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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1851 Referred in Senate (RFS)]

  1st Session
                                H. R. 1851

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 16, 2007

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

_______________________________________________________________________

                                 AN ACT

 
  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Section 8 Voucher Reform Act of 
2007''.

SEC. 2. INSPECTION OF DWELLING UNITS.

    (a) In General.--Section 8(o)(8) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(8)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following new subparagraph:
                    ``(A) Initial inspection.--
                            ``(i) In general.--For each dwelling unit 
                        for which a housing assistance payment contract 
                        is established under this subsection, the 
                        public housing agency (or other entity pursuant 
                        to paragraph (11)) shall inspect the unit 
                        before any assistance payment is made to 
                        determine whether the dwelling unit meets the 
                        housing quality standards under subparagraph 
                        (B), except as provided in clause (ii) or (iii) 
                        of this subparagraph.
                            ``(ii) Correction of non-life threatening 
                        conditions.--In the case of any dwelling unit 
                        that is determined, pursuant to an inspection 
                        under clause (i), not to meet the housing 
                        quality standards under subparagraph (B), 
                        assistance payments may be made for the unit 
                        notwithstanding subparagraph (C) if failure to 
                        meet such standards is a result only of non-
                        life threatening conditions. A public housing 
                        agency making assistance payments pursuant to 
                        this clause for a dwelling unit shall, 30 days 
                        after the beginning of the period for which 
                        such payments are made, suspend any assistance 
                        payments for the unit if any deficiency 
                        resulting in noncompliance with the housing 
                        quality standards has not been corrected by 
                        such time, and may not resume such payments 
                        until each such deficiency has been corrected.
                            ``(iii) Projects receiving certain federal 
                        housing subsidies.--In the case of any property 
                        that within the previous 12 months has been 
                        determined to meet housing quality and safety 
                        standards under any Federal housing program 
                        inspection standard, including the program 
                        under section 42 of the Internal Revenue Code 
                        of 1986 or under subtitle A of title II of the 
                        Cranston Gonzalez National Affordable Housing 
                        Act of 1990, a public housing agency may 
                        authorize occupancy before the inspection under 
                        clause (i) has been completed, and may make 
                        assistance payments retroactive to the 
                        beginning of the lease term after the unit has 
                        been determined pursuant to an inspection under 
                        clause (i) to meet the housing quality 
                        standards under subparagraph (B).'';
            (2) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) Biennial inspections.--
                            ``(i) Requirement.--Each public housing 
                        agency providing assistance under this 
                        subsection (or other entity, as provided in 
                        paragraph (11)) shall, for each assisted 
                        dwelling unit, make inspections not less often 
                        than biennially during the term of the housing 
                        assistance payments contract for the unit to 
                        determine whether the unit is maintained in 
                        accordance with the requirements under 
                        subparagraph (A). The agency (or other entity) 
                        shall retain the records of the inspection for 
                        a reasonable time and shall make the records 
                        available upon request to the Secretary, the 
                        Inspector General for the Department of Housing 
                        and Urban Development, and any auditor 
                        conducting an audit under section 5(h).
                            ``(ii) Sufficient inspection.--An 
                        inspection of a property shall be sufficient to 
                        comply with the inspection requirement under 
                        clause (i) if--
                                    ``(I) the inspection was conducted 
                                pursuant to requirements under a 
                                Federal, State, or local housing 
                                assistance program (including the HOME 
                                investment partnerships program under 
                                title II of the Cranston-Gonzalez 
                                National Affordable Housing Act (42 
                                U.S.C. 12721 et seq.)); and
                                    ``(II) pursuant to such inspection, 
                                the property was determined to meet the 
                                standards or requirements regarding 
                                housing quality or safety applicable to 
                                units assisted under such program, and, 
                                if a non-Federal standard was used, the 
                                public housing agency has certified to 
                                the Secretary that such standards or 
                                requirements provide the same 
                                protection to occupants of dwelling 
                                units meeting such standards or 
                                requirements as, or greater protection 
                                than, the housing quality standards 
                                under subparagraph (B).''; and
            (3) by redesignating subparagraph (E) as subparagraph (G);
            (4) by inserting after subparagraph (D) the following new 
        subparagraphs:
                    ``(E) Interim inspections.--Upon notification to 
                the public housing agency, by a family on whose behalf 
                tenant-based rental assistance is provided under this 
                subsection or by a government official, that the 
                dwelling unit for which such assistance is provided 
                does not comply with the housing quality standards 
                under subparagraph (B), the agency shall inspect the 
                dwelling unit--
                            ``(i) in the case of any condition that is 
                        life-threatening, within 24 hours after receipt 
                        of such notice; and
                            ``(ii) in the case of any condition that is 
                        not life-threatening, within 15 days after 
                        receipt of such notice.
                    ``(F) Enforcement of housing quality standards.--
                            ``(i) Determination of noncompliance.--A 
                        dwelling unit that is covered by a housing 
                        assistance payments contract under this 
                        subsection shall be considered, for purposes of 
                        this subparagraph, to be in noncompliance with 
                        the housing quality standards under 
                        subparagraph (B) if--
                                    ``(I) the public housing agency or 
                                an inspector authorized by the State or 
                                unit of local government determines 
                                upon inspection of the unit that the 
                                unit fails to comply with such 
                                standards;
                                    ``(II) the agency or inspector 
                                notifies the owner of the unit in 
                                writing of such failure to comply; and
                                    ``(III) the failure to comply is 
                                not corrected--
                                            ``(aa) in the case of any 
                                        such failure that is a result 
                                        of life-threatening conditions, 
                                        within 24 hours after receipt 
                                        of such notice; and
                                            ``(bb) in the case of any 
                                        such failure that is a result 
                                        of non-life threatening 
                                        conditions, within 30 days 
                                        after receipt of such notice or 
                                        such other reasonable period as 
                                        the public housing agency may 
                                        establish.
                            ``(ii) Withholding of assistance amounts.--
                        The public housing agency shall withhold all of 
                        the assistance amounts under this subsection 
                        with respect to a dwelling unit that is in 
                        noncompliance with housing quality standards 
                        under subparagraph (B). Upon completion of 
                        repairs by the public housing agency or the 
                        owner sufficient so that the dwelling unit 
                        complies with such housing quality standards, 
                        the agency shall recommence payments under the 
                        housing assistance payments contract to the 
                        owner of the dwelling unit.
                            ``(iii) Use of withheld assistance to pay 
                        for repairs.--The public housing agency may use 
                        such amounts withheld to make repairs to the 
                        dwelling unit or to contract to have repairs 
                        made, except that a contract to make repairs 
                        may not be entered into with the inspector for 
                        the dwelling unit referred to in clause (i)(I).
                            ``(iv) Protection of tenants.--An owner of 
                        a dwelling unit may not terminate the tenancy 
                        of any tenant or refuse to renew a lease for 
                        such unit because of the withholding of 
                        assistance pursuant to this subparagraph. 
                        During the period that assistance is withheld 
                        pursuant to this subparagraph, the tenant may 
                        terminate the tenancy by notifying the owner.
                            ``(v) Termination of lease or assistance 
                        payments contract.--If assistance amounts under 
                        this section for a dwelling unit are withheld 
                        pursuant to clause (ii) and the owner does not 
                        correct the noncompliance within 60 days after 
                        the effective date of the determination of 
                        noncompliance under clause (i), or such other 
                        reasonable period as the public housing agency 
                        may establish, and the agency does not use its 
                        authority under clause (iii), the agency shall 
                        terminate the housing assistance payments 
                        contract for the dwelling unit.
                            ``(vi) Relocation.--If the public housing 
                        agency terminates the housing assistance 
                        payments contract for a dwelling unit, the 
                        lease for any family residing in that unit 
                        shall terminate and the family may remain in 
                        the unit subject to a new lease as an 
                        unassisted family. The agency shall provide the 
                        family residing in such a dwelling unit a 
                        period of 90 days, beginning upon termination 
                        of the contract, to lease a new residence to 
                        assist with the tenant-based rental assistance 
                        made available under this section for the 
                        family. If the family is unable to lease such a 
                        new residence during such period, the public 
                        housing agency shall extend the period during 
                        which the family may lease a new residence to 
                        be assisted with such assistance or provide 
                        such family a preference for occupancy in a 
                        dwelling unit of public housing owned or 
                        operated by the agency that first becomes 
                        available for occupancy after the expiration of 
                        such period. The agency shall provide 
                        reasonable assistance to the family in finding 
                        a new residence, including use of two months of 
                        any assistance amounts withheld pursuant to 
                        clause (ii) for costs associated with 
                        relocation of the family to a new residence.
                            ``(vii) Limitation of liability of public 
                        housing agencies.--A public housing agency that 
                        uses its authority under clause (iii) shall 
                        not, if the agency accomplishes the work 
                        through a contractor that is licensed, bonded, 
                        and insured in amounts and with coverage as 
                        required by the Secretary, be liable for any 
                        injury or damages that may result to persons or 
                        to any property owned by the tenant or owner.
                            ``(viii) Tenant-caused damages.--If a 
                        public housing agency determines that any 
                        damage to a dwelling unit that results in a 
                        failure of the dwelling unit to comply with 
                        housing quality standards under subparagraph 
                        (B), other than any damage resulting from 
                        ordinary use, was caused by the tenant, any 
                        member of the tenant's household, or any guest 
                        or other person under the tenant's control, the 
                        agency may, in the discretion of the agency, 
                        waive the applicability of this subparagraph, 
                        except that this clause shall not exonerate a 
                        tenant from any liability otherwise existing 
                        under applicable law for damages to the 
                        premises caused by such tenant.
                            ``(ix) Applicability.--This subparagraph 
                        shall apply to any dwelling unit for which a 
                        housing assistance payments contract is entered 
                        into or renewed after the date of the 
                        effectiveness of the regulations implementing 
                        this subparagraph.''.
    (b) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to carry out the amendment made 
by subsection (a)(3) not later than the expiration of the 12-month 
period beginning upon the date of the enactment of this Act. Such 
regulations shall take effect not later than the expiration of the 90-
day period beginning upon such issuance. This subsection shall take 
effect upon enactment of this Act.

SEC. 3. RENT REFORM AND INCOME REVIEWS.

