-A of this chapter. Each contract entered into under
    this subsection shall be for a term of not more than 60 months.
    (c) Contents and purposes of contracts for assistance payments;
      amount and scope of monthly assistance payments
      (1) 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 12705 of this title, or (B) by such
    higher amount as may be requested by a tenant and approved by the
    public housing agency in accordance with paragraph (3)(B). In the
    case of newly constructed and substantially rehabilitated units,
    the exception in the preceding sentence shall not apply to more
    than 20 per centum of the total amount of authority to enter into
    annual contributions contracts for such units which is allocated to
    an area and obligated with respect to any fiscal year beginning on
    or after October 1, 1980. Proposed fair market rentals for an area
    shall be published in the Federal Register with reasonable time for
    public comment, and shall become effective upon the date of
    publication in final form in the Federal Register. Each fair market
    rental in effect under this subsection shall be adjusted to be
    effective on October 1 of each year to reflect changes, based on
    the most recent available data trended so the rentals will be
    current for the year to which they apply, of rents for existing or
    newly constructed rental dwelling units, as the case may be, of
    various sizes and types in the market area suitable for occupancy
    by persons assisted under this section. Notwithstanding any other
    provision of this section, after October 12, 1977, the Secretary
    shall prohibit high-rise elevator projects for families with
    children unless there is no practical alternative. The Secretary
    shall establish separate fair market rentals under this paragraph
    for Westchester County in the State of New York. The Secretary
    shall also establish separate fair market rentals under this
    paragraph for Monroe County in the Commonwealth of Pennsylvania. In
    establishing fair market rentals for the remaining portion of the
    market area in which Monroe County is located, the Secretary shall
    establish the fair market rentals as if such portion included
    Monroe County. If units assisted under this section are exempt from
    local rent control while they are so assisted or otherwise, the
    maximum monthly rent for such units shall be reasonable in
    comparison with other units in the market area that are exempt from
    local rent control.
      (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 4851b of this
    title.
      (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 November 7, 1988, 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 1437a(a) of this title. Reviews of family income
    shall be made no less frequently than annually.
      (4) The assistance contract shall provide that assistance
    payments may be made only with respect to a dwelling unit under
    lease for occupancy by a family determined to be a lower income
    family at the time it initially occupied such dwelling unit, 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.
      (6) Redesignated (5).
      (7) Repealed. Pub. L. 105-276, title V, Sec. 550(a)(3)(C), Oct.
    21, 1998, 112 Stat. 2609.
      (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.
      (9)(A) That an applicant or participant is or has been a victim
    of domestic violence, dating violence, or stalking is not an
    appropriate basis for denial of program assistance or for denial of
    admission, if the applicant otherwise qualifies for assistance or
    admission.
      (B) An incident or incidents of actual or threatened domestic
    violence, dating violence, or stalking will not be construed as a
    serious or repeated violation of the lease by the victim or
    threatened victim of that violence and shall not be good cause for
    terminating the assistance, tenancy, or occupancy rights of the
    victim of such violence.
      (C)(i) Criminal activity directly relating to domestic violence,
    dating violence, or stalking, engaged in by a member of a tenant's
    household or any guest or other person under the tenant's control
    shall not be cause for termination of assistance, tenancy, or
    occupancy rights if the tenant or an immediate member of the
    tenant's family is the victim or threatened victim of that domestic
    violence, dating violence, or stalking.
      (ii) Notwithstanding clause (i) or any Federal, State, or local
    law to the contrary, an owner or manager may bifurcate a lease
    under this section, or remove a household member from a lease under
    this section, without regard to whether a household member is a
    signatory to a lease, in order to evict, remove, terminate
    occupancy rights, or terminate assistance to any individual who is
    a tenant or lawful occupant and who engages in criminal acts of
    physical violence against family members or others, without
    evicting, removing, terminating assistance to, or otherwise
    penalizing the victim of such violence who is also a tenant or
    lawful occupant. Such eviction, removal, termination of occupancy
    rights, or termination of assistance shall be effected in
    accordance with the procedures prescribed by Federal, State, and
    local law for the termination of leases or assistance under the
    relevant program of HUD-assisted housing.
      (iii) Nothing in clause (i) may be construed to limit the
    authority of a public housing agency, owner, or manager, when
    notified, to honor court orders addressing rights of access to or
    control of the property, including civil protection orders issued
    to protect the victim and issued to address the distribution or
    possession of property among the household members in cases where a
    family breaks up.
      (iv) Nothing in clause (i) limits any otherwise available
    authority of an owner or manager to evict or the public housing
    agency to terminate assistance to a tenant for any violation of a
    lease not premised on the act or acts of violence in question
    against the tenant or a member of the tenant's household, provided
    that the owner or manager does not subject an individual who is or
    has been a victim of domestic violence, dating violence, or
    stalking to a more demanding standard than other tenants in
    determining whether to evict or terminate.
      (v) Nothing in clause (i) may be construed to limit the authority
    of an owner, manager, or public housing agency to evict or
    terminate from assistance any tenant or lawful occupant if the
    owner, manager or public housing agency can demonstrate an actual
    and imminent threat to other tenants or those employed at or
    providing service to the property if that tenant is not evicted or
    terminated from assistance.
      (vi) Nothing in this section shall be construed to supersede any
    provision of any Federal, State, or local law that provides greater
    protection than this section for victims of domestic violence,
    dating violence, or stalking.
    (d) Required provisions and duration of contracts for assistance
      payments; waiver of limitation
      (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 1437c-1 of
      this title by the public housing agency and that an applicant or
      participant is or has been a victim of domestic violence, dating
      violence, or stalking is not an appropriate basis for denial of
      program assistance or for denial of admission if the applicant
      otherwise qualifies for assistance or admission;
        (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,
      and that an incident or incidents of actual or threatened
      domestic violence, dating violence, or stalking will not be
      construed as a serious or repeated violation of the lease by the
      victim or threatened victim of that violence and will not be good
      cause for terminating the tenancy or occupancy rights of the
      victim of such violence;
        (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,
      except that: (I) criminal activity directly relating to domestic
      violence, dating violence, or stalking, engaged in by a member of
      a tenant's household or any guest or other person under the
      tenant's control, shall not be cause for termination of the
      tenancy or occupancy rights or program assistance, if the tenant
      or immediate member of the tenant's family is a victim of that
      domestic violence, dating violence, or stalking; (II)
      Notwithstanding (!1) subclause (I) or any Federal, State, or
      local law to the contrary, a public housing agency may terminate
      assistance to, or an owner or manager may bifurcate a lease under
      this section, or remove a household member from a lease under
      this section, without regard to whether a household member is a
      signatory to a lease, in order to evict, remove, terminate
      occupancy rights, or terminate assistance to any individual who
      is a tenant or lawful occupant and who engages in criminal acts
      of physical violence against family members or others, without
      evicting, removing, terminating assistance to, or otherwise
      penalizing the victim of such violence who is also a tenant or
      lawful occupant. Such eviction, removal, termination of occupancy
      rights, or termination of assistance shall be effected in
      accordance with the procedures prescribed by Federal, State, and
      local law for the termination of leases or assistance under the
      relevant program of HUD-assisted housing.(!2) (III) nothing in
      subclause (I) may be construed to limit the authority of a public
      housing agency, owner, or manager, when notified, to honor court
      orders addressing rights of access to or control of the property,
      including civil protection orders issued to protect the victim
      and issued to address the distribution or possession of property
      among the household members in cases where a family breaks up;
      (IV) nothing in subclause (I) limits any otherwise available
      authority of an owner or manager to evict or the public housing
      agency to terminate assistance to a tenant for any violation of a
      lease not premised on the act or acts of violence in question
      against the tenant or a member of the tenant's household,
      provided that the owner, manager, or public housing agency does
      not subject an individual who is or has been a victim of domestic
      violence, dating violence, or stalking to a more demanding
      standard than other tenants in determining whether to evict or
      terminate; (V) nothing in subclause (I) may be construed to limit
      the authority of an owner or manager to evict, or the public
      housing agency to terminate assistance,(!3) to any tenant if the
      owner, manager, or public housing agency can demonstrate an
      actual and imminent threat to other tenants or those employed at
      or providing service to the property if that tenant is not
      evicted or terminated from assistance; and (VI) nothing in this
      section shall be construed to supersede any provision of any
      Federal, State, or local law that provides greater protection
      than this section for victims of domestic violence, dating
      violence, or stalking.; (!4)




        (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
    subsection (b)(2) of this section (as such subsection 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 (!5) of the Housing and
    Community Development Act of 1992 [42 U.S.C. 13631] 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 1437c(c) of
    this title 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 subsection (b)(2) of this
    section (as such subsection 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 [42 U.S.C. 13601 et seq.] 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 [42 U.S.C. 13619]) 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 [42 U.S.C. 13611 et seq.].
      (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) Restrictions on contracts for assistance payments
      (1) Nothing in this chapter 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.
      (2) Repealed. Pub. L. 101-625, title II, Sec. 289(b), Nov. 28,
    1990, 104 Stat. 4128.
    (f) Definitions
      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 chapter;
        (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 [42 U.S.C. 12721 et
      seq.];
        (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 802 of title 21);
        (6) the term "project-based assistance" means rental assistance
      under subsection (b) of this section that is attached to the
      structure pursuant to subsection (d)(2) or (o)(13) of this
      section;
        (7) the term "tenant-based assistance" means rental assistance
      under subsection (o) of this section that is not project-based
      assistance and that provides for the eligible family to select
      suitable housing and to move to other suitable housing;
        (8) the term "domestic violence" has the same meaning given the
      term in section 13925 of this title;
        (9) the term "dating violence" has the same meaning given the
      term in section 13925 of this title;
        (10) the term "stalking" means - 
          (A)(i) to follow, pursue, or repeatedly commit acts with the
        intent to kill, injure, harass, or intimidate another person;
        or
          (ii) to place under surveillance with the intent to kill,
        injure, harass, or intimidate another person; and
          (B) in the course of, or as a result of, such following,
        pursuit, surveillance, or repeatedly committed acts, to place a
        person in reasonable fear of the death of, or serious bodily
        injury to, or to cause substantial emotional harm to - 
            (i) that person;
            (ii) a member of the immediate family of that person; or
            (iii) the spouse or intimate partner of that person; and

        (11) the term "immediate family member" means, with respect to
      a person - 
          (A) a spouse, parent, brother or sister, or child of that
        person, or an individual to whom that person stands in loco
        parentis; or
          (B) any other person living in the household of that person
        and related to that person by blood or marriage.
    (g) Regulations applicable for implementation of assistance
      payments
      Notwithstanding any other provision of this chapter, 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 1701q
    of title 12.
    (h) Nonapplicability of inconsistent provisions to contracts for
      assistance payments
      Sections 1437c(e) and 1437d of this title (except as provided in
    section 1437d(j)(3) of this title), and any other provisions of
    this chapter which are inconsistent with the provisions of this
    section shall not apply to contracts for assistance entered into
    under this section.
    (i) Receipt of assistance by public housing agency under other law
      not to be considered
      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 [42 U.S.C. 8013(b)(1)],
    or the amount received, in approving assistance for the agency
    under this section or determining the amount of such assistance to
    be provided.
    (j) Repealed. Pub. L. 105-276, title V, Sec. 550(a)(6), Oct. 21,
      1998, 112 Stat. 2609
    (k) Verification of income
      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 [42 U.S.C. 301 et seq.],
    the Food Stamp Act of 1977 [7 U.S.C. 2011 et seq.], or title 38.
    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.
    (l), (m) Repealed. Pub. L. 98-181, title II, Sec. 209(a)(5), Nov.
      30, 1983, 97 Stat. 1183
    (n) Repealed. Pub. L. 105-276, title V, Sec. 550(a)(7), Oct. 21,
      1998, 112 Stat. 2609
    (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) of this section 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.
        (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.
        (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 1437a(a)(3) of this
      title (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 1437a(a)(1) of this title, and the
        amount of the housing assistance payment shall be determined in
        accordance with subsection (c)(3) of this section.
      (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 subchapter;
          (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 [12 U.S.C. 4113, 4116].
      (5) Annual review of family income
        (A) In general
          Reviews of family incomes for purposes of this section shall
        be subject to the provisions of section 3544 of this title and
        shall be conducted upon the initial provision of housing
        assistance for the family and thereafter not less than
        annually.
        (B) Procedures
          Each public housing agency administering assistance under
        this subsection shall establish procedures that are appropriate
        and necessary to ensure that income data provided to the agency
        and owners by families applying for or receiving assistance
        from the agency is complete and accurate. Each public housing
        agency shall, not less frequently than annually, conduct a
        review of the family income of each family receiving assistance
        under this subsection.
      (6) Selection of families and disapproval of owners
        (A) 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) 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 1437c-1(f) of this title 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) (!6)
        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. That an applicant or participant is or
        has been a victim of domestic violence, dating violence, or
        stalking is not an appropriate basis for denial of program
        assistance or for denial of admission if the applicant
        otherwise qualifies for assistance or admission. Nothing in
        this section shall be construed to supersede any provision of
        any Federal, State, or local law that provides greater
        protection than this section for victims of domestic violence,
        dating violence, or stalking.

        (C) PHA disapproval of owners
          In addition to other grounds authorized by the Secretary, a
        public housing agency may elect not to enter into a housing
        assistance payments contract under this subsection with an
        owner who refuses, or has a history of refusing, to take action
        to terminate tenancy for activity engaged in by the tenant, any
        member of the tenant's household, any guest, or any other
        person under the control of any member of the household that - 
            (i) threatens the health or safety of, or right to peaceful
          enjoyment of the premises by, other tenants or employees of
          the public housing agency, owner, or other manager of the
          housing;
            (ii) threatens the health or safety of, or right to
          peaceful enjoyment of the residences by, persons residing in
          the immediate vicinity of the premises; or
            (iii) is drug-related or violent criminal activity.
      (7) Leases and tenancy
        Each housing assistance payment contract entered into by the
      public housing agency and the owner of a dwelling unit - 
          (A) shall provide that the lease between the tenant and the
        owner shall be for a term of not less than 1 year, except that
        the public housing agency may approve a shorter term for an
        initial lease between the tenant and the dwelling unit owner if
        the public housing agency determines that such shorter term
        would improve housing opportunities for the tenant and if such
        shorter term is considered to be a prevailing local market
        practice;
          (B) shall provide that the dwelling unit owner shall offer
        leases to tenants assisted under this subsection that - 
            (i) are in a standard form used in the locality by the
          dwelling unit owner; and
            (ii) contain terms and conditions that - 
              (I) are consistent with State and local law; and
              (II) apply generally to tenants in the property who are
            not assisted under this section;

          (C) shall provide that during the term of the lease, the
        owner shall not terminate the tenancy except for serious or
        repeated violation of the terms and conditions of the lease,
        for violation of applicable Federal, State, or local law, or
        for other good cause, and that an incident or incidents of
        actual or threatened domestic violence, dating violence, or
        stalking shall not be construed as a serious or repeated
        violation of the lease by the victim or threatened victim of
        that violence and shall not be good cause for terminating the
        tenancy or occupancy rights of the victim of such violence;
          (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; except that
        (i) criminal activity directly relating to domestic violence,
        dating violence, or stalking, engaged in by a member of a
        tenant's household or any guest or other person under the
        tenant's control shall not be cause for termination of the
        tenancy or occupancy rights, if the tenant or immediate member
        of the tenant's family is a victim of that domestic violence,
        dating violence, or stalking; (ii) Limitation. -
        Notwithstanding (!7) clause (i) or any Federal, State, or local
        law to the contrary, a public housing agency may terminate
        assistance to, or an owner or manager may bifurcate a lease
        under this section, or remove a household member from a lease
        under this section, without regard to whether a household
        member is a signatory to a lease, in order to evict, remove,
        terminate occupancy rights, or terminate assistance to any
        individual who is a tenant or lawful occupant and who engages
        in criminal acts of physical violence against family members or
        others, without evicting, removing, terminating assistance to,
        or otherwise penalizing the victim of such violence who is also
        a tenant or lawful occupant. Such eviction, removal,
        termination of occupancy rights, or termination of assistance
        shall be effected in accordance with the procedures prescribed
        by Federal, State, and local law for the termination of leases
        or assistance under the relevant program of HUD-assisted
        housing.(!8) (iii) nothing in clause (i) may be construed to
        limit the authority of a public housing agency, owner, or
        manager, when notified, to honor court orders addressing rights
        of access or control of the property, including civil
        protection orders issued to protect the victim and issued to
        address the distribution or possession of property among the
        household members in cases where a family breaks up; (iv)
        nothing in clause (i) limits any otherwise available authority
        of an owner or manager to evict or the public housing agency to
        terminate assistance to a tenant for any violation of a lease
        not premised on the act or acts of violence in question against
        the tenant or a member of the tenant's household, provided that
        the owner, manager, or public housing agency does not subject
        an individual who is or has been a victim of domestic violence,
        dating violence, or stalking to a more demanding standard than
        other tenants in determining whether to evict or terminate; (v)
        nothing in clause (i) may be construed to limit the authority
        of an owner or manager to evict, or the public housing agency
        to terminate assistance to (!9) any tenant if the owner,
        manager, or public housing agency can demonstrate an actual and
        imminent threat to other tenants or those employed at or
        providing service to the property if that tenant is not evicted
        or terminated from assistance; and (vi) nothing in this section
        shall be construed to supersede any provision of any Federal,
        State, or local law that provides greater protection than this
        section for victims of domestic violence, dating violence, or
        stalking.; (!10)




          (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 PHAs
        (A) In general
          Except as provided in paragraph (11), for each dwelling unit
        for which a housing assistance payment contract is established
        under this subsection, the public housing agency shall inspect
        the unit before any assistance payment is made to determine
        whether the dwelling unit meets the housing quality standards
        under subparagraph (B).
        (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 (!11)

        (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) Annual inspections
          Each public housing agency providing assistance under this
        subsection (or other entity, as provided in paragraph (11))
        shall make an annual inspection of each assisted dwelling unit
        during the term of the housing assistance payments contract for
        the unit to determine whether the unit is maintained in
        accordance with the requirements under subparagraph (A). The
        agency (or other entity) shall retain the records of the
        inspection for a reasonable time and shall make the records
        available upon request to the Secretary, the Inspector General
        for the Department of Housing and Urban Development, and any
        auditor conducting an audit under section 1437c(h) of this
        title.
        (E) 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.
      (11) Leasing of units owned by PHA
        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.
      (12) Assistance for rental of manufactured housing
        (A) In general
          A public housing agency may make assistance payments in
        accordance with this subsection on behalf of a family that
        utilizes a manufactured home as a principal place of residence.
        Such payments may be made only for the rental of the real
        property on which the manufactured home owned by any such
        family is located.
        (B) Rent calculation
          (i) Charges included
            For assistance pursuant to this paragraph, the rent for the
          space on which a manufactured home is located and with
          respect to which assistance payments are to be made shall
          include maintenance and management charges and tenant-paid
          utilities.
          (ii) Payment standard
            The public housing agency shall establish a payment
          standard for the purpose of determining the monthly
          assistance that may be paid for any family under this
          paragraph. The payment standard may not exceed an amount
          approved or established by the Secretary.
          (iii) Monthly assistance payment
            The monthly assistance payment for a family assisted under
          this paragraph shall be determined in accordance with
          paragraph (2).
      (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 structure, that
        is attached to the structure, subject to the limitations and
        requirements of this paragraph.
        (B) Percentage limitation
          Not more than 20 percent of the funding available for tenant-
        based assistance under this section that is administered by
        the agency may be attached to structures pursuant to this
        paragraph.
        (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 1437c-1 of this title; and
            (ii) the goal of deconcentrating poverty and expanding
          housing and economic opportunities.
        (D) Income mixing requirement
          (i) In general
            Not more than 25 percent of the dwelling units in any
          building may be assisted under a housing assistance payment
          contract for project-based assistance pursuant to this
          paragraph.
          (ii) Exceptions
            The limitation under clause (i) shall not apply in the case
          of assistance under a contract for housing consisting of
          single family properties or for dwelling units that are
          specifically made available for households comprised of
          elderly families, disabled families, and families receiving
          supportive services.
        (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
          A housing assistance payment contract pursuant to this
        paragraph between a public housing agency and the owner of a
        structure may have a term of up to 10 years, subject to the
        availability of sufficient appropriated funds for the purpose
        of renewing expiring contracts for assistance payments, as
        provided in appropriations Acts and in the agency's annual
        contributions contract with the Secretary, and to annual
        compliance with the inspection requirements under paragraph
        (8), except that the agency shall not be required to make
        annual inspections of each assisted unit in the development.
        The contract may specify additional conditions for its
        continuation. If the units covered by the contract are owned by
        the agency, the term of the contract shall be agreed upon by
        the agency and the unit of general local government or other
        entity approved by the Secretary in the manner provided under
        paragraph (11).
        (G) Extension of contract term
          A public housing agency may enter into a contract with the
        owner of a structure 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 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.
        (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 title 26
        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. 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 shall provide for rent adjustments, except that - 
            (i) the adjusted rent for any unit assisted shall be
          reasonable in comparison with rents charged for comparable
          dwelling units in the private, unassisted, local market and
          may not exceed the maximum rent permitted under subparagraph
          (H); and
            (ii) the provisions of subsection (c)(2)(C) of this section
          shall not apply.
        (J) Tenant selection
          A public housing agency shall select families to receive
        project-based assistance pursuant to this paragraph from its
        waiting list for assistance under this subsection. Eligibility
        for such project-based assistance shall be subject to the
        provisions of section 1437n(b) of this title that apply to
        tenant-based assistance. The agency may establish preferences
        or criteria for selection for a unit assisted under this
        paragraph that are consistent with the public housing agency
        plan for the agency approved under section 1437c-1 of this
        title. Any family that rejects an offer of project-based
        assistance under this paragraph or that is rejected for
        admission to a structure by the owner or manager of a structure
        assisted under this paragraph shall retain its place on the
        waiting list as if the offer had not been made. The owner or
        manager of a structure assisted under this paragraph shall not
        admit any family to a dwelling unit assisted under a contract
        pursuant to this paragraph other than a family referred by the
        public housing agency from its waiting list. Subject to its
        waiting list policies and selection preferences, a public
        housing agency may place on its waiting list a family referred
        by the owner or manager of a structure and may maintain a
        separate waiting list for assistance under this paragraph, but
        only if all families on the agency's waiting list for
        assistance under this subsection are permitted to place their
        names on the separate list.
        (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.
      (14) Inapplicability to tenant-based assistance
        Subsection (c) of this section 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) of this section.
        (B) Alternative administration
          A public housing agency may contract with a nonprofit
        organization to administer a homeownership program under
        subsection (y) of this section.
      (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)
          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 [42 U.S.C. 3601 et seq.].
      (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).
        (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) Prohibited basis for termination of assistance
        (A) In general
          A public housing agency may not terminate assistance to a
        participant in the voucher program on the basis of an incident
        or incidents of actual or threatened domestic violence, dating
        violence, or stalking against that participant.
        (B) Construal of lease provisions
          Criminal activity directly relating to domestic violence,
        dating violence, or stalking shall not be considered a serious
        or repeated violation of the lease by the victim or threatened
        victim of that criminal activity justifying termination of
        assistance to the victim or threatened victim.
        (C) Termination on the basis of criminal activity
          Criminal activity directly relating to domestic violence,
        dating violence, or stalking shall not be considered cause for
        termination of assistance for any participant or immediate
        member of a participant's family who is a victim of the
        domestic violence, dating violence, or stalking.
        (D) Exceptions
          (i) Public housing authority right to terminate for criminal
            acts
            Nothing in subparagraph (A), (B), or (C) may be construed
          to limit the authority of the public housing agency to
          terminate voucher assistance to individuals who engage in
          criminal acts of physical violence against family members or
          others.
          (ii) Compliance with court orders
            Nothing in subparagraph (A), (B), or (C) may be construed
          to limit the authority of a public housing agency, when
          notified, to honor court orders addressing rights of access
          to or control of the property, including civil protection
          orders issued to protect the victim and issued to address the
          distribution or possession of property among the household
          members in cases where a family breaks up.
          (iii) Public housing authority right to terminate voucher
            assistance for lease violations
            Nothing in subparagraph (A), (B), or (C) limit (!12) any
          otherwise available authority of the public housing agency to
          terminate voucher assistance to a tenant for any violation of
          a lease not premised on the act or acts of violence in
          question against the tenant or a member of the tenant's
          household, provided that the public housing agency does not
          subject an individual who is or has been a victim of domestic
          violence, dating violence, or stalking to a more demanding
          standard than other tenants in determining whether to
          terminate.

          (iv) Public housing authority right to terminate voucher
            assistance for imminent threat
            Nothing in subparagraph (A), (B), or (C) may be construed
          to limit the authority of the public housing agency to
          terminate voucher assistance to a tenant if the public
          housing agency can demonstrate an actual and imminent threat
          to other tenants or those employed at or providing service to
          the property or public housing agency if that tenant is not
          evicted or terminated from assistance.
          (v) Preemption
            Nothing in this section shall be construed to supersede any
          provision of any Federal, State, or local law that provides
          greater protection than this section for victims of domestic
          violence, dating violence, or stalking.
    (p) Shared housing for elderly and handicapped
      In order to assist elderly families (as defined in section
    1437a(b)(3) of this title 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
    cost 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 subsection
            (c) of this section (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 this chapter (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) of this section 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) of this section
    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) of this section 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 [42 U.S.C. 1437f] 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) Prohibition of denial of certificates and vouchers to residents
      of public housing
      In selecting families for the provision of assistance under this
    section (including subsection (o) of this section), 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) of this section,
      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) of this section 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) of
        this section 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) of
        this section 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 income of the assisted family declines to a
        significant extent, the percentage of income paid by the family
        for rent shall not exceed the greater of 30 percent or the
        percentage of 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 this section 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
      4113(f) of title 12, or section 1715z-1a(p) of title 12, 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 October 20,
          1999.
      (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) Assistance for residents of rental rehabilitation projects
      In the case of low-income families living in rental projects
    rehabilitated under section 1437o (!13) of this title or section
    1490m of this title 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) Extension of expiring contracts
      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.
    (w) Repealed. Pub. L. 106-74, title V, Sec. 531(d)(2), Oct. 20,
      1999, 113 Stat. 1116
    (x) Family unification
      (1) Increase in budget authority
        The budget authority available under section 1437c(c) of this
      title for assistance under subsection (b) of this section 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 this
      section 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 18 months,
      otherwise eligible youths who have attained at least 18 years of
      age and not more than 21 years of age and who have left foster
      care 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 the 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) 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
        this section.
        (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) (!14) of this
        section 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) (!14) 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 chapter 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 [12 U.S.C. 1701 et seq.], 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 1437u(d)(3) (!14) of this title
        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 [12 U.S.C. 1701 et seq.], 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) "First-time homeowner" defined
        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 1437f 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) Omitted
    (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 this subchapter 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 chapter, 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 chapter.
      (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.
    (ee) Certification and confidentiality
      (1) Certification
        (A) In general
          An owner, manager, or public housing agency responding to
        subsections (c)(9), (d)(1)(B)(ii), (d)(1)(B)(iii), (o)(7)(C),
        (o)(7)(D), (o)(20), and (r)(5) of this section may request that
        an individual certify via a HUD approved certification form
        that the individual is a victim of domestic violence, dating
        violence, or stalking, and that the incident or incidents in
        question are bona fide incidents of such actual or threatened
        abuse and meet the requirements set forth in the aforementioned
        paragraphs. Such certification shall include the name of the
        perpetrator. The individual shall provide such certification
        within 14 business days after the individual receives a request
        for such certification from the owner, manager, or public
        housing agency.
        (B) Failure to provide certification
          If the individual does not provide the certification within
        14 business days after the individual has received a request in
        writing for such certification for the owner, manager, or
        public housing agency, nothing in this subsection or in
        subsection (c)(9), (d)(1)(B)(ii), (d)(1)(B)(iii), (o)(7)(C),
        (o)(7)(D), (o)(20), or (r)(5) of this section may be construed
        to limit the authority of an owner or manager to evict, or the
        public housing agency or assisted housing provider to terminate
        voucher assistance for, any tenant or lawful occupant that
        commits violations of a lease. The owner, manager or public
        housing agency may extend the 14-day deadline at their
        discretion.
        (C) Contents
          An individual may satisfy the certification requirement of
        subparagraph (A) by - 
            (i) providing the requesting owner, manager, or public
          housing agency with documentation signed by an employee,
          agent, or volunteer of a victim service provider, an
          attorney, or a medical professional, from whom the victim has
          sought assistance in addressing domestic violence, dating
          violence, or stalking, or the effects of the abuse, in which
          the professional attests under penalty of perjury (28 U.S.C.
          1746) to the professional's belief that the incident or
          incidents in question are bona fide incidents of abuse, and
          the victim of domestic violence, dating violence, or stalking
          has signed or attested to the documentation; or
            (ii) producing a Federal, State, tribal, territorial, or
          local police or court record.
        (D) Limitation
          Nothing in this subsection shall be construed to require an
        owner, manager, or public housing agency to demand that an
        individual produce official documentation or physical proof of
        the individual's status as a victim of domestic violence,
        dating violence, or stalking in order to receive any of the
        benefits provided in this section. At their discretion, the
        owner, manager, or public housing agency may provide benefits
        to an individual based solely on the individual's statement or
        other corroborating evidence.
        (E) Compliance not sufficient to constitute evidence of
          unreasonable act
          Compliance with this statute by an owner, manager or public
        housing agency based on the certification specified in
        paragraphs (1)(A) and (B) of this subsection or based solely on
        the victim's statement or other corroborating evidence, as
        permitted by paragraph (1)(C) of this subsection, shall not
        alone be sufficient to constitute evidence of an unreasonable
        act or omission by an owner, manager or public housing agency,
        or employee thereof. Nothing in this subparagraph shall be
        construed to limit liability for failure to comply with the
        requirements of subsection (c)(9), (d)(1)(B)(ii),
        (d)(1)(B)(iii), (o)(7)(C), (o)(7)(D), (o)(20), or (r)(5) of
        this section.
        (F) Preemption
          Nothing in this section shall be construed to supersede any
        provision of any Federal, State, or local law that provides
        greater protection than this section for victims of domestic
        violence, dating violence, or stalking.
      (2) Confidentiality
        (A) In general
          All information provided to an owner, manager, or public
        housing agency pursuant to paragraph (1), including the fact
        that an individual is a victim of domestic violence, dating
        violence, or stalking, shall be retained in confidence by an
        owner, manager, or public housing agency, and shall neither be
        entered into any shared database nor provided to any related
        entity, except to the extent that disclosure is - 
            (i) requested or consented to by the individual in writing;
            (ii) required for use in an eviction proceeding under
          subsection (c)(9), (d)(1)(B(ii),(!15) (d)(1)(B)(iii),
          (o)(7)(C), (o)(7)(D), or (o)(20) of this section,; (!16) or


            (iii) otherwise required by applicable law.
        (B) Notification
          Public housing agencies must provide notice to tenants
        assisted under this section of their rights under this
        subsection and subsections (c)(9), (d)(1)(B(ii),(!15)
        (d)(1)(B)(iii), (o)(7)(C), (o)(7)(D), (o)(20), and (r)(5) of
        this section, including their right to confidentiality and the
        limits thereof, and to owners and managers of their rights and
        obligations under this subsection and subsections (c)(9),
        (d)(1)(B(ii),(!15) (d)(1)(B)(iii), (o)(7)(C), (o)(7)(D),
        (o)(20), and (r)(5) of this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 8, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 662; amended Pub. L.
    94-375, Sec. 2(d), (e), (g), Aug. 3, 1976, 90 Stat. 1068; Pub. L.
    95-24, title I, Sec. 101(c), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95-
    128, title II, Sec. 201(c)-(e), Oct. 12, 1977, 91 Stat. 1128; Pub.
    L. 95-557, title II, Sec. 206(d)(1), (e), (f), Oct. 31, 1978, 92
    Stat. 2091, 2092; Pub. L. 96-153, title II, Secs. 202(b), 206(b),
    210, 211(b), Dec. 21, 1979, 93 Stat. 1106, 1108-1110; Pub. L. 96-
    399, title II, Sec. 203, title III, Sec. 308(c)(3), Oct. 8, 1980,
    94 Stat. 1629, 1641; Pub. L. 97-35, title III, Secs. 322(e), 324-
    326(a), (e)(1), 329H(a), Aug. 13, 1981, 95 Stat. 402, 405-407,
    410; Pub. L. 98-181, title II, Secs. 203(b)(1), (2), 207-209(a),
    210, 211, Nov. 30, 1983, 97 Stat. 1178, 1181-1183; Pub. L. 98-479,
    title I, Sec. 102(b)(6)-(10), Oct. 17, 1984, 98 Stat. 2221, 2222;
    Pub. L. 100-242, title I, Secs. 141-149, title II, Sec. 262, Feb.
    5, 1988, 101 Stat. 1849-1853, 1890; renumbered title I, Pub. L. 100-
    358, Sec. 5, June 29, 1988, 102 Stat. 681; Pub. L. 100-628, title
    X, Secs. 1004(a), 1005(b)(1), (c), 1006, 1014(b), (c), 1029, Nov.
    7, 1988, 102 Stat. 3264, 3265, 3269, 3272; Pub. L. 101-235, title
    I, Sec. 127, title VIII, Sec. 801(c), (g), Dec. 15, 1989, 103 Stat.
    2025, 2058, 2059; Pub. L. 101-625, title II, Sec. 289(b), title IV,
    Sec. 413, title V, Secs. 541-545(a), 545(2)[(b)], 546-549, 550(a),
    (c), 551-553, 572, title VI, Secs. 603, 613(a), Nov. 28, 1990, 104
    Stat. 4128, 4160, 4216-4224, 4236, 4277, 4280; Pub. L. 102-139,
    title II, Oct. 28, 1991, 105 Stat. 756; Pub. L. 102-550, title I,
    Secs. 141-148, 185(a), title VI, Secs. 623(b), 660, 674, 675,
    682(b), title X, Sec. 1012(g), Oct. 28, 1992, 106 Stat. 3713-3715,
    3745, 3819, 3825, 3827, 3828, 3830, 3905; Pub. L. 103-233, title I,
    Sec. 101(c)(2), (3), (d), Apr. 11, 1994, 108 Stat. 357; Pub. L. 103-
    327, title II, Sept. 28, 1994, 108 Stat. 2315; Pub. L. 104-19,
    title I, Sec. 1003, July 27, 1995, 109 Stat. 236; Pub. L. 104-99,
    title IV, Secs. 402(d)(2), (3), (6)(A)(iii), (iv), 405(c), Jan. 26,
    1996, 110 Stat. 41, 42, 44; Pub. L. 104-134, title I, Sec. 101(e)
    [title II, Secs. 203(a)-(c), 208], Apr. 26, 1996, 110 Stat. 1321-
    257, 1321-281, 1321-284; renumbered title I, Pub. L. 104-140, Sec.
    1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 104-193, title IX, Sec.
    903(a)(2), Aug. 22, 1996, 110 Stat. 2348; Pub. L. 104-204, title
    II, Sec. 201(g), Sept. 26, 1996, 110 Stat. 2893; Pub. L. 105-18,
    title II, Sec. 10002, June 12, 1997, 111 Stat. 201; Pub. L. 105-33,
    title II, Secs. 2003, 2004, Aug. 5, 1997, 111 Stat. 257; Pub. L.
    105-65, title II, Secs. 201(c), 205, title V, Sec. 523(a), (c),
    Oct. 27, 1997, 111 Stat. 1364, 1365, 1406, 1407; Pub. L. 105-276,
    title II, Sec. 209(a), title V, Secs. 514(b)(1), 545(a), (b), 547-
    549(a)(2), (b), 550(a), 552-555(a), 556(a), 565(c), Oct. 21, 1998,
    112 Stat. 2485, 2547, 2596-2607, 2609-2611, 2613, 2631; Pub. L. 106-
    74, title II, Sec. 223, title V, Secs. 523(a), 531(d), 535,
    538(a), Oct. 20, 1999, 113 Stat. 1076, 1104, 1116, 1121, 1122; Pub.
    L. 106-246, div. B, title II, Sec. 2801, July 13, 2000, 114 Stat.
    569; Pub. L. 106-377, Sec. 1(a)(1) [title II, Secs. 205, 228,
    232(a), 234], Oct. 27, 2000, 114 Stat. 1441, 1441A-24, 1441A-30,
    1441A-31, 1441A-35; Pub. L. 106-569, title III, Sec. 301(a), title
    IX, Secs. 902(a), 903(a), Dec. 27, 2000, 114 Stat. 2952, 3026; Pub.
    L. 107-95, Sec. 12, Dec. 21, 2001, 115 Stat. 921; Pub. L. 107-116,
    title VI, Sec. 632, Jan. 10, 2002, 115 Stat. 2227; Pub. L. 109-162,
    title VI, Sec. 606, Jan. 5, 2006, 119 Stat. 3041; Pub. L. 109-271,
    Sec. 5(d), (e), Aug. 12, 2006, 120 Stat. 759; Pub. L. 109-461,
    title VII, Sec. 710, Dec. 22, 2006, 120 Stat. 3441.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsecs. (f)(4) and (o)(4)(D), is Pub. L. 101-625, Nov. 28,
    1990, 104 Stat. 4079. Title II of the Act, also known as the "HOME
    Investment Partnerships Act", is classified principally to
    subchapter II (Sec. 12721 et seq.) of chapter 130 of this title.
    Title IV of the Act, also known as the "Homeownership and
    Opportunity Through HOPE Act", enacted subchapter II-A (Sec.
    1437aaa et seq.) of this chapter and subchapter IV (Sec. 12871 et
    seq.) of chapter 130 of this title, amended sections 1437c, 1437f,
    1437l, 1437p, 1437r, and 1437s of this title and section 1709 of
    Title 12, Banks and Banking, and enacted provisions set out as
    notes under sections 1437c, 1437aa, and 1437aaa of this title. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 12701 of this title and Tables.
      The Housing and Community Development Act of 1992, referred to in
    subsec. (d)(2)(C), (D), is Pub. L. 102-550, Oct. 28, 1992, 106
    Stat. 3672. Subtitle C of title VI of the Act is classified
    generally to subchapter I (Sec. 13601 et seq.) of chapter 135 of
    this title. Subtitle D of title VI of the Act is classified
    principally to subchapter II (Sec. 13611 et seq.) of chapter 135 of
    this title. For complete classification of this Act to the Code,
    see Short Title of 1992 Amendment note set out under section 5301
    of this title and Tables.
      Sections 514 and 517 of the Multifamily Assisted Housing Reform
    and Affordability Act of 1997, referred to in subsecs. (d)(5) and
    (bb)(2), are sections 514 and 517 of Pub. L. 105-65, and are set
    out as a note under this section.
      The Social Security Act, referred to in subsec. (k), is act Aug.
    14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified
    generally to chapter 7 (Sec. 301 et seq.) of this title. For
    complete classification of this Act to the Code, see section 1305
    of this title and Tables.
      The Food Stamp Act of 1977, referred to in subsec. (k), is Pub.
    L. 88-525, Aug. 31, 1964, 78 Stat. 703, as amended, which is
    classified generally to chapter 51 (Sec. 2011 et seq.) of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see Short Title note set out under 2011 of Title 7 and Tables.
      The Fair Housing Act, referred to in subsec. (o)(17), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (q)(1)(B)(ii)(I), (2)(A), is
    section 503(a) of Pub. L. 105-276, which is set out as an Effective
    Date of 1998 Amendment note under section 1437 of this title.
      The effective date of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, referred to in subsec. (t)(2), means the
    effective date of H.R. 5482, as enacted by section 1(a)(1) of Pub.
    L. 106-377, which was approved Oct. 27, 2000.
      Section 1437o of this title, referred to in subsec. (u), was
    repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,
    104 Stat. 4128.
      Subsection (o)(8)(A) of this section, referred to in subsec.
    (y)(3)(B), does not contain a cl. (ii) and does not relate to
    annual inspections. For provisions of subsec. (o)(8) which relate
    to annual inspections, see subpar. (D).
      Subsection (c)(3)(B) of this section, referred to in subsec.
    (y)(5), was repealed by Pub. L. 105-276, title V, Sec.
    550(a)(3)(A)(ii), Oct. 21, 1998, 112 Stat. 2609.
      The National Housing Act, referred to in subsec. (y)(6), is act
    June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is
    classified principally to chapter 13 (Sec. 1701 et seq.) of Title
    12, Banks and Banking. For complete classification of this Act to
    the Code, see section 1701 of Title 12 and Tables.
      Section 1437u(d)(3) of this title, relating to reimbursement of
    escrow accounts, referred to in subsec. (y)(6)(A), was repealed by
    Pub. L. 105-276, title V, Sec. 509(a)(2), Oct. 21, 1998, 112 Stat.
    2531.

-COD-
                               CODIFICATION                           
      October 20, 1999, referred to in subsec. (t)(3)(B)(ii), was in
    the original "the enactment of this Act", which was translated as
    meaning the enactment of Pub. L. 106-74, which enacted subsec. (t)
    of this section, to reflect the probable intent of Congress.
      Section 203(a) of Pub. L. 100-242, as amended, which was formerly
    set out in a note under section 1715l of Title 12, Banks and
    Banking, and which provided that on Nov. 28, 1990, the amendment
    made by section 262 of Pub. L. 100-242 is repealed and section is
    to read as it would without such amendment, was omitted in the
    general amendment of subtitle A of title II of Pub. L. 100-242 by
    Pub. L. 101-625.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 8 of act Sept. 1, 1937, ch. 896, 50 Stat. 891, as
    amended, authorized promulgation of rules and regulations by the
    Authority and was classified to section 1408 of this title, prior
    to the general revision of this chapter by Pub. L. 93-383.

