SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rent Reform and Empowerment Act''.

SEC. 2. DETERMINATION OF INCOME AND RENT CHARGES FOR SECTION 8 AND 
              PUBLIC HOUSING PROGRAMS.

    (a) Exclusion of Income Taxes and FICA Tax From Income.--Section 
3(b)(5) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(b)(5)) is amended--
            (1) by redesignating subparagraphs (A) through (G) as 
        subparagraphs (B) through (H), respectively; and
            (2) by inserting before subparagraph (B) (as so 
        redesignated by paragraph (1) of this section) the following 
        new subparagraph:
                    ``(A) the amount of any Federal, State, and local 
                income taxes paid by members of the family and the 
                amount paid by members of the family for the taxes 
                imposed under section 3101 and 3201(a) of the Internal 
                Revenue Code of 1986;''.
    (b) Option to Exclude Earned Income.--Section 3(b)(5) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended by adding 
at the end the following new flush sentence:
``At the option of a public housing agency, the agency may (for all 
families residing in housing assisted by the agency under this Act) 
exclude from consideration as income for purposes of determining any 
limitation on the amount of rent paid by a family, all or part of any 
increases in the earned income of a family that results from the 
employment of a previously unemployed family member; except that such 
increases in earned income may be excluded only during the 5-year 
period beginning on the employment of the family member.''.
    (c) Option to Establish Ceiling Rents.--Section 3(a) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(a)) is amended by adding at 
the end the following new paragraph:
    ``(3) Ceiling Rent Option.--At the option of a public housing 
agency, the agency may provide that rental charges be determined as 
follows:
            ``(A) Public housing and certificates.--Notwithstanding 
        paragraph (1), each family residing in housing assisted by the 
        agency under this Act (other than units assisted under section 
        8(o) or (y)) shall pay as monthly rent for the dwelling unit 
        the lesser of--
                    ``(i) the amount determined under paragraph (1); or
                    ``(ii) 75 percent of--
                            ``(I) the fair market rental for the unit, 
                        in the case of units assisted under section 
                        8(b); and
                            ``(II) the fair market rental established 
                        for comparable units in the market area in 
                        which the dwelling unit is located, in the case 
                        of public housing dwelling units.
            ``(B) Vouchers.--Notwithstanding section 8(o)(2), for each 
        family residing in housing assisted by the agency under section 
        8(o), the monthly assistance payment for the family shall be 
        the amount by which the payment standard for the area exceeds 
        the lesser of--
                    ``(i) 30 percent of the family's monthly adjusted 
                income; or
                    ``(ii) 75 percent of the monthly payment 
                standard.''.
    (d) Option to Freeze Rental Payments.--Section 3(a) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(a)), as amended by 
subsection (b), is further amended by adding at the end the following 
new paragraph:
    ``(4) Option to Freeze Rental Payments.--At the option of a public 
housing agency, the agency may provide that, with respect only to 
families that the agency has determined are engaged in activities that 
promote economic independence and self-sufficiency--
            ``(A) notwithstanding paragraph (1), each such family shall 
        pay as rent for a dwelling unit assisted by the agency under 
        section 8(b) and for a public housing dwelling unit of the 
        agency, during the period in which the family continuously 
        occupies any units assisted under this Act, the sum of--
                    ``(i) the amount payable as rent by such family 
                under paragraph (1) upon initial occupancy during such 
                period in an assisted unit; and
                    ``(ii) the amount determined by the public housing 
                agency to be attributable to any increase in the cost 
                of the dwelling unit for such family that occurs after 
                such initial occupancy, including any increases in the 
                cost of the unit resulting from inflation, increased 
                maintenance or operating costs, and occupancy of a more 
                expensive assisted unit; and
            ``(B) notwithstanding section 8(o)(2), for each such family 
        residing in housing assisted by the agency under section 8(o), 
        the monthly assistance payment for the family during the period 
        in which the family continuously occupies any units assisted 
        under this Act shall be the amount by which the payment 
        standard for the area exceeds the sum of--
                    ``(i) 30 percent of the family's monthly adjusted 
                income upon initial occupancy during such period in an 
                assisted unit; and
                    ``(ii) the amount determined by the public housing 
                agency to be attributable to any increase in the cost 
                of the dwelling unit for such family that occurs after 
                such initial occupancy, including any increases in the 
                cost of the unit resulting from inflation, increased 
                maintenance or operating costs, and occupancy of a more 
                expensive assisted unit.''.
    (e) Applicability to Indian Housing.--In accordance with section 
201(b)(2) of the United States Housing Act of 1937, the provisions of 
this section shall apply to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority.

