59–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–216 

SECTION 8 VOUCHER REFORM ACT OF 2007 

JUNE 28, 2007.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. FRANK of Massachusetts, from the Committee on Financial 

Services, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 1851] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1851) to reform the housing choice voucher program 

under section 8 of the United States Housing Act of 1937, having 

considered the same, report favorably thereon with an amendment 

and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 27 

Background and Need for Legislation .................................................................... 27 

Hearings ................................................................................................................... 40 

Committee Consideration ........................................................................................ 41 

Committee Votes ...................................................................................................... 41 

Committee Oversight Findings ............................................................................... 44 

Performance Goals and Objectives ......................................................................... 45 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 45 

Committee Cost Estimate ....................................................................................... 45 

Congressional Budget Office Estimate ................................................................... 45 

Federal Mandates Statement ................................................................................. 53 

Advisory Committee Statement .............................................................................. 53 

Constitutional Authority Statement ...................................................................... 53 

Applicability to Legislative Branch ........................................................................ 53 

Earmark Identification ............................................................................................ 53 

Section-by-Section Analysis of the Legislation ...................................................... 54 


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Changes in Existing Law Made by the Bill, as Reported ..................................... 60 

Additional Views ...................................................................................................... 109 

AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Section 8 Voucher Reform Act of 2007’’. 

SEC. 2. INSPECTION OF DWELLING UNITS. 

(a) IN GENERAL.—Section 8(o)(8) of the United States Housing Act of 1937 (42 

U.S.C. 1437f(o)(8)) is amended—

(1) by striking subparagraph (A) and inserting the following new subparagraph: 

‘‘(A) INITIAL INSPECTION.—

‘‘(i) IN GENERAL.—For each dwelling unit for which a housing assistance payment contract is established under this subsection, the public 

housing agency (or other entity pursuant to paragraph (11)) shall inspect the unit before any assistance payment is made to determine 

whether the dwelling unit meets the housing quality standards under 

subparagraph (B), except as provided in clause (ii) or (iii) of this subparagraph. 

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

of any dwelling unit that is determined, pursuant to an inspection 

under clause (i), not to meet the housing quality standards under subparagraph (B), assistance payments may be made for the unit notwithstanding subparagraph (C) if failure to meet such standards is a result 

only of non-life threatening conditions. A public housing agency making 

assistance payments pursuant to this clause for a dwelling unit shall, 

30 days after the beginning of the period for which such payments are 

made, suspend any assistance payments for the unit if any deficiency 

resulting in noncompliance with the housing quality standards has not 

been corrected by such time, and may not resume such payments until 

each such deficiency has been corrected. 

‘‘(iii) PROJECTS RECEIVING CERTAIN FEDERAL HOUSING SUBSIDIES.—In 

the case of any property that within the previous 12 months has been 

determined to meet housing quality and safety standards under any 

Federal housing program inspection standard, including the program 

under section 42 of the Internal Revenue Code of 1986 or under subtitle 

A of title II of the Cranston Gonzalez National Affordable Housing Act 

of 1990, a public housing agency may authorize occupancy before the 

inspection under clause (i) has been completed, and may make assistance payments retroactive to the beginning of the lease term after the 

unit has been determined pursuant to an inspection under clause (i) to 

meet the housing quality standards under subparagraph (B).’’; 

(2) by striking subparagraph (D) and inserting the following new subparagraph: 

‘‘(D) BIENNIAL INSPECTIONS.—

‘‘(i) REQUIREMENT.—Each public housing agency providing assistance 

under this subsection (or other entity, as provided in paragraph (11)) 

shall, for each assisted dwelling unit, make biennial inspections during 

the term of the housing assistance payments contract for the unit to 

determine whether the unit is maintained in accordance with the requirements under subparagraph (A). The agency (or other entity) shall 

retain the records of the inspection for a reasonable time and shall 

make the records available upon request to the Secretary, the Inspector 

General for the Department of Housing and Urban Development, and 

any auditor conducting an audit under section 5(h). 

‘‘(ii) SUFFICIENT INSPECTION.—An inspection of a property shall be 

sufficient to comply with the inspection requirement under clause (i) 

if—

‘‘(I) the inspection was conducted pursuant to requirements 

under a Federal, State, or local housing assistance program (including the HOME investment partnerships program under title II 

of the Cranston-Gonzalez National Affordable Housing Act (42 

U.S.C. 12721 et seq.)); and 


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‘‘(II) pursuant to such inspection, the property was determined to 

meet the standards or requirements regarding housing quality or 

safety applicable to units assisted under such program, and, if a 

non-Federal standard was used, the public housing agency has certified to the Secretary that such standards or requirements provide 

the same protection to occupants of dwelling units meeting such 

standards or requirements as, or greater protection than, the housing quality standards under subparagraph (B).’’; and 

(3) by adding at the end the following new subparagraph: 

‘‘(F) ENFORCEMENT OF HOUSING QUALITY STANDARDS.—

‘‘(i) DETERMINATION OF NONCOMPLIANCE.—A dwelling unit that is covered by a housing assistance payments contract under this subsection 

shall be considered, for purposes of this subparagraph, to be in noncompliance with the housing quality standards under subparagraph (B) 

if—

‘‘(I) the public housing agency or an inspector authorized by the 

State or unit of local government determines upon inspection of the 

unit that the unit fails to comply with such standards; 

‘‘(II) the agency or inspector notifies the owner of the unit in 

writing of such failure to comply; and 

‘‘(III) the failure to comply is not corrected within 90 days after 

receipt of such notice. 

‘‘(ii) WITHHOLDING AND RELEASE OF ASSISTANCE AMOUNTS.—The public housing agency shall withhold all of the assistance amounts under 

this subsection with respect to a dwelling unit that is in noncompliance 

with housing quality standards under subparagraph (B). Subject to 

clause (iii), the agency shall promptly release any withheld amounts to 

the owner of the dwelling unit upon completion of repairs that remedy 

such noncompliance. 

‘‘(iii) USE OF WITHHELD ASSISTANCE TO PAY FOR REPAIRS.—The public 

housing agency may use such amounts withheld to make repairs to the 

dwelling unit or to contract to have repairs made (or to contract with 

an inspector referred to in clause (i)(I) to make or contract for such repairs), and shall subtract the cost of such repairs from any amounts released to the owner of the unit upon remedying such noncompliance. 

‘‘(iv) PROTECTION OF TENANTS.—An owner of a dwelling unit may not 

terminate the tenancy of any tenant or refuse to renew a lease for such 

unit because of the withholding of assistance pursuant to this subparagraph. 

‘‘(v) TERMINATION OF LEASE OR ASSISTANCE PAYMENTS CONTRACT.—If 

assistance amounts under this section for a dwelling unit are withheld 

pursuant to clause (ii) and the owner does not correct the noncompliance before the expiration of the lease for the dwelling unit and such 

lease is not renewed, the Secretary shall recapture any such amounts 

from the public housing agency. 

‘‘(vi) APPLICABILITY.—This subparagraph shall apply to any dwelling 

unit for which a housing assistance payments contract is entered into 

or renewed after the date of the effectiveness of the regulations implementing this subparagraph.’’. 

(b) REGULATIONS.—The Secretary of Housing and Urban Development shall issue 

any regulations necessary to carry out the amendment made by subsection (a)(3) not 

later than the expiration of the 12-month period beginning upon the date of the enactment of this Act. Such regulations shall take effect not later than the expiration 

of the 90-day period beginning upon such issuance. This subsection shall take effect 

upon enactment of this Act. 

SEC. 3. RENT REFORM AND INCOME REVIEWS. 

(a) RENT FOR PUBLIC HOUSING AND SECTION 8 PROGRAMS.—Section 3 of the 

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

(1) in subsection (a)—

(A) in paragraph (1) by inserting ‘‘LOW-INCOME OCCUPANCY REQUIREMENT

AND RENTAL PAYMENTS.—’’ after ‘‘(1)’’; 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 subparagraph (B)(i); 


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‘‘(iii) upon the request of the family, at any time the income or deductions (under subsection (b)(5)) of the family change by an amount that 

is estimated to result in a decrease of $1,500 (or such lower amount as 

the public housing agency may, at the option of the agency or owner, 

establish) or more in annual adjusted income; and ‘‘(iv) at any time the income or deductions (under subsection (b)(5)) 

of the family change by an amount that is estimated to result in an 

increase of $1,500 or more in annual adjusted income, except that any 

increase in the earned income of a family shall not be considered for 

purposes of this clause (except that earned income may be considered 

if the increase corresponds to previous decreases under clause (iii)), except that a public housing agency or owner may elect not to conduct 

such review in the last three months of a certification period. ‘‘(B) FIXED-INCOME FAMILIES.— ‘‘(i) SELF CERTIFICATION AND 3-YEAR REVIEW.—In the case of any family described in clause (ii), after the initial review of the family’s income 

pursuant to subparagraph (A)(i), the public housing agency or owner 

shall not be required to conduct a review of the family’s income pursuant to subparagraph (A)(ii) for any year for which such family certifies, 

in accordance with such requirements as the Secretary shall establish, 

that the income of the family meets the requirements of clause (ii) of 

this subparagraph, except that the public housing agency or owner 

shall conduct a review of each such family’s income not less than once 

every 3 years. 

‘‘(ii) ELIGIBLE FAMILIES.—A family described in this clause is a family 

who has an income, as of the most recent review pursuant to subparagraph (A) or clause (i) of this subparagraph, of which 90 percent or 

more consists of fixed income, as such term is defined in clause (iii). 

‘‘(iii) FIXED INCOME.—For purposes of this subparagraph, the term 

‘fixed income’ includes income from—

‘‘(I) the supplemental security income program under title XVI of 

the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 

1616(a) of the Social Security Act and payments pursuant to an 

agreement entered into under section 212(b) of Public Law 93–66; 

‘‘(II) Social Security payments; 

‘‘(III) Federal, State, local and private pension plans; and 

‘‘(IV) other periodic payments received from annuities, insurance 

policies, retirement funds, disability or death benefits, and other 

similar types of periodic receipts. 

‘‘(C) IN GENERAL.—Reviews of family income for purposes of this section 

shall be subject to the provisions of section 904 of the Stewart B. McKinney 

Homeless Assistance Amendments Act of 1988. 

‘‘(7) CALCULATION OF INCOME.—

‘‘(A) USE OF PRIOR YEAR’S INCOME.—Except as otherwise provided in this 

paragraph, in determining the income of a family for a year, a public housing agency or owner may use the income of the family as determined by 

the agency or owner for the preceding year, taking into consideration any 

redetermination of income during such prior year pursuant to clause (iii) or 

(iv) of paragraph (6)(A). 

‘‘(B) EARNED INCOME.—For purposes of this section, the earned income of 

a family for a year shall be the amount of earned income by the family in 

the prior year minus an amount equal to 10 percent of the lesser of such 

prior year’s earned income or $10,000, except that the income of a family 

for purposes of section 16 (relating to eligibility for assisted housing and income mix) shall be determined without regard to any reduction under this 

subparagraph. 

‘‘(C) INFLATIONARY ADJUSTMENT FOR FIXED INCOME FAMILIES.—If, for any 

year, a public housing agency or owner determines the income for any family described in paragraph (6)(B)(ii), or the amount of fixed income of any 

other family, based on the prior year’s income or fixed income, respectively, 

pursuant to subparagraph (A), such prior year’s income or fixed income, respectively, shall be adjusted by applying an inflationary factor as the Secretary shall, by regulation, establish. 

‘‘(D) OTHER INCOME.—If, for any year, a public housing agency or owner 

determines the income for any family based on the prior year’s income, with 

respect to prior year calculations of types of income not subject to subparagraph (B), a public housing agency or owner may make other adjustments 

as it considers appropriate to reflect current income. 


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‘‘(E) SAFE HARBOR.—A public housing agency or owner may, to the extent 

such information is available to the public housing agency or owner, determine the family’s income for purposes of this section based on timely income determinations made for purposes of other means-tested Federal public assistance programs (including the program for block grants to States 

for temporary assistance for needy families under part A of title IV of the 

Social Security Act, a program for medicaid assistance under a State plan 

approved under title XIX of the Social Security Act, and the food stamp program as defined in section 3(h) of the Food Stamp Act of 1977). The Secretary shall, in consultation with other appropriate Federal agencies, develop procedures to enable public housing agencies and owners to have access to such income determinations made by other Federal programs. 

‘‘(F) PHA AND OWNER COMPLIANCE.—A public housing agency or owner 

may not be considered to fail to comply with this paragraph or paragraph 

(6) due solely to any de minimus errors made by the agency or owner in 

calculating family incomes.’’; 

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

(3) by redesignating subsection (f) as subsection (d). 

(b) INCOME.—Section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 

1437a(b)) is amended—

(1) by striking paragraph (4) and inserting the following new paragraph: 

‘‘(4) INCOME.—The term ‘income’ means, with respect to a family, income received from all sources by each member of the household who is 18 years of age 

or older or is the head of household or spouse of the head of the household, plus 

unearned income by or on behalf of each dependent who is less than 18 years 

of age, as determined in accordance with criteria prescribed by the Secretary, 

in consultation with the Secretary of Agriculture, subject to the following requirements: 

‘‘(A) INCLUDED AMOUNTS.—Such term includes recurring gifts and receipts, actual income from assets, and profit or loss from a business. 

‘‘(B) EXCLUDED AMOUNTS.—Such term does not include—

‘‘(i) any imputed return on assets; and 

‘‘(ii) any amounts that would be eligible for exclusion under section 

1613(a)(7) of the Social Security Act (42 U.S.C. 1382b(a)(7)). 

‘‘(C) EARNED INCOME OF STUDENTS.—Such term does not include earned 

income of any dependent earned during any period that such dependent is 

attending school on a full-time basis or any grant-in-aid or scholarship 

amounts related to such attendance used for the cost of tuition or books. 

‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.—Income shall be determined without regard to any amounts in or from, or any benefits from, any Coverdell 

education savings account under section 530 of the Internal Revenue Code 

of 1986 or any qualified tuition program under section 529 of such Code. 

‘‘(E) OTHER EXCLUSIONS.—Such term shall not include other exclusions 

from income as are established by the Secretary or any amount required 

by Federal law to be excluded from consideration as income. The Secretary 

may not require a public housing agency or owner to maintain records of 

any amounts excluded from income pursuant to this subparagraph.’’; and 

(2) by striking paragraph (5) and inserting the following new paragraph: 

‘‘(5) ADJUSTED INCOME.—The term ‘adjusted income’ means, with respect to 

a family, the amount (as determined by the public housing agency or owner) 

of the income of the members of the family residing in a dwelling unit or the 

persons on a lease, after any deductions from income as follows: 

‘‘(A) ELDERLY AND DISABLED FAMILIES.—$725 in the case of any family 

that is an elderly family or a disabled family. 

‘‘(B) DEPENDENTS.—In the case of any family that includes a member or 

members who—

‘‘(i) are less than 18 years of age or attending school or vocational 

training on a full-time basis; or 

‘‘(ii) is a person with disabilities who is 18 years of age or older and 

resides in the household, 

$500 for each such member. 

‘‘(C) HEALTH AND MEDICAL EXPENSES.—The amount, if any, by which 10 

percent of annual family income is exceeded by the sum of—

‘‘(i) in the case of any elderly or disabled family, any unreimbursed 

health and medical care expenses; and 

‘‘(ii) any unreimbursed reasonable attendant care and auxiliary apparatus expenses for each handicapped member of the family, to the extent necessary to enable any member of such family to be employed. 


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‘‘(D) PERMISSIVE DEDUCTIONS.—Such additional deductions as a public 

housing agency may, at its discretion, establish, except that the Secretary 

shall establish procedures to ensure that such deductions do not increase 

Federal expenditures. 

The Secretary shall annually adjust the amounts of the exclusions under subparagraphs (A) and (B), as such amounts may have been previously adjusted, 

by applying an inflationary factor as the Secretary shall, by regulation, establish. If the dollar amount of any such exclusion determined for any year by applying such inflationary factor is not a multiple of $25, the Secretary shall 

round such amount to the next lowest multiple of $25.’’. 

(c) HOUSING CHOICE VOUCHER PROGRAM.—Paragraph (5) of section 8(o) of the 

United States Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended—

(1) in the paragraph heading, by striking ‘‘ANNUAL REVIEW’’ and inserting 

‘‘REVIEWS’’; 

(2) in subparagraph (A)—

(A) by striking ‘‘the provisions of’’ and inserting ‘‘paragraphs (6) and (7) 

of section 3(a) and to’’; and 

(B) by striking ‘‘and shall be conducted upon the initial provision of housing assistance for the family and thereafter not less than annually’’; and 

(3) in subparagraph (B), by striking the second sentence. 

(d) ENHANCED VOUCHER PROGRAM.—Section 8(t)(1)(D) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ each place 

such term appears and inserting ‘‘annual adjusted income’’. 

(e) PROJECT-BASED HOUSING.—Paragraph (3) of section 8(c) of the United States 

Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by striking the last sentence. 

(f) IMPACT ON PUBLIC HOUSING REVENUES.—

(1) INTERACTION WITH ASSET MANAGEMENT RULE.—If the Secretary of Housing 

and Urban Development determines that the application of the amendments 

made by this section results in a reduction in the rental income of a public 

housing agency that is not de minimus during the period that the operating formula income is frozen at a level that does not fully reflect the changes made 

by such amendments, the Secretary shall make appropriate adjustments in the 

formula income of the agency. 

(2) HUD REPORTS ON PUBLIC HOUSING REVENUE IMPACT.—For each of fiscal 

years 2008 and 2009, the Secretary of Housing and Urban Development shall 

submit a report to Congress identifying and calculating the impact of changes 

made by the amendments made by this section on the revenues and costs of operating public housing units. 

(g) EFFECTIVE DATE AND TRANSITION.—The amendments made by this section 

shall apply with respect to fiscal year 2008 and fiscal years thereafter. 

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

(a) ASSETS.—Section 16 of the United States Housing Act of 1937 (42 U.S.C. 

1437n) is amended by inserting after subsection (d) the following new subsection: 

‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.—

‘‘(1) LIMITATION ON ASSETS.—Subject to paragraph (3) and notwithstanding 

any other provision of this Act, a dwelling unit assisted under this Act may not 

be rented and assistance under this Act may not be provided, either initially 

or at each recertification of family income, to any family—

‘‘(A) whose net family assets exceed $100,000, as such amount is adjusted 

annually by applying an inflationary factor as the Secretary considers appropriate; or 

‘‘(B) who has a present ownership interest in, and a legal right to reside 

in, real property that is suitable for occupancy as a residence, except that 

the prohibition under this subparagraph shall not apply to—

‘‘(i) any property for which the family is receiving assistance under 

this Act; 

‘‘(ii) any person that is a victim of domestic violence; or 

‘‘(iii) any family that is making a good faith effort to sell such property. 

‘‘(2) NET FAMILY ASSETS.—

‘‘(A) IN GENERAL.—For purposes of this subsection, the term ‘net family 

assets’ means, for all members of the household, the net cash value of all 

assets after deducting reasonable costs that would be incurred in disposing 

of real property, savings, stocks, bonds, and other forms of capital investment. Such term does not include interests in Indian trust land, equity accounts in homeownership programs of the Department of Housing and 

Urban Development, or Family Self Sufficiency accounts. 

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


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‘‘(i) the value of personal property, except for items of personal property of significant value, as the public housing agency may determine; 

‘‘(ii) the value of any retirement account; 

‘‘(iii) any amounts recovered in any civil action or settlement based 

on a claim of malpractice, negligence, or other breach of duty owed to 

a member of the family and arising out of law, that resulted in a member of the family being disabled (under the meaning given such term 

in section 1614 of the Social Security Act (42 U.S.C. 1382c)); and 

‘‘(iv) the value of any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 or any qualified tuition 

program under section 529 of such Code. 

‘‘(C) TRUST FUNDS.—In cases where a trust fund has been established and 

the trust is not revocable by, or under the control of, any member of the 

family or household, the value of the trust fund shall not be considered an 

asset of a family if the fund continues to be held in trust. Any income distributed from the trust fund shall be considered income for purposes of section 3(b) and any calculations of annual family income, except in the case 

of medical expenses for a minor. 

‘‘(D) SELF-CERTIFICATION.—A public housing agency or owner may determine the net assets of a family, for purposes of this section, based on the 

amounts reported by the family at the time the agency or owner reviews 

the family’s income. 

‘‘(3) COMPLIANCE FOR PUBLIC HOUSING DWELLING UNITS.—When recertifying 

family income with respect to families residing in public housing dwelling units, 

a public housing agency may, in the discretion of the agency and only pursuant 

to a policy that is set forth in the public housing agency plan under section 5A 

for the agency, choose not to enforce the limitation under paragraph (1). 

‘‘(4) AUTHORITY TO DELAY EVICTIONS.—In the case of a family residing in a 

dwelling unit assisted under this Act who does not comply with the limitation 

under paragraph (1), the public housing agency or project owner may delay eviction or termination of the family based on such noncompliance for a period of 

not more than 6 months.’’. 

(b) INCOME.—The United States Housing Act of 1937 is amended—

(1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking the first sentence and 

inserting the following: ‘‘Dwelling units assisted under this Act may be rented, 

and assistance under this Act may be provided, whether initially or at time of 

recertification, only to families who are low-income families at the time such 

initial or continued assistance, respectively, is provided, except that families residing in dwelling units as of the date of the enactment of the Section 8 Voucher 

Reform Act of 2007 that, under agreements in effect on such date of enactment, 

may have incomes up to 95 percent of local area median income shall continue 

to be eligible for assistance at recertification as long as they continue to comply 

with such income restrictions. When recertifying family income with respect to 

families residing in public housing dwelling units, a public housing agency may, 

in the discretion of the agency and only pursuant to a policy that is set forth 

in the public housing agency plan under section 5A for the agency, choose not 

to enforce the prohibition under the preceding sentence. When recertifying family income with respect to families residing in dwelling units for which projectbased assistance is provided, a project owner may, in the owner’s discretion and 

only pursuant to a policy adopted by such owner, choose not to enforce such prohibition. In the case of a family residing in a dwelling unit assisted under this 

Act who does not comply with the prohibition under the first sentence of this 

paragraph, the public housing agency or project owner may delay eviction or 

termination of the family based on such noncompliance for a period of not more 

than 6 months.’’; 

(2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking the matter preceding 

subparagraph (A) and inserting the following: 

‘‘(4) ELIGIBLE FAMILIES.—Assistance under this subsection may be provided, 

whether initially or at each recertification, only pursuant to subsection (t) to a 

family eligible for assistance under such subsection or to a family who at the 

time of such initial or continued assistance, respectively, is a low-income family 

that is—’’; and 

(3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by striking ‘‘at the time it initially 

occupied such dwelling unit’’ and inserting ‘‘according to the restrictions under 

section 3(a)(1)’’. 

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

(a) VOUCHERS.—Section 16(b)(1) of the United States Housing Act of 1937 (42 

U.S.C. 1437n(b)(1)) is amended—


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(1) by inserting after ‘‘do not exceed’’ the following: ‘‘the higher of (A) the poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such 

section) applicable to a family of the size involved, or (B)’’; and 

(2) by inserting before the period at the end the following: ‘‘; and except that 

clause (A) of this sentence shall not apply in the case of families residing in 

Puerto Rico or any other territory or possession of the United States’’. 

(b) PUBLIC HOUSING.—Section 16(a)(2)(A) of the United States Housing Act of 

1937 (42 U.S.C. 1437n(a)(2)(A)) is amended—

(1) by inserting after ‘‘do not exceed’’ the following: ‘‘the higher of (i) the poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such 

section) applicable to a family of the size involved, or (ii)’’; and 

(2) by inserting before the period at the end the following: ‘‘; and except that 

clause (i) of this sentence shall not apply in the case of families residing in 

Puerto Rico or any other territory or possession of the United States’’. 

(c) PROJECT-BASED SECTION 8 ASSISTANCE.—Section 16(c)(3) of the United States 

Housing Act of 1937 (42 U.S.C. 1437n(c)(3)) is amended—

(1) by inserting after ‘‘do not exceed’’ the following: ‘‘the higher of (A) the poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such 

section) applicable to a family of the size involved, or (B)’’; and 

(2) by inserting before the period at the end the following: ‘‘; and except that 

clause (A) of this sentence shall not apply in the case of families residing in 

Puerto Rico or any other territory or possession of the United States’’. 

SEC. 6. VOUCHER RENEWAL FUNDING. 

(a) IN GENERAL.—Section 8 of the United States Housing Act of 1937 (42 U.S.C. 

1437f) is amended by striking subsection (dd) and inserting the following new subsection: 

‘‘(dd) TENANT-BASED VOUCHERS.—

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated, for each of fiscal years 2008 through 2012, such sums as may be necessary for tenant-based assistance under subsection (o) for the following purposes: 

‘‘(A) To renew all expiring annual contributions contracts for tenant-based 

rental assistance. 

‘‘(B) To provide tenant-based rental assistance for—

‘‘(i) relocation and replacement of housing units that are demolished 

or disposed of pursuant to the Omnibus Consolidated Rescissions and 

Appropriations Act of 1996 (Public Law 104–134); 

‘‘(ii) conversion of section 23 projects to assistance under this section; 

‘‘(iii) the family unification program under subsection (x) of this section; 

‘‘(iv) relocation of witnesses in connection with efforts to combat 

crime in public and assisted housing pursuant to a request from a law 

enforcement or prosecution agency; 

‘‘(v) enhanced vouchers authorized under subsection (t) of this section; 

‘‘(vi) vouchers in connection with the HOPE VI program under section 24; 

‘‘(vii) demolition or disposition of public housing units pursuant to 

section 18 of the United States Housing Act of 1937 (42 U.S.C. 1437p); 

‘‘(viii) mandatory and voluntary conversions of public housing to 

vouchers, pursuant to sections 33 and 22 of the United States Housing 

Act of 1937, respectively (42 U.S.C. 1437z–5, 1437t); 

‘‘(ix) vouchers necessary to comply with a consent decree or court 

order; 

‘‘(x) vouchers to replace dwelling units that cease to receive projectbased assistance under subsection (b), (c), (d), (e), or (v) of this section; 

‘‘(xi) tenant protection assistance, including replacement and relocation assistance; and 

‘‘(xii) emergency voucher assistance for the protection of victims of 

domestic violence, dating violence, sexual assault, or stalking. 

Subject only to the availability of sufficient amounts provided in appropriation Acts, the Secretary shall provide tenant-based rental assistance to replace all dwelling units that cease to be available as assisted housing as 

a result of clause (i), (ii), (v), (vi), (vii), (viii), or (x). 

‘‘(2) ALLOCATION OF RENEWAL FUNDING AMONG PUBLIC HOUSING AGENCIES.—


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‘‘(A) From amounts appropriated for each year pursuant to paragraph 

(1)(A), the Secretary shall provide renewal funding for each public housing 

agency—

‘‘(i) based on leasing and cost data from the preceding calendar year, 

as adjusted by an annual adjustment factor to be established by the 

Secretary, which shall be established using the smallest geographical 

areas for which data on changes in rental costs are annually available; 

‘‘(ii) by making any adjustments necessary to provide for the firsttime renewal of vouchers funded under paragraph (1)(B); 

‘‘(iii) by making any adjustments necessary for full year funding of 

vouchers ported in the prior calendar year under subsection (r)(2); and 

‘‘(iv) by making such other adjustments as the Secretary considers 

appropriate, including adjustments necessary to address changes in 

voucher utilization rates and voucher costs related to natural and other 

major disasters. 

‘‘(B) LEASING AND COST DATA.—For purposes of subparagraph (A)(i), leasing and cost data shall be calculated annually by using the average for the 

preceding calendar year. Such leasing and cost data shall be adjusted to include vouchers that were set aside under a commitment to provide projectbased assistance under subsection (o)(13) and to exclude amounts funded 

through advances under paragraph (3). Such leasing and cost data shall not 

include funds not appropriated for tenant-based assistance under section 

8(o), unless the agency’s funding was prorated in the prior year and the 

agency used other funds to maintain vouchers in use. 

‘‘(C) OVERLEASING.—For the purpose of determining allocations under 

subsection (A)(i), the leasing rate calculated for the prior calendar year may 

exceed an agency’s authorized voucher level, except that such calculation in 

2009 shall not include amounts resulting from a leasing rate in excess of 

103 percent of an agency’s authorized vouchers in 2008 which results from 

the use of accumulated amounts, as referred to in paragraph (4)(A). 

‘‘(D) MOVING TO WORK; HOUSING INNOVATION PROGRAM.—Notwithstanding 

subparagraphs (A) and (B), each public housing agency participating at any 

time in the moving to work demonstration under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) or in the 

housing innovation program under section 36 of this Act shall be funded 

pursuant to its agreement under such program and shall be subject to any 

pro rata adjustment made under subparagraph (E)(i). 

‘‘(E) PRO RATA ALLOCATION.—

‘‘(i) INSUFFICIENT FUNDS.—To the extent that amounts made available for a fiscal year are not sufficient to provide each public housing 

agency with the full allocation for the agency determined pursuant to 

subparagraphs (A) and (D), the Secretary shall reduce such allocation 

for each agency on a pro rata basis, except that renewal funding of enhanced vouchers under section 8(t) shall not be subject to such proration. 

‘‘(ii) EXCESS FUNDS.—To the extent that amounts made available for 

a fiscal year exceed the amount necessary to provide each housing 

agency with the full allocation for the agency determined pursuant to 

subparagraphs (A) and (D), such excess amounts shall be used for the 

purposes specified in subparagraphs (B) and (C) of paragraph (4). 

‘‘(F) PROMPT FUNDING ALLOCATION.—The Secretary shall allocate all 

funds under this subsection for each year before the latter of (i) February 

15, or (ii) the expiration of the 45-day period beginning upon the enactment 

of the appropriations Act funding such renewals. 

‘‘(3) ADVANCES.—

‘‘(A) AUTHORITY.—During the last 3 months of each calendar year, the 

Secretary shall provide amounts to any public housing agency, at the request of the agency, in an amount up to two percent of the allocation for 

the agency for such calendar year, subject to subparagraph (C). 

‘‘(B) USE.—Amounts advanced under subparagraph (A) may be used to 

pay for additional voucher costs, including costs related to temporary overleasing. 

‘‘(C) USE OF PRIOR YEAR AMOUNTS.—During the last 3 months of a calendar year, if amounts previously provided to a public housing agency for 

tenant-based assistance for such year or for previous years remain unobligated and available to the agency—


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‘‘(i) the agency shall exhaust such amounts to cover any additional 

voucher costs under subparagraph (B) before amounts advanced under 

subparagraph (A) may be so used; and 

‘‘(ii) the amount that may be advanced under subparagraph (A) to the 

agency shall be reduced by an amount equal to the total of such previously provided and unobligated amounts. 

‘‘(D) REPAYMENT.—Amounts advanced under subparagraph (A) in a calendar year shall be repaid to the Secretary in the subsequent calendar year 

by reducing the amounts made available for such agency for such subsequent calendar year pursuant to allocation under paragraph (2) by an 

amount equal to the amount so advanced to the agency. 

‘‘(4) RECAPTURE.—

‘‘(A) IN GENERAL.—The Secretary shall recapture, from amounts provided 

under the annual contributions contract for a public housing agency for a 

calendar year, all accumulated amounts allocated under paragraph (2) and 

from previous years that are unused by the agency at the end of each calendar year except—

‘‘(i) with respect to the recapture under this subparagraph at the end 

of 2007, an amount equal to one twelfth the amount allocated to the 

public housing agency for such year pursuant to paragraph (2)(A); and 

‘‘(ii) with respect to the recapture under this subparagraph at the end 

of each of 2008, 2009, 2010, and 2011, an amount equal to 5 percent 

of such amount allocated to the agency for such year. Notwithstanding 

any other provision of law, each public housing agency may retain all 

amounts not authorized to be recaptured under this subparagraph, and 

may use such amounts for all authorized purposes. 

‘‘(B) REALLOCATION.—Not later than May 1 of each calendar year, the 

Secretary shall—

‘‘(i) calculate the aggregate unused amounts for the preceding year 

recaptured pursuant to subparagraph (A); 

‘‘(ii) set aside and make available such amounts as the Secretary considers appropriate to reimburse public housing agencies for increased 

costs related to portability and family self-sufficiency activities during 

such year; and 

‘‘(iii) reallocate all remaining amounts among public housing agencies, with priority given based on the extent to which an agency has 

utilized the amount allocated under paragraph (2) for the agency to 

serve eligible families. 

‘‘(C) USE.—Amounts reallocated to a public housing agency pursuant to 

subparagraph (B)(iii) may be used only to increase voucher leasing rates as 

provided under paragraph (2)(C).’’. 

(b) ABSORPTION OF VOUCHERS FROM OTHER AGENCIES.—Section 8(r)(2) of the 

United States Housing Act of 1937 (42 U.S.C. 1437f(r)(2)) is amended by adding 

after the period at the end the following: ‘‘The agency shall absorb the family into 

its program for voucher assistance under this section and shall have priority to receive additional funding from the Secretary for the housing assistance provided for 

such family from amounts made available pursuant to subsection (dd)(4)(B).’’

(c) VOUCHERS FOR PERSONS WITH DISABILITIES.—The Secretary of Housing and 

Urban Development shall develop and issue, to public housing agencies that received voucher assistance under section 8(o) for non-elderly disabled families pursuant to appropriations Acts for fiscal years 1997 through 2002, guidance to ensure 

that, to the maximum extent practicable, such vouchers continue to be provided 

upon turnover to qualified non-elderly disabled families. 

SEC. 7. ADMINISTRATIVE FEES. 

(a) IN GENERAL.—Section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 

1437f(q)) is amended—

(1) in paragraph (1), by striking subparagraphs (B) and (C) and inserting the 

following new subparagraphs: 

‘‘(B) CALCULATION.—The fee under this subsection shall—

‘‘(i) be payable to each public housing agency for each month for 

which a dwelling unit is covered by an assistance contract; 

‘‘(ii) until superseded through subsequent rulemaking, be based on 

the per-unit fee payable to the agency in fiscal year 2003, updated for 

each subsequent year as specified in subsection (iv); 

‘‘(iii) include an amount for the cost of issuing voucher to new participants; 

‘‘(iv) be updated each year using an index of changes in wage data 

or other objectively measurable data that reflect the costs of adminVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6621 E:\HR\OC\HR216.XXX HR216

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istering the program for such assistance, as determined by the Secretary; and 

‘‘(v) include an amount for the cost of family self-sufficiency coordinators, as provided in section 23(h)(1). 

‘‘(C) PUBLICATION.—The Secretary shall cause to be published in the Federal Register the fee rate for each geographic area.’’; and 

(2) in paragraph (4), by striking ‘‘1999’’ and inserting ‘‘2007’’. 

(b) ADMINISTRATIVE FEES FOR FAMILY SELF-SUFFICIENCY PROGRAM COSTS.—Subsection (h) of section 23 of the United States Housing Act of 1937 (42 U.S.C. 

1437u(h)) is amended by striking paragraph (1) and inserting the following new 

paragraph: 

‘‘(1) SECTION 8 FEES.—

‘‘(A) IN GENERAL.—The Secretary shall establish a fee under section 8(q) 

for the costs incurred in administering the self-sufficiency program under 

this section to assist families receiving voucher assistance through section 

8(o). 

‘‘(B) ELIGIBILITY FOR FEE.—The fee shall provide funding for family selfsufficiency coordinators as follows: 

‘‘(i) BASE FEE.—A public housing agency serving 25 or more participants in the family self-sufficiency program under this section shall receive a fee equal to the costs of employing one full-time family self-sufficiency coordinator. An agency serving fewer than 25 such participants 

shall receive a prorated fee. 

‘‘(ii) ADDITIONAL FEE.—An agency that meets minimum performance 

standards shall receive an additional fee sufficient to cover the costs of 

employing a second family self-sufficiency coordinator if the agency has 

75 or more participating families, and a third such coordinator if it has 

125 or more participating families. 

‘‘(iii) PREVIOUSLY FUNDED AGENCIES.—An agency that received funding from the Department of Housing and Urban Development for more 

than three such coordinators in any of fiscal years 1998 through 2007 

shall receive funding for the highest number of coordinators funded in 

a single fiscal year during that period, provided they meet applicable 

size and performance standards. 

‘‘(iv) INITIAL YEAR.—For the first year in which a public housing 

agency exercises its right to develop an family self-sufficiency program 

for its residents, it shall be entitled to funding to cover the costs of up 

to one family self-sufficiency coordinator, based on the size specified in 

its action plan for such program. 

‘‘(v) STATE AND REGIONAL AGENCIES.—For purposes of calculating the 

family self-sufficiency portion of the administrative fee under this subparagraph, each administratively distinct part of a State or regional 

public housing agency shall be treated as a separate agency. 

‘‘(vi) DETERMINATION OF NUMBER OF COORDINATORS.—In determining 

whether a public housing agency meets a specific threshold for funding 

pursuant to this paragraph, the number of participants being served by 

the agency in its family self-sufficiency program shall be considered to 

be the average number of families enrolled in such agency’s program 

during the course of the most recent fiscal year for which the Department of Housing and Urban Development has data. 

‘‘(C) PRORATION.—If insufficient funds are available in any fiscal year to 

fund all of the coordinators authorized under this section, the first priority 

shall be given to funding one coordinator at each agency with an existing 

family self-sufficiency program. The remaining funds shall be prorated 

based on the number of remaining coordinators to which each agency is entitled under this subparagraph. 

