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103D CONGRESS

2D SESSION H. R. 4304

To amend the United States Housing Act of 1937 to reform the public

housing program.

IN THE HOUSE OF REPRESENTATIVES

APRIL 28, 1994

Mr. PETERSON of Minnesota introduced the following bill; which was referred

to the Committee on Banking, Finance and Urban Affairs

A BILL

To amend the United States Housing Act of 1937 to reform

the public housing program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Public Housing Im5 provement Act of 1994’’.

6 SEC. 2. REPEAL OF 1-FOR-1 REPLACEMENT REQUIREMENT.

7 (a) IN GENERAL.—Section 18 of the United States

8 Housing Act of 1937 (42 U.S.C. 1437p) is amended—

9 (1) in subsection (b)—
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1 (A) in paragraph (1), by inserting ‘‘and’’

2 after the semicolon at the end;

3 (B) in paragraph (2), by striking ‘‘; and’’

4 and inserting a period; and

5 (C) by striking paragraph (3); and

6 (2) in subsection (c)—

7 (A) by striking the paragraph designation

8 for paragraph (1); and

9 (B) by striking paragraph (2).

10 (b) EFFECTIVE DATE.—The amendments under sub11 section (a) shall be made and shall take effect on October

12 1, 1994.

13 SEC. 3. USE OF MODERNIZATION FUNDS FOR COST-EFFEC14 TIVE NEW CONSTRUCTION.

15 Section 14 of the United States Housing Act of 1937

16 (42 U.S.C. 1437l) is amended—

17 (1) in subsection (a)(1), by inserting before the

18 semicolon the following: ‘‘or replace existing public

19 housing projects whose physical condition is such

20 that replacement units may be newly constructed at

21 a cost not greater than the cost of improving such

22 units’’;

23 (2) in subsection (b)(1), by inserting after

24 ‘‘public housing projects’’ the following: ‘‘(or replac-
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1 ing such projects through new construction pursuant

2 to subsection (f)(3))’’;

3 (3) in subsection (d)—

4 (A) in paragraph (1)—

5 (i) by striking ‘‘and’’ before ‘‘(B)’’;

6 and

7 (ii) by inserting before the semicolon

8 at the end the following: ‘‘, and (C) for any

9 project for which replacement through new

10 construction is proposed under subsection

11 (f)(3), the estimated cost of the physical

12 improvements to and replacements for the

13 project under this paragraph and para14 graph (2) and the estimated cost of the

15 new construction’’; and

16 (B) in paragraph (4)(A)—

17 (i) in clause (i), by striking ‘‘and’’ at

18 the end; and

19 (ii) by adding at the end the following

20 new clause:

21 ‘‘(iii) to replace any projects through

22 new construction pursuant to subsection

23 (f)(3); and’’;

24 (4) in subsection (e)(1)—

25 (A) in subparagraph (A)—
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1 (i) in clause (ii), by striking ‘‘and’’ at

2 the end;

3 (ii) in clause (iii), by inserting ‘‘and’’

4 after the semicolon at the end; and

5 (iii) by inserting after clause (iii) the

6 following new clause:

7 ‘‘(iv) for any project for which re8 placement through new construction is pro9 posed under subsection (f)(3), the esti10 mated cost of the physical improvements to

11 and replacements for the project under this

12 subparagraph and the estimated cost of

13 the new construction’’; and

14 (B) in subparagraph (D)—

15 (i) in clause (i), by striking ‘‘and’’ at

16 the end;

17 (ii) by redesignating clause (ii) as

18 clause (iii); and

19 (iii) by inserting after clause (i) the

20 following new clause:

21 ‘‘(ii) to replace any projects through

22 new construction pursuant to subsection

23 (f)(3); and’’; and

24 (5) in subsection (f), by adding at the end the

25 following new paragraph:
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1 ‘‘(3) A public housing agency may use financial as2 sistance received under subsection (b) for development

3 costs of new public housing projects to replace a project

4 otherwise eligible for assistance under this section and for

5 costs of demolition or disposition of such projects replaced,

6 but only if—

7 ‘‘(A) the sum of such development and demoli8 tion or disposition costs does not exceed the sum of

9 the costs of the physical improvements necessary to

10 the project replaced to meet the standards estab11 lished by the Secretary under subsection (j) and the

12 costs of replacement equipment systems and struc13 tural elements that will be required during the ensu14 ing 5-year period; and

15 ‘‘(B) the public housing agency enters into an

16 agreement with the Secretary providing that the

17 public housing developed will comply with any re18 quirements pursuant to this Act applicable to public

19 housing developed under a contract under section 5

20 for contributions for development costs of public

21 housing.’’.
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1 SEC. 4. MANDATORY PRIVATE MANAGEMENT OF CHRON2 ICALLY TROUBLED PUBLIC HOUSING AGEN3 CIES.

4 Section 6(j) of the United States Housing Act of

5 1937 (42 U.S.C. 1437d(j)) is amended—

6 (1) by redesignating paragraph (4) as para7 graph (5); and

8 (2) by inserting after paragraph (3) the follow9 ing new paragraph:

10 ‘‘(4)(A) Notwithstanding any other provision of law

11 or of any contract for contributions, the Secretary shall

12 transfer the management of public housing projects owned

13 or operated by a troubled public housing agency to a pri14 vate management entity selected by the Secretary if, for

15 any year—

16 ‘‘(i) the public housing is designated pursuant

17 to paragraph (2) as a troubled public housing agen18 cy: and

19 ‘‘(ii) for the preceding 5 years, the agency was

20 designated as a troubled public housing agency.

21 ‘‘(B) In selecting a private management entity to

22 manage public housing pursuant to this paragraph, the

23 Secretary shall consult with residents of the public housing

24 (including any resident council for the housing).

25 ‘‘(C) In transferring management of public housing

26 under this paragraph, the Secretary shall enter into a con-
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1 tract with the private management entity. The contract

2 shall meet the requirements of section 25(h)(1), shall pro3 vide for the private management entity to periodically con4 sult with residents of the housing (including any resident

5 council for the housing) regarding management of and liv6 ing conditions in the housing, and may make operating

7 subsidies and funding for capital improvements available

8 to the private management entity managing the public

9 housing pursuant to this paragraph in the manner pro10 vided under section 25 for managers of eligible housing

11 (as such term is defined in such section).

12 ‘‘(D) The provisions of section 25(j) relating to man13 agers of eligible housing under such section shall apply

14 with respect to any private management entity managing

15 public housing pursuant to this paragraph.

16 ‘‘(E) The Secretary shall transfer management of

17 public housing that was transferred to a private manage18 ment agency under this paragraph back to the public

19 housing agency immediately upon the removal of the

20 designation of the agency as a troubled public housing

21 agency.’’.

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