End Housing Subsidies for the Rich Act of 2016

Summary: End Housing Subsidies for the Rich Act of 2016 This bill amends the United States Housing Act of 1937 to revise eligibility requirements for assisted housing. If a public housing agency (PHA) determines that a tenant's income is greater than 120% of the area median income for two consecutive years, the PHA must terminate the family's tenancy within six months. Such a family may, however, continue to occupy the dwelling unit month-to-month if:  the PHA charges the family the fair market rent, and   there are no eligible families applying for housing assistance from the PHA for that month and the agency provides at least a 30-day public notice of the availability of such assistance.  A PHA may not rent a dwelling unit to or assist families with net family assets exceeding $100,000 annually (adjusted for inflation) or an ownership interest in property that is suitable for occupancy. This restriction does not apply to victims of domestic violence, individuals using housing assistance for homeownership opportunities, or a family that is offering a property for sale. PHAs must require applicants to authorize financial institutions to disclose records necessary to determine eligibility for benefits. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Housing Subsidies for the Rich 
Act of 2016''.

SEC. 2. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER-INCOME FAMILIES.

    Section 16(a) of the United States Housing Act of 1937 (42 U.S.C. 
1437n(a)) is amended by adding at the end the following:
            ``(5) Limitations on tenancy for over-income families.--
                    ``(A) Limitations.--Except as provided in 
                subparagraph (B), in the case of any family residing in 
                a dwelling unit of public housing whose income for the 
                most recent 2 consecutive years, as determined pursuant 
                to income reviews conducted under section 3(a)(1), has 
                exceeded the applicable income limitation under 
                subparagraph (D), the public housing agency shall 
                terminate the tenancy of the family in public housing 
                not later than 6 months after the income determination.
                    ``(B) Exception.--A family described in 
                subparagraph (A) may continue to occupy the dwelling 
                unit of public housing on a month-to-month basis if--
                            ``(i) the public housing agency charges the 
                        family as monthly rent for the dwelling unit an 
                        amount equal the applicable fair market rental 
                        established under section 8(c) for a dwelling 
                        unit in the same market area of the same size; 
                        and
                            ``(ii) 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.
                    ``(C) Notice.--In the case of any family residing 
                in a dwelling unit of public housing whose income for a 
                year has exceeded the applicable income limitation 
                under subparagraph (D), upon the conclusion of that 
                year the public housing agency shall provide written 
                notice to the family of the requirements under 
                subparagraph (A).
                    ``(D) Income limitation.--The income limitation 
                under this subparagraph shall be 120 percent of the 
                median income for the area, as determined by the 
                Secretary with adjustments for smaller and larger 
                families.
                    ``(E) Reports on over-income families and waiting 
                lists.--The Secretary shall require that each public 
                housing agency shall--
                            ``(i) submit a report annually, in a format 
                        required by the Secretary, that specifies--
                                    ``(I) the number of families 
                                residing, as of the end of the year for 
                                which the report is submitted, in 
                                public housing administered by the 
                                agency who had incomes exceeding the 
                                applicable income limitation under 
                                subparagraph (D); and
                                    ``(II) the number of families, as 
                                of the end of the year for which the 
                                report is submitted year, on the 
                                waiting lists for admission to public 
                                housing dwelling units of the agency; 
                                and
                            ``(ii) make the information reported 
                        pursuant to clause (i) publicly available.''.

SEC. 3. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.

