I 

109TH CONGRESS 

2D SESSION H. R. 5233 

To make funding for the housing choice voucher program of the Department 

of Housing and Urban Development more reliable and predictable at 

the local level, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 27, 2006 

Ms. KILPATRICK of Michigan introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To make funding for the housing choice voucher program 

of the Department of Housing and Urban Development 

more reliable and predictable at the local level, 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. 

4 This Act may be cited as the ‘‘Housing Choice Vouch5 er Funding Fairness Act of 2006’’. 


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1 SEC. 2. FUNDING ALLOCATION. 

2 Section 8 of the United States Housing Act of 1937 

3 (42 U.S.C. 1437f) is amended by adding at the end the 

4 following new subsections: 

5 ‘‘(ff) TENANT-BASED CONTRACT RENEWALS.— 

6 ‘‘(1) ALLOCATION DETERMINATION.—Notwith7 standing any other provision of law, for each cal8 endar year funding cycle, the Secretary shall allocate 

9 amounts made available for such funding cycle for 

10 renewal of expiring annual contributions contracts 

11 for tenant-based rental assistance for each public 

12 housing agency (other than an agency with a special 

13 funding agreement under the Moving To Work dem14 onstration program) based on the most recent leas15 ing and cost data for such funding cycle, as adjusted 

16 to reflect likely reasonable future costs— 

17 ‘‘(A) by applying local and regional annual 

18 adjustment factors, as established for such cal19 endar year by the Secretary using the most re20 cent data available; and 

21 ‘‘(B) by applying such additional adjust22 ments to the most recent leasing and cost data 

23 for such funding cycle, to compensate for 

24 changes in the number of vouchers under lease 

25 or voucher costs, as the Secretary may approve 

26 for a public housing agency, pursuant to appliVerDate Aug 31 2005 22:29 Apr 30, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5233.IH H5233

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1 cation by the agency and in accordance with 

2 paragraph (3). 

3 ‘‘(2) MOST RECENT LEASING AND COST

4 DATA.—For purposes of this subsection, the term 

5 ‘most recent leasing and cost data’ means, for any 

6 calendar year funding cycle, leasing and per-voucher 

7 cost data for the most recent 12-month period for 

8 which such verified data is available as of the time 

9 of the allocation determination for such funding 

10 cycle, except that such data shall not include data 

11 with respect to any units leased in excess of the 

12 agency’s authorized unit months. The Secretary 

13 shall collect new leasing and per-voucher cost data 

14 for use under this paragraph for each calendar year 

15 funding cycle, which shall be verified data obtained 

16 from the Voucher Management System. 

17 ‘‘(3) ADJUSTMENTS.— 

18 ‘‘(A) AUTHORITY.—Application and ap19 proval of additional adjustments referred to in 

20 paragraph (1)(B) for a calendar year shall be 

21 in accordance with such limitations as the Sec22 retary shall provide, which shall include the use 

23 of objective and fair approval criteria estab24 lished by the Secretary that provide that— 


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1 ‘‘(i) adjustment to the number of 

2 vouchers under lease shall be approved if a 

3 public housing agency demonstrates need 

4 for renewal of previously issued tenant pro5 tection vouchers or of other authorized 

6 vouchers to comply with court orders or to 

7 meet previous commitments to owners for 

8 project-based vouchers in projects ready 

9 for occupancy in such calendar year; and 

10 ‘‘(ii) adjustment of voucher costs shall 

11 be approved if an agency demonstrates— 

12 ‘‘(I) rent increases; 

13 ‘‘(II) utility rate changes; 

14 ‘‘(III) known changes in subsidy 

15 costs due to enhanced vouchers under 

16 subsection (t), portability under sub17 section (r), increased average unit 

18 size, or approval of higher subsidy 

19 payments for people with disabilities 

20 due to reasonable accommodation; 

21 ‘‘(IV) change in average tenant 

22 income, including adjustments needed 

23 for areas with seasonal employment if 

24 income variations are not adequately 


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1 reflected in the period of data used by 

2 the Secretary; or 

3 ‘‘(V) increase in number of fami4 lies participating in the Family Self5 Sufficiency program under section 23 

6 who are building escrow savings due 

7 to increased earnings. 

