Union Calendar No. 222

104TH CONGRESS

2D SESSION H. R. 2406

[Report No. 104–461]

A BILL

To repeal the United States Housing Act of 1937,

over such programs, and for other purposes.come families, and increase community controlprogram for rental housing assistance for low-inderegulate the public housing program and the

FEBRUARY 1, 1996

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 222

104TH CONGRESS

2D SESSION H. R. 2406

[Report No. 104–461]

To repeal the United States Housing Act of 1937, deregulate the public

housing program and the program for rental housing assistance for

low-income families, and increase community control over such programs,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 27, 1995

Mr. LAZIO of New York (for himself, Mr. LEACH, Mr. MCCOLLUM, Mr.

BAKER of Louisiana, Mr. CASTLE, Mr. WELLER, Mr. BONO, Mr. EHRLICH, Mr. CREMEANS, Mr. FOX of Pennsylvania, Mr. HEINEMAN, and

Mrs. KELLY) introduced the following bill; which was referred to the

Committee on Banking and Financial Services

FEBRUARY 1, 1996

Additional sponsors: Mr. BACHUS, Mr. KING, Mr. HAYWORTH, Mr. NEY, Mr.

CHRYSLER, Mr. STOCKMAN, and Mr. SHAYS

FEBRUARY 1, 1996

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on September 27, 1995]

A BILL

To repeal the United States Housing Act of 1937, deregulate

the public housing program and the program for rental

housing assistance for low-income families, and increase
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community control over such programs, and for other

purposes.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘United States Housing Act of 1996’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Declaration of policy to renew American neighborhoods.

TITLE I—GENERAL PROVISIONS

Sec. 101. Statement of purpose.

Sec. 102. Definitions.

Sec. 103. Organization of local housing and management authorities.

Sec. 104. Determination of adjusted income.

Sec. 105. Limitation on admission of drug or alcohol abusers to assisted housing.

Sec. 106. Community work and family self-sufficiency requirement.

Sec. 107. Local housing management plans.

Sec. 108. Review of plans.

Sec. 109. Pet ownership.

Sec. 110. Administrative grievance procedure.

Sec. 111. Headquarters reserve fund.

Sec. 112. Labor standards.

Sec. 113. Nondiscrimination.

Sec. 114. Effective date and regulations.

TITLE II—PUBLIC HOUSING

Subtitle A—Block Grants

Sec. 201. Block grant contracts.

Sec. 202. Block grant authority and amount.

Sec. 203. Eligible and required activities.

Sec. 204. Determination of block grant allocation.

Sec. 205. Sanctions for improper use of amounts.

Subtitle B—Admissions and Occupancy Requirements

Sec. 221. Low-income housing requirement.

Sec. 222. Family eligibility.

Sec. 223. Preferences for occupancy.

Sec. 224. Admission procedures.

Sec. 225. Family rental payment.
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Sec. 226. Lease requirements.

Sec. 227. Designated housing for elderly and disabled families.

Subtitle C—Management

Sec. 231. Management procedures.

Sec. 232. Housing quality requirements.

Sec. 233. Employment of residents.

Sec. 234. Resident councils and resident management corporations.

Sec. 235. Management by resident management corporation.

Sec. 236. Transfer of management of certain housing to independent manager at

request of residents.

Sec. 237. Resident opportunity program.

Subtitle D—Homeownership

Sec. 251. Resident homeownership programs.

Subtitle E—Disposition, Demolition, and Revitalization of Developments

Sec. 261. Requirements for demolition and disposition of developments.

Sec. 262. Demolition, site revitalization, replacement housing, and choice-based

assistance grants for developments.

Subtitle F—General Provisions

Sec. 271. Conversion to block grant assistance.

Sec. 272. Payment of non-Federal share.

Sec. 273. Definitions.

Sec. 274. Authorization of appropriations for block grants.

Sec. 275. Authorization of appropriations for operation safe home.

TITLE III—CHOICE-BASED RENTAL HOUSING AND

HOMEOWNERSHIP ASSISTANCE FOR LOW-INCOME FAMILIES

Subtitle A—Allocation

Sec. 301. Authority to provide housing assistance amounts.

Sec. 302. Contracts with LHMA’s.

Sec. 303. Eligibility of LHMA’s for assistance amounts.

Sec. 304. Allocation of amounts.

Sec. 305. Administrative fees.

Sec. 306. Authorizations of appropriations.

Sec. 307. Conversion of section 8 assistance.

Subtitle B—Choice-Based Housing Assistance for Eligible Families

Sec. 321. Eligible families and preferences for assistance.

Sec. 322. Resident contribution.

Sec. 323. Rental indicators.

Sec. 324. Lease terms.

Sec. 325. Termination of tenancy.

Sec. 326. Eligible owners.

Sec. 327. Selection of dwelling units.

Sec. 328. Eligible dwelling units.

Sec. 329. Homeownership option.
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Subtitle C—Payment of Housing Assistance on Behalf of Assisted Families

Sec. 351. Housing assistance payments contracts.

Sec. 352. Amount of monthly assistance payment.

Sec. 353. Payment standards.

Sec. 354. Reasonable rents.

Sec. 355. Prohibition of assistance for vacant rental units.

Subtitle D—General and Miscellaneous Provisions

Sec. 371. Definitions.

Sec. 372. Rental assistance fraud recoveries.

Sec. 373. Study regarding geographic concentration of assisted families.

TITLE IV—ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING

AND MANAGEMENT AUTHORITIES

Subtitle A—Housing Foundation and Accreditation Board

Sec. 401. Establishment.

Sec. 402. Membership.

Sec. 403. Functions.

Sec. 404. Initial establishment of standards and procedures for LHMA compliance.

Sec. 405. Powers.

Sec. 406. Fees.

Sec. 407. Reports.

Subtitle B—Accreditation and Oversight Standards and Procedures

Sec. 431. Establishment of performance benchmarks and accreditation procedures.

Sec. 432. Annual financial and performance audit.

Sec. 433. Accreditation.

Sec. 434. Classification by performance category.

Sec. 435. Performance agreements for authorities at risk of becoming troubled.

Sec. 436. Performance agreements and CDBG sanctions for troubled LHMA’s.

Sec. 437. Option to demand conveyance of title to or possession of public housing.

Sec. 438. Removal of ineffective LHMA’s.

Sec. 439. Mandatory takeover of chronically troubled PHA’s.

Sec. 440. Treatment of troubled PHA’s.

Sec. 441. Maintenance of and access to records.

Sec. 442. Annual reports regarding troubled LHMA’s.

Sec. 443. Applicability to resident management corporations.

Sec. 444. Inapplicability to Indian housing.

TITLE V—REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.

Sec. 502. Conforming and technical provisions.

Sec. 503. Amendments to Public and Assisted Housing Drug Elimination Act of

1990.

1 SEC. 2. DECLARATION OF POLICY TO RENEW AMERICAN

2 NEIGHBORHOODS.

3 The Congress hereby declares that—
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1 (1) the Federal Government has a responsibility

2 to promote the general welfare of the Nation—

3 (A) by using Federal resources to aid fami4 lies and individuals seeking affordable homes

5 that are safe, clean, and healthy and, in particu6 lar, assisting responsible, deserving citizens who

7 cannot provide fully for themselves because of

8 temporary circumstances or factors beyond their

9 control;

10 (B) by working to ensure a thriving na11 tional economy and a strong private housing

12 market; and

13 (C) by developing effective partnerships

14 among the Federal Government, State and local

15 governments, and private entities that allow gov16 ernment to accept responsibility for fostering the

17 development of a healthy marketplace and allow

18 families to prosper without government involve19 ment in their day-to-day activities;

20 (2) the Federal Government cannot through its

21 direct action or involvement provide for the housing

22 of every American citizen, or even a majority of its

23 citizens, but it is the responsibility of the Government

24 to promote and protect the independent and collective
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1 actions of private citizens to develop housing and

2 strengthen their own neighborhoods;

3 (3) the Federal Government should act only

4 where there is a serious need that private citizens or

5 groups cannot or are not addressing responsibly; and

6 (4) housing is a fundamental and necessary com7 ponent of bringing true opportunity to people and

8 communities in need, but providing physical struc9 tures to house low-income families will not by itself

10 pull generations up from poverty.

11 TITLE I—GENERAL PROVISIONS

12 SEC. 101. STATEMENT OF PURPOSE.

13 The purpose of this Act is to promote safe, clean, and

14 healthy housing that is affordable to low-income families,

15 and thereby contribute to the supply of affordable housing,

16 by—

17 (1) deregulating and decontrolling public hous18 ing agencies, which in this Act are referred to as

19 ‘‘local housing and management authorities’’, and

20 thereby enable them to perform as property and asset

21 managers;

22 (2) providing for more flexible use of Federal as23 sistance to local housing and management authorities,

24 allowing the authorities to leverage and combine as-
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1 sistance amounts with amounts obtained from other

2 sources;

3 (3) facilitating mixed income communities;

4 (4) increasing accountability and rewarding ef5 fective management of local housing and management

6 authorities;

7 (5) creating incentives and economic opportuni8 ties for residents of dwelling units assisted by local

9 housing and management authorities to work and be10 come self-sufficient; and

11 (6) recreating the existing rental assistance

12 voucher program so that the use of vouchers and rela13 tionships between landlords and tenants under the

14 program operate in a manner that more closely re15 sembles the private housing market.

16 SEC. 102. DEFINITIONS.

17 For purposes of this Act, the following definitions shall

18 apply:

19 (1) DISABLED FAMILY.—The term ‘‘disabled

20 family’’ means a family whose head (or his or her

21 spouse), or whose sole member, is a person with dis22 abilities. Such term includes 2 or more persons with

23 disabilities living together, and 1 or more such per24 sons living with 1 or more persons determined under
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1 the regulations of the Secretary to be essential to their

2 care or well-being.

3 (2) DRUG-RELATED CRIMINAL ACTIVITY.—The

4 term ‘‘drug-related criminal activity’’ means the ille5 gal manufacture, sale, distribution, use, or possession

6 with intent to manufacture, sell, distribute, or use, of

7 a controlled substance (as such term is defined in sec8 tion 102 of the Controlled Substances Act).

9 (3) ELDERLY FAMILIES AND NEAR ELDERLY

10 FAMILIES.—The terms ‘‘elderly family’’ and ‘‘near-el11 derly family’’ mean a family whose head (or his or

12 her spouse), or whose sole member, is an elderly per13 son or a near-elderly person, respectively. Such terms

14 include 2 or more elderly persons or near-elderly per15 sons living together, and 1 or more such persons liv16 ing with 1 or more persons determined under the reg17 ulations of the Secretary to be essential to their care

18 or well-being.

19 (4) ELDERLY PERSON.—The term ‘‘elderly per20 son’’ means a person who is at least 62 years of age.

21 (5) FAMILY.—The term ‘‘family’’ includes a fam22 ily with or without children, an elderly family, a

23 near-elderly family, a disabled family, and a single

24 person.
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1 (6) INCOME.—The term ‘‘income’’ means, with

2 respect to a family, income from all sources of each

3 member of the household, as determined in accordance

4 with criteria prescribed by the applicable local hous5 ing and management authority and the Secretary, ex6 cept that the following amounts shall be excluded:

7 (A) Any amounts not actually received by

8 the family.

9 (B) Any amounts that would be eligible for

10 exclusion under section 1613(a)(7) of the Social

11 Security Act.

12 (7) INDIAN.—The term ‘‘Indian’’ means any per13 son recognized as being an Indian, Alaska Native, or

14 Native Hawaiian by an Indian tribe, the Federal

15 Government, or any State.

16 (8) INDIAN AREA.—The term ‘‘Indian area’’

17 means the area within which an Indian housing au18 thority is authorized to provide low-income housing

19 assistance under this Act.

20 (9) INDIAN HOUSING AUTHORITY.—The term

21 ‘‘Indian housing authority’’ means any entity that—

22 (A) is authorized to engage in or assist in

23 the production or operation of low-income hous24 ing for Indians that is assisted under this Act;

25 and
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1 (B) is established—

2 (i) by exercise of the power of self-gov3 ernment of an Indian tribe independent of

4 State law; or

5 (ii) by operation of State law provid6 ing specifically for housing authorities for

7 Indians, including regional housing au8 thorities in the State of Alaska.

9 (10) INDIAN TRIBE.—The term ‘‘Indian tribe’’

10 means any tribe, band, pueblo, group, community, or

11 nation of Indians, Alaska Natives, or Native Hawai12 ians.

13 (11) LOCAL HOUSING AND MANAGEMENT AU14 THORITY.—The term ‘‘local housing and management

15 authority’’ is defined in section 103.

16 (12) LOCAL HOUSING MANAGEMENT PLAN.—The

17 term ‘‘local housing management plan’’ means, with

18 respect to any fiscal year, the plan under section 107

19 of a local housing and management authority for such

20 fiscal year.

21 (13) LOW-INCOME FAMILY.—The term ‘‘low-in22 come family’’ means a family whose income does not

23 exceed 80 percent of the median income for the area,

24 except that the Secretary may, for purposes of this

25 paragraph, establish income ceilings higher or lower
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1 than 80 percent of the median for the area on the

2 basis of the authority’s findings that such variations

3 are necessary because of unusually high or low family

4 incomes.

5 (14) LOW-INCOME HOUSING.—The term ‘‘low-in6 come housing’’ means dwellings that comply with the

7 requirements—

8 (A) under subtitle B of title II for assist9 ance under such title for the dwellings; or

10 (B) under title III for rental assistance

11 payments under such title for the dwellings.

12 (15) NEAR-ELDERLY PERSON.—The term ‘‘near13 elderly person’’ means a person who is at least 55

14 years of age.

15 (16) PERSON WITH DISABILITIES.—The term

16 ‘‘person with disabilities’’ means a person who—

17 (A) has a disability as defined in section

18 223 of the Social Security Act; or

19 (B) has a developmental disability as de20 fined in section 102 of the Developmental Dis21 abilities Assistance and Bill of Rights Act.

22 Such term shall not exclude persons who have the dis23 ease of acquired immunodeficiency syndrome or any

24 conditions arising from the etiologic agent for ac25 quired immunodeficiency syndrome. Notwithstanding
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1 any other provision of law, no individual shall be

2 considered a person with disabilities, for purposes of

3 eligibility for public housing under title II of this Act,

4 solely on the basis of any drug or alcohol dependence.

5 The Secretary shall consult with other appropriate

6 Federal agencies to implement the preceding sentence.

7 (17) PUBLIC HOUSING.—The term ‘‘public hous8 ing’’ means housing, and all necessary appurtenances

9 thereto, that—

10 (A) is low-income housing or low-income

11 dwelling units in mixed income housing (as pro12 vided in section 221(c)(2)); and

13 (B)(i) is subject to an annual block grant

14 contract under title II; or

15 (ii) was subject to an annual block grant

16 contract under title II (or an annual contribu17 tions contract under the United States Housing

18 Act of 1937) which is not in effect, but for which

19 occupancy is limited in accordance with the re20 quirements under section 222(a).

21 (18) SECRETARY.—The term ‘‘Secretary’’ means

22 the Secretary of Housing and Urban Development.

23 (19) STATE.—The term ‘‘State’’ means the States

24 of the United States, the District of Columbia, the

25 Commonwealth of Puerto Rico, the Commonwealth of
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1 the Northern Mariana Islands, Guam, the Virgin Is2 lands, American Samoa, any other territory or pos3 session of the United States, and Indian tribes.

4 (20) VERY LOW-INCOME FAMILY.—The term

5 ‘‘very low-income family’’ means a low-income family

6 whose income does not exceed 50 percent of the me7 dian family income for the area, except that the Sec8 retary may, for purposes of this paragraph, establish

9 income ceilings higher or lower than 50 percent of the

10 median for the area on the basis of the authority’s

11 findings that such variations are necessary because of

12 unusually high or low family incomes.

13 SEC. 103. ORGANIZATION OF LOCAL HOUSING AND MAN14 AGEMENT AUTHORITIES.

15 (a) REQUIREMENTS.—For purposes of this Act, the

16 terms ‘‘local housing and management authority’’ and ‘‘au17 thority’’ mean any entity that—

18 (1) is—

19 (A) a public housing agency or Indian

20 housing authority that was authorized under the

21 United States Housing Act of 1937 to engage in

22 or assist in the development or operation of low23 income housing;

24 (B) authorized under this Act to engage in

25 or assist in the development or operation of low-
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1 income housing by any State, county, munici2 pality, or other governmental body or public en3 tity; or

4 (C) an entity selected by the Secretary, pur5 suant to subtitle B of title IV, to manage hous6 ing; and

7 (2) complies with the requirements under sub8 section (b).

9 (b) GOVERNANCE.—

10 (1) BOARD OF DIRECTORS.—Each local housing

11 and management authority shall have a board of di12 rectors or other form of governance as prescribed in

13 State or local law. No person may be barred from

14 serving on such board or body because of such per15 son’s residency in a public housing development or

16 status as an assisted family under title III.

17 (2) RESIDENT MEMBERSHIP.—

18 (A) IN GENERAL.—Except as provided in

19 subparagraph (B), in localities in which a local

20 housing and management authority is governed

21 by a board of directors or other similar body, the

22 board or body shall include not less than 1 mem23 ber who is—
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1 (i) a resident of a public housing

2 dwelling unit owned or operated by the au3 thority; or

4 (ii) a member of an assisted family

5 under title III.

6 (B) EXCEPTIONS.—The requirement in sub7 paragraph (A) with respect to a resident member

8 shall not apply to—

9 (i) any State or local governing body

10 that serves as a local housing and manage11 ment authority for purposes of this Act and

12 whose responsibilities include substantial

13 activities other than acting as the local

14 housing and management authority, except

15 that such requirement shall apply to any

16 advisory committee or organization that is

17 established by such governing body and

18 whose responsibilities relate only to the gov19 erning body’s functions as a local housing

20 and management authority for purposes of

21 this Act;

22 (ii) any local housing and manage23 ment authority that owns or operates less

24 than 250 public housing dwelling units (in-
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1 cluding any authority that does not own or

2 operate public housing);

3 (iii) any local housing and manage4 ment authority that manages public hous5 ing consisting primarily of scattered site

6 public housing;

7 (iv) any local housing and manage8 ment authority in a State in which State

9 law specifically precludes public housing

10 residents or assisted families from serving

11 on the board of directors or other similar

12 body of an authority; or

13 (v) any local housing and management

14 authority in a State that requires the mem15 bers of the board of directors or other simi16 lar body of a local housing and manage17 ment authority to be salaried and to serve

18 on a full-time basis.

19 (3) FULL PARTICIPATION.—No local housing and

20 management authority may limit or restrict the ca21 pacity or offices in which a member of such board or

22 body may serve on such board or body solely because

23 of the member’s status as a resident member.

24 (4) CONFLICTS OF INTEREST.—The Secretary

25 shall establish guidelines to prevent conflicts of inter-
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1 est on the part of members of the board or directors

2 or governing body of a local housing and management

3 authority.

4 (5) DEFINITION.—For purposes of this sub5 section, the term ‘‘resident member’’ means a member

6 of the board of directors or other similar governing

7 body of a local housing and management authority

8 who is a resident of a public housing dwelling unit

9 administered or assisted by the authority or is an as10 sisted family (as such term is defined in section 371).

11 (c) ESTABLISHMENT OF POLICIES.—Any rules, regula12 tions, policies, standards, and procedures necessary to im13 plement policies required under section 107 to be included

14 in the local housing management plan for a local housing

15 and management authority shall be approved by the board

16 of directors or similar governing body of the authority and

17 shall be publicly available for review upon request.

18 SEC. 104. DETERMINATION OF ADJUSTED INCOME.

19 (a) IN GENERAL.—For purposes of this Act, the term

20 ‘‘adjusted income’’ means, with respect to a family, the dif21 ference between the income of the members of the family

22 residing in a dwelling unit or the persons on a lease and

23 the amount of any income exclusions for the family under

24 subsections (b) and (c), as determined by the local housing

25 and management authority.
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1 (b) MANDATORY EXCLUSIONS FROM INCOME.—In de2 termining adjusted income, a local housing and manage3 ment authority shall exclude from the annual income of a

4 family the following amounts:

5 (1) ELDERLY AND DISABLED FAMILIES.—$400

6 for any elderly or disabled family.

7 (2) MEDICAL EXPENSES.—The amount by which

8 3 percent of the annual family income is exceeded by

9 the sum of—

10 (A) unreimbursed medical expenses of any

11 elderly family;

12 (B) unreimbursed medical expenses of any

13 nonelderly family, except that this subparagraph

14 shall apply only to the extent approved in ap15 propriation Acts; and

16 (C) unreimbursed reasonable attendant care

17 and auxiliary apparatus expenses for each

18 handicapped member of the family, to the extent

19 necessary to enable any member of such family

20 (including such handicapped member) to be em21 ployed.

22 (3) CHILD CARE EXPENSES.—Any reasonable

23 child care expenses necessary to enable a member of

24 the family to be employed or to further his or her edu25 cation.
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1 (4) MINORS.—$480 for each member of the fam2 ily residing in the household (other than the head of

3 the household or his or her spouse) who is under 18

4 years of age or is attending school or vocational

5 training on a full-time basis.

6 (5) CHILD SUPPORT PAYMENTS.—Any payment

7 made by a member of the family for the support and

8 maintenance of any child who does not reside in the

9 household, except that the amount excluded under this

10 paragraph may not exceed $480 for each child for

11 whom such payment is made.

12 (c) PERMISSIVE EXCLUSIONS FROM INCOME.—In de13 termining adjusted income, a local housing and manage14 ment authority may, in the discretion of the authority, es15 tablish exclusions from the annual income of a family. Such

16 exclusions may include the following amounts:

17 (1) EXCESSIVE TRAVEL EXPENSES.—Excessive

18 travel expenses in an amount not to exceed $25 per

19 family per week, for employment- or education-related

20 travel.

21 (2) EARNED INCOME.—An amount of any earned

22 income of the family, established at the discretion of

23 the local housing and management authority, which

24 may be based on—

25 (A) all earned income of the family,
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1 (B) the amount earned by particular mem2 bers of the family;

3 (C) the amount earned by families having

4 certain characteristics; or

5 (D) the amount earned by families or mem6 bers during certain periods or from certain

7 sources.

8 (3) OTHERS.—Such other amounts for other pur9 poses, as the local housing and management authority

10 may establish.

11 SEC. 105. LIMITATION ON ADMISSION OF DRUG OR ALCO12 HOL ABUSERS TO ASSISTED HOUSING.

13 (a) AUTHORITY.—Notwithstanding any other provi14 sion of law, a local housing and management authority

15 may establish standards for occupancy in public housing

16 dwelling units and assistance under title III, that prohibit

17 admission to such units and assistance under title III by

18 any person—

19 (1) who currently illegally uses a controlled sub20 stance; or

21 (2) whose history of illegal use of a controlled

22 substance or use of alcohol, or current use of alcohol,

23 provides reasonable cause for the authority to believe

24 that the occupancy by such individual may interfere
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1 with the health, safety, or right to peaceful enjoyment

2 of the premises by other residents.

3 (b) CONSIDERATION OF REHABILITATION.—In deter4 mining whether, pursuant to subsection (a), to deny admis5 sion or assistance to any person based on a history of use

6 of a controlled substance or alcohol, a local housing and

7 management authority may consider whether such person—

8 (1) has successfully completed a supervised drug

9 or alcohol rehabilitation program (as applicable) and

10 is no longer engaging in the illegal use of a controlled

11 substance or use of alcohol (as applicable),

12 (2) has otherwise been rehabilitated successfully

13 and is no longer engaging in the illegal use of a con14 trolled substance or use of alcohol (as applicable), or

15 (3) is participating in a supervised drug or alco16 hol rehabilitation program (as applicable) and is no

17 longer engaging in the illegal use of a controlled sub18 stance or use of alcohol (as applicable),

19 and in making such a determination may obtain rec20 ommendations of social workers, drug and alcohol coun21 selors, probation officers, and former landlords for such per22 son.
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1 SEC. 106. COMMUNITY WORK AND FAMILY SELF-SUFFI2 CIENCY REQUIREMENT.

3 (a) REQUIREMENT.—Except as provided in subsection

4 (b), each local housing and management authority shall re5 quire, as a condition of occupancy of a public housing

6 dwelling unit by a family and of providing housing assist7 ance under title III on behalf of a family, that each adult

8 member of the family shall—

9 (1) contribute not less than 8 hours of work per

10 month within the community in which the family re11 sides; or

12 (2) participate on an ongoing basis in a pro13 gram designed to promote economic self-sufficiency.

14 (b) EXEMPTIONS.—A local housing and management

15 authority shall provide for the exemption, from the applica16 bility of the requirement under subsection (a), of each indi17 vidual who is—

18 (1) an elderly person and unable, as determined

19 in accordance with guidelines established by the Sec20 retary, to comply with the requirement;

21 (2) a person with disabilities and unable (as so

22 determined) to comply with the requirement;

23 (3) working, attending school or vocational

24 training, or otherwise complying with work require25 ments applicable under other public assistance pro-
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1 grams, and unable (as so determined) to comply with

2 the requirement; or

3 (4) otherwise physically impaired, as certified by

4 a doctor, and is therefore unable to comply with the

5 requirement.

6 SEC. 107. LOCAL HOUSING MANAGEMENT PLANS.

7 (a) IN GENERAL.—In accordance with this section, the

8 Secretary shall provide for each local housing and manage9 ment authority to submit to the Secretary a local housing

10 management plan under this section for each fiscal year

11 that describes the mission of the local housing and manage12 ment authority and the goals, objectives, and policies of the

13 authority to meet the housing needs of low-income families

14 in the jurisdiction of the authority.

15 (b) PROCEDURES.—The Secretary shall establish re16 quirements and procedures for submission and review of

17 plans and for the contents of such plans. Such procedures

18 shall provide for local housing and management authorities

19 to, at the option of the authority, submit plans under this

20 section together with, or as part of, the comprehensive hous21 ing affordability strategy under section 105 of the Cran22 ston-Gonzalez National Affordable Housing Act (or any

23 consolidated plan incorporating such strategy) for the rel24 evant jurisdiction and for concomitant review of such plans.
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1 (c) CONTENTS.—A local housing management plan

2 under this section for a local housing and management au3 thority shall contain the following information relating to

4 the upcoming fiscal year for which the assistance under this

5 Act is to be made available:

6 (1) FINANCIAL RESOURCES.—An operating budg7 et for the authority that includes—

8 (A) a description of the financial resources

9 available to the authority;

10 (B) the uses to which such resources will be

11 committed, including eligible and required ac12 tivities under section 203 to be assisted, housing

13 assistance to be provided under title III, and ad14 ministrative, management, maintenance, and

15 capital improvement activities to be carried out;

16 and

17 (C) an estimate of the market rent value of

18 each public housing development of the author19 ity.

20 (2) POPULATION SERVED.—A statement of the

21 policies of the authority governing eligibility, admis22 sions, and occupancy of families with respect to pub23 lic housing dwelling units and housing assistance

24 under title III, including—
25

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1 (A) the requirements for eligibility for such

2 units and assistance and the method by which

3 eligibility will be determined and verified;

4 (B) the requirements for selection and ad5 missions of eligible families for such units and

6 assistance, including any preferences established

7 under section 223 or 321(c) and the criteria for

8 selection under section 222(b);

9 (C) the procedures for assignment of fami10 lies admitted to dwelling units owned, operated,

11 or assisted by the authority;

12 (D) any standards and requirements for oc13 cupancy of public housing dwelling units and

14 units assisted under title III, including condi15 tions for continued occupancy, termination of

16 tenancy, eviction, and termination of housing as17 sistance under section 321(g);

18 (E) the criteria under subsections (d) and

19 (f) of section 321 for providing and denying

20 housing assistance under title III to families

21 moving into the jurisdiction of the authority;

22 (F) the fair housing policy of the authority;

23 and

24 (G) the procedures for outreach efforts (in25 cluding efforts that are planned and that have
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1 been executed) to homeless families and to enti2 ties providing assistance to homeless families, in

3 the jurisdiction of the authority.

4 (3) RENT DETERMINATION.—A statement of the

5 policies of the authority governing rents charged for

6 public housing dwelling units and rental contribu7 tions of assisted families under title III, including—

8 (A) the methods by which such rents are de9 termined under section 225 and such contribu10 tions are determined under section 322;

11 (B) an analysis of how such methods af12 fect—

13 (i) the ability of the authority to pro14 vide housing assistance for families having

15 a broad range of incomes;

16 (ii) the affordability of housing for

17 families having incomes that do not exceed

18 30 percent of the median family income for

19 the area; and

20 (iii) the availability of other financial

21 resources to the authority.

22 (4) QUALITY STANDARDS FOR MAINTENANCE AND

23 MANAGEMENT.—A statement of the standards and

24 policies of the authority governing maintenance and

25 management of housing owned and operated by the
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1 authority, and management of the local housing and

2 management authority, including—

3 (A) housing quality standards in effect pur4 suant to sections 232 and 328 and any certifi5 cations required under such sections;

6 (B) routine and preventative maintenance

7 policies for public housing;

8 (C) emergency and disaster plans for public

9 housing;

10 (D) rent collection and security policies for

11 public housing;

12 (E) priorities and improvements for man13 agement of public housing; and

14 (F) priorities and improvements for man15 agement of the authority, including improvement

16 of electronic information systems to facilitate

17 managerial capacity and efficiency.

18 (5) GRIEVANCE PROCEDURE.—A statement of the

19 grievance procedures of the authority under section

20 110.

21 (6) CAPITAL IMPROVEMENTS.—With respect to

22 public housing developments owned or operated by the

23 authority, a plan describing—
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1 (A) the capital improvements necessary to

2 ensure long-term physical and social viability of

3 the developments; and

4 (B) the priorities of the authority for cap5 ital improvements based on analysis of available

6 financial resources, consultation with residents,

7 and health and safety considerations.

8 (7) DEMOLITION AND DISPOSITION.—With re9 spect to public housing developments owned or oper10 ated by the authority—

11 (A) a description of any such housing to be

12 demolished or disposed of under subtitle E of

13 title II;

14 (B) a timetable for such demolition or dis15 position; and

16 (C) any information required under section

17 261(h) with respect to such demolition or dis18 position.

19 (8) DESIGNATION OF HOUSING FOR ELDERLY

20 AND DISABLED FAMILIES.—With respect to public

21 housing developments owned or operated by the au22 thority, a description of any developments (or por23 tions thereof) that the authority has designated or

24 will designate for occupancy by elderly and disabled

25 families in accordance with section 227 and any in-
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1 formation required under section 227(c) for such des2 ignated developments.

3 (9) CONVERSION OF PUBLIC HOUSING.—With re4 spect to public housing owned or operated by the au5 thority, a description of any building or buildings

6 that the authority is required under section 203(b) to

7 convert to housing assistance under title III, an anal8 ysis of such buildings showing that the buildings meet

9 the requirements under such section for such conver10 sion, and a statement of the amount of grant amounts

11 under title II to be used for rental assistance under

12 title III.

13 (10) HOMEOWNERSHIP ACTIVITIES.—A descrip14 tion of any homeownership programs of the authority

15 under subtitle D of title II or section 329 for the au16 thority and the requirements and assistance available

17 under such programs.

18 (11) COORDINATION WITH WELFARE AGEN19 CIES.—A description of how the authority will coordi20 nate with State welfare agencies to ensure that public

21 housing residents and assisted families will be pro22 vided with access to resources to assist in obtaining

23 employment and achieving self-sufficiency.

24 (12) SAFETY AND CRIME PREVENTION.—A de25 scription of the requirements established by the au-
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1 thority that ensure the safety of public housing resi2 dents, facilitate the authority undertaking crime pre3 vention measures (such as community policing, where

4 appropriate), allow resident input and involvement,

5 and allow for creative methods to increase public

6 housing resident safety by coordinating crime preven7 tion efforts between the authority and local law en8 forcement officials.