                                AMENDMENTS                            
      2006 - Subsec. (c)(9). Pub. L. 109-162, Sec. 606(1), added par.
    (9).
      Subsec. (c)(9)(C)(ii). Pub. L. 109-271, Sec. 5(e)(1), added cl.
    (ii) and struck out former cl. (ii) which read as follows:
    "Notwithstanding clause (i), an owner or manager may bifurcate a
    lease under this section, in order to evict, remove, or terminate
    assistance to any individual who is a tenant or lawful occupant and
    who engages in criminal acts of physical violence against family
    members or others, without evicting, removing, terminating
    assistance to, or otherwise penalizing the victim of such violence
    who is also a tenant or lawful occupant."
      Subsec. (d)(1)(A). Pub. L. 109-271, Sec. 5(d), amended subpar.
    (A) generally. Prior to amendment, subpar. (A) read as follows:
    "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 1437c-1 of this title by the public housing
    agency and that an applicant or participant is or has been a victim
    of domestic violence, dating violence, or stalking is not an
    appropriate basis for denial of program assistance or for denial of
    admission if the applicant otherwise qualifies for assistance or
    admission;".
      Pub. L. 109-162, Sec. 606(2)(A), which directed insertion of "and
    that an applicant or participant is or has been a victim of
    domestic violence, dating violence, or stalking is not an
    appropriate basis for denial of program assistance or for denial of
    admission if the applicant otherwise qualifies for assistance or
    admission" after "public housing agency", was executed by making
    the insertion after "public housing agency" the last place
    appearing to reflect the probable intent of Congress.
      Subsec. (d)(1)(B)(ii). Pub. L. 109-162, Sec. 606(2)(B), inserted
    ", and that an incident or incidents of actual or threatened
    domestic violence, dating violence, or stalking will not be
    construed as a serious or repeated violation of the lease by the
    victim or threatened victim of that violence and will not be good
    cause for terminating the tenancy or occupancy rights of the victim
    of such violence" before semicolon at end.
      Subsec. (d)(1)(B)(iii). Pub. L. 109-162, Sec. 606(2)(C), inserted
    before semicolon at end ", except that: (I) criminal activity
    directly relating to domestic violence, dating violence, or
    stalking, engaged in by a member of a tenant's household or any
    guest or other person under the tenant's control, shall not be
    cause for termination of the tenancy or occupancy rights or program
    assistance, if the tenant or immediate member of the tenant's
    family is a victim of that domestic violence, dating violence, or
    stalking; (II) notwithstanding subclause (I), a public housing
    agency may terminate assistance to any individual who is a tenant
    or lawful occupant and who engages in criminal acts of physical
    violence against family members or others, or an owner or manager
    under this section may bifurcate a lease, in order to evict,
    remove, or terminate assistance to any individual who is a tenant
    or lawful occupant and who engages in criminal acts of physical
    violence against family members or others, without evicting,
    removing, terminating assistance to, or otherwise penalizing the
    victim of such violence who is also a tenant or lawful occupant;
    (III) nothing in subclause (I) may be construed to limit the
    authority of a public housing agency, owner, or manager, when
    notified, to honor court orders addressing rights of access to or
    control of the property, including civil protection orders issued
    to protect the victim and issued to address the distribution or
    possession of property among the household members in cases where a
    family breaks up; (IV) nothing in subclause (I) limits any
    otherwise available authority of an owner or manager to evict or
    the public housing agency to terminate assistance to a tenant for
    any violation of a lease not premised on the act or acts of
    violence in question against the tenant or a member of the tenant's
    household, provided that the owner, manager, or public housing
    agency does not subject an individual who is or has been a victim
    of domestic violence, dating violence, or stalking to a more
    demanding standard than other tenants in determining whether to
    evict or terminate; (V) nothing in subclause (I) may be construed
    to limit the authority of an owner or manager to evict, or the
    public housing agency to terminate assistance, to any tenant if the
    owner, manager, or public housing agency can demonstrate an actual
    and imminent threat to other tenants or those employed at or
    providing service to the property if that tenant is not evicted or
    terminated from assistance; and (VI) nothing in this section shall
    be construed to supersede any provision of any Federal, State, or
    local law that provides greater protection than this section for
    victims of domestic violence, dating violence, or stalking."
      Subsec. (d)(1)(B)(iii)(II). Pub. L. 109-271, Sec. 5(e)(2), added
    subcl. (II) and struck out former subcl. (II) which read as
    follows: "notwithstanding subclause (I), a public housing agency
    may terminate assistance to any individual who is a tenant or
    lawful occupant and who engages in criminal acts of physical
    violence against family members or others, or an owner or manager
    under this section may bifurcate a lease, in order to evict,
    remove, or terminate assistance to any individual who is a tenant
    or lawful occupant and who engages in criminal acts of physical
    violence against family members or others, without evicting,
    removing, terminating assistance to, or otherwise penalizing the
    victim of such violence who is also a tenant or lawful occupant;".
      Subsec. (f)(8). Pub. L. 109-162, Sec. 606(3), added par. (8).
      Subsec. (f)(9). Pub. L. 109-271, Sec. 5(e)(3)(A), struck out
    "and" after semicolon at end.
      Pub. L. 109-162, Sec. 606(3), added par. (9).
      Subsec. (f)(10). Pub. L. 109-162, Sec. 606(3), added par. (10).
      Subsec. (f)(10)(A)(i). Pub. L. 109-271, Sec. 5(e)(3)(B),
    substituted "or" for "and" at end.
      Subsec. (f)(11). Pub. L. 109-162, Sec. 606(3), added par. (11).
      Subsec. (f)(11)(B). Pub. L. 109-271, Sec. 5(e)(3)(C), substituted
    "blood or marriage" for "blood and marriage".
      Subsec. (o)(6)(B). Pub. L. 109-271, Sec. 5(e)(4)(A)(iii), which
    directed the substitution of "admission. Nothing" for "admission,
    and that nothing" in second sentence, was executed by making the
    substitution in third sentence, to reflect the probable intent of
    Congress.
      Pub. L. 109-271, Sec. 5(e)(4)(A)(ii), which directed the
    substitution of "for admission or" for "for admission for" in
    second sentence, was executed by substituting "for assistance or"
    for "for assistance for" in third sentence, to reflect the probable
    intent of Congress.
      Pub. L. 109-271, Sec. 5(e)(4)(A)(i), which directed amendment of
    second sentence of subpar. (B) by striking "by" after "denial of
    program assistance", was executed by striking that language in
    third sentence, to reflect the probable intent of Congress.
      Pub. L. 109-162, Sec. 606(4)(A), inserted "That an applicant or
    participant is or has been a victim of domestic violence, dating
    violence, or stalking is not an appropriate basis for denial of
    program assistance by or for denial of admission if the applicant
    otherwise qualifies for assistance for admission, and that nothing
    in this section shall be construed to supersede any provision of
    any Federal, State, or local law that provides greater protection
    than this section for victims of domestic violence, dating
    violence, or stalking." at end.
      Subsec. (o)(7)(C). Pub. L. 109-162, Sec. 606(4)(B), inserted ",
    and that an incident or incidents of actual or threatened domestic
    violence, dating violence, or stalking shall not be construed as a
    serious or repeated violation of the lease by the victim or
    threatened victim of that violence and shall not be good cause for
    terminating the tenancy or occupancy rights of the victim of such
    violence" before semicolon at end.
      Subsec. (o)(7)(D). Pub. L. 109-162, Sec. 606(4)(C), inserted at
    end "; except that (i) criminal activity directly relating to
    domestic violence, dating violence, or stalking, engaged in by a
    member of a tenant's household or any guest or other person under
    the tenant's control shall not be cause for termination of the
    tenancy or occupancy rights, if the tenant or immediate member of
    the tenant's family is a victim of that domestic violence, dating
    violence, or stalking; (ii) notwithstanding clause (i), a public
    housing agency may terminate assistance to any individual who is a
    tenant or lawful occupant and who engages in criminal acts of
    physical violence against family members or others, or an owner or
    manager may bifurcate a lease under this section, in order to
    evict, remove, or terminate assistance to any individual who is a
    tenant or lawful occupant and who engages in criminal acts of
    physical violence against family members or others, without
    evicting, removing, terminating assistance to, or otherwise
    penalizing the victim of such violence who is also a tenant or
    lawful occupant; (iii) nothing in clause (i) may be construed to
    limit the authority of a public housing agency, owner, or manager,
    when notified, to honor court orders addressing rights of access to
    control of the property, including civil protection orders issued
    to protect the victim and issued to address the distribution or
    possession of property among the household members in cases where a
    family breaks up; (iv) nothing in clause (i) limits any otherwise
    available authority of an owner or manager to evict or the public
    housing agency to terminate assistance to a tenant for any
    violation of a lease not premised on the act or acts of violence in
    question against the tenant or a member of the tenant's household,
    provided that the owner, manager, or public housing agency does not
    subject an individual who is or has been a victim of domestic
    violence, dating violence, or stalking to a more demanding standard
    than other tenants in determining whether to evict or terminate;
    (v) nothing in clause (i) may be construed to limit the authority
    of an owner or manager to evict, or the public housing agency to
    terminate, assistance to any tenant if the owner, manager, or
    public housing agency can demonstrate an actual and imminent threat
    to other tenants or those employed at or providing service to the
    property if that tenant is not evicted or terminated from
    assistance; and (vi) nothing in this section shall be construed to
    supersede any provision of any Federal, State, or local law that
    provides greater protection than this section for victims of
    domestic violence, dating violence, or stalking."
      Subsec. (o)(7)(D)(ii). Pub. L. 109-271, Sec. 5(e)(4)(B)(i), added
    cl. (ii) and struck out former cl. (ii) which read as follows:
    "notwithstanding clause (i), a public housing agency may terminate
    assistance to any individual who is a tenant or lawful occupant and
    who engages in criminal acts of physical violence against family
    members or others, or an owner or manager may bifurcate a lease
    under this section, in order to evict, remove, or terminate
    assistance to any individual who is a tenant or lawful occupant and
    who engages in criminal acts of physical violence against family
    members or others, without evicting, removing, terminating
    assistance to, or otherwise penalizing the victim of such violence
    who is also a tenant or lawful occupant;".
      Subsec. (o)(7)(D)(iii). Pub. L. 109-271, Sec. 5(e)(4)(B)(ii),
    substituted "access or control" for "access to control".
      Subsec. (o)(7)(D)(v). Pub. L. 109-271, Sec. 5(e)(4)(B)(iii),
    substituted "terminate" for "terminate,".
      Subsec. (o)(19)(B). Pub. L. 109-461 reenacted heading without
    change and amended text generally, substituting cls. (i) to (v)
    relating to amounts necessary to provide vouchers for rental
    assistance for fiscal years 2007 to 2011 for former cls. (i)
    through (iv) relating to amounts necessary to provide vouchers for
    rental assistance for fiscal years 2003 to 2006.
      Subsec. (o)(20). Pub. L. 109-162, Sec. 606(4)(D), added par.
    (20).
      Subsec. (o)(20)(D)(ii). Pub. L. 109-271, Sec. 5(e)(4)(C),
    substituted "distribution or" for "distribution".
      Subsec. (r)(5). Pub. L. 109-162, Sec. 606(5), inserted ", 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" before period at end.
      Subsec. (ee). Pub. L. 109-162, Sec. 606(6), added subsec. (ee).
      Subsec. (ee)(1)(A). Pub. L. 109-271, Sec. 5(e)(5)(A), substituted
    "the individual receives a request for such certification from the
    owner, manager, or public housing agency" for "the owner, manager,
    or public housing agency requests such certification".
      Subsec. (ee)(1)(B). Pub. L. 109-271, Sec. 5(e)(5)(B), substituted
    "the individual has received a request in writing for such
    certification for the owner, manager, or public housing agency" for
    "the owner, manager, public housing agency, or assisted housing
    provider has requested such certification in writing" and "The
    owner, manager or public housing" for "The owner, manager, public
    housing" and struck out ", or assisted housing provider" before
    "may extend the 14-day deadline".
      Subsec. (ee)(1)(C)(i). Pub. L. 109-271, Sec. 5(e)(5)(C), struck
    out "sexual assault," after "addressing domestic violence, dating
    violence,".
      Subsec. (ee)(1)(D). Pub. L. 109-271, Sec. 5(e)(5)(D), struck out
    "sexual assault," after "dating violence,".
      Subsec. (ee)(1)(E). Pub. L. 109-271, Sec. 5(e)(5)(E)(ii), struck
    out ", or assisted housing provider" in two places after "public
    housing agency".
      Pub. L. 109-271, Sec. 5(e)(5)(E)(i), which directed the
    substitution of "manager or public housing" for "manager, public
    housing" wherever appearing, was executed by making the
    substitution for "manager, public housing" and "manger, public
    housing", to reflect the probable intent of Congress.
      2002 - Subsec. (t)(2). Pub. L. 107-116 inserted "(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)" after "insurance
    contract for the mortgage for such housing project".
      2001 - Subsec. (o)(19). Pub. L. 107-95 added par. (19).
      2000 - Subsec. (o)(13). Pub. L. 106-377, Sec. 1(a)(1) [title II,
    Sec. 232(a)], reenacted heading without change and amended text
    generally, substituting subpars. (A) to (K) providing for funding
    percentage limitation, consistency of contracts with public housing
    agency plan and goals, income mixing requirement, resident choice
    requirement, contract term and its extension, rent calculation and
    adjustments, tenant selection, and vacated units for former
    subpars. (A) to (D) providing for extension of contract term, rent
    calculation, and adjusted rents.
      Subsec. (t)(1)(B). Pub. L. 106-569, Sec. 903(a), inserted before
    semicolon at end ", except that a limit shall not be considered
    reasonable for purposes of this subparagraph if it adversely
    affects such assisted families".
      Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 205], inserted "and
    any other reasonable limit prescribed by the Secretary" before
    semicolon at end.
      Pub. L. 106-246, which directed the substitution of "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," for "during any period that the assisted
    family continues residing in the same project in which the family
    was residing on the date of the eligibility event for the project,
    if" in section 538 of Pub. L. 106-74, was executed by making the
    substitution in subsec. (t)(1)(B) of this section, which was
    enacted by section 538 of Pub. L. 106-74, to reflect the probable
    intent of Congress.
      Subsec. (t)(2). Pub. L. 106-569, Sec. 902(a), substituted "fiscal
    year 1994" for "fiscal year 1996".
      Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 228], inserted
    "(including any such termination or expiration during fiscal years
    after fiscal year 1996 prior to the effective date of the
    Departments of Veterans Affairs and Housing and Urban Development,
    and Independent Agencies Appropriations Act, 2001)" after "contract
    for rental assistance under this section for such housing project".
      Subsec. (x)(2). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    234], substituted "(A) any family (i) who is otherwise eligible for
    such assistance, and (ii)" for "any family (A) who is otherwise
    eligible for such assistance, and (B)" and inserted before period
    at end "and (B) for a period not to exceed 18 months, otherwise
    eligible youths who have attained at least 18 years of age and not
    more than 21 years of age and who have left foster care at age 16
    or older".
      Subsec. (y)(7), (8). Pub. L. 106-569, Sec. 301(a), added par. (7)
    and redesignated former par. (7) as (8).
      1999 - Subsec. (c)(8)(A). Pub. L. 106-74, Sec. 535(1),
    substituted "termination of" for "terminating" after "Not less than
    one year before" and ". 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." for ", specifying the
    reasons for the termination with sufficient detail to enable the
    Secretary to evaluate whether the termination is lawful and whether
    there are additional actions that can be taken by the Secretary to
    avoid the termination. The owner's notice shall include a statement
    that the owner and the Secretary may agree to a renewal of the
    contract, thus avoiding the termination."
      Subsec. (c)(8)(B). Pub. L. 106-74, Sec. 535(2), (4), redesignated
    subpar. (C) as (B) and struck out former subpar. (B) which read as
    follows: "In the case of owner who has requested that the Secretary
    renew the contract, the owner's notice under subparagraph (A) to
    the tenants shall include statements that - 
        "(i) the owner currently has a contract with the Department of
      Housing and Urban Development that pays the Government's share of
      the tenant's rent and the date on which the contract will expire;
        "(ii) the owner intends to renew the contract for another year;
        "(iii) renewal of the contract may depend upon the Congress
      making funds available for such renewal;
        "(iv) the owner is required by law to notify tenants of the
      possibility that the contract may not be renewed if Congress does
      not provide funding for such renewals;
        "(v) in the event of nonrenewal, 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; and
        "(vi) the notice itself does not indicate an intent to
      terminate the contract by either the owner or the Department of
      Housing and Urban Development, provided there is Congressional
      approval of funding availability."
      Subsec. (c)(8)(C). Pub. L. 106-74, Sec. 535(4), redesignated
    subpar. (D) as (C). Former subpar. (C) redesignated (B).
      Pub. L. 106-74, Sec. 535(3), struck out "Notwithstanding the
    preceding provisions of this paragraph, if the owner agrees to a 5-
    year contract renewal offered by the Secretary, payments under
    which shall be subject to the availability of appropriations for
    any year, the owner shall provide a written notice to the Secretary
    and the tenants not less than 180 days before the termination of
    such contract." after "(C)" and "in the immediately preceding
    sentence" before ", the owner may not evict the tenants", struck
    out "180-day" before "notice" in two places, and substituted "1
    year has elapsed" for "such period has elapsed" and "1 year of
    advance notice" for "180 days of advance notice".
      Subsec. (c)(8)(D), (E). Pub. L. 106-74, Sec. 535(4), redesignated
    subpars. (D) and (E) as (C) and (D), respectively.
      Subsec. (o)(18). Pub. L. 106-74, Sec. 523(a), added par. (18).
      Subsec. (t). Pub. L. 106-74, Sec. 538(a), added subsec. (t).
      Subsec. (v). Pub. L. 106-74, Sec. 531(d)(1), designated sentence
    enacted by Pub. L. 104-99, Sec. 405(c), as subsec. (v).
      Subsec. (w). Pub. L. 106-74, Sec. 531(d)(2), struck out heading
    and text of subsec. (w). Text read as follows: "Not later than 30
    days after the beginning of each fiscal year, the Secretary shall
    publish in the Federal Register a plan for reducing, to the extent
    feasible, year-to-year fluctuations in the levels of budget
    authority that will be required over the succeeding 5-year period
    to renew expiring rental assistance contracts entered into under
    this section since August 22, 1974. To the extent necessary to
    carry out such plan and to the extent approved in appropriations
    Acts, the Secretary is authorized to enter into annual
    contributions contracts with terms of less than 60 months."
      Subsec. (z)(1). Pub. L. 106-74, Sec. 223(1), in introductory
    provisions, inserted "expiration or" after "on account of" and
    struck out "(other than a contract for tenant-based assistance)"
    after "payments contract".
      Subsec. (z)(3). Pub. L. 106-74, Sec. 223(2), struck out heading
    and text of par. (3). Text read as follows: "This subsection shall
    be effective for actions initiated by the Secretary on or before
    September 30, 1995."
      1998 - Subsec. (a). Pub. L. 105-276, Sec. 550(a)(1), struck out
    at end "A public housing agency may contract to make assistance
    payments to itself (or any agency or instrumentality thereof) as
    the owner of dwelling units if such agency is subject to the same
    program requirements as are applied to other owners. In such cases,
    the Secretary may establish initial rents within applicable
    limits."
      Subsec. (b). Pub. L. 105-276, Sec. 550(a)(2), substituted "Other"
    for "Rental certificates and other" in subsec. heading, inserted
    par. (1) designation and heading, and struck out after first
    sentence "The Secretary shall enter into a separate annual
    contributions contract with each public housing agency to obligate
    the authority approved each year, beginning with the authority
    approved in appropriations Acts for fiscal year 1988 (other than
    amendment authority to increase assistance payments being made
    using authority approved prior to the appropriations Acts for
    fiscal year 1988), and such annual contributions contract (other
    than for annual contributions under subsection (o) of this section)
    shall bind the Secretary to make such authority, and any amendments
    increasing such authority, available to the public housing agency
    for a specified period."
      Subsec. (c)(3). Pub. L. 105-276, Sec. 550(a)(3)(A), struck out
    "(A)" after par. designation, and struck out subpar. (B), which
    authorized payment of higher percentage of income as rent than that
    specified under section 1437a(a) of this title if family receiving
    tenant-based rental assistance notified public housing agency of
    its interest in a unit renting for an excess rent and agency
    determined that the rent was reasonable, and set forth provisions
    which limited agency approval of such excess rentals to 10 percent
    of annual allocation, required report to Secretary where such
    rentals exceeded 5 percent of allocation, and required Secretary to
    report to Congress annually on agencies which had submitted such
    reports and include recommendations deemed appropriate to correct
    problems identified in reports.
      Subsec. (c)(4). Pub. L. 105-276, Sec. 550(a)(3)(B), struck out
    "or by a family that qualifies to receive assistance under
    subsection (b) of this section pursuant to section 223 or 226 of
    the Low-Income Housing Preservation and Resident Homeownership Act
    of 1990" after "such dwelling unit" in first sentence.
      Subsec. (c)(5), (6). Pub. L. 105-276, Sec. 550(a)(3)(C), (D),
    redesignated par. (6) as (5) and struck out former par. (5) which
    read as follows: "Assistance payments may be made with respect to
    up to 100 per centum of the dwelling units in any structure upon
    the application of the owner or prospective owner. Within the
    category of projects containing more than fifty units and designed
    for use primarily by nonelderly and nonhandicapped persons which
    are not subject to mortgages purchased under section 305 of the
    National Housing Act, the Secretary may give preference to
    applications for assistance involving not more than 20 per centum
    of the dwelling units in a project. In according any such
    preference, the Secretary shall compare applications received
    during distinct time periods not exceeding sixty days in duration."
      Subsec. (c)(7). Pub. L. 105-276, Sec. 550(a)(3)(C), struck out
    par. (7) which read as follows: "To the extent authorized in
    contracts entered into by the Secretary with a public housing
    agency, such agency may purchase any structure containing one or
    more dwelling units assisted under this section for the purpose of
    reselling the structure to the tenant or tenants occupying units
    aggregating in value at least 80 per centum of the structure's
    total value. Any such resale may be made on the terms and
    conditions prescribed under section 1437c(h) of this title and
    subject to the limitation contained in such section."
      Subsec. (c)(8). Pub. L. 105-276, Sec. 549(b), redesignated par.
    (9) as (8)(A) and substituted subpars. (B) to (E) for "The
    Secretary shall review the owner's notice, shall consider whether
    there are additional actions that can be taken by the Secretary to
    avoid the termination, and shall ensure a proper adjustment of the
    contract rents for the project in conformity with the requirements
    of paragraph (2). The Secretary shall issue a written finding of
    the legality of the termination and the reasons for the
    termination, including the actions considered or taken to avoid the
    termination. Within 30 days of the Secretary's finding, the owner
    shall provide written notice to each tenant of the Secretary's
    decision. 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."
      Pub. L. 105-276, Sec. 549(a)(1)(A), struck out par. (8) which
    read as follows: "Each contract under this section shall provide
    that the owner will notify tenants at least 90 days prior to the
    expiration of the contract of any rent increase which may occur as
    a result of the expiration of such contract."
      Subsec. (c)(9). Pub. L. 105-276, Sec. 549(b)(1), redesignated
    par. (9) as (8)(A).
      Pub. L. 105-276, Sec. 549(a)(1)(B), substituted "Not less than
    one year before terminating 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, specifying the reasons for the termination
    with sufficient detail to enable the Secretary to evaluate whether
    the termination is lawful and whether there are additional actions
    that can be taken by the Secretary to avoid the termination." for
    "Not less than 180 days prior to terminating any contract under
    which assistance payments are received under this section (but not
    less than 90 days in the case of housing certificates or vouchers
    under subsection (b) or (o) of this section), an owner shall
    provide written notice to the Secretary and the tenants involved of
    the proposed termination, specifying the reasons for the
    termination with sufficient detail to enable the Secretary to
    evaluate whether the termination is lawful and whether there are
    additional actions that can be taken by the Secretary to avoid the
    termination."
      Subsec. (c)(10). Pub. L. 105-276, Sec. 549(a)(1)(A), struck out
    par. (10) which read as follows: "If an owner provides notice of
    proposed termination under paragraph (9) and the contract rent is
    lower than the maximum monthly rent for units assisted under
    subsection (b)(1) of this section, the Secretary shall adjust the
    contract rent based on the maximum monthly rent for units assisted
    under subsection (b)(1) of this section and the value of the low-
    income housing after rehabilitation."
      Subsec. (d)(1)(A). Pub. L. 105-276, Sec. 514(b)(1), amended
    subpar. (A) generally. For former text of subpar. (A), see 1996
    Amendment note below.
      Subsec. (d)(1)(B)(ii). Pub. L. 105-276, Sec. 549(a)(2)(A),
    substituted "during the term of the lease, the owner" for "the
    owner".
      Subsec. (d)(1)(B)(iii). Pub. L. 105-276, Sec. 549(a)(2)(B),
    substituted "during the term of the lease, any criminal activity"
    for "provide that any criminal activity".
      Subsec. (d)(2)(A). Pub. L. 105-276, Sec. 550(a)(4)(A), struck out
    at end "Where the Secretary enters into an annual contributions
    contract with a public housing agency pursuant to which the agency
    will enter into a contract for assistance payments with respect to
    an existing structure, the contract for assistance payments may not
    be attached to the structure unless (i) the Secretary and the
    public housing agency approve such action, and (ii) the owner
    agrees to rehabilitate the structure other than with assistance
    under this chapter and otherwise complies with the requirements of
    this section, except that the Secretary shall permit the public
    housing agency to approve such attachment with respect to not more
    than 15 percent of the assistance provided by the public housing
    agency if the requirements of clause (ii) are met. Notwithstanding
    any other provision of this section, a public housing agency and an
    applicable State agency may, on a priority basis, attach to
    structures not more than an additional 15 percent of the assistance
    provided by the public housing agency or the applicable State
    agency only with respect to projects assisted under a State program
    that permits the owner of the projects to prepay a State assisted
    or subsidized mortgage on the structure, except that attachment of
    assistance under this sentence shall be for the purpose of (i)
    providing incentives to owners to preserve such projects for
    occupancy by lower and moderate income families (for the period
    that assistance under this sentence is available), and (ii) to
    assist lower income tenants to afford any increases in rent that
    may be required to induce the owner to maintain occupancy in the
    project by lower and moderate income tenants. Any assistance
    provided to lower income tenants under the preceding sentence shall
    not be considered for purposes of the limitation under paragraph
    (1)(A) regarding the percentage of families that may receive
    assistance under this section who do not qualify for preferences
    under such paragraph."
      Subsec. (d)(2)(B) to (G). Pub. L. 105-276, Sec. 550(a)(4)(C),
    redesignated subpars. (F) to (H) as (B) to (D), respectively, and
    struck out former subpars. (B) to (E). Prior to repeal, former
    subpar. (B) required the Secretary to permit a public housing
    agency to approve attachment of assistance with respect to any
    newly constructed structure if certain conditions were met, former
    subpar. (C) required a public housing agency to enter into a
    contract with an owner of a structure to which a contract for
    assistance was attached under this par. to provide for renewal of
    expiring assistance payment contracts, former subpar. (D) required
    owners of structures to which a contract for assistance was
    attached to adopt certain tenant selection procedures, and former
    subpar. (E) required the Secretary to annually survey public
    housing agencies to determine which have reached certain
    limitations in providing assistance and to report the survey
    results to Congress.
      Subsec. (d)(2)(H). Pub. L. 105-276, Sec. 550(a)(4)(C),
    redesignated subpar. (H) as (D).
      Pub. L. 105-276, Sec. 550(a)(4)(B), substituted "An owner" for
    "Notwithstanding subsection (d)(1)(A)(i) of this section, an
    owner".
      Subsec. (d)(6). Pub. L. 105-276, Sec. 552, added par. (6).
      Subsec. (f)(6). Pub. L. 105-276, Sec. 545(b), inserted "or
    (o)(13)" after "(d)(2)".
      Subsec. (f)(7). Pub. L. 105-276, Sec. 550(a)(5), struck out "(b)
    or" after "under subsection" and inserted before period at end "and
    that provides for the eligible family to select suitable housing
    and to move to other suitable housing".
      Subsec. (h). Pub. L. 105-276, Sec. 565(c), which directed
    insertion of "(except as provided in section 1437d(j)(3) of this
    title)" after "section 1437d of this title", was executed by making
    the insertion after "Sections 1437c(e) and 1437d of this title", to
    reflect the probable intent of Congress.
      Subsec. (j). Pub. L. 105-276, Sec. 550(a)(6), struck out subsec.
    (j), which authorized contracts for making rental assistance
    payments on behalf of low-income families utilizing manufactured
    homes as principal places of residence, directed that contract
    establish maximum monthly rent permitted with respect to home and
    real property on which it was located and provided formula for
    calculating amount of monthly assistance, provided for adjustments,
    set forth minimum and maximum terms, in the case of substantially
    rehabilitated or newly constructed park, provided limit on
    principal amount of mortgage attributable to rental spaces within
    park, and authorized Secretary to prescribe other terms and
    conditions necessary for purpose of carrying out subsection.
      Subsec. (n). Pub. L. 105-276, Sec. 550(a)(7), struck out subsec.
    (n) which read as follows: "In making assistance available under
    subsections (b)(1) and (e)(2) of this section, the Secretary may
    provide assistance with respect to residential properties in which
    some or all of the dwelling units do not contain bathroom or
    kitchen facilities, if - 
        "(1) the property is located in an area in which there is a
      significant demand for such units, as determined by the
      Secretary;
        "(2) the unit of general local government in which the property
      is located and the local public housing agency approve of such
      units being utilized for such purpose; and
        "(3) in the case of assistance under subsection (b)(1) of this
      section, the unit of general local government in which the
      property is located and the local public housing agency certify
      to the Secretary that the property complies with local health and
      safety standards.
    The Secretary may waive, in appropriate cases, the limitation and
    preference described in the second and third sentences of section
    1437a(b)(3) of this title with respect to the assistance made
    available under this subsection."
      Subsec. (o). Pub. L. 105-276, Sec. 545(a), amended subsec. (o)
    generally. Prior to amendment, subsec. (o) contained provisions
    relating to assistance using a payment standard based upon fair
    market rental, categories of families eligible for assistance and
    preferences, contracts with public housing agencies for annual
    contributions, annual adjustments of assistance payment amounts,
    assistance with respect to certain cooperative and mutual housing,
    contracts to provide rental vouchers, set asides of budget
    authority for an adjustment pool, reasonable rent requirements and
    disapproval of leases with unreasonable rents, and assistance on
    behalf of families utilizing manufactured homes as principal places
    of residence.
      Subsec. (o)(2). Pub. L. 105-276, Sec. 209(a), inserted at end
    "Notwithstanding the preceding sentence, for families being
    admitted to the voucher program who remain in the same unit or
    complex, where the rent (including the amount allowed for
    utilities) does not exceed the payment standard, the monthly
    assistance payment for any family shall be the amount by which such
    rent exceeds the greater of 30 percent of the family's monthly
    adjusted income or 10 percent of the family's monthly income."
    Notwithstanding sections 209(b) and 503 of Pub. L. 105-276, set out
    as Effective Date of 1998 Amendment notes below and under section
    1437 of this title, this amendment was executed before the
    amendment by section 545(a) of Pub. L. 105-276 to reflect the
    probable intent of Congress and the provisions of section 545(c) of
    Pub. L. 105-276, set out as an Effective Date of 1998 Amendment
    note below, and section 559 of Pub. L. 105-276, set out as a
    Regulations note below.
      Subsec. (q). Pub. L. 105-276, Sec. 547, amended subsec. (q)
    generally, substituting present provisions for provisions which
    authorized establishment of fee for costs incurred in administering
    certificate and housing voucher programs under subsecs. (b) and (o)
    of this section, costs of preliminary expenses in connection with
    new allocations of assistance, costs incurred in assisting families
    who experienced difficulty in obtaining appropriate housing under
    the programs, and extraordinary costs; provisions which set forth
    use of fees for employing one or more service coordinators to
    coordinate provision of supportive services for elderly or disabled
    families on whose behalf assistance was provided; and provision
    which limited establishment or increase of fees to amounts provided
    in appropriation Acts.
      Subsec. (r). Pub. L. 105-276, Sec. 553(3), inserted heading,
    added par. (1), and struck out former par. (1) which read as
    follows: "Any family assisted under subsection (b) or (o) of this
    section may receive such assistance to rent an eligible dwelling
    unit if the dwelling unit to which the family moves is within the
    same State, or the same or a contiguous metropolitan statistical
    area as the metropolitan statistical area within which is located
    the area of jurisdiction of the public housing agency approving
    such assistance; except that any family not living within the
    jurisdiction of a public housing agency at the time that such
    family applies for assistance from such agency shall, during the 12-
    month period beginning upon the receipt of any tenant-based rental
    assistance made available on behalf of the family, use such
    assistance to rent an eligible dwelling unit located within the
    jurisdiction served by such public housing agency."
      Subsec. (r)(2). Pub. L. 105-276, Sec. 553(1), struck out at end
    "If no public housing agency has authority with respect to the
    dwelling unit to which a family moves under this subsection, the
    public housing agency approving the assistance shall have such
    responsibility."
      Subsec. (r)(3). Pub. L. 105-276, Sec. 553(2), struck out "(b) or"
    before "(o) of this section for" and inserted at end "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) of this section to compensate those
    public housing agencies."
      Subsec. (r)(5). Pub. L. 105-276, Sec. 553(5), added par. (5).
      Subsec. (t). Pub. L. 105-276, Sec. 554, struck out subsec. (t).
    For text, see 1996 Amendment note below.
      Subsec. (u). Pub. L. 105-276, Sec. 550(a)(8), in pars. (1) and
    (3), struck out "certificates or" before "vouchers" and, in par.
    (2), struck out ", certificates" before "or vouchers".
      Subsec. (x)(2). Pub. L. 105-276, Sec. 550(a)(9), substituted
    "tenant-based assistance" for "housing certificate assistance".
      Subsec. (y)(1). Pub. L. 105-276, Sec. 555(a)(1)(A), in
    introductory provisions, substituted "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" for "A
    family receiving tenant-based assistance under this section may
    receive assistance for occupancy of a dwelling owned by one or more
    members of the family if the family".
      Subsec. (y)(1)(A). Pub. L. 105-276, Sec. 555(a)(1)(B), inserted
    ", or owns or is acquiring shares in a cooperative" before
    semicolon at end.
      Subsec. (y)(1)(B). Pub. L. 105-276, Sec. 555(a)(1)(C), struck out
    cl. (i), redesignated cl. (ii) as entire subpar., and inserted ",
    except that the Secretary may provide for the consideration of
    public assistance in the case of an elderly family or a disabled
    family" after "public assistance". Prior to amendment, cl. (i) read
    as follows: "participates in the family self-sufficiency program
    under section 1437u of this title of the public housing agency
    providing the assistance; or".
      Subsec. (y)(2). Pub. L. 105-276, Sec. 555(a)(2), added par. (2)
    and struck out heading and text of former par. (2). Text read as
    follows:
      "(A) In general. - Notwithstanding any other provisions of this
    section governing determination of the amount of assistance
    payments under this section on behalf of a family, the monthly
    assistance payment for any family assisted under this subsection
    shall be the amount by which the fair market rental for the area
    established under subsection (c)(1) of this section exceeds 30
    percent of the family's monthly adjusted income; except that the
    monthly assistance payment shall not exceed the amount by which the
    monthly homeownership expenses, as determined in accordance with
    requirements established by the Secretary, exceeds 10 percent of
    the family's monthly income.
      "(B) Exclusion of equity from income. - For purposes of
    determining the monthly assistance payment for a family, the
    Secretary shall not include in family income an amount imputed from
    the equity of the family in a dwelling occupied by the family with
    assistance under this subsection."
      Subsec. (y)(3), (4). Pub. L. 105-276, Sec. 555(a)(3), added pars.
    (3) and (4) and struck out former pars. (3) and (4) which read as
    follows:
      "(3) Recapture of certain amounts. - Upon sale of the dwelling by
    the family, the Secretary shall recapture from any net proceeds the
    amount of additional assistance (as determined in accordance with
    requirements established by the Secretary) paid to or on behalf of
    the eligible family as a result of paragraph (2)(B).
      "(4) Downpayment requirement. - Each public housing agency
    providing assistance under this subsection shall ensure that each
    family assisted shall provide from its own resources not less than
    80 percent of any downpayment in connection with a loan made for
    the purchase of a dwelling. Such resources may include amounts from
    any escrow account for the family established under section
    1437u(d) of this title. Not more than 20 percent of the downpayment
    may be provided from other sources, such as from nonprofit entities
    and programs of States and units of general local government."
      Subsec. (y)(5). Pub. L. 105-276, Sec. 555(a)(3), (4),
    redesignated par. (6) as (5) and struck out heading and text of
    former par. (5). Text read as follows: "A family may not receive
    assistance under this subsection during any period when assistance
    is being provided for the family under other Federal homeownership
    assistance programs, as determined by the Secretary, including
    assistance under the HOME Investment Partnerships Act, the
    Homeownership and Opportunity Through HOPE Act, title II of the
    Housing and Community Development Act of 1987, and section 1472 of
    this title."
      Subsec. (y)(6) to (8). Pub. L. 105-276, Sec. 555(a)(4),
    redesignated pars. (7) and (8) as (6) and (7), respectively. Former
    par. (6) redesignated (5).
      Subsec. (z). Pub. L. 105-276, Sec. 548(1), made technical
    amendment relating to placement of subsection.
      Subsec. (cc). Pub. L. 105-276, Sec. 548(2), added subsec. (cc).
      Subsec. (dd). Pub. L. 105-276, Sec. 556(a), added subsec. (dd).
      1997 - Subsec. (c)(2)(A). Pub. L. 105-65, Secs. 201(c), 205,
    substituted "fiscal years 1997 and 1998" for "fiscal year 1997" in
    third and sixth sentences and inserted at end "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."
      Pub. L. 105-33, Secs. 2003, 2004, inserted ", and during fiscal
    year 1999 and thereafter" before period at end of third and sixth
    sentences.
      Subsec. (c)(9). Pub. L. 105-18, which directed substitution of
    "Not less than 180 days prior to terminating any contract" for "Not
    less than one year prior to terminating any contract", was executed
    by making the substitution for "Not less than 1 year prior to
    terminating any contract" to reflect the probable intent of
    Congress.
      Subsec. (d)(5). Pub. L. 105-65, Sec. 523(a), added par. (5).
      Subsec. (bb). Pub. L. 105-65, Sec. 523(c), inserted heading,
    designated existing provisions as par. (1) and former subsec.
    heading as par. (1) heading, and added par. (2).
      1996 - Subsec. (c)(2)(A). Pub. L. 104-204 inserted ", fiscal year
    1996 prior to April 26, 1996, and fiscal year 1997" after "fiscal
    year 1995" in two places, substituted "Except for assistance under
    the certificate program, for" for "For", inserted after fourth
    sentence "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.", and substituted "The immediately foregoing two
    sentences" for "The immediately foregoing sentence".
      Subsec. (c)(8). Pub. L. 104-134, Sec. 101(e) [title II, Sec.
    203(b)(1), (d)], temporarily inserted "(other than a contract for
    assistance under the certificate or voucher program)" after
    "section". See Effective and Termination Dates of 1996 Amendments
    note below.
      Subsec. (c)(9). Pub. L. 104-134, Sec. 101(e) [title II, Sec.
    203(b)(2), (d)], temporarily substituted ", other than a contract
    under the certificate or voucher program" for "(but not less than
    90 days in the case of housing certificates or vouchers under
    subsection (b) or (o) of this section)". See Effective and
    Termination Dates of 1996 Amendments note below.
      Subsec. (d)(1)(A). Pub. L. 104-99, Sec. 402(d)(2), (f),
    temporarily amended subpar. (A) generally, substituting "the
    selection of tenants shall be the function of the owner, subject to
    the provisions of the annual contributions contract between the
    Secretary and the agency, except that for the certificate and
    moderate rehabilitation programs only, for the purpose of selecting
    families to be assisted, the public housing agency may establish,
    after public notice and an opportunity for public comment, a
    written system of preferences for selection that is not
    inconsistent with the comprehensive housing affordability strategy
    under title I of the Cranston-Gonzalez National Affordable Housing
    Act;" for "the selection of tenants for such units shall be the
    function of the owner, subject to the provisions of the annual
    contributions contract between the Secretary and the agency, except
    that the tenant selection criteria used by the owner shall - 
        "(i) for not less than (I) 70 percent of the families who
      initially receive assistance in any 1-year period in the case of
      assistance attached to a structure and (II) 90 percent of such
      families in the case of assistance not attached to a structure,
      give preference to families that occupy substandard housing
      (including families that are homeless or living in a shelter for
      homeless families), are paying more than 50 percent of family
      income for rent, or are involuntarily displaced (including
      displacement because of disposition of a multifamily housing
      project under section 1701z-11 of title 12) at the time they are
      seeking assistance under this section; except that any family
      otherwise eligible for assistance under this section may not be
      denied preference for assistance not attached to a structure (or
      delayed or otherwise adversely affected in the provision of such
      assistance) solely because the family resides in public housing;
        "(ii) for any remaining assistance in any 1-year period, give
      preference to families who qualify under a system of local
      preferences established by the public housing agency in writing
      and after public hearing to respond to local housing needs and
      priorities, which may include (I) assisting very low-income
      families who either reside in transitional housing assisted under
      title IV of the Stewart B. McKinney Homeless Assistance Act, or
      participate in a program designed to provide public assistance
      recipients with greater access to employment and educational
      opportunities; (II) assisting families in accordance with
      subsection (u)(2) of this section; (III) assisting families
      identified by local public agencies involved in providing for the
      welfare of children as having a lack of adequate housing that is
      a primary factor in the imminent placement of a child in foster
      care, or in preventing the discharge of a child from foster care
      and reunification with his or her family; (IV) assisting youth,
      upon discharge from foster care, in cases in which return to the
      family or extended family or adoption is not available; (V)
      assisting veterans who are eligible and have applied for
      assistance, will use the assistance for a dwelling unit designed
      for the handicapped, and, upon discharge or eligibility for
      discharge from a hospital or nursing home, have physical
      disability which, because of the configuration of their homes,
      prevents them from access to or use of their homes; and (VI)
      achieving other objectives of national housing policy as affirmed
      by Congress; and
        "(iii) prohibit any individual or family evicted from housing
      assisted under the chapter by reason of drug-related criminal
      activity from having a preference under any provision of this
      subparagraph for 3 years unless the evicted tenant successfully
      completes a rehabilitation program approved by the agency, except
      that the agency may waive the application of this clause under
      standards established by the Secretary (which shall include
      waiver for any member of a family of an individual prohibited
      from tenancy under this clause who the agency determines clearly
      did not participate in and had no knowledge of such criminal
      activity or when circumstances leading to eviction no longer
      exist);".
    See Effective and Termination Dates of 1996 Amendments note below.
      Subsec. (d)(1)(B)(ii), (iii). Pub. L. 104-134, Sec. 101(e) [title
    II, Sec. 203(c), (d)], in cl. (ii) temporarily inserted "during the
    term of the lease," after "(ii)" and in cl. (iii) temporarily
    substituted "during the term of the lease," for "provide that". See
    Effective and Termination Dates of 1996 Amendments note below.
      Subsec. (d)(1)(B)(v). Pub. L. 104-193, Sec. 903(a)(2), added cl.
    (v).
      Subsec. (d)(2)(A). Pub. L. 104-99, Sec. 402(d)(6)(A)(iii), (f),
    temporarily struck out at end "Any assistance provided to lower
    income tenants under the preceding sentence shall not be considered
    for purposes of the limitation under paragraph (1)(A) regarding the
    percentage of families that may receive assistance under this
    section who do not qualify for preferences under such paragraph."
    See Effective and Termination Dates of 1996 Amendments note below.
      Subsec. (d)(2)(H). Pub. L. 104-99, Sec. 402(d)(6)(A)(iv), (f),
    temporarily substituted "An owner" for "Notwithstanding subsection
    (d)(1)(A)(i) of this section, an owner". See Effective and
    Termination Dates of 1996 Amendments note below.
      Subsec. (o)(3)(B). Pub. L. 104-99, Sec. 402(d)(3), (f),
    temporarily amended subpar. (B) generally. Prior to amendment,
    subpar. (B) read as follows: "In selecting families to be assisted,
    preference shall be given to families which, at the time they are
    seeking assistance, occupy substandard housing (including families
    that are homeless or living in a shelter for homeless families),
    are involuntarily displaced (including displacement because of
    disposition of a multifamily housing project under section 1701z-11
    of title 12), or are paying more than 50 per centum of family
    income for rent. A public housing agency may provide for
    circumstances in which families who do not qualify for any
    preference established in the preceding sentence are provided
    assistance under this subsection before families who do qualify for
    such preference, except that not more than 10 percent (or such
    higher percentage determined by the Secretary to be necessary to
    ensure that public housing agencies can assist families in
    accordance with subsection (u)(2) of this section or determined by
    the Secretary to be appropriate for other good cause) of the
    families who initially receive assistance in any 1-year period (or
    such shorter period selected by the public housing agency before
    the beginning of its first full year subject to this sentence) may
    be families who do not qualify for such preference. The public
    housing agency shall in implementing the preceding sentence
    establish a system of preferences in writing and after public
    hearing to respond to local housing needs and priorities which may
    include (i) assisting very low-income families who either reside in
    transitional housing assisted under title IV of the Stewart B.
    McKinney Homeless Assistance Act, or participate in a program
    designed to provide public assistance recipients with greater
    access to employment and educational opportunities, (ii) assisting
    families in accordance with subsection (u)(2) of this section;
    (iii) assisting families identified by local public agencies
    involved in providing for the welfare of children as having a lack
    of adequate housing that is a primary factor in the imminent
    placement of a child in foster care, or in preventing the discharge
    of a child from foster care and reunification and his or her
    family; (iv) assisting youth, upon discharge from foster care, in
    cases in which return to the family or extended family or adoption
    is not available; (v) assisting veterans who are eligible and have
    applied for assistance, will use the assistance for a dwelling unit
    designed for the handicapped, and, upon discharge or eligibility
    for discharge from a hospital or nursing home, have physical
    disability which, because of the configuration of their homes,
    prevents them from access to or use of their homes; and (vi)
    achieving other objectives of national housing policy as affirmed
    by Congress. Any individual or family evicted from housing assisted
    under the chapter by reason of drug-related criminal activity (as
    defined in subsection (f)(5) of this section) shall not be eligible
    for a preference under any provision of this subparagraph for 3
    years unless the evicted tenant successfully completes a
    rehabilitation program approved by the Secretary (which shall
    include waiver for any member of a family of an individual
    prohibited from tenancy under this clause who the agency determines
    clearly did not participate in and had no knowledge of such
    criminal activity or when circumstances leading to eviction no
    longer exist)." See Effective and Termination Dates of 1996
    Amendments note below.
      Subsec. (t). Pub. L. 104-134, Sec. 101(e) [title II, Sec. 203(a),
    (d)], temporarily repealed subsec. (t) which read as follows:
      "(1) No owner who has entered into a contract for housing
    assistance payments under this section on behalf of any tenant in a
    multifamily housing project shall refuse - 
        "(A) to lease any available dwelling unit in any multifamily
      housing project of such owner that rents for an amount not
      greater than the fair market rent for a comparable unit, as
      determined by the Secretary under this section, to a holder of a
      certificate of eligibility under this section a proximate cause
      of which is the status of such prospective tenant as a holder of
      such certificate, and to enter into a housing assistance payments
      contract respecting such unit; or
        "(B) to lease any available dwelling unit in any multifamily
      housing project of such owner to a holder of a voucher under
      subsection (o) of this section, and to enter into a voucher
      contract respecting such unit, a proximate cause of which is the
      status of such prospective tenant as holder of such voucher.
      "(2) For purposes of this subsection, the term 'multifamily
    housing project' means a residential building containing more than
    4 dwelling units." See Effective and Termination Dates of 1996
    Amendments note below.
      Subsec. (v). Pub. L. 104-99, Sec. 405(c), amended subsec. (v)
    generally. Prior to amendment, subsec. (v) read as follows:
      "(1) The Secretary shall extend any expiring contract entered
    into under this section for loan management assistance or execute a
    new contract for project-based loan management assistance, if the
    owner agrees to continue providing housing for low-income families
    during the term of the contract.
      "(2)(A) The eligiblity of a multifamily residential project for
    loan management assistance under this section shall be determined
    without regard to whether the project is subsidized or
    unsubsidized.
      "(B) In allocating loan management assistance under this section,
    the Secretary may give a priority to any project only on the basis
    that the project has serious financial problems that are likely to
    result in a claim on the insurance fund in the near future or the
    project is eligible to receive incentives under subtitle B of the
    Low-Income Housing Preservation and Resident Homeownership Act of
    1990."
      Subsec. (bb). Pub. L. 104-134, Sec. 101[(e)] [title II, Sec.
    208], added subsec. (bb).
      1995 - Subsec. (z). Pub. L. 104-19 added subsec. (z).
      1994 - Subsec. (c)(2)(A). Pub. L. 103-327 inserted at end:
    "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. 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. The
    immediately foregoing sentence shall be effective only during
    fiscal year 1995."
      Subsec. (d)(1)(A)(i). Pub. L. 103-233, Sec. 101(c)(2), inserted
    "(including displacement because of disposition of a multifamily
    housing project under section 1701z-11 of title 12)" after
    "displaced".
      Subsec. (d)(1)(A)(ii). Pub. L. 103-327 which directed the
    amendment of cl. (ii) by striking "and (V)" and inserting in lieu
    thereof "(V) assisting families that include one or more adult
    members who are employed; and (VI)", and inserting after the final
    semicolon "subclause (V) shall be effective only during fiscal year
    1995;", was not executed because the words "and (V)" did not appear
    and cl. (ii) already contains subcls. (V) and (VI). See 1992
    Amendment note below.
      Subsec. (f)(1). Pub. L. 103-233, Sec. 101(d), inserted "an agency
    of the Federal Government," after "cooperative,".
      Subsec. (o)(3)(B). Pub. L. 103-233, Sec. 101(c)(3), inserted
    "(including displacement because of disposition of a multifamily
    housing project under section 1701z-11 of title 12)" after
    "displaced".
      Subsec. (aa). Pub. L. 103-327 temporarily added subsec. (aa),
    "Refinancing incentive", which read as follows:
      "(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."
    See Effective and Termination Dates of 1994 Amendment note below.
      1992 - Subsec. (c)(2)(B). Pub. L. 102-550, Sec. 1012(g), inserted
    at end "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 4851b of this title."
      Pub. L. 102-550, Sec. 142, inserted after first sentence "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."
      Subsec. (c)(4). Pub. L. 102-550, Sec. 141(a), inserted "or by a
    family that qualifies to receive assistance under subsection (b) of
    this section pursuant to section 223 or 226 of the Low-Income
    Housing Preservation and Resident Homeownership Act of 1990" after
    first comma in first sentence.
      Subsec. (c)(9). Pub. L. 102-550, Sec. 143, inserted before period
    at end ", and such term shall include termination of the contract
    for business reasons".
      Subsec. (d)(1)(A)(ii)(V), (VI). Pub. L. 102-550, Sec. 144(a),
    added subcl. (V) and redesignated former subcl. (V) as (VI).
      Subsec. (d)(1)(B)(iii). Pub. L. 102-550, Sec. 145, inserted ",
    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," before "or any drug-
    related" and substituted "tenant of any unit" for "public housing
    tenant".
      Subsec. (d)(2)(F). Pub. L. 102-550, Sec. 674, added subpar. (F).
      Subsec. (d)(2)(G), (H). Pub. L. 102-550, Sec. 682(b), added
    subpars. (G) and (H).
      Subsec. (d)(4). Pub. L. 102-550, Sec. 660, added par. (4).
      Subsec. (f)(6), (7). Pub. L. 102-550, Sec. 146, added pars. (6)
    and (7).
      Subsec. (i). Pub. L. 102-550, Sec. 623(b), added subsec. (i).
      Subsec. (o)(3)(A). Pub. L. 102-550, Sec. 141(b), struck out "or"
    before "(iv)" and inserted before period at end ", or" and cl. (v).
      Subsec. (o)(3)(B)(v), (vi). Pub. L. 102-550, Sec. 144(b), in
    third sentence, added cl. (v) and redesignated former cl. (v) as
    (vi).
      Subsec. (q)(3), (4). Pub. L. 102-550, Sec. 675, added par. (3)
    and redesignated former par. (3) as (4).
      Subsec. (r)(1). Pub. L. 102-550, Sec. 147, inserted before period
    at end "; except that any family not living within the jurisdiction
    of a public housing agency at the time that such family applies for
    assistance from such agency shall, during the 12-month period
    beginning upon the receipt of any tenant-based rental assistance
    made available on behalf of the family, use such assistance to rent
    an eligible dwelling unit located within the jurisdiction served by
    such public housing agency".
      Subsec. (x)(1). Pub. L. 102-550, Sec. 148, amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "The
    budget authority available under section 1437c(c) of this title for
    assistance under subsection (b) of this section is authorized to be
    increased by $35,000,000 on or after October 1, 1990, by
    $35,000,000 on or after October 1, 1991."
      Subsec. (y). Pub. L. 102-550, Sec. 185(a), added subsec. (y).
      1991 - Subsec. (c)(1). Pub. L. 102-139 inserted provisions
    relating to separate fair market rentals for Monroe County,
    Pennsylvania.
      1990 - Subsec. (a). Pub. L. 101-625, Sec. 572(1), which directed
    the substitution of "low-income families" for "lower income
    families", was executed by making the substitution for "lower-
    income families" to reflect the probable intent of Congress.
      Pub. L. 101-625, Sec. 548(b), inserted at end "A public housing
    agency may contract to make assistance payments to itself (or any
    agency or instrumentality thereof) as the owner of dwelling units
    if such agency is subject to the same program requirements as are
    applied to other owners. In such cases, the Secretary may establish
    initial rents within applicable limits."
      Subsec. (b). Pub. L. 101-625, Sec. 541(a), inserted heading and
    struck out par. (1) designation preceding text.
      Subsec. (b)(2). Pub. L. 101-625, Sec. 413(b)(1), added par. (2).
      Subsec. (c)(1). Pub. L. 101-625, Sec. 543(b), inserted "(A)"
    after second reference to "fair market rental" and substituted "a
    housing strategy as defined in section 12705 of this title, 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)."
    for "a local housing assistance plan as defined in section
    1439(a)(5) of this title."
      Subsec. (c)(2)(B). Pub. L. 101-625, Sec. 542, inserted at end
    "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."
      Subsec. (c)(3). Pub. L. 101-625, Sec. 543(a), designated existing
    provisions as subpar. (A) and added subpar. (B).
      Subsec. (c)(9). Pub. L. 101-625, Sec. 544, inserted after first
    sentence "The owner's notice shall include a statement that the
    owner and the Secretary may agree to a renewal of the contract,
    thus avoiding the termination." and inserted at end "Within 30 days
    of the Secretary's finding, the owner shall provide written notice
    to each tenant of the Secretary's decision."
      Subsec. (c)(10). Pub. L. 101-625, Sec. 572(2), substituted "low-
    income housing" for "lower income housing".
      Subsec. (d)(1)(A). Pub. L. 101-625, Sec. 545(a), amended subpar.
    (A) generally. Prior to amendment, subpar. (A) read as follows:
    "the selection of tenants for such unit shall be the function of
    the owner, subject to the provisions of the annual contributions
    contract between the Secretary and the agency, except that (i) the
    tenant selection criteria used by the owner shall give preference
    to families which occupy substandard housing, are paying more than
    50 per centum of family income for rent, or are involuntarily
    displaced at the time they are seeking assistance under this
    section; and (ii) the public housing agency may provide for
    circumstances in which families who do not qualify for any
    preference established in clause (i) are provided assistance before
    families who do qualify for such preference, except that not more
    than 10 percent (or such higher percentage determined by the
    Secretary to be necessary to ensure that public housing agencies
    can assist families in accordance with subsection (u)(2) of this
    section or determined by the Secretary to be appropriate for other
    good cause) of the families who initially receive assistance in any
    1-year period (or such shorter period selected by the public
    housing agency before the beginning of its first full year subject
    to this clause) may be families who do not qualify for such
    preference;".
      Subsec. (d)(1)(B)(iii), (iv). Pub. L. 101-625, Sec. 546, added
    cls. (iii) and (iv).
      Subsec. (d)(2)(A). Pub. L. 101-625, Sec. 552(b), inserted after
    first sentence "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."
      Pub. L. 101-625, Sec. 613(a)(1), inserted at end "Notwithstanding
    any other provision of this section, a public housing agency and an
    applicable State agency may, on a priority basis, attach to
    structures not more than an additional 15 percent of the assistance
    provided by the public housing agency or the applicable State
    agency only with respect to projects assisted under a State program
    that permits the owner of the projects to prepay a State assisted
    or subsidized mortgage on the structure, except that attachment of
    assistance under this sentence shall be for the purpose of (i)
    providing incentives to owners to preserve such projects for
    occupancy by lower and moderate income families (for the period
    that assistance under this sentence is available), and (ii) to
    assist lower income tenants to afford any increases in rent that
    may be required to induce the owner to maintain occupancy in the
    project by lower and moderate income tenants. Any assistance
    provided to lower income tenants under the preceding sentence shall
    not be considered for purposes of the limitation under paragraph
    (1)(A) regarding the percentage of families that may receive
    assistance under this section who do not qualify for preferences
    under such paragraph."
      Subsec. (d)(2)(C). Pub. L. 101-625, Sec. 613(a)(2), inserted at
    end "To the extent assistance is used as provided in the
    penultimate sentence of subparagraph (A), the contract for
    assistance may, at the option of the public housing agency, have an
    initial term not exceeding 15 years."
      Pub. L. 101-625, Sec. 547(c), amended subpar. (C) generally.
    Prior to amendment, subpar. (C) read as follows: "Any contract for
    assistance payments that is attached to a structure under this
    paragraph shall (at the option of the public housing agency but
    subject to available funds) be renewable for 2 additional 5-year
    terms, except that the aggregate term of the initial contract and
    renewals shall not exceed 15 years."
      Subsec. (d)(2)(D), (E). Pub. L. 101-625, Sec. 547(a), (b), added
    subpars. (D) and (E).
      Subsec. (e)(2). Pub. L. 101-625, Sec. 289(b), struck out par. (2)
    which read as follows: "For the purpose of upgrading and thereby
    preserving the Nation's housing stock, the Secretary is authorized
    to make assistance payments under this section directly or through
    public housing agencies pursuant to contracts with owners or
    prospective owners who agree to upgrade housing so as to make and
    keep such housing decent, safe, and sanitary through upgrading
    which involves less than substantial rehabilitation, as such
    upgrading and rehabilitation are defined by the Secretary, and
    which shall involve a minimum expenditure of $3,000 for a unit,
    including its prorated share of work to be accomplished on common
    areas or systems. The Secretary is authorized to prescribe such
    terms and conditions for contracts entered into under this section
    pursuant to this paragraph as the Secretary determines to be
    necessary and appropriate, except that such terms and conditions,
    to the maximum extent feasible, shall be consistent with terms and
    conditions otherwise applicable with respect to other dwelling
    units assisted under this section. Notwithstanding subsection
    (c)(1) of this section, the Secretary may, in carrying out the
    preceding sentence, establish a maximum monthly rent (for units
    upgraded pursuant to this paragraph) which exceeds the fair market
    rental by not more than 20 per centum if such units are located in
    an area where the Secretary finds cost levels so require, except
    that the Secretary may approve maximum monthly rents which exceed
    the fair market rentals by more than 20 but not more than 30 per
    centum where the Secretary determines that special circumstances
    warrant such higher rent or where necessary to the implementation
    of a local housing assistance plan. The Secretary is also
    authorized to make assistance available under this section pursuant
    to this paragraph to any unit in a housing project which, on an
    overall basis, reflects the need for such upgrading. The Secretary
    shall increase the amount of assistance provided under this
    paragraph above the amount of assistance otherwise permitted by
    this paragraph and subsection (c)(1) of this section, if the
    Secretary determines such increase necessary to assist in the sale
    of multifamily housing projects owned by the Department of Housing
    and Urban Development. In order to maximize the availability of low-
    income housing, in providing assistance under this paragraph, the
    Secretary shall include in any calculation or determination
    regarding the amount of the assistance to be made available the
    extent to which any proceeds are available from any tax credits
    provided under section 42 of title 26 (or from any syndication of
    such credits) with respect to the housing. For each fiscal year,
    the Secretary may not provide assistance pursuant to this paragraph
    to any project for rehabilitation of more than 100 units.
    Assistance pursuant to this paragraph shall be allocated according
    to the formula established pursuant to section 1439(d) of this
    title, and awarded pursuant to a competition under such section.
    The Secretary shall maintain a single listing of any assistance
    provided pursuant to this paragraph, which shall include a
    statement identifying the owner and location of the project to
    which assistance was made, the amount of the assistance, and the
    number of units assisted."
      Subsec. (f)(1). Pub. L. 101-625, Sec. 548(a), substituted
    "dwelling units" for "newly constructed or substantially
    rehabilitated dwelling units as described in this section".
      Subsec. (f)(4), (5). Pub. L. 101-625, Sec. 549, added pars. (4)
    and (5).
      Subsec. (j)(1). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families" in introductory
    provisions.
      Subsec. (o). Pub. L. 101-625, Sec. 541(b), inserted heading.
      Subsec. (o)(3). Pub. L. 101-625, Sec. 545(2)[(b)], inserted "(A)"
    after "(3)", redesignated former cls. (A) to (D) as cls. (i) to
    (iv), respectively, inserted "(B)" before "In selecting families",
    "(including families that are homeless or living in a shelter for
    homeless families)" after "substandard housing", and inserted at
    end "The public housing agency shall in implementing the preceding
    sentence establish a system of preferences in writing and after
    public hearing to respond to local housing needs and priorities
    which may include (i) assisting very low-income families who either
    reside in transitional housing assisted under title IV of the
    Stewart B. McKinney Homeless Assistance Act, or participate in a
    program designed to provide public assistance recipients with
    greater access to employment and educational opportunities, (ii)
    assisting families in accordance with subsection (u)(2) of this
    section; (iii) assisting families identified by local public
    agencies involved in providing for the welfare of children as
    having a lack of adequate housing that is a primary factor in the
    imminent placement of a child in foster care, or in preventing the
    discharge of a child from foster care and reunification and his or
    her family; (iv) assisting youth, upon discharge from foster care,
    in cases in which return to the family or extended family or
    adoption is not available; and (v) achieving other objectives of
    national housing policy as affirmed by Congress. Any individual or
    family evicted from housing assisted under the chapter by reason of
    drug-related criminal activity (as defined in subsection (f)(5) of
    this section) shall not be eligible for a preference under any
    provision of this subparagraph for 3 years unless the evicted
    tenant successfully completes a rehabilitation program approved by
    the Secretary (which shall include waiver for any member of a
    family of an individual prohibited from tenancy under this clause
    who the agency determines clearly did not participate in and had no
    knowledge of such criminal activity or when circumstances leading
    to eviction no longer exist)."
      Pub. L. 101-625, Sec. 413(a), added cl. (D).
      Subsec. (o)(7). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families".
      Subsec. (o)(9). Pub. L. 101-625, Sec. 413(b)(2), added par. (9).
      Subsec. (o)(10), (11). Pub. L. 101-625, Sec. 550(a), (c), added
    pars. (10) and (11).
      Subsec. (r)(1). Pub. L. 101-625, Sec. 551, substituted "the same
    State, or the same or a contiguous" for "the same, or a
    contiguous,".
      Subsec. (u). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families" in introductory
    provisions.
      Subsec. (v)(1). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families".
      Subsec. (v)(2)(B). Pub. L. 101-625, Sec. 603, which directed the
    substitution of "Low-Income Housing Preservation and Resident
    Homeownership Act of 1990" for "Emergency Low Income Housing
    Preservation Act of 1987" in section "89(v)(2) of the United States
    Housing Act of 1937", was executed to subsec. (v)(2)(B) of this
    section (section 8 of the United States Housing Act of 1937) to
    reflect the probable intent of Congress.
      Subsecs. (w), (x). Pub. L. 101-625, Secs. 552(a), 553, added
    subsecs. (w) and (x).
      1989 - Subsec. (c)(2)(C). Pub. L. 101-235, Sec. 702(g),
    substituted "quality, type, and age" for "quality and age".
      Pub. L. 101-235, Sec. 702(c), inserted after first sentence "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."
      Subsec. (e)(2). Pub. L. 101-235, Sec. 127(1), inserted before
    period at end of first sentence ", and which shall involve a
    minimum expenditure of $3,000 for a unit, including its prorated
    share of work to be accomplished on common areas or systems".
      Pub. L. 101-235, Sec. 127(2), (3), inserted at end "In order to
    maximize the availability of low-income housing, in providing
    assistance under this paragraph, the Secretary shall include in any
    calculation or determination regarding the amount of the assistance
    to be made available the extent to which any proceeds are available
    from any tax credits provided under section 42 of title 26 (or from
    any syndication of such credits) with respect to the housing. For
    each fiscal year, the Secretary may not provide assistance pursuant
    to this paragraph to any project for rehabilitation of more than
    100 units. Assistance pursuant to this paragraph shall be allocated
    according to the formula established pursuant to section 1439(d) of
    this title, and awarded pursuant to a competition under such
    section. The Secretary shall maintain a single listing of any
    assistance provided pursuant to this paragraph, which shall include
    a statement identifying the owner and location of the project to
    which assistance was made, the amount of the assistance, and the
    number of units assisted."
      1988 - Subsec. (b)(1). Pub. L. 100-242, Sec. 141, inserted
    provisions at end authorizing Secretary to enter into separate
    contributions contracts with each public housing agency to obligate
    authority approved each year, beginning with fiscal year 1988.
      Subsec. (c)(1). Pub. L. 100-242, Sec. 142(a), inserted before
    last sentence "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."
      Pub. L. 100-242, Sec. 142(b), inserted at end "The Secretary
    shall establish separate fair market rentals under this paragraph
    for Westchester County in the State of New York."
      Pub. L. 100-242, Sec. 142(c)(1), inserted at end "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."
      Subsec. (c)(2)(C). Pub. L. 100-628, Sec. 1004(a)(1), substituted
    "under subparagraphs (A) and (B)" for "as hereinbefore provided".
      Pub. L. 100-628, Sec. 1004(a)(2), inserted at end "Any maximum
    monthly rent that has been reduced by the Secretary after April 14,
    1987, and prior to November 7, 1988, 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."
      Pub. L. 100-242, Sec. 142(c)(2), substituted "assisted units and
    unassisted units of similar quality and age in the same market
    area" for "assisted and comparable unassisted units" and inserted
    at end "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."
      Pub. L. 100-242, Sec. 142(d), inserted at end "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."
      Subsec. (c)(2)(D). Pub. L. 100-242, Sec. 142(e), struck out
    subpar. (D) which read as follows: "Notwithstanding the foregoing,
    the Secretary shall limit increases in contract rents for newly
    constructed or substantially rehabilitated projects assisted under
    this section to the amount of operating cost increases incurred
    with respect to comparable rental dwelling units of various sizes
    and types in the same market area which are suitable for occupancy
    by families assisted under this section. Where no comparable
    dwelling units exist in the same market area, the Secretary shall
    have authority to approve such increases in accordance with the
    best available data regarding operating cost increases in rental
    dwelling units."
      Subsec. (c)(9), (10). Pub. L. 100-242, Sec. 262(a), (b), added
    pars. (9) and (10).
      Subsec. (d)(1)(A). Pub. L. 100-628, Sec. 1014(b), inserted cl.
    (i) designation after "except that" and added cl. (ii) before
    semicolon at end.
      Subsec. (d)(2). Pub. L. 100-628, Sec. 1005(b)(1), designated
    existing provisions as subpar. (A), substituted "(i)" and "(ii)"
    for "(A)" and "(B)" wherever appearing, and added subpar. (B).
      Pub. L. 100-628, Sec. 1005(c), added subpar. (C).
      Pub. L. 100-242, Sec. 148, inserted exception authorizing
    Secretary to permit public housing authority to approve attachment
    with respect to not more than 15 percent of assistance provided by
    public housing agency if requirements of cl. (B) are met.
      Subsec. (o)(1). Pub. L. 100-242, Sec. 143(a)(1), substituted "The
    Secretary may provide assistance" for "In connection with the
    rental rehabilitation and development program under section 1437o
    of this title or the rural housing preservation grant program under
    section 1490m of this title, or for other purposes, the Secretary
    is authorized to conduct a demonstration program".
      Subsec. (o)(3). Pub. L. 100-628, Sec. 1014(c), inserted sentence
    at end authorizing public housing agencies to provide for
    circumstances in which families who do not qualify for any
    preference are provided assistance under this subsection before
    families who do qualify for such preference.
      Subsec. (o)(4). Pub. L. 100-242, Sec. 143(a)(2), (3),
    redesignated par. (5) as (4) and struck out former par. (4) which
    read as follows: "The Secretary shall use substantially all of the
    authority to enter into contracts under this subsection to make
    assistance payments for families residing in dwellings to be
    rehabilitated with assistance under section 1437o of this title and
    for families displaced as a result of rental housing development
    assisted under such section or as a result of activities assisted
    under section 1490m of this title."
      Subsec. (o)(5). Pub. L. 100-242, Sec. 143(a)(3), redesignated
    par. (6) as (5). Former par. (5) redesignated (4).
      Subsec. (o)(6). Pub. L. 100-242, Sec. 143(a)(3), (b),
    redesignated par. (7) as (6), substituted "annually" for "as
    frequently as twice during any five-year period" in subpar. (A),
    and struck out subpar. (D) which directed that public housing
    agency consult with public and units of local government regarding
    impact of adjustments made under this section on the number of
    families that can be assisted. Former par. (6) redesignated (5).
      Subsec. (o)(7). Pub. L. 100-242, Sec. 143(a)(3), (c),
    redesignated par. (8) as (7), and struck out "not to exceed 5 per
    centum of the amount of" after "utilize". Former par. (7)
    redesignated (6).
      Subsec. (o)(8). Pub. L. 100-242, Sec. 143(a)(3), (d), added par.
    (8). Former par. (8) redesignated (7).
      Subsecs. (q) to (u). Pub. L. 100-242, Secs. 144-149, added
    subsecs. (q) to (u).
      Subsec. (u)(3). Pub. L. 100-628, Sec. 1006, added par. (3).
      Subsec. (v). Pub. L. 100-628, Sec. 1029, redesignated par. (2) as
    (1) and inserted "for project-based loan management assistance",
    added par. (2), and struck out former par. (1) which required that
    each contract entered into by Secretary for loan management
    assistance be for a term of 180 months.
      Pub. L. 100-242, Sec. 262(c), added subsec. (v).
      1984 - Subsec. (d)(2). Pub. L. 98-479, Sec. 102(b)(6),
    substituted "Where the Secretary enters into an annual
    contributions contract with a public housing agency pursuant to
    which the agency will enter into a contract for assistance payments
    with respect to an existing structure, the contract for assistance
    payments may not be attached to the structure unless (A) the
    Secretary and the public housing agency approve such action, and
    (B) the owner agrees to rehabilitate the structure other than with
    assistance under this chapter and otherwise complies with the
    requirements of this section." for "A contract under this section
    may not be attached to the structure except where the Secretary
    specifically waives the foregoing limitation and the public housing
    agency approves such action, and the owner agrees to rehabilitate
    the structure other than with assistance under this chapter and
    otherwise complies with the requirements of this section. The
    aggregate term of such contract and any contract extension may not
    be more than 180 months."
      Subsec. (e)(2). Pub. L. 98-479, Sec. 102(b)(7), inserted at end
    "The Secretary shall increase the amount of assistance provided
    under this paragraph above the amount of assistance otherwise
    permitted by this paragraph and subsection (c)(1) of this section,
    if the Secretary determines such increase necessary to assist in
    the sale of multifamily housing projects owned by the Department of
    Housing and Urban Development."
      Subsec. (n). Pub. L. 98-479, Sec. 102(b)(8), substituted
    "subsections (b)(1) and (e)(2) of this section" for "subsection
    (b)(1), subsection (e)(2) of this section".
      Subsec. (o)(3)(C). Pub. L. 98-479, Sec. 102(b)(9), added cl. (C).
      Subsec. (o)(7)(D). Pub. L. 98-479, Sec. 102(b)(10), inserted
    "unit of" before "general".
      1983 - Subsec. (a). Pub. L. 98-181, Sec. 209(a)(1), substituted
    "existing housing" for "existing, newly constructed, and
    substantially rehabilitated housing".
      Subsec. (b)(2). Pub. L. 98-181, Sec. 209(a)(2), repealed par. (2)
    which related to authorization of assistance payments by the
    Secretary and contractually obligated public housing agencies for
    construction or substantial rehabilitation of housing, modest in
    design, with units for occupancy by low-income families and
    requirement that contracts providing housing assistance and entered
    into after Aug. 13, 1981, specify the number of units available for
    occupancy by eligible families.
      Subsec. (d)(1)(A). Pub. L. 98-181, Sec. 203(b)(1), inserted ",
    are paying more than 50 per centum of family income for rent,".
      Subsec. (d)(2). Pub. L. 98-181, Sec. 208, inserted second and
    third sentences respecting waiver of limitation and limitation of
    contract and any extension to prescribed period.
      Subsec. (e)(1). Pub. L. 98-181, Sec. 209(a)(3), redesignated par.
    (4) as (1) and struck out former par. (1) which prescribed terms of
    20 to 30 years for newly constructed or substantially rehabilitated
    dwelling units.
      Subsec. (e)(2). Pub. L. 98-181, Sec. 209(a)(3), redesignated par.
    (5) as (2) and struck out former par. (2) which required owners to
    assume ownership, management, and maintenance responsibilities,
    including selection of tenants and termination of tenancy for newly
    constructed or substantially rehabilitated dwelling units.
      Pub. L. 98-181, Sec. 203(b)(2), inserted ", are paying more than
    50 per centum of family income for rent," after "substandard
    housing".
      Subsec. (e)(3). Pub. L. 98-181, Sec. 209(a)(3), struck out par.
    (3) which required that construction or substantial rehabilitation
    of dwelling units be eligible for mortgages insured under the
    National Housing Act and that assistance not be withheld by reason
    of availability of mortgage insurance under section 1715z-9 of
    title 12 or tax-exempt status obligations used to finance the
    construction or rehabilitation.
      Subsec. (e)(4), (5). Pub. L. 98-181, Sec. 209(a)(3), redesignated
    pars. (4) and (5) as (1) and (2), respectively.
      Subsec. (i). Pub. L. 98-181, Sec. 209(a)(4), repealed subsec. (i)
    which related to contracts with respect to substantially
    rehabilitated dwelling units.
      Subsecs. (l), (m). Pub. L. 98-181, Sec. 209(a)(5), repealed
    subsec. (l) relating to limitation of cost and rent increases, and
    subsec. (m) relating to preference for projects on suitable State
    and local government tracts.
      Subsec. (n). Pub. L. 98-181, Sec. 209(a)(6), substituted
    "subsection (e)(2) of this section" for "subsection (e)(5) and
    subsection (i) of this section".
      Pub. L. 98-181, Sec. 210(1), (2), inserted "subsection (b)(1) of
    this section," before "subsection (e)(5)" and a comma after
    "subsection (e)(5) of this section".
      Subsec. (n)(3). Pub. L. 98-181, Sec. 210(3)-(5), added par. (3).
      Subsec. (o). Pub. L. 98-181, Sec. 207, added subsec. (o).
      Subsec. (p). Pub. L. 98-181, Sec. 211, added subsec. (p).
      1981 - Subsec. (b)(2). Pub. L. 97-35, Secs. 324(1), 325(1),
    inserted provisions relating to increasing housing opportunities
    for very low-income families and provisions relating to
    availability for occupancy the number of units for which assistance
    is committed.
      Subsec. (c)(2)(D). Pub. L. 97-35, Sec. 324(2), added par. (D).
      Subsec. (c)(3). Pub. L. 97-35, Sec. 322(e)(1), revised formula
    for computation of amount of monthly assistance and struck out
    authority to make reviews at least every two years in cases of
    elderly families.
      Subsec. (c)(5). Pub. L. 97-35, Sec. 325(2), inserted reference to
    mortgages under section 1720 of title 12.
      Subsec. (c)(7). Pub. L. 97-35, Sec. 322(e)(2), struck out par.
    (7) relating to percentage requirement for families with very low
    income and redesignated former par. (8) as (7).
      Subsec. (c)(8). Pub. L. 97-35, Sec. 326(a), added par. (8).
    Former par. (8) redesignated (7).
      Subsec. (d)(1)(B). Pub. L. 97-35, Sec. 326(e)(1), substituted
    provisions relating to terms and conditions, and termination of the
    lease by the owner for provisions relating to right of the agency
    to give notice to terminate and owner the right to make
    representation to agency for termination of the tenancy.
      Subsec. (f). Pub. L. 97-35, Sec. 322(e)(3), struck out pars. (1)
    to (3) which defined "lower income families", "very low-income
    families" and "income", respectively, and redesignated pars. (4) to
    (6) as (1) to (3), respectively.
      Subsec. (h). Pub. L. 97-35, Sec. 322(e)(4), (5), struck out
    reference to section 1437a(1) of this title.
      Subsec. (j). Pub. L. 97-35, Sec. 329H(a), generally revised and
    reorganized provisions and, as so revised and reorganized,
    substituted provisions relating to contracts to make assistance
    payments to assist lower income families by making rental
    assistance payments on behalf of such family, for provisions
    relating to annual contributions contracts to assist lower income
    families by making rental assistance payments.
      Subsec. (j)(3). Pub. L. 97-35, Sec. 322(e)(6), substituted in
    par. (3) "the rent the family is required to pay under section
    1437a(a) of this title" for "25 per centum of one-twelfth of the
    annual income of such family".
      Subsecs. (l) to (n). Pub. L. 97-35, Sec. 324(3), added subsecs.
    (l) to (n).
      1980 - Subsec. (c)(1). Pub. L. 96-399, Sec. 203(a), inserted
    provision that 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 Oct. 1, 1980.
      Subsec. (e)(5). Pub. L. 96-399, Sec. 203(b), inserted provision
    relating to the authority of the Secretary, notwithstanding subsec.
    (c)(1) of this section, to establish monthly rent exceeding fair
    market rental where cost levels so require or where necessary to
    the implementation of a local housing assistance plan.
      Subsec. (j). Pub. L. 96-399, Sec. 308(c)(3), substituted
    "manufactured home" for "mobile home" wherever appearing.
      1979 - Subsec. (c)(3). Pub. L. 96-153, Sec. 202(b), substituted
    new provisions for computation of the amount of monthly assistance
    payments with respect to dwelling units and laid down criteria to
    be followed by the Secretary in regard to payments to families with
    different income levels.
      Subsec. (d)(1)(A). Pub. L. 96-153, Sec. 206(b)(1), substituted
    "Secretary and the agency, except that the tenant selection
    criteria used by the owner shall give preference to families which
    occupy substandard housing or are involuntarily displaced at the
    time they are seeking assistance under this section." for
    "Secretary and the agency;".
      Subsec. (e)(1). Pub. L. 96-153, Sec. 211(b), substituted "term of
    less than two hundred and forty months" for "term of less than one
    month".
      Subsec. (e)(2). Pub. L. 96-153, Sec. 206(b)(2), substituted
    "performance of such responsibilities), except that the tenant
    selection criteria shall give preference to families which occupy
    substandard housing or are involuntarily displaced at the time they
    are seeking housing assistance under this section" for "performance
    of such responsibilities)".
      Subsec. (k). Pub. L. 96-153, Sec. 210, added subsec. (k).
      1978 - Subsec. (e)(5). Pub. L. 95-557, Sec. 206(e), added par.
    (5).
      Subsec. (i). Pub. L. 95-557, Sec. 206(d)(1), added subsec. (i).
      Subsec. (j). Pub. L. 95-557, Sec. 206(f), added subsec. (j).
      1977 - Subsec. (c), Pub. L. 95-128, Sec. 201(c), (d), inserted in
    par. (1) prohibition against high-rise elevator projects for
    families with children after Oct. 12, 1977, and struck out from
    par. (4) provision which prohibited payment after the sixty-day
    period if the unoccupied unit was in a project insured under the
    National Housing Act, except pursuant to section 1715z-9 of title
    12.
      Subsec. (d)(3). Pub. L. 95-128, Sec. 201(e)(1), added par. (3).
      Subsec. (e)(1). Pub. L. 95-24 substituted "three hundred and
    sixty months, except that such term may not exceed two hundred and
    forty months in the case of a project financed with assistance of a
    loan made by, or insured, guaranteed or intended for purchase by,
    the Federal Government, other than pursuant to section 1715z-9 of
    title 12" for "two hundred and forty months" and "Notwithstanding
    the preceding sentence, in the case of" for "In the case of".
      Subsec. (e)(2). Pub. L. 95-128, Sec. 201(e)(2), inserted
    provision respecting the Secretary's approval of any public housing
    agency for assumption of management and maintenance
    responsibilities of dwelling units under the preceding sentence.
      1976 - Subsec. (c)(4). Pub. L. 94-375, Sec. 2(d), inserted
    provision extending payments to newly constructed or substantially
    rehabilitated unoccupied units in an amount equal to the debt
    service of such unit for a period not to exceed one year, provided
    that a good faith effort is being made to fill the unit, the unit
    provides decent and safe housing, the unit is not insured under the
    National Housing Act, except pursuant to section 1715z-9 of title
    12, and the revenues from the project do not exceed the cost.
      Subsec. (e)(1). Pub. L. 94-375, Sec. 2(g), inserted "or the
    Farmers' Home Administration" after "State or local agency".
      Subsec. (f)(6). Pub. L. 94-375, Sec. 2(e), added par. (6).

                     EFFECTIVE DATE OF 2002 AMENDMENT                 
      Amendment by Pub. L. 107-116 effective Sept. 30, 2001, see
    section 603 of Pub. L. 107-116, set out as a note under section
    1715n of Title 12, Banks and Banking.

                     EFFECTIVE DATE OF 2000 AMENDMENT                 
      Pub. L. 106-569, title III, Sec. 301(b), Dec. 27, 2000, 114 Stat.
    2952, provided that: "The amendments made by subsection (a)
    [amending this section] shall take effect immediately after the
    amendments made by section 555(c) of the Quality Housing and Work
    Responsibility Act of 1998 [Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note below] take effect pursuant
    to such section."
      Pub. L. 106-569, title IX, Sec. 902(b), Dec. 27, 2000, 114 Stat.
    3026, provided that: "The amendment under subsection (a) [amending
    this section] shall be made and shall apply - 
        "(1) upon the enactment of this Act, if the Departments of
      Veterans Affairs and Housing and Urban Development, and
      Independent Agencies Appropriations Act, 2001 [H.R. 5482, as
      enacted by section 1(a)(1) of Pub. L. 106-377], is enacted before
      the enactment of this Act; and
        "(2) immediately after the enactment of such appropriations
      Act, if such appropriations Act is enacted after the enactment of
      this Act."
      Pub. L. 106-569, title IX, Sec. 903(b), Dec. 27, 2000, 114 Stat.
    3026, provided that: "The amendment under subsection (a) [amending
    this section] shall be made and shall apply - 
        "(1) upon the enactment of this Act, if the Departments of
      Veterans Affairs and Housing and Urban Development, and
      Independent Agencies Appropriations Act, 2001 [H.R. 5482, as
      enacted by section 1(a)(1) of Pub. L. 106-377], is enacted before
      the enactment of this Act; and
        "(2) immediately after the enactment of such appropriations
      Act, if such appropriations Act is enacted after the enactment of
      this Act."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-276, title II, Sec. 209(b), Oct. 21, 1998, 112 Stat.
    2485, provided that: "This section [amending this section] shall
    take effect 60 days after the later of October 1, 1998 or the date
    of the enactment of this Act [Oct. 21, 1998]."
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.
      Amendment by section 514(b)(1) of Pub. L. 105-276 effective and
    applicable beginning upon Oct. 21, 1998, see section 514(g) of Pub.
    L. 105-276, set out as a note under section 1701s of Title 12,
    Banks and Banking.
      Pub. L. 105-276, title V, Sec. 545(c), Oct. 21, 1998, 112 Stat.
    2604, provided that: "Notwithstanding the amendment made by
    subsection (a) of this section [amending this section], any
    amendments to section 8(o) of the United States Housing Act of 1937
    (42 U.S.C. 1437f(o)) that are contained in title II of this Act
    [see Tables for classification] shall apply with respect to the
    provision of assistance under such section during the period before
    implementation (pursuant to section 559 of this title [set out as a
    Regulations and Transition Provisions note below]) of such section
    8(o) as amended by subsection (a) of this section."
      Pub. L. 105-276, title V, Sec. 549(a)(3), Oct. 21, 1998, 112
    Stat. 2607, provided that: "The amendments under this subsection
    [amending this section] are made on, and shall apply beginning
    upon, the date of the enactment of this Act [Oct. 21, 1998], and
    shall apply thereafter, notwithstanding section 203 of the
    Departments of Veterans Affairs and Housing and Urban Development,
    and Independent Agencies Appropriations Act, 1996 [section 101(e)
    [title II, Sec. 203] of Pub. L. 104-134, amending this section and
    enacting provisions set out as an Effective and Termination Dates
    of 1996 Amendments note below] (42 U.S.C. 1437f note) or any other
    provision of law (including the expiration of the applicability of
    such section 203 or any repeal of such section 203)."
      Pub. L. 105-276, title V, Sec. 554, Oct. 21, 1998, 112 Stat.
    2611, provided that: "Notwithstanding section 203(d) of the
    Departments of Veterans Affairs and Housing and Urban Development,
    and Independent Agencies Appropriations Act, 1996 (as contained in
    section 101(e) of the Omnibus Consolidated Rescissions and
    Appropriations Act of 1996 (Public Law 104-134; 42 U.S.C. 1437f
    note) [see Effective and Termination Dates of 1996 Amendments note
    below]), section 8 of the United States Housing Act of 1937 (42
    U.S.C. 1437f) is amended by striking subsection (t). This section
    shall apply beginning upon, and the amendment made by this section
    is made on, and shall apply beginning upon, the date of the
    enactment of this Act [Oct. 21, 1998]."
      Pub. L. 105-276, title V, Sec. 555(c), Oct. 21, 1998, 112 Stat.
    2613, provided that: "This section [amending this section and
    enacting provisions set out as a note below] shall take effect on,
    and the amendments made by this section are made on, and shall
    apply beginning upon, the date of the enactment of this Act [Oct.
    21, 1998]."
      Amendment by section 565(c) of Pub. L. 105-276 effective and
    applicable beginning upon Oct. 21, 1998, see section 565(e) of Pub.
    L. 105-276, set out as a note under section 1437d of this title.

            EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS        
      Section 101(e) [title II, Sec. 203(d)] of Pub. L. 104-134, as
    amended by Pub. L. 104-204, title II, Sec. 201(e), Sept. 26, 1996,
    110 Stat. 2893; Pub. L. 105-65, title II, Sec. 201(b), Oct. 27,
    1997, 111 Stat. 1364, provided that: "The provisions of this
    section [amending this section] shall be effective for fiscal years
    1996, 1997, and 1998 only."
      Amendment by section 402(d)(2), (3), (6)(A)(iii), (iv) of Pub. L.
    104-99 effective Jan. 26, 1996, only for fiscal years 1996, 1997,
    and 1998, and to cease to be effective Oct. 21, 1998, see section
    402(f) of Pub. L. 104-99, as amended, and section 514(f) of Pub. L.
    105-276, set out as notes under section 1437a of this title.

             EFFECTIVE AND TERMINATION DATES OF 1994 AMENDMENT         
      Amendment by Pub. L. 103-327 enacting subsec. (aa), effective
    only during fiscal year 1995, see title II in part of Pub. L. 103-
    327, set out as a note under section 1715n of Title 12, Banks and
    Banking.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by section 289(b)(1) of Pub. L. 101-625, repealing
    subsec. (e)(2) of this section, effective Oct. 1, 1991; however,
    provisions of subsec. (e)(2) to remain in effect with respect to
    single room occupancy dwellings as authorized by subchapter IV
    (Sec. 11361 et seq.) of chapter 119 of this title, see section
    12839(a)(4), (b) of this title.

            EFFECTIVE DATE OF 1983 AMENDMENT; SAVINGS PROVISION        
      Section 209(b) Pub. L. 98-181 provided that: "The amendments made
    by subsection (a) [amending this section] shall take effect on
    October 1, 1983, except that the provisions repealed shall remain
    in effect - 
        "(1) with respect to any funds obligated for a viable project
      under section 8 of the United States Housing Act of 1937 [this
      section] prior to January 1, 1984; and
        "(2) with respect to any project financed under section 202 of
      the Housing Act of 1959 [12 U.S.C. 1701q]."

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendments by sections 322(e) and 329H(a) of Pub. L. 97-35
    effective Oct. 1, 1981, and amendments by sections 324, 325, and
    326(a) of Pub. L. 97-35 applicable with respect to contracts
    entered into on or after Oct. 1, 1981, see section 371 of Pub. L.
    97-35, set out as an Effective Date note under section 3701 of
    Title 12, Banks and Banking.
      Section 326(e)(2) of Pub. L. 97-35 provided that: "The amendment
    made by paragraph (1) [amending this section] shall apply with
    respect to leases entered into on or after October 1, 1981."

                     EFFECTIVE DATE OF 1979 AMENDMENT                 
      Amendment by section 202(b) of Pub. L. 96-153 effective Jan. 1,
    1980, except with respect to amount of tenant contribution required
    of families whose occupancy commenced prior to such date, see
    section 202(c) of Pub. L. 96-153, set out as a note under section
    1437a of this title.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Section 206(d)(2) of Pub. L. 95-557 provided that: "The amendment
    made by this subsection [amending this section] shall become
    effective with respect to contracts entered into on or after 270
    days following the date of enactment of this Act [Oct. 31, 1978]."
      Amendment by section 206(e), (f) of Pub. L. 95-557 effective Oct.
    1, 1978, see section 206(h) of Pub. L. 95-557, set out as a note
    under section 1437c of this title.

                              EFFECTIVE DATE                          
      Section effective not later than Jan. 1, 1975, see section 201(b)
    of Pub. L. 93-383, set out as a note under section 1437 of this
    title.

                     APPLICABILITY OF 1994 AMENDMENTS                 
      Title II of Pub. L. 103-327, 108 Stat. 2315, third par., provided
    that: "The immediately foregoing amendment [amending subsec.
    (c)(2)(A) of this section by authorizing modification of rent
    adjustment where adjusted rent exceeds fair market rental] shall
    apply to all contracts for new construction, substantial
    rehabilitation, and moderate rehabilitation projects under which
    rents are adjusted under section 8(c)(2)(A) of such Act [subsec.
    (c)(2)(A) of this section] by applying an annual adjustment
    factor."
      Title II of Pub. L. 103-327, 108 Stat. 2315, fifth par., provided
    that: "The immediately foregoing [amending subsec. (c)(2)(A) of
    this section by inserting two sentences at end authorizing
    reduction of annual adjustment factor in certain circumstances]
    shall hereafter apply to all contracts that are subject to section
    8(c)(2)(A) of such Act [subsec. (c)(2)(A) of this section] and that
    provide for rent adjustments using an annual adjustment factor."

                   REGULATIONS AND TRANSITION PROVISIONS               
      Pub. L. 105-276, title V, Sec. 559, Oct. 21, 1998, 112 Stat.
    2615, provided that:
      "(a) Interim Regulations. - The Secretary of Housing and Urban
    Development shall issue such interim regulations as may be
    necessary to implement the amendments made by this subtitle
    [subtitle C (Secs. 545-559) of title V of Pub. L. 105-276, see
    Tables for classification] and other provisions in this title [see
    Tables for classification] which relate to section 8(o) of the
    United States Housing Act of 1937 [42 U.S.C. 1437f(o)].
      "(b) Final Regulations. - The Secretary shall issue final
    regulations necessary to implement the amendments made by this
    subtitle and other provisions in this title which relate to section
    8(o) of the United States Housing Act of 1937 [42 U.S.C. 1437f(o)]
    not later then 1 year after the date of the enactment of this Act
    [Oct. 21, 1998].
      "(c) Factors For Consideration. - Before the publication of the
    final regulations under subsection (b), in addition to public
    comments invited in connection with the publication of the interim
    rule, the Secretary shall - 
        "(1) seek recommendations on the implementation of sections
      8(o)(6)(B), 8(o)(7)(B), and 8(o)(10)(D) of the United States
      Housing Act of 1937 [42 U.S.C. 1437f(o)(6)(B), (7)(B), (10)(D)]
      and of renewals of expiring tenant-based assistance from
      organizations representing - 
          "(A) State or local public housing agencies;
          "(B) owners and managers of tenant-based housing assisted
        under section 8 of the United States Housing Act of 1937;
          "(C) families receiving tenant-based assistance under section
        8 of the United States Housing Act of 1937; and
          "(D) legal service organizations; and
        "(2) convene not less than 2 public forums at which the persons
      or organizations making recommendations under paragraph (1) may
      express views concerning the proposed disposition of the
      recommendations.
      "(d) Conversion Assistance. - 
        "(1) In general. - The Secretary may provide for the conversion
      of assistance under the certificate and voucher programs under
      subsections (b) and (o) of section 8 of the United States Housing
      Act of 1937 [42 U.S.C. 1437f(b), (o)], as in effect before the
      applicability of the amendments made by this subtitle, to the
      voucher program established by the amendments made by this
      subtitle.
        "(2) Continued applicability. - The Secretary may apply the
      provisions of the United States Housing Act of 1937 [42 U.S.C.
      1437 et seq.], or any other provision of law amended by this
      subtitle, as those provisions were in effect immediately before
      the date of the enactment of this Act [Oct. 21, 1998] (except
      that such provisions shall be subject to any amendments to such
      provisions that may be contained in title II of this Act [see
      Tables for classification]), to assistance obligated by the
      Secretary before October 1, 1999, for the certificate or voucher
      program under section 8 of the United States Housing Act of 1937
      [42 U.S.C. 1437f], if the Secretary determines that such action
      is necessary for simplification of program administration,
      avoidance of hardship, or other good cause.
      "(e) Effective Date. - This section shall take effect on the date
    of the enactment of this Act [Oct. 21, 1998]."

                                REGULATIONS                            
      Pub. L. 105-276, title V, Sec. 556(b), Oct. 21, 1998, 112 Stat.
    2613, provided that: "The Secretary of Housing and Urban
    Development shall implement the provision added by the amendment
    made by subsection (a) [amending this section] through notice, not
    later than December 31, 1998, and shall issue final regulations
    which shall be developed pursuant to the procedures for issuance of
    regulations under the negotiated rulemaking procedure under
    subchapter III of chapter 5 of title 5, United States Code, not
    later than one year after the date of the enactment of this Act
    [Oct. 21, 1998]."
      For provisions requiring Secretary of Housing and Urban
    Development to issue regulations necessary to implement amendment
    to this section by Pub. L. 103-233, see section 101(f) of Pub. L.
    103-233, set out as a note under section 1701z-11 of Title 12,
    Banks and Banking.
      For provision requiring that not later than expiration of the 180-
    day period beginning Oct. 28, 1992, the Secretary of Housing and
    Urban Development shall issue regulations implementing amendments
    to this section by section 545 of Pub. L. 101-625, see section 104
    of Pub. L. 102-550, set out as a note under section 1437d of this
    title.
      Section 149 of Pub. L. 102-550 provided that: "The Secretary of
    Housing and Urban Development shall issue any final regulations
    necessary to carry out the amendments made by section 547 of the
    Cranston-Gonzalez National Affordable Housing Act [Pub. L. 101-625,
    amending this section] not later than the expiration of the 180-day
    period beginning on the date of the enactment of this Act [Oct. 28,
    1992]. The regulations shall be issued after notice and opportunity
    for public comment pursuant to the provisions of section 553 of
    title 5, United States Code (notwithstanding subsections (a)(2),
    (b)(B), and (d)(3) of such section) and shall take effect upon the
    expiration of the 30-day period beginning upon issuance."
      Section 151 of Pub. L. 102-550 provided that: "The Secretary of
    Housing and Urban Development shall issue any final regulations
    necessary to carry out the provisions of section 555 of the
    Cranston-Gonzalez National Affordable Housing Act [Pub. L. 101-625]
    (42 U.S.C. 1437f note) not later than the expiration of the 180-day
    period beginning on the date of the enactment of this Act [Oct. 28,
    1992]. The regulations shall be issued after notice and opportunity
    for public comment pursuant to the provisions of section 553 of
    title 5, United States Code (notwithstanding subsections (a)(2),
    (b)(B), and (d)(3) of such section) and shall take effect upon the
    expiration of the 30-day period beginning upon issuance."

                             SAVINGS PROVISION                         
      Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 232(b)], Oct. 27,
    2000, 114 Stat. 1441, 1441A-34, provided that: "In the case of any
    dwelling unit that, upon the date of the enactment of this Act
    [Oct. 27, 2000], is assisted under a housing assistance payment
    contract under section 8(o)(13) of the United States Housing Act of
    1937 (42 U.S.C. 1437f(o)(13)) as in effect before such enactment,
    such assistance may be extended or renewed notwithstanding the
    requirements under subparagraphs (C), (D), and (E) of such section
    8(o)(13), as amended by subsection (a)."

             PURPOSES OF MARK-TO-MARKET EXTENSION ACT OF 2001         
      Pub. L. 107-116, title VI, Sec. 602, Jan. 10, 2002, 115 Stat.
    2221, provided that: "The purposes of this title [see Short Title
    of 2002 Amendment note set out under section 1437 of this title]
    are - 
        "(1) to continue the progress of the Multifamily Assisted
      Housing Reform and Affordability Act of 1997 [title V of Pub. L.
      105-65, see Short Title of 1997 Amendment note set out under
      section 1701 of Title 12, Banks and Banking] (referred to in this
      section as 'that Act');
        "(2) to ensure that properties that undergo mortgage
      restructurings pursuant to that Act are rehabilitated to a
      standard that allows the properties to meet their long-term
      affordability requirements;
        "(3) to ensure that, for properties that undergo mortgage
      restructurings pursuant to that Act, reserves are set at adequate
      levels to allow the properties to meet their long-term
      affordability requirements;
        "(4) to ensure that properties that undergo mortgage
      restructurings pursuant to that Act are operated efficiently, and
      that operating expenses are sufficient to ensure the long-term
      financial and physical integrity of the properties;
        "(5) to ensure that properties that undergo rent restructurings
      have adequate resources to maintain the properties in good
      condition;
        "(6) to ensure that the Office of Multifamily Housing
      Assistance Restructuring of the Department of Housing and Urban
      Development continues to focus on the portfolio of properties
      eligible for restructuring under that Act;
        "(7) to ensure that the Department of Housing and Urban
      Development carefully tracks the condition of those properties on
      an ongoing basis;
        "(8) to ensure that tenant groups, nonprofit organizations, and
      public entities continue to have the resources for building the
      capacity of tenant organizations in furtherance of the purposes
      of subtitle A of that Act [subtitle A of title V of Pub. L. 105-
      65, set out in a note below]; and
        "(9) to encourage the Office of Multifamily Housing Assistance
      Restructuring to continue to provide participating administrative
      entities, including public participating administrative entities,
      with the flexibility to respond to specific problems that
      individual cases may present, while ensuring consistent outcomes
      around the country."

     PILOT PROGRAM FOR HOMEOWNERSHIP ASSISTANCE FOR DISABLED FAMILIES 
      Pub. L. 106-569, title III, Sec. 302, Dec. 27, 2000, 114 Stat.
    2953, provided that:
      "(a) In General. - A public housing agency providing tenant-based
    assistance on behalf of an eligible family under section 8 of the
    United States Housing Act of 1937 (42 U.S.C. 1437f) may provide
    assistance for a disabled family that purchases a dwelling unit
    (including a dwelling unit under a lease-purchase agreement) that
    will be owned by one or more members of the disabled family and
    will be occupied by the disabled family, if the disabled family - 
        "(1) purchases the dwelling unit before the expiration of the 3-
      year period beginning on the date that the Secretary first
      implements the pilot program under this section;
        "(2) demonstrates that the disabled family has income from
      employment or other sources (including public assistance), 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);
        "(3) except as provided by the Secretary, demonstrates at the
      time the disabled family initially receives tenant-based
      assistance under this section that one or more adult members of
      the disabled family have achieved employment for the period as
      the Secretary shall require;
        "(4) participates in a homeownership and housing counseling
      program provided by the agency; and
        "(5) meets any other initial or continuing requirements
      established by the public housing agency in accordance with
      requirements established by the Secretary.
      "(b) Determination of Amount of Assistance. - 
        "(1) In general. - 
          "(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) Thirty percent of the monthly adjusted income of the
          disabled family.
            "(ii) Ten percent of the monthly income of the disabled
          family.
            "(iii) If the disabled 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 disabled family, is specifically
          designated by that agency to meet the housing costs of the
          disabled 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).
        "(2) Calculation of amount. - 
          "(A) Low-income families. - A disabled family that is a low-
        income family shall be eligible to receive 100 percent of the
        amount calculated under paragraph (1).
          "(B) Income between 81 and 89 percent of median. - A disabled
        family whose income is between 81 and 89 percent of the median
        for the area shall be eligible to receive 66 percent of the
        amount calculated under paragraph (1).
          "(C) Income between 90 and 99 percent of median. - A disabled
        family whose income is between 90 and 99 percent of the median
        for the area shall be eligible to receive 33 percent of the
        amount calculated under paragraph (1).
          "(D) Income more than 99 percent of median. - A disabled
        family whose income is more than 99 percent of the median for
        the area shall not be eligible to receive assistance under this
        section.
      "(c) Inspections and Contract Conditions. - 
        "(1) In general. - Each contract for the purchase of a dwelling
      unit to be assisted under this section shall - 
          "(A) provide for pre-purchase inspection of the dwelling unit
        by an independent professional; and
          "(B) require that any cost of necessary repairs be paid by
        the seller.
        "(2) Annual inspections not required. - The requirement under
      subsection (o)(8)(A)(ii) of section 8 of the United States
      Housing Act of 1937 [42 U.S.C. 1437f(o)(8)(A)(ii)] for annual
      inspections shall not apply to dwelling units assisted under this
      section.
      "(d) Other Authority of the Secretary. - The Secretary may - 
        "(1) limit the term of assistance for a disabled family
      assisted under this section;
        "(2) provide assistance for a disabled family for the entire
      term of a mortgage for a dwelling unit if the disabled family
      remains eligible for such assistance for such term; and
        "(3) modify the requirements of this section as the Secretary
      determines to be necessary to make appropriate adaptations for
      lease-purchase agreements.
      "(e) Assistance Payments Sent to Lender. - The Secretary shall
    remit assistance payments under this section directly to the
    mortgagee of the dwelling unit purchased by the disabled family
    receiving such assistance payments.
      "(f) Inapplicability of Certain Provisions. - Assistance under
    this section shall not be subject to the requirements of the
    following provisions:
        "(1) Subsection (c)(3)(B) of section 8 of the United States
      Housing Act of 1937 [42 U.S.C. 1437f(c)(3)(B)].
        "(2) Subsection (d)(1)(B)(i) of section 8 of the United States
      Housing Act of 1937.
        "(3) Any other provisions of section 8 of the United States
      Housing Act of 1937 governing maximum amounts payable to owners
      and amounts payable by assisted families.
        "(4) Any other provisions of section 8 of the United States
      Housing Act of 1937 concerning contracts between public housing
      agencies and owners.
        "(5) Any other provisions of the United States Housing Act of
      1937 [42 U.S.C. 1437 et seq.] that are inconsistent with the
      provisions of this section.
      "(g) Reversion to Rental Status. - 
        "(1) Non-fha mortgages. - If a disabled family receiving
      assistance under this section defaults under a mortgage not
      insured under the National Housing Act [12 U.S.C. 1701 et seq.],
      the disabled family may not continue to receive rental assistance
      under section 8 of the United States Housing Act of 1937 [42
      U.S.C. 1437f] unless it complies with requirements established by
      the Secretary.
        "(2) All mortgages. - A disabled family receiving assistance
      under this section that defaults under a mortgage may not receive
      assistance under this section for occupancy of another dwelling
      unit owned by one or more members of the disabled family.
        "(3) Exception. - This subsection shall not apply if the
      Secretary determines that the disabled family receiving
      assistance under this section defaulted under a mortgage due to
      catastrophic medical reasons or due to the impact of a federally
      declared major disaster or emergency.
      "(h) Regulations. - Not later than 90 days after the date of the
    enactment of this Act [Dec. 27, 2000], the Secretary shall issue
    regulations to implement this section. Such regulations may not
    prohibit any public housing agency providing tenant-based
    assistance on behalf of an eligible family under section 8 of the
    United States Housing Act of 1937 [42 U.S.C. 1437f] from
    participating in the pilot program under this section.
      "(i) Definition of Disabled Family. - For the purposes of this
    section, the term 'disabled family' has the meaning given the term
    'person with disabilities' in section 811(k)(2) of the Cranston-
    Gonzalez National Affordable Housing Act (42 U.S.C. 8013(k)(2))."

                   DETERMINATION OF ADMINISTRATIVE FEES               
      Pub. L. 108-7, div. K, title II, [(5)], Feb. 20, 2003, 117 Stat.
    485, which provided that the fee otherwise authorized under subsec.
    (q) of this section was to be determined in accordance with subsec.
    (q) as in effect immediately before Oct. 21, 1998, was from the
    Departments of Veterans Affairs and Housing and Urban Development,
    and Independent Agencies Appropriations Act, 2003 and was not
    repeated in subsequent appropriation acts. Similar provisions were
    contained in the following prior appropriation acts:
      Pub. L. 107-73, title II, Nov. 26, 2001, 115 Stat. 660.
      Pub. L. 106-377, Sec. 1(a)(1) [title II], Oct. 27, 2000, 114
    Stat. 1441, 1441A-12.
      Pub. L. 106-74, title II, Oct. 20, 1999, 113 Stat. 1056.

             HOMEOWNERSHIP OPPORTUNITIES DEMONSTRATION PROGRAM         
      Pub. L. 105-276, title V, Sec. 555(b), Oct. 21, 1998, 112 Stat.
    2613, provided that:
      "(1) In general. - With the consent of the affected public
    housing agencies, the Secretary may carry out (or contract with 1
    or more entities to carry out) a demonstration program under
    section 8(y) of the United States Housing Act of 1937 (42 U.S.C.
    1437f(y)) to expand homeownership opportunities for low-income
    families.
      "(2) Report. - The Secretary shall report annually to Congress on
    activities conducted under this subsection."

                      MULTIFAMILY HOUSING ASSISTANCE                  
      Subtitles A (Secs. 511-524) and D (Secs. 571-579) of title V of
    Pub. L. 105-65, as amended by Pub. L. 105-276, title V, Secs.
    549(c), 597(b), Oct. 21, 1998, 112 Stat. 2608, 2659; Pub. L. 106-
    74, title II, Secs. 213(b), 219, title V, Secs. 531(a)-(c), 534,
    538(b), Oct. 20, 1999, 113 Stat. 1074, 1075, 1109-1116, 1120, 1123;
    Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675; Pub. L. 107-
    116, title VI, Secs. 611-614, 616(a)(1), (b), 621, 622(a), 623(a),
    624, 625, Jan. 10, 2002, 115 Stat. 2222-2227, provided that:

    "SUBTITLE A - FHA-INSURED MULTIFAMILY HOUSING MORTGAGE AND HOUSING
                         ASSISTANCE RESTRUCTURING

      "SEC. 511. FINDINGS AND PURPOSES.
      "(a) Findings. - Congress finds that - 
        "(1) there exists throughout the Nation a need for decent,
      safe, and affordable housing;
        "(2) as of the date of enactment of this Act [Oct. 27, 1997],
      it is estimated that - 
          "(A) the insured multifamily housing portfolio of the Federal
        Housing Administration consists of 14,000 rental properties,
        with an aggregate unpaid principal mortgage balance of
        $38,000,000,000; and
          "(B) approximately 10,000 of these properties contain housing
        units that are assisted with project-based rental assistance
        under section 8 of the United States Housing Act of 1937 [42
        U.S.C. 1437f];
        "(3) FHA-insured multifamily rental properties are a major
      Federal investment, providing affordable rental housing to an
      estimated 2,000,000 low- and very low-income families;
        "(4) approximately 1,600,000 of these families live in dwelling
      units that are assisted with project-based rental assistance
      under section 8 of the United States Housing Act of 1937;
        "(5) a substantial number of housing units receiving project-
      based assistance have rents that are higher than the rents of
      comparable, unassisted rental units in the same housing rental
      market;
        "(6) many of the contracts for project-based assistance will
      expire during the several years following the date of enactment
      of this Act;
        "(7) it is estimated that - 
          "(A) if no changes in the terms and conditions of the
        contracts for project-based assistance are made before fiscal
        year 2000, the cost of renewing all expiring rental assistance
        contracts under section 8 of the United States Housing Act of
        1937 for both project-based and tenant-based rental assistance
        will increase from approximately $3,600,000,000 in fiscal year
        1997 to over $14,300,000,000 by fiscal year 2000 and some
        $22,400,000,000 in fiscal year 2006;
          "(B) of those renewal amounts, the cost of renewing project-
        based assistance will increase from $1,200,000,000 in fiscal
        year 1997 to almost $7,400,000,000 by fiscal year 2006; and
          "(C) without changes in the manner in which project-based
        rental assistance is provided, renewals of expiring contracts
        for project-based rental assistance will require an
        increasingly larger portion of the discretionary budget
        authority of the Department of Housing and Urban Development in
        each subsequent fiscal year for the foreseeable future;
        "(8) absent new budget authority for the renewal of expiring
      rental contracts for project-based assistance, many of the FHA-
      insured multifamily housing projects that are assisted with
      project-based assistance are likely to default on their FHA-
      insured mortgage payments, resulting in substantial claims to
      the FHA General Insurance Fund and Special Risk Insurance Fund;
        "(9) more than 15 percent of federally assisted multifamily
      housing projects are physically or financially distressed,
      including a number which suffer from mismanagement;
        "(10) due to Federal budget constraints, the downsizing of the
      Department of Housing and Urban Development, and diminished
      administrative capacity, the Department lacks the ability to
      ensure the continued economic and physical well-being of the
      stock of federally insured and assisted multifamily housing
      projects;
        "(11) the economic, physical, and management problems facing
      the stock of federally insured and assisted multifamily housing
      projects will be best served by reforms that - 
          "(A) reduce the cost of Federal rental assistance, including
        project-based assistance, to these projects by reducing the
        debt service and operating costs of these projects while
        retaining the low-income affordability and availability of this
        housing;
          "(B) address physical and economic distress of this housing
        and the failure of some project managers and owners of projects
        to comply with management and ownership rules and requirements;
        and
          "(C) transfer and share many of the loan and contract
        administration functions and responsibilities of the Secretary
        to and with capable State, local, and other entities; and
        "(12) the authority and duties of the Secretary, not including
      the control by the Secretary of applicable accounts in the
      Treasury of the United States, may be delegated to State, local
      or other entities at the discretion of the Secretary, to the
      extent the Secretary determines, and for the purpose of carrying
      out this title [see Short Title of 1997 Amendment note set out
      under section 1701 of Title 12, Banks and Banking], so that the
      Secretary has the discretion to be relieved of processing and
      approving any document or action required by these reforms.
      "(b) Purposes. - Consistent with the purposes and requirements of
    the Government Performance and Results Act of 1993 [Pub. L. 103-62,
    see Short Title of 1993 Amendment note set out under section 1101
    of Title 31, Money and Finance], the purposes of this subtitle are -
     
        "(1) to preserve low-income rental housing affordability and
      availability while reducing the long-term costs of project-based
      assistance;
        "(2) to reform the design and operation of Federal rental
      housing assistance programs, administered by the Secretary, to
      promote greater multifamily housing project operating and cost
      efficiencies;
        "(3) to encourage owners of eligible multifamily housing
      projects to restructure their FHA-insured mortgages and project-
      based assistance contracts in a manner that is consistent with
      this subtitle before the year in which the contract expires;
        "(4) to reduce the cost of insurance claims under the National
      Housing Act [12 U.S.C. 1701 et seq.] related to mortgages insured
      by the Secretary and used to finance eligible multifamily housing
      projects;
        "(5) to streamline and improve federally insured and assisted
      multifamily housing project oversight and administration;
        "(6) to resolve the problems affecting financially and
      physically troubled federally insured and assisted multifamily
      housing projects through cooperation with residents, owners,
      State and local governments, and other interested entities and
      individuals;
        "(7) to protect the interest of project owners and managers,
      because they are partners of the Federal Government in meeting
      the affordable housing needs of the Nation through the section 8
      rental housing assistance program;
        "(8) to protect the interest of tenants residing in the
      multifamily housing projects at the time of the restructuring for
      the housing; and
        "(9) to grant additional enforcement tools to use against those
      who violate agreements and program requirements, in order to
      ensure that the public interest is safeguarded and that Federal
      multifamily housing programs serve their intended purposes.

      "SEC. 512. DEFINITIONS.
      "In this subtitle:
        "(1) Comparable properties. - The term 'comparable properties'
      means properties in the same market areas, where practicable,
      that - 
          "(A) are similar to the eligible multifamily housing project
        as to neighborhood (including risk of crime), type of location,
        access, street appeal, age, property size, apartment mix,
        physical configuration, property and unit amenities, utilities,
        and other relevant characteristics; and
          "(B) are not receiving project-based assistance.
        "(2) Eligible multifamily housing project. - The term 'eligible
      multifamily housing project' means a property consisting of more
      than 4 dwelling units - 
          "(A) with rents that, on an average per unit or per room
        basis, exceed the rent of comparable properties in the same
        market area, determined in accordance with guidelines
        established by the Secretary;
          "(B) that is covered in whole or in part by a contract for
        project-based assistance under - 
            "(i) the new construction or substantial rehabilitation
          program under section 8(b)(2) of the United States Housing
          Act of 1937 [42 U.S.C. 1437f(b)(2)] (as in effect before
          October 1, 1983);
            "(ii) the property disposition program under section 8(b)
          of the United States Housing Act of 1937;
            "(iii) the moderate rehabilitation program under section
          8(e)(2) of the United States Housing Act of 1937;
            "(iv) the loan management assistance program under section
          8 of the United States Housing Act of 1937;
            "(v) section 23 of the United States Housing Act of 1937
          [42 U.S.C. 1437u] (as in effect before January 1, 1975);
            "(vi) the rent supplement program under section 101 of the
          Housing and Urban Development Act of 1965 [12 U.S.C. 1701s];
          or
            "(vii) section 8 of the United States Housing Act of 1937,
          following conversion from assistance under section 101 of the
          Housing and Urban Development Act of 1965; and
          "(C) financed by a mortgage insured or held by the Secretary
        under the National Housing Act [12 U.S.C. 1701 et seq.].
      Such term does not include any project with an expiring contract
      described in paragraph (1) or (2) of section 524(e), but does
      include a project described in section 524(e)(3). Notwithstanding
      any other provision of this title, the Secretary may treat a
      project as an eligible multifamily housing project for purposes
      of this title if (I) the project is assisted pursuant to a
      contract for project-based assistance under section 8 of the
      United States Housing Act of 1937 renewed under section 524 of
      this Act, (II) the owner consents to such treatment, and (III)
      the project met the requirements of the first sentence of this
      paragraph for eligibility as an eligible multifamily housing
      project before the initial renewal of the contract under section
      524.
        "(3) Expiring contract. - The term 'expiring contract' means a
      project-based assistance contract attached to an eligible
      multifamily housing project which, under the terms of the
      contract, will expire.
        "(4) Expiration date. - The term 'expiration date' means the
      date on which an expiring contract expires.
        "(5) Fair market rent. - The term 'fair market rent' means the
      fair market rental established under section 8(c) of the United
      States Housing Act of 1937.
        "(6) Low-income families. - The term 'low-income families' has
      the same meaning as provided under section 3(b)(2) of the United
      States Housing Act of 1937 [42 U.S.C. 1437a(b)(2)].
        "(7) Mortgage restructuring and rental assistance sufficiency
      plan. - The term 'mortgage restructuring and rental assistance
      sufficiency plan' means the plan as provided under section 514.
        "(8) Nonprofit organization. - The term 'nonprofit
      organization' means any private nonprofit organization that - 
          "(A) is organized under State or local laws;
          "(B) has no part of its net earnings inuring to the benefit
        of any member, founder, contributor, or individual; and
          "(C) has a long-term record of service in providing or
        financing quality affordable housing for low-income families
        through relationships with public entities.
        "(9) Portfolio restructuring agreement. - The term 'portfolio
      restructuring agreement' means the agreement entered into between
      the Secretary and a participating administrative entity, as
      provided under section 513.
        "(10) Participating administrative entity. - The term
      'participating administrative entity' means a public agency
      (including a State housing finance agency or a local housing
      agency), a nonprofit organization, or any other entity (including
      a law firm or an accounting firm) or a combination of such
      entities, that meets the requirements under section 513(b).
        "(11) Project-based assistance. - The term 'project-based
      assistance' means rental assistance described in paragraph (2)(B)
      of this section that is attached to a multifamily housing
      project.
        "(12) Renewal. - The term 'renewal' means the replacement of an
      expiring Federal rental contract with a new contract under
      section 8 of the United States Housing Act of 1937, consistent
      with the requirements of this subtitle.
        "(13) Secretary. - The term 'Secretary' means the Secretary of
      Housing and Urban Development.
        "(14) State. - The term 'State' has the same meaning as in
      section 104 of the Cranston-Gonzalez National Affordable Housing
      Act [42 U.S.C. 12704].
        "(15) Tenant-based assistance. - The term 'tenant-based
      assistance' has the same meaning as in section 8(f) of the United
      States Housing Act of 1937.
        "(16) Unit of general local government. - The term 'unit of
      general local government' has the same meaning as in section 104
      of the Cranston-Gonzalez National Affordable Housing Act.
        "(17) Very low-income family. - The term 'very low-income
      family' has the same meaning as in section 3(b) of the United
      States Housing Act of 1937 [42 U.S.C. 1437a(b)].
        "(18) Qualified mortgagee. - The term 'qualified mortgagee'
      means an entity approved by the Secretary that is capable of
      servicing, as well as originating, FHA-insured mortgages, and
      that - 
          "(A) is not suspended or debarred by the Secretary;
          "(B) is not suspended or on probation imposed by the
        Mortgagee Review Board; and
          "(C) is not in default under any Government National Mortgage
        Association obligation.
        "(19) Office. - The term 'Office' means the Office of
      Multifamily Housing Assistance Restructuring established under
      section 571.

