IIB 

114TH CONGRESS 

2D SESSION H. R. 3700 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 3, 2016 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To provide housing opportunities in the United States 

through modernization of various housing programs, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Housing Opportunity Through Modernization Act of 

4 2016’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 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 

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Sec. 501. Inclusion of Disaster Housing Assistance Program in certain fraud 

and abuse prevention measures. 

Sec. 502. Energy efficiency requirements under Self-Help Homeownership Opportunity program. 

Sec. 503. Data exchange standardization for improved interoperability. 

TITLE VI—REPORTS 

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

TITLE VII—HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS 

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

1 TITLE I—SECTION 8 RENTAL AS2 SISTANCE AND PUBLIC HOUS3 ING 

4 SEC. 101. INSPECTION OF DWELLING UNITS. 

5 (a) IN GENERAL.—Section 8(o)(8) of the United 

6 States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is 

7 amended— 

8 (1) by striking subparagraph (A) and inserting 

9 the following new subparagraph: 

10 ‘‘(A) INITIAL INSPECTION.— 

11 ‘‘(i) IN GENERAL.—For each dwelling 

12 unit for which a housing assistance pay13 ment contract is established under this 

14 subsection, the public housing agency (or 

15 other entity pursuant to paragraph (11)) 

16 shall inspect the unit before any assistance 

17 payment is made to determine whether the 

18 dwelling unit meets the housing quality 

19 standards under subparagraph (B), except 

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1 as provided in clause (ii) or (iii) of this 

2 subparagraph. 

3 ‘‘(ii) CORRECTION OF NON-LIFE4 THREATENING CONDITIONS.—In the case 

5 of any dwelling unit that is determined, 

6 pursuant to an inspection under clause (i), 

7 not to meet the housing quality standards 

8 under subparagraph (B), assistance pay9 ments may be made for the unit notwith10 standing subparagraph (C) if failure to 

11 meet such standards is a result only of 

12 non-life-threatening conditions, as such 

13 conditions are established by the Secretary. 

14 A public housing agency making assistance 

15 payments pursuant to this clause for a 

16 dwelling unit shall, 30 days after the be17 ginning of the period for which such pay18 ments are made, withhold any assistance 

19 payments for the unit if any deficiency re20 sulting in noncompliance with the housing 

21 quality standards has not been corrected 

22 by such time. The public housing agency 

23 shall recommence assistance payments 

24 when such deficiency has been corrected, 

25 and may use any payments withheld to 

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1 make assistance payments relating to the 

2 period during which payments were with3 held. 

4 ‘‘(iii) USE OF ALTERNATIVE INSPEC5 TION METHOD FOR INTERIM PERIOD.—In 

6 the case of any property that within the 

7 previous 24 months has met the require8 ments of an inspection that qualifies as an 

9 alternative inspection method pursuant to 

10 subparagraph (E), a public housing agency 

11 may authorize occupancy before the inspec12 tion under clause (i) has been completed, 

13 and may make assistance payments retro14 active to the beginning of the lease term 

15 after the unit has been determined pursu16 ant to an inspection under clause (i) to 

17 meet the housing quality standards under 

18 subparagraph (B). This clause may not be 

19 construed to exempt any dwelling unit 

20 from compliance with the requirements of 

21 subparagraph (D).’’; 

22 (2) by redesignating subparagraph (G) as sub23 paragraph (H); and 

24 (3) by inserting after subparagraph (F) the fol25 lowing new subparagraph: 

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1 ‘‘(G) ENFORCEMENT OF HOUSING QUALITY

2 STANDARDS.— 

3 ‘‘(i) DETERMINATION OF NONCOMPLI4 ANCE.—A dwelling unit that is covered by 

5 a housing assistance payments contract 

6 under this subsection shall be considered, 

7 for purposes of subparagraphs (D) and 

8 (F), to be in noncompliance with the hous9 ing quality standards under subparagraph 

10 (B) if— 

11 ‘‘(I) the public housing agency or 

12 an inspector authorized by the State 

13 or unit of local government deter14 mines upon inspection of the unit that 

15 the unit fails to comply with such 

16 standards; 

17 ‘‘(II) the agency or inspector no18 tifies the owner of the unit in writing 

19 of such failure to comply; and 

20 ‘‘(III) the failure to comply is not 

21 corrected— 

22 ‘‘(aa) in the case of any 

23 such failure that is a result of 

24 life-threatening conditions, within 

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1 24 hours after such notice has 

2 been provided; and 

3 ‘‘(bb) in the case of any 

4 such failure that is a result of 

5 non-life-threatening conditions, 

6 within 30 days after such notice 

7 has been provided or such other 

8 reasonable longer period as the 

9 public housing agency may estab10 lish. 

11 ‘‘(ii) WITHHOLDING OF ASSISTANCE

12 AMOUNTS DURING CORRECTION.—The 

13 public housing agency may withhold assist14 ance amounts under this subsection with 

15 respect to a dwelling unit for which a no16 tice pursuant to clause (i)(II), of failure to 

17 comply with housing quality standards 

18 under subparagraph (B) as determined 

19 pursuant to an inspection conducted under 

20 subparagraph (D) or (F), has been pro21 vided. If the unit is brought into compli22 ance with such housing quality standards 

23 during the periods referred to in clause 

24 (i)(III), the public housing agency shall re25 commence assistance payments and may 

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1 use any amounts withheld during the cor2 rection period to make assistance payments 

3 relating to the period during which pay4 ments were withheld. 

5 ‘‘(iii) ABATEMENT OF ASSISTANCE

6 AMOUNTS.—The public housing agency 

7 shall abate all of the assistance amounts 

8 under this subsection with respect to a 

9 dwelling unit that is determined, pursuant 

10 to clause (i) of this subparagraph, to be in 

11 noncompliance with housing quality stand12 ards under subparagraph (B). Upon com13 pletion of repairs by the public housing 

14 agency or the owner sufficient so that the 

15 dwelling unit complies with such housing 

16 quality standards, the agency shall recom17 mence payments under the housing assist18 ance payments contract to the owner of the 

19 dwelling unit. 

20 ‘‘(iv) NOTIFICATION.—If a public 

21 housing agency providing assistance under 

22 this subsection abates rental assistance 

23 payments pursuant to clause (iii) with re24 spect to a dwelling unit, the agency shall, 

25 upon commencement of such abatement— 

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1 ‘‘(I) notify the tenant and the 

2 owner of the dwelling unit that— 

3 ‘‘(aa) such abatement has 

4 commenced; and 

5 ‘‘(bb) if the dwelling unit is 

6 not brought into compliance with 

7 housing quality standards within 

8 60 days after the effective date of 

9 the determination of noncompli10 ance under clause (i) or such rea11 sonable longer period as the 

12 agency may establish, the tenant 

13 will have to move; and 

14 ‘‘(II) issue the tenant the nec15 essary forms to allow the tenant to 

16 move to another dwelling unit and 

17 transfer the rental assistance to that 

18 unit. 

19 ‘‘(v) PROTECTION OF TENANTS.—An 

20 owner of a dwelling unit may not terminate 

21 the tenancy of any tenant because of the 

22 withholding or abatement of assistance 

23 pursuant to this subparagraph. During the 

24 period that assistance is abated pursuant 

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1 to this subparagraph, the tenant may ter2 minate the tenancy by notifying the owner. 

3 ‘‘(vi) TERMINATION OF LEASE OR AS4 SISTANCE PAYMENTS CONTRACT.—If as5 sistance amounts under this section for a 

6 dwelling unit are abated pursuant to clause 

7 (iii) and the owner does not correct the 

8 noncompliance within 60 days after the ef9 fective date of the determination of non10 compliance under clause (i), or such other 

11 reasonable longer period as the public 

12 housing agency may establish, the agency 

13 shall terminate the housing assistance pay14 ments contract for the dwelling unit. 

15 ‘‘(vii) RELOCATION.— 

16 ‘‘(I) LEASE OF NEW UNIT.—The 

17 agency shall provide the family resid18 ing in such a dwelling unit a period of 

19 90 days or such longer period as the 

20 public housing agency determines is 

21 reasonably necessary to lease a new 

22 unit, beginning upon termination of 

23 the contract, to lease a new residence 

24 with tenant-based rental assistance 

25 under this section. 

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1 ‘‘(II) AVAILABILITY OF PUBLIC

2 HOUSING UNITS.—If the family is un3 able to lease such a new residence 

4 during such period, the public housing 

5 agency shall, at the option of the fam6 ily, provide such family a preference 

7 for occupancy in a dwelling unit of 

8 public housing that is owned or oper9 ated by the agency that first becomes 

10 available for occupancy after the expi11 ration of such period. 

12 ‘‘(III) ASSISTANCE IN FINDING

13 UNIT.—The public housing agency 

14 may provide assistance to the family 

15 in finding a new residence, including 

16 use of up to two months of any assist17 ance amounts withheld or abated pur18 suant to clause (ii) or (iii), respec19 tively, for costs directly associated 

20 with relocation of the family to a new 

21 residence, which shall include security 

22 deposits as necessary and may include 

23 reimbursements for reasonable moving 

24 expenses incurred by the household, 

25 as established by the Secretary. The 

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1 agency may require that a family re2 ceiving assistance for a security de3 posit shall remit, to the extent of such 

4 assistance, the amount of any security 

5 deposit refunds made by the owner of 

6 the dwelling unit for which the lease 

7 was terminated. 

8 ‘‘(viii) TENANT-CAUSED DAMAGES.— 

9 If a public housing agency determines that 

10 any damage to a dwelling unit that results 

11 in a failure of the dwelling unit to comply 

12 with housing quality standards under sub13 paragraph (B), other than any damage re14 sulting from ordinary use, was caused by 

15 the tenant, any member of the tenant’s 

16 household, or any guest or other person 

17 under the tenant’s control, the agency may 

18 waive the applicability of this subpara19 graph, except that this clause shall not ex20 onerate a tenant from any liability other21 wise existing under applicable law for dam22 ages to the premises caused by such ten23 ant. 

24 ‘‘(ix) APPLICABILITY.—This subpara25 graph shall apply to any dwelling unit for 

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1 which a housing assistance payments con2 tract is entered into or renewed after the 

3 date of the effectiveness of the regulations 

4 implementing this subparagraph.’’. 

5 (b) EFFECTIVE DATE.—The Secretary of Housing 

6 and Urban Development shall issue notice or regulations 

7 to implement subsection (a) of this section and such sub8 section shall take effect upon such issuance. 

9 SEC. 102. INCOME REVIEWS. 

10 (a) INCOME REVIEWS FOR PUBLIC HOUSING AND

11 SECTION 8 PROGRAMS.—Section 3 of the United States 

12 Housing Act of 1937 (42 U.S.C. 1437a) is amended— 

13 (1) in subsection (a)— 

14 (A) in the second sentence of paragraph 

15 (1), by striking ‘‘at least annually’’ and insert16 ing ‘‘pursuant to paragraph (6)’’; and 

17 (B) by adding at the end the following new 

18 paragraphs: 

19 ‘‘(6) REVIEWS OF FAMILY INCOME.— 

20 ‘‘(A) FREQUENCY.—Reviews of family in21 come for purposes of this section shall be 

22 made— 

23 ‘‘(i) in the case of all families, upon 

24 the initial provision of housing assistance 

25 for the family; 

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1 ‘‘(ii) annually thereafter, except as 

2 provided in paragraph (1) with respect to 

3 fixed-income families; 

4 ‘‘(iii) upon the request of the family, 

5 at any time the income or deductions 

6 (under subsection (b)(5)) of the family 

7 change by an amount that is estimated to 

8 result in a decrease of 10 percent (or such 

9 lower amount as the Secretary may, by no10 tice, establish, or permit the public housing 

11 agency or owner to establish) or more in 

12 annual adjusted income; and 

13 ‘‘(iv) at any time the income or deduc14 tions (under subsection (b)(5)) of the fam15 ily change by an amount that is estimated 

16 to result in an increase of 10 percent or 

17 more in annual adjusted income, or such 

18 other amount as the Secretary may by no19 tice establish, except that any increase in 

20 the earned income of a family shall not be 

21 considered for purposes of this clause (ex22 cept that earned income may be considered 

23 if the increase corresponds to previous de24 creases under clause (iii)), except that a 

25 public housing agency or owner may elect 

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1 not to conduct such review in the last three 

2 months of a certification period. 

