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[114th Congress Public Law 201]
[From the U.S. Government Publishing Office]

[[Page 781]]

          HOUSING OPPORTUNITY THROUGH MODERNIZATION ACT OF 2016

[[Page 130 STAT. 782]]

Public Law 114-201
114th Congress

                                 An Act

 
     To provide housing opportunities in the United States through 
        modernization of various housing programs, and for other 
            purposes. <<NOTE: July 29, 2016 -  [H.R. 3700]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Housing 
Opportunity Through Modernization Act of 2016. 42 USC 1437 note.>> 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing Opportunity 
Through Modernization Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.

         TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING

Sec. 101. Inspection of dwelling units.
Sec. 102. Income reviews.
Sec. 103. Limitation on public housing tenancy for over-income families.
Sec. 104. Limitation on eligibility for assistance based on assets.
Sec. 105. Units owned by public housing agencies.
Sec. 106. PHA project-based assistance.
Sec. 107. Establishment of fair market rent.
Sec. 108. Collection of utility data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Family unification program for children aging out of foster 
           care.
Sec. 111. Public housing heating guidelines.
Sec. 112. Use of vouchers for manufactured housing.
Sec. 113. Preference for United States citizens or nationals.
Sec. 114. Exception to public housing agency resident board member 
           requirement.

                         TITLE II--RURAL HOUSING

Sec. 201. Delegation of guaranteed rural housing loan approval.
Sec. 202. Guaranteed underwriting user fee.

           TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS

Sec. 301. Modification of FHA requirements for mortgage insurance for 
           condominiums.

       TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS

Sec. 401. Definition of geographic area for Continuum of Care Program.
Sec. 402. Inclusion of public housing agencies and local redevelopment 
           authorities in emergency solutions grants.
Sec. 403. Special assistant for Veterans Affairs in the Department of 
           Housing and Urban Development.
Sec. 404. Annual supplemental report on veterans homelessness.
Sec. 405. Reopening of public comment period for continuum of care 
           program regulations.

                         TITLE V--MISCELLANEOUS

Sec. 501. Inclusion of Disaster Housing Assistance Program in certain 
           fraud and abuse prevention measures.
Sec. 502. Energy efficiency requirements under Self-Help Homeownership 
           Opportunity program.

[[Page 130 STAT. 783]]

Sec. 503. Data exchange standardization for improved interoperability.

                            TITLE VI--REPORTS

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

         TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

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

         TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING

SEC. 101. INSPECTION OF DWELLING UNITS.

    (a) In General.--Section 8(o)(8) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(8)) is amended--
            (1) by striking subparagraph (A) and inserting the following 
        new subparagraph:
                    ``(A) <<NOTE: Determination.>>  Initial 
                inspection.--
                          ``(i) In general.--For each dwelling unit for 
                      which a housing assistance payment contract is 
                      established under this subsection, the public 
                      housing agency (or other entity pursuant to 
                      paragraph (11)) shall inspect the unit before any 
                      assistance payment is made to determine whether 
                      the dwelling unit meets the housing quality 
                      standards under subparagraph (B), except as 
                      provided in clause (ii) or (iii) of this 
                      subparagraph.
                          ``(ii) Correction of non-life-threatening 
                      conditions.--In the case of any dwelling unit that 
                      is determined, pursuant to an inspection under 
                      clause (i), not to meet the housing quality 
                      standards under subparagraph (B), assistance 
                      payments may be made for the unit notwithstanding 
                      subparagraph (C) if failure to meet such standards 
                      is a result only of non-life-threatening 
                      conditions, as such conditions are established by 
                      the Secretary. <<NOTE: Time period.>>  A public 
                      housing agency making assistance payments pursuant 
                      to this clause for a dwelling unit shall, 30 days 
                      after the beginning of the period for which such 
                      payments are made, withhold any assistance 
                      payments for the unit if any deficiency resulting 
                      in noncompliance with the housing quality 
                      standards has not been corrected by such time. The 
                      public housing agency shall recommence assistance 
                      payments when such deficiency has been corrected, 
                      and may use any payments withheld to make 
                      assistance payments relating to the period during 
                      which payments were withheld.
                          ``(iii) Use of alternative inspection method 
                      for interim period.--In the case of any property 
                      that within the previous 24 months has met the 
                      requirements of an inspection that qualifies as an 
                      alternative inspection method pursuant to 
                      subparagraph (E), a public housing agency may 
                      authorize occupancy before the inspection under 
                      clause (i) has been completed, and may make 
                      assistance payments retroactive to the beginning 
                      of the lease term after the unit has been 
                      determined pursuant to an inspection under clause 
                      (i) to meet the housing quality standards under

[[Page 130 STAT. 784]]

                      subparagraph (B). This clause may not be construed 
                      to exempt any dwelling unit from compliance with 
                      the requirements of subparagraph (D).'';
            (2) by redesignating subparagraph (G) as subparagraph (H); 
        and
            (3) by inserting after subparagraph (F) the following new 
        subparagraph:
                    ``(G) Enforcement of housing quality standards.--
                          ``(i) <<NOTE: Contracts.>>  Determination of 
                      noncompliance.--A dwelling unit that is covered by 
                      a housing assistance payments contract under this 
                      subsection shall be considered, for purposes of 
                      subparagraphs (D) and (F), to be in noncompliance 
                      with the housing quality standards under 
                      subparagraph (B) if--
                                    ``(I) the public housing agency or 
                                an inspector authorized by the State or 
                                unit of local government determines upon 
                                inspection of the unit that the unit 
                                fails to comply with such standards;
                                    ``(II) the agency or inspector 
                                notifies the owner of the unit in 
                                writing of such failure to comply; and
                                    ``(III) <<NOTE: Time periods.>>  the 
                                failure to comply is not corrected--
                                            ``(aa) in the case of any 
                                        such failure that is a result of 
                                        life-threatening conditions, 
                                        within 24 hours after such 
                                        notice has been provided; and
                                            ``(bb) in the case of any 
                                        such failure that is a result of 
                                        non-life-threatening conditions, 
                                        within 30 days after such notice 
                                        has been provided or such other 
                                        reasonable longer period as the 
                                        public housing agency may 
                                        establish.
                          ``(ii) Withholding of assistance amounts 
                      during correction.--The public housing agency may 
                      withhold assistance amounts under this subsection 
                      with respect to a dwelling unit for which a notice 
                      pursuant to clause (i)(II), of failure to comply 
                      with housing quality standards under subparagraph 
                      (B) as determined pursuant to an inspection 
                      conducted under subparagraph (D) or (F), has been 
                      provided. If the unit is brought into compliance 
                      with such housing quality standards during the 
                      periods referred to in clause (i)(III), the public 
                      housing agency shall recommence assistance 
                      payments and may use any amounts withheld during 
                      the correction period to make assistance payments 
                      relating to the period during which payments were 
                      withheld.
                          ``(iii) Abatement of assistance amounts.--The 
                      public housing agency shall abate all of the 
                      assistance amounts under this subsection with 
                      respect to a dwelling unit that is determined, 
                      pursuant to clause (i) of this subparagraph, to be 
                      in noncompliance with housing quality standards 
                      under subparagraph (B). Upon completion of repairs 
                      by the public housing agency or the owner 
                      sufficient so that the dwelling unit complies with 
                      such housing quality standards, the agency shall 
                      recommence payments under the

[[Page 130 STAT. 785]]

                      housing assistance payments contract to the owner 
                      of the dwelling unit.
                          ``(iv) Notification.--If a public housing 
                      agency providing assistance under this subsection 
                      abates rental assistance payments pursuant to 
                      clause (iii) with respect to a dwelling unit, the 
                      agency shall, upon commencement of such 
                      abatement--
                                    ``(I) notify the tenant and the 
                                owner of the dwelling unit that--
                                            ``(aa) such abatement has 
                                        commenced; and
                                            ``(bb) <<NOTE: Time 
                                        period.>>  if the dwelling unit 
                                        is not brought into compliance 
                                        with housing quality standards 
                                        within 60 days after the 
                                        effective date of the 
                                        determination of noncompliance 
                                        under clause (i) or such 
                                        reasonable longer period as the 
                                        agency may establish, the tenant 
                                        will have to move; and
                                    ``(II) issue the tenant the 
                                necessary forms to allow the tenant to 
                                move to another dwelling unit and 
                                transfer the rental assistance to that 
                                unit.
                          ``(v) Protection of tenants.--An owner of a 
                      dwelling unit may not terminate the tenancy of any 
                      tenant because of the withholding or abatement of 
                      assistance pursuant to this subparagraph. During 
                      the period that assistance is abated pursuant to 
                      this subparagraph, the tenant may terminate the 
                      tenancy by notifying the owner.
                          ``(vi) Termination of lease or assistance 
                      payments contract.--If assistance <<NOTE: Time 
                      period.>>  amounts under this section for a 
                      dwelling unit are abated pursuant to clause (iii) 
                      and the owner does not correct the noncompliance 
                      within 60 days after the effective date of the 
                      determination of noncompliance under clause (i), 
                      or such other reasonable longer period as the 
                      public housing agency may establish, the agency 
                      shall terminate the housing assistance payments 
                      contract for the dwelling unit.
                          ``(vii) Relocation.--
                                    ``(I) <<NOTE: Time period.>>  Lease 
                                of new unit.--The agency shall provide 
                                the family residing in such a dwelling 
                                unit a period of 90 days or such longer 
                                period as the public housing agency 
                                determines is reasonably necessary to 
                                lease a new unit, beginning upon 
                                termination of the contract, to lease a 
                                new residence with tenant-based rental 
                                assistance under this section.
                                    ``(II) Availability of public 
                                housing units.--If the family is unable 
                                to lease such a new residence during 
                                such period, the public housing agency 
                                shall, at the option of the family, 
                                provide such family a preference for 
                                occupancy in a dwelling unit of public 
                                housing that is owned or operated by the 
                                agency that first becomes available for 
                                occupancy after the expiration of such 
                                period.
                                    ``(III) Assistance in finding 
                                unit.--The public housing agency may 
                                provide assistance to the family in 
                                finding a new residence, including

[[Page 130 STAT. 786]]

                                use of up to two months of any 
                                assistance amounts withheld or abated 
                                pursuant to clause (ii) or (iii), 
                                respectively, for costs directly 
                                associated with relocation of the family 
                                to a new residence, which shall include 
                                security deposits as necessary and may 
                                include reimbursements for reasonable 
                                moving expenses incurred by the 
                                household, as established by the 
                                Secretary. The agency may require that a 
                                family receiving assistance for a 
                                security deposit shall remit, to the 
                                extent of such assistance, the amount of 
                                any security deposit refunds made by the 
                                owner of the dwelling unit for which the 
                                lease was terminated.
                          ``(viii) <<NOTE: Determination.>>  Tenant-
                      caused damages.--If a public housing agency 
                      determines that any damage to a dwelling unit that 
                      results in a failure of the dwelling unit to 
                      comply with housing quality standards under 
                      subparagraph (B), other than any damage resulting 
                      from ordinary use, was caused by the tenant, any 
                      member of the tenant's household, or any guest or 
                      other person under the tenant's control, the 
                      agency may waive the applicability of this 
                      subparagraph, except that this clause shall not 
                      exonerate a tenant from any liability otherwise 
                      existing under applicable law for damages to the 
                      premises caused by such tenant.
                          ``(ix) <<NOTE: Contracts.>>  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) <<NOTE: Notice. Regulations. 42 USC 1437f note.>>  Effective 
Date.--The Secretary of Housing and Urban Development shall issue notice 
or regulations to implement subsection (a) of this section and such 
subsection shall take effect upon such issuance.
SEC. 102. INCOME REVIEWS.