8 ‘‘(B) DENIAL OF CERTAIN ADJUST9 MENTS.—Notwithstanding subparagraph 

10 (A)(ii), the Secretary may deny an adjustment 

11 referred to in subclause (I), (II), or (III) of 

12 subparagraph (A)(ii) with respect to a public 

13 housing agency if the agency is not complying 

14 with subsection (o)(10)(A) (regarding rent rea15 sonableness). 

16 ‘‘(C) AMOUNT OF ADJUSTMENTS.—The ag17 gregate amount of such additional adjustments 

18 referred to in paragraph (1)(B) for all public 

19 housing agencies for a calendar year funding 

20 cycle shall not exceed 2 percent of the total 

21 amount provided for such calendar year for re22 newal of expiring annual contributions contracts 

23 for tenant-based rental assistance. In any year 

24 in which such total amount provided for such 

25 renewals is less than the amount needed to proVerDate Aug 31 2005 22:29 Apr 30, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5233.IH H5233

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1 vide each public housing agency with the full 

2 adjustment amount determined for the agency 

3 under this paragraph, each agency for which 

4 such an adjustment is approved shall receive 

5 the same percentage of the total amount ap6 proved for that agency. 

7 ‘‘(4) PRORATION.—To the extent necessary to 

8 stay within the amount made available for a cal9 endar year for renewal of expiring annual contribu10 tions contracts for tenant-based rental assistance, 

11 the Secretary shall prorate each public housing 

12 agency’s allocation otherwise established pursuant to 

13 this subsection for such year, except that such pro14 ration shall not apply to the renewal of enhanced 

15 vouchers under any provision of law authorizing 

16 such assistance under section 8(t) of the Act. 

17 ‘‘(gg) AGENCY RESERVES FOR HOUSING CHOICE

18 VOUCHERS.— 

19 ‘‘(1) AUTHORITY.—Each public housing agency 

20 may maintain a reserve of amounts for tenant-based 

21 assistance in an amount not to exceed four percent 

22 of the amount provided to the agency under its an23 nual contributions contract in effect at such time. 

24 ‘‘(2) ANNUAL REPLENISHMENT.—To the extent 

25 that amounts are expressly made available for use 


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1 under this subsection, at the beginning of the fund2 ing cycle for each calendar year, the Secretary shall 

3 provide to the reserves of each public housing agency 

4 an amount sufficient so that the aggregate amount 

5 of such reserves are equal to two percent of the 

6 amount provided to the agency under its annual con7 tributions contract for such calendar year. 

8 ‘‘(3) PROHIBITION OF RECAPTURE.—The Sec9 retary may not recapture any reserve amounts main10 tained by a public housing agency pursuant to this 

11 subsection that do not exceed the four percent limi12 tation referred to in paragraph (1). 

13 ‘‘(4) USE.—Amounts in the reserve of a public 

14 housing agency under this subsection shall be avail15 able to the agency for use for unmet needs for ten16 ant-based rental assistance and to support additional 

17 vouchers. 

18 ‘‘(5) USE OF RECAPTURED RESERVE

19 AMOUNTS.—Any reserve amounts in excess of the 

20 four percent limitation referred to in paragraph (1) 

21 that are recaptured by the Secretary shall be avail22 able to the Secretary only for tenant-based contract 

23 renewals under subsection (ff) and for replenishment 

24 of reserves pursuant to paragraph (2) of this sub25 section. 


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1 ‘‘(hh) BUDGET INFORMATION.—The Secretary shall 

2 provide to the Congress, and make publicly available, the 

3 following information: 

4 ‘‘(1) BUDGET INFORMATION.—In the annual 

5 budget justifications of the Department of Housing 

6 and Urban Development, the Secretary shall include 

7 information identifying, with respect to the upcom8 ing calendar year funding cycle for which such jus9 tifications are made— 

10 ‘‘(A) the number and percentage of author11 ized vouchers leased in the most recent 12- 

12 month period for which data is available and 

13 their average cost; 

14 ‘‘(B) the administrative fees earned by 

15 public housing agencies in such most recent 12- 

16 month period; 