9 (d) 5-YEAR PLAN.—Each local housing management

10 plan under this section for a local housing and management

11 authority shall contain, with respect to the 5-year period

12 beginning with the fiscal year for which the plan is submit13 ted, the following information:

14 (1) STATEMENT OF MISSION.—A statement of the

15 mission of the authority for serving the needs of low16 income families in the jurisdiction of authority dur17 ing such period.

18 (2) GOALS AND OBJECTIVES.—A statement of the

19 goals and objectives of the authority that will enable

20 the authority to serve the needs identified pursuant to

21 paragraph (1) during such period.

22 (3) CAPITAL IMPROVEMENT OVERVIEW.—If the

23 authority will provide capital improvements for pub24 lic housing developments during such period, an over25 view of such improvements, the rationale for such im-
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1 provements, and an analysis of how such improve2 ments will enable the authority to meet its goals, ob3 jectives, and mission.

4 (e) CITIZEN PARTICIPATION.—

5 (1) IN GENERAL.—Before submitting a plan

6 under this section or an amendment under section

7 108(f) to a plan, a local housing and management

8 authority shall make the plan or amendment publicly

9 available in a manner that affords affected public

10 housing residents and assisted families under title III,

11 citizens, public agencies, entities providing assistance

12 and services for homeless families, and other inter13 ested parties an opportunity, for a period not shorter

14 than 60 days and ending at a time that reasonably

15 provides for compliance with the requirements of

16 paragraph (2), to examine its content and to submit

17 comments to the authority.

18 (2) CONSIDERATION OF COMMENTS.—A local

19 housing and management authority shall consider

20 any comments or views provided pursuant to para21 graph (1) in preparing a final plan or amendment

22 for submission to the Secretary. A summary of such

23 comments or views shall be attached to the plan,

24 amendment, or report submitted. The submitted plan,
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1 amendment, or report shall be made publicly avail2 able upon submission.

3 (f) LOCAL REVIEW.—Before submitting a plan under

4 this section to the Secretary, the local housing and manage5 ment authority shall submit the plan to any local elected

6 official or officials responsible for appointing the members

7 of the board of directors (or other similar governing body)

8 of the local housing and management authority for review

9 and approval.

10 (g) PLANS FOR SMALL LHMA’S AND LHMA’S ADMIN11 ISTERING ONLY RENTAL ASSISTANCE.—The Secretary shall

12 establish requirements for submission of plans under this

13 section and the information to be included in such plans

14 applicable to housing and management authorities that

15 own or operate less than 250 public housing dwelling units

16 and shall establish requirements for such submission and

17 information applicable to authorities that only administer

18 housing assistance under title III (and do not own or oper19 ate public housing). Such requirements shall waive any re20 quirements under this section that the Secretary determines

21 are burdensome or unnecessary for such agencies.

22 SEC. 108. REVIEW OF PLANS.

23 (a) REVIEW AND NOTICE.—

24 (1) REVIEW.—The Secretary shall conduct a lim25 ited review of each local housing management plan
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1 submitted to the Secretary to ensure that the plan is

2 complete and complies with the requirements of sec3 tion 107. The Secretary shall have the discretion to

4 review a plan only to the extent that the Secretary

5 considers review is necessary.

6 (2) NOTICE.—The Secretary shall notify each

7 local housing and management authority submitting

8 a plan whether the plan complies with such require9 ments not later than 75 days after receiving the plan.

10 If the Secretary does not notify the local housing and

11 management authority, as required under this sub12 section and subsection (b), the plan shall be consid13 ered, for purposes of this Act, to have been determined

14 to comply with the requirements under section 107

15 and the authority shall be considered to have been no16 tified of compliance upon the expiration of such 75-

17 day period.

18 (b) NOTICE OF REASONS FOR DETERMINATION OF

19 NONCOMPLIANCE.—If the Secretary determines that a plan,

20 as submitted, does not comply with the requirements under

21 section 107, the Secretary shall specify in the notice under

22 subsection (a) the reasons for the noncompliance and any

23 modifications necessary for the plan to meet the require24 ments under section 107.
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1 (c) STANDARDS FOR DETERMINATION OF NONCOMPLI2 ANCE.—The Secretary may determine that a plan does not

3 comply with the requirements under section 107 only if—

4 (1) the plan is incomplete in significant matters

5 required under such section;

6 (2) there is evidence available to the Secretary

7 that challenges, in a substantial manner, any infor8 mation provided in the plan; or

9 (3) the Secretary determines that the plan vio10 lates the purposes of this Act because it fails to pro11 vide housing that will be viable on a long-term basis

12 at a reasonable cost.

13 (d) TREATMENT OF EXISTING PLANS.—Notwithstand14 ing any other provision of this title, a local housing and

15 management authority shall be considered to have submit16 ted a plan under this section if the authority has submitted

17 to the Secretary a comprehensive plan under section 14(e)

18 of the United States Housing Act of 1937 (as in effect im19 mediately before the enactment of this Act) or under the

20 comprehensive improvement assistance program under such

21 section 14, and the Secretary has approved such plan, before

22 January 1, 1994. The Secretary shall provide specific pro23 cedures and requirements for such authorities to amend

24 such plans by submitting only such additional information
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1 as is necessary to comply with the requirements of section

2 107.

3 (e) ACTIONS TO CHANGE PLAN.—A local housing and

4 management authority that has submitted a plan under sec5 tion 107 may change actions or policies described in the

6 plan before submission and review of the plan of the author7 ity for the next fiscal year only if—

8 (1) in the case of costly or nonroutine changes,

9 the authority submits to the Secretary an amendment

10 to the plan under subsection (f) which is reviewed in

11 accordance with such subsection; or

12 (2) in the case of inexpensive or routine changes,

13 the authority describes such changes in such local

14 housing management plan for the next fiscal year.

15 (f) AMENDMENTS TO PLAN.—

16 (1) IN GENERAL.—During the annual or 5-year

17 period covered by the plan for a local housing and

18 management authority, the authority may submit to

19 the Secretary any amendments to the plan.

20 (2) REVIEW.—The Secretary shall conduct a lim21 ited review of each proposed amendment submitted

22 under this subsection to determine whether the plan,

23 as amended by the amendment, complies with the re24 quirements of section 107 and notify each local hous25 ing and management authority submitting the
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1 amendment whether the plan, as amended, complies

2 with such requirements not later than 30 days after

3 receiving the amendment. If the Secretary determines

4 that a plan, as amended, does not comply with the re5 quirements under section 107, such notice shall indi6 cate the reasons for the noncompliance and any modi7 fications necessary for the plan to meet the require8 ments under section 107. If the Secretary does not no9 tify the local housing and management authority as

10 required under this paragraph, the plan, as amended,

11 shall be considered, for purposes of this section, to

12 comply with the requirements under section 107.

13 (3) STANDARDS FOR DETERMINATION OF NON14 COMPLIANCE.—The Secretary may determine that a

15 plan, as amended by a proposed amendment, does not

16 comply with the requirements under section 107 only

17 if—

18 (A) the plan, as amended, would be subject

19 to a determination of noncompliance in accord20 ance with the provisions of subsection (c); or

21 (B) the Secretary determines that—

22 (i) the proposed amendment is plainly

23 inconsistent with the activities specified in

24 the plan;
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1 (ii) there is evidence that challenges, in

2 a substantial manner, any information con3 tained in the amendment; or

4 (3) the Secretary determines that the plan, as

5 amended, violates the purposes of this Act because it

6 fails to provide housing that will be viable on a long7 term basis at a reasonable cost.

8 (4) AMENDMENTS TO EXTEND TIME OF PER9 FORMANCE.—Notwithstanding any other provision of

10 this subsection, the Secretary may not determine that

11 any amendment to the plan of a local housing and

12 management authority that extends the time for per13 formance of activities assisted with amounts provided

14 under this title fails to comply with the requirements

15 under section 107 if the Secretary has not provided

16 the amount of assistance set forth in the plan or has

17 not provided the assistance in a timely manner.

18 SEC. 109. PET OWNERSHIP.

19 A resident of a public housing dwelling unit or an as20 sisted dwelling unit (as such term is defined in section 371)

21 may own common household pets or have common household

22 pets present in the dwelling unit of such resident to the ex23 tent allowed by the local housing and management author24 ity or the owner of the assisted dwelling unit, respectively.

25 Notwithstanding the preceding sentence, pet ownership in
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1 housing assisted under this Act that is federally assisted

2 rental housing for the elderly or handicapped (as such term

3 is defined in section 227 of the Housing and Urban-Rural

4 Recovery Act of 1983) shall be governed by the provisions

5 of section 227 of such Act.

6 SEC. 110. ADMINISTRATIVE GRIEVANCE PROCEDURE.

7 (a) REQUIREMENTS.—Each local housing and man8 agement authority receiving assistance under this Act shall

9 establish and implement an administrative grievance proce10 dure under which residents of public housing and assisted

11 families under title III will—

12 (1) be advised of the specific grounds of any pro13 posed adverse local housing and management author14 ity action;

15 (2) have an opportunity for a hearing before an

16 impartial party upon timely request within a reason17 able period of time;

18 (3) have an opportunity to examine any docu19 ments or records or regulations related to the pro20 posed action;

21 (4) be entitled to be represented by another per22 son of their choice at any hearing;

23 (5) be entitled to ask questions of witnesses and

24 have others make statements on their behalf; and
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1 (6) be entitled to receive a written decision by

2 the local housing and management authority on the

3 proposed action.

4 (b) EXCLUSION FROM ADMINISTRATIVE PROCEDURE

5 OF GRIEVANCES CONCERNING EVICTIONS FROM PUBLIC

6 HOUSING.—A local housing and management authority

7 shall exclude from its procedure established under subsection

8 (a) any grievance concerning an eviction from or termi9 nation of tenancy in public housing in any State which

10 requires that, prior to eviction, a resident be provided a

11 hearing in court which the Secretary determines provides

12 the basic elements of due process.

13 (c) COSTS OF GRIEVANCE PROCEDURE.—The costs of

14 administering a grievance procedure under this section (in15 cluding costs of retaining counsel) shall be considered oper16 ating activities of a local housing and management author17 ity.

18 SEC. 111. HEADQUARTERS RESERVE FUND.

19 (a) ANNUAL RESERVATION OF AMOUNTS.—Notwith20 standing any other provision of law, the Secretary may re21 tain not more than 3 percent of the amounts appropriated

22 to carry out title II for any fiscal year to provide incremen23 tal housing assistance under title III in accordance with

24 this section.
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1 (b) USE OF AMOUNTS.—Any amounts that are re2 tained under subsection (a) shall be available for subsequent

3 allocation to specific areas and communities, and may only

4 be used for the Department of Housing and Urban Develop5 ment and—

6 (1) unforeseen housing needs resulting from nat7 ural and other disasters;

8 (2) housing needs resulting from emergencies, as

9 certified by the Secretary, other than such disasters;

10 (3) housing needs related to a settlement of liti11 gation, including settlement of fair housing litigation;

12 and

13 (4) providing technical assistance, training, and

14 electronic information systems for the Department of

15 Housing and Urban Development and local housing

16 and management authorities to improve management

17 of such authorities.

18 SEC. 112. LABOR STANDARDS.

19 (a) IN GENERAL.—Any contract for grants, sale, or

20 lease pursuant to this Act relating to public housing shall

21 contain the following provisions:

22 (1) OPERATION.—A provision requiring that not

23 less than the wages prevailing in the locality, as de24 termined or adopted (subsequent to a determination

25 under applicable State or local law) by the Secretary,
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1 shall be paid to all contractors and persons employed

2 in the operation of the low-income housing develop3 ment involved.

4 (2) PRODUCTION.—A provision that not less

5 than the wages prevailing in the locality, as predeter6 mined by the Secretary of Labor pursuant to the

7 Davis-Bacon Act (40 U.S.C. 276a–276a–5), shall be

8 paid to all laborers and mechanics employed in the

9 production of the development involved.

10 The Secretary shall require certification as to compliance

11 with the provisions of this section before making any pay12 ment under such contract.

13 (b) EXCEPTIONS.—Subsection (a) and the provisions

14 relating to wages (pursuant to subsection (a)) in any con15 tract for grants, sale, or lease pursuant to this Act relating

16 to public housing, shall not apply to any of the following

17 individuals:

18 (1) VOLUNTEERS.—Any individual who—

19 (A) performs services for which the individ20 ual volunteered;

21 (B)(i) does not receive compensation for

22 such services; or

23 (ii) is paid expenses, reasonable benefits, or

24 a nominal fee for such services; and
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1 (C) is not otherwise employed at any time

2 in the construction work.

3 (2) RESIDENTS EMPLOYED BY LHMA.—Any resi4 dent of a public housing development who is an em5 ployee of the local housing and management authority

6 for the development and performs services in connec7 tion with the operation or production of a low-income

8 housing project owned or managed by such authority.

9 SEC. 113. NONDISCRIMINATION.

10 (a) IN GENERAL.—No person in the United States

11 shall on the grounds of race, color, national origin, religion,

12 or sex be excluded from participation in, be denied the bene13 fits of, or be subjected to discrimination under any program

14 or activity funded in whole or in part with amounts made

15 available under this Act. Any prohibition against discrimi16 nation on the basis of age under the Age Discrimination

17 Act of 1975 or with respect to an otherwise qualified handi18 capped individual as provided in section 504 of the Reha19 bilitation Act of 1973 shall also apply to any such program

20 or activity.

21 (b) CIVIL RIGHTS COMPLIANCE.—Each local housing

22 and management authority that receives grant amounts

23 under this Act shall use such amounts and carry out its

24 local housing management plan approved under section 108

25 in conformity with title VI of the Civil Rights Act of 1964,
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1 the Fair Housing Act, section 504 of the Rehabilitation Act

2 of 1973, the Age Discrimination Act of 1975, and the Amer3 icans With Disabilities Act of 1990, and shall affirmatively

4 further fair housing.

5 SEC. 114. EFFECTIVE DATE AND REGULATIONS.

6 (a) EFFECTIVE DATE.—The provisions of this Act and

7 the amendments made by this Act shall take effect and shall

8 apply on the date of the enactment of this Act, unless such

9 provisions or amendments specifically provide for effective10 ness or applicability on another date certain.

11 (b) REGULATIONS.—The Secretary may issue any reg12 ulations necessary to carry out this Act.

13 (c) RULE OF CONSTRUCTION.—Any failure by the Sec14 retary to issue any regulations authorized under subsection

15 (b) shall not affect the effectiveness of any provision of this

16 Act or any amendment made by this Act.

17 TITLE II—PUBLIC HOUSING

18 Subtitle A—Block Grants

19 SEC. 201. BLOCK GRANT CONTRACTS.

20 (a) IN GENERAL.—The Secretary shall enter into con21 tracts with local housing and management authorities

22 under which—

23 (1) the Secretary agrees to make a block grant

24 under this title, in the amount provided under section

25 202(c), for assistance for low-income housing to the
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1 local housing and management authority for each fis2 cal year covered by the contract; and

3 (2) the authority agrees—

4 (A) to provide safe, clean, and healthy hous5 ing that is affordable to low-income families and

6 services for families in such housing;

7 (B) to operate, or provide for the operation,

8 of such housing in a financially sound manner;

9 (C) to use the block grant amounts in ac10 cordance with this title and the local housing

11 management plan for the authority that complies

12 with the requirements of section 107;

13 (D) to involve residents of housing assisted

14 with block grant amounts in functions and deci15 sions relating to management and the quality of

16 life in such housing;

17 (E) that the management of the public hous18 ing of the authority shall be subject to actions

19 authorized under subtitle B of title IV;

20 (F) that the Secretary may take actions

21 under section 205 with respect to improper use

22 of grant amounts provided under the contract;

23 and

24 (G) to otherwise comply with the require25 ments under this title.
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1 (b) MODIFICATION.—Contracts and agreements be2 tween the Secretary and a local housing and management

3 authority may not be amended in a manner which would—

4 (1) impair the rights of—

5 (A) leaseholders for units assisted pursuant

6 to a contract or agreement; or

7 (B) the holders of any outstanding obliga8 tions of the local housing and management au9 thority involved for which annual contributions

10 have been pledged; or

11 (2) provide for payment of block grant amounts

12 under this title in an amount exceeding the allocation

13 for the authority determined under section 204.

14 Any rule of law contrary to this subsection shall be deemed

15 inapplicable.

16 (c) CONDITIONS ON RENEWAL.—Each block grant con17 tract under this section shall provide, as a condition of re18 newal of the contract with the local housing and manage19 ment authority, that the authority’s accreditation be re20 newed by the Housing Foundation and Accreditation Board

21 pursuant to review under section 433 by such Board.

22 SEC. 202. BLOCK GRANT AUTHORITY AND AMOUNT.

23 (a) AUTHORITY.—The Secretary shall make block

24 grants under this title to eligible local housing and manage-
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1 ment authorities in accordance with block grant contracts

2 under section 201.

3 (b) ELIGIBILITY.—A local housing and management

4 authority shall be an eligible local housing and manage5 ment authority with respect to a fiscal year for purposes

6 of this title only if—

7 (1) the Secretary has entered into a block grant

8 contract with the authority;

9 (2) the authority has submitted a local housing

10 management plan to the Secretary for such fiscal

11 year;

12 (3) the plan has been determined to comply with

13 the requirements under section 107 and the Secretary

14 has not notified the authority that the plan fails to

15 comply with such requirements;

16 (4) the authority is accredited under section 433

17 by the Housing Foundation and Accreditation Board;

18 (5) the authority is exempt from local taxes, as

19 provided under subsection (d), or receives a contribu20 tion, as provided under such subsection;

21 (6) no member of the board of directors or other

22 governing body of the authority, or the executive di23 rector, has been convicted of a felony;
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1 (7) the authority has entered into an agreement

2 providing for local cooperation in accordance with

3 subsection (e); and

4 (8) the authority has not been disqualified for a

5 grant pursuant to section 205(a) or subtitle B of title

6 IV.

7 (c) AMOUNT OF GRANTS.—The amount of the grant

8 under this title for a local housing and management author9 ity for a fiscal year shall be the amount of the allocation

10 for the authority determined under section 204, except as

11 otherwise provided in this title and subtitle B of title IV.

12 (d) PAYMENTS IN LIEU OF STATE AND LOCAL TAX13 ATION OF PUBLIC HOUSING DEVELOPMENTS.—

14 (1) EXEMPTION FROM TAXATION.—A local hous15 ing and management authority may receive a block

16 grant under this title only if—

17 (A)(i) the developments of the authority (ex18 clusive of any portions not assisted with

19 amounts provided under this title) are exempt

20 from all real and personal property taxes levied

21 or imposed by the State, city, county, or other

22 political subdivision; and

23 (ii) the local housing and management au24 thority makes payments in lieu of taxes to such

25 taxing authority equal to 10 percent of the sum,
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1 for units charged in the developments of the au2 thority, of the difference between the gross rent

3 and the utility cost, or such lesser amount as

4 is—

5 (I) prescribed by State law;

6 (II) agreed to by the local governing

7 body in its agreement under subsection (e)

8 for local cooperation with the local housing

9 and management authority or under a

10 waiver by the local governing body; or

11 (III) due to failure of a local public

12 body or bodies other than the local housing

13 and management authority to perform any

14 obligation under such agreement; or

15 (B) the authority complies with the require16 ments under subparagraph (A) with respect to

17 public housing developments (including public

18 housing units in mixed-income developments),

19 but the authority agrees that the units other than

20 public housing units in any mixed-income devel21 opments (as such term is defined in section

22 221(c)(2)) shall not be subject to any otherwise

23 applicable real property taxes imposed by the

24 State, city, county or other political subdivision.
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1 (2) EFFECT OF FAILURE TO EXEMPT FROM TAX2 ATION.—Notwithstanding paragraph (1), a local

3 housing and management authority that does not

4 comply with the requirements under such paragraph

5 may receive a block grant under this title, but only

6 if the State, city, county, or other political subdivi7 sion in which the development is situated contributes,

8 in the form of cash or tax remission, the amount by

9 which the taxes paid with respect to the development

10 exceed 10 percent of the gross rent and utility cost

11 charged in the development.

12 (e) LOCAL COOPERATION.—In recognition that there

13 should be local determination of the need for low-income

14 housing to meet needs not being adequately met by private

15 enterprise, the Secretary may not make any grant under

16 this title to a local housing and management authority un17 less the governing body of the locality involved has entered

18 into an agreement with the authority providing for the local

19 cooperation required by the Secretary pursuant to this title.

20 (f) EXCEPTION.—Notwithstanding subsection (a), the

21 Secretary may make a grant under this title for a local

22 housing and management authority that is not an eligible

23 local housing and management authority but only for the

24 period necessary to secure, in accordance with this title, an
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1 alternative local housing and management authority for the

2 public housing of the ineligible authority.

3 SEC. 203. ELIGIBLE AND REQUIRED ACTIVITIES.

4 (a) ELIGIBLE ACTIVITIES.—Except as provided in

5 subsection (b), amounts from a grant made under this title

6 may be used only for the following activities and costs:

7 (1) PRODUCTION.—Production of public housing

8 developments and any production costs.

9 (2) OPERATION.—Operation of public housing

10 developments in a manner appropriate to ensure the

11 viability of the developments as low-income housing

12 and provision of safety, security, and law enforcement

13 measures and activities necessary to protect residents

14 from crime, which shall include providing adequate

15 operating services and reserve funds.

16 (3) MODERNIZATION.—Improvement of the phys17 ical condition of existing public housing developments

18 (including routine and timely improvements, reha19 bilitation, and replacement of systems, and major re20 habilitation, redesign, reconstruction, and redevelop21 ment) and upgrading the management and operation

22 of such developments, to ensure that such develop23 ments continue to be available for use as low-income

24 housing.
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1 (4) RESIDENT PROGRAMS.—Provision of social,

2 educational, employment, self-sufficiency, and other

3 services to the residents of public housing develop4 ments, including providing part of the non-Federal

5 share required in connection with activities under6 taken under Federal grant-in-aid programs.

7 (5) HOMEOWNERSHIP ACTIVITIES.—Activities in

8 connection with a homeownership program for public

9 housing residents under subtitle D, including provid10 ing financing or assistance for purchasing housing, or

11 the provision of financial assistance to resident man12 agement corporations or resident councils to obtain

13 training, technical assistance, and educational assist14 ance to promote homeownership opportunities.

15 (6) RESIDENT MANAGEMENT ACTIVITIES.—Ac16 tivities in connection with establishing, organizing,

17 training, and assisting resident councils and resident

18 management corporations for public housing develop19 ments.

20 (7) DEMOLITION AND DISPOSITION ACTIVITIES.—

21 Activities in connection with the disposition or demo22 lition of public housing under section 261.

23 (8) PAYMENTS IN LIEU OF TAXES.—Payments in

24 accordance with the requirement under section

25 202(d)(1).
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1 (9) EMERGENCY CORRECTIONS.—Correction of

2 conditions that constitute an immediate threat to the

3 health or safety of residents of public housing develop4 ments, without regard to whether the need for such

5 correction is indicated in the local housing manage6 ment plan of the authority.

7 (10) PREPARATION OF LOCAL HOUSING MANAGE8 MENT PLANS.—Preparation of local housing manage9 ment plans (including reasonable costs that may be

10 necessary to assist residents in participating in the

11 planning process in a meaningful way) and conduct12 ing annual financial and performance audits under

13 section 432.

14 (11) LHMA INSURANCE.—Purchase of insurance

15 by local housing and management authorities (and

16 their contractors), except that—

17 (A) any such insurance so purchased shall

18 be competitively selected;

19 (B) any coverage provided under such poli20 cies, as certified by the authority, shall provide

21 reasonable coverage for the risk of liability expo22 sure, taking into consideration the potential li23 ability concerns inherent in the testing and

24 abatement of lead-based paint, and the manage-
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1 rial and quality assurance responsibilities asso2 ciated with the conduct of such activities; and

3 (C) notwithstanding any other provision of

4 State or Federal law, regulation or other require5 ment, any line of insurance from a nonprofit in6 surance entity, owned and controlled by local

7 housing and management authorities and ap8 proved by the Secretary, may be purchased with9 out regard to competitive procurement.

10 (12) PAYMENT OF OUTSTANDING DEVELOPMENT

11 BONDS AND NOTES ISSUED UNDER 1937 ACT.—Pay12 ment of principal and interest payable on obligations

13 issued pursuant to section 5 of the United States

14 Housing Act of 1937 (as in effect before the date of

15 the enactment of this Act) by a local housing and

16 management authority to finance the production of

17 public housing, except that the Secretary shall retain

18 the authority to forgive such debt.

19 (13) MUTUAL HELP HOMEOWNERSHIP OPPOR20 TUNITY PROGRAMS FOR INDIAN HOUSING AUTHORI21 TIES.—In the case of an Indian housing authority,

22 production, operation, and modernization of develop23 ments under a mutual help homeownership program

24 subject to the requirements under section 202 of the

25 United States Housing Act of 1937 (as in effect im-
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1 mediately before the enactment of this Act), except

2 that any reference in such section to assistance under

3 such section or such Act shall be construed to refer to

4 assistance under this title and subsection (b) of such

5 section shall not apply.

6 (b) REQUIRED CONVERSION OF ASSISTANCE FOR PUB7 LIC HOUSING TO RENTAL HOUSING ASSISTANCE.—

8 (1) REQUIREMENT.—A local housing and man9 agement authority that receives grant amounts under

10 this title shall provide assistance in the form of rental

11 housing assistance under title III or appropriate site

12 revitalization or other appropriate capital improve13 ments approved by the Secretary, in lieu of assisting

14 the operation and modernization of any building or

15 buildings of public housing, if the authority provides

16 sufficient evidence to the Secretary that—

17 (A) the building is distressed or substan18 tially vacant;

19 (B) the estimated cost of continued oper20 ation and modernization of the building exceeds

21 the cost of providing choice-based rental assist22 ance under title III; and

23 (C) there is a sufficient supply of available

24 and affordable housing to make the use of such

25 voucher assistance feasible.
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1 (2) USE OF OTHER AMOUNTS.—In addition to

2 grant amounts under this title attributable (pursuant

3 to the formula under section 204) to the building or

4 buildings identified under paragraph (1), the Sec5 retary may use amounts provided in appropriation

6 Acts for incremental choice-based housing assistance

7 and, to the extent approved in advance, for the re8 newal of assistance under section 8 of the United

9 States Housing Act of 1937 (as in effect before the

10 date of enactment of this Act), for assistance under

11 title III for families residing in such building or

12 buildings or for appropriate site revitalization or

13 other appropriate capital improvements approved by

14 the Secretary.

15 (3) ENFORCEMENT.—The Secretary shall take

16 appropriate action to ensure conversion of any build17 ing or buildings identified under paragraph (1) and

18 any other appropriate action under this subsection, if

19 the local housing and management authority fails to

20 take appropriate action under this subsection.

21 (4) FAILURE OF LHMA’S TO COMPLY WITH CON22 VERSION REQUIREMENT.—If the Secretary determines

23 that—
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1 (A) a local housing and management au2 thority has failed under paragraph (1) to iden3 tify a building or buildings in a timely manner,

4 (B) a local housing and management au5 thority has failed to identify one or more build6 ings which the Secretary determines should have

7 been identified under paragraph (1), or

8 (C) one or more of the buildings identified

9 by the local housing and management authority

10 pursuant to paragraph (1) should not, in the de11 termination of the Secretary, have been identi12 fied under that paragraph,

13 the Secretary may identify a building or buildings for

14 conversion and other appropriate action pursuant to

15 this subsection.

16 (5) CESSATION OF UNNECESSARY SPENDING.—

17 Notwithstanding any other provision of law, if, in the

18 determination of the Secretary, a building or build19 ings meets or is likely to meet the criteria set forth

20 in paragraph (1), the Secretary may direct the local

21 housing and management authority to cease addi22 tional spending in connection with such building or

23 buildings, except to the extent that additional spend24 ing is necessary to ensure safe, clean, and healthy

25 housing until the Secretary determines or approves
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1 an appropriate course of action with respect to such

2 building or buildings under this subsection.

3 (6) USE OF BUDGET AUTHORITY.—Notwith4 standing any other provision of law, if a building or

5 buildings are identified pursuant to paragraph (1),

6 the Secretary may authorize or direct the transfer, to

7 the choice-based or tenant-based assistance program of

8 such authority or to appropriate site revitalization or

9 other capital improvements approved by the Sec10 retary, of—

11 (A) in the case of an authority receiving as12 sistance under the comprehensive improvement

13 assistance program, any amounts obligated by

14 the Secretary for the modernization of such

15 building or buildings pursuant to section 14 of

16 the United States Housing Act of 1937, as in ef17 fect immediately before the date of enactment of

18 this Act;

19 (B) in the case of an authority receiving

20 public and Indian housing modernization assist21 ance by formula pursuant to such section 14,

22 any amounts provided to the authority which

23 are attributable pursuant to the formula for allo24 cating such assistance to such building or build25 ings;
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1 (C) in the case of an authority receiving as2 sistance for the major reconstruction of obsolete

3 projects, any amounts obligated by the Secretary

4 for the major reconstruction of such building or

5 buildings pursuant to section 5(j)(2) of the Unit6 ed States Housing Act of 1937, as in effect im7 mediately before the date of enactment of this

8 Act; and

9 (D) in the case of an authority receiving as10 sistance pursuant to the formula under section

11 204, any amounts provided to the authority

12 which are attributable pursuant to the formula

13 for allocating such assistance to such building or

14 buildings.

15 (c) FUNGIBILITY OF AMOUNTS.—Any amounts pro16 vided under a block grant under this title may be used for

17 any eligible activity under subsection (a) or for conversion

18 under subsection (b), notwithstanding whether such

19 amounts are attributable to the operating allocation under

20 section 204(d)(1) or the capital improvements allocation for

21 the local housing and management authority determined

22 under section 204(d)(2).

23 (d) COMPLIANCE WITH PLAN.—The local housing

24 management plan submitted by a local housing and man25 agement authority (including any amendments to the
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1 plan), unless determined under section 108 not to comply

2 with the requirements under section 107, shall be binding

3 upon the Secretary and the local housing and management

4 authority and the authority shall use any grant amounts

5 provided under this title for eligible activities under sub6 section (a) in accordance with the plan. This subsection

7 may not be construed to preclude changes or amendments

8 to the plan, as authorized under section 108(e) or any ac9 tions authorized by this Act to be taken without regard to

10 a local housing management plan.

11 SEC. 204. DETERMINATION OF BLOCK GRANT ALLOCATION.

12 (a) IN GENERAL.—For each fiscal year, after reserving

13 amounts under section 111 from the aggregate amount

14 made available for the fiscal year for carrying out this title,

15 the Secretary shall allocate any remaining amounts among

16 eligible local housing and management authorities in ac17 cordance with this section, so that the sum of all of the allo18 cations for all eligible authorities is equal to such remain19 ing amount.

20 (b) ALLOCATION AMOUNT.—The Secretary shall deter21 mine the amount of the allocation for each eligible local

22 housing and management authority, which shall be—

23 (1) for any fiscal year beginning after the enact24 ment of a law containing a formula described in sub-
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1 section (c), the amount determined under such for2 mula; or

3 (2) for any fiscal year beginning before the expi4 ration of such period, the sum of—

5 (A) the operating allocation determined

6 under subsection (d)(1) for the authority; and

7 (B) the capital improvement allocation de8 termined under subsection (d)(2) for the author9 ity.

10 (c) PERMANENT ALLOCATION FORMULA.—

11 (1) FORMULA.—A formula under this subsection

12 shall provide for allocating amounts available for a

13 fiscal year for block grants under this title for each

14 local housing and management authority. The for15 mula should reward performance and may consider

16 factors that reflect the different characteristics and

17 sizes of local housing and management authorities,

18 the relative needs, revenues, costs, and capital im19 provements of authorities, and the relative costs to au20 thorities of operating a well-managed authority that

21 meets the performance targets for the authority estab22 lished in the local housing management plan for the

23 authority.