    (a) Income Reviews for Public Housing and Section 8 Programs.--
Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is 
amended--
            (1) in subsection (a)--
                    (A) in the second sentence of paragraph (1), by 
                striking ``at least annually'' and inserting ``pursuant 
                to paragraph (6)''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(6) Reviews of family income.--
                    ``(A) Frequency.--Reviews of family income for 
                purposes of this section shall be made--
                          ``(i) in the case of all families, upon the 
                      initial provision of housing assistance for the 
                      family;
                          ``(ii) annually thereafter, except as provided 
                      in paragraph (1) with respect to fixed-income 
                      families;
                          ``(iii) upon the request of the family, at any 
                      time the income or deductions (under subsection 
                      (b)(5)) of the family change by an amount that is 
                      estimated to result in a decrease of 10 percent 
                      (or such lower amount as the Secretary may, by 
                      notice, establish,

[[Page 130 STAT. 787]]

                      or permit the public housing agency or owner to 
                      establish) or more in annual adjusted income; and
                          ``(iv) <<NOTE: Time period.>>  at any time the 
                      income or deductions (under subsection (b)(5)) of 
                      the family change by an amount that is estimated 
                      to result in an increase of 10 percent or more in 
                      annual adjusted income, or such other amount as 
                      the Secretary may by notice establish, except that 
                      any increase in the earned income of a family 
                      shall not be considered for purposes of this 
                      clause (except that earned income may be 
                      considered if the increase corresponds to previous 
                      decreases under clause (iii)), except that a 
                      public housing agency or owner may elect not to 
                      conduct such review in the last three months of a 
                      certification period.
                    ``(B) In general.--Reviews of family income for 
                purposes of this section shall be subject to the 
                provisions of section 904 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988 (42 U.S.C. 
                3544).
            ``(7) Calculation of income.--
                    ``(A) Use of current year income.--In determining 
                family income for initial occupancy or provision of 
                housing assistance pursuant to clause (i) of paragraph 
                (6)(A) or pursuant to reviews pursuant to clause (iii) 
                or (iv) of such paragraph, a public housing agency or 
                owner shall use the income of the family as estimated by 
                the agency or owner for the upcoming year.
                    ``(B) Use of prior year income.--In determining 
                family income for annual reviews pursuant to paragraph 
                (6)(A)(ii), a public housing agency or owner shall, 
                except as otherwise provided in this paragraph and 
                paragraph (1), use the income of the family as 
                determined by the agency or owner for the preceding 
                year, taking into consideration any redetermination of 
                income during such prior year pursuant to clause (iii) 
                or (iv) of paragraph (6)(A).
                    ``(C) Other income.--In determining the income for 
                any family based on the prior year's income, with 
                respect to prior year calculations of income not subject 
                to subparagraph (B), a public housing agency or owner 
                may make other adjustments as it considers appropriate 
                to reflect current income.
                    ``(D) Safe harbor.--A public housing agency or owner 
                may, to the extent such information is available to the 
                public housing agency or owner, determine the family's 
                income prior to the application of any deductions based 
                on timely income determinations made for purposes of 
                other means-tested Federal public assistance programs 
                (including the program for block grants to States for 
                temporary assistance for needy families under part A of 
                title IV of the Social Security Act, a program for 
                Medicaid assistance under a State plan approved under 
                title XIX of the Social Security Act, and the 
                supplemental nutrition assistance program (as such term 
                is defined in section 3 of the Food and Nutrition Act of 
                2008 (7 U.S.C. 
                2012))). <<NOTE: Consultation. Procedures.>>  The 
                Secretary shall, in consultation with other appropriate 
                Federal agencies, develop electronic procedures to 
                enable public housing agencies and owners to have access 
                to such benefit determinations made by other means-
                tested Federal programs

[[Page 130 STAT. 788]]

                that the Secretary determines to have comparable 
                reliability. Exchanges of such information shall be 
                subject to the same limitations and tenant protections 
                provided under section 904 of the Stewart B. McKinney 
                Homeless Assistance Act Amendments of 1988 (42 U.S.C. 
                3544) with respect to information obtained under the 
                requirements of section 303(i) of the Social Security 
                Act (42 U.S.C. 503(i)).
                    ``(E) Electronic income verification.--The Secretary 
                shall develop a mechanism for disclosing information to 
                a public housing agency for the purpose of verifying the 
                employment and income of individuals and families in 
                accordance with section 453(j)(7)(E) of the Social 
                Security Act (42 U.S.C. 653(j)(7)(E)), and shall ensure 
                public housing agencies have access to information 
                contained in the `Do Not Pay' system established by 
                section 5 of the Improper Payments Elimination and 
                Recovery Improvement Act of 2012 (Public Law 112-248; 
                126 Stat. 2392).
                    ``(F) PHA and owner compliance.--A public housing 
                agency or owner may not be considered to fail to comply 
                with this paragraph or paragraph (6) due solely to any 
                de minimis errors made by the agency or owner in 
                calculating family incomes.'';
            (2) by striking subsections (d) and (e); and
            (3) by redesignating subsection (f) as subsection (d).

    (b) <<NOTE: Deadline. Time period. Effective date.>>  Certification 
Regarding Hardship Exception to Minimum Monthly Rent.--Not later than 
the expiration of the 6-month period beginning on the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall submit to the Congress a certification that the hardship and 
tenant protection provisions in clause (i) of section 3(a)(3)(B) of the 
United States Housing Act of 1937 (42 U.S.C. 1437a(a)(3)(B)(i)) are 
being enforced at such time and that the Secretary will continue to 
provide due consideration to the hardship circumstances of persons 
assisted under relevant programs of this Act.

    (c) Income; Adjusted Income.--Section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by striking 
paragraphs (4) and (5) and inserting the following new paragraphs:
            ``(4) <<NOTE: Definition. Criteria. Consultation.>>  
        Income.--The term `income' means, with respect to a family, 
        income received from all sources by each member of the household 
        who is 18 years of age or older or is the head of household or 
        spouse of the head of the household, plus unearned income by or 
        on behalf of each dependent who is less than 18 years of age, as 
        determined in accordance with criteria prescribed by the 
        Secretary, in consultation with the Secretary of Agriculture, 
        subject to the following requirements:
                    ``(A) Included amounts.--Such term includes 
                recurring gifts and receipts, actual income from assets, 
                and profit or loss from a business.
                    ``(B) Excluded amounts.--Such term does not 
                include--
                          ``(i) any imputed return on assets, except to 
                      the extent that net family assets exceed $50,000, 
                      except that such amount (as it may have been 
                      previously adjusted) shall be adjusted for 
                      inflation annually by

[[Page 130 STAT. 789]]

                      the Secretary in accordance with an inflationary 
                      index selected by the Secretary;
                          ``(ii) any amounts that would be eligible for 
                      exclusion under section 1613(a)(7) of the Social 
                      Security Act (42 U.S.C. 1382b(a)(7));
                          ``(iii) deferred disability benefits from the 
                      Department of Veterans Affairs that are received 
                      in a lump sum amount or in prospective monthly 
                      amounts;
                          ``(iv) any expenses related to aid and 
                      attendance under section 1521 of title 38, United 
                      States Code, to veterans who are in need of 
                      regular aid and attendance; and
                          ``(v) exclusions from income as established by 
                      the Secretary by regulation or notice, or any 
                      amount required by Federal law to be excluded from 
                      consideration as income.
                    ``(C) Earned income of students.--Such term does not 
                include--
                          ``(i) earned income, up to an amount as the 
                      Secretary may by regulation establish, of any 
                      dependent earned during any period that such 
                      dependent is attending school or vocational 
                      training on a full-time basis; or
                          ``(ii) any grant-in-aid or scholarship amounts 
                      related to such attendance used--
                                    ``(I) for the cost of tuition or 
                                books; or
                                    ``(II) in such amounts as the 
                                Secretary may allow, for the cost of 
                                room and board.
                    ``(D) <<NOTE: Determination.>>  Educational savings 
                accounts.--Income shall be determined without regard to 
                any amounts in or from, or any benefits from, any 
                Coverdell education savings account under section 530 of 
                the Internal Revenue Code of 1986 or any qualified 
                tuition program under section 529 of such Code.
                    ``(E) Recordkeeping.--The Secretary may not require 
                a public housing agency or owner to maintain records of 
                any amounts excluded from income pursuant to this 
                subparagraph.
            ``(5) <<NOTE: Definition.>>  Adjusted income.--The term 
        `adjusted income' means, with respect to a family, the amount 
        (as determined by the public housing agency or owner) of the 
        income of the members of the family residing in a dwelling unit 
        or the persons on a lease, after any deductions from income as 
        follows:
                    ``(A) Elderly and disabled families.--$525 in the 
                case of any family that is an elderly family or a 
                disabled family.
                    ``(B) Minors, students, and persons with 
                disabilities.--$480 for each member of the family 
                residing in the household (other than the head of the 
                household or his or her spouse) who is less than 18 
                years of age or is attending school or vocational 
                training on a full-time basis, or who is 18 years of age 
                or older and is a person with disabilities.
                    ``(C) Child care.--Any reasonable child care 
                expenses necessary to enable a member of the family to 
                be employed or to further his or her education.