      "SEC. 513. AUTHORITY OF PARTICIPATING ADMINISTRATIVE ENTITIES.
      "(a) Participating Administrative Entities. - 
        "(1) In general. - Subject to subsection (b)(3), the Secretary
      shall enter into portfolio restructuring agreements with
      participating administrative entities for the implementation of
      mortgage restructuring and rental assistance sufficiency plans to
      restructure multifamily housing mortgages insured or held by the
      Secretary under the National Housing Act [12 U.S.C. 1701 et
      seq.], in order to - 
          "(A) reduce the costs of expiring contracts for assistance
        under section 8 of the United States Housing Act of 1937 [42
        U.S.C. 1437f];
          "(B) address financially and physically troubled projects;
        and
          "(C) correct management and ownership deficiencies.
        "(2) Portfolio restructuring agreements. - Each portfolio
      restructuring agreement entered into under this subsection shall -
       
          "(A) be a cooperative agreement to establish the obligations
        and requirements between the Secretary and the participating
        administrative entity;
          "(B) identify the eligible multifamily housing projects or
        groups of projects for which the participating administrative
        entity is responsible for assisting in developing and
        implementing approved mortgage restructuring and rental
        assistance sufficiency plans under section 514;
          "(C) require the participating administrative entity to
        review and certify to the accuracy and completeness of the
        evaluation of rehabilitation needs required under section
        514(e)(3) for each eligible multifamily housing project
        included in the portfolio restructuring agreement, in
        accordance with regulations promulgated by the Secretary;
          "(D) identify the responsibilities of both the participating
        administrative entity and the Secretary in implementing a
        mortgage restructuring and rental assistance sufficiency plan,
        including any actions proposed to be taken under section 516 or
        517;
          "(E) require each mortgage restructuring and rental
        assistance sufficiency plan to be prepared in accordance with
        the requirements of section 514 for each eligible multifamily
        housing project;
          "(F) include other requirements established by the Secretary,
        including a right of the Secretary to terminate the contract
        immediately for failure of the participating administrative
        entity to comply with any applicable requirement;
          "(G) if the participating administrative entity is a State
        housing finance agency or a local housing agency, indemnify the
        participating administrative entity against lawsuits and
        penalties for actions taken pursuant to the agreement,
        excluding actions involving willful misconduct or negligence;
          "(H) include compensation for all reasonable expenses
        incurred by the participating administrative entity necessary
        to perform its duties under this subtitle; and
          "(I) include, where appropriate, incentive agreements with
        the participating administrative entity to reward superior
        performance in meeting the purposes of this title.
      "(b) Selection of Participating Administrative Entity. - 
        "(1) Selection criteria. - The Secretary shall select a
      participating administrative entity based on whether, in the
      determination of the Secretary, the participating administrative
      entity - 
          "(A) has demonstrated experience in working directly with
        residents of low-income housing projects and with tenants and
        other community-based organizations;
          "(B) has demonstrated experience with and capacity for
        multifamily restructuring and multifamily financing (which may
        include risk-sharing arrangements and restructuring eligible
        multifamily housing properties under the fiscal year 1997
        Federal Housing Administration multifamily housing
        demonstration program);
          "(C) has a history of stable, financially sound, and
        responsible administrative performance (which may include the
        management of affordable low-income rental housing);
          "(D) has demonstrated financial strength in terms of asset
        quality, capital adequacy, and liquidity;
          "(E) has demonstrated that it will carry out the specific
        transactions and other responsibilities under this subtitle in
        a timely, efficient, and cost-effective manner; and
          "(F) meets other criteria, as determined by the Secretary.
        "(2) Selection. - If more than 1 interested entity meets the
      qualifications and selection criteria for a participating
      administrative entity, the Secretary may select the entity that
      demonstrates, as determined by the Secretary, that it will - 
          "(A) provide the most timely, efficient, and cost-effective -
        
            "(i) restructuring of the mortgages covered by the
          portfolio restructuring agreement; and
            "(ii) administration of the section 8 project-based
          assistance contract, if applicable; and
          "(B) protect the public interest (including the long-term
        provision of decent low-income affordable rental housing and
        protection of residents, communities, and the American
        taxpayer).
        "(3) Partnerships. - For the purposes of any participating
      administrative entity applying under this subsection,
      participating administrative entities are encouraged to develop
      partnerships with each other and with nonprofit organizations, if
      such partnerships will further the participating administrative
      entity's ability to meet the purposes of this title.
        "(4) Alternative administrators. - With respect to any eligible
      multifamily housing project for which a participating
      administrative entity is unavailable, or should not be selected
      to carry out the requirements of this subtitle with respect to
      that multifamily housing project for reasons relating to the
      selection criteria under paragraph (1), the Secretary shall - 
          "(A) carry out the requirements of this subtitle with respect
        to that eligible multifamily housing project; or
          "(B) contract with other qualified entities that meet the
        requirements of paragraph (1) to provide the authority to carry
        out all or a portion of the requirements of this subtitle with
        respect to that eligible multifamily housing project.
        "(5) Priority for public agencies as participating
      administrative entities. - The Secretary shall provide a
      reasonable period during which the Secretary will consider
      proposals only from State housing finance agencies or local
      housing agencies, and the Secretary shall select such an agency
      without considering other applicants if the Secretary determines
      that the agency is qualified. The period shall be of sufficient
      duration for the Secretary to determine whether any State housing
      finance agencies or local housing agencies are interested and
      qualified. Not later than the end of the period, the Secretary
      shall notify the State housing finance agency or the local
      housing agency regarding the status of the proposal and, if the
      proposal is rejected, the reasons for the rejection and an
      opportunity for the applicant to respond.
        "(6) State and local portfolio requirements. - 
          "(A) In general. - If the housing finance agency of a State
        is selected as the participating administrative entity, that
        agency shall be responsible for such eligible multifamily
        housing projects in that State as may be agreed upon by the
        participating administrative entity and the Secretary. If a
        local housing agency is selected as the participating
        administrative entity, that agency shall be responsible for
        such eligible multifamily housing projects in the jurisdiction
        of the agency as may be agreed upon by the participating
        administrative entity and the Secretary.
          "(B) Nondelegation. - Except with the prior approval of the
        Secretary, a participating administrative entity may not
        delegate or transfer responsibilities and functions under this
        subtitle to 1 or more entities.
        "(7) Private entity requirements. - 
          "(A) In general. - If a for-profit entity is selected as the
        participating administrative entity, that entity shall be
        required to enter into a partnership with a public purpose
        entity (including the Department).
          "(B) Prohibition. - No private entity shall share,
        participate in, or otherwise benefit from any equity created,
        received, or restructured as a result of the portfolio
        restructuring agreement.

      "SEC. 514. MORTGAGE RESTRUCTURING AND RENTAL ASSISTANCE
        SUFFICIENCY PLAN.
      "(a) In General. - 
        "(1) Development of procedures and requirements. - The
      Secretary shall develop procedures and requirements for the
      submission of a mortgage restructuring and rental assistance
      sufficiency plan for each eligible multifamily housing project
      with an expiring contract.
        "(2) Terms and conditions. - Each mortgage restructuring and
      rental assistance sufficiency plan submitted under this
      subsection shall be developed by the participating administrative
      entity, in cooperation with an owner of an eligible multifamily
      housing project and any servicer for the mortgage that is a
      qualified mortgagee, under such terms and conditions as the
      Secretary shall require.
        "(3) Consolidation. - Mortgage restructuring and rental
      assistance sufficiency plans submitted under this subsection may
      be consolidated as part of an overall strategy for more than 1
      property.
      "(b) Notice Requirements. - The Secretary shall establish notice
    procedures and hearing requirements for tenants and owners
    concerning the dates for the expiration of project-based assistance
    contracts for any eligible multifamily housing project.
      "(c) Extension of Contract Term. - Subject to agreement by a
    project owner, the Secretary may extend the term of any expiring
    contract or provide a section 8 contract with rent levels set in
    accordance with subsection (g) for a period sufficient to
    facilitate the implementation of a mortgage restructuring and
    rental assistance sufficiency plan, as determined by the Secretary.
      "(d) Tenant Rent Protection. - If the owner of a project with an
    expiring Federal rental assistance contract does not agree to
    extend the contract, not less than 12 months prior to terminating
    the contract, the project owner shall provide written notice to the
    Secretary and the tenants and the Secretary shall make tenant-based
    assistance available to tenants residing in units assisted under
    the expiring contract at the time of expiration. In addition, if
    after giving the notice required in the first sentence, an owner
    determines to terminate a contract, an owner shall provide an
    additional written notice with respect to the termination, in a
    form prescribed by the Secretary, not less than 120 days prior to
    the termination. In the event the owner does not provide the 120-
    day notice required in the preceding sentence, the owner may not
    evict the tenants or increase the tenants' rent payment until such
    time as the owner has provided the 120-day notice and such period
    has elapsed. The Secretary may allow the owner to renew the
    terminating contract for a period of time sufficient to give
    tenants 120 days of advance notice in accordance with section 524
    of this Act.
      "(e) Mortgage Restructuring and Rental Assistance Sufficiency
    Plan. - Each mortgage restructuring and rental assistance
    sufficiency plan shall - 
        "(1) except as otherwise provided, restructure the project-
      based assistance rents for the eligible multifamily housing
      project in a manner consistent with subsection (g), or provide
      for tenant-based assistance in accordance with section 515;
        "(2) allow for rent adjustments by applying an operating cost
      adjustment factor established under guidelines established by the
      Secretary;
        "(3) require the owner or purchaser of an eligible multifamily
      housing project to evaluate the rehabilitation needs of the
      project, in accordance with regulations of the Secretary, and
      notify the participating administrative entity of the
      rehabilitation needs;
        "(4) require the owner or purchaser of the project to provide
      or contract for competent management of the project;
        "(5) require the owner or purchaser of the project to take such
      actions as may be necessary to rehabilitate, maintain adequate
      reserves, and to maintain the project in decent and safe
      condition, based on housing quality standards established by - 
          "(A) the Secretary; or
          "(B) local housing codes or codes adopted by public housing
        agencies that - 
            "(i) meet or exceed housing quality standards established
          by the Secretary; and
            "(ii) do not severely restrict housing choice;
        "(6) require the owner or purchaser of the project to maintain
      affordability and use restrictions in accordance with regulations
      promulgated by the Secretary, for a term of not less than 30
      years which restrictions shall be - 
          "(A) contained in a legally enforceable document recorded in
        the appropriate records; and
          "(B) consistent with the long-term physical and financial
        viability and character of the project as affordable housing;
        "(7) include a certification by the participating
      administrative entity that the restructuring meets subsidy
      layering requirements established by the Secretary by regulation
      for purposes of this subtitle;
        "(8) require the owner or purchaser of the project to meet such
      other requirements as the Secretary determines to be appropriate;
      and
        "(9) prohibit the owner from refusing to lease a reasonable
      number of units to holders of certificates and vouchers under
      section 8 of the United States Housing Act of 1937 [42 U.S.C.
      1437f] because of the status of the prospective tenants as
      certificate and voucher holders.
      "(f) Tenant and Other Participation and Capacity Building. - 
        "(1) Procedures. - 
          "(A) In general. - The Secretary shall establish procedures
        to provide an opportunity for tenants of the project, residents
        of the neighborhood, the local government, and other affected
        parties to participate effectively and on a timely basis in the
        restructuring process established by this subtitle.
          "(B) Coverage. - These procedures shall take into account the
        need to provide tenants of the project, residents of the
        neighborhood, the local government, and other affected parties
        timely notice of proposed restructuring actions and appropriate
        access to relevant information about restructuring activities.
        To the extent practicable and consistent with the need to
        accomplish project restructuring in an efficient manner, the
        procedures shall give all such parties an opportunity to
        provide comments to the participating administrative entity in
        writing, in meetings, or in another appropriate manner (which
        comments shall be taken into consideration by the participating
        administrative entity).
        "(2) Required consultation. - The procedures developed pursuant
      to paragraph (1) shall require consultation with tenants of the
      project, residents of the neighborhood, the local government, and
      other affected parties, in connection with at least the
      following:
          "(A) the mortgage restructuring and rental assistance
        sufficiency plan;
          "(B) any proposed transfer of the project; and
          "(C) the rental assistance assessment plan pursuant to
        section 515(c).
        "(3) Funding. - 
          "(A) In general. - The Secretary shall make available not
        more than $10,000,000 annually in funding, which amount shall
        be in addition to any amounts made available under this
        subparagraph and carried over from previous years, from which
        the Secretary may make obligations to tenant groups, nonprofit
        organizations, and public entities for building the capacity of
        tenant organizations, for technical assistance in furthering
        any of the purposes of this subtitle (including transfer of
        developments to new owners), for technical assistance for
        preservation of low-income housing for which project-based
        rental assistance is provided at below market rent levels and
        may not be renewed (including transfer of developments to
        tenant groups, nonprofit organizations, and public entities),
        for tenant services, and for tenant groups, nonprofit
        organizations, and public entities described in section
        517(a)(5), from those amounts made available under
        appropriations Acts for implementing this subtitle or
        previously made available for technical assistance in
        connection with the preservation of affordable rental housing
        for low-income persons.
          "(B) Manner of providing. - Notwithstanding any other
        provision of law restricting the use of preservation technical
        assistance funds, the Secretary may provide any funds made
        available under subparagraph (A) through existing technical
        assistance programs pursuant to any other Federal law,
        including the Low-Income Housing Preservation and Resident
        Homeownership Act of 1990 [12 U.S.C. 4101 et seq.] and the
        Multifamily Housing Property Disposition Reform Act of 1994
        [Pub. L. 103-233, see Short Title of 1994 Amendment note set
        out under section 1701 of Title 12, Banks and Banking], or
        through any other means that the Secretary considers consistent
        with the purposes of this subtitle, without regard to any set-
        aside requirement otherwise applicable to those funds.
          "(C) Prohibition. - None of the funds made available under
        subparagraph (A) may be used directly or indirectly to pay for
        any personal service, advertisement, telegram, telephone,
        letter, printed or written matter, or other device, intended or
        designed to influence in any manner a Member of Congress, to
        favor or oppose, by vote or otherwise, any legislation or
        appropriation by Congress, whether before or after the
        introduction of any bill or resolution proposing such
        legislation or appropriation.
      "(g) Rent Levels. - 
        "(1) In general. - Except as provided in paragraph (2), each
      mortgage restructuring and rental assistance sufficiency plan
      pursuant to the terms, conditions, and requirements of this
      subtitle shall establish for units assisted with project-based
      assistance in eligible multifamily housing projects adjusted rent
      levels that - 
          "(A) are equivalent to rents derived from comparable
        properties, if - 
            "(i) the participating administrative entity makes the rent
          determination within a reasonable period of time; and
            "(ii) the market rent determination is based on not less
          than 2 comparable properties; or
          "(B) if those rents cannot be determined, are equal to 90
        percent of the fair market rents for the relevant market area.
        "(2) Exceptions. - 
          "(A) In general. - A contract under this section may include
        rent levels that exceed the rent level described in paragraph
        (1) at rent levels that do not exceed 120 percent of the fair
        market rent for the market area (except that the Secretary may
        waive this limit for not more than five percent of all units
        subject to portfolio restructuring agreements, based on a
        finding of special need), if the participating administrative
        entity - 
            "(i) determines that the housing needs of the tenants and
          the community cannot be adequately addressed through
          implementation of the rent limitation required to be
          established through a mortgage restructuring and rental
          assistance sufficiency plan under paragraph (1); and
            "(ii) follows the procedures under paragraph (3).
          "(B) Exception rents. - In any fiscal year, a participating
        administrative entity may approve exception rents on not more
        than 20 percent of all units covered by the portfolio
        restructuring agreement with expiring contracts in that fiscal
        year, except that the Secretary may waive this ceiling upon a
        finding of special need.
        "(3) Rent levels for exception projects. - For purposes of this
      section, a project eligible for an exception rent shall receive a
      rent calculated on the actual and projected costs of operating
      the project, at a level that provides income sufficient to
      support a budget-based rent that consists of - 
          "(A) the debt service of the project;
          "(B) the operating expenses of the project, as determined by
        the participating administrative entity, including - 
            "(i) contributions to adequate reserves;
            "(ii) the costs of maintenance and necessary
          rehabilitation; and
            "(iii) other eligible costs permitted under section 8 of
          the United States Housing Act of 1937;
          "(C) an adequate allowance for potential operating losses due
        to vacancies and failure to collect rents, as determined by the
        participating administrative entity;
          "(D) an allowance for a reasonable rate of return to the
        owner or purchaser of the project, as determined by the
        participating administrative entity, which may be established
        to provide incentives for owners or purchasers to meet
        benchmarks of quality for management and housing quality; and
          "(E) other expenses determined by the participating
        administrative entity to be necessary for the operation of the
        project.
      "(h) Exemptions From Restructuring. - The following categories of
    projects shall not be covered by a mortgage restructuring and
    rental assistance sufficiency plan if - 
        "(1) the primary financing or mortgage insurance for the
      multifamily housing project that is covered by that expiring
      contract was provided by a unit of State government or a unit of
      general local government (or an agency or instrumentality of a
      unit of a State government or unit of general local government)
      and the financing involves mortgage insurance under the National
      Housing Act [42 U.S.C. 1701 et seq.], such that the
      implementation of a mortgage restructuring and rental assistance
      sufficiency plan under this subtitle is in conflict with
      applicable law or agreements governing such financing;
        "(2) the project is a project financed under section 202 of the
      Housing Act of 1959 [12 U.S.C. 1701q] or section 515 of the
      Housing Act of 1949 [42 U.S.C. 1485], or refinanced pursuant to
      section 811 of the American Homeownership and Economic
      Opportunity Act of 2000 (12 U.S.C. 1701q note); or
        "(3) the project has an expiring contract under section 8 of
      the United States Housing Act of 1937 entered into pursuant to
      section 441 of the McKinney-Vento Homeless Assistance Act [42
      U.S.C. 11401].

      "SEC. 515. SECTION 8 RENEWALS AND LONG-TERM AFFORDABILITY
        COMMITMENT BY OWNER OF PROJECT.
      "(a) Section 8 Renewals of Restructured Projects. - 
        "(1) Project-based assistance. - Subject to the availability of
      amounts provided in advance in appropriations Acts, and to the
      control of the Secretary of applicable accounts in the Treasury
      of the United States, with respect to an expiring section 8
      contract on an eligible multifamily housing project to be renewed
      with project-based assistance (based on a determination under
      subsection (c)), the Secretary shall enter into contracts with
      participating administrative entities pursuant to which the
      participating administrative entity shall offer to renew or
      extend the contract, or the Secretary shall offer to renew such
      contract, and the owner of the project shall accept the offer, if
      the initial renewal is in accordance with the terms and
      conditions specified in the mortgage restructuring and rental
      assistance sufficiency plan and the rental assistance assessment
      plan.
        "(2) Tenant-based assistance. - Subject to the availability of
      amounts provided in advance in appropriations Acts and to the
      control of the Secretary of applicable accounts in the Treasury
      of the United States, with respect to an expiring section 8
      contract on an eligible multifamily housing project to be renewed
      with tenant-based assistance (based on a determination under
      subsection (c)), the Secretary shall enter into contracts with
      participating administrative entities pursuant to which the
      participating administrative entity shall provide for the renewal
      of section 8 assistance on an eligible multifamily housing
      project with tenant-based assistance, or the Secretary shall
      provide for such renewal, in accordance with the terms and
      conditions specified in the mortgage restructuring and rental
      assistance sufficiency plan and the rental assistance assessment
      plan.
      "(b) Required Commitment. - After the initial renewal of a
    section 8 contract pursuant to this section, the owner shall accept
    each offer made pursuant to subsection (a) to renew the contract,
    for the term of the affordability and use restrictions required by
    section 514(e)(6), if the offer to renew is on terms and conditions
    specified in the mortgage restructuring and rental assistance
    sufficiency plan.
      "(c) Determination of Whether To Renew With Project-Based or
    Tenant-Based Assistance. - 
        "(1) Mandatory renewal of project-based assistance. - Section 8
      assistance shall be renewed with project-based assistance, if - 
          "(A) the project is located in an area in which the
        participating administrative entity determines, based on
        housing market indicators, such as low vacancy rates or high
        absorption rates, that there is not adequate available and
        affordable housing or that the tenants of the project would not
        be able to locate suitable units or use the tenant-based
        assistance successfully;
          "(B) a predominant number of the units in the project are
        occupied by elderly families, disabled families, or elderly and
        disabled families; or
          "(C) the project is held by a nonprofit cooperative ownership
        housing corporation or nonprofit cooperative housing trust.
        "(2) Rental assistance assessment plan. - 
          "(A) In general. - With respect to any project that is not
        described in paragraph (1), the participating administrative
        entity shall, after consultation with the owner of the project,
        develop a rental assistance assessment plan to determine
        whether to renew assistance for the project with tenant-based
        assistance or project-based assistance.
          "(B) Rental assistance assessment plan requirements. - Each
        rental assistance assessment plan developed under this
        paragraph shall include an assessment of the impact of
        converting to tenant-based assistance and the impact of
        extending project-based assistance on - 
            "(i) the ability of the tenants to find adequate,
          available, decent, comparable, and affordable housing in the
          local market;
            "(ii) the types of tenants residing in the project (such as
          elderly families, disabled families, large families, and
          cooperative homeowners);
            "(iii) the local housing needs identified in the
          comprehensive housing affordability strategy, and local
          market vacancy trends;
            "(iv) the cost of providing assistance, comparing the
          applicable payment standard to the project's adjusted rent
          levels determined under section 514(g);
            "(v) the long-term financial stability of the project;
            "(vi) the ability of residents to make reasonable choices
          about their individual living situations;
            "(vii) the quality of the neighborhood in which the tenants
          would reside; and
            "(viii) the project's ability to compete in the
          marketplace.
          "(C) Reports to director. - Each participating administrative
        entity shall report regularly to the Director as defined in
        subtitle D, as the Director shall require, identifying - 
            "(i) each eligible multifamily housing project for which
          the entity has developed a rental assistance assessment plan
          under this paragraph that determined that the tenants of the
          project generally supported renewal of assistance with tenant-
          based assistance, but under which assistance for the project
          was renewed with project-based assistance; and
            "(ii) each project for which the entity has developed such
          a plan under which the assistance is renewed using tenant-
          based assistance.
        "(3) Eligibility for tenant-based assistance. - Subject to
      paragraph (4), with respect to any project that is not described
      in paragraph (1), if a participating administrative entity
      approves the use of tenant-based assistance based on a rental
      assistance assessment plan developed under paragraph (2), tenant-
      based assistance shall be provided to each assisted family
      (other than a family already receiving tenant-based assistance)
      residing in the project at the time the assistance described in
      section 512(2)(B) terminates.
        "(4) Assistance through enhanced vouchers. - In the case of any
      family described in paragraph (3) that resides in a project
      described in section 512(2)(B), the tenant-based assistance
      provided shall be enhanced voucher assistance under section 8(t)
      of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)).
        "(5) Inapplicability of certain provision. - If a participating
      administrative entity approves renewal with project-based
      assistance under this subsection, section 8(d)(2) of the United
      States Housing Act of 1937 shall not apply.

      "SEC. 516. PROHIBITION ON RESTRUCTURING.
      "(a) Prohibition on Restructuring. - The Secretary may elect not
    to consider any mortgage restructuring and rental assistance
    sufficiency plan or request for contract renewal if the Secretary
    or the participating administrative entity determines that - 
        "(1)(A) the owner or purchaser of the project has engaged in
      material adverse financial or managerial actions or omissions
      with regard to such project; or
        "(B) the owner or purchaser of the project has engaged in
      material adverse financial or managerial actions or omissions
      with regard to other projects of such owner or purchaser that are
      federally assisted or financed with a loan from, or mortgage
      insured or guaranteed by, an agency of the Federal Government;
        "(2) material adverse financial or managerial actions or
      omissions include - 
          "(A) materially violating any Federal, State, or local law or
        regulation with regard to this project or any other federally
        assisted project, after receipt of notice and an opportunity to
        cure;
          "(B) materially breaching a contract for assistance under
        section 8 of the United States Housing Act of 1937 [42 U.S.C.
        1437f], after receipt of notice and an opportunity to cure;
          "(C) materially violating any applicable regulatory or other
        agreement with the Secretary or a participating administrative
        entity, after receipt of notice and an opportunity to cure;
          "(D) repeatedly and materially violating any Federal, State,
        or local law or regulation with regard to the project or any
        other federally assisted project;
          "(E) repeatedly and materially breaching a contract for
        assistance under section 8 of the United States Housing Act of
        1937;
          "(F) repeatedly and materially violating any applicable
        regulatory or other agreement with the Secretary or a
        participating administrative entity;
          "(G) repeatedly failing to make mortgage payments at times
        when project income was sufficient to maintain and operate the
        property;
          "(H) materially failing to maintain the property according to
        housing quality standards after receipt of notice and a
        reasonable opportunity to cure; or
          "(I) committing any actions or omissions that would warrant
        suspension or debarment by the Secretary;
        "(3) the owner or purchaser of the property materially failed
      to follow the procedures and requirements of this subtitle, after
      receipt of notice and an opportunity to cure; or
        "(4) the poor condition of the project cannot be remedied in a
      cost effective manner, as determined by the participating
      administrative entity.
    The term 'owner' as used in this subsection, in addition to it
    having the same meaning as in section 8(f) of the United States
    Housing Act of 1937, also means an affiliate of the owner. The term
    'purchaser' as used in this subsection means any private person or
    entity, including a cooperative, an agency of the Federal
    Government, or a public housing agency, that, upon purchase of the
    project, would have the legal right to lease or sublease dwelling
    units in the project, and also means an affiliate of the purchaser.
    The terms 'affiliate of the owner' and 'affiliate of the purchaser'
    means any person or entity (including, but not limited to, a
    general partner or managing member, or an officer of either) that
    controls an owner or purchaser, is controlled by an owner or
    purchaser, or is under common control with the owner or purchaser.
    The term 'control' means the direct or indirect power (under
    contract, equity ownership, the right to vote or determine a vote,
    or otherwise) to direct the financial, legal, beneficial or other
    interests of the owner or purchaser.
      "(b) Opportunity To Dispute Findings. - 
        "(1) In general. - During the 30-day period beginning on the
      date on which the owner or purchaser of an eligible multifamily
      housing project receives notice of a rejection under subsection
      (a) or of a mortgage restructuring and rental assistance
      sufficiency plan under section 514, the Secretary or
      participating administrative entity shall provide that owner or
      purchaser with an opportunity to dispute the basis for the
      rejection and an opportunity to cure.
        "(2) Affirmation, modification, or reversal. - 
          "(A) In general. - After providing an opportunity to dispute
        under paragraph (1), the Secretary or the participating
        administrative entity may affirm, modify, or reverse any
        rejection under subsection (a) or rejection of a mortgage
        restructuring and rental assistance sufficiency plan under
        section 514.
          "(B) Reasons for decision. - The Secretary or the
        participating administrative entity, as applicable, shall
        identify the reasons for any final decision under this
        paragraph.
          "(C) Review process. - The Secretary shall establish an
        administrative review process to appeal any final decision
        under this paragraph.
      "(c) Final Determination. - Any final determination under this
    section shall not be subject to judicial review.
      "(d) Displaced Tenants. - 
        "(1) Notice to certain residents. - The Office shall notify any
      tenant that is residing in a project or receiving assistance
      under section 8 of the United States Housing Act of 1937 (42
      U.S.C. 1437f) at the time of rejection under this section, of
      such rejection, except that the Office may delegate the
      responsibility to provide notice under this paragraph to the
      participating administrative entity.
        "(2) Assistance and moving expenses. - Subject to the
      availability of amounts provided in advance in appropriations
      Acts, for any low-income tenant that is residing in a project or
      receiving assistance under section 8 of the United States Housing
      Act of 1937 at the time of rejection under this section, that
      tenant shall be provided with tenant-based assistance and
      reasonable moving expenses, as determined by the Secretary.
      "(e) Transfer of Property. - For properties disqualified from the
    consideration of a mortgage restructuring and rental assistance
    sufficiency plan under this section in accordance with paragraph
    (1) or (2) of subsection (a) because of actions by an owner or
    purchaser, the Secretary shall establish procedures to facilitate
    the voluntary sale or transfer of a property as part of a mortgage
    restructuring and rental assistance sufficiency plan, with a
    preference for tenant organizations and tenant-endorsed community-
    based nonprofit and public agency purchasers meeting such
    reasonable qualifications as may be established by the Secretary.

      "SEC. 517. RESTRUCTURING TOOLS.
      "(a) Mortgage Restructuring. - 
        "(1) In this subtitle, an approved mortgage restructuring and
      rental assistance sufficiency plan shall include restructuring
      mortgages in accordance with this subsection to provide - 
          "(A) a restructured or new first mortgage that is sustainable
        at rents at levels that are established in section 514(g); and
          "(B) a second mortgage that is in an amount equal to not more
        than the greater of - 
            "(i) the full or partial payment of claim made under this
          subtitle; or
            "(ii) the difference between the restructured or new first
          mortgage and the indebtedness under the existing insured
          mortgage immediately before it is restructured or refinanced,
          provided that the amount of the second mortgage shall be in
          an amount that the Secretary or participating administrative
          entity determines can reasonably be expected to be repaid.
        "(2) The second mortgage shall bear interest at a rate not to
      exceed the applicable Federal rate as defined in section 1274(d)
      of the Internal Revenue Code of 1986 [26 U.S.C. 1274(d)]. The
      term of the second mortgage shall be equal to the term of the
      restructured or new first mortgage.
        "(3) Payments on the second mortgage shall be deferred when the
      first mortgage remains outstanding, except to the extent there is
      excess project income remaining after payment of all reasonable
      and necessary operating expenses (including deposits in a reserve
      for replacement), debt service on the first mortgage, and any
      other expenditures approved by the Secretary. At least 75 percent
      of any excess project income shall be applied to payments on the
      second mortgage, and the Secretary or the participating
      administrative entity may permit up to 25 percent to be paid to
      the project owner if the Secretary or participating
      administrative entity determines that the project owner meets
      benchmarks for management and housing quality.
        "(4) The full amount of the second mortgage shall be
      immediately due and payable if - 
          "(A) the first mortgage is terminated or paid in full, except
        as otherwise provided by the holder of the second mortgage;
          "(B) the project is purchased and the second mortgage is
        assumed by any subsequent purchaser in violation of guidelines
        established by the Secretary; or
          "(C) the Secretary provides notice to the project owner that
        such owner has failed to materially comply with any
        requirements of this section or the United States Housing Act
        of 1937 [42 U.S.C. 1437 et seq.] as those requirements apply to
        the project, with a reasonable opportunity for such owner to
        cure such failure.
        "(5) The Secretary may modify the terms of the second mortgage,
      assign the second mortgage to the acquiring organization or
      agency, or forgive all or part of the second mortgage if the
      Secretary holds the second mortgage and if the project is
      acquired by a tenant organization or tenant-endorsed community-
      based nonprofit or public agency, pursuant to guidelines
      established by the Secretary.
        "(6) The second mortgage under this section may be a first
      mortgage if no restructured or new first mortgage will meet the
      requirement of paragraph (1)(A).
      "(b) Restructuring Tools. - In addition to the requirements of
    subsection (a) and to the extent these actions are consistent with
    this section and with the control of the Secretary of applicable
    accounts in the Treasury of the United States, an approved mortgage
    restructuring and rental assistance sufficiency plan under this
    subtitle may include one or more of the following actions:
        "(1) Full or partial payment of claim. - Making a full payment
      of claim or partial payment of claim under section 541(b) of the
      National Housing Act [12 U.S.C. 1735f-19(b)], as amended by
      section 523(b) of this Act. Any payment under this paragraph
      shall not require the approval of a mortgagee.
        "(2) Refinancing of debt. - Refinancing of all or part of the
      debt on a project. If the refinancing involves a mortgage that
      will continue to be insured under the National Housing Act [12
      U.S.C. 1701 et seq.], the refinancing shall be documented through
      amendment of the existing insurance contract and not through a
      new insurance contract.
        "(3) Mortgage insurance. - Providing FHA multifamily mortgage
      insurance, reinsurance or other credit enhancement alternatives,
      including multifamily risk-sharing mortgage programs, as provided
      under section 542 of the Housing and Community Development Act of
      1992 [Pub. L. 102-550, 12 U.S.C. 1707 note]. The Secretary shall
      use risk-shared financing under section 542(c) of the Housing and
      Community Development Act of 1992 for any mortgage restructuring,
      rehabilitation financing, or debt refinancing included as part of
      a mortgage restructuring and rental assistance sufficiency plan
      if the terms and conditions are considered to be the best
      available financing in terms of financial savings to the FHA
      insurance funds and will result in reduced risk of loss to the
      Federal Government. Any limitations on the number of units
      available for mortgage insurance under section 542 shall not
      apply to eligible multifamily housing projects. Any credit
      subsidy costs of providing mortgage insurance shall be paid from
      the Liquidating Accounts of the General Insurance Fund or the
      Special Risk Insurance Fund and shall not be subject to any
      limitation on appropriations.
        "(4) Credit enhancement. - Providing any additional State or
      local mortgage credit enhancements and risk-sharing arrangements
      that may be established with State or local housing finance
      agencies, the Federal Housing Finance Board, the Federal National
      Mortgage Association, and the Federal Home Loan Mortgage
      Corporation, to a modified or refinanced first mortgage.
        "(5) Compensation of third parties. - Consistent with the
      portfolio restructuring agreement, entering into agreements,
      incurring costs, or making payments, including incentive
      agreements designed to reward superior performance in meeting the
      purposes of this Act, as may be reasonably necessary, to
      compensate the participation of participating administrative
      entities and other parties in undertaking actions authorized by
      this subtitle. Upon request to the Secretary, participating
      administrative entities that are qualified under the United
      States Housing Act of 1937 to serve as contract administrators
      shall be the contract administrators under section 8 of the
      United States Housing Act of 1937 [12 U.S.C. 1437f] for purposes
      of any contracts entered into as part of an approved mortgage
      restructuring and rental assistance sufficiency plan. Subject to
      the availability of amounts provided in advance in appropriations
      Acts for administrative fees under section 8 of the United States
      Housing Act of 1937, such amounts may be used to compensate
      participating administrative entities for compliance monitoring
      costs incurred under section 519.
        "(6) Use of project accounts. - Applying any residual receipts,
      replacement reserves, and any other project accounts not required
      for project operations, to maintain the long-term affordability
      and physical condition of the property or of other eligible
      multifamily housing projects. The participating administrative
      entity may expedite the acquisition of residual receipts,
      replacement reserves, or other such accounts, by entering into
      agreements with owners of housing covered by an expiring contract
      to provide an owner with a share of the receipts, not to exceed
      10 percent, in accordance with guidelines established by the
      Secretary.
      "(c) Rehabilitation Needs and Addition of Significant Features. -
    
        "(1) Rehabilitation needs. - 
          "(A) In general. - Rehabilitation may be paid from the
        residual receipts, replacement reserves, or any other project
        accounts not required for project operations, or, as provided
        in appropriations Acts and subject to the control of the
        Secretary of applicable accounts in the Treasury of the United
        States, from budget authority provided for increases in the
        budget authority for assistance contracts under section 8 of
        the United States Housing Act of 1937, the rehabilitation grant
        program established under section 236 of the National Housing
        Act [12 U.S.C. 1715z-1], as amended by section 531 of subtitle
        B of this Act, or through the debt restructuring transaction.
        Rehabilitation under this paragraph shall only be for the
        purpose of restoring the project to a non-luxury standard
        adequate for the rental market intended at the original
        approval of the project-based assistance.
          "(B) Contribution. - Each owner or purchaser of a project to
        be rehabilitated under an approved mortgage restructuring and
        rental assistance sufficiency plan shall contribute, from non-
        project resources, not less than 25 percent of the amount of
        rehabilitation assistance received, except that the
        participating administrative entity may provide an exception
        from the requirement of this subparagraph for housing
        cooperatives.
        "(2) Addition of significant features. - 
          "(A) Authority. - An approved mortgage restructuring and
        rental assistance sufficiency plan may require the improvement
        of the project by the addition of significant features that are
        not necessary for rehabilitation to the standard provided under
        paragraph (1), such as air conditioning, an elevator, and
        additional community space. The Secretary shall establish
        guidelines regarding the inclusion of requirements regarding
        such additional significant features under such plans.
          "(B) Funding. - Significant features added pursuant to an
        approved mortgage restructuring and rental assistance
        sufficiency plan may be paid from the funding sources specified
        in the first sentence of paragraph (1)(A).
          "(C) Limitation on owner contribution. - An owner of a
        project may not be required to contribute from non-project
        resources, toward the cost of any additional significant
        features required pursuant to this paragraph, more than 25
        percent of the amount of any assistance received for the
        inclusion of such features.
          "(D) Applicability. - This paragraph shall apply to all
        eligible multifamily housing projects, except projects for
        which the Secretary and the project owner executed a mortgage
        restructuring and rental assistance sufficiency plan on or
        before the date of the enactment of the Mark-to-Market
        Extension Act of 2001 [Jan. 10, 2002].
      "(d) Prohibition on Equity Sharing by the Secretary. - The
    Secretary is prohibited from participating in any equity agreement
    or profit-sharing agreement in conjunction with any eligible
    multifamily housing project.
      "(e) Conflict of Interest Guidelines. - The Secretary may
    establish guidelines to prevent conflicts of interest by a
    participating administrative entity that provides, directly or
    through risk-sharing arrangements, any form of credit enhancement
    or financing pursuant to subsections [sic] (b)(3) or (b)(4) or to
    prevent conflicts of interest by any other person or entity under
    this subtitle.

      "SEC. 518. MANAGEMENT STANDARDS.
      "Each participating administrative entity shall establish
    management standards, including requirements governing conflicts of
    interest between owners, managers, contractors with an identity of
    interest, pursuant to guidelines established by the Secretary and
    consistent with industry standards.

      "SEC. 519. MONITORING OF COMPLIANCE.
      "(a) Compliance Agreements. - (1) Pursuant to regulations issued
    by the Secretary under section 522(a), each participating
    administrative entity, through binding contractual agreements with
    owners and otherwise, shall ensure long-term compliance with the
    provisions of this subtitle. Each agreement shall, at a minimum,
    provide for - 
        "(A) enforcement of the provisions of this subtitle; and
        "(B) remedies for the breach of those provisions.
      "(2) If the participating administrative entity is not qualified
    under the United States Housing Act of 1937 [42 U.S.C. 1437 et
    seq.] to be a section 8 contract administrator or fails to perform
    its duties under the portfolio restructuring agreement, the
    Secretary shall have the right to enforce the agreement.
      "(b) Periodic Monitoring. - 
        "(1) In general. - Not less than annually, each participating
      administrative entity that is qualified to be the section 8
      contract administrator shall review the status of all multifamily
      housing projects for which a mortgage restructuring and rental
      assistance sufficiency plan has been implemented.
        "(2) Inspections. - Each review under this subsection shall
      include onsite inspection to determine compliance with housing
      codes and other requirements as provided in this subtitle and the
      portfolio restructuring agreements.
        "(3) Administration. - If the participating administrative
      entity is not qualified under the United States Housing Act of
      1937 to be a section 8 contract administrator, either the
      Secretary or a qualified State or local housing agency shall be
      responsible for the review required by this subsection.
      "(c) Audit by the Secretary. - The Comptroller General of the
    United States, the Secretary, and the Inspector General of the
    Department of Housing and Urban Development may conduct an audit at
    any time of any multifamily housing project for which a mortgage
    restructuring and rental assistance sufficiency plan has been
    implemented.

      "SEC. 520. REPORTS TO CONGRESS.
      "(a) Annual Review. - In order to ensure compliance with this
    subtitle, the Secretary shall conduct an annual review and report
    to the Congress on actions taken under this subtitle and the status
    of eligible multifamily housing projects.
      "(b) Semiannual Review. - Not less than semiannually during the 2-
    year period beginning on the date of the enactment of this Act
    [Oct. 27, 1997] and not less than annually thereafter, the
    Secretary shall submit reports to the Committee on Financial
    Services of the House of Representatives and the Committee on
    Banking, Housing, and Urban Affairs of the Senate stating, for such
    periods, the total number of projects identified by participating
    administrative entities under each of clauses (i) and (ii) of
    section 515(c)(2)(C).

      "SEC. 521. GAO AUDIT AND REVIEW.
      "(a) Initial Audit. - Not later than 18 months after the
    effective date of final regulations promulgated under this
    subtitle, the Comptroller General of the United States shall
    conduct an audit to evaluate eligible multifamily housing projects
    and the implementation of mortgage restructuring and rental
    assistance sufficiency plans.
      "(b) Report. - 
        "(1) In general. - Not later than 18 months after the audit
      conducted under subsection (a), the Comptroller General of the
      United States shall submit to Congress a report on the status of
      eligible multifamily housing projects and the implementation of
      mortgage restructuring and rental assistance sufficiency plans.
        "(2) Contents. - The report submitted under paragraph (1) shall
      include - 
          "(A) a description of the initial audit conducted under
        subsection (a); and
          "(B) recommendations for any legislative action to increase
        the financial savings to the Federal Government of the
        restructuring of eligible multifamily housing projects balanced
        with the continued availability of the maximum number of
        affordable low-income housing units.

      "SEC. 522. REGULATIONS.
      "(a) Rulemaking and Implementation. - 
        "(1) Interim regulations. - The Director shall issue such
      interim regulations as may be necessary to implement this
      subtitle and the amendments made by this subtitle with respect to
      eligible multifamily housing projects covered by contracts
      described in section 512(2)(B) that expire in fiscal year 1999 or
      thereafter. If, before the expiration of such period, the
      Director has not been appointed, the Secretary shall issue such
      interim regulations.
        "(2) Final regulations. - The Director shall issue final
      regulations necessary to implement this subtitle and the
      amendments made by this subtitle with respect to eligible
      multifamily housing projects covered by contracts described in
      section 512(2)(B) that expire in fiscal year 1999 or thereafter
      before the later of: (A) the expiration of the 12-month period
      beginning upon the date of the enactment of this Act [Oct. 27,
      1997]; and (B) the 3-month period beginning upon the appointment
      of the Director under subtitle D.
        "(3) Factors for consideration. - Before the publication of the
      final regulations under paragraph (2), in addition to public
      comments invited in connection with publication of the interim
      rule, the Secretary shall - 
          "(A) seek recommendations on the implementation of sections
        513(b) and 515(c)(1) from organizations representing - 
            "(i) State housing finance agencies and local housing
          agencies;
            "(ii) other potential participating administering entities;
            "(iii) tenants;
            "(iv) owners and managers of eligible multifamily housing
          projects;
            "(v) States and units of general local government; and
            "(vi) qualified mortgagees; and
          "(B) convene not less than 3 public forums at which the
        organizations making recommendations under subparagraph (A) may
        express views concerning the proposed disposition of the
        recommendations.
      "(b) Transition Provision for Contracts Expiring in Fiscal Year
    1998. - Notwithstanding any other provision of law, the Secretary
    shall apply all the terms of section 211 and section 212 of the
    Departments of Veterans Affairs and Housing and Urban Development,
    and Independent Agencies Appropriations Act, 1997 [Pub. L. 104-204,
    set out below] (except for section 212(h)(1)(G) and the limitation
    in section 212(k)) contracts for project-based assistance that
    expire during fiscal year 1998 (in the same manner that such
    provisions apply to expiring contracts defined in section 212(a)(3)
    of such Act), except that section 517(a) of the Act shall apply to
    mortgages on projects subject to such contracts.

      "SEC. 523. TECHNICAL AND CONFORMING AMENDMENTS.
      "(a) Calculation of Limit on Project-Based Assistance. - [Amended
    this section.]
      "(b) Partial Payment of Claims on Multifamily Housing Projects. -
    [Amended section 1735f-19 of Title 12, Banks and Banking.]
      "(c) Reuse and Rescission of Certain Recaptured Budget Authority.
    - [Amended this section.]
      "(d) Section 8 Contract Renewals. - [Amended section 405(a) of
    Pub. L. 104-99, set out below.]
      "(e) Renewal Upon Request of Owner. - [Amended section 211 of
    Pub. L. 104-204, set out below.]
      "(f) Extension of Demonstration Contract Period. - [Amended
    section 212 of Pub. L. 104-204, set out below.]

      "SEC. 524. RENEWAL OF EXPIRING PROJECT-BASED SECTION 8 CONTRACTS.
      "(a) In General. - 
        "(1) Renewal. - Subject to paragraph (2), upon termination or
      expiration of a contract for project-based assistance under
      section 8 for a multifamily housing project (and notwithstanding
      section 8(v) of the United States Housing Act of 1937 [42 U.S.C.
      1437f] for loan management assistance), the Secretary shall, at
      the request of the owner of the project and to the extent
      sufficient amounts are made available in appropriation Acts, use
      amounts available for the renewal of assistance under section 8
      of such Act to provide such assistance for the project. The
      assistance shall be provided under a contract having such terms
      and conditions as the Secretary considers appropriate, subject to
      the requirements of this section. This section shall not require
      contract renewal for a project that is eligible under this
      subtitle for a mortgage restructuring and rental assistance
      sufficiency plan, if there is no approved plan for the project
      and the Secretary determines that such an approved plan is
      necessary.
        "(2) Prohibition on renewal. - Notwithstanding part 24 of title
      24 of the Code of Federal Regulations, the Secretary may elect
      not to renew assistance for a project otherwise required to be
      renewed under paragraph (1) or provide comparable benefits under
      paragraph (1) or (2) of subsection (e) for a project described in
      either such paragraph, if the Secretary determines that a
      violation under paragraphs (1) through (4) of section 516(a) has
      occurred with respect to the project. For purposes of such a
      determination, the provisions of section 516 shall apply to a
      project under this section in the same manner and to the same
      extent that the provisions of such section apply to eligible
      multifamily housing projects, except that the Secretary shall
      make the determination under section 516(a)(4).
        "(3) Contract term for mark-up-to-market contracts. - In the
      case of an expiring or terminating contract that has rent levels
      less than comparable market rents for the market area, if the
      rent levels under the renewal contract under this section are
      equal to comparable market rents for the market area, the
      contract shall have a term of not less than 5 years, subject to
      the availability of sufficient amounts in appropriation Acts.
        "(4) Renewal rents. - Except as provided in subsection (b), the
      contract for assistance shall provide assistance at the following
      rent levels:
          "(A) Market rents. - At the request of the owner of the
        project, at rent levels equal to the lesser of comparable
        market rents for the market area or 150 percent of the fair
        market rents, in the case only of a project that - 
            "(i) has rent levels under the expiring or terminating
          contract that do not exceed such comparable market rents;
            "(ii) does not have a low- and moderate-income use
          restriction that can not be eliminated by unilateral action
          by the owner;
            "(iii) is decent, safe, and sanitary housing, as determined
          by the Secretary;
            "(iv) is not - 
         "(I) owned by a nonprofit entity;
         "(II) subject to a contract for moderate rehabilitation
          assistance under section 8(e)(2) of the United States Housing
          Act of 1937, as in effect before October 1, 1991; or
         "(III) a project for which the public housing agency provided
          voucher assistance to one or more of the tenants after the
          owner has provided notice of termination of the contract
          covering the tenant's unit; and
            "(v) has units assisted under the contract for which the
          comparable market rent exceeds 110 percent of the fair market
          rent.
      The Secretary may adjust the percentages of fair market rent (as
      specified in the matter preceding clause (i) and in clause (v)),
      but only upon a determination and written notification to the
      Congress within 10 days of making such determination, that such
      adjustment is necessary to ensure that this subparagraph covers
      projects with a high risk of nonrenewal of expiring contracts for
      project-based assistance.
          "(B) Reduction to market rents. - In the case of a project
        that has rent levels under the expiring or terminating contract
        that exceed comparable market rents for the market area, at
        rent levels equal to such comparable market rents.
          "(C) Rents not exceeding market rents. - In the case of a
        project that is not subject to subparagraph (A) or (B), at rent
        levels that - 
            "(i) are not less than the existing rents under the
          terminated or expiring contract, as adjusted by an operating
          cost adjustment factor established by the Secretary (which
          shall not result in a negative adjustment), if such adjusted
          rents do not exceed comparable market rents for the market
          area; and
            "(ii) do not exceed comparable market rents for the market
          area.
      In determining the rent level for a contract under this
      subparagraph, the Secretary shall approve rents sufficient to
      cover budget-based cost increases and shall give greater
      consideration to providing rent at a level up to comparable
      market rents for the market area based on the number of the
      criteria under clauses (i) through (iii) of subparagraph (D) that
      the project meets. Notwithstanding any other provision of law,
      the Secretary shall include in such budget-based cost increases
      costs relating to the project as a whole (including costs
      incurred with respect to units not covered by the contract for
      assistance), but only (I) if inclusion of such costs is requested
      by the owner or purchaser of the project, (II) if inclusion of
      such costs will permit capital repairs to the project or
      acquisition of the project by a nonprofit organization, and (III)
      to the extent that inclusion of such costs (or a portion thereof)
      complies with the requirement under clause (ii).
          "(D) Waiver of 150 percent limitation. - Notwithstanding
        subparagraph (A), at rent levels up to comparable market rents
        for the market area, in the case of a project that meets the
        requirements under clauses (i) through (v) of subparagraph (A)
        and - 
            "(i) has residents who are a particularly vulnerable
          population, as demonstrated by a high percentage of units
          being rented to elderly families, disabled families, or large
          families;
            "(ii) is located in an area in which tenant-based
          assistance would be difficult to use, as demonstrated by a
          low vacancy rate for affordable housing, a high turnback rate
          for vouchers, or a lack of comparable rental housing; or
            "(iii) is a high priority for the local community, as
          demonstrated by a contribution of State or local funds to the
          property.
      In determining the rent level for a contract under this
      subparagraph, the Secretary shall approve rents sufficient to
      cover budget-based cost increases and shall give greater
      consideration to providing rent at a level up to comparable
      market rents for the market area based on the number of the
      criteria under clauses (i) through (iv) that the project meets.
        "(5) Comparable market rents and comparison with fair market
      rents. - The Secretary shall prescribe the method for determining
      comparable market rent by comparison with rents charged for
      comparable properties (as such term is defined in section 512),
      which may include appropriate adjustments for utility allowances
      and adjustments to reflect the value of any subsidy (other than
      section 8 assistance) provided by the Department of Housing and
      Urban Development.
      "(b) Exception Rents. - 
        "(1) Renewal. - In the case of a multifamily housing project
      described in paragraph (2), pursuant to the request of the owner
      of the project, the contract for assistance for the project
      pursuant to subsection (a) shall provide assistance at the lesser
      of the following rent levels:
          "(A) Adjusted existing rents. - The existing rents under the
        expiring contract, as adjusted by an operating cost adjustment
        factor established by the Secretary (which shall not result in
        a negative adjustment).
          "(B) Budget-based rents. - Subject to a determination by the
        Secretary that a rent level under this subparagraph is
        appropriate for a project, a rent level that provides income
        sufficient to support a budget-based rent (including a budget-
        based rent adjustment if justified by reasonable and expected
        operating expenses).
        "(2) Projects covered. - A multifamily housing project
      described in this paragraph is a multifamily housing project that
      - 
          "(A) is not an eligible multifamily housing project under
        section 512(2); or
          "(B) is exempt from mortgage restructuring under this
        subtitle pursuant to section 514(h).
        "(3) Moderate rehabilitation projects. - In the case of a
      project with a contract under the moderate rehabilitation
      program, other than a moderate rehabilitation contract under
      section 441 of the McKinney-Vento Homeless Assistance Act [42
      U.S.C. 11401], pursuant to the request of the owner of the
      project, the contract for assistance for the project pursuant to
      subsection (a) shall provide assistance at the lesser of the
      following rent levels:
          "(A) Adjusted existing rents. - The existing rents under the
        expiring contract, as adjusted by an operating cost adjustment
        factor established by the Secretary (which shall not result in
        a negative adjustment).
          "(B) Fair market rents. - Fair market rents (less any amounts
        allowed for tenant-purchased utilities).
          "(C) Market rents. - Comparable market rents for the market
        area.
      "(c) Rent Adjustments After Renewal of Contract. - 
        "(1) Required. - After the initial renewal of a contract for
      assistance under section 8 of the United States Housing Act of
      1937 [42 U.S.C. 1437f] pursuant to subsection (a), (b)(1), or
      (e)(2), the Secretary shall annually adjust the rents using an
      operating cost adjustment factor established by the Secretary
      (which shall not result in a negative adjustment) or, upon the
      request of the owner and subject to approval of the Secretary, on
      a budget basis. In the case of projects with contracts renewed
      pursuant to subsection (a) or pursuant to subsection (e)(2) at
      rent levels equal to comparable market rents for the market area,
      at the expiration of each 5-year period, the Secretary shall
      compare existing rents with comparable market rents for the
      market area and may make any adjustments in the rent necessary to
      maintain the contract rents at a level not greater than
      comparable market rents or to increase rents to comparable market
      rents.
        "(2) Discretionary. - In addition to review and adjustment
      required under paragraph (1), in the case of projects with
      contracts renewed pursuant to subsection (a) or pursuant to
      subsection (e)(2) at rent levels equal to comparable market rents
      for the market area, the Secretary may, at the discretion of the
      Secretary but only once within each 5-year period referred to in
      paragraph (1), conduct a comparison of rents for a project and
      adjust the rents accordingly to maintain the contract rents at a
      level not greater than comparable market rents or to increase
      rents to comparable market rents.
      "(d) Enhanced Vouchers Upon Contract Expiration. - 
        "(1) In general. - In the case of a contract for project-based
      assistance under section 8 for a covered project that is not
      renewed under subsection (a) or (b) of this section (or any other
      authority), to the extent that amounts for assistance under this
      subsection are provided in advance in appropriation Acts, upon
      the date of the expiration of such contract the Secretary shall
      make enhanced voucher assistance under section 8(t) of the United
      States Housing Act of 1937 (42 U.S.C. 1437f(t)) available on
      behalf of each low-income family who, upon the date of such
      expiration, is residing in an assisted dwelling unit in the
      covered project.
        "(2) Definitions. - For purposes of this subsection, the
      following definitions shall apply:
          "(A) Assisted dwelling unit. - The term 'assisted dwelling
        unit' means a dwelling unit that - 
            "(i) is in a covered project; and
            "(ii) is covered by rental assistance provided under the
          contract for project-based assistance for the covered
          project.
          "(B) Covered project. - The term 'covered project' means any
        housing that - 
            "(i) consists of more than four dwelling units;
            "(ii) is covered in whole or in part by a contract for
          project-based assistance under - 
         "(I) the new construction or substantial rehabilitation
          program under section 8(b)(2) of the United States Housing
          Act of 1937 (as in effect before October 1, 1983);
         "(II) the property disposition program under section 8(b) of
          the United States Housing Act of 1937;
         "(III) the moderate rehabilitation program under section
          8(e)(2) of the United States Housing Act of 1937 (as in
          effect before October 1, 1991);
         "(IV) the loan management assistance program under section 8
          of the United States Housing Act of 1937;
         "(V) section 23 of the United States Housing Act of 1937 [42
          U.S.C. 1437u] (as in effect before January 1, 1975);
         "(VI) the rent supplement program under section 101 of the
          Housing and Urban Development Act of 1965 [12 U.S.C. 1701s];
          or
         "(VII) section 8 of the United States Housing Act of 1937,
          following conversion from assistance under section 101 of the
          Housing and Urban Development Act of 1965,
         which contract will (under its own terms) expire during the
         period consisting of fiscal years 2000 through 2004; and
            "(iii) is not housing for which residents are eligible for
          enhanced voucher assistance as provided, pursuant to the
          'Preserving Existing Housing Investment' account in the
          Departments of Veterans Affairs and Housing and Urban
          Development, and Independent Agencies Appropriations Act,
          1997 (Public Law 104-204; 110 Stat. 2884) or any other
          subsequently enacted provision of law, in lieu of any
          benefits under section 223 of the Low-Income Housing
          Preservation and Resident Homeownership Act of 1990 (12
          U.S.C. 4113).
        "(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.
      "(e) Contractual Commitments Under Preservation Laws. - Except as
    provided in subsection (a)(2) and notwithstanding any other
    provision of this subtitle, the following shall apply:
        "(1) Preservation projects. - Upon expiration of a contract for
      assistance under section 8 [42 U.S.C. 1437f] for a project that
      is subject to an approved plan of action under the Emergency Low
      Income Housing Preservation Act of 1987 (12 U.S.C. 1715l note) or
      the Low-Income Housing Preservation and Resident Homeownership
      Act of 1990 (12 U.S.C. 4101 et seq.), to the extent amounts are
      specifically made available in appropriation Acts, the Secretary
      shall provide to the owner benefits comparable to those provided
      under such plan of action, including distributions, rent increase
      procedures, and duration of low-income affordability
      restrictions. This paragraph shall apply to projects with
      contracts expiring before, on, or after the date of the enactment
      of this section [Oct. 27, 1997].
        "(2) Demonstration projects. - 
          "(A) In general. - Upon expiration of a contract for
        assistance under section 8 for a project entered into pursuant
        to any authority specified in subparagraph (B) for which the
        Secretary determines that debt restructuring is inappropriate,
        the Secretary shall, at the request of the owner of the project
        and to the extent sufficient amounts are made available in
        appropriation Acts, provide benefits to the owner comparable to
        those provided under such contract, including annual
        distributions, rent increase procedures, and duration of low-
        income affordability restrictions. This paragraph shall apply
        to projects with contracts expiring before, on, or after the
        date of the enactment of this section [Oct. 27, 1997].
          "(B) Demonstration programs. - The authority specified in
        this subparagraph is the authority under - 
            "(i) section 210 of the Departments of Veterans Affairs and
          Housing and Urban Development, and Independent Agencies
          Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-
          285; 42 U.S.C. 1437f note);
            "(ii) section 212 of the Departments of Veterans Affairs
          and Housing and Urban Development, and Independent Agencies
          Appropriations Act, 1997 (Public Law 104-204; 110 Stat. 2897;
          42 U.S.C. 1437f note); and
            "(iii) either of such sections, pursuant to any provision
          of this title [see Short Title of 1997 Amendment note set out
          under section 1701 of title 12].
        "(3) Mortgage restructuring and rental assistance sufficiency
      plans. - Notwithstanding paragraph (1), the owner of the project
      may request, and the Secretary may consider, mortgage
      restructuring and rental assistance sufficiency plans to
      facilitate sales or transfers of properties under this subtitle,
      subject to an approved plan of action under the Emergency Low
      Income Housing Preservation Act of 1987 (12 U.S.C. 1715l note)
      [see Codification note preceding section 4101 of Title 12, Banks
      and Banking] or the Low-Income Housing Preservation and Resident
      Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), which plans
      shall result in a sale or transfer of those properties.
      "(f) Preemption of Conflicting State Laws Limiting Distributions.
    - 
        "(1) In general. - Except as provided in paragraph (2), no
      State or political subdivision of a State may establish, continue
      in effect, or enforce any law or regulation that limits or
      restricts, to an amount that is less than the amount provided for
      under the regulations of the Secretary establishing allowable
      project distributions to provide a return on investment, the
      amount of surplus funds accruing after the date of the enactment
      of this section [Oct. 27, 1997] that may be distributed from any
      multifamily housing project assisted under a contract for rental
      assistance renewed under any provision of this section (except
      subsection (b)) to the owner of the project.
        "(2) Exception and waiver. - Paragraph (1) shall not apply to
      any law or regulation to the extent such law or regulation
      applies to - 
          "(A) a State-financed multifamily housing project; or
          "(B) a multifamily housing project for which the owner has
        elected to waive the applicability of paragraph (1).
        "(3) Treatment of low-income use restrictions. - This
      subsection may not be construed to provide for, allow, or result
      in the release or termination, for any project, of any low- or
      moderate-income use restrictions that can not be eliminated by
      unilateral action of the owner of the project.
      "(g) Applicability. - Except to the extent otherwise specifically
    provided in this section, this section shall apply with respect to
    any multifamily housing project having a contract for project-based
    assistance under section 8 [42 U.S.C. 1437f] that terminates or
    expires during fiscal year 2000 or thereafter.

      "SEC. 525. CONSISTENCY OF RENT LEVELS UNDER ENHANCED VOUCHER
        ASSISTANCE AND RENT RESTRUCTURINGS.
      "(a) In General. - The Secretary shall examine the standards and
    procedures for determining and establishing the rent standards
    described under subsection (b). Pursuant to such examination, the
    Secretary shall establish procedures and guidelines that are
    designed to ensure that the amounts determined by the various rent
    standards for the same dwelling units are reasonably consistent and
    reflect rents for comparable unassisted units in the same area as
    such dwelling units.
      "(b) Rent Standards. - The rent standards described in this
    subsection are as follows:
        "(1) Enhanced vouchers. - The payment standard for enhanced
      voucher assistance under section 8(t) of the United States
      Housing Act of 1937 (42 U.S.C. 1437f(t)).
        "(2) Mark-to-market. - The rents derived from comparable
      properties, for purposes of section 514(g) of this Act.
        "(3) Contract renewal. - The comparable market rents for the
      market area, for purposes of section 524(a)(4) of this Act.

          "SUBTITLE D - OFFICE OF MULTIFAMILY HOUSING ASSISTANCE
                               RESTRUCTURING

      "[SECS. 571 to 578. Repealed. Pub. L. 105-65, title V, Sec.
        579(a)(2), as added by Pub. L. 107-116, title VI, Sec. 621(1),
        Jan. 10, 2002, 115 Stat. 2226.]

      "SEC. 579. TERMINATION.
      "(a) Repeals. - 
        "(1) Mark-to-market program. - Subtitle A (except for section
      524) is repealed effective October 1, 2006.
        "(2) OMHAR. - Subtitle D (except for this section) is repealed
      effective October 1, 2004.
      "(b) Exception. - Notwithstanding the repeal under subsection
    (a), the provisions of subtitle A (as in effect immediately before
    such repeal) shall apply with respect to projects and programs for
    which binding commitments have been entered into under this Act
    before October 1, 2006.
      "(c) Termination of Director and Office. - The Office of
    Multifamily Housing Assistance Restructuring and the position of
    Director of such Office shall terminate at the end of September 30,
    2004.
      "(d) Transfer of Authority. - Effective upon the repeal of
    subtitle D under subsection (a)(2) of this section, all authority
    and responsibilities to administer the program under subtitle A are
    transferred to the Secretary."
      [Pub. L. 107-116, title VI, Sec. 616(a)(2), Jan. 10, 2002, 115
    Stat. 2225, provided that: "The amendment made by paragraph (1) of
    this subsection [amending section 514 of Pub. L. 105-65, set out
    above] is deemed to have taken effect on the date of the enactment
    of Public Law 106-74 [Oct. 20, 1999] (113 Stat. 1109)."]
      [Pub. L. 107-116, title VI, Sec. 622(b), Jan. 10, 2002, 115 Stat.
    2227, provided that: "The amendment made by subsection (a)
    [amending section 572(a) of Pub. L. 105-65, set out above] shall
    apply to the first Director of the Office of Multifamily Housing
    Assistance Restructuring of the Department of Housing and Urban
    Development appointed after the date of the enactment of this Act
    [Jan. 10, 2002], and any such Director appointed thereafter."]
      [Pub. L. 107-116, title VI, Sec. 623(b), Jan. 10, 2002, 115 Stat.
    2227, provided that: "The amendment made by subsection (a)
    [amending section 572(b) of Pub. L. 105-65, set out above] shall
    apply to any vacancy in the position of Director of the Office of
    Multifamily Housing Assistance Restructuring of the Department of
    Housing and Urban Development which occurs or exists after the date
    of the enactment of this Act [Jan. 10, 2002]."]
      [Pub. L. 105-276, title V, Sec. 597(c), Oct. 21, 1998, 112 Stat.
    2659, provided that: "This section [amending section 524(a)(2) of
    Pub. L. 105-65, set out above] shall take effect on, and the
    amendments made by this section are made on, and shall apply
    beginning upon, the date of the enactment of this Act [Oct. 21,
    1998]."]

     GAO REPORT ON SECTION 8 RENTAL ASSISTANCE FOR MULTIFAMILY HOUSING
                                 PROJECTS
      Section 532 of Pub. L. 105-65 provided that: "Not later than the
    expiration of the 18-month period beginning on the date of the
    enactment of this Act [Oct. 27, 1997], the Comptroller General of
    the United States shall submit a report to the Congress analyzing -
    
        "(1) the housing projects for which project-based assistance is
      provided under section 8 of the United States Housing Act of 1937
      [42 U.S.C. 1437f], but which are not subject to a mortgage
      insured or held by the Secretary under the National Housing Act
      [12 U.S.C. 1701 et seq.];
        "(2) how State and local housing finance agencies have
      benefited financially from the rental assistance program under
      section 8 of the United States Housing Act of 1937, including any
      benefits from fees, bond financings, and mortgage refinancings;
      and
        "(3) the extent and effectiveness of State and local housing
      finance agencies oversight of the physical and financial
      management and condition of multifamily housing projects for
      which project-based assistance is provided under section 8 of the
      United States Housing Act of 1937."

     ADMINISTRATIVE FEES FOR CERTIFICATE AND HOUSING VOUCHER PROGRAMS 
      Section 202 of Pub. L. 104-204 provided that: "Notwithstanding
    section 8(q) of the United States Housing Act of 1937 [42 U.S.C.
    1437f(q)], as amended - 
      "(a) The Secretary shall establish fees for the cost of
    administering the certificate, voucher and moderate rehabilitation
    programs.
        "(1)(A) For fiscal year 1997, the fee for each month for which
      a dwelling unit is covered by an assistance contract shall be 7.5
      percent of the base amount, adjusted as provided herein, in the
      case of an agency that, on an annual basis, is administering a
      program of no more than 600 units, and 7 percent of the base
      amount, adjusted as provided herein, for each additional unit
      above 600.
        "(B) The base amount shall be the higher of - 
          "(i) the fair market rental for fiscal year 1993 for a 2-
        bedroom existing rental dwelling unit in the market area of
        the agency; and
          "(ii) such fair market rental for fiscal year 1994, but not
        more than 103.5 percent of the amount determined under clause
        (i).
        "(C) The base amount shall be adjusted to reflect changes in
      the wage data or other objectively measurable data that reflect
      the costs of administering the program during fiscal year 1996;
      except that the Secretary may require that the base amount be not
      less than a minimum amount and not more than a maximum amount.
        "(2) For subsequent fiscal years, the Secretary shall publish a
      notice in the Federal Register, for each geographic area,
      establishing the amount of the fee that would apply for the
      agencies administering the program, based on changes in wage data
      or other objectively measurable data that reflect the cost of
      administering the program, as determined by the Secretary.
        "(3) The Secretary may increase the fee if necessary to reflect
      higher costs of administering small programs and programs
      operating over large geographic areas.
        "(4) The Secretary may decrease the fee for PHA-owned units.
      "(b) Beginning in fiscal year 1997 and thereafter, the Secretary
    shall also establish reasonable fees (as determined by the
    Secretary) for - 
        "(1) the costs of preliminary expenses, in the amount of $500,
      for a public housing agency, but only in the first year it
      administers a tenant-based assistance program under the United
      States Housing Act of 1937 [42 U.S.C. 1437 et seq.] and only if,
      immediately before the effective date of this Act [Sept. 26,
      1996], it was not administering a tenant-based assistance program
      under the 1937 Act (as in effect immediately before the effective
      date of this Act), in connection with its initial increment of
      assistance received;
        "(2) the costs incurred in assisting families who experience
      difficulty (as determined by the Secretary) in obtaining
      appropriate housing under the program; and
        "(3) extraordinary costs approved by the Secretary."
      Similar provisions were contained in the following prior
    appropriations Acts:
      Pub. L. 104-99, title IV, Sec. 403(b), Jan. 26, 1996, 110 Stat.
    43.
      Pub. L. 103-120, Sec. 11(a), Oct. 27, 1993, 107 Stat. 1151.

                             CONTRACT RENEWALS                         
      Section 211 of Pub. L. 104-204, as amended by Pub. L. 105-18,
    title II, Sec. 10006, June 12, 1997, 111 Stat. 201; Pub. L. 105-65,
    title V, Sec. 523(e), Oct. 27, 1997, 111 Stat. 1407; Pub. L. 106-
    400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675, provided that:
      "(a) Definitions. - For purposes of this section - 
        "(1) the term 'expiring contract' means a contract for project-
      based assistance under section 8 of the United States Housing
      Act of 1937 [42 U.S.C. 1437f] that expires during fiscal year
      1997;
        "(2) the term 'family' has the same meaning as in section 3(b)
      of the United States Housing Act of 1937 [42 U.S.C. 1437a(b)];
        "(3) the term 'multifamily housing project' means a property
      consisting of more than 4 dwelling units that is covered in whole
      or in part by a contract for project-based assistance under
      section 8 of the United States Housing Act of 1937;
        "(4) the term 'owner' has the same meaning as in section 8(f)
      of the United States Housing Act of 1937;
        "(5) the term 'project-based assistance' means rental
      assistance under section 8 of the United States Housing Act of
      1937 that is attached to a multifamily housing project;
        "(6) the term 'public agency' means a State housing finance
      agency, a local housing agency, or other agency with a public
      purpose and status;
        "(7) the term 'Secretary' means the Secretary of Housing and
      Urban Development; and
        "(8) the term 'tenant-based assistance' has the same meaning as
      in section 8(f) of the United States Housing Act of 1937.
      "(b) Section 8 Contract Renewal Authority. - 
        "(1) In general. - Notwithstanding section 405(a) of the
      Balanced Budget Downpayment Act, I [Pub. L. 104-99, set out
      below], upon the request of the owner of a multifamily housing
      project that is covered by an expiring contract, the Secretary
      shall use amounts made available for the renewal of assistance
      under section 8 of the United States Housing Act of 1937 [42
      U.S.C. 1437f] to renew the expiring contract as project-based
      assistance for a period of not more than one year, at rent levels
      that are equal to those under the expiring contract as of the
      date on which the contract expires: Provided, That those rent
      levels do not exceed 120 percent of the fair market rent for the
      market area in which the project is located. For an FHA-insured
      multifamily housing project with an expiring contract at rent
      levels that exceed 120 percent of the fair market rent for the
      market area, the Secretary shall provide, at the request of the
      owner, section 8 project-based assistance, for a period of not
      more than one year, at rent levels that do not exceed 120 percent
      of the fair market rent.
        "(2) Exemption for state and local housing agency projects. -
      Notwithstanding paragraph (1), upon the expiration of a contract
      with rent levels that exceed the percentage described in that
      paragraph, if the Secretary determines that the primary financing
      or mortgage insurance for the multifamily housing project that is
      covered by that expiring contract was provided by a public
      agency, the Secretary shall, at the request of the owner and the
      public agency, renew the expiring contract - 
          "(A) for a period of not more than one year; and
          "(B) at rent levels that are equal to those under the
        expiring contract as of the date on which the contract expires.
        "(3) Exemption of certain other projects. - Notwithstanding
      paragraph (1), for section 202 projects, section 515 projects,
      projects with contracts entered into pursuant to section 441 of
      the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11401], and
      projects with rents that exceed 100 percent of fair market rent
      for the market area, but that are less than rents for comparable
      projects, upon the expiration of a section 8 contract, the
      Secretary shall, at the request of the owner, renew the expiring
      contract - 
          "(A) for a period of not more than one year; and
          "(B) at rent levels that are equal to those under the
        expiring contract as of the date on which the contract expires.
        "(4) Other contracts. - 
          "(A) Participation in demonstration. - For a contract
        covering an FHA-insured multifamily housing project that
        expires during fiscal year 1997 with rent levels that exceed
        the percentage described in paragraph (1) and after notice to
        the tenants, the Secretary shall, at the request of the owner
        of the project and after notice to the tenants, include that
        multifamily housing project in the demonstration program under
        section 212 of this Act [set out below]. The Secretary shall
        ensure that a multifamily housing project with an expiring
        contract in fiscal year 1997 shall be allowed to be included in
        the demonstration.
          "(B) Effect of material adverse actions and omissions. -
        Notwithstanding paragraph (1) or any other provision of law,
        the Secretary shall not renew an expiring contract if the
        Secretary determines that the owner of the multifamily housing
        project has engaged in material adverse financial or managerial
        actions or omissions with regard to the project (or with regard
        to other similar projects if the Secretary determines that such
        actions or omissions constitute a pattern of mismanagement that
        would warrant suspension or debarment by the Secretary). The
        term 'owner', as used in this subparagraph, in addition to it
        having the same meaning as in section 8(f) of the United States
        Housing Act of 1937 [42 U.S.C. 1437f(f)], also means an
        affiliate of the owner. The term 'affiliate of the owner' means
        any person or entity (including, but not limited to, a general
        partner or managing member, or an officer of either) that
        controls an owner, is controlled by an owner, or is under
        common control with the owner. The term 'control' means the
        direct or indirect power (under contract, equity ownership, the
        right to vote or determine a vote, or otherwise) to direct the
        financial, legal, beneficial, or other interests of the owner.
          "(C) Transfer of property. - For properties disqualified from
        the demonstration program because of actions by an owner or
        purchaser in accordance with subparagraph (B), the Secretary
        shall establish procedures to facilitate the voluntary sale or
        transfer of the property, with a preference for tenant
        organizations and tenant-endorsed community-based nonprofit and
        public agency purchasers meeting such reasonable qualifications
        as may be established by the Secretary. The Secretary may
        include the transfer of section 8 project-based assistance.
        "(5) Tenant protections. - Any family residing in an assisted
      unit in a multifamily housing project that is covered by an
      expiring contract that is not renewed, shall be offered tenant-
      based assistance before the date on which the contract expires
      or is not renewed."
      Pub. L. 104-120, Sec. 2(a), Mar. 28, 1996, 110 Stat. 834,
    provided that: "Notwithstanding section 405(b) of the Balanced
    Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 44) [set
    out below], at the request of the owner of any project assisted
    under section 8(e)(2) of the United States Housing Act of 1937 [42
    U.S.C. 1437f(e)(2)] (as such section existed immediately before
    October 1, 1991), the Secretary of Housing and Urban Development
    may renew, for a period of 1 year, the contract for assistance
    under such section for such project that expires or terminates
    during fiscal year 1996 at current rent levels."
      Section 405(a), (b) of Pub. L. 104-99, as amended by Pub. L. 105-
    65, title V, Sec. 523(d), Oct. 27, 1997, 111 Stat. 1407, provided
    that:
      "(a) Notwithstanding part 24 of title 24 of the Code of Federal
    Regulations, for fiscal year 1996 and henceforth, the Secretary of
    Housing and Urban Development may use amounts available for the
    renewal of assistance under section 8 of the United States Housing
    Act of 1937 [42 U.S.C. 1437f], upon termination or expiration of a
    contract for assistance under section 8 of such Act of 1937 (other
    than a contract for tenant-based assistance and notwithstanding
    section 8(v) of such Act for loan management assistance), to
    provide assistance under section 8 of such Act, subject to the
    Section 8 Existing Fair Market Rents, for the eligible families
    assisted under the contracts at expiration or termination, which
    assistance shall be in accordance with terms and conditions
    prescribed by the Secretary.
      "(b) Notwithstanding subsection (a) and except for projects
    assisted under section 8(e)(2) of the United States Housing Act of
    1937 (as it existed immediately prior to October 1, 1991), at the
    request of the owner, the Secretary shall renew for a period of one
    year contracts for assistance under section 8 that expire or
    terminate during fiscal year 1996 at the current rent levels."

