SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Housing Development Reform 
Amendments''.

SEC. 2. AUTHORITY TO PROVIDE BY CONTRACT FOR ELIMINATION OF REVIEW 
              PROCESS.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by inserting after subsection (e) the following new 
subsection:
    ``(f) Authority to Eliminate Interim Review in Development Process 
for High-Performing PHA's.--
            ``(1) Authority.--In any contract for contributions to 
        cover the development or acquisition cost of a public housing 
        project by a public housing agency that the Secretary 
        determines is complying with the management performance 
        standards established under subsection (j) in an exemplary 
        manner, the Secretary may include provisions described under 
        paragraph (2).
            ``(2) Exemption from qualified development requirements.--
        The contract provisions referred to in paragraph (1) are 
        provisions that exempt the public housing project assisted 
        under the contract from review (by the Secretary or any field 
        or area office of the Department of Housing and Urban 
        Development) for compliance with qualified development 
        requirements or from any requirement for approval (by the 
        Secretary or any such office) with such requirements, only 
        during the period that ends upon completion of the development 
        or acquisition or at such other time occurring before 
        completion, as may be agreed to by the Secretary and the public 
        housing agency.
            ``(3) Remedies.--Each contract for contributions that 
        includes provisions described under paragraph (2) shall include 
        such additional provisions as the Secretary considers necessary 
        to ensure that, upon completion of development or acquisition, 
        the public housing project assisted under the contract complies 
        with the qualified development requirements, which may include 
        provisions--
                    ``(A) authorizing the imposition of civil monetary 
                penalties against the public housing agency if the 
                Secretary determines, on the record after notice and 
                opportunity for a hearing in accordance with section 
                553 of title 5, United States Code, that the public 
                housing project does not comply with the qualified 
                development requirements regarding site or neighborhood 
                standards or environmental requirements, except that 
                the amount of such penalties may not exceed $10,000 for 
                each such failure to comply and the sum of the 
                penalties imposed against any public housing agency 
                with respect to public housing developed or acquired 
                pursuant to any single contract for contributions may 
                not exceed $1,000,000;
                    ``(B) requiring specific performance sufficient to 
                correct any noncompliance and establishing deadlines 
                for such specific performance;
                    ``(C) authorizing the Secretary to withhold 
                payments (or portions of payments) to be made under the 
                contract upon completion of development or acquisition 
                (or after the expiration of the period established 
                under the contract pursuant to paragraph (2)) to cover 
                the actual development cost of the project until the 
                project complies with qualified development 
                requirements;
                    ``(D) authorizing the Secretary to withhold 
                assistance for the operation of the project until the 
                project complies with qualified development 
                requirements; and
                    ``(E) specifying any other lawful remedy agreed to 
                by the Secretary and the public housing agency.
            ``(4) Definition of `qualified development requirements'.--
        For purposes of this subsection, the term `qualified 
        development requirements' means requirements or standards under 
        law, or established pursuant to law by the Secretary, regarding 
        the development or acquisition of public housing, which shall 
        include site and neighborhood standards, design and 
        construction standards, cost guidelines, environmental 
        requirements, zoning compliance, selection of utilities, and 
        such other requirements or standards as the Secretary may 
        provide.
            ``(5) Rule of construction.--This subsection may not be 
        construed to waive, alter, annul, exempt, or affect the 
        applicability of any qualified development requirements to any 
        public housing project after the expiration of the period 
        established under the contract for the project pursuant to 
        paragraph (2).''.

SEC. 3. CONSTRUCTION COMMENCEMENT REQUIREMENTS.

    Section 5(k) of the United States Housing Act of 1937 (42 U.S.C. 
1437c(k)) is amended by adding at the end the following new sentence: 
``A contract for contributions for development or acquisition of a 
public housing project that includes provisions authorized under 
subsection 6(f) may waive or alter the applicability of the 
requirements under this subsection with respect to the public housing 
project.''.
Public Housing Development Reform Amendments - Authorizes the Secretary of Housing and Urban Development to enter into contracts with high-performing public housing agencies to eliminate certain housing development interim review procedures.
Public Housing Development Reform Amendments