‘‘(D) RECAPTURE.—Any fees allocated under this subparagraph by the Secretary in a fiscal year that have not been spent by the end of the subsequent fiscal year shall be recaptured by the Secretary and shall be available 

for providing additional fees pursuant to subparagraph (B)(ii). 

‘‘(E) PERFORMANCE STANDARDS.—Within six months after the date of the 

enactment of this paragraph, the Secretary shall publish a proposed rule 

specifying the performance standards applicable to funding under clauses 

(ii) and (iii) of subparagraph (B). Such standards shall include requirements 

applicable to the leveraging of in-kind services and other resources to support the goals of the family self-sufficiency program. 

‘‘(F) DATA COLLECTION.—Public housing agencies receiving funding under 

this paragraph shall collect and report to the Secretary, in such manner as 


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the Secretary shall require, information on the performance of their family 

self-sufficiency programs. 

‘‘(G) EVALUATION.— The Secretary shall conduct a formal and scientific 

evaluation of the effectiveness of well-run family self-sufficiency programs, 

using random assignment of participants to the extent practicable. Not 

later than the expiration of the 4-year period beginning upon the enactment 

of this paragraph, the Secretary shall submit an interim evaluation report 

to the Congress. Not later than the expiration of the 8-year period beginning upon such enactment, the Secretary shall submit a final evaluation report to the Congress. There is authorized to be appropriated $10,000,000 to 

carry out the evaluation under this subparagraph. 

‘‘(H) INCENTIVES FOR INNOVATION AND HIGH PERFORMANCE.—The Secretary may reserve up to 10 percent of the amounts made available for administrative fees under this paragraph to provide support to or reward family self-sufficiency programs that are particularly innovative or highly successful in achieving the goals of the program.’’. 

(c) REPEAL.—Section 202 of the Departments of Veterans Affairs and Housing and 

Urban Development, and Independent Agencies Appropriations Act, 1997 (42 U.S.C. 

1437f note; Public Law 104–204; 110 Stat. 2893) is hereby repealed. 

SEC. 8. HOMEOWNERSHIP. 

(a) SECTION 8 HOMEOWNERSHIP DOWNPAYMENT PROGRAM.—Section 8(y)(7) of the 

United States Housing Act of 1937 (42 U.S.C. 1437f(y)(7)) is amended by striking 

subparagraphs (A) and (B) and inserting the following new subparagraphs: 

‘‘(A) IN GENERAL.—Subject to the provisions of this paragraph, in the case 

of a family on whose behalf rental assistance under section 8(o) has been 

provided for a period of not less than 12 months prior to the date of receipt 

of downpayment assistance under this paragraph, a public housing agency 

may, in lieu of providing monthly assistance payments under this subsection on behalf of a family eligible for such assistance and at the discretion of the agency, provide a downpayment assistance grant in accordance 

with subparagraph (B). 

‘‘(B) GRANT REQUIREMENTS.—A downpayment assistance grant under this 

paragraph—

‘‘(i) shall be used by the family only as a contribution toward the 

downpayment and reasonable and customary closing costs required in 

connection with the purchase of a home; 

‘‘(ii) shall be in the form of a single one-time grant; and 

‘‘(iii) may not exceed $10,000. 

‘‘(C) NO EFFECT ON OBTAINING OUTSIDE SOURCES FOR DOWNPAYMENT ASSISTANCE.—This Act may not be construed to prohibit a public housing 

agency from providing downpayment assistance to families from sources 

other than a grant provided under this Act, or as determined by the public 

housing agency.’’. 

(b) USE OF VOUCHERS FOR MANUFACTURED HOUSING.—Section 8(o)(12) of the 

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

(1) in subparagraph (A), by striking the period at the end of the first sentence 

and all that follows through ‘‘of’’ in the second sentence and inserting ‘‘and 

rents’’; and 

(2) in subparagraph (B)—

(A) in clause (i), by striking ‘‘the rent’’ and all that follows and inserting 

the following: ‘‘rent shall mean the sum of the monthly payments made by 

a family assisted under this paragraph to amortize the cost of purchasing 

the manufactured home, including any required insurance and property 

taxes, the monthly amount allowed for tenant-paid utilities, and the monthly rent charged for the real property on which the manufactured home is 

located, including monthly management and maintenance charges.’’; 

(B) by striking clause (ii); and 

(C) in clause (iii)—

(i) by inserting after the period at the end the following: ‘‘If the 

amount of the monthly assistance payment for a family exceeds the 

monthly rent charged for the real property on which the manufactured 

home is located, including monthly management and maintenance 

charges, a public housing agency may pay the remainder to the family, 

lender or utility company, or may choose to make a single payment to 

the family for the entire monthly assistance amount.’’; and 

(ii) by redesignating such clause as clause (ii). 


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

(a) IN GENERAL.—Section 3 of the United States Housing Act of 1937 (42 U.S.C. 

1437a), as amended by the preceding provisions of this Act, is further amended by 

adding at the end the following new subsection: ‘‘(e) PHA REPORTING OF RENT PAYMENTS TO CREDIT REPORTING AGENCIES.— ‘‘(1) AUTHORITY.—To the extent that a family receiving tenant-based housing 

choice vouchers under section 8 by a public housing agency agrees in writing 

to reporting under this subsection, the public housing agency may submit to 

consumer reporting agencies described in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a) information regarding the past rent payment history of the family with respect to the dwelling unit for which such assistance 

is provided. ‘‘(2) FORMAT.—The Secretary, after consultation with consumer reporting 

agencies referred in paragraph (1), shall establish a system and format to be 

used by public housing agencies for reporting of information under such paragraph that provides such information in a format and manner that is similar 

to other credit information submitted to such consumer reporting agencies and 

is usable by such agencies.’’. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on 

the date of the enactment of this Act. 

SEC. 10. PERFORMANCE ASSESSMENTS. 

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

amended by adding at the end the following new paragraph: ‘‘(21) PERFORMANCE ASSESSMENTS.— ‘‘(A) ESTABLISHMENT.—The Secretary shall, by regulation, establish 

standards and procedures for assessing the performance of public housing 

agencies in carrying out the programs for tenant-based rental assistance 

under this subsection and for homeownership assistance under subsection 

(y). ‘‘(B) CONTENTS.—The standards and procedures under this paragraph 

shall provide for assessment of the performance of public housing agencies 

in the following areas: ‘‘(i) Quality of dwelling units obtained using such assistance. 

‘‘(ii) Extent of utilization of assistance amounts provided to the agency and of authorized vouchers. ‘‘(iii) Timeliness and accuracy of reporting by the agency to the Secretary. ‘‘(iv) Effectiveness in carrying out policies to achieve deconcentration 

of poverty. ‘‘(v) Reasonableness of rent burdens, consistent with public housing 

agency responsibilities under section 8(o)(1)(E)(iii). 

‘‘(vi) Accurate rent calculations and subsidy payments. 

‘‘(vii) Effectiveness in carrying out family self-sufficiency activities. 

‘‘(viii) Timeliness of actions related to landlord participation 

‘‘(ix) Such other areas as the Secretary considers appropriate. 

‘‘(C) PERIODIC ASSESSMENT.—Using the standards and procedures established under this paragraph, the Secretary shall conduct an assessment of 

the performance of each public housing agency carrying out a program referred to in subparagraph (A) and shall submit a report to the Congress regarding the results of each such assessment.’’. 

SEC. 11. PHA PROJECT-BASED ASSISTANCE. 

Section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) 

is amended—

(1) by striking subparagraph (B) and inserting the following new subparagraph: 

‘‘(B) PERCENTAGE LIMITATION.—

‘‘(i) IN GENERAL.—Subject to clause (ii), not more than 25 percent of 

the funding available for tenant-based assistance under this section 

that is administered by the agency may be attached to structures pursuant to this paragraph. 

‘‘(ii) EXCEPTION.—An agency may attach up to an additional 5 percent of the funding available for tenant-based assistance under this section to structures pursuant to this paragraph for dwelling units that 

house individuals and families that meet the definition of homeless 

under section 103 of the McKinney-Vento Homeless Assistance Act (42 

U.S.C. 11302).’’; 

(2) by striking subparagraph (D) and inserting the following new subparagraph: 


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‘‘(D) INCOME MIXING REQUIREMENT.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), not more than the 

greater of 25 dwelling units or 25 percent of the dwelling units in any 

project may be assisted under a housing assistance payment contract 

for project-based assistance pursuant to this paragraph. For purposes 

of this subparagraph, the term ‘project’ means a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels 

of land. ‘‘(ii) EXCEPTIONS.— ‘‘(I) CERTAIN HOUSING.—The limitation under clause (i) shall not 

apply in the case of assistance under a contract for housing consisting of single family properties, or for dwelling units that are 

specifically made available for households comprised of elderly families, disabled families, and families receiving supportive services. 

For purposes of the preceding sentence, the term ‘single family 

properties’ means buildings with no more than four dwelling units. ‘‘(II) CERTAIN AREAS.—With respect to areas in which fewer than 

75 percent of families issued vouchers become participants in the 

program, the public housing agency has established the payment 

standard at 110 percent of the fair market rent for all census tracts 

in the area for the previous six months, and the public housing 

agency grants an automatic extension of 90 days (or longer) to families with vouchers who are attempting to find housing, clause (i) 

shall be applied by substituting ‘50 percent’ for ‘25 percent’.’’; 

(3) in the first sentence of subparagraph (F), by striking ‘‘10 years’’ and inserting ‘‘15 years’’; 

(4) in subparagraph (G)—

(A) by inserting after the period at the end of the first sentence the following: ‘‘Such contract may, at the election of the public housing agency 

and the owner of the structure, specify that such contract shall be extended 

for renewal terms of up to 15 years each, if the agency makes the determination required by this subparagraph and the owner is in compliance 

with the terms of the contract.’’; and 

(B) by adding at the end the following: ‘‘A public housing agency may 

agree to enter into such a contract at the time it enters into the initial 

agreement for a housing assistance payment contract or at any time thereafter that is before the expiration of the housing assistance payment contract.’’; 

(5) in subparagraph (H), by inserting before the period at the end of the first 

sentence the following: ‘‘, except that in the case of a contract unit that has been 

allocated low-income housing tax credits and for which the rent limitation pursuant to such section 42 is less than the amount that would otherwise be permitted under this subparagraph, the rent for such unit may, in the sole discretion of a public housing agency, be established at the higher section 8 rent, subject only to paragraph (10)(A)’’; 

(6) in subparagraph (I)(i), by inserting before the semicolon the following: ‘‘, 

except that the contract may provide that the maximum rent permitted for a 

dwelling unit shall not be less than the initial rent for the dwelling unit under 

the initial housing assistance payments contract covering the unit’’; 

(7) in subparagraph (J)—

(A) by striking the fifth and sixth sentences and inserting the following: 

‘‘A public housing agency may establish and utilize procedures for maintaining site-based waiting lists under which applicants may apply directly 

at, or otherwise designate to the public housing agency, the project or 

projects in which they seek to reside, except that all applicants on the waiting list of an agency for assistance under this subsection shall be permitted 

to place their names on such separate list. All such procedures shall comply 

with title VI of the Civil Rights Act of 1964, the Fair Housing Act, and 

other applicable civil rights laws. The owner or manager of a structure assisted under this paragraph shall not admit any family to a dwelling unit 

assisted under a contract pursuant to this paragraph other than a family 

referred by the public housing agency from its waiting list, or a family on 

a site-based waiting list that complies with the requirements of this subparagraph. A public housing agency shall fully disclose to each applicant 

each option in the selection of a project in which to reside that is available 

to the applicant.’’; and 

(B) by inserting after the third sentence the following new sentence: ‘‘Any 

family who resides in a dwelling unit proposed to be assisted under this 

paragraph, or in a unit to be replaced by a proposed unit to be assisted 


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under this paragraph shall be given an absolute preference for selection for 

placement in the proposed unit, if the family is otherwise eligible for assistance under this subsection.’’; and 

(8) by adding at the end the following new subparagraphs: 

‘‘(L) USE IN COOPERATIVE HOUSING AND ELEVATOR BUILDINGS.—A public 

housing agency may enter into a housing assistance payments contract 

under this paragraph with respect to—

‘‘(i) dwelling units in cooperative housing; 

‘‘(ii) notwithstanding subsection (c), dwelling units in a high-rise elevator project, including such a project that is occupied by families with 

children, without review and approval of the contract by the Secretary. 

‘‘(M) REVIEWS.—

‘‘(i) SUBSIDY LAYERING.—A subsidy layering review in accordance 

with section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) shall not be required for 

assistance under this subparagraph in the case of a housing assistance 

payments contract for an existing structure, or if a subsidy layering review has been conducted by the applicable State or local agency. 

‘‘(ii) ENVIRONMENTAL REVIEW.—A public housing agency shall not be 

required to undertake any environmental review before entering into a 

housing assistance payments contract under this paragraph for an existing structure, except to the extent such a review is otherwise required by law or regulation. 

‘‘(N) LEASES AND TENANCY.—Assistance provided under this paragraph 

shall be subject to the provisions of paragraph (7), except that subparagraph (A) of such paragraph shall not apply.’’. 

SEC. 12. RENT BURDENS. 

(a) REVIEWS.—Section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 

1437f(o)(1)) is amended by striking subparagraph (E) and inserting the following 

new subparagraph: 

‘‘(E) REVIEWS.—

‘‘(i) RENT BURDENS.—The Secretary shall monitor rent burdens and 

submit a report to the Congress annually on the percentage of families 

assisted under this subsection, occupying dwelling units of any size, 

that pay more than 30 percent of their adjusted incomes for rent and 

such percentage that pay more than 40 percent of their adjusted incomes for rent. Using information regularly reported by public housing 

agencies, the Secretary shall provide public housing agencies, on an annual basis, a report with the information described in the first sentence 

of this clause, and may require a public housing agency to modify a 

payment standard that results in a significant percentage of families 

assisted under this subsection, occupying dwelling units of any size, 

paying more than 30 percent of their adjusted incomes for rent. 

‘‘(ii) CONCENTRATION OF POVERTY.—The Secretary shall submit a report to the Congress annually on the degree to which families assisted 

under this subsection in each metropolitan area are clustered in lower 

rent, higher poverty areas and how, and the extent to which, greater 

geographic distribution of such assisted families could be achieved, including by increasing payment standards for particular communities 

within such metropolitan areas. 

‘‘(iii) PUBLIC HOUSING AGENCY RESPONSIBILITIES.—Each public housing agency shall make publicly available the information on rent burdens provided by the Secretary pursuant to clause (i), and, for agencies 

located in metropolitan areas, the information on concentration provided by the Secretary pursuant to clause (ii). If the percentage of families paying more than 30 percent or 40 percent of income exceeds the 

national average for either of such categories, as reported pursuant to 

clause (i), the public housing agency shall adjust the payment standard 

to eliminate excessive rent burdens within a reasonable time period or 

explain its reasons for not making such adjustment. The Secretary may 

not deny the request of a public housing agency to set a payment 

standard up to 120 percent of the fair market rent to remedy rent burdens in excess of the national average or undue concentration of families assisted under this subsection in lower rent, higher poverty sections of a metropolitan area except on the basis that an agency has not 

demonstrated that its request meets these criteria. If a request of a 

public housing agency has not been denied or approved with 45 days 


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after the request is made, the request shall be considered to have been 

approved.’’. (b) PUBLIC HOUSING AGENCY PLAN.—Section 5A(d)(4) of the United States Housing Act of 1937 (42 U.S.C. 1437c–1(d)(4)) is amended by inserting before the period 

at the end the following: ‘‘, including the report with respect to the agency furnished 

by the Secretary pursuant to section 8(o)(1)(E) concerning rent burdens and, if applicable, geographic concentration of voucher holders, any changes in rent or other 

policies the public housing agency is making to address excessive rent burdens or 

concentration, and if the public housing agency is not adjusting its payment standard, its reasons for not doing so’’. (c) RENT BURDENS FOR PERSONS WITH DISABILITIES.—Subparagraph (D) of section 

8(o)(1) is amended by inserting before the period at the end the following: ‘‘, except 

that a public housing agency may establish a payment standard of not more than 

120 percent of the fair market rent where necessary as a reasonable accommodation 

for a person with a disability, without approval of the Secretary. A public housing 

agency may seek approval of the Secretary to use a payment standard greater than 

120 percent of the fair market rent as a reasonable accommodation for a person 

with a disability’’. 

SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT. 

(a) IN GENERAL.—Paragraph (1) of section 8(c) of the United States Housing Act 

of 1937 (42 U.S.C. 1437f(c)(1)) is amended— (1) by inserting ‘‘(A)’’ after the paragraph designation; 

(2) by striking the seventh, eighth, and ninth sentences; and 

(3) by adding at the end the following: ‘‘(B)(i) The Secretary shall endeavor to define market areas for purposes of this 

paragraph in a manner that results in fair market rentals that are adequate to 

cover typical rental costs of units suitable for occupancy by persons assisted under 

this section in as wide a range of communities as is feasible, including communities 

with low poverty rates. ‘‘(ii) The Secretary at a minimum shall define a separate market area for each— ‘‘(I) metropolitan city, as such term is defined in section 102(a) of the Housing 

and Community Development Act of 1974 (42 U.S.C. 5302(a)), with more than 

40,000 rental dwelling units; and ‘‘(II) urban county or portion of an urban county, as such term is defined in 

such section 102(a), located outside the boundaries of any metropolitan city 

specified in subclause (I). ‘‘(iii) The Secretary shall, at the request of one or more public housing agencies, 

establish a separate market area for part or all of the area under the jurisdiction 

of such agencies, if— ‘‘(I) the requested market area contains at least 20,000 rental dwelling units; 

‘‘(II) the areas contained in the requested market area are geographically contiguous and share similar housing market characteristics; 

‘‘(III) adequate data are available to establish a reliable fair market rental for 

the requested market area, and for the remainder of the market area in which 

it is currently located; and 

‘‘(IV) establishing the requested market area would raise or lower the fair 

market rental by 10 percent or more at the time the requested market area is 

established. 

For purposes of subclause (III), data for an area shall be considered adequate if they 

are sufficient to establish from time to time a reliable benchmark fair market rental 

based primarily on data from that area, whether or not those data need to be supplemented with data from a larger area for purposes of annual updates. 

‘‘(iv) The Secretary shall not reduce the fair market rental in a market area as 

a result of a change in the percentile of the distribution of market rents used to 

establish the fair market rental.’’. 

(b) PAYMENT STANDARD.—Subparagraph (B) of section 8(o)(1) of the United States 

Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended by inserting before the 

period at the end the following: ‘‘, except that no public housing agency shall be required as a result of a reduction in the fair market rental to reduce the payment 

standard applied to a family continuing to reside in a unit for which the family was 

receiving assistance under this section at the time the fair market rental was reduced’’. 

SEC. 14. SCREENING OF APPLICANTS. 

Subparagraph (B) of section 8(o)(6) of the United States Housing Act of 1937 

(1437f(o)(6)(B)) is amended by inserting after the period at the end of the second 

sentence the following: ‘‘A public housing agency’s elective screening shall be limited 

to criteria that are directly related to an applicant’s ability to fulfill the obligations 

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plicant. Any applicant or participant determined to be ineligible for admission or 

continued participation to the program shall be notified of the basis for such determination and provided, within a reasonable time after the determination, an opportunity for an informal hearing on such determination at which mitigating circumstances, including remedial conduct subsequent to the notice, shall be considered.’’. 

SEC. 15. ENHANCED VOUCHERS. 

Subparagraph (B) of section 8(t)(1) of the United States Housing Act of 1937 (42 

U.S.C. 1437f(t)(1)(B)) is amended by inserting after ‘‘eligibility event for the project,’’ the following: ‘‘regardless of unit and family size standards normally used by the 

administering agency (except that tenants may be required to move to units of appropriate size if available on the premises),’’. 

SEC. 16. HOUSING INNOVATION PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM.—Title I of the United States Housing Act of 

1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following new 

section: 

‘‘SEC. 36. HOUSING INNOVATION PROGRAM. 

‘‘(a) PURPOSE.—The purpose of the program under this section is to provide public 

housing agencies and the Secretary the flexibility to design and evaluate innovative 

approaches to providing housing assistance that—

‘‘(1) increase housing opportunities for low-income families, including preventing homelessness, rehabilitate or replace housing at risk of physical deterioration or obsolescence, and develop additional affordable housing; 

‘‘(2) leverage other Federal, State, and local funding sources, including the 

low-income housing tax credit program, to expand and preserve affordable housing opportunities, including public housing; 

‘‘(3) provide financial incentives and other support mechanisms to families to 

obtain employment and increase earned income; 

‘‘(4) test alternative rent-setting policies to determine whether rent determinations can be simplified and administrative cost savings can be realized 

while protecting extremely low- and very low-income families from increased 

rent burdens; 

‘‘(5) are subject to rigorous evaluation to test the effectiveness of such innovative approaches; and 

‘‘(6) are developed with the support of the local community and with the substantial participation of affected residents. 

‘‘(b) PROGRAM AUTHORITY.—

‘‘(1) SCOPE.—The Secretary shall carry out a housing innovation program 

under this section under which the Secretary may designate not more than 60 

public housing agencies to participate, at any one time, in the housing innovation program, in accordance with subsections (c) and (d), except that, in addition 

to such 60 agencies, the Secretary may designate an additional 20 agencies to 

participate in the program under the terms of subsection (h). 

‘‘(2) DURATION.—The Secretary may carry out the housing innovation program under this section only during the 10-year period beginning on the date 

of the enactment of the Section 8 Voucher Reform Act of 2007. 

‘‘(c) PARTICIPATION OF EXISTING MTW AGENCIES.—

‘‘(1) EXISTING MTW AGENCIES.—Subject to the requirements of paragraph (2), 

all existing MTW agencies shall be designated to participate in the program. 

‘‘(2) CONDITIONS OF PARTICIPATION.—The Secretary shall approve and transfer 

into the housing innovation program under this section each existing MTW 

agency that the Secretary determines is not in default under such agreement 

and which the Secretary also determines is meeting the goals and objectives of 

its moving to work plan. Each such agency shall, within two years after the 

date of the enactment of the Section 8 Voucher Reform Act of 2007, make 

changes to its policies that were implemented before such date of enactment in 

order to comply with the requirements of this section. 

‘‘(d) ADDITIONAL AGENCIES.—

‘‘(1) PROPOSALS; SELECTION PROCESS.—In addition to agencies participating in 

the program pursuant to subsection (c), the Secretary shall, within 18 months 

after such date of enactment, select public housing agencies to participate in the 

program pursuant to a competitive process that meets the following requirements: 

‘‘(A) Any public housing agency may be selected to participate in the program, except that not more than 5 agencies that are near-troubled under 

the public housing assessment system and/or section 8 management assessment program may be selected, and except that any agency for which the 


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Secretary has hired an alternative management entity for such agency or 

has taken possession of all or any part of such agency’s public housing program shall not be eligible for participation. Any near-troubled public housing agency participating in the program shall remain subject to the requirements of this Act governing tenant rent contributions, eligibility, and continued participation, and may not adopt policies described in subsection 

(e)(4) (relating to rents and requirements for continued occupation and participation). ‘‘(B) The process provides, to the extent possible based on eligible agencies submitting applications and taking into account existing MTW agencies 

participating pursuant to subsection (c), for representation among agencies 

selected of agencies having various characteristics, including both large and 

small agencies, agencies serving urban, suburban, and rural areas, and 

agencies in various geographical regions throughout the United States, and 

which may include the selection of agencies that only administer the voucher program under section 8(o). ‘‘(C) Any agency submitting a proposal under this paragraph shall have 

provided notice to residents and the local community, not later than 30 

days before the first of the two public meetings required under subparagraph (D). ‘‘(D) The agency submitting a proposal shall hold two public meetings to 

receive comments on the agency’s proposed application, on the implications 

of changes under the proposal, and the possible impact on residents. 

‘‘(E) The process includes criteria for selection, as follows: 

‘‘(i) The extent to which the proposal generally identifies existing 

rules and regulations that impede achievement of the goals and objectives of the proposal and an explanation of why participation in the 

program is necessary to achieve such goals and objectives. 

‘‘(ii) The extent of commitment and funding for carrying out the proposal by local government agencies and nonprofit organizations, including the provision of additional funding and other services, and the extent of support for the proposal by residents, resident advisory boards, 

and members of the local community. 

‘‘(iii) The extent to which the agency has a successful history of implementing strategies similar to those set forth in the agency’s proposal. 

‘‘(iv) Whether the proposal pursues a priority strategy as specified in 

paragraph (2). In the case of any proposal utilizing a such a priority 

strategy, the proposal shall be evaluated based upon—

‘‘(I) the extent to which the proposal is likely to achieve the objectives of developing additional housing dwelling units affordable 

to extremely low-, very low-, and low-income families, and preserving, rehabilitating, or modernizing existing public housing 

dwelling units; or 

‘‘(II) the extent to which the proposal is likely to achieve the purposes of moving families toward economic self-sufficiency and increasing employment rates and wages of families without imposing 

a significant rent burden on the lowest income families, as well as 

such of the additional purposes as may be identified in the proposal, which may include expanding housing choices utilizing coordinators for the family self-sufficiency program under section 23, 

making more effective use of program funds, and improving program management. 

‘‘(v) Such other factors as the Secretary may provide, in consultation 

with participating agencies, program stakeholders, and any entity conducting evaluations pursuant to subsection (f). 

‘‘(2) PRIORITY STRATEGIES.—For purposes of paragraph (1)(E)(iv), the following 

are priority strategies: 

‘‘(A) DEVELOPMENT, REHABILITATION, AND FINANCING.—A strategy of development of additional affordable housing dwelling units and/or a strategy 

for preservation and physical rehabilitation and modernization of existing 

public housing dwelling units. Such strategies may include innovative financing proposals, leveraging of non-public housing funds (including the 

low-income housing tax credit program), and combining of funds for assistance under sections 8 and 9. Each such proposal shall include detailed information about the strategies expected to be employed, an explanation of 

why participation in the program is necessary to employ such strategies, 

and numerical goals regarding the number of dwelling units to be developed, preserved, or rehabilitated. 


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‘‘(B) RENT REFORMS.—A strategy to implement rent reforms, which shall 

be designed to help families increase their earned income through rent and 

other work incentives, and may also test the effectiveness of achieving administrative cost savings without increased rent burdens for extremely lowand very low-income families. ‘‘(3) CONTRACT AMENDMENT.—After selecting agencies under this subsection, 

the Secretary shall promptly amend the applicable annual contributions contracts of such agencies to provide that— ‘‘(A) subject to subparagraph (B), such agencies may implement any policies and activities that are not inconsistent with this section without specifying such policies and activities in such amendment and without negotiating or entering into any other agreements with the Secretary specifying 

such policies and activities; and ‘‘(B) the activities to be implemented by an agency under the program in 

a given year shall be described in and subject to the requirements of the 

annual plan under subsection (e)(8). Upon the enactment of this section, 

any agency which has participated in the Moving to Work demonstration 

may, at its option, be subject to the provisions of this paragraph in lieu of 

any other agreement required by the Secretary for participation in the program. ‘‘(4) MAINTAINING PARTICIPATION RATE.—If, at any time after the initial selection period under paragraph (1), the number of public housing agencies participating in the program under this section is fewer than 40, the Secretary shall 

promptly solicit applications from and select public housing agencies to participate in the program under the terms and conditions for application and selection provided in this section to increase the number of agencies participating 

in the program to 40. 

‘‘(e) PROGRAM REQUIREMENTS.—

‘‘(1) PROGRAM FUNDS.—

‘‘(A) IN GENERAL.—To carry out a housing innovation program under this 

section, the participating agency may use amounts provided to the agency 

from the Operating Fund under section 9(e), amounts provided to the agency from the Capital Fund under section 9(d), and amounts provided to the 

agency for voucher assistance under section 8(o). Such program funds may 

be used for any activities that are authorized by sections 8(o) or 9, or for 

other activities that are not inconsistent with this section, which shall include, without limitation—

‘‘(i) providing capital and operating assistance, and financing for 

housing previously developed or operated pursuant to a contract between the Secretary and such agency; 

‘‘(ii) the acquisition, new construction, rehabilitation, financing, and 

provision of capital or operating assistance for low-income housing (including housing other than public housing) and related facilities, which 

may be for terms exceeding the term of the program under this section 

in order to secure other financing for such housing; 

‘‘(iii) costs of site acquisition and improvement, providing utility services, demolition, planning, and administration of activities under this 

paragraph; 

‘‘(iv) housing counseling for low-income families in connection with 

rental or homeownership assistance provided under the program; 

‘‘(v) safety, security, law enforcement, and anticrime activities appropriate to protect and support families assisted under the program; 

‘‘(vi) tenant-based rental assistance, which may include the projectbasing of such assistance; and 

‘‘(vii) appropriate and reasonable financial assistance that is required 

to preserve low-income housing otherwise assisted under programs administered by the Secretary or under State or local low-income housing 

programs. 

‘‘(B) COMBINING FUNDS.—Notwithstanding any other provision of law, a 

participating agency may combine and use program funds for any activities 

authorized under this section, except that a participating agency may use 

funds provided for assistance under section 8(o) for activities other than 

those authorized under section 8(o) only if (i) in the calendar year prior to 

its participation in the program, the agency utilized not less than 95 percent of such funds allocated for that calendar year for such authorized activities or 95 percent of its authorized vouchers, including vouchers ported 

in to the agency and vouchers ported out; or (ii) after approval to participate in the program, the agency achieves such utilization for a 12-month 

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proved by the Secretary to combine funds from sections 8 and 9 of the Act 

prior to enactment of this section. ‘‘(2) USE OF PROGRAM FUNDS.—In carrying out the housing innovation program under this section, each participating agency shall continue to assist— ‘‘(A) not less than substantially the same number of eligible low-income 

families under the program as it assisted in the base year for the agency; 

and ‘‘(B) a comparable mix of families by family size, subject to adjustment 

to reflect changes in the agency’s waiting list, except that the Secretary 

may approve exceptions to such requirements for up to 3 years based on 

modernization or redevelopment activities proposed in an annual plan submitted and approved in accordance with paragraph (8). 

Determinations with respect to the number of families served shall be adjusted 

based on any allocation of additional vouchers under section 8(o) and to reflect 

any change in the percentage of program funds that a participating agency receives compared to the base year. ‘‘(3) RETAINED PROVISIONS.—Notwithstanding any other provision of this section, families receiving assistance under this section shall retain the same 

rights of judicial review of agency action as they would otherwise have had if 

the agency were not participating in the program, and each participating agency 

shall comply with the following provisions of this Act: 

‘‘(A) Subsections (a)(2)(A) and (b)(1) of section 16 (relating to targeting for 

new admissions in the public housing and voucher programs). 

‘‘(B) Section 2(b) (relating to tenant representatives on the public housing 

agency board of directors). 

‘‘(C) Section 3(b)(2) (relating to definitions for the terms ‘low-income families’ and ‘very low-income families’). 

‘‘(D) Section 5(A)(e) (relating to the formation of and consultation with a 

resident advisory board). 

‘‘(E) Sections 6(f)(1) and 8(o)(8)(B) (relating to compliance of units assisted with housing quality standards or other codes). 

‘‘(F) Sections 6(c)(3), 6(c)(4)(i), and 8(o)(6)(B) (relating to rights of public 

housing applicants and existing procedural rights for applicants under section 8(o)). 

‘‘(G) Section 6(k) (relating to grievance procedures for public housing tenants) and comparable procedural rights for families assisted under section 

8(o). 

‘‘(H) Section 6(l) (relating to public housing lease requirements), except 

that for units assisted both with program funds and low-income housing tax 

credits, the initial lease term may be less than 12 months if required to 

conform lease terms with such tax credit requirements. 

‘‘(I) Section 7 (relating to designation of housing for elderly and disabled 

households), except that a participating agency may make such designations(at initial designation or upon renewal) for a term of up to 5 years if 

the agency includes in its annual plan under paragraph (8) an analysis of 

the impact of such designations on affected households and such designation is subject to the program evaluation. Any participating agency with a 

designated housing plan that was approved under the moving to work demonstration may continue to operate under the terms of such plan for a term 

of 5 years (with an option to renew on the same terms for an additional 

5 years) if it includes in its annual plan an analysis of the impact of such 

designations on affected households and is subject to evaluation under subsection (f). 

‘‘(J) Subparagraphs (C) through (E) of section 8(o)(7) (relating to lease requirements and eviction protections for families assisted with tenant-based 

assistance). 

‘‘(K) Subject to paragraph (1)(B) of this subsection, section 8(o)(13)(B) (relating to a percentage limitation on project-based assistance), except that 

for purposes of this subparagraph such section shall be applied by substituting ‘50 percent’ for ‘20 percent’. 

‘‘(L) Section 8(o)(13)(E) (relating to resident choice for tenants of units 

with project-based vouchers), except with respect to—

‘‘(i) in the case of agencies participating in the moving to work demonstration, any housing assistance payment contract entered into within 2 years after the enactment of this section; 

‘‘(ii) project-based vouchers that replace public housing units; 

‘‘(iii) not more than 10 percent of the vouchers available to the participating agency upon entering the housing innovation program under 

this section; and 


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‘‘(iv) any project-based voucher program that is subject to evaluation 

under subsection (f). ‘‘(M) Section 8(r) (relating to portability of voucher assistance), except 

that a participating agency may receive funding for portability obligations 

under section 8(dd) in the same manner as other public housing agencies. ‘‘(N) Subsections (a) and (b) of section 12 (relating to payment of prevailing wages). ‘‘(O) Section 18 (relating to demolition and disposition of public housing). ‘‘(4) RENTS AND REQUIREMENTS FOR CONTINUED OCCUPANCY OR PARTICIPA- TION.—

‘‘(A) BEFORE POLICY CHANGE.—Before adopting any policy pursuant to 

participation in the housing innovation program under this section that 

would make a material change to the requirements of this Act regarding 

tenant rents or contributions, or conditions of continued occupancy or participation, a participating agency shall complete each of the following actions: ‘‘(i) The agency shall conduct an impact analysis of the proposed policy on families the agency is assisting under the program under this 

section and on applicants on the waiting list, including analysis of the 

incidence and severity of rent burdens greater than 30 percent of adjusted income on households of various sizes and types and in various 

income tiers, that would result, if any, without application of the hardship provisions. The analysis with respect to applicants on the waiting 

list may be limited to demographic data provided by the applicable consolidated plan, information provided by the Secretary, and other generally available information. The proposed policy, including provisions 

for addressing hardship cases and transition provisions that mitigate 

the impact of any rent increases or changes in the conditions of continued occupancy or participation, and data from this analysis shall be 

made available for public inspection for at least 60 days in advance of 

the public meeting described in clause (ii). 

‘‘(ii) The agency shall hold a public meeting regarding the proposed 

change, including the hardship provisions, which may be combined 

with a public meeting on the draft annual plan under paragraph (8) or 

the annual report under paragraph (9). 

‘‘(iii) The board of directors or other similar governing body of the 

agency shall approve the change in public session. 

‘‘(iv) The agency shall obtain approval from the Secretary of the annual plan or plan amendment. The Secretary may approve a plan or 

amendment containing a material change to the requirements of this 

Act regarding tenant rents or contributions, or conditions of continued 

occupancy or participation, only if the agency agrees that such policy 

may be included as part of the national evaluation. 

‘‘(B) AFTER POLICY CHANGE.—After adopting a policy described in subparagraph (A), a program agency shall complete each of the following actions: 

‘‘(i) The agency shall provide adequate notice to residents, which 

shall include a description of the changes in the public housing lease 

or participation agreement that may be required and of the hardship 

or transition protections offered. 

‘‘(ii) In the case of any additional requirements for continued occupancy or participation, the agency shall execute a lease addendum or 

participation agreement specifying the requirements applicable to both 

the resident and the agency. A resident may bring a civil action to enforce commitments of the agency made through the lease addendum or 

participation agreement. 

‘‘(iii) The agency shall reassess rent, subsidy level, and policies on 

program participation no less often than every two years, which shall 

include preparing a revised impact analysis, and make available to the 

public the results of such reassessment and impact analysis. The requirement under this clause may be met by sufficiently detailed interim reports, if any, by the national evaluating entity. 

‘‘(iv) The agency shall include in the annual report under paragraph 

(8) information sufficient to describe any hardship requests, including 

the number and types of requests made, granted, and denied, the use 

of transition rules, and adverse impacts resulting from changes in rent 

or continued occupancy policies, including actions taken by the agency 

to mitigate such impacts and impacts on families no longer assisted 

under the program. 


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‘‘(C) APPLICABILITY TO EXISTING MTW AGENCIES.—An existing MTW agency that, before the date of the enactment of this section, implemented material changes to the requirements of this Act regarding tenant rents or contributions, or conditions of continued occupancy or participation, as part of 

the moving to work demonstration shall not be subject to subparagraph (A) 

with regard to such previously implemented changes, but shall comply with 

the requirements of subparagraph (B)(ii) and provide the evaluation and 

impact analysis required by subparagraph (B)(iii) by the end of the second 

agency fiscal year ending after such date of enactment. ‘‘(5) PROHIBITION AGAINST DECREASE IN PROGRAM FUNDS.—The amount of program funds a participating agency receives shall not be diminished by its participation in the housing innovation program under this section. ‘‘(6) SUBMISSION OF INFORMATION.—As part of the annual report required 

under subsection (g)(2), each participating agency shall submit information annually to the Secretary regarding families assisted under the program of the 

agency and comply with any other data submissions required by the Secretary 

for purposes of evaluation of the program under this section. ‘‘(7) PUBLIC AND RESIDENT PARTICIPATION.—Each participating agency shall 

provide opportunities for resident and public participation in the annual plan 

under paragraph (8), as follows: ‘‘(A) NOTICE TO RESIDENTS.—

‘‘(i) NOTICE.—Each year, the agency shall provide notice to the lowincome families it serves under the programs authorized by this section 

as to the impact of proposed policy changes and program initiatives and 

of the schedule of resident advisory board and public meetings for the 

annual plan. 