3 ‘‘(B) IN GENERAL.—Reviews of family in4 come for purposes of this section shall be sub5 ject to the provisions of section 904 of the 

6 Stewart B. McKinney Homeless Assistance 

7 Amendments Act of 1988 (42 U.S.C. 3544). 

8 ‘‘(7) CALCULATION OF INCOME.— 

9 ‘‘(A) USE OF CURRENT YEAR INCOME.—In 

10 determining family income for initial occupancy 

11 or provision of housing assistance pursuant to 

12 clause (i) of paragraph (6)(A) or pursuant to 

13 reviews pursuant to clause (iii) or (iv) of such 

14 paragraph, a public housing agency or owner 

15 shall use the income of the family as estimated 

16 by the agency or owner for the upcoming year. 

17 ‘‘(B) USE OF PRIOR YEAR INCOME.—In 

18 determining family income for annual reviews 

19 pursuant to paragraph (6)(A)(ii), a public hous20 ing agency or owner shall, except as otherwise 

21 provided in this paragraph and paragraph (1), 

22 use the income of the family as determined by 

23 the agency or owner for the preceding year, 

24 taking into consideration any redetermination 

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1 of income during such prior year pursuant to 

2 clause (iii) or (iv) of paragraph (6)(A). 

3 ‘‘(C) OTHER INCOME.—In determining the 

4 income for any family based on the prior year’s 

5 income, with respect to prior year calculations 

6 of income not subject to subparagraph (B), a 

7 public housing agency or owner may make other 

8 adjustments as it considers appropriate to re9 flect current income. 

10 ‘‘(D) SAFE HARBOR.—A public housing 

11 agency or owner may, to the extent such infor12 mation is available to the public housing agency 

13 or owner, determine the family’s income prior 

14 to the application of any deductions based on 

15 timely income determinations made for pur16 poses of other means-tested Federal public as17 sistance programs (including the program for 

18 block grants to States for temporary assistance 

19 for needy families under part A of title IV of 

20 the Social Security Act, a program for Medicaid 

21 assistance under a State plan approved under 

22 title XIX of the Social Security Act, and the 

23 supplemental nutrition assistance program (as 

24 such term is defined in section 3 of the Food 

25 and Nutrition Act of 2008 (7 U.S.C. 2012))). 

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1 The Secretary shall, in consultation with other 

2 appropriate Federal agencies, develop electronic 

3 procedures to enable public housing agencies 

4 and owners to have access to such benefit deter5 minations made by other means-tested Federal 

6 programs that the Secretary determines to have 

7 comparable reliability. Exchanges of such infor8 mation shall be subject to the same limitations 

9 and tenant protections provided under section 

10 904 of the Stewart B. McKinney Homeless As11 sistance Act Amendments of 1988 (42 U.S.C. 

12 3544) with respect to information obtained 

13 under the requirements of section 303(i) of the 

14 Social Security Act (42 U.S.C. 503(i)). 

15 ‘‘(E) ELECTRONIC INCOME

16 VERIFICATION.—The Secretary shall develop a 

17 mechanism for disclosing information to a pub18 lic housing agency for the purpose of verifying 

19 the employment and income of individuals and 

20 families in accordance with section 453(j)(7)(E) 

21 of the Social Security Act (42 U.S.C. 

22 653(j)(7)(E)), and shall ensure public housing 

23 agencies have access to information contained 

24 in the ‘Do Not Pay’ system established by sec25 tion 5 of the Improper Payments Elimination 

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1 and Recovery Improvement Act of 2012 (Public 

2 Law 112–248; 126 Stat. 2392). 

3 ‘‘(F) PHA AND OWNER COMPLIANCE.—A 

4 public housing agency or owner may not be con5 sidered to fail to comply with this paragraph or 

6 paragraph (6) due solely to any de minimis er7 rors made by the agency or owner in calculating 

8 family incomes.’’; 

9 (2) by striking subsections (d) and (e); and 

10 (3) by redesignating subsection (f) as sub11 section (d). 

12 (b) CERTIFICATION REGARDING HARDSHIP EXCEP13 TION TO MINIMUM MONTHLY RENT.—Not later than the 

14 expiration of the 6-month period beginning on the date 

15 of the enactment of this Act, the Secretary of Housing 

16 and Urban Development shall submit to the Congress a 

17 certification that the hardship and tenant protection provi18 sions in clause (i) of section 3(a)(3)(B) of the United 

19 States Housing Act of 1937 (42 U.S.C. 

20 1437a(a)(3)(B)(i)) are being enforced at such time and 

21 that the Secretary will continue to provide due consider22 ation to the hardship circumstances of persons assisted 

23 under relevant programs of this Act. 

24 (c) INCOME; ADJUSTED INCOME.—Section 3(b) of 

25 the United States Housing Act of 1937 (42 U.S.C. 

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1 1437a(b)) is amended by striking paragraphs (4) and (5) 

2 and inserting the following new paragraphs: 

3 ‘‘(4) INCOME.—The term ‘income’ means, with 

4 respect to a family, income received from all sources 

5 by each member of the household who is 18 years 

6 of age or older or is the head of household or spouse 

7 of the head of the household, plus unearned income 

8 by or on behalf of each dependent who is less than 

9 18 years of age, as determined in accordance with 

10 criteria prescribed by the Secretary, in consultation 

11 with the Secretary of Agriculture, subject to the fol12 lowing requirements: 

13 ‘‘(A) INCLUDED AMOUNTS.—Such term in14 cludes recurring gifts and receipts, actual in15 come from assets, and profit or loss from a 

16 business. 

17 ‘‘(B) EXCLUDED AMOUNTS.—Such term 

18 does not include— 

19 ‘‘(i) any imputed return on assets, ex20 cept to the extent that net family assets 

21 exceed $50,000, except that such amount 

22 (as it may have been previously adjusted) 

23 shall be adjusted for inflation annually by 

24 the Secretary in accordance with an infla25 tionary index selected by the Secretary; 

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1 ‘‘(ii) any amounts that would be eligi2 ble for exclusion under section 1613(a)(7) 

3 of the Social Security Act (42 U.S.C. 

4 1382b(a)(7)); 

5 ‘‘(iii) deferred disability benefits from 

6 the Department of Veterans Affairs that 

7 are received in a lump sum amount or in 

8 prospective monthly amounts; 

9 ‘‘(iv) any expenses related to aid and 

10 attendance under section 1521 of title 38, 

11 United States Code, to veterans who are in 

12 need of regular aid and attendance; and 

13 ‘‘(v) exclusions from income as estab14 lished by the Secretary by regulation or 

15 notice, or any amount required by Federal 

16 law to be excluded from consideration as 

17 income. 

18 ‘‘(C) EARNED INCOME OF STUDENTS.— 

19 Such term does not include— 

20 ‘‘(i) earned income, up to an amount 

21 as the Secretary may by regulation estab22 lish, of any dependent earned during any 

23 period that such dependent is attending 

24 school or vocational training on a full-time 

25 basis; or 

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1 ‘‘(ii) any grant-in-aid or scholarship 

2 amounts related to such attendance used— 

3 ‘‘(I) for the cost of tuition or 

4 books; or 

5 ‘‘(II) in such amounts as the Sec6 retary may allow, for the cost of room 

7 and board. 

8 ‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 

9 Income shall be determined without regard to 

10 any amounts in or from, or any benefits from, 

11 any Coverdell education savings account under 

12 section 530 of the Internal Revenue Code of 

13 1986 or any qualified tuition program under 

14 section 529 of such Code. 

15 ‘‘(E) RECORDKEEPING.—The Secretary 

16 may not require a public housing agency or 

17 owner to maintain records of any amounts ex18 cluded from income pursuant to this subpara19 graph. 

20 ‘‘(5) ADJUSTED INCOME.—The term ‘adjusted 

21 income’ means, with respect to a family, the amount 

22 (as determined by the public housing agency or 

23 owner) of the income of the members of the family 

24 residing in a dwelling unit or the persons on a lease, 

25 after any deductions from income as follows: 

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1 ‘‘(A) ELDERLY AND DISABLED FAMI2 LIES.—$525 in the case of any family that is 

3 an elderly family or a disabled family. 

4 ‘‘(B) MINORS, STUDENTS, AND PERSONS

5 WITH DISABILITIES.—$480 for each member of 

6 the family residing in the household (other than 

7 the head of the household or his or her spouse) 

8 who is less than 18 years of age or is attending 

9 school or vocational training on a full-time 

10 basis, or who is 18 years of age or older and 

11 is a person with disabilities. 

12 ‘‘(C) CHILD CARE.—Any reasonable child 

13 care expenses necessary to enable a member of 

14 the family to be employed or to further his or 

15 her education. 

16 ‘‘(D) HEALTH AND MEDICAL EXPENSES.— 

17 The amount, if any, by which 10 percent of an18 nual family income is exceeded by the sum of— 

19 ‘‘(i) in the case of any elderly or dis20 abled family, any unreimbursed health and 

21 medical care expenses; and 

22 ‘‘(ii) any unreimbursed reasonable at23 tendant care and auxiliary apparatus ex24 penses for each handicapped member of 

25 the family, if determined necessary by the 

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1 public housing agency or owner to enable 

2 any member of such family to be employed. 

3 The Secretary shall, by regulation, provide 

4 hardship exemptions to the requirements of this 

5 subparagraph and subparagraph (C) for im6 pacted families who demonstrate an inability to 

7 pay calculated rents because of financial hard8 ship. Such regulations shall include a require9 ment to notify tenants regarding any changes 

10 to the determination of adjusted income pursu11 ant to such subparagraphs based on the deter12 mination of the family’s claim of financial hard13 ship exemptions required by the preceding sen14 tence. Such regulations shall be promulgated in 

15 consultation with tenant organizations, industry 

16 participants, and the Secretary of Health and 

17 Human Services, with an adequate comment 

18 period provided for interested parties. 

19 ‘‘(E) PERMISSIVE DEDUCTIONS.—Such ad20 ditional deductions as a public housing agency 

21 may, at its discretion, establish, except that the 

22 Secretary shall establish procedures to ensure 

23 that such deductions do not materially increase 

24 Federal expenditures. 

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1 The Secretary shall annually calculate the amounts 

2 of the deductions under subparagraphs (A) and (B), 

3 as such amounts may have been previously cal4 culated, by applying an inflationary factor as the 

5 Secretary shall, by regulation, establish, except that 

6 the actual deduction determined for each year shall 

7 be established by rounding such amount to the next 

8 lowest multiple of $25.’’. 

9 (d) HOUSING CHOICE VOUCHER PROGRAM.—Section 

10 8(o) of the United States Housing Act of 1937 (42 U.S.C. 

11 1437f(o)) is amended— 

12 (1) in paragraph (1)(D), by inserting before the 

13 period at the end the following: ‘‘, except that a pub14 lic housing agency may establish a payment stand15 ard of not more than 120 percent of the fair market 

16 rent where necessary as a reasonable accommodation 

17 for a person with a disability, without approval of 

18 the Secretary. A public housing agency may use a 

19 payment standard that is greater than 120 percent 

20 of the fair market rent as a reasonable accommoda21 tion for a person with a disability, but only with the 

22 approval of the Secretary. In connection with the use 

23 of any increased payment standard established or 

24 approved pursuant to either of the preceding two 

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1 son with a disability, the Secretary may not estab2 lish additional requirements regarding the amount of 

3 adjusted income paid by such person for rent’’; and 

4 (2) in paragraph (5)— 

5 (A) in the paragraph heading, by striking 

6 ‘‘ANNUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 

7 (B) in subparagraph (A)— 

8 (i) by striking ‘‘the provisions of’’ and 

9 inserting ‘‘paragraphs (1), (6), and (7) of 

10 section 3(a) and to’’; and 

11 (ii) by striking ‘‘and shall be con12 ducted’’ and all that follows through the 

13 end of the subparagraph and inserting a 

14 period; and 

15 (C) in subparagraph (B), by striking the 

16 second sentence. 