24 (2) DEVELOPMENT UNDER NEGOTIATED RULE25 MAKING PROCEDURE.—The formula under this sub-
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1 section shall be developed according to procedures for

2 issuance of regulations under the negotiated rule3 making procedure under subchapter III of chapter 5

4 of title 5, United States Code, except that the formula

5 shall not be contained in a regulation.

6 (3) REPORT.—Not later than the expiration of

7 the 18-month period beginning upon the enactment of

8 this Act, the Secretary shall submit a report to the

9 Congress containing the proposed formula established

10 pursuant to paragraph (2) that meets the require11 ments of this subsection.

12 (d) INTERIM ALLOCATION REQUIREMENTS.—

13 (1) OPERATING ALLOCATION.—

14 (A) APPLICABILITY TO 50 PERCENT OF AP15 PROPRIATED AMOUNTS.—Of any amounts avail16 able for allocation under this subsection for a fis17 cal year, 50 percent shall be used only to provide

18 amounts for operating allocations under this

19 paragraph for eligible local housing and manage20 ment authorities.

21 (B) DETERMINATION.—The operating allo22 cation under this subsection for a local housing

23 and management authority for a fiscal year

24 shall be an amount determined by applying, to

25 the amount to be allocated under this paragraph,
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1 the formula used for determining the distribution

2 of operating subsidies for fiscal year 1995 to

3 public housing agencies (as modified under sub4 paragraph (C)) under section 9 of this Act, as in

5 effect before the enactment of this Act.

6 (C) TREATMENT OF CHRONICALLY VACANT

7 UNITS.—The Secretary shall revise the formula

8 referred to in subparagraph (B) so that the for9 mula does not provide any amounts, other than

10 utility costs, attributable to any dwelling unit of

11 a local housing and management authority that

12 has been vacant continuously for 6 or more

13 months. A unit shall not be considered vacant for

14 purposes of this paragraph if the unit is unoccu15 pied because of rehabilitation or renovation that

16 is on-schedule.

17 (2) CAPITAL IMPROVEMENT ALLOCATION.—

18 (A) APPLICABILITY TO 50 PERCENT OF AP19 PROPRIATED AMOUNTS.—Of any amounts avail20 able for allocation under this subsection for a fis21 cal year, 50 percent shall be used only to provide

22 amounts for capital improvement allocations

23 under this paragraph for eligible local housing

24 and management authorities.
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1 (B) DETERMINATION.—The capital im2 provement allocation under this subsection for

3 an eligible local housing and management au4 thority for a fiscal year shall be determined by

5 applying, to the amount to be allocated under

6 this paragraph, the formula used for determining

7 the distribution of modernization assistance for

8 fiscal year 1995 to public housing agencies under

9 section 14 of this Act, as in effect before the en10 actment of this Act, except that Secretary shall

11 establish a method for taking into consideration

12 allocation of amounts under the comprehensive

13 improvement assistance program.

14 SEC. 205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

15 (a) IN GENERAL.—In addition to any other actions

16 authorized under this title, if the Secretary finds pursuant

17 to an annual financial and performance audit under sec18 tion 432 that a local housing and management authority

19 receiving grant amounts under this title has failed to com20 ply substantially with any provision of this title, the Sec21 retary may—

22 (1) terminate payments under this title to the

23 authority;
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1 (2) withhold from the authority amounts from

2 the total allocation for the authority pursuant to sec3 tion 204;

4 (3) reduce the amount of future grant payments

5 under this title to the authority by an amount equal

6 to the amount of such payments that were not ex7 pended in accordance with this title;

8 (4) limit the availability of grant amounts pro9 vided to the authority under this title to programs,

10 projects, or activities not affected by such failure to

11 comply;

12 (5) withhold from the authority amounts allo13 cated for the authority under title III; or

14 (6) order other corrective action with respect to

15 the authority.

16 (b) TERMINATION OF COMPLIANCE ACTION.—If the

17 Secretary takes action under subsection (a) with respect to

18 a local housing and management authority, the Secretary

19 shall—

20 (1) in the case of action under subsection (a)(1),

21 resume payments of grant amounts under this title to

22 the authority in the full amount of the total allocation

23 under section 204 for the authority at the time that

24 the Secretary first determines that the authority will

25 comply with the provisions of this title;
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1 (2) in the case of action under paragraph (2),

2 (5), or (6) of subsection (a), make withheld amounts

3 available as the Secretary considers appropriate to

4 ensure that the authority complies with the provisions

5 of this title; or

6 (3) in the case of action under subsection (a)(4),

7 release such restrictions at the time that the Secretary

8 first determines that the authority will comply with

9 the provisions of this title.

10 Subtitle B—Admissions and

11 Occupancy Requirements

12 SEC. 221. LOW-INCOME HOUSING REQUIREMENT.

13 (a) PRODUCTION ASSISTANCE.—Any public housing

14 produced using amounts provided under a grant under this

15 title or under the United States Housing Act of 1937 shall

16 be operated as public housing for the 40-year period begin17 ning upon such production.

18 (b) OPERATING ASSISTANCE.—No portion of any pub19 lic housing development operated with amounts from a

20 grant under this title or operating assistance provided

21 under the United States Housing Act of 1937 may be dis22 posed of before the expiration of the 10-year period begin23 ning upon the conclusion of the fiscal year for which the

24 grant or such assistance was provided, except as provided

25 in this Act.
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1 (c) CAPITAL IMPROVEMENTS ASSISTANCE.—Amounts

2 may be used for eligible activities under section 203(a)(3)

3 only for the following housing developments:

4 (1) LOW-INCOME DEVELOPMENTS.—Amounts

5 may be used for a low-income housing development

6 that—

7 (A) is owned by local housing and manage8 ment authorities;

9 (B) is operated as low-income rental hous10 ing and produced or operated with assistance

11 provided under a grant under this title; and

12 (C) is consistent with the purposes of this

13 title.

14 Any development, or portion thereof, referred to in

15 this paragraph for which activities under section

16 203(a)(3) are conducted using amounts from a grant

17 under this title shall be maintained and used as pub18 lic housing for the 20-year period beginning upon the

19 receipt of such grant. Any public housing develop20 ment, or portion thereof, that received the benefit of

21 a grant pursuant to section 14 of the United States

22 Housing Act of 1937 shall be maintained and used as

23 public housing for the 20-year period beginning upon

24 receipt of such amounts.
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1 (2) MIXED INCOME DEVELOPMENTS.—Amounts

2 may be used for mixed-income developments, which

3 shall be a housing development that—

4 (A) contains dwelling units that are avail5 able for occupancy by families other than low-in6 come families;

7 (B) contains a number of dwelling units—

8 (i) which units are made available (by

9 master contract or individual lease) for oc10 cupancy only by low- and very low-income

11 families identified by the local housing and

12 management authority;

13 (ii) which number is not less than a

14 reasonable number of units, including relat15 ed amenities, taking into account the

16 amount of the assistance provided by the

17 authority compared to the total investment

18 (including costs of operation) in the devel19 opment;

20 (iii) which units are subject to the stat21 utory and regulatory requirements of the

22 public housing program, except that the

23 Secretary may grant appropriate waivers to

24 such statutory and regulatory requirements

25 if reductions in funding or other changes to
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1 the program make continued application of

2 such requirements impracticable;

3 (iv) which units are specially des4 ignated as dwelling units under this sub5 paragraph, except the equivalent units in

6 the development may be substituted for des7 ignated units during the period the units

8 are subject to the requirements of the public

9 housing program; and

10 (v) which units shall be eligible for as11 sistance under this title; and

12 (C) is owned by the local housing and man13 agement authority, an affiliate controlled by it,

14 or another appropriate entity.

15 Notwithstanding any other provision of this title, to

16 facilitate the establishment of socioeconomically mixed

17 communities, a local housing and management au18 thority that uses grant amounts under this title for

19 a mixed income development under this paragraph

20 may, to the extent that income from such a develop21 ment reduces the amount of grant amounts used for

22 operating or other costs relating to public housing,

23 use such resulting savings to rent privately developed

24 dwelling units in the neighborhood of the mixed in25 come development. Such units shall be made available
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1 for occupancy only by low-income families eligible for

2 residency in public housing.

3 SEC. 222. FAMILY ELIGIBILITY.

4 (a) IN GENERAL.—Dwelling units in public housing

5 may be rented only to families who are low-income families

6 at the time of their initial occupancy of such units.

7 (b) INCOME MIX WITHIN DEVELOPMENTS.—A local

8 housing and management authority may establish and uti9 lize income-mix criteria for the selection of residents for

10 dwelling units in public housing developments that limit

11 admission to a development by selecting applicants having

12 incomes appropriate so that the mix of incomes of families

13 occupying the development is proportional to the income

14 mix in the eligible population of the jurisdiction of the au15 thority, as adjusted to take into consideration the severity

16 of housing need. Any criteria established under this sub17 section shall be subject to the provisions of subsection (c).

18 (c) INCOME MIX.—Of the public housing dwelling

19 units of a local housing and management authority made

20 available for occupancy after the date of the enactment of

21 this Act, not less than 25 percent shall be occupied by low22 income families whose incomes do not exceed 30 percent of

23 the area median income.

24 (d) WAIVER OF ELIGIBILITY REQUIREMENTS FOR OC25 CUPANCY BY POLICE OFFICERS.—
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1 (1) AUTHORITY AND WAIVER.—To provide occu2 pancy in public housing dwelling units to police offi3 cers and other law enforcement or security personnel

4 (who are not otherwise eligible for residence in public

5 housing) and to increase security for other public

6 housing residents in developments where crime has

7 been a problem, a local housing and management au8 thority may, with respect to such units and subject to

9 paragraph (2)—

10 (A) waive—

11 (i) the provisions of subsection (a) of

12 this section and section 225(a);

13 (ii) the applicability of—

14 (I) any preferences for occupancy

15 established under section 223;

16 (II) the minimum rental amount

17 established pursuant to section 225(b)

18 and any maximum monthly rental

19 amount established pursuant to such

20 section;

21 (III) any criteria relating to

22 project income mix established under

23 subsection (b);

24 (IV) the income mix requirements

25 under subsection (c); and
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1 (V) any other occupancy limita2 tions or requirements; and

3 (B) establish special rent requirements and

4 other terms and conditions of occupancy.

5 (2) CONDITIONS OF WAIVER.—A local housing

6 and management authority may take the actions au7 thorized in paragraph (1) only if authority deter8 mines that such actions will increase security in the

9 public housing developments involved and will not re10 sult in a significant reduction of units available for

11 residence by low-income families.

12 SEC. 223. PREFERENCES FOR OCCUPANCY.

13 (a) AUTHORITY TO ESTABLISH.—Any local housing

14 and management authority may establish a system for

15 making dwelling units in public housing available for occu16 pancy that provides preference for such occupancy to fami17 lies having certain characteristics.

18 (b) CONTENT.—Each system of preferences established

19 pursuant to this section shall be based upon local housing

20 needs and priorities, as determined by the local housing and

21 management authority using generally accepted data

22 sources. Each system of preferences established pursuant to

23 this section shall be based upon local housing needs and

24 priorities using generally accepted data sources, including

25 any information obtained pursuant to an opportunity for
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1 public comment as provided under section 107(e) or under

2 the requirements applicable to comprehensive housing af3 fordability strategy for the relevant jurisdiction.

4 SEC. 224. ADMISSION PROCEDURES.

5 (a) ADMISSION REQUIREMENTS.—A local housing and

6 management authority shall ensure that each family resid7 ing in a public housing development owned or administered

8 by the authority is admitted in accordance with the proce9 dures established under this title by the authority and the

10 income limits under section 222.

11 (b) AVAILABILITY OF CRIMINAL RECORDS.—

12 (1) AVAILABILITY.—Notwithstanding any other

13 provision of Federal, State, or local law, upon the re14 quest of any local housing and management author15 ity, the National Crime Information Center, police

16 departments, and any other law enforcement entities

17 shall provide information to the authority regarding

18 the criminal convictions of applicants for, or resi19 dents of, public housing for the purpose of applicant

20 screening, lease enforcement, and eviction.

21 (2) CONTENT.—The information provided under

22 paragraph (1) may not include information regard23 ing any criminal conviction of such an applicant or

24 resident for any act (or failure to act) occurring be25 fore the applicant or resident reached 18 years of age.
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1 (3) CONFIDENTIALITY.—A local housing and

2 management authority receiving information under

3 this subsection may use such information only for the

4 purposes provided in this subsection and such infor5 mation may not be disclosed to any person who is not

6 an officer or employee of the authority. The Secretary

7 shall, by regulation, establish procedures necessary to

8 ensure that information provided to a local housing

9 and management authority under this subsection is

10 used, and confidentiality of such information is

11 maintained, as required under this subsection.

12 (4) PENALTY.—Any person who knowingly and

13 willfully requests or obtains any information concern14 ing an applicant for, or resident of, public housing

15 pursuant to the authority under this subsection under

16 false pretenses, or any person who knowingly and

17 willfully discloses any such information in any man18 ner to any individual not entitled under any law to

19 receive it, shall be guilty of a misdemeanor and fined

20 not more than $5,000. The term ‘‘person’’ as used in

21 this paragraph shall include an officer or employee of

22 any local housing and management authority.

23 (5) CIVIL ACTION.—Any applicant for, or resi24 dent of, public housing affected by (A) a negligent or

25 knowing disclosure of information referred to in this
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1 section about such person by an officer or employee

2 of any local housing and management authority,

3 which disclosure is not authorized by this subsection,

4 or (B) any other negligent or knowing action that is

5 inconsistent with this subsection, may bring a civil

6 action for damages and such other relief as may be

7 appropriate against any officer or employee of any

8 local housing and management authority responsible

9 for such unauthorized action. The district court of the

10 United States in the district in which the affected ap11 plicant or resident resides, in which such unauthor12 ized action occurred, or in which the officer or em13 ployee alleged to be responsible for any such unau14 thorized action resides, shall have jurisdiction in such

15 matters. Appropriate relief that may be ordered by

16 such district courts shall include reasonable attorney’s

17 fees and other litigation costs.

18 (6) FEES.—A local housing and management

19 authority may pay a reasonable fee to obtain infor20 mation under this subsection.

21 (c) NOTIFICATION OF APPLICATION DECISIONS.—A

22 local housing and management authority shall establish

23 procedures designed to provide for notification to an appli24 cant for admission to public housing of the determination

25 with respect to such application, the basis for the deter-
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1 mination, and, if the applicant is determined to be eligible

2 for admission, the projected date of occupancy (to the extent

3 such date can reasonably be determined). If an authority

4 denies an applicant admission to public housing, the au5 thority shall notify the applicant that the applicant may

6 request an informal hearing on the denial within a reason7 able time of such notification.

8 (d) CONFIDENTIALITY FOR VICTIMS OF DOMESTIC VIO9 LENCE.—A local housing and management authority shall

10 be subject to the restrictions regarding release of informa11 tion relating to the identity and new residence of any fam12 ily in public housing that was a victim of domestic violence

13 that are applicable to shelters pursuant to the Family Vio14 lence Prevention and Services Act. The authority shall work

15 with the United States Postal Service to establish proce16 dures consistent with the confidentiality provisions in the

17 Violence Against Women Act of 1994.

18 (e) TRANSFERS.—A local housing and management

19 authority may apply, to each public housing resident seek20 ing to transfer from one development to another develop21 ment owned or operated by the authority, the screening pro22 cedures applicable at such time to new applicants for public

23 housing.
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1 SEC. 225. FAMILY RENTAL PAYMENT.

2 (a) RENTAL CONTRIBUTION BY RESIDENT.—A family

3 shall pay as monthly rent for a dwelling unit in public

4 housing the amount that the local housing and management

5 authority determines is appropriate with respect to the fam6 ily and the unit, which shall be—

7 (1) based upon factors determined by the author8 ity, which may include the adjusted income of the

9 resident, type and size of dwelling unit, operating

10 and other expenses of the authority, or any other fac11 tors that the authority considers appropriate; and

12 (2) an amount that is not less than the mini13 mum monthly rental amount under subsection (b)(1)

14 nor more than any maximum monthly rental amount

15 established for the dwelling unit pursuant to sub16 section (b)(2).

17 In determining the amount of the rent charged for a dwell18 ing unit, a local housing and management authority shall

19 take into consideration the characteristics of the population

20 served by the authority, the goals of the local housing man21 agement plan for the authority, and the goals under the

22 comprehensive housing affordability strategy under section

23 105 of the Cranston-Gonzalez National Affordable Housing

24 Act (or any consolidated plan incorporating such strategy)

25 for the applicable jurisdiction.

26 (b) ALLOWABLE RENTS.—
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1 (1) MINIMUM RENTAL.—Each local housing and

2 management authority shall establish, for each dwell3 ing unit in public housing owned or administered by

4 the authority, a minimum monthly rental contribu5 tion, which—

6 (A) may not be less than $25;

7 (B) shall include any portion of the cost of

8 utilities for the unit for which the resident is re9 sponsible; and

10 (C) may be increased annually by the au11 thority, except that no such annual increase may

12 exceed 10 percent of the amount of the minimum

13 monthly rental contribution in effect for the pre14 ceding year.

15 (2) MAXIMUM RENTAL.—Each local housing and

16 management authority may establish, for each dwell17 ing unit in public housing owned or administered by

18 the authority, a maximum monthly rental amount,

19 which shall be an amount determined by the author20 ity which is based on, but does not exceed—

21 (A) the average, for dwelling units of simi22 lar size in public housing developments owned

23 and operated by such authority, of operating ex24 penses attributable to such units;
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1 (B) the reasonable rental value of the unit;

2 or

3 (C) the local market rent for comparable

4 units of similar size.

5 (c) INCOME REVIEWS.—If a local housing and man6 agement authority establishes the amount of rent paid by

7 a family for a public housing dwelling unit based on the

8 adjusted income of the family, the authority shall review

9 the incomes of such family occupying dwelling units in pub10 lic housing owned or administered by the authority not less

11 than annually.

12 (d) REVIEW OF MAXIMUM AND MINIMUM RENTS.—

13 (1) RENTAL CHARGES.—If the Secretary deter14 mines, at any time, that a significant percentage of

15 the public housing dwelling units owned or operated

16 by a large local housing and management authority

17 are occupied by households paying more than 30 per18 cent of their adjusted incomes for rent, the Secretary

19 shall review the maximum and minimum monthly

20 rental amounts established by the authority.

21 (2) POPULATION SERVED.—If the Secretary de22 termines, at any time, that less than 40 percent of the

23 public housing dwelling units owned or operated by

24 a large local housing and management authority are

25 occupied by households whose incomes do not exceed
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1 30 percent of the area median income, the Secretary

2 shall review the maximum and minimum monthly

3 rental amounts established by the authority.

4 (3) MODIFICATION OF MAXIMUM AND MINIMUM

5 RENTAL AMOUNTS.—If, pursuant to review under this

6 subsection, the Secretary determines that the maxi7 mum and minimum rental amounts for a large local

8 housing and management authority are not appro9 priate to serve the needs of the low-income population

10 of the jurisdiction served by the authority (taking into

11 consideration the financial resources and costs of the

12 authority), as identified in the approved local housing

13 management plan of the authority, the Secretary may

14 require the authority to modify the maximum and

15 minimum monthly rental amounts.

16 (4) LARGE LHMA.—For purposes of this sub17 section, the term ‘‘large local housing and manage18 ment authority’’ means a local housing and manage19 ment authority that owns or operates 1250 or more

20 public housing dwelling units.

21 (e) PHASE-IN OF RENT CONTRIBUTION INCREASES.—

22 (1) IN GENERAL.—Except as provided in para23 graph (2), for any family residing in a dwelling unit

24 in public housing upon the date of the enactment of

25 this Act, if the monthly contribution for rental of an
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1 assisted dwelling unit to be paid by the family upon

2 initial applicability of this title is greater than the

3 amount paid by the family under the provisions of

4 the United States Housing Act of 1937 immediately

5 before such applicability, any such resulting increase

6 in rent contribution shall be—

7 (A) phased in equally over a period of not

8 less than 3 years, if such increase is 30 percent

9 or more of such contribution before initial appli10 cability; and

11 (B) limited to not more than 10 percent per

12 year if such increase is more than 10 percent but

13 less than 30 percent of such contribution before

14 initial applicability.

15 (2) EXCEPTION.—The minimum rent contribu16 tion requirement under subsection (b)(1)(A) shall

17 apply to each family described in paragraph (1) of

18 this subsection, notwithstanding such paragraph.

19 SEC. 226. LEASE REQUIREMENTS.

20 In renting dwelling units in a public housing develop21 ment, each local housing and management authority shall

22 utilize leases that—

23 (1) do not contain unreasonable terms and con24 ditions;
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1 (2) obligate the local housing and management

2 authority to maintain the development in compliance

3 with the housing quality requirements under section

4 232;

5 (3) require the local housing and management

6 authority to give adequate written notice of termi7 nation of the lease, which shall not be less than—

8 (A) the period provided under the applica9 ble law of the jurisdiction or 14 days, whichever

10 is less, in the case of nonpayment of rent;

11 (B) a reasonable period of time, but not to

12 exceed 14 days, when the health or safety of other

13 residents or local housing and management au14 thority employees is threatened; and

15 (C) the period of time provided under the

16 applicable law of the jurisdiction, in any other

17 case;

18 (4) require that the local housing and manage19 ment authority may not terminate the tenancy except

20 for violation of the terms or conditions of the lease,

21 violation of applicable Federal, State, or local law, or

22 for other good cause;

23 (5) provide that the local housing and manage24 ment authority may terminate the tenancy of a pub25 lic housing resident for any activity, engaged in by
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1 a public housing resident, any member of the resi2 dent’s household, or any guest or other person under

3 the resident’s control, that—

4 (A) threatens the health or safety of, or

5 right to peaceful enjoyment of the premises by,

6 other residents or employees of the local housing

7 and management authority or other manager of

8 the housing;

9 (B) threatens the health or safety of, or

10 right to peaceful enjoyment of their premises by,

11 persons residing in the immediate vicinity of the

12 premises; or

13 (C) is criminal activity (including drug-re14 lated criminal activity);

15 (6) provide that any occupancy in violation of

16 the provisions of section 227(a)(4) shall be cause for

17 termination of tenancy; and

18 (7) specify that, with respect to any notice of

19 eviction or termination, notwithstanding any State

20 law, a public housing resident shall be informed of the

21 opportunity, prior to any hearing or trial, to exam22 ine any relevant documents, records or regulations di23 rectly related to the eviction or termination.
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1 SEC. 227. DESIGNATED HOUSING FOR ELDERLY AND DIS2 ABLED FAMILIES.

3 (a) AUTHORITY TO PROVIDE DESIGNATED HOUS4 ING.—

5 (1) IN GENERAL.—Notwithstanding any other

6 provision of law, a local housing and management

7 authority for which the information required under

8 subsection (c) is in effect may provide public housing

9 developments (or portions of developments) designated

10 for occupancy by (A) only elderly families, (B) only

11 disabled families, or (C) elderly and disabled families.

12 (2) PRIORITY FOR OCCUPANCY.—In determining

13 priority for admission to public housing developments

14 (or portions of developments) that are designated for

15 occupancy as provided in paragraph (1), the local

16 housing and management authority may make units

17 in such developments (or portions) available only to

18 the types of families for whom the development is des19 ignated.

20 (3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES.—

21 If a local housing and management authority deter22 mines that there are insufficient numbers of elderly

23 families to fill all the units in a development (or por24 tion of a development) designated under paragraph

25 (1) for occupancy by only elderly families, the author-
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1 ity may provide that near-elderly families may oc2 cupy dwelling units in the development (or portion).

3 (4) LIMITATION ON OCCUPANCY IN DEVELOP4 MENTS FOR ELDERLY FAMILIES.—

5 (A) IN GENERAL.—Subject only to the pro6 visions of subsection (b) and notwithstanding

7 any other provision of law, a dwelling unit in

8 a development (or portion of a development) that

9 is designated under paragraph (1) for occupancy

10 by only elderly families or by only elderly and

11 disabled families shall not be occupied by any

12 individual who is not an elderly person and—

13 (i) who currently illegally uses a con14 trolled substance; or

15 (ii) whose history of illegal use of a

16 controlled substance or use of alcohol, or

17 current use of alcohol, provides reasonable

18 cause for the local housing and management

19 authority to believe that the occupancy by

20 such individual may interfere with the

21 health, safety, or right to peaceful enjoyment

22 of the premises by other residents.

23 (B) CONSIDERATION OF REHABILITATION.—

24 In determining whether, pursuant to subpara25 graph (A), to deny occupancy to any individual
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1 based on a history of use of a controlled sub2 stance or alcohol, a local housing and manage3 ment authority may consider the factors under

4 section 105(b).

5 (b) STANDARDS REGARDING EVICTIONS.—

6 (1) LIMITATION.—Except as provided in para7 graph (2), any resident who is lawfully residing in

8 a dwelling unit in a development designated for occu9 pancy under subsection (a)(1) may not be evicted or

10 otherwise required to vacate such unit because of the

11 designation of the development (or portion of a devel12 opment) or because of any action taken by the Sec13 retary or any local housing and management author14 ity to carry out this section.

15 (2) REQUIREMENT TO EVICT NONELDERLY TEN16 ANTS IN HOUSING DESIGNATED FOR ELDERLY FAMI17 LIES WHO HAVE CURRENT DRUG OR ALCOHOL ABUSE

18 PROBLEMS.—The local housing and management au19 thority administering a development (or portion of a

20 development) described in subsection (a)(4)(A) shall

21 evict any individual who occupies a dwelling unit in

22 such a development and who currently illegally uses

23 a controlled substance or whose current use of alcohol

24 provides a reasonable cause for the authority to be25 lieve that the occupancy by such individual may
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1 interfere with the health, safety, or right to peaceful

2 enjoyment of the premises by other residents. This

3 paragraph may not be construed to require a local

4 housing and management authority to evict any other

5 individual who occupies the same dwelling unit as the

6 individual required to be evicted.

7 (c) REQUIRED INCLUSIONS IN LOCAL HOUSING MAN8 AGEMENT PLAN.—

9 (1) IN GENERAL.—A local housing and manage10 ment authority may designate a development (or por11 tion of a development) for occupancy under subsection

12 (a)(1) only if the authority, as part of the authority’s

13 local housing management plan—

14 (A) establishes that the designation of the

15 development is necessary—

16 (i) to achieve the housing goals for the

17 jurisdiction under the comprehensive hous18 ing affordability strategy under section 105

19 of the Cranston-Gonzalez National Afford20 able Housing Act (or any consolidated plan

21 incorporating such strategy); and

22 (ii) to meet the housing needs of the

23 low-income population jurisdiction; and

24 (B) submits a description of—
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1 (i) the development (or portion of a de2 velopment) to be designated;

3 (ii) the types of residents for which the

4 development is to be designated;

5 (iii) any services designed to meet the

6 special needs of residents to be provided to

7 residents of the designated development (or

8 portion);

9 (iv) how the design and related facili10 ties (as such term is defined in section

11 202(d)(8) of the Housing Act of 1959) of the

12 development accommodate the special envi13 ronmental needs of the intended occupants.

14 (2) 5-YEAR EFFECTIVENESS.—The information

15 required under paragraph (1) shall be effective for

16 purposes of designation of a public housing develop17 ment (or portion thereof) under this section only for

18 the 5-year period that begins upon notification under

19 section 108(a) of the local housing and management

20 authority that the information complies with the re21 quirements under section 107 and this subsection. A

22 local housing and management authority may extend

23 the effectiveness of the designation and information

24 for an additional 2-year period beginning upon the

25 expiration of such period (or the expiration of any
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1 previous extension period under this sentence) by up2 dating such information in the local housing manage3 ment plan for the authority.

4 (3) TREATMENT OF EXISTING PLANS.—Notwith5 standing any other provision of this section, a local

6 housing and management authority shall be consid7 ered to have submitted the information required

8 under this subsection if the authority has submitted

9 to the Secretary an application and allocation plan

10 under this section (as in effect before the date of the

11 enactment of this Act) that have not been approved or

12 disapproved before such date of enactment.

13 (4) SAVINGS PROVISION.—Any application and

14 allocation plan approved under section 7 of the Unit15 ed States Housing Act of 1937 (as in effect before the

16 date of the enactment of this Act) before such date of

17 enactment shall be considered to be information re18 quired under this subsection that is in effect for pur19 poses of this section for the 5-year period beginning

20 upon such approval.

21 (d) RELOCATION ASSISTANCE.—A local housing and

22 management authority that designates any existing devel23 opment or building, or portion thereof, for occupancy as

24 provided under subsection (a) shall provide, to each person

25 and family relocated in connection with such designation—
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1 (1) notice of the designation and relocation, as

2 soon as is practicable for the authority and the person

3 or family;

4 (2) comparable housing (including appropriate

5 services and design features), which may include rent6 al assistance under title III, at a rental rate that is

7 comparable to that applicable to the unit from which

8 the person or family has vacated; and

9 (3) payment of actual, reasonable moving ex10 penses.

11 (e) INAPPLICABILITY TO INDIAN HOUSING.—The pro12 visions of this section shall not apply with respect to low13 income housing developed or operated pursuant to a con14 tract between the Secretary and an Indian housing author15 ity.

16 Subtitle C—Management

17 SEC. 231. MANAGEMENT PROCEDURES.

18 (a) SOUND MANAGEMENT.—A local housing and man19 agement authority that receives grant amounts under this

20 title shall establish and comply with procedures and prac21 tices sufficient to ensure that the public housing develop22 ments owned or administered by the authority are operated

23 in a sound manner.

24 (b) MANAGEMENT BY OTHER ENTITIES.—Except as

25 otherwise provided under this Act, a local housing and
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1 management authority may contract with any other entity

2 to perform any of the management functions for public

3 housing owned or operated by the local housing and man4 agement authority.

5 SEC. 232. HOUSING QUALITY REQUIREMENTS.

6 (a) IN GENERAL.—Each local housing and manage7 ment authority that receives grant amounts under this Act

8 shall maintain its public housing in a condition that com9 plies—

10 (1) in the case of public housing located in a ju11 risdiction which has in effect laws, regulations, stand12 ards, or codes regarding habitability of residential

13 dwellings that provide protection to residents of the

14 dwellings that is equal to or greater than the protec15 tion provided under the housing quality standards es16 tablished under subsection (b), with such applicable

17 laws, regulations, standards, or codes; or

18 (2) in the case of public housing located in a ju19 risdiction which does not have in effect laws, regula20 tions, standards, or codes described in subparagraph

21 (A), with the housing quality standards established

22 under subsection (b).

23 (b) FEDERAL HOUSING QUALITY STANDARDS.—The

24 Secretary shall establish housing quality standards under

25 this subsection that ensure that public housing dwelling
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1 units are safe, clean, and healthy. Such standards shall in2 clude requirements relating to habitability, including main3 tenance, health and sanitation factors, condition, and con4 struction of dwellings, and shall, to the greatest extent prac5 ticable, be consistent with the standards established under

6 section 328(b). The Secretary shall differentiate between

7 major and minor violations of such standards.

8 (c) DETERMINATIONS.—Each local housing and man9 agement authority providing housing assistance shall iden10 tify, in the local housing management plan of the authority,

11 whether the authority is utilizing the standard under para12 graph (1) or (2) of subsection (a) and, if the authority uti13 lizes the standard under paragraph (1), shall certify in such

14 plan that the applicable State or local laws, regulations,

15 standards, or codes comply with the requirements under

16 such paragraph.