‘‘(ii) MEETING.—The agency shall hold at least one meeting with the 

resident advisory board (including representatives of recipients of assistance under section 8) to review the annual plan for each year. 

‘‘(B) PUBLIC MEETING.—With respect to each annual plan, the agency 

shall hold at least one annual public meeting to obtain comments on the 

plan, which may be combined with a meeting to review the annual report. 

In the case of any agency that administers, in the aggregate, more than 

15,000 public housing units and vouchers, the agency shall hold additional 

meetings in locations that promote attendance by residents and other 

stakeholders. 

‘‘(C) PUBLIC AVAILABILITY.—Before adoption of any annual plan, and not 

less than 30 days before the public meeting required under subparagraph 

(A)(ii) with respect to the plan, the agency shall make the proposed annual 

plan available for public inspection. The annual plan shall be made available for public inspection not less than 30 days before approval by the 

board of directors (or other similar governing body) of the agency and shall 

remain publicly available. 

‘‘(D) BOARD APPROVAL.—Before submitting an annual plan or annual report to the Secretary, the plan or report, as applicable, shall be approved 

in a public meeting by the board of directors or other governing body of the 

agency. 

‘‘(8) ANNUAL PLAN.—

‘‘(A) REQUIREMENT.—For each year that a participating agency participates in the housing innovation program under this section, the agency 

shall submit to the Secretary, in lieu of all other planning requirements, 

an annual plan under this paragraph. 

‘‘(B) CONTENTS.—Each annual plan shall include the following information: 

‘‘(i) A list and description of all program initiatives and generally applicable policy changes, including references to affected provisions of 

law or the implementing regulations affected. 

‘‘(ii) A description and comparison of changes under the housing innovation program of the agency from the plan for such program for the 

preceding year. 

‘‘(iii) A description of property redevelopment or portfolio repositioning strategies and proposed changes in policies or uses of funds 

required to implement such strategies. 

‘‘(iv) Documentation of public and resident participation sufficient to 

comply with the requirements under paragraphs (4) and (7), including 

a copy of any recommendations submitted in writing by the resident 

advisory board of the agency and members of the public, a summary 

of comments, and a description of the manner in which the recommendations were addressed. 


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‘‘(v) Certifications by the agency that— ‘‘(I) the annual plan will be carried out in conformity with title 

VI of the Civil Rights Act of 1964, the Fair Housing Act, section 

504 of the Rehabilitation Act of 1973, title II of the Americans with 

Disabilities Act of 1990, and the rules, standards, and policies in 

the approved plan; ‘‘(II) the agency will affirmatively further fair housing; and 

‘‘(III) the agency has complied and will continue to comply with 

its obligations under the national evaluation. ‘‘(vi) A description of the agency’s local asset management strategy 

for public housing properties, which shall be in lieu of any other asset 

management, project based management or accounting, or other system 

of allocating resources and costs to participating agency assets or cost 

centers that the Secretary may otherwise impose under this Act. ‘‘(C) CHANGES.—If the agency proposes to make material changes in policies or initiatives in the plan during the year covered by the plan, the agency shall consult with the resident advisory board for the agency established 

pursuant to section 5A(e) and the public regarding such changes before 

their adoption. ‘‘(D) APPROVAL PROCESS.— ‘‘(i) TIMING.—The Secretary shall review and approve or disapprove 

each annual plan submitted to the Secretary within 45 days after such 

submission. 

‘‘(ii) STANDARDS FOR DISAPPROVAL.—The Secretary may disapprove a 

plan only if—

‘‘(I) the Secretary reasonably determines, based on information 

contained in the annual plan or annual report, that the agency is 

not in compliance with the requirements of this section; 

‘‘(II) the annual plan or most recent annual report is not consistent with other reliable information available to the Secretary; 

or 

‘‘(III) the annual plan or annual report or the agency’s activities 

under the program are not otherwise in accordance with applicable 

law. 

‘‘(iii) FAILURE TO DISAPPROVE.—If a submitted plan is not disapproved 

within 45 days after submission, the plan shall be considered to be approved for purposes of this section. The preceding sentence shall not 

preclude judicial review regarding such compliance pursuant to chapter 

7 of title 5, United States Code, or an action regarding such compliance 

under section 1979 of the Revised Statutes of the United States (42 

U.S.C. 1983). 

‘‘(f) EVALUATION OF PERFORMANCE.—

‘‘(1) IN GENERAL.—Not later than the expiration of the one-year period that 

begins upon selection under subsection (d) of at least half of the number of 

agencies able to participate in the program under this section, the Secretary 

shall conduct detailed evaluations of all public housing agencies participating 

in the program under this section—

‘‘(A) to determine the level of success of each public housing agency in 

achieving the purposes of the program under subsection (a); and 

‘‘(B) to identify program models that can be replicated by other agencies 

to achieve such success. 

‘‘(2) REPORTS.—

‘‘(A) IN GENERAL.—The Secretary shall submit three reports to the Congress, as provided in subparagraph (B), evaluating the programs of all public housing agencies participating in the program under this section and all 

agencies participating in the moving to work demonstration. Each such report shall include findings and recommendations for any appropriate legislative action. 

‘‘(B) TIMING.—The reports under this paragraph shall include—

‘‘(i) an initial report, which shall be submitted before the expiration 

of the 3-year period beginning on the date of the enactment of the Section 8 Voucher Reform Act of 2007; 

‘‘(ii) an interim report, which shall be submitted before the expiration 

of the 5-year period beginning on such date of enactment; and 

‘‘(iii) a final report, which shall be submitted before the expiration of 

the 10-year period beginning on such date of enactment. 

‘‘(3) EVALUATING ENTITY.— The Secretary may contract out the responsibilities under this paragraphs (1) and (2) to an independent entity that is qualified 

to perform such responsibilities. 


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‘‘(4) PERFORMANCE MEASURES.—The Secretary or the evaluating entity, as applicable, shall establish performance measures, which may include— ‘‘(A) a baseline performance level against which program activities may 

be evaluated; and ‘‘(B) performance measures for— ‘‘(i) increasing housing opportunities for extremely low-, very low-, 

and low-income families, replacing or rehabilitating housing at risk of 

physical deterioration or obsolescence, and developing additional affordable housing; ‘‘(ii) leveraging other Federal, State, and local funding sources, including the low-income housing tax credit program, to expand and preserve affordable housing opportunities, including public housing; ‘‘(iii) moving families to self-sufficiency and increasing employment 

rates and wages of families without imposing a significant rent burden 

on the families having the lowest incomes; ‘‘(iv) reducing administrative costs; and 

‘‘(v) any other performance measures that the Secretary or evaluating 

entity, as applicable, may establish. ‘‘(g) RECORDKEEPING, REPORTS, AND AUDITS.— ‘‘(1) RECORDKEEPING.—Each public housing agency participating in the program under this section shall keep such records as the Secretary may prescribe 

as reasonably necessary to disclose the amounts and the disposition of amounts 

under the program, to ensure compliance with the requirements of this section, 

and to measure performance. 

‘‘(2) REPORTS.—In lieu of all other reporting requirements, each such agency 

participating in the program shall submit to the Secretary an annual report in 

a form and at a time specified by the Secretary. Each annual report shall include the following information: 

‘‘(A) A description, including an annual consolidated financial report, of 

the sources and uses of funds of the agency under the program, which shall 

account separately for funds made available under section 8 and subsections (d) and (e) of section 9, and shall compare the agency’s actions 

under the program with its annual plan for the year. 

‘‘(B) An annual audit that complies with the requirements of Circular A133 of the Office of Management and Budget, including the OMB Compliance Supplement. 

‘‘(C) A description of each hardship exception requested and granted or 

denied, and of the use of any transition rules. 

‘‘(D) Documentation of public and resident participation sufficient to comply with the requirements under paragraph (7). 

‘‘(E) A comparison of income and the sizes and types of families assisted 

by the agency under the program compared to those assisted by the agency 

in the base year. 

‘‘(F) Every two years, an evaluation of rent policies, subsidy level policies, 

and policies on program participation. 

‘‘(G) A description of any ongoing local evaluations and the results of any 

local evaluations completed during the year. 

‘‘(3) ACCESS TO DOCUMENTS BY SECRETARY.—The Secretary shall have access 

for the purpose of audit and examination to any books, documents, papers, and 

records that are pertinent to assistance in connection with, and the requirements of, this section. 

‘‘(4) ACCESS TO DOCUMENTS BY THE COMPTROLLER GENERAL.—The Comptroller 

General of the United States, or any of the duly authorized representatives of 

the Comptroller General, shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to assistance in connection with, and the requirements of, this section. 

‘‘(5) REPORTS REGARDING EVALUATIONS.—The Secretary shall require each 

public housing agency participating in the program under this section to submit 

to the Secretary, as part of the agency’s annual report under paragraph (2), 

such information as the Secretary considers appropriate to permit the Secretary 

to evaluate (pursuant to subsection (f)) the performance and success of the 

agency in achieving the purposes of the demonstration. 

‘‘(h) ADDITIONAL PROGRAM AGENCIES.—In participating in the program under the 

terms of this subsection, the public housing agencies designated for such participation shall be subject to the requirements of this section, and the additional following 

requirements: 

‘‘(1) APPLICABILITY OF CERTAIN EXISTING PROVISIONS.—Such agencies shall be 

subject to the provisions of—

‘‘(A) subsections (a) and (b) of section 3; and 


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‘‘(B) section 8(o), except for paragraph (11) and except that such agencies 

shall not be required to comply with any provision of such section 8(o) that 

pursuant to subsection (e)(3) of this section does not apply to agencies that 

are subject to such section (e)(3). ‘‘(2) NO TIME LIMITS.—Such agencies may not impose time limits on the term 

of housing assistance received by families under the program. ‘‘(3) NO EMPLOYMENT CONDITIONS.—Such agencies may not condition the receipt of housing assistance by families under the program on the employment 

status of one of more family members. ‘‘(4) ONE-FOR-ONE REPLACEMENT.— ‘‘(A) CONDITIONS ON DEMOLITION.—Such agencies may not demolish or 

dispose of any dwelling unit of public housing operated or administered by 

such agency (including any uninhabitable unit and any unit previously approved for demolition) except pursuant to a plan for replacement of such 

units in accordance with, and approved by the Secretary of Housing and 

Urban Development pursuant to, subparagraph (B). ‘‘(B) PLAN REQUIREMENTS.—The Secretary may not approve a plan that 

provides for demolition or disposition of any dwelling unit of public housing 

referred to in subparagraph (A) unless— ‘‘(i) such plan provides for outreach to public housing agency residents in accordance with paragraph (5); 

‘‘(ii) not later than 60 days before the date of the approval of such 

plan, such agency has convened and conducted a public hearing regarding the demolition or disposition proposed in the plan; 

‘‘(iii) such plan provides that for each such dwelling unit demolished 

or disposed of, such public housing agency will provide an additional 

dwelling unit through—

‘‘(I) the acquisition or development of additional public housing 

dwelling units; or 

‘‘(II) the acquisition, development, or contracting (including 

through project-based assistance) of additional dwelling units that 

are subject to requirements regarding eligibility for occupancy, tenant contribution toward rent, and long-term affordability restrictions which are comparable to public housing units; 

‘‘(iv) such plan provides for a right, and implementation of such right, 

to occupancy of additional dwelling units provided in accordance with 

clause (iii), for households who, as of the time that dwelling units demolished or disposed of were vacated to provide for such demolition or 

disposition, were occupying such dwelling units; 

‘‘(v) such plan provides that the proposed demolition or disposition 

and relocation will be carried out in a manner that affirmatively furthers fair housing, as described in subsection (e) of section 808 of the 

Civil Rights Act of 1968; and 

‘‘(vi) to the extent that such plan provides for the provision of replacement or additional dwelling units, or redevelopment, in phases 

over time, such plan provides that the ratio of dwelling units described 

in subclauses (I) and (II) of clause (iii) that are provided in any such 

single phase to the total number of dwelling units provided in such 

phase is not less than the ratio of the aggregate number of such dwelling units provided under the plan to the total number of dwelling units 

provided under the plan. 

‘‘(C) INAPPLICABLE PROVISIONS.—Subparagraphs (B) and (D) of section 

8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) 

shall not apply with respect to vouchers used to comply with the requirements of subparagraph (B)(iii) of this paragraph. 

‘‘(D) MONITORING.—The Secretary of Housing and Urban Development 

shall provide for the appropriate field offices of the Department to monitor 

and supervise enforcement of this paragraph and plans approved under this 

paragraph and to consult, regarding such monitoring and enforcement, with 

resident councils of, and residents of public housing operated or administered by, the agency. 

‘‘(5) COMPREHENSIVE OUTREACH PLAN.—No program funds of such agencies 

may be use to demolish, dispose of, or eliminate any public housing dwelling 

units except in accordance with a comprehensive outreach plan for such activities, developed by the agency in conjunction with the residents of the public 

housing agency, as follows: 

‘‘(A) The plan shall be developed by the agency and a resident task force, 

which may include members of the Resident Council, but may not be limited to such members, and which shall represent all segments of the popuVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00025 Fmt 6659 Sfmt 6621 E:\HR\OC\HR216.XXX HR216

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lation of residents of the agency, including single parent-headed households, the elderly, young employed and unemployed adults, teenage youth, 

and disabled persons. 

‘‘(B) The votes and agreements regarding the plan shall involve not less 

than 25 and not more than 35 persons. 

‘‘(C) The plan shall provide for and describe outreach efforts to inform 

residents of the program under this subsection, including a door-to-door information program, monthly newsletters to each resident household, monthly meetings dedicated solely to every aspect of the proposed development, 

including redevelopment factors, which shall include the one-for-one replacement requirement under paragraph (5), resident rights to return, the 

requirements of the program under this subsection, new resident support 

and community services to be provided, opportunities for participation in 

architectural design, and employment opportunities for residents, which 

shall reserve at least 70 percent of the jobs in demolition activities and 50 

percent of the jobs in construction activities related to the redevelopment 

project, including job training, apprenticeships, union membership assistance. 

‘‘(D) The plan shall provide for regularly scheduled monthly meeting updates and a system for filing complaints about any aspect of the redevelopment process. 

‘‘(i) DEFINITIONS.—For purposes of this section, the following definitions shall 

apply: 

‘‘(1) EXISTING MTW AGENCY.—The term ‘existing MTW agency’ means a public 

housing agency that as of the date of the enactment of the Section 8 Voucher 

Reform Act of 2007 has an existing agreement with the Secretary pursuant to 

the moving to work demonstration. 

‘‘(2) BASE YEAR.—The term ‘base year’ means, with respect to a participating 

agency, the agency fiscal year most recently completed prior to selection and approval for participation in the housing innovation program under this section. 

‘‘(3) MOVING TO WORK DEMONSTRATION.—The term ‘moving to work demonstration’ means the moving to work demonstration program under section 204 

of the Departments of Veterans Affairs and Housing and Urban Development, 

and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note). 

‘‘(4) PARTICIPATING AGENCIES.—The term ‘participating agencies’ means public 

housing agencies designated and approved for participation, and participating, 

in the housing innovation program under this section. 

‘‘(5) PROGRAM FUNDS.—The term ‘program funds’ means, with respect to a 

participating agency, any amounts that the agency is authorized, pursuant to 

subsection (e)(1), to use to carry out the housing innovation program under this 

section of the agency. 

‘‘(6) RESIDENTS.—The term ‘residents’ means, with respect to a public housing 

agency, tenants of public housing of the agency and participants in the voucher 

or other housing assistance programs of the agency funded under section 8(o), 

or tenants of other units owned by the agency and assisted under this section. 

‘‘(j) AUTHORIZATION OF APPROPRIATIONS FOR RESIDENT TECHNICAL ASSISTANCE.—

There is authorized to be appropriated for each of fiscal years 2008 through 2012 

$10,000,000, for providing capacity building and technical assistance to enhance the 

capabilities of low-income families assisted under the program under this section to 

participate in the process for establishment of annual plans under this section for 

participating agencies. 

‘‘(k) AUTHORIZATION OF APPROPRIATIONS FOR EVALUATIONS.—There is authorized 

to be appropriated $15,000,000 to the Department of Housing and Urban Development for the purpose of conducting the evaluations required under subsection 

(f)(1).’’. 

(b) GAO REPORT.—Not later than 48 months after the date of the enactment of 

this Act, the Comptroller General of the United States shall submit a report to the 

Congress on the extent to which the public housing agencies participating in the 

housing innovation program under section 36 of the United States Housing Act of 

1937 are meeting the goals and purposes of such program, as identified in subsection (a) of such section 36. 

SEC. 17. DEMONSTRATION PROGRAM WAIVER AUTHORITY. 

(a) AUTHORITY TO ENTER INTO AGREEMENTS.—Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may enter into such 

agreements as may be necessary with the Social Security Administration and the 

Secretary of Health and Human Services to allow for the participation, in any demonstration program described in subsection (c), by the Department of Housing and 


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Urban Development and the use under such program of housing choice vouchers 

under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)). 

(b) WAIVER OF INCOME REQUIREMENTS.—The Secretary of Housing and Urban Development may, to extent necessary to allow rental assistance under section 8(o) of 

the United States Housing Act of 1937 to be provided on behalf of persons described 

in subsection (c) who participate in a demonstration program described in such subsection, and to allow such persons to be placed on a waiting list for such assistance, 

partially or wholly disregard increases in earned income for the purpose of rent calculations under section 3 for such persons. 

(c) DEMONSTRATION PROGRAMS.—A demonstration program described in this subsection is a demonstration program of a State that provides for persons with significant disabilities to be employed and continue to receive benefits under programs of 

the Department of Health and Human Services and the Social Security Administration, including the program of supplemental security income benefits under title XVI 

of the Social Security Act, disability insurance benefits under title II of such Act, 

and the State program for medical assistance (Medicaid) under title XIX of such Act. 

SEC. 18. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated the amount necessary for each of fiscal 

years 2008 through 2012 to provide public housing agencies with incremental tenant-based assistance under section 8(o) of the United States Housing Act of 1937 

(42 U.S.C. 1437f(o)) sufficient to assist 20,000 incremental dwelling units in each 

such fiscal year. 

SEC. 19. EFFECTIVE DATE. 

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

PURPOSE AND SUMMARY

The purpose of H.R. 1851, the ‘‘Section 8 Voucher Reform Act of 

2007,’’ is to authorize a reliable funding allocation formula for annual renewal of Section 8 housing vouchers, to simplify rent calculation and inspection requirements for Section 8 vouchers, 

project-based assistance, and public housing, and to promote selfsufficiency on the part of assisted families through work incentives 

and homeownership opportunities. The bill also expands and renames the ‘‘Moving to Work’’ program, in which public housing 

agencies undertake innovative housing proposals, with the purpose 

of identifying models and policies that might be extended to all 

housing agencies. 

The bill is designed to accomplish these goals, while maintaining important protections for low-income families, and in particular 

the very poorest families, being assisted under these federal rental 

housing programs. Income targeting requirements are maintained, 

as are statutory rent protections that ensure that rents are affordable for public and assisted families. Housing voucher requirements that ensure that rental units meet federal housing quality 

standards are maintained. And tenant participation requirements, 

lease protections, and administrative grievance rights are maintained, and in the case of the revised Moving to Work program (renamed the ‘‘Housing Innovation Program’’), are enhanced. 

BACKGROUND AND NEED FOR LEGISLATION

SECTION 8 VOUCHER FUNDING FORMULA

Program administrators, owners, and other stakeholders have expressed growing frustration about numerous changes made over 

the last several years to the Section 8 voucher funding formula and 

program rules. These included a major revision to the basic funding 

allocation formula coupled with deepening pro rata funding cuts, 

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ing agency (PHA) program reserves, a new prohibition against exceeding the number of authorized families (‘‘overleasing’’), a major 

revision of the way administrative costs are funded, and a HUD 

policy change reducing the number of tenant protection vouchers 

provided when public and assisted housing units are demolished or 

lost. Concerns have been raised about the loss of some 150,000 

vouchers since a major funding formula change three years ago, in 

conjunction with a buildup of some $1.4 billion in unused voucher 

funds which were not used for the pro- gram purpose of providing 

voucher assistance. 

During committee hearings and roundtable discussions over the 

last several years, program stakeholders expressed strong support 

for the enactment of authorizing legislation governing voucher 

funding renewals. Adoption of a reliable, predictable funding policy 

would facilitate the ability of program administrators to make better short- and long-term planning decisions. 

The bill establishes a funding authorization formula for the renewal of Section 8 vouchers over the period from Fiscal Year 2008 

through 2012. The purpose is to provide a more efficient funding 

formula that bases funding allocations more on need, and that creates incentives for PHAs to use their annually allocated funding to 

provide vouchers to serve more families. The changes would create 

a more efficient funding allocation by shifting resources from agencies not using all their funds to agencies willing and able to use 

them to serve more families. At the same time, agencies that would 

receive fewer funds than they would have received under the prior 

formula are protected because these are the very same PHAs that 

will have reserves, which they can use to maintain voucher utilization levels. 

Specifically, the bill allocates voucher renewal funds each year 

based on the leasing and cost data for each public PHA from the 

prior calendar year. Consistent with the practice in recent years, 

an annual inflation adjustment is provided—except that the bill includes language designed to make such adjustments more accurate, 

by requiring HUD to base inflation adjustments on the smallest 

geographical areas for which data is annually available. Individual 

PHA funding allocations are also adjusted for tenant protection and 

enhanced vouchers received in the preceding year, for any vouchers 

a PHA may have set aside for project-based assistance, for vouchers a PHA absorbed during the prior year, and for such other adjustments as HUD considers appropriate, including making adjustments for natural and other major disasters. 

Unlike the voucher funding practices in place prior to the program changes made starting in FY 2004, the bill does not return 

to a ‘‘cost plus’’ reimbursement system, in which PHAs are automatically made whole for all validly incurred voucher costs. Instead, the bill retains the practice, started in 2004, of providing 

PHAs with a fixed amount of voucher funds for each calendar year, 

which a PHA must live within. Unlike the pre-2004 policy, PHAs 

will not be reimbursed for reserves they use to provide voucher assistance. Finally, appropriators retain full control over the amount 

of annual renewal funds appropriated each year, through a provision allowing for proration if funding is not sufficient to meet all 

renewal needs under the formula. 


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However, changes are made to make the program more efficient. 

First, in contrast with recent years in which PHAs have been permitted to retain all accumulated unused voucher funds as reserves, 

the bill provides that PHAs may retain a one-month reserve level 

at the end of 2007 (the transition year), and a 5 percent reserve 

level in each succeeding year. Language is included guaranteeing 

that PHAs may retain such reserves, so that they can plan on 

using all their allocated funds without fear that their safety net of 

reserves might be rescinded mid-year. In addition, the bill provides 

that a PHA with no or limited reserves may receive a 2 percent advance in the last three months of the calendar year to cover unanticipated overages in that year. This provision is cost neutral, as 

a PHA in effect ‘‘repays’’ this advance just a few months later 

through an offsetting downward adjustment in their next year’s 

funding allocation. 

The reserve levels authorized in the bill are also intended as a 

ceiling, since the bill requires HUD to recapture excess reserves 

and reallocate them for program needs. First priority for reallocated funds is for mid-year portability absorption costs and increased family self-sufficiency costs. All remaining funds are to be 

reallocated by May 1st to agencies that have effectively used available funds for the purpose of increasing the number of voucher 

families they are serving. It is expected that HUD would establish 

criteria for fund reallocation to direct funds to agencies which meet 

or exceed a certain threshold of fund utilization, with funding provided to a significant number of such agencies. The reallocation 

process is an important feature both in providing incentives for 

PHAs to use their allocated funds [as opposed to building up large 

reserves], and in promoting efficiency in fund use, by channeling 

excess unused funds to agencies that will serve more families. Reallocation also ensures that funds that were originally appropriated 

for housing vouchers continue to be used for that purpose, instead 

of being rescinded and used for non-housing purposes, as has been 

the case periodically in the past. 

The bill also restores the policy in place prior to FY 2003 which 

permits ‘‘overleasing’’—that is, providing vouchers to more families 

than a PHA is entitled to serve. The purpose of the change is to 

provide incentives for PHAs to use funds more efficiently, by permitting funds not needed to cover a PHA’s authorized number of 

families to serve additional families. However, funding calculations 

in 2009 which are based on the first transition year (2008) limit 

the use of reserves in 2008 to increase leasing up to 103 percent 

of a PHA’s number of authorized families, in recognition of the 

higher level of retained reserves permitted that year. Without this 

limit, PHAs with large amounts of accumulated unused funds from 

prior years could receive an inappropriate benefit, by being able to 

use such large reserves to inflate a PHA’s baseline. In practice, it 

would be appropriate to extend this limitation for any year in 

which appropriations bills might elect to permit PHA retained reserves to exceed 5 percent. 

The bill restores an important incentive for PHAs to maximize 

the number of voucher families they are serving, by re-instating 

the statutory requirement that voucher administrative fees shall be 

based on the number of vouchers in use. Specifically, the bill retains the Fiscal Year 2003 per-unit fee as a baseline, along with 


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subsequent annual inflation adjustments. It provides that voucher 

administrative fees also include an amount for the cost of issuing 

new vouchers. 

The bill would reverse the policy implemented by the Department of Housing and Urban Development in January 2006, which 

reduces the number of tenant replacement vouchers issued when 

public and assisted housing units are lost. Prior to January 2006, 

a replacement voucher was provided for every lost public and assisted housing unit. The 2006 policy limits such vouchers to only 

those units occupied at the time a PHA applies for replacement 

vouchers. This determination is arbitrary, as units may be vacant 

for many reasons, including anticipated changes in ownership or 

planned demolition. Moreover, the policy reduces the number of 

families which may be federally assisted. The bill restores the prior 

policy requiring tenant replacement vouchers for all lost units. 

The bill requires HUD to develop and issue guidance to PHAs receiving incremental vouchers for non-elderly disabled families between 1997 and 2002 to ensure that these vouchers continue to be 

provided to such families upon turnover. This requirement addresses concerns that such vouchers have been converted to general 

voucher use, and not reserved for disabled families. 

ADMINISTRATIVE SIMPLIFICATION—RENT CALCULATIONS

The bill simplifies the rules used to establish rents and subsidies 

for the Section 8 voucher and project-based assistance programs 

and for public housing, while maintaining the essential and longstanding statutory provisions that keep rents affordable for lower 

income families. 

For elderly and disabled tenants, the threshold for income deductions for medical expenses, including handicapped assistance costs, 

is increased from 3 percent to 10 percent of a family’s income. This 

higher threshold will eliminate the need for a significant number 

of families to keep and submit detailed medical expense information and will reduce PHAs’ administrative burden, while maintaining deductions for significant and catastrophic medical costs. To offset this medical deduction threshold increase, the standard deduction for elderly and disabled families is increased from $400 to 

$725 (with indexing thereafter in $25 increments). The net overall 

effect on tenants is expected to be at most a small rent increase 

or decrease compared to current law. 

For non-elderly and non-disabled families, particularly families 

with children, calculations are also simplified, through the elimination of deductions for child care expenses, and for child and 

spousal support. To offset this change, rent calculation work incentives are provided for all families with earned income (as noted in 

the subsequent section on self-sufficiency). 

The bill also includes a number of provisions to simplify the process PHAs and owners use to calculate rents, which are designed to 

result in very limited changes in the rent levels for public and assisted families. These include relieving PHAs of responsibility to 

maintain records of HUD-required miscellaneous income exclusions, use of a HUD-prescribed inflation adjustment for fixed income families, permitting PHA safe harbor reliance on other governmental income determinations (e.g., Medicaid, TANF), and perVerDate Aug 31 2005 03:04 Jul 04, 2007 Jkt 059006 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\HR216.XXX HR216

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mitting PHAs to make other appropriate adjustments when using 

prior year’s calculations for other types of income. 

All these changes to rent calculations are designed to result in 

roughly comparable rent burdens for families as under current 

statute, and also to result in roughly comparable Section 8 and 

public housing costs. However, it is expected that during the transitional period, HUD, PHAs and owners will make a concerted effort to inform assisted families of the pending changes in rent rules 

and any potential adverse consequences, and in particular to work 

with families most affected by the change (such as families currently eligible for the child care deduction) to assist them in this 

transition. 

Since public housing agencies have not received full funding in 

recent years to cover their operating costs, the bill requires HUD 

to make public housing operating funding formula adjustments to 

reflect any non de minimus reductions in public housing rental income arising from rent reforms, during the period in which revenue 

is frozen under the asset management rule. The bill also requires 

HUD to submit to Congress, for both Fiscal Years 2008 and 2009, 

a report identifying and calculating the impact of rent reforms on 

public housing costs and revenues. 

ADMINISTRATIVE SIMPLIFICATION—RECERTIFICATION

The most significant simplification provision in the bill is that 

the annual rent re-certification requirement is modified to permit 

PHAs to recertify ‘‘fixed income’’ families only every three years. 

This class of families is defined as any family with more than 90 

percent of income from a combination of Social Security, SSI, governmental and private pensions, and similar periodic payments. Income for these families is fairly predictable, and use of generic CPI 

adjustments for such income in years without recertification should 

closely track actual income. This change would result in a two 

thirds reduction in the administrative burden of recertifying such 

families, which constitute an estimated more than one third of all 

public and assisted families. 

The interim recertification process is also simplified, to provide 

for such interim recertifications only if unearned annual income increases by $1,500, or if a family requests a recertification if its annual income is estimated to fall by $1,500 or more (or such lesser 

amount as the PHA may establish). These thresholds eliminate 

time consuming midyear recertifications which have a minimal 

rent impact, while protecting families whose income drops by 

meaningful amounts. 

ADMINISTRATIVE SIMPLIFICATION—VOUCHER INSPECTIONS

The bill also makes a number of changes to the inspection and 

reinspection requirements for rental housing units that serve Section 8 voucher holders, while at the same time maintaining the essential tenant protections that tenants should not move into unsafe 

units and that such units should be maintained at levels which 

meet federal Housing Quality Standards (HQS). 

The bill retains the existing statutory requirement that a rental 

unit be inspected prior to occupancy, but it permits occupancy and 

payments to landlords for up to 30 days if a unit fails inspection 

as a result only of non-life threatening conditions. Even in this 


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case, payments must be suspended after 30 days if the deficiencies 

are not corrected. The bill also lets PHAs permit occupancy prior 

to inspection if another federal program inspection meeting federal 

Housing Quality Standards has been made within the preceding 12 

months, and to make payments to the owner retroactive to the beginning of the lease term when an inspection is subsequently completed. The statutory provision requiring PHAs to inspect units 

within 15 days of a landlord’s request would continue to apply to 

inspections in such case. The purpose of these provisions is to allow 

tenants to move into habitable units as quickly as possible, and 

also to avoid discouraging landlords from accepting voucher families because of voucher rules that unnecessarily reduce rent revenues by delaying tenant move-ins. 

The bill changes the annual re-inspection requirement to a requirement that properties be re-inspected at least every two years. 

This provides for an effective 50 percent reduction in the number 

of required inspections, while requiring periodic inspections at reasonable intervals and maintaining a family’s right to request an interim inspection if there are problems with the unit they live in. 

The bill also permits use of federal, state, or local inspections in 

lieu of a PHA voucher re-inspection, subject to the condition that 

such inspection provides comparable standards to those that apply 

to the voucher program. This avoids the cost and burden of redundant inspections. The flexibility provided to use inspections from 

other programs, such as the HOME program, in lieu of a voucher 

inspection is not intended to reduce safety or reduce the level of 

standards that units must meet. Thus, it is important that PHAs 

ensure that any inspections used under such other programs fully 

meet Federal voucher program Housing Quality Standards. 

SELF-SUFFICIENCY INCENTIVES

The bill includes a number of provisions designed to create incentives for families to obtain employment, increase earned income, 

pursue higher education, and save for retirement. 

First, the bill requires PHAs to calculate a family’s earned income using the amount earned in the prior year. This should increase the accuracy of the calculation. More importantly, this 

should have an earned income disregard effect by delaying imposition of rent increases that would otherwise result from increases in 

earned income. The bill also prohibits interim recertifications of increases in earned income. These income disregard features reduce 

work disincentives that otherwise result when rents rise immediately as a result of increases in income. 

The bill also provides for an explicit disregard of 10 percent of 

a family’s (prior year) earned income. This creates an additional income disregard, and is designed to further mitigate the current 

work disincentives that are associated with rent increases that otherwise result from income increases. 

The bill also modifies existing income targeting requirements, to 

make it easier for lower income working families to receive a 

voucher in rural and other lower income geographic areas. The 

statute currently requires that 75 percent of new families that receive voucher assistance from an agency each year must have incomes below 30 percent of the local area median income (defined 

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ment is to target the limited supply of vouchers to our nation’s 

poorest families. In addition, 40 percent of public housing units and 

Section 8 project-based units that become available each year must 

be rented to such extremely low income families. 

One result of this locally based income calculation is that the dollar amount targeting income threshold is relatively lower in rural 

and other areas with lower incomes. This can result in limiting 

vouchers and other federal rental assistance in these areas to only 

the lowest of lower income working families (and in some areas can 

even exclude minimum wage workers). The bill addresses this impact by modifying the income targeting cutoff to be the higher of 

30 percent of local area median income (the current threshold) or 

the national poverty level for a family of comparable size. This national poverty level threshold was set as a reasonable cutoff point 

for targeting rental assistance to our nation’s poorest families. 

One tool that PHAs have to encourage work and self-sufficiency 

is the Family Self-Sufficiency (FSS) Program. FSS coordinators 

work with families to help them pursue education, develop job 

skills, and obtain employment. FSS participants build savings in 

amounts equal to the increased rent payments that result from 

their increases in earnings. Unfortunately, the current process of 

funding FSS coordinators through an annual HUD competition for 

limited federal grant funds has resulted in uncertain funding for 

such coordinators, which has reduced their effectiveness and cut 

into other PHA resources. The bill provides for more reliable funding of family self-sufficiency coordinators by including an amount 

for such costs in a PHA’s voucher administrative costs. Fees are 

generally provided based on the number of coordinators employed 

and the number of families being served, with funding required for 

agencies that received funding for 3 or more self-sufficiency coordinators anytime from FY 1998 to FY 2007. 

In addition, to avoid disincentives for families and their children 

to pursue higher education opportunities, the bill exempts income 

of adult dependents that are full time students, exempts from income grant-in-aid or scholarship amounts used for tuition or books, 

and exempts income from Coverdell education savings accounts 

and Section 529 qualified tuition programs. 

The bill also authorizes HUD to enter into agreements with the 

Social Security Administration and the Secretary of Health and 

Human Services to allow for participation in state demonstration 

programs designed to permit persons with significant disabilities to 

be employed and continue to receive a range of federal benefits. 

HUD is authorized to permit a partial or complete disregard of increases in earned income for persons participating in any such 

demonstration for the purpose of calculating rent contributions for 

Section 8 housing vouchers. 

Finally, to ensure that public and federally assisted tenants get 

proper credit for paying their rent on time, the bill authorizes a 

PHA to submit information regarding rental payment history for 

voucher tenants to credit reporting agencies, providing the family 

agrees to such submission. 

HOMEOWNERSHIP

In 1998, as part of broader housing legislation, Congress adopted 

a provision permitting voucher holders, at the local option of each 


cnoel on PRODPC60 with HEARING
34 

PHA, to use a voucher for a down payment on a home purchase. 

However, that bill made such use subject to appropriation in advance. The bill effectively lifts this condition, by permitting voucher 

funds to be used for a down payment for a first-time home purchase, as a one-time grant in an amount not exceeding $10,000, for 

families who have been receiving voucher assistance for a period of 

at least one year. Unlike the use of vouchers to finance annual 

mortgage payments (which is currently permitted at a PHA’s option), use of a voucher for a down payment on a home purchase 

also frees up the voucher for a different family in the following 

year. 

The bill also facilitates the use of vouchers for the full cost of 

purchasing manufactured homes sited on leased land, by permitting voucher funds to be used for both the cost of leasing the land, 

and for the monthly home purchase costs, including property taxes, 

insurance, and tenant-paid utilities. Currently, the statute only 

permits a voucher to be used to pay the cost of leasing the land, 

which makes the voucher of little use for such purpose. This 

change should be particularly helpful in expanding affordable housing opportunities to voucher holders in rural areas. 

PORTABILITY

The bill changes the current policy regarding ‘‘ported vouchers,’’ that is, where a family receives a voucher from their local PHA and 

moves to an area under the jurisdiction of another PHA. Currently, 

when a family moves from one area to another, the sending PHA 

continues to fund the voucher and enters into a billing arrangement with the receiving PHA. This procedure is administratively 

cumbersome. It is also potentially costly to the sending agency 

whenever rents in the receiving PHA are higher—a factor which 

has resulted in many PHAs limiting the opportunity of voucher 

holders to move to other areas. This undermines one of the voucher 

program’s central features, that of mobility. 

Therefore, the bill requires PHA receiving agencies to ‘‘absorb’’

such ported vouchers. (However, in cases in which there are overlapping PHA jurisdictions or in which state law permits PHAs to 

continue to administer a voucher in another area, the absorption 

requirement need not apply). 