    (a) Rent for Public Housing and Section 8 Programs.--Section 3 of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by inserting ``Low-income 
                occupancy requirement and rental payments.--'' after 
                ``(1)'';
                    (B) in paragraph (1)--
                            (i) by striking ``paragraph (2)'' and 
                        inserting ``paragraphs (2) and (3)''; and
                            (ii) by striking ``paragraph (3)'' and 
                        inserting ``paragraph (4)'';
                    (C) in paragraph (2)(A)(i), by striking ``paragraph 
                (3)'' and inserting ``paragraph (4)'';
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively;
                    (E) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) PHA authority to establish alternative rents.--
                    ``(A) Rent flexibility for public housing and 
                voucher program.--Subject to the requirements under 
                subparagraph (B), a public housing agency may establish 
                for public housing and for families on whose behalf 
                assistance is provided under the program for tenant-
                based voucher assistance under section 8(o)--
                            ``(i) a tenant rent structure in which--
                                    ``(I) the public housing agency 
                                establishes, based on the rental value 
                                of the unit, as determined by the 
                                public housing agency--
                                            ``(aa) a ceiling rent for 
                                        each dwelling unit that it owns 
                                        and operates; and
                                            ``(bb) a ceiling on the 
                                        amount of the tenant 
                                        contribution toward rent 
                                        required of a family provided 
                                        tenant-based assistance; and
                                    ``(II) such ceiling rent and tenant 
                                contribution are adjusted periodically 
                                on the basis of an inflation index or a 
                                recalculation of the rental value of 
                                the unit (which may be recalculated by 
                                unit or by building);
                            ``(ii) an income-tiered tenant rent 
                        structure in which the amount of rent a family 
                        shall pay is set and distributed on the basis 
                        of broad tiers of income and such tiers and 
                        rents are adjusted on the basis of an annual 
                        cost index except that families entering public 
                        housing shall not be offered a rent lower than 
                        the rent corresponding to their income tier; or
                            ``(iii) a tenant rent structure in which 
                        the amount of rent a family shall pay is based 
                        on a percentage of family income, except that 
                        lower percentages may apply only with respect 
                        to earned income; such a rent structure may 
                        provide for an amount of rent based on a 
                        calculation of earned income that provides for 
                        disregard of a higher percentage or higher 
                        dollar amount, or both, than provided for in 
                        paragraph (8)(B).
                    ``(B) Limitation.--Notwithstanding the authority 
                provided under subparagraph (A), the amount paid for 
                rent (including the amount allowed for tenant-paid 
                utilities) by any family for a dwelling unit in public 
                housing or for rental of a dwelling unit for which 
                tenant-based voucher assistance under section 8(o) is 
                provided may not exceed the amount determined under 
                subsection (a)(1) of this section or section 8(o), 
                respectively. The Secretary shall issue regulations and 
                establish procedures to ensure compliance with this 
                subparagraph.
                    ``(C) Elderly families and disabled families.--
                Notwithstanding any other provision of this Act, this 
                paragraph shall not apply to elderly families and 
                disabled families.''; and
                    (F) by adding at the end the following new 
                paragraphs:
            ``(7) Reviews of family income.--
                    ``(A) Frequency.--Reviews of family income for 
                purposes of this section shall be made--
                            ``(i) in the case of all families, upon the 
                        initial provision of housing assistance for the 
                        family;
                            ``(ii) annually thereafter, except as 
                        provided in subparagraph (B)(i);
                            ``(iii) upon the request of the family, at 
                        any time the income or deductions (under 
                        subsection (b)(5)) of the family change by an 
                        amount that is estimated to result in a 
                        decrease of $1,500 (or such lower amount as the 
                        public housing agency may, at the option of the 
                        agency or owner, establish) or more in annual 
                        adjusted income; and
                            ``(iv) at any time the income or deductions 
                        (under subsection (b)(5)) of the family change 
                        by an amount that is estimated to result in an 
                        increase of $1,500 or more in annual adjusted 
                        income, except that any increase in the earned 
                        income of a family shall not be considered for 
                        purposes of this clause (except that earned 
                        income may be considered if the increase 
                        corresponds to previous decreases under clause 
                        (iii)), except that a public housing agency or 
                        owner may elect not to conduct such review in 
                        the last three months of a certification 
                        period.
                    ``(B) Fixed-income families.--
                            ``(i) Self certification and 3-year 
                        review.--In the case of any family described in 
                        clause (ii), after the initial review of the 
                        family's income pursuant to subparagraph 
                        (A)(i), the public housing agency or owner 
                        shall not be required to conduct a review of 
                        the family's income pursuant to subparagraph 
                        (A)(ii) for any year for which such family 
                        certifies, in accordance with such requirements 
                        as the Secretary shall establish, that the 
                        income of the family meets the requirements of 
                        clause (ii) of this subparagraph, except that 
                        the public housing agency or owner shall 
                        conduct a review of each such family's income 
                        not less than once every 3 years.
                            ``(ii) Eligible families.--A family 
                        described in this clause is a family who has an 
                        income, as of the most recent review pursuant 
                        to subparagraph (A) or clause (i) of this 
                        subparagraph, of which 90 percent or more 
                        consists of fixed income, as such term is 
                        defined in clause (iii).
                            ``(iii) Fixed income.--For purposes of this 
                        subparagraph, the term `fixed income' includes 
                        income from--
                                    ``(I) the supplemental security 
                                income program under title XVI of the 
                                Social Security Act, including 
                                supplementary payments pursuant to an 
                                agreement for Federal administration 
                                under section 1616(a) of the Social 
                                Security Act and payments pursuant to 
                                an agreement entered into under section 
                                212(b) of Public Law 93-66;
                                    ``(II) Social Security payments;
                                    ``(III) Federal, State, local and 
                                private pension plans; and
                                    ``(IV) other periodic payments 
                                received from annuities, insurance 
                                policies, retirement funds, disability 
                                or death benefits, and other similar 
                                types of periodic receipts.
                    ``(C) In general.--Reviews of family income for 
                purposes of this section shall be subject to the 
                provisions of section 904 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988.
            ``(8) Calculation of income.--
                    ``(A) Use of prior year's income.--Except as 
                otherwise provided in this paragraph, in determining 
                the income of a family for a year, a public housing 
                agency or owner may use the income of the family as 
                determined by the agency or owner for the preceding 
                year, taking into consideration any redetermination of 
                income during such prior year pursuant to clause (iii) 
                or (iv) of paragraph (7)(A).
                    ``(B) Earned income.--For purposes of this section, 
                the earned income of a family for a year shall be the 
                amount of earned income by the family in the prior year 
                minus an amount equal to 10 percent of the lesser of 
                such prior year's earned income or $10,000, except that 
                the income of a family for purposes of section 16 
                (relating to eligibility for assisted housing and 
                income mix) shall be determined without regard to any 
                reduction under this subparagraph.
                    ``(C) Inflationary adjustment for fixed income 
                families.--If, for any year, a public housing agency or 
                owner determines the income for any family described in 
                paragraph (7)(B)(ii), or the amount of fixed income of 
                any other family, based on the prior year's income or 
                fixed income, respectively, pursuant to subparagraph 
                (A), such prior year's income or fixed income, 
                respectively, shall be adjusted by applying an 
                inflationary factor as the Secretary shall, by 
                regulation, establish.
                    ``(D) Other income.--If, for any year, a public 
                housing agency or owner determines the income for any 
                family based on the prior year's income, with respect 
                to prior year calculations of types of income not 
                subject to subparagraph (B), a public housing agency or 
                owner may make other adjustments as it considers 
                appropriate to reflect current income.
                    ``(E) Safe harbor.--A public housing agency or 
                owner may, to the extent such information is available 
                to the public housing agency or owner, determine the 
                family's income for purposes of this section based on 
                timely income determinations made for purposes of other 
                means-tested Federal public assistance programs 
                (including the program for block grants to States for 
                temporary assistance for needy families under part A of 
                title IV of the Social Security Act, a program for 
                medicaid assistance under a State plan approved under 
                title XIX of the Social Security Act, and the food 
                stamp program as defined in section 3(h) of the Food 
                Stamp Act of 1977). The Secretary shall, in 
                consultation with other appropriate Federal agencies, 
                develop procedures to enable public housing agencies 
                and owners to have access to such income determinations 
                made by other Federal programs.
                    ``(F) PHA and owner compliance.--A public housing 
                agency or owner may not be considered to fail to comply 
                with this paragraph or paragraph (7) due solely to any 
                de minimus errors made by the agency or owner in 
                calculating family incomes.'';
            (2) by striking subsections (d) and (e); and
            (3) by redesignating subsection (f) as subsection (d).
    (b) Income.--Section 3(b) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)) is amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) Income.--The term `income' means, with respect to a 
        family, income received from all sources by each member of the 
        household who is 18 years of age or older or is the head of 
        household or spouse of the head of the household, plus unearned 
        income by or on behalf of each dependent who is less than 18 
        years of age, as determined in accordance with criteria 
        prescribed by the Secretary, in consultation with the Secretary 
        of Agriculture, subject to the following requirements:
                    ``(A) Included amounts.--Such term includes 
                recurring gifts and receipts, actual income from 
                assets, and profit or loss from a business.
                    ``(B) Excluded amounts.--Such term does not 
                include--
                            ``(i) any imputed return on assets; and
                            ``(ii) any amounts that would be eligible 
                        for exclusion under section 1613(a)(7) of the 
                        Social Security Act (42 U.S.C. 1382b(a)(7)).
                    ``(C) Earned income of students.--Such term does 
                not include earned income of any dependent earned 
                during any period that such dependent is attending 
                school on a full-time basis or any grant-in-aid or 
                scholarship amounts related to such attendance used for 
                the cost of tuition or books.
                    ``(D) Educational savings accounts.--Income shall 
                be determined without regard to any amounts in or from, 
                or any benefits from, any Coverdell education savings 
                account under section 530 of the Internal Revenue Code 
                of 1986 or any qualified tuition program under section 
                529 of such Code.
                    ``(E) Other exclusions.--Such term shall not 
                include other exclusions from income as are established 
                by the Secretary or any amount required by Federal law 
                to be excluded from consideration as income. The 
                Secretary may not require a public housing agency or 
                owner to maintain records of any amounts excluded from 
                income pursuant to this subparagraph.''; and
            (2) by striking paragraph (5) and inserting the following 
        new paragraph:
            ``(5) Adjusted income.--The term `adjusted income' means, 
        with respect to a family, the amount (as determined by the 
        public housing agency or owner) of the income of the members of 
        the family residing in a dwelling unit or the persons on a 
        lease, after any deductions from income as follows:
                    ``(A) Elderly and disabled families.--$725 in the 
                case of any family that is an elderly family or a 
                disabled family.
                    ``(B) Dependents.--In the case of any family that 
                includes a member or members who--
                            ``(i) are less than 18 years of age or 
                        attending school or vocational training on a 
                        full-time basis; or
                            ``(ii) is a person with disabilities who is 
                        18 years of age or older and resides in the 
                        household,
                $500 for each such member.
                    ``(C) Health and medical expenses.--The amount, if 
                any, by which 10 percent of annual family income is 
                exceeded by the sum of--
                            ``(i) in the case of any elderly or 
                        disabled family, any unreimbursed health and 
                        medical care expenses; and
                            ``(ii) any unreimbursed reasonable 
                        attendant care and auxiliary apparatus expenses 
                        for each handicapped member of the family, to 
                        the extent necessary to enable any member of 
                        such family to be employed.
                    ``(D) Permissive deductions.--Such additional 
                deductions as a public housing agency may, at its 
                discretion, establish, except that the Secretary shall 
                establish procedures to ensure that such deductions do 
                not increase Federal expenditures.
        The Secretary shall annually adjust the amounts of the 
        exclusions under subparagraphs (A) and (B), as such amounts may 
        have been previously adjusted, by applying an inflationary 
        factor as the Secretary shall, by regulation, establish. If the 
        dollar amount of any such exclusion determined for any year by 
        applying such inflationary factor is not a multiple of $25, the 
        Secretary shall round such amount to the next lowest multiple 
        of $25.''.
    (c) Housing Choice Voucher Program.--Paragraph (5) of section 8(o) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is 
amended--
            (1) in the paragraph heading, by striking ``Annual review'' 
        and inserting ``Reviews'';
            (2) in subparagraph (A)--
                    (A) by striking ``the provisions of'' and inserting 
                ``paragraphs (7) and (8) of section 3(a) and to''; and
                    (B) by striking ``and shall be conducted upon the 
                initial provision of housing assistance for the family 
                and thereafter not less than annually''; and
            (3) in subparagraph (B), by striking the second sentence.
    (d) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by 
striking ``income'' each place such term appears and inserting ``annual 
adjusted income''.
    (e) Project-Based Housing.--Paragraph (3) of section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by 
striking the last sentence.
    (f) Impact on Public Housing Revenues.--
            (1) Interaction with asset management rule.--If the 
        Secretary of Housing and Urban Development determines that the 
        application of the amendments made by this section results in a 
        reduction in the rental income of a public housing agency that 
        is not de minimus during the period that the operating formula 
        income is frozen at a level that does not fully reflect the 
        changes made by such amendments, the Secretary shall make 
        appropriate adjustments in the formula income of the agency.
            (2) HUD reports on public housing revenue impact.--For each 
        of fiscal years 2008 and 2009, the Secretary of Housing and 
        Urban Development shall submit a report to Congress identifying 
        and calculating the impact of changes made by the amendments 
        made by this section on the revenues and costs of operating 
        public housing units.
    (g) Effective Date and Transition.--The amendments made by this 
section shall apply with respect to fiscal year 2008 and fiscal years 
thereafter.

SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS AND INCOME.

    (a) Assets.--Section 16 of the United States Housing Act of 1937 
(42 U.S.C. 1437n) is amended by inserting after subsection (d) the 
following new subsection:
    ``(e) Eligibility for Assistance Based on Assets.--
            ``(1) Limitation on assets.--Subject to paragraph (3) and 
        notwithstanding any other provision of this Act, a dwelling 
        unit assisted under this Act may not be rented and assistance 
        under this Act may not be provided, either initially or at each 
        recertification of family income, to any family--
                    ``(A) whose net family assets exceed $100,000, as 
                such amount is adjusted annually by applying an 
                inflationary factor as the Secretary considers 
                appropriate; or
                    ``(B) who has a present ownership interest in, and 
                a legal right to reside in, real property that is 
                suitable for occupancy as a residence, except that the 
                prohibition under this subparagraph shall not apply 
                to--
                            ``(i) any property for which the family is 
                        receiving assistance under this Act;
                            ``(ii) any person that is a victim of 
                        domestic violence; or
                            ``(iii) any family that is making a good 
                        faith effort to sell such property.
            ``(2) Net family assets.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `net family assets' means, for all members of 
                the household, the net cash value of all assets after 
                deducting reasonable costs that would be incurred in 
                disposing of real property, savings, stocks, bonds, and 
                other forms of capital investment. Such term does not 
                include interests in Indian trust land, equity accounts 
                in homeownership programs of the Department of Housing 
                and Urban Development, or Family Self Sufficiency 
                accounts.
                    ``(B) Exclusions.--Such term does not include--
                            ``(i) the value of personal property, 
                        except for items of personal property of 
                        significant value, as the public housing agency 
                        may determine;
                            ``(ii) the value of any retirement account;
                            ``(iii) any amounts recovered in any civil 
                        action or settlement based on a claim of 
                        malpractice, negligence, or other breach of 
                        duty owed to a member of the family and arising 
                        out of law, that resulted in a member of the 
                        family being disabled (under the meaning given 
                        such term in section 1614 of the Social 
                        Security Act (42 U.S.C. 1382c)); and
                            ``(iv) the value of any Coverdell education 
                        savings account under section 530 of the 
                        Internal Revenue Code of 1986 or any qualified 
                        tuition program under section 529 of such Code.
                    ``(C) Trust funds.--In cases where a trust fund has 
                been established and the trust is not revocable by, or 
                under the control of, any member of the family or 
                household, the value of the trust fund shall not be 
                considered an asset of a family if the fund continues 
                to be held in trust. Any income distributed from the 
                trust fund shall be considered income for purposes of 
                section 3(b) and any calculations of annual family 
                income, except in the case of medical expenses for a 
                minor.
                    ``(D) Self-certification.--A public housing agency 
                or owner may determine the net assets of a family, for 
                purposes of this section, based on the amounts reported 
                by the family at the time the agency or owner reviews 
                the family's income.
            ``(3) Compliance for public housing dwelling units.--When 
        recertifying family income with respect to families residing in 
        public housing dwelling units, a public housing agency may, in 
        the discretion of the agency and only pursuant to a policy that 
        is set forth in the public housing agency plan under section 5A 
        for the agency, choose not to enforce the limitation under 
        paragraph (1).
            ``(4) Authority to delay evictions.--In the case of a 
        family residing in a dwelling unit assisted under this Act who 
        does not comply with the limitation under paragraph (1), the 
        public housing agency or project owner may delay eviction or 
        termination of the family based on such noncompliance for a 
        period of not more than 6 months.''.
    (b) Income.--The United States Housing Act of 1937 is amended--
            (1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking 
        the first sentence and inserting the following: ``Dwelling 
        units assisted under this Act may be rented, and assistance 
        under this Act may be provided, whether initially or at time of 
        recertification, only to families who are low-income families 
        at the time such initial or continued assistance, respectively, 
        is provided, except that families residing in dwelling units as 
        of the date of the enactment of the Section 8 Voucher Reform 
        Act of 2007 that, under agreements in effect on such date of 
        enactment, may have incomes up to 95 percent of local area 
        median income shall continue to be eligible for assistance at 
        recertification as long as they continue to comply with such 
        income restrictions. When recertifying family income with 
        respect to families residing in public housing dwelling units, 
        a public housing agency may, in the discretion of the agency 
        and only pursuant to a policy that is set forth in the public 
        housing agency plan under section 5A for the agency, choose not 
        to enforce the prohibition under the preceding sentence. When 
        recertifying family income with respect to families residing in 
        dwelling units for which project-based assistance is provided, 
        a project owner may, in the owner's discretion and only 
        pursuant to a policy adopted by such owner, choose not to 
        enforce such prohibition. In the case of a family residing in a 
        dwelling unit assisted under this Act who does not comply with 
        the prohibition under the first sentence of this paragraph, the 
        public housing agency or project owner may delay eviction or 
        termination of the family based on such noncompliance for a 
        period of not more than 6 months.'';
            (2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking 
        the matter preceding subparagraph (A) and inserting the 
        following:
            ``(4) Eligible families.--Assistance under this subsection 
        may be provided, whether initially or at each recertification, 
        only pursuant to subsection (t) to a family eligible for 
        assistance under such subsection or to a family who at the time 
        of such initial or continued assistance, respectively, is a 
        low-income family that is--''; and
            (3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by striking 
        ``at the time it initially occupied such dwelling unit'' and 
        inserting ``according to the restrictions under section 
        3(a)(1)''.

SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORKING FAMILIES.

    (a) Vouchers.--Section 16(b)(1) of the United States Housing Act of 
1937 (42 U.S.C. 1437n(b)(1)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (A) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or (B)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (A) of this sentence 
        shall not apply in the case of families residing in Puerto Rico 
        or any other territory or possession of the United States''.
    (b) Public Housing.--Section 16(a)(2)(A) of the United States 
Housing Act of 1937 (42 U.S.C. 1437n(a)(2)(A)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (i) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or 
        (ii)''; and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (i) of this sentence 
        shall not apply in the case of families residing in Puerto Rico 
        or any other territory or possession of the United States''.
    (c) Project-Based Section 8 Assistance.--Section 16(c)(3) of the 
United States Housing Act of 1937 (42 U.S.C. 1437n(c)(3)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (A) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or (B)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (A) of this sentence 
        shall not apply in the case of families residing in Puerto Rico 
        or any other territory or possession of the United States''.

SEC. 6. VOUCHER RENEWAL FUNDING.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended by striking subsection (dd) and inserting 
the following new subsection:
    ``(dd) Tenant-Based Vouchers.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated, for each of fiscal years 2008 
        through 2012, such sums as may be necessary for tenant-based 
        assistance under subsection (o) for the following purposes:
                    ``(A) To renew all expiring annual contributions 
                contracts for tenant-based rental assistance.
                    ``(B) To provide tenant-based rental assistance 
                for--
                            ``(i) relocation and replacement of housing 
                        units that are demolished or disposed of 
                        pursuant to the Omnibus Consolidated 
                        Rescissions and Appropriations Act of 1996 
                        (Public Law 104-134);
                            ``(ii) conversion of section 23 projects to 
                        assistance under this section;
                            ``(iii) the family unification program 
                        under subsection (x) of this section;
                            ``(iv) relocation of witnesses in 
                        connection with efforts to combat crime in 
                        public and assisted housing pursuant to a 
                        request from a law enforcement or prosecution 
                        agency;
                            ``(v) enhanced vouchers authorized under 
                        subsection (t) of this section;
                            ``(vi) vouchers in connection with the HOPE 
                        VI program under section 24;
                            ``(vii) demolition or disposition of public 
                        housing units pursuant to section 18 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437p);
                            ``(viii) mandatory and voluntary 
                        conversions of public housing to vouchers, 
                        pursuant to sections 33 and 22 of the United 
                        States Housing Act of 1937, respectively (42 
                        U.S.C. 1437z-5, 1437t);
                            ``(ix) vouchers necessary to comply with a 
                        consent decree or court order;
                            ``(x) vouchers to replace dwelling units 
                        that cease to receive project-based assistance 
                        under subsection (b), (c), (d), (e), or (v) of 
                        this section;
                            ``(xi) relocation and replacement of public 
                        housing units that are demolished or disposed 
                        of pursuant to eminent domain, pursuant to a 
                        homeownership program, or in connection with a 
                        mixed finance development method under section 
                        35 or otherwise;
                            ``(xii) tenant protection assistance, 
                        including replacement and relocation 
                        assistance; and
                            ``(xiii) emergency voucher assistance for 
                        the protection of victims of domestic violence, 
                        dating violence, sexual assault, or stalking.
                Subject only to the availability of sufficient amounts 
                provided in appropriation Acts, the Secretary shall 
                provide tenant-based rental assistance to replace all 
                dwelling units that cease to be available as assisted 
                housing as a result of clause (i), (ii), (v), (vi), 
                (vii), (viii), (x), or (xi).
            ``(2) Allocation of renewal funding among public housing 
        agencies.--
                    ``(A) From amounts appropriated for each year 
                pursuant to paragraph (1)(A), the Secretary shall 
                provide renewal funding for each public housing 
                agency--
                            ``(i) based on leasing and cost data from 
                        the preceding calendar year, as adjusted by an 
                        annual adjustment factor to be established by 
                        the Secretary, which shall be established using 
                        the smallest geographical areas for which data 
                        on changes in rental costs are annually 
                        available;
                            ``(ii) by making any adjustments necessary 
                        to provide for the first-time renewal of 
                        vouchers funded under paragraph (1)(B) and of 
                        any incremental vouchers funded in previous 
                        years;
                            ``(iii) by making any adjustments necessary 
                        for full year funding of vouchers ported in the 
                        prior calendar year under subsection (r)(2); 
                        and
                            ``(iv) by making such other adjustments as 
                        the Secretary considers appropriate, including 
                        adjustments necessary to address changes in 
                        voucher utilization rates and voucher costs 
                        related to natural and other major disasters.
                    ``(B) Leasing and cost data.--For purposes of 
                subparagraph (A)(i), leasing and cost data shall be 
                calculated annually by using the average for the 
                preceding calendar year. Such leasing and cost data 
                shall be adjusted to include vouchers that were set 
                aside under a commitment to provide project-based 
                assistance under subsection (o)(13) and to exclude 
                amounts funded through advances under paragraph (3). 
                Such leasing and cost data shall not include funds not 
                appropriated for tenant-based assistance under section 
                8(o), unless the agency's funding was prorated in the 
                prior year and the agency used other funds to maintain 
                vouchers in use.
                    ``(C) Overleasing.--For the purpose of determining 
                allocations under subsection (A)(i), the leasing rate 
                calculated for the prior calendar year may exceed an 
                agency's authorized voucher level, except that such 
                calculation in 2009 shall not include amounts resulting 
                from a leasing rate in excess of 103 percent of an 
                agency's authorized vouchers in 2008 which results from 
                the use of accumulated amounts, as referred to in 
                paragraph (4)(A).
                    ``(D) Moving to work; housing innovation program.--
                Notwithstanding subparagraphs (A) and (B), each public 
                housing agency participating at any time in the moving 
                to work demonstration under section 204 of the 
                Departments of Veterans Affairs and Housing and Urban 
                Development, and Independent Agencies Appropriations 
                Act, 1996 (42 U.S.C. 1437f note) or in the housing 
                innovation program under section 36 of this Act shall 
                be funded pursuant to its agreement under such program 
                and shall be subject to any pro rata adjustment made 
                under subparagraph (E)(i).
                    ``(E) Pro rata allocation.--
                            ``(i) Insufficient funds.--To the extent 
                        that amounts made available for a fiscal year 
                        are not sufficient to provide each public 
                        housing agency with the full allocation for the 
                        agency determined pursuant to subparagraphs (A) 
                        and (D), the Secretary shall reduce such 
                        allocation for each agency on a pro rata basis, 
                        except that renewal funding of enhanced 
                        vouchers under section 8(t) shall not be 
                        subject to such proration.
                            ``(ii) Excess funds.--To the extent that 
                        amounts made available for a fiscal year exceed 
                        the amount necessary to provide each housing 
                        agency with the full allocation for the agency 
                        determined pursuant to subparagraphs (A) and 
                        (D), such excess amounts shall be used for the 
                        purposes specified in subparagraphs (B) and (C) 
                        of paragraph (4).
                    ``(F) Prompt funding allocation.--The Secretary 
                shall allocate all funds under this subsection for each 
                year before the latter of (i) February 15, or (ii) the 
                expiration of the 45-day period beginning upon the 
                enactment of the appropriations Act funding such 
                renewals.
            ``(3) Advances.--
                    ``(A) Authority.--During the last 3 months of each 
                calendar year, the Secretary shall provide amounts to 
                any public housing agency, at the request of the 
                agency, in an amount up to two percent of the 
                allocation for the agency for such calendar year, 
                subject to subparagraph (C).
                    ``(B) Use.--Amounts advanced under subparagraph (A) 
                may be used to pay for additional voucher costs, 
                including costs related to temporary overleasing.
                    ``(C) Use of prior year amounts.--During the last 3 
                months of a calendar year, if amounts previously 
                provided to a public housing agency for tenant-based 
                assistance for such year or for previous years remain 
                unobligated and available to the agency--
                            ``(i) the agency shall exhaust such amounts 
                        to cover any additional voucher costs under 
                        subparagraph (B) before amounts advanced under 
                        subparagraph (A) may be so used; and
                            ``(ii) the amount that may be advanced 
                        under subparagraph (A) to the agency shall be 
                        reduced by an amount equal to the total of such 
                        previously provided and unobligated amounts.
                    ``(D) Repayment.--Amounts advanced under 
                subparagraph (A) in a calendar year shall be repaid to 
                the Secretary in the subsequent calendar year by 
                reducing the amounts made available for such agency for 
                such subsequent calendar year pursuant to allocation 
                under paragraph (2) by an amount equal to the amount so 
                advanced to the agency.
            ``(4) Recapture.--
                    ``(A) In general.--The Secretary shall recapture, 
                from amounts provided under the annual contributions 
                contract for a public housing agency for a calendar 
                year, all accumulated amounts allocated under paragraph 
                (2) and from previous years that are unused by the 
                agency at the end of each calendar year except--
                            ``(i) with respect to the recapture under 
                        this subparagraph at the end of 2007, an amount 
                        equal to 12.5 percent of the amount allocated 
                        to the public housing agency for such year 
                        pursuant to paragraph (2)(A); and
                            ``(ii) with respect to the recapture under 
                        this subparagraph at the end of each of 2008, 
                        2009, 2010, and 2011, an amount equal to 5 
                        percent of such amount allocated to the agency 
                        for such year. Notwithstanding any other 
                        provision of law, each public housing agency 
                        may retain all amounts not authorized to be 
                        recaptured under this subparagraph, and may use 
                        such amounts for all authorized purposes.
                    ``(B) Reallocation.--Not later than May 1 of each 
                calendar year, the Secretary shall--
                            ``(i) calculate the aggregate unused 
                        amounts for the preceding year recaptured 
                        pursuant to subparagraph (A);
                            ``(ii) set aside and make available such 
                        amounts as the Secretary considers appropriate 
                        to reimburse public housing agencies for 
                        increased costs related to portability and 
                        family self-sufficiency activities during such 
                        year; and
                            ``(iii) reallocate all remaining amounts 
                        among public housing agencies, with priority 
                        given based on the extent to which an agency 
                        has utilized the amount allocated under 
                        paragraph (2) for the agency to serve eligible 
                        families.
                    ``(C) Use.--Amounts reallocated to a public housing 
                agency pursuant to subparagraph (B)(iii) may be used 
                only to increase voucher leasing rates as provided 
                under paragraph (2)(C).''.
    (b) Absorption of Vouchers From Other Agencies.--Section 8(r)(2) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(r)(2)) is 
amended by adding after the period at the end the following: ``The 
agency shall absorb the family into its program for voucher assistance 
under this section and shall have priority to receive additional 
funding from the Secretary for the housing assistance provided for such 
family from amounts made available pursuant to subsection 
(dd)(4)(B).''.
    (c) Vouchers for Persons With Disabilities.--The Secretary of 
Housing and Urban Development shall develop and issue, to public 
housing agencies that received voucher assistance under section 8(o) 
for non-elderly disabled families pursuant to appropriations Acts for 
fiscal years 1997 through 2002, guidance to ensure that, to the maximum 
extent practicable, such vouchers continue to be provided upon turnover 
to qualified non-elderly disabled families.

SEC. 7. ADMINISTRATIVE FEES.