                  FHA MULTIFAMILY DEMONSTRATION AUTHORITY              
      Section 212 of title II of Pub. L. 104-204, as amended by Pub. L.
    105-65, title V, Sec. 523(f), Oct. 27, 1997, 111 Stat. 1407,
    provided that:
      "(a) In General. - 
        "(1) Repeal. - 
          "(A) In general. - Section 210 of the Departments of Veterans
        Affairs and Housing and Urban Development and Independent
        Agencies Appropriations Act, 1996 (110 Stat. 1321) [section
        101(e) [title II, Sec. 210] of Pub. L. 104-134, formerly set
        out as a note below] is repealed.
          "(B) Exception. - Notwithstanding the repeal under
        subparagraph (A), amounts made available under section 210(f)
        [of] the Departments of Veterans Affairs and Housing and Urban
        Development and Independent Agencies Appropriations Act, 1996
        shall remain available for the demonstration program under this
        section through the end of fiscal year 1997.
        "(2) Savings provisions. - Nothing in this section shall be
      construed to affect any commitment entered into before the date
      of enactment of this Act [Sept. 26, 1996] under the demonstration
      program under section 210 of the Departments of Veterans Affairs
      and Housing and Urban Development and Independent Agencies
      Appropriations Act, 1996.
        "(3) Definitions. - For purposes of this section - 
          "(A) the term 'demonstration program' means the program
        established under subsection (b);
          "(B) the term 'expiring contract' means a contract for
        project-based assistance under section 8 of the United States
        Housing Act of 1937 [42 U.S.C. 1437f] that expires during
        fiscal year 1997;
          "(C) the term 'family' has the same meaning as in section
        3(b) of the United States Housing Act of 1937 [42 U.S.C.
        1437a(b)];
          "(D) the term 'multifamily housing project' means a property
        consisting of more than 4 dwelling units that is covered in
        whole or in part by a contract for project-based assistance;
          "(E) the term 'owner' has the same meaning as in section 8(f)
        of the United States Housing Act of 1937;
          "(F) the term 'project-based assistance' means rental
        assistance under section 8 of the United States Housing Act of
        1937 that is attached to a multifamily housing project;
          "(G) the term 'Secretary' means the Secretary of Housing and
        Urban Development; and
          "(H) the term 'tenant-based assistance' has the same meaning
        as in section 8(f) of the United States Housing Act of 1937.
      "(b) Demonstration Authority. - 
        "(1) In general. - Subject to the funding limitation in
      subsection (l), the Secretary shall administer a demonstration
      program with respect to multifamily projects - 
          "(A) whose owners agree to participate;
          "(B) with rents on units assisted under section 8 of the
        United States Housing Act of 1937 [42 U.S.C. 1437f] that are,
        in the aggregate, in excess of 120 percent of the fair market
        rent of the market area in which the project is located; and
          "(C) the mortgages of which are insured under the National
        Housing Act [12 U.S.C. 1701 et seq.].
        "(2) Purpose. - The demonstration program shall be designed to
      obtain as much information as is feasible on the economic
      viability and rehabilitation needs of the multifamily housing
      projects in the demonstration, to test various approaches for
      restructuring mortgages to reduce the financial risk to the FHA
      Insurance Fund while reducing the cost of section 8 subsidies,
      and to test the feasibility and desirability of - 
          "(A) ensuring, to the maximum extent practicable, that the
        debt service and operating expenses, including adequate
        reserves, attributable to such multifamily projects can be
        supported at the comparable market rent with or without
        mortgage insurance under the National Housing Act and with or
        without additional section 8 rental subsidies;
          "(B) utilizing section 8 rental assistance, while taking into
        account the capital needs of the projects and the need for
        adequate rental assistance to support the low- and very low-
        income families residing in such projects; and
          "(C) preserving low-income rental housing affordability and
        availability while reducing the long-term cost of section 8
        rental assistance.
      "(c) Goals. - 
        "(1) In general. - The Secretary shall carry out the
      demonstration program in a manner that will protect the financial
      interests of the Federal Government through debt restructuring
      and subsidy reduction and, in the least costly fashion, address
      the goals of - 
          "(A) maintaining existing affordable housing stock in a
        decent, safe, and sanitary condition;
          "(B) minimizing the involuntary displacement of tenants;
          "(C) taking into account housing market conditions;
          "(D) encouraging responsible ownership and management of
        property;
          "(E) minimizing any adverse income tax impact on property
        owners; and
          "(F) minimizing any adverse impacts on residential
        neighborhoods and local communities.
        "(2) Balance of competing goals. - In determining the manner in
      which a mortgage is to be restructured or a subsidy reduced under
      this subsection, the Secretary may balance competing goals
      relating to individual projects in a manner that will further the
      purposes of this section.
      "(d) Participation Arrangements. - 
        "(1) In general. - In carrying out the demonstration program,
      the Secretary may enter into participation arrangements with
      designees, under which the Secretary may provide for the
      assumption by designees (by delegation, by contract, or
      otherwise) of some or all of the functions, obligations,
      responsibilities and benefits of the Secretary.
        "(2) Designees. - In entering into any arrangement under this
      subsection, the Secretary shall select state housing finance
      agencies, housing agencies or nonprofits (separately or in
      conjunction with each other) to act as designees to the extent
      such agencies are determined to be qualified by the Secretary. In
      locations where there is no qualified State housing finance
      agency, housing agency or nonprofit to act as a designee, the
      Secretary may act as a designee. Each participation arrangement
      entered into under this subsection shall include a designee as
      the primary partner. Any organization selected by the Secretary
      under this section shall have a long-term record of service in
      providing low-income housing and meet standards of fiscal
      responsibility, as determined by the Secretary.
        "(3) Designee partnerships. - For purposes of any participation
      arrangement under this subsection, designees are encouraged to
      develop partnerships with each other, and to contract or
      subcontract with other entities, including - 
          "(A) public housing agencies;
          "(B) financial institutions;
          "(C) mortgage servicers;
          "(D) nonprofit and for-profit housing organizations;
          "(E) the Federal National Mortgage Association;
          "(F) the Federal Home Loan Mortgage Corporation;
          "(G) Federal Home Loan Banks; and
          "(H) other State or local mortgage insurance companies or
        bank lending consortia.
      "(e) Long-Term Affordability. - 
        "(1) In general. - After the renewal of a section 8 contract
      pursuant to a restructuring under this section, the owner shall
      accept each offer to renew the section 8 contract, for a period
      of 20 years from the date of the renewal under the demonstration,
      if the offer to renew is on terms and conditions, as agreed to by
      the Secretary or designee and the owner under a restructuring.
        "(2) Affordability requirements. - Except as otherwise provided
      by the Secretary, in exchange for any mortgage restructuring
      under this section, a project shall remain affordable for a
      period of not less than 20 years. Affordability requirements
      shall be determined in accordance with guidelines established by
      the Secretary or designee. The Secretary or designee may waive
      these requirements for good cause.
      "(f) Procedures. - 
        "(1) Notice of participation in demonstration. - Not later than
      45 days before the date of expiration of an expiring contract (or
      such later date, as determined by the Secretary, for good cause),
      the owner of the multifamily housing project covered by that
      expiring contract shall notify the Secretary or designee and the
      residents of the owner's intent to participate in the
      demonstration program.
        "(2) Demonstration contract. - Upon receipt of a notice under
      paragraph (1), the owner and the Secretary or designee shall
      enter into a demonstration contract, which shall provide for
      initial section 8 project-based rents at the same rent levels as
      those under the expiring contract or, if practical, the budget-
      based rent to cover debt service, reasonable operating expenses
      (including reasonable and appropriate services), and a reasonable
      return to the owner, as determined solely by the Secretary. The
      demonstration contract shall be for the minimum term necessary
      for the rents and mortgages of the multifamily housing project to
      be restructured under the demonstration program, but shall not be
      for a period of time to exceed 180 days, unless extended for good
      cause by the Secretary.
      "(g)(1) Project-Based Section 8. - The Secretary shall renew all
    expiring contracts under the demonstration as section 8 project-
    based contracts, for a period of time not to exceed one year,
    unless otherwise provided under subsection (h) or in paragraph (2).
      "(2) The Secretary may renew a demonstration contract for an
    additional period of not to exceed 120 days, if - 
        "(A) the contract was originally executed before February 1,
      1997, and the Secretary determines, in the sole discretion of the
      Secretary, that the renewal period for the contract needs to
      exceed 1 year, due to delay of publication of the Secretary's
      demonstration program guidelines until January 23, 1997 (not to
      exceed 21 projects); or
        "(B) the contract was originally executed before October 1,
      1997, in connection with a project that has been identified for
      restructuring under the joint venture approach described in
      section VII.B.2. of the Secretary's demonstration program
      guidelines, and the Secretary determines, in the sole discretion
      of the Secretary, that the renewal period for the contract needs
      to exceed 1 year, due to delay in implementation of the joint
      venture agreement required by the guidelines (not to exceed 25
      projects).
      "(h) Demonstration Actions. - 
        "(1) Demonstration actions. - For purposes of carrying out the
      demonstration program, and in order to ensure that contract
      rights are not abrogated, subject to such third party consents as
      are necessary (if any), including consent by the Government
      National Mortgage Association if it owns a mortgage insured by
      the Secretary, consent by an issuer under the mortgage-backed
      securities program of the Association, subject to the
      responsibilities of the issuer to its security holders and the
      Association under such program, and consent by parties to any
      contractual agreement which the Secretary proposes to modify or
      discontinue, the Secretary or, except with respect to
      subparagraph (B), designee, subject to the funding limitation in
      subsection (l), shall take not less than one of the actions
      specified in subparagraphs (G), (H), and (I) and may take any of
      the following actions:
          "(A) Removal of restrictions. - 
            "(i) In general. - Consistent with the purposes of this
          section, subject to the agreement of the owner of the project
          and after consultation with the tenants of the project, the
          Secretary or designee may remove, relinquish, extinguish,
          modify, or agree to the removal of any mortgage, regulatory
          agreement, project-based assistance contract, use agreement,
          or restriction that had been imposed or required by the
          Secretary, including restrictions on distributions of income
          which the Secretary or designee determines would interfere
          with the ability of the project to operate without above-
          market rents.
            "(ii) Accumulated residual receipts. - The Secretary or
          designee may require an owner of a property assisted under
          the section 8 new construction/substantial rehabilitation
          program under the United States Housing Act of 1937 [42
          U.S.C. 1437 et seq.] to apply any accumulated residual
          receipts toward effecting the purposes of this section.
          "(B) Reinsurance. - With respect to not more than 5,000 units
        within the demonstration during fiscal year 1997, the Secretary
        may enter into contracts to purchase reinsurance, or enter into
        participations or otherwise transfer economic interest in
        contracts of insurance or in the premiums paid, or due to be
        paid, on such insurance, on such terms and conditions as the
        Secretary may determine. Any contract entered into under this
        paragraph shall require that any associated units be maintained
        as low-income units for the life of the mortgage, unless waived
        by the Secretary for good cause.
          "(C) Participation by third parties. - The Secretary or
        designee may enter into such agreements, provide such
        concessions, incur such costs, make such grants (including
        grants to cover all or a portion of the rehabilitation costs
        for a project) and other payments, and provide other valuable
        consideration as may reasonably be necessary for owners,
        lenders, servicers, third parties, and other entities to
        participate in the demonstration program. The Secretary may
        establish performance incentives for designees.
          "(D) Section 8 administrative fees. - Notwithstanding any
        other provision of law, the Secretary may make fees available
        from the section 8 contract renewal appropriation to a designee
        for contract administration under section 8 of the United
        States Housing Act of 1937 [42 U.S.C. 1437f] for purposes of
        any contract restructured or renewed under the demonstration
        program.
          "(E) Full or partial payment of claim. - Notwithstanding any
        other provision of law, the Secretary may make a full payment
        of claim or partial payment of claim prior to default.
          "(F) Credit enhancement. - 
            "(i) In general. - The Secretary or designee may provide
          FHA multifamily mortgage insurance, reinsurance, or other
          credit enhancement alternatives, including retaining the
          existing FHA mortgage insurance on a restructured first
          mortgage at market value or using the multifamily risk-
          sharing mortgage programs, as provided under section 542 of
          the Housing and Community Development Act of 1992 [12 U.S.C.
          1707 note]. Any limitations on the number of units available
          for mortgage insurance under section 542 shall not apply to
          insurance issued for purposes of the demonstration program.
            "(ii) Maximum percentage. - During fiscal year 1997, not
          more than 25 percent of the units in multifamily housing
          projects with expiring contracts in the demonstration, in the
          aggregate, may be restructured without FHA insurance, unless
          otherwise agreed to by the owner of a project.
            "(iii) Credit subsidy. - Any credit subsidy costs of
          providing mortgage insurance shall be paid from amounts made
          available under subsection (l).
          "(G) Mortgage restructuring. - 
            "(i) In general. - The Secretary or designee may
          restructure mortgages to provide a restructured first
          mortgage to cover debt service and operating expenses
          (including a reasonable rate of return to the owner) at the
          market rent, and a second mortgage equal to the difference
          between the restructured first mortgage and the mortgage
          balance of the eligible multifamily housing project at the
          time of restructuring.
            "(ii) Credit subsidy. - Any credit subsidy costs of
          providing a second mortgage shall be paid from amounts made
          available under subsection (l).
          "(H) Debt forgiveness. - The Secretary or designee, for good
        cause and at the request of the owner of a multifamily housing
        project, may forgive at the time of the restructuring of a
        mortgage any portion of a debt on the project that exceeds the
        market value of the project.
          "(I) Budget-based rents. - The Secretary or designee may
        renew an expiring contract, including a contract for a project
        in which operating costs exceed comparable market rents, for a
        period of not more than one year, at a budget-based rent that
        covers debt service, reasonable operating expenses (including
        all reasonable and appropriate services), and a reasonable rate
        of return to the owner, as determined solely by the Secretary,
        provided that the contract does not exceed the rent levels
        under the expiring contract. The Secretary may establish a
        preference under the demonstration program for budget-based
        rents for unique housing projects, such as projects designated
        for occupancy by elderly families and projects in rural areas.
          "(J) Section 8 tenant-based assistance. - For not more than
        10 percent of units in multifamily housing projects that have
        had their mortgages restructured in any fiscal year under the
        demonstration, the Secretary or designee may provide, with the
        agreement of an owner and in consultation with the tenants of
        the housing, section 8 tenant-based assistance for some or all
        of the assisted units in a multifamily housing project in lieu
        of section 8 project-based assistance. Section 8 tenant-based
        assistance may only be provided where the Secretary determines
        and certifies that there is adequate available and affordable
        housing within the local area and that tenants will be able to
        use the section 8 tenant-based assistance successfully.
        "(2) Offer and acceptance. - Notwithstanding any other
      provision of law, an owner of a project in the demonstration must
      accept any reasonable offer made by the Secretary or a designee
      under this subsection. An owner may appeal the reasonableness of
      any offer to the Secretary and the Secretary shall respond within
      30 days of the date of appeal with a final offer. If the final
      offer is not acceptable, the owner may opt out of the program.
      "(i) Community and Tenant Input. - In carrying out this section,
    the Secretary shall develop procedures to provide appropriate and
    timely notice, including an opportunity for comment and timely
    access to all relevant information, to officials of the unit of
    general local government affected, the community in which the
    project is situated, and the tenants of the project.
      "(j) Transfer of Property. - The Secretary shall establish
    procedures to facilitate the voluntary sale or transfer of
    multifamily housing projects under the demonstration to tenant
    organizations and tenant-endorsed community-based nonprofit and
    public agency purchasers meeting such reasonable qualifications as
    may be established by the Secretary.
      "(k) Limitation on Demonstration Authority. - The Secretary shall
    carry out the demonstration program with respect to mortgages not
    to exceed 50,000 units.
      "(l) Funding. - In addition to the $30,000,000 made available
    under section 210 of the Departments of Veterans Affairs and
    Housing and Urban Development and Independent Agencies
    Appropriations Act, 1996 (110 Stat. 1321) [section 101(e) [title
    II, Sec. 210] of Pub. L. 104-134, formerly set out as a note
    below], for the costs (including any credit subsidy costs
    associated with providing direct loans or mortgage insurance) of
    modifying and restructuring loans held or guaranteed by the Federal
    Housing Administration, as authorized under this section,
    $10,000,000 is hereby appropriated, to remain available until
    September 30, 1998.
      "(m) Report to Congress. - 
        "(1) In general. - 
          "(A) Quarterly reports. - Not less than every 3 months, the
        Secretary shall submit to the Congress a report describing and
        assessing the status of the projects in the demonstration
        program.
          "(B) Final report. - Not later than 6 months after the end of
        the demonstration program, the Secretary shall submit to the
        Congress a final report on the demonstration program.
        "(2) Contents. - Each report submitted under paragraph (1)(A)
      shall include a description of - 
          "(A) each restructuring proposal submitted by an owner of a
        multifamily housing project, including a description of the
        physical, financial, tenancy, and market characteristics of the
        project;
          "(B) the Secretary's evaluation and reasons for each
        multifamily housing project selected or rejected for
        participation in the demonstration program;
          "(C) the costs to the FHA General Insurance and Special Risk
        Insurance funds;
          "(D) the subsidy costs provided before and after
        restructuring;
          "(E) the actions undertaken in the demonstration program,
        including the third-party arrangements made; and
          "(F) the demonstration program's impact on the owners of the
        projects, including any tax consequences.
        "(3) Contents of final report. - The report submitted under
      paragraph (1)(B) shall include - 
          "(A) the required contents under paragraph (2); and
          "(B) any findings and recommendations for legislative
        action."
      Section 101(e) [title II, Sec. 210] of title I of Pub. L. 104-
    134, Apr. 26, 1996, 110 Stat. 1321-257, 1321-285; renumbered title
    I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327, which
    authorized the Secretary of Housing and Urban Development on and
    after Oct. 1, 1995, and before Oct. 1, 1997, to initiate a FHA
    multifamily demonstration program, was repealed by Pub. L. 104-204,
    title II, Sec. 212(a)(1)(A), Sept. 26, 1996, 110 Stat. 2897.

                PUBLIC HOUSING MOVING TO WORK DEMONSTRATION            
      Section 101(e) [title II, Sec. 204] of Pub. L. 104-134, as
    amended by Pub. L. 105-276, title V, Sec. 522(b)(3), Oct. 21, 1998,
    112 Stat. 2564, provided that:
      "(a) Purpose. - The purpose of this demonstration is to give
    public housing agencies and the Secretary of Housing and Urban
    Development the flexibility to design and test various approaches
    for providing and administering housing assistance that: reduce
    cost and achieve greater cost effectiveness in Federal
    expenditures; give incentives to families with children where the
    head of household is working, seeking work, or is preparing for
    work by participating in job training, educational programs, or
    programs that assist people to obtain employment and become
    economically self-sufficient; and increase housing choices for low-
    income families.
      "(b) Program Authority. - The Secretary of Housing and Urban
    Development shall conduct a demonstration program under this
    section beginning in fiscal year 1996 under which up to 30 public
    housing agencies (including Indian housing authorities)
    administering the public or Indian housing program and the section
    8 [42 U.S.C. 1437f] housing assistance payments program may be
    selected by the Secretary to participate. The Secretary shall
    provide training and technical assistance during the demonstration
    and conduct detailed evaluations of up to 15 such agencies in an
    effort to identify replicable program models promoting the purpose
    of the demonstration. Under the demonstration, notwithstanding any
    provision of the United States Housing Act of 1937 [42 U.S.C. 1437
    et seq.] except as provided in subsection (e), an agency may
    combine operating assistance provided under section 9 of the United
    States Housing Act of 1937 [42 U.S.C. 1437g], modernization
    assistance provided under section 14 of such Act [42 U.S.C. 1437l],
    and assistance provided under section 8 of such Act for the
    certificate and voucher programs, to provide housing assistance for
    low-income families, as defined in section 3(b)(2) of the United
    States Housing Act of 1937 [42 U.S.C. 1437a(b)(2)], and services to
    facilitate the transition to work on such terms and conditions as
    the agency may propose and the Secretary may approve.
      "(c) Application. - An application to participate in the
    demonstration - 
        "(1) shall request authority to combine assistance under
      sections 8, 9, and 14 of the United States Housing Act of 1937
      [42 U.S.C. 1437f, 1437g, 1437l];
        "(2) shall be submitted only after the public housing agency
      provides for citizen participation through a public hearing and,
      if appropriate, other means;
        "(3) shall include a plan developed by the agency that takes
      into account comments from the public hearing and any other
      public comments on the proposed program, and comments from
      current and prospective residents who would be affected, and that
      includes criteria for - 
          "(A) families to be assisted, which shall require that at
        least 75 percent of the families assisted by participating
        demonstration public housing authorities shall be very low-
        income families, as defined in section 3(b)(2) of the United
        States Housing Act of 1937 [42 U.S.C. 1437a(b)(2)];
          "(B) establishing a reasonable rent policy, which shall be
        designed to encourage employment and self-sufficiency by
        participating families, consistent with the purpose of this
        demonstration, such as by excluding some or all of a family's
        earned income for purposes of determining rent;
          "(C) continuing to assist substantially the same total number
        of eligible low-income families as would have been served had
        the amounts not been combined;
          "(D) maintaining a comparable mix of families (by family
        size) as would have been provided had the amounts not been used
        under the demonstration; and
          "(E) assuring that housing assisted under the demonstration
        program meets housing quality standards established or approved
        by the Secretary; and
        "(4) may request assistance for training and technical
      assistance to assist with design of the demonstration and to
      participate in a detailed evaluation.
      "(d) Selection. - In selecting among applications, the Secretary
    shall take into account the potential of each agency to plan and
    carry out a program under the demonstration, the relative
    performance by an agency under the public housing management
    assessment program under section 6(j) of the United States Housing
    Act of 1937 [42 U.S.C. 1437d(j)], and other appropriate factors as
    determined by the Secretary.
      "(e) Applicability of 1937 Act Provisions. - 
        "(1) Section 18 of the United States Housing Act of 1937 [42
      U.S.C. 1437p] shall continue to apply to public housing
      notwithstanding any use of the housing under this demonstration.
        "(2) Section 12 of such Act [42 U.S.C. 1437j] shall apply to
      housing assisted under the demonstration, other than housing
      assisted solely due to occupancy by families receiving tenant-
      based assistance.
      "(f) Effect on Section 8, Operating Subsidies, and Comprehensive
    Grant Program Allocations. - The amount of assistance received
    under section 8, section 9, or pursuant to section 14 [42 U.S.C.
    1437f, 1437g, 1437l] by a public housing agency participating in
    the demonstration under this part [section] shall not be diminished
    by its participation.
      "(g) Records, Reports, and Audits. - 
        "(1) Keeping of records. - Each agency shall keep such records
      as the Secretary may prescribe as reasonably necessary to
      disclose the amounts and the disposition of amounts under this
      demonstration, to ensure compliance with the requirements of this
      section, and to measure performance.
        "(2) Reports. - Each agency shall submit to the Secretary a
      report, or series of reports, in a form and at a time specified
      by the Secretary. Each report shall - 
          "(A) document the use of funds made available under this
        section;
          "(B) provide such data as the Secretary may request to assist
        the Secretary in assessing the demonstration; and
          "(C) describe and analyze the effect of assisted activities
        in addressing the objectives of this part [section].
        "(3) Access to documents by the secretary. - The Secretary
      shall have access for the purpose of audit and examination to any
      books, documents, papers, and records that are pertinent to
      assistance in connection with, and the requirements of, this
      section.
        "(4) Access to documents by the comptroller general. - The
      Comptroller General of the United States, or any of the duly
      authorized representatives of the Comptroller General, shall have
      access for the purpose of audit and examination to any books,
      documents, papers, and records that are pertinent to assistance
      in connection with, and the requirements of, this section.
      "(h) Evaluation and Report. - 
        "(1) Consultation with pha and family representatives. - In
      making assessments throughout the demonstration, the Secretary
      shall consult with representatives of public housing agencies and
      residents.
        "(2) Report to congress. - Not later than 180 days after the
      end of the third year of the demonstration, the Secretary shall
      submit to the Congress a report evaluating the programs carried
      out under the demonstration. The report shall also include
      findings and recommendations for any appropriate legislative
      action.
      "(i) Funding for Technical Assistance and Evaluation. - From
    amounts appropriated for assistance under section 14 of the United
    States Housing Act of 1937 [42 U.S.C. 1437l] for fiscal years 1996,
    1997, and 1998, the Secretary may use up to a total of $5,000,000 -
    
        "(1) to provide, directly or by contract, training and
      technical assistance - 
          "(A) to public housing agencies that express an interest to
        apply for training and technical assistance pursuant to
        subsection (c)(4), to assist them in designing programs to be
        proposed for the demonstration; and
          "(B) to up to 10 agencies selected to receive training and
        technical assistance pursuant to subsection (c)(4), to assist
        them in implementing the approved program; and
        "(2) to conduct detailed evaluations of the activities of the
      public housing agencies under paragraph (1)(B), directly or by
      contract.
      "(j) Capital and Operating Fund Assistance. - With respect to any
    public housing agency participating in the demonstration under this
    section that receives assistance from the Capital or Operating Fund
    under section 9 of the United States Housing Act of 1937 [42 U.S.C.
    1437g] (as amended by the Quality Housing and Work Responsibility
    Act of 1998), for purposes of this section - 
        "(1) any reference to assistance under section 9 of the United
      States Housing Act of 1937 shall be considered to refer also to
      assistance provided from the Operating Fund under section 9(e) of
      such Act (as so amended); and
        "(2) any reference to assistance under section 14 of the United
      States Housing Act of 1937 [former 42 U.S.C. 1437l] shall be
      considered to refer also to assistance provided from the Capital
      Fund under section 9(d) of such Act (as so amended)."

     PROHIBITION AGAINST PREFERENCES WITH RESPECT TO CERTAIN PROJECTS 
      Pub. L. 104-99, title IV, Sec. 402(d)(4)(B), Jan. 26, 1996, 110
    Stat. 42, provided that: "Notwithstanding any other provision of
    law, no Federal tenant selection preferences under the United
    States Housing Act of 1937 [42 U.S.C. 1437 et seq.] shall apply
    with respect to - 
        "(i) housing constructed or substantially rehabilitated
      pursuant to assistance provided under section 8(b)(2) of the
      United States Housing Act of 1937 [42 U.S.C. 1437f(b)(2)] (as
      such section existed on the day before October 1, 1983); or
        "(ii) projects financed under section 202 of the Housing Act of
      1959 [12 U.S.C. 1701q] (as such section existed on the day before
      the date of enactment of the Cranston-Gonzalez National
      Affordable Housing Act [Nov. 28, 1990])."
      [Pub. L. 105-276, title V, Sec. 514(c)(2), Oct. 21, 1998, 112
    Stat. 2548, provided that: "Notwithstanding any other provision of
    law (including subsection (f) of this section [set out as an
    Effective and Termination Dates of 1996 Amendments note under
    section 1437a of this title]), section 402(d)(4)(B) of The Balanced
    Budget Downpayment Act, I [Pub. L. 104-99, set out above] (42
    U.S.C. 1437a note) shall apply to fiscal year 1999 and
    thereafter."]
      [Section 402(d)(4)(B) of Pub. L. 104-99, set out above, effective
    Jan. 26, 1996, only for fiscal years 1996, 1997, and 1998, and to
    cease to be effective Oct. 21, 1998, see section 402(f) of Pub. L.
    104-99, as amended, and section 514(f) of Pub. L. 105-276, set out
    as Effective and Termination Dates of 1996 Amendments notes under
    section 1437a of this title.]

                COMMUNITY INVESTMENT DEMONSTRATION PROGRAM            
      Pub. L. 103-120, Sec. 6, Oct. 27, 1993, 107 Stat. 1148, as
    amended by Pub. L. 104-316, title I, Sec. 122(j), Oct. 19, 1996,
    110 Stat. 3837, provided that:
      "(a) Demonstration Program. - The Secretary shall carry out a
    demonstration program to attract pension fund investment in
    affordable housing through the use of project-based rental
    assistance under section 8 of the United States Housing Act of 1937
    [42 U.S.C. 1437f].
      "(b) Funding Requirements. - In carrying out this section, the
    Secretary shall ensure that not less than 50 percent of the funds
    appropriated for the demonstration program each year are used in
    conjunction with the disposition of either - 
        "(1) multifamily properties owned by the Department; or
        "(2) multifamily properties securing mortgages held by the
      Department.
      "(c) Contract Terms. - 
        "(1) In general. - Project-based assistance under this section
      shall be provided pursuant to a contract entered into by the
      Secretary and the owner of the eligible housing that - 
          "(A) provides assistance for a term of not less than 60
        months and not greater than 180 months; and
          "(B) provides for contract rents, to be determined by the
        Secretary, which shall not exceed contract rents permitted
        under section 8 of the United States Housing Act of 1937 [42
        U.S.C. 1437f], taking into consideration any costs for the
        construction, rehabilitation, or acquisition of the housing.
        "(2) Amendment to section 203. - [Amended section 1701z-11 of
      Title 12, Banks and Banking.]
      "(d) Limitation. - (1) The Secretary may not provide (or make a
    commitment to provide) more than 50 percent of the funding for
    housing financed by any single pension fund, except that this
    limitation shall not apply if the Secretary, after the end of the 6-
    month period beginning on the date notice is issued under
    subsection (e) - 
        "(A) determines that - 
          "(i) there are no expressions of interest that are likely to
        result in approvable applications in the reasonably foreseeable
        future; or
          "(ii) any such expressions of interest are not likely to use
        all funding under this section; and
        "(B) so informs the Committee on Banking, Finance and Urban
      Affairs [now Committee on Financial Services] of the House of
      Representatives and the Committee on Banking, Housing, and Urban
      Affairs of the Senate.
      "(2) If the Secretary determines that there are expressions of
    interest referred to in paragraph (1)(A)(ii), the Secretary may
    reserve funding sufficient in the Secretary's determination to fund
    such applications and may use any remaining funding for other
    pension funds in accordance with this section.
      "(e) Implementation. - The Secretary shall by notice establish
    such requirements as may be necessary to carry out the provisions
    of this section. The notice shall take effect upon issuance.
      "(f) Applicability of ERISA. - Notwithstanding section 514(d) of
    the Employee Retirement Income Security Act of 1974 [29 U.S.C.
    1144(d)], nothing in this section shall be construed to authorize
    any action or failure to act that would constitute a violation of
    such Act [29 U.S.C. 1001 et seq.].
      "(g) Report. - Not later than 3 months after the last day of each
    fiscal year, the Secretary shall submit to the Committee on
    Banking, Finance and Urban Affairs [now Committee on Financial
    Services] of the House of Representatives and the Committee on
    Banking, Housing, and Urban Affairs of the Senate a report
    summarizing the activities carried out under this section during
    that fiscal year.
      "(h) Establishment of Standards. - Mortgages secured by housing
    assisted under this demonstration shall meet such standards
    regarding financing and securitization as the Secretary may
    establish.
      "(i) Authorization of Appropriations. - There are authorized to
    be appropriated $100,000,000 for fiscal year 1994 to carry out this
    section.
      "[(j) Redesignated (i).]
      "(k) Termination Date. - The Secretary shall not enter into any
    new commitment to provide assistance under this section after
    September 30, 1998."

     ADMINISTRATIVE FEES FOR CERTIFICATE AND HOUSING VOUCHER PROGRAMS
                          DURING FISCAL YEAR 1994
      Pub. L. 103-120, Sec. 11(a), Oct. 27, 1993, 107 Stat. 1151,
    provided that: "Notwithstanding the second sentence of section
    8(q)(1) of the United States Housing Act of 1937 [42 U.S.C.
    1437f(q)(1)], other applicable law, or any implementing regulations
    and related requirements, the fee for the ongoing costs of
    administering the certificate and housing voucher programs under
    subsections (b) and (o) of section 8 of such Act during fiscal year
    1994 shall be - 
        "(1) not less than a fee calculated in accordance with the fair
      market rents for Federal fiscal year 1993; or
        "(2) not more than - 
          "(A) a fee calculated in accordance with section 8(q) of such
        Act, except that such fee shall not be in excess of 3.5 percent
        above the fee calculated in accordance with paragraph (1); or
          "(B) to the extent approved in an appropriation Act, a fee
        calculated in accordance with such section 8(q)."

              EFFECTIVENESS OF ASSISTANCE FOR PHA-OWNED UNITS          
      Section 150 of Pub. L. 102-550 provided that: "The amendments
    made by section 548 of the Cranston-Gonzalez National Affordable
    Housing Act [Pub. L. 101-625, amending this section] shall be
    effective notwithstanding the absence of any regulations issued by
    the Secretary of Housing and Urban Development."

                  MOVING TO OPPORTUNITY FOR FAIR HOUSING              
      Section 152 of Pub. L. 102-550, as amended by Pub. L. 103-120,
    Sec. 3, Oct. 27, 1993, 107 Stat. 1148, which directed Secretary of
    Housing and Urban Development to carry out demonstration program in
    eligible cities to provide tenant-based assistance to very low-
    income families with children to move out of areas of high
    concentrations of persons living in poverty to areas with low
    concentrations of such persons, required biennial report to
    Congress evaluating effectiveness and final report not later than
    Sept. 30, 2004, provided for increased funding under section
    1437c(c) of this title to carry out demonstration, and authorized
    implementation by notice of requirements necessary to carry out
    program, was repealed by Pub. L. 105-276, title V, Sec. 550(f),
    Oct. 21, 1998, 112 Stat. 2610.

    DIRECTIVE TO FURTHER FAIR HOUSING OBJECTIVES UNDER CERTIFICATE AND
                             VOUCHER PROGRAMS
      Section 153 of Pub. L. 102-550, which directed Secretary of
    Housing and Urban Development, not later than 2 years after Oct.
    28, 1992, to review and comment upon study prepared pursuant to
    section 558(3) of Pub. L. 101-625, formerly set out as a note
    below, to evaluate implementation and effects of existing
    demonstration and judicially mandated programs, to assess factors
    that might impede geographic dispersion of families receiving
    section 8 certificates and vouchers, to identify and implement
    administrative revisions that would enhance dispersion and tenant
    choice, and to submit report to Congress describing findings,
    actions taken, and recommendations, was repealed by Pub. L. 105-
    276, title V, Sec. 582(a)(3), Oct. 21, 1998, 112 Stat. 2643.

    INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING
      Amendment by section 623(b) of Pub. L. 102-550 not applicable
    with respect to lower income housing developed or operated pursuant
    to contract between Secretary of Housing and Urban Development and
    Indian housing authority, see section 626 of Pub. L. 102-550, set
    out as a note under section 1437a of this title.

                 TERMINATION OF EXISTING HOUSING PROGRAMS             
      Except with respect to projects and programs for which binding
    commitments have been entered into prior to Oct. 1, 1991, no new
    grants or loans to be made after Oct. 1, 1991, under subsec. (e)(2)
    of this section except for funds allocated under such section for
    single room occupancy dwellings as authorized by subchapter IV
    (Sec. 11361 et seq.) of chapter 119 of this title, see section
    12839(a)(4) of this title.

    PUBLIC HOUSING MIXED INCOME NEW COMMUNITIES STRATEGY DEMONSTRATION
      Section 522 of Pub. L. 101-625, as amended by Pub. L. 104-66,
    title I, Sec. 1071(b), Dec. 21, 1995, 109 Stat. 720; Pub. L. 104-
    99, title IV, Sec. 402(d)(6)(B), Jan. 26, 1996, 110 Stat. 43,
    which directed Secretary of Housing and Urban Development to carry
    out program to demonstrate effectiveness of promoting
    revitalization of troubled urban communities through provision of
    public housing in socioeconomically mixed settings, directed
    appointment of coordinating committees to develop implementation
    plans, set forth scope of program including provision of supportive
    services, required report to Congress evaluating program's
    effectiveness and including findings and recommendations, and
    provided for termination of the program 10 years after Nov. 28,
    1990, was repealed by Pub. L. 105-276, title V, Sec. 582(a)(10),
    Oct. 21, 1998, 112 Stat. 2644.

                  STUDY OF PUBLIC HOUSING FUNDING SYSTEM              
      Section 524 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to conduct a study assessing one or more revised
    methods of providing sufficient Federal funds to public housing
    agencies for operation, maintenance and modernization of public
    housing, which study was to include a comparison of existing
    methods of funding in public housing with those used by Department
    of Housing and Urban Development in housing assisted under this
    section and a review of results of study entitled "Alternative
    Operating Subsidies Systems for the Public Housing Program", with
    an update of such study as necessary, and to submit a report to
    Congress not later than 12 months after Nov. 28, 1990, detailing
    the findings of this study.

          STUDY OF PROSPECTIVE PAYMENT SYSTEM FOR PUBLIC HOUSING      
      Section 525 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to conduct a study assessing one or more revised
    methods of providing Federal housing assistance through local
    public housing agencies, examining methods of prospective payment,
    including the conversion of PHA operating assistance,
    modernization, and other Federal housing assistance to a schedule
    of steady and predictable capitated Federal payments on behalf of
    low income public housing tenants, and making specific assessments
    and to submit a report to Congress not later than 12 months after
    Nov. 28, 1990.

          GAO STUDY OF ALTERNATIVES IN PUBLIC HOUSING DEVELOPMENT      
      Section 526 of Pub. L. 101-625 directed Comptroller General to
    conduct a study assessing alternative methods of developing public
    housing dwelling units, other than under the existing public
    housing development program under this chapter, and submit a report
    to Congress regarding the findings and conclusions of the study not
    later than 12 months after Nov. 28, 1990.

            PREFERENCE FOR NEW CONSTRUCTION UNDER THIS SECTION        
      Section 545(c) of Pub. L. 101-625, as amended by Pub. L. 104-99,
    title IV, Sec. 402(d)(4)(A), Jan. 26, 1996, 110 Stat. 42, which
    provided that, with respect to housing constructed or substantially
    rehabilitated pursuant to assistance provided under subsec. (b)(2)
    of this section, as such provisions existed before Oct. 1, 1983,
    and projects financed under section 1701q of Title 12, Banks and
    Banking, notwithstanding tenant selection criteria under contract
    between Secretary and owner pursuant to first sentence of such
    section, for at least 70 percent of units becoming available,
    tenant selection criteria for such housing was to give preference
    to families occupying substandard housing (including homeless
    families and those living in shelters), paying more than 50 percent
    of family income for rent, or involuntarily displaced, and system
    of local preferences established under subsec. (d)(1)(A)(ii) of
    this section by public housing agency was to apply to remaining
    units that became available, to extent that such preferences were
    applicable with respect to tenant eligibility limitations, was
    repealed by Pub. L. 105-276, title V, Sec. 514(c)(1), Oct. 21,
    1998, 112 Stat. 2548.

                  DOCUMENTATION OF EXCESSIVE RENT BURDENS              
      Section 550(b) of Pub. L. 101-625 provided that:
      "(1) Data. - The Secretary of Housing and Urban Development shall
    collect and maintain, in an automated system, data describing the
    characteristics of families assisted under the certificate and
    voucher programs established under section 8 of the United States
    Housing Act of 1937 [42 U.S.C. 1437f], which data shall include the
    share of family income paid toward rent.
      "(2) Report. - Not less than annually, the Secretary shall submit
    a report to the Congress setting forth, for each of the certificate
    program and the voucher program, the percentage of families
    participating in the program who are paying for rent more than the
    amount determined under section 3(a)(1) of such Act [42 U.S.C.
    1437a(a)(1)]. The report shall set forth data in appropriate
    categories, such as various areas of the country, types and sizes
    of public housing agencies, types of families, and types or
    markets. The data shall identify the jurisdictions in which more
    than 10 percent of the families assisted under section 8 of such
    Act pay for rent more than the amount determined under section
    3(a)(1) of such Act and the report shall include an examination of
    whether the fair market rent for such areas is appropriate. The
    report shall also include any recommendations of the Secretary for
    legislative and administrative actions appropriate as a result of
    analysis of the data.
      "(3) Availability of data. - The Secretary shall make available
    to each public housing agency administering assistance under the
    certificate or voucher program any data maintained under this
    subsection that relates to the public housing agency."
      [For termination, effective May 15, 2000, of reporting provisions
    in section 550(b)(2) of Pub. L. 101-625, set out above, see section
    3003 of Pub. L. 104-66, as amended, set out as a note under section
    1113 of Title 31, Money and Finance, and item 16 on page 103 of
    House Document No. 103-7.]

         INCOME ELIGIBILITY FOR TENANCY IN NEW CONSTRUCTION UNITS     
      Section 555 of Pub. L. 101-625 provided that: "Any dwelling units
    in any housing constructed or substantially rehabilitated pursuant
    to assistance provided under section 8(b)(2) of the United States
    Housing Act of 1937 [42 U.S.C. 1437f(b)(2)], as such section
    existed before October 1, 1983, and with a contract for assistance
    under such section, shall be reserved for occupancy by low-income
    families and very low-income families."

             GAO STUDY REGARDING FAIR MARKET RENT CALCULATION         
      Section 558 of Pub. L. 101-625 directed Comptroller General to
    conduct a study to examine fair market rentals under subsec. (c)(1)
    of this section which are wholly contained within such market areas
    and submit a report to Congress not later than 18 months after Nov.
    28, 1990, regarding findings and conclusions.

                        STUDY OF UTILIZATION RATES                    
      Section 559 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to conduct a study of reasons for success or
    failure, within appropriate cities and localities, in utilizing
    assistance made available for such areas under this section and
    submit a report to Congress concerning this study not later than
    the expiration of the 1-year period beginning on Nov. 28, 1990.

     FEASIBILITY STUDY REGARDING INDIAN TRIBE ELIGIBILITY FOR VOUCHER
                                  PROGRAM
      Section 561 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to conduct a study to determine feasibility and
    effectiveness of entering into contracts with Indian housing
    authorities to provide voucher assistance under subsec. (o) of this
    section and submit a report to Congress regarding findings and
    conclusions not later than the expiration of the 1-year period
    beginning on Nov. 28, 1990.

                  STUDY OF PRIVATE NONPROFIT INITIATIVES              
      Section 582 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to conduct a study to examine how private
    nonprofit initiatives to provide low-income housing development in
    local communities across the country have succeeded, with
    particular emphasis on how Federal housing policy and tax
    structures can best promote local private nonprofit organizations
    involvement in low-income housing development, and submit a report
    to Congress regarding findings not later than 1-year after Nov. 28,
    1990.

     PREFERENCES FOR NATIVE HAWAIIANS ON HAWAIIAN HOMELANDS UNDER HUD
                                 PROGRAMS
      Section 958 of Pub. L. 101-625, which directed Secretary of
    Housing and Urban Development to provide preferences for housing
    assistance programs to native Hawaiians in subsec. (a), described
    assistance programs available in subsec. (b), authorized Secretary
    to provide mortgage insurance in certain situations in subsec. (c),
    and defined pertinent terms in subsec. (d), was repealed by Pub. L.
    102-238, Sec. 5(b), Dec. 17, 1991, 105 Stat. 1910.

    AUTHORIZATION FOR PROVISION OF ASSISTANCE TO PROGRAMS ADMINISTERED
               BY STATE OF HAWAII UNDER ACT OF JULY 9, 1921
      Section 962 of Pub. L. 101-625, as added by Pub. L. 102-238, Sec.
    5(a), Dec. 17, 1991, 105 Stat. 1909, provided that:
      "(a) Assistance Authorized. - The Secretary of Housing and Urban
    Development is authorized to provide assistance, under any housing
    assistance program administered by the Secretary, to the State of
    Hawaii, for use by the State in meeting the responsibilities with
    which it has been charged under the provisions of the Act of July
    9, 1921 (42 Stat. 108) [formerly 48 U.S.C. 691-718].
      "(b) Mortgage Insurance. - 
        "(1) In general. - Notwithstanding any other provision or
      limitation of this Act [see Short Title note set out under
      section 12701 of this title], or the National Housing Act [12
      U.S.C. 1701 et seq.], including those relating to marketability
      of title, the Secretary of Housing and Urban Development may
      provide mortgage insurance covering any property on lands set
      aside under the provisions of the Act of July 9, 1921 (42 Stat.
      108), upon which there is or will be located a multifamily
      residence, for which the Department of the Hawaiian Home Lands of
      the State of Hawaii - 
          "(A) is the mortgagor or co-mortgagor;
          "(B) guarantees in writing to reimburse the Secretary for any
        mortgage insurance claim paid in connection with such property;
        or
          "(C) offers other security that is acceptable to the
        Secretary, subject to appropriate conditions prescribed by the
        Secretary.
        "(2) Sale on default. - In the event of a default on a mortgage
      insured pursuant to paragraph (1), the Department of Hawaiian
      Home Lands of the State of Hawaii may sell the insured property
      or housing unit to an eligible beneficiary as defined in the Act
      of July 9, 1921 (42 Stat. 108)."

      ANNUAL ADJUSTMENT FACTORS FOR RENTS UNDER LOWER-INCOME HOUSING
                            ASSISTANCE PROGRAM
      Section 801(a), (b), (d), (e) of Pub. L. 101-235 provided that:
      "(a) Effect of Prior Comparability Studies. - 
        "(1) In general. - In any case in which, in implementing
      section 8(c)(2) of the United States Housing Act of 1937 [42
      U.S.C. 1437f(c)(2)] - 
          "(A) the use of comparability studies by the Secretary of
        Housing and Urban Development or the appropriate State agency
        as an independent limitation on the amount of rental
        adjustments resulting from the application of an annual
        adjustment factor under such section has resulted in the
        reduction of the maximum monthly rent for units covered by the
        contract or the failure to increase such contract rent to the
        full amount otherwise permitted under the annual adjustment
        factor, or
          "(B) an assistance contract requires a project owner to make
        a request before becoming eligible for a rent adjustment under
        the annual adjustment factor and the project owner certifies
        that such a request was not made because of anticipated
        negative adjustment to the project rents,
      for fiscal year 1980, and annually thereafter until regulations
      implementing this section take effect, rental adjustments shall
      be calculated as an amount equal to the annual adjustment factor
      multiplied by a figure equal to the contract rent minus the
      amount of contract rent attributable to debt service. Upon the
      request of the project owner, the Secretary shall pay to the
      project owner the amount, if any, by which the total rental
      adjustment calculated under the preceding sentence exceeds the
      total adjustments the Secretary or appropriate State agency
      actually approved, except that solely for purposes of calculating
      retroactive payments under this subsection, in no event shall any
      project owner be paid an amount less than 30 percent of a figure
      equal to the aggregate of the annual adjustment factor multiplied
      by the full contract rent for each year on or after fiscal year
      1980, minus the sum of the rental payments the Secretary or
      appropriate State agency actually approved for those years. The
      method provided by this subsection shall be the exclusive method
      by which retroactive payments, whether or not requested, may be
      made for projects subject to this subsection for the period from
      fiscal year 1980 until the regulations issued under subsection
      (e) take effect. For purposes of this paragraph, 'debt service'
      shall include interest, principal, and mortgage insurance premium
      if any.
        "(2) Applicability. - 
          "(A) In general. - Subsection (a) shall apply with respect to
        any use of comparability studies referred to in such subsection
        occurring before the effective date of the regulations issued
        under subsection (e).
          "(B) Final litigation. - Subsection (a) shall not apply to
        any project with respect to which litigation regarding the
        authority of the Secretary to use comparability studies to
        limit rental adjustments under section 8(c)(2) of the United
        States Housing Act of 1937 has resulted in a judgment before
        the effective date of this Act [Dec. 15, 1989] that is final
        and not appealable (including any settlement agreement).
      "(b) 3-Year Payments. - The Secretary shall provide the amounts
    under subsection (a) over the 3-year period beginning on the
    effective date of the regulations issued under subsection (e). The
    Secretary shall provide the payments authorized under subsection
    (a) only to the extent approved in subsequent appropriations Acts.
    There are authorized to be appropriated such sums as may be
    necessary for this purpose.
      "(d) Determination of Contract Rent. - (1) The Secretary shall
    upon the request of the project owner, make a one-time
    determination of the contract rent for each project owner referred
    to in subsection (a). The contract rent shall be the greater of the
    contract rent - 
        "(A) currently approved by the Secretary under section 8(c)(2)
      of the United States Housing Act of 1937 [42 U.S.C. 1437f(c)(2)],
      or
        "(B) calculated in accordance with the first sentence of
      subsection (a)(1).
      "(2) All adjustments in contract rents under section 8(c)(2) of
    the United States Housing Act of 1937, including adjustments
    involving projects referred to in subsection (a), that occur
    beginning with the first anniversary date of the contract after the
    regulations issued under subsection (e) take effect shall be made
    in accordance with the annual adjustment and comparability
    provisions of sections 8(c)(2)(A) and 8(c)(2)(C) of such Act,
    respectively, using the one-time contract rent determination under
    paragraph (1).
      "(e) Regulations. - The Secretary shall issue regulations to
    carry out this section and the amendments made by this section
    [amending this section], including the amendments made by
    subsection (c) with regard to annual adjustment factors and
    comparability studies. The Secretary shall issue such regulations
    not later than the expiration of the 180-day period beginning on
    the date of the enactment of this Act [Dec. 15, 1989]."

       PROHIBITION OF REDUCTION OF CONTRACT RENTS; BUDGET COMPLIANCE   
      Section 1004(b) of Pub. L. 100-628 provided that: "During fiscal
    year 1989, the amendment made by subsection (a)(2) [amending this
    section] shall be effective only to such extent or in such amounts
    as are provided in appropriation Acts. For purposes of section 202
    of the Balanced Budget and Emergency Deficit Control Reaffirmation
    Act of 1987 (Public Law 100-119) [2 U.S.C. 909], to the extent that
    this section has the effect of transferring an outlay of the United
    States from one fiscal year to an adjacent fiscal year, the
    transfer is a necessary (but secondary) result of a significant
    policy change."

     PROJECT-BASED LOWER-INCOME HOUSING ASSISTANCE; IMPLEMENTATION OF
                                  PROGRAM
      Section 1005(a) of Pub. L. 100-628 provided that: "To implement
    the amendment made by section 148 of the Housing and Community
    Development Act of 1987 [Pub. L. 100-242, see 1988 Amendment note
    above], the Secretary of Housing and Urban Development shall issue
    regulations that take effect not later than 30 days after the date
    of the enactment of this Act [Nov. 7, 1988]. Until the effective
    date of the regulations, the Secretary of Housing and Urban
    Development shall consider each application from a public housing
    agency to attach a contract for assistance payments to a structure,
    in accordance with the amendment made by such section 148 to
    section 8(d)(2) of the United States Housing Act of 1937 (42 U.S.C.
    1437f(d)(2)), and shall promptly approve such application if it
    meets the requirements of such section 8(d)(2)."

    PROJECT-BASED LOWER-INCOME HOUSING ASSISTANCE IN NEW CONSTRUCTION;
                     REGULATIONS IMPLEMENTING PROGRAM
      Section 1005(b)(2) of Pub. L. 100-628 provided that: "To
    implement the amendments made by this subsection [amending this
    section], the Secretary of Housing and Urban Development shall
    issue regulations that take effect not later than 90 days after the
    date of the enactment of this Act [Nov. 7, 1988]."

     USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL FINANCE
                                 PROJECTS
      Section 1012 of Pub. L. 100-628, as amended by Pub. L. 102-273,
    Sec. 2(a), (c)(1), Apr. 21, 1992, 106 Stat. 113; Pub. L. 102-550,
    title I, Sec. 163, Oct. 28, 1992, 106 Stat. 3722, provided that:
      "(a) Definition of Qualified Project. - For purposes of this
    section, the term 'qualified project' means any State financed
    project or local government or local housing agency financed
    project, that - 
        "(1) was - 
          "(A) provided a financial adjustment factor under section 8
        of the United States Housing Act of 1937 [42 U.S.C. 1437f]; or
          "(B) constructed or substantially rehabilitated pursuant to
        assistance provided under a contract under section 8(b)(2) of
        the United States Housing Act of 1937 (as in effect on
        September 30, 1983) entered into during any of calendar years
        1979 through 1984; and
        "(2) is being refinanced.
      "(b) Availability of Funds. - The Secretary shall make available
    to the State housing finance agency in the State in which a
    qualified project is located, or the local government or local
    housing agency initiating the refinancing of the qualified project,
    as applicable, an amount equal to 50 percent of the amounts
    recaptured from the project (as determined by the Secretary on a
    project-by-project basis). Notwithstanding any other provision of
    law, such amounts shall be used only for providing decent, safe,
    and sanitary housing affordable for very low-income families and
    persons.
      "(c) Applicability and Budget Compliance. - 
        "(1) Retroactivity. - This section shall apply to refinancings
      of projects for which settlement occurred or occurs before, on,
      or after the date of the enactment of the Housing and Community
      Development Act of 1992 [Oct. 28, 1992], subject to the
      provisions of paragraph (2).
        "(2) Budget compliance. - This section shall apply only to the
      extent or in such amounts as are provided in appropriation Acts."
      [Section 2(b) of Pub. L. 102-273 provided that: "The amendments
    made by subsection (a) [amending section 1012 of Pub. L. 100-628,
    set out above] shall apply to any refinancing of a local government
    or local housing agency financed project approved by the Secretary
    of Housing and Urban Development for which settlement occurred
    after January 1, 1992."]

           PUBLIC HOUSING COMPREHENSIVE TRANSITION DEMONSTRATION       
      Section 126 of Pub. L. 100-242, which directed Secretary of
    Housing and Urban Development to carry out program in 11 public
    housing agencies to demonstrate effectiveness of providing services
    to ensure transition of public housing residents to private
    housing, set forth requirements of program, and required interim
    report to Congress not later than 2 years after Feb. 5, 1988, and
    final report not later than 60 days after termination of program 7
    years after such date, was repealed by Pub. L. 105-276, title V,
    Sec. 582(a)(8), Oct. 21, 1998, 112 Stat. 2644.

    NONDISCRIMINATION AGAINST SECTION 8 CERTIFICATE HOLDERS AND VOUCHER
                                  HOLDERS
      Section 183(c) of Pub. L. 100-242, which prohibited owner of
    subsidized project to refuse to lease dwelling unit to holder of
    certificate of eligibility or voucher under this section, where
    proximate cause of refusal was status of prospective tenant as
    holder of such certificate or voucher, was repealed by Pub. L. 105-
    276, title V, Sec. 582(a)(2), Oct. 21, 1998, 112 Stat. 2643.

    WITHDRAWAL BY OWNERS, DEVELOPERS, AND SPONSORS FROM PROGRAMS UNDER
     THIS SECTION; SURVEY AND DETERMINATION OF NUMBER; NOTIFICATION OF
    RENT INCREASES; REPORT TO CONGRESS; REGULATIONS TO PREVENT CONFLICT
      OF INTEREST ON THE PART OF FEDERAL, STATE, AND LOCAL OFFICIALS;
           RECOVERY OF LEGAL EXPENSES; CONTENTS OF ANNUAL REPORT
      Section 326(b)-(d) of Pub. L. 97-35, as amended by Pub. L. 102-
    550, title I, Sec. 129(a), Oct. 28, 1992, 106 Stat. 3711; Pub. L.
    105-276, title V, Sec. 582(a)(4), Oct. 21, 1998, 112 Stat. 2643,
    provided that:
      "(b)[(1) Repealed. Pub. L. 105-276, title V, Sec. 582(a)(4), Oct.
    21, 1998, 112 Stat. 2643.]
      "(2) Not later than one year after the date of the enactment of
    this Act [Aug. 13, 1981], the Secretary shall transmit to the
    Congress a report indicating alternative methods which may be
    utilized for recapturing the cost to the Federal Government of
    front-end investment in those units which are removed from the
    section 8 program.
      "[(c) Repealed. Pub. L. 105-276, title V, Sec. 582(a)(4), Oct.
    21, 1998, 112 Stat. 2643.]
      "(d) Rental Assistance Fraud Recoveries. - 
        "(1) Authority to retain recovered amounts. - The Secretary of
      Housing and Urban Development shall permit public housing
      agencies administering the housing assistance payments program
      under section 8 of the United States Housing Act of 1937 [42
      U.S.C. 1437f] to retain, out of amounts obtained by the agencies
      from tenants that are due as a result of fraud and abuse, an
      amount (determined in accordance with regulations issued by the
      Secretary) equal to the greater of - 
          "(A) 50 percent of the amount actually collected, or
          "(B) the actual, reasonable, and necessary expenses related
        to the collection, including costs of investigation, legal
        fees, and collection agency fees.
        "(2) Use. - Amounts retained by an agency shall be made
      available for use in support of the affected program or project,
      in accordance with regulations issued by the Secretary. Where the
      Secretary is the principal party initiating or sustaining an
      action to recover amounts from families or owners, the provisions
      of this section shall not apply.
        "(3) Recovery. - Amounts may be recovered under this paragraph -
       
          "(A) by an agency through a lawsuit (including settlement of
        the lawsuit) brought by the agency or through court-ordered
        restitution pursuant to a criminal proceeding resulting from an
        agency's investigation where the agency seeks prosecution of a
        family or where an agency seeks prosecution of an owner; or
          "(B) through administrative repayment agreements with a
        family or owner entered into as a result of an administrative
        grievance procedure conducted by an impartial decisionmaker in
        accordance with section 6(k) of the United States Housing Act
        of 1937 [42 U.S.C. 1437d(k)]."
      [Section 129(b) of Pub. L. 102-550, provided that: "Subsection
    (a) [amending section 326(d) of Pub. L. 97-35, set out above] shall
    apply with respect to actions by public housing agencies initiated
    on or after the date of the enactment of this Act [Oct. 28, 1992]."

     STUDY BY SECRETARY CONCERNING FEASIBILITY OF MINIMUM RENT PAYMENT
                               REQUIREMENTS
      Section 212 of Pub. L. 96-153 directed the Secretary of Housing
    and Urban Development to conduct a study of the feasibility and
    financial desirability of requiring minimum rent payments from
    tenants in low-income housing assisted under this chapter, and to
    submit a report to the Congress containing the findings and
    conclusions of such study not later than ten days after the Budget
    for fiscal year 1981 is transmitted pursuant to section 11 of
    former Title 31, Money and Finance, and directed the Secretary of
    Housing and Urban Development to conduct a study to provide
    detailed comparisons between the rents paid by tenants occupying
    low-income housing assisted under this chapter and the rents paid
    by tenants at the same income level who are not in assisted housing
    and to transmit a report on such study to the Congress not later
    than Mar. 1, 1980.

       STUDY OF ALTERNATIVE MEANS OF ENCOURAGING THE DEVELOPMENT OF
                                  HOUSING
      Section 208 of Pub. L. 95-557 directed that Secretary of Housing
    and Urban Development conduct a study for purpose of examining
    alternative means of encouraging development of housing to be
    assisted under this section for occupancy by large families which
    reside in areas with a low-vacancy rate in rental housing and
    report to Congress no later than one year after Oct. 31, 1978, for
    purpose of providing legislative recommendations with respect to
    this study.

        TAXATION OF INTEREST PAID ON OBLIGATIONS SECURED BY INSURED
                   MORTGAGE AND ISSUED BY PUBLIC AGENCY
      Section 319(b) of Pub. L. 93-383, as amended by Pub. L. 99-514,
    Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "With respect
    to any obligation secured by a mortgage which is insured under
    section 221(d)(3) of the National Housing Act [section 1715l(d)(3)
    of Title 12, Banks and Banking] and issued by a public agency as
    mortgagor in connection with the financing of a project assisted
    under section 8 of the United States Housing Act of 1937 [this
    section], the interest paid on such obligation shall be included in
    gross income for purposes of chapter 1 of the Internal Revenue Code
    of 1986 [formerly I.R.C. 1954] [chapter 1 of Title 26, Internal
    Revenue Code]."

        RENTAL OR INCOME CONTRIBUTIONS; USE OF SPECIAL SCHEDULES OF
        REQUIRED PAYMENTS FOR PARTICIPANTS IN MUTUAL HELP PROJECTS
                         CONTRIBUTING LABOR, ETC.
      Section 203 of Pub. L. 93-383 provided that: "The rental or
    income contribution provisions of the United States Housing Act of
    1937 [sections 1437 to 1437j of this title], as amended by section
    201 of this Act, shall not preclude the use of special schedules of
    required payments as approved by the Secretary for participants in
    mutual help housing projects who contribute labor, land, or
    materials to the development of such projects."

-FOOTNOTE-               

    (!1) So in original. "Notwithstanding" probably should not be
         capitalized.

    (!2) So in original. The period probably should be a semicolon.

    (!3) So in original. The comma probably should follow "to".

    (!4) So in original. The period probably should not appear.

    (!5) So in original. Probably should be section "671".

    (!6) So in original. No opening parenthesis was enacted.

               

    (!7) So in original. There probably should be no heading or
         capitalization of "Notwithstanding".

    (!8) So in original. The period probably should be a semicolon.

    (!9) So in original. A comma probably should follow "assistance
         to".

    (!10) So in original. The period probably should not appear.

               

    (!11) So in original. Probably should be followed by a period.

    (!12) So in original. Probably should be "limits".

    (!13) See References in Text note below.

    (!14) See References in Text note below.

    (!15) So in original. Probably should be "(d)(1)(B)(ii),".

    (!16) So in original. The comma probably should not appear.


-End-



-CITE-
    42 USC Sec. 1437g                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437g. Public housing Capital and Operating Funds

-STATUTE-
    (a) Merger into Capital Fund
      Except as otherwise provided in the Quality Housing and Work
    Responsibility Act of 1998, any assistance made available for
    public housing under section 1437l of this title before October 1,
    1999, shall be merged into the Capital Fund established under
    subsection (d) of this section.
    (b) Merger into Operating Fund
      Except as otherwise provided in the Quality Housing and Work
    Responsibility Act of 1998, any assistance made available for
    public housing under this section before October 1, 1999, shall be
    merged into the Operating Fund established under subsection (e) of
    this section.
    (c) Allocation amount
      (1) In general
        For fiscal year 2000 and each fiscal year thereafter, the
      Secretary shall allocate amounts in the Capital Fund and
      Operating Funds (!1) for assistance for public housing agencies
      eligible for such assistance. The Secretary shall determine the
      amount of the allocation for each eligible agency, which shall
      be, for any fiscal year beginning after the effective date of the
      formulas described in subsections (d)(2) and (e)(2) of this
      section - 

          (A) for assistance from the Capital Fund, the amount
        determined for the agency under the formula under subsection
        (d)(2) of this section; and
          (B) for assistance from the Operating Fund, the amount
        determined for the agency under the formula under subsection
        (e)(2) of this section.
      (2) Funding
        There are authorized to be appropriated for assistance for
      public housing agencies under this section the following amounts:
        (A) Capital Fund
          For allocations of assistance from the Capital Fund,
        $3,000,000,000 for fiscal year 1999, and such sums as may be
        necessary for fiscal years 2000, 2001, 2002, and 2003.
        (B) Operating Fund
          For allocations of assistance from the Operating Fund,
        $2,900,000,000 for fiscal year 1999, and such sums as may be
        necessary for each of fiscal years 2000, 2001, 2002, and 2003.
    (d) Capital Fund
      (1) In general
        The Secretary shall establish a Capital Fund for the purpose of
      making assistance available to public housing agencies to carry
      out capital and management activities, including - 
          (A) the development, financing, and modernization of public
        housing projects, including the redesign, reconstruction, and
        reconfiguration of public housing sites and buildings
        (including accessibility improvements) and the development of
        mixed-finance projects;
          (B) vacancy reduction;
          (C) addressing deferred maintenance needs and the replacement
        of obsolete utility systems and dwelling equipment;
          (D) planned code compliance;
          (E) management improvements, including the establishment and
        initial operation of computer centers in and around public
        housing through a Neighborhood Networks initiative, for the
        purpose of enhancing the self-sufficiency, employability, and
        economic self-reliance of public housing residents by providing
        them with onsite computer access and training resources;
          (F) demolition and replacement;
          (G) resident relocation;
          (H) capital expenditures to facilitate programs to improve
        the empowerment and economic self-sufficiency of public housing
        residents and to improve resident participation;
          (I) capital expenditures to improve the security and safety
        of residents;
          (J) homeownership activities, including programs under
        section 1437z-4 of this title;
          (K) improvement of energy and water-use efficiency by
        installing fixtures and fittings that conform to the American
        Society of Mechanical Engineers/American National Standards
        Institute standards A112.19.2-1998 and A112.18.1-2000, or any
        revision thereto, applicable at the time of installation, and
        by increasing energy efficiency and water conservation by such
        other means as the Secretary determines are appropriate; and
          (L) integrated utility management and capital planning to
        maximize energy conservation and efficiency measures.
      (2) Formula
        The Secretary shall develop a formula for determining the
      amount of assistance provided to public housing agencies from the
      Capital Fund for a fiscal year, which shall include a mechanism
      to reward performance. The formula may take into account such
      factors as - 
          (A) the number of public housing dwelling units owned,
        assisted, or operated by the public housing agency, the
        characteristics and locations of the projects, and the
        characteristics of the families served and to be served
        (including the incomes of the families);
          (B) the need of the public housing agency to carry out
        rehabilitation and modernization activities, replacement
        housing, and reconstruction, construction, and demolition
        activities related to public housing dwelling units owned,
        assisted, or operated by the public housing agency, including
        backlog and projected future needs of the agency;
          (C) the cost of constructing and rehabilitating property in
        the area;
          (D) the need of the public housing agency to carry out
        activities that provide a safe and secure environment in public
        housing units owned, assisted, or operated by the public
        housing agency;
          (E) any record by the public housing agency of exemplary
        performance in the operation of public housing, as indicated by
        the system of performance indicators established pursuant to
        section 1437d(j) of this title; and
          (F) any other factors that the Secretary determines to be
        appropriate.
      (3) Conditions on use for development and modernization
        (A) Development
          Except as otherwise provided in this chapter, any public
        housing developed using amounts provided under this subsection,
        or under section 1437l of this title as in effect before the
        effective date under section 503(a) of the Quality Housing and
        Work Responsibility Act of 1998, shall be operated under the
        terms and conditions applicable to public housing during the 40-
        year period that begins on the date on which the project (or
        stage of the project) becomes available for occupancy.
        (B) Modernization
          Except as otherwise provided in this chapter, any public
        housing or portion thereof that is modernized using amounts
        provided under this subsection or under section 1437l of this
        title (as in effect before the effective date under section
        503(a) of the Quality Housing and Work Responsibility Act of
        1998) shall be maintained and operated under the terms and
        conditions applicable to public housing during the 20-year
        period that begins on the latest date on which modernization is
        completed.
        (C) Applicability of latest expiration date
          Public housing subject to this paragraph or to any other
        provision of law mandating the operation of the housing as
        public housing or under the terms and conditions applicable to
        public housing for a specified length of time, shall be
        maintained and operated as required until the latest such
        expiration date.
    (e) Operating Fund
      (1) In general
        The Secretary shall establish an Operating Fund for the purpose
      of making assistance available to public housing agencies for the
      operation and management of public housing, including - 
          (A) procedures and systems to maintain and ensure the
        efficient management and operation of public housing units
        (including amounts sufficient to pay for the reasonable costs
        of review by an independent auditor of the documentation or
        other information maintained pursuant to section 1437d(j)(6) of
        this title by a public housing agency or resident management
        corporation to substantiate the performance of that agency or
        corporation);
          (B) activities to ensure a program of routine preventative
        maintenance;
          (C) anticrime and antidrug activities, including the costs of
        providing adequate security for public housing residents,
        including above-baseline police service agreements;
          (D) activities related to the provision of services,
        including service coordinators for elderly persons or persons
        with disabilities;
          (E) activities to provide for management and participation in
        the management and policymaking of public housing by public
        housing residents;
          (F) the costs of insurance;
          (G) the energy costs associated with public housing units,
        with an emphasis on energy conservation;
          (H) the costs of administering a public housing work program
        under section 1437j of this title, including the costs of any
        related insurance needs;
          (I) the costs of repaying, together with rent contributions,
        debt incurred to finance the rehabilitation and development of
        public housing units, which shall be subject to such reasonable
        requirements as the Secretary may establish;
          (J) the costs associated with the operation and management of
        mixed finance projects, to the extent appropriate; and
          (K) the costs of operating computer centers in public housing
        through a Neighborhood Networks initiative described in
        subsection (d)(1)(E) of this section, and of activities related
        to that initiative.
      (2) Formula
        (A) In general
          The Secretary shall establish a formula for determining the
        amount of assistance provided to public housing agencies from
        the Operating Fund for a fiscal year. The formula may take into
        account - 
            (i) standards for the costs of operating and reasonable
          projections of income, taking into account the
          characteristics and locations of the public housing projects
          and characteristics of the families served and to be served
          (including the incomes of the families), or the costs of
          providing comparable services as determined in accordance
          with criteria or a formula representing the operations of a
          prototype well-managed public housing project;
            (ii) the number of public housing dwelling units owned,
          assisted, or operated by the public housing agency;
            (iii) the number of public housing dwelling units owned,
          assisted, or operated by the public housing agency that are
          chronically vacant and the amount of assistance appropriate
          for those units;
            (iv) to the extent quantifiable, the extent to which the
          public housing agency provides programs and activities
          designed to promote the economic self-sufficiency and
          management skills of public housing residents;
            (v) the need of the public housing agency to carry out anti-
          crime and anti-drug activities, including providing adequate
          security for public housing residents;
            (vi) the amount of public housing rental income foregone by
          the public housing agency as a result of escrow savings
          accounts under section 1437u(d)(2) of this title for families
          participating in a family self-sufficiency program of the
          agency under such section 1437u of this title; and
            (vii) any other factors that the Secretary determines to be
          appropriate.
        (B) Incentive to increase certain rental income
          The formula shall provide an incentive to encourage public
        housing agencies to facilitate increases in earned income by
        families in occupancy. Any such incentive shall provide that
        the agency shall benefit from increases in such rental income
        and that such amounts accruing to the agency pursuant to such
        benefit may be used only for low-income housing or to benefit
        the residents of the public housing agency.
        (C) Treatment of savings
          (i) In general
            The treatment of utility and waste management costs under
          the formula shall provide that a public housing agency shall
          receive the full financial benefit from any reduction in the
          cost of utilities or waste management resulting from any
          contract with a third party to undertake energy conservation
          improvements in one or more of its public housing projects.
          (ii) Third party contracts
            Contracts described in clause (i) may include contracts for
          equipment conversions to less costly utility sources,
          projects with resident-paid utilities, and adjustments to
          frozen base year consumption, including systems repaired to
          meet applicable building and safety codes and adjustments for
          occupancy rates increased by rehabilitation.
          (iii) Term of contract
            The total term of a contract described in clause (i) shall
          not exceed 20 years to allow longer payback periods for
          retrofits, including windows, heating system replacements,
          wall insulation, site-based generation, advanced energy
          savings technologies, including renewable energy generation,
          and other such retrofits.
      (3) Condition on use
        No portion of any public housing project operated using amounts
      provided under this subsection, or under this section as in
      effect before the effective date under section 503(a) of the
      Quality Housing and Work Responsibility Act of 1998, may be
      disposed of before the expiration of the 10-year period beginning
      upon the conclusion of the fiscal year for which such amounts
      were provided, except as otherwise provided in this chapter.
    (f) Negotiated rulemaking procedure
      The formulas under subsections (d)(2) and (e)(2) of this section
    shall be developed according to procedures for issuance of
    regulations under the negotiated rulemaking procedure under
    subchapter III of chapter 5 of title 5.
    (g) Limitations on use of funds
      (1) Flexibility for Capital Fund amounts
        Of any amounts appropriated for fiscal year 2000 or any fiscal
      year thereafter that are allocated for fiscal year 2000 or any
      fiscal year thereafter from the Capital Fund for any public
      housing agency, the agency may use not more than 20 percent for
      activities that are eligible under subsection (e) of this section
      for assistance with amounts from the Operating Fund, but only if
      the public housing agency plan for the agency provides for such
      use.
      (2) Full flexibility for small PHAs
        Of any amounts allocated for any fiscal year for any public
      housing agency that owns or operates less than 250 public housing
      dwelling units, is not designated pursuant to section 1437d(j)(2)
      of this title as a troubled public housing agency, and (in the
      determination of the Secretary) is operating and maintaining its
      public housing in a safe, clean, and healthy condition, the
      agency may use any such amounts for any eligible activities under
      subsections (d)(1) and (e)(1) of this section, regardless of the
      fund from which the amounts were allocated and provided. This
      subsection shall take effect on October 21, 1998.
      (3) Limitation on new construction
        (A) In general
          Except as provided in subparagraphs (B) and (C), a public
        housing agency may not use any of the amounts allocated for the
        agency from the Capital Fund or Operating Fund for the purpose
        of constructing any public housing unit, if such construction
        would result in a net increase from the number of public
        housing units owned, assisted, or operated by the public
        housing agency on October 1, 1999, including any public housing
        units demolished as part of any revitalization effort.
        (B) Exception regarding use of assistance
          A public housing agency may use amounts allocated for the
        agency from the Capital Fund or Operating Fund for the
        construction and operation of housing units that are available
        and affordable to low-income families in excess of the
        limitations on new construction set forth in subparagraph (A),
        but the formulas established under subsections (d)(2) and
        (e)(2) of this section shall not provide additional funding for
        the specific purpose of allowing construction and operation of
        housing in excess of those limitations (except to the extent
        provided in subparagraph (C)).
        (C) Exception regarding formulas
          Subject to reasonable limitations set by the Secretary, the
        formulas established under subsections (d)(2) and (e)(2) of
        this section may provide additional funding for the operation
        and modernization costs (but not the initial development costs)
        of housing in excess of amounts otherwise permitted under this
        paragraph, and such amounts may be so used, if - 
            (i) such units are part of a mixed-finance project or
          otherwise leverage significant additional private or public
          investment; and
            (ii) the estimated cost of the useful life of the project
          is less than the estimated cost of providing tenant-based
          assistance under section 1437f(o) of this title for the same
          period of time.
    (h) Technical assistance
      To the extent amounts are provided in advance in appropriations
    Acts, the Secretary may make grants or enter into contracts or
    cooperative agreements in accordance with this subsection for
    purposes of providing, either directly or indirectly - 
        (1) technical assistance to public housing agencies, resident
      councils, resident organizations, and resident management
      corporations, including assistance relating to monitoring and
      inspections;
        (2) training for public housing agency employees and residents;
        (3) data collection and analysis;
        (4) training, technical assistance, and education to public
      housing agencies that are - 
          (A) at risk of being designated as troubled under section
        1437d(j) of this title, to assist such agencies from being so
        designated; and
          (B) designated as troubled under section 1437d(j) of this
        title, to assist such agencies in achieving the removal of that
        designation;

        (5) contract expertise;
        (6) training and technical assistance to assist in the
      oversight and management of public housing or tenant-based
      assistance;
        (7) clearinghouse services in furtherance of the goals and
      activities of this subsection; and
        (8) assistance in connection with the establishment and
      operation of computer centers in public housing through a
      Neighborhood Networks initiative described in subsection
      (d)(1)(E) of this section.

    As used in this subsection, the terms "training" and "technical
    assistance" shall include training or technical assistance and the
    cost of necessary travel for participants in such training or
    technical assistance, by or to officials and employees of the
    Department and of public housing agencies, and to residents and to
    other eligible grantees.
    (i) Eligibility of units acquired from proceeds of sales under
      demolition or disposition plan
      If a public housing agency uses proceeds from the sale of units
    under a homeownership program in accordance with section 1437z-4 of
    this title to acquire additional units to be sold to low-income
    families, the additional units shall be counted as public housing
    for purposes of determining the amount of the allocation to the
    agency under this section until sale by the agency, but in no case
    longer than 5 years.
    (j) Penalty for slow expenditure of capital funds
      (1) Obligation of amounts
        Except as provided in paragraph (4) and subject to paragraph
      (2), a public housing agency shall obligate any assistance
      received under this section not later than 24 months after, as
      applicable - 
          (A) the date on which the funds become available to the
        agency for obligation in the case of modernization; or
          (B) the date on which the agency accumulates adequate funds
        to undertake modernization, substantial rehabilitation, or new
        construction of units.
      (2) Extension of time period for obligation
        The Secretary - 
          (A) may, extend the time period under paragraph (1) for a
        public housing agency, for such period as the Secretary
        determines to be necessary, if the Secretary determines that
        the failure of the agency to obligate assistance in a timely
        manner is attributable to - 
            (i) litigation;
            (ii) obtaining approvals of the Federal Government or a
          State or local government;
            (iii) complying with environmental assessment and abatement
          requirements;
            (iv) relocating residents;
            (v) an event beyond the control of the public housing
          agency; or
            (vi) any other reason established by the Secretary by
          notice published in the Federal Register;

          (B) shall disregard the requirements of paragraph (1) with
        respect to any unobligated amounts made available to a public
        housing agency, to the extent that the total of such amounts
        does not exceed 10 percent of the original amount made
        available to the public housing agency; and
          (C) may, with the prior approval of the Secretary, extend the
        time period under paragraph (1), for an additional period not
        to exceed 12 months, based on - 
            (i) the size of the public housing agency;
            (ii) the complexity of capital program of the public
          housing agency;
            (iii) any limitation on the ability of the public housing
          agency to obligate the amounts allocated for the agency from
          the Capital Fund in a timely manner as a result of State or
          local law; or
            (iv) such other factors as the Secretary determines to be
          relevant.
      (3) Effect of failure to comply
        (A) Prohibition of new assistance
          A public housing agency shall not be awarded assistance under
        this section for any month during any fiscal year in which the
        public housing agency has funds unobligated in violation of
        paragraph (1) or (2).
        (B) Withholding of assistance
          During any fiscal year described in subparagraph (A), the
        Secretary shall withhold all assistance that would otherwise be
        provided to the public housing agency. If the public housing
        agency cures its failure to comply during the year, it shall be
        provided with the share attributable to the months remaining in
        the year.
        (C) Redistribution
          The total amount of any funds not provided public housing
        agencies by operation of this paragraph shall be allocated for
        agencies determined under section 1437d(j) of this title to be
        high-performing.
      (4) Exception to obligation requirements
        (A) In general
          Subject to subparagraph (B), if the Secretary has consented,
        before the effective date under section 503(a) of the Quality
        Housing and Work Responsibility Act of 1998, to an obligation
        period for any agency longer than provided under paragraph (1),
        a public housing agency that obligates its funds before the
        expiration of that period shall not be considered to be in
        violation of paragraph (1).
        (B) Prior fiscal years
          Notwithstanding subparagraph (A), any funds appropriated to a
        public housing agency for fiscal year 1997 or prior fiscal
        years shall be fully obligated by the public housing agency not
        later than September 30, 1999.
      (5) Expenditure of amounts
        (A) In general
          A public housing agency shall spend any assistance received
        under this section not later than 4 years (plus the period of
        any extension approved by the Secretary under paragraph (2))
        after the date on which funds become available to the agency
        for obligation.
        (B) Enforcement
          The Secretary shall enforce the requirement of subparagraph
        (A) through default remedies up to and including withdrawal of
        the funding.
      (6) Right of recapture
        Any obligation entered into by a public housing agency shall be
      subject to the right of the Secretary to recapture the obligated
      amounts for violation by the public housing agency of the
      requirements of this subsection.
    (k) Emergency reserve and use of amounts
      (1) Set-asides
        In each fiscal year after fiscal year 1999, the Secretary shall
      set aside, for use in accordance with this subsection, not more
      than 2 percent of the total amount made available to carry out
      this section for such fiscal year. In addition to amounts set
      aside under the preceding sentence, in each fiscal year the
      Secretary may set from the total amount made available to carry
      out this section for such fiscal year not more than $20,000,000
      for the Operation Safe Home program administered by the Office of
      the Inspector General of the Department of Housing and Urban
      Development, for law enforcement efforts to combat violent crime
      on or near the premises of public and federally assisted housing.
      (2) Use of funds
        Amounts set aside under paragraph (1) shall be available to the
      Secretary for use for assistance, as provided in paragraph (3),
      in connection with - 
          (A) emergencies and other disasters; and
          (C) (!2) housing needs resulting from any settlement of
        litigation; and

      (3) Eligible uses
        In carrying out this subsection, the Secretary may use amounts
      set aside under this subsection to provide - 
          (A) assistance for any eligible use under the Operating Fund
        or the Capital Fund established by this section; or
          (B) tenant-based assistance in accordance with section 1437f
        of this title.
      (4) Limitation
        With respect to any fiscal year, the Secretary may carry over
      not more than a total of $25,000,000 in unobligated amounts set
      aside under this subsection for use in connection with the
      activities described in paragraph (2) during the succeeding
      fiscal year.
      (5) Publication
        The Secretary shall publish the use of any amounts allocated
      under this subsection relating to emergencies (other than
      disasters and housing needs resulting from any settlement of
      litigation) in the Federal Register.
    (l) Treatment of nonrental income
      A public housing agency that receives income from nonrental
    sources (as determined by the Secretary) may retain and use such
    amounts without any decrease in the amounts received under this
    section from the Capital or Operating Fund. Any such nonrental
    amounts retained shall be used only for low-income housing or to
    benefit the residents assisted by the public housing agency.
    (m) Provision of only capital or operating assistance
      (1) Authority
        In appropriate circumstances, as determined by the Secretary, a
      public housing agency may commit capital assistance only, or
      operating assistance only, for public housing units, which
      assistance shall be subject to all of the requirements applicable
      to public housing except as otherwise provided in this
      subsection.
      (2) Exemptions
        In the case of any public housing unit assisted pursuant to the
      authority under paragraph (1), the Secretary may, by regulation,
      reduce the period under subsection (d)(3) or (e)(3) of this
      section, as applicable, during which such units must be operated
      under requirements applicable to public housing. In cases in
      which there is commitment of operating assistance but no
      commitment of capital assistance, the Secretary may make section
      8 [42 U.S.C. 1437f] requirements applicable, as appropriate, by
      regulation.
    (n) Treatment of public housing
      (1) Repealed. Pub. L. 108-7, div. K, title II, Sec. 212(a), Feb.
        20, 2003, 117 Stat. 503
      (2) Reduction of asthma incidence
        Notwithstanding any other provision of this section, the New
      York City Housing Authority may, in its sole discretion, from
      amounts provided from the Operating and Capital Funds, or from
      amounts provided for public housing before amounts are made
      available from such Funds, use not more than exceeding (!3)
      $500,000 per year for the purpose of initiating, expanding or
      continuing a program for the reduction of the incidence of asthma
      among residents. The Secretary shall consult with the
      Administrator of the Environmental Protection Agency and the
      Secretary of Health and Human Services to identify and consider
      sources of funding for the reduction of the incidence of asthma
      among recipients of assistance under this subchapter.

      (3) Services for elderly residents
        Notwithstanding any other provision of this section, the New
      York City Housing Authority may, in its sole discretion, from
      amounts provided from the Operating and Capital Funds, or from
      amounts provided for public housing before the amounts are made
      available from such Funds, use not more than $600,000 per year
      for the purpose of developing a comprehensive plan to address the
      need for services for elderly residents. Such plan may be
      developed by a partnership created by such Housing Authority and
      may include the creation of a model project for assisted living
      at one or more developments. The model project may provide for
      contracting with private parties for the delivery of services.
      (4) Effective date
        This subsection shall apply to fiscal year 1999 and each fiscal
      year thereafter.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 9, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 666; amended Pub. L.
    94-375, Sec. 2(c), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95-24,
    title I, Sec. 101(b), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95-128,
    title II, Sec. 201(f), Oct. 12, 1977, 91 Stat. 1129; Pub. L. 95-
    557, title II, Sec. 206(g), Oct. 31, 1978, 92 Stat. 2093; Pub. L.
    96-153, title II, Secs. 201(c), 207, 211(a), Dec. 21, 1979, 93
    Stat. 1106, 1109, 1110; Pub. L. 96-399, title II, Sec. 201(b), (d),
    Oct. 8, 1980, 94 Stat. 1625; Pub. L. 97-35, title III, Secs.
    321(d), 322(c), Aug. 13, 1981, 95 Stat. 399, 402; Pub. L. 98-181,
    title II, Sec. 212, Nov. 30, 1983, 97 Stat. 1184; Pub. L. 99-272,
    title III, Sec. 3003, Apr. 7, 1986, 100 Stat. 102; Pub. L. 100-242,
    title I, Secs. 112(b)(4), 118, Feb. 5, 1988, 101 Stat. 1824, 1828;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 101-625, title V, Secs. 507, 572(2), title VIII,
    Sec. 802(p), Nov. 28, 1990, 104 Stat. 4186, 4236, 4317; Pub. L. 102-
    550, title I, Sec. 114, title VI, Sec. 673, Oct. 28, 1992, 106
    Stat. 3691, 3827; Pub. L. 103-233, title III, Sec. 304, Apr. 11,
    1994, 108 Stat. 370; Pub. L. 104-134, title I, Sec. 101(e) [title
    II, Sec. 218], Apr. 26, 1996, 110 Stat. 1321-257, 1321-290;
    renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110
    Stat. 1327; Pub. L. 104-330, title V, Sec. 501(b)(5), Oct. 26,
    1996, 110 Stat. 4042; Pub. L. 105-276, title II, Sec. 210, title V,
    Sec. 519(a), Oct. 21, 1998, 112 Stat. 2485, 2551; Pub. L. 106-377,
    Sec. 1(a)(1) [title II, Sec. 214(a)], Oct. 27, 2000, 114 Stat.
    1441, 1441A-27; Pub. L. 108-7, div. K, title II, Sec. 212(a), Feb.
    20, 2003, 117 Stat. 503; Pub. L. 109-58, title I, Sec. 151, Aug. 8,
    2005, 119 Stat. 648.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Quality Housing and Work Responsibility Act of 1998, referred
    to in subsecs. (a) and (b), is title V of Pub. L. 105-276, Oct. 21,
    1998, 112 Stat. 2518. Section 503(a) of the Act is set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title. Section 519(e) of the Act is set out as a note below. For
    complete classification of this Act to the Code, see Short Title of
    1998 Amendment note set out under section 1437 of this title and
    Tables.
      Section 1437l of this title, referred to in subsecs. (a) and
    (d)(3)(A), (B), was repealed by Pub. L. 105-276, title V, Sec.
    522(a), Oct. 21, 1998, 112 Stat. 2564.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 9 of act Sept. 1, 1937, ch. 896, 50 Stat. 891, as
    amended, authorized loans for low-rent housing and slum clearance
    projects and was classified to section 1409 of this title, prior to
    the general revision of this chapter by Pub. L. 93-383. Similar
    provisions are contained in section 1437b of this title.

