### §1437k. Consortia, joint ventures, affiliates, and subsidiaries of public housing agencies

#### (a) Consortia

#### (1) In general

Any 2 or more public housing agencies may participate in a consortium for the purpose of administering any or all of the housing programs of those public housing agencies in accordance with this section.

#### (2) Effect

With respect to any consortium described in paragraph (1)—

(A) any assistance made available under this subchapter to each of the public housing agencies participating in the consortium shall be paid to the consortium; and

(B) all planning and reporting requirements imposed upon each public housing agency participating in the consortium with respect to the programs operated by the consortium shall be consolidated.

#### (3) Restrictions

#### (A) Agreement

Each consortium described in paragraph (1) shall be formed and operated in accordance with a consortium agreement, and shall be subject to the requirements of a joint public housing agency plan, which shall be submitted by the consortium in accordance with section 1437c–1 of this title.

#### (B) Minimum requirements

The Secretary shall specify minimum requirements relating to the formation and operation of consortia and the minimum contents of consortium agreements under this paragraph.

#### (b) Joint ventures

#### (1) In general

Notwithstanding any other provision of law, a public housing agency, in accordance with the public housing agency plan, may—

(A) form and operate wholly owned or controlled subsidiaries (which may be nonprofit corporations) and other affiliates, any of which may be directed, managed, or controlled by the same persons who constitute the board of directors or similar governing body of the public housing agency, or who serve as employees or staff of the public housing agency; or

(B) enter into joint ventures, partnerships, or other business arrangements with, or contract with, any person, organization, entity, or governmental unit—

(i) with respect to the administration of the programs of the public housing agency, including any program that is subject to this subchapter; or

(ii) for the purpose of providing or arranging for the provision of supportive or social services.

#### (2) Use and treatment of income

Any income generated under paragraph (1)—

(A) shall be used for low-income housing or to benefit the residents assisted by the public housing agency; and

(B) shall not result in any decrease in any amount provided to the public housing agency under this subchapter, except as otherwise provided under the formulas established under section 1437g(d)(2) and 1437g(e)(2) of this title.

#### (3) Audits

The Comptroller General of the United States, the Secretary, or the Inspector General of the Department of Housing and Urban Development may conduct an audit of any activity undertaken under paragraph (1) at any time.

(Sept. 1, 1937, ch. 896, title I, §13, as added Pub. L. 96–153, title II, §209, Dec. 21, 1979, 93 Stat. 1109; amended Pub. L. 96–399, title II, §202(b), Oct. 8, 1980, 94 Stat. 1629; renumbered title I, Pub. L. 100–358, §5, June 29, 1988, 102 Stat. 681; Pub. L. 105–276, title V, §515, Oct. 21, 1998, 112 Stat. 2549.)

#### **Editorial Notes**

#### Prior Provisions

A prior section 13 of act Sept. 1, 1937, ch. 896, 50 Stat. 894, as amended, enumerated powers of the Authority and was classified to section 1413 of this title, prior to the general revision of this chapter by Pub. L. 93–383.

#### Amendments

1998—Pub. L. 105–276 amended section catchline and text of section generally. Prior to amendment, text read as follows: "The Secretary shall, to the maximum extent practicable, require that newly constructed and substantially rehabilitated projects assisted under this chapter with authority provided on or after October 1, 1979, shall be equipped with heating and cooling systems selected on the basis of criteria which include a life-cycle cost analysis of such systems."

1980—Pub. L. 96–399 struck out subsec. (a) which related to consideration by the Secretary, in utilizing contract authority, of projects which will be modernized to a substantial extent with weatherization materials as defined in section 6862(9) of this title, and redesignated former subsec. (b) as entire section.

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 1998 Amendment

Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title.

#### Reporting by Agencies Operating in Consortia

Pub. L. 115–174, title II, §209(c), May 24, 2018, 132 Stat. 1316, provided that: "Not later than 180 days after the date of enactment of this Act [May 24, 2018], the Secretary of Housing and Urban Development shall develop and deploy all electronic information systems necessary to accommodate full consolidated reporting by public housing agencies, as defined in section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)), electing to operate in consortia under section 13(a) of such Act (42 U.S.C. 1437k(a))."

#### Energy Efficient Public Housing Demonstration

Pub. L. 100–242, title I, §125, Feb. 5, 1988, 101 Stat. 1847, provided that the Secretary of Housing and Urban Development would establish a demonstration program through the assistance of an appropriate technology transfer organization specializing in producing detailed energy-efficient designs and in conducting local and statewide public participation tests for energy efficient, needs-oriented housing, provided the appropriate technology organization would carry out the demonstration working with public housing agencies to build and test energy-efficient housing designs in 100 separate housing units in 4 different States meeting local lower income housing needs through a composite ranging from single to 12-plex units in the cluster approach on vacant lots and open areas, provided that as soon as practicable following Sept. 30, 1988, the Secretary would submit to the Congress a report setting forth the findings and recommendations of the program, and authorized $4,700,000 for fiscal year 1988 for the project.