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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Enrolled Bill (ENR)]

        H.R.3700

                     One Hundred Fourteenth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
           the fourth day of January, two thousand and sixteen

                                 An Act

 
     To provide housing opportunities in the United States through 
   modernization of various housing programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Housing 
Opportunity Through Modernization Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.

         TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING

Sec. 101. Inspection of dwelling units.
Sec. 102. Income reviews.
Sec. 103. Limitation on public housing tenancy for over-income families.
Sec. 104. Limitation on eligibility for assistance based on assets.
Sec. 105. Units owned by public housing agencies.
Sec. 106. PHA project-based assistance.
Sec. 107. Establishment of fair market rent.
Sec. 108. Collection of utility data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Family unification program for children aging out of foster 
          care.
Sec. 111. Public housing heating guidelines.
Sec. 112. Use of vouchers for manufactured housing.
Sec. 113. Preference for United States citizens or nationals.
Sec. 114. Exception to public housing agency resident board member 
          requirement.

                         TITLE II--RURAL HOUSING

Sec. 201. Delegation of guaranteed rural housing loan approval.
Sec. 202. Guaranteed underwriting user fee.

           TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS

Sec. 301. Modification of FHA requirements for mortgage insurance for 
          condominiums.

       TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS

Sec. 401. Definition of geographic area for Continuum of Care Program.
Sec. 402. Inclusion of public housing agencies and local redevelopment 
          authorities in emergency solutions grants.
Sec. 403. Special assistant for Veterans Affairs in the Department of 
          Housing and Urban Development.
Sec. 404. Annual supplemental report on veterans homelessness.
Sec. 405. Reopening of public comment period for continuum of care 
          program regulations.

                         TITLE V--MISCELLANEOUS

Sec. 501. Inclusion of Disaster Housing Assistance Program in certain 
          fraud and abuse prevention measures.
Sec. 502. Energy efficiency requirements under Self-Help Homeownership 
          Opportunity program.
Sec. 503. Data exchange standardization for improved interoperability.

                            TITLE VI--REPORTS

Sec. 601. Report on interagency family economic empowerment strategies.

         TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

Sec. 701. Formula and terms for allocations to prevent homelessness for 
          individuals living with HIV or AIDS.

        TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING

    SEC. 101. INSPECTION OF DWELLING UNITS.
    (a) In General.--Section 8(o)(8) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(8)) is amended--
        (1) by striking subparagraph (A) and inserting the following 
    new subparagraph:
            ``(A) Initial inspection.--
                ``(i) In general.--For each dwelling unit for which a 
            housing assistance payment contract is established under 
            this subsection, the public housing agency (or other entity 
            pursuant to paragraph (11)) shall inspect the unit before 
            any assistance payment is made to determine whether the 
            dwelling unit meets the housing quality standards under 
            subparagraph (B), except as provided in clause (ii) or 
            (iii) of this subparagraph.
                ``(ii) Correction of non-life-threatening conditions.--
            In the case of any dwelling unit that is determined, 
            pursuant to an inspection under clause (i), not to meet the 
            housing quality standards under subparagraph (B), 
            assistance payments may be made for the unit 
            notwithstanding subparagraph (C) if failure to meet such 
            standards is a result only of non-life-threatening 
            conditions, as such conditions are established by the 
            Secretary. A public housing agency making assistance 
            payments pursuant to this clause for a dwelling unit shall, 
            30 days after the beginning of the period for which such 
            payments are made, withhold any assistance payments for the 
            unit if any deficiency resulting in noncompliance with the 
            housing quality standards has not been corrected by such 
            time. The public housing agency shall recommence assistance 
            payments when such deficiency has been corrected, and may 
            use any payments withheld to make assistance payments 
            relating to the period during which payments were withheld.
                ``(iii) Use of alternative inspection method for 
            interim period.--In the case of any property that within 
            the previous 24 months has met the requirements of an 
            inspection that qualifies as an alternative inspection 
            method pursuant to subparagraph (E), a public housing 
            agency may authorize occupancy before the inspection under 
            clause (i) has been completed, and may make assistance 
            payments retroactive to the beginning of the lease term 
            after the unit has been determined pursuant to an 
            inspection under clause (i) to meet the housing quality 
            standards under subparagraph (B). This clause may not be 
            construed to exempt any dwelling unit from compliance with 
            the requirements of subparagraph (D).'';
        (2) by redesignating subparagraph (G) as subparagraph (H); and
        (3) by inserting after subparagraph (F) the following new 
    subparagraph:
            ``(G) Enforcement of housing quality standards.--
                ``(i) Determination of noncompliance.--A dwelling unit 
            that is covered by a housing assistance payments contract 
            under this subsection shall be considered, for purposes of 
            subparagraphs (D) and (F), to be in noncompliance with the 
            housing quality standards under subparagraph (B) if--

                    ``(I) the public housing agency or an inspector 
                authorized by the State or unit of local government 
                determines upon inspection of the unit that the unit 
                fails to comply with such standards;
                    ``(II) the agency or inspector notifies the owner 
                of the unit in writing of such failure to comply; and
                    ``(III) the failure to comply is not corrected--

                        ``(aa) in the case of any such failure that is 
                    a result of life-threatening conditions, within 24 
                    hours after such notice has been provided; and
                        ``(bb) in the case of any such failure that is 
                    a result of non-life-threatening conditions, within 
                    30 days after such notice has been provided or such 
                    other reasonable longer period as the public 
                    housing agency may establish.
                ``(ii) Withholding of assistance amounts during 
            correction.--The public housing agency may withhold 
            assistance amounts under this subsection with respect to a 
            dwelling unit for which a notice pursuant to clause 
            (i)(II), of failure to comply with housing quality 
            standards under subparagraph (B) as determined pursuant to 
            an inspection conducted under subparagraph (D) or (F), has 
            been provided. If the unit is brought into compliance with 
            such housing quality standards during the periods referred 
            to in clause (i)(III), the public housing agency shall 
            recommence assistance payments and may use any amounts 
            withheld during the correction period to make assistance 
            payments relating to the period during which payments were 
            withheld.
                ``(iii) Abatement of assistance amounts.--The public 
            housing agency shall abate all of the assistance amounts 
            under this subsection with respect to a dwelling unit that 
            is determined, pursuant to clause (i) of this subparagraph, 
            to be in noncompliance with housing quality standards under 
            subparagraph (B). Upon completion of repairs by the public 
            housing agency or the owner sufficient so that the dwelling 
            unit complies with such housing quality standards, the 
            agency shall recommence payments under the housing 
            assistance payments contract to the owner of the dwelling 
            unit.
                ``(iv) Notification.--If a public housing agency 
            providing assistance under this subsection abates rental 
            assistance payments pursuant to clause (iii) with respect 
            to a dwelling unit, the agency shall, upon commencement of 
            such abatement--

                    ``(I) notify the tenant and the owner of the 
                dwelling unit that--

                        ``(aa) such abatement has commenced; and
                        ``(bb) if the dwelling unit is not brought into 
                    compliance with housing quality standards within 60 
                    days after the effective date of the determination 
                    of noncompliance under clause (i) or such 
                    reasonable longer period as the agency may 
                    establish, the tenant will have to move; and

                    ``(II) issue the tenant the necessary forms to 
                allow the tenant to move to another dwelling unit and 
                transfer the rental assistance to that unit.

