II 

109TH CONGRESS 

2D SESSION S. 3508 

To authorize the Moving to Work Charter program to enable public housing 

agencies to improve the effectiveness of Federal housing assistance, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 14, 2006 

Mr. SUNUNU (for himself, Mr. SANTORUM, and Mr. CARPER) introduced the 

following bill; which was read twice and referred to the Committee on 

Banking, Housing, and Urban Affairs 

A BILL 

To authorize the Moving to Work Charter program to enable 

public housing agencies to improve the effectiveness of 

Federal housing assistance, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Moving to Work Char5 ter Program Act of 2006’’. 

6 SEC. 2. MOVING TO WORK CHARTER PROGRAM AUTHOR7 IZATION. 

8 (a) PURPOSE.—The purpose of this Act is— 


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1 (1) to give public housing agencies and the Sec2 retary of Housing and Urban Development (in this 

3 Act referred to as the ‘‘Secretary’’) the flexibility to 

4 design and implement various approaches for pro5 viding and administering housing assistance that 

6 achieves greater cost effectiveness in using Federal 

7 housing assistance to address local housing needs for 

8 low-income families; 

9 (2) to reduce administrative burdens on public 

10 housing agencies providing such assistance; 

11 (3) to give incentives to assisted families to 

12 work and become economically self-sufficient; 

13 (4) to increase housing choices for low-income 

14 families; and 

15 (5) to enhance the ability of low-income elderly 

16 residents and persons with disabilities to live inde17 pendently. 

18 (b) MOVING TO WORK CHARTER PROGRAM AUTHOR19 ITY.— 

20 (1) CONTRACT AUTHORITY.— 

21 (A) IN GENERAL.—Subject to the phase-in 

22 requirements under subparagraph (B), the Sec23 retary shall enter into charter contracts, begin24 ning in fiscal year 2007, with up to 250 public 

25 housing agencies administering the public housVerDate Aug 31 2005 03:34 Jun 15, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3508.IS S3508

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1 ing program or the section 8 housing assistance 

2 program under the United States Housing Act 

3 of 1937 (42 U.S.C. 1437 et seq.). 

4 (B) PHASE-IN.—The phase-in require5 ments under this subparagraph are as follows: 

6 (i) By the end of fiscal year 2007, the 

7 Secretary shall have entered into charter 

8 contracts with at least 80 public housing 

9 agencies described in subparagraph (A). 

10 (ii) By the end of fiscal year 2008, 

11 the Secretary shall have entered into char12 ter contracts with at least 160 public hous13 ing agencies described in subparagraph 

14 (A). 

15 (iii) By the end of fiscal year 2009, 

16 the Secretary shall have entered into char17 ter contracts with at least 250 public hous18 ing agencies described in subparagraph 

19 (A). 

20 (2) CHARTER CONTRACTS.—A charter contract 

21 shall— 

22 (A) supersede and have a term commensu23 rate with any annual contributions contract be24 tween a public housing agency and the Sec25 retary; and 


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1 (B) provide that a participating public 

2 housing agency shall receive— 

3 (i) capital and operating assistance al4 located to such agency under section 9 of 

5 the United States Housing Act of 1937 

6 (42 U.S.C. 1437g); and 

7 (ii) assistance provided under section 

8 8 United States Housing Act of 1937 (42 

9 U.S.C. 1437f). 

10 (3) USE OF ASSISTANCE.—Any assistance pro11 vided under paragraph (2)(B)— 

12 (A) may be combined; and 

13 (B) shall be used to provide locally de14 signed housing assistance for low-income fami15 lies, as such term is defined in section 3(b)(2) 

16 of the United States Housing Act of 1937 (42 

17 U.S.C. 1437a(b)(2)), including— 

18 (i) services to facilitate the transition 

19 to work and self-sufficiency; and 

20 (ii) any other activity which a public 

21 housing agency is authorized to undertake 

22 pursuant to State or local law. 

23 (c) TERMS AND CONDITIONS OF ASSISTANCE.— 

24 (1) APPLICABILITY OF UNITED STATES HOUS25 ING ACT OF 1937.—Except as provided in this secVerDate Aug 31 2005 03:34 Jun 15, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3508.IS S3508

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1 tion, the United States Housing Act of 1937 (42 

2 U.S.C. 1437 et seq.) shall not be applicable to any 

3 public housing agency participating in the Moving to 

4 Work Charter program established under this sec5 tion. 

6 (2) APPLICABLE 1937 ACT PROVISIONS.—The 

7 following provisions of the United States Housing 

8 Act of 1937 (42 U.S.C. 1437 et seq.) are applicable 

9 to any public housing agency participating in the 

10 Moving to Work Charter program established under 

11 this section: 

12 (A) Subsections (a) and (b) of section 12 

13 (42 U.S.C. 1437j(a) and (b)) shall apply to 

14 housing assisted under a charter contract, other 

15 than housing assisted solely due to occupancy 

16 by families receiving tenant based rental assist17 ance. 

18 (B) Section 18 (42 U.S.C. 1437p) shall 

19 continue to apply to public housing developed 

20 under such Act notwithstanding any use of the 

21 housing under a charter contract. 