[[Page 130 STAT. 790]]

                    ``(D) Health and medical expenses.--The amount, if 
                any, by which 10 percent of annual family income is 
                exceeded by the sum of--
                          ``(i) in the case of any elderly or disabled 
                      family, any unreimbursed health and medical care 
                      expenses; and
                          ``(ii) any unreimbursed reasonable attendant 
                      care and auxiliary apparatus expenses for each 
                      handicapped member of the family, if determined 
                      necessary by the public housing agency or owner to 
                      enable any member of such family to be employed.
                 The Secretary <<NOTE: Regulation.>>  shall, by 
                regulation, provide hardship exemptions to the 
                requirements of this subparagraph and subparagraph (C) 
                for impacted families who demonstrate an inability to 
                pay calculated rents because of financial hardship. 
                Such <<NOTE: Notification.>>  regulations shall include 
                a requirement to notify tenants regarding any changes to 
                the determination of adjusted income pursuant to such 
                subparagraphs based on the determination of the family's 
                claim of financial hardship exemptions required by the 
                preceding sentence. Such 
                regulations <<NOTE: Consultation. Comment period.>>  
                shall be promulgated in consultation with tenant 
                organizations, industry participants, and the Secretary 
                of Health and Human Services, with an adequate comment 
                period provided for interested parties.
                    ``(E) <<NOTE: Procedures.>>  Permissive 
                deductions.--Such additional deductions as a public 
                housing agency may, at its discretion, establish, except 
                that the Secretary shall establish procedures to ensure 
                that such deductions do not materially increase Federal 
                expenditures.
        The 
        Secretary <<NOTE: Determination. Applicability. Regulation.>>  
        shall annually calculate the amounts of the deductions under 
        subparagraphs (A) and (B), as such amounts may have been 
        previously calculated, by applying an inflationary factor as the 
        Secretary shall, by regulation, establish, except that the 
        actual deduction determined for each year shall be established 
        by rounding such amount to the next lowest multiple of $25.''.

    (d) Housing Choice Voucher Program.--Section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
            (1) in paragraph (1)(D), by inserting before the period at 
        the end the following: ``, except that a public housing agency 
        may establish a payment standard of not more than 120 percent of 
        the fair market rent where necessary as a reasonable 
        accommodation for a person with a disability, without approval 
        of the Secretary. A public housing agency may use a payment 
        standard that is greater than 120 percent of the fair market 
        rent as a reasonable accommodation for a person with a 
        disability, but only with the approval of the Secretary. In 
        connection with the use of any increased payment standard 
        established or approved pursuant to either of the preceding two 
        sentences as a reasonable accommodation for a person with a 
        disability, the Secretary may not establish additional 
        requirements regarding the amount of adjusted income paid by 
        such person for rent''; and
            (2) in paragraph (5)--
                    (A) in the paragraph heading, by striking ``Annual 
                review'' and inserting ``Reviews'';

[[Page 130 STAT. 791]]

                    (B) in subparagraph (A)--
                          (i) by striking ``the provisions of'' and 
                      inserting ``paragraphs (1), (6), and (7) of 
                      section 3(a) and to''; and
                          (ii) by striking ``and shall be conducted'' 
                      and all that follows through the end of the 
                      subparagraph and inserting a period; and
                    (C) in subparagraph (B), by striking the second 
                sentence.

    (e) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by 
striking ``income'' each place such term appears and inserting ``annual 
adjusted income''.
    (f) Project-Based Housing.--Paragraph (3) of section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by 
striking the last sentence.
    (g) <<NOTE: 42 USC 1437a note. Determination.>>  Impact on Public 
Housing Revenues.--
            (1) Adjustments to operating formula.--If the Secretary of 
        Housing and Urban Development determines that the application of 
        subsections (a) through (e) of this section results in a 
        material and disproportionate reduction in the rental income of 
        certain public housing agencies during the first year in which 
        such subsections are implemented, the Secretary may make 
        appropriate adjustments in the formula income for such year of 
        those agencies experiencing such a reduction.
            (2) <<NOTE: Time periods.>>  HUD reports on revenue and cost 
        impact.--In each of the first two years after the first year in 
        which subsections (a) through (e) are implemented, the Secretary 
        of Housing and Urban Development shall submit a report to 
        Congress identifying and calculating the impact of changes made 
        by such subsections and section 104 of this Act on the revenues 
        and costs of operating public housing units, the voucher program 
        for rental assistance under section 8 of the United States 
        Housing Act of 1937, and the program under such section 8 for 
        project-based rental assistance. <<NOTE: Recommenda- tions.>>  
        If such report identifies a material reduction in the net income 
        of public housing agencies nationwide or a material increase in 
        the costs of funding the voucher program or the project-based 
        assistance program, the Secretary shall include in such report 
        recommendations for legislative changes to reduce or eliminate 
        such a reduction.

    (h) <<NOTE: Notice. Regulations. 42 USC 1437a note.>>  Effective 
Date.--The Secretary of Housing and Urban Development shall issue notice 
or regulations to implement this section and this section shall take 
effect after such issuance, except that this section may only take 
effect upon the commencement of a calendar year.

    (i) Study on Impact on Elderly and Disabled Families of Decreased 
Deductions in Income.--
            (1) <<NOTE: Determination.>>  Study.--The Secretary of 
        Housing and Urban Development shall conduct a study to determine 
        the impacts, on rents paid by elderly and disabled individuals 
        and families assisted under the section 8 rental assistance and 
        public housing programs under the United States Housing Act of 
        1937 (42 U.S.C. 1437 et seq.), of any decreases in the amounts 
        of any deductions from income (for purposes of section 3(b) of 
        such Act (42 U.S.C. 1437a(b))), as compared to such deductions 
        under such section 3(b) as in effect before the effectiveness of 
        this section, resulting from the amendments made by this 
        section.

[[Page 130 STAT. 792]]

            (2) <<NOTE: Time period.>>  Report.--The Secretary shall 
        submit to the Congress a report setting forth the results of the 
        study conducted pursuant to paragraph (1) not later than the 
        expiration of the 12-month period beginning on the date of the 
        enactment of this Act.
            (3) Effective date.--Notwithstanding subsection (h) of this 
        section, this subsection shall take effect on the date of the 
        enactment of this Act.
SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER-INCOME 
                        FAMILIES.

    Subsection (a) of section 16 of the United States Housing Act of 
1937 (42 U.S.C. 1437n(a)) is amended by adding at the end the following 
new paragraph:
            ``(5) Limitations on tenancy for over-income families.--
                    ``(A) Limitations.--Except as provided in 
                subparagraph (D), in the case of any family residing in 
                a dwelling unit of public housing whose income for the 
                most recent two consecutive years, as determined 
                pursuant to income reviews conducted pursuant to section 
                3(a)(6), has exceeded the applicable income limitation 
                under subparagraph (C), the public housing agency 
                shall--
                          ``(i) notwithstanding any other provision of 
                      this Act, charge such family as monthly rent for 
                      the unit occupied by such family an amount equal 
                      to the greater of--
                                    ``(I) the applicable fair market 
                                rental established under section 8(c) 
                                for a dwelling unit in the same market 
                                area of the same size; or
                                    ``(II) <<NOTE: Regulations.>>  the 
                                amount of the monthly subsidy provided 
                                under this Act for the dwelling unit, 
                                which shall include any amounts from the 
                                Operating Fund and Capital Fund under 
                                section 9 used for the unit, as 
                                determined by the agency in accordance 
                                with regulations that the Secretary 
                                shall issue to carry out this subclause; 
                                or
                          ``(ii) <<NOTE: Deadline.>>  terminate the 
                      tenancy of such family in public housing not later 
                      than 6 months after the income determination 
                      described in subparagraph (A).
                    ``(B) Notice.--In the case of any family residing in 
                a dwelling unit of public housing whose income for a 
                year has exceeded the applicable income limitation under 
                subparagraph (C), upon the conclusion of such year the 
                public housing agency shall provide written notice to 
                such family of the requirements under subparagraph (A).
                    ``(C) <<NOTE: Determination.>>  Income limitation.--
                The income limitation under this subparagraph shall be 
                120 percent of the median income for the area, as 
                determined by the Secretary with adjustments for smaller 
                and larger families, except that the Secretary may 
                establish income limitations higher or lower than 120 
                percent of such median income on the basis of the 
                Secretary's findings that such variations are necessary 
                because of prevailing levels of construction costs, or 
                unusually high or low family incomes, vacancy rates, or 
                rental costs.

[[Page 130 STAT. 793]]

                    ``(D) Exception.--Subparagraph (A) shall not apply 
                to a family occupying a dwelling unit in public housing 
                pursuant to paragraph (5) of section 3(a) (42 U.S.C. 
                1437a(a)(5)).
                    ``(E) Reports on over-income families and waiting 
                lists.--The Secretary shall require that each public 
                housing agency shall--
                          ``(i) submit a report annually, in a format 
                      required by the Secretary, that specifies--
                                    ``(I) the number of families 
                                residing, as of the end of the year for 
                                which the report is submitted, in public 
                                housing administered by the agency who 
                                had incomes exceeding the applicable 
                                income limitation under subparagraph 
                                (C); and
                                    ``(II) the number of families, as of 
                                the end of such year, on the waiting 
                                lists for admission to public housing 
                                projects of the agency; and
                          ``(ii) <<NOTE: Public information.>>  make the 
                      information reported pursuant to clause (i) 
                      publicly available.''.
SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON 
                        ASSETS.

    Section 16 of the United States Housing Act of 1937 (42 U.S.C. 
1437n) is amended by inserting after subsection (d) the following new 
subsection:
    ``(e) Eligibility for Assistance Based on Assets.--
            ``(1) Limitation on assets.--Subject to paragraph (3) and 
        notwithstanding any other provision of this Act, a dwelling unit 
        assisted under this Act may not be rented and assistance under 
        this Act may not be provided, either initially or at each 
        recertification of family income, to any family--
                    ``(A) whose net family assets exceed $100,000, as 
                such amount is adjusted annually by applying an 
                inflationary factor as the Secretary considers 
                appropriate; or
                    ``(B) who has a present ownership interest in, a 
                legal right to reside in, and the effective legal 
                authority to sell, real property that is suitable for 
                occupancy by the family as a residence, except that the 
                prohibition under this subparagraph shall not apply to--
                          ``(i) any property for which the family is 
                      receiving assistance under subsection (y) or 
                      (o)(12) of section 8 of this Act;
                          ``(ii) any person that is a victim of domestic 
                      violence; or
                          ``(iii) any family that is offering such 
                      property for sale.
            ``(2) Net family assets.--
                    ``(A) <<NOTE: Definition.>>  In general.--For 
                purposes of this subsection, the term `net family 
                assets' means, for all members of the household, the net 
                cash value of all assets after deducting reasonable 
                costs that would be incurred in disposing of real 
                property, savings, stocks, bonds, and other forms of 
                capital investment. Such term does not include interests 
                in Indian trust land, equity in property for which the 
                family is receiving assistance under subsection (y) or 
                (o)(12) of section 8, equity accounts in homeownership 
                programs

