Project-Based Voucher Improvement Act of 2015

Summary: Project-Based Voucher Improvement Act of 2015 This bill amends the United States Housing Act of 1937 with respect to the requirement that the Department of Housing and Urban Development (HUD) require local governments or other HUD-approved entities to make inspections and rent determinations for leased dwelling units (other than public housing dwelling units) that are owned by a public housing agency (PHA) administering section 8 low-income (voucher) rental assistance. &quot;Owned by a PHA,&quot; for these purposes, means the dwelling unit is in a project owned by:  the PHA,  an entity wholly controlled by the PHA, or  a limited liability company or limited partnership in which the PHA (or an entity wholly controlled by it) holds a controlling interest in the managing member or general partner.  A dwelling unit shall not be deemed to be owned by a PHA for these purposes, however, merely because the PHA holds:  a fee interest as ground lessor in the property on which the unit is situated, a security interest under a mortgage or deed of trust on the unit, or a non-controlling interest in an entity which owns the unit or in the managing member or general partner of an entity which owns the unit.  In an exception to the prohibition against attaching to a PHA project more than 20% of funding available for tenant-based assistance, a PHA may use up to an additional 10% to provide units that:  house homeless individuals and families, house families with veterans, provide supportive housing to persons with disabilities or elderly persons, or are located in areas where vouchers are difficult to use.  The bill revises the income-mixing requirement for such projects to add to the current assistance limitation of a maximum 25 dwelling units per project an alternative limitation of 25% of such dwelling units. Neither limitation shall apply to dwelling units exclusively made available to elderly families or to households eligible for certain supportive services. The term of a housing assistance payment contract may increase from 15 to 20 years. The bill also revises requirements for rent adjustments.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Project-Based Voucher Improvement 
Act of 2015''.

SEC. 2. UNITS OWNED BY PUBLIC HOUSING AGENCIES.

    Paragraph (11) of section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(11)) is amended--
            (1) by striking ``(11) Leasing of units owned by pha.--If'' 
        and inserting the following:
            ``(11) Leasing of units owned by pha.--
                    ``(A) Inspections and rent determinations.--If''; 
                and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Units owned by pha.--For purposes of this 
                subsection, the term `owned by a public housing agency' 
                means, with respect to a dwelling unit, that the 
                dwelling unit is in a project that is owned by such 
                agency, by an entity wholly controlled by such agency, 
                or by a limited liability company or limited 
                partnership in which such agency (or an entity wholly 
                controlled by such agency) holds a controlling interest 
                in the managing member or general partner. A dwelling 
                unit shall not be deemed to be owned by a public 
                housing agency for purposes of this subsection because 
                the agency holds a fee interest as ground lessor in the 
                property on which the unit is situated, holds a 
                security interest under a mortgage or deed of trust on 
                the unit, or holds a non-controlling interest in an 
                entity which owns the unit or in the managing member or 
                general partner of an entity which owns the unit.''.

SEC. 3. PHA PROJECT-BASED ASSISTANCE.