17 (e) ENHANCED VOUCHER PROGRAM.—Section 

18 8(t)(1)(D) of the United States Housing Act of 1937 (42 

19 U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ 

20 each place such term appears and inserting ‘‘annual ad21 justed income’’. 

22 (f) PROJECT-BASED HOUSING.—Paragraph (3) of 

23 section 8(c) of the United States Housing Act of 1937 

24 (42 U.S.C. 1437f(c)(3)) is amended by striking the last 

25 sentence. 

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1 (g) IMPACT ON PUBLIC HOUSING REVENUES.— 

2 (1) ADJUSTMENTS TO OPERATING FORMULA.— 

3 If the Secretary of Housing and Urban Development 

4 determines that the application of subsections (a) 

5 through (e) of this section results in a material and 

6 disproportionate reduction in the rental income of 

7 certain public housing agencies during the first year 

8 in which such subsections are implemented, the Sec9 retary may make appropriate adjustments in the for10 mula income for such year of those agencies experi11 encing such a reduction. 

12 (2) HUD REPORTS ON REVENUE AND COST IM13 PACT.—In each of the first two years after the first 

14 year in which subsections (a) through (e) are imple15 mented, the Secretary of Housing and Urban Devel16 opment shall submit a report to Congress identifying 

17 and calculating the impact of changes made by such 

18 subsections and section 104 of this Act on the reve19 nues and costs of operating public housing units, the 

20 voucher program for rental assistance under section 

21 8 of the United States Housing Act of 1937, and 

22 the program under such section 8 for project-based 

23 rental assistance. If such report identifies a material 

24 reduction in the net income of public housing agen25 cies nationwide or a material increase in the costs of 

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1 funding the voucher program or the project-based 

2 assistance program, the Secretary shall include in 

3 such report recommendations for legislative changes 

4 to reduce or eliminate such a reduction. 

5 (h) EFFECTIVE DATE.—The Secretary of Housing 

6 and Urban Development shall issue notice or regulations 

7 to implement this section and this section shall take effect 

8 after such issuance, except that this section may only take 

9 effect upon the commencement of a calendar year. 

10 (i) STUDY ON IMPACT ON ELDERLY AND DISABLED

11 FAMILIES OF DECREASED DEDUCTIONS IN INCOME.— 

12 (1) STUDY.—The Secretary of Housing and 

13 Urban Development shall conduct a study to deter14 mine the impacts, on rents paid by elderly and dis15 abled individuals and families assisted under the sec16 tion 8 rental assistance and public housing programs 

17 under the United States Housing Act of 1937 (42 

18 U.S.C. 1437 et seq.), of any decreases in the 

19 amounts of any deductions from income (for pur20 poses of section 3(b) of such Act (42 U.S.C. 

21 1437a(b))), as compared to such deductions under 

22 such section 3(b) as in effect before the effectiveness 

23 of this section, resulting from the amendments made 

24 by this section. 

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1 (2) REPORT.—The Secretary shall submit to 

2 the Congress a report setting forth the results of the 

3 study conducted pursuant to paragraph (1) not later 

4 than the expiration of the 12-month period begin5 ning on the date of the enactment of this Act. 

6 (3) EFFECTIVE DATE.—Notwithstanding sub7 section (h) of this section, this subsection shall take 

8 effect on the date of the enactment of this Act. 

9 SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR 

10 OVER-INCOME FAMILIES. 

11 Subsection (a) of section 16 of the United States 

12 Housing Act of 1937 (42 U.S.C. 1437n(a)) is amended 

13 by adding at the end the following new paragraph: 

14 ‘‘(5) LIMITATIONS ON TENANCY FOR OVER-IN15 COME FAMILIES.— 

16 ‘‘(A) LIMITATIONS.—Except as provided in 

17 subparagraph (D), in the case of any family re18 siding in a dwelling unit of public housing 

19 whose income for the most recent two consecu20 tive years, as determined pursuant to income 

21 reviews conducted pursuant to section 3(a)(6), 

22 has exceeded the applicable income limitation 

23 under subparagraph (C), the public housing 

24 agency shall— 

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1 ‘‘(i) notwithstanding any other provi2 sion of this Act, charge such family as 

3 monthly rent for the unit occupied by such 

4 family an amount equal to the greater of— 

5 ‘‘(I) the applicable fair market 

6 rental established under section 8(c) 

7 for a dwelling unit in the same mar8 ket area of the same size; or 

9 ‘‘(II) the amount of the monthly 

10 subsidy provided under this Act for 

11 the dwelling unit, which shall include 

12 any amounts from the Operating 

13 Fund and Capital Fund under section 

14 9 used for the unit, as determined by 

15 the agency in accordance with regula16 tions that the Secretary shall issue to 

17 carry out this subclause; or 

18 ‘‘(ii) terminate the tenancy of such 

19 family in public housing not later than 6 

20 months after the income determination de21 scribed in subparagraph (A). 

22 ‘‘(B) NOTICE.—In the case of any family 

23 residing in a dwelling unit of public housing 

24 whose income for a year has exceeded the appli25 cable income limitation under subparagraph 

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1 (C), upon the conclusion of such year the public 

2 housing agency shall provide written notice to 

3 such family of the requirements under subpara4 graph (A). 

5 ‘‘(C) INCOME LIMITATION.—The income 

6 limitation under this subparagraph shall be 120 

7 percent of the median income for the area, as 

8 determined by the Secretary with adjustments 

9 for smaller and larger families, except that the 

10 Secretary may establish income limitations 

11 higher or lower than 120 percent of such me12 dian income on the basis of the Secretary’s 

13 findings that such variations are necessary be14 cause of prevailing levels of construction costs, 

15 or unusually high or low family incomes, va16 cancy rates, or rental costs. 

17 ‘‘(D) EXCEPTION.—Subparagraph (A) 

18 shall not apply to a family occupying a dwelling 

19 unit in public housing pursuant to paragraph 

20 (5) of section 3(a) (42 U.S.C. 1437a(a)(5)). 

21 ‘‘(E) REPORTS ON OVER-INCOME FAMILIES

22 AND WAITING LISTS.—The Secretary shall re23 quire that each public housing agency shall— 

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1 ‘‘(i) submit a report annually, in a 

2 format required by the Secretary, that 

3 specifies— 

4 ‘‘(I) the number of families resid5 ing, as of the end of the year for 

6 which the report is submitted, in pub7 lic housing administered by the agen8 cy who had incomes exceeding the ap9 plicable income limitation under sub10 paragraph (C); and 

11 ‘‘(II) the number of families, as 

12 of the end of such year, on the wait13 ing lists for admission to public hous14 ing projects of the agency; and 

15 ‘‘(ii) make the information reported 

16 pursuant to clause (i) publicly available.’’. 

17 SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE 

18 BASED ON ASSETS. 

19 Section 16 of the United States Housing Act of 1937 

20 (42 U.S.C. 1437n) is amended by inserting after sub21 section (d) the following new subsection: 

22 ‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS23 SETS.— 

24 ‘‘(1) LIMITATION ON ASSETS.—Subject to para25 graph (3) and notwithstanding any other provision 

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1 of this Act, a dwelling unit assisted under this Act 

2 may not be rented and assistance under this Act 

3 may not be provided, either initially or at each recer4 tification of family income, to any family— 

5 ‘‘(A) whose net family assets exceed 

6 $100,000, as such amount is adjusted annually 

7 by applying an inflationary factor as the Sec8 retary considers appropriate; or 

9 ‘‘(B) who has a present ownership interest 

10 in, a legal right to reside in, and the effective 

11 legal authority to sell, real property that is suit12 able for occupancy by the family as a residence, 

13 except that the prohibition under this subpara14 graph shall not apply to— 

15 ‘‘(i) any property for which the family 

16 is receiving assistance under subsection (y) 

17 or (o)(12) of section 8 of this Act; 

18 ‘‘(ii) any person that is a victim of do19 mestic violence; or 

20 ‘‘(iii) any family that is offering such 

21 property for sale. 

22 ‘‘(2) NET FAMILY ASSETS.— 

23 ‘‘(A) IN GENERAL.—For purposes of this 

24 subsection, the term ‘net family assets’ means, 

25 for all members of the household, the net cash 

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1 value of all assets after deducting reasonable 

2 costs that would be incurred in disposing of real 

3 property, savings, stocks, bonds, and other 

4 forms of capital investment. Such term does not 

5 include interests in Indian trust land, equity in 

6 property for which the family is receiving assist7 ance under subsection (y) or (o)(12) of section 

8 8, equity accounts in homeownership programs 

9 of the Department of Housing and Urban De10 velopment, or Family Self Sufficiency accounts. 

11 ‘‘(B) EXCLUSIONS.—Such term does not 

12 include— 

13 ‘‘(i) the value of personal property, ex14 cept for items of personal property of sig15 nificant value, as the Secretary may estab16 lish or the public housing agency may de17 termine; 

18 ‘‘(ii) the value of any retirement ac19 count; 

20 ‘‘(iii) real property for which the fam21 ily does not have the effective legal author22 ity necessary to sell such property; 

23 ‘‘(iv) any amounts recovered in any 

24 civil action or settlement based on a claim 

25 of malpractice, negligence, or other breach 

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1 of duty owed to a member of the family 

2 and arising out of law, that resulted in a 

3 member of the family being disabled; 

4 ‘‘(v) the value of any Coverdell edu5 cation savings account under section 530 

6 of the Internal Revenue Code of 1986 or 

7 any qualified tuition program under sec8 tion 529 of such Code; and 

9 ‘‘(vi) such other exclusions as the Sec10 retary may establish. 

11 ‘‘(C) TRUST FUNDS.—In cases in which a 

12 trust fund has been established and the trust is 

13 not revocable by, or under the control of, any 

14 member of the family or household, the value of 

15 the trust fund shall not be considered an asset 

16 of a family if the fund continues to be held in 

17 trust. Any income distributed from the trust 

18 fund shall be considered income for purposes of 

19 section 3(b) and any calculations of annual 

20 family income, except in the case of medical ex21 penses for a minor. 

22 ‘‘(3) SELF-CERTIFICATION.— 

23 ‘‘(A) NET FAMILY ASSETS.—A public 

24 housing agency or owner may determine the net 

25 assets of a family, for purposes of this section, 

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1 based on a certification by the family that the 

2 net assets of such family do not exceed 

3 $50,000, as such amount is adjusted annually 

4 by applying an inflationary factor as the Sec5 retary considers appropriate. 

6 ‘‘(B) NO CURRENT REAL PROPERTY OWN7 ERSHIP.—A public housing agency or owner 

8 may determine compliance with paragraph 

9 (1)(B) based on a certification by the family 

10 that such family does not have any current 

11 ownership interest in any real property at the 

12 time the agency or owner reviews the family’s 

13 income. 

14 ‘‘(C) STANDARDIZED FORMS.—The Sec15 retary may develop standardized forms for the 

16 certifications referred to in subparagraphs (A) 

17 and (B). 

18 ‘‘(4) COMPLIANCE FOR PUBLIC HOUSING

19 DWELLING UNITS.—When recertifying family income 

20 with respect to families residing in public housing 

21 dwelling units, a public housing agency may, in the 

22 discretion of the agency and only pursuant to a pol23 icy that is set forth in the public housing agency 

24 plan under section 5A for the agency, choose not to 

25 enforce the limitation under paragraph (1). 

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1 ‘‘(5) ENFORCEMENT.—When recertifying the 

2 income of a family residing in a dwelling unit as3 sisted under this Act, a public housing agency or 

4 owner may choose not to enforce the limitation 

5 under paragraph (1) or may establish exceptions to 

6 such limitation based on eligibility criteria, but only 

7 pursuant to a policy that is set forth in the public 

8 housing agency plan under section 5A for the agency 

9 or under a policy adopted by the owner. Eligibility 

10 criteria for establishing exceptions may provide for 

11 separate treatment based on family type and may be 

12 based on different factors, such as age, disability, in13 come, the ability of the family to find suitable alter14 native housing, and whether supportive services are 

15 being provided. 