    (a) In General.--Section 8(q) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(q)) is amended--
            (1) in paragraph (1), by striking subparagraphs (B) and (C) 
        and inserting the following new subparagraphs:
                    ``(B) Calculation.--The fee under this subsection 
                shall--
                            ``(i) be payable to each public housing 
                        agency for each month for which a dwelling unit 
                        is covered by an assistance contract;
                            ``(ii) be based on the per-unit fee payable 
                        to the agency in fiscal year 2003, updated for 
                        each subsequent year as specified in subsection 
                        (iv);
                            ``(iii) include an amount for the cost of 
                        issuing voucher to new participants;
                            ``(iv) be updated each year using an index 
                        of changes in wage data or other objectively 
                        measurable data that reflect the costs of 
                        administering the program for such assistance, 
                        as determined by the Secretary; and
                            ``(v) include an amount for the cost of 
                        family self-sufficiency coordinators, as 
                        provided in section 23(h)(1).
                    ``(C) Publication.--The Secretary shall cause to be 
                published in the Federal Register the fee rate for each 
                geographic area.''; and
            (2) in paragraph (4), by striking ``1999'' and inserting 
        ``2007''.
    (b) Administrative Fees for Family Self-Sufficiency Program 
Costs.--Subsection (h) of section 23 of the United States Housing Act 
of 1937 (42 U.S.C. 1437u(h)) is amended by striking paragraph (1) and 
inserting the following new paragraph:
            ``(1) Section 8 fees.--
                    ``(A) In general.--The Secretary shall establish a 
                fee under section 8(q) for the costs incurred in 
                administering the self-sufficiency program under this 
                section to assist families receiving voucher assistance 
                through section 8(o).
                    ``(B) Eligibility for fee.--The fee shall provide 
                funding for family self-sufficiency coordinators as 
                follows:
                            ``(i) Base fee.--A public housing agency 
                        serving 25 or more participants in the family 
                        self-sufficiency program under this section 
                        shall receive a fee equal to the costs of 
                        employing one full-time family self-sufficiency 
                        coordinator. An agency serving fewer than 25 
                        such participants shall receive a prorated fee.
                            ``(ii) Additional fee.--An agency that 
                        meets minimum performance standards shall 
                        receive an additional fee sufficient to cover 
                        the costs of employing a second family self-
                        sufficiency coordinator if the agency has 75 or 
                        more participating families, and a third such 
                        coordinator if it has 125 or more participating 
                        families.
                            ``(iii) Previously funded agencies.--An 
                        agency that received funding from the 
                        Department of Housing and Urban Development for 
                        more than three such coordinators in any of 
                        fiscal years 1998 through 2007 shall receive 
                        funding for the highest number of coordinators 
                        funded in a single fiscal year during that 
                        period, provided they meet applicable size and 
                        performance standards.
                            ``(iv) Initial year.--For the first year in 
                        which a public housing agency exercises its 
                        right to develop an family self-sufficiency 
                        program for its residents, it shall be entitled 
                        to funding to cover the costs of up to one 
                        family self-sufficiency coordinator, based on 
                        the size specified in its action plan for such 
                        program.
                            ``(v) State and regional agencies.--For 
                        purposes of calculating the family self-
                        sufficiency portion of the administrative fee 
                        under this subparagraph, each administratively 
                        distinct part of a State or regional public 
                        housing agency shall be treated as a separate 
                        agency.
                            ``(vi) Determination of number of 
                        coordinators.--In determining whether a public 
                        housing agency meets a specific threshold for 
                        funding pursuant to this paragraph, the number 
                        of participants being served by the agency in 
                        its family self-sufficiency program shall be 
                        considered to be the average number of families 
                        enrolled in such agency's program during the 
                        course of the most recent fiscal year for which 
                        the Department of Housing and Urban Development 
                        has data.
                    ``(C) Proration.--If insufficient funds are 
                available in any fiscal year to fund all of the 
                coordinators authorized under this section, the first 
                priority shall be given to funding one coordinator at 
                each agency with an existing family self-sufficiency 
                program. The remaining funds shall be prorated based on 
                the number of remaining coordinators to which each 
                agency is entitled under this subparagraph.
                    ``(D) Recapture.--Any fees allocated under this 
                subparagraph by the Secretary in a fiscal year that 
                have not been spent by the end of the subsequent fiscal 
                year shall be recaptured by the Secretary and shall be 
                available for providing additional fees pursuant to 
                subparagraph (B)(ii).
                    ``(E) Performance standards.--Within six months 
                after the date of the enactment of this paragraph, the 
                Secretary shall publish a proposed rule specifying the 
                performance standards applicable to funding under 
                clauses (ii) and (iii) of subparagraph (B). Such 
                standards shall include requirements applicable to the 
                leveraging of in-kind services and other resources to 
                support the goals of the family self-sufficiency 
                program.
                    ``(F) Data collection.--Public housing agencies 
                receiving funding under this paragraph shall collect 
                and report to the Secretary, in such manner as the 
                Secretary shall require, information on the performance 
                of their family self-sufficiency programs.
                    ``(G) Evaluation.--The Secretary shall conduct a 
                formal and scientific evaluation of the effectiveness 
                of well-run family self-sufficiency programs, using 
                random assignment of participants to the extent 
                practicable. Not later than the expiration of the 4-
                year period beginning upon the enactment of this 
                paragraph, the Secretary shall submit an interim 
                evaluation report to the Congress. Not later than the 
                expiration of the 8-year period beginning upon such 
                enactment, the Secretary shall submit a final 
                evaluation report to the Congress. There is authorized 
                to be appropriated $10,000,000 to carry out the 
                evaluation under this subparagraph.
                    ``(H) Incentives for innovation and high 
                performance.--The Secretary may reserve up to 10 
                percent of the amounts made available for 
                administrative fees under this paragraph to provide 
                support to or reward family self-sufficiency programs 
                that are particularly innovative or highly successful 
                in achieving the goals of the program.''.
    (c) Repeal.--Section 202 of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997 (42 U.S.C. 1437f note; Public Law 104-204; 110 Stat. 2893) is 
hereby repealed.

SEC. 8. HOMEOWNERSHIP.

    (a) Section 8 Homeownership Downpayment Program.--Section 8(y)(7) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(y)(7)) is 
amended by striking subparagraphs (A) and (B) and inserting the 
following new subparagraphs:
                    ``(A) In general.--Subject to the provisions of 
                this paragraph, in the case of a family on whose behalf 
                rental assistance under section 8(o) has been provided 
                for a period of not less than 12 months prior to the 
                date of receipt of downpayment assistance under this 
                paragraph, a public housing agency may, in lieu of 
                providing monthly assistance payments under this 
                subsection on behalf of a family eligible for such 
                assistance and at the discretion of the agency, provide 
                a downpayment assistance grant in accordance with 
                subparagraph (B).
                    ``(B) Grant requirements.--A downpayment assistance 
                grant under this paragraph--
                            ``(i) shall be used by the family only as a 
                        contribution toward the downpayment and 
                        reasonable and customary closing costs required 
                        in connection with the purchase of a home;
                            ``(ii) shall be in the form of a single 
                        one-time grant; and
                            ``(iii) may not exceed $10,000.
                    ``(C) No effect on obtaining outside sources for 
                downpayment assistance.--This Act may not be construed 
                to prohibit a public housing agency from providing 
                downpayment assistance to families from sources other 
                than a grant provided under this Act, or as determined 
                by the public housing agency.''.
    (b) Use of Vouchers for Manufactured Housing.--Section 8(o)(12) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(12) is 
amended--
            (1) in subparagraph (A), by striking the period at the end 
        of the first sentence and all that follows through ``of'' in 
        the second sentence and inserting ``and rents''; and
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``the rent'' and all 
                that follows and inserting the following: ``rent shall 
                mean the sum of the monthly payments made by a family 
                assisted under this paragraph to amortize the cost of 
                purchasing the manufactured home, including any 
                required insurance and property taxes, the monthly 
                amount allowed for tenant-paid utilities, and the 
                monthly rent charged for the real property on which the 
                manufactured home is located, including monthly 
                management and maintenance charges.'';
                    (B) by striking clause (ii); and
                    (C) in clause (iii)--
                            (i) by inserting after the period at the 
                        end the following: ``If the amount of the 
                        monthly assistance payment for a family exceeds 
                        the monthly rent charged for the real property 
                        on which the manufactured home is located, 
                        including monthly management and maintenance 
                        charges, a public housing agency may pay the 
                        remainder to the family, lender or utility 
                        company, or may choose to make a single payment 
                        to the family for the entire monthly assistance 
                        amount.''; and
                            (ii) by redesignating such clause as clause 
                        (ii).

SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT REPORTING AGENCIES.

    (a) In General.--Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new subsection:
    ``(e) PHA Reporting of Rent Payments to Credit Reporting 
Agencies.--
            ``(1) Authority.--To the extent that a family receiving 
        tenant-based housing choice vouchers under section 8 by a 
        public housing agency agrees in writing to reporting under this 
        subsection, the public housing agency may submit to consumer 
        reporting agencies described in section 603(p) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a) information regarding 
        the past rent payment history of the family with respect to the 
        dwelling unit for which such assistance is provided.
            ``(2) Format.--The Secretary, after consultation with 
        consumer reporting agencies referred in paragraph (1), shall 
        establish a system and format to be used by public housing 
        agencies for reporting of information under such paragraph that 
        provides such information in a format and manner that is 
        similar to other credit information submitted to such consumer 
        reporting agencies and is usable by such agencies.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 10. PERFORMANCE ASSESSMENTS.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following new paragraph:
            ``(21) Performance assessments.--
                    ``(A) Establishment.--The Secretary shall, by 
                regulation, establish standards and procedures for 
                assessing the performance of public housing agencies in 
                carrying out the programs for tenant-based rental 
                assistance under this subsection and for homeownership 
                assistance under subsection (y).
                    ``(B) Contents.--The standards and procedures under 
                this paragraph shall provide for assessment of the 
                performance of public housing agencies in the following 
                areas:
                            ``(i) Quality of dwelling units obtained 
                        using such assistance.
                            ``(ii) Extent of utilization of assistance 
                        amounts provided to the agency and of 
                        authorized vouchers.
                            ``(iii) Timeliness and accuracy of 
                        reporting by the agency to the Secretary.
                            ``(iv) Effectiveness in carrying out 
                        policies to achieve deconcentration of poverty.
                            ``(v) Reasonableness of rent burdens, 
                        consistent with public housing agency 
                        responsibilities under section 8(o)(1)(E)(iii).
                            ``(vi) Accurate rent calculations and 
                        subsidy payments.
                            ``(vii) Effectiveness in carrying out 
                        family self-sufficiency activities.
                            ``(viii) Timeliness of actions related to 
                        landlord participation.
                            ``(ix) Such other areas as the Secretary 
                        considers appropriate.
                    ``(C) Periodic assessment.--Using the standards and 
                procedures established under this paragraph, the 
                Secretary shall conduct an assessment of the 
                performance of each public housing agency carrying out 
                a program referred to in subparagraph (A) and shall 
                submit a report to the Congress regarding the results 
                of each such assessment.''.

SEC. 11. PHA PROJECT-BASED ASSISTANCE.

    Section 8(o)(13) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(13)) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) Percentage limitation.--
                            ``(i) In general.--Subject to clause (ii), 
                        not more than 25 percent of the funding 
                        available for tenant-based assistance under 
                        this section that is administered by the agency 
                        may be attached to structures pursuant to this 
                        paragraph.
                            ``(ii) Exception.--An agency may attach up 
                        to an additional 5 percent of the funding 
                        available for tenant-based assistance under 
                        this section to structures pursuant to this 
                        paragraph for dwelling units that house 
                        individuals and families that meet the 
                        definition of homeless under section 103 of the 
                        McKinney-Vento Homeless Assistance Act (42 
                        U.S.C. 11302).'';
            (2) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) Income mixing requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), not more than the greater of 25 
                        dwelling units or 25 percent of the dwelling 
                        units in any project may be assisted under a 
                        housing assistance payment contract for 
                        project-based assistance pursuant to this 
                        paragraph. For purposes of this subparagraph, 
                        the term `project' means a single building, 
                        multiple contiguous buildings, or multiple 
                        buildings on contiguous parcels of land.
                            ``(ii) Exceptions.--
                                    ``(I) Certain housing.--The 
                                limitation under clause (i) shall not 
                                apply in the case of assistance under a 
                                contract for housing consisting of 
                                single family properties, or for 
                                dwelling units that are specifically 
                                made available for households comprised 
                                of elderly families, disabled families, 
                                and families receiving supportive 
                                services. For purposes of the preceding 
                                sentence, the term `single family 
                                properties' means buildings with no 
                                more than four dwelling units.
                                    ``(II) Certain areas.--With respect 
                                to areas in which fewer than 75 percent 
                                of families issued vouchers become 
                                participants in the program, the public 
                                housing agency has established the 
                                payment standard at 110 percent of the 
                                fair market rent for all census tracts 
                                in the area for the previous six 
                                months, and the public housing agency 
                                grants an automatic extension of 90 
                                days (or longer) to families with 
                                vouchers who are attempting to find 
                                housing, clause (i) shall be applied by 
                                substituting `50 percent' for `25 
                                percent'.'';
            (3) in the first sentence of subparagraph (F), by striking 
        ``10 years'' and inserting ``15 years'';
            (4) in subparagraph (G)--
                    (A) by inserting after the period at the end of the 
                first sentence the following: ``Such contract may, at 
                the election of the public housing agency and the owner 
                of the structure, specify that such contract shall be 
                extended for renewal terms of up to 15 years each, if 
                the agency makes the determination required by this 
                subparagraph and the owner is in compliance with the 
                terms of the contract.''; and
                    (B) by adding at the end the following: ``A public 
                housing agency may agree to enter into such a contract 
                at the time it enters into the initial agreement for a 
                housing assistance payment contract or at any time 
                thereafter that is before the expiration of the housing 
                assistance payment contract.'';
            (5) in subparagraph (H), by inserting before the period at 
        the end of the first sentence the following: ``, except that in 
        the case of a contract unit that has been allocated low-income 
        housing tax credits and for which the rent limitation pursuant 
        to such section 42 is less than the amount that would otherwise 
        be permitted under this subparagraph, the rent for such unit 
        may, in the sole discretion of a public housing agency, be 
        established at the higher section 8 rent, subject only to 
        paragraph (10)(A)'';
            (6) in subparagraph (I)(i), by inserting before the 
        semicolon the following: ``, except that the contract may 
        provide that the maximum rent permitted for a dwelling unit 
        shall not be less than the initial rent for the dwelling unit 
        under the initial housing assistance payments contract covering 
        the unit'';
            (7) in subparagraph (J)--
                    (A) by striking the fifth and sixth sentences and 
                inserting the following: ``A public housing agency may 
                establish and utilize procedures for maintaining site-
                based waiting lists under which applicants may apply 
                directly at, or otherwise designate to the public 
                housing agency, the project or projects in which they 
                seek to reside, except that all applicants on the 
                waiting list of an agency for assistance under this 
                subsection shall be permitted to place their names on 
                such separate list. All such procedures shall comply 
                with title VI of the Civil Rights Act of 1964, the Fair 
                Housing Act, and other applicable civil rights laws. 
                The owner or manager of a structure assisted under this 
                paragraph shall not admit any family to a dwelling unit 
                assisted under a contract pursuant to this paragraph 
                other than a family referred by the public housing 
                agency from its waiting list, or a family on a site-
                based waiting list that complies with the requirements 
                of this subparagraph. A public housing agency shall 
                fully disclose to each applicant each option in the 
                selection of a project in which to reside that is 
                available to the applicant.''; and
                    (B) by inserting after the third sentence the 
                following new sentence: ``Any family who resides in a 
                dwelling unit proposed to be assisted under this 
                paragraph, or in a unit to be replaced by a proposed 
                unit to be assisted under this paragraph shall be given 
                an absolute preference for selection for placement in 
                the proposed unit, if the family is otherwise eligible 
                for assistance under this subsection.''; and
            (8) by adding at the end the following new subparagraphs:
                    ``(L) Use in cooperative housing and elevator 
                buildings.--A public housing agency may enter into a 
                housing assistance payments contract under this 
                paragraph with respect to--
                            ``(i) dwelling units in cooperative 
                        housing;
                            ``(ii) notwithstanding subsection (c), 
                        dwelling units in a high-rise elevator project, 
                        including such a project that is occupied by 
                        families with children, without review and 
                        approval of the contract by the Secretary.
                    ``(M) Reviews.--
                            ``(i) Subsidy layering.--A subsidy layering 
                        review in accordance with section 102(d) of the 
                        Department of Housing and Urban Development 
                        Reform Act of 1989 (42 U.S.C. 3545(d)) shall 
                        not be required for assistance under this 
                        subparagraph in the case of a housing 
                        assistance payments contract for an existing 
                        structure, or if a subsidy layering review has 
                        been conducted by the applicable State or local 
                        agency.
                            ``(ii) Environmental review.--A public 
                        housing agency shall not be required to 
                        undertake any environmental review before 
                        entering into a housing assistance payments 
                        contract under this paragraph for an existing 
                        structure, except to the extent such a review 
                        is otherwise required by law or regulation.
                    ``(N) Administrative fee.--The administrative fee 
                applicable to the administration of assistance under 
                this paragraph shall be determined in the same manner 
                as administrative fees applicable to other assistance 
                administered under other provisions of this subsection.
                    ``(O) Leases and tenancy.--Assistance provided 
                under this paragraph shall be subject to the provisions 
                of paragraph (7), except that subparagraph (A) of such 
                paragraph shall not apply.''.