An essential feature of this requirement is that it not impose 

new costs on PHAs. Therefore, it is essential that all the provisions 

included in the bill which ensure full funding of portability costs 

are implemented at such time as the absorption requirement is implemented (along with any related overleasing authority for the 

small number of agencies that might need it, which the bill provides). 

Under the bill, the sending PHA is not adversely affected financially in the year absorption takes place since the PHA may reissue 

a new voucher immediately following such a port (in the same 

manner as if the voucher were turned back in). Also, the sending 

PHA is not adversely affected under the following year’s baseline 

calculation, since that calculation would take into account both the 

ported voucher expenditure through the date of absorption, plus 

the expenditure related to the replacement voucher after the port. 

The receiving agency is not adversely affected financially in the 

year absorption takes place, since the bill makes funding of inVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00034 Fmt 6659 Sfmt 6602 E:\HR\OC\HR216.XXX HR216

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creased costs by receiving agencies a first priority under the reallocation process for recaptured excess reserves. (In practice, this 

could alternatively be accomplished through establishment of a 

fund at the beginning of the calendar year through annually appropriated funds for such purpose). The cost of funding such 

absorptions could be limited by doing this on a net absorption basis 

for each agency. In addition, HUD should permit PHAs to accelerate their pro rata monthly allocation of voucher funds, if necessary, to accommodate increased costs related to absorption. Regardless of the timing, it is essential that PHAs be funded or reimbursed for all increased costs related to mid-year absorption, so 

that PHAs do not otherwise reduce the number of local families receiving a voucher or deplete their reserves. A receiving agency is 

also protected under its funding allocation in the subsequent year 

for the cost of ported vouchers by language explicitly requiring 

HUD to make adjustments for portability, to reflect a partial year 

expenditure for the ported voucher in the prior year. 

There will be a one-time transitional impact, as the current levels of ported vouchers are absorbed under this new provision. HUD 

should take appropriate actions to protect PHAs from the effects of 

this transition. The bill’s authority to make funding allocation adjustments for ported vouchers should be used to protect PHAs that 

are major net sending agencies to reflect a one-time lag relating to 

reissuance of what may be a significant number of vouchers. In addition, in performing voucher performance assessments for the purpose of measuring the factor of ‘‘the extent of utilization of allocated funds and authorized vouchers,’’ HUD should make allowances for any one-time, temporary voucher utilization decline resulting from this transition. 

INCREMENTAL VOUCHERS

The bill authorizes funding for 20,000 incremental Section 8 

vouchers each year from Fiscal Year 2008 through Fiscal Year 

2012, for a total cumulative amount of 100,000 new vouchers. 

HOUSING INNOVATION PROGRAM

The bill renames the ‘‘Moving to Work’’ (MTW) program as the ‘‘Housing Innovation Program’’ (HIP). HUD is required to carry out 

this program, in which HUD may designate no more than 60 agencies (including existing agencies approved for program continuation), and may add 20 additional agencies [so-called ‘‘HIP-lite’’ agencies] under more stringent program limitations. The program 

is extended for a 10-year period. 

HUD is required to approve existing MTW agencies for continued 

eligibility, provided they are not in default under their existing 

MTW agreement and that HUD determines they are meeting their 

goals and objectives. Agencies approved for continuation must generally make changes to existing policies to bring them in line with 

new program rules within two years of enactment. 

No more than five agencies newly selected for program participation may be ‘‘near-troubled.’’ Agencies shall be selected to provide 

for diversity with respect to size, geography, and areas served (i.e., 

urban, suburban, and rural). Applicants must have held two public 

meetings on their HIP application proposal, preceded by 30 days 

prior notice to residents and the local community. Agencies shall 


cnoel on PRODPC60 with HEARING
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be selected based on criteria to be established by HUD, which shall 

include the extent to which the proposal generally identifies rules 

and regulations that impede achievement of its goals and objectives 

and why program participation is necessary to achieve such goals 

and objectives; the extent of local commitment and funding; the extent to which the applicant has a history of success in pursuing 

similar strategies to those identified in the application; and whether the proposal pursues one of two priority strategies. The two priority strategies are (1) development, rehabilitation, and financing, 

and (2) rent reforms designed to increase earned income and 

achieve administrative cost savings without increased rent burdens 

for extremely-low and very-low income families. 

These more targeted critieria for PHA selection are intended to 

provide a clearer focus on what agencies plan to do with the deregulated rules permitted under the program, as well as why such 

deregulation is essential to carrying out goals and objectives. The 

priority strategies are intended to develop a focus on experimentation that can later be used as a model for federal policy makers 

in determining whether certain specific rules should be changed 

nationwide. 

Activities which can be undertaken with program funds are enumerated, subject to requirements that a PHA must assist not less 

than substantially the same number of low income families, with 

a comparable mix of families by family size. A number of existing 

statutory requirements are retained, including income targeting, 

Section 18 demolition and disposition rules, a number of tenant 

protections including lease requirements and eviction protections, 

portability, and other provisions. A number of procedural, PHA 

plan, and tenant participation requirements are spelled out for any 

PHA policy changes under the program that would make a material change to tenant rents or contributions or to conditions of continued occupancy or participation, including requirements for hardship protections and transition policies. The purpose of these enhanced protections for assisted families is to ensure greater involvement of affected families in the policies being developed, and 

to ensure that such families are not adversely affected by activities 

being pursued under the more relaxed program rules. 

Additionally, the 20 HIP-lite agencies must comply with statutory rent requirements, may not impose time limits, may not establish work requirements, must replace demolished or disposed of 

public housing units on a one for one basis, and must include more 

extensive resident participation in any plan which provides for 

demolition or disposition of public housing units. HIP-lite is designed for agencies that may want to participate in innovative finance and development activities, but have no interest in pursuing 

rent and other tenant policies. 

It is expected that HUD will fund Housing Innovation Program 

agencies under a funding agreement, as has been the case with 

Moving to Work Agencies, and further that HUD will continue to 

offer such agencies the alternative option of receiving funding according to the amounts they would otherwise receive under voucher 

and public housing rules. 

HUD must perform evaluations of agencies participating in the 

program or may contract out such responsibility to an independent 

entity qualified to perform such task. It is expected and HUD is enVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\HR216.XXX HR216

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couraged to use its authority to contract out the evaluating function to an independent entity. Such evaluations must use performance measures and identify models that can be replicated by other 

agencies to achieve success. HUD is required to submit evaluation 

reports at 3-, 5-, and 10-year periods. The purpose of this more 

structured evaluation process is to improve the methodology used 

to evaluate the successes and problems of the program than has existed for the MTW program. $10 million is authorized in each of the years FY 2008 through 

FY 2012 for capacity building and technical assistance to enhance 

the capabilities of low income families assisted under the program 

to participate effectively in local policy deliberations. $15 million is 

authorized for HUD to conduct the required evaluations. 

PROJECT-BASING OF VOUCHERS

An important feature of housing vouchers is the flexibility voucher families have to decide where to live, including the opportunity 

to move to areas where there are job and educational opportunities. 

However, another important option under the voucher program is 

the ability of PHAs to project base vouchers. This option is particularly important for PHAs located in areas with tight rental markets 

and rising rents, and for PHAs seeking to provide supportive housing for persons with disabilities and for formerly homeless individuals and families. Under project basing, a PHA and an owner reach 

agreement under which the landlord agrees to attach a tenantbased voucher to a certain number of units within a rental development. 

The bill includes a number of provisions to make the project basing of vouchers more flexible and effective. The bill extends the 

maximum voucher contract term from 10 to 15 years, which should 

make it easier for owners to obtain financing and thus enhance affordability, including for projects funded with low income housing 

tax credits. The bill also reverses an October, 2005 HUD action to 

reduce Section 8 rents in projects used with low income housing 

tax credits—by specifically providing that Section 8 rent assistance 

levels be maintained for such projects. 

The bill also increases the percentage of vouchers a PHA can 

project-base from 20 percent to 25 percent, with authority to go 5 

percent higher to serve homeless persons. It permits income mixing 

at the project level, instead of the building level, and it sets the 

percentage of vouchers that can be project-based in a project at the 

greater of 25 units or 25 percent of the units in any project, with 

authority to go up to 50 percent in areas where it is hard for voucher holders to find rental units. The bill permits project-based 

vouchers to be used in cooperative housing and in high rise elevator projects occupied by families with children. The bill eliminates 

redundant and unnecessary subsidy layering review and environmental review requirements. The bill clarifies that lease and tenancy provisions pertaining to Section 8 vouchers shall apply to 

project-basing of vouchers, except that the one year minimum lease 

term shall not apply. And, the bill permits owners using projectbased vouchers to maintain site-based waiting lists, subject to PHA 

oversight. The bill also provides an absolute preference for families 

that reside in dwelling units proposed to receive project-based assistance who are otherwise eligible for such assistance. 


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ASSET/INCOME TESTS AND PROHIBITION AGAINST OWNERSHIP OF

RESIDENCE

In recognition of long housing voucher and public housing waiting lists, the bill strengthens income eligibility restrictions, establishes a new asset limitation, and bars families from receiving federal rental housing assistance if they own a residence. The purpose 

is to free up vouchers or public or assisted housing units for families more in need financially. 

The bill for the first time creates a new asset limitation for both 

initial and ongoing rental assistance eligibility, by prohibiting any 

family from having more than $100,000 in net assets. To encourage 

self-sufficiency, the bill excludes from this asset calculation homeownership equity accounts and family self-sufficiency accounts, and 

retirement and education savings accounts. Personal property that 

is not of significant value is also excluded. To limit the administrative burden of this new limitation, the bill permits PHAs to rely on 

self-certification of assets by the assisted family. 

The bill for the first time prohibits families from receiving federal assistance if they own a residence suitable for occupancy. Exempted from this prohibition are homes paid for by federal rental 

housing assistance, victims of domestic violence, and families making a good faith effort to sell a property (to protect, for example, 

a tenant who inherits a property with limited equity). 

The bill also extends the eligibility requirement that families be 

‘‘low income’’ [i.e., below 80 percent of local area median income] 

to apply also at the time of each annual recertification. However, 

the bill retains existing income limitations for enhanced vouchers 

(where the owner leaves certain federally assisted housing programs) and protects families in properties initially permitted to 

have incomes up to 95 percent of median income by letting them 

to continue to live in such housing as long as they comply with this 

income limitation. 

PHAs may elect not to enforce asset and income limits for public 

housing residents at recertification, and owners may elect not to 

enforce income limits at recertification. PHAs and owners may also 

delay eviction or termination of families not meeting the asset, residence or income limitations for a period of up to six months, in 

order to give tenants an opportunity to find another place to live, 

and to address situations where a family’s assets or income briefly 

exceed the limit, but fall back shortly thereafter to permitted eligibility levels. 

TENANT PROTECTIONS

The bill includes a number of provisions to protect families receiving public and assisted housing assistance. The bill requires 

HUD to monitor voucher rent burdens and submit an annual report to Congress on the percentage of families nationwide paying 

more than 30 percent and 40 percent, respectively, of their net income for rent, as well as information on the degree to which voucher families are clustered in lower rent, higher poverty areas, and 

the extent to which greater geographic distribution of families 

could be achieved, including by raising payment standards. 

The bill also requires PHAs to make public information on local 

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ing more than 30 percent or 40 percent of income for rent exceeds 

the national average, the PHA must either raise the payment 

standard or explain its reasons for not doing so. It is expected that 

PHAs would make this decision taking into account a wide range 

of factors affecting rent burdens, and would also take into account 

other factors, including the availability of funds and other program 

goals such as serving additional voucher families. It is expected 

that numerical percentage calculations of rent burden under this 

section would not count families paying a minimum rent, as rents 

paid by such families are unrelated to the payment standard. 

HUD is required to approve requests of agencies to raise payment standards in such circumstances, up to 120 percent of the 

Fair Market Rent (FMR). (HUD’s existing statutory authority to 

approve higher payment standards is not affected). In addition, 

PHAs are permitted (without HUD approval) to increase payment 

standards up to 120 percent of the FMR, and HUD may approve 

higher requests, as a reasonable accommodation for a person with 

a disability. 

To provide for more accurate rent setting, the bill requires HUD 

to establish FMR areas in the smallest areas for which reliable 

data is available. This is possible because of the availability of better local rent data under the American Community Survey, which 

should make it feasible for HUD to implement this new requirement no later than Fiscal year 2009. Setting smaller FMR areas 

should create more accurate rent levels, thus avoiding rent levels 

that are too high in the lower cost areas of a larger area and avoiding rent levels that are too low in the higher cost areas. Areas are 

protected against FMR reductions resulting from this provision 

that result from a change in the percentile of distribution of rents 

used to establish the FMR, and tenants are protected against reductions in payment standards resulting from these changes. 

The bill protects tenants from unfairly being denied federal rental housing assistance, by limiting a PHA’s elective screening of 

voucher program applicants to an applicant’s ability to fulfill the 

obligations of the lease, including a consideration of any mitigating 

circumstances. Applicants are required to be notified of the basis 

of any determination of ineligibility, and are to be given an informal hearing to present mitigating circumstances in such case. The 

bill also incorporates into statute current regulatory requirements 

for informal hearings when a PHA proposes to terminate voucher 

assistance. 

The bill protects voucher tenants living rental units in need of 

repair by requiring PHAs to withhold assistance to any property 

assisting a voucher holder that fails an inspection and which is not 

corrected within 90 days, by permitting PHAs to use such withheld 

assistance to make repairs of such properties, and by prohibiting 

voucher holders from being evicted because of any such withholding of assistance. This provision is not intended in any way to 

reduce the obligation of owners to maintain properties and to fix 

life-threatening defects within 24 hours, but merely to augment options for ensuring that units are properly maintained. 

The bill protects families who receive enhanced vouchers in the 

case of a property prepayment or opt-out who have had their family 

size reduced, by preventing their eviction when their units are larger than program rules permit for their family size. However, to inVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00039 Fmt 6659 Sfmt 6602 E:\HR\OC\HR216.XXX HR216

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crease housing opportunities for larger families, the bill provides 

that such tenants may be forced to move to units of appropriate 

size located on the premises. 

PHA VOUCHER PERFORMANCE ASSESSMENTS

Currently HUD, by administrative action, assesses PHAs on 

their performance in administering the housing voucher program. 

The bill creates a statutory requirement for HUD to assess such 

PHA voucher administrative performance—and establishes the following factors to measure such performance: the quality of units 

assisted; the extent of utilization of allocated funds and authorized 

vouchers; the timeliness and accuracy of reporting to HUD; effectiveness in carrying out policies to achieve deconcentration of poverty; the reasonableness of rent burdens; accurate rent calculations 

and subsidy payments; effectiveness in carrying out family self-sufficiency activities; timeliness of actions related to landlord participation; and such other factors as the HUD Secretary considers appropriate. 

As with current Section 8 voucher performance assessments 

under SEMAP, it is expected that the assessments required under 

the bill would be made annually. 

HEARINGS

The Subcommittee on Housing and Community Opportunity held 

a hearing on March 9, 2007, on ‘‘The Section 8 Voucher Reform 

Act’’. The following witnesses testified: 

PANEL ONE

• The Honorable Orlando J. Cabrera, Assistant Secretary, 

Public and Indian Housing, U.S. Department of Housing and 

Urban Development 

PANEL TWO

• Mr. Saul N. Ramirez, Executive Director, National Association of Housing and Redevelopment Officials 

• Mr. Curt Hiebert, Executive Director, Keene, New Hampshire, Authority, on behalf of Public Housing Authorities Directors Association 

• Ms. Sunia Zaterman, Executive Director, Council of Large 

Public Housing Authorities 

• Mr. John E. Day, President DuPage Housing Authority 

• Mr. Richard Godfrey, Executive Director, Rhode Island 

Housing 

PANEL THREE

• Ms. Sheila Crowley, President, National Low Income 

Housing Coalition 

• Ms. Barbara Sard, Director of Housing Policy, Center on 

Budget and Policy Priorities 

• Ms. Janet Charlton, President, Triton Advisors, on behalf 

of National Leased Housing Association and National Multi 

Housing Council 


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• Mr. Andrew Sperling, Director of Government Relations, 

National Association for the Mentally Ill Consortium of Citizens with Disabilities • Mr. Phil Tegeler, Poverty & Race Research Action Council 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

May 23, 2007, and on May 24, 2007, ordered H.R. 1851, the Section 

8 Voucher Reform Act of 2007, as amended, favorably reported to 

the House by a record vote of 52 yeas and 9 nays. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. A motion by Mr. 

Frank to report the bill, as amended, to the House with a favorable 

recommendation was agreed to by a record vote of 52 yeas and 9 

nays (Record vote no. FC–51). The names of Members voting for 

and against follow: 

RECORD VOTE NO. FC–51 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Frank .............................. X ........... ............. Mr. Bachus ........................... X ........... .............

Mr. Kanjorski ......................... ........... ........... ............. Mr. Baker ............................. ........... ........... .............

Ms. Waters ............................ X ........... ............. Ms. Pryce (OH) ..................... X ........... .............

Mrs. Maloney ......................... X ........... ............. Mr. Castle ............................ X ........... .............

Mr. Gutierrez ......................... ........... ........... ............. Mr. King (NY) ....................... X ........... .............

Ms. Vela ́zquez ....................... X ........... ............. Mr. Royce ............................. ........... X .............

Mr. Watt ................................ X ........... ............. Mr. Lucas ............................. X ........... .............

Mr. Ackerman ........................ X ........... ............. Mr. Paul ............................... ........... X .............

Ms. Carson ............................ X ........... ............. Mr. Gillmor ........................... X ........... .............

Mr. Sherman ......................... X ........... ............. Mr. LaTourette ...................... X ........... .............

Mr. Meeks ............................. X ........... ............. Mr. Manzullo ........................ ........... X .............

Mr. Moore (KS) ...................... X ........... ............. Mr. Jones .............................. X ........... .............

Mr. Capuano ......................... ........... ........... ............. Mrs. Biggert ......................... X ........... .............

Mr. Hinojosa .......................... X ........... ............. Mr. Shays ............................. X ........... .............

Mr. Clay ................................ X ........... ............. Mr. Miller (CA) ..................... X ........... .............

Mrs. McCarthy ....................... X ........... ............. Mrs. Capito .......................... X ........... .............

Mr. Baca ............................... X ........... ............. Mr. Feeney ............................ ........... X .............

Mr. Lynch .............................. X ........... ............. Mr. Hensarling ..................... ........... X .............

Mr. Miller (NC) ...................... X ........... ............. Mr. Garrett (NJ) .................... ........... X .............

Mr. Scott ............................... X ........... ............. Ms. Brown-Waite) ................. X ........... .............

Mr. Green .............................. ........... ........... ............. Mr. Barrett (SC) ................... ........... X .............

Mr. Cleaver ........................... X ........... ............. Mr. Gerlach .......................... X ........... .............

Ms. Bean ............................... ........... ........... ............. Mr. Pearce ............................ X ........... .............

Ms. Moore (WI) ...................... X ........... ............. Mr. Neugebauer .................... X ........... .............

Mr. Davis (TN) ...................... X ........... ............. Mr. Price (GA) ...................... ........... ........... .............

Mr. Sires ............................... X ........... ............. Mr. Davis (KY) ...................... X ........... .............

Mr. Hodes .............................. X ........... ............. Mr. McHenry ......................... ........... ........... .............

Mr. Ellison ............................. ........... ........... ............. Mr. Campbell ....................... ........... X .............

Mr. Klein ............................... X ........... ............. Mr. Putnam .......................... ........... X .............

Mr. Mahoney (FL) .................. X ........... ............. Mrs. Bachmann .................... X ........... .............

Mr. Wilson ............................. X ........... ............. Mr. Roskam .......................... X ........... .............

Mr. Perlmutter ....................... X ........... ............. Mr. Marchant ....................... X ........... .............

Mr. Murphy ............................ X ........... ............. Mr. McCotter ........................ X ........... .............

Mr. Donnelly .......................... X ........... .............

Mr. Wexler ............................. X ........... .............

Mr. Marshall ......................... X ........... .............

Mr. Boren .............................. X ........... .............


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The following amendments were disposed of by record votes. The 

names of Members voting for and against follow: 

An amendment by Mr. Royce, No. 4, limiting authority to require 

documents in languages other than English, was not agreed to by 

a record vote of 27 yeas and 34 nays (Record vote FC–48): 

RECORD VOTE NO. FC–48 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Frank .............................. ........... X ............. Mr. Bachus ........................... X ........... .............

Mr. Kanjorski ......................... ........... ........... ............. Mr. Baker ............................. X ........... .............

Ms. Waters ............................ ........... X ............. Ms. Pryce (OH) ..................... ........... ........... .............

Mrs. Maloney ......................... ........... X ............. Mr. Castle ............................ X ........... .............

Mr. Gutierrez ......................... ........... X ............. Mr. King (NY) ....................... X ........... .............

Ms. Vela ́zquez ....................... ........... X ............. Mr. Royce ............................. X ........... .............

Mr. Watt ................................ ........... X ............. Mr. Lucas ............................. X ........... .............

Mr. Ackerman ........................ ........... X ............. Mr. Paul ............................... X ........... .............

Ms. Carson ............................ ........... X ............. Mr. Gillmor ........................... ........... X .............

Mr. Sherman ......................... ........... X ............. Mr. LaTourette ...................... X ........... .............

Mr. Meeks ............................. ........... X ............. Mr. Manzullo ........................ X ........... .............

Mr. Moore (KS) ...................... ........... X ............. Mr. Jones .............................. ........... ........... .............

Mr. Capuano ......................... ........... ........... ............. Mrs. Biggert ......................... X ........... .............

Mr. Hinojosa .......................... ........... X ............. Mr. Shays ............................. ........... ........... .............

Mr. Clay ................................ ........... X ............. Mr. Miller (CA) ..................... X ........... .............

Mrs. McCarthy ....................... ........... X ............. Mrs. Capito .......................... X ........... .............

Mr. Baca ............................... ........... X ............. Mr. Feeney ............................ ........... ........... .............

Mr. Lynch .............................. ........... X ............. Mr. Hensarling ..................... X ........... .............

Mr. Miller (NC) ...................... ........... X ............. Mr. Garrett (NJ) .................... X ........... .............

Mr. Scott ............................... ........... X ............. Ms. Brown-Waite .................. X ........... .............

Mr. Green .............................. ........... X ............. Mr. Barrett (SC) ................... X ........... .............

Mr. Cleaver ........................... ........... X ............. Mr. Gerlach .......................... X ........... .............

Ms. Bean ............................... ........... X ............. Mr. Pearce ............................ X ........... .............

Ms. Moore (WI) ...................... ........... X ............. Mr. Neugebauer .................... X ........... .............

Mr. Davis (TN) ...................... ........... X ............. Mr. Price (GA) ...................... ........... ........... .............

Mr. Sires ............................... ........... X ............. Mr. Davis (KY) ...................... X ........... .............

Mr. Hodes .............................. ........... X ............. Mr. McHenry ......................... X ........... .............

Mr. Ellison ............................. ........... X ............. Mr. Campbell ....................... X ........... .............

Mr. Klein ............................... ........... X ............. Mr. Putnam .......................... X ........... .............

Mr. Mahoney (FL) .................. ........... X ............. Mrs. Bachmann .................... X ........... .............

Mr. Wilson ............................. ........... X ............. Mr. Roskam .......................... X ........... .............

Mr. Perlmutter ....................... ........... X ............. Mr. Marchant ....................... X ........... .............

Mr. Murphy ............................ ........... X ............. Mr. McCotter ........................ X ........... .............

Mr. Donnelly .......................... ........... X .............

Mr. Wexler ............................. ........... ........... .............

Mr. Marshall ......................... ........... ........... .............

Mr. Boren .............................. ........... X .............

An amendment by Mr. Price (GA), No. 6, regarding the requirement of offsets, was not agreed to by a record vote of 28 yeas and 

35 nays (Record vote FC–49): 

RECORD VOTE NO. FC–49 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Frank .............................. ........... X ............. Mr. Bachus ........................... X ........... .............

Mr. Kanjorski ......................... ........... ........... ............. Mr. Baker ............................. X ........... .............

Ms. Waters ............................ ........... X ............. Ms. Pryce (OH) ..................... X ........... .............

Mrs. Maloney ......................... ........... X ............. Mr. Castle ............................ X ........... .............

Mr. Gutierrez ......................... ........... X ............. Mr. King (NY) ....................... X ........... .............

Ms. Vela ́zquez ....................... ........... X ............. Mr. Royce ............................. X ........... .............

Mr. Watt ................................ ........... X ............. Mr. Lucas ............................. X ........... .............

Mr. Ackerman ........................ ........... X ............. Mr. Paul ............................... X ........... .............

Ms. Carson ............................ ........... X ............. Mr. Gillmor ........................... X ........... .............

Mr. Sherman ......................... ........... X ............. Mr. LaTourette ...................... X ........... .............

Mr. Meeks ............................. ........... X ............. Mr. Manzullo ........................ X ........... .............


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RECORD VOTE NO. FC–49—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Moore (KS) ...................... ........... X ............. Mr. Jones .............................. ........... ........... .............

Mr. Capuano ......................... ........... ........... ............. Mrs. Biggert ......................... ........... X .............

Mr. Hinojosa .......................... ........... X ............. Mr. Shays ............................. ........... ........... .............

Mr. Clay ................................ ........... X ............. Mr. Miller (CA) ..................... X ........... .............

Mrs. McCarthy ....................... ........... X ............. Mrs. Capito .......................... X ........... .............

Mr. Baca ............................... ........... X ............. Mr. Feeney ............................ X ........... .............

Mr. Lynch .............................. ........... X ............. Mr. Hensarling ..................... X ........... .............

Mr. Miller (NC) ...................... ........... X ............. Mr. Garrett (NJ) .................... X ........... .............

Mr. Scott ............................... ........... X ............. Ms. Brown-Waite .................. X ........... .............

Mr. Green .............................. ........... X ............. Mr. Barrett (SC) ................... X ........... .............

Mr. Cleaver ........................... ........... X ............. Mr. Gerlach .......................... X ........... .............

Ms. Bean ............................... ........... X ............. Mr. Pearce ............................ X ........... .............

Ms. Moore (WI) ...................... ........... X ............. Mr. Neugebauer .................... X ........... .............

Mr. Davis (TN) ...................... ........... X ............. Mr. Price (GA) ...................... ........... ........... .............

Mr. Sires ............................... ........... X ............. Mr. Davis (KY) ...................... X ........... .............

Mr. Hodes .............................. ........... X ............. Mr. McHenry ......................... ........... ........... .............

Mr. Ellison ............................. ........... X ............. Mr. Campbell ....................... X ........... .............

Mr. Klein ............................... ........... X ............. Mr. Putnam .......................... X ........... .............

Mr. Mahoney (FL) .................. ........... X ............. Mrs. Bachmann .................... X ........... .............

Mr. Wilson ............................. ........... X ............. Mr. Roskam .......................... X ........... .............

Mr. Perlmutter ....................... ........... X ............. Mr. Marchant ....................... X ........... .............

Mr. Murphy ............................ ........... X ............. Mr. McCotter ........................ X ........... .............

Mr. Donnelly .......................... ........... X .............

Mr. Wexler ............................. ........... ........... .............

Mr. Marshall ......................... ........... X .............

Mr. Boren .............................. ........... X .............

An amendment by Mr. Hensarling, No. 9, imposing work requirements, was not agreed to by a record vote of 28 yeas and 35 nays 

(Record vote FC–50): 

RECORD VOTE NO. FC–50 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Frank .............................. ........... X ............. Mr. Bachus ........................... ........... X .............

Mr. Kanjorski ......................... ........... ........... ............. Mr. Baker ............................. X ........... .............

Ms. Waters ............................ ........... X ............. Ms. Pryce (OH) ..................... X ........... .............

Mrs. Maloney ......................... ........... X ............. Mr. Castle ............................ X ........... .............

Mr. Gutierrez ......................... ........... X ............. Mr. King (NY) ....................... X ........... .............

Ms. Vela ́zquez ....................... ........... X ............. Mr. Royce ............................. X ........... .............

Mr. Watt ................................ ........... X ............. Mr. Lucas ............................. X ........... .............

Mr. Ackerman ........................ ........... X ............. Mr. Paul ............................... ........... X .............

Ms. Carson ............................ ........... X ............. Mr. Gillmor ........................... X ........... .............

Mr. Sherman ......................... ........... X ............. Mr. LaTourette ...................... ........... X .............

Mr. Meeks ............................. ........... X ............. Mr. Manzullo ........................ X ........... .............

Mr. Moore (KS) ...................... ........... X ............. Mr. Jones .............................. ........... ........... .............

Mr. Capuano ......................... ........... ........... ............. Mrs. Biggert ......................... ........... X .............

Mr. Hinojosa .......................... ........... X ............. Mr. Shays ............................. ........... ........... .............

Mr. Clay ................................ ........... X ............. Mr. Miller (CA) ..................... X ........... .............

Mrs. McCarthy ....................... ........... X ............. Mrs. Capito .......................... X ........... .............

Mr. Baca ............................... ........... X ............. Mr. Feeney ............................ ........... ........... .............

Mr. Lynch .............................. ........... X ............. Mr. Hensarling ..................... X ........... .............

Mr. Miller (NC) ...................... ........... X ............. Mr. Garrett (NJ) .................... X ........... .............

Mr. Scott ............................... ........... X ............. Ms. Brown-Waite) ................. X ........... .............

Mr. Green .............................. ........... X ............. Mr. Barrett (SC) ................... X ........... .............

Mr. Cleaver ........................... ........... X ............. Mr. Gerlach .......................... X ........... .............

Ms. Bean ............................... ........... X ............. Mr. Pearce ............................ X ........... .............

Ms. Moore (WI) ...................... ........... X ............. Mr. Neugebauer .................... X ........... .............

Mr. Davis (TN) ...................... ........... X ............. Mr. Price (GA) ...................... ........... ........... .............

Mr. Sires ............................... ........... X ............. Mr. Davis (KY) ...................... X ........... .............

Mr. Hodes .............................. ........... X ............. Mr. McHenry ......................... X ........... .............

Mr. Ellison ............................. ........... X ............. Mr. Campbell ....................... X ........... .............

Mr. Klein ............................... ........... X ............. Mr. Putnam .......................... X ........... .............


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RECORD VOTE NO. FC–50—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Mahoney (FL) .................. ........... X ............. Mrs. Bachmann .................... X ........... .............

Mr. Wilson ............................. ........... X ............. Mr. Roskam .......................... X ........... .............

Mr. Perlmutter ....................... ........... X ............. Mr. Marchant ....................... X ........... .............

Mr. Murphy ............................ ........... X ............. Mr. McCotter ........................ X ........... .............

Mr. Donnelly .......................... ........... X .............

Mr. Wexler ............................. ........... ........... .............

Mr. Marshall ......................... X ........... .............

Mr. Boren .............................. X ........... .............

The following other amendments were also considered by the 

Committee: 

An amendment by Ms. Waters, No. 1, manager’s amendment, 

was agreed to by a voice vote. 

An amendment by Mr. Murphy, No. 2, regarding educational savings accounts, was agreed to by a voice vote. 

An amendment by Mr. Green, No. 3, authorizing appropriations, 

was agreed to, as amended, by a voice vote. 

An amendment by Mr. Bachus to the amendment by Mr. Green, 

No. 3a, a second degree amendment regarding incremental housing 

units, was agreed to, as modified by unanimous consent, by a voice 

vote. 

An amendment by Mr. Capuano, No. 5, on enhanced vouchers, 

was agreed to by a voice vote. 

An amendment by Mr. Lynch, No. 7, regarding rent burdens, was 

agreed to by a voice vote. 

An amendment by Mr. Watt, No. 8, on screening of applicants, 

was agreed to by a voice vote. 

An amendment by Ms. Moore (WI), No. 10, on demonstration 

program waiver authority, was agreed to by a voice vote. 

An amendment by Mr. Green, No. 11, on contract extension, was 

agreed to by a voice vote. 

An amendment by Mr. Lynch, No. 12, protecting tenants with 95 

percent of median income, was agreed to by a voice vote. 

An amendment by Mr. Miller (CA), No. 13, on rent reform, was 

offered and withdrawn. 

An amendment by Mr. Miller (CA), No. 14, on time limitation on 

assistance, was not agreed to by a voice vote. 

An amendment by Ms. Waters, No. 15, on enforcement of housing quality standards, was agreed to by a voice vote. 

An amendment by Ms. Waters, No. 16, regarding the housing innovation program, was agreed to, as amended, by a voice vote. 

An amendment by Mr. Miller (CA), to the amendment by Ms. 

Waters, No. 16a, a second degree amendment increasing the number of public housing agencies, was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held hearings and made 

findings that are reflected in this report. 


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PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

The purpose of H.R. 1851, the ‘‘Section 8 Voucher Reform Act of 

2007,’’ is to authorize a reliable funding allocation formula for annual renewal of Section 8 housing vouchers, to simplify rent calculation and inspection requirements for Section 8 vouchers, 

project-based assistance, and public housing, and to promote selfsufficiency on the part of assisted families through work incentives 

and homeownership opportunities. The bill also expands and renames the ‘‘Moving to Work’’ program, in which public housing 

agencies undertake innovative housing proposals, with the purpose 

of identifying models and policies that might be extended to all 

housing agencies. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, June 22, 2007. 

Hon. BARNEY FRANK, Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1851, the Section 8 

Voucher Reform Act of 2007. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Chad Chirico. 

Sincerely, 

PETER R. ORSZAG, 

Director. 

Enclosure. 


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46 

H.R. 1851—Section 8 Voucher Reform Act of 2007 

Summary: H.R. 1851 would amend the United States Housing 

Act of 1937 to change certain aspects of the Department of Housing 

and Urban Development’s (HUD’s) rental assistance programs. 

The bill would alter calculations of income, tenant rent, and public housing authority (PHA) funding, change requirements for the 

inspection of housing units, and adjust requirements for the targeting of housing assistance. 

CBO estimates that implementing this legislation would have a 

net cost of $2.4 billion over the 2008–2012 period, assuming appropriation of the necessary amounts. 

H.R. 1851 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

The bill would benefit state, local, and tribal governments and any 

costs they incur would result from complying with conditions of federal assistance. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 1851 is shown in the following table. The costs 

of this legislation fall within budget function 600 (income security). 

ESTIMATED BUDGETARY IMPACT OF H.R. 1851 

By fiscal year, in millions of dollars—

2008 2009 2010 2011 2012 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Income Determination Changes: 

Earned Income Disregard: 

Estimated Authorization Level .................................................... 329 331 334 336 338 

Estimated Outlays ....................................................................... 197 330 333 335 337 

Eliminate Imputed Return on Assets: 

Estimated Authorization Level .................................................... 15 15 16 16 16 

Estimated Outlays ....................................................................... 9 15 16 16 16 

Changes to Allowances: 

Eliminate Child Care Allowance: 

Estimated Authorization Level .................................................... ¥194 ¥199 ¥204 ¥209 ¥214 

Estimated Outlays ....................................................................... ¥117 ¥197 ¥202 ¥207 ¥212 

Increase Dependent Allowance: 

Estimated Authorization Level .................................................... 24 24 24 54 54 

Estimated Outlays ....................................................................... 14 24 24 42 54 

Decrease Medical Expense Allowance: 

Estimated Authorization Level .................................................... ¥192 ¥203 ¥213 ¥225 ¥236 

Estimated Outlays ....................................................................... ¥115 ¥198 ¥209 ¥220 ¥231 

Increase Elderly and Disabled Allowance: 

Estimated Authorization Level .................................................... 223 223 241 241 258 

Estimated Outlays ....................................................................... 134 223 234 241 251 

Eligibility and Targeting Changes: 

Income Eligibility: 

Estimated Authorization Level .................................................... 9 17 18 19 19 

Estimated Outlays ....................................................................... 5 14 18 18 19 

Asset Eligibility: 

Estimated Authorization Level .................................................... 2 4 4 4 5 

Estimated Outlays ....................................................................... 1 3 4 4 5 

Targeting: 

Estimated Authorization Level .................................................... ¥91 ¥187 ¥289 ¥298 ¥307 

Estimated Outlays ....................................................................... ¥54 ¥148 ¥248 ¥294 ¥303 

Other Provisions: 

Tenant Protection Vouchers: 

Estimated Authorization Level .................................................... 9 9 10 10 10 

Estimated Outlays ....................................................................... 5 9 10 10 10 

Program Evaluations: 

Estimated Authorization Level .................................................... 25 0 0 0 0 

Estimated Outlays ....................................................................... 2 10 1 1 1 


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ESTIMATED BUDGETARY IMPACT OF H.R. 1851—Continued 

By fiscal year, in millions of dollars—

2008 2009 2010 2011 2012 

Rent Burdens: 

Estimated Authorization Level .................................................... 0 41 46 50 55 

Estimated Outlays ....................................................................... 0 12 42 47 51 

Resident Technical Assistance: 

Estimated Authorization Level .................................................... 10 10 10 10 10 

Estimated Outlays ....................................................................... 2 10 10 10 10 

Incremental Vouchers: 

Estimated Authorization Level .................................................... 139 286 439 601 770 

Estimated Outlays ....................................................................... 122 267 420 580 749 

Interactions Among Provisions: 

Estimated Authorization Level ............................................................. ¥4 ¥4 ¥4 ¥4 ¥4 

Estimated Outlays ................................................................................ ¥2 ¥4 ¥4 ¥4 ¥4 

Total Changes:.