SEC. 3. PUBLIC HOUSING AUTHORITY MARKET RENT DEMONSTRATION.

    (a) Authority.--At the request of a public housing agency or 
resident management corporation, the Secretary of Housing and Urban 
Development may authorize the agency or corporation to carry out a 
demonstration program under this section to determine the feasibility 
and desirability of providing public housing agencies and resident 
management corporations the authority to establish policies for the 
operation, maintenance, management, and development (including 
modernization) of public housing projects administered by the agency, 
without regard to the requirements under the United States Housing Act 
of 1937 applicable to public housing. In establishing such policies, 
public housing agencies and resident management corporations shall be 
subject to the provisions of any applicable State and local laws.
    (b) Required Findings.--The Secretary may authorize a public 
housing agency or resident management corporation to carry out a 
demonstration program under this section only if the Secretary 
determines, with respect to the particular demonstration program, 
that--
            (1) the program is likely to assist in promoting the 
        objectives of the United States Housing Act of 1937, encourage 
        resident empowerment, and reduce poverty in public housing by 
        improving the means by which economic self-sufficiency may be 
        achieved;
            (2) the program, taken as a whole, will not result in 
        higher costs to the Federal Government than would be incurred 
        absent the program;
            (3) the results of the program will be evaluated and 
        reported to the Secretary by independent entities;
            (4) no fewer very low-income families will be assisted 
        under the program than would otherwise have been assisted; and
            (5) the program is consistent with the Fair Housing Act, 
        title VI of the Civil Rights Act of 1964, section 504 of the 
        Rehabilitation Act of 1973, and the Age Discrimination Act of 
        1975.
    (c) Exceptions to Provisions of United States Housing Act of 
1937.--
            (1) Mandatory.--Notwithstanding any other provision of law, 
        during the period of the demonstration program (pursuant to 
        subsection (i)) section 3(a) of the United States Housing Act 
        of 1937 (relating to rental amounts for dwelling units in 
        public housing projects), sections 3(b)(4) and (5) of such Act 
        (relating to determination of income and adjusted income), and 
        section 16 of such Act (relating to income eligibility) shall 
        not apply to any public housing projects involved in a 
        demonstration program under this section or any families 
        residing in such projects. Each public housing authority and 
        resident management corporation carrying out a demonstration 
        program under this section shall establish rents for dwelling 
        units in projects involved in the demonstration program at the 
        discretion of the agency or corporation.
            (2) Discretionary.--The Secretary may exempt a public 
        housing agency or resident management corporation carrying out 
        a demonstration program under this section from any other 
        requirements of the United States Housing Act of 1937, and 
        modify the requirements of such sections and other provisions 
        with respect to such agencies, that the Secretary determines 
        are not consistent with the purposes of a demonstration 
        program.
    (d) Income Eligibility.--Not less than 30 percent of the total 
number of dwelling units in public housing projects involved in a 
demonstration program carried out under this section by a public 
housing agency or resident management corporation shall be available 
for leasing only to very low-income families.
    (e) Effect on Operating Subsidies.--Notwithstanding any requirement 
pursuant to section 9 of the United States Housing Act of 1937, the 
amount of annual contributions provided for a fiscal year under such 
section to any public housing agency or resident management corporation 
carrying out a demonstration program in such fiscal year may not exceed 
the amount of such annual contributions provided under such section to 
the agency or corporation for the last fiscal year concluding before 
the commencement of the demonstration program by the agency or 
corporation, as adjusted for inflation (as determined by the 
Secretary).
    (f) Treatment of Families Unable to Pay Rental Charges in Public 
Housing.--
            (1) Authority to provide section 8 assistance.--
        Notwithstanding any other provision of law, in connection with 
        carrying out a demonstration program under this section a 
        public housing agency may provide assistance under section 8 of 
        the United States Housing Act of 1937 (to the extent sufficient 
        amounts for such assistance are available to such agency) on 
        behalf of any family that (A) resides in a dwelling unit in a 
        public housing project involved in the demonstration program 
        upon the commencement of the demonstration, (B) is otherwise 
        eligible for such assistance, and (C) under section 3(a)(1) of 
        such Act would pay as rent for a dwelling unit assisted under 
        such section an amount that is less than the rental charge for 
        the public housing dwelling unit under the demonstration 
        program. Any such assistance provided for such family shall be 
        subject to the provisions of section 3(a)(1) or 8(o) of such 
        Act, as applicable.
            (2) Use.--Such assistance may be used in connection with 
        the rental of a public housing dwelling unit or any other 
        dwelling unit eligible for rental using such assistance.
            (3) Preference.--Notwithstanding any other provision of 
        law, a public housing agency carrying out a demonstration 
        program under this section may give preference in providing 
        assistance under such section 8 to families described in 
        paragraph (1) of this subsection.
    (g) Scope of Demonstrations.--In authorizing public housing 
agencies and resident management corporations to carry out 
demonstration programs under this section, the Secretary shall provide 
that the demonstration is carried out with respect to one or more 
specific public housing projects.
    (h) Number of Demonstrations.--The Secretary may authorize not more 
than 50 public housing agencies or resident management corporations to 
carry out demonstration programs under this section.
    (i) Duration.--A public housing agency or resident management 
corporation authorized to carry out a demonstration program under this 
section may carry out the demonstration for a period, determined by the 
agency or corporation, of not more than 5 years.
    (j) Limitation.--The number and duration of demonstration programs 
authorized by the Secretary may not exceed the number and duration 
necessary to achieve the objectives of this section.
    (k) Additional Requirements.--In authorizing a demonstration 
program under this section, the Secretary may impose such requirements 
on the program as the Secretary considers to be appropriate to further 
its purposes.
    (l) Reports.--
            (1) To secretary.--Each public housing agency and resident 
        management corporation carrying out a demonstration program 
        under this section shall submit a report to the Secretary 
        regarding the demonstration for each year in which the 
        demonstration is carried out, as shall be required by the 
        Secretary.
            (2) To congress.--Not later than 6 years after the date of 
        the enactment of this Act, the Secretary shall submit a report 
        to the Congress describing and evaluating the demonstration 
        programs carried out under this section.
    (m) Definitions.--For purposes of this section:
            (1) Public housing.--The terms ``public housing'' and 
        ``project'' have the meanings given such terms in section 3(b) 
        of the United States Housing Act of 1937.
            (2) Public housing agency.--The terms ``public housing 
        agency'' and ``agency'' have the meanings given the term 
        ``public housing agency'' in section 3(b) of the United States 
        Housing Act of 1937.
            (3) Resident management corporation.--The terms ``resident 
        management corporation'' and ``corporation'' mean a resident 
        management corporation established in accordance with 
        requirements of the Secretary under section 20 of the United 
        States Housing Act of 1937.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (5) Very low-income families.--The term ``very low-income 
        families'' has the meaning given the term in section 3(b) of 
        the United States Housing Act of 1937.
    (n) Applicability to Indian Housing.--In accordance with section 
201(b)(2) of the United States Housing Act of 1937, the provisions of 
this section shall apply to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority.