17 (d) ANNUAL INSPECTIONS.—Each local housing and

18 management authority that owns or operates public housing

19 shall make an annual inspection of each public housing de20 velopment to determine whether units in the development

21 are maintained in accordance with the requirements under

22 subsection (a). The authority shall submit the results of such

23 inspections to the Secretary and the Inspector General for

24 the Department of Housing and Urban Development and

25 such results shall be available to the Housing Foundation
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1 and Accreditation Board established under title IV and any

2 auditor conducting an audit under section 432.

3 SEC. 233. EMPLOYMENT OF RESIDENTS.

4 A local housing and management authority may em5 ploy public housing residents in any activities engaged in

6 by the authority. The Secretary shall require local housing

7 and management authorities, in using grant amounts pro8 vided under this title, to make their best efforts to enter

9 into agreements with contractors and subcontractors of the

10 authority to provide residents of public housing with em11 ployment opportunities, job training, and internships.

12 SEC. 234. RESIDENT COUNCILS AND RESIDENT MANAGE13 MENT CORPORATIONS.

14 (a) RESIDENT COUNCILS.—The residents of a public

15 housing development may establish a resident council for

16 the development for purposes of consideration of issues re17 lating to residents, representation of resident interests, and

18 coordination and consultation with a local housing and

19 management authority. A resident council shall be an orga20 nization or association that—

21 (1) is nonprofit in character;

22 (2) is representative of the residents of the eligi23 ble housing;

24 (3) adopts written procedures providing for the

25 election of officers on a regular basis; and
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1 (4) has a democratically elected governing board,

2 which is elected by the residents of the eligible hous3 ing.

4 (b) RESIDENT MANAGEMENT CORPORATIONS.—

5 (1) ESTABLISHMENT.—The residents of a public

6 housing development may establish a resident man7 agement corporation for the purpose of assuming the

8 responsibility for the management of the development

9 under section 235 or purchasing a development.

10 (2) REQUIREMENTS.—A resident management

11 corporation shall be a corporation that—

12 (A) is nonprofit in character;

13 (B) is organized under the laws of the State

14 in which the development is located;

15 (C) has as its sole voting members the resi16 dents of the development; and

17 (D) is established by the resident council for

18 the development or, if there is not a resident

19 council, by a majority of the households of the

20 development.

21 SEC. 235. MANAGEMENT BY RESIDENT MANAGEMENT COR22 PORATION.

23 (a) AUTHORITY.—A local housing and management

24 authority may enter into a contract under this section with
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1 a resident management corporation to provide for the man2 agement of public housing developments by the corporation.

3 (b) CONTRACT.—A contract under this section for

4 management of public housing developments by a resident

5 management corporation shall establish the respective man6 agement rights and responsibilities of the corporation and

7 the local housing and management authority. The contract

8 shall be consistent with the requirements of this Act appli9 cable to public housing development and may include spe10 cific terms governing management personnel and com11 pensation, access to public housing records, submission of

12 and adherence to budgets, rent collection procedures, resi13 dent income verification, resident eligibility determina14 tions, resident eviction, the acquisition of supplies and ma15 terials and such other matters as may be appropriate. The

16 contract shall be treated as a contracting out of services.

17 (c) BONDING AND INSURANCE.—Before assuming any

18 management responsibility for a public housing develop19 ment, the resident management corporation shall provide

20 fidelity bonding and insurance, or equivalent protection.

21 Such bonding and insurance, or its equivalent, shall be ade22 quate to protect the Secretary and the local housing and

23 management authority against loss, theft, embezzlement, or

24 fraudulent acts on the part of the resident management cor25 poration or its employees.
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1 (d) BLOCK GRANT ASSISTANCE AND INCOME.—A con2 tract under this section shall provide for—

3 (1) the local housing and management authority

4 to provide a portion of the block grant assistance

5 under this title to the resident management corpora6 tion for purposes of operating the public housing de7 velopment covered by the contract and performing

8 such other eligible activities with respect to the devel9 opment as may be provided under the contract;

10 (2) the amount of income expected to be derived

11 from the development itself (from sources such as

12 rents and charges);

13 (3) the amount of income to be provided to the

14 development from the other sources of income of the

15 local housing and management authority (such as in16 terest income, administrative fees, and rents); and

17 (4) any income generated by a resident manage18 ment corporation of a public housing development

19 that exceeds the income estimated under the contract

20 shall be used for eligible activities under section

21 203(a).

22 (e) CALCULATION OF TOTAL INCOME.—

23 (1) MAINTENANCE OF SUPPORT.—Subject to

24 paragraph (2), the amount of assistance provided by

25 a local housing and management authority to a pub-
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1 lic housing development managed by a resident man2 agement corporation may not be reduced during the

3 3-year period beginning on the date on which the

4 resident management corporation is first established

5 for the development.

6 (2) REDUCTIONS AND INCREASES IN SUPPORT.—

7 If the total income of a local housing and manage8 ment authority is reduced or increased, the income

9 provided by the local housing and management au10 thority to a public housing development managed by

11 a resident management corporation shall be reduced

12 or increased in proportion to the reduction or in13 crease in the total income of the authority, except that

14 any reduction in block grant amounts under this title

15 to the authority that occurs as a result of fraud,

16 waste, or mismanagement by the authority shall not

17 affect the amount provided to the resident manage18 ment corporation.

19 SEC. 236. TRANSFER OF MANAGEMENT OF CERTAIN HOUS20 ING TO INDEPENDENT MANAGER AT RE21 QUEST OF RESIDENTS.

22 (a) AUTHORITY.—The Secretary may transfer the re23 sponsibility and authority for management of specified

24 housing (as such term is defined in subsection (h)) from

25 a local housing and management authority to an eligible
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1 management entity, in accordance with the requirements

2 of this section, if—

3 (1) such housing is owned or operated by a local

4 housing and management authority that is—

5 (A) not accredited under section 433 by the

6 Housing Foundation and Accreditation Board;

7 or

8 (B) is designated as a troubled authority

9 under section 431(a)(2); and

10 (2) the Secretary determines that—

11 (A) such housing has deferred maintenance,

12 physical deterioration, or obsolescence of major

13 systems and other deficiencies in the physical

14 plant of the project;

15 (B) such housing is occupied predominantly

16 by families with children who are in a severe

17 state of distress, characterized by such factors as

18 high rates of unemployment, teenage pregnancy,

19 single-parent households, long-term dependency

20 on public assistance and minimal educational

21 achievement;

22 (C) such housing is located in an area such

23 that the housing is subject to recurrent vandal24 ism and criminal activity (including drug-relat25 ed criminal activity); and
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1 (D) the residents can demonstrate that the

2 elements of distress for such housing specified in

3 subparagraphs (A) through (C) can be remedied

4 by an entity that has a demonstrated capacity to

5 manage, with reasonable expenses for moderniza6 tion.

7 Such a transfer may be made only as provided in this sec8 tion, pursuant to the approval by the Secretary of a request

9 for the transfer made by a majority vote of the residents

10 for the specified housing, after consultation with the local

11 housing and management authority for the specified hous12 ing.

13 (b) BLOCK GRANT ASSISTANCE.—Pursuant to a con14 tract under subsection (c), the Secretary shall require the

15 local housing and management authority for specified hous16 ing to provide to the manager for the housing, from any

17 block grant amounts under this title for the authority, fair

18 and reasonable amounts for operating costs for the housing.

19 The amount made available under this subsection to a man20 ager shall be determined by the Secretary based on the share

21 for the specified housing of the total block grant amounts

22 for the local housing and management authority transfer23 ring the housing, taking into consideration the operating

24 and capital improvement needs of the specified housing, the

25 operating and capital improvement needs of the remaining
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1 public housing units managed by the local housing and

2 management authority, and the local housing management

3 plan of such authority.

4 (c) CONTRACT BETWEEN SECRETARY AND MAN5 AGER.—

6 (1) REQUIREMENTS.—Pursuant to the approval

7 of a request under this section for transfer of the man8 agement of specified housing, the Secretary shall enter

9 into a contract with the eligible management entity.

10 (2) TERMS.— A contract under this subsection

11 shall contain provisions establishing the rights and

12 responsibilities of the manager with respect to the

13 specified housing and the Secretary and shall be con14 sistent with the requirements of this Act applicable to

15 public housing developments.

16 (d) COMPLIANCE WITH LOCAL HOUSING MANAGE17 MENT PLAN.—A manager of specified housing under this

18 section shall comply with the approved local housing man19 agement plan applicable to the housing and shall submit

20 such information to the local housing and management au21 thority from which management was transferred as may

22 be necessary for such authority to prepare and update its

23 local housing management plan.

24 (e) DEMOLITION AND DISPOSITION BY MANAGER.—A

25 manager under this section may demolish or dispose of spec-
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1 ified housing only if, and in the manner, provided for in

2 the local housing management plan for the authority trans3 ferring management of the housing.

4 (f) LIMITATION ON LHMA LIABILITY.—A local hous5 ing and management authority that is not a manager for

6 specified housing shall not be liable for any act or failure

7 to act by a manager or resident council for the specified

8 housing.

9 (g) TREATMENT OF MANAGER.—To the extent not in10 consistent with this section and to the extent the Secretary

11 determines not inconsistent with the purposes of this Act,

12 a manager of specified housing under this section shall be

13 considered to be a local housing and management authority

14 for purposes of this title.

15 (h) DEFINITIONS.—For purposes of this section, the

16 following definitions shall apply:

17 (1) ELIGIBLE MANAGEMENT ENTITY.—The term

18 ‘‘eligible management entity’’ means, with respect to

19 any public housing development, any of the following

20 entities that has been accredited in accordance with

21 section 433:

22 (A) NONPROFIT ORGANIZATION.—A public

23 or private nonprofit organization, which shall—

24 (i) include a resident management cor25 poration or resident management organiza-
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1 tion and, as determined by the Secretary, a

2 public or private nonprofit organization

3 sponsored by the local housing and manage4 ment authority that owns the development;

5 and

6 (ii) not include the local housing and

7 management authority that owns the devel8 opment.

9 (B) FOR-PROFIT ENTITY.—A for-profit en10 tity that has demonstrated experience in provid11 ing low-income housing.

12 (C) STATE OR LOCAL GOVERNMENT.—A

13 State or local government, including an agency

14 or instrumentality thereof.

15 (D) LOCAL HOUSING AND MANAGEMENT AU16 THORITY.—A local housing and management au17 thority (other than the local housing and man18 agement authority that owns the development).

19 The term does not include a resident council.

20 (2) MANAGER.—The term ‘‘manager’’ means any

21 eligible management entity that has entered into a

22 contract under this section with the Secretary for the

23 management of specified housing.

24 (3) NONPROFIT.—The term ‘‘nonprofit’’ means,

25 with respect to an organization, association, corpora-
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1 tion, or other entity, that no part of the net earnings

2 of the entity inures to the benefit of any member,

3 founder, contributor, or individual.

4 (4) PRIVATE NONPROFIT ORGANIZATION.—The

5 term ‘‘private nonprofit organization’’ means any

6 private organization (including a State or locally

7 chartered organization) that—

8 (A) is incorporated under State or local

9 law;

10 (B) is nonprofit in character;

11 (C) complies with standards of financial ac12 countability acceptable to the Secretary; and

13 (D) has among its purposes significant ac14 tivities related to the provision of decent housing

15 that is affordable to low-income families.

16 (5) LOCAL HOUSING AND MANAGEMENT AUTHOR17 ITY.—The term ‘‘local housing and management au18 thority’’ has the meaning given such term in section

19 103(a), except that it does not include Indian housing

20 authorities.

21 (6) PUBLIC NONPROFIT ORGANIZATION.—The

22 term ‘‘public nonprofit organization’’ means any pub23 lic entity that is nonprofit in character.

24 (7) SPECIFIED HOUSING.—The term ‘‘specified

25 housing’’ means a public housing development or de-
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1 velopments, or a portion of a development or develop2 ments, for which the transfer of management is re3 quested under this section. The term includes one or

4 more contiguous buildings and an area of contiguous

5 row houses, but in the case of a single building, the

6 building shall be sufficiently separable from the re7 mainder of the development of which it is part to

8 make transfer of the management of the building fea9 sible for purposes of this section.

10 SEC. 237. RESIDENT OPPORTUNITY PROGRAM.

11 (a) PURPOSE.—The purpose of this section is to en12 courage increased resident management of public housing

13 developments, as a means of improving existing living con14 ditions in public housing developments, by providing in15 creased flexibility for public housing developments that are

16 managed by residents by—

17 (1) permitting the retention, and use for certain

18 purposes, of any revenues exceeding operating and

19 project costs; and

20 (2) providing funding, from amounts otherwise

21 available, for technical assistance to promote forma22 tion and development of resident management enti23 ties.

24 For purposes of this section, the term ‘‘public housing devel25 opment’’ includes one or more contiguous buildings or an
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1 area of contiguous row houses the elected resident councils

2 of which approve the establishment of a resident manage3 ment corporation and otherwise meet the requirements of

4 this section.

5 (b) PROGRAM REQUIREMENTS.—

6 (1) RESIDENT COUNCIL.—As a condition of en7 tering into a resident opportunity program, the elect8 ed resident council of a public housing development

9 shall approve the establishment of a resident manage10 ment corporation that complies with the requirements

11 of section 234(b)(2). When such approval is made by

12 the elected resident council of a building or row house

13 area, the resident opportunity program shall not

14 interfere with the rights of other families residing in

15 the development or harm the efficient operation of the

16 development. The resident management corporation

17 and the resident council may be the same organiza18 tion, if the organization complies with the require19 ments applicable to both the corporation and council.

20 (2) PUBLIC HOUSING MANAGEMENT SPECIAL21 IST.—The resident council of a public housing devel22 opment, in cooperation with the local housing and

23 management authority, shall select a qualified public

24 housing management specialist to assist in determin25 ing the feasibility of, and to help establish, a resident
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1 management corporation and to provide training and

2 other duties agreed to in the daily operations of the

3 development.

4 (3) MANAGEMENT RESPONSIBILITIES.—A resi5 dent management corporation that qualifies under

6 this section, and that supplies insurance and bonding

7 or equivalent protection sufficient to the Secretary

8 and the local housing and management authority,

9 shall enter into a contract with the authority estab10 lishing the respective management rights and respon11 sibilities of the corporation and the authority. The

12 contract shall be treated as a contracting out of serv13 ices and shall be subject to the requirements under

14 section 234 for such contracts.

15 (4) ANNUAL AUDIT.—The books and records of a

16 resident management corporation operating a public

17 housing development shall be audited annually by a

18 certified public accountant. A written report of each

19 such audit shall be forwarded to the local housing and

20 management authority and the Secretary.

21 (c) COMPREHENSIVE IMPROVEMENT ASSISTANCE.—

22 Public housing developments managed by resident manage23 ment corporations may be provided with modernization as24 sistance from grant amounts under this title for purposes

25 of renovating such developments. If such renovation activi-
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1 ties (including the planning and architectural design of the

2 rehabilitation) are administered by a resident management

3 corporation, the local housing and management authority

4 involved may not retain, for any administrative or other

5 reason, any portion of the assistance provided pursuant to

6 this subsection unless otherwise provided by contract.

7 (d) WAIVER OF FEDERAL REQUIREMENTS.—

8 (1) WAIVER OF REGULATORY REQUIREMENTS.—

9 Upon the request of any resident management cor10 poration and local housing and management author11 ity, and after notice and an opportunity to comment

12 is afforded to the affected residents, the Secretary may

13 waive (for both the resident management corporation

14 and the local housing and management authority)

15 any requirement established by the Secretary (and not

16 specified in any statute) that the Secretary deter17 mines to unnecessarily increase the costs or restrict

18 the income of a public housing development.

19 (2) WAIVER TO PERMIT EMPLOYMENT.—Upon

20 the request of any resident management corporation,

21 the Secretary may, subject to applicable collective bar22 gaining agreements, permit residents of such develop23 ment to volunteer a portion of their labor.

24 (3) EXCEPTIONS.—The Secretary may not waive

25 under this subsection any requirement with respect to
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1 income eligibility for purposes of section 222, rental

2 payments under section 225, tenant or applicant pro3 tections, employee organizing rights, or rights of em4 ployees under collective bargaining agreements.

5 (e) OPERATING ASSISTANCE AND DEVELOPMENT IN6 COME.—

7 (1) CALCULATION OF OPERATING SUBSIDY.—

8 Subject only to the exception provided in paragraph

9 (3), the amount grant amounts received under this

10 title by a local housing and management authority

11 used for operating costs under section 203(a)(2) that

12 is allocated to a public housing development managed

13 by a resident management corporation shall not be

14 less than per unit monthly amount of such assistance

15 used by the local housing and management authority

16 in the previous year, as determined on an individual

17 development basis.

18 (2) CONTRACT REQUIREMENTS.—Any contract

19 for management of a public housing development en20 tered into by a local housing and management au21 thority and a resident management corporation shall

22 specify the amount of income expected to be derived

23 from the development itself (from sources such as

24 rents and charges) and the amount of income funds

25 to be provided to the development from the other
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1 sources of income of the authority (such as operating

2 assistance under section 203(a), interest income, ad3 ministrative fees, and rents).

4 (f) RESIDENT MANAGEMENT TECHNICAL ASSISTANCE

5 AND TRAINING.—

6 (1) FINANCIAL ASSISTANCE.—To the extent budg7 et authority is available under this title, the Secretary

8 shall provide financial assistance to resident manage9 ment corporations or resident councils that obtain, by

10 contract or otherwise, technical assistance for the de11 velopment of resident management entities, including

12 the formation of such entities, the development of the

13 management capability of newly formed or existing

14 entities, the identification of the social support needs

15 of residents of public housing developments, and the

16 securing of such support.

17 (2) LIMITATION ON ASSISTANCE.—The financial

18 assistance provided under this subsection with respect

19 to any public housing development may not exceed

20 $100,000.

21 (3) PROHIBITION.—A resident management cor22 poration or resident council may not, before the

23 award to the corporation or council of a grant

24 amount under this subsection, enter into any contract

25 or other agreement with any entity to provide such
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1 entity with amounts from the grant for providing

2 technical assistance or carrying out other activities el3 igible for assistance with amounts under this sub4 section. Any such agreement entered into in violation

5 of this paragraph shall be void and unenforceable.

6 (4) FUNDING.—Of any amounts made available

7 for financial assistance under this title, the Secretary

8 may use to carry out this subsection $15,000,000 for

9 fiscal year 1996.

10 (5) LIMITATION REGARDING ASSISTANCE UNDER

11 HOPE GRANT PROGRAM.—The Secretary may not pro12 vide financial assistance under this subsection to any

13 resident management corporation or resident council

14 with respect to which assistance for the development

15 or formation of such entity is provided under title III

16 of the United States Housing Act of 1937 (as in effect

17 before the date of the enactment of this Act).

18 (g) ASSESSMENT AND REPORT BY SECRETARY.—Not

19 later than 3 years after the date of the enactment of the

20 United States Housing Act of 1996, the Secretary shall—

21 (1) conduct an evaluation and assessment of

22 resident management, and particularly of the effect of

23 resident management on living conditions in public

24 housing; and
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1 (2) submit to the Congress a report setting forth

2 the findings of the Secretary as a result of the evalua3 tion and assessment and including any recommenda4 tions the Secretary determines to be appropriate.

5 (h) APPLICABILITY.—Any management contract be6 tween a local housing and management authority and a

7 resident management corporation that is entered into after

8 the date of the enactment of the Stewart B. McKinney

9 Homeless Assistance Amendments Act of 1988 shall be sub10 ject to this section and any regulations issued to carry out

11 this section.

12 Subtitle D—Homeownership

13 SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.

14 (a) IN GENERAL.—A local housing and management

15 authority may carry out a homeownership program in ac16 cordance with this section and the local housing manage17 ment plan of the authority to make public housing dwelling

18 units, public housing developments, and other housing

19 projects available for purchase by low-income families.

20 (b) PARTICIPATING UNITS.—A program under this

21 section may cover any existing public housing dwelling

22 units or projects, and may include other dwelling units and

23 housing owned, operated, or assisted, or otherwise acquired

24 for use under such program, by the local housing and man25 agement authority.
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1 (c) ELIGIBLE PURCHASERS.—

2 (1) LOW-INCOME REQUIREMENT.—Only low-in3 come families assisted by a local housing and man4 agement authority, other low-income families, and en5 tities formed to facilitate such sales shall be eligible

6 to purchase housing under a homeownership program

7 under this section.

8 (2) OTHER REQUIREMENTS.—A local housing

9 and management authority may establish other re10 quirements or limitations for families to purchase

11 housing under a homeownership program under this

12 section, including requirements or limitations regard13 ing employment or participation in employment

14 counseling or training activities, criminal activity,

15 participation in homeownership counseling programs,

16 evidence of regular income, and other requirements.

17 (d) FINANCING AND ASSISTANCE.—A homeownership

18 program under this section may provide financing for ac19 quisition of housing by families purchasing under the pro20 gram or by the local housing and management authority

21 for sale under this program in any manner considered ap22 propriate by the authority (including sale to a resident

23 management corporation).

24 (e) DOWNPAYMENT REQUIREMENT.—
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1 (1) IN GENERAL.—Each family purchasing hous2 ing under a homeownership program under this sec3 tion shall be required to provide from its own re4 sources a downpayment in connection with any loan

5 for acquisition of the housing, in an amount deter6 mined by the local housing and management author7 ity. Except as provided in paragraph (2), the author8 ity shall permit the family to use grant amounts,

9 gifts from relatives, contributions from private

10 sources, and similar amounts as downpayment

11 amounts in such purchase,

12 (2) DIRECT FAMILY CONTRIBUTION.—In pur13 chasing housing pursuant to this section, each family

14 shall contribute an amount of the downpayment, from

15 resources of the family other than grants, gifts, con16 tributions, or other similar amounts referred to in

17 paragraph (1), that is not less than 1 percent of the

18 purchase price.

19 (f) OWNERSHIP INTERESTS.—A homeownership pro20 gram under this section may provide for sale to the pur21 chasing family of any ownership interest that the local

22 housing and management authority considers appropriate

23 under the program, including ownership in fee simple, a

24 condominium interest, an interest in a limited dividend co-
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1 operative, a shared appreciation interest with a local hous2 ing and management authority providing financing.

3 (g) RESALE.—

4 (1) AUTHORITY AND LIMITATION.—A home5 ownership program under this section shall permit

6 the resale of a dwelling unit purchased under the pro7 gram by an eligible family, but shall provide such

8 limitations on resale as the authority considers ap9 propriate for the authority to recapture—

10 (A) from any economic gain derived from

11 any such resale occurring during the 5-year pe12 riod beginning upon purchase of the dwelling

13 unit by the eligible family, a portion of the

14 amount of any financial assistance provided

15 under the program by the authority to the eligi16 ble family; and

17 (B) after the expiration of such 5-year pe18 riod, only such amounts as are equivalent to the

19 assistance provided under this section by the au20 thority to the purchaser.

21 (2) CONSIDERATIONS.—The limitations referred

22 to in paragraph (1) may provide for consideration of

23 the aggregate amount of assistance provided under the

24 program to the family, the contribution to equity pro25 vided by the purchasing eligible family, the period of
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1 time elapsed between purchase under the homeowner2 ship program and resale, the reason for resale, any

3 improvements to the property made by the eligible

4 family, any appreciation in the value of the property,

5 and any other factors that the authority considers ap6 propriate.

7 (h) INAPPLICABILITY OF DISPOSITION REQUIRE8 MENTS.—The provisions of section 261 shall not apply to

9 disposition of public housing dwelling units under a home10 ownership program under this section, except that any

11 dwelling units sold under such a program shall be treated

12 as public housing dwelling units for purposes of subsections

13 (e) and (f) of section 261.

14 Subtitle E—Disposition, Demolition,

15 and Revitalization of Developments

16 SEC. 261. REQUIREMENTS FOR DEMOLITION AND DISPOSI17 TION OF DEVELOPMENTS.

18 (a) AUTHORITY AND FLEXIBILITY.—A local housing

19 and management authority may demolish, dispose of, or de20 molish and dispose of nonviable or nonmarketable public

21 housing developments of the authority in accordance with

22 this section.

23 (b) LOCAL HOUSING MANAGEMENT PLAN REQUIRE24 MENT.—A local housing and management authority may

25 take any action to demolish or dispose of a public housing
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1 development (or a portion of a development) only if such

2 demolition or disposition complies with the provisions of

3 this section and is in accordance with the local housing

4 management plan for the authority.

5 (c) PURPOSE OF DEMOLITION OR DISPOSITION.—A

6 local housing and management authority may demolish or

7 dispose of a public housing development (or portion of a

8 development) only if the authority provides sufficient evi9 dence to the Secretary that—

10 (1) the development (or portion thereof) is se11 verely distressed or obsolete;

12 (2) the development (or portion thereof) is in a

13 location making it unsuitable for housing purposes;

14 (3) the development (or portion thereof) has de15 sign or construction deficiencies that make cost-effec16 tive rehabilitation infeasible;

17 (4) assuming that reasonable rehabilitation and

18 management intervention for the development has

19 been completed and paid for, the anticipated revenue

20 that would be derived from charging market-based

21 rents for units in the development (or portion thereof)

22 would not cover the anticipated operating costs and

23 replacement reserves of the development (or portion)

24 at full occupancy and the development (or portion)
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1 would constitute a substantial burden on the resources

2 of the local housing and management authority;

3 (5) retention of the development (or portion

4 thereof) is not in the best interests of the residents of

5 the local housing and management authority be6 cause—

7 (A) developmental changes in the area sur8 rounding the development adversely affect the

9 health or safety of the residents or the feasible

10 operation of the development by the local housing

11 and management authority;

12 (B) demolition or disposition will allow the

13 acquisition, development, or rehabilitation of

14 other properties which will be more efficiently or

15 effectively operated as low-income housing; or

16 (C) other factors exist that the authority de17 termines are consistent with the best interests of

18 the residents and the authority and not incon19 sistent with other provisions of this Act;

20 (6) in the case only of demolition or disposition

21 of a portion of a development, the demolition or dis22 position will help to ensure the remaining useful life

23 of the remainder of the development; or

24 (7) in the case only of property other than dwell25 ing units—
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1 (A) the property is excess to the needs of a

2 development; or

3 (B) the demolition or disposition is inciden4 tal to, or does not interfere with, continued oper5 ation of a development.

6 (d) CONSULTATION.—A local housing and manage7 ment authority may demolish or dispose of a public housing

8 development (or portion of a development) only if the au9 thority notifies and confers regarding the demolition or dis10 position with—

11 (1) the residents of the development (or portion);

12 and

13 (2) appropriate local government officials.

14 (e) USE OF PROCEEDS.—Any net proceeds from the

15 disposition of a public housing development (or portion of

16 a development) shall be used for—

17 (1) housing assistance for low-income families

18 that is consistent with the low-income housing needs

19 of the community, through acquisition, development,

20 or rehabilitation of, or homeownership programs for,

21 other low-income housing or the provision of choice22 based assistance under title III for such families;

23 (2) supportive services relating to job training or

24 child care for residents of a development or develop25 ments; or
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1 (3) leveraging amounts for securing commercial

2 enterprises, on-site in public housing developments of

3 the local housing and management authority, appro4 priate to serve the needs of the residents.

5 (f) RELOCATION.—A local housing and management

6 authority that demolishes or disposes of a public housing

7 development (or portion of a development thereof) shall en8 sure that—

9 (1) each family that is a resident of the develop10 ment (or portion) that is demolished or disposed of is

11 relocated to other safe, clean, healthy, and affordable

12 housing, which is, to the maximum extent practicable,

13 housing of the family’s choice or is provided with

14 choice-based assistance under title III;

15 (2) the local housing and management authority

16 does not take any action to dispose of any unit until

17 any resident to be displaced is relocated in accordance

18 with paragraph (1); and

19 (3) each resident family to be displaced is paid

20 relocation expenses, and the rent to be paid initially

21 by the resident following relocation does not exceed the

22 amount permitted under section 225(a).

23 (g) RIGHT OF FIRST REFUSAL FOR RESIDENT ORGA24 NIZATIONS AND RESIDENT MANAGEMENT CORPORA25 TIONS.—
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1 (1) IN GENERAL.—A local housing and manage2 ment authority may not dispose of a public housing

3 development (or portion of a development) unless the

4 authority has, before such disposition, offered to sell

5 the property, as provided in this subsection, to each

6 resident organization and resident management cor7 poration operating at the development for continued

8 use as low-income housing, and no such organization

9 or corporation purchases the property pursuant to

10 such offer. A resident organization may act, for pur11 poses of this subsection, through an entity formed to

12 facilitate homeownership under subtitle D.

13 (2) TIMING.—Disposition of a development (or

14 portion thereof) under this section may not take

15 place—

16 (A) before the expiration of the period dur17 ing which any such organization or corporation

18 may notify the authority of interest in purchas19 ing the property, which shall be the 30-day pe20 riod beginning on the date that the authority

21 first provides notice of the proposed disposition

22 of the property to such resident organizations

23 and resident management corporations;

24 (B) if an organization or corporation sub25 mits notice of interest in accordance with sub-
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1 paragraph (A), before the expiration of the pe2 riod during which such organization or corpora3 tion may obtain a commitment for financing to

4 purchase the property, which shall be the 60-day

5 period beginning upon the submission to the au6 thority of the notice of interest; or

7 (C) if, during the period under subpara8 graph (B), an organization or corporation ob9 tains such financing commitment and makes a

10 bona fide offer to the authority to purchase the

11 property for a price equal to or exceeding the ap12 plicable offer price under paragraph (3).

13 The authority shall sell the property pursuant to any

14 purchase offer described in subparagraph (C).

15 (3) TERMS OF OFFER.—An offer by a local hous16 ing and management authority to sell a property in

17 accordance with this subsection shall involve a pur18 chase price that reflects the market value of the prop19 erty, the reason for the sale, the impact of the sale on

20 the surrounding community, and any other factors

21 that the authority considers appropriate.

22 (h) INFORMATION FOR LOCAL HOUSING MANAGEMENT

23 PLAN.—A local housing and management authority may

24 demolish or dispose of a public housing development (or

25 portion thereof) only if it includes in the applicable local
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1 housing management plan information sufficient to de2 scribe—

3 (1) the housing to be demolished or disposed of;

4 (2) the purpose of the demolition or disposition

5 under subsection (c) and why the demolition or dis6 position complies with the requirements under sub7 section (c);

8 (3) how the consultations required under sub9 section (d) will be made;

10 (4) how the net proceeds of the disposition will

11 be used in accordance with subsection (e);

12 (5) how the authority will relocate residents, if

13 necessary, as required under subsection (f); and

14 (6) that the authority has offered the property

15 for acquisition by resident organizations and resident

16 management corporations in accordance with sub17 section (g).

18 (i) SITE AND NEIGHBORHOOD STANDARDS EXEMP19 TION.—Notwithstanding any other provision of law, a local

20 housing and management authority may provide for devel21 opment of public housing dwelling units on the same site

22 or in the same neighborhood as any dwelling units demol23 ished, pursuant to a plan under this section, but only if

24 such development provides for significantly fewer dwelling

25 units.
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1 (j) TREATMENT OF REPLACEMENT UNITS.—In connec2 tion with any demolition or disposition of public housing

3 under this section, a local housing and management author4 ity may provide for other housing assistance for low-income

5 families that is consistent with the low-income housing

6 needs of the community, including—

7 (1) the provision of choice-based assistance under

8 title III; and

9 (2) the development, acquisition, or lease by the

10 authority of dwelling units, which dwelling units

11 shall—

12 (A) be eligible to receive assistance with

13 grant amounts provided under this title; and

14 (B) be made available for occupancy, oper15 ated, and managed in the manner required for

16 public housing, and subject to the other require17 ments applicable to public housing dwelling

18 units.