                ``(v) Protection of tenants.--An owner of a dwelling 
            unit may not terminate the tenancy of any tenant because of 
            the withholding or abatement of assistance pursuant to this 
            subparagraph. During the period that assistance is abated 
            pursuant to this subparagraph, the tenant may terminate the 
            tenancy by notifying the owner.
                ``(vi) Termination of lease or assistance payments 
            contract.--If assistance amounts under this section for a 
            dwelling unit are abated pursuant to clause (iii) and the 
            owner does not correct the noncompliance within 60 days 
            after the effective date of the determination of 
            noncompliance under clause (i), or such other reasonable 
            longer period as the public housing agency may establish, 
            the agency shall terminate the housing assistance payments 
            contract for the dwelling unit.
                ``(vii) Relocation.--

                    ``(I) Lease of new unit.--The agency shall provide 
                the family residing in such a dwelling unit a period of 
                90 days or such longer period as the public housing 
                agency determines is reasonably necessary to lease a 
                new unit, beginning upon termination of the contract, 
                to lease a new residence with tenant-based rental 
                assistance under this section.
                    ``(II) Availability of public housing units.--If 
                the family is unable to lease such a new residence 
                during such period, the public housing agency shall, at 
                the option of the family, provide such family a 
                preference for occupancy in a dwelling unit of public 
                housing that is owned or operated by the agency that 
                first becomes available for occupancy after the 
                expiration of such period.
                    ``(III) Assistance in finding unit.--The public 
                housing agency may provide assistance to the family in 
                finding a new residence, including use of up to two 
                months of any assistance amounts withheld or abated 
                pursuant to clause (ii) or (iii), respectively, for 
                costs directly associated with relocation of the family 
                to a new residence, which shall include security 
                deposits as necessary and may include reimbursements 
                for reasonable moving expenses incurred by the 
                household, as established by the Secretary. The agency 
                may require that a family receiving assistance for a 
                security deposit shall remit, to the extent of such 
                assistance, the amount of any security deposit refunds 
                made by the owner of the dwelling unit for which the 
                lease was terminated.

                ``(viii) Tenant-caused damages.--If a public housing 
            agency determines that any damage to a dwelling unit that 
            results in a failure of the dwelling unit to comply with 
            housing quality standards under subparagraph (B), other 
            than any damage resulting from ordinary use, was caused by 
            the tenant, any member of the tenant's household, or any 
            guest or other person under the tenant's control, the 
            agency may waive the applicability of this subparagraph, 
            except that this clause shall not exonerate a tenant from 
            any liability otherwise existing under applicable law for 
            damages to the premises caused by such tenant.
                ``(ix) Applicability.--This subparagraph shall apply to 
            any dwelling unit for which a housing assistance payments 
            contract is entered into or renewed after the date of the 
            effectiveness of the regulations implementing this 
            subparagraph.''.
    (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.
    SEC. 102. INCOME REVIEWS.
    (a) Income Reviews for Public Housing and Section 8 Programs.--
Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is 
amended--
        (1) in subsection (a)--
            (A) in the second sentence of paragraph (1), by striking 
        ``at least annually'' and inserting ``pursuant to paragraph 
        (6)''; and
            (B) by adding at the end the following new paragraphs:
        ``(6) Reviews of family income.--
            ``(A) Frequency.--Reviews of family income for purposes of 
        this section shall be made--
                ``(i) in the case of all families, upon the initial 
            provision of housing assistance for the family;
                ``(ii) annually thereafter, except as provided in 
            paragraph (1) with respect to fixed-income families;
                ``(iii) upon the request of the family, at any time the 
            income or deductions (under subsection (b)(5)) of the 
            family change by an amount that is estimated to result in a 
            decrease of 10 percent (or such lower amount as the 
            Secretary may, by notice, establish, or permit the public 
            housing agency or owner to establish) or more in annual 
            adjusted income; and
                ``(iv) at any time the income or deductions (under 
            subsection (b)(5)) of the family change by an amount that 
            is estimated to result in an increase of 10 percent or more 
            in annual adjusted income, or such other amount as the 
            Secretary may by notice establish, except that any increase 
            in the earned income of a family shall not be considered 
            for purposes of this clause (except that earned income may 
            be considered if the increase corresponds to previous 
            decreases under clause (iii)), except that a public housing 
            agency or owner may elect not to conduct such review in the 
            last three months of a certification period.
            ``(B) In general.--Reviews of family income for purposes of 
        this section shall be subject to the provisions of section 904 
        of the Stewart B. McKinney Homeless Assistance Amendments Act 
        of 1988 (42 U.S.C. 3544).
        ``(7) Calculation of income.--
            ``(A) Use of current year income.--In determining family 
        income for initial occupancy or provision of housing assistance 
        pursuant to clause (i) of paragraph (6)(A) or pursuant to 
        reviews pursuant to clause (iii) or (iv) of such paragraph, a 
        public housing agency or owner shall use the income of the 
        family as estimated by the agency or owner for the upcoming 
        year.
            ``(B) Use of prior year income.--In determining family 
        income for annual reviews pursuant to paragraph (6)(A)(ii), a 
        public housing agency or owner shall, except as otherwise 
        provided in this paragraph and paragraph (1), use the income of 
        the family as determined by the agency or owner for the 
        preceding year, taking into consideration any redetermination 
        of income during such prior year pursuant to clause (iii) or 
        (iv) of paragraph (6)(A).
            ``(C) Other income.--In determining the income for any 
        family based on the prior year's income, with respect to prior 
        year calculations of income not subject to subparagraph (B), a 
        public housing agency or owner may make other adjustments as it 
        considers appropriate to reflect current income.
            ``(D) Safe harbor.--A public housing agency or owner may, 
        to the extent such information is available to the public 
        housing agency or owner, determine the family's income prior to 
        the application of any deductions based on timely income 
        determinations made for purposes of other means-tested Federal 
        public assistance programs (including the program for block 
        grants to States for temporary assistance for needy families 
        under part A of title IV of the Social Security Act, a program 
        for Medicaid assistance under a State plan approved under title 
        XIX of the Social Security Act, and the supplemental nutrition 
        assistance program (as such term is defined in section 3 of the 
        Food and Nutrition Act of 2008 (7 U.S.C. 2012))). The Secretary 
        shall, in consultation with other appropriate Federal agencies, 
        develop electronic procedures to enable public housing agencies 
        and owners to have access to such benefit determinations made 
        by other means-tested Federal programs that the Secretary 
        determines to have comparable reliability. Exchanges of such 
        information shall be subject to the same limitations and tenant 
        protections provided under section 904 of the Stewart B. 
        McKinney Homeless Assistance Act Amendments of 1988 (42 U.S.C. 
        3544) with respect to information obtained under the 
        requirements of section 303(i) of the Social Security Act (42 
        U.S.C. 503(i)).
            ``(E) Electronic income verification.--The Secretary shall 
        develop a mechanism for disclosing information to a public 
        housing agency for the purpose of verifying the employment and 
        income of individuals and families in accordance with section 
        453(j)(7)(E) of the Social Security Act (42 U.S.C. 
        653(j)(7)(E)), and shall ensure public housing agencies have 
        access to information contained in the `Do Not Pay' system 
        established by section 5 of the Improper Payments Elimination 
        and Recovery Improvement Act of 2012 (Public Law 112-248; 126 
        Stat. 2392).
            ``(F) PHA and owner compliance.--A public housing agency or 
        owner may not be considered to fail to comply with this 
        paragraph or paragraph (6) due solely to any de minimis errors 
        made by the agency or owner in calculating family incomes.'';
        (2) by striking subsections (d) and (e); and
        (3) by redesignating subsection (f) as subsection (d).
    (b) Certification Regarding Hardship Exception to Minimum Monthly 
Rent.--Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Secretary of Housing and 
Urban Development shall submit to the Congress a certification that the 
hardship and tenant protection provisions in clause (i) of section 
3(a)(3)(B) of the United States Housing Act of 1937 (42 U.S.C. 
1437a(a)(3)(B)(i)) are being enforced at such time and that the 
Secretary will continue to provide due consideration to the hardship 
circumstances of persons assisted under relevant programs of this Act.
    (c) Income; Adjusted Income.--Section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by striking 
paragraphs (4) and (5) and inserting the following new paragraphs:
        ``(4) Income.--The term `income' means, with respect to a 
    family, income received from all sources by each member of the 
    household who is 18 years of age or older or is the head of 
    household or spouse of the head of the household, plus unearned 
    income by or on behalf of each dependent who is less than 18 years 
    of age, as determined in accordance with criteria prescribed by the 
    Secretary, in consultation with the Secretary of Agriculture, 
    subject to the following requirements:
            ``(A) Included amounts.--Such term includes recurring gifts 
        and receipts, actual income from assets, and profit or loss 
        from a business.
            ``(B) Excluded amounts.--Such term does not include--
                ``(i) any imputed return on assets, except to the 
            extent that net family assets exceed $50,000, except that 
            such amount (as it may have been previously adjusted) shall 
            be adjusted for inflation annually by the Secretary in 
            accordance with an inflationary index selected by the 
            Secretary;
                ``(ii) any amounts that would be eligible for exclusion 
            under section 1613(a)(7) of the Social Security Act (42 
            U.S.C. 1382b(a)(7));
                ``(iii) deferred disability benefits from the 
            Department of Veterans Affairs that are received in a lump 
            sum amount or in prospective monthly amounts;
                ``(iv) any expenses related to aid and attendance under 
            section 1521 of title 38, United States Code, to veterans 
            who are in need of regular aid and attendance; and
                ``(v) exclusions from income as established by the 
            Secretary by regulation or notice, or any amount required 
            by Federal law to be excluded from consideration as income.
            ``(C) Earned income of students.--Such term does not 
        include--
                ``(i) earned income, up to an amount as the Secretary 
            may by regulation establish, of any dependent earned during 
            any period that such dependent is attending school or 
            vocational training on a full-time basis; or
                ``(ii) any grant-in-aid or scholarship amounts related 
            to such attendance used--