    Section 16 of the United States Housing Act of 1937 (42 U.S.C. 
1437n) is amended by inserting after subsection (d) the following:
    ``(e) Eligibility for Assistance Based on Assets.--
            ``(1) Limitation on assets.--Subject to paragraph (3) and 
        notwithstanding any other provision of this Act, a dwelling 
        unit assisted under this Act may not be rented and assistance 
        under this Act may not be provided, either initially or at each 
        recertification of family income, to any family--
                    ``(A) whose net family assets exceed $100,000, as 
                such amount is adjusted annually by applying an 
                inflationary factor as the Secretary considers 
                appropriate; or
                    ``(B) who has a present ownership interest in, a 
                legal right to reside in, and the effective legal 
                authority to sell, real property that is suitable for 
                occupancy by the family as a residence, except that the 
                prohibition under this subparagraph shall not apply 
                to--
                            ``(i) any property for which the family is 
                        receiving assistance under subsection (y) or 
                        (o)(12) of section 8;
                            ``(ii) any person that is a victim of 
                        domestic violence; or
                            ``(iii) any family that is offering such 
                        property for sale.
            ``(2) Net family assets.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `net family assets'--
                            ``(i) means, for all members of the 
                        household, the net cash value of all assets 
                        after deducting reasonable costs that would be 
                        incurred in disposing of real property, 
                        savings, stocks, bonds, and other forms of 
                        capital investment; and
                            ``(ii) does not include interests in Indian 
                        trust land, equity in property for which the 
                        family is receiving assistance under subsection 
                        (y) or (o)(12) of section 8, equity accounts in 
                        homeownership programs of the Department of 
                        Housing and Urban Development, or Family Self 
                        Sufficiency accounts.
                    ``(B) Exclusions.--Such term does not include--
                            ``(i) the value of personal property, 
                        except for items of personal property of 
                        significant value, as the Secretary may 
                        establish or the public housing agency may 
                        determine;
                            ``(ii) the value of any retirement account;
                            ``(iii) real property for which the family 
                        does not have the effective legal authority 
                        necessary to sell such property;
                            ``(iv) any amounts recovered in any civil 
                        action or settlement based on a claim of 
                        malpractice, negligence, or other breach of 
                        duty owed to a member of the family and arising 
                        out of law, that resulted in a member of the 
                        family being disabled;
                            ``(v) the value of any Coverdell education 
                        savings account under section 530 of the 
                        Internal Revenue Code of 1986 or any qualified 
                        tuition program under section 529 of such Code; 
                        and
                            ``(vi) such other exclusions as the 
                        Secretary may establish.
                    ``(C) Trust funds.--In cases in which a trust fund 
                has been established and the trust is not revocable by, 
                or under the control of, any member of the family or 
                household, the value of the trust fund shall not be 
                considered an asset of a family if the fund continues 
                to be held in trust. Any income distributed from the 
                trust fund shall be considered income for purposes of 
                section 3(b) and any calculations of annual family 
                income, except in the case of medical expenses for a 
                minor.
            ``(3) Self-certification.--
                    ``(A) Net family assets.--A public housing agency 
                or owner may determine the net assets of a family, for 
                purposes of this section, based on a certification by 
                the family that the net assets of such family do not 
                exceed $50,000, as such amount is adjusted annually by 
                applying an inflationary factor as the Secretary 
                considers appropriate.
                    ``(B) No current real property ownership.--A public 
                housing agency or owner may determine compliance with 
                paragraph (1)(B) based on a certification by the family 
                that such family does not have any current ownership 
                interest in any real property at the time the agency or 
                owner reviews the family's income.
                    ``(C) Standardized forms.--The Secretary may 
                develop standardized forms for the certifications 
                referred to in subparagraphs (A) and (B).
            ``(4) Compliance for public housing dwelling units.--When 
        recertifying family income with respect to families residing in 
        public housing dwelling units, a public housing agency may, in 