                                AMENDMENTS                            
      2005 - Subsec. (d)(1)(K), (L). Pub. L. 109-58, Sec. 151(1), added
    subpars. (K) and (L).
      Subsec. (e)(2)(C). Pub. L. 109-58, Sec. 151(2), designated
    existing provisions as cl. (i), inserted heading, and added cls.
    (ii) and (iii).
      2003 - Subsec. (n)(1). Pub. L. 108-7 struck out par. (1) which
    related to treatment of certain covered locally developed public
    housing units as eligible public housing units.
      2000 - Subsec. (d)(1)(E). Pub. L. 106-377, Sec. 1(a)(1) [title
    II, Sec. 214(a)(1)], inserted before semicolon ", including the
    establishment and initial operation of computer centers in and
    around public housing through a Neighborhood Networks initiative,
    for the purpose of enhancing the self-sufficiency, employability,
    and economic self-reliance of public housing residents by providing
    them with onsite computer access and training resources".
      Subsec. (e)(1)(K). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    214(a)(2)], added subpar. (K).
      Subsec. (h)(8). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    214(a)(3)], added par. (8).
      1998 - Pub. L. 105-276, Sec. 519(a), amended section generally,
    substituting present provisions for provisions which had: in
    subsec. (a), authorized annual contributions for operation of low-
    income housing, and provided for determination of the amounts and
    use of those contributions, contract authorization, standards for
    payments, necessity of contribution contracts, performance funding
    system, and audits; in subsec. (b), set forth limitation on amount
    of aggregate rentals paid by families residing in dwelling units
    receiving annual contributions; in subsec. (c), authorized
    appropriations for fiscal years 1993 and 1994; in subsec. (d),
    required distribution of remaining appropriated funds to projects
    incurring excessive costs; and in subsec. (e), set forth time of
    payment of assistance to public housing agency.
      Subsec. (a)(3)(A). Pub. L. 105-276, Sec. 210, inserted after
    third sentence "Notwithstanding the preceding sentences, the
    Secretary may revise the performance funding system in a manner
    that takes into account equity among public housing agencies and
    that includes appropriate incentives for sound management." and, in
    last sentence, inserted ", or any substantial change under the
    preceding sentence," after "vacant public housing units".
      1996 - Subsec. (a)(1)(A). Pub. L. 104-330, in second sentence,
    inserted "and" after comma at end of cl. (i), struck out ", and"
    after "reserve funds" in cl. (ii), and struck out cl. (iii) which
    read as follows: "with respect to housing projects developed under
    the Indian and Alaskan Native housing program assisted under this
    chapter, to provide funds (in addition to any other operating costs
    contributions approved by the Secretary under this section) as
    determined by the Secretary to be required to cover the
    administrative costs to an Indian housing authority during the
    development period of a project approved pursuant to section 1437c
    of this title and until such time as the project is occupied".
      Subsec. (a)(3)(B)(i). Pub. L. 104-134 struck out "for a period
    not to exceed 6 years" after "with the public housing agency".
      1994 - Subsec. (a)(4). Pub. L. 103-233 added par. (4).
      1992 - Subsec. (a)(1)(B). Pub. L. 102-550, Sec. 673, designated
    existing provisions as cl. (i), redesignated former cls. (i) and
    (ii) as subcls. (I) and (II), respectively, substituted "this
    clause" for "this subparagraph", inserted reference to section 8011
    of this title and a period after "section 8013 of this title", and
    added cl. (ii).
      Subsec. (a)(3)(A). Pub. L. 102-550, Sec. 114(b), inserted at end
    "Notwithstanding sections 583(a) and 585(a) of title 5 (as added by
    section 3(a) of the Negotiated Rulemaking Act of 1990), any
    proposed regulation providing for amendment, alteration,
    adjustment, or other change to the performance funding system
    relating to vacant public housing units shall be issued pursuant to
    a negotiated rulemaking procedure under subchapter IV of chapter 5
    of such title (as added by section 3(a) of the Negotiated
    Rulemaking Act of 1990), and the Secretary shall establish a
    negotiated rulemaking committee for development of any such
    proposed regulations."
      Subsec. (a)(3)(B)(i). Pub. L. 102-550, Sec. 114(c), inserted
    before semicolon at end ", and in subsequent years, if the energy
    savings are cost-effective, the Secretary may continue the sharing
    arrangement with the public housing agency for a period not to
    exceed 6 years".
      Subsec. (c). Pub. L. 102-550, Sec. 114(a), amended subsec. (c)
    generally. Prior to amendment, subsec. (c) read as follows: "There
    are authorized to be appropriated for purposes of providing annual
    contributions under this section $2,000,000,000 for fiscal year
    1991 and $2,086,000,000 in fiscal year 1992."
      1990 - Subsec. (a)(1). Pub. L. 101-625, Sec. 572(2), substituted
    "low-income housing" for "lower income housing" wherever appearing.
      Pub. L. 101-625, Sec. 507(b)(1), designated existing provisions
    as subpar. (A), redesignated former cls. (A) to (C) as cls. (i) to
    (iii), respectively, and added subpar. (B).
      Subsec. (a)(2). Pub. L. 101-625, Sec. 572(2), substituted "low-
    income housing" for "lower income housing" wherever appearing.
      Subsec. (a)(3)(A). Pub. L. 101-625, Sec. 507(b)(2), inserted
    after first comma "(except for payments under paragraph (1)(B))".
      Subsec. (a)(3)(B)(v). Pub. L. 101-625, Sec. 802(p), added cl.
    (v).
      Subsec. (c). Pub. L. 101-625, Sec. 507(a), amended subsec. (c)
    generally. Prior to amendment, subsec. (c) read as follows: "There
    are authorized to be appropriated for purposes of providing annual
    contributions under this section $1,500,000,000 for fiscal year
    1988 and $1,530,000,000 for fiscal year 1989."
      Subsec. (d). Pub. L. 101-625, Sec. 572(2), substituted "low-
    income housing" for "lower income housing".
      1988 - Subsec. (a)(1). Pub. L. 100-242, Sec. 118(a)(1), struck
    out last sentence directing Secretary to establish standards for
    costs of operation and reasonable projections of income, for
    purposes of making payments under this section.
      Pub. L. 100-242, Sec. 118(d), inserted at end "If the Secretary
    determines that a public housing agency has failed to take the
    actions required to submit an acceptable audit on a timely basis in
    accordance with chapter 75 of title 31, the Secretary may arrange
    for, and pay the costs of, the audit. In such circumstances, the
    Secretary may withhold, from assistance otherwise payable to the
    agency under this section, amounts sufficient to pay for the
    reasonable costs of conducting an acceptable audit, including, when
    appropriate, the reasonable costs of accounting services necessary
    to place the agency's books and records in auditable condition."
      Subsec. (a)(2). Pub. L. 100-242, Sec. 112(b)(4), substituted "one
    developed pursuant to a contributions contract authorized by
    section 1437c" for "being assisted by an annual contributions
    contract authorized by section 1437c(c)" and "any such" for "any
    such annual".
      Subsec. (a)(3). Pub. L. 100-242, Sec. 118(a)(2), added par. (3).
      Subsec. (c). Pub. L. 100-242, Sec. 118(b), amended subsec. (c)
    generally, substituting provisions authorizing appropriations under
    this section for fiscal years 1988 and 1989 for provisions
    authorizing appropriations for the period beginning on or after
    July 1, 1975, through the period beginning on or after Oct. 1,
    1985.
      Subsec. (e). Pub. L. 100-242, Sec. 118(c), added subsec. (e).
      1986 - Subsec. (c). Pub. L. 99-272 struck out "and by" after
    "1983," and inserted ", and not to exceed $1,279,000,000 on or
    after October 1, 1985" after "1984".
      1983 - Subsec. (c). Pub. L. 98-181 substituted "October 1, 1980,
    and" for "October 1, 1980," and authorized appropriations of not to
    exceed $1,500,000,000 on or after Oct. 1, 1983, and of such sums as
    may be necessary on or after Oct. 1, 1984.
      1981 - Subsec. (a). Pub. L. 97-35, Sec. 322(c), substituted
    reference to lower income for reference to low-income wherever
    appearing.
      Subsec. (c). Pub. L. 97-35, Sec. 321(d), inserted provisions
    respecting authorization on or after Oct. 1, 1981.
      Subsec. (d). Pub. L. 97-35, Sec. 322(c), substituted reference to
    lower income for reference to low-income.
      1980 - Subsec. (a)(1)(C). Pub. L. 96-399, Sec. 201(d), added cl.
    (C).
      Subsec. (c). Pub. L. 96-399, Sec. 201(b), authorized
    appropriation of not to exceed $826,000,000 on or after Oct. 1,
    1980.
      1979 - Subsec. (a). Pub. L. 96-153, Sec. 211(a), designated
    existing provisions as par. (1) and cls. (1) and (2) thereof as (A)
    and (B), inserted provisions that such contract shall provide that
    no disposition of low-income housing project, with respect to which
    the contract is entered into, shall occur during and for ten years
    after the period when contributions were made pursuant to such
    contract unless approved by the Secretary, and added par. (2).
      Subsec. (c). Pub. L. 96-153, Sec. 201(c), authorized
    appropriation for annual contributions of $741,500,000 on or after
    Oct. 1, 1979.
      Subsec. (d). Pub. L. 96-153, Sec. 207, added subsec. (d).
      1978 - Subsec. (c). Pub. L. 95-557 inserted "and not to exceed
    $729,000,000 on or after October 1, 1978".
      1977 - Subsec. (c). Pub. L. 95-128 authorized appropriation for
    annual contributions of $685,000,000 on or after Oct. 1, 1977.
      Pub. L. 95-24 substituted "and not to exceed $595,600,000 on or
    after October 1, 1976" for "and not to exceed $576,000,000 on or
    after October 1, 1976".
      1976 - Subsec. (c). Pub. L. 94-375 substituted provision
    authorizing appropriations for annual contributions not to exceed
    $535,000,000 on or after July 1, 1975, not to exceed $80,000,000 on
    or after July 1, 1976, and not to exceed $576,000,000 on or after
    October 1, 1976 for provision which authorized annual contributions
    for contracts entered into on or after July 1, 1974 of not more
    than $500,000,000 per annum, which amount was to be increased by
    $60,000,000 on July 1, 1975.

                     EFFECTIVE DATE OF 2003 AMENDMENT                 
      Pub. L. 108-7, div. K, title II, Sec. 212(c), Feb. 20, 2003, 117
    Stat. 504, provided that: "The amendment made by subsection (a)
    [amending this section] shall be deemed to have taken effect on
    October 1, 1998."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.
      Pub. L. 105-276, title V, Sec. 519(e)-(g), Oct. 21, 1998, 112
    Stat. 2561, 2562, provided that:
      "(e) Transitional Provision of Assistance. - 
        "(1) In general. - Subject to paragraph (2), before the
      implementation of formulas pursuant to sections 9(d)(2) and
      9(e)(2) of the United States Housing Act of 1937 [42 U.S.C.
      1437g(d)(2), (e)(2)] (as amended by subsection (a) of this
      section), the Secretary shall provide that each public housing
      agency shall receive funding under sections 9 and 14 of the
      United States Housing Act of 1937 [42 U.S.C. 1437g, 1437l], as
      those sections existed immediately before the enactment of this
      Act [Oct. 21, 1998] (except that such sections shall be subject
      to any amendments to such sections that may be contained in title
      II of this Act [see Tables for classification]).
        "(2) Qualifications. - Before the implementation of formulas
      pursuant to sections 9(d)(2) and 9(e)(2) of the United States
      Housing Act of 1937 [42 U.S.C. 1437g(d)(2), (e)(2)] (as amended
      by subsection (a) of this section) - 
          "(A) if a public housing agency establishes a rental amount
        that is based on a ceiling rent established pursuant to
        subsection (d)(1) of this section [42 U.S.C. 1437a note], the
        Secretary shall take into account any reduction of the per unit
        dwelling rental income of the public housing agency resulting
        from the use of that rental amount in calculating the
        contributions for the public housing agency for the operation
        of the public housing under section 9 of the United States
        Housing Act of 1937 [42 U.S.C. 1437g];
          "(B) if a public housing agency establishes a rental amount
        that is based on an adjustment to income under section
        3(b)(5)(G) of the United States Housing Act of 1937 [42 U.S.C.
        1437a(b)(5)(G)] (as in effect immediately before the enactment
        of this Act [Oct. 21, 1998]), the Secretary shall not take into
        account any reduction of or any increase in the per unit
        dwelling rental income of the public housing agency resulting
        from the use of that rental amount in calculating the
        contributions for the public housing agency for the operation
        of the public housing under section 9 of the United States
        Housing Act of 1937 [42 U.S.C. 1437g]; and
          "(C) if a public housing agency establishes a rental amount
        other than as provided under subparagraph (A) or (B) that is
        less than the greatest of the amounts determined under
        subparagraphs (A), (B), and (C) of section 3(a)(1) of the
        United States Housing Act of 1937 [42 U.S.C. 1437a(a)(1)(A),
        (B), (C)], the Secretary shall not take into account any
        reduction of the per unit dwelling rental income of the public
        housing agency resulting from the use of that rental amount in
        calculating the contributions for the public housing agency for
        the operation of the public housing under section 9 of the
        United States Housing Act of 1937 [42 U.S.C. 1437g].
      "(f) Effective Date of Operating Formula. - Notwithstanding the
    effective date under section 503(a) [42 U.S.C. 1437 note], the
    Secretary may extend the effective date of the formula under
    section 9(e)(2) of the United States Housing Act of 1937 [42 U.S.C.
    1437g(e)(2)] (as amended by subsection (a) of this section) for up
    to 6 months if such additional time is necessary to implement such
    formula.
      "(g) Effective Date. - Subsections (d) [42 U.S.C. 1437a note],
    (e), and (f) shall take effect upon the date of the enactment of
    this Act [Oct. 21, 1998]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by section 802(p) of Pub. L. 101-625 deemed enacted
    Nov. 5, 1990, see title II of Pub. L. 101-507, set out as a note
    under section 1701q of Title 12, Banks and Banking.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section
    206(h) of Pub. L. 95-557, set out as a note under section 1437c of
    this title.

                              EFFECTIVE DATE                          
      Section effective on such date or dates as the Secretary of
    Housing and Urban Development shall prescribe, but not later than
    eighteen months after Aug. 22, 1974, except that all of the
    provisions of subsec. (c) shall become effective on the same date,
    see section 201(b) of Pub. L. 93-383, set out as a note under
    section 1437 of this title.

                                REGULATIONS                            
      Pub. L. 108-199, div. G, title II, Sec. 222, Jan. 23, 2004, 118
    Stat. 398, provided that: "The Secretary of Housing and Urban
    Development shall conduct negotiated rulemaking with
    representatives from interested parties for purposes of any changes
    to the formula governing the Public Housing Operating Fund. A final
    rule shall be issued no later than July 1, 2004."
      Pub. L. 108-7, div. K, title II, Feb. 20, 2003, 117 Stat. 487,
    provided in part: "That the Secretary shall issue final regulations
    to carry out section 9(j) of the United States Housing Act of 1937
    (42 U.S.C. 1437g(j)), not later than August 1, 2003".

     PAYMENTS FOR COSTS OF OPERATION AND MANAGEMENT OF PUBLIC HOUSING
                                PROHIBITED
      Pub. L. 108-447, div. I, title II, Dec. 8, 2004, 118 Stat. 3298,
    provided in part: "That for fiscal year 2006 and all fiscal years
    thereafter, the Secretary shall provide assistance under this
    heading [Public Housing Operating Fund] to public housing agencies
    on a calendar year basis: Provided further, That, in fiscal year
    2005 and all fiscal years hereafter, no amounts under this heading
    in any appropriations Act may be used for payments to public
    housing agencies for the costs of operation and management of
    public housing for any year prior to the current year of such Act".
      Similar provisions were contained in the following appropriation
    acts:
      Pub. L. 109-115, div. A, title III, Nov. 30, 2005, 119 Stat.
    2444.
      Pub. L. 108-199, div. G, title II, Jan. 23, 2004, 118 Stat. 375.
      Pub. L. 108-7, div. K, title II, Feb. 20, 2003, 117 Stat. 488.

         FUNDING OF COVERED LOCALLY DEVELOPED PUBLIC HOUSING UNITS
                                PROHIBITED
      Pub. L. 108-7, div. K, title II, Sec. 207, Feb. 20, 2003, 117
    Stat. 502, provided that: "Notwithstanding any other provision of
    law, no funds in this Act or in any other Act in any fiscal year,
    including all future and prior fiscal years, may be used hereafter
    by the Secretary of Housing and Urban Development to provide any
    assistance or other funds for housing units defined in section 9(n)
    of the United States Housing Act of 1937 [42 U.S.C. 1437g(n)] (as
    in effect immediately before the enactment of this Act [Feb. 20,
    2003]) as 'covered locally developed public housing units'. The
    States of New York and Massachusetts shall reimburse any funds
    already made available under any appropriations Act for these units
    to the Secretary of Housing and Urban Development for reallocation
    to public housing agencies: Provided, That, if either State fails
    to make such reimbursement within 12 months, the Secretary shall
    recapture such funds through reductions from the amounts allocated
    to each State under section 106 of the Housing and Community
    Development Act of 1974 [42 U.S.C. 5306]."

     APPLICABILITY OF PENALTIES FOR SLOW EXPENDITURE OF CAPITAL FUNDS 
      Pub. L. 107-73, title II, Nov. 26, 2001, 115 Stat. 660, provided
    in part: "That, hereafter, notwithstanding any other provision of
    law or any failure of the Secretary of Housing and Urban
    Development to issue regulations to carry out section 9(j) of the
    United States Housing Act of 1937 (42 U.S.C. 1437g(j)), such
    section is deemed to have taken effect on October 1, 1998, and,
    except as otherwise provided in this heading ["public housing
    capital fund (including transfer of funds)"], shall apply to all
    assistance made available under this same heading on or after such
    date".

      COOLING DEGREE DAY ADJUSTMENT UNDER PERFORMANCE FUNDING SYSTEM  
      Section 508 of Pub. L. 101-625 provided that: "In determining the
    Performance Funding System utility subsidy for public housing
    agencies pursuant to section 9 of the United States Housing Act of
    1937 [42 U.S.C. 1437g], the Secretary of Housing and Urban
    Development shall include a cooling degree day adjustment factor.
    The method by which a cooling degree day adjustment factor is
    included shall be identical to the method by which the heating
    degree day adjustment factor is included."

                      ENERGY EFFICIENCY DEMONSTRATION                  
      Section 523 of Pub. L. 101-625, which directed Secretary of
    Housing and Urban Development to carry out demonstration program to
    encourage use of private energy service companies and demonstrate
    opportunities for energy cost reduction through energy services
    contracts, and to report findings and recommendations to Congress
    as soon as practicable after expiration of 1-year period beginning
    on Nov. 28, 1990, was repealed by Pub. L. 105-276, title V, Sec.
    582(a)(11), Oct. 21, 1998, 112 Stat. 2644.

-FOOTNOTE-
    (!1) So in original. Probably should be "Fund".

    (!2) So in original. No subpar. (B) has been enacted.

    (!3) So in original.


-End-



-CITE-
    42 USC Sec. 1437h                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437h. Implementation of provisions by Secretary

-STATUTE-
    (a) Preparation and submission of annual budget program;
      maintenance of accounts; audit by Government Accountability
      Office
      In the performance of, and with respect to, the functions,
    powers, and duties vested in him by this chapter, the Secretary,
    notwithstanding the provisions of any other law, shall - 
        (1) prepare annually and submit a budget program as provided
      for wholly owned Government corporations by chapter 91 of title
      31; and
        (2) maintain an integral set of accounts which may be audited
      by the Government Accountability Office as provided by chapter 91
      of title 31.
    (b) Availability of receipts and assets
      All receipts and assets of the Secretary under this chapter shall
    be available for the purposes of this chapter until expended.
    (c) Federal Reserve banks to act as depositories, custodians and
      fiscal agents; reimbursement for services
      The Federal Reserve banks are authorized and directed to act as
    depositories, custodians, and fiscal agents for the Secretary in
    the general exercise of his powers under this chapter, and the
    Secretary may reimburse any such bank for its services in such
    manner as may be agreed upon.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 10, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 666; amended Pub. L.
    98-479, title II, Sec. 203(b)(2), Oct. 17, 1984, 98 Stat. 2229;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 104-316, title I, Sec. 122(k), Oct. 19, 1996,
    110 Stat. 3837; Pub. L. 108-271, Sec. 8(b), July 7, 2004, 118 Stat.
    814.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 10 of act Sept. 1, 1937, ch. 896, 50 Stat. 891,
    as amended, authorized annual contributions in assistance of low
    rentals for housing projects and was classified to section 1410 of
    this title, prior to the general revision of this chapter by Pub.
    L. 93-383. Similar provisions are contained in section 1437c of
    this title.

                                AMENDMENTS                            
      2004 - Subsec. (a)(2). Pub. L. 108-271 substituted "Government
    Accountability Office" for "General Accounting Office".
      1996 - Subsec. (a)(2). Pub. L. 104-316 substituted "maintain an
    integral set of accounts which may be audited by the General
    Accounting Office as provided by chapter 91 of title 31." for
    "maintain an integral set of accounts which shall be audited
    annually by the General Accounting Office in accordance with the
    principles and procedures applicable to commercial transactions as
    provided by chapter 91 of title 31, and no other audit shall be
    required."
      1984 - Subsec. (a)(1), (2). Pub. L. 98-479 substituted "chapter
    91 of title 31" for "the Government Corporations Control Act, as
    amended".

-End-



-CITE-
    42 USC Sec. 1437i                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437i. Obligations of public housing agencies; contestability;
      full faith and credit of United States pledged as security; tax
      exemption

-STATUTE-
      (a) Obligations issued by a public housing agency in connection
    with low-income housing projects which (1) are secured (A) by a
    pledge of a loan under any agreement between such public housing
    agency and the Secretary, or (B) by a pledge of annual
    contributions under an annual contributions contract between such
    public housing agency and the Secretary, or (C) by a pledge of both
    annual contributions under an annual contributions contract and a
    loan under an agreement between such public housing agency and the
    Secretary, and (2) bear, or are accompanied by, a certificate of
    the Secretary that such obligations are so secured, shall be
    incontestable in the hands of a bearer and the full faith and
    credit of the United States is pledged to the payment of all
    amounts agreed to be paid by the Secretary as security for such
    obligations.
      (b) Except as provided in section 1437c(g) of this title,
    obligations, including interest thereon, issued by public housing
    agencies in connection with low-income housing projects shall be
    exempt from all taxation now or hereafter imposed by the United
    States whether paid by such agencies or by the Secretary. The
    income derived by such agencies from such projects shall be exempt
    from all taxation now or hereafter imposed by the United States.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 11, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L.
    97-35, title III, Sec. 322(c), Aug. 13, 1981, 95 Stat. 402;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 101-625, title V, Sec. 572(2), Nov. 28, 1990,
    104 Stat. 4236.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 11 of act Sept. 1, 1937, ch. 896, 50 Stat. 893,
    as amended, authorized capital grants to public housing agencies in
    assistance of low rentals and was classified to section 1411 of
    this title, prior to the general revision of this chapter by Pub.
    L. 93-383.

                                AMENDMENTS                            
      1990 - Pub. L. 101-625 substituted "low-income housing" for
    "lower income housing" wherever appearing.
      1981 - Pub. L. 97-35 substituted reference to lower income for
    reference to low-income wherever appearing.

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

-End-



-CITE-
    42 USC Sec. 1437j                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437j. Labor standards and community service requirement

-STATUTE-
    (a) Payment of wages prevailing in locality
      Any contract for loans, contributions, sale, or lease pursuant to
    this chapter shall contain a provision requiring that not less than
    the wages prevailing in the locality, as determined or adopted
    (subsequent to a determination under applicable State or local law)
    by the Secretary, shall be paid to all architects, technical
    engineers, draftsmen, and technicians employed in the development,
    and all maintenance laborers and mechanics employed in the
    operation, of the low-income housing project involved; and shall
    also contain a provision that not less than the wages prevailing in
    the locality, as predetermined by the Secretary of Labor pursuant
    to sections 3141-3144, 3146, and 3147 of title 40, shall be paid to
    all laborers and mechanics employed in the development of the
    project involved (including a project with nine or more units
    assisted under section 1437f of this title, where the public
    housing agency or the Secretary and the builder or sponsor enter
    into agreement for such use before construction or rehabilitation
    is commenced), and the Secretary shall require certification as to
    compliance with the provisions of this section prior to making any
    payment under such contract.
    (b) Exception for volunteers
      Subsection (a) of this section and the provisions relating to
    wages (pursuant to subsection (a) of this section) in any contract
    for loans, annual contributions, sale, or lease pursuant to this
    chapter, shall not apply to any individual that - 
        (1) performs services for which the individual volunteered;
        (2)(A) does not receive compensation for such services; or
        (B) is paid expenses, reasonable benefits, or a nominal fee for
      such services; and
        (3) is not otherwise employed at any time in the construction
      work.
    (c) Community service requirement
      (1) In general
        Except as provided in paragraph (2) and notwithstanding any
      other provision of law, each adult resident of a public housing
      project shall - 
          (A) contribute 8 hours per month of community service (not
        including political activities) within the community in which
        that adult resides; or
          (B) participate in an economic self-sufficiency program (as
        that term is defined in subsection (g) of this section) for 8
        hours per month.
      (2) Exemptions
        The Secretary shall provide an exemption from the applicability
      of paragraph (1) for any individual who - 
          (A) is 62 years of age or older;
          (B) is a blind or disabled individual, as defined under
        section 216(i)(1) or 1614 of the Social Security Act (42 U.S.C.
        416(i)(1); 1382c), and who is unable to comply with this
        section, or is a primary caretaker of such individual;
          (C) is engaged in a work activity (as such term is defined in
        section 407(d) of the Social Security Act (42 U.S.C. 607(d)),
        as in effect on and after July 1, 1997)); (!1)

          (D) meets the requirements for being exempted from having to
        engage in a work activity under the State program funded under
        part A of title IV of the Social Security Act (42 U.S.C. 601 et
        seq.) or under any other welfare program of the State in which
        the public housing agency is located, including a State-
        administered welfare-to-work program; or
          (E) is in a family receiving assistance under a State program
        funded under part A of title IV of the Social Security Act (42
        U.S.C. 601 et seq.) or under any other welfare program of the
        State in which the public housing agency is located, including
        a State-administered welfare-to-work program, and has not been
        found by the State or other administering entity to be in
        noncompliance with such program.
      (3) Annual determinations
        (A) Requirement
          For each public housing resident subject to the requirement
        under paragraph (1), the public housing agency shall, 30 days
        before the expiration of each lease term of the resident under
        section 1437d(l)(1) of this title, review and determine the
        compliance of the resident with the requirement under paragraph
        (1) of this subsection.
        (B) Due process
          Such determinations shall be made in accordance with the
        principles of due process and on a nondiscriminatory basis.
        (C) Noncompliance
          If an agency determines that a resident subject to the
        requirement under paragraph (1) has not complied with the
        requirement, the agency - 
            (i) shall notify the resident - 
              (I) of such noncompliance;
              (II) that the determination of noncompliance is subject
            to the administrative grievance procedure under subsection
            (k); (!2) and

              (III) that, unless the resident enters into an agreement
            under clause (ii) of this subparagraph, the resident's
            lease will not be renewed; and

            (ii) may not renew or extend the resident's lease upon
          expiration of the lease term and shall take such action as is
          necessary to terminate the tenancy of the household, unless
          the agency enters into an agreement, before the expiration of
          the lease term, with the resident providing for the resident
          to cure any noncompliance with the requirement under
          paragraph (1), by participating in an economic self-
          sufficiency program for or contributing to community service
          as many additional hours as the resident needs to comply in
          the aggregate with such requirement over the 12-month term of
          the lease.
      (4) Ineligibility for occupancy for noncompliance
        A public housing agency may not renew or extend any lease, or
      provide any new lease, for a dwelling unit in public housing for
      any household that includes an adult member who was subject to
      the requirement under paragraph (1) and failed to comply with the
      requirement.
      (5) Inclusion in plan
        Each public housing agency shall include in its public housing
      agency plan a detailed description of the manner in which the
      agency intends to implement and administer this subsection.
      (6) Geographic location
        The requirement under paragraph (1) may include community
      service or participation in an economic self-sufficiency program
      performed at a location not owned by the public housing agency.
      (7) Prohibition against replacement of employees
        In carrying out this subsection, a public housing agency may
      not - 
          (A) substitute community service or participation in an
        economic self-sufficiency program, as described in paragraph
        (1), for work performed by a public housing employee; or
          (B) supplant a job at any location at which community work
        requirements are fulfilled.
      (8) Third-party coordinating
        A public housing agency may administer the community service
      requirement under this subsection directly, through a resident
      organization, or through a contractor having experience in
      administering volunteer-based community service programs within
      the service area of the public housing agency. The Secretary may
      establish qualifications for such organizations and contractors.
    (d) Treatment of income changes resulting from welfare program
      requirements
      (1) Covered family
        For purposes of this subsection, the term "covered family"
      means a family that (A) receives benefits for welfare or public
      assistance from a State or other public agency under a program
      for which the Federal, State, or local law relating to the
      program requires, as a condition of eligibility for assistance
      under the program, participation of a member of the family in an
      economic self-sufficiency program, and (B) resides in a public
      housing dwelling unit or is provided tenant-based assistance
      under section 1437f of this title.
      (2) Decreases in income for failure to comply
        (A) In general
          Notwithstanding the provisions of section 1437a(a) of this
        title (relating to family rental contributions) or paragraph
        (4) or (5) of section 1437a(b) of this title (relating to
        definition of income and adjusted income), if the welfare or
        public assistance benefits of a covered family are reduced
        under a Federal, State, or local law regarding such an
        assistance program because of any failure of any member of the
        family to comply with the conditions under the assistance
        program requiring participation in an economic self-sufficiency
        program or imposing a work activities requirement, the amount
        required to be paid by the family as a monthly contribution
        toward rent may not be decreased, during the period of the
        reduction, as a result of any decrease in the income of the
        family (to the extent that the decrease in income is a result
        of the benefits reduction).
        (B) No reduction based on time limit for assistance
          For purposes of this paragraph, a reduction in benefits as a
        result of the expiration of a lifetime time limit for a family
        receiving welfare or public assistance benefits shall not be
        considered to be a failure to comply with the conditions under
        the assistance program requiring participation in an economic
        self-sufficiency program or imposing a work activities
        requirement. This paragraph shall apply beginning on October
        21, 1998.
      (3) Effect of fraud
        Notwithstanding the provisions of section 1437a(a) of this
      title (relating to family rental contributions) or paragraph (4)
      or (5) of section 1437a(b) of this title (relating to definition
      of income and adjusted income), if the welfare or public
      assistance benefits of a covered family are reduced because of an
      act of fraud by a member of the family under the law or program,
      the amount required to be paid by the covered family as a monthly
      contribution toward rent may not be decreased, during the period
      of the reduction, as a result of any decrease in the income of
      the family (to the extent that the decrease in income is a result
      of the benefits reduction). This paragraph shall apply beginning
      on October 21, 1998.
      (4) Notice
        Paragraphs (2) and (3) shall not apply to any covered family
      before the public housing agency providing assistance under this
      chapter on behalf of the family obtains written notification from
      the relevant welfare or public assistance agency specifying that
      the family's benefits have been reduced because of noncompliance
      with economic self-sufficiency program or work activities
      requirements or fraud, and the level of such reduction.
      (5) Occupancy rights
        This subsection may not be construed to authorize any public
      housing agency to establish any time limit on tenancy in a public
      housing dwelling unit or on receipt of tenant-based assistance
      under section 1437f of this title.
      (6) Review
        Any covered family residing in public housing that is affected
      by the operation of this subsection shall have the right to
      review the determination under this subsection through the
      administrative grievance procedure established pursuant to
      section 1437d(k) of this title for the public housing agency.
      (7) Cooperation agreements for economic self-sufficiency
        activities
        (A) Requirement
          A public housing agency providing public housing dwelling
        units or tenant-based assistance under section 1437f of this
        title for covered families shall make its best efforts to enter
        into such cooperation agreements, with State, local, and other
        agencies providing assistance to covered families under welfare
        or public assistance programs, as may be necessary, to provide
        for such agencies to transfer information to facilitate
        administration of subsection (c) of this section and paragraphs
        (2), (3), and (4) of this subsection and other information
        regarding rents, income, and assistance that may assist a
        public housing agency or welfare or public assistance agency in
        carrying out its functions.
        (B) Contents
          A public housing agency shall seek to include in a
        cooperation agreement under this paragraph requirements and
        provisions designed to target assistance under welfare and
        public assistance programs to families residing in public
        housing projects and families receiving tenant-based assistance
        under section 1437f of this title, which may include providing
        for economic self-sufficiency services within such housing,
        providing for services designed to meet the unique employment-
        related needs of residents of such housing and recipients of
        such assistance, providing for placement of workfare positions
        on-site in such housing, and such other elements as may be
        appropriate.
        (C) Confidentiality
          This paragraph may not be construed to authorize any release
        of information prohibited by, or in contravention of, any other
        provision of Federal, State, or local law.
    (e) Lease provisions
      A public housing agency shall incorporate into leases under
    section 1437d(l) of this title and into agreements for the
    provision of tenant-based assistance under section 1437f of this
    title, provisions incorporating the conditions under subsection (d)
    of this section.
    (f) Treatment of income
      Notwithstanding any other provision of this section, in
    determining the income of a family who resides in public housing or
    receives tenant-based assistance under section 1437f of this title,
    a public housing agency shall consider any decrease in the income
    of a family that results from the reduction of any welfare or
    public assistance benefits received by the family under any
    Federal, State, or local law regarding a program for such
    assistance if the family (or a member thereof, as applicable) has
    complied with the conditions for receiving such assistance and is
    unable to obtain employment notwithstanding such compliance.
    (g) Definition
      For purposes of this section, the term "economic self-sufficiency
    program" means any program designed to encourage, assist, train, or
    facilitate the economic independence of participants and their
    families or to provide work for participants, including programs
    for job training, employment counseling, work placement, basic
    skills training, education, workfare, financial or household
    management, apprenticeship, or other activities as the Secretary
    may provide.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 12, as added Pub. L. 93-383,
    title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L.
    97-35, title III, Sec. 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L.
    100-242, title I, Sec. 112(b)(5), Feb. 5, 1988, 101 Stat. 1824;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 101-625, title V, Sec. 572(2), title IX, Sec.
    955(b), Nov. 28, 1990, 104 Stat. 4236, 4421; Pub. L. 105-276, title
    V, Sec. 512(a), Oct. 21, 1998, 112 Stat. 2539.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Social Security Act, referred to in subsec. (c)(2)(D), (E),
    is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of
    title IV of the Act is classified generally to part A (Sec. 601 et
    seq.) of subchapter IV of chapter 7 of this title. For complete
    classification of this Act to the Code, see section 1305 of this
    title and Tables.
      Subsection (k), referred to in subsec. (c)(3)(C)(i)(II), probably
    means section 1437d(k) of this title, which relates to
    administrative grievance procedures. This section does not contain
    a subsec. (k).

-COD-
                               CODIFICATION                           
      In subsec. (a), "sections 3141-3144, 3146, and 3147 of title 40"
    substituted for "the Davis-Bacon Act (49 Stat. 1011)" on authority
    of Pub. L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 Stat. 1303, the
    first section of which enacted Title 40, Public Buildings,
    Property, and Works.


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 12 of act Sept. 1, 1937, ch. 896, 50 Stat. 894,
    as amended, authorized the disposal of low-rent housing projects
    transferred to or acquired by the Authority and was classified to
    section 1412 of this title, prior to the general revision of this
    chapter by Pub. L. 93-383.

                                AMENDMENTS                            
      1998 - Pub. L. 105-276, Sec. 512(a)(1), inserted "and community
    service requirement" after "Labor standards" in section catchline.
      Subsecs. (c) to (g). Pub. L. 105-276, Sec. 512(a)(2), added
    subsecs. (c) to (g).
      1990 - Pub. L. 101-625, Sec. 955(b), designated existing
    provisions as subsec. (a) and added subsec. (b).
      Pub. L. 101-625, Sec. 572(2), substituted "low-income housing"
    for "lower income housing".
      1988 - Pub. L. 100-242 struck out "annual" before
    "contributions".
      1981 - Pub. L. 97-35 substituted reference to lower income for
    reference to low-income.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 955(d) of Pub. L. 101-625 provided that: "The amendments
    made by this section [amending this section, section 5310 of this
    title, and section 1701q of Title 12, Banks and Banking] shall
    apply to any volunteer services provided before, on, or after the
    date of the enactment of this Act [Nov. 28, 1990], except that such
    amendments may not be construed to require the repayment of any
    wages paid before the date of the enactment of this Act for
    services provided before such date."

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

-FOOTNOTE-               

    (!1) So in original. Probably should be only one closing
         parenthesis.

    (!2) See References in Text note below.


-End-



-CITE-
    42 USC Sec. 1437j-1                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437j-1. Repealed.

-MISC1-
    Sec. 1437j-1. Repealed. Pub. L. 105-276, title V, Sec. 582(a)(5),
      Oct. 21, 1998, 112 Stat. 2643.
      Section, Pub. L. 97-35, title III, Sec. 329A, Aug. 13, 1981, 95
    Stat. 409, related to payment for development managers of projects
    assisted under this chapter.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement the repeal before such date, and with savings provision,
    see section 503 of Pub. L. 105-276, set out as an Effective Date of
    1998 Amendment note under section 1437 of this title.

-End-



-CITE-
    42 USC Sec. 1437k                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437k. Consortia, joint ventures, affiliates, and subsidiaries
      of public housing agencies

-STATUTE-
    (a) Consortia
      (1) In general
        Any 2 or more public housing agencies may participate in a
      consortium for the purpose of administering any or all of the
      housing programs of those public housing agencies in accordance
      with this section.
      (2) Effect
        With respect to any consortium described in paragraph (1) - 
          (A) any assistance made available under this subchapter to
        each of the public housing agencies participating in the
        consortium shall be paid to the consortium; and
          (B) all planning and reporting requirements imposed upon each
        public housing agency participating in the consortium with
        respect to the programs operated by the consortium shall be
        consolidated.
      (3) Restrictions
        (A) Agreement
          Each consortium described in paragraph (1) shall be formed
        and operated in accordance with a consortium agreement, and
        shall be subject to the requirements of a joint public housing
        agency plan, which shall be submitted by the consortium in
        accordance with section 1437c-1 of this title.
        (B) Minimum requirements
          The Secretary shall specify minimum requirements relating to
        the formation and operation of consortia and the minimum
        contents of consortium agreements under this paragraph.
    (b) Joint ventures
      (1) In general
        Notwithstanding any other provision of law, a public housing
      agency, in accordance with the public housing agency plan, may - 
          (A) form and operate wholly owned or controlled subsidiaries
        (which may be nonprofit corporations) and other affiliates, any
        of which may be directed, managed, or controlled by the same
        persons who constitute the board of directors or similar
        governing body of the public housing agency, or who serve as
        employees or staff of the public housing agency; or
          (B) enter into joint ventures, partnerships, or other
        business arrangements with, or contract with, any person,
        organization, entity, or governmental unit - 
            (i) with respect to the administration of the programs of
          the public housing agency, including any program that is
          subject to this subchapter; or
            (ii) for the purpose of providing or arranging for the
          provision of supportive or social services.
      (2) Use and treatment of income
        Any income generated under paragraph (1) - 
          (A) shall be used for low-income housing or to benefit the
        residents assisted by the public housing agency; and
          (B) shall not result in any decrease in any amount provided
        to the public housing agency under this subchapter, except as
        otherwise provided under the formulas established under section
        1437g(d)(2) and 1437g(e)(2) of this title.
      (3) Audits
        The Comptroller General of the United States, the Secretary, or
      the Inspector General of the Department of Housing and Urban
      Development may conduct an audit of any activity undertaken under
      paragraph (1) at any time.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 13, as added Pub. L. 96-153,
    title II, Sec. 209, Dec. 21, 1979, 93 Stat. 1109; amended Pub. L.
    96-399, title II, Sec. 202(b), Oct. 8, 1980, 94 Stat. 1629;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681; Pub. L. 105-276, title V, Sec. 515, Oct. 21, 1998, 112
    Stat. 2549.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 13 of act Sept. 1, 1937, ch. 896, 50 Stat. 894,
    as amended, enumerated powers of the Authority and was classified
    to section 1413 of this title, prior to the general revision of
    this chapter by Pub. L. 93-383.

                                AMENDMENTS                            
      1998 - Pub. L. 105-276 amended section catchline and text of
    section generally. Prior to amendment, text read as follows: "The
    Secretary shall, to the maximum extent practicable, require that
    newly constructed and substantially rehabilitated projects assisted
    under this chapter with authority provided on or after October 1,
    1979, shall be equipped with heating and cooling systems selected
    on the basis of criteria which include a life-cycle cost analysis
    of such systems."
      1980 - Pub. L. 96-399 struck out subsec. (a) which related to
    consideration by the Secretary, in utilizing contract authority, of
    projects which will be modernized to a substantial extent with
    weatherization materials as defined in section 6862(9) of this
    title, and redesignated former subsec. (b) as entire section.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

               ENERGY EFFICIENT PUBLIC HOUSING DEMONSTRATION           
      Pub. L. 100-242, title I, Sec. 125, Feb. 5, 1988, 101 Stat. 1847,
    provided that:
      "(a) Establishment. - The Secretary of Housing and Urban
    Development shall establish a demonstration program through the
    assistance of an appropriate technology transfer organization that
    specializes in producing detailed energy-efficient designs and in
    conducting local and statewide, public participation tests for
    energy efficient, needs-oriented housing. The appropriate
    technology organization shall carry out the demonstration working
    through and with public housing agencies to build and test a
    variety of energy-efficient housing designs in 100 separate housing
    units in 4 different States that meet local lower income housing
    needs (including single parent, disabled, and elderly concerns)
    through a composite ranging from single to 12-plex units in the
    cluster approach on vacant lots and open areas.
      "(b) Report. - As soon as practicable following September 30,
    1988, the Secretary of Housing and Urban Development shall submit
    to the Congress a report setting forth the findings and
    recommendations of the Secretary as a result of the demonstration
    under this section.
      "(c) Funding. - Of the budget authority authorized to be provided
    for the development of public housing, there is authorized to be
    appropriated to carry out this section $4,700,000 for fiscal year
    1988."

-End-



-CITE-
    42 USC Sec. 1437l                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437l. Repealed.

-MISC1-
    Sec. 1437l. Repealed. Pub. L. 105-276, title V, Sec. 522(a), Oct.
      21, 1998, 112 Stat. 2564.
      Section, act Sept. 1, 1937, ch. 896, title I, Sec. 14, as added
    Pub. L. 96-399, title II, Sec. 202(a), Oct. 8, 1980, 94 Stat. 1625;
    amended Pub. L. 97-35, title III, Secs. 322(c), 329G, Aug. 13,
    1981, 95 Stat. 402, 410; Pub. L. 98-181, title II, Sec. 214(b),
    Nov. 30, 1983, 97 Stat. 1185; Pub. L. 98-479, title II, Sec.
    204(b)(2), Oct. 17, 1984, 98 Stat. 2233; Pub. L. 100-242, title I,
    Secs. 112(b)(6), 119(b)-(i), 120, Feb. 5, 1988, 101 Stat. 1824,
    1830-1837; renumbered title I, Pub. L. 100-358, Sec. 5, June 29,
    1988, 102 Stat. 681; Pub. L. 101-625, title IV, Sec. 414, title V,
    Secs. 509(a)-(g), 510, 572, Nov. 28, 1990, 104 Stat. 4160, 4187,
    4191-4193, 4236; Pub. L. 102-139, title II, Oct. 28, 1991, 105
    Stat. 757, 759; Pub. L. 102-550, title I, Secs. 111(b)(1), 115,
    title VI, Sec. 625(a)(3), Oct. 28, 1992, 106 Stat. 3688, 3692,
    3820; Pub. L. 103-233, title III, Sec. 302, Apr. 11, 1994, 108
    Stat. 369; Pub. L. 104-19, title I, Secs. 1001(a), 1003A, July 27,
    1995, 109 Stat. 235, 236; Pub. L. 104-134, title I, Sec. 101(e)
    [title II, Sec. 201(a)(1)], Apr. 26, 1996, 110 Stat. 1321-257, 1321-
    277; renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996,
    110 Stat. 1327; Pub. L. 104-330, title V, Sec. 501(b)(6), Oct. 26,
    1996, 110 Stat. 4042; Pub. L. 105-276, title II, Sec. 208, Oct. 21,
    1998, 112 Stat. 2485, related to assistance for public housing
    modernization. See section 1437g(a) of this title.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement the repeal before such date, and with savings provision,
    see section 503 of Pub. L. 105-276, set out as an Effective Date of
    1998 Amendment note under section 1437 of this title.

                             SAVINGS PROVISION                         
      Pub. L. 105-276, title V, Sec. 522(c), Oct. 21, 1998, 112 Stat.
    2565, provided that:
      "(1) In general. - Section 14 of the United States Housing Act of
    1937 [42 U.S.C. 1437l] shall apply as provided in section 519(e) of
    this Act [42 U.S.C. 1437g note].
      "(2) Expansion of use of modernization funding. - Before the
    implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2)
    of the United States Housing Act of 1937 [42 U.S.C. 1437g(d)(2),
    (e)(2)] (as amended by section 519(a) of this Act) an agency may
    utilize any authority provided under or pursuant to section 14(q)
    of such Act [42 U.S.C. 1437l(q)] (including the authority under
    section 201(a) of the Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    1996 [see Tables for classification] (Public Law 104-134; 110 Stat.
    1321-277)), as such provisions (including such section 201(a)) may
    be amended thereafter, including any amendment made by title II of
    this Act [see Tables for classification]), notwithstanding any
    other provision of law (including the repeal made under this
    section, the expiration of the applicability of such section 201
    [see Tables for classification], or any repeal of such section
    201).
      "(3) Effective date. - This subsection shall take effect on the
    date of the enactment of this Act [Oct. 21, 1998]."

             CONVERSION OF CERTAIN PUBLIC HOUSING TO VOUCHERS         
      Pub. L. 104-134, title I, Sec. 101(e) [title II, Sec. 202], Apr.
    26, 1996, 110 Stat. 1321-257, 1321-279; renumbered title I, Pub. L.
    104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327, which required
    identification for removal from the inventory of a public housing
    agency of developments on same or contiguous sites which had more
    than 300 units and vacancy rate of at least 10 percent, were
    identified as distressed, and for which estimated cost of continued
    operation exceeded cost of providing tenant-based assistance under
    section 1437f of this title, provided for implementation and
    enforcement of provisions requiring identification, required each
    agency to develop and carry out plan for removal over 5-year
    period, and required provision of tenant-based assistance to
    families residing in any removed development, was repealed by Pub.
    L. 105-276, title V, Sec. 537(b), Oct. 21, 1998, 112 Stat. 2592.
    Amounts made available to carry out section 101(e) [title II, Sec.
    202] of Pub. L. 104-134 authorized to be used, to extent provided
    in advance in appropriations Acts, to carry out section 1437z-5 of
    this title, and section 101(e) [title II, Sec. 202] of Pub. L. 104-
    134 as in effect immediately before Oct. 21, 1998, to continue to
    apply to public housing developments identified for conversion, or
    assessment of whether conversion is required, prior to such date,
    see section 537(c) of Pub. L. 105-276, set out as a Transition note
    under section 1437z-5 of this title.

-End-



-CITE-
    42 USC Sec. 1437m                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437m. Payment of non-Federal share

-STATUTE-
      Any of the following may be used as the non-Federal share
    required in connection with activities undertaken under Federal
    grant-in-aid programs which provide social, educational,
    employment, and other services to the tenants in a project assisted
    under this chapter, other than under section 1437f of this title;
        (1) annual contributions under this chapter for operation of
      the project; or
        (2) rental or use-value of buildings or facilities paid for, in
      whole or in part, from development, modernization, or operation
      cost financed under this chapter.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 15, as added Pub. L. 96-399,
    title II, Sec. 212, Oct. 8, 1980, 94 Stat. 1636; amended Pub. L.
    100-242, title I, Sec. 112(b)(7), Feb. 5, 1988, 101 Stat. 1824;
    renumbered title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102
    Stat. 681.)


-MISC1-
                                AMENDMENTS                            
      1988 - Cl. (2). Pub. L. 100-242 struck out "with loans or debt
    service annual contributions" after "cost financed".

-End-



-CITE-
    42 USC Sec. 1437n                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437n. Eligibility for assisted housing

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

      (3) Prohibition of concentration of low-income families
        (A) Prohibition
          A public housing agency may not, in complying with the
        requirements under paragraph (2), concentrate very low-income
        families (or other families with relatively low incomes) in
        public housing dwelling units in certain public housing
        projects or certain buildings within projects. The Secretary
        shall review the income and occupancy characteristics of the
        public housing projects and the buildings of such projects of
        such agencies to ensure compliance with the provisions of this
        paragraph and paragraph (2).
        (B) Deconcentration
          (i) In general
            A public housing agency shall submit with its annual public
          housing agency plan under section 1437c-1 of this title an
          admissions policy designed to provide for deconcentration of
          poverty and income-mixing by bringing higher income tenants
          into lower income projects and lower income tenants into
          higher income projects. This clause may not be construed to
          impose or require any specific income or racial quotas for
          any project or projects.
          (ii) Incentives
            In implementing the policy under clause (i), a public
          housing agency may offer incentives for eligible families
          having higher incomes to occupy dwelling unit in projects
          predominantly occupied by eligible families having lower
          incomes, and provide for occupancy of eligible families
          having lower incomes in projects predominantly occupied by
          eligible families having higher incomes.
          (iii) Family choice
            Incentives referred to in clause (ii) may be made available
          by a public housing agency only in a manner that allows for
          the eligible family to have the sole discretion in
          determining whether to accept the incentive and an agency may
          not take any adverse action toward any eligible family for
          choosing not to accept an incentive and occupancy of a
          project described in clause (i)(II),(!2) Provided, That the
          skipping of a family on a waiting list to reach another
          family to implement the policy under clause (i) shall not be
          considered an adverse action. An agency implementing an
          admissions policy under this subparagraph shall implement the
          policy in a manner that does not prevent or interfere with
          the use of site-based waiting lists authorized under section
          1437d(s) (!3) of this title.


      (4) Fungibility with tenant-based assistance
        (A) Authority
          Except as provided under subparagraph (D), the number of
        public housing dwelling units that a public housing agency
        shall otherwise make available in accordance with paragraph
        (2)(A) to comply with the percentage requirement under such
        paragraph for a fiscal year shall be reduced by the credit
        number for the agency under subparagraph (B).
        (B) Credit for exceeding tenant-based assistance targeting
          requirement
          Subject to subparagraph (C), the credit number under this
        subparagraph for a public housing agency for a fiscal year
        shall be the number by which - 
            (i) the aggregate number of qualified families who, in such
          fiscal year, are initially provided tenant-based assistance
          under section 1437f of this title by the agency; exceeds
            (ii) the number of qualified families that is required for
          the agency to comply with the percentage requirement under
          subsection (b)(1) of this section for such fiscal year.
        (C) Limitations on credit number
          The credit number under subparagraph (B) for a public housing
        agency for a fiscal year may not in any case exceed the lesser
        of - 
            (i) the number of dwelling units that is equivalent to 10
          percent of the aggregate number of families initially
          provided tenant-based assistance under section 1437f of this
          title by the agency in such fiscal year; or
            (ii) the number of public housing dwelling units of the
          agency that - 
              (I) are in projects that are located in census tracts
            having a poverty rate of 30 percent or more; and
              (II) are made available for occupancy during such fiscal
            year and are actually filled only by families whose incomes
            at the time of commencement of such occupancy exceed 30
            percent of the area median income, as determined by the
            Secretary with adjustments for smaller and larger families.
        (D) Fungibility floor
          Notwithstanding any authority under subparagraph (A), of the
        public housing dwelling units of a public housing agency made
        available for occupancy in any fiscal year by eligible
        families, not less than 30 percent shall be occupied by
        families whose incomes at the time of commencement of occupancy
        do not exceed 30 percent of the area median income, as
        determined by the Secretary with adjustments for smaller and
        larger families.
        (E) Qualified family
          For purposes of this paragraph, the term "qualified family"
        means a family having an income described in subsection (b)(1)
        of this section.
    (b) Income eligibility for tenant-based section 1437f assistance
      (1) In general
        Of the families initially provided tenant-based assistance
      under section 1437f of this title by a public housing agency in
      any fiscal year, not less than 75 percent shall be families whose
      incomes do not exceed 30 percent of the area median income, as
      determined by the Secretary with adjustments for smaller and
      larger families; except that the Secretary may establish income
      ceilings higher or lower than 30 percent of the area median
      income on the basis of the Secretary's findings that such
      variations are necessary because of unusually high or low family
      incomes.
      (2) Jurisdictions served by multiple PHAs
        In the case of any 2 or more public housing agencies that
      administer tenant-based assistance under section 1437f of this
      title with respect solely to identical geographical areas, such
      agencies shall be treated as a single public housing agency for
      purposes of paragraph (1).
    (c) Income eligibility for project-based section 1437f assistance
      (1) Pre-1981 act projects
        Not more than 25 percent of the dwelling units that were
      available for occupancy under section 8 [42 U.S.C. 1437f] housing
      assistance payments contracts under this chapter before October
      1, 1981, and which will be leased on or after October 1, 1981,
      shall be available for leasing by low-income families other than
      very low-income families.
      (2) Post-1981 act projects
        Not more than 15 percent of the dwelling units which become
      available for occupancy under section 8 [42 U.S.C. 1437f] housing
      assistance payments contracts under this chapter on or after
      October 1, 1981, shall be available for leasing by low-income
      families other than very low-income families.
      (3) Targeting
        For each project assisted under a contract for project-based
      assistance, of the dwelling units that become available for
      occupancy in any fiscal year that are assisted under the
      contract, not less than 40 percent shall be available for leasing
      only by families whose incomes at the time of commencement of
      occupancy do not exceed 30 percent of the area median income, as
      determined by the Secretary with adjustments for smaller and
      larger families; except that the Secretary may establish income
      ceilings higher or lower than 30 percent of the area median
      income on the basis of the Secretary's findings that such
      variations are necessary because of unusually high or low family
      incomes.
      (4) Prohibition of skipping
        In developing admission procedures implementing paragraphs (1),
      (2), and (3), the Secretary shall prohibit project owners from
      selecting families for residence in an order different from the
      order on the waiting list for the purpose of selecting relatively
      higher income families for residence. Nothing in this paragraph
      or this subsection may be construed to prevent an owner of
      housing assisted under a contract for project-based assistance
      from establishing a preference for occupancy in such housing for
      families containing a member who is employed.
      (5) Exception
        The limitations established in paragraphs (1), (2), and (3)
      shall not apply to dwelling units made available under project-
      based contracts under section 1437f of this title for the
      purpose of preventing displacement, or ameliorating the effects
      of displacement.
      (6) Definition
        For purposes of this subsection, the term "project-based
      assistance" means assistance under any of the following programs:
          (A) The new construction or substantial rehabilitation
        program under section 1437f(b)(2) of this title (as in effect
        before October 1, 1983).
          (B) The property disposition program under section 1437f(b)
        of this title (as in effect before the effective date under
        section 503(a) of the Quality Housing and Work Responsibility
        Act of 1998).
          (C) The loan management set-aside program under subsections
        (b) and (v) of section 1437f of this title.
          (D) The project-based certificate program under section
        1437f(d)(2) of this title.
          (E) The moderate rehabilitation program under section
        1437f(e)(2) of this title (as in effect before October 1,
        1991).
          (F) The low-income housing preservation program under Low-
        Income Housing Preservation and Resident Homeownership Act of
        1990 [12 U.S.C. 4101 et seq.] or the provisions of the
        Emergency Low Income Housing Preservation Act of 1987 (as in
        effect before November 28, 1990).
          (G) Section 1437f of this title (as in effect before the
        effective date under section 503(a) of the Quality Housing and
        Work Responsibility Act of 1998), following conversion from
        assistance under section 1701s of title 12 or section 1715z-
        1(f)(2) of title 12.
    (d) Establishment of different standards
      Notwithstanding subsection (a)(2) or (b)(1) of this section, if
    approved by the Secretary, a public housing agency may for good
    cause establish and implement, in accordance with the public
    housing agency plan, an admission standard other than the standard
    under such subsection.
    (e) Repealed. Pub. L. 105-276, title V, Sec. 576(d)(2), Oct. 21,
      1998, 112 Stat. 2640
    (f) Ineligibility of individuals convicted of manufacturing or
      producing methamphetamine on the premises
      Notwithstanding any other provision of law, a public housing
    agency shall establish standards for occupancy in public housing
    dwelling units and assistance under section 1437f of this title
    that - 
        (1) permanently prohibit occupancy in any public housing
      dwelling unit by, and assistance under section 1437f of this
      title for, any person who has been convicted of manufacturing or
      otherwise producing methamphetamine on the premises in violation
      of any Federal or State law; and
        (2) immediately and permanently terminate the tenancy in any
      public housing unit of, and the assistance under section 1437f of
      this title for, any person who is convicted of manufacturing or
      otherwise producing methamphetamine on the premises in violation
      of any Federal or State law.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 16, as added Pub. L. 97-35,
    title III, Sec. 323, Aug. 13, 1981, 95 Stat. 404; amended Pub. L.
    98-181, title II, Sec. 213, Nov. 30, 1983, 97 Stat. 1184; Pub. L.
    100-242, title I, Secs. 103, 112(b)(8), Feb. 5, 1988, 101 Stat.
    1822, 1824; renumbered title I, Pub. L. 100-358, Sec. 5, June 29,
    1988, 102 Stat. 681; Pub. L. 100-628, title X, Sec. 1001(a), Nov.
    7, 1988, 102 Stat. 3263; Pub. L. 101-625, title V, Secs. 511,
    572(1), Nov. 28, 1990, 104 Stat. 4194, 4236; Pub. L. 102-550, title
    I, Sec. 105, Oct. 28, 1992, 106 Stat. 3684; Pub. L. 104-99, title
    IV, Sec. 402(d)(6)(A)(v), Jan. 26, 1996, 110 Stat. 42; Pub. L. 104-
    120, Sec. 9(d), Mar. 28, 1996, 110 Stat. 837; Pub. L. 104-330,
    title V, Sec. 501(b)(7), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105-
    276, title IV, Sec. 428, title V, Secs. 513(a), 576(d)(2), Oct.
    21, 1998, 112 Stat. 2511, 2543, 2640; Pub. L. 105-277, div. A, Sec.
    123, Oct. 21, 1998, 112 Stat. 2681-546; Pub. L. 106-74, title II,
    Sec. 205, Oct. 20, 1999, 113 Stat. 1069.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437d(s) of this title, referred to in subsec.
    (a)(3)(B)(iii), probably should be a reference to section 1437d(r)
    of this title. Pub. L. 105-276, title V, Secs. 525, 575(d),
    576(d)(1)(B), Oct. 21, 1998, 112 Stat. 2568, 2637, 2640, amended
    section 1437d by adding a subsec. (s) relating to site-based
    waiting lists and a subsec. (t) relating to authority to require
    access to criminal records and then redesignated those subsecs. (s)
    and (t) as (r) and (s), respectively.
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (c)(6)(B), (G), is section 503(a)
    of Pub. L. 105-276, which is set out as an Effective Date of 1998
    Amendment note under section 1437 of this title.
      The Low-Income Housing Preservation and Resident Homeownership
    Act of 1990, referred to in subsec. (c)(6)(F), is title II of Pub.
    L. 100-242, Feb. 5, 1988, 101 Stat. 1877, as amended, which is
    classified principally to chapter 42 (Sec. 4101 et seq.) of Title
    12, Banks and Banking. For complete classification of this Act to
    the Code, see Short Title note set out under section 4101 of Title
    12 and Tables.
      The Emergency Low Income Housing Preservation Act of 1987,
    referred to in subsec. (c)(6)(F), is title II of Pub. L. 100-242,
    Feb. 5, 1988, 101 Stat. 1877, which, as amended by Pub. L. 101-625,
    is known as the Low-Income Housing Preservation and Resident
    Homeownership Act of 1990. Subtitles A and B of title II, which
    were formerly set out as a note under section 1715l of Title 12,
    Banks and Banking, and which amended section 1715z-6 of Title 12,
    were amended generally by Pub. L. 101-625 and are classified to
    subchapter I (Sec. 4101 et seq.) of chapter 42 of Title 12.
    Subtitles C and D of title II amended section 1715z-15 of Title 12
    and sections 1437f, 1472, 1485, and 1487 of this title. Another
    subtitle C of title II of Pub. L. 100-242, as added by Pub. L. 102-
    550, is classified generally to subchapter II (Sec. 4141 et seq.)
    of chapter 42 of Title 12. For complete classification of this Act
    to the Code, see Short Title note set out under section 4101 of
    Title 12 and Tables.

-COD-
                               CODIFICATION                           
      October 1, 1981, referred to in subsec. (c)(1), (2), was in the
    original "the effective date of the Housing and Community
    Development Amendments of 1981" and "such effective date", meaning
    the effective date of subtitle A of title III of Pub. L. 97-35,
    Aug. 13, 1981, 95 Stat. 384, which was generally effective Oct. 1,
    1981. See Effective Date note below.


-MISC1-
                                AMENDMENTS                            
      1999 - Subsecs. (a)(2)(A), (c)(3). Pub. L. 106-74, Sec. 205(1),
    inserted before the period at end "; except that the Secretary may
    establish income ceilings higher or lower than 30 percent of the
    area median income on the basis of the Secretary's findings that
    such variations are necessary because of unusually high or low
    family incomes".
      1998 - Subsecs. (a) to (d). Pub. L. 105-276, Sec. 513(a), as
    amended by Pub. L. 105-277, Sec. 123, added subsecs. (a) to (d) and
    struck out former subsecs. (a) to (d). Prior to amendment, subsec.
    (a) related to percentage availability under contracts prior to
    Oct. 1, 1981, subsec. (b) related to percentage availability under
    contracts on or after Oct. 1, 1981, subsec. (c) related to
    admission procedures implementing subsec. (b), and subsec. (d)
    related to applicability of admission procedures limitations.
      Subsec. (e). Pub. L. 105-276, Sec. 576(d)(2), struck out heading
    and text of subsec. (e), which directed public housing agency to
    establish standards to prohibit occupancy by and terminate tenancy
    of any person illegally using controlled substance or whose use of
    controlled substance or abuse of alcohol might interfere with
    peaceful enjoyment of premises by other residents, and authorized
    agency to consider rehabilitation of person in making determination
    to deny occupancy.
      Subsec. (f). Pub. L. 105-276, Sec. 428, added subsec. (f).
      1996 - Pub. L. 104-120, Sec. 9(d)(1), substituted "Eligibility"
    for "Income eligibility" in section catchline.
      Subsec. (c). Pub. L. 104-99 temporarily substituted "the written
    system of preferences for selection established by the public
    housing agency pursuant to section 1437d(c)(4)(A)" for "the system
    of preferences established by the agency pursuant to section
    1437d(c)(4)(A)(ii)". See Effective and Termination Dates of 1996
    Amendments note below.
      Subsec. (d). Pub. L. 104-330, Sec. 501(b)(7)(A), redesignated
    par. (1) as entire subsec. and struck out par. (2) which read as
    follows: "The limitations established in subsections (a) and (b) of
    this section shall not apply to dwelling units assisted by Indian
    public housing agencies, to scattered site public housing dwelling
    units sold or intended to be sold to public housing tenants under
    section 1437c(h) of this title.."
      Subsec. (e). Pub. L. 104-120, Sec. 9(d)(2), added subsec. (e).
      Subsec. (e)(3). Pub. L. 104-330, Sec. 501(b)(7)(B), struck out
    heading and text of par. (3). Text read as follows: "This
    subsection does not apply to any dwelling unit assisted by an
    Indian housing authority."
      1992 - Subsec. (c). Pub. L. 102-550, Sec. 105(a), substituted
    "very low-income families and shall" for "very low-income families,
    shall" and ". In developing such admission procedures, the
    Secretary shall" for ", and shall" and inserted "; except that such
    prohibition shall not apply with respect to families selected for
    occupancy in public housing under the system of preferences
    established by the agency pursuant to section 1437d(c)(4)(A)(ii) of
    this title" after "higher income families for residence".
      Subsec. (d)(2). Pub. L. 102-550, Sec. 105(b), inserted before
    period at end ", to scattered site public housing dwelling units
    sold or intended to be sold to public housing tenants under section
    1437c(h) of this title."
      1990 - Subsec. (a). Pub. L. 101-625, Sec. 572(1), substituted
    "low-income families" for "lower income families".
      Subsec. (b). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families" in par. (1).
      Pub. L. 101-625, Sec. 511, designated existing provisions as par.
    (1), substituted "15 percent" for "5 per centum", and added par.
    (2).
      Subsecs. (c), (d)(1). Pub. L. 101-625, Sec. 572(1), substituted
    "low-income families" for "lower income families" wherever
    appearing.
      1988 - Subsec. (b). Pub. L. 100-242, Sec. 112(b)(8), struck out
    "annual" before "contributions".
      Subsec. (c). Pub. L. 100-628 substituted "shall establish an
    appropriate specific percentage of lower income families other than
    very-low income families that may be assisted in each assisted
    housing program" for "and shall establish, as appropriate,
    differing percentage limitations on admission of lower income
    families in separate assisted housing programs" and inserted before
    period at end of first sentence ", and shall prohibit project
    owners from selecting families for residence in an order different
    from the order on the waiting list for the purpose of selecting
    relatively higher income families for residence".
      Pub. L. 100-242, Sec. 103, added subsec. (c).
      Subsec. (d). Pub. L. 100-242, Sec. 103, added subsec. (d).
      1983 - Subsec. (a). Pub. L. 98-181 increased to 25 from 10 the
    percentage of dwelling units available for leasing.

                     EFFECTIVE DATE OF 1998 AMENDMENTS                 
      Pub. L. 105-277, div. A, Sec. 123, Oct. 21, 1998, 112 Stat. 2681-
    546, provided that the amendment made by section 123 of Pub. L.
    105-277 is effective upon enactment of Pub. L. 105-276.
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.
      Pub. L. 105-276, title V, Sec. 513(b), Oct. 21, 1998, 112 Stat.
    2547, provided that: "This section [amending this section] shall
    take effect on, and the amendments under this section are made on,
    and shall apply beginning upon, the date of the enactment of this
    Act [Oct. 21, 1998]."

            EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS        
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Amendment by Pub. L. 104-120 to be construed to have become
    effective Oct. 1, 1995, notwithstanding the effective date of any
    regulations issued by Secretary of Housing and Urban Development to
    implement amendments by sections 9 and 10 of Pub. L. 104-120 or any
    failure by Secretary to issue any such regulations, see section 13
    of Pub. L. 104-120, set out as a note under section 1437d of this
    title.
      Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for
    fiscal years 1996, 1997, and 1998, and to cease to be effective
    Oct. 21, 1998, see section 402(f) of Pub. L. 104-99, as amended,
    and section 514(f) of Pub. L. 105-276, set out as notes under
    section 1437a of this title.

                              EFFECTIVE DATE                          
      Section effective Oct. 1, 1981, see section 371 of Pub. L. 97-35,
    set out as a note under section 3701 of Title 12, Banks and
    Banking.

-FOOTNOTE-
    (!1) So in original. No subpar. (B) has been enacted.

    (!2) So in original. Cl. (i) does not contain subclauses.

    (!3) See References in Text note below.


-End-



-CITE-
    42 USC Sec. 1437o                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437o. Repealed.

-MISC1-
    Sec. 1437o. Repealed. Pub. L. 101-625, title II, Sec. 289(b), Nov.
      28, 1990, 104 Stat. 4128.
      Section, act Sept. 1, 1937, ch. 896, title I, Sec. 17, as added
    Nov. 30, 1983, Pub. L. 98-181, title III, Sec. 301, 97 Stat. 1196;
    amended Oct. 17, 1984, Pub. L. 98-479, title I, Sec. 103, 98 Stat.
    2223; Oct. 18, 1986, Pub. L. 99-500, Sec. 101(g), 100 Stat. 1783-
    242, and Oct. 30, 1986, Pub. L. 99-591, Sec. 101(g), 100 Stat.
    3341-242; Dec. 22, 1987, Pub. L. 100-202, Secs. 101(f) [title I,
    Sec. 101], 106, 101 Stat. 1329-187, 1329-189, 1329-433; Feb. 5,
    1988, Pub. L. 100-242, title I, Secs. 150, 151, 170(e), 101 Stat.
    1853, 1854, 1867; renumbered title I, June 29, 1988, Pub. L. 100-
    358, Sec. 5, 102 Stat. 681; Nov. 7, 1988, Pub. L. 100-628, title
    X, Sec. 1007, 102 Stat. 3266; June 30, 1989, Pub. L. 101-45, title
    I, 103 Stat. 112; Dec. 15, 1989, Pub. L. 101-235, title III, Sec.
    304, 103 Stat. 2044; May 25, 1990, Pub. L. 101-302, title II, 104
    Stat. 238; Nov. 5, 1990, Pub. L. 101-507, title II, 104 Stat. 1369;
    Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(1), 104 Stat.
    4236; Apr. 10, 1991, Pub. L. 102-27, title II, 105 Stat. 150; Oct.
    28, 1992, Pub. L. 102-550, title VI, Sec. 625(a)(4), 106 Stat.
    3820, authorized Secretary to make rental rehabilitation and
    development grants.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Oct. 1, 1991, and except with respect to
    projects and programs for which binding commitments have been
    entered into prior to Oct. 1, 1991, no new grants or loans to be
    made after Oct. 1, 1991, under this section, see section
    12839(a)(1), (b)(1) of this title.

-End-



-CITE-
    42 USC Sec. 1437p                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437p. Demolition and disposition of public housing

-STATUTE-
    (a) Applications for demolition and disposition
      Except as provided in subsection (b) of this section, upon
    receiving an application by a public housing agency for
    authorization, with or without financial assistance under this
    subchapter, to demolish or dispose of a public housing project or a
    portion of a public housing project (including any transfer to a
    resident-supported nonprofit entity), the Secretary shall approve
    the application, if the public housing agency certifies - 
        (1) in the case of - 
          (A) an application proposing demolition of a public housing
        project or a portion of a public housing project, that - 
            (i) the project or portion of the public housing project is
          obsolete as to physical condition, location, or other
          factors, making it unsuitable for housing purposes; and
            (ii) no reasonable program of modifications is cost-
          effective to return the public housing project or portion of
          the project to useful life; and

          (B) an application proposing the demolition of only a portion
        of a public housing project, that the demolition will help to
        ensure the viability of the remaining portion of the project;

        (2) in the case of an application proposing disposition by sale
      or other transfer of a public housing project or other real
      property subject to this subchapter - 
          (A) the retention of the property is not in the best
        interests of the residents or the public housing agency because
        - 
            (i) conditions in the area surrounding the public housing
          project adversely affect the health or safety of the
          residents or the feasible operation of the project by the
          public housing agency; or
            (ii) disposition allows the acquisition, development, or
          rehabilitation of other properties that will be more
          efficiently or effectively operated as low-income housing;

          (B) the public housing agency has otherwise determined the
        disposition to be appropriate for reasons that are - 
            (i) in the best interests of the residents and the public
          housing agency;
            (ii) consistent with the goals of the public housing agency
          and the public housing agency plan; and
            (iii) otherwise consistent with this subchapter; or

          (C) for property other than dwelling units, the property is
        excess to the needs of a public housing project or the
        disposition is incidental to, or does not interfere with,
        continued operation of a public housing project;

        (3) that the public housing agency has specifically authorized
      the demolition or disposition in the public housing agency plan,
      and has certified that the actions contemplated in the public
      housing agency plan comply with this section;
        (4) that the public housing agency - 
          (A) will notify each family residing in a project subject to
        demolition or disposition 90 days prior to the displacement
        date, except in cases of imminent threat to health or safety,
        consistent with any guidelines issued by the Secretary
        governing such notifications, that - 
            (i) the public housing project will be demolished or
          disposed of;
            (ii) the demolition of the building in which the family
          resides will not commence until each resident of the building
          is relocated; and
            (iii) each family displaced by such action will be offered
          comparable housing - 
              (I) that meets housing quality standards;
              (II) that is located in an area that is generally not
            less desirable than the location of the displaced person's
            housing; and
              (III) which may include - 
                (aa) tenant-based assistance, except that the
              requirement under this clause regarding offering of
              comparable housing shall be fulfilled by use of tenant-
              based assistance only upon the relocation of such family
              into such housing;
                (bb) project-based assistance; or
                (cc) occupancy in a unit operated or assisted by the
              public housing agency at a rental rate paid by the family
              that is comparable to the rental rate applicable to the
              unit from which the family is vacated;

          (B) will provide for the payment of the actual and reasonable
        relocation expenses of each resident to be displaced;
          (C) will ensure that each displaced resident is offered
        comparable housing in accordance with the notice under
        subparagraph (A); and (!1)

          (D) will provide any necessary counseling for residents who
        are displaced; and
          (E) will not commence demolition or complete disposition
        until all residents residing in the building are relocated;

        (5) that the net proceeds of any disposition will be used - 
          (A) unless waived by the Secretary, for the retirement of
        outstanding obligations issued to finance the original public
        housing project or modernization of the project; and
          (B) to the extent that any proceeds remain after the
        application of proceeds in accordance with subparagraph (A),
        for - 
            (i) the provision of low-income housing or to benefit the
          residents of the public housing agency; or
            (ii) leveraging amounts for securing commercial
          enterprises, on-site in public housing projects of the public
          housing agency, appropriate to serve the needs of the
          residents; and

        (6) that the public housing agency has complied with subsection
      (c) of this section.
    (b) Disapproval of applications
      The Secretary shall disapprove an application submitted under
    subsection (a) of this section if the Secretary determines that - 
        (1) any certification made by the public housing agency under
      that subsection is clearly inconsistent with information and data
      available to the Secretary or information or data requested by
      the Secretary; or
        (2) the application was not developed in consultation with - 
          (A) residents who will be affected by the proposed demolition
        or disposition;
          (B) each resident advisory board and resident council, if
        any, of the project (or portion thereof) that will be affected
        by the proposed demolition or disposition; and
          (C) appropriate government officials.
    (c) Resident opportunity to purchase in case of proposed
      disposition
      (1) In general
        In the case of a proposed disposition of a public housing
      project or portion of a project, the public housing agency shall,
      in appropriate circumstances, as determined by the Secretary,
      initially offer the property to any eligible resident
      organization, eligible resident management corporation, or
      nonprofit organization acting on behalf of the residents, if that
      entity has expressed an interest, in writing, to the public
      housing agency in a timely manner, in purchasing the property for
      continued use as low-income housing.
      (2) Timing
        (A) Expression of interest
          A resident organization, resident management corporation, or
        other resident-supported nonprofit entity referred to in
        paragraph (1) may express interest in purchasing property that
        is the subject of a disposition, as described in paragraph (1),
        during the 30-day period beginning on the date of notification
        of a proposed sale of the property.
        (B) Opportunity to arrange purchase
          If an entity expresses written interest in purchasing a
        property, as provided in subparagraph (A), no disposition of
        the property shall occur during the 60-day period beginning on
        the date of receipt of that written notice (other than to the
        entity providing the notice), during which time that entity
        shall be given the opportunity to obtain a firm commitment for
        financing the purchase of the property.
    (d) Replacement units
      Notwithstanding any other provision of law, replacement public
    housing units for public housing units demolished in accordance
    with this section may be built on the original public housing
    location or in the same neighborhood as the original public housing
    location if the number of the replacement public housing units is
    significantly fewer than the number of units demolished.
    (e) Consolidation of occupancy within or among buildings
      Nothing in this section may be construed to prevent a public
    housing agency from consolidating occupancy within or among
    buildings of a public housing project, or among projects, or with
    other housing for the purpose of improving living conditions of, or
    providing more efficient services to, residents.
    (f) De minimis exception to demolition requirements
      Notwithstanding any other provision of this section, in any 5-
    year period a public housing agency may demolish not more than the
    lesser of 5 dwelling units or 5 percent of the total dwelling units
    owned by the public housing agency, but only if the space occupied
    by the demolished unit is used for meeting the service or other
    needs of public housing residents or the demolished unit was beyond
    repair.
    (g) Uniform Relocation and Real Property Acquisition Act
      The Uniform Relocation and Real Property Acquisition Policies Act
    of 1970 [42 U.S.C. 4601 et seq.] shall not apply to activities
    under this section.
    (h) Relocation and replacement
      Of the amounts appropriated for tenant-based assistance under
    section 1437f of this title in any fiscal year, the Secretary may
    use such sums as are necessary for relocation and replacement
    housing for dwelling units that are demolished and disposed of from
    the public housing inventory (in addition to other amounts that may
    be available for such purposes).

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 18, as added Pub. L. 98-181,
    title II, Sec. 214(a), Nov. 30, 1983, 97 Stat. 1184; amended Pub.
    L. 100-242, title I, Secs. 112(b)(9), 121, 170(f), Feb. 5, 1988,
    101 Stat. 1824, 1837, 1867; renumbered title I, Pub. L. 100-358,
    Sec. 5, June 29, 1988, 102 Stat. 681; Pub. L. 101-625, title IV,
    Sec. 412, title V, Secs. 512(a), 513(b), (c), 572, Nov. 28, 1990,
    104 Stat. 4159, 4194-4196, 4236; Pub. L. 102-550, title I, Secs.
    111(b)(2), 116(a)-(c), Oct. 28, 1992, 106 Stat. 3688, 3693, 3694;
    Pub. L. 104-19, title I, Sec. 1002(a), July 27, 1995, 109 Stat.
    235; Pub. L. 104-134, title I, Sec. 101(e) [title II, Sec.
    201(b)(2)], Apr. 26, 1996, 110 Stat. 1321-257, 1321-278; renumbered
    title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327;
    Pub. L. 105-276, title V, Sec. 531(a), Oct. 21, 1998, 112 Stat.
    2570.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Uniform Relocation and Real Property Acquisition Policies Act
    of 1970, referred to in subsec. (g), probably means the Uniform
    Relocation Assistance and Real Property Acquisition Policies Act of
    1970, Pub. L. 91-646, Jan. 2, 1971, 84 Stat. 1894, as amended, and
    which is classified principally to chapter 61 (Sec. 4601 et seq.)
    of this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 4601 of this title and
    Tables.


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-276 amended section generally. Prior to
    amendment, subsec. (a) required the Secretary to make certain
    determinations before approving the demolition or disposition of
    all or part of a public housing project; subsec. (b) required
    public housing agency consultation with tenants and provision of
    relocation assistance; subsec. (c) authorized financial assistance
    using section 1437c contributions; subsec. (d) provided that agency
    would not be prevented from consolidating occupancy within or among
    buildings or projects; subsec. (e) provided set-asides for
    replacement housing in fiscal years 1993 and 1994; subsec. (f)
    authorized construction on original site if number of new units
    would be less than number of demolished units; and subsec. (g)
    declared that this section did not apply to dispositions in
    accordance with approved homeownership program under subchapter II-
    A of this chapter.
      1996 - Subsec. (f). Pub. L. 104-134 inserted at end "No one may
    rely on the preceding sentence as the basis for reconsidering a
    final order of a court issued, or a settlement approved, by a
    court."
      1995 - Subsec. (b)(1). Pub. L. 104-19, Sec. 1002(a)(1), inserted
    "and" after "housing assistance plan;".
      Subsec. (b)(2). Pub. L. 104-19, Sec. 1002(a)(2), substituted ",
    and the public housing agency provides for the payment of the
    relocation expenses of each tenant to be displaced, ensures that
    the rent paid by the tenant following relocation will not exceed
    the amount permitted under this chapter and shall not commence
    demolition or disposition of any unit until the tenant of the unit
    is relocated." for "; and".
      Subsec. (b)(3). Pub. L. 104-19, Sec. 1002(a)(3), struck out par.
    (3) which made approval conditional upon development of plan for
    provision of additional unit for each unit to be demolished or
    disposed of.
      Subsec. (c). Pub. L. 104-19, Sec. 1002(a)(4), (5), struck out
    par. (1) designation and text of par. (2), which read as follows:
    "The Secretary shall, upon approving a plan under subsection (b)(3)
    of this section, agree to commit (subject to the availability of
    future appropriations) the funds necessary to carry out the plan
    over the approved schedule of the plan. As part of each annual
    budget request for the Department of Housing and Urban Development,
    the Secretary shall submit to the Congress a report - 
        "(A) outlining the commitments the Secretary entered into
      during the preceding year to fund plans approved under subsection
      (b)(3) of this section; and
        "(B) specifying, by fiscal year, the budget authority required
      to carry out the commitments specified in subparagraph (A)."
      Subsec. (d). Pub. L. 104-19, Sec. 1002(a)(6), inserted before
    period at end ": Provided, That nothing in this section shall
    prevent a public housing agency from consolidating occupancy within
    or among buildings of a public housing project, or among projects,
    or with other housing for the purpose of improving the living
    conditions of or providing more efficient services to its tenants".
      Subsec. (e). Pub. L. 104-19, Sec. 1002(a)(7), which directed the
    striking of "under section (b)(3)(A) of this section" each place it
    occurred, was executed by striking out "under subsection (b)(3)(A)
    of this section" before "for units demolished or disposed of" in
    two places, to reflect the probable intent of Congress.
      Subsecs. (f), (g). Pub. L. 104-19, Sec. 1002(a)(8), (9), added
    subsec. (f) and redesignated former subsec. (f) as (g).
      1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 111(b)(2), added
    par. (3).
      Subsec. (b)(1). Pub. L. 102-550, Sec. 116(a), inserted "of the
    project or portion of the project covered by the application" after
    "tenant cooperative".
      Subsec. (b)(3). Pub. L. 102-550, Sec. 116(b)(5), inserted at end
    "except that, in any 5-year period, a public housing agency may
    demolish not more than the lesser of 5 dwelling units or 5 percent
    of the total dwelling units owned and operated by the public
    housing agency, without providing an additional dwelling unit for
    each such public housing dwelling unit to be demolished, but only
    if the space occupied by the demolished unit is used for meeting
    the service or other needs of public housing residents."
      Subsec. (b)(3)(A)(ii). Pub. L. 102-550, Sec. 116(b)(1)(A),
    inserted before semicolon at end "to the extent available; or if
    such assistance is not available, in the case of an application
    proposing demolition or disposition of 200 or more units, the use
    of available project-based assistance under section 1437f of this
    title having a term of not less than 5 years".
      Subsec. (b)(3)(A)(iii). Pub. L. 102-550, Sec. 116(b)(1)(B),
    inserted before semicolon at end "to the extent available; or if
    such assistance is not available, in the case of an application
    proposing demolition or disposition of 200 or more units, the use
    of available project-based assistance under other Federal programs
    having a term of not less than 5 years".
      Subsec. (b)(3)(A)(v). Pub. L. 102-550, Sec. 116(b)(1)(C),
    inserted before semicolon "to the extent available; or if such
    assistance is not available, in the case of an application
    proposing demolition or disposition of 200 or more units, the use
    of tenant-based assistance under section 1437f of this title
    (excluding vouchers under section 1437f(o) of this title) having a
    term of not less than 5 years".
      Subsec. (b)(3)(B). Pub. L. 102-550, Sec. 116(b)(4), added subpar.
    (B). Former subpar. (B) redesignated (C).
      Subsec. (b)(3)(C) to (F). Pub. L. 102-550, Sec. 116(b)(3),
    redesignated subpars. (B) to (E) as (C) to (F), respectively.
    Former subpar. (F) redesignated (G).
      Subsec. (b)(3)(G). Pub. L. 102-550, Sec. 116(b)(3), redesignated
    subpar. (F) as (G). Former subpar. (G) redesignated (H).
      Pub. L. 102-550, Sec. 116(b)(2), substituted "tenant's choice;"
    for "tenant's choice."
      Subsec. (b)(3)(H). Pub. L. 102-550, Sec. 116(b)(3), redesignated
    subpar. (G) as (H).
      Subsecs. (e), (f). Pub. L. 102-550, Sec. 116(c), added subsec.
    (e) and redesignated former subsec. (e) as (f).
      1990 - Subsec. (a)(2)(A)(i). Pub. L. 101-625, Sec. 572(2),
    substituted "low-income housing" for "lower income housing"
    wherever appearing.
      Subsec. (a)(2)(B). Pub. L. 101-625, Sec. 572, substituted "low-
    income families" for "lower income families" and "low-income
    housing" for "lower income housing" wherever appearing.
      Pub. L. 101-625, Sec. 512(a), inserted before first comma ",
    which, in the case of scattered-site housing of a public housing
    agency, shall be in an amount that bears the same ratio to the
    total of such costs and obligations as the number of units disposed
    of bears to the total number of units of the project at the time of
    disposition".
      Subsec. (b)(1). Pub. L. 101-625, Sec. 412(a), substituted
    "disposition, and the tenant councils, resident management
    corporation, and tenant cooperative, if any, have been given
    appropriate opportunities to purchase the project or portion of the
    project covered by the application," for "disposition".
      Subsec. (c)(2). Pub. L. 101-625, Sec. 513(b), inserted at end "As
    part of each annual budget request for the Department of Housing
    and Urban Development, the Secretary shall submit to the Congress a
    report - ", and added subpars. (A) and (B).
      Subsec. (c)(3). Pub. L. 101-625, Sec. 513(c), struck out par. (3)
    which read as follows: "The Secretary shall, in allocating
    assistance for the acquisition or development of public housing or
    for moderate rehabilitation under section 1437f(e)(2) of this
    title, give consideration to housing that replaces demolished
    public housing units in accordance with a plan under subsection
    (b)(3) of this section."
      Subsec. (e). Pub. L. 101-625, Sec. 412(b), added subsec. (e).
      1988 - Subsec. (a)(1). Pub. L. 100-242, Sec. 121(a), substituted
    "and" for "or" after "purposes,".
      Subsec. (b). Pub. L. 100-242, Sec. 170(f), inserted "or" after
    "under this section".
      Subsec. (b)(3). Pub. L. 100-242, Sec. 121(b), added par. (3).
      Subsec. (c). Pub. L. 100-242, Sec. 121(c), designated existing
    provisions as par. (1) and added pars. (2) and (3).
      Pub. L. 100-242, Sec. 112(b)(9), substituted "contributions
    authorized under section 1437c" for "annual contributions
    authorized under section 1437c(c)".
      Subsec. (d). Pub. L. 100-242, Sec. 121(d), added subsec. (d) and
    struck out former subsec. (d) which read as follows: "The
    provisions of this section shall not apply to the conveyance of
    units in a public housing project for the purpose of providing
    homeownership opportunities for lower income families capable of
    assuming the responsibilities of homeownership."