                    ``(I) for the cost of tuition or books; or
                    ``(II) in such amounts as the Secretary may allow, 
                for the cost of room and board.

            ``(D) Educational savings accounts.--Income shall be 
        determined without regard to any amounts in or from, or any 
        benefits from, 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.
            ``(E) Recordkeeping.--The Secretary may not require a 
        public housing agency or owner to maintain records of any 
        amounts excluded from income pursuant to this subparagraph.
        ``(5) Adjusted income.--The term `adjusted income' means, with 
    respect to a family, the amount (as determined by the public 
    housing agency or owner) of the income of the members of the family 
    residing in a dwelling unit or the persons on a lease, after any 
    deductions from income as follows:
            ``(A) Elderly and disabled families.--$525 in the case of 
        any family that is an elderly family or a disabled family.
            ``(B) 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.
            ``(C) Child care.--Any reasonable child care expenses 
        necessary to enable a member of the family to be employed or to 
        further his or her education.
            ``(D) Health and medical expenses.--The amount, if any, by 
        which 10 percent of annual family income is exceeded by the sum 
        of--
                ``(i) in the case of any elderly or disabled family, 
            any unreimbursed health and medical care expenses; and
                ``(ii) any unreimbursed reasonable attendant care and 
            auxiliary apparatus expenses for each handicapped member of 
            the family, if determined necessary by the public housing 
            agency or owner to enable any member of such family to be 
            employed.
         The Secretary shall, by regulation, provide hardship 
        exemptions to the requirements of this subparagraph and 
        subparagraph (C) for impacted families who demonstrate an 
        inability to pay calculated rents because of financial 
        hardship. Such regulations shall include a requirement to 
        notify tenants regarding any changes to the determination of 
        adjusted income pursuant to such subparagraphs based on the 
        determination of the family's claim of financial hardship 
        exemptions required by the preceding sentence. Such regulations 
        shall be promulgated in consultation with tenant organizations, 
        industry participants, and the Secretary of Health and Human 
        Services, with an adequate comment period provided for 
        interested parties.
            ``(E) Permissive deductions.--Such additional deductions as 
        a public housing agency may, at its discretion, establish, 
        except that the Secretary shall establish procedures to ensure 
        that such deductions do not materially increase Federal 
        expenditures.
    The Secretary shall annually calculate the amounts of the 
    deductions under subparagraphs (A) and (B), as such amounts may 
    have been previously calculated, by applying an inflationary factor 
    as the Secretary shall, by regulation, establish, except that the 
    actual deduction determined for each year shall be established by 
    rounding such amount to the next lowest multiple of $25.''.
    (d) Housing Choice Voucher Program.--Section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
        (1) in paragraph (1)(D), by inserting before the period at the 
    end the following: ``, except that a public housing agency may 
    establish a payment standard of not more than 120 percent of the 
    fair market rent where necessary as a reasonable accommodation for 
    a person with a disability, without approval of the Secretary. A 
    public housing agency may use a payment standard that is greater 
    than 120 percent of the fair market rent as a reasonable 
    accommodation for a person with a disability, but only with the 
    approval of the Secretary. In connection with the use of any 
    increased payment standard established or approved pursuant to 
    either of the preceding two sentences as a reasonable accommodation 
    for a person with a disability, the Secretary may not establish 
    additional requirements regarding the amount of adjusted income 
    paid by such person for rent''; and
        (2) in paragraph (5)--
            (A) in the paragraph heading, by striking ``Annual review'' 
        and inserting ``Reviews'';
            (B) in subparagraph (A)--
                (i) by striking ``the provisions of'' and inserting 
            ``paragraphs (1), (6), and (7) of section 3(a) and to''; 
            and
                (ii) by striking ``and shall be conducted'' and all 
            that follows through the end of the subparagraph and 
            inserting a period; and
            (C) in subparagraph (B), by striking the second sentence.
    (e) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by 
striking ``income'' each place such term appears and inserting ``annual 
adjusted income''.
    (f) Project-Based Housing.--Paragraph (3) of section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by 
striking the last sentence.
    (g) Impact on Public Housing Revenues.--
        (1) Adjustments to operating formula.--If the Secretary of 
    Housing and Urban Development determines that the application of 
    subsections (a) through (e) of this section results in a material 
    and disproportionate reduction in the rental income of certain 
    public housing agencies during the first year in which such 
    subsections are implemented, the Secretary may make appropriate 
    adjustments in the formula income for such year of those agencies 
    experiencing such a reduction.
        (2) HUD reports on revenue and cost impact.--In each of the 
    first two years after the first year in which subsections (a) 
    through (e) are implemented, the Secretary of Housing and Urban 
    Development shall submit a report to Congress identifying and 
    calculating the impact of changes made by such subsections and 
    section 104 of this Act on the revenues and costs of operating 
    public housing units, the voucher program for rental assistance 
    under section 8 of the United States Housing Act of 1937, and the 
    program under such section 8 for project-based rental assistance. 
    If such report identifies a material reduction in the net income of 
    public housing agencies nationwide or a material increase in the 
    costs of funding the voucher program or the project-based 
    assistance program, the Secretary shall include in such report 
    recommendations for legislative changes to reduce or eliminate such 
    a reduction.
    (h) Effective Date.--The Secretary of Housing and Urban Development 
shall issue notice or regulations to implement this section and this 
section shall take effect after such issuance, except that this section 
may only take effect upon the commencement of a calendar year.
    (i) Study on Impact on Elderly and Disabled Families of Decreased 
Deductions in Income.--
        (1) Study.--The Secretary of Housing and Urban Development 
    shall conduct a study to determine the impacts, on rents paid by 
    elderly and disabled individuals and families assisted under the 
    section 8 rental assistance and public housing programs under the 
    United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), of any 
    decreases in the amounts of any deductions from income (for 
    purposes of section 3(b) of such Act (42 U.S.C. 1437a(b))), as 
    compared to such deductions under such section 3(b) as in effect 
    before the effectiveness of this section, resulting from the 
    amendments made by this section.
        (2) Report.--The Secretary shall submit to the Congress a 
    report setting forth the results of the study conducted pursuant to 
    paragraph (1) not later than the expiration of the 12-month period 
    beginning on the date of the enactment of this Act.
        (3) Effective date.--Notwithstanding subsection (h) of this 
    section, this subsection shall take effect on the date of the 
    enactment of this Act.
    SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER-INCOME 
      FAMILIES.
    Subsection (a) of section 16 of the United States Housing Act of 
1937 (42 U.S.C. 1437n(a)) is amended by adding at the end the following 
new paragraph:
        ``(5) Limitations on tenancy for over-income families.--
            ``(A) Limitations.--Except as provided in subparagraph (D), 
        in the case of any family residing in a dwelling unit of public 
        housing whose income for the most recent two consecutive years, 
        as determined pursuant to income reviews conducted pursuant to 
        section 3(a)(6), has exceeded the applicable income limitation 
        under subparagraph (C), the public housing agency shall--
                ``(i) notwithstanding any other provision of this Act, 
            charge such family as monthly rent for the unit occupied by 
            such family an amount equal to the greater of--

