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. 
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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 
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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 
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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 
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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, 
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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 
H. R. 3700—7 

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 
H. R. 3700—8 

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. 
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‘‘(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’’; 
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(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. 
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(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 OVERINCOME 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. 
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‘‘(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 
H. R. 3700—13 

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, 
H. R. 3700—14 

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. 
H. R. 3700—15 

‘‘(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. 
H. R. 3700—16 

‘‘(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. 
H. R. 3700—17 

‘‘(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 
H. R. 3700—18 

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 sitebased 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 
H. R. 3700—19 

(C) by striking the fifth and sixth sentences and 

inserting the following: ‘‘A public housing agency may 

establish and utilize procedures for owner-maintained sitebased 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 
H. R. 3700—20 

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.— 
H. R. 3700—21 

‘‘(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.’’. 
H. R. 3700—22 

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— 
H. R. 3700—23 

(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 tenantpaid 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 
H. R. 3700—24 

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).’’. 
H. R. 3700—25 

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 
H. R. 3700—26 

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 FHAinsured 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: 
H. R. 3700—27 

‘‘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; 
H. R. 3700—28 

‘‘(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: 
H. R. 3700—29 

(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 reopening, such comment period shall remain open for a period of 

not fewer than 60 days. 
H. R. 3700—30 

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. 
H. R. 3700—31 

‘‘(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 
H. R. 3700—32 

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.— 
H. R. 3700—33 

‘‘(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. 
H. R. 3700—34 

‘‘(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.