Estimated Authorization Level ........................................... 304 369 430 604 773 

Estimated Outlays .............................................................. 204 371 448 579 752 

Basis of estimate: Implementing H.R. 1851 would lead to a net 

increase in discretionary spending for housing assistance, primarily 

by increasing the number of tenant-based vouchers eligible for federal assistance, reducing the amount of income that is counted in 

determining eligibility for such assistance, and increasing allowable 

deductions for the elderly and disabled. The increase in costs for 

those provisions (along with other smaller increases) would be partially offset by savings for other program changes, leading to an estimated net increase in cost of $2.4 billion over the 2008–2012 period. All such changes would be subject to appropriation actions. 

Background 

Over 4.5 million households receive assistance through HUD’s 

various rental assistance programs, including the Section 8 Housing Choice Voucher program, public housing, and other projectbased subsidy programs. To be eligible for assistance, family income must be below either 50 percent or 80 percent of the area median income, depending on the program. Targeting requirements in 

each of the programs establish a minimum percentage of assisted 

families who must be below 30 percent of the area median income. 

Assisted tenants generally pay 30 percent of their adjusted monthly income towards rent. Funding from HUD covers the difference 

between what the tenant pays and the full rent for the unit (up to 

certain limits). In the case of public housing, HUD provides PHAs 

with operating and capital funding that allows them to subsidize 

rents. 

Families participating in HUD’s rental assistance programs have 

their incomes certified when they enter the program and at least 

annually thereafter. Current law allows various adjustments to income prior to calculating a family’s rent payment. Families may deduct any medical expenses over 3 percent of income and all child 

care expenses. In addition, households may deduct $400 from gross 

income if they include an elderly or disabled member, and all 

households may deduct $480 for each dependent. As a result of 

these various deductions, the average adjusted income is approximately 10 percent lower than the average gross income. In 2006, 

the average family rent payment was about $260 per month and 

the average subsidy payment was about $530 per month. 


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48 

For this estimate, CBO assumes the bill will be enacted near the 

end of fiscal year 2007. In cases where the tenant rent contribution 

changes, CBO assumes that appropriations will be adjusted to reflect the costs of the changes. In addition, CBO assumes that these 

changes would not affect the funding requirements for about 

300,000 public housing or voucher units covered by Moving-to-Work 

agreements because those PHAs are funded pursuant to their 

agreements. 

Income determination changes 

Earned Income Disregard. Section 3 of the bill would define 

earned income as the amount of income earned by a family in the 

prior year less 10 percent of the lower of earnings in the prior year 

or $10,000. Currently, certain tenants in assisted housing may disregard any income earned in the first year of a new job, and half 

of the income earned in the second year. Based on information published by HUD, CBO estimates that over $10 million in income is 

disregarded in this manner each year. Approximately 30 percent of 

tenants in RUD’s rental assistance programs report earned income. The total earned income for those 4 families is about $20 billion 

each year. Changing the amount disregarded to 10 percent of the 

first $10,000 of earned income would reduce income (that is counted for purposes of determining housing assistance) by about $1 billion, and would lower tenant rent contributions by about than $330 

million each year. Assuming appropriation of the necessary 

amounts, CBO estimates that this provision would cost $197 million in 2008 and $1.5 billion over the 2008–2012 period. About half 

of this cost is from the Housing Choice Voucher Program, with the 

other half split roughly evenly between the public housing and 

project based subsidy programs. 

Imputed Return on Assets. Under current law, housing authorities and property owners calculate a tenant’s imputed rate of re- turn on any assets over $5,000 by using an interest rate determined by HUD. If the imputed return on assets is greater than actual income from assets, the imputed return is included in the family’s income total. Section 3 would eliminate the calculation of imputed returns. Based on data provided by HUD, CBO estimates 

that about 6 percent of families (about 260,000) have income from 

assets, half of which include an imputed return on assets. Under 

the bill, asset income counted for determining housing assistance 

would decrease by about $48 million per year. Assuming appropriation of the necessary amounts, CBO estimates that excluding the 

imputed return on assets would cost about $9 million in 2008 and 

$72 million over the 2008–2012 period. 

Changes to allowances 

Child Care Allowance. Families now living in assisted housing 

may deduct any child care expenses necessary to enable a member 

of the family to be employed or attend school. Section 3 would 

eliminate this deduction. Based on data provided by HUD, CBO estimates that about 5 percent of assisted families (about 200,000) 

claim child care allowances of about $3,000 each. Assuming that 

appropriations are reduced accordingly, CBO estimates that eliminating the child care allowance would reduce outlays by $117 million in 2008 and $935 million over the 2008–2012 period. 


cnoel on PRODPC60 with HEARING
49 

Dependent Allowance. Section 3 also would increase the amount that can be deducted for dependents from $480 to $500, and would 

inflate that amount each year, rounded down to the nearest multiple of $25. Based on HUD data, CBO estimates that this allowance is currently claimed for about 4 million dependents. About 8 

percent of families claiming the allowance would not see any additional benefit from the increase because their adjusted incomes are 

already at zero. Assuming appropriation of the necessary amounts, 

CBO estimates that increasing the dependent allowance would cost 

$14 million in 2008 and $158 million over the 2008–2012 period. 

Medical Expense Allowance. Elderly and disabled families currently deduct the amount by which unreimbursed medical expenses 

exceed 3 percent of the family’s income. Based on HUD data for 

2005, adjusted to account for the participation of elderly tenants in 

the Medicare prescription drug program (elderly medical expenses 

were reduced by one-third), CBO estimates that approximately 20 

percent of families claim an average allowance of $1,500 each (for 

a total of over $1 billion). The bill would decrease the amount of 

medical expenses that can be deducted to the amount that exceeds 

10 percent of the family’s income. CBO estimates that this would 

cut the number of families claiming medical expenses and the total 

amount claimed in half. Assuming that appropriations are adjusted 

accordingly, CBO estimates that implementing this provision would 

save $115 million in 2008 and $974 million over the 2008–2012 period. 

Elderly and Disabled Allowance. Section 3 would increase the 

amount that can be deducted by elderly and disabled households 

from $400 to $725, and would inflate that amount each year, 

rounded down to the nearest multiple of$25. Based on data provided by HUD, CBO estimates that this deduction is claimed by 

about half of assisted households. One percent of families claiming 

the allowance would not see any additional benefit from the increase because their adjusted incomes are already at zero. Assuming appropriation of the necessary amounts, CBO estimates that 

increasing the dependent allowance would cost $134 million in 

2008 and $1 billion over the 2008–2012 period. 

Eligibility and targeting changes 

Income Eligibility. Under current law, families with income over 

80 percent of the area median income at their initial certification 

are not eligible for assistance. Eligibility tests are not done after 

the initial certification (incomes are certified each year to determine tenant rent contribution); therefore, a family may have their 

income rise above 80 percent of the area median and continue to 

receive assistance. Section 4 would require families to be below 80 

percent of the median at any annual income certification, but 

would make enforcement of this provision discretionary for families 

living in public housing or project-based units. 

Based on data provided by HUD, CBO estimates that approximately 3,000 families currently receiving assistance (primarily in 

the tenant-based program) would lose their subsidy. Because there 

is unmet demand for participation in HUD’s rental assistance programs, CBO expects that families made ineligible would be replaced by families on housing authority or property owner waiting 

lists. Replacing ineligible families with average families would cost 


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50 

the government an additional $5,400 each (or $450 per month). Assuming appropriation of the necessary amounts, CBO estimates 

that this provision would cost $5 million in 2008 and $74 million 

over the 2008–2012 period. 

Asset Eligibility. Section 4 also would make any family with over $100,000 in assets ineligible for assistance, but would leave the enforcement of this provision up to the discretion of the PHAs for 

families living in public housing. Based on HUD data, CBO estimates that about 5,000 families would become ineligible for assistance. Replacing these families with average families would cost the 

government about $800 each. Assuming appropriation of the necessary amounts, CBO estimates that this provision would cost $1 

million in 2008 and $18 million over the 2008–2012 period. 

Targeting. Currently, at least 75 percent of families initially provided tenant-based assistance must have incomes that do not exceed 30 percent of the area median income. Section 5 would change 

this targeting requirement so that at least 75 percent of families 

initially provided assistance must have incomes that are below the 

higher of the poverty line or 30 percent of the area median income. 

Approximately 76 percent of the tenant-based population have incomes below 30 percent of the area median. Adjusting the targeting 

limit to include the poverty line would increase the number of tenants below the limit to 81 percent. Assuming that housing authorities would issue vouchers in a manner that gradually would move 

the percent of families under the new targeting limit back to the 

current level (i.e., near 75 percent), CBO estimates that approximately 84,000 tenants with incomes over the new targeting limit 

would replace tenants below the limit as vouchers turn over. The 

subsidy for each new family would be about $3,000 lower than the 

families being replaced. Assuming that appropriations are reduced 

accordingly, CBO estimates that the change in voucher targeting 

would save $54 million in 2008 and $1 billion over the 2008–2012 

period. 

Section 5 would make a similar change to the targeting requirements for public housing and project-based vouchers. Currently, at 

least 40 percent of families initially provided assistance through 

these programs must have incomes that do not exceed 30 percent 

of the area median income. The bill would change this targeting requirement so that at least 40 percent of families initially provided 

assistance must have incomes that are below the higher of the poverty line or 30 percent of the area median income. About 75 percent of families in these programs have incomes below 30 percent 

of the area median. CBO does not anticipate any savings from the 

change as housing authorities and property owners could currently 

increase the number of tenants with incomes above 30 percent of 

the area median and still meet the targeting requirements. 

Other provisions 

Tenant Protection Vouchers. Section 6 would require HUD, subject to the availability of appropriations, to issue tenant-protection 

vouchers to replace dwelling units that cease to be available as assisted housing. Currently, HUD only issues tenant-protection 

vouchers for occupied units. Over the past five years, HUD has 

issued an average of 26,000 tenant-protection vouchers each year. 

Based on information provided by HUD, CBO estimates that about 


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51 

1,300 additional vouchers would be issued each year (assuming a 

95 percent occupancy rate for properties losing assistance) at an 

average cost of $6,700. Assuming appropriation of the necessary 

amounts, CBO estimates that this provision would cost $5 million 

in 2008 and $44 million over the 2008–2012 period. 

Program Evaluations. Sections 7 and 16 would authorize the ap- propriation of a total of $25 million to conduct evaluations of the 

Family-Self-Sufficiency (FSS) and Housing Innovation programs. 

Reports to Congress on the FSS program would be due after four 

and eight years. Reports on the Housing Innovation Program, 

which would be the successor to the Moving-to-Work program, 

would be due one year after half of the program’s participants have 

been selected. Assuming appropriation of the authorized amounts, 

CBO estimates that conducting the program evaluations would cost 

$16 million over the 2008–2012 period, with additional amounts 

spent in later years. 

Rent Burdens. Section 12 would direct HUD to monitor rent burdens in the Housing Choice Voucher program and report each year 

on the percentage of families who pay more than 30 percent and 

40 percent of their adjusted incomes for rent. A family may pay 

more than 30 percent of adjusted income if the rent for their unit 

is greater than the voucher’s payment standard. In those instances, 

the PHA will pay the difference between 30 percent of the family’s 

adjusted income and the payment standard, and the family will 

pay the difference between the payment standard and the rent (in 

addition to 30 percent of their adjusted monthly income). PHAs 

that are above the national average in either category would be required to increase their payment standard or explain their reasons 

for not making an adjustment. Under current law, PHAs can set 

payment standards between 90 and 110 percent of the Fair Market 

Rent (FMR) without HUD approval and can set their payment 

standards higher or lower with HUD approval. The FMR typically 

represents the 40th percentile rent in a PHA’s local market. Under 

this provision, PHAs with above-average rent burdens could set 

payment standards up to 120 percent of the FMR without approval 

from HUD. 

Based on HUD data, CBO estimates that nearly one-half of families in the voucher program pay more than 30 percent of their adjusted income for rent and about one in five pay more than 40 percent. Approximately 60 percent of PHAs (administering about 60 

percent of vouchers) have rent burden averages above the national 

average in at least one category and would be required to increase 

payment standards or provide an explanation for not doing so. 

About 17 percent of the vouchers at PHAs with above average rent 

burdens have payment standards at 110 percent of FMR, the current maximum possible without HUD approval. CBO assumes that 

some PHAs with above average rent burdens would increase the 

payment standard beyond 110 percent to reduce rent burdens and 

improve the rate at which families who are issued vouchers succeed 

in finding units to rent and some will decide to not increase the 

payment standard in order to stretch available funding to cover 

more families. CBO estimates that, assuming appropriation of the 

necessary amounts, this provision would increase the payment 

standard for those vouchers at the current maximum by an average 

of 5 percentage points. 


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52 

Increasing the payment standard by 5 percentage points for 

vouchers at the national limit at PHAs with rent burdens above 

the national average would increase the Housing Assistance Payment (HAP) for 47 percent of those units (or about 5 percent of 

total vouchers) by an average of $470 per year. The remaining 53 

percent of the units at those PHAs would not have a HAP change 

because the rent is below the existing payment standard. Because 

PHAs may currently set payment standards up to 110 percent 

without HUD approval, CBO does not estimate a change in authorization levels for vouchers that have payment standards below that 

maximum. 

The estimated changes to payment standards and increases in 

HAP would lower the percent of the program’s families paying 

more than 30 percent of adjusted income for rent by about 1 percentage point (down to 45 percent). In the following years, the majority of PHAs that are currently above the national rent burden 

average would remain above average. CBO estimates that about 2 

percent of PHAs, administering about 2 percent of vouchers, would 

have rent burdens above the national average for the first time in 

the year following the initial payment standard changes. CBO estimates that the payment standards and HAPs for those vouchers 

would change in a manner similar to those that changed in the 

first year. Thereafter, CBO estimates that this provision will not 

significantly change the national average of families paying more 

than 30 percent of income in rent as few PHAs will be newly above 

average each year. 

In addition to increasing the HAP for some existing vouchers, 

CBO estimates that increasing the payment standard above 110 

percent of FMR will also increase the average HAP for the 10 percent of vouchers that turn over each year. The current average payment standard for the units estimated to have a payment standard 

increase is about $860 and the average HAP is $535. After increasing the payment standard by an average of 5 percentage points of 

FMR the new average would be about $900. Assuming a similar 

ratio between payment standard and HAP, CBO estimates that the 

average HAP for turnover vouchers would be about $560, an increase of about $25 per month. 

In total, CBO estimates that, assuming appropriation of the necessary amounts, the rent burden provision would cost $12 million 

in 2009 and $153 million over the 2009–2012 period. 

Resident Technical Assistance. Section 16 would authorize the 

appropriation of $10 million for each of fiscal years 2008 through 

2012 to provide technical assistance to low-income families assisted 

under the Housing Innovation Program. Such assistance is intended to help families participate in a housing authority’s process 

of developing an annual plan. Assuming appropriation of the authorized amounts, CBO estimates that providing resident technical 

assistance would cost $42 million over the 2009–2012 period. 

Incremental Vouchers. Section 18 would authorize the appropriation of such sums as are necessary to assist 20,000 new tenantbased vouchers per year for each of fiscal years 2008 through 2012. 

Based on HUD data, CBO estimates that the average annual cost 

of a tenant-based voucher is currently about $6,700. Assuming appropriation of the necessary amounts and adjusting for projected 

changes in rents and tenant incomes, CBO estimates that increasVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00052 Fmt 6659 Sfmt 6602 E:\HR\OC\HR216.XXX HR216

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ing the total number of vouchers by 100,000 by 2012 would cost 

$2.1 billion over the 2008–2012 period. 

Interactions among provisions 

The overall increase in estimated costs of H.R. 1851 is slightly 

less than the sum of the individual provisions because some of 

those provisions interact. For example, making families with assets 

over $100,000 ineligible would reduce the number of families with 

incomes that include an imputed return on assets. On balance, the 

interactions among the provisions of H.R. 1851 would reduce outlays by $18 million over the 2008–2012 period, assuming appropriation actions consistent with the bill’s provisions. 

Intergovernmental and private-sector impact: H.R. 1851 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. State, local, and tribal governments would benefit from 

housing assistance activities authorized in the bill. Any costs those 

governments incur to comply with grant requirements would result 

from conditions of federal assistance. 

Estimate prepared by: Federal Costs: Chad Chirico; Impact on 

State, Local, and Tribal Governments: Lisa Ramirez-Branum; Impact on the Private Sector: Page Shevlin. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional 

Authority of Congress to enact this legislation is provided by Article 1, section 8, clause 1 (relating to the general welfare of the 

United States) and clause 3 (relating to the power to regulate interstate commerce). 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 1851 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 


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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Short title identifying the bill as the ‘‘Section 8 Voucher Reform 

Act of 2007.’’

Section 2. Inspection of dwelling units 

Makes a number of changes to the inspection and re-inspection 

requirements for rental housing units that serve Section 8 voucher 

holders. Retains the initial inspection requirement, except permits 

occupancy and payments to be made for up to 30 days if a unit fails 

inspection as a result only of non-life threatening conditions. In 

such case, payments must be suspended after 30 days if the deficiencies are not corrected. Also allows a PHA to permit occupancy 

prior to inspection if another federal program inspection meeting 

federal Housing Quality Standards (HQS) has been made within 

the preceding 12 months, and to make payments to the owner retroactive to the beginning of the lease term when an inspection is 

subsequently completed. 

Changes the annual re-inspection requirement to a requirement 

that properties be re-inspected at least every two years. Permits 

use of inspections under a federal, state, or local housing assistance 

program in lieu of a public housing agency (PHA) voucher re-inspection, providing the PHA certifies such inspection provides comparable standards to federal HQS. Requires PHAs to withhold assistance to any property assisting a voucher holder that fails an inspection and which is not corrected within 90 days, permits PHAs 

to use such withheld assistance to make repairs of such properties, 

and prohibits voucher holders from being evicted because of any 

such withholding of assistance. 

Section 3. Rent reform and income reviews 

Recertification. Modifies annual certification requirement for the 

Section 8 voucher program and project-based assistance and for 

public housing to permit PHAs to recertify ‘‘fixed income’’ families 

(those with more than 90 percent of income from a combination of 

Social Security, SSI, governmental and private pensions, and similar periodic payments) only every three years. Provides for interim 

recertifications only if unearned annual income increases by $1,500 

or if a family requests a recertification if its income falls by $1,500 

or more (or such lesser amount as the PHA may establish). 

Simplification. Includes a number of provisions to simplify the 

rent calculation process for the Section 8 voucher program and 

project-based assistance and for public housing. Raises the standard deduction for elderly and disabled families from $400 to $725 

a year, raises the standard deduction for dependents from $480 to 

$500 a year, and indexes both amounts in subsequent years for inflation, in $25 increments. Eliminates income deductions for child 

care expenses, and child and spousal support. Raises the threshold 

for calculating medical and handicapped assistance expense deductions from counting such expenses over 3 percent to counting such 

expenses over 10 percent of net income. 

Contains administrative simplification provisions—including relieving PHAs of responsibility to maintain records of HUD-required 

miscellaneous income exclusions, use of a HUD-prescribed inflation 


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adjustment for fixed income families, permitting PHA safe harbor 

reliance on other governmental income determinations (e.g., Medicaid, TANF), and permitting PHAs to make other appropriate adjustments when using prior year’s calculations of other types of income. 

Work and Education Incentives: Requires use of a family’s prior 

year’s earned income. Also exempts 10 percent of the first $10,000 

of such earned income. Exempts income of minors (except for heads 

of households or their spouses) and of adult dependents that are 

full time students, and exempts grant-in-aid or scholarship 

amounts used for tuition or books. Exempts income from Coverdell 

education accounts and Section 529 qualified tuition programs. 

Impact on Public Housing Revenues. Requires HUD to make public housing operating funding formula adjustments to reflect non de 

minimus reductions in individual PHA’s rental income arising from 

rent reforms, during the period that revenue is frozen under the 

asset management rule. Also requires HUD to submit to Congress, 

for both Fiscal Years 2008 and 2009, a report identifying and calculating the impact of rent reforms on public housing costs and revenues. 

Section 4. Eligibility for assistance based on assets and income 

Creates a new asset limit and residency ownership prohibition, 

for both initial eligibility and for ongoing annual recertification, for 

voucher, public housing, and Section 8 project-based assistance. 

The provision prohibits any family from having either (a) more 

than $100,000 in net assets or (b) an ownership in a residence suitable for occupancy. Excludes from this asset limit homeownership 

equity accounts and family self-sufficiency accounts, personal property (except for items of significant value), retirement and education savings account assets, and amounts from certain disability 

lawsuits. Permits a PHA or owner to rely on self-certification of assets by the assisted family. Excludes from the residence provision 

homes paid for by assistance under the 1937 Housing Act, victims 

of domestic violence, and families making a good faith effort to sell 

a property. PHAs may elect not to enforce limits for public housing 

residents at recertification, and PHAs and project-based owners 

may delay eviction or termination of families not meeting asset and 

residence restrictions for up to six months. 

Extends the 80 percent of local median income limitation that 

applies to initial occupancy to an annual recertification for continued program eligibility (except that income rules for enhanced 

vouchers are maintained and families initially permitted to have 

incomes up to 95 percent of median income that stay below that 

income level may continue to be assisted). PHAs and owners may 

elect not to enforce this income limitation for residents of public 

housing or project-based Section 8 units, and PHAs and owners 

may delay eviction or termination for up to six months. 

Section 5. Targeting vouchers to low income working families 

Modifies basic income targeting threshold of 30 percent of local 

area median income for Section 8 vouchers, public housing, and 

project-based Section 8 [under which 75 percent of new vouchers 

and 40 percent of new public housing and project-based residents 

must have adjusted incomes below this threshold]. The threshold 


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is modified to be the higher of this 30 percent of local area median 

income calculation or the national poverty level for the appropriate 

family size. This change does not apply to Puerto Rico and other 

federal territories. 

Section 6. Voucher funding renewal 

Authorizes such sums as may be necessary for the period of Fiscal Year 2008 through 2012 for the renewal of expiring Section 8 

vouchers, and for new tenant protection, enhanced vouchers, and 

other special purpose vouchers. Requires HUD to issue tenant protection vouchers [including enhanced vouchers under Section 8(t)] 

for all public and assisted housing units that are lost (not just 

those occupied at time of application for such tenant replacement 

vouchers). 

Provides that the pro rata voucher funding allocation for PHAs 

is recalculated each year, based on a PHA’s leasing and cost data 

from the prior calendar year. Such calculation is adjusted for an 

annual inflation adjustment (based on the smallest geographical 

areas for which data is annually available), and is also adjusted for 

the first time renewal of tenant protection and enhanced vouchers, 

for vouchers set aside for project-based assistance, for vouchers 

ported in the prior year, and for such other adjustments as HUD 

considers appropriate, including adjustments for natural and other 

major disasters. Funding is authorized for ‘‘overleasing’’ (i.e., serving more than a PHA’s number of authorized voucher families), by 

including such overleasing costs in a subsequent year’s funding allocation—except that funding calculations for 2009 may not include 

vouchers in 2008 that were funded by reserves and which exceed 

103 percent of that PHA’s authorized voucher level. Provides for 

proration if overall funding is insufficient to meet nationwide costs. 

HUD is required to allocate all funds by the later of February 15th 

or 45 days after enactment of the appropriations bill funding the 

renewals. 

PHAs are entitled to retain unobligated carryover voucher funds 

equal to one twelfth (8.33 percent) of their annual allocation at the 

end of 2007 and 5 percent in each succeeding year, to be maintained as voucher reserves. If a PHA has reserves of less than 2 

percent, it can receive an advance of up to 2 percent in the last 

three months of a year to cover overages, which it ‘‘repays’’ through 

an offsetting funding reduction in the next year’s funding allocation. At the end of each year, HUD is required to recapture 

amounts in excess of each PHA’s reserve limit. HUD is required to 

make available all such recaptured funds no later than May 1st, 

first for reimbursement for increased costs related to portability 

and family self-sufficiency escrow accounts, and next for reallocation to PHAs for increased voucher leasing, with priority given to 

PHAs based on the extent they have used their funding allocations 

to serve eligible families. 

PHAs are required to absorb ported vouchers from other PHAs, 

with priority to receive funds from the annual reallocation of recaptured excess funds. 

HUD is required to develop and issue guidance to PHAs that received incremental vouchers for non-elderly disabled families between 1997 and 2002 to ensure that such vouchers continue to be 

provided to such families upon voucher turnover. 


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Section 7. Administrative fees 

Re-states the statutory requirement that voucher administrative 

fees shall be based on the number of vouchers in use. Retains the 

Fiscal Year 2003 per unit fee as a baseline, along with subsequent 

annual inflation adjustments using an index of wage data changes 

or other measurable data that reflect such costs of administration. 

Provides that voucher administrative fees also include an amount 

for the cost of issuing new vouchers. 

Provides that voucher administrative fees include an amount for 

Family Self Sufficiency costs, as authorized by Section 23. Fees are 

generally provided based on the number of coordinators employed 

and the number of families being served. Funding shall be provided 

for agencies that received funding for 3 or more self-sufficiency coordinators anytime from FY 1998 to FY 2007. Provides for proration if insufficient funds are appropriated to meet all costs under 

this provision. 

Section 8. Homeownership downpayment program 

Permits voucher funds to be used for a down payment for a firsttime home purchase, as a one-time grant in an amount not exceeding $10,000, for families who have been receiving voucher assistance for a period of at least one year. 

Facilitates use of vouchers for the full cost of purchasing manufactured homes sited on leased land, by permitting voucher funds 

to be used for both the cost of leasing the land, plus monthly home 

purchase costs, including property taxes, insurance, and tenantpaid utilities. 

Section 9. PHA reporting of rent payments to credit reporting agencies 

Authorizes a PHA to submit information regarding rental payment history for voucher tenants to credit reporting agencies, providing the family agrees to such submission. 

Section 10. Performance assessments 

Provides statutory authority and requirements for HUD to assess 

the performance of PHAs in administering their local voucher programs, measuring the following factors: quality of units assisted, 

extent of utilization of allocated funds and authorized vouchers, 

timeliness and accuracy of reporting to HUD, effectiveness in carrying out policies to achieve deconcentration of poverty, reasonableness of rent burdens, accurate rent calculations and subsidy payments, effectiveness in carrying out family self-sufficiency activities, timeliness of actions related to landlord participation, and 

such other factors as the HUD Secretary considers appropriate. 

Section 11. PHA Project-based assistance 

Provides that Section 8 rents shall not be reduced by virtue of 

being used in conjunction with low income housing tax credits. Increases the percentage of vouchers a PHA can project base from 20 

percent to 25 percent, with authority to go 5 percent higher to 

serve homeless persons. Increases the percentage of vouchers that 

can be project-based in any project to the greater of 25 dwelling 

units or 25 percent of the units in a project, with authority to go 

up to 50 percent in areas where vouchers are hard to use. Permits 


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project-based vouchers to be used in cooperative housing, and in 

high rise elevator projects occupied by families with children. Increases the maximum voucher contract term from 10 to 15 years. 

Eliminates requirement for subsidy layering review by HUD for the 

project-basing of vouchers in existing buildings, and whenever a review has already been conducted by an applicable state or local 

agency. Eliminates an environmental review for project-basing of 

vouchers, unless otherwise required by statute or regulation. Clarifies that lease and tenancy provisions pertaining to Section 8 

vouchers shall apply to project-basing of vouchers, except for requirements concerning the minimum lease term. Permits owners 

using project-based vouchers to maintain site-based waiting lists, 

subject to PHA oversight. 

Section 12. Rent burdens 

Requires HUD to monitor voucher rent burdens and submit an 

annual report to Congress on the percentage of families nationwide 

paying more than 30 percent and 40 percent, respectively, of their 

adjusted income for rent. Requires HUD to submit an annual report to Congress on the degree to which voucher families are clustered in lower rent, higher poverty areas, and the extent to which 

greater geographic distribution of families could be achieved, including raising payment standards. 

Requires PHAs to make public information on local rent burdens, 

and, if the local percentage of voucher families paying more than 

30 percent or 40 percent of income for rent exceeds the national average, the PHA must either raise the payment standard or explain 

its reasons for not doing so. HUD is required to approve requests 

of agencies to raise payment standards in such circumstances, up 

to 120 percent of FMR. HUD is also required to approve requests 

by PHAs to increase payment standards up to 120 percent of the 

Fair Market Rent, and HUD may approve higher requests, as a 

reasonable accommodation for a person with a disability. 

Section 13. Establishment of fair market rent 

Generally requires HUD to set geographical areas for the purpose of establishing Fair Market Rents (FMR) in as wide a range 

of communities as is feasible, including requiring separate areas for 

each urban county and metropolitan city with over 40,000 rental 

units. HUD is required to approve requests for contiguous areas 

with similar housing market characteristics with as few as 20,000 

rental units if adequate data exists to establish reliable FMRs. 

Areas are protected against FMR reductions resulting from a 

change in the percentile of distribution of rents used to establish 

the FMR, and tenants are protected against reductions in payment 

standards resulting from these provisions. 

Section 14. Screening of applicants 

Limits a PHA’s elective screening of applicants to an applicant’s 

ability to fulfill the obligations of the lease, including a consideration of any mitigating circumstances. Applicants and current participants are required to be notified of the basis of any determination of ineligibility, and are to be given an informal hearing to 

present mitigating circumstances in such case. 


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Section 15. Enhanced vouchers 

Provides that families may receive enhanced vouchers in the case 

of a property prepayment or opt out even if they reside in oversized 

units except that such tenants may be forced to move to units of 

appropriate size located on the premises. 

Section 16. Housing innovation program 

Renames the ‘‘Moving to Work’’ (MTW) program as the ‘‘Housing 

Innovation Program’’ (HIP). HUD is required to carry out this revised program, under which HUD may designate not more than 60 

PHAs (including all existing MTW agencies approved for continuation). HUD is authorized to designate an additional 20 PHAs [socalled ‘‘HIP-lite’’ agencies] under additional program limitations. 

The program is extended for a 10-year period. 

HUD is required to approve existing MTW agencies [of which 

there are 25] for continued eligibility, provided they are not in default under their agreement and provided HUD determines they 

are meeting their goals and objectives. Such agencies must make 

changes to existing policies to bring them in line with the program’s new rules within 2 years of enactment. 

Regarding newly selected agencies for program participation: no 

more than five may be ‘‘near-troubled agencies,’’ and agencies shall 

be selected to provide for diversity with respect to size, geography, 

and areas served (urban, suburban, and rural). Applicants must 

have held two public meetings on their HIP proposal, preceded by 

30 days prior notice to residents and the local community. Agencies 

shall be selected based on criteria to be established by HUD which 

include the extent to which the proposal generally identifies rules 

and regulations to be waived and why participation is necessary to 

achieve its goals and objectives, the extent of local commitment and 

funding, the extent to which the applicant has a history of success 

in pursuing similar strategies, and whether the proposal pursues 

one of two stated priorities strategies—which are (1) development, 

rehabilitation, and financing, and (2) rent reforms. 

Identifies a list of activities which can by undertaken using HIP 

funds. Requires that a PHA must assist not less than substantially 

the same number of low income families, with a comparable mix 

of families by family size. A number of existing statutory requirements are retained, including income targeting, Section 18 demolition and disposition rules, a number of tenant protections including 

lease requirements and eviction protections, and other provisions. 

A number of procedural, PHA plan, and tenant participation requirements are spelled out for any PHA policy changes under the 

program that would make a material change to tenant rents or contributions or to conditions of continued occupancy or participation. 

Additionally, the 20 HIP-lite agencies must comply with statutory rent requirements, may not impose time limits or work requirements, are subject to a one for one replacement requirement, 

and must include more extensive resident participation in any plan 

which provides for demolition or disposition of public housing units. 

HUD must perform evaluations of agencies participating in the 

program (or may contract out such responsibility to an independent 

entity qualified to perform such task). Such evaluations must use 

perform ance measures and identify models that can be replicated 


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by other agencies to achieve success. HUD is required to submit 

evaluation reports at 3-, 5-, and 10-year periods. $10 million is authorized in each of the years FY 2008 through 

FY 2012 for capacity building and technical assistance to enhance 

capabilities of low income families assisted under the program. $15 

million is authorized for HUD to conduct the required evaluations. 

Section 17. Demonstration program waiver authority 

HUD is authorized to enter into agreements with the Social Security Administration and the Secretary of Health and Human 

Services to allow for participation in state demonstration programs 

designed to permit persons with significant disabilities to be employed and continue to receive a range of federal benefits. HUD is 

authorized to permit a partial or complete disregard of increases in 

earned income for persons participating in any such demonstration 

for the purpose of calculating rent contributions in Section 8 housing. 

Section 18. Authorization of Appropriations 

Authorizes to be appropriated the amount necessary in each of 

Fiscal Year 2008 through 2012 to provide incremental vouchers for 

20,000 families each year. 

Section 19. Effective date 

Provides that provisions of bill take effect on January 1, 2008, 

except where otherwise noted. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

UNITED STATES HOUSING ACT OF 1937 

* * * * * * * 

TITLE I—GENERAL PROGRAM OF ASSISTED 

HOUSING 

* * * * * * * 

RENTAL PAYMENTS; DEFINITIONS

SEC. 3. (a)(1) LOW-INCOME OCCUPANCY REQUIREMENT AND RENTAL

PAYMENTS.—øDwelling units assisted under this Act shall be 

rented only to families who are low-income families at the time of 

their initial occupancy of such units.¿ Dwelling units assisted 

under this Act may be rented, and assistance under this Act may 

be provided, whether initially or at time of recertification, only to 

families who are low-income families at the time such initial or continued assistance, respectively, is provided, except that families residing in dwelling units as of the date of the enactment of the Section 8 Voucher Reform Act of 2007 that, under agreements in effect 


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on such date of enactment, may have incomes up to 95 percent of 

local area median income shall continue to be eligible for assistance 

at recertification as long as they continue to comply with such income restrictions. When recertifying family income with respect to 

families residing in public housing dwelling units, a public housing 

agency may, in the discretion of the agency and only pursuant to 

a policy that is set forth in the public housing agency plan under 

section 5A for the agency, choose not to enforce the prohibition 

under the preceding sentence. When recertifying family income with 

respect to families residing in dwelling units for which project-based 

assistance is provided, a project owner may, in the owner’s discretion and only pursuant to a policy adopted by such owner, choose 

not to enforce such prohibition. In the case of a family residing in 

a dwelling unit assisted under this Act who does not comply with 

the prohibition under the first sentence of this paragraph, the public 

housing agency or project owner may delay eviction or termination 

of the family based on such noncompliance for a period of not more 

than 6 months. Reviews of family income shall be made at least annually. Except as provided in paragraph (2) and subject to the requirement under paragraph (3), a family shall pay as rent for a 

dwelling unit assisted under this Act (other than a family assisted 

under section 8(o) or (y) or paying rent under section 8(c)(3)(B)) the 

highest of the following amounts, rounded to the nearest dollar: 

* * * * * * * 

(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 subparagraph (B)(i); 

(iii) upon the request of the family, at any time the 

income or deductions (under subsection (b)(5)) of the 

family change by an amount that is estimated to result 

in a decrease of $1,500 (or such lower amount as the 

public housing agency may, at the option of the agency 

or owner, establish) or more in annual adjusted income; and 

(iv) at any time the income or deductions (under subsection (b)(5)) of the family change by an amount that 

is estimated to result in an increase of $1,500 or more 

in annual adjusted income, except that any increase in 

the earned income of a family shall not be considered 

for purposes of this clause (except that earned income 

may be considered if the increase corresponds to previous decreases under clause (iii)), except that a public 

housing agency or owner may elect not to conduct such 

review in the last three months of a certification period. 

(B) FIXED-INCOME FAMILIES.— (i) SELF CERTIFICATION AND 3-YEAR REVIEW.—In the 

case of any family described in clause (ii), after the initial review of the family’s income pursuant to subparagraph (A)(i), the public housing agency or owner shall 

not be required to conduct a review of the family’s income pursuant to subparagraph (A)(ii) for any year for 


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which such family certifies, in accordance with such requirements as the Secretary shall establish, that the income of the family meets the requirements of clause (ii) 

of this subparagraph, except that the public housing 

agency or owner shall conduct a review of each such 

family’s income not less than once every 3 years. 

(ii) ELIGIBLE FAMILIES.—A family described in this 

clause is a family who has an income, as of the most 

recent review pursuant to subparagraph (A) or clause 

(i) of this subparagraph, of which 90 percent or more 

consists of fixed income, as such term is defined in 

clause (iii). 

(iii) FIXED INCOME.—For purposes of this subparagraph, the term ‘‘fixed income’’ includes income from—

(I) the supplemental security income program 

under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 

1616(a) of the Social Security Act and payments 

pursuant to an agreement entered into under section 212(b) of Public Law 93–66; 

(II) Social Security payments; 

(III) Federal, State, local and private pension 

plans; and 

(IV) other periodic payments received from annuities, insurance policies, retirement funds, disability or death benefits, and other similar types of 

periodic receipts. 

(C) IN GENERAL.—Reviews of family income for purposes 

of this section shall be subject to the provisions of section 

904 of the Stewart B. McKinney Homeless Assistance 

Amendments Act of 1988. 

(7) CALCULATION OF INCOME.— (A) USE OF PRIOR YEAR’S INCOME.—Except as otherwise 

provided in this paragraph, in determining the income of 

a family for a year, a public housing agency or owner may 

use the income of the family as determined by the agency 

or owner for the preceding year, taking into consideration 

any redetermination of income during such prior year pursuant to clause (iii) or (iv) of paragraph (6)(A). 