SEC. 12. RENT BURDENS.

    (a) Reviews.--Section 8(o)(1) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(1)) is amended by striking subparagraph (E) 
and inserting the following new subparagraph:
                    ``(E) Reviews.--
                            ``(i) Rent burdens.--The Secretary shall 
                        monitor rent burdens and submit a report to the 
                        Congress annually on the percentage of families 
                        assisted under this subsection, occupying 
                        dwelling units of any size, that pay more than 
                        30 percent of their adjusted incomes for rent 
                        and such percentage that pay more than 40 
                        percent of their adjusted incomes for rent. 
                        Using information regularly reported by public 
                        housing agencies, the Secretary shall provide 
                        public housing agencies, on an annual basis, a 
                        report with the information described in the 
                        first sentence of this clause, and may require 
                        a public housing agency to modify a payment 
                        standard that results in a significant 
                        percentage of families assisted under this 
                        subsection, occupying dwelling units of any 
                        size, paying more than 30 percent of their 
                        adjusted incomes for rent.
                            ``(ii) Concentration of poverty.--The 
                        Secretary shall submit a report to the Congress 
                        annually on the degree to which families 
                        assisted under this subsection in each 
                        metropolitan area are clustered in lower rent, 
                        higher poverty areas and how, and the extent to 
                        which, greater geographic distribution of such 
                        assisted families could be achieved, including 
                        by increasing payment standards for particular 
                        communities within such metropolitan areas.
                            ``(iii) Public housing agency 
                        responsibilities.--Each public housing agency 
                        shall make publicly available the information 
                        on rent burdens provided by the Secretary 
                        pursuant to clause (i), and, for agencies 
                        located in metropolitan areas, the information 
                        on concentration provided by the Secretary 
                        pursuant to clause (ii). If the percentage of 
                        families paying more than 30 percent or 40 
                        percent of income exceeds the national average 
                        for either of such categories, as reported 
                        pursuant to clause (i), the public housing 
                        agency shall adjust the payment standard to 
                        eliminate excessive rent burdens within a 
                        reasonable time period or explain its reasons 
                        for not making such adjustment. The Secretary 
                        may not deny the request of a public housing 
                        agency to set a payment standard up to 120 
                        percent of the fair market rent to remedy rent 
                        burdens in excess of the national average or 
                        undue concentration of families assisted under 
                        this subsection in lower rent, higher poverty 
                        sections of a metropolitan area except on the 
                        basis that an agency has not demonstrated that 
                        its request meets these criteria. If a request 
                        of a public housing agency has not been denied 
                        or approved with 45 days after the request is 
                        made, the request shall be considered to have 
                        been approved.''.
    (b) Public Housing Agency Plan.--Section 5A(d)(4) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c-1(d)(4)) is amended by 
inserting before the period at the end the following: ``, including the 
report with respect to the agency furnished by the Secretary pursuant 
to section 8(o)(1)(E) concerning rent burdens and, if applicable, 
geographic concentration of voucher holders, any changes in rent or 
other policies the public housing agency is making to address excessive 
rent burdens or concentration, and if the public housing agency is not 
adjusting its payment standard, its reasons for not doing so''.
    (c) Rent Burdens for Persons With Disabilities.--Subparagraph (D) 
of section 8(o)(1) is amended by inserting before the period at the end 
the following: ``, except that a public housing agency may establish a 
payment standard of not more than 120 percent of the fair market rent 
where necessary as a reasonable accommodation for a person with a 
disability, without approval of the Secretary. A public housing agency 
may seek approval of the Secretary to use a payment standard greater 
than 120 percent of the fair market rent as a reasonable accommodation 
for a person with a disability''.

SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT.

    (a) In General.--Paragraph (1) of section 8(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation;
            (2) by striking the seventh, eighth, and ninth sentences; 
        and
            (3) by adding at the end the following:
    ``(B)(i) The Secretary shall endeavor to define market areas for 
purposes of this paragraph in a manner that results in fair market 
rentals that are adequate to cover typical rental costs of units 
suitable for occupancy by persons assisted under this section in as 
wide a range of communities as is feasible, including communities with 
low poverty rates.
    ``(ii) The Secretary at a minimum shall define a separate market 
area for each--
            ``(I) metropolitan city, as such term is defined in section 
        102(a) of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5302(a)), with more than 40,000 rental dwelling units; 
        and
            ``(II) urban county or portion of an urban county, as such 
        term is defined in such section 102(a), located outside the 
        boundaries of any metropolitan city specified in subclause (I).
    ``(iii) The Secretary shall, at the request of one or more public 
housing agencies, establish a separate market area for part or all of 
the area under the jurisdiction of such agencies, if--
            ``(I) the requested market area contains at least 20,000 
        rental dwelling units;
            ``(II) the areas contained in the requested market area are 
        geographically contiguous and share similar housing market 
        characteristics;
            ``(III) adequate data are available to establish a reliable 
        fair market rental for the requested market area, and for the 
        remainder of the market area in which it is currently located; 
        and
            ``(IV) establishing the requested market area would raise 
        or lower the fair market rental by 10 percent or more at the 
        time the requested market area is established.
For purposes of subclause (III), data for an area shall be considered 
adequate if they are sufficient to establish from time to time a 
reliable benchmark fair market rental based primarily on data from that 
area, whether or not those data need to be supplemented with data from 
a larger area for purposes of annual updates.
    ``(iv) The Secretary shall not reduce the fair market rental in a 
market area as a result of a change in the percentile of the 
distribution of market rents used to establish the fair market 
rental.''.
    (b) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended 
by inserting before the period at the end the following: ``, except 
that no public housing agency shall be required as a result of a 
reduction in the fair market rental to reduce the payment standard 
applied to a family continuing to reside in a unit for which the family 
was receiving assistance under this section at the time the fair market 
rental was reduced''.

SEC. 14. SCREENING OF APPLICANTS.

    Subparagraph (B) of section 8(o)(6) of the United States Housing 
Act of 1937 (1437f(o)(6)(B)) is amended by inserting after the period 
at the end of the second sentence the following: ``A public housing 
agency's elective screening shall be limited to criteria that are 
directly related to an applicant's ability to fulfill the obligations 
of an assisted lease and shall consider mitigating circumstances 
related to such applicant. Any applicant or participant determined to 
be ineligible for admission or continued participation to the program 
shall be notified of the basis for such determination and provided, 
within a reasonable time after the determination, an opportunity for an 
informal hearing on such determination at which mitigating 
circumstances, including remedial conduct subsequent to the notice, 
shall be considered.''.

SEC. 15. ENHANCED VOUCHERS.

    (a) Treatment of Unit and Family Size.--Subparagraph (B) of section 
8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(1)(B)) is amended by inserting after ``eligibility event for 
the project,'' the following: ``regardless of unit and family size 
standards normally used by the administering agency (except that 
tenants may be required to move to units of appropriate size if 
available on the premises),''.
    (b) Eligibility of Certain Projects.--Notwithstanding any other 
provision of law--
            (1) the property known as The Heritage Apartments (FHA No. 
        023-44804), in Malden, Massachusetts, shall be considered 
        eligible low-income housing for purposes of the eligibility of 
        residents of the property for enhanced voucher assistance under 
        section 8(t) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(t)), pursuant to paragraph (2)(A) of section 
        223(f) of the Low-Income Housing Preservation and Resident 
        Homeownership Act of 1990 (12 U.S.C. 4113(f)(2)(A));
            (2) such residents shall receive enhanced rental housing 
        vouchers upon the prepayment of the mortgage loan for the 
        property under section 236 of the National Housing Act (12 
        U.S.C. 1715z-1); and
            (3) the Secretary shall approve such prepayment and 
        subsequent transfer of the property without any further 
        condition, except that the property shall be restricted for 
        occupancy, until the original maturity date of the prepaid 
        mortgage loan, only by families with incomes not exceeding 80 
        percent of the adjusted median income for the area in which the 
        property is located, as published by the Secretary.
Amounts for the enhanced vouchers pursuant to this subsection shall be 
provided under amounts appropriated for tenant-based rental assistance 
otherwise authorized under section 8(t) of the United States Housing 
Act of 1937.

SEC. 16. HOUSING INNOVATION PROGRAM.

    (a) Establishment of Program.--Title I of the United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end 
the following new section:

``SEC. 36. HOUSING INNOVATION PROGRAM.