[[Page 130 STAT. 794]]

                of the Department of Housing and Urban Development, or 
                Family Self Sufficiency accounts.
                    ``(B) Exclusions.--Such term does not include--
                          ``(i) the value of personal property, except 
                      for items of personal property of significant 
                      value, as the Secretary may establish or the 
                      public housing agency may determine;
                          ``(ii) the value of any retirement account;
                          ``(iii) real property for which the family 
                      does not have the effective legal authority 
                      necessary to sell such property;
                          ``(iv) any amounts recovered in any civil 
                      action or settlement based on a claim of 
                      malpractice, negligence, or other breach of duty 
                      owed to a member of the family and arising out of 
                      law, that resulted in a member of the family being 
                      disabled;
                          ``(v) the value of any Coverdell education 
                      savings account under section 530 of the Internal 
                      Revenue Code of 1986 or any qualified tuition 
                      program under section 529 of such Code; and
                          ``(vi) such other exclusions as the Secretary 
                      may establish.
                    ``(C) Trust funds.--In cases in which a trust fund 
                has been established and the trust is not revocable by, 
                or under the control of, any member of the family or 
                household, the value of the trust fund shall not be 
                considered an asset of a family if the fund continues to 
                be held in trust. Any income distributed from the trust 
                fund shall be considered income for purposes of section 
                3(b) and any calculations of annual family income, 
                except in the case of medical expenses for a minor.
            ``(3) Self-certification.--
                    ``(A) Net family assets.--A public housing agency or 
                owner may determine the net assets of a family, for 
                purposes of this section, based on a certification by 
                the family that the net assets of such family do not 
                exceed $50,000, as such amount is adjusted annually by 
                applying an inflationary factor as the Secretary 
                considers appropriate.
                    ``(B) <<NOTE: Determination.>>  No current real 
                property ownership.--A public housing agency or owner 
                may determine compliance with paragraph (1)(B) based on 
                a certification by the family that such family does not 
                have any current ownership interest in any real property 
                at the time the agency or owner reviews the family's 
                income.
                    ``(C) Standardized forms.--The Secretary may develop 
                standardized forms for the certifications referred to in 
                subparagraphs (A) and (B).
            ``(4) Compliance for public housing dwelling units.--When 
        recertifying family income with respect to families residing in 
        public housing dwelling units, a public housing agency may, in 
        the discretion of the agency and only pursuant to a policy that 
        is set forth in the public housing agency plan under section 5A 
        for the agency, choose not to enforce the limitation under 
        paragraph (1).
            ``(5) Enforcement.--When recertifying the income of a family 
        residing in a dwelling unit assisted under this Act,

[[Page 130 STAT. 795]]

        a public housing agency or owner may choose not to enforce the 
        limitation under paragraph (1) or may establish exceptions to 
        such limitation based on eligibility criteria, but only pursuant 
        to a policy that is set forth in the public housing agency plan 
        under section 5A for the agency or under a policy adopted by the 
        owner. Eligibility criteria for establishing exceptions may 
        provide for separate treatment based on family type and may be 
        based on different factors, such as age, disability, income, the 
        ability of the family to find suitable alternative housing, and 
        whether supportive services are being provided.
            ``(6) <<NOTE: Time period.>>  Authority to delay 
        evictions.--In the case of a family residing in a dwelling unit 
        assisted under this Act who does not comply with the limitation 
        under paragraph (1), the public housing agency or project owner 
        may delay eviction or termination of the family based on such 
        noncompliance for a period of not more than 6 months.
            ``(7) Verifying income.--
                    ``(A) <<NOTE: Effective 
                date. Records. Determination.>>  Beginning in fiscal 
                year 2018, the Secretary shall require public housing 
                agencies to require each applicant for, or recipient of, 
                benefits under this Act to provide authorization by the 
                applicant or recipient (or by any other person whose 
                income or resources are material to the determination of 
                the eligibility of the applicant or recipient for such 
                benefits) for the public housing agency to obtain 
                (subject to the cost reimbursement requirements of 
                section 1115(a) of the Right to Financial Privacy Act) 
                from any financial institution (within the meaning of 
                section 1101(1) of such Act) any financial record 
                (within the meaning of section 1101(2) of such Act) held 
                by the institution with respect to the applicant or 
                recipient (or any such other person) whenever the public 
                housing agency determines the record is needed in 
                connection with a determination with respect to such 
                eligibility or the amount of such benefits.
                    ``(B) Notwithstanding section 1104(a)(1) of the 
                Right to Financial Privacy Act, an authorization 
                provided by an applicant or recipient (or any other 
                person whose income or resources are material to the 
                determination of the eligibility of the applicant or 
                recipient) pursuant to subparagraph (A) of this 
                paragraph shall remain effective until the earliest of--
                          ``(i) the rendering of a final adverse 
                      decision on the applicant's application for 
                      eligibility for benefits under this Act;
                          ``(ii) the cessation of the recipient's 
                      eligibility for benefits under this Act; or
                          ``(iii) <<NOTE: Notification.>>  the express 
                      revocation by the applicant or recipient (or such 
                      other person referred to in subparagraph (A)) of 
                      the authorization, in a written notification to 
                      the Secretary.
                    ``(C)(i) An authorization obtained by the public 
                housing agency pursuant to this paragraph shall be 
                considered to meet the requirements of the Right to 
                Financial Privacy Act for purposes of section 1103(a) of 
                such Act, and need not be furnished to the financial 
                institution, notwithstanding section 1104(a) of such 
                Act.

[[Page 130 STAT. 796]]

                    ``(ii) The certification requirements of section 
                1103(b) of the Right to Financial Privacy Act shall not 
                apply to requests by the public housing agency pursuant 
                to an authorization provided under this clause.
                    ``(iii) A request by the public housing agency 
                pursuant to an authorization provided under this clause 
                is deemed to meet the requirements of section 1104(a)(3) 
                of the Right to Financial Privacy Act and the flush 
                language of section 1102 of such Act.
                    ``(iv) <<NOTE: Notification.>>  The public housing 
                agency shall inform any person who provides 
                authorization pursuant to this paragraph of the duration 
                and scope of the authorization.
                    ``(D) If an applicant for, or recipient of, benefits 
                under this Act (or any such other person referred to in 
                subparagraph (A)) refuses to provide, or revokes, any 
                authorization made by the applicant or recipient for the 
                public housing agency to obtain from any financial 
                institution any financial record, the public housing 
                agency may, on that basis, determine that the applicant 
                or recipient is ineligible for benefits under this 
                title.''.
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES.

    Paragraph (11) of section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(11)) is amended--
            (1) by striking ``(11) Leasing of units owned by pha.--If'' 
        and inserting the following:
            ``(11) Leasing of units owned by pha.--
                    ``(A) Inspections and rent determinations.--If''; 
                and
            (2) by adding at the end the following new subparagraph:
                    ``(B) <<NOTE: Definition.>>  Units owned by pha.--
                For purposes of this subsection, the term `owned by a 
                public housing agency' means, with respect to a dwelling 
                unit, that the dwelling unit is in a project that is 
                owned by such agency, by an entity wholly controlled by 
                such agency, or by a limited liability company or 
                limited partnership in which such agency (or an entity 
                wholly controlled by such agency) holds a controlling 
                interest in the managing member or general partner. A 
                dwelling unit shall not be deemed to be owned by a 
                public housing agency for purposes of this subsection 
                because the agency holds a fee interest as ground lessor 
                in the property on which the unit is situated, holds a 
                security interest under a mortgage or deed of trust on 
                the unit, or holds a non-controlling interest in an 
                entity which owns the unit or in the managing member or 
                general partner of an entity which owns the unit.''.
SEC. 106. PHA PROJECT-BASED ASSISTANCE.

    (a) In General.--Paragraph (13) of section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended--
            (1) by striking ``structure'' each place such term appears 
        and inserting ``project'';
            (2) by striking subparagraph (B) and inserting the following 
        new subparagraph:
                    ``(B) Percentage limitation.--
                          ``(i) In general.--Subject to clause (ii), a 
                      public housing agency may use for project-based 
                      assistance under this paragraph not more than 20 
                      percent of the authorized units for the agency.

[[Page 130 STAT. 797]]

                          ``(ii) Exception.--A public housing agency may 
                      use up to an additional 10 percent of the 
                      authorized units for the agency for project-based 
                      assistance under this paragraph, to provide units 
                      that house individuals and families that meet the 
                      definition of homeless under section 103 of the 
                      McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                      11302), that house families with veterans, that 
                      provide supportive housing to persons with 
                      disabilities or elderly persons, or that are 
                      located in areas where vouchers under this 
                      subsection are difficult to use, as specified in 
                      subparagraph (D)(ii)(II). Any units of project-
                      based assistance that are attached to units 
                      previously subject to federally required rent 
                      restrictions or receiving another type of long-
                      term housing subsidy provided by the Secretary 
                      shall not count toward the percentage limitation 
                      under clause (i) of this subparagraph. The 
                      Secretary <<NOTE: Regulations.>>  may, by 
                      regulation, establish additional categories for 
                      the exception under this clause.'';
            (3) by striking subparagraph (D) and inserting the following 
        new subparagraph:
                    ``(D) Income-mixing requirement.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), not more than the greater of 25 
                      dwelling units or 25 percent of the dwelling units 
                      in any project may be assisted under a housing 
                      assistance payment contract for project-based 
                      assistance pursuant to this paragraph. 
                      For <<NOTE: Definition.>>  purposes of this 
                      subparagraph, the term `project' means a single 
                      building, multiple contiguous buildings, or 
                      multiple buildings on contiguous parcels of land.
                          ``(ii) Exceptions.--
                                    ``(I) Certain families.--The 
                                limitation under clause (i) shall not 
                                apply to dwelling units assisted under a 
                                contract that are exclusively made 
                                available to elderly families or to 
                                households eligible for supportive 
                                services that are made available to the 
                                assisted residents of the project, 
                                according to standards for such services 
                                the Secretary may establish.
                                    
                                ``(II) <<NOTE: Determination. Applicabili
                                ty. Regulations.>>  Certain areas.--With 
                                respect to areas in which tenant-based 
                                vouchers for assistance under this 
                                subsection are difficult to use, as 
                                determined by the Secretary, and with 
                                respect to census tracts with a poverty 
                                rate of 20 percent or less, clause (i) 
                                shall be applied by substituting `40 
                                percent' for `25 percent', and the 
                                Secretary may, by regulation, establish 
                                additional conditions.
                                    ``(III) Certain contracts.--The 
                                limitation under clause (i) shall not 
                                apply with respect to contracts or 
                                renewal of contracts under which a 
                                greater percentage of the dwelling units 
                                in a project were assisted under a 
                                housing assistance payment contract for 
                                project-based assistance pursuant to 
                                this paragraph on the date of the 
                                enactment of the Housing Opportunity 
                                Through Modernization Act of 2016.