(B) EARNED INCOME.—For purposes of this section, the 

earned income of a family for a year shall be the amount 

of earned income by the family in the prior year minus an 

amount equal to 10 percent of the lesser of such prior year’s 

earned income or $10,000, except that the income of a family for purposes of section 16 (relating to eligibility for assisted housing and income mix) shall be determined without regard to any reduction under this subparagraph. 

(C) INFLATIONARY ADJUSTMENT FOR FIXED INCOME FAMI- LIES.—If, for any year, a public housing agency or owner 

determines the income for any family described in paragraph (6)(B)(ii), or the amount of fixed income of any other 

family, based on the prior year’s income or fixed income, respectively, pursuant to subparagraph (A), such prior year’s 

income or fixed income, respectively, shall be adjusted by 


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applying an inflationary factor as the Secretary shall, by 

regulation, establish. 

(D) OTHER INCOME.—If, for any year, a public housing 

agency or owner determines the income for any family 

based on the prior year’s income, with respect to prior year 

calculations of types of income not subject to subparagraph 

(B), a public housing agency or owner may make other adjustments as it considers appropriate to reflect current income. 

(E) SAFE HARBOR.—A public housing agency or owner 

may, to the extent such information is available to the public housing agency or owner, determine the family’s income 

for purposes of this section based on timely income determinations made for purposes of other means-tested Federal 

public assistance programs (including the program for 

block grants to States for temporary assistance for needy 

families under part A of title IV of the Social Security Act, 

a program for medicaid assistance under a State plan approved under title XIX of the Social Security Act, and the 

food stamp program as defined in section 3(h) of the Food 

Stamp Act of 1977). The Secretary shall, in consultation 

with other appropriate Federal agencies, develop procedures 

to enable public housing agencies and owners to have access to such income determinations made by other Federal 

programs. 

(F) PHA AND OWNER COMPLIANCE.—A public housing 

agency or owner may not be considered to fail to comply 

with this paragraph or paragraph (6) due solely to any de 

minimus errors made by the agency or owner in calculating 

family incomes. 

(b) When used in this Act: 

(1) * * * 

* * * * * * * 

ø(4) The term ‘‘income’’ means income from all sources of each 

member of the household, as determined in accordance with criteria prescribed by the Secretary, in consultation with the Secretary of Agriculture, except that any amounts not actually received by the family and any amounts which would be eligible for 

exclusion under section 1613(a)(7) of the Social Security Act (42 

U.S.C. 1382b(a)(7)) may not be considered as income under this 

paragraph. 

ø(5) ADJUSTED INCOME.—The term ‘‘adjusted income’’ means, 

with respect to a family, the amount (as determined by the public 

housing agency) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any income 

exclusions as follows: 

ø(A) MANDATORY EXCLUSIONS.—In determining adjusted income, a public housing agency shall exclude from the annual 

income of a family the following amounts: 

ø(i) ELDERLY AND DISABLED FAMILIES.—$400 for any elderly or disabled family. 

ø(ii) MEDICAL EXPENSES.—The amount by which 3 percent of the annual family income is exceeded by the sum 

of—


cnoel on PRODPC60 with HEARING
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ø(I) unreimbursed medical expenses of any elderly 

family or disabled family; 

ø(II) unreimbursed medical expenses of any family 

that is not covered under subclause (I), except that 

this subclause shall apply only to the extent approved 

in appropriation Acts; and 

ø(III) unreimbursed reasonable attendant care and 

auxiliary apparatus expenses for each handicapped 

member of the family, to the extent necessary to enable any member of such family (including such handicapped member) to be employed. 

ø(iii) CHILD CARE EXPENSES.—Any reasonable child care 

expenses necessary to enable a member of the family to be 

employed or to further his or her education. 

ø(iv) 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. 

ø(v) CHILD SUPPORT PAYMENTS.—Any payment made by 

a member of the family for the support and maintenance 

of any child who does not reside in the household, except 

that the amount excluded under this clause may not exceed $480 for each child for whom such payment is made; 

except that this clause shall apply only to the extent approved in appropriations Acts. 

ø(vi) SPOUSAL SUPPORT EXPENSES.—Any payment made 

by a member of the family for the support and maintenance of any spouse or former spouse who does not reside 

in the household, except that the amount excluded under 

this clause shall not exceed the lesser of (I) the amount 

that such family member has a legal obligation to pay, or 

(II) $550 for each individual for whom such payment is 

made; except that this clause shall apply only to the extent 

approved in appropriations Acts. 

ø(vii) EARNED INCOME OF MINORS.—The amount of any 

earned income of a member of the family who is not— ø(I) 18 years of age or older; and 

ø(II) the head of the household (or the spouse of the 

head of the household). 

ø(B) PERMISSIVE EXCLUSIONS FOR PUBLIC HOUSING.—In determining adjusted income, a public housing agency may, in 

the discretion of the agency, establish exclusions from the annual income of a family residing in a public housing dwelling 

unit. Such exclusions may include the following amounts: 

ø(i) EXCESSIVE TRAVEL EXPENSES.—Excessive travel expenses in an amount not to exceed $25 per family per 

week, for employment- or education-related travel. 

ø(ii) EARNED INCOME.—An amount of any earned income 

of the family, established at the discretion of the public 

housing agency, which may be based on— ø(I) all earned income of the family, 

ø(II) the amount earned by particular members of 

the family; 


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ø(III) the amount earned by families having certain 

characteristics; or 

ø(IV) the amount earned by families or members 

during certain periods or from certain sources. 

ø(iii) OTHERS.—Such other amounts for other purposes, 

as the public housing agency may establish.¿ 

(4) INCOME.—The term ‘‘income’’ means, with respect to a 

family, income received from all sources by each member of the 

household who is 18 years of age or older or is the head of 

household or spouse of the head of the household, plus unearned income by or on behalf of each dependent who is less 

than 18 years of age, as determined in accordance with criteria 

prescribed by the Secretary, in consultation with the Secretary 

of Agriculture, subject to the following requirements: 

(A) INCLUDED AMOUNTS.—Such term includes recurring 

gifts and receipts, actual income from assets, and profit or 

loss from a business. 

(B) EXCLUDED AMOUNTS.—Such term does not include— (i) any imputed return on assets; and 

(ii) any amounts that would be eligible for exclusion 

under section 1613(a)(7) of the Social Security Act (42 

U.S.C. 1382b(a)(7)). 

(C) EARNED INCOME OF STUDENTS.—Such term does not 

include earned income of any dependent earned during any 

period that such dependent is attending school on a fulltime basis or any grant-in-aid or scholarship amounts related to such attendance used for the cost of tuition or 

books. 

(D) EDUCATIONAL SAVINGS ACCOUNTS.—Income shall be 

determined without regard to any amounts in or from, or 

any benefits from, any Coverdell education savings account 

under section 530 of the Internal Revenue Code of 1986 or 

any qualified tuition program under section 529 of such 

Code. 

(E) OTHER EXCLUSIONS.—Such term shall not include 

other exclusions from income as are established by the Secretary or any amount required by Federal law to be excluded from consideration as income. The Secretary may 

not require a public housing agency or owner to maintain 

records of any amounts excluded from income pursuant to 

this subparagraph. 

(5) ADJUSTED INCOME.—The term ‘‘adjusted income’’ means, 

with respect to a family, the amount (as determined by the public housing agency or owner) of the income of the members of 

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

after any deductions from income as follows: 

(A) ELDERLY AND DISABLED FAMILIES.—$725 in the case 

of any family that is an elderly family or a disabled family. 

(B) DEPENDENTS.—In the case of any family that includes a member or members who— (i) are less than 18 years of age or attending school 

or vocational training on a full-time basis; or 

(ii) is a person with disabilities who is 18 years of 

age or older and resides in the household, $500 for each such member. 


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(C) HEALTH AND MEDICAL EXPENSES.—The amount, if 

any, by which 10 percent of annual family income is exceeded by the sum of—

(i) in the case of any elderly or disabled family, any 

unreimbursed health and medical care expenses; and 

(ii) any unreimbursed reasonable attendant care and 

auxiliary apparatus expenses for each handicapped 

member of the family, to the extent necessary to enable 

any member of such family to be employed. 

(D) PERMISSIVE DEDUCTIONS.—Such additional deductions as a public housing agency may, at its discretion, establish, except that the Secretary shall establish procedures 

to ensure that such deductions do not increase Federal expenditures. 

The Secretary shall annually adjust the amounts of the exclusions under subparagraphs (A) and (B), as such amounts may 

have been previously adjusted, by applying an inflationary factor as the Secretary shall, by regulation, establish. If the dollar 

amount of any such exclusion determined for any year by applying such inflationary factor is not a multiple of $25, the Secretary shall round such amount to the next lowest multiple of 

$25. 

* * * * * * * 

ø(d) DISALLOWANCE OF EARNED INCOME FROM RENT DETERMINATIONS.—

ø(1) IN GENERAL.—Notwithstanding any other provision of 

law, the rent payable under subsection (a) by a family described in paragraph (3) of this subsection may not be increased as a result of the increased income due to such employment during the 12-month period beginning on the date on 

which the employment is commenced. 

ø(2) PHASE-IN OF RENT INCREASES.—Upon the expiration of 

the 12-month period referred to in paragraph (1), the rent payable by a family described in paragraph (3) may be increased 

due to the continued employment of the family member described in paragraph (3)(B), except that during the 12-month 

period beginning upon such expiration the amount of the increase may not be greater than 50 percent of the amount of the 

total rent increase that would be applicable but for this paragraph. 

ø(3) ELIGIBLE FAMILIES.—A family described in this paragraph is a family— ø(A) that— ø(i) occupies a dwelling unit in a public housing 

project; or 

ø(ii) receives assistance under section 8; and 

ø(B)(i) whose income increases as a result of employment 

of a member of the family who was previously unemployed 

for 1 or more years; 

ø(ii) whose earned income increases during the participation of a family member in any family self-sufficiency or 

other job training program; or 

ø(iii) who is or was, within 6 months, assisted under any 

State program for temporary assistance for needy families 


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funded under part A of title IV of the Social Security Act 

and whose earned income increases. 

ø(4) APPLICABILITY.—This subsection and subsection (e) shall 

apply beginning upon October 1, 1999, except that this subsection and subsection (e) shall apply with respect to any family described in paragraph 3(A)(ii) only to the extent provided 

in advance in appropriations Acts. 

ø(e) INDIVIDUAL SAVINGS ACCOUNTS.— ø(1) IN GENERAL.—In lieu of a disallowance of earned income 

under subsection (d), upon the request of a family that qualifies under subsection (d), a public housing agency may establish an individual savings account in accordance with this subsection for that family. 

ø(2) DEPOSITS TO ACCOUNT.—The public housing agency shall 

deposit in any savings account established under this subsection an amount equal to the total amount that otherwise 

would be applied to the family’s rent payment under subsection (a) as a result of employment. 

ø(3) WITHDRAWAL FROM ACCOUNT.—Amounts deposited in a 

savings account established under this subsection may only be 

withdrawn by the family for the purpose of—

ø(A) purchasing a home; 

ø(B) paying education costs of family members; 

ø(C) moving out of public or assisted housing; or 

ø(D) paying any other expense authorized by the public 

housing agency for the purpose of promoting the economic 

self-sufficiency of residents of public and assisted housing.¿ 

ø(f)¿ (d) AVAILABILITY OF INCOME MATCHING INFORMATION.—

(1) * * * 

* * * * * * * 

(e) PHA REPORTING OF RENT PAYMENTS TO CREDIT REPORTING

AGENCIES.—

(1) AUTHORITY.—To the extent that a family receiving tenantbased housing choice vouchers under section 8 by a public housing agency agrees in writing to reporting under this subsection, 

the public housing agency may submit to consumer reporting 

agencies described in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a) information regarding the past rent 

payment history of the family with respect to the dwelling unit 

for which such assistance is provided. 

(2) FORMAT.—The Secretary, after consultation with consumer reporting agencies referred in paragraph (1), shall establish a system and format to be used by public housing agencies 

for reporting of information under such paragraph that provides such information in a format and manner that is similar 

to other credit information submitted to such consumer reporting agencies and is usable by such agencies. 

* * * * * * * 

SEC. 5A. PUBLIC HOUSING AGENCY PLANS. 

(a) * * * 

* * * * * * * 


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(d) CONTENTS.—An annual public housing agency plan under 

subsection (b) for a public housing agency shall contain the following information relating to the upcoming fiscal year for which 

the assistance under this Act is to be made available: 

(1) * * * 

* * * * * * * 

(4) RENT DETERMINATION.—A statement of the policies of the 

public housing agency governing rents charged for public housing dwelling units and rental contributions of families assisted 

under section 8(o), including the report with respect to the 

agency furnished by the Secretary pursuant to section 8(o)(1)(E) 

concerning rent burdens and, if applicable, geographic concentration of voucher holders, any changes in rent or other policies the public housing agency is making to address excessive 

rent burdens or concentration, and if the public housing agency 

is not adjusting its payment standard, its reasons for not doing 

so. 

* * * * * * * 

LOWER INCOME HOUSING ASSISTANCE

SEC. 8. (a) * * * 

* * * * * * * 

(c)(1)(A) An assistance contract entered into pursuant to this section shall establish the maximum monthly rent (including utilities 

and all maintenance and management charges) which the owner is 

entitled to receive for each dwelling unit with respect to which such 

assistance payments are to be made. The maximum monthly rent 

shall not exceed by more than 10 per centum the fair market rental 

established by the Secretary periodically but not less than annually 

for existing or newly constructed rental dwelling units of various 

sizes and types in the market area suitable for occupancy by persons assisted under this section, except that the maximum monthly 

rent may exceed the fair market rental (A) by more than 10 but 

not more than 20 per centum where the Secretary determines that 

special circumstances warrant such higher maximum rent or that 

such higher rent is necessary to the implementation of a housing 

strategy as defined in section 105 of the Cranston-Gonzalez National Affordable Housing Act, or (B) by such higher amount as 

may be requested by a tenant and approved by the public housing 

agency in accordance with paragraph (3)(B). In the case of newly 

constructed and substantially rehabilitated units, the exception in 

the preceding sentence shall not apply to more than 20 per centum 

of the total amount of authority to enter into annual contributions 

contracts for such units which is allocated to an area and obligated 

with respect to any fiscal year beginning on or after October 1, 

1980. Proposed fair market rentals for an area shall be published 

in the Federal Register with reasonable time for public comment, 

and shall become effective upon the date of publication in final 

form in the Federal Register. Each fair market rental in effect 

under this subsection shall be adjusted to be effective on October 

1 of each year to reflect changes, based on the most recent available data trended so the rentals will be current for the year to 

which they apply, of rents for existing or newly constructed rental 


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dwelling units, as the case may be, of various sizes and types in 

the market area suitable for occupancy by persons assisted under 

this section. Notwithstanding any other provision of this section, 

after the date of enactment of the Housing and Community Development Act of 1977, the Secretary shall prohibit high-rise elevator 

projects for families with children unless there is no practical alternative. øThe Secretary shall establish separate fair market rentals 

under this paragraph for Westchester County in the State of New 

York. The Secretary shall also establish separate fair market rentals under this paragraph for Monroe County in the Commonwealth 

of Pennsylvania. In establishing fair market rentals for the remaining portion of the market area in which Monroe County is located, 

the Secretary shall establish the fair market rentals as if such portion included Monroe County.¿ If units assisted under this section 

are exempt from local rent control while they are so assisted or 

otherwise, the maximum monthly rent for such units shall be reasonable in comparison with other units in the market area that are 

exempt from local rent control. 

(B)(i) The Secretary shall endeavor to define market areas for purposes of this paragraph in a manner that results in fair market 

rentals that are adequate to cover typical rental costs of units suitable for occupancy by persons assisted under this section in as wide 

a range of communities as is feasible, including communities with 

low poverty rates. 

(ii) The Secretary at a minimum shall define a separate market 

area for each—

(I) metropolitan city, as such term is defined in section 102(a) 

of the Housing and Community Development Act of 1974 (42 

U.S.C. 5302(a)), with more than 40,000 rental dwelling units; 

and 

(II) urban county or portion of an urban county, as such term 

is defined in such section 102(a), located outside the boundaries 

of any metropolitan city specified in subclause (I). 

(iii) The Secretary shall, at the request of one or more public 

housing agencies, establish a separate market area for part or all 

of the area under the jurisdiction of such agencies, if—

(I) the requested market area contains at least 20,000 rental 

dwelling units; 

(II) the areas contained in the requested market area are geographically contiguous and share similar housing market characteristics; 

(III) adequate data are available to establish a reliable fair 

market rental for the requested market area, and for the remainder of the market area in which it is currently located; and 

(IV) establishing the requested market area would raise or 

lower the fair market rental by 10 percent or more at the time 

the requested market area is established. 

For purposes of subclause (III), data for an area shall be considered 

adequate if they are sufficient to establish from time to time a reliable benchmark fair market rental based primarily on data from 

that area, whether or not those data need to be supplemented with 

data from a larger area for purposes of annual updates. 


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(iv) The Secretary shall not reduce the fair market rental in a 

market area as a result of a change in the percentile of the distribution of market rents used to establish the fair market rental. 

* * * * * * * 

(3) The amount of the monthly assistance payment with respect 

to any dwelling unit shall be the difference between the maximum 

monthly rent which the contract provides that the owner is to receive for the unit and the rent the family is required to pay under 

section 3(a) of this Act. øReviews of family income shall be made 

no less frequently than annually.¿ 

(4) The assistance contract shall provide that assistance payments may be made only with respect to a dwelling unit under 

lease for occupancy by a family determined to be a lower income 

family øat the time it initially occupied such dwelling unit¿ according to the restrictions under section 3(a)(1), except that such payments may be made with respect to unoccupied units for a period 

not exceeding sixty days (A) in the event that a family vacates a 

dwelling unit before the expiration date of the lease for occupancy 

or (B) where a good faith effort is being made to fill an unoccupied 

unit, and, subject to the provisions of the following sentence, such 

payments may be made, in the case of a newly constructed or substantially rehabilitated project, after such sixty-day period in an 

amount equal to the debt service attributable to such an unoccupied dwelling unit for a period not to exceed one year, if a good 

faith effort is being made to fill the unit and the unit provides decent, safe, and sanitary housing. No such payment may be made 

after such sixty-day period if the Secretary determines that the 

dwelling unit is in a project which provides the owner with revenues exceeding the costs incurred by such owner with respect to 

such project. 

* * * * * * * 

(o) VOUCHER PROGRAM.—

(1) AUTHORITY.—

(A) * * * 

(B) ESTABLISHMENT OF PAYMENT STANDARD.—Except as 

provided under subparagraph (D), the payment standard 

for each size of dwelling unit in a market area shall not 

exceed 110 percent of the fair market rental established 

under subsection (c) for the same size of dwelling unit in 

the same market area and shall be not less than 90 percent of that fair market rental, 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. 

* * * * * * * 

(D) APPROVAL.—The Secretary may require a public 

housing agency to submit the payment standard of the 

public housing agency to the Secretary for approval, if the 

payment standard is less than 90 percent of the fair market rental or exceeds 110 percent of the fair market rental, 

except that a public housing agency may establish a payVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00070 Fmt 6659 Sfmt 6601 E:\HR\OC\HR216.XXX HR216

cnoel on PRODPC60 with HEARING
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ment standard of not more than 120 percent of the fair 

market rent where necessary as a reasonable accommodation for a person with a disability, without approval of the 

Secretary. A public housing agency may seek approval of 

the Secretary to use a payment standard greater than 120 

percent of the fair market rent as a reasonable accommodation for a person with a disability. ø(E) REVIEW.—The Secretary— ø(i) shall monitor rent burdens and review any payment standard that results in a significant percentage 

of the families occupying units of any size paying more 

than 30 percent of adjusted income for rent; and 

ø(ii) may require a public housing agency to modify 

the payment standard of the public housing agency 

based on the results of that review.¿ 

(E) REVIEWS.—

(i) RENT BURDENS.—The Secretary shall monitor 

rent burdens and submit a report to the Congress annually on the percentage of families assisted under this 

subsection, occupying dwelling units of any size, that 

pay more than 30 percent of their adjusted incomes for 

rent and such percentage that pay more than 40 percent of their adjusted incomes for rent. Using information regularly reported by public housing agencies, the 

Secretary shall provide public housing agencies, on an 

annual basis, a report with the information described 

in the first sentence of this clause, and may require a 

public housing agency to modify a payment standard 

that results in a significant percentage of families assisted under this subsection, occupying dwelling units 

of any size, paying more than 30 percent of their adjusted incomes for rent. 

(ii) CONCENTRATION OF POVERTY.—The Secretary 

shall submit a report to the Congress annually on the 

degree to which families assisted under this subsection 

in each metropolitan area are clustered in lower rent, 

higher poverty areas and how, and the extent to which, 

greater geographic distribution of such assisted families could be achieved, including by increasing payment standards for particular communities within 

such metropolitan areas. 

(iii) PUBLIC HOUSING AGENCY RESPONSIBILITIES.—

Each public housing agency shall make publicly available the information on rent burdens provided by the 

Secretary pursuant to clause (i), and, for agencies located in metropolitan areas, the information on concentration provided by the Secretary pursuant to clause 

(ii). If the percentage of families paying more than 30 

percent or 40 percent of income exceeds the national average for either of such categories, as reported pursuant 

to clause (i), the public housing agency shall adjust the 

payment standard to eliminate excessive rent burdens 

within a reasonable time period or explain its reasons 

for not making such adjustment. The Secretary may 

not deny the request of a public housing agency to set 


cnoel on PRODPC60 with HEARING
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a payment standard up to 120 percent of the fair market rent to remedy rent burdens in excess of the national average or undue concentration of families assisted under this subsection in lower rent, higher poverty sections of a metropolitan area except on the basis 

that an agency has not demonstrated that its request 

meets these criteria. If a request of a public housing 

agency has not been denied or approved within 45 days 

after the request is made, the request shall be considered to have been approved. 

* * * * * * * 

ø(4) ELIGIBLE FAMILIES.—To be eligible to receive assistance 

under this subsection, a family shall, at the time a family initially receives assistance under this subsection, be a low-income family that is—¿ 

(4) ELIGIBLE FAMILIES.—Assistance under this subsection 

may be provided, whether initially or at each recertification, 

only pursuant to subsection (t) to a family eligible for assistance 

under such subsection or to a family who at the time of such 

initial or continued assistance, respectively, is a low-income 

family that is— (A) * * * 

* * * * * * * 

(5) øANNUAL REVIEW¿ REVIEWS OF FAMILY INCOME.— (A) IN GENERAL.—Reviews of family incomes for purposes of this section shall be subject to øthe provisions of¿ 

paragraphs (6) and (7) of section 3(a) and to section 904 

of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 øand shall be conducted upon the initial 

provision of housing assistance for the family and thereafter not less than annually¿. (B) PROCEDURES.—Each public housing agency administering assistance under this subsection shall establish 

procedures that are appropriate and necessary to ensure 

that income data provided to the agency and owners by 

families applying for or receiving assistance from the agency is complete and accurate. øEach public housing agency 

shall, not less frequently than annually, conduct a review 

of the family income of each family receiving assistance 

under this subsection.¿ 

(6) SELECTION OF FAMILIES AND DISAPPROVAL OF

OWNERS.—

(A) * * * 

(B) SELECTION OF TENANTS.—Each housing assistance 

payment contract entered into by the public housing agency and the owner of a dwelling unit) shall provide that the 

screening and selection of families for those units shall be 

the function of the owner. In addition, the public housing 

agency may elect to screen applicants for the program in 

accordance with such requirements as the Secretary may 

establish. A public housing agency’s elective screening shall 

be limited to criteria that are directly related to an applicant’s ability to fulfill the obligations of an assisted lease 

and shall consider mitigating circumstances related to such 


cnoel on PRODPC60 with HEARING
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applicant. Any applicant or participant determined to be 

ineligible for admission or continued participation to the 

program shall be notified of the basis for such determination and provided, within a reasonable time after the determination, an opportunity for an informal hearing on such 

determination at which mitigating circumstances, including remedial conduct subsequent to the notice, shall be considered. That an applicant or participant is or has been a 

victim of domestic violence, dating violence, or stalking is 

not an appropriate basis for denial of program assistance 

by or for denial of admission if the applicant otherwise 

qualifies for assistance for admission, and that nothing in 

this section shall be construed to supersede any provision 

of any Federal, State, or local law that provides greater 

protection than this section for victims of domestic violence, dating violence, or stalking. 

* * * * * * * 

(8) INSPECTION OF UNITS BY PHA’S.— ø(A) IN GENERAL.—Except as provided in paragraph (11), 

for each dwelling unit for which a housing assistance payment contract is established under this subsection, the 

public housing agency shall inspect the unit before any assistance payment is made to determine whether the dwelling unit meets the housing quality standards under subparagraph (B).¿ 

(A) INITIAL INSPECTION.— (i) IN GENERAL.—For each dwelling unit for which a 

housing assistance payment contract is established 

under this subsection, the public housing agency (or 

other entity pursuant to paragraph (11)) shall inspect 

the unit before any assistance payment is made to determine whether the dwelling unit meets the housing 

quality standards under subparagraph (B), except as 

provided in clause (ii) or (iii) of this subparagraph. 

(ii) CORRECTION OF NON-LIFE THREATENING CONDI- TIONS.—In the case of any dwelling unit that is determined, pursuant to an inspection under clause (i), not 

to meet the housing quality standards under subparagraph (B), assistance payments may be made for the 

unit notwithstanding subparagraph (C) if failure to 

meet such standards is a result only of non-life threatening conditions. A public housing agency making assistance payments pursuant to this clause for a dwelling unit shall, 30 days after the beginning of the period 

for which such payments are made, suspend any assistance payments for the unit if any deficiency resulting 

in noncompliance with the housing quality standards 

has not been corrected by such time, and may not resume such payments until each such deficiency has 

been corrected. 

(iii) PROJECTS RECEIVING CERTAIN FEDERAL HOUSING

SUBSIDIES.—In the case of any property that within the 

previous 12 months has been determined to meet housing quality and safety standards under any Federal 

housing program inspection standard, including the 


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program under section 42 of the Internal Revenue Code 

of 1986 or under subtitle A of title II of the Cranston 

Gonzalez National Affordable Housing Act of 1990, a 

public housing agency may authorize occupancy before 

the inspection under clause (i) has been completed, and 

may make assistance payments retroactive to the beginning of the lease term after the unit has been determined pursuant to an inspection under clause (i) to 

meet the housing quality standards under subparagraph (B). 

* * * * * * * 

ø(D) ANNUAL INSPECTIONS.—Each public housing agency 

providing assistance under this subsection (or other entity, 

as provided in paragraph (11)) shall make an annual inspection of each assisted dwelling unit during the term of 

the housing assistance payments contract for the unit to 

determine whether the unit is maintained in accordance 

with the requirements under subparagraph (A). The agency (or other entity) shall retain the records of the inspection for a reasonable time and shall make the records 

available upon request to the Secretary, the Inspector General for the Department of Housing and Urban Development, and any auditor conducting an audit under section 

5(h).¿ 

(D) BIENNIAL INSPECTIONS.— (i) REQUIREMENT.—Each public housing agency providing assistance under this subsection (or other entity, 

as provided in paragraph (11)) shall, for each assisted 

dwelling unit, make biennial inspections during the 

term of the housing assistance payments contract for 

the unit to determine whether the unit is maintained in 

accordance with the requirements under subparagraph 

(A). The agency (or other entity) shall retain the 

records of the inspection for a reasonable time and 

shall make the records available upon request to the 

Secretary, the Inspector General for the Department of 

Housing and Urban Development, and any auditor 

conducting an audit under section 5(h). 

(ii) SUFFICIENT INSPECTION.—An inspection of a 

property shall be sufficient to comply with the inspection requirement under clause (i) if— (I) the inspection was conducted pursuant to requirements under a Federal, State, or local housing assistance program (including the HOME investment partnerships program under title II of the 

Cranston-Gonzalez National Affordable Housing 

Act (42 U.S.C. 12721 et seq.)); and 

(II) pursuant to such inspection, the property 

was determined to meet the standards or requirements regarding housing quality or safety applicable to units assisted under such program, and, if 

a non-Federal standard was used, the public housing agency has certified to the Secretary that such 

standards or requirements provide the same protection to occupants of dwelling units meeting such 


cnoel on PRODPC60 with HEARING
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standards or requirements as, or greater protection 

than, the housing quality standards under subparagraph (B). 

* * * * * * * 

(F) ENFORCEMENT OF HOUSING QUALITY STANDARDS.—

(i) DETERMINATION OF NONCOMPLIANCE.—A dwelling 

unit that is covered by a housing assistance payments 

contract under this subsection shall be considered, for 

purposes of this subparagraph, to be in noncompliance 

with the housing quality standards under subparagraph (B) if—

(I) the public housing agency or an inspector authorized by the State or unit of local government 

determines upon inspection of the unit that the 

unit fails to comply with such standards; 

(II) the agency or inspector notifies the owner of 

the unit in writing of such failure to comply; and 

(III) the failure to comply is not corrected within 

90 days after receipt of such notice. 

(ii) WITHHOLDING AND RELEASE OF ASSISTANCE

AMOUNTS.—The public housing agency shall withhold 

all of the assistance amounts under this subsection 

with respect to a dwelling unit that is in noncompliance with housing quality standards under subparagraph (B). Subject to clause (iii), the agency shall 

promptly release any withheld amounts to the owner of 

the dwelling unit upon completion of repairs that remedy such noncompliance. 

(iii) USE OF WITHHELD ASSISTANCE TO PAY FOR REPAIRS.—The public housing agency may use such 

amounts withheld to make repairs to the dwelling unit 

or to contract to have repairs made (or to contract with 

an inspector referred to in clause (i)(I) to make or contract for such repairs), and shall subtract the cost of 

such repairs from any amounts released to the owner 

of the unit upon remedying such noncompliance. 

(iv) PROTECTION OF TENANTS.—An owner of a dwelling unit may not terminate the tenancy of any tenant 

or refuse to renew a lease for such unit because of the 

withholding of assistance pursuant to this subparagraph. 

(v) TERMINATION OF LEASE OR ASSISTANCE PAYMENTS

CONTRACT.—If assistance amounts under this section 

for a dwelling unit are withheld pursuant to clause (ii) 

and the owner does not correct the noncompliance before the expiration of the lease for the dwelling unit 

and such lease is not renewed, the Secretary shall recapture any such amounts from the public housing 

agency. 

(vi) APPLICABILITY.—This subparagraph shall apply 

to any dwelling unit for which a housing assistance 

payments contract is entered into or renewed after the 


cnoel on PRODPC60 with HEARING
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date of the effectiveness of the regulations implementing this subparagraph. 

* * * * * * * 

(12) ASSISTANCE FOR RENTAL OF MANUFACTURED

HOUSING.—

(A) IN GENERAL.—A public housing agency may make assistance payments in accordance with this subsection on 

behalf of a family that utilizes a manufactured home as a 

principal place of residenceø. Such payments may be made 

only for the rental of¿ and rents the real property on which 

the manufactured home owned by any such family is located. 

(B) RENT CALCULATION.—

(i) CHARGES INCLUDED.—For assistance pursuant to 

this paragraph, øthe rent for the space on which a 

manufactured home is located and with respect to 

which assistance payments are to be made shall include maintenance and management charges and tenant-paid utilities.¿ 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. 

ø(ii) PAYMENT STANDARD.—The public housing agency shall establish a payment standard for the purpose 

of determining the monthly assistance that may be 

paid for any family under this paragraph. The payment standard may not exceed an amount approved or 

established by the Secretary.¿ 

ø(iii)¿ (ii) MONTHLY ASSISTANCE PAYMENT.—The 

monthly assistance payment for a family assisted 

under this paragraph shall be determined in accordance with paragraph (2). 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. 

(13) PHA PROJECT-BASED ASSISTANCE.—

(A) * * * 

ø(B) PERCENTAGE LIMITATION.—Not more than 20 percent of the funding available for tenant-based assistance 

under this section that is administered by the agency may 

be attached to structures pursuant to this paragraph.¿ 

(B) PERCENTAGE LIMITATION.—

(i) IN GENERAL.—Subject to clause (ii), not more than 

25 percent of the funding available for tenant-based assistance under this section that is administered by the 


cnoel on PRODPC60 with HEARING
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agency may be attached to structures pursuant to this 

paragraph. 

(ii) EXCEPTION.—An agency may attach up to an additional 5 percent of the funding available for tenantbased assistance under this section to structures pursuant to this paragraph for dwelling units that house individuals and families that meet the definition of 

homeless under section 103 of the McKinney-Vento 

Homeless Assistance Act (42 U.S.C. 11302). 

* * * * * * * 

ø(D) INCOME MIXING REQUIREMENT.—

ø(i) IN GENERAL.—Not more than 25 percent of the 

dwelling units in any building may be assisted under 

a housing assistance payment contract for projectbased assistance pursuant to this paragraph. 

ø(ii) EXCEPTIONS.—The limitation under clause (i) 

shall not apply in the case of assistance under a contract for housing consisting of single family properties 

or for dwelling units that are specifically made available for households comprised of elderly families, disabled families, and families receiving supportive services.¿ 

(D) INCOME MIXING REQUIREMENT.—

(i) IN GENERAL.—Except as provided in clause (ii), 

not more than the greater of 25 dwelling units or 25 

percent of the dwelling units in any project may be assisted under a housing assistance payment contract for 

project-based assistance pursuant to this paragraph. 

For purposes of this subparagraph, the term ‘‘project’’

means a single building, multiple contiguous buildings, or multiple buildings on contiguous parcels of 

land. 

(ii) EXCEPTIONS.—

(I) CERTAIN HOUSING.—The limitation under 

clause (i) shall not apply in the case of assistance 

under a contract for housing consisting of single 

family properties, or for dwelling units that are 

specifically made available for households comprised of elderly families, disabled families, and 

families receiving supportive services. For purposes 

of the preceding sentence, the term ‘‘single family 

properties’’ means buildings with no more than 

four dwelling units. 

(II) CERTAIN AREAS.—With respect to areas in 

which fewer than 75 percent of families issued 

vouchers become participants in the program, the 

public housing agency has established the payment 

standard at 110 percent of the fair market rent for 

all census tracts in the area for the previous six 

months, and the public housing agency grants an 

automatic extension of 90 days (or longer) to families with vouchers who are attempting to find 


cnoel on PRODPC60 with HEARING
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housing, clause (i) shall be applied by substituting 

‘‘50 percent’’ for ‘‘25 percent’’. 

* * * * * * * 

(F) CONTRACT TERM.—A housing assistance payment 

contract pursuant to this paragraph between a public 

housing agency and the owner of a structure may have a 

term of up to ø10 years¿ 15 years, subject to the availability of sufficient appropriated funds for the purpose of 

renewing expiring contracts for assistance payments, as 

provided in appropriations Acts and in the agency’s annual 

contributions contract with the Secretary, and to annual 

compliance with the inspection requirements under paragraph (8), except that the agency shall not be required to 

make annual inspections of each assisted unit in the development. The contract may specify additional conditions for 

its continuation. If the units covered by the contract are 

owned by the agency, the term of the contract shall be 

agreed upon by the agency and the unit of general local 

government or other entity approved by the Secretary in 

the manner provided under paragraph (11). 

(G) EXTENSION OF CONTRACT TERM.—A public housing 

agency may enter into a contract with the owner of a 

structure assisted under a housing assistance payment 

contract pursuant to this paragraph to extend the term of 

the underlying housing assistance payment contract for 

such period as the agency determines to be appropriate to 

achieve long-term affordability of the housing or to expand 

housing opportunities. Such contract may, at the election of 

the public housing agency and the owner of the structure, 

specify that such contract shall be extended for renewal 

terms of up to 15 years each, if the agency makes the determination required by this subparagraph and the owner is 

in compliance with the terms of the contract. Such a contract shall provide that the extension of such term shall be 

contingent upon the future availability of appropriated 

funds for the purpose of renewing expiring contracts for 

assistance payments, as provided in appropriations Acts, 

and may obligate the owner to have such extensions of the 

underlying housing assistance payment contract accepted 

by the owner and the successors in interest of the owner. 

A public housing agency may agree to enter into such a 

contract at the time it enters into the initial agreement for 

a housing assistance payment contract or at any time thereafter that is before the expiration of the housing assistance 

payment contract. 

(H) RENT CALCULATION.—A housing assistance payment 

contract pursuant to this paragraph shall establish rents 

for each unit assisted in an amount that does not exceed 

110 percent of the applicable fair market rental (or any exception payment standard approved by the Secretary pursuant to paragraph (1)(D)), except that if a contract covers 

a dwelling unit that has been allocated low-income housing 

tax credits pursuant to section 42 of the Internal Revenue 

Code of 1986 (26 U.S.C. 42) and is not located in a qualified census tract (as such term is defined in subsection (d) 


cnoel on PRODPC60 with HEARING
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of such section 42), the rent for such unit may be established at any level that does not exceed the rent charged 

for comparable units in the building that also receive the 

low-income housing tax credit but do not have additional 

rental assistance, except that in the case of a contract unit 

that has been allocated low-income housing tax credits and 

for which the rent limitation pursuant to such section 42 is 

less than the amount that would otherwise be permitted 

under this subparagraph, the rent for such unit may, in the 

sole discretion of a public housing agency, be established at 

the higher section 8 rent, subject only to paragraph (10)(A). The rents established by housing assistance payment contracts pursuant to this paragraph may vary from the payment standards established by the public housing agency 

pursuant to paragraph (1)(B), but shall be subject to paragraph (10)(A). 