19 (k) PERMISSIBLE RELOCATION WITHOUT PLAN.—If a

20 local housing and management authority determines that

21 public housing dwelling units are not clean, safe, and

22 healthy or cannot be maintained cost-effectively in a clean,

23 safe, and healthy condition, the local housing and manage24 ment authority may relocate residents of such dwelling
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1 units before the submission of a local housing management

2 plan providing for demolition or disposition of such units.

3 (l) CONSOLIDATION OF OCCUPANCY WITHIN OR AMONG

4 BUILDINGS.—Nothing in this section may be construed to

5 prevent a local housing and management authority from

6 consolidating occupancy within or among buildings of a

7 public housing development, or among developments, or

8 with other housing for the purpose of improving living con9 ditions of, or providing more efficient services to, residents.

10 (m) DE MINIMIS EXCEPTION TO DEMOLITION RE11 QUIREMENTS.—Notwithstanding any other provision of this

12 section, in any 5-year period a local housing and manage13 ment authority may demolish not more than the lesser of

14 5 dwelling units or 5 percent of the total dwelling units

15 owned and operated by the local housing and management

16 authority, without providing for such demolition in a local

17 housing management plan, but only if the space occupied

18 by the demolished unit is used for meeting the service or

19 other needs of public housing residents or the demolished

20 unit was beyond repair.
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1 SEC. 262. DEMOLITION, SITE REVITALIZATION, REPLACE2 MENT HOUSING, AND CHOICE-BASED ASSIST3 ANCE GRANTS FOR DEVELOPMENTS.

4 (a) PURPOSES.—The purpose of this section is to pro5 vide assistance to local housing and management authori6 ties for the purposes of—

7 (1) reducing the density and improving the liv8 ing environment for public housing residents of se9 verely distressed public housing developments through

10 the demolition of obsolete public housing developments

11 (or portions thereof);

12 (2) revitalizing sites (including remaining public

13 housing dwelling units) on which such public housing

14 developments are located and contributing to the im15 provement of the surrounding neighborhood; and

16 (3) providing housing that will avoid or decrease

17 the concentration of very low-income families; and

18 (4) providing choice-based assistance in accord19 ance with title III for the purpose of providing re20 placement housing and assisting residents to be dis21 placed by the demolition.

22 (b) GRANT AUTHORITY.—The Secretary may make

23 grants available to local housing and management authori24 ties as provided in this section.

25 (c) CONTRIBUTION REQUIREMENT.—The Secretary

26 may not make any grant under this section to any appli-
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1 cant unless the applicant certifies to the Secretary that the

2 applicant will supplement the amount of assistance pro3 vided under this section with an amount of funds from

4 sources other than this section equal to not less than 5 per5 cent of the amount provided under this section, including

6 amounts from other Federal sources, any State or local gov7 ernment sources, any private contributions, and the value

8 of any in-kind services or administrative costs provided.

9 (d) ELIGIBLE ACTIVITIES.—Grants under this section

10 may be used for activities to carry out revitalization pro11 grams for severely distressed public housing, including—

12 (1) architectural and engineering work, includ13 ing the redesign, reconstruction, or redevelopment of

14 a severely distressed public housing development, in15 cluding the site on which the development is located;

16 (2) the demolition, sale, or lease of the site, in

17 whole or in part;

18 (3) covering the administrative costs of the ap19 plicant, which may not exceed such portion of the as20 sistance provided under this section as the Secretary

21 may prescribe;

22 (4) payment of reasonable legal fees;

23 (5) providing reasonable moving expenses for

24 residents displaced as a result of the revitalization of

25 the development;
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1 (6) economic development activities that promote

2 the economic self-sufficiency of residents under the re3 vitalization program;

4 (7) necessary management improvements;

5 (8) leveraging other resources, including addi6 tional housing resources, retail supportive services,

7 jobs, and other economic development uses on or near

8 the development that will benefit future residents of

9 the site;

10 (9) replacement housing and housing assistance

11 under title III;

12 (10) transitional security activities; and

13 (11) necessary supportive services, except that

14 not more than 10 percent of the amount of any grant

15 may be used for activities under this paragraph.

16 (e) APPLICATION AND SELECTION.—

17 (1) APPLICATION.—An application for a grant

18 under this section shall contain such information and

19 shall be submitted at such time and in accordance

20 with such procedures, as the Secretary shall prescribe.

21 (2) SELECTION CRITERIA.—The Secretary shall

22 establish selection criteria for the award of grants

23 under this section, which shall include—

24 (A) the relationship of the grant to the local

25 housing management plan for the local housing
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1 and management authority and how the grant

2 will result in a revitalized site that will enhance

3 the neighborhood in which the development is lo4 cated;

5 (B) the capability and record of the appli6 cant local housing and management authority,

7 or any alternative management agency for the

8 authority, for managing large-scale redevelop9 ment or modernization projects, meeting con10 struction timetables, and obligating amounts in

11 a timely manner;

12 (C) the extent to which the local housing

13 and management authority could undertake such

14 activities without a grant under this section;

15 (D) the extent of involvement of residents,

16 State and local governments, private service pro17 viders, financing entities, and developers, in the

18 development of a revitalization program for the

19 development;

20 (E) the amount of funds and other resources

21 to be leveraged by the grant; and

22 (F) whether the applicant local housing and

23 management authority has been awarded a plan24 ning grant under section 24(c) of the United

25 States Housing Act of 1937 (as in effect imme-
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1 diately before the date of the enactment of this

2 Act).

3 (f) COST LIMITS.—Subject to the provisions of this sec4 tion, the Secretary—

5 (1) shall establish cost limits on eligible activities

6 under this section sufficient to provide for effective re7 vitalization programs; and

8 (2) may establish other cost limits on eligible ac9 tivities under this section.

10 (h) DEMOLITION AND REPLACEMENT.—Any severely

11 distressed public housing demolished or disposed of pursu12 ant to a revitalization plan and any public housing pro13 duced in lieu of such severely distressed housing, shall be

14 subject to the provisions of section 261.

15 (i) ADMINISTRATION BY OTHER ENTITIES.—The Sec16 retary may require a grantee under this section to make

17 arrangements satisfactory to the Secretary for use of an en18 tity other than the local housing and management authority

19 to carry out activities assisted under the revitalization

20 plan, if the Secretary determines that such action will help

21 to effectuate the purposes of this section.

22 (j) WITHDRAWAL OF FUNDING.—If a grantee under

23 this section does not proceed expeditiously, in the deter24 mination of the Secretary, the Secretary shall withdraw

25 any grant amounts under this section that have not been
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1 obligated by the local housing and management authority.

2 The Secretary shall redistribute any withdrawn amounts

3 to one or more local housing and management authorities

4 eligible for assistance under this section.

5 (k) DEFINITIONS.—For purposes of this section, the

6 following definitions shall apply:

7 (1) APPLICANT.—The term ‘‘applicant’’ means—

8 (A) any local housing and management au9 thority that is not designated as troubled pursu10 ant to section 431(a)(2)(D);

11 (B) any local housing and management au12 thority or private housing management agent se13 lected, or receiver appointed pursuant, to section

14 438; and

15 (C) any local housing and management au16 thority that is designated as troubled pursuant

17 to section 431(a)(2)(D) that—

18 (i) is so designated principally for rea19 sons that will not affect the capacity of the

20 authority to carry out a revitalization pro21 gram;

22 (ii) is making substantial progress to23 ward eliminating the deficiencies of the au24 thority; or
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1 (iii) is otherwise determined by the

2 Secretary to be capable of carrying out a re3 vitalization program.

4 (2) PRIVATE NONPROFIT CORPORATION.—The

5 term ‘‘private nonprofit organization’’ means any

6 private nonprofit organization (including a State or

7 locally chartered nonprofit organization) that—

8 (A) is incorporated under State or local

9 law;

10 (B) has no part of its net earnings inuring

11 to the benefit of any member, founder, contribu12 tor, or individual;

13 (C) complies with standards of financial ac14 countability acceptable to the Secretary; and

15 (D) has among its purposes significant ac16 tivities related to the provision of decent housing

17 that is affordable to very low-income families.

18 (3) SEVERELY DISTRESSED PUBLIC HOUSING.—

19 The term ‘‘severely distressed public housing’’ means

20 a public housing development (or building in a devel21 opment)—

22 (A) that requires major redesign, recon23 struction or redevelopment, or partial or total

24 demolition, to correct serious deficiencies in the

25 original design (including inappropriately high
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1 population density), deferred maintenance, phys2 ical deterioration or obsolescence of major sys3 tems and other deficiencies in the physical plant

4 of the development;

5 (B) is a significant contributing factor to

6 the physical decline of and disinvestment by

7 public and private entities in the surrounding

8 neighborhood;

9 (C)(i) is occupied predominantly by fami10 lies who are very low-income families with chil11 dren, are unemployed, and dependent on various

12 forms of public assistance; and

13 (ii) has high rates of vandalism and crimi14 nal activity (including drug-related criminal ac15 tivity) in comparison to other housing in the

16 area;

17 (D) cannot be revitalized through assistance

18 under other programs, such as the public housing

19 block grant program under this title, or the pro20 grams under sections 9 and 14 of the United

21 States Housing Act of 1937 (as in effect before

22 the date of the enactment of this Act), because of

23 cost constraints and inadequacy of available

24 amounts; and
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1 (E) in the case of individual buildings, the

2 building is, in the Secretary’s determination,

3 sufficiently separable from the remainder of the

4 development of which the building is part to

5 make use of the building feasible for purposes of

6 this section.

7 (4) SUPPORTIVE SERVICES.—The term ‘‘support8 ive services’’ includes all activities that will promote

9 upward mobility, self-sufficiency, and improved qual10 ity of life for the residents of the public housing devel11 opment involved, including literacy training, job

12 training, day care, and economic development activi13 ties.

14 (l) ANNUAL REPORT.—The Secretary shall submit to

15 the Congress an annual report setting forth—

16 (1) the number, type, and cost of public housing

17 units revitalized pursuant to this section;

18 (2) the status of developments identified as se19 verely distressed public housing;

20 (3) the amount and type of financial assistance

21 provided under and in conjunction with this section;

22 and

23 (4) the recommendations of the Secretary for

24 statutory and regulatory improvements to the pro25 gram established by this section.
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1 (m) FUNDING.—

2 (1) AUTHORIZATION OF APPROPRIATIONS.—

3 There are authorized to be appropriated for grants

4 under this section such sums as may be necessary for

5 fiscal year 1996.

6 (2) TECHNICAL ASSISTANCE.—Of the amount ap7 propriated pursuant to paragraph (1) for any fiscal

8 year, the Secretary may use not more than 0.50 per9 cent for technical assistance. Such assistance may be

10 provided directly or indirectly by grants, contracts, or

11 cooperative agreements, and shall include training,

12 and the cost of necessary travel for participants in

13 such training, by or to officials of the Department of

14 Housing and Urban Development, of local housing

15 and management authorities, and of residents.

16 (n) SUNSET.—No assistance may be provided under

17 this section after September 30, 1996.

18 Subtitle F—General Provisions

19 SEC. 271. CONVERSION TO BLOCK GRANT ASSISTANCE.

20 (a) SAVINGS PROVISIONS.—Any amounts made avail21 able to a public housing agency for assistance for public

22 housing pursuant to the United States Housing Act of 1937

23 (or any other provision of law relating to assistance for

24 public housing) under an appropriation for fiscal year

25 1996 or any previous fiscal year shall be subject to the pro-
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1 visions of such Act as in effect before the enactment of this

2 Act, notwithstanding the repeals made by this Act, except

3 to the extent the Secretary provides otherwise to provide for

4 the conversion of public housing and public housing assist5 ance to the system provided under this Act.

6 (b) MODIFICATIONS.—Notwithstanding any provision

7 of this Act or any annual contributions contract or other

8 agreement entered into by the Secretary and a public hous9 ing agency pursuant to the provisions of the United States

10 Housing Act of 1937 (as in effect before the enactment of

11 this Act), the Secretary and the agency may by mutual con12 sent amend, supersede, modify any such agreement as ap13 propriate to provide for assistance under this title, except

14 that the Secretary and the agency may not consent to any

15 such amendment, supersession, or modification that sub16 stantially alters any outstanding obligations requiring con17 tinued maintenance of the low-income character of any pub18 lic housing development and any such amendment,

19 supersession, or modification shall not be given effect.

20 SEC. 272. PAYMENT OF NON-FEDERAL SHARE.

21 Rental or use-value of buildings or facilities paid for,

22 in whole or in part, from production, modernization, or op23 eration costs financed under this title may be used as the

24 non-Federal share required in connection with activities

25 undertaken under Federal grant-in-aid programs which
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1 provide social, educational, employment, and other services

2 to the residents in a project assisted under this title.

3 SEC. 273. DEFINITIONS.

4 For purposes of this title, the following definitions

5 shall apply:

6 (1) ACQUISITION COST.—The term ‘‘acquisition

7 cost’’ means the amount prudently expended by a

8 local housing and management authority in acquir9 ing property for a public housing development.

10 (2) DEVELOPMENT.—The terms ‘‘public housing

11 development’’ and ‘‘development’’ mean—

12 (A) public housing; and

13 (B) the improvement of any such housing.

14 (3) ELIGIBLE LOCAL HOUSING AND MANAGEMENT

15 AUTHORITY.—The term ‘‘eligible local housing and

16 management authority’’ means, with respect to a fis17 cal year, a local housing and management authority

18 that is eligible under section 202(b) for a grant under

19 this title.

20 (4) GROUP HOME AND INDEPENDENT LIVING FA21 CILITY.—The terms ‘‘group home’’ and ‘‘independent

22 living facility’’ have the meanings given such terms

23 in section 811(k) of the Cranston-Gonzalez National

24 Affordable Housing Act.
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1 (5) OPERATION.—The term ‘‘operation’’ means

2 any or all undertakings appropriate for management,

3 operation, services, maintenance, security (including

4 the cost of security personnel), or financing in connec5 tion with a public housing development, including the

6 financing of resident programs and services.

7 (6) PRODUCTION.—The term ‘‘production’’

8 means any or all undertakings necessary for plan9 ning, land acquisition, financing, demolition, con10 struction, or equipment, in connection with the con11 struction, acquisition, or rehabilitation of a property

12 for use as a public housing development, including

13 activity in connection with a public housing develop14 ment that is confined to the reconstruction, remodel15 ing, or repair of existing buildings.

16 (7) PRODUCTION COST.—The term ‘‘production

17 cost’’ means the costs incurred by a local housing and

18 management authority for production of public hous19 ing and the necessary financing for production (in20 cluding the payment of carrying charges and acquisi21 tion costs).

22 (8) RESIDENT COUNCIL.—The term ‘‘resident

23 council’’ means an organization or association that

24 meets the requirements of section 234(a).
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1 (9) RESIDENT MANAGEMENT CORPORATION.—

2 The term ‘‘resident management corporation’’ means

3 a corporation that meets the requirements of section

4 234(b).

5 (10) RESIDENT PROGRAM.—The term ‘‘resident

6 programs and services’’ means programs and services

7 for families residing in public housing developments.

8 Such term includes (A) the development and mainte9 nance of resident organizations which participate in

10 the management of public housing developments, (B)

11 the training of residents to manage and operate the

12 public housing development and the utilization of

13 their services in management and operation of the de14 velopment, (C) counseling on household management,

15 housekeeping, budgeting, money management, home16 ownership issues, child care, and similar matters, (D)

17 advice regarding resources for job training and place18 ment, education, welfare, health, and other commu19 nity services, (E) services that are directly related to

20 meeting resident needs and providing a wholesome

21 living environment; and (F) referral to appropriate

22 agencies in the community when necessary for the

23 provision of such services. To the maximum extent

24 available and appropriate, existing public and pri-
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1 vate agencies in the community shall be used for the

2 provision of such services.

3 SEC. 274. AUTHORIZATION OF APPROPRIATIONS FOR

4 BLOCK GRANTS.

5 There is authorized to be appropriated, for block grants

6 under this title, $6,300,000,000 for each of fiscal years

7 1996, 1997, 1998, 1999, and 2000.

8 SEC. 275. AUTHORIZATION OF APPROPRIATIONS FOR OPER9 ATION SAFE HOME.

10 There is authorized to be appropriated, for assistance

11 for relocating residents of public housing under the oper12 ation safe home program of the Department of Housing and

13 Urban Development (including assistance for costs of relo14 cation and housing assistance under title III), $700,000 for

15 each of fiscal years 1996, 1997, 1998, 1999, and 2000. The

16 Secretary shall provide that families who are residing in

17 public housing, who have been subject to domestic violence,

18 and for whom provision of assistance is likely to reduce or

19 eliminate the threat of subsequent violence to the members

20 of the family, shall be eligible for assistance under the oper21 ation safe home program.
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1 TITLE III—CHOICE-BASED RENT2 AL HOUSING AND HOME3 OWNERSHIP ASSISTANCE FOR

4 LOW-INCOME FAMILIES

5 Subtitle A—Allocation

6 SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE

7 AMOUNTS.

8 To the extent that amounts to carry out this title are

9 made available, the Secretary may enter into contracts with

10 local housing and management authorities for each fiscal

11 year to provide housing assistance under this title.

12 SEC. 302. CONTRACTS WITH LHMA’S.

13 (a) CONDITION OF ASSISTANCE.—The Secretary may

14 provide amounts under this title to a local housing and

15 management authority for a fiscal year only if the Sec16 retary has entered into a contract under this section with

17 the local housing and management authority, under which

18 the Secretary shall provide such authority with amounts

19 (in the amount of the allocation for the authority deter20 mined pursuant to section 304) for housing assistance

21 under this title for low-income families.

22 (b) USE FOR HOUSING ASSISTANCE.—A contract

23 under this section shall require a local housing and man24 agement authority to use amounts provided under this title
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1 to provide housing assistance in any manner authorized

2 under this title.

3 (c) ANNUAL OBLIGATION OF AUTHORITY.—A contract

4 under this title shall provide amounts for housing assistance

5 for 1 fiscal year covered by the contract.

6 (d) ENFORCEMENT OF HOUSING QUALITY REQUIRE7 MENTS.—Each contract under this section shall require the

8 local housing and management authority administering as9 sistance provided under the contract—

10 (1) to ensure compliance, under each housing as11 sistance payments contract entered into pursuant to

12 the contract under this section, with the provisions of

13 the housing assistance payments contract included

14 pursuant to section 351(c)(4); and

15 (2) to establish procedures for assisted families to

16 notify the authority of any noncompliance with such

17 provisions.

18 SEC. 303. ELIGIBILITY OF LHMA’S FOR ASSISTANCE

19 AMOUNTS.

20 The Secretary may provide amounts available for

21 housing assistance under this title to a local housing and

22 management authority only if—

23 (1) the authority has submitted a local housing

24 management plan to the Secretary for such fiscal year

25 and applied to the Secretary for such assistance;
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1 (2) the plan has been determined to comply with

2 the requirements under section 107 and the Secretary

3 has not notified the authority that the plan fails to

4 comply with such requirements;

5 (3) the authority is accredited under section 433

6 by the Housing Foundation and Accreditation Board;

7 (5) no member of the board of directors or other

8 governing body of the authority, or the executive di9 rector, has been convicted of a felony; and

10 (6) the authority has not been disqualified for

11 assistance pursuant to subtitle B of title IV.

12 SEC. 304. ALLOCATION OF AMOUNTS.

13 (a) FORMULA ALLOCATION.—

14 (1) IN GENERAL.—When amounts for assistance

15 under this title are first made available for reserva16 tion, after reserving amounts in accordance with sub17 section (c) and section 109, the Secretary shall allo18 cate such amounts, only among local housing and

19 management authorities meeting the requirements

20 under this title to receive such assistance, on the basis

21 of a formula that is established in accordance with

22 paragraph (2) and based upon appropriate criteria to

23 reflect the needs of different States, areas, and com24 munities, using the most recent data available from

25 the Bureau of the Census of the Department of Com-
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1 merce and the comprehensive housing affordability

2 strategy under section 105 of the Cranston-Gonzalez

3 National Affordable Housing Act (or any consolidated

4 plan incorporating such strategy) for the applicable

5 jurisdiction. The Secretary may establish a minimum

6 allocation amount, in which case only the local hous7 ing and management authorities that, pursuant to the

8 formula, are provided an amount equal to or greater

9 than the minimum allocation amount, shall receive

10 an allocation.

11 (2) REGULATIONS.—The formula under this sub12 section shall be established by regulation issued by the

13 Secretary. Notwithstanding sections 563(a) and

14 565(a) of title 5, United States Code, any proposed

15 regulation containing such formula shall be issued

16 pursuant to a negotiated rulemaking procedure under

17 subchapter of chapter 5 of such title and the Secretary

18 shall establish a negotiated rulemaking committee for

19 development of any such proposed regulations.

20 (b) ALLOCATION CONSIDERATIONS.—

21 (1) LIMITATION ON REALLOCATION FOR AN22 OTHER STATE.—Any amounts allocated for a State or

23 areas or communities within a State that are not

24 likely to be used within the fiscal year for which the

25 amounts are provided shall not be reallocated for use
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1 in another State, unless the Secretary determines that

2 other areas or communities within the same State

3 (that are eligible for amounts under this title) cannot

4 use the amounts within the same fiscal year.

5 (2) EFFECT OF RECEIPT OF TENANT-BASED AS6 SISTANCE FOR DISABLED FAMILIES.—The Secretary

7 may not consider the receipt by a local housing and

8 management authority of assistance under section

9 811(b)(1) of the Cranston-Gonzalez National Afford10 able Housing Act, or the amount received, in approv11 ing amounts under this title for the authority or in

12 determining the amount of such assistance to be pro13 vided to the authority.

14 (3) EXEMPTION FROM FORMULA ALLOCATION.—

15 The formula allocation requirements of subsection (a)

16 shall not apply to any assistance under this title that

17 is approved in appropriation Acts for uses that the

18 Secretary determines are incapable of geographic allo19 cation, including amendments of existing housing as20 sistance payments contracts, renewal of such con21 tracts, assistance to families that would otherwise lose

22 assistance due to the decision of the project owner to

23 prepay the project mortgage or not to renew the hous24 ing assistance payments contract, assistance to pre25 vent displacement or to provide replacement housing
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1 in connection with the demolition or disposition of

2 public and Indian housing, assistance for relocation

3 from public housing, assistance in connection with

4 protection of crime witnesses, assistance for conver5 sion from leased housing contracts under section 23 of

6 the United States Housing Act of 1937 (as in effect

7 before the enactment of the Housing and Community

8 Development Act of 1974), and assistance in support

9 of the property disposition and loan management

10 functions of the Secretary.

11 (c) SET-ASIDE FOR INDIAN HOUSING ASSISTANCE.—

12 The Secretary shall allocate, in a manner determined by

13 the Secretary, a portion of the amounts made available in

14 each fiscal year for assistance under this title for assistance

15 for Indian housing authorities.

16 (d) RECAPTURE OF AMOUNTS.—

17 (1) AUTHORITY.—In each fiscal year, from any

18 budget authority made available for assistance under

19 this title or section 8 of the United States Housing

20 Act of 1937 (as in effect before the enactment of this

21 Act) that is obligated to a local housing and manage22 ment authority but remains unobligated by the au23 thority upon the expiration of the 8-month period be24 ginning upon the initial availability of such amounts

25 for obligation by the authority, the Secretary may
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1 deobligate an amount, as determined by the Sec2 retary, not exceeding 50 percent of such unobligated

3 amount.

4 (2) USE.—The Secretary may reallocate and

5 transfer any amounts deobligated under paragraph

6 (1) only to local housing and management authorities

7 in areas that the Secretary determines have received

8 less funding than other areas, based on the relative

9 needs of all areas.

10 SEC. 305. ADMINISTRATIVE FEES.

11 (a) FEE FOR ONGOING COSTS OF ADMINISTRATION.—

12 (1) IN GENERAL.—The Secretary shall establish

13 fees for the costs of administering the choice-based

14 housing assistance program under this title.

15 (2) FISCAL YEAR 1996.—

16 (A) CALCULATION.—For fiscal year 1996,

17 the fee for each month for which a dwelling unit

18 is covered by a contract for assistance under this

19 title shall be—

20 (i) in the case of a local housing and

21 management authority that, on an annual

22 basis, is administering a program for not

23 more than 600 dwelling units, 6.5 percent

24 of the base amount; and
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1 (ii) in the case of an authority that, on

2 an annual basis, is administering a pro3 gram for more than 600 dwelling units—

4 (I) for the first 600 units, 6.5 per5 cent of the base amount; and

6 (II) for any additional dwelling

7 units under the program, 6.0 percent

8 of the base amount.

9 (B) BASE AMOUNT.—For purposes of this

10 paragraph, the base amount shall be the higher

11 of—

12 (i) the fair market rental established

13 under section 8(c) of the United States

14 Housing Act of 1937 (as in effect imme15 diately before the date of the enactment of

16 this Act) for fiscal year 1993 for a 2-bed17 room existing rental dwelling unit in the

18 market area of the authority, and

19 (ii) the amount that is the lesser of (I)

20 such fair market rental for fiscal year 1994

21 or (II) 103.5 percent of the amount deter22 mined under clause (i),

23 adjusted based on changes in wage data or other

24 objectively measurable data that reflect the costs

25 of administering the program, as determined by
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1 the Secretary. The Secretary may require that

2 the base amount be not less than a minimum

3 amount and not more than a maximum amount.

4 (3) SUBSEQUENT FISCAL YEARS.—For subse5 quent fiscal years, the Secretary shall publish a notice

6 in the Federal Register, for each geographic area, es7 tablishing the amount of the fee that would apply for

8 local housing and management authorities admin9 istering the program, based on changes in wage data

10 or other objectively measurable data that reflect the

11 costs of administering the program, as determined by

12 the Secretary.

13 (4) INCREASE.—The Secretary may increase the

14 fee if necessary to reflect the higher costs of admin15 istering small programs and programs operating over

16 large geographic areas.

17 (b) FEE FOR PRELIMINARY EXPENSES.—The Sec18 retary shall also establish reasonable fees (as determined by

19 the Secretary) for—

20 (1) the costs of preliminary expenses, in the

21 amount of $500, for a local housing and management

22 authority, but only in the first year that the author23 ity administers a choice-based housing assistance pro24 gram under this title, and only if, immediately before

25 the date of the enactment of this Act, the authority
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1 was not administering a tenant-based rental assist2 ance program under the United States Housing Act

3 of 1937 (as in effect immediately before such date of

4 enactment), in connection with its initial increment

5 of assistance received;

6 (2) the costs incurred in assisting families who

7 experience difficulty (as determined by the Secretary)

8 in obtaining appropriate housing under the pro9 grams; and

10 (3) extraordinary costs approved by the Sec11 retary.

12 (c) TRANSFER OF FEES IN CASES OF CONCURRENT

13 GEOGRAPHICAL JURISDICTION.—

14 (1) IN GENERAL.—In each fiscal year, if any

15 local housing and management authority provides

16 tenant-based rental assistance under section 8 of the

17 United States Housing Act of 1937 or housing assist18 ance under this title on behalf of a family who uses

19 such assistance for a dwelling unit that is located

20 within the jurisdiction of such authority but is also

21 within the jurisdiction of another local housing and

22 management authority, the Secretary shall require the

23 authority issuing such assistance to transfer the

24 amount provided under paragraph (2) to the closest

25 eligible authority that is approved to administer the
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1 program and is not designated as a troubled author2 ity under section 431(a)(2)(D).

3 (2) ADMINISTRATIVE FEE.—The amount pro4 vided under this paragraph is, with respect to each

5 such family described in subsection (a)—

6 (A) in the case of assistance under section

7 8 of the United States Housing Act of 1937, the

8 amount received under section 8(q) of such Act

9 that is attributable to the administrative fee

10 under such section for such family for the por11 tion of the fiscal year during which such family

12 resides in the dwelling unit described in para13 graph (1); and

14 (B) in the case of housing assistance under

15 this title, an amount of the grant amounts re16 ceived under this title that is equal to the admin17 istrative fee for a family established under sec18 tion 305 for such fiscal year, as adjusted based

19 on the portion of the fiscal year during which

20 such family resides in the dwelling unit de21 scribed in paragraph (1).

22 SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS.

23 (a) IN GENERAL.—There is authorized to be appro24 priated for providing local housing and management au25 thorities with housing assistance under this title,
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1 $1,861,668,000 for each of fiscal years 1996, 1997, 1998,

2 1999, and 2000.

3 (b) ASSISTANCE FOR DISABLED FAMILIES.—

4 (1) AUTHORIZATION OF APPROPRIATIONS.—

5 There is authorized to be appropriated, for choice6 based housing assistance under this title to be used in

7 accordance with paragraph (2), $50,000,000 for fiscal

8 year 1997, and such sums as may be necessary for

9 each subsequent fiscal year.

10 (2) USE.—The Secretary shall provide amounts

11 made available under paragraph (1) to local housing

12 and management authorities only for use to provide

13 housing assistance under this title for nonelderly dis14 abled families (including such families relocating

15 pursuant to designation of a public housing develop16 ment under section 227 and other nonelderly disabled

17 families who have applied to the authority for hous18 ing assistance under this title).

19 (3) ALLOCATION OF AMOUNTS.—The Secretary

20 shall allocate and provide amounts made available

21 under paragraph (1) to local housing and manage22 ment authorities as the Secretary determines appro23 priate based on the relative levels of need among the

24 authorities for assistance for families described in

25 paragraph (1).
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1 SEC. 307. CONVERSION OF SECTION 8 ASSISTANCE.

2 (a) IN GENERAL.—Any amounts made available to a

3 local housing and management authority under a contract

4 for annual contributions for assistance under section 8 of

5 the United States Housing Act of 1937 (as in effect before

6 the enactment of this Act) that have not been obligated for

7 such assistance by such authority before such enactment

8 shall be used to provide assistance under this title, except

9 to the extent the Secretary determines such use is inconsist10 ent with existing commitments.

11 (b) EXCEPTION.—Subsection (a) shall not apply to

12 any amounts made available under a contract for housing

13 constructed or substantially rehabilitated pursuant to sec14 tion 8(b)(2) of the United States Housing Act of 1937, as

15 in effect before October 1, 1983.

16 Subtitle B—Choice-Based Housing

17 Assistance for Eligible Families

18 SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR AS19 SISTANCE.

20 (a) LOW-INCOME REQUIREMENT.—Housing assistance

21 under this title may be provided only on behalf of a family

22 that—

23 (1) at the time that such assistance is initially

24 provided on behalf of the family, is determined by the

25 local housing and management authority to be a low26 income family; or
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1 (2) qualifies to receive such assistance under any

2 other provision of Federal law.

3 (b) REVIEWS OF FAMILY INCOMES.—

4 (1) IN GENERAL.—Reviews of family incomes for

5 purposes of this title shall be subject to the provisions

6 of section 904 of the Stewart B. McKinney Homeless

7 Assistance Amendments Act of 1988 and shall be con8 ducted upon the initial provision of housing assist9 ance for the family and thereafter not less than annu10 ally.

11 (2) PROCEDURES.—Each local housing and

12 management authority administering housing assist13 ance under this title shall establish procedures that

14 are appropriate and necessary to ensure that income

15 data provided to the authority and owners by families

16 applying for or receiving housing assistance from the

17 authority is complete and accurate.

18 (c) PREFERENCES FOR ASSISTANCE.—

19 (1) AUTHORITY TO ESTABLISH.—Any local hous20 ing and management authority that receives amounts

21 under this title may establish a system for making

22 housing assistance available on behalf of eligible fami23 lies that provides preference for such assistance to eli24 gible families having certain characteristics.
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1 (2) CONTENT.—Each system of preferences estab2 lished pursuant to this subsection shall be based upon

3 local housing needs and priorities, as determined by

4 the local housing and management authority using

5 generally accepted data sources, including any infor6 mation obtained pursuant to an opportunity for pub7 lic comment as provided under section 107(e) or

8 under the requirements applicable to comprehensive

9 housing affordability strategy for the relevant juris10 diction.