[[Page 130 STAT. 798]]

                                    ``(IV) Certain properties.--Any 
                                units of project-based assistance under 
                                this paragraph that are attached to 
                                units previously subject to federally 
                                required rent restrictions or receiving 
                                other project-based assistance provided 
                                by the Secretary shall not count toward 
                                the percentage limitation imposed by 
                                this subparagraph (D).
                          ``(iii) Additional monitoring and oversight 
                      requirements.--The Secretary may establish 
                      additional requirements for monitoring and 
                      oversight of projects in which more than 40 
                      percent of the dwelling units are assisted under a 
                      housing assistance payment contract for project-
                      based assistance pursuant to this paragraph.'';
            (4) by striking subparagraph (F) and inserting the following 
        new subparagraph:
                    ``(F) Contract term.--
                          ``(i) Term.--A housing assistance payment 
                      contract pursuant to this paragraph between a 
                      public housing agency and the owner of a project 
                      may have a term of up to 20 years, subject to--
                                    ``(I) the availability of sufficient 
                                appropriated funds for the purpose of 
                                renewing expiring contracts for 
                                assistance payments, as provided in 
                                appropriation Acts and in the agency's 
                                annual contributions contract with the 
                                Secretary, provided that in the event of 
                                insufficient appropriated funds, 
                                payments due under contracts under this 
                                paragraph shall take priority if other 
                                cost-saving measures that do not require 
                                the termination of an existing contract 
                                are available to the agency; and
                                    ``(II) compliance with the 
                                inspection requirements under paragraph 
                                (8), except that the agency shall not be 
                                required to make biennial inspections of 
                                each assisted unit in the development.
                          ``(ii) Addition of eligible units.--Subject to 
                      the limitations of subparagraphs (B) and (D), the 
                      agency and the owner may add eligible units within 
                      the same project to a housing assistance payments 
                      contract at any time during the term thereof 
                      without being subject to any additional 
                      competitive selection procedures.
                          ``(iii) Housing under construction or recently 
                      constructed.--An agency may enter into a housing 
                      assistance payments contract with an owner for any 
                      unit that does not qualify as existing housing and 
                      is under construction or recently has been 
                      constructed whether or not the agency has executed 
                      an agreement to enter into a contract with the 
                      owner, provided that the owner demonstrates 
                      compliance with applicable requirements prior to 
                      execution of the housing assistance payments 
                      contract. This clause shall not subject a housing 
                      assistance payments contract for existing housing 
                      under this paragraph to such requirements or 
                      otherwise limit the extent to which a unit may be 
                      assisted as existing housing.
                          ``(iv) Additional conditions.--The contract 
                      may specify additional conditions, including with 
                      respect

[[Page 130 STAT. 799]]

                      to continuation, termination, or expiration, and 
                      shall specify that upon termination or expiration 
                      of the contract without extension, each assisted 
                      family may elect to use its assistance under this 
                      subsection to remain in the same project if its 
                      unit complies with the inspection requirements 
                      under paragraph (8), the rent for the unit is 
                      reasonable as required by paragraph (10)(A), and 
                      the family pays its required share of the rent and 
                      the amount, if any, by which the unit rent 
                      (including the amount allowed for tenant-based 
                      utilities) exceeds the applicable payment 
                      standard.'';
            (5) in subparagraph (G), by striking ``15 years'' and 
        inserting ``20 years'';
            (6) by striking subparagraph (I) and inserting the following 
        new subparagraph:
                    ``(I) <<NOTE: Contracts.>>  Rent adjustments.--A 
                housing assistance payments contract pursuant to this 
                paragraph entered into after the date of the enactment 
                of the Housing Opportunity Through Modernization Act of 
                2016 shall provide for annual rent adjustments upon the 
                request of the owner, except that--
                          ``(i) by agreement of the parties, a contract 
                      may allow a public housing agency to adjust the 
                      rent for covered units using an operating cost 
                      adjustment factor established by the Secretary 
                      pursuant to section 524(c) of the Multifamily 
                      Assisted Housing Reform and Affordability Act of 
                      1997 (which shall not result in a negative 
                      adjustment), in which case the contract may 
                      require an additional adjustment, if requested, up 
                      to the reasonable rent periodically during the 
                      term of the contract, and shall require such an 
                      adjustment, if requested, upon extension pursuant 
                      to subparagraph (G);
                          ``(ii) the adjusted rent shall not exceed the 
                      maximum rent permitted under subparagraph (H);
                          ``(iii) the contract may provide that the 
                      maximum rent permitted for a dwelling unit shall 
                      not be less than the initial rent for the dwelling 
                      unit under the initial housing assistance payments 
                      contract covering the units; and
                          ``(iv) the provisions of subsection (c)(2)(C) 
                      shall not apply.'';
            (7) in subparagraph (J)--
                    (A) in the first sentence--
                          (i) by striking ``shall'' and inserting 
                      ``may''; and
                          (ii) by inserting before the period the 
                      following: ``or may permit owners to select 
                      applicants from site-based waiting lists as 
                      specified in this subparagraph'';
                    (B) by striking the third sentence and inserting the 
                following: ``The agency or owner may establish 
                preferences or criteria for selection for a unit 
                assisted under this paragraph that are consistent with 
                the public housing agency plan for the agency approved 
                under section 5A and that give preference to families 
                who qualify for voluntary services, including 
                disability-specific services, offered in conjunction 
                with assisted units.''; and

[[Page 130 STAT. 800]]

                    (C) <<NOTE: Procedures.>>  by striking the fifth and 
                sixth sentences and inserting the following: ``A public 
                housing agency may establish and utilize procedures for 
                owner-maintained site-based waiting lists, under which 
                applicants may apply at, or otherwise designate to the 
                public housing agency, the project or projects in which 
                they seek to reside, except that all eligible applicants 
                on the waiting list of an agency for assistance under 
                this subsection shall be permitted to place their names 
                on such separate list, subject to policies and 
                procedures established by the Secretary. All such 
                procedures shall comply with title VI of the Civil 
                Rights Act of 1964, the Fair Housing Act, section 504 of 
                the Rehabilitation Act of 1973, and other applicable 
                civil rights laws. The owner or manager of a project 
                assisted under this paragraph shall not admit any family 
                to a dwelling unit assisted under a contract pursuant to 
                this paragraph other than a family referred by the 
                public housing agency from its waiting list, or a family 
                on a site-based waiting list that complies with the 
                requirements of this subparagraph. A 
                public <<NOTE: Disclosure.>>  housing agency shall 
                disclose to each applicant all other options in the 
                selection of a project in which to reside that are 
                provided by the public housing agency and are available 
                to the applicant.'';
            (8) in subparagraph (M)(ii), by inserting before the period 
        at the end the following: ``relating to funding other than 
        housing assistance payments''; and
            (9) by adding at the end the following new subparagraphs:
                    ``(N) <<NOTE: Notification. Public information.>>  
                Structure owned by agency.--A public housing agency 
                engaged in an initiative to improve, develop, or replace 
                a public housing property or site may attach assistance 
                to an existing, newly constructed, or rehabilitated 
                structure in which the agency has an ownership interest 
                or which the agency has control of without following a 
                competitive process, provided that the agency has 
                notified the public of its intent through its public 
                housing agency plan and subject to the limitations and 
                requirements of this paragraph.
                    ``(O) Special purpose vouchers.--A public housing 
                agency that administers vouchers authorized under 
                subsection (o)(19) or (x) of this section may provide 
                such assistance in accordance with the limitations and 
                requirements of this paragraph, without additional 
                requirements for approval by the Secretary.''.

    (b) <<NOTE: Notice. Regulations. 42 USC 1437f note.>>  Effective 
Date.--The Secretary of Housing and Urban Development shall issue notice 
or regulations to implement subsection (a) of this section and such 
subsection shall take effect upon such issuance.
SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT.

    (a) In General.--Paragraph (1) of section 8(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation;
            (2) by striking the fourth, seventh, eighth, and ninth 
        sentences; and
            (3) by adding at the end the following:

    ``(B) <<NOTE: Web posting.>>  Fair market rentals for an area shall 
be published not less than annually by the Secretary on the site of the 
Department

[[Page 130 STAT. 801]]

on the World Wide Web and in any other manner specified by the 
Secretary. <<NOTE: Notice. Federal Register, publication. Effective 
date. Time period.>>  Notice that such fair market rentals are being 
published shall be published in the Federal Register, and such fair 
market rentals shall become effective no earlier than 30 days after the 
date of such publication. The Secretary shall establish a procedure for 
public housing agencies and other interested parties to comment on such 
fair market rentals and to request, within a time specified by the 
Secretary, reevaluation of the fair market rentals in a jurisdiction 
before such rentals become effective. The Secretary shall cause to be 
published for comment in the Federal Register notices of proposed 
material changes in the methodology for estimating fair market rentals 
and notices specifying the final decisions regarding such proposed 
substantial methodological changes and responses to public comments.''.

    (b) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended 
by inserting before the period at the end the following: ``, except that 
no public housing agency shall be required as a result of a reduction in 
the fair market rental to reduce the payment standard applied to a 
family continuing to reside in a unit for which the family was receiving 
assistance under this section at the time the fair market rental was 
reduced. <<NOTE: Criteria. Procedures.>>  The Secretary shall allow 
public housing agencies to request exception payment standards within 
fair market rental areas subject to criteria and procedures established 
by the Secretary''.

    (c) <<NOTE: 42 USC 1437f note.>>  Effective Date.--The amendments 
made by this section shall take effect upon the date of the enactment of 
this Act.
SEC. 108. COLLECTION OF UTILITY DATA.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following new paragraph:
            ``(20) Collection of utility data.--
                    ``(A) <<NOTE: Determination.>>  Publication.--The 
                Secretary shall, to the extent that data can be 
                collected cost effectively, regularly publish such data 
                regarding utility consumption and costs in local areas 
                as the Secretary determines will be useful for the 
                establishment of allowances for tenant-paid utilities 
                for families assisted under this subsection.
                    ``(B) Use of data.--The Secretary shall provide such 
                data in a manner that--
                          ``(i) avoids unnecessary administrative 
                      burdens for public housing agencies and owners; 
                      and
                          ``(ii) protects families in various unit sizes 
                      and building types, and using various utilities, 
                      from high rent and utility cost burdens relative 
                      to income.''.
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

    (a) Capital Fund Replacement Reserves.--Section 9 of the United 
States Housing Act of 1937 (42 U.S.C. 1437g) is amended--
            (1) in subsection (j), by adding at the end the following 
        new paragraph:
            ``(7) Treatment of replacement reserve.--The requirements of 
        this subsection shall not apply to funds held in replacement 
        reserves established pursuant to subsection (n).''; and
            (2) by adding at the end the following new subsection:

    ``(n) Establishment of Replacement Reserves.--

[[Page 130 STAT. 802]]

            ``(1) In general.--Public housing agencies shall be 
        permitted to establish a replacement reserve to fund any of the 
        capital activities listed in subsection (d)(1).
            ``(2) Source and amount of funds for replacement reserve.--
        At any time, a public housing agency may deposit funds from such 
        agency's Capital Fund into a replacement reserve, subject to the 
        following:
                    ``(A) At the discretion of the Secretary, public 
                housing agencies may transfer and hold in a replacement 
                reserve funds originating from additional sources.
                    ``(B) No minimum transfer of funds to a replacement 
                reserve shall be required.
                    ``(C) <<NOTE: Determination.>>  At any time, a 
                public housing agency may not hold in a replacement 
                reserve more than the amount the public housing 
                authority has determined necessary to satisfy the 
                anticipated capital needs of properties in its portfolio 
                assisted under this section, as outlined in its Capital 
                Fund 5-Year Action Plan, or a comparable plan, as 
                determined by the Secretary.
                    ``(D) <<NOTE: Regulations.>>  The Secretary may 
                establish, by regulation, a maximum replacement reserve 
                level or levels that are below amounts determined under 
                subparagraph (C), which may be based upon the size of 
                the portfolio assisted under this section or other 
                factors.
            ``(3) Transfer of operating funds.--In first establishing a 
        replacement reserve, the Secretary may allow public housing 
        agencies to transfer more than 20 percent of its operating funds 
        into its replacement reserve.
            ``(4) Expenditure.--Funds in a replacement reserve may be 
        used for purposes authorized by subsection (d)(1) and contained 
        in its Capital Fund 5-Year Action Plan.
            ``(5) Management and report.--The Secretary shall establish 
        appropriate accounting and reporting requirements to ensure that 
        public housing agencies are spending funds on eligible projects 
        and that funds in the replacement reserve are connected to 
        capital needs.''.