(I) RENT ADJUSTMENTS.—A housing assistance payments 

contract pursuant to this paragraph shall provide for rent 

adjustments, except that— (i) the adjusted rent for any unit assisted shall be 

reasonable in comparison with rents charged for comparable dwelling units in the private, unassisted, local 

market and may not exceed the maximum rent permitted under subparagraph (H), except that the contract may provide that the maximum rent permitted for 

a dwelling unit shall not be less than the initial rent 

for the dwelling unit under the initial housing assistance payments contract covering the unit; and 

* * * * * * * 

(J) TENANT SELECTION.—A public housing agency shall 

select families to receive project-based assistance pursuant 

to this paragraph from its waiting list for assistance under 

this subsection. Eligibility for such project-based assistance shall be subject to the provisions of section 16(b) that 

apply to tenant-based assistance. The agency 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. Any family who resides in a dwelling unit proposed to 

be assisted under this paragraph, or in a unit to be replaced by a proposed unit to be assisted under this paragraph shall be given an absolute preference for selection for 

placement in the proposed unit, if the family is otherwise 

eligible for assistance under this subsection. Any family 

that rejects an offer of project-based assistance under this 

paragraph or that is rejected for admission to a structure 

by the owner or manager of a structure assisted under this 

paragraph shall retain its place on the waiting list as if 

the offer had not been made. øThe owner or manager of a 

structure assisted under this paragraph shall not admit 

any family to a dwelling unit assisted under a contract 

pursuant to this paragraph other than a family referred by 

the public housing agency from its waiting list. Subject to 

its waiting list policies and selection preferences, a public 

housing agency may place on its waiting list a family reVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00079 Fmt 6659 Sfmt 6601 E:\HR\OC\HR216.XXX HR216

cnoel on PRODPC60 with HEARING
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ferred by the owner or manager of a structure and may 

maintain a separate waiting list for assistance under this 

paragraph, but only if all families on the agency’s waiting 

list for assistance under this subsection are permitted to 

place their names on the separate list.¿ A public housing 

agency may establish and utilize procedures for maintaining site-based waiting lists under which applicants may 

apply directly at, or otherwise designate to the public housing agency, the project or projects in which they seek to reside, except that all applicants on the waiting list of an 

agency for assistance under this subsection shall be permitted to place their names on such separate list. All such 

procedures shall comply with title VI of the Civil Rights Act 

of 1964, the Fair Housing Act, and other applicable civil 

rights laws. The owner or manager of a structure assisted 

under this paragraph shall not admit any family to a 

dwelling unit assisted under a contract pursuant to this 

paragraph other than a family referred by the public housing agency from its waiting list, or a family on a site-based 

waiting list that complies with the requirements of this 

subparagraph. A public housing agency shall fully disclose 

to each applicant each option in the selection of a project 

in which to reside that is available to the applicant. 

* * * * * * * 

(L) USE IN COOPERATIVE HOUSING AND ELEVATOR BUILD- INGS.—A public housing agency may enter into a housing 

assistance payments contract under this paragraph with respect to—

(i) dwelling units in cooperative housing; 

(ii) notwithstanding subsection (c), dwelling units in 

a high-rise elevator project, including such a project 

that is occupied by families with children, without review and approval of the contract by the Secretary. 

(M) REVIEWS.—

(i) SUBSIDY LAYERING.—A subsidy layering review in 

accordance with section 102(d) of the Department of 

Housing and Urban Development Reform Act of 1989 

(42 U.S.C. 3545(d)) shall not be required for assistance 

under this subparagraph in the case of a housing assistance payments contract for an existing structure, or 

if a subsidy layering review has been conducted by the 

applicable State or local agency. 

(ii) ENVIRONMENTAL REVIEW.—A public housing 

agency shall not be required to undertake any environmental review before entering into a housing assistance 

payments contract under this paragraph for an existing 

structure, except to the extent such a review is otherwise required by law or regulation. 

(N) LEASES AND TENANCY.—Assistance provided under 

this paragraph shall be subject to the provisions of paragraph (7), except that subparagraph (A) of such paragraph 

shall not apply. 

* * * * * * * 

(21) PERFORMANCE ASSESSMENTS.—


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(A) ESTABLISHMENT.—The Secretary shall, by regulation, 

establish standards and procedures for assessing the performance of public housing agencies in carrying out the 

programs for tenant-based rental assistance under this subsection and for homeownership assistance under subsection 

(y). 

(B) CONTENTS.—The standards and procedures under 

this paragraph shall provide for assessment of the performance of public housing agencies in the following areas: 

(i) Quality of dwelling units obtained using such assistance. 

(ii) Extent of utilization of assistance amounts provided to the agency and of authorized vouchers. 

(iii) Timeliness and accuracy of reporting by the 

agency to the Secretary. 

(iv) Effectiveness in carrying out policies to achieve 

deconcentration of poverty. 

(v) Reasonableness of rent burdens, consistent with 

public housing agency responsibilities under section 

8(o)(1)(E)(iii). 

(vi) Accurate rent calculations and subsidy payments. 

(vii) Effectiveness in carrying out family self-sufficiency activities. 

(viii) Timeliness of actions related to landlord participation 

(ix) Such other areas as the Secretary considers appropriate. 

(C) PERIODIC ASSESSMENT.—Using the standards and 

procedures established under this paragraph, the Secretary 

shall conduct an assessment of the performance of each 

public housing agency carrying out a program referred to 

in subparagraph (A) and shall submit a report to the Congress regarding the results of each such assessment. 

(q) ADMINISTRATIVE FEES.— (1) FEE FOR ONGOING COSTS OF ADMINISTRATION.— (A) * * * 

ø(B) FISCAL YEAR 1999.— ø(i) CALCULATION.—For fiscal year 1999, the fee for 

each month for which a dwelling unit is covered by an 

assistance contract shall be— ø(I) in the case of a public housing agency that, 

on an annual basis, is administering a program 

for not more than 600 dwelling units, 7.65 percent 

of the base amount; and 

ø(II) in the case of an agency that, on an annual 

basis, is administering a program for more than 

600 dwelling units (aa) for the first 600 units, 7.65 

percent of the base amount, and (bb) for any additional dwelling units under the program, 7.0 percent of the base amount. 

ø(ii) BASE AMOUNT.—For purposes of this subparagraph, the base amount shall be the higher of— ø(I) the fair market rental established under 

section 8(c) of this Act (as in effect immediately 


cnoel on PRODPC60 with HEARING
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before the effective date under section 503(a) of 

the Quality Housing and Work Responsibility Act 

of 1998) for fiscal year 1993 for a 2-bedroom existing rental dwelling unit in the market area of the 

agency, and 

ø(II) the amount that is the lesser of (aa) such 

fair market rental for fiscal year 1994, or (bb) 

103.5 percent of the amount determined under 

clause (i), 

adjusted based on changes in wage data or other objectively measurable data that reflect the costs of administering the program, as determined by the Secretary. 

The Secretary may require that the base amount be 

not less than a minimum amount and not more than 

a maximum amount. 

ø(C) SUBSEQUENT FISCAL YEARS.—For subsequent fiscal 

years, the Secretary shall publish a notice in the Federal 

Register, for each geographic area, establishing the 

amount of the fee that would apply for public housing 

agencies administering the program, based on changes in 

wage data or other objectively measurable data that reflect 

the costs of administering the program, as determined by 

the Secretary.¿ 

(B) CALCULATION.—The fee under this subsection shall—

(i) be payable to each public housing agency for each 

month for which a dwelling unit is covered by an assistance contract; 

(ii) until superseded through subsequent rulemaking, 

be based on the per-unit fee payable to the agency in 

fiscal year 2003, updated for each subsequent year as 

specified in subsection (iv); 

(iii) include an amount for the cost of issuing voucher to new participants; 

(iv) be updated each year using an index of changes 

in wage data or other objectively measurable data that 

reflect the costs of administering the program for such 

assistance, as determined by the Secretary; and 

(v) include an amount for the cost of family self-sufficiency coordinators, as provided in section 23(h)(1). 

(C) PUBLICATION.—The Secretary shall cause to be published in the Federal Register the fee rate for each geographic area. 

* * * * * * * 

(4) APPLICABILITY.—This subsection shall apply to fiscal year 

ø1999¿ 2007 and fiscal years thereafter. 

(r) PORTABILITY.—(1) * * * 

(2) The public housing agency having authority with respect to 

the dwelling unit to which a family moves under this subsection 

shall have the responsibility of carrying out the provisions of this 

subsection with respect to the family. The agency shall absorb the 

family into its program for voucher assistance under this section 

and shall have priority to receive additional funding from the SecVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00082 Fmt 6659 Sfmt 6601 E:\HR\OC\HR216.XXX HR216

cnoel on PRODPC60 with HEARING
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retary for the housing assistance provided for such family from 

amounts made available pursuant to subsection (dd)(4)(B). 

* * * * * * * 

(t) ENHANCED VOUCHERS.— (1) IN GENERAL.—Enhanced voucher assistance under this 

subsection for a family shall be voucher assistance under subsection (o), except that under such enhanced voucher assistance—

(A) * * * 

(B) the assisted family may elect to remain in the same 

project in which the family was residing on the date of the 

eligibility event for the project, regardless of unit and family size standards normally used by the administering 

agency (except that tenants may be required to move to 

units of appropriate size if available on the premises), and 

if, during any period the family makes such an election 

and continues to so reside, the rent for the dwelling unit 

of the family in such project exceeds the applicable payment standard established pursuant to subsection (o) for 

the unit, the amount of rental assistance provided on behalf of the family shall be determined using a payment 

standard that is equal to the rent for the dwelling unit (as 

such rent may be increased from time-to-time), subject to 

paragraph (10)(A) of subsection (o) and any other reasonable limit prescribed by the Secretary, except that a limit 

shall not be considered reasonable for purposes of this subparagraph if it adversely affects such assisted families; 

* * * * * * * 

(D) if the øincome¿ annual adjusted income of the assisted family declines to a significant extent, the percentage of øincome¿ annual adjusted income paid by the family for rent shall not exceed the greater of 30 percent or 

the percentage of øincome¿ annual adjusted income paid 

at the time of the eligibility event for the project. 

* * * * * * * 

(y) HOMEOWNERSHIP OPTION.—

(1) * * * 

* * * * * * * 

(7) DOWNPAYMENT ASSISTANCE.— ø(A) AUTHORITY.—A public housing agency may, in lieu 

of providing monthly assistance payments under this subsection on behalf of a family eligible for such assistance 

and at the discretion of the public housing agency, provide 

assistance for the family in the form of a single grant to 

be used only as a contribution toward the downpayment 

required in connection with the purchase of a dwelling for 

fiscal year 2000 and each fiscal year thereafter to the extent provided in advance in appropriations Acts. 

ø(B) AMOUNT.—The amount of a downpayment grant on 

behalf of an assisted family may not exceed the amount 

that is equal to the sum of the assistance payments that 

would be made during the first year of assistance on behalf 


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of the family, based upon the income of the family at the 

time the grant is to be made.¿ 

(A) IN GENERAL.—Subject to the provisions of this paragraph, in the case of a family on whose behalf rental assistance under section 8(o) has been provided for a period of 

not less than 12 months prior to the date of receipt of 

downpayment assistance under this paragraph, a public 

housing agency may, in lieu of providing monthly assistance payments under this subsection on behalf of a family 

eligible for such assistance and at the discretion of the 

agency, provide a downpayment assistance grant in accordance with subparagraph (B). 

(B) GRANT REQUIREMENTS.—A downpayment assistance 

grant under this paragraph—

(i) shall be used by the family only as a contribution 

toward the downpayment and reasonable and customary closing costs required in connection with the 

purchase of a home; 

(ii) shall be in the form of a single one-time grant; 

and 

(iii) may not exceed $10,000. 

(C) NO EFFECT ON OBTAINING OUTSIDE SOURCES FOR

DOWNPAYMENT ASSISTANCE.—This Act may not be construed to prohibit a public housing agency from providing 

downpayment assistance to families from sources other 

than a grant provided under this Act, or as determined by 

the public housing agency. 

* * * * * * * 

ø(dd) TENANT-BASED CONTRACT RENEWALS.—Subject to amounts 

provided in appropriation Acts, starting in fiscal year 1999, the 

Secretary shall renew all expiring tenant-based annual contribution contracts under this section by applying an inflation factor 

based on local or regional factors to an allocation baseline. The allocation baseline shall be calculated by including, at a minimum, 

amounts sufficient to ensure continued assistance for the actual 

number of families assisted as of October 1, 1997, with appropriate 

upward adjustments for incremental assistance and additional families authorized subsequent to that date.¿ 

(dd) TENANT-BASED VOUCHERS.— (1) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated, for each of fiscal years 2008 through 

2012, such sums as may be necessary for tenant-based assistance under subsection (o) for the following purposes: 

(A) To renew all expiring annual contributions contracts 

for tenant-based rental assistance. 

(B) To provide tenant-based rental assistance for—

(i) relocation and replacement of housing units that 

are demolished or disposed of pursuant to the Omnibus 

Consolidated Rescissions and Appropriations Act of 

1996 (Public Law 104–134); 

(ii) conversion of section 23 projects to assistance 

under this section; 

(iii) the family unification program under subsection 

(x) of this section; 


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(iv) relocation of witnesses in connection with efforts 

to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution 

agency; 

(v) enhanced vouchers authorized under subsection 

(t) of this section; 

(vi) vouchers in connection with the HOPE VI program under section 24; 

(vii) demolition or disposition of public housing units 

pursuant to section 18 of the United States Housing 

Act of 1937 (42 U.S.C. 1437p); 

(viii) mandatory and voluntary conversions of public 

housing to vouchers, pursuant to sections 33 and 22 of 

the United States Housing Act of 1937, respectively (42 

U.S.C. 1437z–5, 1437t); 

(ix) vouchers necessary to comply with a consent decree or court order; 

(x) vouchers to replace dwelling units that cease to 

receive project-based assistance under subsection (b), 

(c), (d), (e), or (v) of this section; 

(xi) tenant protection assistance, including replacement and relocation assistance; and 

(xii) emergency voucher assistance for the protection 

of victims of domestic violence, dating violence, sexual 

assault, or stalking. 

Subject only to the availability of sufficient amounts provided in appropriation Acts, the Secretary shall provide 

tenant-based rental assistance to replace all dwelling units 

that cease to be available as assisted housing as a result 

of clause (i), (ii), (v), (vi), (vii), (viii), or (x). 

(2) ALLOCATION OF RENEWAL FUNDING AMONG PUBLIC HOUSING AGENCIES.—

(A) From amounts appropriated for each year pursuant 

to paragraph (1)(A), the Secretary shall provide renewal 

funding for each public housing agency— (i) based on leasing and cost data from the preceding 

calendar year, as adjusted by an annual adjustment 

factor to be established by the Secretary, which shall be 

established using the smallest geographical areas for 

which data on changes in rental costs are annually 

available; 

(ii) by making any adjustments necessary to provide 

for the first-time renewal of vouchers funded under 

paragraph (1)(B); 

(iii) by making any adjustments necessary for full 

year funding of vouchers ported in the prior calendar 

year under subsection (r)(2); and 

(iv) by making such other adjustments as the Secretary considers appropriate, including adjustments 

necessary to address changes in voucher utilization 

rates and voucher costs related to natural and other 

major disasters. 

(B) LEASING AND COST DATA.—For purposes of subparagraph (A)(i), leasing and cost data shall be calculated annually by using the average for the preceding calendar 


cnoel on PRODPC60 with HEARING
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year. Such leasing and cost data shall be adjusted to include vouchers that were set aside under a commitment to 

provide project-based assistance under subsection (o)(13) 

and to exclude amounts funded through advances under 

paragraph (3). Such leasing and cost data shall not include 

funds not appropriated for tenant-based assistance under 

section 8(o), unless the agency’s funding was prorated in 

the prior year and the agency used other funds to maintain 

vouchers in use. 

(C) OVERLEASING.—For the purpose of determining allocations under subsection (A)(i), the leasing rate calculated 

for the prior calendar year may exceed an agency’s authorized voucher level, except that such calculation in 2009 

shall not include amounts resulting from a leasing rate in 

excess of 103 percent of an agency’s authorized vouchers in 

2008 which results from the use of accumulated amounts, 

as referred to in paragraph (4)(A). 

(D) MOVING TO WORK; HOUSING INNOVATION PROGRAM.—

Notwithstanding subparagraphs (A) and (B), each public 

housing agency participating at any time in the moving to 

work demonstration under section 204 of the Departments 

of Veterans Affairs and Housing and Urban Development, 

and Independent Agencies Appropriations Act, 1996 (42 

U.S.C. 1437f note) or in the housing innovation program 

under section 36 of this Act shall be funded pursuant to its 

agreement under such program and shall be subject to any 

pro rata adjustment made under subparagraph (E)(i). 

(E) PRO RATA ALLOCATION.—

(i) INSUFFICIENT FUNDS.—To the extent that amounts 

made available for a fiscal year are not sufficient to 

provide each public housing agency with the full allocation for the agency determined pursuant to subparagraphs (A) and (D), the Secretary shall reduce such allocation for each agency on a pro rata basis, except 

that renewal funding of enhanced vouchers under section 8(t) shall not be subject to such proration. 

(ii) EXCESS FUNDS.—To the extent that amounts 

made available for a fiscal year exceed the amount necessary to provide each housing agency with the full allocation for the agency determined pursuant to subparagraphs (A) and (D), such excess amounts shall be 

used for the purposes specified in subparagraphs (B) 

and (C) of paragraph (4). 

(F) PROMPT FUNDING ALLOCATION.—The Secretary shall 

allocate all funds under this subsection for each year before 

the latter of (i) February 15, or (ii) the expiration of the 45- 

day period beginning upon the enactment of the appropriations Act funding such renewals. 

(3) ADVANCES.—

(A) AUTHORITY.—During the last 3 months of each calendar year, the Secretary shall provide amounts to any 

public housing agency, at the request of the agency, in an 

amount up to two percent of the allocation for the agency 

for such calendar year, subject to subparagraph (C). 


cnoel on PRODPC60 with HEARING
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(B) USE.—Amounts advanced under subparagraph (A) 

may be used to pay for additional voucher costs, including 

costs related to temporary overleasing. 

(C) USE OF PRIOR YEAR AMOUNTS.—During the last 3 

months of a calendar year, if amounts previously provided 

to a public housing agency for tenant-based assistance for 

such year or for previous years remain unobligated and 

available to the agency— (i) the agency shall exhaust such amounts to cover 

any additional voucher costs under subparagraph (B) 

before amounts advanced under subparagraph (A) may 

be so used; and 

(ii) the amount that may be advanced under subparagraph (A) to the agency shall be reduced by an 

amount equal to the total of such previously provided 

and unobligated amounts. 

(D) REPAYMENT.—Amounts advanced under subparagraph (A) in a calendar year shall be repaid to the Secretary in the subsequent calendar year by reducing the 

amounts made available for such agency for such subsequent calendar year pursuant to allocation under paragraph (2) by an amount equal to the amount so advanced 

to the agency. 

(4) RECAPTURE.— (A) IN GENERAL.—The Secretary shall recapture, from 

amounts provided under the annual contributions contract 

for a public housing agency for a calendar year, all accumulated amounts allocated under paragraph (2) and from 

previous years that are unused by the agency at the end of 

each calendar year except— (i) with respect to the recapture under this subparagraph at the end of 2007, an amount equal to one 

twelfth the amount allocated to the public housing 

agency for such year pursuant to paragraph (2)(A); and 

(ii) with respect to the recapture under this subparagraph at the end of each of 2008, 2009, 2010, and 

2011, an amount equal to 5 percent of such amount allocated to the agency for such year. Notwithstanding 

any other provision of law, each public housing agency 

may retain all amounts not authorized to be recaptured 

under this subparagraph, and may use such amounts 

for all authorized purposes. 

(B) REALLOCATION.—Not later than May 1 of each calendar year, the Secretary shall—

(i) calculate the aggregate unused amounts for the 

preceding year recaptured pursuant to subparagraph 

(A); 

(ii) set aside and make available such amounts as 

the Secretary considers appropriate to reimburse public 

housing agencies for increased costs related to portability and family self-sufficiency activities during 

such year; and 

(iii) reallocate all remaining amounts among public 

housing agencies, with priority given based on the extent to which an agency has utilized the amount alloVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00087 Fmt 6659 Sfmt 6603 E:\HR\OC\HR216.XXX HR216

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cated under paragraph (2) for the agency to serve eligible families. 

(C) USE.—Amounts reallocated to a public housing agency pursuant to subparagraph (B)(iii) may be used only to 

increase voucher leasing rates as provided under paragraph (2)(C). 

* * * * * * * 

ELIGIBILITY FOR ASSISTED HOUSING

SEC. 16. (a) INCOME ELIGIBILITY FOR PUBLIC HOUSING.— (1) * * * 

(2) PHA INCOME MIX.— (A) TARGETING.—Except as provided in paragraph (4), of 

the public housing dwelling units of a public housing agency made available for occupancy in any fiscal year by eligible families, not less than 40 percent shall be occupied by 

families whose incomes at the time of commencement of 

occupancy do not exceed the higher of (i) the poverty line 

(as such term is defined in section 673 of the Omnibus 

Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such section) applicable to a 

family of the size involved, or (ii) 30 percent of the area 

median income, as determined by the Secretary with adjustments for smaller and larger families; except that the 

Secretary may establish income ceilings higher or lower 

than 30 percent of the area median income on the basis of 

the Secretary’s findings that such variations are necessary 

because of unusually high or low family incomes; and except that clause (i) of this sentence shall not apply in the 

case of families residing in Puerto Rico or any other territory or possession of the United States. 

* * * * * * * 

(b) INCOME ELIGIBILITY FOR TENANT-BASED SECTION 8 ASSISTANCE.—

(1) IN GENERAL.—Of the families initially provided tenantbased assistance under section 8 by a public housing agency in 

any fiscal year, not less than 75 percent shall be families 

whose incomes do not exceed the higher of (A) the poverty line 

(as such term is defined in section 673 of the Omnibus Budget 

Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such section) applicable to a family of the size 

involved, or (B) 30 percent of the area median income, as determined by the Secretary with adjustments for smaller and 

larger families; except that the Secretary may establish income 

ceilings higher or lower than 30 percent of the area median income on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family 

incomes; and except that clause (A) of this sentence shall not 

apply in the case of families residing in Puerto Rico or any 

other territory or possession of the United States. 

* * * * * * * 

(c) INCOME ELIGIBILITY FOR PROJECT-BASED SECTION 8 ASSISTANCE.—


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(1) * * * 

* * * * * * * 

(3) TARGETING.—For each project assisted under a contract 

for project-based assistance, of the dwelling units that become 

available for occupancy in any fiscal year that are assisted 

under the contract, not less than 40 percent shall be available 

for leasing only by families whose incomes at the time of commencement of occupancy do not exceed the higher of (A) the 

poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such section) applicable to a family 

of the size involved, or (B) 30 percent of the area median income, as determined by the Secretary with adjustments for 

smaller and larger families; except that the Secretary may establish income ceilings higher or lower than 30 percent of the 

area median income on the basis of the Secretary’s findings 

that such variations are necessary because of unusually high 

or low family incomes; and except that clause (A) of this sentence shall not apply in the case of families residing in Puerto 

Rico or any other territory or possession of the United States. 

* * * * * * * 

(e) ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.— (1) LIMITATION ON ASSETS.—Subject to paragraph (3) and 

notwithstanding any other provision of this Act, a dwelling unit 

assisted under this Act may not be rented and assistance under 

this Act may not be provided, either initially or at each recertification of family income, to any family— (A) whose net family assets exceed $100,000, as such 

amount is adjusted annually by applying an inflationary 

factor as the Secretary considers appropriate; or 

(B) who has a present ownership interest in, and a legal 

right to reside in, real property that is suitable for occupancy as a residence, except that the prohibition under this 

subparagraph shall not apply to—

(i) any property for which the family is receiving assistance under this Act; 

(ii) any person that is a victim of domestic violence; 

or 

(iii) any family that is making a good faith effort to 

sell such property. 

(2) NET FAMILY ASSETS.—

(A) IN GENERAL.—For purposes of this subsection, the 

term ‘‘net family assets’’ means, for all members of the 

household, the net cash value of all assets after deducting 

reasonable costs that would be incurred in disposing of real 

property, savings, stocks, bonds, and other forms of capital 

investment. Such term does not include interests in Indian 

trust land, equity accounts in homeownership programs of 

the Department of Housing and Urban Development, or 

Family Self Sufficiency accounts. 

(B) EXCLUSIONS.—Such term does not include—

(i) the value of personal property, except for items of 

personal property of significant value, as the public 

housing agency may determine; 


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(ii) the value of any retirement account; 

(iii) any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or 

other breach of duty owed to a member of the family 

and arising out of law, that resulted in a member of 

the family being disabled (under the meaning given 

such term in section 1614 of the Social Security Act (42 

U.S.C. 1382c)); and 

(iv) the value of any Coverdell education savings account under section 530 of the Internal Revenue Code 

of 1986 or any qualified tuition program under section 

529 of such Code. 

(C) TRUST FUNDS.—In cases where a trust fund has been 

established and the trust is not revocable by, or under the 

control of, any member of the family or household, the 

value of the trust fund shall not be considered an asset of 

a family if the fund continues to be held in trust. Any income distributed from the trust fund shall be considered income for purposes of section 3(b) and any calculations of 

annual family income, except in the case of medical expenses for a minor. 

(D) SELF-CERTIFICATION.—A public housing agency or 

owner may determine the net assets of a family, for purposes of this section, based on the amounts reported by the 

family at the time the agency or owner reviews the family’s 

income. 

(3) COMPLIANCE FOR PUBLIC HOUSING DWELLING UNITS.— When recertifying family income with respect to families residing in public housing dwelling units, a public housing agency 

may, in the discretion of the agency and only pursuant to a policy that is set forth in the public housing agency plan under 

section 5A for the agency, choose not to enforce the limitation 

under paragraph (1). 

(4) AUTHORITY TO DELAY EVICTIONS.—In the case of a family 

residing in a dwelling unit assisted under this Act who does not 

comply with the limitation under paragraph (1), the public 

housing agency or project owner may delay eviction or termination of the family based on such noncompliance for a period 

of not more than 6 months. 

* * * * * * * 

SEC. 23. FAMILY SELF-SUFFICIENCY PROGRAM. 

(a) * * * 

* * * * * * * 

(h) ALLOWABLE PUBLIC HOUSING AGENCY ADMINISTRATIVE FEES

AND COSTS.— ø(1) SECTION 8 FEES.—The Secretary shall establish a fee 

under section 8(q) for the costs incurred in administering the 

provision of certificate and voucher assistance under section 8 

through the self-sufficiency program under this section. The fee 

shall be the fee in effect under such section on June 1, 1990, 

except that for purposes of the fee under this paragraph the 

applicable dollar amount for preliminary expenses under section 8(q)(2)(A)(i) shall, subject to approval in appropriations 

Acts, be $300. Upon the submission by the Comptroller GenVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00090 Fmt 6659 Sfmt 6601 E:\HR\OC\HR216.XXX HR216

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eral of the United States of the report required under section 

554(b) of the Cranston-Gonzalez National Affordable Housing 

Act, the Secretary shall revise the fee under this paragraph, 

taking into consideration the report of the Comptroller General.¿ 

(1) SECTION 8 FEES.—

(A) IN GENERAL.—The Secretary shall establish a fee 

under section 8(q) for the costs incurred in administering 

the self-sufficiency program under this section to assist 

families receiving voucher assistance through section 8(o). 

(B) ELIGIBILITY FOR FEE.—The fee shall provide funding 

for family self-sufficiency coordinators as follows: 

(i) BASE FEE.—A public housing agency serving 25 or 

more participants in the family self-sufficiency program under this section shall receive a fee equal to the 

costs of employing one full-time family self-sufficiency 

coordinator. An agency serving fewer than 25 such participants shall receive a prorated fee. 

(ii) ADDITIONAL FEE.—An agency that meets minimum performance standards shall receive an additional fee sufficient to cover the costs of employing a 

second family self-sufficiency coordinator if the agency 

has 75 or more participating families, and a third such 

coordinator if it has 125 or more participating families. 

(iii) PREVIOUSLY FUNDED AGENCIES.—An agency that 

received funding from the Department of Housing and 

Urban Development for more than three such coordinators in any of fiscal years 1998 through 2007 shall receive funding for the highest number of coordinators 

funded in a single fiscal year during that period, provided they meet applicable size and performance standards. 

(iv) INITIAL YEAR.—For the first year in which a public housing agency exercises its right to develop an family self-sufficiency program for its residents, it shall be 

entitled to funding to cover the costs of up to one family 

self-sufficiency coordinator, based on the size specified 

in its action plan for such program. 

(v) STATE AND REGIONAL AGENCIES.—For purposes of 

calculating the family self-sufficiency portion of the administrative fee under this subparagraph, each administratively distinct part of a State or regional public 

housing agency shall be treated as a separate agency. 

(vi) DETERMINATION OF NUMBER OF COORDINATORS.—In determining whether a public housing agency meets a specific threshold for funding pursuant to 

this paragraph, the number of participants being 

served by the agency in its family self-sufficiency program shall be considered to be the average number of 

families enrolled in such agency’s program during the 

course of the most recent fiscal year for which the Department of Housing and Urban Development has 

data. 


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(C) PRORATION.—If insufficient funds are available in 

any fiscal year to fund all of the coordinators authorized 

under this section, the first priority shall be given to funding one coordinator at each agency with an existing family 

self-sufficiency program. The remaining funds shall be prorated based on the number of remaining coordinators to 

which each agency is entitled under this subparagraph. 

(D) RECAPTURE.—Any fees allocated under this subparagraph by the Secretary in a fiscal year that have not been 

spent by the end of the subsequent fiscal year shall be recaptured by the Secretary and shall be available for providing additional fees pursuant to subparagraph (B)(ii). 

(E) PERFORMANCE STANDARDS.—Within six months after 

the date of the enactment of this paragraph, the Secretary 

shall publish a proposed rule specifying the performance 

standards applicable to funding under clauses (ii) and (iii) 

of subparagraph (B). Such standards shall include requirements applicable to the leveraging of in-kind services and 

other resources to support the goals of the family self-sufficiency program. 

(F) DATA COLLECTION.—Public housing agencies receiving funding under this paragraph shall collect and report 

to the Secretary, in such manner as the Secretary shall require, information on the performance of their family selfsufficiency programs. 

(G) EVALUATION.— The Secretary shall conduct a formal 

and scientific evaluation of the effectiveness of well-run 

family self-sufficiency programs, using random assignment 

of participants to the extent practicable. Not later than the 

expiration of the 4-year period beginning upon the enactment of this paragraph, the Secretary shall submit an interim evaluation report to the Congress. Not later than the 

expiration of the 8-year period beginning upon such enactment, the Secretary shall submit a final evaluation report 

to the Congress. There is authorized to be appropriated 

$10,000,000 to carry out the evaluation under this subparagraph. 

(H) INCENTIVES FOR INNOVATION AND HIGH PERFORMANCE.—The Secretary may reserve up to 10 percent of the 

amounts made available for administrative fees under this 

paragraph to provide support to or reward family self-sufficiency programs that are particularly innovative or highly 

successful in achieving the goals of the program. 

* * * * * * * 

SEC. 36. HOUSING INNOVATION PROGRAM. 

(a) PURPOSE.—The purpose of the program under this section is 

to provide public housing agencies and the Secretary the flexibility 

to design and evaluate innovative approaches to providing housing 

assistance that—

(1) increase housing opportunities for low-income families, including preventing homelessness, rehabilitate or replace housing at risk of physical deterioration or obsolescence, and develop 

additional affordable housing; 


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(2) leverage other Federal, State, and local funding sources, 

including the low-income housing tax credit program, to expand 

and preserve affordable housing opportunities, including public 

housing; 

(3) provide financial incentives and other support mechanisms to families to obtain employment and increase earned income; 

(4) test alternative rent-setting policies to determine whether 

rent determinations can be simplified and administrative cost 

savings can be realized while protecting extremely low- and very 

low-income families from increased rent burdens; 

(5) are subject to rigorous evaluation to test the effectiveness 

of such innovative approaches; and 

(6) are developed with the support of the local community and 

with the substantial participation of affected residents. 

(b) PROGRAM AUTHORITY.—

(1) SCOPE.—The Secretary shall carry out a housing innovation program under this section under which the Secretary may 

designate not more than 60 public housing agencies to participate, at any one time, in the housing innovation program, in accordance with subsections (c) and (d), except that, in addition 

to such 60 agencies, the Secretary may designate an additional 

20 agencies to participate in the program under the terms of 

subsection (h). 

(2) DURATION.—The Secretary may carry out the housing innovation program under this section only during the 10-year period beginning on the date of the enactment of the Section 8 

Voucher Reform Act of 2007. 

(c) PARTICIPATION OF EXISTING MTW AGENCIES.—

(1) EXISTING MTW AGENCIES.—Subject to the requirements of 

paragraph (2), all existing MTW agencies shall be designated to 

participate in the program. 

(2) CONDITIONS OF PARTICIPATION.—The Secretary shall approve and transfer into the housing innovation program under 

this section each existing MTW agency that the Secretary determines is not in default under such agreement and which the 

Secretary also determines is meeting the goals and objectives of 

its moving to work plan. Each such agency shall, within two 

years after the date of the enactment of the Section 8 Voucher 

Reform Act of 2007, make changes to its policies that were implemented before such date of enactment in order to comply 

with the requirements of this section. 

(d) ADDITIONAL AGENCIES.—

(1) PROPOSALS; SELECTION PROCESS.—In addition to agencies 

participating in the program pursuant to subsection (c), the 

Secretary shall, within 18 months after such date of enactment, 

select public housing agencies to participate in the program 

pursuant to a competitive process that meets the following requirements: 

(A) Any public housing agency may be selected to participate in the program, except that not more than 5 agencies 

that are near-troubled under the public housing assessment 

system and/or section 8 management assessment program 

may be selected, and except that any agency for which the 

Secretary has hired an alternative management entity for 


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such agency or has taken possession of all or any part of 

such agency’s public housing program shall not be eligible 

for participation. Any near-troubled public housing agency 

participating in the program shall remain subject to the requirements of this Act governing tenant rent contributions, 

eligibility, and continued participation, and may not adopt 

policies described in subsection (e)(4) (relating to rents and 

requirements for continued occupation and participation). 

(B) The process provides, to the extent possible based on 

eligible agencies submitting applications and taking into 

account existing MTW agencies participating pursuant to 

subsection (c), for representation among agencies selected of 

agencies having various characteristics, including both 

large and small agencies, agencies serving urban, suburban, and rural areas, and agencies in various geographical 

regions throughout the United States, and which may include the selection of agencies that only administer the 

voucher program under section 8(o). 

(C) Any agency submitting a proposal under this paragraph shall have provided notice to residents and the local 

community, not later than 30 days before the first of the 

two public meetings required under subparagraph (D). 

(D) The agency submitting a proposal shall hold two 

public meetings to receive comments on the agency’s proposed application, on the implications of changes under the 

proposal, and the possible impact on residents. 

(E) The process includes criteria for selection, as follows: 

(i) The extent to which the proposal generally identifies existing rules and regulations that impede achievement of the goals and objectives of the proposal and an 

explanation of why participation in the program is necessary to achieve such goals and objectives. 

(ii) The extent of commitment and funding for carrying out the proposal by local government agencies 

and nonprofit organizations, including the provision of 

additional funding and other services, and the extent of 

support for the proposal by residents, resident advisory 

boards, and members of the local community. 

(iii) The extent to which the agency has a successful 

history of implementing strategies similar to those set 

forth in the agency’s proposal. 

(iv) Whether the proposal pursues a priority strategy 

as specified in paragraph (2). In the case of any proposal utilizing a such a priority strategy, the proposal 

shall be evaluated based upon—

(I) the extent to which the proposal is likely to 

achieve the objectives of developing additional 

housing dwelling units affordable to extremely 

low-, very low-, and low-income families, and preserving, rehabilitating, or modernizing existing 

public housing dwelling units; or 

(II) the extent to which the proposal is likely to 

achieve the purposes of moving families toward 

economic self-sufficiency and increasing employment rates and wages of families without imposing 


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a significant rent burden on the lowest income 

families, as well as such of the additional purposes 

as may be identified in the proposal, which may 

include expanding housing choices utilizing coordinators for the family self-sufficiency program 

under section 23, making more effective use of program funds, and improving program management. 

(v) Such other factors as the Secretary may provide, 

in consultation with participating agencies, program 

stakeholders, and any entity conducting evaluations 

pursuant to subsection (f). 

(2) PRIORITY STRATEGIES.—For purposes of paragraph 

(1)(E)(iv), the following are priority strategies: 

(A) DEVELOPMENT, REHABILITATION, AND FINANCING.—A 

strategy of development of additional affordable housing 

dwelling units and/or a strategy for preservation and physical rehabilitation and modernization of existing public 

housing dwelling units. Such strategies may include innovative financing proposals, leveraging of non-public housing funds (including the low-income housing tax credit program), and combining of funds for assistance under sections 8 and 9. Each such proposal shall include detailed information about the strategies expected to be employed, an 

explanation of why participation in the program is necessary to employ such strategies, and numerical goals regarding the number of dwelling units to be developed, preserved, or rehabilitated. 

(B) RENT REFORMS.—A strategy to implement rent reforms, which shall be designed to help families increase 

their earned income through rent and other work incentives, and may also test the effectiveness of achieving administrative cost savings without increased rent burdens 

for extremely low- and very low-income families. 