16 ‘‘(6) AUTHORITY TO DELAY EVICTIONS.—In the 

17 case of a family residing in a dwelling unit assisted 

18 under this Act who does not comply with the limita19 tion under paragraph (1), the public housing agency 

20 or project owner may delay eviction or termination 

21 of the family based on such noncompliance for a pe22 riod of not more than 6 months. 

23 ‘‘(7) VERIFYING INCOME.— 

24 ‘‘(A) Beginning in fiscal year 2018, the 

25 Secretary shall require public housing agencies 

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1 to require each applicant for, or recipient of, 

2 benefits under this Act to provide authorization 

3 by the applicant or recipient (or by any other 

4 person whose income or resources are material 

5 to the determination of the eligibility of the ap6 plicant or recipient for such benefits) for the 

7 public housing agency to obtain (subject to the 

8 cost reimbursement requirements of section 

9 1115(a) of the Right to Financial Privacy Act) 

10 from any financial institution (within the mean11 ing of section 1101(1) of such Act) any finan12 cial record (within the meaning of section 

13 1101(2) of such Act) held by the institution 

14 with respect to the applicant or recipient (or 

15 any such other person) whenever the public 

16 housing agency determines the record is needed 

17 in connection with a determination with respect 

18 to such eligibility or the amount of such bene19 fits. 

20 ‘‘(B) Notwithstanding section 1104(a)(1) 

21 of the Right to Financial Privacy Act, an au22 thorization provided by an applicant or recipi23 ent (or any other person whose income or re24 sources are material to the determination of the 

25 eligibility of the applicant or recipient) pursuant 

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1 to subparagraph (A) of this paragraph shall re2 main effective until the earliest of— 

3 ‘‘(i) the rendering of a final adverse 

4 decision on the applicant’s application for 

5 eligibility for benefits under this Act; 

6 ‘‘(ii) the cessation of the recipient’s 

7 eligibility for benefits under this Act; or 

8 ‘‘(iii) the express revocation by the ap9 plicant or recipient (or such other person 

10 referred to in subparagraph (A)) of the au11 thorization, in a written notification to the 

12 Secretary. 

13 ‘‘(C)(i) An authorization obtained by the 

14 public housing agency pursuant to this para15 graph shall be considered to meet the require16 ments of the Right to Financial Privacy Act for 

17 purposes of section 1103(a) of such Act, and 

18 need not be furnished to the financial institu19 tion, notwithstanding section 1104(a) of such 

20 Act. 

21 ‘‘(ii) The certification requirements of sec22 tion 1103(b) of the Right to Financial Privacy 

23 Act shall not apply to requests by the public 

24 housing agency pursuant to an authorization 

25 provided under this clause. 

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1 ‘‘(iii) A request by the public housing 

2 agency pursuant to an authorization provided 

3 under this clause is deemed to meet the require4 ments of section 1104(a)(3) of the Right to Fi5 nancial Privacy Act and the flush language of 

6 section 1102 of such Act. 

7 ‘‘(iv) The public housing agency shall in8 form any person who provides authorization 

9 pursuant to this paragraph of the duration and 

10 scope of the authorization. 

11 ‘‘(D) If an applicant for, or recipient of, 

12 benefits under this Act (or any such other per13 son referred to in subparagraph (A)) refuses to 

14 provide, or revokes, any authorization made by 

15 the applicant or recipient for the public housing 

16 agency to obtain from any financial institution 

17 any financial record, the public housing agency 

18 may, on that basis, determine that the appli19 cant or recipient is ineligible for benefits under 

20 this title.’’. 

21 SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES. 

22 Paragraph (11) of section 8(o) of the United States 

23 Housing Act of 1937 (42 U.S.C. 1437f(o)(11)) is amend24 ed— 

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1 (1) by striking ‘‘(11) LEASING OF UNITS

2 OWNED BY PHA.—If’’ and inserting the following: 

3 ‘‘(11) LEASING OF UNITS OWNED BY PHA.— 

4 ‘‘(A) INSPECTIONS AND RENT DETERMINA5 TIONS.—If’’; and 

6 (2) by adding at the end the following new sub7 paragraph: 

8 ‘‘(B) UNITS OWNED BY PHA.—For pur9 poses of this subsection, the term ‘owned by a 

10 public housing agency’ means, with respect to a 

11 dwelling unit, that the dwelling unit is in a 

12 project that is owned by such agency, by an en13 tity wholly controlled by such agency, or by a 

14 limited liability company or limited partnership 

15 in which such agency (or an entity wholly con16 trolled by such agency) holds a controlling in17 terest in the managing member or general part18 ner. A dwelling unit shall not be deemed to be 

19 owned by a public housing agency for purposes 

20 of this subsection because the agency holds a 

21 fee interest as ground lessor in the property on 

22 which the unit is situated, holds a security in23 terest under a mortgage or deed of trust on the 

24 unit, or holds a non-controlling interest in an 

25 entity which owns the unit or in the managing 

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1 member or general partner of an entity which 

2 owns the unit.’’. 

3 SEC. 106. PHA PROJECT-BASED ASSISTANCE. 

4 (a) IN GENERAL.—Paragraph (13) of section 8(o) of 

5 the United States Housing Act of 1937 (42 U.S.C. 

6 1437f(o)(13)) is amended— 

7 (1) by striking ‘‘structure’’ each place such 

8 term appears and inserting ‘‘project’’; 

9 (2) by striking subparagraph (B) and inserting 

10 the following new subparagraph: 

11 ‘‘(B) PERCENTAGE LIMITATION.— 

12 ‘‘(i) IN GENERAL.—Subject to clause 

13 (ii), a public housing agency may use for 

14 project-based assistance under this para15 graph not more than 20 percent of the au16 thorized units for the agency. 

17 ‘‘(ii) EXCEPTION.—A public housing 

18 agency may use up to an additional 10 

19 percent of the authorized units for the 

20 agency for project-based assistance under 

21 this paragraph, to provide units that house 

22 individuals and families that meet the defi23 nition of homeless under section 103 of the 

24 McKinney-Vento Homeless Assistance Act 

25 (42 U.S.C. 11302), that house families 

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1 with veterans, that provide supportive 

2 housing to persons with disabilities or el3 derly persons, or that are located in areas 

4 where vouchers under this subsection are 

5 difficult to use, as specified in subpara6 graph (D)(ii)(II). Any units of project7 based assistance that are attached to units 

8 previously subject to federally required 

9 rent restrictions or receiving another type 

10 of long-term housing subsidy provided by 

11 the Secretary shall not count toward the 

12 percentage limitation under clause (i) of 

13 this subparagraph. The Secretary may, by 

14 regulation, establish additional categories 

15 for the exception under this clause.’’; 

16 (3) by striking subparagraph (D) and inserting 

17 the following new subparagraph: 

18 ‘‘(D) INCOME-MIXING REQUIREMENT.— 

19 ‘‘(i) IN GENERAL.—Except as pro20 vided in clause (ii), not more than the 

21 greater of 25 dwelling units or 25 percent 

22 of the dwelling units in any project may be 

23 assisted under a housing assistance pay24 ment contract for project-based assistance 

25 pursuant to this paragraph. For purposes 

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1 of this subparagraph, the term ‘project’ 

2 means a single building, multiple contig3 uous buildings, or multiple buildings on 

4 contiguous parcels of land. 

5 ‘‘(ii) EXCEPTIONS.— 

6 ‘‘(I) CERTAIN FAMILIES.—The 

7 limitation under clause (i) shall not 

8 apply to dwelling units assisted under 

9 a contract that are exclusively made 

10 available to elderly families or to 

11 households eligible for supportive serv12 ices that are made available to the as13 sisted residents of the project, accord14 ing to standards for such services the 

15 Secretary may establish. 

16 ‘‘(II) CERTAIN AREAS.—With re17 spect to areas in which tenant-based 

18 vouchers for assistance under this 

19 subsection are difficult to use, as de20 termined by the Secretary, and with 

21 respect to census tracts with a poverty 

22 rate of 20 percent or less, clause (i) 

23 shall be applied by substituting ‘40 

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1 retary may, by regulation, establish 

2 additional conditions. 

3 ‘‘(III) CERTAIN CONTRACTS.— 

4 The limitation under clause (i) shall 

5 not apply with respect to contracts or 

6 renewal of contracts under which a 

7 greater percentage of the dwelling 

8 units in a project were assisted under 

9 a housing assistance payment contract 

10 for project-based assistance pursuant 

11 to this paragraph on the date of the 

12 enactment of the Housing Oppor13 tunity Through Modernization Act of 

14 2016. 

15 ‘‘(IV) CERTAIN PROPERTIES.— 

16 Any units of project-based assistance 

17 under this paragraph that are at18 tached to units previously subject to 

19 federally required rent restrictions or 

20 receiving other project-based assist21 ance provided by the Secretary shall 

22 not count toward the percentage limi23 tation imposed by this subparagraph 

24 (D). 

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1 ‘‘(iii) ADDITIONAL MONITORING AND

2 OVERSIGHT REQUIREMENTS.—The Sec3 retary may establish additional require4 ments for monitoring and oversight of 

5 projects in which more than 40 percent of 

6 the dwelling units are assisted under a 

7 housing assistance payment contract for 

8 project-based assistance pursuant to this 

9 paragraph.’’; 

10 (4) by striking subparagraph (F) and inserting 

11 the following new subparagraph: 

12 ‘‘(F) CONTRACT TERM.— 

13 ‘‘(i) TERM.—A housing assistance 

14 payment contract pursuant to this para15 graph between a public housing agency 

16 and the owner of a project may have a 

17 term of up to 20 years, subject to— 

18 ‘‘(I) the availability of sufficient 

19 appropriated funds for the purpose of 

20 renewing expiring contracts for assist21 ance payments, as provided in appro22 priation Acts and in the agency’s an23 nual contributions contract with the 

24 Secretary, provided that in the event 

25 of insufficient appropriated funds, 

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1 payments due under contracts under 

2 this paragraph shall take priority if 

3 other cost-saving measures that do 

4 not require the termination of an ex5 isting contract are available to the 

6 agency; and 

7 ‘‘(II) compliance with the inspec8 tion requirements under paragraph 

9 (8), except that the agency shall not 

10 be required to make biennial inspec11 tions of each assisted unit in the de12 velopment. 

13 ‘‘(ii) ADDITION OF ELIGIBLE UNITS.— 

14 Subject to the limitations of subparagraphs 

15 (B) and (D), the agency and the owner 

16 may add eligible units within the same 

17 project to a housing assistance payments 

18 contract at any time during the term 

19 thereof without being subject to any addi20 tional competitive selection procedures. 

21 ‘‘(iii) HOUSING UNDER CONSTRUC22 TION OR RECENTLY CONSTRUCTED.—An 

23 agency may enter into a housing assistance 

24 payments contract with an owner for any 

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1 ing and is under construction or recently 

2 has been constructed whether or not the 

3 agency has executed an agreement to enter 

4 into a contract with the owner, provided 

5 that the owner demonstrates compliance 

6 with applicable requirements prior to exe7 cution of the housing assistance payments 

8 contract. This clause shall not subject a 

9 housing assistance payments contract for 

10 existing housing under this paragraph to 

11 such requirements or otherwise limit the 

12 extent to which a unit may be assisted as 

13 existing housing. 