    (b) Flexibility of Operating Fund Amounts.--Paragraph (1) of section 
9(g) of the United States Housing Act of 1937 (42 U.S.C. 1437g(g)(1)) is 
amended--
            (1) by striking ``(1)'' and all that follows through ``--
        Of'' and inserting the following:
            ``(1) Flexibility in use of funds.--
                    ``(A) Flexibility for capital fund amounts.--Of''; 
                and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Flexibility for operating fund amounts.--Of 
                any amounts appropriated for fiscal year 2016 or any 
                fiscal year thereafter that are allocated for fiscal 
                year 2016 or any fiscal year thereafter from the 
                Operating Fund for any public housing agency, the agency 
                may use not more than 20 percent for activities that are 
                eligible under subsection (d) for assistance with 
                amounts from the Capital Fund, but only if the public 
                housing plan under section 5A for the agency provides 
                for such use.''.

[[Page 130 STAT. 803]]

SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT OF 
                        FOSTER CARE.

    Section 8(x) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(x)) is amended--
            (1) in paragraph (2)(B)--
                    (A) by striking ``18 months'' and inserting ``36 
                months'';
                    (B) by striking ``21 years of age'' and inserting 
                ``24 years of age''; and
                    (C) by inserting after ``have left foster care'' the 
                following: ``, or will leave foster care within 90 days, 
                in accordance with a transition plan described in 
                section 475(5)(H) of the Social Security Act, and is 
                homeless or is at risk of becoming homeless'';
            (2) by redesignating paragraph (4) as paragraph (5); and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) <<NOTE: Deadline. Time period. Effective 
        date. Consultation. Guidance.>>  Coordination between public 
        housing agencies and public child welfare agencies.--The 
        Secretary shall, not later than the expiration of the 180-day 
        period beginning on the date of the enactment of the Housing 
        Opportunity Through Modernization Act of 2016 and after 
        consultation with other appropriate Federal agencies, issue 
        guidance to improve coordination between public housing agencies 
        and public child welfare agencies in carrying out the program 
        under this subsection, which shall provide guidance on--
                    ``(A) identifying eligible recipients for assistance 
                under this subsection;
                    ``(B) coordinating with other local youth and family 
                providers in the community and participating in the 
                Continuum of Care program established under subtitle C 
                of title IV of the McKinney-Vento Homeless Assistance 
                Act (42 U.S.C. 11381 et seq.);
                    ``(C) implementing housing strategies to assist 
                eligible families and youth;
                    ``(D) aligning system goals to improve outcomes for 
                families and youth and reducing lapses in housing for 
                families and youth; and
                    ``(E) identifying resources that are available to 
                eligible families and youth to provide supportive 
                services available through parts B and E of title IV of 
                the Social Security Act (42 U.S.C. 621 et seq.; 670 et 
                seq.) or that the head of household of a family or youth 
                may be entitled to receive under section 477 of the 
                Social Security Act (42 U.S.C. 677).''.
SEC. 111. PUBLIC HOUSING HEATING GUIDELINES.

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(o) <<NOTE: Publication.>>  Public Housing Heating Guidelines.--
The Secretary shall publish model guidelines for minimum heating 
requirements for public housing dwelling units operated by public 
housing agencies receiving assistance under this section.''.
SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING.

    (a) In General.--Section 8(o)(12) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(12)) is amended--

[[Page 130 STAT. 804]]

            (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).

    (b) <<NOTE: Notice. 42 USC 1437f note.>>  Effective Date.--The 
Secretary of Housing and Urban Development shall issue notice to 
implement the amendments made by subsection (a) and such amendments 
shall take effect upon such issuance.
SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS.

    Section 214(a)(7) of the Housing and Community Development Act of 
1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ``such alien'' and 
all that follows through the period at the end and inserting ``any 
citizen or national of the United States shall be entitled to a 
preference or priority in receiving financial assistance before any such 
alien who is otherwise eligible for assistance.''.
SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD MEMBER 
                        REQUIREMENT.

    Subsection (b) of section 2 of the United States Housing Act of 1937 
(42 U.S.C. 1437(b)) is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (3)'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Exception for certain jurisdictions.--
                    ``(A) Exception.--A covered agency (as such term is 
                defined in subparagraph (C) of this paragraph) shall not 
                be required to include on the board of directors or a 
                similar governing board of such agency a member 
                described in paragraph (1).
                    ``(B) <<NOTE: Establishment.>>  Advisory board 
                requirement.--Each covered agency that administers 
                Federal housing assistance under section 8 (42 U.S.C. 
                1437f) that chooses not to include

[[Page 130 STAT. 805]]

                a member described in paragraph (1) on the board of 
                directors or a similar governing board of the agency 
                shall establish an advisory board of not less than 6 
                residents of public housing or recipients of assistance 
                under section 8 (42 U.S.C. 1437f) to provide advice and 
                comment to the agency or other administering entity on 
                issues related to public housing and section 8. Such 
                advisory board shall meet not less than quarterly.
                    ``(C) <<NOTE: Definition.>>  Covered agency or 
                entity.--For purposes of this paragraph, the term 
                `covered agency' means a public housing agency or such 
                other entity that administers Federal housing assistance 
                for--
                          ``(I) the Housing Authority of the county of 
                      Los Angeles, California; or
                          ``(ii) any of the States of Alaska, Iowa, and 
                      Mississippi.''.

                         TITLE II--RURAL HOUSING

SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN APPROVAL.

    Subsection (h) of section 502 of the Housing Act of 1949 (42 U.S.C. 
1472(h)) is amended by adding at the end the following new paragraph:
            ``(18) <<NOTE: Standards.>>  Delegation of approval.--The 
        Secretary may delegate, in part or in full, the Secretary's 
        authority to approve and execute binding Rural Housing Service 
        loan guarantees pursuant to this subsection to certain preferred 
        lenders, in accordance with standards established by the 
        Secretary.''.
SEC. 202. GUARANTEED UNDERWRITING USER FEE.

    Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is amended 
by adding at the end the following new subsection:
    ``(i) Guaranteed Underwriting User Fee.--
            ``(1) Authority; maximum amount.--The Secretary may assess 
        and collect a fee for a lender to access the automated 
        underwriting systems of the Department in connection with such 
        lender's participation in the single family loan program under 
        this section and only in an amount necessary to cover the costs 
        of information technology enhancements, improvements, 
        maintenance, and development for automated underwriting systems 
        used in connection with the single family loan program under 
        this section, except that such fee shall not exceed $50 per 
        loan.
            ``(2) Crediting; availability.--Any amounts collected from 
        such fees shall be credited to the Rural Development Expense 
        Account as offsetting collections and shall remain available 
        until expended, in the amounts provided in appropriation Acts, 
        solely for expenses described in paragraph (1).''.

[[Page 130 STAT. 806]]

           TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS

SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE INSURANCE 
                        FOR CONDOMINIUMS.

    Section 203 of the National Housing Act (12 U.S.C. 1709) is amended 
by adding at the end the following new subsection:
    ``(y) Requirements for Mortgages for Condominiums.--
            ``(1) Project recertification requirements.--Notwithstanding 
        any other law, regulation, or guideline of the Secretary, 
        including chapter 2.4 of the Condominium Project Approval and 
        Processing Guide of the FHA, the Secretary shall streamline the 
        project certification requirements that are applicable to the 
        insurance under this section for mortgages for condominium 
        projects so that recertifications are substantially less 
        burdensome than certifications. The Secretary shall consider 
        lengthening the time between certifications for approved 
        properties, and allowing updating of information rather than 
        resubmission.
            ``(2) <<NOTE: Determination.>>  Commercial space 
        requirements.--Notwithstanding any other law, regulation, or 
        guideline of the Secretary, including chapter 2.1.3 of the 
        Condominium Project Approval and Processing Guide of the FHA, in 
        providing for exceptions to the requirement for the insurance of 
        a mortgage on a condominium property under this section 
        regarding the percentage of the floor space of a condominium 
        property that may be used for nonresidential or commercial 
        purposes, the Secretary shall provide that--
                    ``(A) any request for such an exception and the 
                determination of the disposition of such request may be 
                made, at the option of the requester, under the direct 
                endorsement lender review and approval process or under 
                the HUD review and approval process through the 
                applicable field office of the Department; and
                    ``(B) in determining whether to allow such an 
                exception for a condominium property, factors relating 
                to the economy for the locality in which such project is 
                located or specific to project, including the total 
                number of family units in the project, shall be 
                considered.
        Not <<NOTE: Deadline. Time period. Effective 
        date. Regulations. Standards. Penalties.>>  later than the 
        expiration of the 90-day period beginning on the date of the 
        enactment of this paragraph, the Secretary shall issue 
        regulations to implement this paragraph, which shall include any 
        standards, training requirements, and remedies and penalties 
        that the Secretary considers appropriate.
            ``(3) <<NOTE: Applicability.>>  Transfer fees.--
        Notwithstanding any other law, regulation, or guideline of the 
        Secretary, including chapter 1.8.8 of the Condominium Project 
        Approval and Processing Guide of the FHA and section 203.41 of 
        the Secretary's regulations (24 CFR 203.41), existing standards 
        of the Federal Housing Finance Agency relating to encumbrances 
        under private transfer fee covenants shall apply to the 
        insurance of mortgages by the Secretary under this section to 
        the same extent and in the same manner that such standards apply 
        to the purchasing, investing in, and otherwise dealing in 
        mortgages by the Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation. <<NOTE: Federal 
        Register, publication. Notice. Deadline.>>  If the provisions of 
        part

[[Page 130 STAT. 807]]