                    ``(I) the applicable fair market rental established 
                under section 8(c) for a dwelling unit in the same 
                market area of the same size; or
                    ``(II) the amount of the monthly subsidy provided 
                under this Act for the dwelling unit, which shall 
                include any amounts from the Operating Fund and Capital 
                Fund under section 9 used for the unit, as determined 
                by the agency in accordance with regulations that the 
                Secretary shall issue to carry out this subclause; or

                ``(ii) terminate the tenancy of such family in public 
            housing not later than 6 months after the income 
            determination described in subparagraph (A).
            ``(B) 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 
        (C), upon the conclusion of such year the public housing agency 
        shall provide written notice to such family of the requirements 
        under subparagraph (A).
            ``(C) 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, except that the Secretary may 
        establish income limitations higher or lower than 120 percent 
        of such median income 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, 
        vacancy rates, or rental costs.
            ``(D) Exception.--Subparagraph (A) shall not apply to a 
        family occupying a dwelling unit in public housing pursuant to 
        paragraph (5) of section 3(a) (42 U.S.C. 1437a(a)(5)).
            ``(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 (C); and
                    ``(II) the number of families, as of the end of 
                such year, on the waiting lists for admission to public 
                housing projects of the agency; and

                ``(ii) make the information reported pursuant to clause 
            (i) publicly available.''.
    SEC. 104. 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 new 
subsection:
    ``(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 of 
            this Act;
                ``(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' 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. Such term 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) from any 
        financial institution (within the meaning of section 1101(1) of 
        such Act) any financial record (within the meaning of section 
        1101(2) of such Act) 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, 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, and need not be 
        furnished to the financial institution, notwithstanding section 
        1104(a) of such Act.
            ``(ii) The certification requirements of section 1103(b) of 
        the Right to Financial Privacy Act 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 and the flush language of section 1102 of 
        such Act.
            ``(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.''.
    SEC. 105. 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. 106. 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 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.'';
        (3) 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 Housing Opportunity Through 
                Modernization Act of 2016.
                    ``(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.'';
        (4) 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.'';
        (5) in subparagraph (G), by striking ``15 years'' and inserting 
    ``20 years'';
        (6) 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 Housing Opportunity Through 
        Modernization Act of 2016 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.'';
        (7) 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.'';
        (8) in subparagraph (M)(ii), by inserting before the period at 
    the end the following: ``relating to funding other than housing 
    assistance payments''; and
        (9) 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.
    SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT.
    (a) In General.--Paragraph (1) of section 8(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
        (1) by inserting ``(A)'' after the paragraph designation;
        (2) by striking the fourth, seventh, eighth, and ninth 
    sentences; and
        (3) by adding at the end the following:
    ``(B) Fair market rentals for an area shall be published not less 
than annually by the Secretary on the site of the Department on the 
World Wide Web and in any other manner specified by the Secretary. 
Notice that such fair market rentals are being published shall be 
published in the Federal Register, and such fair market rentals shall 
become effective no earlier than 30 days after the date of such 
publication. The Secretary shall establish a procedure for public 
housing agencies and other interested parties to comment on such fair 
market rentals and to request, within a time specified by the 
Secretary, reevaluation of the fair market rentals in a jurisdiction 
before such rentals become effective. The Secretary shall cause to be 
published for comment in the Federal Register notices of proposed 
material changes in the methodology for estimating fair market rentals 
and notices specifying the final decisions regarding such proposed 
substantial methodological changes and responses to public comments.''.
    (b) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended 
by inserting before the period at the end the following: ``, except 
that no public housing agency shall be required as a result of a 
reduction in the fair market rental to reduce the payment standard 
applied to a family continuing to reside in a unit for which the family 
was receiving assistance under this section at the time the fair market 
rental was reduced. The Secretary shall allow public housing agencies 
to request exception payment standards within fair market rental areas 
subject to criteria and procedures established by the Secretary''.
    (c) Effective Date.--The amendments made by this section shall take 
effect upon the date of the enactment of this Act.
    SEC. 108. COLLECTION OF UTILITY DATA.
    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following new paragraph:
        ``(20) Collection of utility data.--
            ``(A) Publication.--The Secretary shall, to the extent that 
        data can be collected cost effectively, regularly publish such 
        data regarding utility consumption and costs in local areas as 
        the Secretary determines will be useful for the establishment 
        of allowances for tenant-paid utilities for families assisted 
        under this subsection.
            ``(B) Use of data.--The Secretary shall provide such data 
        in a manner that--
                ``(i) avoids unnecessary administrative burdens for 
            public housing agencies and owners; and
                ``(ii) protects families in various unit sizes and 
            building types, and using various utilities, from high rent 
            and utility cost burdens relative to income.''.
    SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
    (a) Capital Fund Replacement Reserves.--Section 9 of the United 
States Housing Act of 1937 (42 U.S.C. 1437g) is amended--
        (1) in subsection (j), by adding at the end the following new 
    paragraph:
        ``(7) Treatment of replacement reserve.--The requirements of 
    this subsection shall not apply to funds held in replacement 
    reserves established pursuant to subsection (n).''; and
        (2) by adding at the end the following new subsection:
    ``(n) Establishment of Replacement Reserves.--
        ``(1) In general.--Public housing agencies shall be permitted 
    to establish a replacement reserve to fund any of the capital 
    activities listed in subsection (d)(1).
        ``(2) Source and amount of funds for replacement reserve.--At 
    any time, a public housing agency may deposit funds from such 
    agency's Capital Fund into a replacement reserve, subject to the 
    following:
            ``(A) At the discretion of the Secretary, public housing 
        agencies may transfer and hold in a replacement reserve funds 
        originating from additional sources.
            ``(B) No minimum transfer of funds to a replacement reserve 
        shall be required.
            ``(C) At any time, a public housing agency may not hold in 
        a replacement reserve more than the amount the public housing 
        authority has determined necessary to satisfy the anticipated 
        capital needs of properties in its portfolio assisted under 
        this section, as outlined in its Capital Fund 5-Year Action 
        Plan, or a comparable plan, as determined by the Secretary.
            ``(D) The Secretary may establish, by regulation, a maximum 