14 ‘‘(iv) ADDITIONAL CONDITIONS.—The 

15 contract may specify additional conditions, 

16 including with respect to continuation, ter17 mination, or expiration, and shall specify 

18 that upon termination or expiration of the 

19 contract without extension, each assisted 

20 family may elect to use its assistance 

21 under this subsection to remain in the 

22 same project if its unit complies with the 

23 inspection requirements under paragraph 

24 (8), the rent for the unit is reasonable as 

25 required by paragraph (10)(A), and the 

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1 family pays its required share of the rent 

2 and the amount, if any, by which the unit 

3 rent (including the amount allowed for ten4 ant-based utilities) exceeds the applicable 

5 payment standard.’’; 

6 (5) in subparagraph (G), by striking ‘‘15 years’’ 

7 and inserting ‘‘20 years’’; 

8 (6) by striking subparagraph (I) and inserting 

9 the following new subparagraph: 

10 ‘‘(I) RENT ADJUSTMENTS.—A housing as11 sistance payments contract pursuant to this 

12 paragraph entered into after the date of the en13 actment of the Housing Opportunity Through 

14 Modernization Act of 2016 shall provide for an15 nual rent adjustments upon the request of the 

16 owner, except that— 

17 ‘‘(i) by agreement of the parties, a 

18 contract may allow a public housing agency 

19 to adjust the rent for covered units using 

20 an operating cost adjustment factor estab21 lished by the Secretary pursuant to section 

22 524(c) of the Multifamily Assisted Housing 

23 Reform and Affordability Act of 1997 

24 (which shall not result in a negative ad25 justment), in which case the contract may 

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1 require an additional adjustment, if re2 quested, up to the reasonable rent periodi3 cally during the term of the contract, and 

4 shall require such an adjustment, if re5 quested, upon extension pursuant to sub6 paragraph (G); 

7 ‘‘(ii) the adjusted rent shall not ex8 ceed the maximum rent permitted under 

9 subparagraph (H); 

10 ‘‘(iii) the contract may provide that 

11 the maximum rent permitted for a dwelling 

12 unit shall not be less than the initial rent 

13 for the dwelling unit under the initial 

14 housing assistance payments contract cov15 ering the units; and 

16 ‘‘(iv) the provisions of subsection 

17 (c)(2)(C) shall not apply.’’; 

18 (7) in subparagraph (J)— 

19 (A) in the first sentence— 

20 (i) by striking ‘‘shall’’ and inserting 

21 ‘‘may’’; and 

22 (ii) by inserting before the period the 

23 following: ‘‘or may permit owners to select 

24 applicants from site-based waiting lists as 

25 specified in this subparagraph’’; 

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1 (B) by striking the third sentence and in2 serting the following: ‘‘The agency or owner 

3 may establish preferences or criteria for selec4 tion for a unit assisted under this paragraph 

5 that are consistent with the public housing 

6 agency plan for the agency approved under sec7 tion 5A and that give preference to families 

8 who qualify for voluntary services, including 

9 disability-specific services, offered in conjunc10 tion with assisted units.’’; and 

11 (C) by striking the fifth and sixth sen12 tences and inserting the following: ‘‘A public 

13 housing agency may establish and utilize proce14 dures for owner-maintained site-based waiting 

15 lists, under which applicants may apply at, or 

16 otherwise designate to the public housing agen17 cy, the project or projects in which they seek to 

18 reside, except that all eligible applicants on the 

19 waiting list of an agency for assistance under 

20 this subsection shall be permitted to place their 

21 names on such separate list, subject to policies 

22 and procedures established by the Secretary. All 

23 such procedures shall comply with title VI of 

24 the Civil Rights Act of 1964, the Fair Housing 

25 Act, section 504 of the Rehabilitation Act of 

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1 1973, and other applicable civil rights laws. The 

2 owner or manager of a project assisted under 

3 this paragraph shall not admit any family to a 

4 dwelling unit assisted under a contract pursu5 ant to this paragraph other than a family re6 ferred by the public housing agency from its 

7 waiting list, or a family on a site-based waiting 

8 list that complies with the requirements of this 

9 subparagraph. A public housing agency shall 

10 disclose to each applicant all other options in 

11 the selection of a project in which to reside that 

12 are provided by the public housing agency and 

13 are available to the applicant.’’; 

14 (8) in subparagraph (M)(ii), by inserting before 

15 the period at the end the following: ‘‘relating to 

16 funding other than housing assistance payments’’; 

17 and 

18 (9) by adding at the end the following new sub19 paragraphs: 

20 ‘‘(N) STRUCTURE OWNED BY AGENCY.—A 

21 public housing agency engaged in an initiative 

22 to improve, develop, or replace a public housing 

23 property or site may attach assistance to an ex24 isting, newly constructed, or rehabilitated struc25 ture in which the agency has an ownership inmstockstill on DSK4VPTVN1PROD with BILLS

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1 terest or which the agency has control of with2 out following a competitive process, provided 

3 that the agency has notified the public of its in4 tent through its public housing agency plan and 

5 subject to the limitations and requirements of 

6 this paragraph. 

7 ‘‘(O) SPECIAL PURPOSE VOUCHERS.—A 

8 public housing agency that administers vouch9 ers authorized under subsection (o)(19) or (x) 

10 of this section may provide such assistance in 

11 accordance with the limitations and require12 ments of this paragraph, without additional re13 quirements for approval by the Secretary.’’. 

14 (b) EFFECTIVE DATE.—The Secretary of Housing 

15 and Urban Development shall issue notice or regulations 

16 to implement subsection (a) of this section and such sub17 section shall take effect upon such issuance. 

18 SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT. 

19 (a) IN GENERAL.—Paragraph (1) of section 8(c) of 

20 the United States Housing Act of 1937 (42 U.S.C. 

21 1437f(c)(1)) is amended— 

22 (1) by inserting ‘‘(A)’’ after the paragraph des23 ignation; 

24 (2) by striking the fourth, seventh, eighth, and 

25 ninth sentences; and 

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1 (3) by adding at the end the following: 

2 ‘‘(B) Fair market rentals for an area shall be pub3 lished not less than annually by the Secretary on the site 

4 of the Department on the World Wide Web and in any 

5 other manner specified by the Secretary. Notice that such 

6 fair market rentals are being published shall be published 

7 in the Federal Register, and such fair market rentals shall 

8 become effective no earlier than 30 days after the date 

9 of such publication. The Secretary shall establish a proce10 dure for public housing agencies and other interested par11 ties to comment on such fair market rentals and to re12 quest, within a time specified by the Secretary, reevalua13 tion of the fair market rentals in a jurisdiction before such 

14 rentals become effective. The Secretary shall cause to be 

15 published for comment in the Federal Register notices of 

16 proposed material changes in the methodology for esti17 mating fair market rentals and notices specifying the final 

18 decisions regarding such proposed substantial methodo19 logical changes and responses to public comments.’’. 

20 (b) PAYMENT STANDARD.—Subparagraph (B) of sec21 tion 8(o)(1) of the United States Housing Act of 1937 

22 (42 U.S.C. 1437f(o)(1)(B)) is amended by inserting be23 fore the period at the end the following: ‘‘, except that 

24 no public housing agency shall be required as a result of 

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1 ment standard applied to a family continuing to reside in 

2 a unit for which the family was receiving assistance under 

3 this section at the time the fair market rental was reduced. 

4 The Secretary shall allow public housing agencies to re5 quest exception payment standards within fair market 

6 rental areas subject to criteria and procedures established 

7 by the Secretary’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall take effect upon the date of the enact10 ment of this Act. 

11 SEC. 108. COLLECTION OF UTILITY DATA. 

12 Section 8(o) of the United States Housing Act of 

13 1937 (42 U.S.C. 1437f(o)) is amended by adding at the 

14 end the following new paragraph: 

15 ‘‘(20) COLLECTION OF UTILITY DATA.— 

16 ‘‘(A) PUBLICATION.—The Secretary shall, 

17 to the extent that data can be collected cost ef18 fectively, regularly publish such data regarding 

19 utility consumption and costs in local areas as 

20 the Secretary determines will be useful for the 

21 establishment of allowances for tenant-paid util22 ities for families assisted under this subsection. 

23 ‘‘(B) USE OF DATA.—The Secretary shall 

24 provide such data in a manner that— 

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1 ‘‘(i) avoids unnecessary administrative 

2 burdens for public housing agencies and 

3 owners; and 

4 ‘‘(ii) protects families in various unit 

5 sizes and building types, and using various 

6 utilities, from high rent and utility cost 

7 burdens relative to income.’’. 

8 SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING 

9 FUNDS. 

10 (a) CAPITAL FUND REPLACEMENT RESERVES.—Sec11 tion 9 of the United States Housing Act of 1937 (42 

12 U.S.C. 1437g) is amended— 

13 (1) in subsection (j), by adding at the end the 

14 following new paragraph: 

15 ‘‘(7) TREATMENT OF REPLACEMENT RE16 SERVE.—The requirements of this subsection shall 

17 not apply to funds held in replacement reserves es18 tablished pursuant to subsection (n).’’; and 

19 (2) by adding at the end the following new sub20 section: 

21 ‘‘(n) ESTABLISHMENT OF REPLACEMENT RE22 SERVES.— 

23 ‘‘(1) IN GENERAL.—Public housing agencies 

24 shall be permitted to establish a replacement reserve 

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1 to fund any of the capital activities listed in sub2 section (d)(1). 

3 ‘‘(2) SOURCE AND AMOUNT OF FUNDS FOR RE4 PLACEMENT RESERVE.—At any time, a public hous5 ing agency may deposit funds from such agency’s 

6 Capital Fund into a replacement reserve, subject to 

7 the following: 

8 ‘‘(A) At the discretion of the Secretary, 

9 public housing agencies may transfer and hold 

10 in a replacement reserve funds originating from 

11 additional sources. 

12 ‘‘(B) No minimum transfer of funds to a 

13 replacement reserve shall be required. 

14 ‘‘(C) At any time, a public housing agency 

15 may not hold in a replacement reserve more 

16 than the amount the public housing authority 

17 has determined necessary to satisfy the antici18 pated capital needs of properties in its portfolio 

19 assisted under this section, as outlined in its 

20 Capital Fund 5-Year Action Plan, or a com21 parable plan, as determined by the Secretary. 

22 ‘‘(D) The Secretary may establish, by reg23 ulation, a maximum replacement reserve level 

24 or levels that are below amounts determined 

25 under subparagraph (C), which may be based 

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1 upon the size of the portfolio assisted under 

2 this section or other factors. 

3 ‘‘(3) TRANSFER OF OPERATING FUNDS.—In 

4 first establishing a replacement reserve, the Sec5 retary may allow public housing agencies to transfer 

6 more than 20 percent of its operating funds into its 

7 replacement reserve. 

8 ‘‘(4) EXPENDITURE.—Funds in a replacement 

9 reserve may be used for purposes authorized by sub10 section (d)(1) and contained in its Capital Fund 5- 

11 Year Action Plan. 

12 ‘‘(5) MANAGEMENT AND REPORT.—The Sec13 retary shall establish appropriate accounting and re14 porting requirements to ensure that public housing 

15 agencies are spending funds on eligible projects and 

16 that funds in the replacement reserve are connected 

17 to capital needs.’’. 

18 (b) FLEXIBILITY OF OPERATING FUND AMOUNTS.— 

19 Paragraph (1) of section 9(g) of the United States Hous20 ing Act of 1937 (42 U.S.C. 1437g(g)(1)) is amended— 

21 (1) by striking ‘‘(1)’’ and all that follows 

22 through ‘‘—Of’’ and inserting the following: 

23 ‘‘(1) FLEXIBILITY IN USE OF FUNDS.— 

24 ‘‘(A) FLEXIBILITY FOR CAPITAL FUND

25 AMOUNTS.—Of’’; and 

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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(B) FLEXIBILITY FOR OPERATING FUND

4 AMOUNTS.—Of any amounts appropriated for 

5 fiscal year 2016 or any fiscal year thereafter 

6 that are allocated for fiscal year 2016 or any 

7 fiscal year thereafter from the Operating Fund 

8 for any public housing agency, the agency may 

9 use not more than 20 percent for activities that 

10 are eligible under subsection (d) for assistance 

11 with amounts from the Capital Fund, but only 

12 if the public housing plan under section 5A for 

13 the agency provides for such use.’’. 