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-276, title V, Sec. 531(c), Oct. 21, 1998, 112 Stat.
    2574, provided that: "This section [amending this section and
    section 1437aaa-3 of this title and enacting provisions set out as
    a note under section 1437aaa-3 of this title] shall take effect on,
    and the amendments made by this section are made on, and shall
    apply beginning upon, the date of the enactment of this Act [Oct.
    21, 1998]."

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-19 effective for applications for
    demolition, disposition, or conversion to homeownership of public
    housing approved by the Secretary, and other consolidation and
    relocation activities of public housing agencies undertaken on,
    before, or after Sept. 30, 1995 and on or before Sept. 30, 1998,
    see section 1002(d) of Pub. L. 104-19, as amended, set out as a
    note under section 1437c of this title.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Section 512(b) of Pub. L. 101-625 provided that: "The amendment
    made by this section [amending this section] shall apply to any
    scattered-site public housing project or portion of such project
    disposed of after the date of the enactment of this Act [Nov. 28,
    1990]."

                 REPLACEMENT HOUSING DEMONSTRATION PROGRAM             
      Section 513(a) of Pub. L. 101-625 directed Secretary of Housing
    and Urban Development to carry out a program to demonstrate the
    effectiveness of replacing public housing dwelling units eligible
    for demolition or disposition with 5-year certificate assistance
    provided under 42 U.S.C. 1437f, with Secretary to carry out the
    demonstration only with respect to public housing dwelling units
    owned or operated by the public housing authority for Saint Louis,
    Missouri, that before the termination of the demonstration program
    under this subsection are approved for demolition or disposition,
    and with the demonstration program to terminate at end of Sept. 30,
    1992.

-FOOTNOTE-               

    (!1) So in original. The word "and" probably should not appear.


-End-



-CITE-
    42 USC Sec. 1437q                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437q. Financing limitations

-STATUTE-
      On and after October 1, 1983, the Secretary - 
        (1) may only enter into contracts for annual contributions
      regarding obligations financing public housing projects
      authorized by section 1437c(c) of this title if such obligations
      are exempt from taxation under section 1437i(b) of this title, or
      if such obligations are issued under section 1437b of this title
      and such obligations are exempt from taxation; and
        (2) may not enter into contracts for periodic payments to the
      Federal Financing Bank to offset the costs to the Bank of
      purchasing obligations (as described in the first sentence of
      section 2294(b) of title 12) issued by local public housing
      agencies for purposes of financing public housing projects
      authorized by section 1437c(c) of this title.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 19, as added Pub. L. 98-181,
    title II, Sec. 215, Nov. 30, 1983, 97 Stat. 1185; renumbered title
    I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102 Stat. 681.)

-End-



-CITE-
    42 USC Sec. 1437r                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437r. Public housing resident management

-STATUTE-
    (a) Purpose
      The purpose of this section is to encourage increased resident
    management of public housing projects, as a means of improving
    existing living conditions in public housing projects, by providing
    increased flexibility for public housing projects that are managed
    by residents by - 
        (1) permitting the retention, and use for certain purposes, of
      any revenues exceeding operating and project costs; and
        (2) providing funding, from amounts otherwise available, for
      technical assistance to promote formation and development of
      resident management entities.

    For purposes of this section, the term "public housing project"
    includes one or more contiguous buildings or an area of contiguous
    row houses the elected resident councils of which approve the
    establishment of a resident management corporation and otherwise
    meet the requirements of this section.
    (b) Program requirements
      (1) Resident council
        As a condition of entering into a resident management program,
      the elected resident council of a public housing project shall
      approve the establishment of a resident management corporation.
      When such approval is made by the elected resident council of a
      building or row house area, the resident management program shall
      not interfere with the rights of other families residing in the
      project or harm the efficient operation of the project. The
      resident management corporation and the resident council may be
      the same organization, if the organization complies with the
      requirements applicable to both the corporation and council. The
      corporation shall be a nonprofit corporation organized under the
      laws of the State in which the project is located, and the
      tenants of the project shall be the sole voting members of the
      corporation. If there is no elected resident council, a majority
      of the households of the public housing project shall approve the
      establishment of a resident council to determine the feasibility
      of establishing a resident management corporation to manage the
      project.
      (2) Public housing management specialist
        The resident council of a public housing project, in
      cooperation with the public housing agency, shall select a
      qualified public housing management specialist to assist in
      determining the feasibility of, and to help establish, a resident
      management corporation and to provide training and other duties
      agreed to in the daily operations of the project.
      (3) Bonding and insurance
        Before assuming any management responsibility for a public
      housing project, the resident management corporation shall
      provide fidelity bonding and insurance, or equivalent protection,
      in accordance with regulations and requirements of the Secretary
      and the public housing agency. Such bonding and insurance, or its
      equivalent, shall be adequate to protect the Secretary and the
      public housing agency against loss, theft, embezzlement, or
      fraudulent acts on the part of the resident management
      corporation or its employees.
      (4) Management responsibilities
        A resident management corporation that qualifies under this
      section, and that supplies insurance and bonding or equivalent
      protection sufficient to the Secretary and the public housing
      agency, shall enter into a contract with the public housing
      agency establishing the respective management rights and
      responsibilities of the corporation and the public housing
      agency. Such contract shall be consistent with the requirements
      of this chapter applicable to public housing projects and may
      include specific terms governing management personnel and
      compensation, access to public housing project records,
      submission of and adherence to budgets, rent collection
      procedures, tenant income verification, tenant eligibility
      determinations, tenant eviction, the acquisition of supplies and
      materials, rent determination, community service
      requirements,,(!1) and such other matters as may be appropriate.
      The contract shall be treated as a contracting out of services
      and shall be subject to any provision of a collective bargaining
      agreement regarding contracting out to which the public housing
      agency is subject.

      (5) Annual audit
        The books and records of a resident management corporation
      operating a public housing project shall be audited annually by a
      certified public accountant. A written report of each audit shall
      be forwarded to the public housing agency and the Secretary.
    (c) Assistance amounts
      A contract under this section for management of a public housing
    project by a resident management corporation shall provide for - 
        (1) the public housing agency to provide a portion of the
      assistance to agency from the Capital and Operating Funds to the
      resident management corporation in accordance with subsection (e)
      of this section for purposes of operating the public housing
      project covered by the contract and performing such other
      eligible activities with respect to the project as may be
      provided under the contract;
        (2) the amount of income expected to be derived from the
      project itself (from sources such as rents and charges);
        (3) the amount of income to be provided to the project from the
      other sources of income of the public housing agency (such as
      interest income, administrative fees, and rents); and
        (4) any income generated by a resident management corporation
      of a public housing project that exceeds the income estimated
      under the contract shall be used for eligible activities under
      subsections (d)(1) and (e)(1) of section 1437g of this title.
    (d) Waiver of Federal requirements
      (1) Waiver of regulatory requirements
        Upon the request of any resident management corporation and
      public housing agency, and after notice and an opportunity to
      comment is afforded to the affected tenants, the Secretary may
      waive (for both the resident management corporation and the
      public housing agency) any requirement established by the
      Secretary (and not specified in any statute) that the Secretary
      determines to unnecessarily increase the costs or restrict the
      income of a public housing project.
      (2) Waiver to permit employment
        Upon the request of any resident management corporation, the
      Secretary may, subject to applicable collective bargaining
      agreements, permit residents of such project to volunteer a
      portion of their labor.
      (3) Exceptions
        The Secretary may not waive under this subsection any
      requirement with respect to income eligibility for purposes of
      section 1437n of this title, rental payments under section
      1437a(a) of this title, tenant or applicant protections, employee
      organizing rights, or rights of employees under collective
      bargaining agreements.
    (e) Direct provision of operating and capital assistance
      (1) In general
        The Secretary shall directly provide assistance from the
      Operating and Capital Funds to a resident management corporation
      managing a public housing development pursuant to a contract
      under this section, but only if - 
          (A) the resident management corporation petitions the
        Secretary for the release of the funds;
          (B) the contract provides for the resident management
        corporation to assume the primary management responsibilities
        of the public housing agency; and
          (C) the Secretary determines that the corporation has the
        capability to effectively discharge such responsibilities.
      (2) Use of assistance
        Any assistance from the Operating and Capital Funds provided to
      a resident management corporation pursuant to this subsection
      shall be used for purposes of operating the public housing
      developments of the agency and performing such other eligible
      activities with respect to public housing as may be provided
      under the contract.
      (3) Responsibility of public housing agency
        If the Secretary provides direct funding to a resident
      management corporation under this subsection, the public housing
      agency shall not be responsible for the actions of the resident
      management corporation.
      (4) Calculation of Operating Fund allocation
        Notwithstanding any provision of section 1437g of this title or
      any regulation under such section, and subject to the exception
      provided in paragraph (3), the portion of the amount received by
      a public housing agency under section 1437g of this title that is
      due to an allocation from the Operating Fund and that is
      allocated to a public housing project managed by a resident
      management corporation shall not be less than the public housing
      agency per unit monthly amount provided in the previous year as
      determined on an individual project basis.
      (5) Calculation of total income
        (A) Subject to subparagraph (B), the amount of funds provided
      by a public housing agency to a public housing project managed by
      a resident management corporation may not be reduced during the 3-
      year period beginning on February 5, 1988, or on any later date
      on which a resident management corporation is first established
      for the project.
        (B) If the total income of a public housing agency (including
      any amounts from the Capital or Operating Funds provided to the
      public housing agency under section 1437g of this title) is
      reduced or increased, the income provided by the public housing
      agency to a public housing project managed by a resident
      management corporation shall be reduced or increased in
      proportion to the reduction or increase in the total income of
      the public housing agency, except that any reduction in amounts
      from the Operating Fund that occurs as a result of fraud, waste,
      or mismanagement by the public housing agency shall not affect
      the funds provided to the resident management corporation.
      (6) Retention of excess revenues
        (A) Any income generated by a resident management corporation
      of a public housing project that exceeds the income estimated for
      purposes of this subsection shall be excluded in subsequent years
      in calculating (i) the allocations from the Operating Fund for
      the public housing agency under section 1437g of this title; and
      (ii) the funds provided by the public housing agency to the
      resident management corporation.
        (B) Any revenues retained by a resident management corporation
      under subparagraph (A) shall be used for purposes of improving
      the maintenance and operation of the public housing project, for
      establishing business enterprises that employ residents of public
      housing, or for acquiring additional dwelling units for low-
      income families.
    (f), (g) Repealed. Pub. L. 105-276, title V, Sec. 532(a)(5), Oct.
      21, 1998, 112 Stat. 2575
    (h) Applicability
      Any management contract between a public housing agency and a
    resident management corporation that is entered into after November
    7, 1988, shall be subject to this section and the regulations
    issued to carry out this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 20, as added Pub. L. 100-
    242, title I, Sec. 122, Feb. 5, 1988, 101 Stat. 1839; renumbered
    title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102 Stat. 681;
    amended Pub. L. 100-628, title X, Sec. 1003, Nov. 7, 1988, 102
    Stat. 3263; Pub. L. 101-625, title IV, Sec. 415, title V, Secs.
    514, 572(1), Nov. 28, 1990, 104 Stat. 4160, 4196, 4236; Pub. L. 102-
    550, title I, Sec. 117, Oct. 28, 1992, 106 Stat. 3695; Pub. L. 105-
    276, title V, Sec. 532(a), Oct. 21, 1998, 112 Stat. 2574.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1437r, act Sept. 1, 1937, ch. 896, Sec. 20, as
    added Nov. 6, 1986, Pub. L. 99-603, title I, Sec. 121(b)(6), 100
    Stat. 3391, related to payment for implementation of immigration
    status verification system, prior to repeal by Pub. L. 100-242,
    Sec. 164(f)(2).

                                AMENDMENTS                            
      1998 - Subsec. (b)(4). Pub. L. 105-276, Sec. 532(a)(1), inserted
    ", rent determination, community service requirements," after
    "materials".
      Subsec. (c). Pub. L. 105-276, Sec. 532(a)(2), added subsec. (c)
    and struck out heading and text of former subsec. (c). Text read as
    follows: "Public housing projects managed by resident management
    corporations may be provided with comprehensive improvement
    assistance under section 1437l of this title for purposes of
    renovating such projects in accordance with such section. If such
    renovation activities (including the planning and architectural
    design of the rehabilitation) are administered by a resident
    management corporation, the public housing agency involved may not
    retain, for any administrative or other reason, any portion of the
    assistance provided pursuant to this subsection unless otherwise
    provided by contract."
      Subsec. (d)(3), (4). Pub. L. 105-276, Sec. 532(a)(3),
    redesignated par. (4) as (3) and struck out heading and text of
    former par. (3). Text read as follows: "Not later than 6 months
    after February 5, 1988, the Secretary shall submit to the Congress
    a report setting forth any additional waivers of Federal law that
    the Secretary determines are necessary or appropriate to carry out
    the provisions of this section. In preparing the report, the
    Secretary shall consult with resident management corporations and
    public housing agencies."
      Subsec. (e)(1) to (3). Pub. L. 105-276, Sec. 532(a)(4)(B), added
    subsec. heading and pars. (1) to (3) and struck out former subsec.
    heading and former pars. (1) to (3), which in par. (1), specified
    amount of operating subsidy to be allocated to a public housing
    project managed by a resident management corporation; in par. (2),
    set forth requirements for any contract for management of a project
    entered into by a public housing agency and a resident management
    corporation; and in par. (3), prohibited reduction of funds
    provided by an agency to a project during 3-year period beginning
    on date on which resident management corporation is first
    established for the project, and provided for proportional
    reduction or increase if total income of agency is reduced or
    increased.
      Subsec. (e)(4), (5). Pub. L. 105-276, Sec. 532(a)(4)(B), added
    pars. (4) and (5). Former par. (4) redesignated (6).
      Subsec. (e)(6). Pub. L. 105-276, Sec. 532(a)(4)(A), redesignated
    par. (4) as (6).
      Subsec. (e)(6)(A)(i). Pub. L. 105-276, Sec. 532(a)(4)(C),
    substituted "the allocations from the Operating Fund for" for "the
    operating subsidies provided to".
      Subsec. (f). Pub. L. 105-276, Sec. 532(a)(5), struck out heading
    and text of subsec. (f) which required Secretary to provide
    financial assistance to resident management corporations or
    resident councils that obtain technical assistance for the
    development of resident management entities, limited assistance to
    $100,000 with respect to any public housing project, authorized
    appropriations for fiscal years 1993 and 1994, and limited
    assistance to corporations or councils where assistance was
    provided under subchapter II-A of this chapter.
      Subsec. (g). Pub. L. 105-276, Sec. 532(a)(5), struck out heading
    and text of subsec. (g). Text read as follows: "Not later than 3
    years after February 5, 1988, the Secretary shall - 
        "(1) conduct an evaluation and assessment of resident
      management, and particularly of the effect of resident management
      on living conditions in public housing; and
        "(2) submit to the Congress a report setting forth the findings
      of the Secretary as a result of the evaluation and assessment and
      including any recommendations the Secretary determines to be
      appropriate."
      1992 - Subsec. (f)(3). Pub. L. 102-550 amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "(3)
    Funding. - Of amounts made available for financial assistance under
    section 1437l of this title, the Secretary may use to carry out
    this subsection not more than $5,000,000 for each of fiscal years
    1991 and 1992."
      1990 - Subsec. (e)(4)(B). Pub. L. 101-625, Sec. 572(1),
    substituted "low-income families" for "lower income families".
      Subsec. (f)(3). Pub. L. 101-625, Sec. 514, amended par. (3)
    generally. Prior to amendment, par. (3) read as follows: "Of the
    amounts available for financial assistance under section 1437l of
    this title, the Secretary may use to carry out this subsection not
    more than $2,500,000 for fiscal year 1988 and not more than
    $2,500,000 for fiscal year 1989."
      Subsec. (f)(4). Pub. L. 101-625, Sec. 415, added par. (4).
      1988 - Subsec. (h). Pub. L. 100-628 added subsec. (h).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    42 USC Sec. 1437s                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437s. Public housing homeownership and management
      opportunities

-STATUTE-
    (a) Homeownership opportunities in general
      Low-income families residing in a public housing project shall be
    provided with the opportunity to purchase the dwelling units in the
    project through a qualifying resident management corporation as
    follows:
      (1) Formation of resident management corporation
        As a condition for public housing homeownership - 
          (A) the adult residents of a public housing project shall
        have formed a resident management corporation in accordance
        with regulations and requirements of the Secretary prescribed
        under this section and section 1437r of this title;
          (B) the resident management corporation shall have entered
        into a contract with the public housing agency establishing the
        respective management rights and responsibilities of the
        resident management corporation and the public housing agency;
        and
          (C) the resident management corporation shall have
        demonstrated its ability to manage public housing effectively
        and efficiently for a period of not less than 3 years.
      (2) Homeownership assistance
        (A) The Secretary may provide assistance from the Capital Fund
      to a public housing project in which homeownership activities
      under this section are conducted.
        (B) The Secretary may provide financial assistance to public
      housing agencies, resident management corporations, or resident
      councils that obtain, by contract or otherwise, training,
      technical assistance, and educational assistance as the Secretary
      determines to be necessary to promote homeownership opportunities
      under this section.
        (C) This paragraph shall not have effect after February 4,
      1991. The Secretary may not provide financial assistance under
      subparagraph (B), after such date, unless the Secretary
      determines that such assistance is necessary for the development
      of a homeownership program that was initiated, as determined by
      the Secretary, before November 28, 1990.
      (3) Conditions of purchase by a resident management corporation
        (A) A resident management corporation may purchase from a
      public housing agency one or more multifamily buildings in a
      public housing project following a determination by the Secretary
      that - 
          (i) the resident management corporation has met the
        conditions of paragraph (1);
          (ii) the resident management corporation has applied for and
        is prepared to undertake the ownership, management, and
        maintenance of the building or buildings with continued
        assistance from the Secretary;
          (iii) the public housing agency has held one or more public
        hearings to obtain the views of citizens regarding the proposed
        purchase and, in consultation with the Secretary, has certified
        that the purchase will not interfere with the rights of other
        families residing in public housing, will not harm the
        efficient operation of other public housing, and is in the
        interest of the community;
          (iv) the public housing agency has certified that it has and
        will implement a plan to replace public housing units sold
        under this section within 30 months of the sale, which plan
        shall provide for replacement of 100 percent of the units sold
        under this section by - 
            (I) production, acquisition, or rehabilitation of vacant
          public housing units by the public housing agency; and
            (II) acquisition by the resident management corporation of
          nonpublicly owned, decent, and affordable housing units,
          which the resident management corporation shall operate as
          rental housing subject to tenant income and rent limitations
          comparable to the limitations applicable to public housing;
          and

          (v) the building or buildings meet the housing quality
        standards applicable under section 1437d(f) of this title, and
        the physical condition, management, and operation of the
        building or buildings are sufficient to permit affordable
        homeownership by the families residing in the project.

        (B) The price of a building purchased under the preceding
      sentence shall be approved by the Secretary, in consultation with
      the public housing agency and resident management corporation,
      taking into account the fair market value of the property, the
      ability of resident families to afford and maintain the property,
      and such other factors as the Secretary determines to be
      consistent with increasing the supply of dwelling units
      affordable to very low income families.
        (C) This paragraph shall not have effect after February 4,
      1991. The authority for a resident management corporation to
      purchase 1 or more multifamily buildings in a public housing
      project from a public housing agency shall terminate after such
      date, unless the Secretary determines that such purchase is
      necessary for the development of a homeownership program that was
      initiated, as determined by the Secretary, before November 28,
      1990.
      (4) Conditions of resale
        (A)(i) A resident management corporation may sell a dwelling
      unit or ownership rights in a dwelling unit only to a lower
      income family residing in, or eligible to reside in, public
      housing and only if the Secretary determines that the purchase
      will not interfere with the rights of other families residing in
      the housing project or harm the efficient operation of the
      project, and the family will be able to purchase and maintain the
      property.
        (ii) The sale of dwelling units or ownership rights in dwelling
      units under clause (i) shall be made to families in the following
      order of priority:
          (I) a lower income family residing in the public housing
        project in which the dwelling unit is located;
          (II) a lower income family residing in any public housing
        project within the jurisdiction of the public housing agency
        having jurisdiction with respect to the project in which the
        dwelling unit is located;
          (III) a lower income family receiving Federal housing
        assistance and residing in the jurisdiction of such public
        housing agency; and
          (IV) a lower income family on the waiting list of such public
        housing agency for public housing or assistance under section
        1437f of this title, with priority given in the order in which
        the family appears on the waiting list.

        (iii) Each resident management corporation shall provide each
      family described in clause (ii) with a notice of the eligibility
      of the family to purchase a dwelling unit under this paragraph.
        (B) A purchase under subparagraph (A) may be made under any of
      the following arrangements:
          (i) Limited dividend cooperative ownership.
          (ii) Condominium ownership.
          (iii) Fee simple ownership.
          (iv) Shared appreciation with a public housing agency
        providing financing under paragraph (6).
          (v) Any other arrangement determined by the Secretary to be
        appropriate.

        (C) Property purchased under this section shall be resold only
      to the resident management corporation, a lower income family
      residing in or eligible to reside in public housing or housing
      assisted under section 1437f of this title, or to the public
      housing agency.
        (D) In no case may the owner receive consideration for his or
      her interest in the property that exceeds the total of - 
          (i) the contribution to equity paid by the owner;
          (ii) the value, as determined by such means as the Secretary
        shall determine through regulation, of any improvements
        installed at the expense of the owner during the owner's tenure
        as owner; and
          (iii) the appreciated value determined by an inflation
        allowance at a rate which may be based on a cost of living
        index, an income index, or market index as determined by the
        Secretary through regulation and agreed to by the purchaser and
        the resident management corporation or the public housing
        agency, whichever is appropriate, at the time of initial sale,
        and applied against the contribution to equity; the resident
        management corporation or the public housing agency may, at the
        time of initial sale, enter into an agreement with the owner to
        set a maximum amount which this appreciation may not exceed.

        (E) Upon sale, the resident management corporation or the
      public housing agency, whichever is appropriate, shall ensure
      that subsequent owners are bound by the same limitations on
      resale and further restrictions on equity appreciation.
      (5) Use of proceeds
        Notwithstanding any other provision of this chapter or other
      law to the contrary, proceeds from the sale of a building or
      buildings under paragraph (3) and amounts recaptured under
      paragraph (4) shall be paid to the public housing agency and
      shall be retained and used by the public housing agency only to
      increase the number of public housing units available for
      occupancy. The resident management corporation shall keep and
      make available to the public housing agency and the Secretary all
      records necessary to calculate accurately payments due the local
      housing agency under this section. The Secretary shall not reduce
      or delay payments under other provisions of law as a result of
      amounts made available to the local housing agency under this
      section.
      (6) Financing
        When financing for the purchase of the property is not
      otherwise available for purposes of assisting any purchase by a
      family or resident management corporation under this section, the
      public housing agency involved may make a loan on the security of
      the property involved to the family or resident management
      corporation at a rate of interest that shall not be lower than 70
      percent of the market interest rate for conventional mortgages on
      the date on which the loan is made.
      (7) Capital and operating assistance
        Notwithstanding the purchase of a building in a public housing
      project under this section, the Secretary shall continue to
      provide assistance under section 1437g of this title with respect
      to the project. Such assistance may not exceed the allocation for
      the project under section 1437g of this title.
      (8) Operating Fund allocation
        Amounts from the Operating Fund shall not be available with
      respect to a building after the date of its sale by the public
      housing agency.
    (b) Protection of nonpurchasing families
      (1) Eviction prohibition
        No family residing in a dwelling unit in a public housing
      project may be evicted by reason of the sale of the project to a
      resident management corporation under this section.
      (2) Tenants rights
        Families renting a dwelling unit purchased by a resident
      management corporation shall have all rights provided to tenants
      of public housing under this chapter.
      (3) Rental assistance
        If any family resides in a dwelling unit in a building
      purchased by a resident management corporation, and the family
      decides not to purchase the dwelling unit, the Secretary shall
      offer to provide to the family (at the option of the family)
      tenant-based assistance under section 1437f(o) of this title for
      as long as the family continues to reside in the building. The
      Secretary may adjust the payment standard for such assistance to
      take into account conditions under which the building was
      purchased.
      (4) Rental and relocation assistance
        If any family resides in a dwelling unit in a public housing
      project in which other dwelling units are purchased under this
      section, and the family decides not to purchase the dwelling
      unit, the Secretary shall offer (to be selected by the family, at
      its option) - 
          (A) to assist the family in relocating to a comparable
        appropriate sized dwelling unit in another public housing
        project, and to reimburse the family for their cost of
        relocation; and
          (B) to provide to the family the financial assistance
        necessary to permit the family to stay in the dwelling unit or
        to move to another comparable dwelling unit and to pay no more
        for rent than required under subparagraph (A), (B), or (C) of
        section 1437a(a)(1) of this title.
    (c) Financial assistance for public housing agencies
      The Secretary shall provide to public housing agencies such
    financial assistance as is necessary to permit such agencies to
    carry out the provisions of this section.
    (d) Additional homeownership and management opportunities
      This section shall not apply to the turnkey III, the mutual help,
    or any other homeownership program established under section
    1437d(c)(4)(D) of this title, as in effect before the effective
    date under section 503(a) of the Quality Housing and Work
    Responsibility Act of 1998, and in existence before February 5,
    1988.
    (e) Regulations
      The Secretary shall issue such regulations as may be necessary to
    carry out the provisions of this section. Such regulations may
    establish any additional terms and conditions for homeownership or
    resident management under this section that are determined by the
    Secretary to be appropriate.
    (f) Repealed. Pub. L. 104-66, title I, Sec. 1071(a), Dec. 21, 1995,
      109 Stat. 720
    (g) Limitation
      Any authority of the Secretary under this section to provide
    financial assistance, or to enter into contracts to provide
    financial assistance, shall be effective only to such extent or in
    such amounts as are or have been provided in advance in an
    appropriation Act.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 21, as added Pub. L. 100-
    242, title I, Sec. 123, Feb. 5, 1988, 101 Stat. 1842; renumbered
    title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102 Stat. 681;
    amended Pub. L. 101-625, title IV, Sec. 416, title V, Sec. 572(1),
    Nov. 28, 1990, 104 Stat. 4161, 4236; Pub. L. 102-550, title I, Sec.
    118, Oct. 28, 1992, 106 Stat. 3695; Pub. L. 104-66, title I, Sec.
    1071(a), Dec. 21, 1995, 109 Stat. 720; Pub. L. 105-276, title V,
    Secs. 518(a)(2)(A), 532(b), Oct. 21, 1998, 112 Stat. 2551, 2575.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (d), is section 503(a) of Pub. L.
    105-276, which is set out as an Effective Date of 1998 Amendment
    note under section 1437 of this title.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (a)(2)(A). Pub. L. 105-276, Sec. 532(b)(1)(A),
    substituted "assistance from the Capital Fund" for "comprehensive
    improvement assistance under section 1437l of this title".
      Subsec. (a)(3)(A)(v). Pub. L. 105-276, Sec. 532(b)(1)(B),
    substituted "housing quality standards applicable under section
    1437d(f) of this title" for "minimum safety and livability
    standards applicable under section 1437l of this title".
      Subsec. (a)(7). Pub. L. 105-276, Sec. 532(b)(1)(C), in heading,
    substituted "Capital and operating assistance" for "Annual
    contributions", in first sentence, substituted "provide assistance
    under section 1437g of this title" for "pay annual contributions",
    and at end, substituted "Such assistance may not exceed the
    allocation for the project under section 1437g of this title" for
    "Such contributions may not exceed the maximum contributions
    authorized in section 1437c(a) of this title."
      Subsec. (a)(8). Pub. L. 105-276, Sec. 532(b)(1)(D), in heading
    substituted "fund allocation" for "subsidies" and in text
    substituted "Amounts from the Operating Fund" for "Operating
    subsidies".
      Subsec. (b)(3). Pub. L. 105-276, Sec. 532(b)(2), in first
    sentence, substituted "tenant-based assistance" for "a certificate
    under section 1437f(b)(1) of this title or a housing voucher" and,
    in second sentence, substituted "payment standard for such
    assistance" for "fair market rent for such certificate".
      Subsec. (d). Pub. L. 105-276, Sec. 532(b)(3), inserted ", as in
    effect before the effective date under section 503(a) of the
    Quality Housing and Work Responsibility Act of 1998," after
    "section 1437d(c)(4)(D) of this title".
      Pub. L. 105-276, Sec. 518(a)(2)(A), struck out "section 1437c(h)
    of this title or" after "program established under".
      1995 - Subsec. (f). Pub. L. 104-66 struck out heading and text of
    subsec. (f). Text read as follows: "The Secretary shall annually
    submit to the Congress a report setting forth - 
        "(1) the number, type, and cost of units sold;
        "(2) the income, race, gender, children, and other
      characteristics of families purchasing or moving and not
      purchasing;
        "(3) the amount and type of financial assistance provided;
        "(4) the need for subsidy to ensure continued affordability and
      meet future maintenance and repair costs;
        "(5) any need for the development of additional public housing
      dwelling units as a result of the sale of public housing dwelling
      units under this section;
        "(6) recommendations of the Secretary for additional budget
      authority to carry out such development;
        "(7) recommendations of the Secretary to ensure decent homes
      and decent neighborhoods for low-income families; and
        "(8) the recommendations of the Secretary for statutory and
      regulatory improvements to the program."
      1992 - Subsec. (a)(2)(C), (3)(C). Pub. L. 102-550 substituted
    "February 4, 1991" for "the effective date of the regulations
    implementing subchapter II-A of this chapter" and "after such date"
    for "after such effective date" and made technical amendment to
    reference to November 28, 1990, to reflect correction of
    corresponding provisions of original act.
      1990 - Subsec. (a). Pub. L. 101-625, Sec. 572(1), which directed
    substitution of "low-income families" for "lower income families",
    was executed by substituting "Low-income families" for "Lower
    income families" in introductory provisions to reflect the probable
    intent of Congress.
      Subsec. (a)(2)(B). Pub. L. 101-625, Sec. 416(1), amended subpar.
    (B) generally. Prior to amendment, subpar. (B) read as follows:
    "The Secretary, and the public housing agency owning and operating
    a public housing project, shall provide such training, technical
    assistance, and educational assistance as the Secretary determines
    to be necessary to prepare the families residing in the project,
    and any resident management corporation established under paragraph
    (1), for homeownership."
      Subsec. (a)(2)(C). Pub. L. 101-625, Sec. 416(2), substituted "the
    effective date of the regulations implementing subchapter II-A of
    this chapter. The Secretary may not provide financial assistance
    under subparagraph (B), after such effective date, unless the
    Secretary determines that such assistance is necessary for the
    development of a homeownership program that was initiated, as
    determined by the Secretary, before November 28, 1990" for
    "September 30, 1990".
      Subsec. (a)(3)(C). Pub. L. 101-625, Sec. 416(3), substituted "the
    effective date of the regulations implementing subchapter II-A of
    this chapter. The authority for a resident management corporation
    to purchase 1 or more multifamily buildings in a public housing
    project from a public housing agency shall terminate after such
    effective date, unless the Secretary determines that such purchase
    is necessary for the development of a homeownership program that
    was initiated, as determined by the Secretary, before November 28,
    1990" for "September 30, 1990".
      Subsec. (f)(7). Pub. L. 101-625, Sec. 572(1), substituted "low-
    income families" for "lower income families".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

-End-



-CITE-
    42 USC Sec. 1437t                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437t. Authority to convert public housing to vouchers

-STATUTE-
    (a) Authority
      A public housing agency may convert any public housing project
    (or portion thereof) owned by the public housing agency to tenant-
    based assistance, but only in accordance with the requirements of
    this section.
    (b) Conversion assessment
      (1) In general
        To convert public housing under this section, a public housing
      agency shall conduct an assessment of the public housing that
      includes - 
          (A) a cost analysis that demonstrates whether or not the cost
        (both on a net present value basis and in terms of new budget
        authority requirements) of providing tenant-based assistance
        under section 1437f of this title for the same families in
        substantially similar dwellings over the same period of time is
        less expensive than continuing public housing assistance in the
        public housing project for the remaining useful life of the
        project;
          (B) an analysis of the market value of the public housing
        project both before and after rehabilitation, and before and
        after conversion;
          (C) an analysis of the rental market conditions with respect
        to the likely success of the use of tenant-based assistance
        under section 1437f of this title in that market for the
        specific residents of the public housing project, including an
        assessment of the availability of decent and safe dwellings
        renting at or below the payment standard established for tenant-
        based assistance under section 1437f of this title by the
        agency;
          (D) the impact of the conversion to tenant-based assistance
        under this section on the neighborhood in which the public
        housing project is located; and
          (E) a plan that identifies actions, if any, that the public
        housing agency would take with regard to converting any public
        housing project or projects (or portions thereof) of the public
        housing agency to tenant-based assistance.
      (2) Timing
        Not later than 2 years after the effective date under section
      503(a) of the Quality Housing and Work Responsibility Act of
      1998, each public housing agency shall conduct an assessment
      under paragraph (1) or (3) of the status of each public housing
      project owned by such agency and shall submit to the Secretary
      such assessment. A public housing agency may otherwise undertake
      an assessment under this subsection at any time and for any
      public housing project (or portion thereof) owned by the agency.
      A public housing agency may update a previously conducted
      assessment for a project (or portion thereof) for purposes of
      compliance with the one-year limitation under subsection (c) of
      this section.
      (3) Streamlined assessment
        At the discretion of the Secretary or at the request of a
      public housing agency, the Secretary may waive any or all of the
      requirements of paragraph (1) or (3) or otherwise require a
      streamlined assessment with respect to any public housing project
      or class of public housing projects.
    (c) Criteria for implementation of conversion plan
      A public housing agency may convert a public housing project (or
    portion thereof) owned by the agency to tenant-based assistance
    only pursuant to a conversion assessment under subsection (b) of
    this section that one year (!1) and that demonstrates that the
    conversion - 

        (1) will not be more expensive than continuing to operate the
      public housing project (or portion thereof) as public housing;
        (2) will principally benefit the residents of the public
      housing project (or portion thereof) to be converted, the public
      housing agency, and the community; and
        (3) will not adversely affect the availability of affordable
      housing in such community.
    (d) Conversion plan requirement
      A public housing project may be converted under this section to
    tenant-based assistance only as provided in a conversion plan under
    this subsection, which has not been disapproved by the Secretary
    pursuant to subsection (e) of this section. Each conversion plan
    shall - 
        (1) be developed by the public housing agency, in consultation
      with the appropriate public officials, with significant
      participation by the residents of the project (or portion
      thereof) to be converted;
        (2) be consistent with and part of the public housing agency
      plan;
        (3) describe the conversion and future use or disposition of
      the project (or portion thereof) and include an impact analysis
      on the affected community;
        (4) provide that the public housing agency shall - 
          (A) notify each family residing in a public housing project
        (or portion) to be converted under the plan 90 days prior to
        the displacement date except in cases of imminent threat to
        health or safety, consistent with any guidelines issued by the
        Secretary governing such notifications, that - 
            (i) the public housing project (or portion) will be removed
          from the inventory of the public housing agency; and
            (ii) each family displaced by such action will be offered
          comparable housing - 
              (I) that meets housing quality standards;
              (II) that is located in an area that is generally not
            less desirable than the location of the displaced person's
            housing; and
              (III) which may include - 
                (aa) tenant-based assistance, except that the
              requirement under this clause regarding offering of
              comparable housing shall be fulfilled by use of tenant-
              based assistance only upon the relocation of such family
              into such housing;
                (bb) project-based assistance; or
                (cc) occupancy in a unit operated or assisted by the
              public housing agency at a rental rate paid by the family
              that is comparable to the rental rate applicable to the
              unit from which the family is vacated;

          (B) provide any necessary counseling for families displaced
        by such action;
          (C) ensure that, if the project (or portion) converted is
        used as housing after such conversion, each resident may choose
        to remain in their dwelling unit in the project and use the
        tenant-based assistance toward rent for that unit; and
          (D) provide any actual and reasonable relocation expenses for
        families displaced by the conversion; and

        (5) provide that any proceeds to the agency from the conversion
      will be used subject to the limitations that are applicable under
      section 1437p(a)(5) of this title to proceeds resulting from the
      disposition or demolition of public housing.
    (e) Review and approval of conversion plans
      The Secretary shall disapprove a conversion plan only if - 
        (1) the plan is plainly inconsistent with the conversion
      assessment for the agency developed under subsection (b) of this
      section;
        (2) there is reliable information and data available to the
      Secretary that contradicts that conversion assessment; or
        (3) the plan otherwise fails to meet the requirements of this
      section.
    (f) Tenant-based assistance
      To the extent approved by the Secretary, the funds used by the
    public housing agency to provide tenant-based assistance under
    section 1437f of this title shall be added to the annual
    contribution contract administered by the public housing agency.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 22, as added Pub. L. 101-
    625, title V, Sec. 515(a), Nov. 28, 1990, 104 Stat. 4196; amended
    Pub. L. 102-550, title I, Sec. 119, Oct. 28, 1992, 106 Stat. 3695;
    Pub. L. 105-276, title V, Sec. 533(a), Oct. 21, 1998, 112 Stat.
    2576.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (b)(2), is section 503(a) of Pub.
    L. 105-276, which is set out as an Effective Date of 1998 Amendment
    note under section 1437 of this title.


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-276 amended section generally. Prior to
    amendment, section related to award of grants to public housing
    agencies to adapt public housing to help families gain better
    access to educational and job opportunities, use of funds for
    supportive services, development of facilities to accommodate them,
    and employment of service coordinators, applications, selection for
    grants, reports to Secretary and Congress, and appropriations for
    fiscal years 1993 and 1994.
      1992 - Subsec. (k). Pub. L. 102-550 amended subsec. (k)
    generally, substituting present provisions for provisions
    authorizing $25,000,000 in fiscal year 1991 and $26,100,000 in
    fiscal year 1992.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                             SAVINGS PROVISION                         
      Pub. L. 105-276, title V, Sec. 533(b), Oct. 21, 1998, 112 Stat.
    2578, provided that: "The amendment made by subsection (a)
    [amending this section] shall not affect any contract or other
    agreement entered into under section 22 of the United States
    Housing Act of 1937 [42 U.S.C. 1437t], as such section existed
    immediately before the effective date under section 503(a) of the
    Quality Housing and Work Responsibility Act of 1998 [Pub. L. 105-
    276, set out as an Effective Date of 1998 Amendment note under
    section 1437 of this title]."

         PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION     
      Section 521 of Pub. L. 101-625, as amended by Pub. L. 102-550,
    title I, Sec. 125, Oct. 28, 1992, 106 Stat. 3710, which directed
    Secretary of Housing and Urban Development to carry out program to
    demonstrate effectiveness of providing grants to public housing
    agencies to assist such agencies in providing facilities for making
    one-stop perinatal services programs available for pregnant women
    residing in public housing, set forth preferences, limitation on
    grant amount, and program requirements, and required report to
    Congress not later than 1 year after amounts were first made
    available setting forth findings and conclusions and including
    recommendations with respect to establishment of permanent program,
    was repealed by Pub. L. 105-276, title V, Sec. 582(a)(9), Oct. 21,
    1998, 112 Stat. 2644.

-FOOTNOTE-
    (!1) So in original.


-End-



-CITE-
    42 USC Sec. 1437u                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437u. Family Self-Sufficiency program

-STATUTE-
    (a) Purpose
      The purpose of the Family Self-Sufficiency program established
    under this section is to promote the development of local
    strategies to coordinate use of public housing and assistance under
    the certificate and voucher programs under section 1437f of this
    title with public and private resources, to enable eligible
    families to achieve economic independence and self-sufficiency.
    (b) Establishment of program
      (1) Required programs
        Except as provided in paragraph (2), the Secretary shall carry
      out a program under which each public housing agency that
      administers assistance under subsection (b) or (o) of section
      1437f of this title or makes available new public housing
      dwelling units - 
          (A) may, during fiscal years 1991 and 1992, carry out a local
        Family Self-Sufficiency program under this section;
          (B) effective on October 1, 1992, the Secretary shall require
        each such agency to carry out a local Family Self-Sufficiency
        program under this section, subject to the limitations in
        paragraph (4); and
          (C) effective on October 21, 1998, to the extent an agency is
        not required to carry out a program pursuant to subparagraph
        (B) of this paragraph and paragraph (4), may carry out a local
        Family Self-Sufficiency program under this section.

      Each local program shall, subject to availability of supportive
      services, include an action plan under subsection (g) of this
      section and shall provide comprehensive supportive services for
      families electing to participate in the program. In carrying out
      the self-sufficiency program under this section, the Secretary
      shall consult with the heads of other appropriate Federal
      agencies and provide for cooperative actions and funding
      agreements with such agencies. Each public housing agency
      administering an approved local program may employ a service
      coordinator to administer the local program.
      (2) Exception
        The Secretary shall not require a public housing agency to
      carry out a local program under subsection (a) of this section if
      the public housing agency provides certification (as such term is
      defined under title I of the Cranston-Gonzalez National
      Affordable Housing Act [42 U.S.C. 12701 et seq.]) to the
      Secretary, that the establishment and operation of the program is
      not feasible because of local circumstances, which may include - 
          (A) lack of supportive services accessible to eligible
        families, which shall include insufficient availability of
        resources for programs under title I of the Workforce
        Investment Act of 1998 [29 U.S.C. 2801 et seq.] or the Job
        Opportunities and Basic Skills Training Program under part F
        (!1) of title IV of the Social Security Act;

          (B) lack of funding for reasonable administrative costs;
          (C) lack of cooperation by other units of State or local
        government; or
          (D) any other circumstances that the Secretary may consider
        appropriate.

      In allocating assistance available for reservation under this
      chapter, the Secretary may not refuse to provide assistance or
      decrease the amount of assistance that would otherwise be
      provided to any public housing agency because the agency has
      provided a certification under this paragraph or because,
      pursuant to a certification, the agency has failed to carry out a
      self-sufficiency program.
      (3) Scope
        Subject to paragraph (4), each public housing agency required
      to carry out a local program under this section shall make the
      following housing assistance available under the program in each
      fiscal year:
          (A) Certificate and voucher assistance under section 1437f(b)
        and (o) of this title, in an amount equivalent to the increase
        for such year in the number of families so assisted by the
        agency (as compared to the preceding year).
          (B) Public housing dwelling units, in the number equal to the
        increase for such year in units made available by the agency
        (as compared to the preceding year).

      Each such public housing agency shall continue to operate a local
      program for the number of families determined under this
      paragraph subject only to the availability under appropriations
      Acts of sufficient amounts for assistance.
      (4) Termination of requirement to expand program
        (A) In general
          Notwithstanding any other provision of law, a public housing
        agency that receives incremental assistance under subsection
        (b) or (o) of section 1437f of this title or that makes
        available new public housing dwelling units shall not be
        required, after October 21, 1998, to provide assistance under a
        local Family Self-Sufficiency program under this section to any
        families not required to be assisted under subparagraph (B) of
        this paragraph.
        (B) Continuation of existing obligations
          (i) In general
            Each public housing agency that, before October 21, 1998,
          was required under this section to carry out a local Family
          Self-Sufficiency program shall continue to operate such local
          program for the number of families determined under paragraph
          (3), subject only to the availability under appropriations
          Acts of sufficient amounts for housing assistance.
          (ii) Reduction
            The number of families for which an agency is required
          under clause (i) to operate such local program shall be
          decreased by one for each family that, after October 21,
          1998, fulfills its obligations under the contract of
          participation.
      (5) Nonparticipation
        Assistance under the certificate or voucher programs under
      section 1437f of this title for a family that elects not to
      participate in a local program shall not be delayed by reason of
      such election.
    (c) Contract of participation
      (1) In general
        Each public housing agency carrying out a local program under
      this section shall enter into a contract with each leaseholder
      receiving assistance under the certificate and voucher programs
      of the public housing agency under section 1437f of this title or
      residing in public housing administered by the agency, that
      elects to participate in the self-sufficiency program under this
      section. The contract shall set forth the provisions of the local
      program, shall establish specific interim and final goals by
      which compliance with and performance of the contract may be
      measured, and shall specify the resources and supportive services
      to be made available to the participating family pursuant to
      paragraph (2) and the responsibilities of the participating
      family. The contract shall provide that the public housing agency
      may terminate or withhold assistance under section 1437f of this
      title and services under paragraph (2) of this subsection if the
      public housing agency determines, through an administrative
      grievance procedure in accordance with the requirements of
      section 1437d(k) of this title, that the family has failed to
      comply with the requirements of the contract without good cause
      (which may include a loss or reduction in access to supportive
      services, or a change in circumstances that makes the family or
      individual unsuitable for participation).
      (2) Supportive services
        A local program under this section shall provide appropriate
      supportive services under this paragraph to each participating
      family entering into a contract of participation under paragraph
      (1). The supportive services shall be provided during the period
      the family is receiving assistance under section 1437f of this
      title or residing in public housing, and may include - 
          (A) child care;
          (B) transportation necessary to receive services;
          (C) remedial education;
          (D) education for completion of high school;
          (E) job training and preparation;
          (F) substance abuse treatment and counseling;
          (G) training in homemaking and parenting skills;
          (H) training in money management;
          (I) training in household management; and
          (J) any other services and resources appropriate to assist
        eligible families to achieve economic independence and self-
        sufficiency.
      (3) Term and extension
        Each family participating in a local program shall be required
      to fulfill its obligations under the contract of participation
      not later than 5 years after entering into the contract. The
      public housing agency shall extend the term of the contract for
      any family that requests an extension, upon a finding of the
      agency of good cause.
      (4) Employment and counseling
        The contract of participation shall require the head of the
      participating family to seek suitable employment during the term
      of the contract. The public housing agency may, during such
      period, provide counseling for the family with respect to
      affordable rental and homeownership opportunities in the private
      housing market and money management counseling.
    (d) Incentives for participation
      (1) Maximum rents
        During the term of the contract of participation, the amount of
      rent paid by any participating family whose monthly adjusted
      income does not exceed 50 percent of the area median income for
      occupancy in the public housing unit or dwelling unit assisted
      under section 1437f of this title may not be increased on the
      basis of any increase in the earned income of the family, unless
      the increase results in an income exceeding 50 percent of the
      area median income. The Secretary shall provide for increased
      rents for participating families whose incomes are between 50 and
      80 percent of the area median income, so that any family whose
      income increases to 80 percent or more of the area median income
      pays 30 percent of the family's monthly adjusted income for rent.
      Upon completion of the contract of participation, if the
      participating family continues to qualify for and reside in a
      dwelling unit in public housing or housing assisted under section
      1437f of this title, the rent charged the participating family
      shall be increased (if applicable) to 30 percent of the monthly
      adjusted income of the family.
      (2) Escrow savings accounts
        For each participating family whose monthly adjusted income is
      less than 50 percent of the area median income, the difference
      between 30 percent of the adjusted income of the participating
      family and the amount of rent paid by a participating family
      shall be placed in an interest-bearing escrow account established
      by the public housing agency on behalf of the participating
      family. For families with incomes between 50 and 80 percent of
      the area median income, the Secretary shall provide for escrow of
      the difference between 30 percent of the family income and the
      amount paid by the family for rent as determined by the Secretary
      under paragraph (1). The Secretary shall not escrow any amounts
      for any family whose adjusted income exceeds 80 percent of the
      area median income. Amounts in the escrow account may be
      withdrawn by the participating family after the family ceases to
      receive income assistance under Federal or State welfare
      programs, upon successful performance of the obligations of the
      family under the contract of participation entered into by the
      family under subsection (c) of this section, as determined
      according to the specific goals and terms included in the
      contract, and under other circumstances in which the Secretary
      determines an exception for good cause is warranted. A public
      housing agency establishing such escrow accounts may make certain
      amounts in the accounts available to the participating families
      before full performance of the contract obligations based on
      compliance with, and completion of, specific interim goals
      included in the contract; except that any such amounts shall be
      used by the participating families for purposes consistent with
      the contracts of participation, as determined by the public
      housing agency.
      (3) Plan
        Each public housing agency carrying out a local program under
      this section shall establish a plan to offer incentives to
      families to encourage families to participate in the program. The
      plan shall require the establishment of escrow savings accounts
      under paragraph (2) and may include any other incentives designed
      by the public housing agency.
    (e) Effect of increases in family income
      Any increase in the earned income of a family during the
    participation of the family in a local program established under
    this section may not be considered as income or a resource for
    purposes of eligibility of the family for other benefits, or amount
    of benefits payable to the family, under any program administered
    by the Secretary, unless the income of the family equals or exceeds
    80 percent of the median income of the area (as determined by the
    Secretary with adjustments for smaller and larger families).
    (f) Program coordinating committee
      (1) Functions
        Each public housing agency carrying out a local program under
      this section shall, in consultation with the chief executive
      officer of the unit of general local government, develop an
      action plan under subsection (g) of this section, carry out
      activities under the local program, and secure commitments of
      public and private resources through a program coordinating
      committee established by the public housing agency under this
      subsection.
      (2) Membership
        The program coordinating committee may consist of
      representatives of the public housing agency, the unit of general
      local government, the local agencies (if any) responsible for
      carrying out programs under title I of the Workforce Investment
      Act of 1998 [29 U.S.C. 2801 et seq.] or the Job Opportunities and
      Basic Skills Training Program under part F (!2) of title IV of
      the Social Security Act, and other organizations, such as other
      State and local welfare and employment agencies, public and
      private education or training institutions, nonprofit service
      providers, and private businesses. The public housing agency may,
      in consultation with the chief executive officer of the unit of
      general local government, utilize an existing entity as the
      program coordinating committee if it meets the requirements of
      this subsection.

    (g) Action plan
      (1) Required submission
        The Secretary shall require each public housing agency
      participating in the self-sufficiency program under this section
      to submit to the Secretary, for approval by the Secretary, an
      action plan under this subsection in such form and in accordance
      with such procedures as the Secretary shall require.
      (2) Development of plan
        In developing the plan, the public housing agency shall consult
      with the chief executive officer of the applicable unit of
      general local government, the program coordinating committee
      established under subsection (f) of this section, representatives
      of residents of the public housing, any local agencies
      responsible for programs under title I of the Workforce
      Investment Act of 1998 [29 U.S.C. 2801 et seq.] or the Job
      Opportunities and Basic Skills Training Program under part F (!2)
      of title IV of the Social Security Act, other appropriate
      organizations (such as other State and local welfare and
      employment or training institutions, child care providers,
      nonprofit service providers, and private businesses), and any
      other public and private service providers affected by the
      operation of the local program.
      (3) Contents of plan
        The Secretary shall require that the action plan contain at a
      minimum - 
          (A) a description of the size, characteristics, and needs of
        the population of the families expected to participate in the
        local self-sufficiency program;
          (B) a description of the number of eligible participating
        families who can reasonably be expected to receive supportive
        services under the program, based on available and anticipated
        Federal, State, local, and private resources;
          (C) a description of the services and activities under
        subsection (c)(2) of this section to be provided to families
        receiving assistance under this section through the section 8
        [42 U.S.C. 1437f] and public housing programs, which shall be
        provided by both public and private resources;
          (D) a description of the incentives pursuant to subsection
        (d) of this section offered by the public housing agency to
        families to encourage participation in the program;
          (E) a description of how the local program will deliver
        services and activities according to the needs of the families
        participating in the program;
          (F) a description of both the public and private resources
        that are expected to be made available to provide the
        activities and services under the local program;
          (G) a timetable for implementation of the local program;
          (H) assurances satisfactory to the Secretary that development
        of the services and activities under the local program has been
        coordinated with the Job Opportunities and Basic Skills
        Training Program under part F (!2) of title IV of the Social
        Security Act and programs under title I of the Workforce
        Investment Act of 1998 [29 U.S.C. 2801 et seq.] and any other
        relevant employment, child care, transportation, training, and
        education programs in the applicable area, and that
        implementation will continue to be coordinated, in order to
        avoid duplication of services and activities; and
          (I) assurances satisfactory to the Secretary that
        nonparticipating families will retain their rights to public
        housing or section 8 [42 U.S.C. 1437f] assistance
        notwithstanding the provisions of this section.
    (h) Allowable public housing agency administrative fees and costs
      (1) Fees under section 1437f
        The Secretary shall establish a fee under section 1437f(q) of
      this title for the costs incurred in administering the provision
      of certificate and voucher assistance under section 1437f of this
      title through the self-sufficiency program under this section.
      The fee shall be the fee in effect under such section on June 1,
      1990, except that for purposes of the fee under this paragraph
      the applicable dollar amount for preliminary expenses under
      section 1437f(q)(2)(A)(i) (!2) of this title shall, subject to
      approval in appropriations Acts, be $300. Upon the submission by
      the Comptroller General of the United States of the report
      required under section 554(b) of the Cranston-Gonzalez National
      Affordable Housing Act, the Secretary shall revise the fee under
      this paragraph, taking into consideration the report of the
      Comptroller General.
      (2) Performance funding system
        Notwithstanding any provision of section 1437g of this title,
      the Secretary shall provide for inclusion under the performance
      funding system under section 1437g of this title of reasonable
      and eligible administrative costs (including the costs of
      employing a full-time service coordinator) incurred by public
      housing agencies carrying out local programs under this section.
      The Secretary shall include an estimate of the administrative
      costs likely to be incurred by participating public housing
      agencies in the annual budget request for the Department of
      Housing and Urban Development for public housing operating
      assistance under section 1437g of this title and shall include a
      request for such amounts in the budget request. Of any amounts
      appropriated under section 1437g(c) of this title for fiscal year
      1993, $25,000,000 is authorized to be used for costs under this
      paragraph, and of any amounts appropriated under such section for
      fiscal year 1994, $25,900,000 is authorized to be used for costs
      under this paragraph.
    (i) Public housing agency incentive award allocation
      (1) In general
        The Secretary shall carry out a competition for budget
      authority for certificate and voucher assistance under section
      1437f of this title and public housing development assistance
      under section 1437c(a)(2) of this title reserved under paragraph
      (4) and shall allocate such budget authority to public housing
      agencies pursuant to the competition.
      (2) Criteria
        The competition shall be based on successful and outstanding
      implementation by public housing agencies of a local self-
      sufficiency program under this section. The Secretary shall
      establish perfomance (!3) criteria for public housing agencies
      carrying out such local programs and the Secretary shall cause
      such criteria to be published in the Federal Register.

      (3) Use
        Each public housing agency that receives an allocation of
      budget authority under this subsection shall use such authority
      to provide assistance under the local self-sufficiency program
      established by the public housing agency under this section.
      (4) Reservation of budget authority
        Notwithstanding section 1439(d) of this title, the Secretary
      shall reserve for allocation under this subsection not less than
      10 percent of the portion of budget authority appropriated in
      each of fiscal years 1991 and 1992 for section 1437f of this
      title that is available for purposes of providing assistance
      under the existing housing certificate and housing voucher
      programs for families not currently receiving assistance, and not
      less than 10 percent of the public housing development assistance
      available in such fiscal years for the purpose under section
      1437c(a)(2) of this title (excluding amounts for major
      reconstruction of obsolete projects).
    (j) On-site facilities
      Each public housing agency carrying out a local program may,
    subject to the approval of the Secretary, make available and
    utilize common areas or unoccupied public housing units in public
    housing projects administered by the agency for the provision of
    supportive services under the local program. The use of the
    facilities of a public housing agency under this subsection shall
    not affect the amount of assistance provided to the agency under
    section 1437g of this title.
    (k) Flexibility
      In establishing and carrying out the self-sufficiency program
    under this section, the Secretary shall allow public housing
    agencies, units of general local government, and other
    organizations discretion and flexibility, to the extent
    practicable, in developing and carrying out local programs.
    (l) Reports
      (1) To Secretary
        Each public housing agency that carries out a local self-
      sufficiency program approved by the Secretary under this section
      shall submit to the Secretary, not less than annually a report
      regarding the program. The report shall include - 
          (A) a description of the activities carried out under the
        program;
          (B) a description of the effectiveness of the program in
        assisting families to achieve economic independence and self-
        sufficiency;
          (C) a description of the effectiveness of the program in
        coordinating resources of communities to assist families to
        achieve economic independence and self-sufficiency; and
          (D) any recommendations of the public housing agency or the
        appropriate local program coordinating committee for
        legislative or administrative action that would improve the
        self-sufficiency program carried out by the Secretary and
        ensure the effectiveness of the program.
      (2) HUD annual report
        The Secretary shall submit to the Congress annually, as a part
      of the report of the Secretary under section 3536 of this title,
      a report summarizing the information submitted by public housing
      agencies under paragraph (1). The report under this paragraph
      shall also include any recommendations of the Secretary for
      improving the effectiveness of the self-sufficiency program under
      this section.
    (m) GAO report
        The Comptroller General of the United States may submit to the
      Congress reports under this subsection evaluating and describing
      the Family Self-Sufficiency program carried out by the Secretary
      under this section.
    (n) Definitions
      As used in this section:
        (1) The term "contract of participation" means a contract under
      subsection (c) of this section entered into by a public housing
      agency carrying out a local program under this section and a
      participating family.
        (2) The term "earned income" means income from wages, tips,
      salaries, and other employee compensation, and any earnings from
      self-employment. The term does not include any pension or
      annuity, transfer payments, or any cash or in-kind benefits.
        (3) The term "eligible family" means a family whose head of
      household is not elderly, disabled, pregnant, a primary caregiver
      for children under the age of 3, or for whom the family self-
      sufficiency program would otherwise be unsuitable.
      Notwithstanding the preceding sentence, a public housing agency
      may enroll such families if they choose to participate in the
      program.
        (4) The term "local program" means a program for providing
      supportive services to participating families carried out by a
      public housing agency within the jurisdiction of the public
      housing agency.
        (5) The term "participating family" means a family that resides
      in public housing or housing assisted under section 1437f of this
      title and elects to participate in a local self-sufficiency
      program under this section.
        (6) The term "vacant unit" means a dwelling unit that has been
      vacant for not less than 9 consecutive months.
    (o) Effective date and regulations
      (1) Regulations
        Not later than the expiration of the 180-day period beginning
      on November 28, 1990, the Secretary shall by notice establish any
      requirements necessary to carry out this section. Such
      requirements shall be subject to section 553 of title 5. The
      Secretary shall issue final regulations based on the notice not
      later than the expiration of the 8-month period beginning on the
      date of the notice. Such regulations shall become effective upon
      the expiration of the 1-year period beginning on the date of the
      publication of the final regulations.
      (2) Repealed. Pub. L. 104-330, title V, Sec. 501(b)(8), Oct. 26,
        1996, 110 Stat. 4042

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 23, as added Pub. L. 101-
    625, title V, Sec. 554(a), Nov. 28, 1990, 104 Stat. 4225; amended
    Pub. L. 102-550, title I, Secs. 106, 185(b), Oct. 28, 1992, 106
    Stat. 3684, 3747; Pub. L. 104-316, title I, Sec. 122(l), Oct. 19,
    1996, 110 Stat. 3837; Pub. L. 104-330, title V, Sec. 501(b)(8),
    Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105-276, title V, Sec.
    509(a), Oct. 21, 1998, 112 Stat. 2530; Pub. L. 105-277, div. A,
    Sec. 101(f) [title VIII, Sec. 405(d)(31), (f)(23)], Oct. 21, 1998,
    112 Stat. 2681-337, 2681-425, 2681-433.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsec. (b)(2), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat.
    4079. Title I of the Act is classified generally to subchapter I
    (Sec. 12701 et seq.) of chapter 130 of this title. Section 554(b)
    of the Act is set out below. For complete classification of this
    Act to the Code, see Short Title note set out under section 12701
    of this title and Tables.
      The Workforce Investment Act of 1998, referred to in subsecs.
    (b)(2)(A), (f)(2), and (g)(2), (3)(H), is Pub. L. 105-220, Aug. 7,
    1998, 112 Stat. 936, as amended. Title I of the Act is classified
    principally to chapter 30 (Sec. 2801 et seq.) of Title 29, Labor.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 9201 of Title 20, Education, and
    Tables.
      The Social Security Act, referred to in subsecs. (b)(2)(A),
    (f)(2), and (g)(2), (3)(H), is act Aug. 14, 1935, ch. 531, 49 Stat.
    620, as amended. Part F of title IV of the Act was classified
    generally to part F (Sec. 681 et seq.) of subchapter IV of chapter
    7 of this title, prior to repeal by Pub. L. 104-193, title I, Sec.
    108(e), Aug. 22, 1996, 110 Stat. 2167. For complete classification
    of this Act to the Code, see section 1305 of this title and Tables.
      Section 1437f(q)(2)(A) of this title, referred to in subsec.
    (h)(1), was amended generally by Pub. L. 105-276, title V, Sec.
    547, Oct. 21, 1998, 112 Stat. 2605, and, as so amended, does not
    contain a cl. (i).
      Section 1437g(c) of this title, referred to in subsec. (h)(2),
    was amended generally by Pub. L. 105-276, title V, Sec. 519(a),
    Oct. 21, 1998, 112 Stat. 2551, and, as so amended, does not relate
    to appropriations for fiscal years 1993 and 1994.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b)(1)(A). Pub. L. 105-276, Sec. 509(a)(1)(A)(i),
    struck out "and" at end.
      Subsec. (b)(1)(B). Pub. L. 105-276, Sec. 509(a)(1)(A)(ii),
    substituted ", subject to the limitations in paragraph (4); and"
    for period at end.
      Subsec. (b)(1)(C). Pub. L. 105-276, Sec. 509(a)(1)(A)(iii), added
    subpar. (C).
      Subsec. (b)(2)(A). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.
    405(f)(23)(A)], struck out "the Job Training Partnership Act or"
    after "programs under".
      Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(31)(A)],
    substituted "the Job Training Partnership Act or title I of the
    Workforce Investment Act of 1998 or the" for "the Job Training
    Partnerships Act or the".
      Subsec. (b)(3). Pub. L. 105-276, Sec. 509(a)(1)(B), substituted
    "Subject to paragraph (4), each" for "Each" in introductory
    provisions.
      Subsec. (b)(4), (5). Pub. L. 105-276, Sec. 509(a)(1)(C), (D),
    added par. (4) and redesignated former par. (4) as (5).
      Subsec. (d)(3). Pub. L. 105-276, Sec. 509(a)(2), struck out
    heading and text of par. (3) relating to use of escrow savings
    accounts. Text read as follows: "Notwithstanding paragraph (3), a
    family that uses assistance under section 1437f(y) of this title to
    purchase a dwelling may use up to 50 percent of the amount in its
    escrow account established under paragraph (3) for a downpayment on
    the dwelling. In addition, after the family purchases the dwelling,
    the family may use any amounts remaining in the escrow account to
    cover the costs of major repair and replacement needs of the
    dwelling. If a family defaults in connection with the loan to
    purchase a dwelling and the mortgage is foreclosed, the remaining
    amounts in the escrow account shall be recaptured by the
    Secretary."
      Subsec. (f)(1). Pub. L. 105-276, Sec. 509(a)(3), inserted
    "carrying out a local program under this section" after "Each
    public housing agency".
      Subsec. (f)(2). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.
    405(f)(23)(B)], struck out "the Job Training Partnership Act or"
    after "programs under".
      Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(31)(B)],
    substituted "programs under the Job Training Partnership Act or
    title I of the Workforce Investment Act of 1998 or the" for
    "programs under the Job Training Partnership Act and the".
      Subsec. (g)(2). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.
    405(f)(23)(C)(i)], struck out "the Job Training Partnership Act or"
    after "programs under".
      Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(31)(C)(i)],
    substituted "programs under the Job Training Partnership Act or
    title I of the Workforce Investment Act of 1998 or the" for "for
    programs under the Job Training Partnership Act and the".
      Subsec. (g)(3)(H). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.
    405(f)(23)(C)(ii)], struck out "the Job Training Partnership Act
    or" after "programs under".
      Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.
    405(d)(31)(C)(ii)], substituted "programs under the Job Training
    Partnership Act or title I of the Workforce Investment Act of 1998
    and any other" for "program under the Job Training Partnership Act
    and any other".
      1996 - Subsec. (m). Pub. L. 104-316 substituted "may" for "shall"
    after "United States", struck out "(1) In general. - " before "The
    Comptroller General", and struck out par. (2) which read as
    follows:
      "(2) Timing. - The Comptroller General shall submit the following
    reports under this subsection:
        "(A) An interim report, not later than the expiration of the 2-
      year period beginning on November 28, 1990.
        "(B) A final report, not later than the expiration of the 5-
      year period beginning on November 28, 1990."
      Subsec. (o)(2). Pub. L. 104-330 struck out heading and text of
    par. (2). Text read as follows: "Notwithstanding any other
    provision of law, the provisions of this section shall be optional
    for Indian housing authorities."
      1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 106(b), added
    subpars. (A) to (D) and concluding provisions and struck out former
    subpars. (A) to (D) which read as follows:
      "(A) lack of supportive services funding;
      "(B) lack of funding for reasonable administrative costs;
      "(C) lack of cooperation by other units of State or local
    government; or
      "(D) any other circumstances that the Secretary may consider
    appropriate."
      Subsec. (b)(4). Pub. L. 102-550, Sec. 106(c), added par. (4).
      Subsec. (c)(1). Pub. L. 102-550, Sec. 106(d), in second sentence,
    inserted ", shall establish specific interim and final goals by
    which compliance with and performance of the contract may be
    measured," after "program" and substituted last sentence for former
    last sentence which read as follows: "The contract shall provide
    that the public housing agency may terminate or withhold assistance
    under section 1437f of this title and services under paragraph (2)
    of this section if the family fails to comply with the requirements
    under the contract."
      Subsec. (c)(2). Pub. L. 102-550, Sec. 106(e), struck out "to each
    participating family" after "paragraph (1)" in introductory
    provisions.
      Subsec. (d). Pub. L. 102-550, Sec. 106(g)(1), substituted
    "Incentives for participation" for "Maximum rents and escrow
    savings accounts" in heading.
      Subsec. (d)(2). Pub. L. 102-550, Sec. 106(f), substituted "after
    the family ceases to receive income assistance under Federal or
    State welfare programs, upon successful performance of the
    obligations of the family under the contract of participation
    entered into by the family under subsection (c) of this section, as
    determined according to the specific goals and terms included in
    the contract, and under other circumstances in which the Secretary
    determines an exception for good cause is warranted. A public
    housing agency establishing such escrow accounts may make certain
    amounts in the accounts available to the participating families
    before full performance of the contract obligations based on
    compliance with, and completion of, specific interim goals included
    in the contract; except that any such amounts shall be used by the
    participating families for purposes consistent with the contracts
    of participation, as determined by the public housing agency." for
    "only after the family is no longer a recipient of any Federal,
    State, or other public assistance for housing."
      Subsec. (d)(3). Pub. L. 102-550, Sec. 185(b), added par. (3)
    relating to use of escrow savings accounts.
      Pub. L. 102-550, Sec. 106(g)(2), added par. (3) relating to a
    plan to offer incentives.
      Subsec. (g)(3)(D) to (I). Pub. L. 102-550, Sec. 106(h), added
    subpars. (D) and (I) and redesignated former subpars (D) to (G) as
    (E) to (H), respectively.
      Subsec. (h)(2). Pub. L. 102-550, Sec. 106(a), amended last
    sentence generally. Prior to amendment, last sentence read as
    follows: "Of any amounts appropriated under section 1437g(c) of
    this title for each of fiscal years 1991 and 1992, $25,000,000 is
    authorized to be used for costs under this paragraph."
      Subsec. (n)(3) to (6). Pub. L. 102-550, Sec. 106(i), added par.
    (3), redesignated former pars. (3) and (4) as (4) and (5),
    respectively, and added par. (6).
      Subsec. (o)(2). Pub. L. 102-550, Sec. 106(j), amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "(2)
    Applicability to indian public housing. - In accordance with
    section 1437aa(b)(2) of this title, the provisions of this section
    shall also apply to public housing developed or operated pursuant
    to a contract between the Secretary and an Indian housing
    authority."

                     EFFECTIVE DATE OF 1998 AMENDMENTS                 
      Amendment by section 101(f) [title VIII, Sec. 405(d)(31)] of Pub.
    L. 105-277 effective Oct. 21, 1998, and amendment by section 101(f)
    [title VIII, Sec. 405(f)(23)] of Pub. L. 105-277 effective July 1,
    2000, see section 101(f) [title VIII, Sec. 405(g)(1), (2)(B)] of
    Pub. L. 105-277, set out as a note under section 3502 of Title 5,
    Government Organization and Employees.
      Pub. L. 105-276, title V, Sec. 509(b), Oct. 21, 1998, 112 Stat.
    2531, provided that: "The amendments made by this subsection
    [probably means subsec. (a), amending this section] are made on,
    and shall apply beginning upon, the date of the enactment of this
    Act [Oct. 21, 1998]."

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

        GAO STUDY ON LINKING FEDERAL HOUSING ASSISTANCE TO ECONOMIC
                         SELF-SUFFICIENCY PROGRAMS
      Section 554(b) of Pub. L. 101-625 directed Comptroller General to
    submit to Congress, not later than 18 months after Nov. 28, 1990, a
    report (1) evaluating the policy and administrative implications of
    requiring State and local governments to require participation in
    an economic self-sufficiency program as a condition of the receipt
    of rental assistance under 42 U.S.C. 1437f and public housing
    assistance, (2) determining the additional costs to public housing
    agencies under such programs and recommending a change in the
    amount of the administrative fee under 42 U.S.C. 1437f(q) to cover
    the additional costs of carrying out the Family Self-Sufficiency
    Program under this section, and (3) examining how housing and
    social service policies affect beneficiaries, particularly persons
    receiving public assistance, when such beneficiaries gain
    employment and experience a rise in income.

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) See References in Text note below.

    (!3) So in original. Probably should be "performance".


-End-



-CITE-
    42 USC Sec. 1437v                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437v. Demolition, site revitalization, replacement housing,
      and tenant-based assistance grants for projects

-STATUTE-
    (a) Purposes
      The purpose of this section is to provide assistance to public
    housing agencies for the purposes of - 
        (1) improving the living environment for public housing
      residents of severely distressed public housing projects through
      the demolition, rehabilitation, reconfiguration, or replacement
      of obsolete public housing projects (or portions thereof);
        (2) revitalizing sites (including remaining public housing
      dwelling units) on which such public housing projects are located
      and contributing to the improvement of the surrounding
      neighborhood;
        (3) providing housing that will avoid or decrease the
      concentration of very low-income families; and
        (4) building sustainable communities.

    It is also the purpose of this section to provide assistance to
    smaller communities for the purpose of facilitating the development
    of affordable housing for low-income families that is undertaken in
    connection with a main street revitalization or redevelopment
    project in such communities.
    (b) Grant authority
      The Secretary may make grants as provided in this section to
    applicants whose applications for such grants are approved by the
    Secretary under this section.
    (c) Contribution requirement
      (1) In general
        The Secretary may not make any grant under this section to any
      applicant unless the applicant certifies to the Secretary that
      the applicant will - 
          (A) supplement the aggregate amount of assistance provided
        under this section with an amount of funds from sources other
        than this section equal to not less than 5 percent of the
        amount provided under this section; and
          (B) in addition to supplemental amounts provided in
        accordance with subparagraph (A), if the applicant uses more
        than 5 percent of the amount of assistance provided under this
        section for services under subsection (d)(1)(L) of this
        section, provide supplemental funds from sources other than
        this section in an amount equal to the amount so used in excess
        of 5 percent.
      (2) Supplemental funds
        In calculating the amount of supplemental funds provided by a
      grantee for purposes of paragraph (1), the grantee may include
      amounts from other Federal sources, any State or local government
      sources, any private contributions, the value of any donated
      material or building, the value of any lease on a building, the
      value of the time and services contributed by volunteers, and the
      value of any other in-kind services or administrative costs
      provided.
      (3) Exemption
        If assistance provided under this subchapter will be used only
      for providing tenant-based assistance under section 1437f of this
      title or demolition of public housing (without replacement), the
      Secretary may exempt the applicant from the requirements under
      paragraph (1)(A).
    (d) Eligible activities
      (1) In general
        Grants under this section may be used for activities to carry
      out revitalization programs for severely distressed public
      housing, including - 
          (A) architectural and engineering work;
          (B) redesign, rehabilitation, or reconfiguration of a
        severely distressed public housing project, including the site
        on which the project is located;
          (C) the demolition, sale, or lease of the site, in whole or
        in part;
          (D) covering the administrative costs of the applicant, which
        may not exceed such portion of the assistance provided under
        this section as the Secretary may prescribe;
          (E) payment of reasonable legal fees;
          (F) providing reasonable moving expenses for residents
        displaced as a result of the revitalization of the project;
          (G) economic development activities that promote the economic
        self-sufficiency of residents under the revitalization program,
        including a Neighborhood Networks initiative for the
        establishment and operation of computer centers in public
        housing for the purpose of enhancing the self-sufficiency,
        employability, an (!1) economic self-reliance of public housing
        residents by providing them with onsite computer access and
        training resources;

          (H) necessary management improvements;
          (I) leveraging other resources, including additional housing
        resources, retail supportive services, jobs, and other economic
        development uses on or near the project that will benefit
        future residents of the site;
          (J) replacement housing (including appropriate homeownership
        downpayment assistance for displaced residents or other
        appropriate replacement homeownership activities) and rental
        assistance under section 1437f of this title;
          (K) transitional security activities; and
          (L) necessary supportive services, except that not more than
        15 percent of the amount of any grant may be used for
        activities under this paragraph.
      (2) Endowment trust for supportive services
        In using grant amounts under this section made available in
      fiscal year 2000 or thereafter for supportive services under
      paragraph (1)(L), a public housing agency may deposit such
      amounts in an endowment trust to provide supportive services over
      such period of time as the agency determines. Such amounts shall
      be provided to the agency by the Secretary in a lump sum when
      requested by the agency, shall be invested in a wise and prudent
      manner, and shall be used (together with any interest thereon
      earned) only for eligible uses pursuant to paragraph (1)(L). A
      public housing agency may use amounts in an endowment trust under
      this paragraph in conjunction with other amounts donated or
      otherwise made available to the trust for similar purposes.
    (e) Application and selection
      (1) Application
        An application for a grant under this section shall demonstrate
      the appropriateness of the proposal in the context of the local
      housing market relative to other alternatives, and shall include
      such other information and be submitted at such time and in
      accordance with such procedures, as the Secretary shall
      prescribe.
      (2) Selection criteria
        The Secretary shall establish criteria for the award of grants
      under this section and shall include among the factors - 
          (A) the relationship of the grant to the public housing
        agency plan for the applicant and how the grant will result in
        a revitalized site that will enhance the neighborhood in which
        the project is located and enhance economic opportunities for
        residents;
          (B) the capability and record of the applicant public housing
        agency, or any alternative management entity for the agency,
        for managing redevelopment or modernization projects, meeting
        construction timetables, and obligating amounts in a timely
        manner;
          (C) the extent to which the applicant could undertake such
        activities without a grant under this section;
          (D) the extent of involvement of residents, State and local
        governments, private service providers, financing entities, and
        developers, in the development and ongoing implementation of a
        revitalization program for the project, except that the
        Secretary may not award a grant under this section unless the
        applicant has involved affected public housing residents at the
        beginning and during the planning process for the
        revitalization program, prior to submission of an application;
          (E) the need for affordable housing in the community;
          (F) the supply of other housing available and affordable to
        families receiving tenant-based assistance under section 1437f
        of this title;
          (G) the amount of funds and other resources to be leveraged
        by the grant;
          (H) the extent of the need for, and the potential impact of,
        the revitalization program;
          (I) the extent to which the plan minimizes permanent
        displacement of current residents of the public housing site
        who wish to remain in or return to the revitalized community
        and provides for community and supportive services to residents
        prior to any relocation;
          (J) the extent to which the plan sustains or creates more
        project-based housing units available to persons eligible for
        public housing in markets where the plan shows there is demand
        for the maintenance or creation of such units;
          (K) the extent to which the plan gives to existing residents
        priority for occupancy in dwelling units which are public
        housing dwelling units, or for residents who can afford to live
        in other units, priority for those units in the revitalized
        community; and
          (L) such other factors as the Secretary considers
        appropriate.
      (3) Applicability of selection criteria
        The Secretary may determine not to apply certain of the
      selection criteria established pursuant to paragraph (2) when
      awarding grants for demolition only, tenant-based assistance
      only, or other specific categories of revitalization activities.
      This section may not be construed to require any application for
      a grant under this section to include demolition of public
      housing or to preclude use of grant amounts for rehabilitation or
      rebuilding of any housing on an existing site.
    (f) Cost limits
      Subject to the provisions of this section, the Secretary - 
        (1) shall establish cost limits on eligible activities under
      this section sufficient to provide for effective revitalization
      programs; and
        (2) may establish other cost limits on eligible activities
      under this section.
    (g) Disposition and replacement
      Any severely distressed public housing disposed of pursuant to a
    revitalization plan and any public housing developed in lieu of
    such severely distressed housing, shall be subject to the
    provisions of section 1437p of this title. Severely distressed
    public housing demolished pursuant to a revitalization plan shall
    not be subject to the provisions of section 1437p of this title.
    (h) Administration by other entities
      The Secretary may require a grantee under this section to make
    arrangements satisfactory to the Secretary for use of an entity
    other than the public housing agency to carry out activities
    assisted under the revitalization plan, if the Secretary determines
    that such action will help to effectuate the purposes of this
    section.
    (i) Withdrawal of funding
      If a grantee under this section does not proceed within a
    reasonable timeframe, in the determination of the Secretary, the
    Secretary shall withdraw any grant amounts under this section that
    have not been obligated by the public housing agency. The Secretary
    shall redistribute any withdrawn amounts to one or more other
    applicants eligible for assistance under this section or to one or
    more other entities capable of proceeding expeditiously in the same
    locality in carrying out the revitalization plan of the original
    grantee.
    (j) Definitions
      For purposes of this section, the following definitions shall
    apply:
      (1) Applicant
        The term "applicant" means - 
          (A) any public housing agency that is not designated as
        troubled pursuant to section 1437d(j)(2) of this title;
          (B) any public housing agency for which a private housing
        management agent has been selected, or a receiver has been
        appointed, pursuant to section 1437d(j)(3) of this title; and
          (C) any public housing agency that is designated as troubled
        pursuant to section 1437d(j)(2) of this title and that - 
            (i) is so designated principally for reasons that will not
          affect the capacity of the agency to carry out a
          revitalization program;
            (ii) is making substantial progress toward eliminating the
          deficiencies of the agency; or
            (iii) is otherwise determined by the Secretary to be
          capable of carrying out a revitalization program.
      (2) Severely distressed public housing
        The term "severely distressed public housing" means a public
      housing project (or building in a project) - 
          (A) that - 
            (i) requires major redesign, reconstruction or
          redevelopment, or partial or total demolition, to correct
          serious deficiencies in the original design (including
          inappropriately high population density), deferred
          maintenance, physical deterioration or obsolescence of major
          systems and other deficiencies in the physical plant of the
          project;
            (ii) is a significant contributing factor to the physical
          decline of and disinvestment by public and private entities
          in the surrounding neighborhood;
            (iii)(I) is occupied predominantly by families who are very
          low-income families with children, are unemployed, and
          dependent on various forms of public assistance;
            (II) has high rates of vandalism and criminal activity
          (including drug-related criminal activity) in comparison to
          other housing in the area; or
            (III) is lacking in sufficient appropriate transportation,
          supportive services, economic opportunity, schools, civic and
          religious institutions, and public services, resulting in
          severe social distress in the project;
            (iv) cannot be revitalized through assistance under other
          programs, such as the program for capital and operating
          assistance for public housing under this chapter, or the
          programs under sections 1437g and 1437l of this title (as in
          effect before the effective date under under (!2) section
          503(a) (!2) the Quality Housing and Work Responsibility Act
          of 1998), because of cost constraints and inadequacy of
          available amounts; and

            (v) in the case of individual buildings, is, in the
          Secretary's determination, sufficiently separable from the
          remainder of the project of which the building is part to
          make use of the building feasible for purposes of this
          section; or

          (B) that was a project described in subparagraph (A) that has
        been legally vacated or demolished, but for which the Secretary
        has not yet provided replacement housing assistance (other than
        tenant-based assistance).
      (3) Supportive services
        The term "supportive services" includes all activities that
      will promote upward mobility, self-sufficiency, and improved
      quality of life for the residents of the public housing project
      involved, including literacy training, job training, day care,
      transportation, and economic development activities.
    (k) Grantee reporting
      The Secretary shall require grantees of assistance under this
    section to report the sources and uses of all amounts expended for
    revitalization plans.
    (l) Annual report
      The Secretary shall submit to the Congress an annual report
    setting forth - 
        (1) the number, type, and cost of public housing units
      revitalized pursuant to this section;
        (2) the status of projects identified as severely distressed
      public housing;
        (3) the amount and type of financial assistance provided under
      and in conjunction with this section, including a specification
      of the amount and type of assistance provided under subsection
      (n) of this section;
        (4) the types of projects funded, and number of affordable
      housing dwelling units developed with, grants under subsection
      (n) of this section; and
        (5) the recommendations of the Secretary for statutory and
      regulatory improvements to the program established by this
      section.
    (m) Funding
      (1) Authorization of appropriations
        There are authorized to be appropriated for grants under this
      section $574,000,000 for fiscal year 2003.
      (2) Technical assistance and program oversight
        Of the amount appropriated pursuant to paragraph (1) for any
      fiscal year, the Secretary may use up to 2 percent for technical
      assistance or contract expertise, including assistance in
      connection with the establishment and operation of computer
      centers in public housing through the Neighborhoods (!3) Networks
      initiative described in subsection (d)(1)(G) of this section.
      Such assistance or contract expertise may be provided directly or
      indirectly by grants, contracts, or cooperative agreements, and
      shall include training, and the cost of necessary travel for
      participants in such training, by or to officials of the
      Department of Housing and Urban Development, of public housing
      agencies, and of residents.