    (a) In General.--Paragraph (13) of section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended--
            (1) by striking ``structure'' each place such term appears 
        and inserting ``project'';
            (2) by striking ``structures'' each place such term appears 
        and inserting ``projects'';
            (3) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) Percentage limitation.--
                            ``(i) In general.--Subject to clause (ii), 
                        a public housing agency may use for project-
                        based assistance under this paragraph not more 
                        than 20 percent of the authorized units for the 
                        agency.
                            ``(ii) Exception.--A public housing agency 
                        may use up to an additional 10 percent of the 
                        authorized units for the agency for project-
                        based assistance under this paragraph, to 
                        provide units that house individuals and 
                        families that meet the definition of homeless 
                        under section 103 of the McKinney-Vento 
                        Homeless Assistance Act (42 U.S.C. 11302), that 
                        house families with veterans, that provide 
                        supportive housing to persons with disabilities 
                        or elderly persons, or that are located in 
                        areas where vouchers under this subsection are 
                        difficult to use, as specified in subparagraph 
                        (D)(ii)(II). Any units of project-based 
                        assistance that are attached to units 
                        previously subject to federally required rent 
                        restrictions or receiving another type of long-
                        term housing subsidy provided by the Secretary 
                        shall not count toward the percentage 
                        limitation under clause (i) of this 
                        subparagraph. The Secretary may, by regulation, 
                        establish additional categories for the 
                        exception under this clause.'';
            (4) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) Income-mixing requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), not more than the greater of 25 
                        dwelling units or 25 percent of the dwelling 
                        units in any project may be assisted under a 
                        housing assistance payment contract for 
                        project-based assistance pursuant to this 
                        paragraph. For purposes of this subparagraph, 
                        the term `project' means a single building, 
                        multiple contiguous buildings, or multiple 
                        buildings on contiguous parcels of land.
                            ``(ii) Exceptions.--
                                    ``(I) Certain families.--The 
                                limitation under clause (i) shall not 
                                apply to dwelling units assisted under 
                                a contract that are exclusively made 
                                available to elderly families or to 
                                households eligible for supportive 
                                services that are made available to the 
                                assisted residents of the project, 
                                according to standards for such 
                                services the Secretary may establish.
                                    ``(II) Certain areas.--With respect 
                                to areas in which tenant-based vouchers 
                                for assistance under this subsection 
                                are difficult to use, as determined by 
                                the Secretary, and with respect to 
                                census tracts with a poverty rate of 20 
                                percent or less, clause (i) shall be 
                                applied by substituting `40 percent' 
                                for `25 percent', and the Secretary 
                                may, by regulation, establish 
                                additional conditions.
                                    ``(III) Certain contracts.--The 
                                limitation under clause (i) shall not 
                                apply with respect to contracts or 
                                renewal of contracts under which a 
                                greater percentage of the dwelling 
                                units in a project were assisted under 
                                a housing assistance payment contract 
                                for project-based assistance pursuant 
                                to this paragraph on the date of the 
                                enactment of the Project-Based Voucher 
                                Improvement Act of 2015.
                                    ``(IV) Certain properties.--Any 
                                units of project-based assistance under 
                                this paragraph that are attached to 
                                units previously subject to federally 
                                required rent restrictions or receiving 
                                other project-based assistance provided 
                                by the Secretary shall not count toward 
                                the percentage limitation imposed by 
                                this subparagraph (D).
                            ``(iii) Additional monitoring and oversight 
                        requirements.--The Secretary may establish 
                        additional requirements for monitoring and 
                        oversight of projects in which more than 40 
                        percent of the dwelling units are assisted 
                        under a housing assistance payment contract for 
                        project-based assistance pursuant to this 
                        paragraph.'';
            (5) by striking subparagraph (F) and inserting the 
        following new subparagraph:
                    ``(F) Contract term.--
                            ``(i) Term.--A housing assistance payment 
                        contract pursuant to this paragraph between a 
                        public housing agency and the owner of a 
                        project may have a term of up to 20 years, 
                        subject to--
                                    ``(I) the availability of 
                                sufficient appropriated funds for the 
                                purpose of renewing expiring contracts 
                                for assistance payments, as provided in 
                                appropriation Acts and in the agency's 
                                annual contributions contract with the 
                                Secretary, provided that in the event 
                                of insufficient appropriated funds, 
                                payments due under contracts under this 
                                paragraph shall take priority if other 
                                cost-saving measures that do not 
                                require the termination of an existing 
                                contract are available to the agency; 
                                and
                                    ``(II) compliance with the 
                                inspection requirements under paragraph 
                                (8), except that the agency shall not 
                                be required to make biennial 
                                inspections of each assisted unit in 
                                the development.
                            ``(ii) Addition of eligible units.--Subject 
                        to the limitations of subparagraphs (B) and 
                        (D), the agency and the owner may add eligible 
                        units within the same project to a housing 
                        assistance payments contract at any time during 
                        the term thereof without being subject to any 
                        additional competitive selection procedures.