14 SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN 

15 AGING OUT OF FOSTER CARE. 

16 Section 8(x) of the United States Housing Act of 

17 1937 (42 U.S.C. 1437f(x)) is amended— 

18 (1) in paragraph (2)(B)— 

19 (A) by striking ‘‘18 months’’ and inserting 

20 ‘‘36 months’’; 

21 (B) by striking ‘‘21 years of age’’ and in22 serting ‘‘24 years of age’’; and 

23 (C) by inserting after ‘‘have left foster 

24 care’’ the following: ‘‘, or will leave foster care 

25 within 90 days, in accordance with a transition 

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1 plan described in section 475(5)(H) of the So2 cial Security Act, and is homeless or is at risk 

3 of becoming homeless’’; 

4 (2) by redesignating paragraph (4) as para5 graph (5); and 

6 (3) by inserting after paragraph (3) the fol7 lowing new paragraph: 

8 ‘‘(4) COORDINATION BETWEEN PUBLIC HOUS9 ING AGENCIES AND PUBLIC CHILD WELFARE AGEN10 CIES.—The Secretary shall, not later than the expi11 ration of the 180-day period beginning on the date 

12 of the enactment of the Housing Opportunity 

13 Through Modernization Act of 2016 and after con14 sultation with other appropriate Federal agencies, 

15 issue guidance to improve coordination between pub16 lic housing agencies and public child welfare agen17 cies in carrying out the program under this sub18 section, which shall provide guidance on— 

19 ‘‘(A) identifying eligible recipients for as20 sistance under this subsection; 

21 ‘‘(B) coordinating with other local youth 

22 and family providers in the community and par23 ticipating in the Continuum of Care program 

24 established under subtitle C of title IV of the 

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1 McKinney-Vento Homeless Assistance Act (42 

2 U.S.C. 11381 et seq.); 

3 ‘‘(C) implementing housing strategies to 

4 assist eligible families and youth; 

5 ‘‘(D) aligning system goals to improve out6 comes for families and youth and reducing 

7 lapses in housing for families and youth; and 

8 ‘‘(E) identifying resources that are avail9 able to eligible families and youth to provide 

10 supportive services available through parts B 

11 and E of title IV of the Social Security Act (42 

12 U.S.C. 621 et seq.; 670 et seq.) or that the 

13 head of household of a family or youth may be 

14 entitled to receive under section 477 of the So15 cial Security Act (42 U.S.C. 677).’’. 

16 SEC. 111. PUBLIC HOUSING HEATING GUIDELINES. 

17 Section 9 of the United States Housing Act of 1937 

18 (42 U.S.C. 1437g), as amended by the preceding provi19 sions of this Act, is further amended by adding at the end 

20 the following new subsection: 

21 ‘‘(o) PUBLIC HOUSING HEATING GUIDELINES.—The 

22 Secretary shall publish model guidelines for minimum 

23 heating requirements for public housing dwelling units op24 erated by public housing agencies receiving assistance 

25 under this section.’’. 

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1 SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUS2 ING. 

3 (a) IN GENERAL.—Section 8(o)(12) of the United 

4 States Housing Act of 1937 (42 U.S.C. 1437f(o)(12)) is 

5 amended— 

6 (1) in subparagraph (A), by striking the period 

7 at the end of the first sentence and all that follows 

8 through ‘‘of’’ in the second sentence and inserting 

9 ‘‘and rents’’; and 

10 (2) in subparagraph (B)— 

11 (A) in clause (i), by striking ‘‘the rent’’ 

12 and all that follows and inserting the following: 

13 ‘‘rent shall mean the sum of the monthly pay14 ments made by a family assisted under this 

15 paragraph to amortize the cost of purchasing 

16 the manufactured home, including any required 

17 insurance and property taxes, the monthly 

18 amount allowed for tenant-paid utilities, and 

19 the monthly rent charged for the real property 

20 on which the manufactured home is located, in21 cluding monthly management and maintenance 

22 charges.’’; 

23 (B) by striking clause (ii); and 

24 (C) in clause (iii)— 

25 (i) by inserting after the period at the 

26 end the following: ‘‘If the amount of the 

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1 monthly assistance payment for a family 

2 exceeds the monthly rent charged for the 

3 real property on which the manufactured 

4 home is located, including monthly man5 agement and maintenance charges, a pub6 lic housing agency may pay the remainder 

7 to the family, lender or utility company, or 

8 may choose to make a single payment to 

9 the family for the entire monthly assist10 ance amount.’’; and 

11 (ii) by redesignating such clause as 

12 clause (ii). 

13 (b) EFFECTIVE DATE.—The Secretary of Housing 

14 and Urban Development shall issue notice to implement 

15 the amendments made by subsection (a) and such amend16 ments shall take effect upon such issuance. 

17 SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR 

18 NATIONALS. 

19 Section 214(a)(7) of the Housing and Community 

20 Development Act of 1980 (42 U.S.C. 1436a(a)(7)) is 

21 amended by striking ‘‘such alien’’ and all that follows 

22 through the period at the end and inserting ‘‘any citizen 

23 or national of the United States shall be entitled to a pref24 erence or priority in receiving financial assistance before 

25 any such alien who is otherwise eligible for assistance.’’. 

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1 SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESI2 DENT BOARD MEMBER REQUIREMENT. 

3 Subsection (b) of section 2 of the United States 

4 Housing Act of 1937 (42 U.S.C. 1437(b)) is amended— 

5 (1) in paragraph (1), by striking ‘‘paragraph 

6 (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; 

7 (2) by redesignating paragraph (3) as para8 graph (4); and 

9 (3) by inserting after paragraph (2) the fol10 lowing new paragraph: 

11 ‘‘(3) EXCEPTION FOR CERTAIN JURISDIC12 TIONS.— 

13 ‘‘(A) EXCEPTION.—A covered agency (as 

14 such term is defined in subparagraph (C) of 

15 this paragraph) shall not be required to include 

16 on the board of directors or a similar governing 

17 board of such agency a member described in 

18 paragraph (1). 

19 ‘‘(B) ADVISORY BOARD REQUIREMENT.— 

20 Each covered agency that administers Federal 

21 housing assistance under section 8 (42 U.S.C. 

22 1437f) that chooses not to include a member 

23 described in paragraph (1) on the board of di24 rectors or a similar governing board of the 

25 agency shall establish an advisory board of not 

26 less than 6 residents of public housing or recipimstockstill on DSK4VPTVN1PROD with BILLS

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1 ents of assistance under section 8 (42 U.S.C. 

2 1437f) to provide advice and comment to the 

3 agency or other administering entity on issues 

4 related to public housing and section 8. Such 

5 advisory board shall meet not less than quar6 terly. 

7 ‘‘(C) COVERED AGENCY OR ENTITY.—For 

8 purposes of this paragraph, the term ‘covered 

9 agency’ means a public housing agency or such 

10 other entity that administers Federal housing 

11 assistance for— 

12 ‘‘(I) the Housing Authority of the 

13 county of Los Angeles, California; or 

14 ‘‘(ii) any of the States of Alaska, 

15 Iowa, and Mississippi.’’. 

16 TITLE II—RURAL HOUSING 

17 SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING 

18 LOAN APPROVAL. 

19 Subsection (h) of section 502 of the Housing Act of 

20 1949 (42 U.S.C. 1472(h)) is amended by adding at the 

21 end the following new paragraph: 

22 ‘‘(18) DELEGATION OF APPROVAL.—The Sec23 retary may delegate, in part or in full, the Sec24 retary’s authority to approve and execute binding 

25 Rural Housing Service loan guarantees pursuant to 

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1 this subsection to certain preferred lenders, in ac2 cordance with standards established by the Sec3 retary.’’. 

4 SEC. 202. GUARANTEED UNDERWRITING USER FEE. 

5 Section 502 of the Housing Act of 1949 (42 U.S.C. 

6 1472) is amended by adding at the end the following new 

7 subsection: 

8 ‘‘(i) GUARANTEED UNDERWRITING USER FEE.— 

9 ‘‘(1) AUTHORITY; MAXIMUM AMOUNT.—The 

10 Secretary may assess and collect a fee for a lender 

11 to access the automated underwriting systems of the 

12 Department in connection with such lender’s partici13 pation in the single family loan program under this 

14 section and only in an amount necessary to cover the 

15 costs of information technology enhancements, im16 provements, maintenance, and development for auto17 mated underwriting systems used in connection with 

18 the single family loan program under this section, 

19 except that such fee shall not exceed $50 per loan. 

20 ‘‘(2) CREDITING; AVAILABILITY.—Any amounts 

21 collected from such fees shall be credited to the 

22 Rural Development Expense Account as offsetting 

23 collections and shall remain available until expended, 

24 in the amounts provided in appropriation Acts, sole25 ly for expenses described in paragraph (1).’’. 

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1 TITLE III—FHA MORTGAGE IN2 SURANCE FOR CONDOMIN3 IUMS 

4 SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR 

5 MORTGAGE INSURANCE FOR CONDOMIN6 IUMS. 

7 Section 203 of the National Housing Act (12 U.S.C. 

8 1709) is amended by adding at the end the following new 

9 subsection: 

10 ‘‘(y) REQUIREMENTS FOR MORTGAGES FOR CON11 DOMINIUMS.— 

12 ‘‘(1) PROJECT RECERTIFICATION REQUIRE13 MENTS.—Notwithstanding any other law, regulation, 

14 or guideline of the Secretary, including chapter 2.4 

15 of the Condominium Project Approval and Proc16 essing Guide of the FHA, the Secretary shall 

17 streamline the project certification requirements that 

18 are applicable to the insurance under this section for 

19 mortgages for condominium projects so that recer20 tifications are substantially less burdensome than 

21 certifications. The Secretary shall consider length22 ening the time between certifications for approved 

23 properties, and allowing updating of information 

24 rather than resubmission. 

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1 ‘‘(2) COMMERCIAL SPACE REQUIREMENTS.— 

2 Notwithstanding any other law, regulation, or guide3 line of the Secretary, including chapter 2.1.3 of the 

4 Condominium Project Approval and Processing 

5 Guide of the FHA, in providing for exceptions to the 

6 requirement for the insurance of a mortgage on a 

7 condominium property under this section regarding 

8 the percentage of the floor space of a condominium 

9 property that may be used for nonresidential or com10 mercial purposes, the Secretary shall provide that— 

11 ‘‘(A) any request for such an exception and 

12 the determination of the disposition of such re13 quest may be made, at the option of the re14 quester, under the direct endorsement lender 

15 review and approval process or under the HUD 

16 review and approval process through the appli17 cable field office of the Department; and 

18 ‘‘(B) in determining whether to allow such 

19 an exception for a condominium property, fac20 tors relating to the economy for the locality in 

21 which such project is located or specific to 

22 project, including the total number of family 

23 units in the project, shall be considered. 

24 Not later than the expiration of the 90-day period 

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1 graph, the Secretary shall issue regulations to imple2 ment this paragraph, which shall include any stand3 ards, training requirements, and remedies and pen4 alties that the Secretary considers appropriate. 

5 ‘‘(3) TRANSFER FEES.—Notwithstanding any 

6 other law, regulation, or guideline of the Secretary, 

7 including chapter 1.8.8 of the Condominium Project 

8 Approval and Processing Guide of the FHA and sec9 tion 203.41 of the Secretary’s regulations (24 CFR 

10 203.41), existing standards of the Federal Housing 

11 Finance Agency relating to encumbrances under pri12 vate transfer fee covenants shall apply to the insur13 ance of mortgages by the Secretary under this sec14 tion to the same extent and in the same manner that 

15 such standards apply to the purchasing, investing in, 

16 and otherwise dealing in mortgages by the Federal 

17 National Mortgage Association and the Federal 

18 Home Loan Mortgage Corporation. If the provisions 

19 of part 1228 of the Director of the Federal Housing 

20 Finance Agency’s regulations (12 CFR part 1228) 

21 are amended or otherwise changed after the date of 

22 the enactment of this paragraph, the Secretary of 

23 Housing and Urban Development shall adopt any 

24 such amendments or changes for purposes of this 

25 paragraph, unless the Secretary causes to be pubmstockstill on DSK4VPTVN1PROD with BILLS

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1 lished in the Federal Register a notice explaining 

2 why the Secretary will disregard such amendments 

3 or changes within 90 days after the effective date of 

4 such amendments or changes. 