11 (d) TREATMENT OF ASSISTED FAMILIES WHO MOVE

12 OUT OF JURISDICTION OF LHMA.—

13 (1) IN GENERAL.—A local housing and manage14 ment authority may, in the discretion of the agency

15 and notwithstanding any preferences under subsection

16 (c), provide housing assistance for eligible families (or

17 a certain number of such families) who have moved

18 into the jurisdiction of the authority and on whose be19 half such assistance was being provided, at the time

20 of such move, by the authority for the jurisdiction

21 from which the family moved.

22 (2) ASSISTANCE UNDER 1937 ACT.—Notwith23 standing any provision of this title, a local housing

24 and management authority who, upon the date of the

25 enactment of this Act, is providing assistance under
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1 section 8 of the United States Housing Act of 1937

2 for a family pursuant to subsection (r) of such section

3 shall continue to provide such assistance (or housing

4 assistance under this title) in accordance with such

5 section until the local housing and management au6 thority for the jurisdiction to which the family moved

7 provides housing assistance on behalf of the family

8 pursuant to paragraph (1) of this subsection or other9 wise or the authority terminates such assistance for

10 other reasons.

11 (e) TREATMENT OF FAMILIES ON WAITING LIST WHO

12 MOVE OUT OF JURISDICTION OF LHMA.—

13 (1) MOVE TO JURISDICTION WITH OPEN WAITING

14 LIST.—Except as provided in paragraph (2), if an el15 igible family (A) applies for choice-based housing as16 sistance while residing within the jurisdiction of a

17 local housing and management authority, (B) moves

18 outside of the jurisdiction of the authority before such

19 assistance is provided on behalf of the family, and (C)

20 applies for housing assistance from the local housing

21 and management authority for the jurisdiction to

22 which the family moves, such authority shall consider

23 the application to have been made upon the date that

24 the family applied for assistance with the authority

25 in whose jurisdiction the family previously resided.
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1 (2) MOVE TO JURISDICTION WITH CLOSED WAIT2 ING LIST.—If the local housing and management au3 thority for the jurisdiction to which an eligible family

4 described in paragraph (1) moves is not generally ac5 cepting applications for housing assistance, such ju6 risdiction shall accept the application of such family

7 but shall treat the application as having been made

8 on the date on which it is actually made. Notwith9 standing the preceding sentence, a local housing and

10 management authority may (at the discretion of the

11 authority) provide that any application by an eligible

12 family whose move to the jurisdiction not accepting

13 applications for assistance was made because of a ver14 ifiable employment opportunity shall be subject to the

15 provisions of paragraph (1).

16 (f) AUTHORITY TO DENY ASSISTANCE TO CERTAIN

17 FAMILIES WHO MOVE.—A local housing and management

18 authority may establish criteria for denying housing assist19 ance, and pursuant to such criteria may deny such assist20 ance, to an eligible family who has moved from the jurisdic21 tion of another authority, who received housing assistance

22 from the authority for such other jurisdiction, and whose

23 assistance was terminated by such other authority for rea24 sons other than income ineligibility or the change of resi25 dence.
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1 (g) LOSS OF ASSISTANCE UPON TERMINATION OF

2 TENANCY.—A local housing and management authority

3 may, to the extent such policies are described in the local

4 housing management plan of the authority and included

5 in the lease for a dwelling unit, establish policies providing

6 that an assisted family whose tenancy is terminated for se7 rious violations of the terms or conditions of the lease

8 shall—

9 (1) lose any right to continued housing assist10 ance; and

11 (2) immediately become ineligible for housing as12 sistance under this title for a period not exceeding 3

13 years from the date of the termination of the housing

14 assistance.

15 (h) CONFIDENTIALITY FOR VICTIMS OF DOMESTIC VIO16 LENCE.—A local housing and management authority shall

17 be subject to the restrictions regarding release of informa18 tion relating to the identity and new residence of any fam19 ily receiving housing assistance who was a victim of domes20 tic violence that are applicable to shelters pursuant to the

21 Family Violence Prevention and Services Act. The author22 ity shall work with the United States Postal Service to es23 tablish procedures consistent with the confidentiality provi24 sions in the Violence Against Women Act of 1994.
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1 SEC. 322. RESIDENT CONTRIBUTION.

2 (a) IN GENERAL.—An assisted family shall contribute

3 on a monthly basis for the rental of an assisted dwelling

4 unit an amount that the local housing and management

5 authority determines is appropriate with respect to the fam6 ily. The amount of the minimum monthly rental contribu7 tion—

8 (1) shall be based upon factors including the ad9 justed income of the family and any other factors that

10 the authority considers appropriate;

11 (2) shall be not less than $25;

12 (3) shall include any portion of the cost of utili13 ties for the dwelling unit for which the resident is re14 sponsible; and

15 (4) may be increased annually by the authority,

16 except that no such annual increase may exceed 10

17 percent of the amount of the minimum monthly con18 tribution in effect for the preceding year.

19 In any case in which the monthly rent charged for a dwell20 ing unit pursuant to the housing assistance payments con21 tract exceeds the payment standard (established under sec22 tion 353) for the dwelling unit, the assisted family residing

23 in the unit shall contribute (in addition to the amount of

24 the monthly rent contribution otherwise determined under

25 this subsection for such family) such entire excess rental

26 amount.
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1 (b) RENTAL CONTRIBUTION FOR ELDERLY AND DIS2 ABLED FAMILIES.—In establishing the amount of monthly

3 rental contributions under this section for disabled families

4 and elderly families residing in assisted dwelling units, a

5 local housing and management authority shall waive the

6 applicability of any provision of subsection (a) that may

7 be necessary to establish such contributions that are reason8 able based on the adjusted incomes of such families.

9 (c) TREATMENT OF CHANGES IN RENTAL CONTRIBU10 TION.—

11 (1) NOTIFICATION OF CHANGES.—A local hous12 ing and management authority shall promptly notify

13 the owner of an assisted dwelling unit of any change

14 in the resident contribution by the assisted family re15 siding in the unit that takes effect immediately or at

16 a later date.

17 (2) COLLECTION OF RETROACTIVE CHANGES.—In

18 the case of any change in the rental contribution of

19 an assisted family that affects rental payments pre20 viously made, the local housing and management au21 thority shall collect any additional amounts required

22 to be paid by the family under such change directly

23 from the family and shall refund any excess rental

24 contribution paid by the family directly to the fam25 ily.
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1 (d) PHASE-IN OF RENT CONTRIBUTION INCREASES.—

2 (1) IN GENERAL.—Except as provided in para3 graph (2), for any family that is receiving tenant4 based rental assistance under section 8 of the United

5 States Housing Act of 1937 upon the initial applica6 bility of the provisions of this title to such family, if

7 the monthly contribution for rental of an assisted

8 dwelling unit to be paid by the family upon such ini9 tial applicability is greater than the amount paid by

10 the family under the provisions of the United States

11 Housing Act of 1937 immediately before such applica12 bility, any such resulting increase in rent contribu13 tion shall be—

14 (A) phased in equally over a period of not

15 less than 3 years, if such increase is 30 percent

16 or more of such contribution before initial appli17 cability; and

18 (B) limited to not more than 10 percent per

19 year if such increase is more than 10 percent but

20 less than 30 percent of such contribution before

21 initial applicability.

22 (2) EXCEPTION.—The minimum rent contribu23 tion requirement under subsection (a)(2) shall apply

24 to each family described in paragraph (1) of this sub25 section, notwithstanding such paragraph.
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1 SEC. 323. RENTAL INDICATORS.

2 (a) IN GENERAL.—The Secretary shall establish and

3 issue rental indicators under this section periodically, but

4 not less than annually, for existing rental dwelling units

5 that are eligible dwelling units. The Secretary shall estab6 lish and issue the rental indicators by housing market area

7 (as the Secretary shall establish) for various sizes and types

8 of dwelling units.

9 (b) AMOUNT.—For a market area, the rental indicator

10 established under subsection (a) for a dwelling unit of a

11 particular size and type in the market area shall be a dollar

12 amount that reflects the rental amount for a standard qual13 ity rental unit of such size and type in the market area

14 that is an eligible dwelling unit.

15 (c) EFFECTIVE DATE.—The Secretary shall cause the

16 proposed rental indicators established under subsection (a)

17 for each market area to be published in the Federal Register

18 with reasonable time for public comment, and such rental

19 indicators shall become effective upon the date of publica20 tion in final form in the Federal Register.

21 (d) ANNUAL ADJUSTMENT.—Each rental indicator in

22 effect under this section shall be adjusted to be effective on

23 October 1 of each year to reflect changes, based on the most

24 recent available data trended so that the indicators will be

25 current for the year to which they apply, in rents for exist26 ing rental dwelling units of various sizes and types in the
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1 market area suitable for occupancy by families assisted

2 under this title.

3 SEC. 324. LEASE TERMS.

4 Rental assistance may be provided for an eligible

5 dwelling unit only if the assisted family and the owner of

6 the dwelling unit enter into a lease for the unit that—

7 (1) provides for a single lease term of 12 months

8 and continued tenancy after such term under a peri9 odic tenancy on a month-to-month basis;

10 (2) contains terms and conditions specifying

11 that termination of tenancy during the term of a

12 lease shall be subject to the provisions set forth in sec13 tion 325; and

14 (3) is set forth in the standard form, which is

15 used in the local housing market area by the owner

16 and applies generally to any other tenants in the

17 property who are not assisted families, together with

18 any addendum necessary to include the many terms

19 required under this section.

20 A lease may include any addenda appropriate to set forth

21 the provisions under section 325.

22 SEC. 325. TERMINATION OF TENANCY.

23 (a) GENERAL GROUNDS FOR TERMINATION OF TEN24 ANCY.—Each housing assistance payments contract under

25 section 351 shall provide that the owner of any assisted
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1 dwelling unit assisted under the contract may, before expi2 ration of a lease for a unit, terminate the tenancy of any

3 tenant of the unit, but only for—

4 (1) violation of the terms and conditions of the

5 lease, violation of applicable Federal, State, or local

6 law, or other good cause; or

7 (2) any activity, engaged in by the tenant, any

8 member of the tenant’s household, or any guest or

9 other person under the tenant’s control, that—

10 (A) threatens the health or safety of, or

11 right to peaceful enjoyment of the premises by,

12 other tenants or employees of the owner or man13 ager of the housing;

14 (B) threatens the health or safety of, or

15 right to peaceful enjoyment of their residences

16 by, persons residing in the immediate vicinity of

17 the premises; or

18 (C) is criminal activity (including drug-re19 lated criminal activity).

20 (b) MANNER OF TERMINATION.—Each housing assist21 ance payments contract shall provide that the owner shall

22 conduct the termination of tenancy of any tenant of an as23 sisted dwelling unit under the contract in accordance with

24 applicable State or local laws, including providing any no25 tice of termination required under such laws.
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1 SEC. 326. ELIGIBLE OWNERS.

2 (a) OWNERSHIP ENTITY.—Rental assistance under

3 this title may be provided for any eligible dwelling unit

4 for which the owner is any public agency, private person

5 or entity (including a cooperative), nonprofit organization,

6 agency of the Federal Government, or local housing and

7 management authority.

8 (b) INELIGIBLE OWNERS.—

9 (1) IN GENERAL.—Notwithstanding subsection

10 (a), a local housing and management authority may

11 not enter into a housing assistance payments contract

12 (or renew an existing contract) covering a dwelling

13 unit that is owned by an owner who is debarred, sus14 pended, or subject to limited denial of participation

15 under part 24 of title 24, Code of Federal Regula16 tions.

17 (2) PROHIBITION OF SALE TO RELATED PAR18 TIES.—The Secretary shall establish guidelines to pre19 vent housing assistance payments for a dwelling unit

20 that is owned by any spouse, child, or other party

21 who allows an owner described in paragraph (1) to

22 maintain control of the unit.

23 (3) RULE OF CONSTRUCTION.—This subsection

24 may not be construed to prohibit, or authorize the ter25 mination or suspension, of payment of housing assist26 ance under a housing assistance payments contract in
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1 effect at the time such debarment, suspension, or lim2 ited denial of participation takes effect.

3 SEC. 327. SELECTION OF DWELLING UNITS.

4 (a) FAMILY CHOICE.—The determination of the dwell5 ing unit in which an assisted family resides and for which

6 housing assistance is provided under this title shall be made

7 solely by the assisted family, subject to the provisions of

8 this title.

9 (b) DEED RESTRICTIONS.—Housing assistance may

10 not be used in any manner that abrogates any local deed

11 restriction that applies to any housing consisting of 1 to

12 4 dwelling units. Nothing in this section may be construed

13 to affect the provisions or applicability of the Fair Housing

14 Act.

15 SEC. 328. ELIGIBLE DWELLING UNITS.

16 (a) IN GENERAL.—A dwelling unit shall be an eligible

17 dwelling unit for purposes of this title only if the local hous18 ing and management authority to provide housing assist19 ance for the dwelling unit determines that the dwelling

20 unit—

21 (1) is an existing dwelling unit that is not lo22 cated within a nursing home or the grounds of any

23 penal, reformatory, medical, mental, or similar public

24 or private institution; and

25 (2) complies—
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1 (A) with applicable State or local laws, reg2 ulations, standards, or codes regarding habit3 ability of residential dwellings that—

4 (i) are in effect for the jurisdiction in

5 which the dwelling unit is located;

6 (ii) provide protection to residents of

7 the dwellings that is equal to or greater

8 than the protection provided under the

9 housing quality standards established under

10 subsection (b); and

11 (iii) that do not severely restrict hous12 ing choice; or

13 (B) in the case of a dwelling unit located in

14 a jurisdiction which does not have in effect laws,

15 regulations, standards, or codes described in sub16 paragraph (A), with the housing quality stand17 ards established under subsection (b).

18 Each local housing and management authority providing

19 housing assistance shall identify, in the local housing man20 agement plan for the authority, whether the authority is

21 utilizing the standard under subparagraph (A) or (B) of

22 paragraph (2) and, if the authority utilizes the standard

23 under subparagraph (A), shall certify in such plan that the

24 applicable State or local laws, regulations, standards, or
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1 codes comply with the requirements under such subpara2 graph.

3 (b) DETERMINATIONS.—

4 (1) IN GENERAL.—A local housing and manage5 ment authority shall make the determinations re6 quired under subsection (a) pursuant to an inspection

7 of the dwelling unit conducted before any assistance

8 payment is made for the unit.

9 (2) FAILURE TO INSPECT.—Notwithstanding

10 subsection (a), if the inspection and the determina11 tions referred to in paragraph (1) are not made before

12 the expiration of the 7-day period beginning upon a

13 request by the resident or landlord to the local hous14 ing and management authority—

15 (A) the dwelling unit shall be considered to

16 be an eligible dwelling unit for purposes of this

17 title; and

18 (B) the assisted family may occupy the

19 dwelling unit, and assistance payments for the

20 unit may be made before necessary repairs are

21 completed, it the owner agrees to make such re22 pairs within 15 days.

23 (c) FEDERAL HOUSING QUALITY STANDARDS.—The

24 Secretary shall establish housing quality standards under

25 this subsection that ensure that assisted dwelling units are
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1 safe, clean, and healthy. Such standards shall include re2 quirements relating to habitability, including maintenance,

3 health and sanitation factors, condition, and construction

4 of dwellings, and shall, to the greatest extent practicable,

5 be consistent with the standards established under section

6 232(b). The Secretary shall differentiate between major and

7 minor violations of such standards.

8 (d) ANNUAL INSPECTIONS.—Each local housing and

9 management authority providing housing assistance shall

10 make an annual inspection of each assisted dwelling unit

11 during the term of the housing assistance payments con12 tracts for the unit to determine whether the unit is main13 tained in accordance with the requirements under sub14 section (a)(2). The authority shall submit the results of such

15 inspections to the Secretary and the Inspector General for

16 the Department of Housing and Urban Development and

17 such results shall be available to the Housing Foundation

18 and Accreditation Board established under title IV and any

19 auditor conducting an audit under section 432.

20 (e) INSPECTION GUIDELINES.—The Secretary shall es21 tablish procedural guidelines and performance standards to

22 facilitate inspections of dwelling units and conform such

23 inspections with practices utilized in the private housing

24 market. Such guidelines and standards shall take into con25 sideration variations in local laws and practices of local
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1 housing and management authorities and shall provide

2 flexibility to authorities appropriate to facilitate efficient

3 provision of assistance under this title.

4 (f) RULE OF CONSTRUCTION.—This section may not

5 be construed to prevent the provision of housing assistance

6 in connection with supportive services for elderly or dis7 abled families.

8 SEC. 329. HOMEOWNERSHIP OPTION.

9 (a) IN GENERAL.—A local housing and management

10 authority providing housing assistance under this title may

11 provide homeownership assistance to assist eligible families

12 to purchase a dwelling unit (including purchase under

13 lease-purchase homeownership plans).

14 (b) REQUIREMENTS.—A local housing and manage15 ment authority providing homeownership assistance under

16 this section shall, as a condition of an eligible family receiv17 ing such assistance, require the family to—

18 (1) demonstrate that the family has income from

19 employment or other sources (other than public assist20 ance), as determined in accordance with requirements

21 established by the authority; and

22 (2) meet any other initial or continuing require23 ments established by the local housing and manage24 ment authority.

25 (c) DOWNPAYMENT REQUIREMENT.—
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1 (1) IN GENERAL.—A local housing and manage2 ment authority may establish minimum downpay3 ment requirements, if appropriate, in connection with

4 loans made for the purchase of dwelling units for

5 which homeownership assistance is provided under

6 this section. If the authority establishes a minimum

7 downpayment requirement, except as provided in

8 paragraph (2) the authority shall permit the family

9 to use grant amounts, gifts from relatives, contribu10 tions from private sources, and similar amounts as

11 downpayment amounts in such purchase.

12 (2) DIRECT FAMILY CONTRIBUTION.—In pur13 chasing housing pursuant to this section subject to a

14 downpayment requirement, each family shall contrib15 ute an amount of the downpayment, from resources of

16 the family other than grants, gifts, contributions, or

17 other similar amounts referred to in paragraph (1),

18 that is not less than 1 percent of the purchase price.

19 (d) INELIGIBILITY UNDER OTHER PROGRAMS.—A

20 family may not receive homeownership assistance pursuant

21 to this section during any period when assistance is being

22 provided for the family under other Federal homeownership

23 assistance programs, as determined by the Secretary, in24 cluding assistance under the HOME Investment Partner25 ships Act, the Homeownership and Opportunity Through
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1 HOPE Act, title II of the Housing and Community Devel2 opment Act of 1987, and section 502 of the Housing Act

3 of 1949.

4 Subtitle C—Payment of Housing As5 sistance on Behalf of Assisted

6 Families

7 SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.

8 (a) IN GENERAL.—Each local housing and manage9 ment authority that receives amounts under a contract

10 under section 302 may enter into housing assistance pay11 ments contracts with owners of existing dwelling units to

12 make housing assistance payments to such owners in ac13 cordance with this title.

14 (b) LHMA ACTING AS OWNER.—A local housing and

15 management authority may enter into a housing assistance

16 payments contract to make housing assistance payments

17 under this title to itself (or any agency or instrumentality

18 thereof) as the owner of dwelling units, and the authority

19 shall be subject to the same requirements that are applicable

20 to other owners, except that the determinations under sec21 tion 328(a) and 354(b) shall be made by a competent party

22 not affiliated with the authority or the owner, and the au23 thority shall be responsible for any expenses of such deter24 minations.
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1 (c) PROVISIONS.—Each housing assistance payments

2 contract shall—

3 (1) have a term of not more than 12 months;

4 (2) require that the assisted dwelling unit may

5 be rented only pursuant to a lease that complies with

6 the requirements of section 324;

7 (3) comply with the requirements of section 325

8 (relating to termination of tenancy);

9 (4) require the owner to maintain the dwelling

10 unit in accordance with the applicable standards

11 under section 328(a)(2); and

12 (5) provide that the screening and selection of el13 igible families for assisted dwelling units shall be the

14 function of the owner.

15 SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.

16 The amount of the monthly assistance payment for

17 housing assistance under this title on behalf of an assisted

18 family shall be as follows:

19 (1) UNITS HAVING GROSS RENT LESS THAN PAY20 MENT STANDARD.—In the case of a dwelling unit

21 bearing a gross rent that does not exceed the payment

22 standard established under section 353 for a dwelling

23 unit of the applicable size and located in the market

24 area in which such assisted dwelling unit is located,

25 the amount by which the gross rent for the dwelling
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1 unit exceeds the amount of the resident contribution

2 determined in accordance with section 322.

3 (2) UNITS HAVING GROSS RENT EXCEEDING PAY4 MENT STANDARD.—In the case of a dwelling unit

5 bearing a gross rent that exceeds the payment stand6 ard established under section 353 for a dwelling unit

7 of the applicable size and located in the market area

8 in which such assisted dwelling unit is located, the

9 amount by which such payment standard exceeds the

10 amount of the resident contribution determined in ac11 cordance with section 322.

12 SEC. 353. PAYMENT STANDARDS.

13 (a) ESTABLISHMENT.—Each local housing and man14 agement authority providing housing assistance under this

15 title shall establish payment standards under this section

16 for various areas, and sizes and types of dwelling units,

17 for use in determining the amount of monthly housing as18 sistance payment to be provided on behalf of assisted fami19 lies.

20 (b) USE OF RENTAL INDICATORS.—The payment

21 standard for each size and type of housing for each market

22 area shall be an amount that is not less than 80 percent,

23 and not greater than 120 percent, of the rental indicator

24 established under section 323 for such size and type for such

25 area.
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1 (c) REVIEW.—If the Secretary determines, at any

2 time, that a significant percentage of the assisted families

3 who are assisted by a large local housing and management

4 authority and are occupying dwelling units of a particular

5 size are paying more than 30 percent of their adjusted in6 comes for rent, the Secretary shall review the payment

7 standard established by the authority for such size dwell8 ings. If, pursuant to the review, the Secretary determines

9 that such payment standard is not appropriate to serve the

10 needs of the low-income population of the jurisdiction served

11 by the authority (taking into consideration rental costs in

12 the area), as identified in the approved community im13 provement plan of the authority, the Secretary may require

14 the local housing and management authority to modify the

15 payment standard. For purposes of this subsection, the term

16 ‘‘large local housing and management authority’’ means a

17 local housing and management authority that provides

18 housing assistance on behalf of 1250 or more assisted fami19 lies.

20 SEC. 354. REASONABLE RENTS.

21 (a) ESTABLISHMENT.—The rent charged for a dwelling

22 unit for which rental assistance is provided under this title

23 shall be established pursuant to negotiation and agreement

24 between the assisted family and the owner of the dwelling

25 unit.
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1 (b) REASONABLENESS.—

2 (1) DETERMINATION.—A local housing and man3 agement authority providing rental assistance under

4 this title for a dwelling unit shall, before commencing

5 assistance payments for a unit, determine whether the

6 rent charged for the unit exceeds the rents charged for

7 comparable units in the applicable private unassisted

8 market.

9 (2) UNREASONABLE RENTS.—If the authority de10 termines that the rent charged for a dwelling unit ex11 ceeds such comparable rents, the authority shall—

12 (A) inform the assisted family renting the

13 unit that such rent exceeds the rents for com14 parable unassisted units in the market; and

15 (B) refuse to provide housing assistance

16 payments for such unit.

17 SEC. 355. PROHIBITION OF ASSISTANCE FOR VACANT RENT18 AL UNITS.

19 If an assisted family vacates a dwelling unit for which

20 rental assistance is provided under a housing assistance

21 payments contract before the expiration of the term of the

22 lease for the unit, rental assistance pursuant to such con23 tract may not be provided for the unit after the month dur24 ing which the unit was vacated.
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1 Subtitle D—General and

2 Miscellaneous Provisions

3 SEC. 371. DEFINITIONS.

4 For purposes of this title:

5 (1) ASSISTED DWELLING UNIT.—The term ‘‘as6 sisted dwelling unit’’ means a dwelling unit in which

7 an assisted family resides and for which housing as8 sistance payments are made under this title.

9 (2) ASSISTED FAMILY.—The term ‘‘assisted fam10 ily’’ means an eligible family on whose behalf housing

11 assistance payments are made under this title or who

12 has been selected and approved for housing assistance.

13 (3) CHOICE-BASED.—The term ‘‘choice-based’’

14 means, with respect to housing assistance, that the as15 sistance is not attached to a dwelling unit but can be

16 used for any eligible dwelling unit selected by the eli17 gible family.

18 (4) ELIGIBLE DWELLING UNIT.—The term ‘‘eligi19 ble dwelling unit’’ means a dwelling unit that com20 plies with the requirements under section 328 for con21 sideration as an eligible dwelling unit.

22 (5) ELIGIBLE FAMILY.—The term ‘‘eligible fam23 ily’’ means a family that meets the requirements

24 under section 321(a) for assistance under this title.
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1 (6) HOMEOWNERSHIP ASSISTANCE.—The term

2 ‘‘homeownership assistance’’ means housing assistance

3 provided under section 329 for the ownership of a

4 dwelling unit.

5 (7) HOUSING ASSISTANCE.—The term ‘‘housing

6 assistance’’ means assistance provided under this title

7 on behalf of low-income families for the rental or

8 ownership of an eligible dwelling unit.

9 (8) HOUSING ASSISTANCE PAYMENTS CON10 TRACT.—The term ‘‘housing assistance payments con11 tract’’ means a contract under section 351 between a

12 local housing and management authority (or the Sec13 retary) and an owner to make housing assistance

14 payments under this title to the owner on behalf of an

15 assisted family.

16 (9) LOCAL HOUSING AND MANAGEMENT AUTHOR17 ITY.—The terms ‘‘local housing and management au18 thority’’ and ‘‘authority’’ have the meaning given

19 such terms in section 103, except that the terms in20 clude—

21 (A) a consortia of local housing and man22 agement authorities that the Secretary deter23 mines has the capacity and capability to admin24 ister a program for housing assistance under this

25 title in an efficient manner;
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1 (B) any other entity that, upon the date of

2 the enactment of this Act, was administering

3 any program for tenant-based rental assistance

4 under section 8 of the United States Housing Act

5 of 1937 (as in effect before the enactment of this

6 Act), pursuant to a contract with the Secretary

7 or a public housing agency; and

8 (C) with respect to any area in which no

9 local housing and management authority has

10 been organized or where the Secretary determines

11 that a local housing and management authority

12 is unwilling or unable to implement this title, or

13 is not performing effectively—

14 (i) the Secretary or another entity that

15 by contract agrees to receive assistance

16 amounts under this title and enter into

17 housing assistance payments contracts with

18 owners and perform the other functions of

19 local housing and management authority

20 under this title; or

21 (ii) notwithstanding any provision of

22 State or local law, a local housing and

23 management authority for another area

24 that contracts with the Secretary to admin25 ister a program for housing assistance
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1 under this title, without regard to any oth2 erwise applicable limitations on its area of

3 operation.

4 (10) OWNER.—The term ‘‘owner’’ means the per5 son or entity having the legal right to lease or sub6 lease dwelling units. Such term includes any prin7 cipals, general partners, primary shareholders, and

8 other similar participants in any entity owning a

9 multifamily housing project, as well as the entity it10 self.

11 (11) RENT.—The terms ‘‘rent’’ and ‘‘rental’’ in12 clude, with respect to members of a cooperative, the

13 charges under the occupancy agreements between such

14 members and the cooperative.

15 (12) RENTAL ASSISTANCE.—The term ‘‘rental as16 sistance’’ means housing assistance provided under

17 this title for the rental of a dwelling unit.

18 SEC. 372. RENTAL ASSISTANCE FRAUD RECOVERIES.

19 (a) AUTHORITY TO RETAIN RECOVERED AMOUNTS.—

20 The Secretary shall permit local housing and management

21 authorities administering housing assistance under this

22 title to retain, out of amounts obtained by the authorities

23 from tenants that are due as a result of fraud and abuse,

24 an amount (determined in accordance with regulations is25 sued by the Secretary) equal to the greater of—
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1 (1) 50 percent of the amount actually collected;

2 or

3 (2) the actual, reasonable, and necessary ex4 penses related to the collection, including costs of in5 vestigation, legal fees, and collection agency fees.

6 (b) USE.—Amounts retained by an authority shall be

7 made available for use in support of the affected program

8 or project, in accordance with regulations issued by the Sec9 retary. If the Secretary is the principal party initiating

10 or sustaining an action to recover amounts from families

11 or owners, the provisions of this section shall not apply.

12 (c) RECOVERY.—Amounts may be recovered under this

13 section—

14 (1) by an authority through a lawsuit (including

15 settlement of the lawsuit) brought by the authority or

16 through court-ordered restitution pursuant to a crimi17 nal proceeding resulting from an authority’s inves18 tigation where the authority seeks prosecution of a

19 family or where an authority seeks prosecution of an

20 owner;

21 (2) through administrative repayment agree22 ments with a family or owner entered into as a result

23 of an administrative grievance procedure conducted

24 by an impartial decisionmaker in accordance with

25 section 110; or
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1 (3) through an agreement between the parties.

2 SEC. 373. STUDY REGARDING GEOGRAPHIC CONCENTRA3 TION OF ASSISTED FAMILIES.

4 (a) IN GENERAL.—The Secretary shall conduct a

5 study of the geographic areas in the State of Illinois served

6 by the Housing Authority of Cook County and the Chicago

7 Housing Authority and submit to the Congress a report and

8 a specific proposal, which addresses and resolves the issues

9 of—

10 (1) the adverse impact on local communities due

11 to geographic concentration of assisted households

12 under the tenant-based housing programs under sec13 tion 8 of the United States Housing Act of 1937 (as

14 in effect immediately before the enactment of this Act)

15 and under this title; and

16 (2) facilitating the deconcentration of such as17 sisted households by providing broader housing

18 choices to such households.

19 The study shall be completed, and the report shall be sub20 mitted, not later than 90 days after the date of the enact21 ment of this Act.

22 (b) CONCENTRATION.—For purposes of this section, the

23 term ‘‘concentration’’ means, with respect to any area with24 in a census tract, that—
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1 (1) 15 percent or more of the households residing

2 within such area have incomes which do not exceed

3 the poverty level; or

4 (2) 15 percent or more of the total affordable

5 housing stock located within such area is assisted

6 housing.

7 TITLE IV—ACCREDITATION AND

8 OVERSIGHT OF LOCAL HOUS9 ING AND MANAGEMENT AU10 THORITIES

11 Subtitle A—Housing Foundation

12 and Accreditation Board

13 SEC. 401. ESTABLISHMENT.

14 There is established an independent agency in the exec15 utive branch of the Government to be known as the Housing

16 Foundation and Accreditation Board (in this title referred

17 to as the ‘‘Board’’).

18 SEC. 402. MEMBERSHIP.

19 (a) IN GENERAL.—The Board shall be composed of 12

20 members appointed by the President not later than 180

21 days after the date of the enactment of this Act, as follows:

22 (1) 4 members shall be appointed from among 10

23 individuals recommended by the Secretary of Housing

24 and Urban Development.
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1 (2) 4 members shall be appointed from among 10

2 individuals recommended by the Chairman and

3 Ranking Minority Member of the Committee on

4 Banking, Housing, and Urban Affairs of the Senate.

5 (3) 4 members appointed from among 10 indi6 viduals recommended by the Chairman and Ranking

7 Minority Member of the Committee on Banking and

8 Financial Services of the House of Representatives.

9 (b) QUALIFICATIONS.—

10 (1) REQUIRED REPRESENTATION.—The Board

11 shall at all times have the following members:

12 (A) 2 members who are residents of public

13 housing or dwelling units assisted under title III

14 of this Act or the provisions of section 8 of the

15 United States Housing Act of 1937 (as in effect

16 before the enactment of this Act).