17 ‘‘(C) the funding allocated in such most re18 cent 12-month period to public housing agen19 cies with special voucher funding agreements 

20 under the Moving to Work demonstration pro21 gram; 

22 ‘‘(D) the best estimate available for such 

23 upcoming calendar year of the likely applicable 

24 weighted average annual adjustment factor 

25 under subsection (ff)(1)(A); and 


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1 ‘‘(E) for such upcoming calendar year, an 

2 estimate of adjustments required under sub3 section (ff)(1)(B) and the number of vouchers 

4 that will be eligible for renewal funding after 

5 the adjustments required by subsection 

6 (ff)(3)(A)(i). 

7 ‘‘(2) UPDATED INFORMATION.—Not later than 

8 April 30 and August 31 of each year, the Secretary 

9 shall provide updated leasing and cost data and the 

10 final weighted average annual adjustment factor 

11 under subsection (ff)(1)(A) that will be applicable in 

12 the subsequent calendar year. In each year, the Sec13 retary shall provide revised updates, as appropriate, 

14 on a timely basis before the enactment of the annual 

15 appropriations Act for the Department of Housing 

16 and Urban Development. 

17 ‘‘(3) ANNUAL REPORT.—The Secretary shall 

18 submit a report annually on the extent to which pub19 lic housing agencies are providing the appropriate 

20 amount of subsidy for each family assisted with ten21 ant-based rental assistance, based on tenant incomes 

22 and reasonable rents in the community and existing 

23 policies of the Secretary. Each such report shall in24 clude data from monitoring by the Quality Assur25 ance Division of the Department and shall compare 


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1 current rates of correct subsidy payments to such 

2 rates for the preceding year. 

3 ‘‘(ii) MAXIMIZED LEASING.— 

4 ‘‘(1) IN GENERAL.—In each year, a public 

5 housing agency may use amounts provided to the 

6 agency for tenant-based rental assistance for such 

7 year to provide assistance on behalf of as many fam8 ilies as the agency determines is possible, notwith9 standing the number of vouchers authorized for the 

10 agency for such year for purposes of allocation of 

11 amounts. 

12 ‘‘(2) PROHIBITION ON CONSIDERATION OF

13 OVERLEASING DATA.— In determining the allocation 

14 baseline for vouchers or the authorized level of 

15 vouchers for any public housing agency for any year, 

16 the Secretary may not take into consideration the 

17 extent to which the number of families assisted in 

18 the preceding year by the agency exceeded such au19 thorized level. 

20 ‘‘(3) PROHIBITION OF LIMITATION ON OVER21 LEASING.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 subparagraph (B) and notwithstanding any 

24 other provision of law, the Secretary may not 


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1 establish, implement, carry out, or enforce any 

2 limitation on the number of— 

3 ‘‘(i) families that may be assisted by 

4 a public housing agency with amounts pro5 vided to the agency for tenant-based rental 

6 assistance; 

7 ‘‘(ii) vouchers that an agency may 

8 fund using such amounts; or 

9 ‘‘(iii) units or unit-months that an 

10 agency may have under lease using such 

11 amounts 

12 ‘‘(B) EXCEPTION.—If the Secretary deter13 mines that a public housing agency has engaged 

14 in financial mismangement involving leasing in 

15 excess of the agency’s authorized level of vouch16 ers, the prohibition under subparagraph (A) 

17 shall not apply to such agency. 

18 ‘‘(jj) AUTHORIZATION OF APPROPRIATIONS FOR

19 TENANT-BASED ASSISTANCE.—There are authorized to 

20 be appropriated in each fiscal year such sums as may be 

21 necessary for tenant-based rental assistance for— 

22 ‘‘(1) renewal of all expiring annual contribu23 tions contracts for such assistance in accordance 

24 with subsection (ff) in the amount necessary to 


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1 avoid proration under paragraph (3) of such sub2 section; and 

3 ‘‘(2) restoring and replenishing all public hous4 ing agency’s reserves under subsection (gg) in the 

5 amount required under paragraph (2) of such sub6 section for such year.’’. 

Æ 


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