(3) CONTRACT AMENDMENT.—After selecting agencies under 

this subsection, the Secretary shall promptly amend the applicable annual contributions contracts of such agencies to provide 

that—

(A) subject to subparagraph (B), such agencies may implement any policies and activities that are not inconsistent 

with this section without specifying such policies and activities in such amendment and without negotiating or entering into any other agreements with the Secretary specifying such policies and activities; and 

(B) the activities to be implemented by an agency under 

the program in a given year shall be described in and subject to the requirements of the annual plan under subsection (e)(8). Upon the enactment of this section, any agency which has participated in the Moving to Work demonstration may, at its option, be subject to the provisions of 

this paragraph in lieu of any other agreement required by 

the Secretary for participation in the program. 

(4) MAINTAINING PARTICIPATION RATE.—If, at any time after 

the initial selection period under paragraph (1), the number of 

public housing agencies participating in the program under this 

section is fewer than 40, the Secretary shall promptly solicit apVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00095 Fmt 6659 Sfmt 6603 E:\HR\OC\HR216.XXX HR216

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plications from and select public housing agencies to participate 

in the program under the terms and conditions for application 

and selection provided in this section to increase the number of 

agencies participating in the program to 40. 

(e) PROGRAM REQUIREMENTS.— (1) PROGRAM FUNDS.— (A) IN GENERAL.—To carry out a housing innovation program under this section, the participating agency may use 

amounts provided to the agency from the Operating Fund 

under section 9(e), amounts provided to the agency from the 

Capital Fund under section 9(d), and amounts provided to 

the agency for voucher assistance under section 8(o). Such 

program funds may be used for any activities that are authorized by sections 8(o) or 9, or for other activities that are 

not inconsistent with this section, which shall include, 

without limitation— (i) providing capital and operating assistance, and 

financing for housing previously developed or operated 

pursuant to a contract between the Secretary and such 

agency; 

(ii) the acquisition, new construction, rehabilitation, 

financing, and provision of capital or operating assistance for low-income housing (including housing other 

than public housing) and related facilities, which may 

be for terms exceeding the term of the program under 

this section in order to secure other financing for such 

housing; 

(iii) costs of site acquisition and improvement, providing utility services, demolition, planning, and administration of activities under this paragraph; 

(iv) housing counseling for low-income families in 

connection with rental or homeownership assistance 

provided under the program; 

(v) safety, security, law enforcement, and anticrime 

activities appropriate to protect and support families 

assisted under the program; 

(vi) tenant-based rental assistance, which may include the project-basing of such assistance; and 

(vii) appropriate and reasonable financial assistance 

that is required to preserve low-income housing otherwise assisted under programs administered by the Secretary or under State or local low-income housing programs. 

(B) COMBINING FUNDS.—Notwithstanding any other provision of law, a participating agency may combine and use 

program funds for any activities authorized under this section, except that a participating agency may use funds provided for assistance under section 8(o) for activities other 

than those authorized under section 8(o) only if (i) in the 

calendar year prior to its participation in the program, the 

agency utilized not less than 95 percent of such funds allocated for that calendar year for such authorized activities 

or 95 percent of its authorized vouchers, including vouchers 

ported in to the agency and vouchers ported out; or (ii) after 

approval to participate in the program, the agency achieves 


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such utilization for a 12-month period. This subparagraph 

shall not apply to participating agencies approved by the 

Secretary to combine funds from sections 8 and 9 of the Act 

prior to enactment of this section. 

(2) USE OF PROGRAM FUNDS.—In carrying out the housing innovation program under this section, each participating agency 

shall continue to assist— (A) not less than substantially the same number of eligible low-income families under the program as it assisted in 

the base year for the agency; and 

(B) a comparable mix of families by family size, subject 

to adjustment to reflect changes in the agency’s waiting list, 

except that the Secretary may approve exceptions to such requirements for up to 3 years based on modernization or redevelopment activities proposed in an annual plan submitted and approved in accordance with paragraph (8). 

Determinations with respect to the number of families served 

shall be adjusted based on any allocation of additional vouchers under section 8(o) and to reflect any change in the percentage of program funds that a participating agency receives compared to the base year. 

(3) RETAINED PROVISIONS.—Notwithstanding any other provision of this section, families receiving assistance under this section shall retain the same rights of judicial review of agency action as they would otherwise have had if the agency were not 

participating in the program, and each participating agency 

shall comply with the following provisions of this Act: 

(A) Subsections (a)(2)(A) and (b)(1) of section 16 (relating 

to targeting for new admissions in the public housing and 

voucher programs). 

(B) Section 2(b) (relating to tenant representatives on the 

public housing agency board of directors). 

(C) Section 3(b)(2) (relating to definitions for the terms ‘‘low-income families’’ and ‘‘very low-income families’’). 

(D) Section 5(A)(e) (relating to the formation of and consultation with a resident advisory board). 

(E) Sections 6(f)(1) and 8(o)(8)(B) (relating to compliance 

of units assisted with housing quality standards or other 

codes). 

(F) Sections 6(c)(3), 6(c)(4)(i), and 8(o)(6)(B) (relating to 

rights of public housing applicants and existing procedural 

rights for applicants under section 8(o)). 

(G) Section 6(k) (relating to grievance procedures for public housing tenants) and comparable procedural rights for 

families assisted under section 8(o). 

(H) Section 6(l) (relating to public housing lease requirements), except that for units assisted both with program 

funds and low-income housing tax credits, the initial lease 

term may be less than 12 months if required to conform 

lease terms with such tax credit requirements. 

(I) Section 7 (relating to designation of housing for elderly and disabled households), except that a participating 

agency may make such designations(at initial designation 

or upon renewal) for a term of up to 5 years if the agency 

includes in its annual plan under paragraph (8) an analVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00097 Fmt 6659 Sfmt 6603 E:\HR\OC\HR216.XXX HR216

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ysis of the impact of such designations on affected households and such designation is subject to the program evaluation. Any participating agency with a designated housing 

plan that was approved under the moving to work demonstration may continue to operate under the terms of such 

plan for a term of 5 years (with an option to renew on the 

same terms for an additional 5 years) if it includes in its 

annual plan an analysis of the impact of such designations 

on affected households and is subject to evaluation under 

subsection (f). 

(J) Subparagraphs (C) through (E) of section 8(o)(7) (relating to lease requirements and eviction protections for 

families assisted with tenant-based assistance). 

(K) Subject to paragraph (1)(B) of this subsection, section 

8(o)(13)(B) (relating to a percentage limitation on projectbased assistance), except that for purposes of this subparagraph such section shall be applied by substituting ‘‘50 percent’’ for ‘‘20 percent’’. (L) Section 8(o)(13)(E) (relating to resident choice for tenants of units with project-based vouchers), except with respect to—

(i) in the case of agencies participating in the moving 

to work demonstration, any housing assistance payment contract entered into within 2 years after the enactment of this section; 

(ii) project-based vouchers that replace public housing units; 

(iii) not more than 10 percent of the vouchers available to the participating agency upon entering the 

housing innovation program under this section; and 

(iv) any project-based voucher program that is subject to evaluation under subsection (f). 

(M) Section 8(r) (relating to portability of voucher assistance), except that a participating agency may receive funding for portability obligations under section 8(dd) in the 

same manner as other public housing agencies. 

(N) Subsections (a) and (b) of section 12 (relating to payment of prevailing wages). 

(O) Section 18 (relating to demolition and disposition of 

public housing). 

(4) RENTS AND REQUIREMENTS FOR CONTINUED OCCUPANCY

OR PARTICIPATION.—

(A) BEFORE POLICY CHANGE.—Before adopting any policy 

pursuant to participation in the housing innovation program under this section that would make a material 

change to the requirements of this Act regarding tenant 

rents or contributions, or conditions of continued occupancy 

or participation, a participating agency shall complete each 

of the following actions: 

(i) The agency shall conduct an impact analysis of 

the proposed policy on families the agency is assisting 

under the program under this section and on applicants on the waiting list, including analysis of the incidence and severity of rent burdens greater than 30 percent of adjusted income on households of various sizes 


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and types and in various income tiers, that would result, if any, without application of the hardship provisions. The analysis with respect to applicants on the 

waiting list may be limited to demographic data provided by the applicable consolidated plan, information 

provided by the Secretary, and other generally available information. The proposed policy, including provisions for addressing hardship cases and transition provisions that mitigate the impact of any rent increases 

or changes in the conditions of continued occupancy or 

participation, and data from this analysis shall be 

made available for public inspection for at least 60 

days in advance of the public meeting described in 

clause (ii). 

(ii) The agency shall hold a public meeting regarding 

the proposed change, including the hardship provisions, which may be combined with a public meeting 

on the draft annual plan under paragraph (8) or the 

annual report under paragraph (9). 

(iii) The board of directors or other similar governing 

body of the agency shall approve the change in public 

session. 

(iv) The agency shall obtain approval from the Secretary of the annual plan or plan amendment. The Secretary may approve a plan or amendment containing a 

material change to the requirements of this Act regarding tenant rents or contributions, or conditions of continued occupancy or participation, only if the agency 

agrees that such policy may be included as part of the 

national evaluation. 

(B) AFTER POLICY CHANGE.—After adopting a policy described in subparagraph (A), a program agency shall complete each of the following actions: 

(i) The agency shall provide adequate notice to residents, which shall include a description of the changes 

in the public housing lease or participation agreement 

that may be required and of the hardship or transition 

protections offered. 

(ii) In the case of any additional requirements for 

continued occupancy or participation, the agency shall 

execute a lease addendum or participation agreement 

specifying the requirements applicable to both the resident and the agency. A resident may bring a civil action to enforce commitments of the agency made 

through the lease addendum or participation agreement. 

(iii) The agency shall reassess rent, subsidy level, 

and policies on program participation no less often 

than every two years, which shall include preparing a 

revised impact analysis, and make available to the 

public the results of such reassessment and impact 

analysis. The requirement under this clause may be 

met by sufficiently detailed interim reports, if any, by 

the national evaluating entity. 


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(iv) The agency shall include in the annual report 

under paragraph (8) information sufficient to describe 

any hardship requests, including the number and types 

of requests made, granted, and denied, the use of transition rules, and adverse impacts resulting from 

changes in rent or continued occupancy policies, including actions taken by the agency to mitigate such 

impacts and impacts on families no longer assisted 

under the program. 

(C) APPLICABILITY TO EXISTING MTW AGENCIES.—An existing MTW agency that, before the date of the enactment of 

this section, implemented material changes to the requirements of this Act regarding tenant rents or contributions, 

or conditions of continued occupancy or participation, as 

part of the moving to work demonstration shall not be subject to subparagraph (A) with regard to such previously implemented changes, but shall comply with the requirements 

of subparagraph (B)(ii) and provide the evaluation and impact analysis required by subparagraph (B)(iii) by the end 

of the second agency fiscal year ending after such date of 

enactment. 

(5) PROHIBITION AGAINST DECREASE IN PROGRAM FUNDS.—

The amount of program funds a participating agency receives 

shall not be diminished by its participation in the housing innovation program under this section. 

(6) SUBMISSION OF INFORMATION.—As part of the annual report required under subsection (g)(2), each participating agency 

shall submit information annually to the Secretary regarding 

families assisted under the program of the agency and comply 

with any other data submissions required by the Secretary for 

purposes of evaluation of the program under this section. 

(7) PUBLIC AND RESIDENT PARTICIPATION.—Each participating agency shall provide opportunities for resident and public participation in the annual plan under paragraph (8), as 

follows: 

(A) NOTICE TO RESIDENTS.—

(i) NOTICE.—Each year, the agency shall provide notice to the low-income families it serves under the programs authorized by this section as to the impact of 

proposed policy changes and program initiatives and of 

the schedule of resident advisory board and public 

meetings for the annual plan. 

(ii) MEETING.—The agency shall hold at least one 

meeting with the resident advisory board (including 

representatives of recipients of assistance under section 

8) to review the annual plan for each year. 

(B) PUBLIC MEETING.—With respect to each annual plan, 

the agency shall hold at least one annual public meeting to 

obtain comments on the plan, which may be combined with 

a meeting to review the annual report. In the case of any 

agency that administers, in the aggregate, more than 

15,000 public housing units and vouchers, the agency shall 

hold additional meetings in locations that promote attendance by residents and other stakeholders. 


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(C) PUBLIC AVAILABILITY.—Before adoption of any annual 

plan, and not less than 30 days before the public meeting 

required under subparagraph (A)(ii) with respect to the 

plan, the agency shall make the proposed annual plan 

available for public inspection. The annual plan shall be 

made available for public inspection not less than 30 days 

before approval by the board of directors (or other similar 

governing body) of the agency and shall remain publicly 

available. 

(D) BOARD APPROVAL.—Before submitting an annual 

plan or annual report to the Secretary, the plan or report, 

as applicable, shall be approved in a public meeting by the 

board of directors or other governing body of the agency. 

(8) ANNUAL PLAN.—

(A) REQUIREMENT.—For each year that a participating 

agency participates in the housing innovation program 

under this section, the agency shall submit to the Secretary, 

in lieu of all other planning requirements, an annual plan 

under this paragraph. 

(B) CONTENTS.—Each annual plan shall include the following information: 

(i) A list and description of all program initiatives 

and generally applicable policy changes, including references to affected provisions of law or the implementing regulations affected. 

(ii) A description and comparison of changes under 

the housing innovation program of the agency from the 

plan for such program for the preceding year. 

(iii) A description of property redevelopment or portfolio repositioning strategies and proposed changes in 

policies or uses of funds required to implement such 

strategies. 

(iv) Documentation of public and resident participation sufficient to comply with the requirements under 

paragraphs (4) and (7), including a copy of any recommendations submitted in writing by the resident advisory board of the agency and members of the public, 

a summary of comments, and a description of the manner in which the recommendations were addressed. 

(v) Certifications by the agency that— (I) the annual plan will be carried out in conformity with title VI of the Civil Rights Act of 

1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, title II of the Americans 

with Disabilities Act of 1990, and the rules, standards, and policies in the approved plan; 

(II) the agency will affirmatively further fair 

housing; and 

(III) the agency has complied and will continue 

to comply with its obligations under the national 

evaluation. 

(vi) A description of the agency’s local asset management strategy for public housing properties, which 

shall be in lieu of any other asset management, project 

based management or accounting, or other system of 


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allocating resources and costs to participating agency 

assets or cost centers that the Secretary may otherwise 

impose under this Act. 

(C) CHANGES.—If the agency proposes to make material 

changes in policies or initiatives in the plan during the 

year covered by the plan, the agency shall consult with the 

resident advisory board for the agency established pursuant 

to section 5A(e) and the public regarding such changes before their adoption. 

(D) APPROVAL PROCESS.— (i) TIMING.—The Secretary shall review and approve 

or disapprove each annual plan submitted to the Secretary within 45 days after such submission. 

(ii) STANDARDS FOR DISAPPROVAL.—The Secretary 

may disapprove a plan only if—

(I) the Secretary reasonably determines, based on 

information contained in the annual plan or annual report, that the agency is not in compliance 

with the requirements of this section; 

(II) the annual plan or most recent annual report is not consistent with other reliable information available to the Secretary; or 

(III) the annual plan or annual report or the 

agency’s activities under the program are not otherwise in accordance with applicable law. 

(iii) FAILURE TO DISAPPROVE.—If a submitted plan is 

not disapproved within 45 days after submission, the 

plan shall be considered to be approved for purposes of 

this section. The preceding sentence shall not preclude 

judicial review regarding such compliance pursuant to 

chapter 7 of title 5, United States Code, or an action 

regarding such compliance under section 1979 of the 

Revised Statutes of the United States (42 U.S.C. 1983). 

(f) EVALUATION OF PERFORMANCE.—

(1) IN GENERAL.—Not later than the expiration of the one-year 

period that begins upon selection under subsection (d) of at 

least half of the number of agencies able to participate in the 

program under this section, the Secretary shall conduct detailed 

evaluations of all public housing agencies participating in the 

program under this section— (A) to determine the level of success of each public housing agency in achieving the purposes of the program under 

subsection (a); and 

(B) to identify program models that can be replicated by 

other agencies to achieve such success. 

(2) REPORTS.—

(A) IN GENERAL.—The Secretary shall submit three reports to the Congress, as provided in subparagraph (B), 

evaluating the programs of all public housing agencies participating in the program under this section and all agencies participating in the moving to work demonstration. 

Each such report shall include findings and recommendations for any appropriate legislative action. 

(B) TIMING.—The reports under this paragraph shall include—


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(i) an initial report, which shall be submitted before 

the expiration of the 3-year period beginning on the 

date of the enactment of the Section 8 Voucher Reform 

Act of 2007; 

(ii) an interim report, which shall be submitted before the expiration of the 5-year period beginning on 

such date of enactment; and 

(iii) a final report, which shall be submitted before 

the expiration of the 10-year period beginning on such 

date of enactment. 

(3) EVALUATING ENTITY.— The Secretary may contract out the 

responsibilities under this paragraphs (1) and (2) to an independent entity that is qualified to perform such responsibilities. 

(4) PERFORMANCE MEASURES.—The Secretary or the evaluating entity, as applicable, shall establish performance measures, which may include—

(A) a baseline performance level against which program 

activities may be evaluated; and 

(B) performance measures for—

(i) increasing housing opportunities for extremely 

low-, very low-, and low-income families, replacing or 

rehabilitating housing at risk of physical deterioration 

or obsolescence, and developing additional affordable 

housing; 

(ii) leveraging other Federal, State, and local funding sources, including the low-income housing tax credit program, to expand and preserve affordable housing 

opportunities, including public housing; 

(iii) moving families to self-sufficiency and increasing employment rates and wages of families without 

imposing a significant rent burden on the families having the lowest incomes; 

(iv) reducing administrative costs; and 

(v) any other performance measures that the Secretary or evaluating entity, as applicable, may establish. 

(g) RECORDKEEPING, REPORTS, AND AUDITS.—

(1) RECORDKEEPING.—Each public housing agency participating in the program under this section shall keep such 

records as the Secretary may prescribe as reasonably necessary 

to disclose the amounts and the disposition of amounts under 

the program, to ensure compliance with the requirements of this 

section, and to measure performance. 

(2) REPORTS.—In lieu of all other reporting requirements, 

each such agency participating in the program shall submit to 

the Secretary an annual report in a form and at a time specified by the Secretary. Each annual report shall include the following information: 

(A) A description, including an annual consolidated financial report, of the sources and uses of funds of the agency under the program, which shall account separately for 

funds made available under section 8 and subsections (d) 

and (e) of section 9, and shall compare the agency’s actions 

under the program with its annual plan for the year. 


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(B) An annual audit that complies with the requirements 

of Circular A-133 of the Office of Management and Budget, 

including the OMB Compliance Supplement. 

(C) A description of each hardship exception requested 

and granted or denied, and of the use of any transition 

rules. 

(D) Documentation of public and resident participation 

sufficient to comply with the requirements under paragraph 

(7). 

(E) A comparison of income and the sizes and types of 

families assisted by the agency under the program compared to those assisted by the agency in the base year. 

(F) Every two years, an evaluation of rent policies, subsidy level policies, and policies on program participation. 

(G) A description of any ongoing local evaluations and 

the results of any local evaluations completed during the 

year. 

(3) ACCESS TO DOCUMENTS BY SECRETARY.—The Secretary 

shall have access for the purpose of audit and examination to 

any books, documents, papers, and records that are pertinent to 

assistance in connection with, and the requirements of, this section. 

(4) ACCESS TO DOCUMENTS BY THE COMPTROLLER GENERAL.—

The Comptroller General of the United States, or any of the 

duly authorized representatives of the Comptroller General, 

shall have access for the purpose of audit and examination to 

any books, documents, papers, and records that are pertinent to 

assistance in connection with, and the requirements of, this section. 

(5) REPORTS REGARDING EVALUATIONS.—The Secretary shall 

require each public housing agency participating in the program under this section to submit to the Secretary, as part of 

the agency’s annual report under paragraph (2), such information as the Secretary considers appropriate to permit the Secretary to evaluate (pursuant to subsection (f)) the performance 

and success of the agency in achieving the purposes of the demonstration. 

(h) ADDITIONAL PROGRAM AGENCIES.—In participating in the program under the terms of this subsection, the public housing agencies 

designated for such participation shall be subject to the requirements of this section, and the additional following requirements: 

(1) APPLICABILITY OF CERTAIN EXISTING PROVISIONS.—Such 

agencies shall be subject to the provisions of—

(A) subsections (a) and (b) of section 3; and 

(B) section 8(o), except for paragraph (11) and except that 

such agencies shall not be required to comply with any provision of such section 8(o) that pursuant to subsection (e)(3) 

of this section does not apply to agencies that are subject 

to such section (e)(3). 

(2) NO TIME LIMITS.—Such agencies may not impose time 

limits on the term of housing assistance received by families 

under the program. 

(3) NO EMPLOYMENT CONDITIONS.—Such agencies may not 

condition the receipt of housing assistance by families under the 


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program on the employment status of one of more family members. 

(4) ONE-FOR-ONE REPLACEMENT.—

(A) CONDITIONS ON DEMOLITION.—Such agencies may not 

demolish or dispose of any dwelling unit of public housing 

operated or administered by such agency (including any 

uninhabitable unit and any unit previously approved for 

demolition) except pursuant to a plan for replacement of 

such units in accordance with, and approved by the Secretary of Housing and Urban Development pursuant to, 

subparagraph (B). 

(B) PLAN REQUIREMENTS.—The Secretary may not approve a plan that provides for demolition or disposition of 

any dwelling unit of public housing referred to in subparagraph (A) unless—

(i) such plan provides for outreach to public housing 

agency residents in accordance with paragraph (5); 

(ii) not later than 60 days before the date of the approval of such plan, such agency has convened and 

conducted a public hearing regarding the demolition or 

disposition proposed in the plan; 

(iii) such plan provides that for each such dwelling 

unit demolished or disposed of, such public housing 

agency will provide an additional dwelling unit 

through—

(I) the acquisition or development of additional 

public housing dwelling units; or 

(II) the acquisition, development, or contracting 

(including through project-based assistance) of additional dwelling units that are subject to requirements regarding eligibility for occupancy, tenant 

contribution toward rent, and long-term affordability restrictions which are comparable to public 

housing units; 

(iv) such plan provides for a right, and implementation of such right, to occupancy of additional dwelling 

units provided in accordance with clause (iii), for 

households who, as of the time that dwelling units demolished or disposed of were vacated to provide for 

such demolition or disposition, were occupying such 

dwelling units; 

(v) such plan provides that the proposed demolition 

or disposition and relocation will be carried out in a 

manner that affirmatively furthers fair housing, as described in subsection (e) of section 808 of the Civil 

Rights Act of 1968; and 

(vi) to the extent that such plan provides for the provision of replacement or additional dwelling units, or 

redevelopment, in phases over time, such plan provides 

that the ratio of dwelling units described in subclauses 

(I) and (II) of clause (iii) that are provided in any such 

single phase to the total number of dwelling units provided in such phase is not less than the ratio of the aggregate number of such dwelling units provided under 


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the plan to the total number of dwelling units provided 

under the plan. 

(C) INAPPLICABLE PROVISIONS.—Subparagraphs (B) and 

(D) of section 8(o)(13) of the United States Housing Act of 

1937 (42 U.S.C. 1437f(o)(13)) shall not apply with respect 

to vouchers used to comply with the requirements of subparagraph (B)(iii) of this paragraph. 

(D) MONITORING.—The Secretary of Housing and Urban 

Development shall provide for the appropriate field offices 

of the Department to monitor and supervise enforcement of 

this paragraph and plans approved under this paragraph 

and to consult, regarding such monitoring and enforcement, with resident councils of, and residents of public 

housing operated or administered by, the agency. 

(5) COMPREHENSIVE OUTREACH PLAN.—No program funds of 

such agencies may be use to demolish, dispose of, or eliminate 

any public housing dwelling units except in accordance with a 

comprehensive outreach plan for such activities, developed by 

the agency in conjunction with the residents of the public housing agency, as follows: 

(A) The plan shall be developed by the agency and a resident task force, which may include members of the Resident Council, but may not be limited to such members, and 

which shall represent all segments of the population of residents of the agency, including single parent-headed households, the elderly, young employed and unemployed adults, 

teenage youth, and disabled persons. 

(B) The votes and agreements regarding the plan shall 

involve not less than 25 and not more than 35 persons. 

(C) The plan shall provide for and describe outreach efforts to inform residents of the program under this subsection, including a door-to-door information program, 

monthly newsletters to each resident household, monthly 

meetings dedicated solely to every aspect of the proposed development, including redevelopment factors, which shall include the one-for-one replacement requirement under paragraph (5), resident rights to return, the requirements of the 

program under this subsection, new resident support and 

community services to be provided, opportunities for participation in architectural design, and employment opportunities for residents, which shall reserve at least 70 percent 

of the jobs in demolition activities and 50 percent of the 

jobs in construction activities related to the redevelopment 

project, including job training, apprenticeships, union 

membership assistance. 

(D) The plan shall provide for regularly scheduled 

monthly meeting updates and a system for filing complaints about any aspect of the redevelopment process. 

(i) DEFINITIONS.—For purposes of this section, the following definitions shall apply: 

(1) EXISTING MTW AGENCY.—The term ‘‘existing MTW agency’’ means a public housing agency that as of the date of the enactment of the Section 8 Voucher Reform Act of 2007 has an existing agreement with the Secretary pursuant to the moving to 

work demonstration. 


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(2) BASE YEAR.—The term ‘‘base year’’ means, with respect to 

a participating agency, the agency fiscal year most recently 

completed prior to selection and approval for participation in 

the housing innovation program under this section. 

(3) MOVING TO WORK DEMONSTRATION.—The term ‘‘moving to 

work demonstration’’ means the moving to work demonstration 

program under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent 

Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note). 

(4) PARTICIPATING AGENCIES.—The term ‘‘participating agencies’’ means public housing agencies designated and approved 

for participation, and participating, in the housing innovation 

program under this section. 

(5) PROGRAM FUNDS.—The term ‘‘program funds’’ means, with 

respect to a participating agency, any amounts that the agency 

is authorized, pursuant to subsection (e)(1), to use to carry out 

the housing innovation program under this section of the agency. 

(6) RESIDENTS.—The term ‘‘residents’’ means, with respect to 

a public housing agency, tenants of public housing of the agency and participants in the voucher or other housing assistance 

programs of the agency funded under section 8(o), or tenants of 

other units owned by the agency and assisted under this section. 

(j) AUTHORIZATION OF APPROPRIATIONS FOR RESIDENT TECHNICAL

ASSISTANCE.—There is authorized to be appropriated for each of fis- cal years 2008 through 2012 $10,000,000, for providing capacity 

building and technical assistance to enhance the capabilities of lowincome families assisted under the program under this section to 

participate in the process for establishment of annual plans under 

this section for participating agencies. 

(k) AUTHORIZATION OF APPROPRIATIONS FOR EVALUATIONS.—

There is authorized to be appropriated $15,000,000 to the Department of Housing and Urban Development for the purpose of conducting the evaluations required under subsection (f)(1). 

* * * * * * * 

SECTION 202 OF THE DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, 

AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 

1997 

øSEC. 202. ADMINISTRATIVE FEES.—Notwithstanding section 8(q) 

of the United States Housing Act of 1937, as amended—

ø(a) The Secretary shall establish fees for the cost of administering the certificate, voucher and moderate rehabilitation programs. 

ø(1)(A) For fiscal year 1997, the fee for each month for which 

a dwelling unit is covered by an assistance contract shall be 

7.5 percent of the base amount, adjusted as provided herein, in 

the case of an agency that, on an annual basis, is administering a program of no more than 600 units, and 7 percent 

of the base amount, adjusted as provided herein, for each additional unit above 600. 


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ø(B) The base amount shall be the higher of— ø(i) the fair market rental for fiscal year 1993 for a 2- 

bedroom existing rental dwelling unit in the market area 

of the agency; and 

ø(ii) such fair market rental for fiscal year 1994, but not 

more than 103.5 percent of the amount determined under 

clause (i). 

ø(C) The base amount shall be adjusted to reflect changes in 

the wage data or other objectively measurable data that reflect 

the costs of administering the program during fiscal year 1996; 

except that the Secretary may require that the base amount be 

not less than a minimum amount and not more than a maximum amount. 

ø(2) For subsequent fiscal years, the Secretary shall publish 

a notice in the Federal Register, for each geographic area, establishing the amount of the fee that would apply for the agencies administering the program, based on changes in wage data 

or other objectively measurable data that reflect the cost of administering the program, as determined by the Secretary. 

ø(3) The Secretary may increase the fee if necessary to reflect higher costs of administering small programs and programs operating over large geographic areas. 

ø(4) The Secretary may decrease the fee for PHA-owned 

units. 

ø(b) Beginning in fiscal year 1997 and thereafter, the Secretary 

shall also establish reasonable fees (as determined by the Secretary) for— ø(1) the costs of preliminary expenses, in the amount of $500, for a public housing agency, but only in the first year it 

administers a tenant-based assistance program under the 

United States Housing Act of 1937 and only if, immediately before the effective date of this Act, it was not administering a 

tenant-based assistance program under the 1937 Act (as in effect immediately before the effective date of this Act), in connection with its initial increment of assistance received; 

ø(2) the costs incurred in assisting families who experience 

difficulty (as determined by the Secretary) in obtaining appropriate housing under the program; and 

ø(3) extraordinary costs approved by the Secretary.¿ 


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(109) 

ADDITIONAL VIEWS OF HON. SPENCER BACHUS, HON. 

JUDY BIGGERT, AND HON. GARY MILLER 

H.R. 1851, the Section 8 Voucher Reform Act of 2007 (SEVRA), 

makes a number of important improvements to the Section 8 program to reform and simplify regulations for local public housing 

agencies while preserving essential tenant protections. 

The Section 8 housing voucher program is the nation’s largest 

low-income housing assistance program helping over 2 million lowincome households, elderly and disabled secure affordable modest 

housing in the private market. The program has grown to replace 

public housing as the primary tool for subsidizing the housing costs 

of low-income families. Through this program, the Department of 

Housing and Development (HUD) provides portable subsidies to individuals who seek rental housing from qualified and approved 

owners (tenant-based), and provides subsidies to private property 

owners who set aside some or all of their units for low-income families (project-based). 

The Section 8 program began in 1974, primarily as a projectbased rental assistance program. However, by the mid-1980s, 

project-based assistance came under criticism for being too costly 

and for concentrating poor families in high-poverty areas. Consequently, in 1983, Congress stopped providing new project-based 

Section 8 contracts and created vouchers as a new form of assistance. Today, vouchers are the primary tool of assistance provided 

under Section 8, although over 1 million units still receive projectbased assistance under their original contracts or renewals of those 

contracts. 

Over the years, the cost of the housing choice voucher has continued to increase and today consumes over 60 percent of HUD’s 

budget. These cost increases can be attributed to a number of factors, not the least of which is the structure of the benefit. The 

value of a voucher is calculated as roughly the difference between 

rents in a community and 30 percent of participating households’

incomes. In recent years, rents have been rising faster than incomes, which, along with federal policy changes designed to expand 

household choice and alleviate poverty, have driven up the cost of 

a voucher and therefore the cost of the program. This rate of increase, combined with an extremely complicated set of laws and 

rules that govern the voucher program, limits the program’s effectiveness for families, many of whom must wait years to receive any 

help from their local housing authorities. In addition, the rising 

cost of this program has begun to impact funding for other key 

housing programs. In fact, for the first time in 2004, HUD programs such as Community Development Block Grants (CDBG) and 

HOME were forced to absorb budget cuts to pay for funding the 

Housing Choice Voucher program. 


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In an effort to deal with the rising cost of the Section 8 voucher 

program, the Administration has made several different reform 

proposals. In its FY 2004 budget, the Administration proposed a 

state-run block grant model, entitled ‘‘Housing Assistance for 

Needy’’ (HANF). The Subcommittee on Housing and Community 

Opportunity held a series of hearings on this proposal, but in the 

end, no legislative action was taken. In 2005, the Administration 

proposed a different approach. Instead of a block grant to the 

states, the Administration’s Flexible Voucher Program (FVP) envisioned a dollar-based grant program to be administered by the 

Public Housing Authorities (PHAs). The Flexible Voucher Program 

was not considered by the 108th Congress; however, the Appropriations Committee did include provisions in the 2005 Consolidated 

Appropriations Act moving the program from a unit-based program 

to a dollar-based program. 

Prior to 2004, PHAs were funded on a unit-basis. Their budgets 

were determined based on the number of vouchers they were allocated to administer at their actual costs. In FY 2004, the formula 

was changed to fund PHAs based on the number of vouchers they 

were expected to lease at a fixed cost. In FY 2005, the formula was 

changed again and PHAs were funded based on 2004 May–July 

VMS data, inflated for 2005 and prorated to 96 percent. In addition, the allocation of funds in FY 2005 was based on a threemonth period in 2004 (May–July), which may have been a lowpoint for some PHAs’ budgets. The result is that some PHAs receive more than they can utilize and others not enough. 

To address this problem, on February 15, 2007, as part of the 

Continuing Resolution (P.L. 110–5), Congress reverted back to a 

funding formula based on actual costs and utilization. H.R. 1851 

seeks to codify many of the changes made in the Continuing Resolution, and as with any funding formula change, there are winners 

and losers under the newly enacted funding mechanism. The fact 

that the funding formula has been repeatedly changed over the last 

several years has made it difficult for PHAs to administer their 

voucher programs and to plan for the future. 

We support a funding formula that will be reasonable, fair and 

predictable. We support a formula that will provide PHAs the certainty they need to effectively and efficiently provide affordable 

housing to low-income families. Finally, we support a funding formula that includes incentives for agencies to improve their performance and to serve the maximum number of families in need. 

While we appreciate the spirit of the funding formula provisions included in H.R. 1851, we would like to see additional changes to the 

funding formula section that will help move us closer to achieving 

the above-mentioned goals. 

It is critical to make improvements in the delivery of housing assistance to families in need. We believe this can be achieved by providing flexibility to local public housing authorities (PHAs) while 

holding them accountable for results. Such flexibility would enable 

PHAs to tailor and manage their programs to the needs of the families they serve in the local community instead of through a onesize-fits-all approach. This is important not only philosophically, 

but practically, because we face a situation of growing waiting lists 

for Section 8 vouchers without the resources to serve everyone. We 


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need to move current Section 8 recipients to self-sufficiency so that 

we can provide a similar helping hand to those who have patiently 

waited, in some cases for almost ten years, for assistance. The answer is not necessarily to increase funding. Rather, the answer is 

to allow PHAs to be innovative with the money they have, to be 

efficient and to help as many people in need as possible move 

through the program. 

Our ultimate aim should not necessarily be to expand this program, but instead to reform it to allow PHAs to serve more people. 

While H.R. 1852 does not provide for as much flexibility as we believe is needed to achieve this goal, we are pleased that the bill increases the number of PHAs allowed to enjoy such flexibility under 

the Moving to Work (MTW) program, which has allowed a small 

group of PHAs to create locally based housing programs outside of 

HUD’s one-size-fits-all regulations. The MTW program has enabled 

PHAs to create jobs for residents, add affordable housing stock, and 

help families build savings. The efforts of PHAs, which include incentives to gain employment, mixing of fund sources, relief from obsolete regulatory requirements, and effective use of funding for development and homeownership, have been successful in improving 

housing stock and serving more families by helping recipients 

achieve self-sufficiency. Currently, only 24 of the more than 3,000 

PHAs nationwide are able to participate in the MTW program. 

H.R. 1852 renames the Moving to Work program as the Housing 

Innovation Program (HIP) and increases the number of PHAs allowed to participate. The bill also directs HUD to establish performance standards for evaluating HIP agency results, taking into 

account variation in practice according to each local design. The 

evaluation is intended to be limited to assessing which policies and 

programs work under HIP, since having a one-size-fits-all performance standard system would undermine the flexibility of the program. Evaluation standards are tied to the specific performance 

goals set by the local agency. The strategies implemented by the 

PHAs participating in HIP can serve as examples of innovative 

ways to improve the program in the future to ensure that our limited federal resources may be used to help all of those who need 

it. With this performance evaluation, our goal is to be able to take 

away best practices for reform of the Section 8 program. 

In addition, we are pleased that the bill enhances HUD’s Family 

Self-Sufficiency Act (FSS) program by providing housing authorities with consistent coordinator funding. Housing authorities can 

then help more individuals move from public assistance to being 

self-sufficient homeowners. The legislation also includes performance measures, data collection, and an evaluation so that housing 

authorities are well-equipped and encouraged to operate effective 

FSS programs and can help more individuals. 

We are hopeful that the innovation that can be produced through 

HIP and FSS will demonstrate ways to truly reform Section 8 so 

we can serve more people efficiently and help move them to selfsufficiency. 

We look forward to working with the Chairs of the Committee on 

Financial Services and the Subcommittee on Housing and Community Opportunities to fine-tune the provisions of H.R. 1851 prior to 

this legislation being considered on the House floor. H.R. 1851 inVerDate Aug 31 2005 21:49 Jul 03, 2007 Jkt 059006 PO 00000 Frm 00111 Fmt 6604 Sfmt 6604 E:\HR\OC\HR216.XXX HR216

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cludes improvements that will help make the Section 8 program 

more efficient and effective. By working together in a bipartisan 

manner, we can make this legislation better serve low-income families and communities across the country. 

SPENCER BACHUS. 

JUDY BIGGERT. 

GARY G. MILLER. 

Æ 


cnoel on PRODPC60 with HEARING