    ``(a) Purpose.--The purpose of the program under this section is to 
provide public housing agencies and the Secretary the flexibility to 
design and evaluate innovative approaches to providing housing 
assistance that--
            ``(1) increase housing opportunities for low-income 
        families, including preventing homelessness, rehabilitate or 
        replace housing at risk of physical deterioration or 
        obsolescence, and develop additional affordable housing;
            ``(2) leverage other Federal, State, and local funding 
        sources, including the low-income housing tax credit program, 
        to expand and preserve affordable housing opportunities, 
        including public housing;
            ``(3) provide financial incentives and other support 
        mechanisms to families to obtain employment and increase earned 
        income;
            ``(4) test alternative rent-setting policies to determine 
        whether rent determinations can be simplified and 
        administrative cost savings can be realized while protecting 
        extremely low- and very low-income families from increased rent 
        burdens;
            ``(5) are subject to rigorous evaluation to test the 
        effectiveness of such innovative approaches; and
            ``(6) are developed with the support of the local community 
        and with the substantial participation of affected residents.
    ``(b) Program Authority.--
            ``(1) Scope.--The Secretary shall carry out a housing 
        innovation program under this section under which the Secretary 
        may designate not more than 60 public housing agencies to 
        participate, at any one time, in the housing innovation 
        program, in accordance with subsections (c) and (d), except 
        that, in addition to such 60 agencies, the Secretary may 
        designate an additional 20 agencies to participate in the 
        program under the terms of subsection (h).
            ``(2) Duration.--The Secretary may carry out the housing 
        innovation program under this section only during the 10-year 
        period beginning on the date of the enactment of the Section 8 
        Voucher Reform Act of 2007.
    ``(c) Participation of Existing MTW Agencies.--
            ``(1) Existing mtw agencies.--Subject to the requirements 
        of paragraph (2), all existing MTW agencies shall be designated 
        to participate in the program.
            ``(2) Conditions of participation.--The Secretary shall 
        approve and transfer into the housing innovation program under 
        this section each existing MTW agency that the Secretary 
        determines is not in default under such agreement and which the 
        Secretary also determines is meeting the goals and objectives 
        of its moving to work plan. Each such agency shall, within two 
        years after the date of the enactment of the Section 8 Voucher 
        Reform Act of 2007, make changes to its policies that were 
        implemented before such date of enactment in order to comply 
        with the requirements of this section.
    ``(d) Additional Agencies.--
            ``(1) Proposals; selection process.--In addition to 
        agencies participating in the program pursuant to subsection 
        (c), the Secretary shall, within 18 months after such date of 
        enactment, select public housing agencies to participate in the 
        program pursuant to a competitive process that meets the 
        following requirements:
                    ``(A) Any public housing agency may be selected to 
                participate in the program, except that not more than 5 
                agencies that are near-troubled under the public 
                housing assessment system and/or section 8 management 
                assessment program may be selected, and except that any 
                agency that is a troubled agency under either such 
                assessment program or for which the Secretary has hired 
                an alternative management entity for such agency or has 
                taken possession of all or any part of such agency's 
                public housing program shall not be eligible for 
                participation. Any near-troubled public housing agency 
                participating in the program shall remain subject to 
                the requirements of this Act governing tenant rent 
                contributions, eligibility, and continued 
                participation, and may not adopt policies described in 
                subsection (e)(4) (relating to rents and requirements 
                for continued occupation and participation).
                    ``(B) The process provides, to the extent possible 
                based on eligible agencies submitting applications and 
                taking into account existing MTW agencies participating 
                pursuant to subsection (c), for representation among 
                agencies selected of agencies having various 
                characteristics, including both large and small 
                agencies, agencies serving urban, suburban, and rural 
                areas, and agencies in various geographical regions 
                throughout the United States, and which may include the 
                selection of agencies that only administer the voucher 
                program under section 8(o).
                    ``(C) Any agency submitting a proposal under this 
                paragraph shall have provided notice to residents and 
                the local community, not later than 30 days before the 
                first of the two public meetings required under 
                subparagraph (D).
                    ``(D) The agency submitting a proposal shall hold 
                two public meetings to receive comments on the agency's 
                proposed application, on the implications of changes 
                under the proposal, and the possible impact on 
                residents.
                    ``(E) The process includes criteria for selection, 
                as follows:
                            ``(i) The extent to which the proposal 
                        generally identifies existing rules and 
                        regulations that impede achievement of the 
                        goals and objectives of the proposal and an 
                        explanation of why participation in the program 
                        is necessary to achieve such goals and 
                        objectives.
                            ``(ii) The extent of commitment and funding 
                        for carrying out the proposal by local 
                        government agencies and nonprofit 
                        organizations, including the provision of 
                        additional funding and other services, and the 
                        extent of support for the proposal by 
                        residents, resident advisory boards, and 
                        members of the local community.
                            ``(iii) The extent to which the agency has 
                        a successful history of implementing strategies 
                        similar to those set forth in the agency's 
                        proposal.
                            ``(iv) Whether the proposal pursues a 
                        priority strategy as specified in paragraph 
                        (2). In the case of any proposal utilizing a 
                        such a priority strategy, the proposal shall be 
                        evaluated based upon--
                                    ``(I) the extent to which the 
                                proposal is likely to achieve the 
                                objectives of developing additional 
                                housing dwelling units affordable to 
                                extremely low-, very low-, and low-
                                income families, and preserving, 
                                rehabilitating, or modernizing existing 
                                public housing dwelling units; or
                                    ``(II) the extent to which the 
                                proposal is likely to achieve the 
                                purposes of moving families toward 
                                economic self-sufficiency and 
                                increasing employment rates and wages 
                                of families without imposing a 
                                significant rent burden on the lowest 
                                income families, as well as such of the 
                                additional purposes as may be 
                                identified in the proposal, which may 
                                include expanding housing choices 
                                utilizing coordinators for the family 
                                self-sufficiency program under section 
                                23, making more effective use of 
                                program funds, and improving program 
                                management.
                            ``(v) Such other factors as the Secretary 
                        may provide, in consultation with participating 
                        agencies, program stakeholders, and any entity 
                        conducting evaluations pursuant to subsection 
                        (f).
            ``(2) Priority strategies.--For purposes of paragraph 
        (1)(E)(iv), the following are priority strategies:
                    ``(A) Development, rehabilitation, and financing.--
                A strategy of development of additional affordable 
                housing dwelling units and/or a strategy for 
                preservation and physical rehabilitation and 
                modernization of existing public housing dwelling 
                units. Such strategies may include innovative financing 
                proposals, leveraging of non-public housing funds 
                (including the low-income housing tax credit program), 
                and combining of funds for assistance under sections 8 
                and 9. Each such proposal shall include detailed 
                information about the strategies expected to be 
                employed, an explanation of why participation in the 
                program is necessary to employ such strategies, and 
                numerical goals regarding the number of dwelling units 
                to be developed, preserved, or rehabilitated.
                    ``(B) Rent reforms.--A strategy to implement rent 
                reforms, which shall be designed to help families 
                increase their earned income through rent and other 
                work incentives, and may also test the effectiveness of 
                achieving administrative cost savings without increased 
                rent burdens for extremely low- and very low-income 
                families.
            ``(3) Contract amendment.--After selecting agencies under 
        this subsection, the Secretary shall promptly amend the 
        applicable annual contributions contracts of such agencies to 
        provide that--
                    ``(A) subject to subparagraph (B), such agencies 
                may implement any policies and activities that are not 
                inconsistent with this section without specifying such 
                policies and activities in such amendment and without 
                negotiating or entering into any other agreements with 
                the Secretary specifying such policies and activities; 
                and
                    ``(B) the activities to be implemented by an agency 
                under the program in a given year shall be described in 
                and subject to the requirements of the annual plan 
                under subsection (e)(8). Upon the enactment of this 
                section, any agency which has participated in the 
                Moving to Work demonstration may, at its option, be 
                subject to the provisions of this paragraph in lieu of 
                any other agreement required by the Secretary for 
                participation in the program.
            ``(4) Maintaining participation rate.--If, at any time 
        after the initial selection period under paragraph (1), the 
        number of public housing agencies participating in the program 
        under this section is fewer than 40, the Secretary shall 
        promptly solicit applications from and select public housing 
        agencies to participate in the program under the terms and 
        conditions for application and selection provided in this 
        section to increase the number of agencies participating in the 
        program to 40.
    ``(e) Program Requirements.--
            ``(1) Program funds.--
                    ``(A) In general.--To carry out a housing 
                innovation program under this section, the 
                participating agency may use amounts provided to the 
                agency from the Operating Fund under section 9(e), 
                amounts provided to the agency from the Capital Fund 
                under section 9(d), and amounts provided to the agency 
                for voucher assistance under section 8(o). Such program 
                funds may be used for any activities that are 
                authorized by section 8(o) or 9, or for other 
                activities that are not inconsistent with this section, 
                which shall include, without limitation--
                            ``(i) providing capital and operating 
                        assistance, and financing for housing 
                        previously developed or operated pursuant to a 
                        contract between the Secretary and such agency;
                            ``(ii) the acquisition, new construction, 
                        rehabilitation, financing, and provision of 
                        capital or operating assistance for low-income 
                        housing (including housing other than public 
                        housing) and related facilities, which may be 
                        for terms exceeding the term of the program 
                        under this section in order to secure other 
                        financing for such housing;
                            ``(iii) costs of site acquisition and 
                        improvement, providing utility services, 
                        demolition, planning, and administration of 
                        activities under this paragraph;
                            ``(iv) housing counseling for low-income 
                        families in connection with rental or 
                        homeownership assistance provided under the 
                        program;
                            ``(v) safety, security, law enforcement, 
                        and anticrime activities appropriate to protect 
                        and support families assisted under the 
                        program;
                            ``(vi) tenant-based rental assistance, 
                        which may include the project-basing of such 
                        assistance; and
                            ``(vii) appropriate and reasonable 
                        financial assistance that is required to 
                        preserve low-income housing otherwise assisted 
                        under programs administered by the Secretary or 
                        under State or local low-income housing 
                        programs.
                    ``(B) Combining funds.--Notwithstanding any other 
                provision of law, a participating agency may combine 
                and use program funds for any activities authorized 
                under this section, except that a participating agency 
                may use funds provided for assistance under section 
                8(o) for activities other than those authorized under 
                section 8(o) only if (i) in the calendar year prior to 
                its participation in the program, the agency utilized 
                not less than 95 percent of such funds allocated for 
                that calendar year for such authorized activities or 95 
                percent of its authorized vouchers, including vouchers 
                ported in to the agency and vouchers ported out; or 
                (ii) after approval to participate in the program, the 
                agency achieves such utilization for a 12-month period. 
                This subparagraph shall not apply to participating 
                agencies approved by the Secretary to combine funds 
                from sections 8 and 9 of the Act prior to enactment of 
                this section.
            ``(2) Use of program funds.--In carrying out the housing 
        innovation program under this section, each participating 
        agency shall continue to assist--
                    ``(A) not less than substantially the same number 
                of eligible low-income families under the program as it 
                assisted in the base year for the agency; and
                    ``(B) a comparable mix of families by family size, 
                subject to adjustment to reflect changes in the 
                agency's waiting list, except that the Secretary may 
                approve exceptions to such requirements for up to 3 
                years based on modernization or redevelopment 
                activities proposed in an annual plan submitted and 
                approved in accordance with paragraph (8).
        Determinations with respect to the number of families served 
        shall be adjusted based on any allocation of additional 
        vouchers under section 8(o) and to reflect any change in the 
        percentage of program funds that a participating agency 
        receives compared to the base year.
            ``(3) Retained provisions.--Notwithstanding any other 
        provision of this section, families receiving assistance under 
        this section shall retain the same rights of judicial review of 
        agency action as they would otherwise have had if the agency 
        were not participating in the program, and each participating 
        agency shall comply with the following provisions of this Act:
                    ``(A) Subsections (a)(2)(A) and (b)(1) of section 
                16 (relating to targeting for new admissions in the 
                public housing and voucher programs).
                    ``(B) Section 2(b) (relating to tenant 
                representatives on the public housing agency board of 
                directors).
                    ``(C) Section 3(b)(2) (relating to definitions for 
                the terms `low-income families' and `very low-income 
                families').
                    ``(D) Section 5(A)(e) (relating to the formation of 
                and consultation with a resident advisory board).
                    ``(E) Sections 6(f)(1) and 8(o)(8)(B) (relating to 
                compliance of units assisted with housing quality 
                standards or other codes).
                    ``(F) Sections 6(c)(3), 6(c)(4)(i), and 8(o)(6)(B) 
                (relating to rights of public housing applicants and 
                existing procedural rights for applicants under section 
                8(o)).
                    ``(G) Section 6(k) (relating to grievance 
                procedures for public housing tenants) and comparable 
                procedural rights for families assisted under section 
                8(o).
                    ``(H) Section 6(l) (relating to public housing 
                lease requirements), except that for units assisted 
                both with program funds and low-income housing tax 
                credits, the initial lease term may be less than 12 
                months if required to conform lease terms with such tax 
                credit requirements.
                    ``(I) Section 7 (relating to designation of housing 
                for elderly and disabled households), except that a 
                participating agency may make such designations(at 
                initial designation or upon renewal) for a term of up 
                to 5 years if the agency includes in its annual plan 
                under paragraph (8) an analysis of the impact of such 
                designations on affected households and such 
                designation is subject to the program evaluation. Any 
                participating agency with a designated housing plan 
                that was approved under the moving to work 
                demonstration may continue to operate under the terms 
                of such plan for a term of 5 years (with an option to 
                renew on the same terms for an additional 5 years) if 
                it includes in its annual plan an analysis of the 
                impact of such designations on affected households and 
                is subject to evaluation under subsection (f).
                    ``(J) Subparagraphs (C) through (E) of section 
                8(o)(7) and section 8(o)(20) (relating to lease 
                requirements and eviction protections for families 
                assisted with tenant-based assistance).
                    ``(K) Subject to paragraph (1)(B) of this 
                subsection, section 8(o)(13)(B) (relating to a 
                percentage limitation on project-based assistance), 
                except that for purposes of this subparagraph such 
                section shall be applied by substituting `50 percent' 
                for `20 percent'.
                    ``(L) Section 8(o)(13)(E) (relating to resident 
                choice for tenants of units with project-based 
                vouchers), except with respect to--
                            ``(i) in the case of agencies participating 
                        in the moving to work demonstration, any 
                        housing assistance payment contract entered 
                        into within 2 years after the enactment of this 
                        section;
                            ``(ii) project-based vouchers that replace 
                        public housing units;
                            ``(iii) not more than 10 percent of the 
                        vouchers available to the participating agency 
                        upon entering the housing innovation program 
                        under this section; and
                            ``(iv) any project-based voucher program 
                        that is subject to evaluation under subsection 
                        (f).
                    ``(M) Section 8(r) (relating to portability of 
                voucher assistance), except that a participating agency 
                may receive funding for portability obligations under 
                section 8(dd) in the same manner as other public 
                housing agencies.
                    ``(N) Sections 8(ee) and 6(u) (relating to records, 
                certification and confidentiality regarding domestic 
                violence).
                    ``(O) Subsections (a) and (b) of section 12 
                (relating to payment of prevailing wages).
                    ``(P) Section 18 (relating to demolition and 
                disposition of public housing).
            ``(4) Rents and requirements for continued occupancy or 
        participation.--
                    ``(A) Before policy change.--Before adopting any 
                policy pursuant to participation in the housing 
                innovation program under this section that would make a 
                material change to the requirements of this Act 
                regarding tenant rents or contributions, or conditions 
                of continued occupancy or participation, a 
                participating agency shall complete each of the 
                following actions:
                            ``(i) The agency shall conduct an impact 
                        analysis of the proposed policy on families the 
                        agency is assisting under the program under 
                        this section and on applicants on the waiting 
                        list, including analysis of the incidence and 
                        severity of rent burdens greater than 30 
                        percent of adjusted income on households of 
                        various sizes and types and in various income 
                        tiers, that would result, if any, without 
                        application of the hardship provisions. The 
                        analysis with respect to applicants on the 
                        waiting list may be limited to demographic data 
                        provided by the applicable consolidated plan, 
                        information provided by the Secretary, and 
                        other generally available information. The 
                        proposed policy, including provisions for 
                        addressing hardship cases and transition 
                        provisions that mitigate the impact of any rent 
                        increases or changes in the conditions of 
                        continued occupancy or participation, and data 
                        from this analysis shall be made available for 
                        public inspection for at least 60 days in 
                        advance of the public meeting described in 
                        clause (ii).
                            ``(ii) The agency shall hold a public 
                        meeting regarding the proposed change, 
                        including the hardship provisions, which may be 
                        combined with a public meeting on the draft 
                        annual plan under paragraph (8) or the annual 
                        report under paragraph (9).
                            ``(iii) The board of directors or other 
                        similar governing body of the agency shall 
                        approve the change in public session.
                            ``(iv) The agency shall obtain approval 
                        from the Secretary of the annual plan or plan 
                        amendment. The Secretary may approve a plan or 
                        amendment containing a material change to the 
                        requirements of this Act regarding tenant rents 
                        or contributions, or conditions of continued 
                        occupancy or participation, only if the agency 
                        agrees that such policy may be included as part 
                        of the national evaluation.
                    ``(B) After policy change.--After adopting a policy 
                described in subparagraph (A), a program agency shall 
                complete each of the following actions:
                            ``(i) The agency shall provide adequate 
                        notice to residents, which shall include a 
                        description of the changes in the public 
                        housing lease or participation agreement that 
                        may be required and of the hardship or 
                        transition protections offered.
                            ``(ii) In the case of any additional 
                        requirements for continued occupancy or 
                        participation, the agency shall execute a lease 
                        addendum or participation agreement specifying 
                        the requirements applicable to both the 
                        resident and the agency. A resident may bring a 
                        civil action to enforce commitments of the 
                        agency made through the lease addendum or 
                        participation agreement.
                            ``(iii) The agency shall reassess rent, 
                        subsidy level, and policies on program 
                        participation no less often than every two 
                        years, which shall include preparing a revised 
                        impact analysis, and make available to the 
                        public the results of such reassessment and 
                        impact analysis. The requirement under this 
                        clause may be met by sufficiently detailed 
                        interim reports, if any, by the national 
                        evaluating entity.
                            ``(iv) The agency shall include in the 
                        annual report under paragraph (8) information 
                        sufficient to describe any hardship requests, 
                        including the number and types of requests 
                        made, granted, and denied, the use of 
                        transition rules, and adverse impacts resulting 
                        from changes in rent or continued occupancy 
                        policies, including actions taken by the agency 
                        to mitigate such impacts and impacts on 
                        families no longer assisted under the program.
                    ``(C) Applicability to existing mtw agencies.--An 
                existing MTW agency that, before the date of the 
                enactment of this section, implemented material changes 
                to the requirements of this Act regarding tenant rents 