        the discretion of the agency and only pursuant to a policy that 
        is set forth in the public housing agency plan under section 5A 
        for the agency, choose not to enforce the limitation under 
        paragraph (1).
            ``(5) Enforcement.--When recertifying the income of a 
        family residing in a dwelling unit assisted under this Act, a 
        public housing agency or owner may choose not to enforce the 
        limitation under paragraph (1) or may establish exceptions to 
        such limitation based on eligibility criteria, but only 
        pursuant to a policy that is set forth in the public housing 
        agency plan under section 5A for the agency or under a policy 
        adopted by the owner. Eligibility criteria for establishing 
        exceptions may provide for separate treatment based on family 
        type and may be based on different factors, such as age, 
        disability, income, the ability of the family to find suitable 
        alternative housing, and whether supportive services are being 
        provided.
            ``(6) Authority to delay evictions.--In the case of a 
        family residing in a dwelling unit assisted under this Act who 
        does not comply with the limitation under paragraph (1), the 
        public housing agency or project owner may delay eviction or 
        termination of the family based on such noncompliance for a 
        period of not more than 6 months.
            ``(7) Verifying income.--
                    ``(A) Beginning in fiscal year 2018, the Secretary 
                shall require public housing agencies to require each 
                applicant for, or recipient of, benefits under this Act 
                to provide authorization by the applicant or recipient 
                (or by any other person whose income or resources are 
                material to the determination of the eligibility of the 
                applicant or recipient for such benefits) for the 
                public housing agency to obtain (subject to the cost 
                reimbursement requirements of section 1115(a) of the 
                Right to Financial Privacy Act (12 U.S.C. 3415(a))) 
                from any financial institution (within the meaning of 
                section 1101(1) of such Act (12 U.S.C. 3401(1))) any 
                financial record (within the meaning of section 1101(2) 
                of such Act (12 U.S.C. 3401(2))) held by the 
                institution with respect to the applicant or recipient 
                (or any such other person) whenever the public housing 
                agency determines the record is needed in connection 
                with a determination with respect to such eligibility 
                or the amount of such benefits.
                    ``(B) Notwithstanding section 1104(a)(1) of the 
                Right to Financial Privacy Act (12 U.S.C. 3404(a)(1)), 
                an authorization provided by an applicant or recipient 
                (or any other person whose income or resources are 
                material to the determination of the eligibility of the 
                applicant or recipient) pursuant to subparagraph (A) of 
                this paragraph shall remain effective until the 
                earliest of--
                            ``(i) the rendering of a final adverse 
                        decision on the applicant's application for 
                        eligibility for benefits under this Act;
                            ``(ii) the cessation of the recipient's 
                        eligibility for benefits under this Act; or
                            ``(iii) the express revocation by the 
                        applicant or recipient (or such other person 
                        referred to in subparagraph (A)) of the 
                        authorization, in a written notification to the 
                        Secretary.
                    ``(C)(i) An authorization obtained by the public 
                housing agency pursuant to this paragraph shall be 
                considered to meet the requirements of the Right to 
                Financial Privacy Act for purposes of section 1103(a) 
                of such Act (12 U.S.C. 3403(a)), and need not be 
                furnished to the financial institution, notwithstanding 
                section 1104(a) of such Act (12 U.S.C. 3404(a)).
                    ``(ii) The certification requirements of section 
                1103(b) of the Right to Financial Privacy Act (12 
                U.S.C. 3404(b)) shall not apply to requests by the 
                public housing agency pursuant to an authorization 
                provided under this clause.
                    ``(iii) A request by the public housing agency 
                pursuant to an authorization provided under this clause 
                is deemed to meet the requirements of section 
                1104(a)(3) of the Right to Financial Privacy Act (12 
                U.S.C. 3404(a)(3)) and the flush language of section 
                1102 of such Act (12 U.S.C. 3402).
                    ``(iv) The public housing agency shall inform any 
                person who provides authorization pursuant to this 
                paragraph of the duration and scope of the 
                authorization.
                    ``(D) If an applicant for, or recipient of, 
                benefits under this Act (or any such other person 
                referred to in subparagraph (A)) refuses to provide, or 
                revokes, any authorization made by the applicant or 
                recipient for the public housing agency to obtain from 
                any financial institution any financial record, the 
                public housing agency may, on that basis, determine 
                that the applicant or recipient is ineligible for 
                benefits under this title.''.