17 (B) 2 members who are executive directors

18 of local housing and management authorities.

19 (C) 1 member who is a member of the Insti20 tute of Real Estate Managers.

21 (D) 1 member who is the owner of a multi22 family housing project assisted under a program

23 administered by the Secretary of Housing and

24 Urban Development.
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1 (2) REQUIRED EXPERIENCE.—The Board shall

2 at all times have as members individuals with the fol3 lowing experience:

4 (A) At least 1 individual who has extensive

5 experience in the residential real estate finance

6 business.

7 (B) At least 1 individual who has extensive

8 experience in operating a nonprofit organization

9 that provides affordable housing.

10 (C) At least 1 individual who has extensive

11 experience in construction of multifamily hous12 ing.

13 (D) At least 1 individual who has extensive

14 experience in the management of a community

15 development corporation.

16 A single member of the board with the appropriate ex17 perience may satisfy the requirements of more than 1

18 subparagraph of this paragraph. A single member of

19 the board with the appropriate qualifications and ex20 perience may satisfy the requirements of a subpara21 graph of paragraph (1) and a subparagraph of this

22 paragraph.

23 (c) POLITICAL AFFILIATION.—Not more than 6 mem24 bers of the Board may be of the same political party.

25 (d) TERMS.—
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1 (1) IN GENERAL.—Each member of the Board

2 shall be appointed for a term of 4 years, except as

3 provided in paragraphs (2) and (3).

4 (2) TERMS OF INITIAL APPOINTEES.—As des5 ignated by the President at the time of appointment,

6 of the members first appointed—

7 (A) 3 shall be appointed for terms of 1 year;

8 (B) 3 shall be appointed for terms of 2

9 years;

10 (C) 3 shall be appointed for terms of 3

11 years; and

12 (D) 3 shall be appointed for terms of 4

13 years;

14 (3) VACANCIES.—Any member appointed to fill a

15 vacancy occurring before the expiration of the term

16 for which the member’s predecessor was appointed

17 shall be appointed only for the remainder of that

18 term. A member may serve after the expiration of that

19 member’s term until a successor has taken office. A

20 vacancy in the Board shall be filled in the manner in

21 which the original appointment was made.

22 (e) CHAIRPERSON.—The Board shall elect a chair23 person from among members of the Board.

24 (f) QUORUM.—A majority of the members of the Board

25 shall constitute a quorum for the transaction of business.
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1 (g) VOTING.—Each member of the Board shall be enti2 tled to 1 vote, which shall be equal to the vote of every other

3 member of the Board.

4 (h) PROHIBITION ON ADDITIONAL PAY.—Members of

5 the Board shall serve without compensation, but shall be

6 reimbursed for travel, subsistence, and other necessary ex7 penses incurred in the performance of their duties as mem8 bers of the Board.

9 SEC. 403. FUNCTIONS.

10 The purpose of this subtitle is to establish the Board

11 as a nonpolitical entity to carry out the following functions:

12 (1) EVALUATION OF DEEP SUBSIDY PRO13 GRAMS.—Measuring the performance and efficiency of

14 all ‘‘deep subsidy’’ programs for housing assistance

15 administered by the Secretary of Housing and Urban

16 Development, including the public housing program

17 under title II and the programs for tenant- and

18 project-based rental assistance under title III and sec19 tion 8 of the United States Housing Act of 1937 (as

20 in effect before the enactment of this Act).

21 (2) ESTABLISHMENT OF LHMA PERFORMANCE

22 BENCHMARKS.—Establishing standards and guide23 lines under section 431 for use by the Secretary in

24 measuring the performance and efficiency of local

25 housing and management authorities and other own-
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1 ers and providers of federally assisted housing in car2 rying out operational and financial functions.

3 (3) ACCREDITATION OF LHMA’S.—Establishing a

4 procedure under section 431(b) for accrediting local

5 housing and management authorities to receive block

6 grants under title I for the operation, maintenance,

7 and production of public housing, ensuring that fi8 nancial and performance audits under such section

9 are conducted annually for each local housing and

10 management authority, and reviewing such audits for

11 purposes of accreditation.

12 (4) CLASSIFICATION OF LHMA’S.—Classifying

13 local housing and management authorities, under to

14 section 434, according to the performance categories

15 under section 431(a)(2).

16 SEC. 404. INITIAL ESTABLISHMENT OF STANDARDS AND

17 PROCEDURES FOR LHMA COMPLIANCE.

18 (a) DEADLINE.—Not later than the expiration of the

19 12-month period beginning upon the completion of the ap20 pointment, under section 402, of the initial members of the

21 Board, the Board shall organize its structure and oper22 ations, establish the standards, guidelines, and procedures

23 under sections 431, and establish any fees under section

24 406. Before issuing such standards, guidelines, and proce-
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1 dures in final form, the Board shall submit a copy to the

2 Congress.

3 (b) PRIORITY OF INITIAL EVALUATIONS.—After orga4 nization of the Board and establishment of standards,

5 guidelines, and procedures under sections 431, the Board

6 shall commence evaluations under section 433(b) for the

7 purpose of accrediting local housing and management au8 thorities and shall give priority to conducting evaluations

9 of local housing and management authorities that are des10 ignated as troubled public housing agencies under section

11 6(j) of the United States Housing Act of 1937 (as in effect

12 before the date of the enactment of this Act) pursuant to

13 section 431(d).

14 SEC. 405. POWERS.

15 (a) HEARINGS.—The Board may, for the purpose of

16 carrying out this subtitle, hold such hearings and sit and

17 act at such times and places as the Board determines appro18 priate.

19 (b) RULES AND REGULATIONS.—The Board may

20 adopt such rules and regulations as may be necessary to

21 establish its procedures and to govern the manner of its op22 erations, organization, and personnel.

23 (c) ASSISTANCE FROM FEDERAL AGENCIES.—

24 (1) INFORMATION.—The Board may secure di25 rectly from any department or agency of the Federal
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1 Government such information as the Board may re2 quire for carrying out its functions, including local

3 housing management plans submitted to the Secretary

4 by local housing and management authorities under

5 title II. Upon request of the Board, any such depart6 ment or agency shall furnish such information. The

7 Board may acquire information directly from local

8 housing and management authorities to the same ex9 tent the Secretary may acquire such information.

10 (2) GENERAL SERVICES ADMINISTRATION.—The

11 Administrator of General Services shall provide to the

12 Board, on a reimbursable basis, such administrative

13 support services as the Board may request.

14 (3) DEPARTMENT OF HOUSING AND URBAN DE15 VELOPMENT.—Upon the request of the chairperson of

16 the Board, the Secretary of Housing and Urban De17 velopment shall, to the extent possible and subject to

18 the discretion of the Secretary, detail any of the per19 sonnel of the Department of Housing and Urban De20 velopment, on a nonreimbursable basis, to assist the

21 Board in carrying out its functions under this sub22 title.

23 (d) MAILS.—The Board may use the United States

24 mails in the same manner and under the same conditions

25 as other Federal agencies.
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1 (e) CONTRACTING.—The Board may, to such extent

2 and in such amounts as are provided in appropriation

3 Acts, enter into contracts with private firms, institutions,

4 and individuals for the purpose of conducting research or

5 surveys necessary to enable the Board to discharge its func6 tions under this subtitle.

7 (f) STAFF.—

8 (1) EXECUTIVE DIRECTOR.—The Board shall ap9 point an executive director of the Board, who shall be

10 compensated at a rate fixed by the Board, but which

11 shall not exceed the rate established for level V of the

12 Executive Schedule under title 5, United States Code.

13 (2) OTHER PERSONNEL.—In addition to the ex14 ecutive director, the Board may appoint and fix the

15 compensation of such personnel as the Board consid16 ers necessary, in accordance with the provisions of

17 title 5, United States Code, governing appointments

18 to the competitive service, and the provisions of chap19 ter 51 and subchapter III of chapter 53 of such title,

20 relating to classification and General Schedule pay

21 rates. Such personnel may include personnel for as22 sessment teams under section 431(b).

23 SEC. 406. FEES.

24 (a) ACCREDITATION FEES.—The Board may establish

25 and charge fees for the accreditation of local housing and
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1 management authorities as the Board considers necessary

2 to cover the costs of the operations of the Board relating

3 to establishing standards, guidelines, and procedures for

4 evaluating the performance of local housing and manage5 ment authorities and performing comprehensive reviews re6 lating to the accreditation of such authorities.

7 (b) FUND.—Any fees collected under this section shall

8 be deposited in an operations fund for the Board, which

9 is hereby established in the Treasury of the United States.

10 Amounts in such fund shall be available, to the extent pro11 vided in appropriation Acts, for the expenses of the Board

12 in carrying out its functions under this subtitle.

13 SEC. 407. REPORTS.

14 The Board shall submit a report to the Congress annu15 ally describing, for the year for which the report is made—

16 (1) any modifications made by the Board to the

17 standards, guidelines, and procedures issued under

18 section 431 by the Board;

19 (2) the results of the assessments, reviews, and

20 evaluations conducted by the Board under subtitle B;

21 (3) the types and extent of assistance, informa22 tion, and products provided by the Board; and

23 (4) any other activities of the Board.
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1 Subtitle B—Accreditation and Over2 sight Standards and Procedures

3 SEC. 431. ESTABLISHMENT OF PERFORMANCE BENCH4 MARKS AND ACCREDITATION PROCEDURES.

5 (a) PERFORMANCE BENCHMARKS.—

6 (1) PERFORMANCE AREAS.—The Housing Foun7 dation and Accreditation Board established under sec8 tion 401 (in this subtitle referred to as the ‘‘Board’’)

9 shall establish standards and guidelines, for use under

10 section 434, to measure the performance of local hous11 ing and management authorities in all aspects relat12 ing to—

13 (A) operational and financial functions;

14 (B) providing, maintaining, and assisting

15 low-income housing—

16 (i) that is safe, clean, and healthy, as

17 required under sections 232 and 328;

18 (ii) in a manner consistent with the

19 comprehensive housing affordability strat20 egy under section 105 of the Cranston-Gon21 zalez National Affordable Housing Act, if

22 appropriate;

23 (iii) that is occupied by eligible fami24 lies; and
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1 (iv) that is affordable to eligible fami2 lies;

3 (C) producing low-income housing and exe4 cuting capital projects, if applicable;

5 (D) administering the provision of housing

6 assistance under title III;

7 (E) accomplishing the goals and plans set

8 forth in the local housing management plan for

9 the authority;

10 (F) promoting responsibility and self-suffi11 ciency among residents of public housing devel12 opments of the authority and assisted families

13 under title III; and

14 (G) complying with the other requirements

15 of the authority under block grant contracts

16 under title II, grant agreements under title III,

17 and the provisions of this Act.

18 (2) PERFORMANCE CATEGORIES.—In establish19 ing standards and guidelines under this section, the

20 Board shall define various levels of performance,

21 which shall include the following levels:

22 (A) EXCEPTIONALLY WELL-MANAGED.—A

23 minimum acceptable level of performance in the

24 areas specified in paragraph (1) for classifica25 tion of a local housing and management author-
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1 ity as exceptionally well-managed, which shall

2 indicate that the authority functions exception3 ally.

4 (B) WELL-MANAGED.—A minimum accept5 able level of performance in the areas specified in

6 paragraph (1) for classification of a local hous7 ing and management authority as well-managed,

8 which shall indicate that the authority functions

9 satisfactorily.

10 (C) AT RISK OF BECOMING TROUBLED.—A

11 minimum acceptable level of performance in the

12 areas specified in paragraph (1) for classifica13 tion of a local housing and management author14 ity as at risk of becoming troubled, which shall

15 indicate that there are elements in the oper16 ations, management, or functioning of the au17 thority that must be addressed before they result

18 in serious and complicated deficiencies.

19 (D) TROUBLED.—A minimum level of per20 formance in the areas specified in paragraph (1)

21 for classification of a local housing and manage22 ment authority as a troubled authority, which

23 shall indicate that the authority functions unsat24 isfactorily with respect to certain areas under
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1 paragraph (1), but such deficiencies are not ir2 reparable.

3 (E) DYSFUNCTIONAL.—A maximum level of

4 performance in the areas specified in paragraph

5 (1) for classification of a local housing and man6 agement authority as dysfunctional, which shall

7 indicate that the authority suffers such defi8 ciencies that the authority should not be allowed

9 to continue to manage low-income housing or ad10 minister housing assistance.

11 (3) ACCREDITATION STANDARD.—In establishing

12 standards and guidelines under this section, the

13 Board shall establish a minimum acceptable level of

14 performance for accrediting a local housing and man15 agement authority for purposes of authorizing the au16 thority to enter into a new block grant contract under

17 title II or a new grant agreement under title III.

18 (b) ACCREDITATION PROCEDURE.—The Accreditation

19 Board shall establish procedures for—

20 (1) reviewing the performance of a local housing

21 and management authority over the term of the expir22 ing accreditation, which review shall be conducted

23 during the 12-month period that ends upon the con24 clusion of the term of the expiring accreditation;
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1 (2) evaluating the capability of a local housing

2 and management authority that proposes to enter

3 into an initial block grant contract under title II or

4 an initial grant agreement under title III; and

5 (3) determining whether the authority complies

6 with the standards and guidelines for accreditation

7 established under subsection (a)(3).

8 The procedures for a review or evaluation under this sub9 section shall provide for the review or evaluation to be con10 ducted by an assessment team established by the Board,

11 which shall review annual financial and performance au12 dits conducted under section 432 and obtain such informa13 tion as the Board may require.

14 (c) IDENTIFICATION OF POTENTIAL PROBLEMS.—The

15 standards and guidelines under subsection (a) and the pro16 cedure under subsection (b) shall be established in a manner

17 designed to identify potential problems in the operations,

18 management, functioning of local housing and management

19 authorities at a time before such problems result in serious

20 and complicated deficiencies.

21 (d) INTERIM APPLICABILITY OF PHMAP.—Notwith22 standing any other provision of this subtitle, during the pe23 riod that begins on the date of the enactment of this Act

24 and ends upon the date of the effectiveness of final regula25 tions establishing the standards, guidelines, and procedures
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1 required under this section and section 432, the Secretary

2 shall assess the management performance of local housing

3 and management authorities in the same manner provided

4 for public housing agencies pursuant to section 6(j) of the

5 United States Housing Act of 1937 (as in effect imme6 diately before the enactment of this Act) and may take ac7 tions with respect to local housing and management au8 thorities that are authorized under such section with respect

9 to public housing agencies.

10 SEC. 432. ANNUAL FINANCIAL AND PERFORMANCE AUDIT.

11 (a) REQUIREMENT.—The Secretary shall require each

12 local housing and management authority that receives

13 grant amounts under this Act in a fiscal year to have a

14 financial and performance audit of the authority conducted

15 for the fiscal year and to submit the results of the audit

16 to the Secretary and the Board. Not later than 60 days be17 fore submitting a financial and performance audit to the

18 Secretary and the Board, the local housing and manage19 ment authority shall submit the audit to any local elected

20 official or officials responsible for appointing the members

21 of the board of directors (or other similar governing body)

22 of the local housing and management authority for review

23 and comment. Any such comments shall be submitted, to24 gether with the audit, to the Secretary and the Board and
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1 the Secretary and the Board shall consider such comments

2 in reviewing the audit.

3 (b) PROCEDURES.— The requirements for financial

4 and performance audits shall—

5 (1) provide for the audit to be conducted by an

6 independent auditor selected by the authority;

7 (2) authorize the auditor to obtain information

8 from a local housing and management authority, to

9 access any books, documents, papers, and records of

10 an authority that are pertinent to this Act and assist11 ance received pursuant to this Act, and to review any

12 reports of an authority to the Secretary; and

13 (3) be designed to identify potential problems in

14 the operations, management, functioning of a local

15 housing and management authority at a time before

16 such problems result in serious and complicated defi17 ciencies.

18 (c) PURPOSE.—Audits under this section shall be de19 signed to—

20 (1) evaluate the financial performance and

21 soundness and management performance of the local

22 housing and management authority board of directors

23 (or other similar governing body) and the authority

24 management officials and staff;
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1 (2) assess the compliance of an authority with

2 all aspects of the standards and guidelines established

3 under section 431(a)(1); and

4 (3) provide information to the Secretary and the

5 Board regarding the financial performance and man6 agement of the authority and to determine whether a

7 review under section 225(d) or 353(c) is required.

8 (d) SINGLE AUDIT ACT COMPLIANCE.—An audit

9 under this section shall be made in a manner so that the

10 audit complies with the requirements for audits under

11 chapter 75 of title 31, United States Code.

12 (e) WITHHOLDING OF AMOUNTS FOR COSTS OF

13 AUDIT.—If the Secretary determines that a local housing

14 and management authority has failed to take the actions

15 required to submit an audit under this section for a fiscal

16 year, the Secretary may—

17 (1) arrange for, and pay the costs of, the audit;

18 and

19 (2) withhold, from the total allocation for any

20 fiscal year otherwise payable to the authority under

21 this Act, amounts sufficient to pay for the reasonable

22 costs of conducting an acceptable audit, including, if

23 appropriate, the reasonable costs of accounting serv24 ices necessary to place the authority’s books and

25 records in condition that permits an audit.
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1 SEC. 433. ACCREDITATION.

2 (a) REVIEW UPON EXPIRATION OF PREVIOUS ACCRED3 ITATION.—The Accreditation Board shall perform a com4 prehensive review of the performance of a local housing and

5 management authority, in accordance with the procedures

6 established under section 431(b), before the expiration of the

7 term for which a previous accreditation was granted under

8 this subtitle.

9 (b) INITIAL EVALUATION.—

10 (1) IN GENERAL.—Before entering into an ini11 tial block grant contract under title II or an initial

12 contract pursuant to section 302 for assistance under

13 title III with any local housing and management au14 thority, the Board shall conduct a comprehensive

15 evaluation of the capabilities of the local housing and

16 management authority.

17 (2) EXCEPTION.—Paragraph (1) shall not apply

18 to an initial block grant contract or grant agreement

19 entered into during the period beginning upon the

20 date of the enactment of this Act and ending upon the

21 date of the effectiveness of final regulations establish22 ing the standards, guidelines, and procedures required

23 under section 431 with any public housing agency

24 that received amounts under the United States Hous25 ing Act of 1937 during fiscal year 1995.
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1 (c) DETERMINATION AND REPORT.—Pursuant to a re2 view or evaluation under this section, the Board shall deter3 mine whether the authority meets the requirements for ac4 creditation under section 431(a)(3), shall accredit the au5 thority if it meets such requirements, and shall submit a

6 report on the results of the review or evaluation and such

7 determination to the Secretary and the authority.

8 (d) ACCREDITATION.—An accreditation under this sec9 tion shall expire at the end the term established by the

10 Board in granting the accreditation, which may not exceed

11 5 years. The Board may qualify an accreditation placing

12 conditions on the accreditation based on the future perform13 ance of the authority.

14 SEC. 434. CLASSIFICATION BY PERFORMANCE CATEGORY.

15 Upon completing the accreditation process under sec16 tion 433 with respect to a local housing and management

17 authority, the Housing Finance and Accreditation Board

18 shall designate the authority according to the performance

19 categories under section 431(a)(2). In determining the clas20 sification of an authority, the Board shall consider the most

21 recent financial and performance audit under section 432

22 of the authority and accreditation reports under section

23 433(c) for the authority.
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1 SEC. 435. PERFORMANCE AGREEMENTS FOR AUTHORITIES

2 AT RISK OF BECOMING TROUBLED.

3 (a) IN GENERAL.—Upon designation of a local hous4 ing and management authority as at risk of becoming trou5 bled under section 431(a)(2)(C), the Secretary shall seek to

6 enter into an agreement with the authority providing for

7 improvement of the elements of the authority that have been

8 identified. An agreement under this section shall contain

9 such terms and conditions as the Secretary determines are

10 appropriate for addressing the elements identified, which

11 may include an on-site, independent assessment of the man12 agement of the authority.

13 (b) POWERS OF SECRETARY.—If the Secretary deter14 mines that such action is necessary to prevent the local

15 housing and management authority from becoming a trou16 bled authority, the Secretary may—

17 (1) solicit competitive proposals from other local

18 housing and management authorities and private

19 housing management agents (which may be selected

20 by existing tenants through administrative procedures

21 established by the Secretary), to prepare for any case

22 in which such agents may be needed for managing

23 all, or part, of the housing administered by the au24 thority; or

25 (2) solicit competitive proposals from other local

26 housing and management authorities and private en-
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1 tities with experience in construction management, to

2 prepare for any case in which such authorities or

3 firms may be needed to oversee implementation of as4 sistance made available for capital improvement for

5 public housing of the authority.

6 SEC. 436. PERFORMANCE AGREEMENTS AND CDBG SANC7 TIONS FOR TROUBLED LHMA’S.

8 (a) IN GENERAL.—Upon designation of a local hous9 ing and management authority as a troubled authority

10 under section 431(a)(2)(D), the Secretary shall seek to enter

11 into an agreement with the authority providing for improv12 ing the management performance of the authority.

13 (b) CONTENTS.—An agreement under this section be14 tween the Secretary and a local housing and management

15 authority shall set forth—

16 (1) targets for improving performance, as meas17 ured by the guidelines and standards established

18 under section 431(a)(1) and other requirements with19 in a specified period of time, which shall include tar20 gets to be met upon the expiration of the 12-month pe21 riod beginning upon entering into the agreement;

22 (2) strategies for meeting such targets;

23 (3) sanctions for failure to implement such strat24 egies; and
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1 (4) to the extent the Secretary deems appro2 priate, a plan for enhancing resident involvement in

3 the management of the local housing and management

4 authority.

5 (c) LOCAL ASSISTANCE IN IMPLEMENTATION.—The

6 Secretary and the local housing and management authority

7 shall, to the maximum extent practicable, seek the assistance

8 of local public and private entities in carrying out an

9 agreement under this section.

10 (d) DEFAULT UNDER PERFORMANCE AGREEMENT.—

11 Upon the expiration of the 12-month period beginning upon

12 entering into an agreement under this section with a local

13 housing and management authority, the Secretary shall re14 view the performance of the authority in relation to the per15 formance targets and strategies under the agreement. If the

16 Secretary determines that the authority has failed to com17 ply with the performance targets established for the expira18 tion of such period, the Secretary shall take the action au19 thorized under section 437(b)(2).

20 (e) CDBG SANCTION AGAINST LOCAL GOVERNMENT

21 CONTRIBUTING TO TROUBLED STATUS OF LHMA.—If the

22 Secretary determines that the actions or inaction of any

23 unit of general local government within which any portion

24 of the jurisdiction of a local housing and management au25 thority is located has substantially contributed to the condi-
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1 tions resulting in the authority being designated under sec2 tion 431(a)(2)(D) as a troubled authority, the Secretary

3 may redirect or withhold, from such unit of general local

4 government any amounts allocated for such unit under sec5 tion 106 of such Act.

6 SEC. 437. OPTION TO DEMAND CONVEYANCE OF TITLE TO

7 OR POSSESSION OF PUBLIC HOUSING.

8 (a) AUTHORITY FOR CONVEYANCE.—A contract under

9 section 201 for block grants under title II (including con10 tracts which amend or supersede contracts previously made

11 (including contracts for contributions)) may provide that

12 upon the occurrence of a substantial default with respect

13 to the covenants or conditions to which the local housing

14 and management authority is subject (as such substantial

15 default shall be defined in such contract) or upon designa16 tion of the authority as dysfunctional pursuant to section

17 431(a)(2)(E), the local housing and management authority

18 shall be obligated, at the option of the Secretary, to—

19 (1) convey title in any case where, in the deter20 mination of the Secretary (which determination shall

21 be final and conclusive), such conveyance of title is

22 necessary to achieve the purposes of this Act; or

23 (2) deliver to the Secretary possession of the de24 velopment, as then constituted, to which such contract

25 relates.
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1 (b) OBLIGATION TO RECONVEY.—Any block grant con2 tract under title II containing the provisions authorized in

3 subsection (a) shall also provide that the Secretary shall

4 be obligated to reconvey or redeliver possession of the devel5 opment, as constituted at the time of reconveyance or rede6 livery, to such local housing and management authority or

7 to its successor (if such local housing and management au8 thority or a successor exists) upon such terms as shall be

9 prescribed in such contract, and as soon as practicable

10 after—

11 (1) the Secretary is satisfied that all defaults

12 with respect to the development have been cured, and

13 that the development will, in order to fulfill the pur14 poses of this Act, thereafter be operated in accordance

15 with the terms of such contract; or

16 (2) the termination of the obligation to make an17 nual block grants to the authority, unless there are

18 any obligations or covenants of the authority to the

19 Secretary which are then in default.

20 Any prior conveyances and reconveyances or deliveries and

21 redeliveries of possession shall not exhaust the right to re22 quire a conveyance or delivery of possession of the develop23 ment to the Secretary pursuant to subsection (a) upon the

24 subsequent occurrence of a substantial default.
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1 (c) CONTINUED GRANTS FOR REPAYMENT OF BONDS

2 AND NOTES UNDER 1937 ACT.—If—

3 (1) a contract for block grants under title II for

4 an authority includes provisions that expressly state

5 that the provisions are included pursuant to this sub6 section, and

7 (2) the portion of the block grant payable for

8 debt service requirements pursuant to the contract has

9 been pledged by the local housing and management

10 authority as security for the payment of the principal

11 and interest on any of its obligations, then—

12 (A) the Secretary shall (notwithstanding

13 any other provisions of this Act), continue to

14 make the block grant payments for the authority

15 so long as any of such obligations remain out16 standing; and

17 (B) the Secretary may covenant in such a

18 contract that in any event such block grant

19 amounts shall in each year be at least equal to

20 an amount which, together with such income or

21 other funds as are actually available from the de22 velopment for the purpose at the time such block

23 grant payments are made, will suffice for the

24 payment of all installments of principal and in25 terest on the obligations for which the amounts
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1 provided for in the contract shall have been

2 pledged as security that fall due within the next

3 succeeding 12 months.

4 In no case shall such block grant amounts be in excess of

5 the maximum sum specified in the contract involved, nor

6 for longer than the remainder of the maximum period fixed

7 by the contract.

8 SEC. 438. REMOVAL OF INEFFECTIVE LHMA’S.

9 (a) CONDITIONS OF REMOVAL.—The actions specified

10 in subsection (b) may be taken only upon—

11 (1) the occurrence of events or conditions that

12 constitute a substantial default by a local housing

13 and management authority with respect to (A) the

14 covenants or conditions to which the local housing

15 and management authority is subject, or (B) an

16 agreement entered into under section 435;

17 (2) designation of the authority as dysfunctional

18 pursuant to section 431(a)(2)(E);

19 (3) in the case only of action under subsection

20 (b)(1), failure of a local housing and management au21 thority to obtain reaccreditation upon the expiration

22 of the term of a previous accreditation granted under

23 this subtitle; or

24 (4) submission to the Secretary of a petition by

25 the residents of the public housing owned or operated
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1 by a local housing and management authority that is

2 designated as troubled or dysfunctional pursuant to

3 section 431(a)(2).

4 (b) REMOVAL ACTIONS.—Notwithstanding any other

5 provision of law or of any block grant contract under title

6 II or any grant agreement under title III, in accordance

7 with subsection (a), the Secretary may—

8 (1) solicit competitive proposals from other local

9 housing and management authorities and private

10 housing management agents (which, in the discretion

11 of the Secretary, may be selected by existing public

12 housing residents through administrative procedures

13 established by the Secretary) and, if appropriate, pro14 vide for such agents to manage all, or part, of the

15 housing administered by the local housing and man16 agement authority or all or part of the other functions

17 of the authority;

18 (2) take possession of the local housing and man19 agement authority, including any developments or

20 functions of the authority under any section of this

21 Act;

22 (3) solicit competitive proposals from other local

23 housing and management authorities and private en24 tities with experience in construction management

25 and, if appropriate, provide for such authorities or
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1 firms to oversee implementation of assistance made

2 available for capital improvements for public housing;

3 (4) require the authority to make other arrange4 ments acceptable to the Secretary and in the best in5 terests of the public housing residents and assisted

6 families under title III for managing all, or part of,

7 the public housing administered by the authority or

8 the functions of the authority; or

9 (5) if the Secretary determines that reasonable

10 opportunities for remedy using the actions under

11 paragraphs (1) through (4) have failed or are not

12 available, petition for the appointment of a receiver

13 for the local housing and management authority to

14 any district court of the United States or to any court

15 of the State in which any portion of the jurisdiction

16 of the local housing and management authority is lo17 cated, that is authorized to appoint a receiver for the

18 purposes and having the powers prescribed in this

19 section.

20 (c) EMERGENCY ASSISTANCE.—The Secretary may

21 make available to receivers and other entities selected or ap22 pointed pursuant to this section such assistance as is fair

23 and reasonable to remedy the substantial deterioration of

24 living conditions in individual public housing developments

25 or other related emergencies that endanger the health, safety
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1 and welfare of public housing residents or assisted families

2 under title III.

3 (d) POWERS OF SECRETARY.—If the Secretary takes

4 possession of an authority, or any developments or func5 tions of an authority, pursuant to subsection (b)(2), the Sec6 retary—

7 (1) may abrogate contracts that substantially

8 impede correction of the substantial default or im9 provement of the classification;

10 (2) may demolish and dispose of assets of the au11 thority in accordance with subtitle E;

12 (3) where determined appropriate by the Sec13 retary, may require the establishment of one or more

14 new local housing and management authorities;

15 (4) may consolidate the authority into other

16 well-managed local housing and management authori17 ties with the consent of such well-managed authori18 ties;

19 (5) shall not be subject to any State or local laws

20 that, in the determination of the receiver, substan21 tially impede correction of the substantial default or

22 improvement of the classification; and

23 (6) shall have such additional authority as a dis24 trict court of the United States has the authority to
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1 confer under like circumstances upon a receiver to

2 achieve the purposes of the receivership.

3 The Secretary may appoint, on a competitive or non4 competitive basis, an individual or entity as an adminis5 trative receiver to assume the Secretary’s responsibility

6 under this paragraph for the administration of a local

7 housing and management authority. The Secretary may

8 delegate to the administrative receiver any or all of the pow9 ers of the Secretary under this subsection. Regardless of any

10 delegation under this subsection, an administrative receiver

11 may not require the establishment of one or more new local

12 housing and management authorities pursuant to para13 graph (3) unless the Secretary first approves such establish14 ment. For purposes of this subsection, the term ‘‘local hous15 ing and management authority’’ includes any developments

16 or functions of a local housing and management authority

17 under any section of this title.

18 (e) RECEIVERSHIP.—

19 (1) REQUIRED APPOINTMENT.—In any proceed20 ing under subsection (b)(5), upon a determination

21 that a substantial default has occurred, and without

22 regard to the availability of alternative remedies, the

23 court shall appoint a receiver to conduct the affairs

24 of the local housing and management authority in a

25 manner consistent with this Act and in accordance
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1 with such further terms and conditions as the court

2 may provide. The receiver appointed may be another

3 local housing and management authority, a private

4 management corporation, the Secretary, or any other

5 appropriate entity. The court shall have power to

6 grant appropriate temporary or preliminary relief

7 pending final disposition of the petition by the Sec8 retary.

9 (2) POWERS OF RECEIVER.—If a receiver is ap10 pointed for a local housing and management author11 ity pursuant to subsection (b)(5), in addition to the

12 powers accorded by the court appointing the receiver,

13 the receiver—

14 (A) may abrogate contracts that substan15 tially impede correction of the substantial default

16 or improvement of the classification;

17 (B) may demolish and dispose of assets of

18 the authority in accordance with subtitle E;

19 (C) where determined appropriate by the

20 Secretary, may require the establishment of one

21 or more new local housing and management au22 thorities, to the extent permitted by State and

23 local law; and

24 (D except as provided in subparagraph (C),

25 shall not be subject to any State or local laws
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1 that, in the determination of the receiver, sub2 stantially impede correction of the substantial

3 default or improvement of the classification.