5 ‘‘(4) OWNER-OCCUPANCY REQUIREMENT.— 

6 ‘‘(A) ESTABLISHMENT OF PERCENTAGE

7 REQUIREMENT.—Not later than the expiration 

8 of the 90-day period beginning on the date of 

9 the enactment of this paragraph, the Secretary 

10 shall, by rule, notice, or mortgagee letter, issue 

11 guidance regarding the percentage of units that 

12 must be occupied by the owners as a principal 

13 residence or a secondary residence (as such 

14 terms are defined by the Secretary), or must 

15 have been sold to owners who intend to meet 

16 such occupancy requirements, including jus17 tifications for the percentage requirements, in 

18 order for a condominium project to be accept19 able to the Secretary for insurance under this 

20 section of a mortgage within such condominium 

21 property. 

22 ‘‘(B) FAILURE TO ACT.—If the Secretary 

23 fails to issue the guidance required under sub24 paragraph (A) before the expiration of the 90- 

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1 day period specified in such clause, the fol2 lowing provisions shall apply: 

3 ‘‘(i) 35 PERCENT REQUIREMENT.—In 

4 order for a condominium project to be ac5 ceptable to the Secretary for insurance 

6 under this section, at least 35 percent of 

7 all family units (including units not cov8 ered by FHA-insured mortgages) must be 

9 occupied by the owners as a principal resi10 dence or a secondary residence (as such 

11 terms are defined by the Secretary), or 

12 must have been sold to owners who intend 

13 to meet such occupancy requirement. 

14 ‘‘(ii) OTHER CONSIDERATIONS.—The 

15 Secretary may increase the percentage ap16 plicable pursuant to clause (i) to a condo17 minium project on a project-by-project or 

18 regional basis, and in determining such 

19 percentage for a project shall consider fac20 tors relating to the economy for the local21 ity in which such project is located or spe22 cific to project, including the total number 

23 of family units in the project.’’. 

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1 TITLE IV—HOUSING REFORMS 

2 FOR THE HOMELESS AND FOR 

3 VETERANS 

4 SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CON5 TINUUM OF CARE PROGRAM. 

6 (a) DEFINITION.—Subtitle C of the McKinney-Vento 

7 Homeless Assistance Act is amended— 

8 (1) by redesignating sections 432 and 433 (42 

9 U.S.C. 11387, 11388) as sections 433 and 434, re10 spectively; and 

11 (2) by inserting after section 431 (42 U.S.C. 

12 11386e) the following new section: 

13 ‘‘SEC. 432. GEOGRAPHIC AREAS. 

14 ‘‘(a) REQUIREMENT TO DEFINE.—For purposes of 

15 this subtitle, the term ‘geographic area’ shall have such 

16 meaning as the Secretary shall by notice provide. 

17 ‘‘(b) ISSUANCE OF NOTICE.—Not later than the expi18 ration of the 90-day period beginning on the date of the 

19 enactment of the Housing Opportunity Through Mod20 ernization Act of 2016, the Secretary shall issue a notice 

21 setting forth the definition required by subsection (a).’’. 

22 (b) CLERICAL AMENDMENT.—The table of contents 

23 in section 101(b) of the McKinney-Vento Homeless Assist24 ance Act (42 U.S.C. 11301 note) is amended by striking 

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1 the items relating to sections 432 and 433 and inserting 

2 the following new items: 

‘‘Sec. 432. Geographic areas. 

‘‘Sec. 433. Regulations. 

‘‘Sec. 434. Reports to Congress.’’. 

3 SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND 

4 LOCAL REDEVELOPMENT AUTHORITIES IN 

5 EMERGENCY SOLUTIONS GRANTS. 

6 Section 414(c) of the McKinney-Vento Homeless As7 sistance Act (42 U.S.C. 11373(c)) is amended— 

8 (1) in the subsection heading, by inserting ‘‘, 

9 PUBLIC HOUSING AGENCIES, AND LOCAL REDEVEL10 OPMENT AUTHORITIES’’ after ‘‘ORGANIZATIONS’’; 

11 and 

12 (2) in the first sentence, by inserting before the 

13 period at the end the following: ‘‘, to public housing 

14 agencies (as defined under section 3(b)(6) of the 

15 United States Housing Act of 1937), or to local re16 development authorities (as defined under State 

17 law)’’. 

18 SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN 

19 THE DEPARTMENT OF HOUSING AND URBAN 

20 DEVELOPMENT. 

21 (a) TRANSFER OF POSITION TO OFFICE OF THE SEC22 RETARY.—Section 4 of the Department of Housing and 

23 Urban Development Act (42 U.S.C. 3533) is amended by 

24 adding at the end the following new subsection: 

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1 ‘‘(h) SPECIAL ASSISTANT FOR VETERANS AF2 FAIRS.— 

3 ‘‘(1) POSITION.—There shall be in the Office of 

4 the Secretary a Special Assistant for Veterans Af5 fairs, who shall report directly to the Secretary. 

6 ‘‘(2) APPOINTMENT.—The Special Assistant for 

7 Veterans Affairs shall be appointed based solely on 

8 merit and shall be covered under the provisions of 

9 title 5, United States Code, governing appointments 

10 in the competitive service. 

11 ‘‘(3) RESPONSIBILITIES.—The Special Assist12 ant for Veterans Affairs shall be responsible for— 

13 ‘‘(A) ensuring veterans have fair access to 

14 housing and homeless assistance under each 

15 program of the Department providing either 

16 such assistance; 

17 ‘‘(B) coordinating all programs and activi18 ties of the Department relating to veterans; 

19 ‘‘(C) serving as a liaison for the Depart20 ment with the Department of Veterans Affairs, 

21 including establishing and maintaining relation22 ships with the Secretary of Veterans Affairs; 

23 ‘‘(D) serving as a liaison for the Depart24 ment, and establishing and maintaining rela25 tionships with the United States Interagency 

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1 Council on Homelessness and officials of State, 

2 local, regional, and nongovernmental organiza3 tions concerned with veterans; 

4 ‘‘(E) providing information and advice re5 garding— 

6 ‘‘(i) sponsoring housing projects for 

7 veterans assisted under programs adminis8 tered by the Department; or 

9 ‘‘(ii) assisting veterans in obtaining 

10 housing or homeless assistance under pro11 grams administered by the Department; 

12 ‘‘(F) coordinating with the Secretary of 

13 Housing and Urban Development and the Sec14 retary of Veterans Affairs in carrying out sec15 tion 404 of the Housing Opportunity Through 

16 Modernization Act of 2016; 

17 ‘‘(G) collaborating with the Department of 

18 Veterans Affairs on making joint recommenda19 tions to the Congress, the Secretary of Housing 

20 and Urban Development, and the Secretary of 

21 Veterans Affairs on how to better coordinate 

22 and improve services to veterans under both 

23 Department of Housing and Urban Develop24 ment and Department of Veteran Affairs vet25 erans housing programs, including ways to immstockstill on DSK4VPTVN1PROD with BILLS

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1 prove the Independent Living Program of the 

2 Department of Veteran Affairs; and 

3 ‘‘(H) carrying out such other duties as 

4 may be assigned to the Special Assistant by the 

5 Secretary or by law.’’. 

6 (b) TRANSFER OF POSITION IN OFFICE OF DEPUTY

7 ASSISTANT SECRETARY FOR SPECIAL NEEDS.—On the 

8 date that the initial Special Assistant for Veterans Affairs 

9 is appointed pursuant to section 4(h)(2) of the Depart10 ment of Housing and Urban Development Act, as added 

11 by subsection (a) of this section, the position of Special 

12 Assistant for Veterans Programs in the Office of the Dep13 uty Assistant Secretary for Special Needs of the Depart14 ment of Housing and Urban Development shall be termi15 nated. 

16 SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS 

17 HOMELESSNESS. 

18 (a) IN GENERAL.—The Secretary of Housing and 

19 Urban Development and the Secretary of Veterans Af20 fairs, in coordination with the United States Interagency 

21 Council on Homelessness, shall submit annually to the 

22 Committees of the Congress specified in subsection (b), 

23 together with the annual reports required by such Secre24 taries under section 203(c)(1) of the McKinney-Vento 

25 Homeless Assistance Act (42 U.S.C. 11313(c)(1)), a supmstockstill on DSK4VPTVN1PROD with BILLS

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1 plemental report that includes the following information 

2 with respect to the preceding year: 

3 (1) The same information, for such preceding 

4 year, that was included with respect to 2010 in the 

5 report by the Secretary of Housing and Urban De6 velopment and the Secretary of Veterans Affairs en7 titled ‘‘Veterans Homelessness: A Supplemental Re8 port to the 2010 Annual Homeless Assessment Re9 port to Congress’’. 

10 (2) Information regarding the activities of the 

11 Department of Housing and Urban Development re12 lating to veterans during such preceding year, as fol13 lows: 

14 (A) The number of veterans provided as15 sistance under the housing choice voucher pro16 gram for Veterans Affairs supported housing 

17 under section 8(o)(19) of the United States 

18 Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), 

19 the socioeconomic characteristics of such home20 less veterans, and the number, types, and loca21 tions of entities contracted under such section 

22 to administer the vouchers. 

23 (B) A summary description of the special 

24 considerations made for veterans under public 

25 housing agency plans submitted pursuant to 

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1 section 5A of the United States Housing Act of 

2 1937 (42 U.S.C. 1437c–1) and under com3 prehensive housing affordability strategies sub4 mitted pursuant to section 105 of the Cranston5 Gonzalez National Affordable Housing Act (42 

6 U.S.C. 12705). 

7 (C) A description of the activities of the 

8 Special Assistant for Veterans Affairs of the 

9 Department of Housing and Urban Develop10 ment. 

11 (D) A description of the efforts of the De12 partment of Housing and Urban Development 

13 and the other members of the United States 

14 Interagency Council on Homelessness to coordi15 nate the delivery of housing and services to vet16 erans. 

17 (E) The cost to the Department of Hous18 ing and Urban Development of administering 

19 the programs and activities relating to veterans. 

20 (F) Any other information that the Sec21 retary of Housing and Urban Development and 

22 the Secretary of Veterans Affairs consider rel23 evant in assessing the programs and activities 

24 of the Department of Housing and Urban De25 velopment relating to veterans. 

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1 (b) COMMITTEES.—The Committees of the Congress 

2 specified in this subsection are as follows: 

3 (1) The Committee on Banking, Housing, and 

4 Urban Affairs of the Senate. 

5 (2) The Committee on Veterans’ Affairs of the 

6 Senate. 

7 (3) The Committee on Appropriations of the 

8 Senate. 

9 (4) The Committee on Financial Services of the 

10 House of Representatives. 

11 (5) The Committee on Veterans’ Affairs of the 

12 House of Representatives. 

13 (6) The Committee on Appropriations of the 

14 House of Representatives. 

15 SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR 

16 CONTINUUM OF CARE PROGRAM REGULA17 TIONS. 

18 Not later than the expiration of the 30-day period 

19 beginning on the date of the enactment of this Act, the 

20 Secretary of Housing and Urban Development shall re21 open the period for public comment regarding the Sec22 retary’s interim rule entitled ‘‘Homeless Emergency As23 sistance and Rapid Transition to Housing: Continuum of 

24 Care Program’’, published in the Federal Register on July 

25 31, 2012 (77 Fed. Reg. 45422; Docket No. FR–5476– 

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1 I–01). Upon re-opening, such comment period shall re2 main open for a period of not fewer than 60 days. 