                or contributions, or conditions of continued occupancy 
                or participation, as part of the moving to work 
                demonstration shall not be subject to subparagraph (A) 
                with regard to such previously implemented changes, but 
                shall comply with the requirements of subparagraph 
                (B)(ii) and provide the evaluation and impact analysis 
                required by subparagraph (B)(iii) by the end of the 
                second agency fiscal year ending after such date of 
                enactment.
            ``(5) Prohibition against decrease in program funds.--The 
        amount of program funds a participating agency receives shall 
        not be diminished by its participation in the housing 
        innovation program under this section.
            ``(6) Submission of information.--As part of the annual 
        report required under subsection (g)(2), each participating 
        agency shall submit information annually to the Secretary 
        regarding families assisted under the program of the agency and 
        comply with any other data submissions required by the 
        Secretary for purposes of evaluation of the program under this 
        section.
            ``(7) Public and resident participation.--Each 
        participating agency shall provide opportunities for resident 
        and public participation in the annual plan under paragraph 
        (8), as follows:
                    ``(A) Notice to residents.--
                            ``(i) Notice.--Each year, the agency shall 
                        provide notice to the low-income families it 
                        serves under the programs authorized by this 
                        section as to the impact of proposed policy 
                        changes and program initiatives and of the 
                        schedule of resident advisory board and public 
                        meetings for the annual plan.
                            ``(ii) Meeting.--The agency shall hold at 
                        least one meeting with the resident advisory 
                        board (including representatives of recipients 
                        of assistance under section 8) to review the 
                        annual plan for each year.
                    ``(B) Public meeting.--With respect to each annual 
                plan, the agency shall hold at least one annual public 
                meeting to obtain comments on the plan, which may be 
                combined with a meeting to review the annual report. In 
                the case of any agency that administers, in the 
                aggregate, more than 15,000 public housing units and 
                vouchers, the agency shall hold additional meetings in 
                locations that promote attendance by residents and 
                other stakeholders.
                    ``(C) Public availability.--Before adoption of any 
                annual plan, and not less than 30 days before the 
                public meeting required under subparagraph (A)(ii) with 
                respect to the plan, the agency shall make the proposed 
                annual plan available for public inspection. The annual 
                plan shall be made available for public inspection not 
                less than 30 days before approval by the board of 
                directors (or other similar governing body) of the 
                agency and shall remain publicly available.
                    ``(D) Board approval.--Before submitting an annual 
                plan or annual report to the Secretary, the plan or 
                report, as applicable, shall be approved in a public 
                meeting by the board of directors or other governing 
                body of the agency.
            ``(8) Annual plan.--
                    ``(A) Requirement.--For each year that a 
                participating agency participates in the housing 
                innovation program under this section, the agency shall 
                submit to the Secretary, in lieu of all other planning 
                requirements, an annual plan under this paragraph.
                    ``(B) Contents.--Each annual plan shall include the 
                following information:
                            ``(i) A list and description of all program 
                        initiatives and generally applicable policy 
                        changes, including references to affected 
                        provisions of law or the implementing 
                        regulations affected.
                            ``(ii) A description and comparison of 
                        changes under the housing innovation program of 
                        the agency from the plan for such program for 
                        the preceding year.
                            ``(iii) A description of property 
                        redevelopment or portfolio repositioning 
                        strategies and proposed changes in policies or 
                        uses of funds required to implement such 
                        strategies.
                            ``(iv) Documentation of public and resident 
                        participation sufficient to comply with the 
                        requirements under paragraphs (4) and (7), 
                        including a copy of any recommendations 
                        submitted in writing by the resident advisory 
                        board of the agency and members of the public, 
                        a summary of comments, and a description of the 
                        manner in which the recommendations were 
                        addressed.
                            ``(v) Certifications by the agency that--
                                    ``(I) the annual plan will be 
                                carried out in conformity with title VI 
                                of the Civil Rights Act of 1964, the 
                                Fair Housing Act, section 504 of the 
                                Rehabilitation Act of 1973, title II of 
                                the Americans with Disabilities Act of 
                                1990, and the rules, standards, and 
                                policies in the approved plan;
                                    ``(II) the agency will 
                                affirmatively further fair housing; and
                                    ``(III) the agency has complied and 
                                will continue to comply with its 
                                obligations under the national 
                                evaluation.
                            ``(vi) A description of the agency's local 
                        asset management strategy for public housing 
                        properties, which shall be in lieu of any other 
                        asset management, project based management or 
                        accounting, or other system of allocating 
                        resources and costs to participating agency 
                        assets or cost centers that the Secretary may 
                        otherwise impose under this Act.
                    ``(C) Changes.--If the agency proposes to make 
                material changes in policies or initiatives in the plan 
                during the year covered by the plan, the agency shall 
                consult with the resident advisory board for the agency 
                established pursuant to section 5A(e) and the public 
                regarding such changes before their adoption.
                    ``(D) Approval process.--
                            ``(i) Timing.--The Secretary shall review 
                        and approve or disapprove each annual plan 
                        submitted to the Secretary within 45 days after 
                        such submission.
                            ``(ii) Standards for disapproval.--The 
                        Secretary may disapprove a plan only if--
                                    ``(I) the Secretary reasonably 
                                determines, based on information 
                                contained in the annual plan or annual 
                                report, that the agency is not in 
                                compliance with the requirements of 
                                this section;
                                    ``(II) the annual plan or most 
                                recent annual report is not consistent 
                                with other reliable information 
                                available to the Secretary; or
                                    ``(III) the annual plan or annual 
                                report or the agency's activities under 
                                the program are not otherwise in 
                                accordance with applicable law.
                            ``(iii) Failure to disapprove.--If a 
                        submitted plan is not disapproved within 45 
                        days after submission, the plan shall be 
                        considered to be approved for purposes of this 
                        section. The preceding sentence shall not 
                        preclude judicial review regarding such 
                        compliance pursuant to chapter 7 of title 5, 
                        United States Code, or an action regarding such 
                        compliance under section 1979 of the Revised 
                        Statutes of the United States (42 U.S.C. 1983).
    ``(f) Evaluation of Performance.--
            ``(1) In general.--The Secretary shall conduct detailed 
        evaluations of all public housing agencies participating in the 
        program under this section--
                    ``(A) to determine the level of success of each 
                public housing agency in achieving the purposes of the 
                program under subsection (a); and
                    ``(B) to identify program models that can be 
                replicated by other agencies to achieve such success.
            ``(2) Reports.--
                    ``(A) In general.--The Secretary shall submit three 
                reports to the Congress, as provided in subparagraph 
                (B), evaluating the programs of all public housing 
                agencies participating in the program under this 
                section and all agencies participating in the moving to 
                work demonstration. Each such report shall include 
                findings and recommendations for any appropriate 
                legislative action.
                    ``(B) Timing.--The reports under this paragraph 
                shall include--
                            ``(i) an initial report, which shall be 
                        submitted before the expiration of the 3-year 
                        period beginning on the date of the enactment 
                        of the Section 8 Voucher Reform Act of 2007;
                            ``(ii) an interim report, which shall be 
                        submitted before the expiration of the 5-year 
                        period beginning on such date of enactment; and
                            ``(iii) a final report, which shall be 
                        submitted before the expiration of the 10-year 
                        period beginning on such date of enactment.
            ``(3) Evaluating entity.--The Secretary may contract out 
        the responsibilities under this paragraphs (1) and (2) to an 
        independent entity that is qualified to perform such 
        responsibilities.
            ``(4) Performance measures.--The Secretary or the 
        evaluating entity, as applicable, shall establish performance 
        measures, which may include--
                    ``(A) a baseline performance level against which 
                program activities may be evaluated; and
                    ``(B) performance measures for--
                            ``(i) increasing housing opportunities for 
                        extremely low-, very low-, and low-income 
                        families, replacing or rehabilitating housing 
                        at risk of physical deterioration or 
                        obsolescence, and developing additional 
                        affordable housing;
                            ``(ii) leveraging other Federal, State, and 
                        local funding sources, including the low-income 
                        housing tax credit program, to expand and 
                        preserve affordable housing opportunities, 
                        including public housing;
                            ``(iii) moving families to self-sufficiency 
                        and increasing employment rates and wages of 
                        families without imposing a significant rent 
                        burden on the families having the lowest 
                        incomes;
                            ``(iv) reducing administrative costs; and
                            ``(v) any other performance measures that 
                        the Secretary or evaluating entity, as 
                        applicable, may establish.
    ``(g) Recordkeeping, Reports, and Audits.--
            ``(1) Recordkeeping.--Each public housing agency 
        participating in the program under this section shall keep such 
        records as the Secretary may prescribe as reasonably necessary 
        to disclose the amounts and the disposition of amounts under 
        the program, to ensure compliance with the requirements of this 
        section, and to measure performance.
            ``(2) Reports.--In lieu of all other reporting 
        requirements, each such agency participating in the program 
        shall submit to the Secretary an annual report in a form and at 
        a time specified by the Secretary. Each annual report shall 
        include the following information:
                    ``(A) A description, including an annual 
                consolidated financial report, of the sources and uses 
                of funds of the agency under the program, which shall 
                account separately for funds made available under 
                section 8 and subsections (d) and (e) of section 9, and 
                shall compare the agency's actions under the program 
                with its annual plan for the year.
                    ``(B) An annual audit that complies with the 
                requirements of Circular A-133 of the Office of 
                Management and Budget, including the OMB Compliance 
                Supplement.
                    ``(C) A description of each hardship exception 
                requested and granted or denied, and of the use of any 
                transition rules.
                    ``(D) Documentation of public and resident 
                participation sufficient to comply with the 
                requirements under paragraph (7).
                    ``(E) A comparison of income and the sizes and 
                types of families assisted by the agency under the 
                program compared to those assisted by the agency in the 
                base year.
                    ``(F) Every two years, an evaluation of rent 
                policies, subsidy level policies, and policies on 
                program participation.
                    ``(G) A description of any ongoing local 
                evaluations and the results of any local evaluations 
                completed during the year.
            ``(3) Access to documents by secretary.--The Secretary 
        shall have access for the purpose of audit and examination to 
        any books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            ``(4) Access to documents by the comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            ``(5) Reports regarding evaluations.--The Secretary shall 
        require each public housing agency participating in the program 
        under this section to submit to the Secretary, as part of the 
        agency's annual report under paragraph (2), such information as 
        the Secretary considers appropriate to permit the Secretary to 
        evaluate (pursuant to subsection (f)) the performance and 
        success of the agency in achieving the purposes of the 
        demonstration.
    ``(h) Additional Program Agencies.--In participating in the program 
under the terms of this subsection, the public housing agencies 
designated for such participation shall be subject to the requirements 
of this section, and the additional following requirements:
            ``(1) Applicability of certain existing provisions.--Such 
        agencies shall be subject to the provisions of--
                    ``(A) subsections (a) and (b) of section 3; and
                    ``(B) section 8(o), except for paragraph (11) and 
                except as the requirements of section 8(o) are modified 
                by subsection (e)(3) of this section.
            ``(2) No time limits.--Such agencies may not impose time 
        limits on the term of housing assistance received by families 
        under the program.
            ``(3) No employment conditions.--Such agencies may not 
        condition the receipt of housing assistance by families under 
        the program on the employment status of one of more family 
        members.
            ``(4) One-for-one replacement.--
                    ``(A) Conditions on demolition.--Such agencies may 
                not demolish or dispose of any dwelling unit of public 
                housing operated or administered by such agency 
                (including any uninhabitable unit and any unit 
                previously approved for demolition) except pursuant to 
                a plan for replacement of such units in accordance 
                with, and approved by the Secretary of Housing and 
                Urban Development pursuant to, subparagraph (B).
                    ``(B) Plan requirements.--The Secretary may not 
                approve a plan that provides for demolition or 
                disposition of any dwelling unit of public housing 
                referred to in subparagraph (A) unless--
                            ``(i) such plan provides for outreach to 
                        public housing agency residents in accordance 
                        with paragraph (5);
                            ``(ii) not later than 60 days before the 
                        date of the approval of such plan, such agency 
                        has convened and conducted a public hearing 
                        regarding the demolition or disposition 
                        proposed in the plan;
                            ``(iii) such plan provides that for each 
                        such dwelling unit demolished or disposed of, 
                        such public housing agency will provide an 
                        additional dwelling unit through--
                                    ``(I) the acquisition or 
                                development of additional public 
                                housing dwelling units; or
                                    ``(II) the acquisition, 
                                development, or contracting (including 
                                through project-based assistance) of 
                                additional dwelling units that are 
                                subject to requirements regarding 
                                eligibility for occupancy, tenant 
                                contribution toward rent, and long-term 
                                affordability restrictions which are 
                                comparable to public housing units, 
                                except that no household may be 
                                prevented from occupying a replacement 
                                dwelling unit provided pursuant to 
                                clause (iii) except to the extent 
                                specifically provided by any other 
                                provision of Federal law (including 
                                subtitle F of title V of the Quality 
                                Housing and Work Responsibility Act of 
                                1998 (42 U.S.C. 13661 et seq.; relating 
                                to safety and security in public and 
                                assisted housing, subtitle D of title 
                                VI of the Housing and Community 
                                Development Act of 1992 (42 U.S.C. 
                                13611 et seq.; relating to preferences 
                                for elderly and disabled residents), 
                                and section 16(f) of this Act (42 
                                U.S.C. 1437n(f)); relating to 
                                ineligibility of persons convicted of 
                                methamphetamine offenses);
                            ``(iv) such plan provides for a right, and 
                        implementation of such right, to occupancy of 
                        additional dwelling units provided in 
                        accordance with clause (iii), for households 
                        who, as of the time that dwelling units 
                        demolished or disposed of were vacated to 
                        provide for such demolition or disposition, 
                        were occupying such dwelling units;
                            ``(v) such plan provides that the proposed 
                        demolition or disposition and relocation will 
                        be carried out in a manner that affirmatively 
                        furthers fair housing, as described in 
                        subsection (e) of section 808 of the Civil 
                        Rights Act of 1968; and
                            ``(vi) to the extent that such plan 
                        provides for the provision of replacement or 
                        additional dwelling units, or redevelopment, in 
                        phases over time, such plan provides that the 
                        ratio of dwelling units described in subclauses 
                        (I) and (II) of clause (iii) that are provided 
                        in any such single phase to the total number of 
                        dwelling units provided in such phase is not 
                        less than the ratio of the aggregate number of 
                        such dwelling units provided under the plan to 
                        the total number of dwelling units provided 
                        under the plan.
                    ``(C) Inapplicable provisions.--Subparagraphs (B) 
                and (D) of section 8(o)(13) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) shall not 
                apply with respect to vouchers used to comply with the 
                requirements of subparagraph (B)(iii) of this 
                paragraph.
                    ``(D) Monitoring.--The Secretary of Housing and 
                Urban Development shall provide for the appropriate 
                field offices of the Department to monitor and 
                supervise enforcement of this paragraph and plans 
                approved under this paragraph and to consult, regarding 
                such monitoring and enforcement, with resident councils 
                of, and residents of public housing operated or 
                administered by, the agency.
            ``(5) Comprehensive outreach plan.--No program funds of 
        such agencies may be use to demolish or dispose of any public 
        housing dwelling units except in accordance with a 
        comprehensive outreach plan for such activities, developed by 
        the agency in conjunction with the residents of the public 
        housing agency, as follows:
                    ``(A) The plan shall be developed by the agency and 
                a resident task force, which may include members of the 
                Resident Council, but may not be limited to such 
                members, and which shall represent all segments of the 
                population of residents of the agency, including single 
                parent-headed households, the elderly, young employed 
                and unemployed adults, teenage youth, and disabled 
                persons.
                    ``(B) The votes and agreements regarding the plan 
                shall involve--
                            ``(i) in the case of any public housing 
                        agency that administers 250 or fewer public 
                        housing dwelling units, not less than 10 
                        percent of affected residents; and
                            ``(ii) in the case of any public housing 
                        agency that administers more than 250 public 
                        housing dwelling units, not less than 25 
                        affected residents.
                    ``(C) The plan shall provide for and describe 
                outreach efforts to inform residents of the program 
                under this subsection, including a door-to-door 
                information program, monthly newsletters to each 
                resident household, monthly meetings dedicated solely 
                to every aspect of the proposed development, including 
                redevelopment factors, which shall include the one-for-
                one replacement requirement under paragraph (5), 
                resident rights to return, the requirements of the 
                program under this subsection, new resident support and 
                community services to be provided, opportunities for 
                participation in architectural design, and employment 
                opportunities for residents, which shall make available 
                at least 30 percent of the total hours worked at all 
                such employment, and shall also make available at least 
                25 percent of unskilled jobs in demolition activities 
                and 25 percent of unskilled jobs in construction 
                activities related to the redevelopment project, 
                including job training, apprenticeships, union 
                membership assistance.
                    ``(D) The plan shall provide for regularly 
                scheduled monthly meeting updates and a system for 
                filing complaints about any aspect of the redevelopment 
                process.
    ``(i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Existing mtw agency.--The term `existing MTW agency' 
        means a public housing agency that as of the date of the 
        enactment of the Section 8 Voucher Reform Act of 2007 has an 
        existing agreement with the Secretary pursuant to the moving to 
        work demonstration.
            ``(2) Base year.--The term `base year' means, with respect 
        to a participating agency, the agency fiscal year most recently 
        completed prior to selection and approval for participation in 
        the housing innovation program under this section.
            ``(3) Moving to work demonstration.--The term `moving to 
        work demonstration' means the moving to work demonstration 
        program under section 204 of the Departments of Veterans 
        Affairs and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).
            ``(4) Participating agencies.--The term `participating 
        agencies' means public housing agencies designated and approved 
        for participation, and participating, in the housing innovation 
        program under this section.
            ``(5) Program funds.--The term `program funds' means, with 
        respect to a participating agency, any amounts that the agency 
        is authorized, pursuant to subsection (e)(1), to use to carry 
        out the housing innovation program under this section of the 
        agency.
            ``(6) Residents.--The term `residents' means, with respect 
        to a public housing agency, tenants of public housing of the 
        agency and participants in the voucher or other housing 
        assistance programs of the agency funded under section 8(o), or 
        tenants of other units owned by the agency and assisted under 
        this section.
    ``(j) Authorization of Appropriations for Resident Technical 
Assistance.--There is authorized to be appropriated for each of fiscal 
years 2008 through 2012 $10,000,000, for providing capacity building 
and technical assistance to enhance the capabilities of low-income 
families assisted under the program under this section to participate 
in the process for establishment of annual plans under this section for 
participating agencies.
    ``(k) Authorization of Appropriations for Evaluations.--There is 
authorized to be appropriated $15,000,000 to the Department of Housing 
and Urban Development for the purpose of conducting the evaluations 
required under subsection (f)(1).''.
    (b) GAO Report.--Not later than 48 months after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit a report to the Congress on the extent to which the public 
housing agencies participating in the housing innovation program under 
section 36 of the United States Housing Act of 1937 are meeting the 
goals and purposes of such program, as identified in subsection (a) of 
such section 36.