      (3) Set-aside for main street housing grants
        Of the amount appropriated pursuant to paragraph (1) for any
      fiscal year, the Secretary shall provide up to 5 percent for use
      only for grants under subsection (n) of this section.
    (n) Grants for assisting affordable housing developed through main
      street projects in smaller communities
      (1) Authority and use of grant amounts
        The Secretary may make grants under this subsection to smaller
      communities. Such grant amounts shall be used by smaller
      communities only to provide assistance to carry out eligible
      affordable housing activities under paragraph (4) in connection
      with an eligible project under paragraph (2).
      (2) Eligible project
        For purposes of this subsection, the term "eligible project"
      means a project that - 
          (A) the Secretary determines, under the criteria established
        pursuant to paragraph (3), is a main street project;
          (B) is carried out within the jurisdiction of a smaller
        community receiving the grant; and
          (C) involves the development of affordable housing that is
        located in the commercial area that is the subject of the
        project.
      (3) Main street projects
        The Secretary shall establish requirements for a project to be
      considered a main street project for purposes of this section,
      which shall require that the project - 
          (A) has as its purpose the revitalization or redevelopment of
        a historic or traditional commercial area;
          (B) involves investment, or other participation, by the
        government for, and private entities in, the community in which
        the project is carried out; and
          (C) complies with such historic preservation guidelines or
        principles as the Secretary shall identify to preserve
        significant historic or traditional architectural and design
        features in the structures or area involved in the project.
      (4) Eligible affordable housing activities
        For purposes of this subsection, the activities described in
      subsection (d)(1) of this section shall be considered eligible
      affordable housing activities, except that - 
          (A) such activities shall be conducted with respect to
        affordable housing rather than with respect to severely
        distressed public housing projects; and
          (B) eligible affordable housing activities under this
        subsection shall not include the activities described in
        subparagraphs (B) through (E), (J), or (K) of subsection (d)(1)
        of this section.
      (5) Maximum grant amount
        A grant under this subsection for a fiscal year for a single
      smaller community may not exceed $1,000,000.
      (6) Contribution requirement
        A smaller community applying for a grant under this subsection
      shall be considered an applicant for purposes of subsection (c)
      of this section (relating to contributions by applicants), except
      that - 
          (A) such supplemental amounts shall be used only for carrying
        out eligible affordable housing activities; and
          (B) paragraphs (1)(B) and (3) shall not apply to grants under
        this subsection.
      (7) Applications and selection
        (A) Application
          Pursuant to subsection (e)(1) of this section, the Secretary
        shall provide for smaller communities to apply for grants under
        this subsection, except that the Secretary may establish such
        separate or additional criteria for applications for such
        grants as may be appropriate to carry out this subsection.
        (B) Selection criteria
          The Secretary shall establish selection criteria for the
        award of grants under this subsection, which shall be based on
        the selection criteria established pursuant to subsection
        (e)(2) of this section, with such changes as may be appropriate
        to carry out the purposes of this subsection.
      (8) Cost limits
        The cost limits established pursuant to subsection (f) of this
      section shall apply to eligible affordable housing activities
      assisted with grant amounts under this subsection.
      (9) Inapplicability of other provisions
        The provisions of subsections (g) (relating to disposition and
      replacement of severely distressed public housing), and (h)
      (relating to administration of grants by other entities) of this
      section, shall not apply to grants under this subsection.
      (10) Reporting
        The Secretary shall require each smaller community receiving a
      grant under this subsection to submit a report regarding the use
      of all amounts provided under the grant.
      (11) Definitions
        For purposes of this subsection, the following definitions
      shall apply:
        (A) Affordable housing
          The term "affordable housing" means rental or homeownership
        dwelling units that - 
            (i) are made available for initial occupancy to low-income
          families, with a subset of units made available to very- and
          extremely-low income families; and
            (ii) are subject to the same rules regarding occupant
          contribution toward rent or purchase and terms of rental or
          purchase as dwelling units in public housing projects
          assisted with a grant under this section.
        (B) Smaller community
          The term "smaller community" means a unit of general local
        government (as such term is defined in section 5302 of this
        title) that - 
            (i) has a population of 50,000 or fewer; and
            (ii)(I) is not served by a public housing agency; or
            (II) is served by a single public housing agency, which
          agency administers 100 or fewer public housing dwelling
          units.
    (o) Sunset
      No assistance may be provided under this section after September
    30, 2006.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 24, as added Pub. L. 102-
    550, title I, Sec. 120, Oct. 28, 1992, 106 Stat. 3695; amended
    Pub. L. 104-99, title IV, Sec. 402(d)(6)(A)(vi), Jan. 26, 1996, 110
    Stat. 43; Pub. L. 104-330, title V, Sec. 501(b)(9), Oct. 26, 1996,
    110 Stat. 4042; Pub. L. 105-276, title V, Sec. 535(a), Oct. 21,
    1998, 112 Stat. 2581; Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    214(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A-27; Pub. L. 108-7,
    div. K, title II, Sec. 215, Feb. 20, 2003, 117 Stat. 504; Pub. L.
    108-186, title IV, Secs. 402(a), (b), (d), (e), 403, Dec. 16, 2003,
    117 Stat. 2693, 2694.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437l of this title, referred to in subsec.
    (j)(2)(A)(iv), was repealed by Pub. L. 105-276, title V, Sec.
    522(a), Oct. 21, 1998, 112 Stat. 2564.
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (j)(2)(A)(iv), is section 503(a) of
    Pub. L. 105-276, which is set out as an Effective Date of 1998
    Amendment note under section 1437 of this title.


-MISC1-
                                AMENDMENTS                            
      2003 - Subsec. (a). Pub. L. 108-186, Sec. 403(a), inserted
    concluding provisions.
      Subsec. (e)(2). Pub. L. 108-186, Sec. 402(a)(1), substituted "The
    Secretary shall establish criteria for the award of grants under
    this section and shall include among the factors - " for "The
    Secretary shall establish selection criteria for the award of
    grants under this section and shall include such factors as - " in
    introductory provisions.
      Subsec. (e)(2)(B). Pub. L. 108-186, Sec. 402(a)(2), struck out
    "large-scale" after "for managing".
      Subsec. (e)(2)(D). Pub. L. 108-186, Sec. 402(a)(3), inserted "and
    ongoing implementation" after "development" and ", except that the
    Secretary may not award a grant under this section unless the
    applicant has involved affected public housing residents at the
    beginning and during the planning process for the revitalization
    program, prior to submission of an application" before semicolon at
    end.
      Subsec. (e)(2)(I) to (L). Pub. L. 108-186, Sec. 402(a)(4)-(6),
    added subpars. (I) to (K) and redesignated former subpar. (I) as
    (L).
      Subsec. (j)(2)(A)(iii)(III). Pub. L. 108-186, Sec. 402(b), added
    subcl. (III).
      Subsec. (l)(3). Pub. L. 108-186, Sec. 403(c)(1), substituted ",
    including a specification of the amount and type of assistance
    provided under subsection (n) of this section;" for "; and".
      Subsec. (l)(4), (5). Pub. L. 108-186, Sec. 403(c)(2), (3), added
    par. (4) and redesignated former par. (4) as (5).
      Subsec. (m)(1). Pub. L. 108-186, Sec. 402(d), which directed
    substitution of "through 2006" for ", 2001, and 2002" could not be
    executed because the words ", 2001, and 2002" did not appear
    subsequent to amendment by Pub. L. 108-7, Sec. 215(a). See below.
      Pub. L. 108-7, Sec. 215(a), substituted "$574,000,000 for fiscal
    year 2003" for "$600,000,000 for fiscal year 1999 and such sums as
    may be necessary for each of fiscal years 2000, 2001, and 2002".
      Subsec. (m)(3). Pub. L. 108-186, Sec. 403(d), added par. (3).
      Subsec. (n). Pub. L. 108-186, Sec. 403(b)(2), added subsec. (n).
    Former subsec. (n) redesignated (o).
      Pub. L. 108-186, Sec. 402(e), substituted "September 30, 2006"
    for "September 30, 2004".
      Pub. L. 108-7, Sec. 215(b), substituted "September 30, 2004" for
    "September 30, 2002".
      Subsec. (o) Pub. L. 108-186, Sec. 403(b)(1), redesignated subsec.
    (n) as (o).
      2000 - Subsec. (d)(1)(G). Pub. L. 106-377, Sec. 1(a)(1) [title
    II, Sec. 214(b)(1)], inserted before semicolon ", including a
    Neighborhood Networks initiative for the establishment and
    operation of computer centers in public housing for the purpose of
    enhancing the self-sufficiency, employability, an economic self-
    reliance of public housing residents by providing them with onsite
    computer access and training resources".
      Subsec. (m)(2). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    214(b)(2)], inserted before period at end of first sentence ",
    including assistance in connection with the establishment and
    operation of computer centers in public housing through the
    Neighborhoods Networks initiative described in subsection (d)(1)(G)
    of this section".
      1998 - Pub. L. 105-276 amended section generally. Prior to
    amendment, section authorized planning grants for development of
    revitalization programs for severely distressed public housing and
    implementation grants to carry out revitalization programs for such
    housing, authorized exceptions to general program rules,
    established Office of Severely Distressed Public Housing
    Revitalization, and required annual report to Congress.
      1996 - Subsec. (e). Pub. L. 104-99 temporarily substituted
    "Exception" for "Exceptions" in subsec. heading and struck out "(1)
    Long-term viability. - " before "The Secretary may waive" and par.
    (2) which read as follows:
      "(2) Selection of tenants. - For projects revitalized under this
    section, a public housing agency may select tenants pursuant to a
    local system of preferences, in lieu of selecting tenants pursuant
    to the preferences specified under section 1437d(c)(4)(A)(i) of
    this title. Such local system shall be established in writing and
    shall respond to local housing needs and priorities as determined
    by the public housing agency. The public housing agency shall hold
    1 or more public hearings to obtain the views of low-income tenants
    and other interested parties on the housing needs and priorities of
    the agency's jurisdiction." See Effective and Termination Dates of
    1996 Amendments note below.
      Subsec. (h)(3). Pub. L. 104-330 struck out ", except that it does
    not include any Indian housing authority" after "section 1437a(b)
    of this title".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-276, title V, Sec. 535(b), Oct. 21, 1998, 112 Stat.
    2586, provided that: "The amendment made by this section [amending
    this section] is made on, and shall apply beginning upon, the date
    of the enactment of this Act [Oct. 21, 1998]."

            EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS        
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for
    fiscal years 1996, 1997, and 1998, and to cease to be effective
    Oct. 21, 1998, see section 402(f) of Pub. L. 104-99, as amended,
    and section 514(f) of Pub. L. 105-276, set out as notes under
    section 1437a of this title.

                   TERMINATION OF REPORTING REQUIREMENTS               
      For termination, effective May 15, 2000, of provisions of law
    requiring submittal to Congress of any annual, semiannual, or other
    regular periodic report listed in House Document No. 103-7 (in
    which item 11 on page 104 identifies a reporting provision which,
    as subsequently amended, is contained in subsec. (l) of this
    section), see section 3003 of Pub. L. 104-66, as amended, set out
    as a note under section 1113 of Title 31, Money and Finance.

            STUDY OF ELDERLY AND DISABLED PUBLIC HOUSING NEEDS        
      Pub. L. 108-186, title IV, Sec. 402(c), Dec. 16, 2003, 117 Stat.
    2694, provided that: "Not later than 18 months after the date of
    enactment of this Act [Dec. 16, 2003], the Comptroller General of
    the United States shall submit a report to Congress regarding the
    extent of severely distressed elderly and non-elderly disabled
    public housing, and recommendations for improving that housing
    through the HOPE VI program or other means, taking into account the
    special needs of the residents."

-FOOTNOTE-
    (!1) So in original. Probably should be "and".

    (!2) So in original.

    (!3) So in original. Probably should be "Neighborhood".


-End-



-CITE-
    42 USC Sec. 1437w                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437w. Transfer of management of certain housing to
      independent manager at request of residents

-STATUTE-
    (a) Authority
      The Secretary may transfer the responsibility and authority for
    management of specified housing (as such term is defined in
    subsection (h) of this section) from a public housing agency to an
    eligible management entity, in accordance with the requirements of
    this section, if - 
        (1) a request for transfer of management of such housing is
      made and approved in accordance with subsection (b) of this
      section; and
        (2) the Secretary or the public housing agency, as appropriate
      pursuant to subsection (b) of this section, determines that - 
          (A) due to the mismanagement of the agency, such housing has
        deferred maintenance, physical deterioration, or obsolescence
        of major systems and other deficiencies in the physical plant
        of the project;
          (B) such housing is located in an area such that the housing
        is subject to recurrent vandalism and criminal activity
        (including drug-related criminal activity); and
          (C) the residents can demonstrate that the elements of
        distress for such housing specified in subparagraphs (A) and
        (B) can be remedied by an entity or entities, identified by the
        residents, that has or have a demonstrated capacity to manage,
        with reasonable expenses for modernization.
    (b) Request for transfer
      The responsibility and authority for managing specified housing
    may be transferred only pursuant to a request made by a majority
    vote of the residents for the specified housing that - 
        (1) in the case of specified housing that is owned by a public
      housing agency that is designated as a troubled agency under
      section 1437d(j)(2) of this title - 
          (A) is made to the public housing agency or the Secretary;
        and
          (B) is approved by the agency or the Secretary; or

        (2) in the case of specified housing that is owned by a public
      housing agency that is not designated as a troubled agency under
      section 1437d(j)(2) of this title - 
          (A) is made to and approved by the public housing agency; or
          (B) if a request is made to the agency pursuant to
        subparagraph (A) and is not approved, is subsequently made to
        and approved by the Secretary.
    (c) Capital and operating assistance
      Pursuant to a contract under subsection (d) of this section, the
    Secretary shall require the public housing agency for specified
    housing to provide to the manager for the housing, from any
    assistance from the Capital and Operating Funds under section 1437g
    of this title for the agency, fair and reasonable amounts for the
    housing for eligible capital and operating activities under
    subsection (d)(1) and (e)(1) of section 1437g of this title. The
    amount made available under this subsection to a manager shall be
    determined by the Secretary based on the share for the specified
    housing of the aggregate amount of assistance from such Funds for
    the public housing agency transferring the housing, taking into
    consideration the operating and capital improvement needs of the
    specified housing, the operating and capital improvement needs of
    the remaining public housing units managed by the public housing
    agency, and the public housing agency plan of such agency.
    (d) Contract between Secretary and manager
      (1) Requirements
        Pursuant to the approval of a request under this section for
      transfer of the management of specified housing, the Secretary
      shall enter into a contract with the eligible management entity.
      (2) Terms
        A contract under this subsection shall contain provisions
      establishing the rights and responsibilities of the manager with
      respect to the specified housing and the Secretary and shall be
      consistent with the requirements of this chapter applicable to
      public housing projects.
    (e) Compliance with public housing agency plan
      A manager of specified housing under this section shall comply
    with the approved public housing agency plan applicable to the
    housing and shall submit such information to the public housing
    agency from which management was transferred as may be necessary
    for such agency to prepare and update its public housing agency
    plan.
    (f) Demolition and disposition by manager
      A manager under this section may demolish or dispose of specified
    housing only if, and in the manner, provided for in the public
    housing agency plan for the agency transferring management of the
    housing.
    (g) Limitation on PHA liability
      A public housing agency that is not a manager for specified
    housing shall not be liable for any act or failure to act by a
    manager or resident council for the specified housing.
    (h) Definitions
      For purposes of this section, the following definitions shall
    apply:
      (1) Eligible management entity
        The term "eligible management entity" means, with respect to
      any public housing project, any of the following entities:
        (A) Nonprofit organization
          A public or private nonprofit organization, which may - 
            (i) include a resident management corporation; and
            (ii) not include the public housing agency that owns or
          operates the project.
        (B) For-profit entity
          A for-profit entity that has demonstrated experience in
        providing low-income housing.
        (C) State or local government
          A State or local government, including an agency or
        instrumentality thereof.
        (D) Public housing agency
          A public housing agency (other than the public housing agency
        that owns or operates the project).

      The term does not include a resident council.
      (2) Manager
        The term "manager" means any eligible management entity that
      has entered into a contract under this section with the Secretary
      for the management of specified housing.
      (3) Nonprofit
        The term "nonprofit" means, with respect to an organization,
      association, corporation, or other entity, that no part of the
      net earnings of the entity inures to the benefit of any member,
      founder, contributor, or individual.
      (4) Private nonprofit organization
        The term "private nonprofit organization" means any private
      organization (including a State or locally chartered
      organization) that - 
          (A) is incorporated under State or local law;
          (B) is nonprofit in character;
          (C) complies with standards of financial accountability
        acceptable to the Secretary; and
          (D) has among its purposes significant activities related to
        the provision of decent housing that is affordable to low-
        income families.
      (5) Public nonprofit organization
        The term "public nonprofit organization" means any public
      entity that is nonprofit in character.
      (6) Specified housing
        The term "specified housing" means a public housing project or
      projects, or a portion of a project or projects, for which the
      transfer of management is requested under this section. The term
      includes one or more contiguous buildings and an area of
      contiguous row houses, but in the case of a single building, the
      building shall be sufficiently separable from the remainder of
      the project of which it is part to make transfer of the
      management of the building feasible for purposes of this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 25, as added Pub. L. 105-
    276, title V, Sec. 534, Oct. 21, 1998, 112 Stat. 2579.)


-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 1437w, act Sept. 1, 1937, ch. 896, title I, Sec.
    25, as added Pub. L. 102-550, title I, Sec. 121(b), Oct. 28, 1992,
    106 Stat. 3701; amended Pub. L. 104-330, title V, Sec. 501(b)(10),
    Oct. 26, 1996, 110 Stat. 4042, known as the Choice in Public
    Housing Management Act of 1992, related to choice in public housing
    management, prior to repeal by Pub. L. 105-276, title V, Secs. 503,
    534, Oct. 21, 1998, 112 Stat. 2521, 2579, effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement repeal before such date, and
    with savings provision.

                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

-End-



-CITE-
    42 USC Sec. 1437x                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437x. Environmental reviews

-STATUTE-
    (a) In general
      (1) Release of funds
        In order to assure that the policies of the National
      Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and
      other provisions of law which further the purposes of such Act
      (as specified in regulations issued by the Secretary) are most
      effectively implemented in connection with the expenditure of
      funds under this subchapter, and to assure to the public
      undiminished protection of the environment, the Secretary may,
      under such regulations, in lieu of the environmental protection
      procedures otherwise applicable, provide for the release of funds
      for projects or activities under this subchapter, as specified by
      the Secretary upon the request of a public housing agency under
      this section, if the State or unit of general local government,
      as designated by the Secretary in accordance with regulations,
      assumes all of the responsibilities for environmental review,
      decisionmaking, and action pursuant to such Act, and such other
      provisions of law as the regulations of the Secretary may
      specify, which would otherwise apply to the Secretary with
      respect to the release of funds.
      (2) Implementation
        The Secretary, after consultation with the Council on
      Environmental Quality, shall issue such regulations as may be
      necessary to carry out this section. Such regulations shall
      specify the programs to be covered.
    (b) Procedure
      The Secretary shall approve the release of funds subject to the
    procedures authorized by this section only if, not less than 15
    days prior to such approval and prior to any commitment of funds to
    such projects or activities, the public housing agency has
    submitted to the Secretary a request for such release accompanied
    by a certification of the State or unit of general local government
    which meets the requirements of subsection (c) of this section. The
    Secretary's approval of any such certification shall be deemed to
    satisfy the Secretary's responsibilities under the National
    Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such
    other provisions of law as the regulations of the Secretary specify
    insofar as those responsibilities relate to the release of funds
    which are covered by such certification.
    (c) Certification
      A certification under the procedures authorized by this section
    shall - 
        (1) be in a form acceptable to the Secretary;
        (2) be executed by the chief executive officer or other officer
      of the State or unit of general local government who qualifies
      under regulations of the Secretary;
        (3) specify that the State or unit of general local government
      under this section has fully carried out its responsibilities as
      described under subsection (a) of this section; and
        (4) specify that the certifying officer - 
          (A) consents to assume the status of a responsible Federal
        official under the National Environmental Policy Act of 1969
        [42 U.S.C. 4321 et seq.] and each provision of law specified in
        regulations issued by the Secretary insofar as the provisions
        of such Act or other such provision of law apply pursuant to
        subsection (a) of this section; and
          (B) is authorized and consents on behalf of the State or unit
        of general local government and himself or herself to accept
        the jurisdiction of the Federal courts for the purpose of
        enforcement of his or her responsibilities as such an official.
    (d) Approval by States
      In cases in which a unit of general local government carries out
    the responsibilities described in subsection (c) of this section,
    the Secretary may permit the State to perform those actions of the
    Secretary described in subsection (b) of this section and the
    performance of such actions by the State, where permitted by the
    Secretary, shall be deemed to satisfy the Secretary's
    responsibilities referred to in the second sentence of subsection
    (b) of this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 26, as added Pub. L. 103-
    233, title III, Sec. 305(b), Apr. 11, 1994, 108 Stat. 371; amended
    Pub. L. 104-330, title V, Sec. 501(b)(11), Oct. 26, 1996, 110 Stat.
    4042.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Environmental Policy Act of 1969, referred to in
    subsecs. (a)(1), (b), and (c)(4)(A), is Pub. L. 91-190, Jan. 1,
    1970, 83 Stat. 852, as amended, which is classified generally to
    chapter 55 (Sec. 4321 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 4321 of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1996 - Subsecs. (a)(1), (b). Pub. L. 104-330 struck out
    "(including an Indian housing authority)" after "public housing
    agency".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

-End-



-CITE-
    42 USC Sec. 1437y                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437y. Provision of information to law enforcement and other
      agencies

-STATUTE-
      Notwithstanding any other provision of law, the Secretary shall,
    at least 4 times annually and upon request of the Immigration and
    Naturalization Service (hereafter in this section referred to as
    the "Service"), furnish the Service with the name and address of,
    and other identifying information on, any individual who the
    Secretary knows is not lawfully present in the United States, and
    shall ensure that each contract for assistance entered into under
    section 1437d or 1437f of this title with a public housing agency
    provides that the public housing agency shall furnish such
    information at such times with respect to any individual who the
    public housing agency knows is not lawfully present in the United
    States.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 27, as added Pub. L. 104-
    193, title IV, Sec. 404(d), Aug. 22, 1996, 110 Stat. 2267; amended
    Pub. L. 105-33, title V, Sec. 5564, Aug. 5, 1997, 111 Stat. 639.)

-COD-
                               CODIFICATION                           
      Another section 27 of act Sept. 1, 1937, was renumbered section
    28, and is classified to section 1437z of this title.


-MISC1-
                                AMENDMENTS                            
      1997 - Pub. L. 105-33 substituted "not lawfully present in the
    United States" for "unlawfully in the United States" in two places.

                     EFFECTIVE DATE OF 1997 AMENDMENT                 
      Amendment by Pub. L. 105-33 effective as if included in the
    enactment of title IV of the Personal Responsibility and Work
    Opportunity Reconciliation Act of 1996, Pub. L. 104-193, see
    section 5582 of Pub. L. 105-33, set out as a note under section
    1367 of Title 8, Aliens and Nationality.


-TRANS-
    ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF
                                 FUNCTIONS
      For abolition of Immigration and Naturalization Service, transfer
    of functions, and treatment of related references, see note set out
    under section 1551 of Title 8, Aliens and Nationality.

-End-



-CITE-
    42 USC Sec. 1437z                                           01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z. Exchange of information with law enforcement agencies

-STATUTE-
      Notwithstanding any other provision of law, each public housing
    agency that enters into a contract for assistance under section
    1437d or 1437f of this title with the Secretary shall furnish any
    Federal, State, or local law enforcement officer, upon the request
    of the officer, with the current address, Social Security number,
    and photograph (if applicable) of any recipient of assistance under
    this chapter, if the officer - 
        (1) furnishes the public housing agency with the name of the
      recipient; and
        (2) notifies the agency that - 
          (A) such recipient - 
            (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; or
            (iii) has information that is necessary for the officer to
          conduct the officer's official duties;

          (B) the location or apprehension of the recipient is within
        such officer's official duties; and
          (C) the request is made in the proper exercise of the
        officer's official duties.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 28, formerly Sec. 27, as
    added Pub. L. 104-193, title IX, Sec. 903(b), Aug. 22, 1996, 110
    Stat. 2348; renumbered Sec. 28, Pub. L. 105-65, title V, Sec.
    562(a)(1), Oct. 27, 1997, 111 Stat. 1416.)

-End-



-CITE-
    42 USC Sec. 1437z-1                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-1. Civil money penalties against section 1437f owners

-STATUTE-
    (a) In general
      (1) Effect on other remedies
        The penalties set forth in this section shall be in addition to
      any other available civil remedy or any available criminal
      penalty, and may be imposed regardless of whether the Secretary
      imposes other administrative sanctions.
      (2) Failure of Secretary
        The Secretary may not impose penalties under this section for a
      violation, if a material cause of the violation is the failure of
      the Secretary, an agent of the Secretary, or a public housing
      agency to comply with an existing agreement.
    (b) Violations of housing assistance payment contracts for which
      penalty may be imposed
      (1) Liable parties
        The Secretary may impose a civil money penalty under this
      section on - 
          (A) any owner of a property receiving project-based
        assistance under section 8 [42 U.S.C. 1437f];
          (B) any general partner of a partnership owner of that
        property; and
          (C) any agent employed to manage the property that has an
        identity of interest with the owner or the general partner of a
        partnership owner of the property.
      (2) Violations
        A penalty may be imposed under this section for a knowing and
      material breach of a housing assistance payments contract,
      including the following - 
          (A) failure to provide decent, safe, and sanitary housing
        pursuant to section 8 [42 U.S.C. 1437f]; or
          (B) knowing or willful submission of false, fictitious, or
        fraudulent statements or requests for housing assistance
        payments to the Secretary or to any department or agency of the
        United States.
      (3) Amount of penalty
        The amount of a penalty imposed for a violation under this
      subsection, as determined by the Secretary, may not exceed
      $25,000 per violation.
    (c) Agency procedures
      (1) Establishment
        The Secretary shall issue regulations establishing standards
      and procedures governing the imposition of civil money penalties
      under subsection (b) of this section. These standards and
      procedures - 
          (A) shall provide for the Secretary or other department
        official to make the determination to impose the penalty;
          (B) shall provide for the imposition of a penalty only after
        the liable party has received notice and the opportunity for a
        hearing on the record; and
          (C) may provide for review by the Secretary of any
        determination or order, or interlocutory ruling, arising from a
        hearing and judicial review, as provided under subsection (d)
        of this section.
      (2) Final orders
        (A) In general
          If a hearing is not requested before the expiration of the 15-
        day period beginning on the date on which the notice of
        opportunity for hearing is received, the imposition of a
        penalty under subsection (b) of this section shall constitute a
        final and unappealable determination.
        (B) Effect of review
          If the Secretary reviews the determination or order, the
        Secretary may affirm, modify, or reverse that determination or
        order.
        (C) Failure to review
          If the Secretary does not review that determination or order
        before the expiration of the 90-day period beginning on the
        date on which the determination or order is issued, the
        determination or order shall be final.
      (3) Factors in determining amount of penalty
        In determining the amount of a penalty under subsection (b) of
      this section, the Secretary shall take into consideration - 
          (A) the gravity of the offense;
          (B) any history of prior offenses by the violator (including
        offenses occurring before the enactment of this section);
          (C) the ability of the violator to pay the penalty;
          (D) any injury to tenants;
          (E) any injury to the public;
          (F) any benefits received by the violator as a result of the
        violation;
          (G) deterrence of future violations; and
          (H) such other factors as the Secretary may establish by
        regulation.
      (4) Payment of penalty
        No payment of a civil money penalty levied under this section
      shall be payable out of project income.
    (d) Judicial review of agency determination
      Judicial review of determinations made under this section shall
    be carried out in accordance with section 1735f-15(e) of title 12.
    (e) Remedies for noncompliance
      (1) Judicial intervention
        (A) In general
          If a person or entity fails to comply with the determination
        or order of the Secretary imposing a civil money penalty under
        subsection (b) of this section, after the determination or
        order is no longer subject to review as provided by subsections
        (c) and (d) of this section, the Secretary may request the
        Attorney General of the United States to bring an action in an
        appropriate United States district court to obtain a monetary
        judgment against that person or entity and such other relief as
        may be available.
        (B) Fees and expenses
          Any monetary judgment awarded in an action brought under this
        paragraph may, in the discretion of the court, include the
        attorney's fees and other expenses incurred by the United
        States in connection with the action.
      (2) Nonreviewability of determination or order
        In an action under this subsection, the validity and
      appropriateness of the determination or order of the Secretary
      imposing the penalty shall not be subject to review.
    (f) Settlement by Secretary
      The Secretary may compromise, modify, or remit any civil money
    penalty which may be, or has been, imposed under this section.
    (g) Deposit of penalties
      (1) In general
        Notwithstanding any other provision of law, if the mortgage
      covering the property receiving assistance under section 8 [42
      U.S.C. 1437f] is insured or was formerly insured by the
      Secretary, the Secretary shall apply all civil money penalties
      collected under this section to the appropriate insurance fund or
      funds established under this chapter, as determined by the
      Secretary.
      (2) Exception
        Notwithstanding any other provision of law, if the mortgage
      covering the property receiving assistance under section 8 [42
      U.S.C. 1437f] is neither insured nor formerly insured by the
      Secretary, the Secretary shall make all civil money penalties
      collected under this section available for use by the appropriate
      office within the Department for administrative costs related to
      enforcement of the requirements of the various programs
      administered by the Secretary.
    (h) Definitions
      In this section - 
        (1) the term "agent employed to manage the property that has an
      identity of interest" means an entity - 
          (A) that has management responsibility for a project;
          (B) in which the ownership entity, including its general
        partner or partners (if applicable), has an ownership interest;
        and
          (C) over which such ownership entity exerts effective
        control; and

        (2) the term "knowing" means having actual knowledge of or
      acting with deliberate ignorance of or reckless disregard for the
      prohibitions under this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 29, as added Pub. L. 105-65,
    title V, Sec. 562(a)(2), Oct. 27, 1997, 111 Stat. 1416.)


-MISC1-
                              EFFECTIVE DATE                          
      Section 562(b) of Pub. L. 105-65 provided that: "The amendments
    made by subsection (a) [enacting this section and amending section
    1437z of this title] shall apply only with respect to - 
        "(1) violations that occur on or after the effective date of
      final regulations implementing the amendments made by this
      section; and
        "(2) in the case of a continuing violation (as determined by
      the Secretary of Housing and Urban Development), any portion of a
      violation that occurs on or after such date."

                                REGULATIONS                            
      Section 562(c) of Pub. L. 105-65 provided that:
      "(1) Regulations. - 
        "(A) In general. - The Secretary shall implement the amendments
      made by this section [enacting this section and amending section
      1437z of this title] by regulation issued after notice and
      opportunity for public comment.
        "(B) Comments sought. - The notice under subparagraph (A) shall
      seek comments as to the definitions of the terms 'ownership
      interest in' and 'effective control', as such terms are used in
      the definition of the term 'agent employed to manage such
      property that has an identity of interest'.
      "(2) Timing. - A proposed rule implementing the amendments made
    by this section shall be published not later than 1 year after the
    date of enactment of this Act [Oct. 27, 1997]."

-End-



-CITE-
    42 USC Sec. 1437z-2                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-2. Public housing mortgages and security interests

-STATUTE-
    (a) General authorization
      The Secretary may, upon such terms and conditions as the
    Secretary may prescribe, authorize a public housing agency to
    mortgage or otherwise grant a security interest in any public
    housing project or other property of the public housing agency.
    (b) Terms and conditions
      In making any authorization under subsection (a) of this section,
    the Secretary may consider - 
        (1) the ability of the public housing agency to use the
      proceeds of the mortgage or security interest for low-income
      housing uses;
        (2) the ability of the public housing agency to make payments
      on the mortgage or security interest; and
        (3) such other criteria as the Secretary may specify.
    (c) No Federal liability
      No action taken under this section shall result in any liability
    to the Federal Government.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 30, as added Pub. L. 105-
    276, title V, Sec. 516, Oct. 21, 1998, 112 Stat. 2550.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

-End-



-CITE-
    42 USC Sec. 1437z-3                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-3. Pet ownership in public housing

-STATUTE-
    (a) Ownership conditions
      A resident of a dwelling unit in public housing (as such term is
    defined in subsection (c) of this section) may own 1 or more common
    household pets or have 1 or more common household pets present in
    the dwelling unit of such resident, subject to the reasonable
    requirements of the public housing agency, if the resident
    maintains each pet responsibly and in accordance with applicable
    State and local public health, animal control, and animal anti-
    cruelty laws and regulations and with the policies established in
    the public housing agency plan for the agency.
    (b) Reasonable requirements
      The reasonable requirements referred to in subsection (a) of this
    section may include - 
        (1) requiring payment of a nominal fee, a pet deposit, or both,
      by residents owning or having pets present, to cover the
      reasonable operating costs to the project relating to the
      presence of pets and to establish an escrow account for
      additional costs not otherwise covered, respectively;
        (2) limitations on the number of animals in a unit, based on
      unit size;
        (3) prohibitions on - 
          (A) types of animals that are classified as dangerous; and
          (B) individual animals, based on certain factors, including
        the size and weight of the animal; and

        (4) restrictions or prohibitions based on size and type of
      building or project, or other relevant conditions.
    (c) Pet ownership in public housing designated for occupancy by
      elderly or handicapped families
      For purposes of this section, the term "public housing" has the
    meaning given the term in section 1437a(b) of this title, except
    that such term does not include any public housing that is
    federally assisted rental housing for the elderly or handicapped,
    as such term is defined in section 1701r-1(d) of title 12.
    (d) Regulations
      This section shall take effect upon the date of the effectiveness
    of regulations issued by the Secretary to carry out this section.
    Such regulations shall be issued after notice and opportunity for
    public comment in accordance with the procedure under section 553
    of title 5 applicable to substantive rules (notwithstanding
    subsections (a)(2), (b)(B), and (d)(3) of such section).

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 31, as added Pub. L. 105-
    276, title V, Sec. 526, Oct. 21, 1998, 112 Stat. 2568.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

-End-



-CITE-
    42 USC Sec. 1437z-4                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-4. Resident homeownership programs

-STATUTE-
    (a) In general
      A public housing agency may carry out a homeownership program in
    accordance with this section and the public housing agency plan of
    the agency to make public housing dwelling units, public housing
    projects, and other housing projects available for purchase by low-
    income families for use only as principal residences for such
    families. An agency may transfer a unit pursuant to a homeownership
    program only if the program is authorized under this section and
    approved by the Secretary.
    (b) Participating units
      A program under this section may cover any existing public
    housing dwelling units or projects, and may include other dwelling
    units and housing owned, assisted, or operated, or otherwise
    acquired for use under such program, by the public housing agency.
    (c) Eligible purchasers
      (1) Low-income requirement
        Only low-income families assisted by a public housing agency,
      other low-income families, and entities formed to facilitate such
      sales by purchasing units for resale to low-income families shall
      be eligible to purchase housing under a homeownership program
      under this section.
      (2) Other requirements
        A public housing agency may establish other requirements or
      limitations for families to purchase housing under a
      homeownership program under this section, including requirements
      or limitations regarding employment or participation in
      employment counseling or training activities, criminal activity,
      participation in homeownership counseling programs, evidence of
      regular income, and other requirements. In the case of purchase
      by an entity for resale to low-income families, the entity shall
      sell the units to low-income families within 5 years from the
      date of its acquisition of the units. The entity shall use any
      net proceeds from the resale and from managing the units, as
      determined in accordance with guidelines of the Secretary, for
      housing purposes, such as funding resident organizations and
      reserves for capital replacements.
    (d) Right of first refusal
      In making any sale under this section, the public housing agency
    shall initially offer the public housing unit at issue to the
    resident or residents occupying that unit, if any, or to an
    organization serving as a conduit for sales to any such resident.
    (e) Protection of nonpurchasing residents
      If a public housing resident does not exercise the right of first
    refusal under subsection (d) of this section with respect to the
    public housing unit in which the resident resides, the public
    housing agency - 
        (1) shall notify the resident residing in the unit 90 days
      prior to the displacement date except in cases of imminent threat
      to health or safety, consistent with any guidelines issued by the
      Secretary governing such notifications, that - 
          (A) the public housing unit will be sold;
          (B) the transfer of possession of the unit will occur until
        the resident is relocated; and
          (C) each resident displaced by such action will be offered
        comparable housing - 
            (i) that meets housing quality standards;
            (ii) that is located in an area that is generally not less
          desirable than the location of the displaced resident's
          housing; and
            (iii) which may include - 
              (I) tenant-based assistance, except that the requirement
            under this subclause regarding offering of comparable
            housing shall be fulfilled by use of tenant-based
            assistance only upon the relocation of such resident into
            such housing;
              (II) project-based assistance; or
              (III) occupancy in a unit owned, operated, or assisted by
            the public housing agency at a rental rate paid by the
            resident that is comparable to the rental rate applicable
            to the unit from which the resident is vacated;

        (2) shall provide for the payment of the actual and reasonable
      relocation expenses of the resident to be displaced;
        (3) shall ensure that the displaced resident is offered
      comparable housing in accordance with the notice under paragraph
      (1);
        (4) shall provide any necessary counseling for the displaced
      resident; and
        (5) shall not transfer possession of the unit until the
      resident is relocated.
    (f) Financing and assistance
      A homeownership program under this section may provide financing
    for acquisition of housing by families purchasing under the
    program, or for acquisition of housing by the public housing agency
    for sale under the program, in any manner considered appropriate by
    the agency (including sale to a resident management corporation).
    (g) Downpayment requirement
      (1) In general
        Each family purchasing housing under a homeownership program
      under this section shall be required to provide from its own
      resources a downpayment in connection with any loan for
      acquisition of the housing, in an amount determined by the public
      housing agency. Except as provided in paragraph (2), the agency
      shall permit the family to use grant amounts, gifts from
      relatives, contributions from private sources, and similar
      amounts as downpayment amounts in such purchase.
      (2) Direct family contribution
        In purchasing housing pursuant to this section, each family
      shall contribute an amount of the downpayment, from resources of
      the family other than grants, gifts, contributions, or other
      similar amounts referred to in paragraph (1), that is not less
      than 1 percent of the purchase price.
    (h) Ownership interests
      A homeownership program under this section may provide for sale
    to the purchasing family of any ownership interest that the public
    housing agency considers appropriate under the program, including
    ownership in fee simple, a condominium interest, an interest in a
    limited dividend cooperative, a shared appreciation interest with a
    public housing agency providing financing.
    (i) Resale
      (1) Authority and limitation
        A homeownership program under this section shall permit the
      resale of a dwelling unit purchased under the program by an
      eligible family, but shall provide such limitations on resale as
      the agency considers appropriate (whether the family purchases
      directly from the agency or from another entity) for the agency
      to recapture - 
          (A) some or all of the economic gain derived from any such
        resale occurring during the 5-year period beginning upon
        purchase of the dwelling unit by the eligible family; and
          (B) after the expiration of such 5-year period, only such
        amounts as are equivalent to the assistance provided under this
        section by the agency to the purchaser.
      (2) Considerations
        The limitations referred to in paragraph (1)(A) may provide for
      consideration of the aggregate amount of assistance provided
      under the program to the family, the contribution to equity
      provided by the purchasing eligible family, the period of time
      elapsed between purchase under the homeownership program and
      resale, the reason for resale, any improvements to the property
      made by the eligible family, any appreciation in the value of the
      property, and any other factors that the agency considers
      appropriate.
    (j) Net proceeds
      The net proceeds of any sales under a homeownership program under
    this section remaining after payment of all costs of the sale shall
    be used for purposes relating to low-income housing and in
    accordance with the public housing agency plan of the agency
    carrying out the program.
    (k) Homeownership assistance
      From amounts distributed to a public housing agency under the
    Capital Fund under section 1437g(d) of this title, or from other
    income earned by the public housing agency, the public housing
    agency may provide assistance to public housing residents to
    facilitate the ability of those residents to purchase a principal
    residence, including a residence other than a residence located in
    a public housing project.
    (l) Inapplicability of disposition requirements
      The provisions of section 1437p of this title shall not apply to
    disposition of public housing dwelling units under a homeownership
    program under this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 32, as added Pub. L. 105-
    276, title V, Sec. 536, Oct. 21, 1998, 112 Stat. 2586.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

-End-



-CITE-
    42 USC Sec. 1437z-5                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-5. Required conversion of distressed public housing to
      tenant-based assistance

-STATUTE-
    (a) Identification of units
      Each public housing agency shall identify all public housing
    projects of the public housing agency that meet all of the
    following requirements:
        (1) The project is on the same or contiguous sites.
        (2) The project is determined by the public housing agency to
      be distressed, which determination shall be made in accordance
      with guidelines established by the Secretary, which guidelines
      shall take into account the criteria established in the Final
      Report of the National Commission on Severely Distressed Public
      Housing (August 1992).
        (3) The project - 
          (A) is identified as distressed housing under paragraph (2)
        for which the public housing agency cannot assure the long-term
        viability as public housing through reasonable modernization
        expenses, density reduction, achievement of a broader range of
        family income, or other measures; or
          (B) has an estimated cost, during the remaining useful life
        of the project, of continued operation and modernization as
        public housing that exceeds the estimated cost, during the
        remaining useful life of the project, of providing tenant-based
        assistance under section 1437f of this title for all families
        in occupancy, based on appropriate indicators of cost (such as
        the percentage of total development costs required for
        modernization).
    (b) Consultation
      Each public housing agency shall consult with the appropriate
    public housing residents and the appropriate unit of general local
    government in identifying any public housing projects under
    subsection (a) of this section.
    (c) Plan for removal of units from inventories of PHAs
      (1) Development
        Each public housing agency shall develop and carry out a 5-year
      plan in conjunction with the Secretary for the removal of public
      housing units identified under subsection (a) of this section
      from the inventory of the public housing agency and the annual
      contributions contract.
      (2) Approval
        Each plan required under paragraph (1) shall - 
          (A) be included as part of the public housing agency plan;
          (B) be certified by the relevant local official to be in
        accordance with the comprehensive housing affordability
        strategy under title I of the Housing and Community Development
        Act of 1992; and
          (C) include a description of any disposition and demolition
        plan for the public housing units.
      (3) Extensions
        The Secretary may extend the 5-year deadline described in
      paragraph (1) by not more than an additional 5 years if the
      Secretary makes a determination that the deadline is
      impracticable.
      (4) Review by Secretary
        (A) Failure to identify projects
          If the Secretary determines, based on a plan submitted under
        this subsection, that a public housing agency has failed to
        identify 1 or more public housing projects that the Secretary
        determines should have been identified under subsection (a) of
        this section, the Secretary may designate the public housing
        projects to be removed from the inventory of the public housing
        agency pursuant to this section.
        (B) Erroneous identification of projects
          If the Secretary determines, based on a plan submitted under
        this subsection, that a public housing agency has identified 1
        or more public housing projects that should not have been
        identified pursuant to subsection (a) of this section, the
        Secretary shall - 
            (i) require the public housing agency to revise the plan of
          the public housing agency under this subsection; and
            (ii) prohibit the removal of any such public housing
          project from the inventory of the public housing agency under
          this section.
    (d) Conversion to tenant-based assistance
      (1) In general
        To the extent approved in advance in appropriations Acts, the
      Secretary shall make budget authority available to a public
      housing agency to provide assistance under this chapter to
      families residing in any public housing project that, pursuant to
      this section, is removed from the inventory of the agency and the
      annual contributions contract of the agency.
      (2) Conversion requirements
        Each agency carrying out a plan under subsection (c) of this
      section for removal of public housing dwelling units from the
      inventory of the agency shall - 
          (A) notify each family residing in a public housing project
        to be converted under the plan 90 days prior to the
        displacement date, except in cases of imminent threat to health
        or safety, consistent with any guidelines issued by the
        Secretary governing such notifications, that - 
            (i) the public housing project will be removed from the
          inventory of the public housing agency; and
            (ii) each family displaced by such action will be offered
          comparable housing - 
              (I) that meets housing quality standards; and
              (II) which may include - 
                (aa) tenant-based assistance, except that the
              requirement under this clause regarding offering of
              comparable housing shall be fulfilled by use of tenant-
              based assistance only upon the relocation of such family
              into such housing;
                (bb) project-based assistance; or
                (cc) occupancy in a unit operated or assisted by the
              public housing agency at a rental rate paid by the family
              that is comparable to the rental rate applicable to the
              unit from which the family is vacated.

          (B) provide any necessary counseling for families displaced
        by such action;
          (C) ensure that, if the project (or portion) converted is
        used as housing after such conversion, each resident may choose
        to remain in their dwelling unit in the project and use the
        tenant-based assistance toward rent for that unit;
          (D) ensure that each displaced resident is offered comparable
        housing in accordance with the notice under subparagraph (A);
        and
          (E) provide any actual and reasonable relocation expenses for
        families displaced by such action.
    (e) Cessation of unnecessary spending
      Notwithstanding any other provision of law, if, in the
    determination of the Secretary, a project or projects of a public
    housing agency meet or are likely to meet the criteria set forth in
    subsection (a) of this section, the Secretary may direct the agency
    to cease additional spending in connection with such project or
    projects until the Secretary determines or approves an appropriate
    course of action with respect to such project or projects under
    this section, except to the extent that failure to expend such
    amounts would endanger the health or safety of residents in the
    project or projects.
    (f) Use of budget authority
      Notwithstanding any other provision of law, if a project or
    projects are identified pursuant to subsection (a) of this section,
    the Secretary may authorize or direct the transfer, to the tenant-
    based assistance program of such agency or to appropriate site
    revitalization or other capital improvements approved by the
    Secretary, of - 
        (1) in the case of an agency receiving assistance under the
      comprehensive improvement assistance program, any amounts
      obligated by the Secretary for the modernization of such project
      or projects pursuant to section 1437l of this title (as in effect
      immediately before the effective date under section 503(a) of the
      Quality Housing and Work Responsibility Act of 1998);
        (2) in the case of an agency receiving public housing
      modernization assistance by formula pursuant to such section
      1437l of this title, any amounts provided to the agency which are
      attributable pursuant to the formula for allocating such
      assistance to such project or projects;
        (3) in the case of an agency receiving assistance for the major
      reconstruction of obsolete projects, any amounts obligated by the
      Secretary for the major reconstruction of such project or
      projects pursuant to section 1437c(j)(2) of this title, as in
      effect immediately before the effective date under section 503(a)
      of the Quality Housing and Work Responsibility Act of 1998; and
        (4) in the case of an agency receiving assistance pursuant to
      the formulas under section 1437g of this title, any amounts
      provided to the agency which are attributable pursuant to the
      formulas for allocating such assistance to such project or
      projects.
    (g) Removal by Secretary
      The Secretary shall take appropriate actions to ensure removal of
    any public housing project identified under subsection (a) of this
    section from the inventory of a public housing agency, if the
    public housing agency fails to adequately develop a plan under
    subsection (c) of this section with respect to that project, or
    fails to adequately implement such plan in accordance with the
    terms of the plan.
    (h) Administration
      (1) In general
        The Secretary may require a public housing agency to provide to
      the Secretary or to public housing residents such information as
      the Secretary considers to be necessary for the administration of
      this section.
      (2) Applicability of section 1437p
        Section 1437p of this title shall not apply to the demolition
      of public housing projects removed from the inventory of the
      public housing agency under this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 33, as added Pub. L. 105-
    276, title V, Sec. 537(a), Oct. 21, 1998, 112 Stat. 2588.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title I of the Housing and Community Development Act of 1992,
    referred to in subsec. (c)(2)(B), is title I of Pub. L. 102-550,
    Oct. 28, 1992, 106 Stat. 3681. For complete classification of title
    I to the Code, see Tables.
      Section 1437l of this title, referred to in subsec. (f)(1), (2),
    was repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 21,
    1998, 112 Stat. 2564.
      Section 503(a) of the Quality Housing and Work Responsibility Act
    of 1998, referred to in subsec. (f)(1), (3), is section 503(a) of
    Pub. L. 105-276, which is set out as an Effective Date of 1998
    Amendment note under section 1437 of this title.


-MISC1-
                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

                                TRANSITION                            
      Pub. L. 105-276, title V, Sec. 537(c), Oct. 21, 1998, 112 Stat.
    2592, provided that:
      "(1) Use of amounts. - Any amounts made available to a public
    housing agency to carry out section 202 of the Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 1996 (enacted as section 101(e) of the
    Omnibus Consolidated Rescissions and Appropriations Act of 1996
    (Public Law 104-134; 110 Stat. 1321-279)) [former 42 U.S.C. 1437l
    note] may be used, to the extent or in such amounts as are or have
    been provided in advance in appropriation Acts, to carry out
    section 33 of the United States Housing Act of 1937 [42 U.S.C.
    1437z-5] (as added by subsection (a) of this section).
      "(2) Savings provision. - Notwithstanding the amendments made by
    this section [enacting this section and repealing provisions set
    out as a note under section 1437l of this title], section 202 of
    the Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1996 (42
    U.S.C. 14371 [1437l] note) and any regulations implementing such
    section, as in effect immediately before the enactment of this Act
    [Oct. 21, 1998], shall continue to apply to public housing
    developments identified by the Secretary or a public housing agency
    for conversion pursuant to that section or for assessment of
    whether such conversion is required prior to enactment of this
    Act."

-End-



-CITE-
    42 USC Sec. 1437z-6                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-6. Services for public and Indian housing residents

-STATUTE-
    (a) In general
      To the extent that amounts are provided in advance in
    appropriations Acts, the Secretary may make grants to public
    housing agencies on behalf of public housing residents, recipients
    under the Native American Housing Assistance and Self-Determination
    Act of 1996 [25 U.S.C. 4101 et seq.] (notwithstanding section 502
    of such Act [25 U.S.C. 4181]) on behalf of residents of housing
    assisted under such Act, or directly to resident management
    corporations, resident councils, or resident organizations
    (including nonprofit entities supported by residents), for the
    purposes of providing a program of supportive services and resident
    empowerment activities to provide supportive services to public
    housing residents and residents of housing assisted under such Act
    or assist such residents in becoming economically self-sufficient.
    (b) Eligible activities
      Grantees under this section may use such amounts only for
    activities on or near the property of the public housing agency or
    public housing project or the property of a recipient under such
    Act or housing assisted under such Act that are designed to promote
    the self-sufficiency of public housing residents or residents of
    housing assisted under such Act or provide supportive services for
    such residents, including activities relating to - 
        (1) physical improvements to a public housing project or
      residents of housing assisted under such Act in order to provide
      space for supportive services for residents;
        (2) the provision of service coordinators or a congregate
      housing services program for elderly individuals, elderly
      disabled individuals, nonelderly disabled individuals, or
      temporarily disabled individuals;
        (3) the provision of services related to work readiness,
      including education, job training and counseling, job search
      skills, business development training and planning, tutoring,
      mentoring, adult literacy, computer access, personal and family
      counseling, health screening, work readiness health services,
      transportation, and child care;
        (4) economic and job development, including employer linkages
      and job placement, and the start-up of resident microenterprises,
      community credit unions, and revolving loan funds, including the
      licensing, bonding, and insurance needed to operate such
      enterprises;
        (5) resident management activities and resident participation
      activities; and
        (6) other activities designed to improve the economic self-
      sufficiency of residents.
    (c) Funding distribution
      (1) In general
        Except for amounts provided under subsection (d) of this
      section, the Secretary may distribute amounts made available
      under this section on the basis of a competition or a formula, as
      appropriate.
      (2) Factors for distribution
        Factors for distribution under paragraph (1) shall include - 
          (A) the demonstrated capacity of the applicant to carry out a
        program of supportive services or resident empowerment
        activities;
          (B) the ability of the applicant to leverage additional
        resources for the provision of services; and
          (C) the extent to which the grant will result in a high
        quality program of supportive services or resident empowerment
        activities.
    (d) Matching requirement
      The Secretary may not make any grant under this section to any
    applicant unless the applicant supplements amounts made available
    under this section with funds from sources other than this section
    in an amount equal to not less than 25 percent of the grant amount.
    Such supplemental amounts may include - 
        (1) funds from other Federal sources;
        (2) funds from any State, local, or tribal government sources;
        (3) funds from private contributions; and
        (4) the value of any in-kind services or administrative costs
      provided to the applicant.
    (e) Funding for resident organizations
      To the extent that there are a sufficient number of qualified
    applications for assistance under this section, not less than 25
    percent of any amounts appropriated to carry out this section shall
    be provided directly to resident councils, resident organizations,
    and resident management corporations. In any case in which a
    resident council, resident organization, or resident management
    corporation lacks adequate expertise, the Secretary may require the
    council, organization, or corporation to utilize other qualified
    organizations as contract administrators with respect to financial
    assistance provided under this section.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 34, as added Pub. L. 105-
    276, title V, Sec. 538(a), Oct. 21, 1998, 112 Stat. 2592; amended
    Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 221(a)], Oct. 27,
    2000, 114 Stat. 1441, 1441A-29.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Native American Housing Assistance and Self-Determination Act
    of 1996, referred to in subsecs. (a) and (b), is Pub. L. 104-330,
    Oct. 26, 1996, 110 Stat. 4016, as amended, which is classified
    principally to chapter 43 (Sec. 4101 et seq.) of Title 25, Indians.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 4101 of Title 25 and Tables.


-MISC1-
                                AMENDMENTS                            
      2000 - Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 221(a)(1)],
    substituted "public and Indian housing" for "public housing" in
    section catchline.
      Subsec. (a). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    221(a)(2)], inserted "recipients under the Native American Housing
    Assistance and Self-Determination Act of 1996 (notwithstanding
    section 502 of such Act) on behalf of residents of housing assisted
    under such Act," after "on behalf of public housing residents," and
    inserted "and residents of housing assisted under such Act" after
    "supportive services to public housing residents".
      Subsec. (b). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    221(a)(3)(A), (B)], in introductory provisions, inserted "or the
    property of a recipient under such Act or housing assisted under
    such Act" after "public housing project" and "or residents of
    housing assisted under such Act" after "public housing residents".
      Subsec. (b)(1). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    221(a)(3)(C)], inserted "or residents of housing assisted under
    such Act" after "public housing project".
      Subsec. (d)(2). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    221(a)(4)], substituted "State, local, or tribal government" for
    "State or local government".

                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

                    ASSESSMENT AND REPORT BY SECRETARY                
      Pub. L. 105-276, title V, Sec. 538(b), Oct. 21, 1998, 112 Stat.
    2594, as amended by Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    221(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A-29, provided that:
    "Not later than 3 years after the date of the enactment of the
    Quality Housing and Work Responsibility Act of 1998 [Oct. 21,
    1998], the Secretary of Housing and Urban Development shall - 
        "(1) conduct an evaluation and assessment of grants carried out
      by resident organizations, and particularly of the effect of the
      grants on living conditions in public housing and housing
      assisted under the Native American Housing Assistance and Self-
      Determination Act of 1996 [25 U.S.C. 4101 et seq.]; and
        "(2) submit to the Congress a report setting forth the findings
      of the Secretary as a result of the evaluation and assessment and
      including any recommendations the Secretary determines to be
      appropriate.
      "This subsection shall take effect on the date of the enactment
    of this Act [Oct. 21, 1998]."

-End-



-CITE-
    42 USC Sec. 1437z-7                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-
    Sec. 1437z-7. Mixed-finance public housing

-STATUTE-
    (a) Authority
      A public housing agency may own, operate, assist, or otherwise
    participate in 1 or more mixed-finance projects in accordance with
    this section.
    (b) Assistance
      (1) Forms
        A public housing agency may provide to a mixed-finance project
      assistance from the Operating Fund under section 1437g of this
      title, assistance from the Capital Fund under such section, or
      both forms of assistance. A public housing agency may, in
      accordance with regulations established by the Secretary, provide
      capital assistance to a mixed-finance project in the form of a
      grant, loan, guarantee, or other form of investment in the
      project, which may involve drawdown of funds on a schedule
      commensurate with construction draws for deposit into an interest-
      bearing escrow account to serve as collateral or credit
      enhancement for bonds issued by a public agency, or for other
      forms of public or private borrowings, for the construction or
      rehabilitation of the development.
      (2) Use
        To the extent deemed appropriate by the Secretary, assistance
      used in connection with the costs associated with the operation
      and management of mixed-finance projects may be used for funding
      of an operating reserve to ensure affordability for low-income
      and very low-income families in lieu of the availability of
      operating funds for public housing units in a mixed-finance
      project.
    (c) Compliance with public housing requirements
      The units assisted with capital or operating assistance in a
    mixed-finance project shall be developed, operated, and maintained
    in accordance with the requirements of this chapter relating to
    public housing during the period required by under (!1) this
    chapter, unless otherwise specified in this section. For purposes
    of this chapter, any reference to public housing owned or operated
    by a public housing agency shall include dwelling units in a mixed
    finance project that are assisted by the agency with capital or
    operating assistance.

    (d) Mixed-finance projects
      (1) In general
        For purposes of this section, the term "mixed-finance project"
      means a project that meets the requirements of paragraph (2) and
      is financially assisted by private resources, which may include
      low-income housing tax credits, in addition to amounts provided
      under this chapter.
      (2) Types of projects
        The term includes a project that is developed - 
          (A) by a public housing agency or by an entity affiliated
        with a public housing agency;
          (B) by a partnership, a limited liability company, or other
        entity in which the public housing agency (or an entity
        affiliated with a public housing agency) is a general partner,
        managing member, or otherwise participates in the activities of
        that entity;
          (C) by any entity that grants to the public housing agency
        the right of first refusal and first option to purchase, after
        the close of the compliance period, of the qualified low-income
        building in which the public housing units exist in accordance
        with section 42(i)(7) of title 26; or
          (D) in accordance with such other terms and conditions as the
        Secretary may prescribe by regulation.
    (e) Structure of projects
      Each mixed-finance project shall be developed - 
        (1) in a manner that ensures that public housing units are made
      available in the project, by regulatory and operating agreement,
      master contract, individual lease, condominium or cooperative
      agreement, or equity interest;
        (2) in a manner that ensures that the number of public housing
      units bears approximately the same proportion to the total number
      of units in the mixed-finance project as the value of the total
      financial commitment provided by the public housing agency bears
      to the value of the total financial commitment in the project, or
      shall not be less than the number of units that could have been
      developed under the conventional public housing program with the
      assistance, or as may otherwise be approved by the Secretary; and
        (3) in accordance with such other requirements as the Secretary
      may prescribe by regulation.
    (f) Taxation
      (1) In general
        A public housing agency may elect to exempt all public housing
      units in a mixed-finance project - 
          (A) from the provisions of section 1437d(d) of this title,
        and instead subject such units to local real estate taxes; and
          (B) from the finding of need and cooperative agreement
        provisions under section 1437c(e)(1)(ii) and 1437c(e)(2) of
        this title, but only if the development of the units is not
        inconsistent with the jurisdiction's comprehensive housing
        affordability strategy.
      (2) Low-income housing tax credit
        With respect to any unit in a mixed-finance project that is
      assisted pursuant to the low-income housing tax credit under
      section 42 of title 26, the rents charged to the residents may be
      set at levels not to exceed the amounts allowable under that
      section, provided that such levels for public housing residents
      do not exceed the amounts allowable under section 1437a of this
      title.
    (g) Use of savings
      Notwithstanding any other provision of this chapter, to the
    extent deemed appropriate by the Secretary, to facilitate the
    establishment of socioeconomically mixed communities, a public
    housing agency that uses assistance from the Capital Fund for a
    mixed-finance project, to the extent that income from such a
    project reduces the amount of assistance used for operating or
    other costs relating to public housing, may use such resulting
    savings to rent privately developed dwelling units in the
    neighborhood of the mixed-finance project. Such units shall be made
    available for occupancy only by low-income families eligible for
    residency in public housing.
    (h) Effect of certain contract terms
      If an entity that owns or operates a mixed-finance project, that
    includes a significant number of units other than public housing
    units enters into a contract with a public housing agency, the
    terms of which obligate the entity to operate and maintain a
    specified number of units in the project as public housing units in
    accordance with the requirements of this chapter for the period
    required by law, such contractual terms may provide that, if, as a
    result of a reduction in appropriations under section 1437g of this
    title or any other change in applicable law, the public housing
    agency is unable to fulfill its contractual obligations with
    respect to those public housing units, that entity may deviate,
    under procedures and requirements developed through regulations by
    the Secretary, from otherwise applicable restrictions under this
    chapter regarding rents, income eligibility, and other areas of
    public housing management with respect to a portion or all of those
    public housing units, to the extent necessary to preserve the
    viability of those units while maintaining the low-income character
    of the units to the maximum extent practicable.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title I, Sec. 35, as added Pub. L. 105-
    276, title V, Sec. 539[(a)], Oct. 21, 1998, 112 Stat. 2594.)


-MISC1-
                              EFFECTIVE DATE                          
      Section effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement section before such date except to extent otherwise
    provided, see section 503 of Pub. L. 105-276, set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title.

                                REGULATIONS                            
      Pub. L. 105-276, title V, Sec. 539(b), Oct. 21, 1998, 112 Stat.
    2596, provided that: "The Secretary shall issue such regulations as
    may be necessary to promote the development of mixed-finance
    projects, as that term is defined in section 3(b) of the United
    States Housing Act of 1937 [42 U.S.C. 1437a(b)] (as amended by this
    Act)."

-FOOTNOTE-
    (!1) So in original.


-End-


-CITE-
    42 USC SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND
           ALASKA NATIVES                                  01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-HEAD-
      SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES  

-End-



-CITE-
    42 USC Secs. 1437aa to 1437ee                               01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-HEAD-
    Secs. 1437aa to 1437ee. Repealed.

-MISC1-
    Secs. 1437aa to 1437ee. Repealed. Pub. L. 104-330, title V, Sec.
      501(a), Oct. 26, 1996, 110 Stat. 4041.
      Section 1437aa, act Sept. 1, 1937, ch. 896, title II, Sec. 201,
    as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 676;
    amended Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(2), 104
    Stat. 4236; Oct. 28, 1992, Pub. L. 102-550, title I, Sec. 122(a),
    106 Stat. 3708, related to establishment of separate program of
    assisted housing for Indians and Alaska Natives.
      Section 1437bb, act Sept. 1, 1937, ch. 896, title II, Sec. 202,
    as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 676;
    amended Nov. 28, 1990, Pub. L. 101-625, title V, Secs. 516, 572(1),
    104 Stat. 4199, 4236; Oct. 28, 1992, Pub. L. 102-550, title I, Sec.
    122(b), 106 Stat. 3709, related to mutual help homeownership
    opportunity program.
      Section 1437cc, act Sept. 1, 1937, ch. 896, title II, Sec. 203,
    as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 679;
    amended Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(2), 104
    Stat. 4236; Oct. 28, 1992, Pub. L. 102-550, title I, Sec. 122(c),
    106 Stat. 3709, related to public housing maximum contributions,
    provision of related facilities and services, and accessibility to
    physically handicapped persons.
      Section 1437dd, act Sept. 1, 1937, ch. 896, title II, Sec. 204,
    as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 679;
    amended Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(1), 104
    Stat. 4236, related to annual report under section 3536 of this
    title.
      Section 1437ee, act Sept. 1, 1937, ch. 896, title II, Sec. 205,
    as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 680,
    related to issuance of regulations to carry out this subchapter.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective Oct. 1, 1997, except as otherwise expressly
    provided, see section 107 of Pub. L. 104-330, set out as an
    Effective Date note under section 4101 of Title 25, Indians.

-End-



-CITE-
    42 USC Sec. 1437ff                                          01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-HEAD-
    Sec. 1437ff. Transferred

-COD-
                               CODIFICATION                           
      Section, Pub. L. 101-625, title IX, Sec. 959, Nov. 28, 1990, 104
    Stat. 4423, which related to waiver of matching funds requirements
    in Indian housing programs, was transferred to section 4104 of
    Title 25, Indians.

-End-


-CITE-
    42 USC SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING
           HOMEOWNERSHIP                                   01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
          SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP      


-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-330, title V, Sec. 501(c)(1), Oct. 26, 1996,
    110 Stat. 4042, added subchapter heading and struck out former
    subchapter heading which read as follows: "HOPE FOR PUBLIC AND
    INDIAN HOUSING HOMEOWNERSHIP".

-End-



-CITE-
    42 USC Sec. 1437aaa                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa. Program authority

-STATUTE-
    (a) In general
      The Secretary is authorized to make - 
        (1) planning grants to help applicants to develop homeownership
      programs in accordance with this subchapter; and
        (2) implementation grants to carry out homeownership programs
      in accordance with this subchapter.
    (b) Authority to reserve housing assistance
      In connection with a grant under this subchapter, the Secretary
    may reserve authority to provide assistance under section 1437f of
    this title to the extent necessary to provide replacement housing
    and rental assistance for a nonpurchasing tenant who resides in the
    project on the date the Secretary approves the application for an
    implementation grant, for use by the tenant in another project.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 301, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4148; amended
    Pub. L. 102-550, title I, Sec. 181(a)(2)(A), Oct. 28, 1992, 106
    Stat. 3735.)


-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (c). Pub. L. 102-550 struck out subsec. (c) which
    read as follows: "There are authorized to be appropriated for
    grants under this subchapter $68,000,000 for fiscal year 1991 and
    $380,000,000 for fiscal year 1992. Any amount appropriated pursuant
    to this subsection shall remain available until expended."

                                SHORT TITLE                            
      Section 401 of title IV of Pub. L. 101-625 provided that: "This
    title [enacting this subchapter and subchapter IV (Sec. 12871 et
    seq.) of chapter 130 of this title, amending sections 1437c, 1437f,
    1437l, 1437p, 1437r, and 1437s of this title and section 1709 of
    Title 12, Banks and Banking, and enacting provisions set out as
    notes under this section and sections 1437c and 1437aa of this
    title] may be cited as the 'Homeownership and Opportunity Through
    HOPE Act'."

       ESTABLISHMENT AND IMPLEMENTATION OF REQUIREMENTS BY SECRETARY   
      Section 418 of Pub. L. 101-625 provided that: "Not later than the
    expiration of the 180-day period beginning on the date that funds
    authorized under title III of the United States Housing Act of 1937
    [this subchapter] first become available for obligation, the
    Secretary shall by notice establish such requirements as may be
    necessary to carry out the provisions of this subtitle [subtitle A
    (Secs. 411-419) of title IV of Pub. L. 101-625, enacting this
    subchapter, amending sections 1437c, 1437f, 1437l, 1437p, 1437r,
    and 1437s of this title, and enacting provisions set out as notes
    under sections 1437c and 1437aa of this title]. Such requirements
    shall be subject to section 553 of title 5, United States Code. The
    Secretary shall issue regulations based on the initial notice
    before the expiration of the 8-month period beginning on the date
    of the notice."

-End-



-CITE-
    42 USC Sec. 1437aaa-1                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-1. Planning grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make planning grants to applicants
    for the purpose of developing homeownership programs under this
    subchapter. The amount of a planning grant under this section may
    not exceed $200,000, except that the Secretary may for good cause
    approve a grant in a higher amount.
    (b) Eligible activities
      Planning grants may be used for activities to develop
    homeownership programs (which may include programs for cooperative
    ownership), including - 
        (1) development of resident management corporations and
      resident councils;
        (2) training and technical assistance for applicants related to
      development of a specific homeownership program;
        (3) studies of the feasibility of a homeownership program;
        (4) inspection for lead-based paint hazards, as required by
      section 4822(a) of this title;
        (5) preliminary architectural and engineering work;
        (6) tenant and homebuyer counseling and training;
        (7) planning for economic development, job training, and self-
      sufficiency activities that promote economic self-sufficiency of
      homebuyers and homeowners under the homeownership program;
        (8) development of security plans; and
        (9) preparation of an application for an implementation grant
      under this subchapter.
    (c) Application
      (1) Form and procedures
        An application for a planning grant shall be submitted by an
      applicant in such form and in accordance with such procedures as
      the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for a planning grant, specifying the activities
        proposed to be carried out, the schedule for completing the
        activities, the personnel necessary to complete the activities,
        and the amount of the grant requested;
          (B) a description of the applicant and a statement of its
        qualifications;
          (C) identification and description of the public housing
        project or projects involved, and a description of the
        composition of the tenants, including family size and income;
          (D) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located (or, during the first 12 months after November 28,
        1990, that the application is consistent with such other
        existing State or local housing plan or strategy that the
        Secretary shall determine to be appropriate); and
          (E) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 794 of title 29, and the Age Discrimination Act
        of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively
        further fair housing.
    (d) Selection criteria
      The Secretary shall, by regulation, establish selection criteria
    for a national competition for assistance under this section, which
    shall include - 
        (1) the qualifications or potential capabilities of the
      applicant;
        (2) the extent of tenant interest in the development of a
      homeownership program for the project;
        (3) the potential of the applicant for developing a successful
      and affordable homeownership program and the suitability of the
      project for homeownership;
        (4) national geographic diversity among projects for which
      applicants are selected to receive assistance; and
        (5) such other factors that the Secretary shall require that
      (in the determination of the Secretary) are appropriate for
      purposes of carrying out the program established by this
      subchapter in an effective and efficient manner.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 302, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4149; amended
    Pub. L. 102-550, title X, Sec. 1012(h)(1), Oct. 28, 1992, 106 Stat.
    3906.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Housing Act, referred to in subsec. (c)(2)(E), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (c)(2)(E), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.


-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (b)(4) to (9). Pub. L. 102-550 added par. (4) and
    redesignated former pars. (4) to (8) as (5) to (9), respectively.

-End-



-CITE-
    42 USC Sec. 1437aaa-2                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-2. Implementation grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make implementation grants to
    applicants for the purpose of carrying out homeownership programs
    approved under this subchapter.
    (b) Eligible activities
      Implementation grants may be used for activities to carry out
    homeownership programs (including programs for cooperative
    ownership) that meet the requirements under this subchapter,
    including the following activities:
        (1) Architectural and engineering work.
        (2) Implementation of the homeownership program, including
      acquisition of the public housing project from a public housing
      agency for the purpose of transferring ownership to eligible
      families in accordance with a homeownership program that meets
      the requirements under this subchapter.
        (3) Rehabilitation of any public housing project covered by the
      homeownership program, in accordance with standards established
      by the Secretary.
        (4) Abatement of lead-based paint hazards, as required by
      section 4822(a) of this title.
        (5) Administrative costs of the applicant, which may not exceed
      15 percent of the amount of assistance provided under this
      section.
        (6) Development of resident management corporations and
      resident management councils, but only if the applicant has not
      received assistance under section 1437aaa-1 of this title for
      such activities.
        (7) Counseling and training of homebuyers and homeowners under
      the homeownership program.
        (8) Relocation of tenants who elect to move.
        (9) Any necessary temporary relocation of tenants during
      rehabilitation.
        (10) Funding of operating expenses and replacement reserves of
      the project covered by the homeownership program, except that the
      amount of assistance for operating expenses shall not exceed the
      amount the project would have received if it had continued to
      receive such assistance from the Operating Fund, with adjustments
      comparable to those that would have been made under section 1437g
      of this title, and except that implementation grants may not be
      used under this paragraph to fund operating expenses for
      scattered site public housing acquired under a homeownership
      program.
        (11) Implementation of a replacement housing plan.
        (12) Legal fees.
        (13) Defraying costs for the ongoing training needs of the
      recipient that are related to developing and carrying out the
      homeownership program.
        (14) Economic development activities that promote economic self-
      sufficiency of homebuyers, residents, and homeowners under the
      homeownership program.
    (c) Matching funding
      (1) In general
        Each recipient shall assure that contributions equal to not
      less than 25 percent of the grant amount made available under
      this section, excluding any amounts provided for post-sale
      operating expenses and replacement housing, shall be provided
      from non-Federal sources to carry out the homeownership program.
      (2) Form
        Such contributions may be in the form of - 
          (A) cash contributions from non-Federal resources, which may
        not include Federal tax expenditures or funds from a grant made
        under section 5306(b) of this title or section 5306(d) of this
        title;
          (B) payment of administrative expenses, as defined by the
        Secretary, from non-Federal resources, including funds from a
        grant made under section 5306(b) of this title or section
        5306(d) of this title;
          (C) the value of taxes, fees, or other charges that are
        normally and customarily imposed but are waived, foregone, or
        deferred in a manner that facilitates the implementation of a
        homeownership program assisted under this subchapter;
          (D) the value of land or other real property as appraised
        according to procedures acceptable to the Secretary;
          (E) the value of investment in on-site and off-site
        infrastructure required for a homeownership program assisted
        under this subchapter; or
          (F) such other in-kind contributions as the Secretary may
        approve.

      Contributions for administrative expenses shall be recognized
      only up to an amount equal to 7 percent of the total amount of
      grants made available under this section.
      (3) Reduction of requirement
        The Secretary shall reduce the matching requirement for
      homeownership programs carried out under this section in
      accordance with the formula established under section 220(d) of
      the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.
      12750(d)].
    (d) Application
      (1) Form and procedure
        An application for an implementation grant shall be submitted
      by an applicant in such form and in accordance with such
      procedures as the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for an implementation grant, specifying the
        amount of the grant requested and its proposed uses;
          (B) if applicable, an application for assistance under
        section 1437f of this title, which shall specify the proposed
        uses of such assistance and the period during which the
        assistance will be needed;
          (C) a description of the qualifications and experience of the
        applicant in providing housing for low-income families;
          (D) a description of the proposed homeownership program,
        consistent with section 1437aaa-3 of this title and the other
        requirements of this subchapter, which shall specify the
        activities proposed to be carried out and their estimated
        costs, identifying reasonable schedules for carrying it out,
        and demonstrating that the program will comply with the
        affordability requirements under section 1437aaa-3(b) of this
        title;
          (E) identification and description of the public housing
        project or projects involved, and a description of the
        composition of the tenants, including family size and income;
          (F) a description of and commitment for the resources that
        are expected to be made available to provide the matching
        funding required under subsection (c) of this section and of
        other resources that are expected to be made available in
        support of the homeownership program;
          (G) identification and description of the financing proposed
        for any (i) rehabilitation and (ii) acquisition (I) of the
        property, where applicable, by a resident council or other
        entity for transfer to eligible families, and (II) by eligible
        families of ownership interests in, or shares representing,
        units in the project;
          (H) if the applicant is not a public housing agency, the
        proposed sales price, if any, the basis for such price
        determination, and terms to the applicant;
          (I) the estimated sales prices, if any, and terms to eligible
        families;
          (J) any proposed restrictions on the resale of units under a
        homeownership program;
          (K) identification and description of the entity that will
        operate and manage the property;
          (L) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 105 of the Cranston-Gonzalez National Affordable
        Housing Act [42 U.S.C. 12705] that the proposed activities are
        consistent with the approved housing strategy of the State or
        unit of general local government within which the project is
        located (or, during the first 12 months after November 28,
        1990, that the application is consistent with such other
        existing State or local housing plan or strategy that the
        Secretary shall determine to be appropriate); and
          (M) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 794 of title 29, and the Age Discrimination Act
        of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively
        further fair housing.
    (e) Selection criteria
      The Secretary shall establish selection criteria for a national
    competition for assistance under this section, which shall include -
     
        (1) the ability of the applicant to develop and carry out the
      proposed homeownership program, taking into account the quality
      of any related ongoing program of the applicant, and the extent
      of tenant interest in the development of a homeownership program
      and community support;
        (2) the feasibility of the homeownership program;
        (3) the extent to which current tenants and other eligible
      families will be able to afford the purchase;
        (4) the quality and viability of the proposed homeownership
      program, including the viability of the economic self-sufficiency
      plan;
        (5) the extent to which funds for activities that do not
      qualify as eligible activities will be provided in support of the
      homeownership program;
        (6) whether the approved comprehensive housing affordability
      strategy for the jurisdiction within which the public housing
      project is located includes the proposed homeownership program as
      one of the general priorities identified pursuant to section
      105(b)(7) of the Cranston-Gonzalez National Affordable Housing
      Act [42 U.S.C. 12705(b)(7)];
        (7) national geographic diversity among housing for which
      applicants are selected to receive assistance; and
        (8) the extent to which a sufficient supply of affordable
      rental housing exists in the locality, so that the implementation
      of the homeownership program will not reduce the number of such
      rental units available to residents currently residing in such
      units or eligible for residency in such units.
    (f) Location within participating jurisdictions
      The Secretary may approve applications for grants under this
    subchapter only for public housing projects located within the
    boundaries of jurisdictions - 
        (1) which are participating jurisdictions under title III of
      the Cranston-Gonzalez National Affordable Housing Act; or
        (2) on behalf of which the agency responsible for affordable
      housing has submitted a housing strategy or plan.
    (g) Approval
      The Secretary shall notify each applicant, not later than 6
    months after the date of the submission of the application, whether
    the application is approved or not approved. The Secretary may
    approve the application for an implementation grant with a
    statement that the application for the section 8 [42 U.S.C. 1437f]
    assistance for replacement housing and for residents of the project
    not purchasing units is conditionally approved, subject to the
    availability of appropriations in subsequent fiscal years.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 303, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4150; amended
    Pub. L. 102-550, title I, Sec. 181(b), (c), (g)(1), title X, Sec.
    1012(h)(2), Oct. 28, 1992, 106 Stat. 3735, 3736, 3906; Pub. L. 105-
    276, title V, Sec. 519(c)(1), Oct. 21, 1998, 112 Stat. 2561.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This subchapter, referred to in subsecs. (b) (introductory
    provisions) and (c)(2)(C), (E), was in the original "this
    subtitle", and was translated as reading "this title", meaning
    title III of act Sept. 1, 1937, ch. 896, as added by Pub. L. 101-
    625, to reflect the probable intent of Congress, because title III
    of act Sept. 1, 1937, does not contain subtitles.
      The Fair Housing Act, referred to in subsec. (d)(2)(M), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I of chapter 45 (Sec.
    3601 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (d)(2)(M),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (d)(2)(M), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsec. (f)(1), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat.
    4079. Title III of the Act enacted subchapter III (Sec. 12851 et
    seq.) of chapter 130 of this title and sections 1735f-17 and 1735f-
    18 of Title 12, Banks and Banking, amended sections 1703, 1708,
    1709, 1715d, 1715z-20, 1721, and 1735f-9 of Title 12, and enacted
    provisions set out as notes under sections 1703, 1709, 1713, and
    1735f-18 of Title 12. For complete classification of this Act to
    the Code, see Short Title note set out under section 12701 of this
    title and Tables.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (b)(10). Pub. L. 105-276 substituted "such
    assistance from the Operating Fund" for "such assistance under
    section 1437g of this title".
      1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 181(g)(1)(A), struck
    out "(not including scattered site single family housing of a
    public housing agency)" after "public housing project".
      Subsec. (b)(4) to (8). Pub. L. 102-550, Sec. 1012(h)(2), added
    par. (4) and redesignated former pars. (4) to (7) as (5) to (8),
    respectively. Former par. (8) redesignated (9).
      Subsec. (b)(9). Pub. L. 102-550, Sec. 1012(h)(2)(A), redesignated
    par. (8) as (9). Former par. (9) redesignated (10).
      Pub. L. 102-550, Sec. 181(g)(1)(B), which directed insertion of
    ", and except that implementation grants may not be used under this
    paragraph to fund operating expenses for scattered site public
    housing acquired under a homeownership program" before period at
    end of section "303(b)(9) of the Cranston-Gonzalez National
    Affordable Housing Act (42 U.S.C. 1437aaa-2(b)(9))", was executed
    by making the insertion before period at end of subsec. (b)(9) of
    this section, which is section 303 of the United States Housing Act
    of 1937, to reflect the probable intent of Congress.
      Subsec. (b)(10) to (14). Pub. L. 102-550, Sec. 1012(h)(2)(A),
    redesignated pars. (9) to (13) as (10) to (14), respectively.
      Subsec. (c)(1). Pub. L. 102-550, Sec. 181(b)(1), inserted "and
    replacement housing" after "expenses".
      Subsec. (c)(3). Pub. L. 102-550, Sec. 181(b)(2), added par. (3).
      Subsec. (e)(8). Pub. L. 102-550, Sec. 181(c), struck out "of the
    type assisted under this subchapter" after "rental housing" and
    "appreciably" before "reduce".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

-End-



-CITE-
    42 USC Sec. 1437aaa-3                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-3. Homeownership program requirements

-STATUTE-
    (a) In general
      A homeownership program under this subchapter shall provide for
    acquisition by eligible families of ownership interests in, or
    shares representing, at least one-half of the units in a public
    housing project under any arrangement determined by the Secretary
    to be appropriate, such as cooperative ownership (including limited
    equity cooperative ownership) and fee simple ownership (including
    condominium ownership), for occupancy by the eligible families.
    (b) Affordability
      A homeownership program under this subchapter shall provide for
    the establishment of sales prices (including principal, insurance,
    taxes, and interest and closing costs) for initial acquisition of
    the property from the public housing agency if the applicant is not
    a public housing agency, and for sales to eligible families, such
    that an eligible family shall not be required to expend more than
    30 percent of the adjusted income of the family per month to
    complete a sale under the homeownership program.
    (c) Plan
      A homeownership program under this subchapter shall provide, and
    include a plan, for - 
        (1) identifying and selecting eligible families to participate
      in the homeownership program;
        (2) providing relocation assistance to families who elect to
      move;
        (3) ensuring continued affordability by tenants, homebuyers,
      and homeowners in the project;
        (4) providing ongoing training and counseling for homebuyers
      and homeowners; and
        (5) replacing units in eligible projects covered by a
      homeownership program.
    (d) Acquisition and rehabilitation limitations
      Acquisition or rehabilitation of public housing projects under a
    homeownership program under this subchapter may not consist of
    acquisition or rehabilitation of less than the whole public housing
    project in a project consisting of more than 1 building. The
    provisions of this subsection may be waived upon a finding by the
    Secretary that the sale of less than all the buildings in a project
    is feasible and will not result in a hardship to any tenants of the
    project who are not included in the homeownership program.
    (e) Financing
      (1) In general
        The application shall identify and describe the proposed
      financing for (A) any rehabilitation, and (B) acquisition (i) of
      the project, where applicable, by an entity other than the public
      housing agency for transfer to eligible families, and (ii) by
      eligible families of ownership interests in, or shares
      representing, units in the project. Financing may include use of
      the implementation grant, sale for cash, or other sources of
      financing (subject to applicable requirements), including
      conventional mortgage loans and mortgage loans insured under
      title II of the National Housing Act [12 U.S.C. 1707 et seq.].
      (2) Prohibition against pledges
        Property transferred under this subchapter shall not be pledged
      as collateral for debt or otherwise encumbered except when the
      Secretary determines that - 
          (A) such encumbrance will not threaten the long-term
        availability of the property for occupancy by low-income
        families;
          (B) neither the Federal Government nor the public housing
        agency will be exposed to undue risks related to action that
        may have to be taken pursuant to paragraph (3);
          (C) any debt obligation can be serviced from project income,
        including operating assistance; and
          (D) the proceeds of such encumbrance will be used only to
        meet housing standards in accordance with subsection (f) of
        this section or to make such additional capital improvements as
        the Secretary determines to be consistent with the purposes of
        this subchapter.
      (3) Opportunity to cure
        Any lender that provides financing in connection with a
      homeownership program under this subchapter shall give the public
      housing agency, resident management corporation, individual
      owner, or other appropriate entity a reasonable opportunity to
      cure a financial default before foreclosing on the property, or
      taking other action as a result of the default.
    (f) Housing quality standards
      The application shall include a plan ensuring that the unit - 
        (1) will be free from any defects that pose a danger to health
      or safety before transfer of an ownership interest in, or shares
      representing, a unit to an eligible family; and
        (2) will, not later than 2 years after the transfer to an
      eligible family, meet minimum housing standards established by
      the Secretary for the purposes of this subchapter.
    (g) Repealed. Pub. L. 105-276, title V, Sec. 531(b)(1), Oct. 21,
      1998, 112 Stat. 2573
    (h) Protection of non-purchasing families
      (1) In general
        No tenant residing in a dwelling unit in a public housing
      project on the date the Secretary approves an application for an
      implementation grant may be evicted by reason of a homeownership
      program approved under this subchapter.
      (2) Replacement assistance
        If the tenant decides not to purchase a unit, or is not
      qualified to do so, the recipient shall, during the term of any
      operating assistance under the implementation grant, permit each
      otherwise qualified tenant to continue to reside in the project
      at rents that do not exceed levels consistent with section
      1437a(a) of this title or, if an otherwise qualified tenant
      chooses to move (at any time during the term of such operating
      assistance contract), the public housing agency shall, to the
      extent approved in appropriations Acts, offer such tenant (A) a
      unit in another public housing project, or (B) section 8 [42
      U.S.C. 1437f] assistance for use in other housing.
      (3) Relocation assistance
        The recipient shall also inform each such tenant that if the
      tenant chooses to move, the recipient will pay relocation
      assistance in accordance with the approved homeownership program.
      (4) Other rights
        Tenants renting a unit in a project transferred under this
      subchapter shall have all rights provided to tenants of public
      housing under this chapter.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 304, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4153; amended
    Pub. L. 102-550, title I, Sec. 181(g)(1)(A), Oct. 28, 1992, 106
    Stat. 3736; Pub. L. 104-19, title I, Sec. 1002(b), July 27, 1995,
    109 Stat. 236; Pub. L. 105-276, title V, Sec. 531(b)(1), Oct. 21,
    1998, 112 Stat. 2573.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Housing Act, referred to in subsec. (e)(1), is act
    June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the
    Act is classified principally to subchapter II (Sec. 1707 et seq.)
    of chapter 13 of Title 12, Banks and Banking. For complete
    classification of this Act to the Code, see section 1701 of Title
    12 and Tables.
      This subchapter, referred to in subsec. (e)(3), was in the
    original "this subtitle", and was translated as reading "this
    title", meaning title III of act Sept. 1, 1937, ch. 896, as added
    by Pub. L. 101-625, to reflect the probable intent of Congress,
    because title III of act Sept. 1, 1937, does not contain subtitles.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (g). Pub. L. 105-276 struck out subsec. (g) which
    prohibited transfer of projects without plan for replacement
    housing. See 1995 Amendment note below.
      1995 - Subsec. (g). Pub. L. 104-19 struck out subsec. (g) which
    prohibited transfer of projects without plan for replacement
    housing.
      1992 - Subsec. (d). Pub. L. 102-550 struck out "(not including
    scattered site single family housing of a public housing agency)"
    after "housing project".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 531(b)(1) of Pub. L. 105-276 effective with
    respect to any plan for the demolition, disposition, or conversion
    to homeownership of public housing that is approved by Secretary
    after Sept. 30, 1995, see section 531(b)(2) of Pub. L. 105-276, set
    out as a note below.