22 (3) CHARTER CONTRACT TERMS.—A charter 

23 contract shall provide that a public housing agen24 cy— 

25 (A) may— 


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1 (i) combine assistance received under 

2 sections 8 and 9 of the United States 

3 Housing Act of 1937 (42 U.S.C. 1437f 

4 and 1437g), as described in subsection 

5 (b)(3); and 

6 (ii) use such assistance to provide 

7 housing assistance and related services for 

8 activities authorized by this section, includ9 ing those activities authorized by sections 

10 8 and 9 of such Act; 

11 (B) certify that in preparing its application 

12 for participation in the Moving to Work Charter 

13 program established under this section, such 

14 agency has— 

15 (i) provided for citizen participation 

16 through a public hearing and, if appro17 priate, other means; and 

18 (ii) taken into account comments from 

19 the public hearing and any other public 

20 comments on the proposed activities under 

21 this Act, including comments from current 

22 and prospective residents who would be af23 fected by such contract; 

24 (C) shall ensure that at least 75 percent of 

25 the families assisted under a charter contract 


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1 shall be, at the time of such families entry into 

2 the Moving to Work Charter program, very low3 income families, as such term is defined in sec4 tion 3(b)(2) of the United States Housing Act 

5 of 1937 (42 U.S.C. 1437a(b)(2)); 

6 (D) shall establish a reasonable rent policy, 

7 which shall— 

8 (i) be designed to encourage employ9 ment, self-sufficiency, and homeownership 

10 by participating families, consistent with 

11 the purpose of this Act; 

12 (ii) include transition and hardship 

13 provisions; 

14 (iii) be included in the annual plan of 

15 such agency; and 

16 (iv) be subject to the opportunities for 

17 public participation described in subsection 

18 (e)(1)(D); 

19 (E) shall continue to assist not less than 

20 substantially the same total number of low-in21 come families as would have been served had 

22 such agency not entered into a such contract; 

23 (F) shall maintain a comparable mix of 

24 families (by family size) as would have been 


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1 provided had the agency not entered into such 

2 contract; 

3 (G) shall ensure that housing assisted 

4 under such contract meets housing quality 

5 standards established or approved by the Sec6 retary; 

7 (H) shall receive training and technical as8 sistance, upon request by such agency, to assist 

9 with the design and implementation of the ac10 tivities described under this Act; 

11 (I) shall receive an amount of assistance 

12 under sections 8 and 9 of the United States 

13 Housing Act of 1937 (42 U.S.C. 1437f and 

14 1437g), that is not diminished by the participa15 tion of such agency in the Moving to Work 

16 Charter program established under this section; 

17 and 

18 (J) shall be subject to the procurement 

19 procedures described in such contract. 

20 (d) SELECTION.—In selecting among applications to 

21 participate in the Moving to Work Charter program estab22 lished under this section, the Secretary shall consider— 

23 (1) the potential of each agency to plan and 

24 carry out activities under such program; 


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1 (2) the relative performance by an agency 

2 under section 6(j) of the United States Housing Act 

3 of 1937 (42 U.S.C. 1437d(j)); 

4 (3) the need for a diversity of participants in 

5 terms of size, location, and type of agency; and 

6 (4) any other appropriate factor as determined 

7 by the Secretary. 

8 (e) CHARTER REPORT.— 

9 (1) CONTENTS.— 

10 (A) IN GENERAL.—Notwithstanding any 

11 other provision of law, and in place of all other 

12 planning and reporting requirements otherwise 

13 required, each public housing agency that is a 

14 party to a charter contract shall submit to the 

15 Secretary, on an annual basis, a single charter 

16 report, in a form and at a time specified by the 

17 Secretary. 

18 (B) SOLE MEANS OF REPORTING.—A char19 ter report submitted under subparagraph (A) 

20 shall be the sole means by which a public hous21 ing agency shall be required to provide informa22 tion to the Secretary on the activities assisted 

23 under this section during a fiscal year, unless 

24 the Secretary has reason to believe that such 


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1 agency has violated the charter contract be2 tween the Secretary and such agency. 

3 (C) REQUIREMENTS.—Each charter report 

4 required under subparagraph (A) shall— 

5 (i) document the use by a public hous6 ing agency of any assistance provided 

7 under a charter contract, including appro8 priate financial statements; 

9 (ii) describe and analyze the effect of 

10 assisted activities in addressing the objec11 tives of this section; 

12 (iii) include a certification by such 

13 agency that such agency has prepared an 

14 annual plan which— 

15 (I) states the goals and objectives 

16 of that agency under the charter con17 tract for the past fiscal year; 

18 (II) describes the proposed use of 

19 assistance by that agency for activities 

20 under the charter contract for the 

21 past fiscal year; 

22 (III) explains how the proposed 

23 activities of that agency will meet the 

24 goals and objectives of that agency; 


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1 (IV) includes appropriate budget 

2 and financial statements of that agen3 cy; and 

4 (V) was prepared in accordance 

5 with a public process as described in 

6 subparagraph (D); 

7 (D) describe and document how a public 

8 housing agency has provided residents assisted 

9 under a charter contract and the wider commu10 nity with opportunities to participate in the de11 velopment of and comment on the annual plan, 

12 which shall include at least 1 public hearing; 

13 and 

14 (E) include such other information as may 

15 be required by the Secretary pursuant to sub16 section (f)(2). 