4 For purposes of this paragraph, the term ‘‘local hous5 ing and management authority’’ includes any devel6 opments or functions of a local housing and manage7 ment authority under any section of this title.

8 (3) TERMINATION.—The appointment of a re9 ceiver pursuant to this subsection may be terminated,

10 upon the petition of any party, when the court deter11 mines that all defaults have been cured or the local

12 housing and management authority will be able to

13 make the same amount of progress in correcting the

14 management of the housing as the receiver.

15 (f) LIABILITY.—If the Secretary takes possession of an

16 authority pursuant to subsection (b)(2) or a receiver is ap17 pointed pursuant to subsection (b)(5) for a local housing

18 and management authority, the Secretary or the receiver

19 shall be deemed to be acting in the capacity of the local

20 housing and management authority (and not in the official

21 capacity as Secretary or other official) and any liability

22 incurred shall be a liability of the local housing and man23 agement authority.
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1 SEC. 439. MANDATORY TAKEOVER OF CHRONICALLY TROU2 BLED PHA’S.

3 (a) REMOVAL OF AGENCY.—Notwithstanding any

4 other provision of this Act, not later than the expiration

5 of the 180-day period beginning on the date of the enact6 ment of this Act, the Secretary shall take one of the follow7 ing actions with respect to each chronically troubled public

8 housing agency:

9 (1) CONTRACTING FOR MANAGEMENT.—Solicit

10 competitive proposals for the management of the

11 agency pursuant to section 437(b)(1) and replace the

12 management of the agency pursuant to selection of

13 such a proposal.

14 (2) TAKEOVER.—Take possession of the agency

15 pursuant to section 437(b)(2) of such Act.

16 (b) DEFINITION.—For purposes of this section, the

17 term ‘‘chronically troubled public housing agency’’ means

18 a public housing agency that, as of the date of the enactment

19 of this Act, is designated under section 6(j)(2) of the United

20 States Housing Act of 1937 (as in effect immediately before

21 the enactment of this Act) as a troubled public housing

22 agency and has been so designated continuously for the 3-

23 year period ending upon such date of enactment; except that

24 such term does not include any agency that owns or oper25 ates less than 1250 public housing dwelling units and that

26 the Secretary determines can, with a reasonable amount of
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1 effort, make such improvements or remedies as may be nec2 essary to remove its designation as troubled within 12

3 months.

4 SEC. 440. TREATMENT OF TROUBLED PHA’S.

5 (a) EFFECT OF TROUBLED STATUS ON CHAS.—The

6 comprehensive housing affordability strategy (or any con7 solidated plan incorporating such strategy) for the first

8 year beginning after the date of the enactment of this Act

9 for the State or unit of general local government in which

10 any troubled public housing agency is located shall not be

11 considered to comply with the requirements under section

12 105 of the Cranston-Gonzalez National Affordable Housing

13 Act unless such plan includes a description of the manner

14 in which the State or unit will assist such troubled agency

15 in improving its operations to remove such designation.

16 (b) DEFINITION.—For purposes of this section, the

17 term ‘‘troubled public housing agency’’ means a public

18 housing agency that—

19 (1) upon the date of the enactment of this Act,

20 is designated under section 6(j)(2) of the United

21 States Housing Act of 1937 (as in effect immediately

22 before the enactment of this Act) as a troubled public

23 housing agency; and
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1 (2) is not a chronically troubled public housing

2 agency, as such term is defined in section 438(b) of

3 this Act.

4 SEC. 441. MAINTENANCE OF AND ACCESS TO RECORDS.

5 (a) KEEPING OF RECORDS.—Each local housing and

6 management authority shall keep such records as may be

7 reasonably necessary to disclose the amount and the disposi8 tion by the authority of the proceeds of assistance received

9 pursuant to this Act and to ensure compliance with the re10 quirements of this Act.

11 (b) ACCESS TO DOCUMENTS.—The Secretary, the In12 spector General for the Department of Housing and Urban

13 Development, and the Comptroller General of the United

14 States shall each have access for the purpose of audit and

15 examination to any books, documents, papers, and records

16 of a local housing and management authority that are per17 tinent to this Act and assistance received pursuant to this

18 Act.

19 SEC. 442. ANNUAL REPORTS REGARDING TROUBLED

20 LHMA’S.

21 The Secretary shall submit a report to the Congress

22 annually, as a part of the report of the Secretary under

23 section 8 of the Department of Housing and Urban Develop24 ment Act, that—
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1 (1) identifies the local housing and management

2 authorities that are designated as troubled or dysfunc3 tional under section 431(a)(2) and the reasons for

4 such designation;

5 (2) identifies the local housing and management

6 authorities that have lost accreditation pursuant to

7 section 432; and

8 (3) describes any actions that have been taken in

9 accordance with sections 433, 434, 435, and 436.

10 SEC. 443. APPLICABILITY TO RESIDENT MANAGEMENT COR11 PORATIONS.

12 The Secretary shall apply the provisions of this sub13 title to resident management corporations in the same man14 ner as applied to local housing and management authori15 ties.

16 SEC. 444. INAPPLICABILITY TO INDIAN HOUSING.

17 The provisions of sections 431, 432, 433, 434, 435, 436,

18 438, and 442 shall not apply to public housing developed

19 or operated pursuant to a contract between the Secretary

20 and an Indian housing authority.

21 TITLE V—REPEALS AND

22 CONFORMING AMENDMENTS

23 SEC. 501. REPEALS.

24 (a) IN GENERAL.—The following provisions of law are

25 hereby repealed:
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1 (1) UNITED STATES HOUSING ACT OF 1937.—The

2 United States Housing Act of 1937 (42 U.S.C. 1437

3 et seq.).

4 (2) ASSISTED HOUSING ALLOCATION.—Section

5 213 of the Housing and Community Development Act

6 of 1974 (42 U.S.C. 1439).

7 (3) PUBLIC HOUSING RENT WAIVERS FOR PO8 LICE.—Section 519 of the Cranston-Gonzalez Na9 tional Affordable Housing Act (42 U.S.C. 1437a–1).

10 (4) OCCUPANCY PREFERENCES AND INCOME MIX

11 FOR NEW CONSTRUCTION AND SUBSTANTIAL REHA12 BILITATION PROJECTS.—Subsection (c) of section 545,

13 and section 555, of the Cranston-Gonzalez National

14 Affordable Housing Act (42 U.S.C. 1437f note).

15 (5) TREATMENT OF CERTIFICATE AND VOUCHER

16 HOLDERS.—Subsection (c) of section 183 of the Hous17 ing and Community Development Act of 1987 (42

18 U.S.C. 1437f note).

19 (6) RETROACTIVE PAYMENT FOR ANNUAL AD20 JUSTMENT FACTORS.—Section 801 of the Department

21 of Housing and Urban Development Reform Act of

22 1989 (42 U.S.C. 1437f note).

23 (7) EXCESSIVE RENT BURDEN DATA.—Subsection

24 (b) of section 550 of the Cranston-Gonzalez National

25 Affordable Housing Act (42 U.S.C. 1437f note).
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1 (8) SECTION 8 DISASTER RELIEF.—Sections 931

2 and 932 of the Cranston-Gonzalez National Affordable

3 Housing Act (42 U.S.C. 1437c note).

4 (9) MOVING TO OPPORTUNITY FOR FAIR HOUS5 ING.—Section 152 of the Housing and Community

6 Development Act of 1992 (42 U.S.C. 1437f note).

7 (10) REPORT REGARDING FAIR HOUSING OBJEC8 TIVES.—Section 153 of the Housing and Community

9 Development Act of 1992 (42 U.S.C. 1437f note).

10 (11) SECTION 8 COMMUNITY INVESTMENT DEM11 ONSTRATION.—Section 6 of the HUD Demonstration

12 Act of 1993 (42 U.S.C. 1437f note).

13 (12) SPECIAL PROJECTS FOR ELDERLY OR

14 HANDICAPPED FAMILIES.—Section 209 of the Housing

15 and Community Development Act of 1974 (42 U.S.C.

16 1438).

17 (13) ACCESS TO PHA BOOKS.—Section 816 of the

18 Housing Act of 1954 (42 U.S.C. 1435).

19 (14) MISCELLANEOUS PROVISIONS.—Subsections

20 (b)(1), (c), and (d) of section 326 of the Housing and

21 Community Development Amendments of 1981 (Pub22 lic Law 97–35, 95 Stat. 406; 42 U.S.C. 1437f note).

23 (15) PAYMENT FOR DEVELOPMENT MANAGERS.—

24 Section 329A of the Housing and Community Devel25 opment Amendments of 1981 (42 U.S.C. 1437j–1).
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1 (16) PURCHASE OF PHA OBLIGATIONS.—Section

2 329E of the Housing and Community Development

3 Amendments of 1981 (12 U.S.C. 2294a).

4 (17) PROCUREMENT OF INSURANCE BY PHA’S.—

5 (A) In the item relating to ‘‘ADMINISTRA6 TIVE PROVISIONS’’ under the heading ‘‘MANAGE7 MENT AND ADMINISTRATION’’ in title II of the

8 Departments of Veterans Affairs and Housing

9 and Urban Development, and Independent Agen10 cies Appropriations Act, 1991, the penultimate

11 undesignated paragraph of such item (Public

12 Law 101–507; 104 Stat. 1369).

13 (B) In the item relating to ‘‘ADMINISTRA14 TIVE PROVISIONS’’ under the heading ‘‘MANAGE15 MENT AND ADMINISTRATION’’ in title II of the

16 Departments of Veterans Affairs and Housing

17 and Urban Development, and Independent Agen18 cies Appropriations Act, 1992, the 19th through

19 23d undesignated paragraphs of such item (Pub20 lic Law 102–139; 105 Stat. 758).

21 (18) PUBLIC HOUSING CHILDHOOD DEVELOP22 MENT.—Section 222 of the Housing and Urban-Rural

23 Recovery Act of 1983 (12 U.S.C. 1701z–6 note).

24 (19) INDIAN HOUSING CHILDHOOD DEVELOP25 MENT.—Section 518 of the Cranston-Gonzalez Na-
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1 tional Affordable Housing Act (12 U.S.C. 1701z–6

2 note).

3 (20) PUBLIC HOUSING COMPREHENSIVE TRANSI4 TION DEMONSTRATION.—Section 126 of the Housing

5 and Community Development Act of 1987 (42 U.S.C.

6 1437f note).

7 (21) PUBLIC HOUSING ONE-STOP PERINATAL

8 SERVICES DEMONSTRATION.—Section 521 of the

9 Cranston-Gonzalez National Affordable Housing Act

10 (42 U.S.C. 1437t note).

11 (22) PUBLIC HOUSING MINCS DEMONSTRA12 TION.—Section 522 of the Cranston-Gonzalez Na13 tional Affordable Housing Act (42 U.S.C. 1437f note).

14 (23) PUBLIC HOUSING ENERGY EFFICIENCY DEM15 ONSTRATION.—Section 523 of the Cranston-Gonzalez

16 National Affordable Housing Act (42 U.S.C. 1437g

17 note).

18 (24) OMAHA HOMEOWNERSHIP DEMONSTRA19 TION.—Section 132 of the Housing and Community

20 Development Act of 1992 (Public Law 102–550; 106

21 stat. 3712).

22 (25) PUBLIC AND ASSISTED HOUSING YOUTH

23 SPORTS PROGRAMS.—Section 520 of the Cranston24 Gonzalez National Affordable Housing Act (42 U.S.C.

25 11903a).
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1 (b) SAVINGS PROVISION.—The repeals made by sub2 section (a) shall not affect any legally binding obligations

3 entered into before the date of the enactment of this Act.

4 Any funds or activities subject to a provision of law re5 pealed by subsection (a) shall continue to be governed by

6 the provision as in effect immediately before such repeal.

7 SEC. 502. CONFORMING AND TECHNICAL PROVISIONS.

8 (a) ALLOCATION OF ELDERLY HOUSING AMOUNTS.—

9 Section 202(l) of the Housing Act of 1959 (12 U.S.C.

10 1701q(l)) is amended by adding at the end the following

11 new paragraph:

12 ‘‘(4) CONSIDERATION IN ALLOCATING ASSIST13 ANCE.—Assistance under this section shall be allo14 cated in a manner that ensures that the awards of the

15 assistance are made for projects of sufficient size to

16 accommodate facilities for supportive services appro17 priate to the needs of frail elderly residents.’’.

18 (b) ELIGIBILITY FOR ASSISTED HOUSING.—

19 (1) GENERAL.—Notwithstanding any other pro20 vision of law, for purposes of determining eligibility

21 for admission to assisted housing, a person shall not

22 be considered to have a disability or a handicap sole23 ly because of the prior or current illegal use of a con24 trolled substance (as defined in section 102 of the
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1 Controlled Substances Act) or solely by reason of the

2 prior or current use of alcohol.

3 (2) DEFINITION.—For purposes of this sub4 section, the term ‘‘assisted housing’’ means housing

5 designed primarily for occupancy by elderly persons

6 or persons with disabilities that is assisted pursuant

7 to this Act, the United States Housing Act of 1937,

8 section 221(d)(3) or 236 of the National Housing Act,

9 section 202 of the Housing Act of 1959, section 101

10 of the Housing and Urban Development Act of 1965,

11 or section 811 of the Cranston-Gonzalez National Af12 fordable Housing Act.

13 (3) CONTINUED OCCUPANCY.—This subsection

14 may not be construed to prohibit the continued occu15 pancy of any person who is a resident in assisted

16 housing on the date of enactment of this Act.

17 (c) AMENDMENT TO HOUSING AND URBAN-RURAL RE18 COVERY ACT OF 1983.—Section 227(d)(2) of the Housing

19 and Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701r–

20 1(d)(2)) is amended by inserting ‘‘the United States Hous21 ing Act of 1996,’’ after ‘‘the United States Housing Act of

22 1937,’’.

23 (d) REVIEW OF DRUG ELIMINATION PROGRAM CON24 TRACTS.—
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1 (1) REQUIREMENT.—Notwithstanding the repeal

2 under section 501(a)(26), the Secretary of Housing

3 and Urban Development shall investigate all security

4 contracts awarded by grantees under the Public and

5 Assisted Housing Drug Elimination Act of 1990 (42

6 U.S.C. 11901 et seq.) that are public housing agencies

7 that own or operate more than 4,500 public housing

8 dwelling units—

9 (A) to determine whether the contractors

10 under such contracts have complied with all laws

11 and regulations regarding prohibition of dis12 crimination in hiring practices;

13 (B) to determine whether such contracts

14 were awarded in accordance with the applicable

15 laws and regulations regarding the award of

16 such contracts;

17 (C) to determine how many such contracts

18 were awarded under emergency contracting pro19 cedures;

20 (D) to evaluate the effectiveness of the con21 tracts; and

22 (E) to provide a full accounting of all ex23 penses under the contracts.

24 (2) REPORT.—Not later than 180 days after the

25 date of the enactment of this Act, the Secretary shall
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1 complete the investigation required under paragraph

2 (1) and submit a report to the Congress regarding the

3 findings under the investigation. With respect to each

4 such contract, the report shall (A) state whether the

5 contract was made and is operating, or was not made

6 or is not operating, in full compliance with applica7 ble laws and regulations, and (B) for each contract

8 that the Secretary determines is in such compliance

9 in a personal certification of such compliance by the

10 Secretary of Housing and Urban Development.

11 (3) ACTIONS.—For each contract that is de12 scribed in the report under paragraph (2) as not

13 made or not operating in full compliance with appli14 cable laws and regulation, the Secretary of Housing

15 and Urban Development shall promptly take any ac16 tions available under law or regulation that are nec17 essary—

18 (A) to bring such contract into compliance;

19 or

20 (B) to terminate the contract.

21 (e) REFERENCES.—Except as provided in section 271

22 and 501(b), any reference in any other Federal law, Execu23 tive order, rule, regulation, or delegation of authority, or

24 any document of or pertaining to—
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1 (1) public housing or housing assisted under the

2 United States Housing Act of 1937 is deemed to refer

3 to public housing assisted under title II of this Act;

4 (2) to assistance under section 8 of the United

5 States Housing Act of 1937 is deemed to refer to as6 sistance under title III of this Act; and

7 (3) to assistance under the United States Hous8 ing Act of 1937 is deemed to refer to assistance under

9 this Act.

10 SEC. 503. AMENDMENTS TO PUBLIC AND ASSISTED HOUS11 ING DRUG ELIMINATION ACT OF 1990.

12 (a) SHORT TITLE, PURPOSES, AND AUTHORITY TO

13 MAKE GRANTS.—Chapter 2 of subtitle C of title V of the

14 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.) is

15 amended by striking the chapter heading and all that fol16 lows through section 5123 and inserting the following:

17 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

18 AGAINST CRIME

19 ‘‘SEC. 5121. SHORT TITLE.

20 ‘‘This chapter may be cited as the ‘Community Part21 nerships Against Crime Act of 1996’.

22 ‘‘SEC. 5122. PURPOSES.

23 ‘‘The purposes of this chapter are to—

24 ‘‘(1) improve the quality of life for the vast ma25 jority of law-abiding public housing residents by re-
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1 ducing the levels of fear, violence, and crime in their

2 communities;

3 ‘‘(2) broaden the scope of the Public and Assisted

4 Housing Drug Elimination Act of 1990 to apply to

5 all types of crime, and not simply crime that is drug6 related; and

7 ‘‘(3) reduce crime and disorder in and around

8 public housing through the expansion of community9 oriented policing activities and problem solving.

10 ‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

11 ‘‘The Secretary of Housing and Urban Development

12 may make grants in accordance with the provisions of this

13 chapter for use in eliminating crime in and around public

14 housing and other federally assisted low-income housing

15 projects to (1) local housing and management authorities,

16 and (2) private, for-profit and nonprofit owners of federally

17 assisted low-income housing.’’.

18 (b) ELIGIBLE ACTIVITIES.—

19 (1) IN GENERAL.—Section 5124(a) of the Anti20 Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is

21 amended—

22 (A) in the matter preceding paragraph (1),

23 by inserting ‘‘and around’’ after ‘‘used in’’;
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1 (B) in paragraph (3), by inserting before

2 the semicolon the following: ‘‘, including fencing,

3 lighting, locking, and surveillance systems’’;

4 (C) in paragraph (4), by striking subpara5 graph (A) and inserting the following new sub6 paragraph:

7 ‘‘(A) to investigate crime; and’’;

8 (D) in paragraph (6)—

9 (i) by striking ‘‘in and around public

10 or other federally assisted low-income hous11 ing projects’’; and

12 (ii) by striking ‘‘and’’ after the semi13 colon; and

14 (E) by striking paragraph (7) and inserting

15 the following new paragraphs:

16 ‘‘(7) providing funding to nonprofit public hous17 ing resident management corporations and resident

18 councils to develop security and crime prevention pro19 grams involving site residents;

20 ‘‘(8) the employment or utilization of one or

21 more individuals, including law enforcement officers,

22 made available by contract or other cooperative ar23 rangement with State or local law enforcement agen24 cies, to engage in community- and problem-oriented

25 policing involving interaction with members of the
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1 community in proactive crime control and prevention

2 activities;

3 ‘‘(9) programs and activities for or involving

4 youth, including training, education, recreation and

5 sports, career planning, and entrepreneurship and

6 employment activities and after school and cultural

7 programs; and

8 ‘‘(10) service programs for residents that address

9 the contributing factors of crime, including programs

10 for job training, education, drug and alcohol treat11 ment, and other appropriate social services.’’.

12 (2) OTHER LHMA-OWNED HOUSING.—Section

13 5124(b) of the Anti-Drug Abuse Act of 1988 (42

14 U.S.C. 11903(b)) is amended—

15 (A) in the matter preceding paragraph

16 (1)—

17 (i) by striking ‘‘drug-related crime in

18 housing owned by public housing agencies’’

19 and inserting ‘‘crime in and around hous20 ing owned by local housing and manage21 ment authorities’’; and

22 (ii) by striking ‘‘paragraphs (1)

23 through (7)’’ and inserting ‘‘paragraphs (1)

24 through (10)’’; and

25 (B) in paragraph (2)—
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1 (i) by striking ‘‘public housing agency’’

2 and inserting ‘‘local housing and manage3 ment authority’’; and

4 (ii) by striking ‘‘drug-related’’ and in5 serting ‘‘criminal’’.

6 (c) GRANT PROCEDURES.—Section 5125 of the Anti7 Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended to

8 read as follows:

9 ‘‘SEC. 5125. GRANT PROCEDURES.

10 ‘‘(a) LHMA’S WITH 250 OR MORE UNITS.—

11 ‘‘(1) GRANTS.—In each fiscal year, the Secretary

12 shall make a grant under this chapter from any

13 amounts available under section 5131(b)(1) for the

14 fiscal year to each of the following local housing and

15 management authorities:

16 ‘‘(A) NEW APPLICANTS.—Each local hous17 ing and management authority that owns or op18 erates 250 or more public housing dwelling units

19 and has—

20 ‘‘(i) submitted an application to the

21 Secretary for a grant for such fiscal year,

22 which includes a 5-year crime deterrence

23 and reduction plan under paragraph (2);

24 and
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1 ‘‘(ii) had such application and plan

2 approved by the Secretary.

3 ‘‘(B) RENEWALS.—Each local housing and

4 management authority that owns or operates 250

5 or more public housing dwelling units and for

6 which—

7 ‘‘(i) a grant was made under this

8 chapter for the preceding Federal fiscal

9 year;

10 ‘‘(ii) the term of the 5-year crime de11 terrence and reduction plan applicable to

12 such grant includes the fiscal year for which

13 the grant under this subsection is to be

14 made; and

15 ‘‘(iii) the Secretary has determined,

16 pursuant to a performance review under

17 paragraph (4), that during the preceding

18 fiscal year the agency has substantially ful19 filled the requirements under subparagraphs

20 (A) and (B) of paragraph (4).

21 ‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC22 TION PLAN.—Each application for a grant under this

23 subsection shall contain a 5-year crime deterrence

24 and reduction plan. The plan shall describe, for the
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1 local housing and management authority submitting

2 the plan—

3 ‘‘(A) the nature of the crime problem in

4 public housing owned or operated by the local

5 housing and management authority;

6 ‘‘(B) the building or buildings of the local

7 housing and management authority affected by

8 the crime problem;

9 ‘‘(C) the impact of the crime problem on

10 residents of such building or buildings; and

11 ‘‘(D) the actions to be taken during the term

12 of the plan to reduce and deter such crime, which

13 shall include actions involving residents, law en14 forcement, and service providers.

15 The term of a plan shall be the period consisting of

16 5 consecutive fiscal years, which begins with the first

17 fiscal year for which funding under this chapter is

18 provided to carry out the plan.

19 ‘‘(3) AMOUNT.—In any fiscal year, the amount

20 of the grant for a local housing and management au21 thority receiving a grant pursuant to paragraph (1)

22 shall be the amount that bears the same ratio to the

23 total amount made available under section 5131(b)(1)

24 as the total number of public dwelling units owned or

25 operated by such authority bears to the total number
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1 of dwelling units owned or operated by all local hous2 ing and management authorities that own or operate

3 250 or more public housing dwelling units that are

4 approved for such fiscal year.

5 ‘‘(4) PERFORMANCE REVIEW.—For each fiscal

6 year, the Secretary shall conduct a performance re7 view of the activities carried out by each local housing

8 and management authority receiving a grant pursu9 ant to this subsection to determine whether the agen10 cy—

11 ‘‘(A) has carried out such activities in a

12 timely manner and in accordance with its 5-

13 year crime deterrence and reduction plan; and

14 ‘‘(B) has a continuing capacity to carry out

15 such plan in a timely manner.

16 ‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec17 retary shall establish such deadlines and requirements

18 for submission of applications under this subsection.

19 ‘‘(6) REVIEW AND DETERMINATION.—The Sec20 retary shall review each application submitted under

21 this subsection upon submission and shall approve the

22 application unless the application and the 5-year

23 crime deterrence and reduction plan are inconsistent

24 with the purposes of this chapter or any requirements

25 established by the Secretary or the information in the
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1 application or plan is not substantially complete.

2 Upon approving or determining not to approve an

3 application and plan submitted under this subsection,

4 the Secretary shall notify the local housing and man5 agement authority submitting the application and

6 plan of such approval or disapproval.

7 ‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the

8 Secretary notifies an authority that the application

9 and plan of the authority is not approved, not later

10 than the expiration of the 15-day period beginning

11 upon such notice of disapproval, the Secretary shall

12 also notify the authority, in writing, of the reasons

13 for the disapproval, the actions that the authority

14 could take to comply with the criteria for approval,

15 and the deadlines for such actions.

16 ‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—If

17 the Secretary fails to notify an authority of approval

18 or disapproval of an application and plan submitted

19 under this subsection before the expiration of the 60-

20 day period beginning upon the submission of the plan

21 or fails to provide notice under paragraph (7) within

22 the 15-day period under such paragraph to an au23 thority whose application has been disapproved, the

24 application and plan shall be considered to have been

25 approved for purposes of this section.
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1 ‘‘(b) LHMA’S WITH FEWER THAN 250 UNITS AND

2 OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS3 ING.—

4 ‘‘(1) APPLICATIONS AND PLANS.—To be eligible

5 to receive a grant under this chapter, a local housing

6 and management authority that owns or operates

7 fewer than 250 public housing dwelling units or an

8 owner of federally assisted low-income housing shall

9 submit an application to the Secretary at such time,

10 in such manner, and accompanied by such additional

11 information as the Secretary may require. The appli12 cation shall include a plan for addressing the problem

13 of crime in and around the housing for which the ap14 plication is submitted, describing in detail activities

15 to be conducted during the fiscal year for which the

16 grant is requested.

17 ‘‘(2) GRANTS FOR LHMA’S WITH FEWER THAN 250

18 UNITS.—In each fiscal year the Secretary may, to the

19 extent amounts are available under section

20 5131(b)(2), make grants under this chapter to local

21 housing and management authorities that own or op22 erate fewer than 250 public housing dwelling units

23 and have submitted applications under paragraph (1)

24 that the Secretary has approved pursuant to the cri25 teria under paragraph (4).
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1 ‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW-IN2 COME HOUSING.—In each fiscal year the Secretary

3 may, to the extent amounts are available under sec4 tion 5131(b)(3), make grants under this chapter to

5 owners of federally assisted low-income housing that

6 have submitted applications under paragraph (1)

7 that the Secretary has approved pursuant to the cri8 teria under paragraphs (4) and (5).

9 ‘‘(4) CRITERIA FOR APPROVAL OF APPLICA10 TIONS.—The Secretary shall determine whether to ap11 prove each application under this subsection on the

12 basis of—

13 ‘‘(A) the extent of the crime problem in and

14 around the housing for which the application is

15 made;

16 ‘‘(B) the quality of the plan to address the

17 crime problem in the housing for which the ap18 plication is made;

19 ‘‘(C) the capability of the applicant to carry

20 out the plan; and

21 ‘‘(D) the extent to which the tenants of the

22 housing, the local government, local community23 based nonprofit organizations, local tenant orga24 nizations representing residents of neighboring

25 projects that are owned or assisted by the Sec-
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1 retary, and the local community support and

2 participate in the design and implementation of

3 the activities proposed to be funded under the

4 application.

5 In each fiscal year, the Secretary may give preference

6 to applications under this subsection for housing

7 made by applicants who received a grant for such

8 housing for the preceding fiscal year under this sub9 section or under the provisions of this chapter as in

10 effect immediately before the date of the enactment of

11 the United States Housing Act of 1996.

12 ‘‘(5) ADDITIONAL CRITERIA FOR FEDERALLY AS13 SISTED LOW-INCOME HOUSING.—In addition to the

14 selection criteria under paragraph (4), the Secretary

15 may establish other criteria for evaluating applica16 tions submitted by owners of federally assisted low-in17 come housing, except that such additional criteria

18 shall be designed only to reflect—

19 ‘‘(A) relevant differences between the finan20 cial resources and other characteristics of local

21 housing and management authorities and owners

22 of federally assisted low-income housing; or

23 ‘‘(B) relevant differences between the prob24 lem of crime in public housing administered by
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1 such authorities and the problem of crime in fed2 erally assisted low-income housing.’’.

3 (d) DEFINITIONS.—Section 5126 of the Anti-Drug

4 Abuse Act of 1988 (42 U.S.C. 11905) is amended—

5 (1) by striking paragraphs (1) and (2);

6 (2) in paragraph (4)(A), by striking ‘‘section’’

7 before ‘‘221(d)(4)’’;

8 (3) by redesignating paragraphs (3) and (4) (as

9 so amended) as paragraphs (1) and (2), respectively;

10 and

11 (4) by adding at the end the following new para12 graph:

13 ‘‘(3) LOCAL HOUSING AND MANAGEMENT AU14 THORITY.—The term ‘local housing and management

15 authority’ has the meaning given the term in title I

16 of the United States Housing Act of 1996.’’.

17 (e) IMPLEMENTATION.—Section 5127 of the Anti-Drug

18 Abuse Act of 1988 (42 U.S.C. 11906) is amended by striking

19 ‘‘Cranston-Gonzalez National Affordable Housing Act’’ and

20 inserting ‘‘United States Housing Act of 1996’’.

21 (f) REPORTS.—Section 5128 of the Anti-Drug Abuse

22 Act of 1988 (42 U.S.C. 11907) is amended—

23 (1) by striking ‘‘drug-related crime in’’ and in24 serting ‘‘crime in and around’’; and
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1 (2) by striking ‘‘described in section 5125(a)’’

2 and inserting ‘‘for the grantee submitted under sub3 section (a) or (b) of section 5125, as applicable’’.

4 (g) FUNDING AND PROGRAM SUNSET.—Chapter 2 of

5 subtitle C of title V of the Anti-Drug Abuse Act of 1988

6 is amended by striking section 5130 (42 U.S.C. 11909) and

7 inserting the following new sections:

8 ‘‘SEC. 5130. FUNDING.

9 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated to carry out this chapter

11 such sums as may be necessary for fiscal year 1996.

12 ‘‘(b) ALLOCATION.—Of any amounts available, or that

13 the Secretary is authorized to use, to carry out this chapter

14 in any fiscal year—

15 ‘‘(1) 85 percent shall be available only for assist16 ance pursuant to section 5125(a) to local housing and

17 management authorities that own or operate 250 or

18 more public housing dwelling units;

19 ‘‘(2) 10 percent shall be available only for assist20 ance pursuant to section 5125(b)(2) to local housing

21 and management authorities that own or operate

22 fewer than 250 public housing dwelling units; and

23 ‘‘(3) 5 percent shall be available only for assist24 ance to federally assisted low-income housing pursu25 ant to section 5125(b)(3).
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1 ‘‘SEC. 5131. PROGRAM TERMINATION.

2 ‘‘The program under this chapter shall terminate at

3 the end of September 30, 1996. No grants may be made

4 under the program after such date.’’.

5 (h) CONFORMING AMENDMENTS.—The table of contents

6 in section 5001 of the Anti-Drug Abuse Act of 1988 (Public

7 Law 100–690; 102 Stat. 4295) is amended—

8 (1) by striking the item relating to the heading

9 for chapter 2 of subtitle C of title V and inserting the

10 following:

‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;

11 (2) by striking the item relating to section 5122

12 and inserting the following new item:

‘‘Sec. 5122. Purposes.’’;

13 (3) by striking the item relating to section 5125

14 and inserting the following new item:

‘‘Sec. 5125. Grant procedures.’’;

15 and

16 (4) by striking the item relating to section 5130

17 and inserting the following new items:

‘‘Sec. 5130. Funding.

‘‘Sec. 5131. Program termination.’’.

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