SEC. 17. DEMONSTRATION PROGRAM WAIVER AUTHORITY.

    (a) Authority To Enter Into Agreements.--Notwithstanding any other 
provision of law, the Secretary of Housing and Urban Development may 
enter into such agreements as may be necessary with the Social Security 
Administration and the Secretary of Health and Human Services to allow 
for the participation, in any demonstration program described in 
subsection (c), by the Department of Housing and Urban Development and 
the use under such program of housing choice vouchers under section 
8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
    (b) Waiver of Income Requirements.--The Secretary of Housing and 
Urban Development may, to extent necessary to allow rental assistance 
under section 8(o) of the United States Housing Act of 1937 to be 
provided on behalf of persons described in subsection (c) who 
participate in a demonstration program described in such subsection, 
and to allow such persons to be placed on a waiting list for such 
assistance, partially or wholly disregard increases in earned income 
for the purpose of rent calculations under section 3 for such persons.
    (c) Demonstration Programs.--A demonstration program described in 
this subsection is a demonstration program of a State that provides for 
persons with significant disabilities to be employed and continue to 
receive benefits under programs of the Department of Health and Human 
Services and the Social Security Administration, including the program 
of supplemental security income benefits under title XVI of the Social 
Security Act, disability insurance benefits under title II of such Act, 
and the State program for medical assistance (Medicaid) under title XIX 
of such Act.

SEC. 18. ACCESS TO HUD PROGRAMS FOR PERSONS WITH LIMITED ENGLISH 
              PROFICIENCY.

    (a) HUD Responsibilities.--To allow the Department of Housing and 
Urban Development to better serve persons with limited proficiency in 
the English language by providing technical assistance to recipients of 
Federal funds, the Secretary of Housing and Urban Development shall 
take the following actions:
            (1) Task force.--Within 90 days after the enactment of this 
        Act, convene a task force comprised of appropriate industry 
        groups, recipients of funds from the Department of Housing and 
        Urban Development (in this section referred to as the 
        ``Department''), community-based organizations that serve 
        individuals with limited English proficiency, civil rights 
        groups, and stakeholders, which shall identify a list of vital 
        documents, including Department and certain property and other 
        documents, to be competently translated to improve access to 
        federally conducted and federally assisted programs and 
        activities for individuals with limited English proficiency. 
        The task force shall meet not less frequently than twice per 
        year.
            (2) Translations.--Within 6 months after identification of 
        documents pursuant to paragraph (1), produce translations of 
        the documents identified in all necessary languages and make 
        such translations available as part of the library of forms 
        available on the website of the Department and as part of the 
        clearinghouse developed pursuant to paragraph (4).
            (3) Plan.--Develop and carry out a plan that includes 
        providing resources of the Department to assist recipients of 
        Federal funds to improve access to programs and activities for 
        individuals with limited English proficiency, which plan shall 
        include the elements described in paragraph (4).
            (4) Housing information resource center.--Develop and 
        maintain a housing information resource center to facilitate 
        the provision of language services by providers of housing 
        services to individuals with limited English proficiency. 
        Information provided by such center shall be made available in 
        printed form and through the Internet. The resources provided 
        by the center shall include the following:
                    (A) Translation of written materials.--The center 
                may provide, directly or through contract, vital 
                documents from competent translation services for 
                providers of housing services.
                    (B) Toll-free customer service telephone number.--
                The center shall provide a 24-hour toll-free 
                interpretation service telephone line, by which 
                recipients of funds of the Department and individuals 
                with limited English proficiency may--
                            (i) obtain information about federally 
                        conducted or federally assisted housing 
                        programs of the Department;
                            (ii) obtain assistance with applying for or 
                        accessing such housing programs and 
                        understanding Federal notices written in 
                        English; and
                            (iii) communicate with housing providers. 
                        and learn how to access additional language 
                        services.
                The toll-free telephone service provided pursuant to 
                this subparagraph shall supplement resources in the 
                community identified by the plan developed pursuant to 
                paragraph (3).
                    (C) Document clearinghouse.--The center shall 
                collect and evaluate for accuracy or develop, and make 
                available, templates and documents that are necessary 
                for consumers, relevant industry representatives, and 
                other stakeholders of the Department, to access, make 
                educated decisions, and communicate effectively about 
                their housing, including--
                            (i) administrative and property documents;
                            (ii) legally binding documents;
                            (iii) consumer education and outreach 
                        materials;
                            (iv) documents regarding rights and 
                        responsibilities of any party; and
                            (v) remedies available to consumers.
                    (D) Study of language assistance programs.--The 
                center shall conduct a study that evaluates best-
                practices models for all programs of the Department 
                that promote language assistance and strategies to 
                improve language services for individuals with limited 
                English proficiency. Not later than 18 months after the 
                date of the enactment of this Act, the center shall 
                submit a report to the Committee on Financial Services 
                of the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate, 
                which shall provide recommendations for implementation, 
                specific to programs of the Department, and information 
                and templates that could be made available to all 
                recipients of grants from the Department.
                    (E) Cultural and linguistic competence materials.--
                The center shall provide information relating to 
                culturally and linguistically competent housing 
                services for populations with limited English 
                proficiency.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out subsection (a).
    (c) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, and annually 
thereafter, the Secretary of Housing and Urban Development shall submit 
a report regarding its compliance with the requirements under 
subsection (a) to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate.

SEC. 19. TRANSFER OF CERTAIN RENTAL ASSISTANCE CONTRACTS.

    (a) Transfer.--Subject to subsection (c) and notwithstanding any 
other provision of law, the Secretary of Housing and Urban Development 
shall, at the request of the owner, transfer or authorize the transfer, 
of the contracts, restrictions, and debt described in subsection (b)--
            (1) on the housing that is owned or managed by Community 
        Properties of Ohio Management Services LLC or an affiliate of 
        Ohio Capital Corporation for Housing and located in Franklin 
        County, Ohio, to other properties located in Franklin County, 
        Ohio; and
            (2) on the housing that is owned or managed by The Model 
        Group, Inc., and located in Hamilton County, Ohio, to other 
        properties located in Hamilton County, Ohio.
    (b) Contracts, Restrictions, and Debt Covered.--The contracts, 
restrictions, and debt described in this subsection are as follows:
            (1) All or a portion of a project-based rental assistance 
        housing assistance payments contract under section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f).
            (2) Existing Federal use restrictions, including without 
        limitation use agreements, regulatory agreements, and 
        accommodation agreements.
            (3) Any subordinate debt held by the Secretary or assigned 
        and any mortgages securing such debt, all related loan and 
        security documentation and obligations, and reserve and escrow 
        balances.
    (c) Retention of Same Number of Units and Amount of Assistance.--
Any transfer pursuant to subsection (a) shall result in--
            (1) a total number of dwelling units (including units 
        retained by the owners and units transferred) covered by 
        assistance described in subsection (b)(1) after the transfer 
        remaining the same as such number assisted before the transfer, 
        with such increases or decreases in unit sizes as may be 
        contained in a plan approved by a local planning or development 
        commission or department; and
            (2) no reduction in the total amount of the housing 
        assistance payments under contracts described in subsection 
        (b)(1).
    (d) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 20. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated the amount necessary for 
each of fiscal years 2008 through 2012 to provide public housing 
agencies with incremental tenant-based assistance under section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) sufficient 
to assist 20,000 incremental dwelling units in each such fiscal year.

SEC. 21. ACCEPTABLE IDENTIFICATION REQUIREMENT.

    (a) In General.--Rental housing assistance under section 8(o) of 
the United States Housing Act of 1937 may not be provided on behalf of 
any individual or household unless the individual provides, or, in the 
case of a household, all adult members of the household provide, valid 
personal identification in one of the following forms:
            (1) Social security card with photo identification card or 
        real id act identification.--
                    (A) A social security card accompanied by a photo 
                identification card issued by the Federal Government or 
                a State Government; or
                    (B) A driver's license or identification card 
                issued by a State in the case of a State that is in 
                compliance with title II of the REAL ID Act of 2005 
                (title II of division B of Public Law 109-13; 49 U.S.C. 
                30301 note).
            (2) Passport.--A passport issued by the United States or a 
        foreign government.
            (3) USCIS photo identification card.--A photo 
        identification card issued by the Secretary of Homeland 
        Security (acting through the Director of the United States 
        Citizenship and Immigration Services).
    (b) Regulations.--The Secretary of Housing and Urban Development 
shall, by regulation, require that each public housing agency or other 
entity administering rental housing assistance described in subsection 
(a) take such actions as the Secretary considers necessary to ensure 
compliance with the requirements of subsection (a).

SEC. 22. EFFECTIVE DATE.

    Except as otherwise specifically provided in this Act, this Act and 
the amendments made by this Act, shall take effect on January 1, 2008.

            Passed the House of Representatives July 12, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
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