        1228 of the Director of the Federal Housing Finance Agency's 
        regulations (12 CFR part 1228) are amended or otherwise changed 
        after the date of the enactment of this paragraph, the Secretary 
        of Housing and Urban Development shall adopt any such amendments 
        or changes for purposes of this paragraph, unless the Secretary 
        causes to be published in the Federal Register a notice 
        explaining why the Secretary will disregard such amendments or 
        changes within 90 days after the effective date of such 
        amendments or changes.
            ``(4) Owner-occupancy requirement.--
                    ``(A) <<NOTE: Deadline. Time period. Effective 
                date. Regulations. Notice. Guidance.>>  Establishment of 
                percentage requirement.--Not later than the expiration 
                of the 90-day period beginning on the date of the 
                enactment of this paragraph, the Secretary shall, by 
                rule, notice, or mortgagee letter, issue guidance 
                regarding the percentage of units that must be occupied 
                by the owners as a principal residence or a secondary 
                residence (as such terms are defined by the Secretary), 
                or must have been sold to owners who intend to meet such 
                occupancy requirements, including justifications for the 
                percentage requirements, in order for a condominium 
                project to be acceptable to the Secretary for insurance 
                under this section of a mortgage within such condominium 
                property.
                    ``(B) <<NOTE: Applicability.>>  Failure to act.--If 
                the Secretary fails to issue the guidance required under 
                subparagraph (A) before the expiration of the 90-day 
                period specified in such clause, the following 
                provisions shall apply:
                          ``(i) 35 percent requirement.--In order for a 
                      condominium project to be acceptable to the 
                      Secretary for insurance under this section, at 
                      least 35 percent of all family units (including 
                      units not covered by FHA-insured mortgages) must 
                      be occupied by the owners as a principal residence 
                      or a secondary residence (as such terms are 
                      defined by the Secretary), or must have been sold 
                      to owners who intend to meet such occupancy 
                      requirement.
                          ``(ii) Other considerations.--The Secretary 
                      may increase the percentage applicable pursuant to 
                      clause (i) to a condominium project on a project-
                      by-project or regional basis, and in determining 
                      such percentage for a project shall consider 
                      factors relating to the economy for the locality 
                      in which such project is located or specific to 
                      project, including the total number of family 
                      units in the project.''.

       TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS

SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF CARE 
                        PROGRAM.

    (a) Definition.--Subtitle C of the McKinney-Vento Homeless 
Assistance Act is amended--
            (1) by redesignating sections 432 and 433 (42 U.S.C. 11387, 
        11388) as sections 433 and 434, respectively; and
            (2) by inserting after section 431 (42 U.S.C. 11386e) the 
        following new section:

[[Page 130 STAT. 808]]

``SEC. 432. <<NOTE: 42 USC 11386f.>>  GEOGRAPHIC AREAS.

    ``(a) <<NOTE: Notice.>>  Requirement to Define.--For purposes of 
this subtitle, the term `geographic area' shall have such meaning as the 
Secretary shall by notice provide.

    ``(b) <<NOTE: Deadline. Time period. Effective date.>>  Issuance of 
Notice.--Not later than the expiration of the 90-day period beginning on 
the date of the enactment of the Housing Opportunity Through 
Modernization Act of 2016, the Secretary shall issue a notice setting 
forth the definition required by subsection (a).''.

    (b) Clerical Amendment.--The table of contents in section 101(b) of 
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 note) is 
amended by striking the items relating to sections 432 and 433 and 
inserting the following new items:

``Sec. 432. Geographic areas.
``Sec. 433. Regulations.
``Sec. 434. Reports to Congress.''.

SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL 
                        REDEVELOPMENT AUTHORITIES IN EMERGENCY 
                        SOLUTIONS GRANTS.

    Section 414(c) of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11373(c)) is amended--
            (1) in the subsection heading, by inserting ``, Public 
        Housing Agencies, and Local Redevelopment Authorities'' after 
        ``Organizations''; and
            (2) in the first sentence, by inserting before the period at 
        the end the following: ``, to public housing agencies (as 
        defined under section 3(b)(6) of the United States Housing Act 
        of 1937), or to local redevelopment authorities (as defined 
        under State law)''.
SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE DEPARTMENT 
                        OF HOUSING AND URBAN DEVELOPMENT.

    (a) Transfer of Position to Office of the Secretary.--Section 4 of 
the Department of Housing and Urban Development Act (42 U.S.C. 3533) is 
amended by adding at the end the following new subsection:
    ``(h) Special Assistant for Veterans Affairs.--
            ``(1) Position.--There shall be in the Office of the 
        Secretary a Special Assistant for Veterans Affairs, who shall 
        report directly to the Secretary.
            ``(2) Appointment.--The Special Assistant for Veterans 
        Affairs shall be appointed based solely on merit and shall be 
        covered under the provisions of title 5, United States Code, 
        governing appointments in the competitive service.
            ``(3) Responsibilities.--The Special Assistant for Veterans 
        Affairs shall be responsible for--
                    ``(A) ensuring veterans have fair access to housing 
                and homeless assistance under each program of the 
                Department providing either such assistance;
                    ``(B) coordinating all programs and activities of 
                the Department relating to veterans;
                    ``(C) serving as a liaison for the Department with 
                the Department of Veterans Affairs, including 
                establishing and maintaining relationships with the 
                Secretary of Veterans Affairs;

[[Page 130 STAT. 809]]

                    ``(D) serving as a liaison for the Department, and 
                establishing and maintaining relationships with the 
                United States Interagency Council on Homelessness and 
                officials of State, local, regional, and nongovernmental 
                organizations concerned with veterans;
                    ``(E) providing information and advice regarding--
                          ``(i) sponsoring housing projects for veterans 
                      assisted under programs administered by the 
                      Department; or
                          ``(ii) assisting veterans in obtaining housing 
                      or homeless assistance under programs administered 
                      by the Department;
                    ``(F) coordinating with the Secretary of Housing and 
                Urban Development and the Secretary of Veterans Affairs 
                in carrying out section 404 of the Housing Opportunity 
                Through Modernization Act of 2016;
                    ``(G) collaborating with the Department of Veterans 
                Affairs on making joint recommendations to the Congress, 
                the Secretary of Housing and Urban Development, and the 
                Secretary of Veterans Affairs on how to better 
                coordinate and improve services to veterans under both 
                Department of Housing and Urban Development and 
                Department of Veteran Affairs veterans housing programs, 
                including ways to improve the Independent Living Program 
                of the Department of Veteran Affairs; and
                    ``(H) carrying out such other duties as may be 
                assigned to the Special Assistant by the Secretary or by 
                law.''.

    (b) <<NOTE: 42 USC 3533 note. Termination.>>  Transfer of Position 
in Office of Deputy Assistant Secretary for Special Needs.--On the date 
that the initial Special Assistant for Veterans Affairs is appointed 
pursuant to section 4(h)(2) of the Department of Housing and Urban 
Development Act, as added by subsection (a) of this section, the 
position of Special Assistant for Veterans Programs in the Office of the 
Deputy Assistant Secretary for Special Needs of the Department of 
Housing and Urban Development shall be terminated.
SEC. 404. <<NOTE: 42 USC 11313 note.>>  ANNUAL SUPPLEMENTAL REPORT 
                        ON VETERANS HOMELESSNESS.

    (a) <<NOTE: Coordination.>>  In General.--The Secretary of Housing 
and Urban Development and the Secretary of Veterans Affairs, in 
coordination with the United States Interagency Council on Homelessness, 
shall submit annually to the Committees of the Congress specified in 
subsection (b), together with the annual reports required by such 
Secretaries under section 203(c)(1) of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11313(c)(1)), a supplemental report that 
includes the following information with respect to the preceding year:
            (1) The same information, for such preceding year, that was 
        included with respect to 2010 in the report by the Secretary of 
        Housing and Urban Development and the Secretary of Veterans 
        Affairs entitled ``Veterans Homelessness: A Supplemental Report 
        to the 2010 Annual Homeless Assessment Report to Congress''.
            (2) Information regarding the activities of the Department 
        of Housing and Urban Development relating to veterans during 
        such preceding year, as follows:

[[Page 130 STAT. 810]]

                    (A) The number of veterans provided assistance under 
                the housing choice voucher program for Veterans Affairs 
                supported housing under section 8(o)(19) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), the 
                socioeconomic characteristics of such homeless veterans, 
                and the number, types, and locations of entities 
                contracted under such section to administer the 
                vouchers.
                    (B) <<NOTE: Summary.>>  A summary description of the 
                special considerations made for veterans under public 
                housing agency plans submitted pursuant to section 5A of 
                the United States Housing Act of 1937 (42 U.S.C. 1437c-
                1) and under comprehensive housing affordability 
                strategies submitted pursuant to section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12705).
                    (C) A description of the activities of the Special 
                Assistant for Veterans Affairs of the Department of 
                Housing and Urban Development.
                    (D) A description of the efforts of the Department 
                of Housing and Urban Development and the other members 
                of the United States Interagency Council on Homelessness 
                to coordinate the delivery of housing and services to 
                veterans.
                    (E) The cost to the Department of Housing and Urban 
                Development of administering the programs and activities 
                relating to veterans.
                    (F) Any other information that the Secretary of 
                Housing and Urban Development and the Secretary of 
                Veterans Affairs consider relevant in assessing the 
                programs and activities of the Department of Housing and 
                Urban Development relating to veterans.

    (b) Committees.--The Committees of the Congress specified in this 
subsection are as follows:
            (1) The Committee on Banking, Housing, and Urban Affairs of 
        the Senate.
            (2) The Committee on Veterans' Affairs of the Senate.
            (3) The Committee on Appropriations of the Senate.
            (4) The Committee on Financial Services of the House of 
        Representatives.
            (5) The Committee on Veterans' Affairs of the House of 
        Representatives.
            (6) The Committee on Appropriations of the House of 
        Representatives.
SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM OF CARE 
                        PROGRAM REGULATIONS.

    Not <<NOTE: Deadline. Time period. Effective date.>>  later than the 
expiration of the 30-day period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Development shall re-
open the period for public comment regarding the Secretary's interim 
rule entitled ``Homeless Emergency Assistance and Rapid Transition to 
Housing: Continuum of Care Program'', published in the Federal Register 
on July 31, 2012 (77 Fed. Reg. 45422; Docket No. FR-5476-I-01). Upon re-
opening, such comment period shall remain open for a period of not fewer 
than 60 days.

[[Page 130 STAT. 811]]

                         TITLE V--MISCELLANEOUS

SEC. 501. <<NOTE: 42 USC 3544 note.>>  INCLUSION OF DISASTER 
                        HOUSING ASSISTANCE PROGRAM IN CERTAIN 
                        FRAUD AND ABUSE PREVENTION MEASURES.