17 (2) REVIEW.—Any charter report submitted 

18 pursuant to paragraph (1) shall be deemed approved 

19 unless the Secretary, not later than 45 days after 

20 the date of submission of such report, issues a writ21 ten disapproval because— 

22 (A) the Secretary reasonably determines, 

23 based on information contained in the report 

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1 ance with the provisions of this section or other 

2 applicable law; or 

3 (B) such report is inconsistent with other 

4 reliable information available to the Secretary. 

5 (f) RECORDS AND AUDITS.— 

6 (1) KEEPING OF RECORDS.—Each public hous7 ing agency shall keep such records as the Secretary 

8 may prescribe as reasonably necessary— 

9 (A) to disclose the amounts and the dis10 position of amounts under the Moving to Work 

11 Charter program established under this section; 

12 (B) to ensure compliance with the require13 ments of this section; and 

14 (C) to measure performance. 

15 (2) ACCESS TO DOCUMENTS BY THE SEC16 RETARY.— 

17 (A) IN GENERAL.—The Secretary shall 

18 have access for the purpose of audit and exam19 ination to any books, documents, papers, and 

20 records that are pertinent to assistance in con21 nection with, and the requirements of, this sec22 tion. 

23 (B) LIMITATION.—Access by the Secretary 

24 described under subparagraph (A) shall be lim25 ited to information obtained solely through the 


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1 annual charter report submitted by a public 

2 housing agency under subsection (e), unless the 

3 Secretary has reason to believe that such agen4 cy is not in compliance with the charter con5 tract between the Secretary and such agency. 

6 (3) ACCESS TO DOCUMENTS BY THE COMP7 TROLLER GENERAL.—The Comptroller General of 

8 the United States, or any duly authorized represent9 ative of the Comptroller General, shall have access 

10 for the purpose of audit and examination to any 

11 books, documents, papers, and records that are per12 tinent to assistance in connection with, and the re13 quirements of the Moving to Work Charter program 

14 established under this section. 

15 (g) PROCUREMENT PREEMPTION.— 

16 (1) IN GENERAL.—Any State or local law which 

17 imposes procedures or standards for procurement 

18 which conflict with or are more burdensome than ap19 plicable Federal procurement requirements shall not 

20 apply to any public housing agency under the Mov21 ing to Work Charter program established under this 

22 section. 

23 (2) REDUCTION OF ADMINISTRATIVE BUR24 DENS.—The Secretary may approve procurement 

25 procedures for public housing agencies participating 


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1 in the Moving to Work Charter program established 

2 under this section that reduce administrative bur3 dens of procurement requirements imposed by Fed4 eral law. 

5 (h) SUBSEQUENT LAWS PREEMPTED.—A public 

6 housing agency participating in the Moving to Work Char7 ter program established under this section shall not be 

8 subject to any provision of law which conflicts with the 

9 provisions of this section and which is enacted subsequent 

10 to the date of execution of such agency’s charter contract 

11 or Moving to Work program agreement, as described in 

12 subsection (i), unless such law expressly provides for such 

13 laws application to public housing agencies subject to this 

14 section. 

15 (i) EXISTING AGREEMENTS.—Notwithstanding any16 thing in this section or any other provision of law, any 

17 public housing agency which has an existing Moving to 

18 Work program agreement with the Secretary pursuant to 

19 section 204 of the Departments of Veterans Affairs and 

20 Housing and Urban Development, and Independent Agen21 cies Appropriations Act, 1996 (Public Law 104–134; 110 

22 Stat. 1321–281) and which is not in default thereof, may, 

23 at the option of such agency— 

24 (1) continue to operate under the terms and 

25 conditions of such agreement notwithstanding any 


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1 limitation on the terms contained in such contract; 

2 or 

3 (2) at any time, enter into a charter contract 

4 with the Secretary on terms and conditions which 

5 are not less favorable to the agency than such exist6 ing agreement. 

7 (j) PUBLIC HOUSING AGENCY EVALUATION.— 

8 (1) IN GENERAL.—By the end of fiscal year 

9 2007, the Secretary shall appoint a Federal advisory 

10 committee consisting of public housing agencies with 

11 charter contracts, public housing industry organiza12 tions, resident organizations, other public housing 

13 and section 8 voucher stakeholders, and experts on 

14 accreditation systems in similar fields, to assess and 

15 develop a demonstration program to test standards, 

16 criteria, and practices for a national public housing 

17 agency accreditation system or other evaluation sys18 tem. 

19 (2) REPORT.—Not later than the end of fiscal 

20 year 2009, the committee established under para21 graph (1) and the Secretary shall provide a report 

22 and recommendations to Congress with respect to 

23 the establishment of a national public housing agen24 cy accreditation system. 

Æ 


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