                     EFFECTIVE DATE OF 1995 AMENDMENT                 
      Amendment by Pub. L. 104-19 effective for applications for
    demolition, disposition, or conversion to homeownership of public
    housing approved by the Secretary, and other consolidation and
    relocation activities of public housing agencies undertaken on,
    before, or after Sept. 30, 1995, and on or before Sept. 30, 1998,
    see section 1002(d) of Pub. L. 104-19, as amended, set out as a
    note under section 1437c of this title.

                      HOMEOWNERSHIP REPLACEMENT PLAN                  
      Pub. L. 105-276, title V, Sec. 531(b), Oct. 21, 1998, 112 Stat.
    2573, provided that:
      "(1) In general. - Notwithstanding subsections (b) and (c) of
    section 1002 of the Emergency Supplemental Appropriations for
    Additional Disaster Assistance, for Anti-terrorism Initiatives, for
    Assistance in the Recovery from the Tragedy that Occurred At
    Oklahoma City, and Rescissions Act, 1995 [amending this section and
    enacting provision set out as a note under section 1437c of this
    title] (Public Law 104-19; 109 Stat. 236), subsection (g) of
    section 304 of the United States Housing Act of 1937 (42 U.S.C.
    1437aaa-3(g)) is repealed.
      "(2) Effective date. - The amendment made by paragraph (1) shall
    be effective with respect to any plan for the demolition,
    disposition, or conversion to homeownership of public housing that
    is approved by the Secretary after September 30, 1995."

-End-



-CITE-
    42 USC Sec. 1437aaa-4                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-4. Other program requirements

-STATUTE-
    (a) Sale by public housing agency to applicant or other entity
      required
      Where the Secretary approves an application providing for the
    transfer of the eligible project from the public housing agency to
    another applicant, the public housing agency shall transfer the
    project to such other applicant, in accordance with the approved
    homeownership program.
    (b) Preferences
      In selecting eligible families for homeownership, the recipient
    shall give a first preference to otherwise qualified current
    tenants and a second preference to otherwise qualified eligible
    families who have completed participation in an economic self-
    sufficiency program specified by the Secretary.
    (c) Cost limitations
      The Secretary may establish cost limitations on eligible
    activities under this subchapter, subject to the provisions of this
    subchapter.
    (d) Annual contributions
      Notwithstanding the purchase of a public housing project under
    this section, or the purchase of a unit in a public housing project
    by an eligible family, the Secretary shall continue to pay annual
    contributions with respect to the project. Such contributions may
    not exceed the maximum contributions authorized in section 1437c(a)
    of this title.
    (e) Amounts from Operating Fund allocation
      Amounts from an allocation from the Operating Fund under section
    1437g of this title shall not be available with respect to a public
    housing project after the date of its sale by the public housing
    agency.
    (f) Use of proceeds from sales to eligible families
      The entity that transfers ownership interests in, or shares
    representing, units to eligible families, or another entity
    specified in the approved application, shall use the proceeds, if
    any, from the initial sale for costs of the homeownership program,
    including operating expenses, improvements to the project, business
    opportunities for low-income families, supportive services related
    to the homeownership program, additional homeownership
    opportunities, and other activities approved by the Secretary.
    (g) Restrictions on resale by homeowners
      (1) In general
        (A) Transfer permitted
          A homeowner under a homeownership program may transfer the
        homeowner's ownership interest in, or shares representing, the
        unit, except that a homeownership program may establish
        restrictions on the resale of units under the program.
        (B) Right to purchase
          Where a resident management corporation, resident council, or
        cooperative has jurisdiction over the unit, the corporation,
        council, or cooperative shall have the right to purchase the
        ownership interest in, or shares representing, the unit from
        the homeowner for the amount specified in a firm contract
        between the homeowner and a prospective buyer. If such an
        entity does not have jurisdiction over the unit or elects not
        to purchase and if the prospective buyer is not a low-income
        family, the public housing agency or the implementation grant
        recipient shall have the right to purchase the ownership
        interest in, or shares representing, the unit for the same
        amount.
        (C) Promissory note required
          The homeowner shall execute a promissory note equal to the
        difference between the market value and the purchase price,
        payable to the public housing agency or other entity designated
        in the homeownership plan, together with a mortgage securing
        the obligation of the note.
      (2) 6 years or less
        In the case of a transfer within 6 years of the acquisition
      under the program, the homeownership program shall provide for
      appropriate restrictions to assure that an eligible family may
      not receive any undue profit. The plan shall provide for limiting
      the family's consideration for its interest in the property to
      the total of - 
          (A) the contribution to equity paid by the family;
          (B) the value, as determined by such means as the Secretary
        shall determine through regulation, of any improvements
        installed at the expense of the family during the family's
        tenure as owner; and
          (C) the appreciated value determined by an inflation
        allowance at a rate which may be based on a cost-of-living
        index, an income index, or market index as determined by the
        Secretary through regulation and agreed to by the purchaser and
        the entity that transfers ownership interests in, or shares
        representing, units to eligible families (or another entity
        specified in the approved application), at the time of initial
        sale, and applied against the contribution to equity.

      Such an entity may, at the time of initial sale, enter into an
      agreement with the family to set a maximum amount which this
      appreciation may not exceed.
      (3) 6-20 years
        In the case of a transfer during the period beginning 6 years
      after the acquisition and ending 20 years after the acquisition,
      the homeownership program shall provide for the recapture by the
      Secretary or the program of an amount equal to the amount of the
      declining balance on the note described in paragraph (1)(C).
      (4) Use of recaptured funds
        Fifty percent of any portion of the net sales proceeds that may
      not be retained by the homeowner under the plan approved pursuant
      to this subsection shall be paid to the entity that transferred
      ownership interests in, or shares representing, units to eligible
      families, or another entity specified in the approved
      application, for use for improvements to the project, business
      opportunities for low-income families, supportive services
      related to the homeownership program, additional homeownership
      opportunities, and other activities approved by the Secretary.
      The remaining 50 percent shall be returned to the Secretary for
      use under this subchapter, subject to limitations contained in
      appropriations Acts. Such entity shall keep and make available to
      the Secretary all records necessary to calculate accurately
      payments due the Secretary under this subsection.
    (h) Third party rights
      The requirements under this subchapter regarding quality
    standards, resale, or transfer of the ownership interest of a
    homeowner shall be judicially enforceable against the grant
    recipient with respect to actions involving rehabilitation, and
    against purchasers of property under this subsection or their
    successors in interest with respect to other actions by affected
    low-income families, resident management corporations, resident
    councils, public housing agencies, and any agency, corporation, or
    authority of the United States Government. The parties specified in
    the preceding sentence shall be entitled to reasonable attorney
    fees upon prevailing in any such judicial action.
    (i) Dollar limitation on economic development activities
      Not more than an aggregate of $250,000 from amounts made
    available under sections 1437aaa-1 and 1437aaa-2 of this title may
    be used for economic development activities under sections 1437aaa-
    1(b)(6) (!1) and 1437aaa-2(b)(9) (!1) of this title for any
    project.

    (j) Timely homeownership
      Recipients shall transfer ownership of the property to tenants
    within a specified period of time that the Secretary determines to
    be reasonable. During the interim period when the property
    continues to be operated and managed as rental housing, the
    recipient shall utilize written tenant selection policies and
    criteria that are consistent with the public housing program and
    that are approved by the Secretary as consistent with the purpose
    of improving housing opportunities for low-income families. The
    recipient shall promptly notify in writing any rejected applicant
    of the grounds for any rejection.
    (k) Capability of resident management corporations and resident
      councils
      To be eligible to receive a grant under section 1437aaa-2 of this
    title, a resident management corporation or resident council shall
    demonstrate to the Secretary its ability to manage public housing
    by having done so effectively and efficiently for a period of not
    less than 3 years or by arranging for management by a qualified
    management entity.
    (l) Records and audit of recipients of assistance
      (1) In general
        Each recipient shall keep such records as may be reasonably
      necessary to fully disclose the amount and the disposition by
      such recipient of the proceeds of assistance received under this
      subchapter (and any proceeds from financing obtained in
      accordance with subsection (b) of this section or sales under
      subsections (f) and (g)(4) of this section), the total cost of
      the homeownership program in connection with which such
      assistance is given or used, and the amount and nature of that
      portion of the program supplied by other sources, and such other
      sources as will facilitate an effective audit.
      (2) Access by the Secretary
        The Secretary shall have access for the purpose of audit and
      examination to any books, documents, papers, and records of the
      recipient that are pertinent to assistance received under this
      subchapter.
      (3) Access by the Comptroller General
        The Comptroller General of the United States, or any of the
      duly authorized representatives of the Comptroller General, shall
      also have access for the purpose of audit and examination to any
      books, documents, papers, and records of the recipient that are
      pertinent to assistance received under this subchapter.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 305, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4155; amended
    Pub. L. 105-276, title V, Sec. 519(c)(2), Oct. 21, 1998, 112 Stat.
    2561.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This subchapter, referred to in subsec. (g)(4), was in the
    original "this subtitle", and was translated as reading "this
    title", meaning title III of act Sept. 1, 1937, ch. 896, as added
    by Pub. L. 101-625, to reflect the probable intent of Congress,
    because title III of act Sept. 1, 1937, does not contain subtitles.
      Section 1437aaa-1(b)(6) of this title, referred to in subsec.
    (i), was redesignated section 1437aaa-1(b)(7) of this title by Pub.
    L. 102-550, title X, Sec. 1012(h)(1)(A), Oct. 28, 1992, 106 Stat.
    3906.
      Section 1437aaa-2(b)(9) of this title, referred to in subsec.
    (i), was redesignated section 1437aaa-2(b)(10) of this title by
    Pub. L. 102-550, title X, Sec. 1012(h)(2)(A), Oct. 28, 1992, 106
    Stat. 3906.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (e). Pub. L. 105-276 substituted "Amounts from an
    allocation from the Operating Fund" for "Operating subsidies".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    42 USC Sec. 1437aaa-5                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-5. Definitions

-STATUTE-
      For purposes of this subchapter:
        (1) The term "applicant" means the following entities that may
      represent the tenants of the project:
          (A) A public housing agency.
          (B) A resident management corporation, established in
        accordance with requirements of the Secretary under section
        1437r of this title.
          (C) A resident council.
          (D) A cooperative association.
          (E) A public or private nonprofit organization.
          (F) A public body, including an agency or instrumentality
        thereof.

        (2) The term "eligible family" means - 
          (A) a family or individual who is a tenant in the public
        housing project on the date the Secretary approves an
        implementation grant;
          (B) a low-income family; or
          (C) a family or individual who is assisted under a housing
        program administered by the Secretary or the Secretary of
        Agriculture (not including any non-low income families assisted
        under any mortgage insurance program administered by either
        Secretary).

        (3) The term "homeownership program" means a program for
      homeownership meeting the requirements under this subchapter.
        (4) The term "recipient" means an applicant approved to receive
      a grant under this subchapter or such other entity specified in
      the approved application that will assume the obligations of the
      recipient under this subchapter.
        (5) The term "resident council" means any incorporated
      nonprofit organization or association that - 
          (A) is representative of the tenants of the housing;
          (B) adopts written procedures providing for the election of
        officers on a regular basis; and
          (C) has a democratically elected governing board, elected by
        the tenants of the housing.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 306, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4158; amended
    Pub. L. 104-330, title V, Sec. 501(c)(2), Oct. 26, 1996, 110 Stat.
    4042.)


-MISC1-
                                AMENDMENTS                            
      1996 - Par. (1)(A). Pub. L. 104-330, Sec. 501(c)(2)(A), struck
    out "(including an Indian housing authority)" after "agency".
      Par. (2)(A). Pub. L. 104-330, Sec. 501(c)(2)(B), struck out "or
    Indian" after "public".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

-End-



-CITE-
    42 USC Sec. 1437aaa-6                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-6. Relationship to other homeownership opportunities

-STATUTE-
      The program authorized under this subchapter shall be in addition
    to any other public housing homeownership and management
    opportunities, including opportunities under section 1437c(h) (!1)
    of this title.


-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 307, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4159; amended
    Pub. L. 104-330, title V, Sec. 501(c)(3), Oct. 26, 1996, 110 Stat.
    4042; Pub. L. 105-276, title V, Sec. 518(a)(2)(C), Oct. 21, 1998,
    112 Stat. 2551.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437c(h) of this title, referred to in text, was repealed
    and a new section 1437c(h), relating to audits, was added by Pub.
    L. 105-276, title V, Secs. 518(a)(1)(A), 566, Oct. 21, 1998, 112
    Stat. 2551, 2632. See 1998 Amendment note below.


-MISC1-
                                AMENDMENTS                            
      1998 - Pub. L. 105-276, which directed amendment of text by
    striking out "section 5(h) and" in original (a reference to section
    1437c(h) of this title), could not be executed because the word
    "and" does not appear.
      1996 - Pub. L. 104-330 struck out "and subchapter II of this
    chapter" after "section 1437c(h) of this title".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    42 USC Sec. 1437aaa-7                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-7. Limitation on selection criteria

-STATUTE-
      In establishing criteria for selecting applicants to receive
    assistance under this subchapter, the Secretary may not establish
    any selection criterion or criteria that grant or deny such
    assistance to an applicant (or have the effect of granting or
    denying assistance) based on the implementation, continuation, or
    discontinuation of any public policy, regulation, or law of any
    jurisdiction in which the applicant or project is located.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 308, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4159.)

-End-



-CITE-
    42 USC Sec. 1437aaa-8                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-
    Sec. 1437aaa-8. Annual report

-STATUTE-
      The Secretary shall annually submit to the Congress a report
    setting forth - 
        (1) the number, type, and cost of public housing units sold
      pursuant to this subchapter;
        (2) the income, race, gender, children, and other
      characteristics of families participating (or not participating)
      in homeownership programs funded under this subchapter;
        (3) the amount and type of financial assistance provided under
      and in conjunction with this subchapter;
        (4) the amount of financial assistance provided under this
      subchapter that was needed to ensure continued affordability and
      meet future maintenance and repair costs; and
        (5) the recommendations of the Secretary for statutory and
      regulatory improvements to the program.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title III, Sec. 309, as added Pub. L. 101-
    625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4159.)

-End-


-CITE-
    42 USC SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT
           DEMONSTRATION                                   01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
         SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION     

-End-



-CITE-
    42 USC Sec. 1437bbb                                         01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb. Purpose

-STATUTE-
      The purpose of this subchapter is to demonstrate the
    effectiveness of authorizing local governments and municipalities,
    in coordination with the public housing agencies for such
    jurisdictions - 
        (1) to receive and combine program allocations of covered
      housing assistance; and
        (2) to design creative approaches for providing and
      administering Federal housing assistance based on the particular
      needs of the jurisdictions that - 
          (A) provide incentives to low-income families with children
        whose head of the household is employed, seeking employment, or
        preparing for employment by participating in a job training or
        educational program, or any program that otherwise assists
        individuals in obtaining employment and attaining economic self-
        sufficiency;
          (B) reduce costs of Federal housing assistance and achieve
        greater cost-effectiveness in Federal housing assistance
        expenditures;
          (C) increase the stock of affordable housing and housing
        choices for low-income families;
          (D) increase homeownership among low-income families;
          (E) reduce geographic concentration of assisted families;
          (F) reduce homelessness through providing permanent housing
        solutions;
          (G) improve program management; and
          (H) achieve such other purposes with respect to low-income
        families, as determined by the participating local governments
        and municipalities in coordination with the public housing
        agencies; (!1)


-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 401, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2616.)


-MISC1-
                              EFFECTIVE DATE                          
      Act Sept. 1, 1937, ch. 896, title IV, Sec. 411, as added by Pub.
    L. 105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2624,
    provided that: "This title [enacting this subchapter] shall take
    effect on the date of the enactment of the Quality Housing and Work
    Responsibility Act of 1998 [Oct. 21, 1998]."

-FOOTNOTE-               

    (!1) So in original. The semicolon probably should be a period.


-End-



-CITE-
    42 USC Sec. 1437bbb-1                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-1. Flexible grant program

-STATUTE-
    (a) Authority and use
      The Secretary shall carry out a demonstration program in
    accordance with the purposes under section 1437bbb of this title
    and the provisions of this subchapter. A jurisdiction approved by
    the Secretary for participation in the program may receive and
    combine and enter into performance-based contracts for the use of
    amounts of covered housing assistance, in the manner determined
    appropriate by the participating jurisdiction, during the period of
    the jurisdiction's participation - 
        (1) to provide housing assistance and services for low-income
      families in a manner that facilitates the transition of such
      families to work;
        (2) to reduce homelessness through providing permanent housing
      solutions;
        (3) to increase homeownership among low-income families; or
        (4) for other housing purposes for low-income families
      determined by the participating jurisdiction.
    (b) Period of participation
      A jurisdiction may participate in the demonstration program under
    this subchapter for a period consisting of not less than 1 nor more
    than 5 fiscal years.
    (c) Participating jurisdictions
      (1) In general
        Subject to paragraph (2), during the 4-year period consisting
      of fiscal years 1999 through 2002, the Secretary may approve for
      participation in the program under this subchapter not more than
      an aggregate of 100 jurisdictions over the entire term of the
      demonstration program. A jurisdiction that was approved for
      participation in the demonstration program under this subchapter
      in a fiscal year and that is continuing such participation in any
      subsequent fiscal year shall count as a single jurisdiction for
      purposes of the numerical limitation under this paragraph.
      (2) Exclusion of high performing agencies
        Notwithstanding any other provision of this subchapter other
      than paragraph (4) of this subsection, the Secretary may approve
      for participation in the demonstration program under this
      subchapter only jurisdictions served by public housing agencies
      that - 
          (A) are not designated as high-performing agencies, pursuant
        to their most recent scores under the public housing management
        assessment program under section 1437d(j)(2) of this title (or
        any successor assessment program for public housing agencies),
        as of the time of approval; and
          (B) have a most recent score under the public housing
        management assessment program under section 1437d(j)(2) of this
        title (or any successor assessment program for public housing
        agencies), as of the time of approval, that is among the lowest
        40 percent of the scores of all agencies.
      (3) Limitation on troubled and non-troubled PHAs
        Of the jurisdictions approved by the Secretary for
      participation in the demonstration program under this subchapter -
       
          (A) not more than 55 may be jurisdictions served by a public
        housing agency that, at the time of approval, is designated as
        a troubled agency under the public housing management
        assessment program under section 1437d(j)(2) of this title (or
        any successor assessment program for public housing agencies);
        and
          (B) not more than 45 may be jurisdictions served by a public
        housing agency that, at the time of approval, is not designated
        as a troubled agency under the public housing management
        assessment program under section 1437d(j)(2) of this title (or
        any successor assessment program for public housing agencies).
      (4) Exception
        If the City of Indianapolis, Indiana submits an application for
      participation in the program under this subchapter and, upon
      review of the application under section 1437bbb-5(b) of this
      title, the Secretary determines that such application is
      approvable under this subchapter, the Secretary shall approve
      such application, notwithstanding the second sentence of section
      1437bbb-5(b)(2) of this title. Such City shall count for purposes
      of the numerical limitations on jurisdictions under paragraphs
      (1) and (3) of this subsection, but the provisions of paragraph
      (2) of this subsection (relating to exclusion of high-performing
      agencies) shall not apply to such City.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 402, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2617.)

-End-



-CITE-
    42 USC Sec. 1437bbb-2                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-2. Program allocation and covered housing assistance

-STATUTE-
    (a) Program allocation
      In each fiscal year, the amount made available to each
    participating jurisdiction under the demonstration program under
    this subchapter shall be equal to the sum of the amounts of covered
    housing assistance that would otherwise be made available under the
    provisions of this chapter to the public housing agency for the
    jurisdiction.
    (b) Covered housing assistance
      For purposes of this subchapter, the term "covered housing
    assistance" means - 
        (1) operating assistance under section 1437g of this title (as
      in effect before the effective date under section 503(a) of the
      Quality Housing and Work Responsibility Act of 1998);
        (2) modernization assistance under section 1437l of this title
      (as in effect before the effective date under section 503(a) of
      the Quality Housing and Work Responsibility Act of 1998);
        (3) assistance for the certificate and voucher programs under
      section 1437f of this title (as in effect before the effective
      date under section 503(a) of the Quality Housing and Work
      Responsibility Act of 1998);
        (4) assistance from the Operating Fund under section 1437g(e)
      of this title;
        (5) assistance from the Capital Fund under section 1437g(d) of
      this title; and
        (6) tenant-based assistance under section 1437f of this title
      (as amended by the Quality Housing and Work Responsibility Act of
      1998).

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 403, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2618.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Quality Housing and Work Responsibility Act of 1998, referred
    to in subsec. (b), is title V of Pub. L. 105-276, Oct. 21, 1998,
    112 Stat. 2518. Section 503(a) of the Act is set out as an
    Effective Date of 1998 Amendment note under section 1437 of this
    title. For complete classification of this Act to the Code, see
    Tables.
      Section 1437l of this title, referred to in subsec. (b)(2), was
    repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 21, 1998,
    112 Stat. 2564.

-End-



-CITE-
    42 USC Sec. 1437bbb-3                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-3. Applicability of requirements under programs for
      covered housing assistance

-STATUTE-
    (a) In general
      In each fiscal year of the demonstration program under this
    subchapter, amounts made available to a participating jurisdiction
    under the demonstration program shall be subject to the same terms
    and conditions as such amounts would be subject to if made
    available under the provisions of this chapter pursuant to which
    covered housing assistance is otherwise made available under this
    chapter to the public housing agency for the jurisdiction, except
    that - 
        (1) the Secretary may waive any such term or condition
      identified by the jurisdiction to the extent that the Secretary
      determines such action to be appropriate to carry out the
      purposes of the demonstration program under this subchapter; and
        (2) the participating jurisdiction may combine the amounts made
      available and use the amounts for any activity eligible under the
      programs under sections 1437f and 1437g of this title.
    (b) Number of families assisted
      In carrying out the demonstration program under this subchapter,
    each participating jurisdiction shall assist substantially the same
    total number of eligible low-income families as would have
    otherwise been served by the public housing agency for the
    jurisdiction had the jurisdiction not participated in the
    demonstration program under this subchapter.
    (c) Protection of recipients
      This subchapter may not be construed to authorize the termination
    of assistance to any recipient receiving assistance under this
    chapter before October 21, 1998, as a result of the implementation
    of the demonstration program under this subchapter.
    (d) Effect on ability to compete for other programs
      This subchapter may not be construed to affect the ability of any
    applying or participating jurisdiction (or a public housing agency
    for any such jurisdiction) to compete or otherwise apply for or
    receive assistance under any other housing assistance program
    administered by the Secretary.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 404, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2619.)

-End-



-CITE-
    42 USC Sec. 1437bbb-4                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-4. Program requirements

-STATUTE-
    (a) Applicability of certain provisions
      Notwithstanding section 1437bbb-3(a)(1) of this title, the
    Secretary may not waive, with respect to any participating
    jurisdiction, any of the following provisions:
        (1) The first sentence of paragraph (1) of section 1437a(a) of
      this title (relating to eligibility of low-income families).
        (2) Section 1437n of this title (relating to income eligibility
      and targeting of assistance).
        (3) Paragraph (2) of section 1437a(a) of this title (relating
      to rental payments for public housing families).
        (4) Paragraphs (2) and (3) of section 1437f(o) of this title
      (to the extent such paragraphs limit the amount of rent paid by
      families assisted with tenant-based assistance).
        (5) Section 1437p of this title (relating to demolition or
      disposition of public housing).
    (b) Compliance with assistance plan
      A participating jurisdiction shall provide assistance using
    amounts received pursuant to this subchapter in the manner set
    forth in the plan of the jurisdiction approved by the Secretary
    under section 1437bbb-5(a)(2) of this title.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 405, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2619.)

-End-



-CITE-
    42 USC Sec. 1437bbb-5                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-5. Application

-STATUTE-
    (a) In general
      The Secretary shall provide for jurisdictions to submit
    applications for approval to participate in the demonstration
    program under this subchapter. An application - 
        (1) shall be submitted only after the jurisdiction provides for
      citizen participation through a public hearing and, if
      appropriate, other means;
        (2) shall include a plan for the provision of housing
      assistance with amounts received pursuant to this subchapter that
      - 
          (A) is developed by the jurisdiction;
          (B) takes into consideration comments from the public
        hearing, any other public comments on the proposed program, and
        comments from current and prospective residents who would be
        affected; and
          (C) identifies each term or condition for which the
        jurisdiction is requesting waiver under section 1437bbb-3(a)(1)
        of this title;

        (3) shall describe how the plan for use of amounts will assist
      in meeting the purposes of, and be used in accordance with,
      sections 1437bbb and 1437bbb-1(a) of this title, respectively;
        (4) shall propose standards for measuring performance in using
      assistance provided pursuant to this subchapter based on the
      performance standards under subsection (b)(4) of this section;
        (5) shall propose the length of the period for participation of
      the jurisdiction is (!1) in the demonstration program under this
      subchapter;

        (6) shall - 
          (A) in the case of the application of any jurisdiction within
        whose boundaries are areas subject to any other unit of general
        local government, include the signed consent of the appropriate
        executive official of such unit to the application; and
          (B) in the case of the application of a consortia of units of
        general local government (as provided under section 1437bbb-
        8(1)(B) of this title), include the signed consent of the
        appropriate executive officials of each unit included in the
        consortia;

        (7) shall include information sufficient, in the determination
      of the Secretary - 
          (A) to demonstrate that the jurisdiction has or will have
        management and administrative capacity sufficient to carry out
        the plan under paragraph (2), including a demonstration that
        the applicant has a history of effectively administering
        amounts provided under other programs of the Department of
        Housing and Urban Development, such as the community
        development block grant program, the HOME investment
        partnerships program, and the programs for assistance for the
        homeless under the McKinney-Vento Homeless Assistance Act [42
        U.S.C. 11301 et seq.];
          (B) to demonstrate that carrying out the plan will not result
        in excessive duplication of administrative efforts and costs,
        particularly with respect to activities performed by public
        housing agencies operating within the boundaries of the
        jurisdiction;
          (C) to describe the function and activities to be carried out
        by such public housing agencies affected by the plan; and
          (D) to demonstrate that the amounts received by the
        jurisdiction will be maintained separate from other funds
        available to the jurisdiction and will be used only to carry
        out the plan;

        (8) shall include information describing how the jurisdiction
      will make decisions regarding asset management of housing for low-
      income families under programs for covered housing assistance or
      assisted with grant amounts under this subchapter;
        (9) shall - 
          (A) clearly identify any State or local laws that will affect
        implementation of the plan under paragraph (2) and any
        contractual rights and property interests that may be affected
        by the plan;
          (B) describe how the plan will be carried out with respect to
        such laws, rights, and interests; and
          (C) contain a legal memorandum sufficient to describe how the
        plan will comply with such laws and how the plan will be
        carried out without violating or impairing such rights and
        interests; and

        (10) shall identify procedures for how the jurisdiction shall
      return to providing covered assistance for the jurisdiction under
      the provisions of subchapter I of this chapter, in the case of
      determination under subsection (b)(4)(B) of this section.

    A plan required under paragraph (2) to be included in the
    application may be contained in a memorandum of agreement or other
    document executed by a jurisdiction and public housing agency, if
    such document is submitted together with the application.
    (b) Review, approval, and performance standards
      (1) Review
        The Secretary shall review each application for participation
      in the demonstration program under this subchapter and shall
      determine and notify the jurisdiction submitting the application,
      not later than 90 days after its submission, of whether the
      application is approvable under this subchapter. If the Secretary
      determines that the application of a jurisdiction is approvable
      under this subchapter, the Secretary shall provide affected
      public housing agencies an opportunity to review and to provide
      written comments on the application for a period of not less than
      30 days after notification under the preceding sentence. If the
      Secretary determines that an application is not approvable under
      this subchapter, the Secretary shall notify the jurisdiction
      submitting the application of the reasons for such determination.
      Upon making a determination of whether an application is
      approvable or nonapprovable under this subchapter, the Secretary
      shall make such determination publicly available in writing
      together with a written statement of the reasons for such
      determination.
      (2) Approval
        The Secretary may approve jurisdictions for participation in
      the demonstration program under this subchapter, but only from
      among applications that the Secretary has determined under
      paragraph (!2) are approvable under this subchapter and only in
      accordance with section 1437bbb-1(c) of this title. The Secretary
      shall base the selection of jurisdictions to approve on the
      potential success, as evidenced by the application, in - 

          (A) achieving the goals set forth in the performance
        standards under paragraph (4)(A); and
          (B) increasing housing choices for low-income families.
      (3) Agreement
        The Secretary shall offer to enter into an agreement with each
      jurisdiction approved for participation in the program under this
      subchapter providing for assistance pursuant to this subchapter
      for a period in accordance with section 1437bbb-1(b) of this
      title and incorporating a requirement that the jurisdiction
      achieve a particular level of performance in each of the areas
      for which performance standards are established under paragraph
      (4)(A) of this subsection. If the Secretary and the jurisdiction
      enter into an agreement, the Secretary shall provide any covered
      housing assistance for the jurisdiction in the manner authorized
      under this subchapter. The Secretary may not provide covered
      housing assistance for a jurisdiction in the manner authorized
      under this subchapter unless the Secretary and jurisdiction enter
      into an agreement under this paragraph.
      (4) Performance standards
        (A) Establishment
          The Secretary and each participating jurisdiction may
        collectively establish standards for evaluating the performance
        of the participating jurisdiction in meeting the purposes under
        section 1437bbb of this title, which may include standards for -
         
            (i) moving dependent low-income families to economic self-
          sufficiency;
            (ii) reducing the per-family cost of providing housing
          assistance;
            (iii) expanding the stock of affordable housing and housing
          choices for low-income families;
            (iv) improving program management;
            (v) increasing the number of homeownership opportunities
          for low-income families;
            (vi) reducing homelessness through providing permanent
          housing resources;
            (vii) reducing geographic concentration of assisted
          families; and
            (viii) any other performance goals that the Secretary and
          the participating jurisdiction may establish.
        (B) Failure to comply
          If, at any time during the participation of a jurisdiction in
        the program under this subchapter, the Secretary determines
        that the jurisdiction is not sufficiently meeting, or making
        progress toward meeting, the levels of performance incorporated
        into the agreement of the jurisdiction pursuant to subparagraph
        (A), the Secretary shall terminate the participation of the
        jurisdiction in the program under this subchapter and require
        the implementation of the procedures included in the
        application of the jurisdiction pursuant to subsection (a)(10)
        of this section.
      (5) Troubled agencies
        The Secretary may establish requirements for the approval of
      applications under this section submitted by public housing
      agencies designated under section 1437d(j)(2) of this title as
      troubled, which may include additional or different criteria
      determined by the Secretary to be more appropriate for such
      agencies.
    (c) Status of PHAs
      This subchapter may not be construed to require any change in the
    legal status of any public housing agency or in any legal
    relationship between a jurisdiction and a public housing agency as
    a condition of participation in the program under this subchapter.
    (d) PHA plans
      In carrying out this subchapter, the Secretary may provide for a
    streamlined public housing agency plan and planning process under
    section 1437c-1 of this title for participating jurisdictions.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 406, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2620; amended
    Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The McKinney-Vento Homeless Assistance Act, referred to in
    subsec. (a)(7)(A), is Pub. L. 100-77, July 22, 1987, 101 Stat. 482,
    as amended, which is classified principally to chapter 119 (Sec.
    11301 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 11301
    of this title and Tables.


-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (a)(7)(A). Pub. L. 106-400 substituted "McKinney-
    Vento Homeless Assistance Act" for "Stewart B. McKinney Homeless
    Assistance Act".

-FOOTNOTE-
    (!1) So in original.

    (!2) So in original. Probably should be preceded by "this".


-End-



-CITE-
    42 USC Sec. 1437bbb-6                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-6. Training

-STATUTE-
      The Secretary, in consultation with representatives of public and
    assisted housing interests, may provide training and technical
    assistance relating to providing assistance under this subchapter
    and may conduct detailed evaluations of up to 30 jurisdictions for
    the purpose of identifying replicable program models that are
    successful at carrying out the purposes of this subchapter.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 407, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2623.)

-End-



-CITE-
    42 USC Sec. 1437bbb-7                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-7. Accountability

-STATUTE-
    (a) Maintenance of records
      Each participating jurisdiction shall maintain such records as
    the Secretary may require to - 
        (1) document the amounts received by the jurisdiction under
      this chapter and the disposition of such amounts under the
      demonstration program under this subchapter;
        (2) ensure compliance by the jurisdiction with this subchapter;
      and
        (3) evaluate the performance of the jurisdiction under the
      demonstration program under this subchapter.
    (b) Reports
      Each participating jurisdiction shall annually submit to the
    Secretary a report in a form and at a time specified by the
    Secretary, which shall include - 
        (1) documentation of the use of amounts made available to the
      jurisdiction under this subchapter;
        (2) any information as the Secretary may request to assist the
      Secretary in evaluating the demonstration program under this
      subchapter; and
        (3) a description and analysis of the effect of assisted
      activities in addressing the objectives of the demonstration
      program under this subchapter.
    (c) Access to documents by Secretary and Comptroller General
      The Secretary and the Comptroller General of the United States,
    or any duly authorized representative of the Secretary or the
    Comptroller General, shall have access for the purpose of audit and
    examination to any books, documents, papers, and records maintained
    by a participating jurisdiction that relate to the demonstration
    program under this subchapter.
    (d) Performance review and evaluation
      (1) Performance review
        Based on the performance standards established under section
      1437bbb-5(b)(4) of this title, the Secretary shall monitor the
      performance of participating jurisdictions in providing
      assistance under this subchapter.
      (2) Status report
        Not later than 60 days after the conclusion of the second year
      of the demonstration program under this subchapter, the Secretary
      shall submit to Congress an interim report on the status of the
      demonstration program and the progress each participating
      jurisdiction in achieving the purposes of the demonstration
      program under section 1437bbb of this title.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 408, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2623.)

-End-



-CITE-
    42 USC Sec. 1437bbb-8                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-8. Definitions

-STATUTE-
      For purposes of this subchapter, the following definitions shall
    apply:
      (1) Jurisdiction
        The term "jurisdiction" means - 
          (A) a unit of general local government (as such term is
        defined in section 12704 of this title) that has boundaries,
        for purposes of carrying out this subchapter, that - 
            (i) wholly contain the area within which a public housing
          agency is authorized to operate; and
            (ii) do not contain any areas contained within the
          boundaries of any other participating jurisdiction; and

          (B) a consortia of such units of general local government,
        organized for purposes of this subchapter.
      (2) Participating jurisdiction
        The term "participating jurisdiction" means, with respect to a
      period for which such an agreement is made, a jurisdiction that
      has entered into an agreement under section 1437bbb-5(b)(3) of
      this title to receive assistance pursuant to this subchapter for
      such fiscal year.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 409, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2624.)

-End-



-CITE-
    42 USC Sec. 1437bbb-9                                       01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-
    Sec. 1437bbb-9. Termination and evaluation

-STATUTE-
    (a) Termination
      The demonstration program under this subchapter shall terminate
    not less than 2 and not more than 5 years after the date on which
    the demonstration program is commenced.
    (b) Evaluation
      Not later than 6 months after the termination of the
    demonstration program under this subchapter, the Secretary shall
    submit to the Congress a final report, which shall include - 
        (1) an evaluation (!1) the effectiveness of the activities
      carried out under the demonstration program; and

        (2) any findings and recommendations of the Secretary for any
      appropriate legislative action.

-SOURCE-
    (Sept. 1, 1937, ch. 896, title IV, Sec. 410, as added Pub. L. 105-
    276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2624.)

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "of".


-End-


-CITE-
    42 USC SUBCHAPTER III - MISCELLANEOUS PROVISIONS            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
                 SUBCHAPTER III - MISCELLANEOUS PROVISIONS             

-End-



-CITE-
    42 USC Sec. 1438                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1438. Repealed.

-MISC1-
    Sec. 1438. Repealed. Pub. L. 105-276, title V, Sec. 582(a)(15),
      Oct. 21, 1998, 112 Stat. 2644.
      Section, Pub. L. 93-383, title II, Sec. 209, Aug. 22, 1974, 88
    Stat. 669; Pub. L. 98-479, title II, Sec. 201(g), Oct. 17, 1984, 98
    Stat. 2228; Pub. L. 102-550, title VI, Sec. 625(b), Oct. 28, 1992,
    106 Stat. 3820, related to special low-income housing projects for
    elderly or disabled families.

                         EFFECTIVE DATE OF REPEAL                     
      Repeal effective and applicable beginning upon Oct. 1, 1999,
    except as otherwise provided, with provision that Secretary may
    implement repeal before such date, and with savings provision, see
    section 503 of Pub. L. 105-276, set out as an Effective Date of
    1998 Amendment note under section 1437 of this title.

-End-



-CITE-
    42 USC Sec. 1439                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1439. Local housing assistance plan

-STATUTE-
    (a) Applicability of approved plan to housing assistance
      application; procedure upon receipt of application by Secretary
      of Housing and Urban Development; definitions
      (1) The Secretary of Housing and Urban Development, upon
    receiving an application for housing assistance under the United
    States Housing Act of 1937 [42 U.S.C. 1437 et seq.],(!1) section
    101 of the Housing and Urban Development Act of 1965 [12 U.S.C.
    1701s], or,(!2) if the unit of general local government in which
    the proposed assistance is to be provided has an approved housing
    assistance plan, shall - 


        (A) not later than ten days after receipt of the application,
      notify the chief executive officer of such unit of general local
      government that such application is under consideration; and
        (B) afford such unit of general local government the
      opportunity, during the thirty-day period beginning on the date
      of such notification, to object to the approval of the
      application on the grounds that the application is inconsistent
      with its housing assistance plan.

    Upon receiving an application for such housing assistance, the
    Secretary shall assure that funds made available under this section
    shall be utilized to the maximum extent practicable to meet the
    needs and goals identified in the unit of local government's
    housing assistance plan.
      (2) If the unit of general local government objects to the
    application on the grounds that it is inconsistent with its housing
    assistance plan, the Secretary may not approve the application
    unless he determines that the application is consistent with such
    housing assistance plan. If the Secretary determines, that such
    application is consistent with the housing assistance plan, he
    shall notify the chief executive officer of the unit of general
    local government of his determination and the reasons therefor in
    writing. If the Secretary concurs with the objection of the unit of
    local government, he shall notify the applicant stating the reasons
    therefor in writing.
      (3) If the Secretary does not receive an objection by the close
    of the period referred to in paragraph (1)(B), he may approve the
    application unless he finds it inconsistent with the housing
    assistance plan. If the Secretary determines that an application is
    inconsistent with a housing assistance plan, he shall notify the
    applicant stating the reasons therefor in writing.
      (4) The Secretary shall make the determinations referred to in
    paragraphs (2) and (3) within thirty days after he receives an
    objection pursuant to paragraph (1)(B) or within thirty days after
    the close of the period referred to in paragraph (1)(B), whichever
    is earlier.
      (5) As used in this section, the term "housing assistance plan"
    means a housing assistance plan submitted and approved under
    section 5304 of this title or, in the case of a unit of general
    local government not participating under title I of this Act [42
    U.S.C. 5301 et seq.], a housing plan approved by the Secretary as
    meeting the requirements of this section. In developing a housing
    assistance plan under this paragraph a unit of general local
    government shall consult with local public agencies involved in
    providing for the welfare of children to determine the housing
    needs of (A) families identified by the agencies as having a lack
    of adequate housing that is a primary factor in the imminent
    placement of a child in foster care or in preventing the discharge
    of a child from foster care and reunification with his or her
    family; and (B) children who, upon discharge of the child from
    foster care, cannot return to their family or extended family and
    for which adoption is not available. The unit of general local
    government shall include in the housing assistance plan needs and
    goals with respect to such families and children.
    (b) Housing assistance applications subject to procedures
      The provisions of subsection (a) of this section shall not apply
    to - 
        (1) applications for assistance involving 12 or fewer units in
      a single project or development;
        (2) applications for assistance with respect to housing in new
      community developments approved under title IV of the Housing and
      Urban Development Act of 1968 [42 U.S.C. 3901 et seq.] or title
      VII of the Housing and Urban Development Act of 1970 [42 U.S.C.
      4501 et seq.] which the Secretary determines are necessary to
      meet the housing requirements under such title; or
        (3) applications for assistance with respect to housing
      financed by loans or loan guarantees from a State or agency
      thereof, except that the provisions of subsection (a) of this
      section shall apply where the unit of general local government in
      which the assistance is to be provided objects in its housing
      assistance plan to the exemption provided by this paragraph.
    (c) Repealed. Pub. L. 105-276, title V, Sec. 551(1), Oct. 21, 1998,
      112 Stat. 2610
    (d) Allocation and reservation of housing assistance funds;
      purposes; prohibited reallocation of unutilized funds; enumerated
      uses for retained funds; competition for reservation and
      obligation of funds
      (1)(A)(i) Except as provided by subparagraph (B), the Secretary
    shall allocate assistance referred to in subsection (a)(1) of this
    section the first time it is available for reservation on the basis
    of a formula that is contained in a regulation prescribed by the
    Secretary, and that is based on the relative needs of different
    States, areas, and communities, as reflected in data as to
    population, poverty, housing overcrowding, housing vacancies,
    amount of substandard housing, and other objectively measurable
    conditions specified in the regulation. The Secretary may allocate
    assistance under the preceding sentence in such a manner that each
    State shall receive not less than one-half of one percent of the
    amount of funds available for each program referred to in
    subsection (a)(1) of this section in each fiscal year. In
    allocating assistance under this paragraph for each program of
    housing assistance under subsection (a)(1) of this section, the
    Secretary shall apply the formula, to the extent practicable, in a
    manner so that the assistance under the program is allocated
    according to the particular relative needs under the preceding
    sentence that are characteristic of and related to the particular
    type of assistance provided under the program. Assistance under
    section 202 of the Housing Act of 1959 [12 U.S.C. 1701q] shall be
    allocated in a manner that ensures that awards of the assistance
    under such section are made for projects of sufficient size to
    accommodate facilities for supportive services appropriate to the
    needs of frail elderly residents. The preceding sentence shall not
    apply to projects acquired from the Resolution Trust Corporation
    under section 1441a(c) of title 12. Amounts for tenant-based
    assistance under section 8(o) of the United States Housing Act of
    1937 [42 U.S.C. 1437f(o)] may not be provided to any public housing
    agency that has been disqualified from providing such assistance.
      (ii) Assistance under section 8(o) of the United States Housing
    Act of 1937 [42 U.S.C. 1437f(o)] shall be allocated in a manner
    that enables participating jurisdictions to carry out, to the
    maximum extent practicable, comprehensive housing affordability
    strategies approved in accordance with section 105 of the Cranston-
    Gonzalez National Affordable Housing Act [42 U.S.C. 12705]. Such
    jurisdictions shall submit recommendations for allocating
    assistance under such section 8(o) to the Secretary in accordance
    with procedures that the Secretary determines to be appropriate to
    permit allocations of such assistance to be made on the basis of
    timely and complete information. This clause may not be construed
    to prevent, alter, or otherwise affect the application of the
    formula established pursuant to clause (i) for purposes of
    allocating such assistance. For purposes of this clause, 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 [42 U.S.C. 12721 et seq.].
      (B) The formula allocation requirements of subparagraph (A) shall
    not apply to - 
        (i) assistance that is approved in appropriation Acts for use
      under sections (!3) 9 [42 U.S.C. 1437g], or the rental
      rehabilitation grant program under section 17,(!4) of the United
      States Housing Act of 1937, except that the Secretary shall
      comply with section 102 of the Department of Housing and Urban
      Development Reform Act of 1989 [42 U.S.C. 3545] with respect to
      such assistance; or


        (ii) other assistance referred to in subsection (a) of this
      section that is approved in appropriation Acts for uses that the
      Secretary determines are incapable of geographic allocation,
      including amendments of existing contracts, renewal of assistance
      contracts, assistance to families that would otherwise lose
      assistance due to the decision of the project owner to prepay the
      project mortgage or not to renew the assistance contract,
      assistance to prevent displacement or to provide replacement
      housing in connection with the demolition or disposition of
      public housing, and assistance in support of the property
      disposition and loan management functions of the Secretary.

      (C) Any allocation of assistance under subparagraph (A) shall, as
    determined by the Secretary, be made to the smallest practicable
    area, consistent with the delivery of assistance through a
    meaningful competitive process designed to serve areas with greater
    needs.
      (D) Any amounts allocated to a State or areas or communities
    within a State that are not likely to be used within a fiscal year
    shall not be reallocated for use in another State, unless the
    Secretary determines that other areas or communities (that are
    eligible for assistance under the program) within the same State
    cannot use the amounts within that same fiscal year.
      (2) The Secretary may reserve such housing assistance funds as he
    deems appropriate for use by a State or agency thereof.
      (3)(A) Notwithstanding any other provision of law, with respect
    to fiscal years beginning after September 30, 1990, the Secretary
    may retain not more than 5 percent of the financial assistance that
    becomes available under programs described in subsection (a)(1) of
    this section during any fiscal year. Any such financial assistance
    that is retained shall be available for subsequent allocation to
    specific areas and communities, and may only be used for - 
        (i) unforeseen housing needs resulting from natural and other
      disasters;
        (ii) housing needs resulting from emergencies, as certified by
      the Secretary, other than such disasters;
        (iii) housing needs resulting from the settlement of
      litigation; and
        (iv) housing in support of desegregation efforts.

      (B) Any amounts retained in any fiscal year under subparagraph
    (A) that are unexpended at the end of such fiscal year shall remain
    available for the following fiscal year under the program under
    subsection (a)(1) of this section from which the amount was
    retained. Such amounts shall be allocated on the basis of the
    formula under subsection (d)(1) of this section.
      (4)(A) The Secretary shall not reserve or obligate assistance
    subject to allocation under paragraph (1)(A) to specific
    recipients, unless the assistance is first allocated on the basis
    of the formula contained in that paragraph and then is reserved and
    obligated pursuant to a competition.
      (B) Any competition referred to in subparagraph (A) shall be
    conducted pursuant to specific criteria for the selection of
    recipients of assistance. The criteria shall be contained in - 
        (i) a regulation promulgated by the Secretary after notice and
      public comment; or
        (ii) to the extent authorized by law, a notice published in the
      Federal Register.

      (C) Subject to the times at which appropriations for assistance
    subject to paragraph (1)(A) may become available for reservation in
    any fiscal year, the Secretary shall take such steps as the
    Secretary deems appropriate to ensure that, to the maximum extent
    practicable, the process referred to in subparagraph (A) is carried
    out with similar frequency and at similar times for each fiscal
    year.
      (D) This paragraph shall not apply to assistance referred to in
    paragraph (4).(!4)
    (e) Assistance payments for properties in Jefferson County, Texas
      From budget authority made available in appropriation Acts for
    fiscal year 1988, the Secretary shall enter into an annual
    contributions contract for a term of 180 months to obligate
    sufficient funds to provide assistance payments pursuant to section
    8(b)(1) of the United States Housing Act of 1937 [42 U.S.C.
    1437f(b)(1)] on behalf of 500 lower income families from budget
    authority made available for fiscal year 1988, so long as such
    families occupy properties in Jefferson County, Texas. If a lower
    income family receiving assistance payments pursuant to this
    subsection ceases to qualify for assistance payments pursuant to
    the provisions of section 8 of such Act [42 U.S.C. 1437f] or of
    this subsection during the 180-month term of the annual
    contributions contract, assistance payments shall be made on behalf
    of another lower income family who occupies a unit identified in
    the previous sentence.

-SOURCE-
    (Pub. L. 93-383, title II, Sec. 213, Aug. 22, 1974, 88 Stat. 674;
    Pub. L. 95-128, title II, Sec. 207, Oct. 12, 1977, 91 Stat. 1130;
    Pub. L. 96-153, title II, Sec. 204, Dec. 21, 1979, 93 Stat. 1108;
    Pub. L. 96-399, title II, Sec. 202(d), Oct. 8, 1980, 94 Stat. 1629;
    Pub. L. 97-35, title III, Sec. 321(e), Aug. 13, 1981, 95 Stat. 399;
    Pub. L. 98-181, title II, Sec. 201(a)(1), (2), Nov. 30, 1983, 97
    Stat. 1175; Pub. L. 98-479, title I, Sec. 102(e), Oct. 17, 1984, 98
    Stat. 2222; Pub. L. 100-242, title V, Sec. 522(a), Feb. 5, 1988,
    101 Stat. 1938; Pub. L. 101-235, title I, Secs. 101(a)-(c), (e),
    104(a), Dec. 15, 1989, 103 Stat. 1988-1990, 1998; Pub. L. 101-494,
    Sec. 5, Oct. 31, 1990, 104 Stat. 1186; Pub. L. 101-625, title V,
    Secs. 556, 576, title VIII, Secs. 801(b), 804(e), Nov. 28, 1990,
    104 Stat. 4233, 4238, 4303, 4323; Pub. L. 102-389, title II, Oct.
    6, 1992, 106 Stat. 1591; Pub. L. 102-550, title I, Sec. 154, Oct.
    28, 1992, 106 Stat. 3718; Pub. L. 104-330, title V, Sec. 501(d)(3),
    Oct. 26, 1996, 110 Stat. 4043; Pub. L. 105-276, title V, Secs.
    522(b)(2), 551, Oct. 21, 1998, 112 Stat. 2564, 2610.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The United States Housing Act of 1937, referred to in subsec.
    (a)(1), is act Sept. 1, 1937, ch. 896, as revised generally by Pub.
    L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and
    amended, which is classified generally to this chapter (Sec. 1437
    et seq.). Section 17 of the United States Housing Act of 1937,
    referred to in subsec. (d)(1)(B)(i), which was classified to
    section 1437o of this title, was repealed by Pub. L. 101-625, title
    II, Sec. 289(b), Nov. 28, 1990, 104 Stat. 4128. For complete
    classification of this Act to the Code, see Short Title note under
    section 1437 of this title and Tables.
      Section 101 of the Housing and Urban Development Act of 1965,
    referred to in subsec. (a)(1), is section 101 of Pub. L. 89-117,
    Aug. 10, 1965, 79 Stat. 451, as amended, which enacted section
    1701s of Title 12, Banks and Banking, and amended sections 1451 and
    1465 of this title.
      This Act, referred to in subsec. (a)(5), is Pub. L. 93-383, Aug.
    22, 1974, 88 Stat. 633, as amended, known as the Housing and
    Community Development Act of 1974. Title I of the Housing and
    Community Development Act of 1974 is classified principally to
    chapter 69 (Sec. 5301 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 5301 of this title and Tables.
      The Housing and Urban Development Act of 1968, referred to in
    subsec. (b)(2), is Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 476, as
    amended. Title IV of the Housing and Urban Development Act of 1968
    which was classified principally to chapter 48 (Sec. 3901 et seq.)
    of this title, was omitted from the Code pursuant to section 4528
    of this title, which terminated the authority to guarantee bonds,
    debentures, notes, or other obligations under such title IV, after
    Dec. 31, 1970. For complete classification of this Act to the Code,
    see Short Title note set out under section 1701 of Title 12, Banks
    and Banking, and Tables.
      The Housing and Urban Development Act of 1970, referred to in
    subsec. (b)(2), is Pub. L. 91-609, Dec. 31, 1970, 84 Stat. 1770, as
    amended. Title VII of the Housing and Urban Development Act of
    1970, known as the Urban Growth and New Community Development Act
    of 1970, is classified principally to chapter 59 (Sec. 4501 et
    seq.) of this title. For complete classification of this Act to the
    Code, see Short Title of 1970 Amendment note set out under section
    1701 of Title 12.
      The Cranston-Gonzalez National Affordable Housing Act, referred
    to in subsec. (d)(1)(A)(ii), is Pub. L. 101-625, Nov. 28, 1990, 104
    Stat. 4079. Title II of the Act, known as the "HOME Investments
    Partnership Act", is classified principally to subchapter II (Sec.
    12721 et seq.) of chapter 130 of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 12701 of this title and Tables.
      Paragraph (4), referred to in subsec. (d)(4)(D), was redesignated
    paragraph (3) of subsec. (d) by Pub. L. 105-276, title V, Sec.
    551(2)(C), Oct. 21, 1998, 112 Stat. 2610.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Housing and Community
    Development Act of 1974, and not as part of the United States
    Housing Act of 1937 which comprises this chapter.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (c). Pub. L. 105-276, Sec. 551(1), struck out
    subsec. (c) which read as follows: "For areas in which an approved
    local housing assistance plan is not applicable the Secretary shall
    not approve an application for housing assistance unless he
    determines that there is a need for such assistance, taking into
    consideration any applicable State housing plans, and that there is
    or will be available in the area public facilities and services
    adequate to serve the housing proposed to be assisted. The
    Secretary shall afford the unit of general local government in
    which the assistance is to be provided an opportunity, during a 30-
    day period following receipt of an application by him, to provide
    comments or information relevant to the determination required to
    be made by the Secretary under this subsection."
      Subsec. (d)(1)(A)(i). Pub. L. 105-276, Sec. 551(2)(A)(i),
    inserted at end "Amounts for tenant-based assistance under section
    8(o) of the United States Housing Act of 1937 may not be provided
    to any public housing agency that has been disqualified from
    providing such assistance."
      Subsec. (d)(1)(A)(ii). Pub. L. 105-276, Sec. 551(2)(A)(ii),
    substituted "8(o)" for "8(b)(1)" in two places.
      Subsec. (d)(1)(B)(i). Pub. L. 105-276, Sec. 522(b)(2), which
    directed the amendment of subsec. (d)(1)(B)(ii), by striking out
    "or 14", was executed by striking out "or 14" after "9" in subsec.
    (d)(1)(B)(i) to reflect the probable intent of Congress.
      Subsec. (d)(2) to (5). Pub. L. 105-276, Sec. 551(2)(B), (C),
    redesignated pars. (3) to (5) as (2) to (4), respectively, and
    struck out former par. (2) which read as follows: "Not later than
    sixty days after approval in an appropriation Act, the Secretary
    shall allocate from the amounts available for use in
    nonmetropolitan areas an amount of authority for assistance under
    section 8(d) of the United States Housing Act of 1937 determined in
    consultation with the Secretary of Agriculture for use in
    connection with section 1490m of this title during the fiscal year
    for which such authority is approved. The amount of assistance
    allocated to nonmetropolitan areas pursuant to this section in any
    fiscal year shall not be less than 20 nor more than 25 per centum
    of the total amount of the assistance that is subject to allocation
    under paragraph (1)(A)."
      1996 - Subsec. (d)(1)(B)(ii). Pub. L. 104-330 substituted "public
    housing" for "public and Indian housing".
      1992 - Subsec. (e). Pub. L. 102-389 and Pub. L. 102-550 amended
    subsec. (e) identically, substituting "Jefferson County, Texas" for
    "the Park Central New Community Project or in adjacent areas that
    are recognized by the unit of general local government in which
    such Project is located as being included within the Park Central
    New Town In Town Project".
      1990 - Subsec. (a)(1). Pub. L. 101-625, Sec. 801(b), struck out
    "section 202 of the Housing Act of 1959" before ", if the unit".
      Subsec. (a)(5). Pub. L. 101-625, Sec. 576, inserted at end "In
    developing a housing assistance plan under this paragraph a unit of
    general local government shall consult with local public agencies
    involved in providing for the welfare of children to determine the
    housing needs of (A) families identified by the agencies as having
    a lack of adequate housing that is a primary factor in the imminent
    placement of a child in foster care or in preventing the discharge
    of a child from foster care and reunification with his or her
    family; and (B) children who, upon discharge of the child from
    foster care, cannot return to their family or extended family and
    for which adoption is not available. The unit of general local
    government shall include in the housing assistance plan needs and
    goals with respect to such families and children."
      Subsec. (d)(1)(A). Pub. L. 101-625, Sec. 556, designated existing
    provisions as cl. (i) and added cl. (ii).
      Pub. L. 101-494 inserted after first sentence "The Secretary may
    allocate assistance under the preceding sentence in such a manner
    that each State shall receive not less than one-half of one percent
    of the amount of funds available for each program referred to in
    subsection (a)(1) of this section in each fiscal year."
      Subsec. (d)(1)(A)(i). Pub. L. 101-625, Sec. 804(e), which
    directed amendment of subpar. (A) by inserting after the period at
    end "The preceding sentence shall not apply to projects acquired
    from the Resolution Trust Corporation under section 1441a(c) of
    title 12.", was executed by making the insertion after the period
    at end of cl. (i), to reflect the probable intent of Congress and
    the intervening amendment by Pub. L. 101-625, Sec. 556. See above.
      1989 - Subsec. (a)(1). Pub. L. 101-235, Sec. 101(e), struck out
    "section 235 or 236 of the National Housing Act," before "section
    101 of the Housing and Urban Development Act of 1965".
      Subsec. (d)(1). Pub. L. 101-235, Sec. 101(a), amended par. (1)
    generally. Prior to amendment, par. (1) read as follows: "The
    Secretary shall allocate assistance referred to in subsection (a)
    of this section (other than assistance approved in appropriation
    Acts for use under sections 9, 14, and 17 of the United States
    Housing Act of 1937) the first time it is available for reservation
    on the basis of a formula which is contained in a regulation
    prescribed by the Secretary, and which is based on the relative
    needs of different States, areas, and communities as reflected in
    data as to population, poverty, housing overcrowding, housing
    vacancies, amount of substandard housing, and other objectively
    measurable conditions specified in such regulation. Any amounts
    allocated to a State or areas or communities within a State which
    are not likely to be utilized within a fiscal year shall not be
    reallocated for use in another State unless the Secretary
    determines that other areas or communities within the same State
    cannot utilize the amounts within that same fiscal year."
      Subsec. (d)(2). Pub. L. 101-235, Sec. 101(b), substituted "of the
    assistance that is subject to allocation under paragraph (1)(A)"
    for "of such assistance".
      Subsec. (d)(4). Pub. L. 101-235, Sec. 104(a), amended par. (4)
    generally. Prior to amendment, par. (4) read as follows:
    "Notwithstanding any other provision of law, with respect to fiscal
    years beginning after September 30, 1981, the Secretary of Housing
    and Urban Development may not retain more than 15 per centum of the
    financial assistance which becomes available under programs
    described in subsection (a)(1) of this section during any fiscal
    year. Any such financial assistance which is retained shall be
    available for subsequent allocation to specific areas and
    communities, and may only be used for - 
        "(A) unforeseeable housing needs, especially those brought on
      by natural disasters or special relocation requirements;
        "(B) support for the needs of the handicapped or for minority
      enterprise;
        "(C) providing for assisted housing as a result of the
      settlement of litigation;
        "(D) small research and demonstration projects;
        "(E) lower-income housing needs described in housing assistance
      plans, including activities carried out under areawide housing
      opportunity plans; and
        "(F) innovative housing programs or alternative methods for
      meeting lower-income housing needs approved by the Secretary,
      including assistance for infrastructure in connection with the
      Indian Housing Program."
      Subsec. (d)(5). Pub. L. 101-235, Sec. 101(c), added par. (5).
      1988 - Subsec. (e). Pub. L. 100-242 added subsec. (e).
      1984 - Subsec. (d)(2). Pub. L. 98-479 substituted "section 1490m
    of this title" for "section 1490l of this title".
      1983 - Subsec. (a)(1). Pub. L. 98-181, Sec. 201(a)(1), inserted
    provision following subpar. (B) requiring that funds be utilized to
    meet the needs and goals identified in the unit of local
    government's housing assistance plan.
      Subsec. (d)(1). Pub. L. 98-181, Sec. 201(a)(2), amended par. (1)
    generally, inserting provision respecting assistance approved in
    appropriation Acts for sections 9 and 17 of the United States
    Housing Act of 1937 uses, requiring allocation of assistance to be
    based on a formula contained in a regulation, making the relative
    needs provision applicable to different States, striking out
    requirement that Secretary assure, in carrying out national housing
    and community development objectives, that funds available for
    housing assistance programs be allocated or reserved in accordance
    with goals described in approved housing assistance plans, and
    striking out provision respecting allocation of funds for
    nonmetropolitan areas, which was reenacted as last sentence of par.
    (2).
      Subsec. (d)(2). Pub. L. 98-181, Sec. 201(a)(2), amended par. (2)
    generally, inserting provision respecting allocation of
    nonmetropolitan area funds for use in connection with section 1490l
    of this title; reenacting as second sentence provision respecting
    amount of funds allocated for nonmetropolitan areas, which formerly
    constituted last sentence of par. (1); and striking out former
    provision respecting reservation of housing assistance funds for
    new community developments approved under title IV of the Housing
    and Urban Development Act of 1968 and title VII of the Housing and
    Urban Development Act of 1970 for persons of low- and moderate-
    income.
      1981 - Subsec. (d)(4). Pub. L. 97-35 added par. (4).
      1980 - Subsec. (d)(1). Pub. L. 96-399 substituted "carrying out
    section 14 of such Act" for "modernization of low-income housing
    projects".
      1979 - Subsec. (d)(1). Pub. L. 96-153 inserted provisions
    limiting allocation of assistance other than that approved in
    appropriation acts for use on and after Oct. 1, 1979 for
    modernization of low-income housing projects and inserted provision
    that any amounts allocated to a State or to areas or communities
    within a State which are not likely to be utilized within a fiscal
    year shall not be reallocated for use in another State unless the
    Secretary determines that other areas or communities within the
    same State cannot utilize the amounts in accordance with the
    appropriate housing assistance plans within that fiscal year.
      1977 - Subsec. (d)(1). Pub. L. 95-128 inserted provision
    requiring the Secretary to assure that funds available for subsec.
    (a) housing assistance programs shall be allocated or reserved in
    accordance with goals described in local, State, or other housing
    assistance plans approved by the Secretary pursuant to section 5304
    of this title and shall be utilized to meet needs reflected in data
    referred to in the preceding sentence.

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.

                     EFFECTIVE DATE OF 1990 AMENDMENT                 
      Amendment by section 801(b) of Pub. L. 101-625 effective Oct. 1,
    1991, with respect to projects approved on or after such date, and
    subject to issuance of regulations, see section 801(c) of Pub. L.
    101-625, set out as a note under section 1701q of Title 12, Banks
    and Banking.
      Amendment by section 801(b) of Pub. L. 101-625 deemed enacted
    Nov. 5, 1990, see title II of Pub. L. 101-507, set out as a note
    under section 1701q of Title 12.

                     EFFECTIVE DATE OF 1989 AMENDMENT                 
      Section 104(b) of Pub. L. 101-235 provided that: "Any assistance
    made available under section 213(d)(4) of the Housing and Community
    Development Act of 1974 [42 U.S.C. 1439(d)(4)] before October 1,
    1990, or pursuant to a commitment for such assistance entered into
    before such date, shall be governed by the provisions of section
    213(d)(4) as such section existed before the date of the enactment
    of this Act [Dec. 15, 1989]."

                     EFFECTIVE DATE OF 1981 AMENDMENT                 
      Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
    371 of Pub. L. 97-35, set out as an Effective Date note under
    section 3701 of Title 12, Banks and Banking.

-FOOTNOTE-
    (!1) So in original. The comma probably should be "or".

    (!2) So in original. The word "or" and the comma probably should
         not appear.

    (!3) So in original. Probably should be "section".

    (!4) See References in Text note below.


-End-



-CITE-
    42 USC Sec. 1440                                            01/03/2007

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 8 - LOW-INCOME HOUSING
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1440. State housing finance and development agencies

-STATUTE-
    (a) Statement of purpose; participation by private and nonprofit
      developers in activities assisted
      It is the purpose of this section to encourage the formation and
    effective operation of State housing finance agencies and State
    development agencies which have authority to finance, to assist in
    carrying out, or to carry out activities designed to (1) provide
    housing and related facilities through land acquisition,
    construction, or rehabilitation, for persons and families of low,
    moderate, and middle income, (2) promote the sound growth and
    development of neighborhoods through the revitalization of slum and
    blighted areas, (3) increase and improve employment opportunities
    for the unemployed and underemployed through the development and
    redevelopment of industrial, manufacturing, and commercial
    facilities, or (4) implement the development aspects of State land
    use and preservation policies, including the advance acquisition of
    land where it is consistent with such policies. The Secretary of
    Housing and Urban Development shall encourage maximum participation
    by private and nonprofit developers in activities assisted under
    this section.
    (b) Determination of eligibility for assistance; definitions
      (1) A State housing finance or State development agency is
    eligible for assistance under this section only if the Secretary
    determines that it is fully empowered and has adequate authority to
    at least carry out or assist in carrying out the purposes specified
    in clause (1) of subsection (a) of this section.
      (2) For the purpose of this section - 
        (A) the term "State housing finance or State development
      agency" means any public body or agency, publicly sponsored
      corporation, or instrumentality of one or more States which is
      designated by the Governor (or Governors in the case of an
      interstate development agency) for purposes of this section;
        (B) the term "State" means any State of the United States, the
      District of Columbia, the Commonwealth of Puerto Rico, or any
      territory or possession of the United States; and
        (C) the term "Secretary" means the Secretary of Housing and
      Urban Development.
    (c) Guarantee of obligations issued by agencies; grants to agencies
      for interest payments on obligations; maximum amount of grants;
      prerequisites for guarantee; full faith and credit pledged for
      payment of guarantee; effect and validity of guarantee; fees and
      charges for guarantee; authorization of appropriations for
      grants; maximum amount of obligations guaranteed
      (1) The Secretary is authorized to guarantee, and enter into
    commitments to guarantee, the bonds, debentures, notes, and other
    obligations issued by State housing finance or State development
    agencies to finance development activities as determined by him to
    be in furtherance of the purpose of clause (1) or (2) of subsection
    (a) of this section, except that obligations issued to finance
    activities solely in furtherance of the purpose of clause (1) of
    subsection (a) of this section may be guaranteed only if the
    activities are in connection with the revitalization of slum or
    blighted areas under title I of this Act [42 U.S.C. 5301 et seq.]
    or under any other program determined to be acceptable by the
    Secretary for this purpose.
      (2) The Secretary is authorized to make, and to contract to make,
    grants to or on behalf of a State housing finance or State
    development agency to cover not to exceed 33 1/3  per centum of the
    interest payable on bonds, debentures, notes, and other obligations
    issued by such agency to finance development activities in
    furtherance of the purposes of this section.
      (3) No obligation shall be guaranteed or otherwise assisted under
    this section unless the interest income thereon is subject to
    Federal taxation as provided in subsection (h)(2) of this section,
    except that use of guarantees provided for in this subsection shall
    not be made a condition to nor preclude receipt of any other
    Federal assistance.
      (4) The full faith and credit of the United States is pledged to
    the payment of all guarantees made under this section with respect
    to principal, interest, and any redemption premiums. Any such
    guarantee made by the Secretary shall be conclusive evidence of the
    eligibility of the obligation involved for such guarantee, and the
    validity of any guarantee so made shall be incontestable in the
    hands of a holder of the guaranteed obligation.
      (5) The Secretary is authorized to establish and collect such
    fees and charges for and in connection with guarantees made under
    this section as he considers reasonable.
      (6) There are authorized to be appropriated such sums as may be
    necessary to make payments as provided for in contracts entered
    into by the Secretary under paragraph (2) of this subsection, and
    payments pursuant to such contracts shall not exceed $50,000,000
    per annum prior to July 1, 1975, which maximum dollar amount shall
    be increased by $60,000,000 on July 1, 1975. The aggregate
    principal amount of the obligations which may be guaranteed under
    this section and outstanding at any one time shall not exceed
    $500,000,000.
    (d) Requirements for guaranteed obligations
      The Secretary shall take such steps as he considers reasonable to
    assure that bonds, debentures, notes, and other obligations which
    are guaranteed under subsection (c) of this section will - 
        (1) be issued only to investors approved by, or meeting
      requirements prescribed by, the Secretary, or, if an offering to
      the public is contemplated, be underwritten upon terms and
      conditions approved by the Secretary;
        (2) bear interest at a rate satisfactory to the Secretary;
        (3) contain or be subject to repayment, maturity, and other
      provisions satisfactory to the Secretary; and
        (4) contain or be subject to provisions with respect to the
      protection of the security interests of the United States,
      including any provisions deemed appropriate by the Secretary
      relating to subrogation, liens, and releases of liens, payment of
      taxes, cost certification procedures, escrow or trusteeship
      requirements, or other matters.
    (e) Revolving fund for payment of liabilities incurred pursuant to
      guarantees and payment of obligations issued to Secretary of the
      Treasury; composition; availability, issuance of obligations to
      Secretary of the Treasury for implementation of guarantees;
      amount, maturity, rate of interest, and purchase by Secretary of
      the Treasury of obligations; payment of expenses and charges
      (1) The Secretary is authorized to establish a revolving fund to
    provide for the timely payment of any liabilities incurred as a
    result of guarantees under subsection (c) of this section and for
    the payment of obligations issued to the Secretary of the Treasury
    under paragraph (2) of this subsection. Such revolving fund shall
    be comprised of (A) receipts from fees and charges; (B) recoveries
    under security, subrogation, and other rights; (C) repayments,
    interest income, and any other receipts obtained in connection with
    guarantees made under subsection (c) of this section; (D) proceeds
    of the obligations issued to the Secretary of the Treasury pursuant
    to paragraph (2) of this subsection; and (E) such sums, which are
    hereby authorized to be appropriated, as may be required for such
    purposes. Money in the revolving fund not currently needed for the
    purpose of this section shall be kept on hand or on deposit, or
    invested in obligations of the United States or guaranteed thereby,
    or in obligations, participations, or other instruments which are
    lawful investments for fiduciary, trust, or public funds.
      (2) The Secretary may issue obligations to the Secretary of the
    Treasury in an amount sufficient to enable the Secretary to carry
    out his functions with respect to the guarantees authorized by
    subsection (c) of this section. The obligations issued under this
    paragraph shall have such maturities and bear such rate or rates of
    interest as shall be determined by the Secretary of the Treasury.
    The Secretary of the Treasury is authorized and directed to
    purchase any obligations so issued, and for that purpose he is
    authorized to use a public debt transaction the proceeds from the
    sale of any securities issued under chapter 31 of title 31, and the
    purposes for which securities may be issued under such chapter are
    extended to include purchases of the obligations hereunder.
      (3) Notwithstanding any other provision of law relating to the
    acquisition, handling, improvement, or disposal of real and other
    property by the United States, the Secretary shall have power, for
    the protection of the interests of the fund authorized under this
    subsection, to pay out of such fund all expenses or charges in
    connection with the acquisition, handling, improvement, or disposal
    of any property, real or personal, acquired by him as a result of
    recoveries under security, subrogation, or other rights.
    (f) Technical assistance to agencies for planning and execution of
      development activities
      The Secretary is authorized to provide, either directly or by
    contract or other arrangements, technical assistance to State
    housing finance or State development agencies to assist them in
    connection with planning and carrying out development activities in
    furtherance of the purpose of this section.
    (g) Labor standards
      All laborers and mechanics employed by contractors or
    subcontractors in housing or development activities assisted under
    this section shall be paid wages at rates not less than those
    prevailing on similar work in the locality as determined by the
    Secretary of Labor in accordance with sections 3141-3144, 3146, and
    3147 of title 40: Provided, That this section shall apply to the
    construction of residential property only if such property is
    designed for residential use for eight or more families. No
    assistance shall be extended under this section with respect to any
    development activities without first obtaining adequate assurance
    that these labor standards will be maintained upon the work
    involved in such activities. The Secretary of Labor shall have,
    with respect to the labor standards specified in this subsection,
    the authority and functions set forth in Reorganization Plan
    Numbered 14 of 1950 (64 Stat. 1267), and section 3145 of title 40.
    (h) Protection of guarantees issued by United States; inclusion by
      purchaser in gross income of interest paid on obligations issued
      by agencies
      (1) In the performance of, and with respect to, the functions,
    powers, and duties vested in him by this section, the Secretary, in
    addition to any authority otherwise vested to him, shall - 
        (A) have the power, notwithstanding any other provision of law,
      in connection with any guarantee under this section, whether
      before or after default, to provide by contract for the
      extinguishment upon default of any redemption, equitable, legal,
      or other right, title, or interest of a State housing finance or
      State development agency in any mortgage, deed, trust, or other
      instrument held by or on behalf of the Secretary for the
      protection of the security interests of the United States; and
        (B) have the power to foreclose on any property or commence any
      action to protect or enforce any right conferred upon him by law,
      contract, or other agreement, and bid for and purchase at any
      foreclosure or other sale any property in connection with which
      he has provided a guarantee pursuant to this section. In the
      event of any such acquisition, the Secretary may, notwithstanding
      any other provision of law relating to the acquisition, handling,
      or disposal of real property by the United States, complete,
      administer, remodel and convert, dispose of, lease, and otherwise
      deal with, such property. Notwithstanding any other provision of
      law, the Secretary shall also have power to pursue to final
      collection by way of compromise or otherwise all claims acquired
      by him in connection with any security, subrogation, or other
      rights obtained by him in administering this section.

      (2) With respect to any obligation issued by a State housing
    finance or State development agency for which the issuer has
    elected to receive the benefits of the assistance provided under
    this section, the interest paid on such obligation and received by
    the purchaser thereof (or his successor in interest) shall be
    included in gross income for the purposes of chapter 1 of title 26.

-SOURCE-
    (Pub. L. 93-383, title VIII, Sec. 802(a)-(h), Aug. 22, 1974, 88
    Stat. 722-724; Pub. L. 98-479, title II, Sec. 203(l)(4), Oct. 17,
    1984, 98 Stat. 2231.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (c)(1), is Pub. L. 93-383, Aug.
    22, 1974, 88 Stat. 633, as amended, known as the Housing and
    Community Development Act of 1974. Title I of the Housing and
    Community Development Act of 1974 is classified principally to
    chapter 69 (Sec. 5301 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 5301 of this title and Tables.
      Reorganization Plan Numbered 14 of 1950, referred to in subsec.
    (g), is Reorg. Plan No. 14 of 1950, eff. May 24, 1950, 15 F.R.
    3176, 64 Stat. 1267, which is set out in the Appendix to Title 5,
    Government Organization and Employees.

-COD-
                               CODIFICATION                           
      In subsec. (g), "sections 3141-3144, 3146, and 3147 of title 40"
    substituted for "the Davis-Bacon Act, as amended (40 U.S.C. 276a -
    276a-5)" and "section 3145 of title 40" substituted for "section 2
    of the Act of June 13, 1934 (40 U.S.C. 276c)" on authority of Pub.
    L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 Stat. 1303, the first
    section of which enacted Title 40, Public Buildings, Property, and
    Works.
      Section was enacted as part of the Housing and Community
    Development Act of 1974, and not as part of the United States
    Housing Act of 1937 which comprises this chapter.


-MISC1-
                                AMENDMENTS                            
      1984 - Subsec. (e)(2). Pub. L. 98-479 substituted "chapter 31 of
    title 31" for "the Second Liberty Bond Act" and "such chapter" for
    "that Act".

-End-