    The Disaster Housing Assistance Program administered by the 
Department of Housing and Urban Development shall be considered a 
``program of the Department of Housing and Urban Development'' under 
section 904 of the Stewart B. McKinney Homeless Assistance Amendments 
Act of 1988 (42 U.S.C. 3544) for the purpose of income verifications.
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP 
                        HOMEOWNERSHIP OPPORTUNITY PROGRAM.

    Section 11 of the Housing Opportunity Program Extension Act of 1996 
(42 U.S.C. 12805 note) is amended by inserting after subsection (f) the 
following new subsection:
    ``(g) Energy Efficiency Requirements.--The Secretary may not require 
any dwelling developed using amounts from a grant made under this 
section to meet any energy efficiency standards other than the standards 
applicable at such time pursuant to section 109 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12709) to housing specified 
in subsection (a) of such section.''.
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED 
                        INTEROPERABILITY.

    (a) Data Exchange Standardization.--Title I of the United States 
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the 
end the following new section:
``SEC. 37. <<NOTE: 42 USC 1437z-9.>>  DATA EXCHANGE STANDARDS FOR 
                      IMPROVED INTEROPERABILITY.

    ``(a) <<NOTE: Consultation.>>  Designation.--The Secretary shall, in 
consultation with an interagency work group established by the Office of 
Management and Budget, and considering State government perspectives, 
designate data exchange standards to govern, under this Act--
            ``(1) necessary categories of information that State 
        agencies operating related programs are required under 
        applicable law to electronically exchange with another State 
        agency; and
            ``(2) Federal reporting and data exchange required under 
        applicable law.

    ``(b) Requirements.--The data exchange standards required by 
subsection (a) shall, to the maximum extent practicable--
            ``(1) incorporate a widely accepted, nonproprietary, 
        searchable, computer-readable format, such as the eXtensible 
        Markup Language;
            ``(2) contain interoperable standards developed and 
        maintained by intergovernmental partnerships, such as the 
        National Information Exchange Model;
            ``(3) incorporate interoperable standards developed and 
        maintained by Federal entities with authority over contracting 
        and financial assistance;
            ``(4) be consistent with and implement applicable accounting 
        principles;
            ``(5) be implemented in a manner that is cost- effective and 
        improves program efficiency and effectiveness; and
            ``(6) be capable of being continually upgraded as necessary.

[[Page 130 STAT. 812]]

    ``(c) Rules of Construction.--Nothing in this section requires a 
change to existing data exchange standards for Federal reporting found 
to be effective and efficient.''.
    (b) <<NOTE: 42 USC 1437z-9 note. Deadline. Regulations.>>  
Applicability.--
            (1) In general.--Not later than 2 years after the date of 
        the enactment of this Act, the Secretary of Housing and Urban 
        Development shall issue a proposed rule to carry out the 
        amendments made by subsection (a).
            (2) Requirements.--The rule shall--
                    (A) identify federally required data exchanges;
                    (B) include specification and timing of exchanges to 
                be standardized;
                    (C) address the factors used in determining whether 
                and when to standardize data exchanges;
                    (D) specify State implementation options; and
                    (E) describe future milestones.

                            TITLE VI--REPORTS

SEC. 601. <<NOTE: 42 USC 3536a note.>>  REPORT ON INTERAGENCY 
                        FAMILY ECONOMIC EMPOWERMENT STRATEGIES.

    The <<NOTE: Consultation.>>  Secretary of Housing and Urban 
Development, in consultation with the Secretary of Labor, shall submit a 
report to the Congress annually that describes--
            (1) any interagency strategies of such Departments that are 
        designed to improve family economic empowerment by linking 
        housing assistance with essential supportive services, such as 
        employment counseling and training, financial education and 
        growth, childcare, transportation, meals, youth recreational 
        activities, and other supportive services; and
            (2) any actions taken in the preceding year to carry out 
        such strategies and the extent of progress achieved by such 
        actions.

         TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT 
                        HOMELESSNESS FOR INDIVIDUALS LIVING WITH 
                        HIV OR AIDS.

    (a) In General.--Subsection (c) of section 854 of the AIDS Housing 
Opportunity Act (42 U.S.C. 12903(c)) is amended by--
            (1) redesignating paragraph (3) as paragraph (5); and
            (2) striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Allocation of resources.--
                    ``(A) Allocation formula.--The Secretary shall 
                allocate 90 percent of the amount approved in 
                appropriations Acts under section 863 among States and 
                metropolitan statistical areas as follows:
                          ``(I) 75 percent of such amounts among--
                                    ``(I) cities that are the most 
                                populous unit of general local 
                                government in a metropolitan statistical 
                                area with a population greater than 
                                500,000, as determined on the basis of 
                                the most recent

[[Page 130 STAT. 813]]

                                census, and with more than 2,000 
                                individuals living with HIV or AIDS, 
                                using the data specified in subparagraph 
                                (B); and
                                    ``(II) States with more than 2,000 
                                individuals living with HIV or AIDS 
                                outside of metropolitan statistical 
                                areas.
                          ``(ii) 25 percent of such amounts among States 
                      and metropolitan statistical areas based on the 
                      method described in subparagraph (C).
                    ``(B) Source of data.--For purposes of allocating 
                amounts under this paragraph for any fiscal year, the 
                number of individuals living with HIV or AIDS shall be 
                the number of such individuals as confirmed by the 
                Director of the Centers for Disease Control and 
                Prevention, as of December 31 of the most recent 
                calendar year for which such data is available.
                    ``(C) Allocation under subparagraph (A)(ii).--For 
                purposes of allocating amounts under subparagraph 
                (A)(ii), the Secretary shall develop a method that 
                accounts for--
                          ``(I) differences in housing costs among 
                      States and metropolitan statistical areas based on 
                      the fair market rental established pursuant to 
                      section 8(c) of the United States Housing Act of 
                      1937 (42 U.S.C. 1437f(c)) or another methodology 
                      established by the Secretary through regulation; 
                      and
                          ``(ii) differences in poverty rates among 
                      States and metropolitan statistical areas based on 
                      area poverty indexes or another methodology 
                      established by the Secretary through regulation.
            ``(2) Maintaining grants.--
                    ``(A) Continued eligibility of fiscal year 2016 
                grantees.--A grantee that received an allocation in 
                fiscal year 2016 shall continue to be eligible for 
                allocations under paragraph (1) in subsequent fiscal 
                years, subject to--
                          ``(I) the amounts available from 
                      appropriations Acts under section 863;
                          ``(ii) approval by the Secretary of the most 
                      recent comprehensive housing affordability 
                      strategy for the grantee approved under section 
                      105; and
                          ``(iii) the requirements of subparagraph (C).
                    ``(B) Adjustments.--Allocations to grantees 
                described in subparagraph (A) shall be adjusted annually 
                based on the administrative provisions included in 
                fiscal year 2016 appropriations Acts.
                    ``(C) <<NOTE: Time period.>>  Redetermination of 
                continued eligibility.--The Secretary shall redetermine 
                the continued eligibility of a grantee that received an 
                allocation in fiscal year 2016 at least once during the 
                10-year period following fiscal year 2016.
                    ``(D) Adjustment to grants.--For each of fiscal 
                years 2017, 2018, 2019, 2020, and 2021, the Secretary 
                shall ensure that a grantee that received an allocation 
                in the prior fiscal year does not receive an allocation 
                that is 5 percent less than or 10 percent greater than 
                the amount allocated to such grantee in the preceding 
                fiscal year.
            ``(3) <<NOTE: Contracts.>>  Alternative grantees.--

[[Page 130 STAT. 814]]

                    ``(A) Requirements.--The Secretary may award funds 
                reserved for a grantee eligible under paragraph (1) to 
                an alternative grantee if--
                          ``(I) <<NOTE: Contracts.>>  the grantee 
                      submits to the Secretary a written agreement 
                      between the grantee and the alternative grantee 
                      that describes how the alternative grantee will 
                      take actions consistent with the applicable 
                      comprehensive housing affordability strategy 
                      approved under section 105 of this Act;
                          ``(ii) the Secretary approves the written 
                      agreement described in clause (I) and agrees to 
                      award funds to the alternative grantee; and
                          ``(iii) the written agreement does not exceed 
                      a term of 10 years.
                    ``(B) Renewal.--An agreement approved pursuant to 
                subparagraph (A) may be renewed by the parties with the 
                approval of the Secretary.
                    ``(C) Definition.--In this paragraph, the term 
                `alternative grantee' means a public housing agency (as 
                defined in section 3(b) of the United States Housing Act 
                of 1937 (42 U.S.C. 1437a(b))), a unified funding agency 
                (as defined in section 401 of the McKinney-Vento 
                Homeless Assistance Act (42 U.S.C. 11360)), a State, a 
                unit of general local government, or an instrumentality 
                of State or local government.
            ``(4) <<NOTE: Determination.>>  Reallocations.--If a State 
        or metropolitan statistical area declines an allocation under 
        paragraph (1)(A), or the Secretary determines, in accordance 
        with criteria specified in regulation, that a State or 
        metropolitan statistical area that is eligible for an allocation 
        under paragraph (1)(A) is unable to properly administer such 
        allocation, the Secretary shall reallocate any funds reserved 
        for such State or metropolitan statistical area as follows:
                    ``(A) For funds reserved for a State--
                          ``(I) to eligible metropolitan statistical 
                      areas within the State on a pro rata basis; or
                          ``(ii) if there is no eligible metropolitan 
                      statistical areas within a State, to metropolitan 
                      cities and urban counties within the State that 
                      are eligible for grant under section 106 of the 
                      Housing and Community Development Act of 1974 (42 
                      U.S.C. 5306), on a pro rata basis.
                    ``(B) For funds reserved for a metropolitan 
                statistical area, to the State in which the metropolitan 
                statistical area is located.
                    ``(C) If the Secretary is unable to make a 
                reallocation under subparagraph (A) or (B), the 
                Secretary shall make such funds available on a pro rata 
                basis under the formula in paragraph (1)(A).''.

    (b) Amendment to Definitions.--Section 853 of the AIDS Housing 
Opportunity Act (42 U.S.C. 12902) is amended--
            (1) in paragraph (1), by inserting ``or `AIDS' '' before 
        ``means''; and
            (2) by inserting at the end the following new paragraphs:
            ``(15) The term `HIV' means infection with the human 
        immunodeficiency virus.

[[Page 130 STAT. 815]]

            ``(16) The term `individuals living with HIV or AIDS' means, 
        with respect to the counting of cases in a geographic area 
        during a period of time, the sum of--
                    ``(A) the number of living non-AIDS cases of HIV in 
                the area; and
                    ``(B) the number of living cases of AIDS in the 
                area.''.

    Approved July 29, 2016.

LEGISLATIVE HISTORY--H.R. 3700:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 114-397 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 162 (2016):
            Feb. 2, considered and passed House.
            July 14, considered and passed Senate.

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