        replacement reserve level or levels that are below amounts 
        determined under subparagraph (C), which may be based upon the 
        size of the portfolio assisted under this section or other 
        factors.
        ``(3) Transfer of operating funds.--In first establishing a 
    replacement reserve, the Secretary may allow public housing 
    agencies to transfer more than 20 percent of its operating funds 
    into its replacement reserve.
        ``(4) Expenditure.--Funds in a replacement reserve may be used 
    for purposes authorized by subsection (d)(1) and contained in its 
    Capital Fund 5-Year Action Plan.
        ``(5) Management and report.--The Secretary shall establish 
    appropriate accounting and reporting requirements to ensure that 
    public housing agencies are spending funds on eligible projects and 
    that funds in the replacement reserve are connected to capital 
    needs.''.
    (b) Flexibility of Operating Fund Amounts.--Paragraph (1) of 
section 9(g) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(g)(1)) is amended--
        (1) by striking ``(1)'' and all that follows through ``--Of'' 
    and inserting the following:
        ``(1) Flexibility in use of funds.--
            ``(A) Flexibility for capital fund amounts.--Of''; and
        (2) by adding at the end the following new subparagraph:
            ``(B) Flexibility for operating fund amounts.--Of any 
        amounts appropriated for fiscal year 2016 or any fiscal year 
        thereafter that are allocated for fiscal year 2016 or any 
        fiscal year thereafter from the Operating Fund for any public 
        housing agency, the agency may use not more than 20 percent for 
        activities that are eligible under subsection (d) for 
        assistance with amounts from the Capital Fund, but only if the 
        public housing plan under section 5A for the agency provides 
        for such use.''.
    SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT OF 
      FOSTER CARE.
    Section 8(x) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(x)) is amended--
        (1) in paragraph (2)(B)--
            (A) by striking ``18 months'' and inserting ``36 months'';
            (B) by striking ``21 years of age'' and inserting ``24 
        years of age''; and
            (C) by inserting after ``have left foster care'' the 
        following: ``, or will leave foster care within 90 days, in 
        accordance with a transition plan described in section 
        475(5)(H) of the Social Security Act, and is homeless or is at 
        risk of becoming homeless'';
        (2) by redesignating paragraph (4) as paragraph (5); and
        (3) by inserting after paragraph (3) the following new 
    paragraph:
        ``(4) Coordination between public housing agencies and public 
    child welfare agencies.--The Secretary shall, not later than the 
    expiration of the 180-day period beginning on the date of the 
    enactment of the Housing Opportunity Through Modernization Act of 
    2016 and after consultation with other appropriate Federal 
    agencies, issue guidance to improve coordination between public 
    housing agencies and public child welfare agencies in carrying out 
    the program under this subsection, which shall provide guidance 
    on--
            ``(A) identifying eligible recipients for assistance under 
        this subsection;
            ``(B) coordinating with other local youth and family 
        providers in the community and participating in the Continuum 
        of Care program established under subtitle C of title IV of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et 
        seq.);
            ``(C) implementing housing strategies to assist eligible 
        families and youth;
            ``(D) aligning system goals to improve outcomes for 
        families and youth and reducing lapses in housing for families 
        and youth; and
            ``(E) identifying resources that are available to eligible 
        families and youth to provide supportive services available 
        through parts B and E of title IV of the Social Security Act 
        (42 U.S.C. 621 et seq.; 670 et seq.) or that the head of 
        household of a family or youth may be entitled to receive under 
        section 477 of the Social Security Act (42 U.S.C. 677).''.
    SEC. 111. PUBLIC HOUSING HEATING GUIDELINES.
    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(o) Public Housing Heating Guidelines.--The Secretary shall 
publish model guidelines for minimum heating requirements for public 
housing dwelling units operated by public housing agencies receiving 
assistance under this section.''.
    SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING.
    (a) In General.--Section 8(o)(12) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(12)) is amended--
        (1) in subparagraph (A), by striking the period at the end of 
    the first sentence and all that follows through ``of'' in the 
    second sentence and inserting ``and rents''; and
        (2) in subparagraph (B)--
            (A) in clause (i), by striking ``the rent'' and all that 
        follows and inserting the following: ``rent shall mean the sum 
        of the monthly payments made by a family assisted under this 
        paragraph to amortize the cost of purchasing the manufactured 
        home, including any required insurance and property taxes, the 
        monthly amount allowed for tenant-paid utilities, and the 
        monthly rent charged for the real property on which the 
        manufactured home is located, including monthly management and 
        maintenance charges.'';
            (B) by striking clause (ii); and
            (C) in clause (iii)--
                (i) by inserting after the period at the end the 
            following: ``If the amount of the monthly assistance 
            payment for a family exceeds the monthly rent charged for 
            the real property on which the manufactured home is 
            located, including monthly management and maintenance 
            charges, a public housing agency may pay the remainder to 
            the family, lender or utility company, or may choose to 
            make a single payment to the family for the entire monthly 
            assistance amount.''; and
                (ii) by redesignating such clause as clause (ii).
    (b) Effective Date.--The Secretary of Housing and Urban Development 
shall issue notice to implement the amendments made by subsection (a) 
and such amendments shall take effect upon such issuance.
    SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS.
    Section 214(a)(7) of the Housing and Community Development Act of 
1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ``such alien'' and 
all that follows through the period at the end and inserting ``any 
citizen or national of the United States shall be entitled to a 
preference or priority in receiving financial assistance before any 
such alien who is otherwise eligible for assistance.''.
    SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD MEMBER 
      REQUIREMENT.
    Subsection (b) of section 2 of the United States Housing Act of 
1937 (42 U.S.C. 1437(b)) is amended--
        (1) in paragraph (1), by striking ``paragraph (2)'' and 
    inserting ``paragraphs (2) and (3)'';
        (2) by redesignating paragraph (3) as paragraph (4); and
        (3) by inserting after paragraph (2) the following new 
    paragraph:
        ``(3) Exception for certain jurisdictions.--
            ``(A) Exception.--A covered agency (as such term is defined 
        in subparagraph (C) of this paragraph) shall not be required to 
        include on the board of directors or a similar governing board 
        of such agency a member described in paragraph (1).
            ``(B) Advisory board requirement.--Each covered agency that 
        administers Federal housing assistance under section 8 (42 
        U.S.C. 1437f) that chooses not to include a member described in 
        paragraph (1) on the board of directors or a similar governing 
        board of the agency shall establish an advisory board of not 
        less than 6 residents of public housing or recipients of 
        assistance under section 8 (42 U.S.C. 1437f) to provide advice 
        and comment to the agency or other administering entity on 
        issues related to public housing and section 8. Such advisory 
        board shall meet not less than quarterly.
            ``(C) Covered agency or entity.--For purposes of this 
        paragraph, the term `covered agency' means a public housing 
        agency or such other entity that administers Federal housing 
        assistance for--
                ``(I) the Housing Authority of the county of Los 
            Angeles, California; or
                ``(ii) any of the States of Alaska, Iowa, and 
            Mississippi.''.