SEC. 4. REGULATIONS.

    The Secretary may issue any regulations necessary to carry out this 
Act and the amendments made by this Act.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1993.
Rent Reform and Empowerment Act - Amends the United States Housing Act of 1937 to exclude from adjusted income (used to determine rent for assisted housing) the amounts of Federal, State, and local income taxes and social security taxes paid by members of the assisted family. 
Authorizes public housing agencies to exclude from consideration as income, for purposes of determining limitations on rent, increases in a family's earned income that result from the employment of a previously unemployed family member.  Limits such exclusion to the five-year period beginning on the employment of the family member. 
Grants public housing agencies the option to establish rent ceilings for all families and to freeze rental payments for families that are engaged in activities that promote economic independence and self-sufficiency. 
Authorizes the Secretary of Housing and Urban Development, at the request of a public housing agency or resident management corporation and under certain conditions, to provide for demonstration programs to determine the feasibility of authorizing such agencies or corporations to establish policies for the operation, maintenance, management, and development of public housing projects without regard to requirements under the United States Housing Act of 1937. 
Makes certain provisions of the United States Housing Act of 1937 (concerning rental amounts, determination of income and adjustment income, and income eligibility) inapplicable during the period of a demonstration program.  Requires rents to be established at the discretion of the agency or corporation and at least 30 percent of the units involved in the program to be available for very low-income families. 
Authorizes agencies to provide Section 8 assistance to families in units involved in demonstration programs subject to certain conditions. 
Permits up to 50 agencies and corporations to carry out such programs.  Limits programs to five-year periods. 
Makes this Act applicable to Indian housing.
Rent Reform and Empowerment Act