                            ``(iii) Housing under construction or 
                        recently constructed.--An agency may enter into 
                        a housing assistance payments contract with an 
                        owner for any unit that does not qualify as 
                        existing housing and is under construction or 
                        recently has been constructed whether or not 
                        the agency has executed an agreement to enter 
                        into a contract with the owner, provided that 
                        the owner demonstrates compliance with 
                        applicable requirements prior to execution of 
                        the housing assistance payments contract. This 
                        clause shall not subject a housing assistance 
                        payments contract for existing housing under 
                        this paragraph to such requirements or 
                        otherwise limit the extent to which a unit may 
                        be assisted as existing housing.
                            ``(iv) Additional conditions.--The contract 
                        may specify additional conditions, including 
                        with respect to continuation, termination, or 
                        expiration, and shall specify that upon 
                        termination or expiration of the contract 
                        without extension, each assisted family may 
                        elect to use its assistance under this 
                        subsection to remain in the same project if its 
                        unit complies with the inspection requirements 
                        under paragraph (8), the rent for the unit is 
                        reasonable as required by paragraph (10)(A), 
                        and the family pays its required share of the 
                        rent and the amount, if any, by which the unit 
                        rent (including the amount allowed for tenant-
                        based utilities) exceeds the applicable payment 
                        standard.'';
            (6) in subparagraph (G), by striking ``15 years'' and 
        inserting ``20 years'';
            (7) by striking subparagraph (I) and inserting the 
        following new subparagraph:
                    ``(I) Rent adjustments.--A housing assistance 
                payments contract pursuant to this paragraph entered 
                into after the date of the enactment of the Project-
                Based Voucher Improvement Act of 2015 shall provide for 
                annual rent adjustments upon the request of the owner, 
                except that--
                            ``(i) by agreement of the parties, a 
                        contract may allow a public housing agency to 
                        adjust the rent for covered units using an 
                        operating cost adjustment factor established by 
                        the Secretary pursuant to section 524(c) of the 
                        Multifamily Assisted Housing Reform and 
                        Affordability Act of 1997 (which shall not 
                        result in a negative adjustment), in which case 
                        the contract may require an additional 
                        adjustment, if requested, up to the reasonable 
                        rent periodically during the term of the 
                        contract, and shall require such an adjustment, 
                        if requested, upon extension pursuant to 
                        subparagraph (G);
                            ``(ii) the adjusted rent shall not exceed 
                        the maximum rent permitted under subparagraph 
                        (H);
                            ``(iii) the contract may provide that the 
                        maximum rent permitted for a dwelling unit 
                        shall not be less than the initial rent for the 
                        dwelling unit under the initial housing 
                        assistance payments contract covering the 
                        units; and
                            ``(iv) the provisions of subsection 
                        (c)(2)(C) shall not apply.'';
            (8) in subparagraph (J)--
                    (A) in the first sentence--
                            (i) by striking ``shall'' and inserting 
                        ``may''; and
                            (ii) by inserting before the period the 
                        following ``or may permit owners to select 
                        applicants from site-based waiting lists as 
                        specified in this subparagraph'';
                    (B) by striking the third sentence and inserting 
                the following: ``The agency or owner may establish 
                preferences or criteria for selection for a unit 
                assisted under this paragraph that are consistent with 
                the public housing agency plan for the agency approved 
                under section 5A and that give preference to families 
                who qualify for voluntary services, including 
                disability-specific services, offered in conjunction 
                with assisted units.''; and
                    (C) by striking the fifth and sixth sentences and 
                inserting the following: ``A public housing agency may 
                establish and utilize procedures for owner-maintained 
                site-based waiting lists, under which applicants may 
                apply at, or otherwise designate to the public housing 
                agency, the project or projects in which they seek to 
                reside, except that all eligible applicants on the 
                waiting list of an agency for assistance under this 
                subsection shall be permitted to place their names on 
                such separate list, subject to policies and procedures 
                established by the Secretary. All such procedures shall 
                comply with title VI of the Civil Rights Act of 1964, 
                the Fair Housing Act, section 504 of the Rehabilitation 
                Act of 1973, and other applicable civil rights laws. 
                The owner or manager of a project assisted under this 
                paragraph shall not admit any family to a dwelling unit 
                assisted under a contract pursuant to this paragraph 
                other than a family referred by the public housing 
                agency from its waiting list, or a family on a site-
                based waiting list that complies with the requirements 
                of this subparagraph. A public housing agency shall 
                disclose to each applicant all other options in the 
                selection of a project in which to reside that are 
                provided by the public housing agency and are available 
                to the applicant.'';
            (9) in subparagraph (M)(ii), by inserting before the period 
        at the end the following: ``relating to funding other than 
        housing assistance payments''; and
            (10) by adding at the end the following new subparagraphs:
                    ``(N) Structure owned by agency.--A public housing 
                agency engaged in an initiative to improve, develop, or 
                replace a public housing property or site may attach 
                assistance to an existing, newly constructed, or 
                rehabilitated structure in which the agency has an 
                ownership interest or which the agency has control of 
                without following a competitive process, provided that 
                the agency has notified the public of its intent 
                through its public housing agency plan and subject to 
                the limitations and requirements of this paragraph.
                    ``(O) Special purpose vouchers.--A public housing 
                agency that administers vouchers authorized under 
                subsection (o)(19) or (x) of this section may provide 
                such assistance in accordance with the limitations and 
                requirements of this paragraph, without additional 
                requirements for approval by the Secretary.''.
    (b) Effective Date.--The Secretary of Housing and Urban Development 
shall issue notice or regulations to implement subsection (a) of this 
section and such subsection shall take effect upon such issuance.