3 TITLE V—MISCELLANEOUS 

4 SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE 

5 PROGRAM IN CERTAIN FRAUD AND ABUSE 

6 PREVENTION MEASURES. 

7 The Disaster Housing Assistance Program adminis8 tered by the Department of Housing and Urban Develop9 ment shall be considered a ‘‘program of the Department 

10 of Housing and Urban Development’’ under section 904 

11 of the Stewart B. McKinney Homeless Assistance Amend12 ments Act of 1988 (42 U.S.C. 3544) for the purpose of 

13 income verifications. 

14 SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER 

15 SELF-HELP HOMEOWNERSHIP OPPORTUNITY 

16 PROGRAM. 

17 Section 11 of the Housing Opportunity Program Ex18 tension Act of 1996 (42 U.S.C. 12805 note) is amended 

19 by inserting after subsection (f) the following new sub20 section: 

21 ‘‘(g) ENERGY EFFICIENCY REQUIREMENTS.—The 

22 Secretary may not require any dwelling developed using 

23 amounts from a grant made under this section to meet 

24 any energy efficiency standards other than the standards 

25 applicable at such time pursuant to section 109 of the 

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1 Cranston-Gonzalez National Affordable Housing Act (42 

2 U.S.C. 12709) to housing specified in subsection (a) of 

3 such section.’’. 

4 SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IM5 PROVED INTEROPERABILITY. 

6 (a) DATA EXCHANGE STANDARDIZATION.—Title I of 

7 the United States Housing Act of 1937 (42 U.S.C. 1437 

8 et seq.) is amended by adding at the end the following 

9 new section: 

10 ‘‘SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED 

11 INTEROPERABILITY. 

12 ‘‘(a) DESIGNATION.—The Secretary shall, in con13 sultation with an interagency work group established by 

14 the Office of Management and Budget, and considering 

15 State government perspectives, designate data exchange 

16 standards to govern, under this Act— 

17 ‘‘(1) necessary categories of information that 

18 State agencies operating related programs are re19 quired under applicable law to electronically ex20 change with another State agency; and 

21 ‘‘(2) Federal reporting and data exchange re22 quired under applicable law. 

23 ‘‘(b) REQUIREMENTS.—The data exchange standards 

24 required by subsection (a) shall, to the maximum extent 

25 practicable— 

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1 ‘‘(1) incorporate a widely accepted, nonpropri2 etary, searchable, computer-readable format, such as 

3 the eXtensible Markup Language; 

4 ‘‘(2) contain interoperable standards developed 

5 and maintained by intergovernmental partnerships, 

6 such as the National Information Exchange Model; 

7 ‘‘(3) incorporate interoperable standards devel8 oped and maintained by Federal entities with au9 thority over contracting and financial assistance; 

10 ‘‘(4) be consistent with and implement applica11 ble accounting principles; 

12 ‘‘(5) be implemented in a manner that is cost13 effective and improves program efficiency and effec14 tiveness; and 

15 ‘‘(6) be capable of being continually upgraded 

16 as necessary. 

17 ‘‘(c) RULES OF CONSTRUCTION.—Nothing in this 

18 section requires a change to existing data exchange stand19 ards for Federal reporting found to be effective and effi20 cient.’’. 

21 (b) APPLICABILITY.— 

22 (1) IN GENERAL.—Not later than 2 years after 

23 the date of the enactment of this Act, the Secretary 

24 of Housing and Urban Development shall issue a 

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1 proposed rule to carry out the amendments made by 

2 subsection (a). 

3 (2) REQUIREMENTS.—The rule shall— 

4 (A) identify federally required data ex5 changes; 

6 (B) include specification and timing of ex7 changes to be standardized; 

8 (C) address the factors used in deter9 mining whether and when to standardize data 

10 exchanges; 

11 (D) specify State implementation options; 

12 and 

13 (E) describe future milestones. 

14 TITLE VI—REPORTS 

15 SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC 

16 EMPOWERMENT STRATEGIES. 

17 The Secretary of Housing and Urban Development, 

18 in consultation with the Secretary of Labor, shall submit 

19 a report to the Congress annually that describes— 

20 (1) any interagency strategies of such Depart21 ments that are designed to improve family economic 

22 empowerment by linking housing assistance with es23 sential supportive services, such as employment 

24 counseling and training, financial education and 

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1 reational activities, and other supportive services; 

2 and 

3 (2) any actions taken in the preceding year to 

4 carry out such strategies and the extent of progress 

5 achieved by such actions. 

6 TITLE VII—HOUSING OPPORTU7 NITIES FOR PERSONS WITH 

8 AIDS 

9 SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO 

10 PREVENT HOMELESSNESS FOR INDIVIDUALS 

11 LIVING WITH HIV OR AIDS. 

12 (a) IN GENERAL.—Subsection (c) of section 854 of 

13 the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)) 

14 is amended by— 

15 (1) redesignating paragraph (3) as paragraph 

16 (5); and 

17 (2) striking paragraphs (1) and (2) and insert18 ing the following: 

19 ‘‘(1) ALLOCATION OF RESOURCES.— 

20 ‘‘(A) ALLOCATION FORMULA.—The Sec21 retary shall allocate 90 percent of the amount 

22 approved in appropriations Acts under section 

23 863 among States and metropolitan statistical 

24 areas as follows: 

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1 ‘‘(I) 75 percent of such amounts 

2 among— 

3 ‘‘(I) cities that are the most pop4 ulous unit of general local government 

5 in a metropolitan statistical area with 

6 a population greater than 500,000, as 

7 determined on the basis of the most 

8 recent census, and with more than 

9 2,000 individuals living with HIV or 

10 AIDS, using the data specified in sub11 paragraph (B); and 

12 ‘‘(II) States with more than 

13 2,000 individuals living with HIV or 

14 AIDS outside of metropolitan statis15 tical areas. 

16 ‘‘(ii) 25 percent of such amounts 

17 among States and metropolitan statistical 

18 areas based on the method described in 

19 subparagraph (C). 

20 ‘‘(B) SOURCE OF DATA.—For purposes of 

21 allocating amounts under this paragraph for 

22 any fiscal year, the number of individuals living 

23 with HIV or AIDS shall be the number of such 

24 individuals as confirmed by the Director of the 

25 Centers for Disease Control and Prevention, as 

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1 of December 31 of the most recent calendar 

2 year for which such data is available. 

3 ‘‘(C) ALLOCATION UNDER SUBPARAGRAPH

4 (A)(ii).—For purposes of allocating amounts 

5 under subparagraph (A)(ii), the Secretary shall 

6 develop a method that accounts for— 

7 ‘‘(I) differences in housing costs 

8 among States and metropolitan statistical 

9 areas based on the fair market rental es10 tablished pursuant to section 8(c) of the 

11 United States Housing Act of 1937 (42 

12 U.S.C. 1437f(c)) or another methodology 

13 established by the Secretary through regu14 lation; and 

15 ‘‘(ii) differences in poverty rates 

16 among States and metropolitan statistical 

17 areas based on area poverty indexes or an18 other methodology established by the Sec19 retary through regulation. 

20 ‘‘(2) MAINTAINING GRANTS.— 

21 ‘‘(A) CONTINUED ELIGIBILITY OF FISCAL

22 YEAR 2016 GRANTEES.—A grantee that received 

23 an allocation in fiscal year 2016 shall continue 

24 to be eligible for allocations under paragraph 

25 (1) in subsequent fiscal years, subject to— 

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1 ‘‘(I) the amounts available from ap2 propriations Acts under section 863; 

3 ‘‘(ii) approval by the Secretary of the 

4 most recent comprehensive housing afford5 ability strategy for the grantee approved 

6 under section 105; and 

7 ‘‘(iii) the requirements of subpara8 graph (C). 

9 ‘‘(B) ADJUSTMENTS.—Allocations to 

10 grantees described in subparagraph (A) shall be 

11 adjusted annually based on the administrative 

12 provisions included in fiscal year 2016 appro13 priations Acts. 

14 ‘‘(C) REDETERMINATION OF CONTINUED

15 ELIGIBILITY.—The Secretary shall redetermine 

16 the continued eligibility of a grantee that re17 ceived an allocation in fiscal year 2016 at least 

18 once during the 10-year period following fiscal 

19 year 2016. 

20 ‘‘(D) ADJUSTMENT TO GRANTS.—For each 

21 of fiscal years 2017, 2018, 2019, 2020, and 

22 2021, the Secretary shall ensure that a grantee 

23 that received an allocation in the prior fiscal 

24 year does not receive an allocation that is 5 per25 cent less than or 10 percent greater than the 

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1 amount allocated to such grantee in the pre2 ceding fiscal year. 

3 ‘‘(3) ALTERNATIVE GRANTEES.— 

4 ‘‘(A) REQUIREMENTS.—The Secretary may 

5 award funds reserved for a grantee eligible 

6 under paragraph (1) to an alternative grantee 

7 if— 

8 ‘‘(I) the grantee submits to the Sec9 retary a written agreement between the 

10 grantee and the alternative grantee that 

11 describes how the alternative grantee will 

12 take actions consistent with the applicable 

13 comprehensive housing affordability strat14 egy approved under section 105 of this 

15 Act; 

16 ‘‘(ii) the Secretary approves the writ17 ten agreement described in clause (I) and 

18 agrees to award funds to the alternative 

19 grantee; and 

20 ‘‘(iii) the written agreement does not 

21 exceed a term of 10 years. 

22 ‘‘(B) RENEWAL.—An agreement approved 

23 pursuant to subparagraph (A) may be renewed 

24 by the parties with the approval of the Sec25 retary. 

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1 ‘‘(C) DEFINITION.—In this paragraph, the 

2 term ‘alternative grantee’ means a public hous3 ing agency (as defined in section 3(b) of the 

4 United States Housing Act of 1937 (42 U.S.C. 

5 1437a(b))), a unified funding agency (as de6 fined in section 401 of the McKinney-Vento 

7 Homeless Assistance Act (42 U.S.C. 11360)), a 

8 State, a unit of general local government, or an 

9 instrumentality of State or local government. 

10 ‘‘(4) REALLOCATIONS.—If a State or metropoli11 tan statistical area declines an allocation under 

12 paragraph (1)(A), or the Secretary determines, in 

13 accordance with criteria specified in regulation, that 

14 a State or metropolitan statistical area that is eligi15 ble for an allocation under paragraph (1)(A) is un16 able to properly administer such allocation, the Sec17 retary shall reallocate any funds reserved for such 

18 State or metropolitan statistical area as follows: 

19 ‘‘(A) For funds reserved for a State— 

20 ‘‘(I) to eligible metropolitan statistical 

21 areas within the State on a pro rata basis; 

22 or 

23 ‘‘(ii) if there is no eligible metropoli24 tan statistical areas within a State, to met25 ropolitan cities and urban counties within 

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1 the State that are eligible for grant under 

2 section 106 of the Housing and Commu3 nity Development Act of 1974 (42 U.S.C. 

4 5306), on a pro rata basis. 

5 ‘‘(B) For funds reserved for a metropolitan 

6 statistical area, to the State in which the metro7 politan statistical area is located. 

8 ‘‘(C) If the Secretary is unable to make a 

9 reallocation under subparagraph (A) or (B), the 

10 Secretary shall make such funds available on a 

11 pro rata basis under the formula in paragraph 

12 (1)(A).’’. 

13 (b) AMENDMENT TO DEFINITIONS.—Section 853 of 

14 the AIDS Housing Opportunity Act (42 U.S.C. 12902) 

15 is amended— 

16 (1) in paragraph (1), by inserting ‘‘or ‘AIDS’ ’’ 

17 before ‘‘means’’; and 

18 (2) by inserting at the end the following new 

19 paragraphs: 

20 ‘‘(15) The term ‘HIV’ means infection with the 

21 human immunodeficiency virus. 

22 ‘‘(16) The term ‘individuals living with HIV or 

23 AIDS’ means, with respect to the counting of cases 

24 in a geographic area during a period of time, the 

25 sum of— 

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1 ‘‘(A) the number of living non-AIDS cases 

2 of HIV in the area; and 

3 ‘‘(B) the number of living cases of AIDS 

4 in the area.’’. 

Passed the House of Representatives February 2, 

2016. 

Attest: KAREN L. HAAS, 

Clerk. 

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