                        TITLE II--RURAL HOUSING

    SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN APPROVAL.
    Subsection (h) of section 502 of the Housing Act of 1949 (42 U.S.C. 
1472(h)) is amended by adding at the end the following new paragraph:
        ``(18) Delegation of approval.--The Secretary may delegate, in 
    part or in full, the Secretary's authority to approve and execute 
    binding Rural Housing Service loan guarantees pursuant to this 
    subsection to certain preferred lenders, in accordance with 
    standards established by the Secretary.''.
    SEC. 202. GUARANTEED UNDERWRITING USER FEE.
    Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is amended 
by adding at the end the following new subsection:
    ``(i) Guaranteed Underwriting User Fee.--
        ``(1) Authority; maximum amount.--The Secretary may assess and 
    collect a fee for a lender to access the automated underwriting 
    systems of the Department in connection with such lender's 
    participation in the single family loan program under this section 
    and only in an amount necessary to cover the costs of information 
    technology enhancements, improvements, maintenance, and development 
    for automated underwriting systems used in connection with the 
    single family loan program under this section, except that such fee 
    shall not exceed $50 per loan.
        ``(2) Crediting; availability.--Any amounts collected from such 
    fees shall be credited to the Rural Development Expense Account as 
    offsetting collections and shall remain available until expended, 
    in the amounts provided in appropriation Acts, solely for expenses 
    described in paragraph (1).''.

           TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS

    SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE INSURANCE 
      FOR CONDOMINIUMS.
    Section 203 of the National Housing Act (12 U.S.C. 1709) is amended 
by adding at the end the following new subsection:
    ``(y) Requirements for Mortgages for Condominiums.--
        ``(1) Project recertification requirements.--Notwithstanding 
    any other law, regulation, or guideline of the Secretary, including 
    chapter 2.4 of the Condominium Project Approval and Processing 
    Guide of the FHA, the Secretary shall streamline the project 
    certification requirements that are applicable to the insurance 
    under this section for mortgages for condominium projects so that 
    recertifications are substantially less burdensome than 
    certifications. The Secretary shall consider lengthening the time 
    between certifications for approved properties, and allowing 
    updating of information rather than resubmission.
        ``(2) Commercial space requirements.--Notwithstanding any other 
    law, regulation, or guideline of the Secretary, including chapter 
    2.1.3 of the Condominium Project Approval and Processing Guide of 
    the FHA, in providing for exceptions to the requirement for the 
    insurance of a mortgage on a condominium property under this 
    section regarding the percentage of the floor space of a 
    condominium property that may be used for nonresidential or 
    commercial purposes, the Secretary shall provide that--
            ``(A) any request for such an exception and the 
        determination of the disposition of such request may be made, 
        at the option of the requester, under the direct endorsement 
        lender review and approval process or under the HUD review and 
        approval process through the applicable field office of the 
        Department; and
            ``(B) in determining whether to allow such an exception for 
        a condominium property, factors relating to the economy for the 
        locality in which such project is located or specific to 
        project, including the total number of family units in the 
        project, shall be considered.
    Not later than the expiration of the 90-day period beginning on the 
    date of the enactment of this paragraph, the Secretary shall issue 
    regulations to implement this paragraph, which shall include any 
    standards, training requirements, and remedies and penalties that 
    the Secretary considers appropriate.
        ``(3) Transfer fees.--Notwithstanding any other law, 
    regulation, or guideline of the Secretary, including chapter 1.8.8 
    of the Condominium Project Approval and Processing Guide of the FHA 
    and section 203.41 of the Secretary's regulations (24 CFR 203.41), 
    existing standards of the Federal Housing Finance Agency relating 
    to encumbrances under private transfer fee covenants shall apply to 
    the insurance of mortgages by the Secretary under this section to 
    the same extent and in the same manner that such standards apply to 
    the purchasing, investing in, and otherwise dealing in mortgages by 
    the Federal National Mortgage Association and the Federal Home Loan 
    Mortgage Corporation. If the provisions of part 1228 of the 
    Director of the Federal Housing Finance Agency's regulations (12 
    CFR part 1228) are amended or otherwise changed after the date of 
    the enactment of this paragraph, the Secretary of Housing and Urban 
    Development shall adopt any such amendments or changes for purposes 
    of this paragraph, unless the Secretary causes to be published in 
    the Federal Register a notice explaining why the Secretary will 
    disregard such amendments or changes within 90 days after the 
    effective date of such amendments or changes.
        ``(4) Owner-occupancy requirement.--
            ``(A) Establishment of percentage requirement.--Not later 
        than the expiration of the 90-day period beginning on the date 
        of the enactment of this paragraph, the Secretary shall, by 
        rule, notice, or mortgagee letter, issue guidance regarding the 
        percentage of units that must be occupied by the owners as a 
        principal residence or a secondary residence (as such terms are 
        defined by the Secretary), or must have been sold to owners who 
        intend to meet such occupancy requirements, including 
        justifications for the percentage requirements, in order for a 
        condominium project to be acceptable to the Secretary for 
        insurance under this section of a mortgage within such 
        condominium property.
            ``(B) Failure to act.--If the Secretary fails to issue the 
        guidance required under subparagraph (A) before the expiration 
        of the 90-day period specified in such clause, the following 
        provisions shall apply:
                ``(i) 35 percent requirement.--In order for a 
            condominium project to be acceptable to the Secretary for 
            insurance under this section, at least 35 percent of all 
            family units (including units not covered by FHA-insured 
            mortgages) must be occupied by the owners as a principal 
            residence or a secondary residence (as such terms are 
            defined by the Secretary), or must have been sold to owners 
            who intend to meet such occupancy requirement.
                ``(ii) Other considerations.--The Secretary may 
            increase the percentage applicable pursuant to clause (i) 
            to a condominium project on a project-by-project or 
            regional basis, and in determining such percentage for a 
            project shall consider factors relating to the economy for 
            the locality in which such project is located or specific 
            to project, including the total number of family units in 
            the project.''.

      TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS

    SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF CARE 
      PROGRAM.
    (a) Definition.--Subtitle C of the McKinney-Vento Homeless 
Assistance Act is amended--
        (1) by redesignating sections 432 and 433 (42 U.S.C. 11387, 
    11388) as sections 433 and 434, respectively; and
        (2) by inserting after section 431 (42 U.S.C. 11386e) the 
    following new section:
    ``SEC. 432. GEOGRAPHIC AREAS.
    ``(a) Requirement to Define.--For purposes of this subtitle, the 
term `geographic area' shall have such meaning as the Secretary shall 
by notice provide.
    ``(b) Issuance of Notice.--Not later than the expiration of the 90-
day period beginning on the date of the enactment of the Housing 
Opportunity Through Modernization Act of 2016, the Secretary shall 
issue a notice setting forth the definition required by subsection 
(a).''.
    (b) Clerical Amendment.--The table of contents in section 101(b) of 
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 note) is 
amended by striking the items relating to sections 432 and 433 and 
inserting the following new items:

``Sec. 432. Geographic areas.
``Sec. 433. Regulations.
``Sec. 434. Reports to Congress.''.
    SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL 
      REDEVELOPMENT AUTHORITIES IN EMERGENCY SOLUTIONS GRANTS.
    Section 414(c) of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11373(c)) is amended--
        (1) in the subsection heading, by inserting ``, Public Housing 
    Agencies, and Local Redevelopment Authorities'' after 
    ``Organizations''; and
        (2) in the first sentence, by inserting before the period at 
    the end the following: ``, to public housing agencies (as defined 
    under section 3(b)(6) of the United States Housing Act of 1937), or 
    to local redevelopment authorities (as defined under State law)''.
    SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE DEPARTMENT 
      OF HOUSING AND URBAN DEVELOPMENT.
    (a) Transfer of Position to Office of the Secretary.--Section 4 of 
the Department of Housing and Urban Development Act (42 U.S.C. 3533) is 
amended by adding at the end the following new subsection:
    ``(h) Special Assistant for Veterans Affairs.--
        ``(1) Position.--There shall be in the Office of the Secretary 
    a Special Assistant for Veterans Affairs, who shall report directly 
    to the Secretary.
        ``(2) Appointment.--The Special Assistant for Veterans Affairs 
    shall be appointed based solely on merit and shall be covered under 
    the provisions of title 5, United States Code, governing 
    appointments in the competitive service.
        ``(3) Responsibilities.--The Special Assistant for Veterans 
    Affairs shall be responsible for--
            ``(A) ensuring veterans have fair access to housing and 
        homeless assistance under each program of the Department 
        providing either such assistance;
            ``(B) coordinating all programs and activities of the 
        Department relating to veterans;
            ``(C) serving as a liaison for the Department with the 
        Department of Veterans Affairs, including establishing and 
        maintaining relationships with the Secretary of Veterans 
        Affairs;
            ``(D) serving as a liaison for the Department, and 
        establishing and maintaining relationships with the United 
        States Interagency Council on Homelessness and officials of 
        State, local, regional, and nongovernmental organizations 
        concerned with veterans;
            ``(E) providing information and advice regarding--
                ``(i) sponsoring housing projects for veterans assisted 
            under programs administered by the Department; or
                ``(ii) assisting veterans in obtaining housing or 
            homeless assistance under programs administered by the 
            Department;
            ``(F) coordinating with the Secretary of Housing and Urban 
        Development and the Secretary of Veterans Affairs in carrying 
        out section 404 of the Housing Opportunity Through 
        Modernization Act of 2016;
            ``(G) collaborating with the Department of Veterans Affairs 
        on making joint recommendations to the Congress, the Secretary 
        of Housing and Urban Development, and the Secretary of Veterans 
        Affairs on how to better coordinate and improve services to 
        veterans under both Department of Housing and Urban Development 
        and Department of Veteran Affairs veterans housing programs, 
        including ways to improve the Independent Living Program of the 
        Department of Veteran Affairs; and
            ``(H) carrying out such other duties as may be assigned to 
        the Special Assistant by the Secretary or by law.''.
    (b) Transfer of Position in Office of Deputy Assistant Secretary 
for Special Needs.--On the date that the initial Special Assistant for 
Veterans Affairs is appointed pursuant to section 4(h)(2) of the 
Department of Housing and Urban Development Act, as added by subsection 
(a) of this section, the position of Special Assistant for Veterans 
Programs in the Office of the Deputy Assistant Secretary for Special 
Needs of the Department of Housing and Urban Development shall be 
terminated.
    SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESSNESS.
    (a) In General.--The Secretary of Housing and Urban Development and 
the Secretary of Veterans Affairs, in coordination with the United 
States Interagency Council on Homelessness, shall submit annually to 
the Committees of the Congress specified in subsection (b), together 
with the annual reports required by such Secretaries under section 
203(c)(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11313(c)(1)), a supplemental report that includes the following 
information with respect to the preceding year:
        (1) The same information, for such preceding year, that was 
    included with respect to 2010 in the report by the Secretary of 
    Housing and Urban Development and the Secretary of Veterans Affairs 
    entitled ``Veterans Homelessness: A Supplemental Report to the 2010 
    Annual Homeless Assessment Report to Congress''.
        (2) Information regarding the activities of the Department of 
    Housing and Urban Development relating to veterans during such 
    preceding year, as follows:
            (A) The number of veterans provided assistance under the 
        housing choice voucher program for Veterans Affairs supported 
        housing under section 8(o)(19) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f(o)(19)), the socioeconomic 
        characteristics of such homeless veterans, and the number, 
        types, and locations of entities contracted under such section 
        to administer the vouchers.
            (B) A summary description of the special considerations 
        made for veterans under public housing agency plans submitted 
        pursuant to section 5A of the United States Housing Act of 1937 
        (42 U.S.C. 1437c-1) and under comprehensive housing 
        affordability strategies submitted pursuant to section 105 of 
        the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12705).
            (C) A description of the activities of the Special 
        Assistant for Veterans Affairs of the Department of Housing and 
        Urban Development.
            (D) A description of the efforts of the Department of 
        Housing and Urban Development and the other members of the 
        United States Interagency Council on Homelessness to coordinate 
        the delivery of housing and services to veterans.
            (E) The cost to the Department of Housing and Urban 
        Development of administering the programs and activities 
        relating to veterans.
            (F) Any other information that the Secretary of Housing and 
        Urban Development and the Secretary of Veterans Affairs 
        consider relevant in assessing the programs and activities of 
        the Department of Housing and Urban Development relating to 
        veterans.
    (b) Committees.--The Committees of the Congress specified in this 
subsection are as follows:
        (1) The Committee on Banking, Housing, and Urban Affairs of the 
    Senate.
        (2) The Committee on Veterans' Affairs of the Senate.
        (3) The Committee on Appropriations of the Senate.
        (4) The Committee on Financial Services of the House of 
    Representatives.
        (5) The Committee on Veterans' Affairs of the House of 
    Representatives.
        (6) The Committee on Appropriations of the House of 
    Representatives.
    SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM OF CARE 
      PROGRAM REGULATIONS.
    Not later than the expiration of the 30-day period beginning on the 
date of the enactment of this Act, the Secretary of Housing and Urban 
Development shall re-open the period for public comment regarding the 
Secretary's interim rule entitled ``Homeless Emergency Assistance and 
Rapid Transition to Housing: Continuum of Care Program'', published in 
the Federal Register on July 31, 2012 (77 Fed. Reg. 45422; Docket No. 
FR-5476-I-01). Upon re-opening, such comment period shall remain open 
for a period of not fewer than 60 days.

                         TITLE V--MISCELLANEOUS

    SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM IN 
      CERTAIN FRAUD AND ABUSE PREVENTION MEASURES.
    The Disaster Housing Assistance Program administered by the 
Department of Housing and Urban Development shall be considered a 
``program of the Department of Housing and Urban Development'' under 
section 904 of the Stewart B. McKinney Homeless Assistance Amendments 
Act of 1988 (42 U.S.C. 3544) for the purpose of income verifications.
    SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP 
      HOMEOWNERSHIP OPPORTUNITY PROGRAM.
    Section 11 of the Housing Opportunity Program Extension Act of 1996 
(42 U.S.C. 12805 note) is amended by inserting after subsection (f) the 
following new subsection:
    ``(g) Energy Efficiency Requirements.--The Secretary may not 
require any dwelling developed using amounts from a grant made under 
this section to meet any energy efficiency standards other than the 
standards applicable at such time pursuant to section 109 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) to 
housing specified in subsection (a) of such section.''.
    SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED 
      INTEROPERABILITY.
    (a) Data Exchange Standardization.--Title I of the United States 
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at 
the end the following new section:
  ``SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.
    ``(a) Designation.--The Secretary shall, in consultation with an 
interagency work group established by the Office of Management and 
Budget, and considering State government perspectives, designate data 
exchange standards to govern, under this Act--
        ``(1) necessary categories of information that State agencies 
    operating related programs are required under applicable law to 
    electronically exchange with another State agency; and
        ``(2) Federal reporting and data exchange required under 
    applicable law.
    ``(b) Requirements.--The data exchange standards required by 
subsection (a) shall, to the maximum extent practicable--
        ``(1) incorporate a widely accepted, nonproprietary, 
    searchable, computer-readable format, such as the eXtensible Markup 
    Language;
        ``(2) contain interoperable standards developed and maintained 
    by intergovernmental partnerships, such as the National Information 
    Exchange Model;
        ``(3) incorporate interoperable standards developed and 
    maintained by Federal entities with authority over contracting and 
    financial assistance;
        ``(4) be consistent with and implement applicable accounting 
    principles;
        ``(5) be implemented in a manner that is cost- effective and 
    improves program efficiency and effectiveness; and
        ``(6) be capable of being continually upgraded as necessary.
    ``(c) Rules of Construction.--Nothing in this section requires a 
change to existing data exchange standards for Federal reporting found 
to be effective and efficient.''.
    (b) Applicability.--
        (1) In general.--Not later than 2 years after the date of the 
    enactment of this Act, the Secretary of Housing and Urban 
    Development shall issue a proposed rule to carry out the amendments 
    made by subsection (a).
        (2) Requirements.--The rule shall--
            (A) identify federally required data exchanges;
            (B) include specification and timing of exchanges to be 
        standardized;
            (C) address the factors used in determining whether and 
        when to standardize data exchanges;
            (D) specify State implementation options; and
            (E) describe future milestones.

                           TITLE VI--REPORTS

    SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC EMPOWERMENT 
      STRATEGIES.
    The Secretary of Housing and Urban Development, in consultation 
with the Secretary of Labor, shall submit a report to the Congress 
annually that describes--
        (1) any interagency strategies of such Departments that are 
    designed to improve family economic empowerment by linking housing 
    assistance with essential supportive services, such as employment 
    counseling and training, financial education and growth, childcare, 
    transportation, meals, youth recreational activities, and other 
    supportive services; and
        (2) any actions taken in the preceding year to carry out such 
    strategies and the extent of progress achieved by such actions.

         TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

    SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT HOMELESSNESS 
      FOR INDIVIDUALS LIVING WITH HIV OR AIDS.
    (a) In General.--Subsection (c) of section 854 of the AIDS Housing 
Opportunity Act (42 U.S.C. 12903(c)) is amended by--
        (1) redesignating paragraph (3) as paragraph (5); and
        (2) striking paragraphs (1) and (2) and inserting the 
    following:
        ``(1) Allocation of resources.--
            ``(A) Allocation formula.--The Secretary shall allocate 90 
        percent of the amount approved in appropriations Acts under 
        section 863 among States and metropolitan statistical areas as 
        follows:
                ``(I) 75 percent of such amounts among--

                    ``(I) cities that are the most populous unit of 
                general local government in a metropolitan statistical 
                area with a population greater than 500,000, as 
                determined on the basis of the most recent census, and 
                with more than 2,000 individuals living with HIV or 
                AIDS, using the data specified in subparagraph (B); and
                    ``(II) States with more than 2,000 individuals 
                living with HIV or AIDS outside of metropolitan 
                statistical areas.

                ``(ii) 25 percent of such amounts among States and 
            metropolitan statistical areas based on the method 
            described in subparagraph (C).
            ``(B) Source of data.--For purposes of allocating amounts 
        under this paragraph for any fiscal year, the number of 
        individuals living with HIV or AIDS shall be the number of such 
        individuals as confirmed by the Director of the Centers for 
        Disease Control and Prevention, as of December 31 of the most 
        recent calendar year for which such data is available.
            ``(C) Allocation under subparagraph (A)(ii).--For purposes 
        of allocating amounts under subparagraph (A)(ii), the Secretary 
        shall develop a method that accounts for--
                ``(I) differences in housing costs among States and 
            metropolitan statistical areas based on the fair market 
            rental established pursuant to section 8(c) of the United 
            States Housing Act of 1937 (42 U.S.C. 1437f(c)) or another 
            methodology established by the Secretary through 
            regulation; and
                ``(ii) differences in poverty rates among States and 
            metropolitan statistical areas based on area poverty 
            indexes or another methodology established by the Secretary 
            through regulation.
        ``(2) Maintaining grants.--
            ``(A) Continued eligibility of fiscal year 2016 grantees.--
        A grantee that received an allocation in fiscal year 2016 shall 
        continue to be eligible for allocations under paragraph (1) in 
        subsequent fiscal years, subject to--
                ``(I) the amounts available from appropriations Acts 
            under section 863;
                ``(ii) approval by the Secretary of the most recent 
            comprehensive housing affordability strategy for the 
            grantee approved under section 105; and
                ``(iii) the requirements of subparagraph (C).
            ``(B) Adjustments.--Allocations to grantees described in 
        subparagraph (A) shall be adjusted annually based on the 
        administrative provisions included in fiscal year 2016 
        appropriations Acts.
            ``(C) Redetermination of continued eligibility.--The 
        Secretary shall redetermine the continued eligibility of a 
        grantee that received an allocation in fiscal year 2016 at 
        least once during the 10-year period following fiscal year 
        2016.
            ``(D) Adjustment to grants.--For each of fiscal years 2017, 
        2018, 2019, 2020, and 2021, the Secretary shall ensure that a 
        grantee that received an allocation in the prior fiscal year 
        does not receive an allocation that is 5 percent less than or 
        10 percent greater than the amount allocated to such grantee in 
        the preceding fiscal year.
        ``(3) Alternative grantees.--
            ``(A) Requirements.--The Secretary may award funds reserved 
        for a grantee eligible under paragraph (1) to an alternative 
        grantee if--
                ``(I) the grantee submits to the Secretary a written 
            agreement between the grantee and the alternative grantee 
            that describes how the alternative grantee will take 
            actions consistent with the applicable comprehensive 
            housing affordability strategy approved under section 105 
            of this Act;
                ``(ii) the Secretary approves the written agreement 
            described in clause (I) and agrees to award funds to the 
            alternative grantee; and
                ``(iii) the written agreement does not exceed a term of 
            10 years.
            ``(B) Renewal.--An agreement approved pursuant to 
        subparagraph (A) may be renewed by the parties with the 
        approval of the Secretary.
            ``(C) Definition.--In this paragraph, the term `alternative 
        grantee' means a public housing agency (as defined in section 
        3(b) of the United States Housing Act of 1937 (42 U.S.C. 
        1437a(b))), a unified funding agency (as defined in section 401 
        of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11360)), a State, a unit of general local government, or an 
        instrumentality of State or local government.
        ``(4) Reallocations.--If a State or metropolitan statistical 
    area declines an allocation under paragraph (1)(A), or the 
    Secretary determines, in accordance with criteria specified in 
    regulation, that a State or metropolitan statistical area that is 
    eligible for an allocation under paragraph (1)(A) is unable to 
    properly administer such allocation, the Secretary shall reallocate 
    any funds reserved for such State or metropolitan statistical area 
    as follows:
            ``(A) For funds reserved for a State--
                ``(I) to eligible metropolitan statistical areas within 
            the State on a pro rata basis; or
                ``(ii) if there is no eligible metropolitan statistical 
            areas within a State, to metropolitan cities and urban 
            counties within the State that are eligible for grant under 
            section 106 of the Housing and Community Development Act of 
            1974 (42 U.S.C. 5306), on a pro rata basis.
            ``(B) For funds reserved for a metropolitan statistical 
        area, to the State in which the metropolitan statistical area 
        is located.
            ``(C) If the Secretary is unable to make a reallocation 
        under subparagraph (A) or (B), the Secretary shall make such 
        funds available on a pro rata basis under the formula in 
        paragraph (1)(A).''.
    (b) Amendment to Definitions.--Section 853 of the AIDS Housing 
Opportunity Act (42 U.S.C. 12902) is amended--
        (1) in paragraph (1), by inserting ``or `AIDS''' before 
    ``means''; and
        (2) by inserting at the end the following new paragraphs:
        ``(15) The term `HIV' means infection with the human 
    immunodeficiency virus.
        ``(16) The term `individuals living with HIV or AIDS' means, 
    with respect to the counting of cases in a geographic area during a 
    period of time, the sum of--
            ``(A) the number of living non-AIDS cases of HIV in the 
        area; and
            ``(B) the number of living cases of AIDS in the area.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```