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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5443 Introduced in House (IH)]

109th CONGRESS
  2d Session
                                H. R. 5443

  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2006

 Mr. Ney (for himself, Ms. Waters, Mr. Frank of Massachusetts, and Mr. 
    Shays) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Section 8 Voucher Reform Act of 
2006''.

SEC. 2. INSPECTION OF DWELLING UNITS.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
            (1) in subparagraph (A), by inserting ``subparagraph (D) of 
        this paragraph and'' before ``paragraph (11)'';
            (2) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively;
            (3) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Exceptions to initial inspection requirement 
                prior to occupancy.--
                            ``(i) Recent inspection under housing 
                        choice voucher program.--In the case of any 
                        dwelling unit that, within the 30-day period 
                        ending upon initial occupancy by a family 
                        assisted under this subsection, was occupied by 
                        another family so assisted, an inspection 
                        pursuant to subparagraph (A) shall not be 
                        required if such unit was inspected during the 
                        12-month period ending upon such initial 
                        occupancy and was determined to comply with the 
                        housing quality standards under subparagraph 
                        (B).
                            ``(ii) Recent inspection under other 
                        programs.--In the case of any dwelling unit 
                        that, during the 12-month period ending upon 
                        such initial occupancy, was inspected pursuant 
                        to requirements under a Federal, State, or 
                        local housing assistance program (including the 
                        HOME investment partnerships program under 
                        title II of the Cranston-Gonzalez National 
                        Affordable Housing Act (42 U.S.C. 12721 et 
                        seq.)), an inspection pursuant to subparagraph 
                        (A) shall not be required if--
                                    ``(I) pursuant to such inspection, 
                                the dwelling unit was determined to 
                                meet the standards or requirements 
                                regarding housing quality or safety 
                                applicable to units assisted under such 
                                program; and
                                    ``(II) the public housing agency 
                                certifies to the Secretary that such 
                                standards or requirements provide the 
                                same protection to occupants of 
                                dwelling units meeting such standards 
                                or requirements as, or greater 
                                protection than, the housing quality 
                                standards under subparagraph (B).
                            ``(iii) Correction of non-life threatening 
                        conditions.--In the case of any dwelling unit 
                        that is determined, pursuant to an inspection 
                        under subparagraph (A), not to meet the housing 
                        quality standards under subparagraph (B), 
                        assistance payments may be made for the unit 
                        notwithstanding subparagraph (C) if failure to 
                        meet such standards is a result only of non-
                        life threatening conditions. A public housing 
                        agency making assistance payments pursuant to 
                        this clause for a dwelling unit shall, upon the 
                        expiration of the 30-day period beginning upon 
                        commencement of the period for which such 
                        payments are made, suspend any assistance 
                        payments for the unit if any deficiency 
                        resulting in noncompliance with the housing 
                        quality standards has not been corrected by 
                        such time, and may not resume such payments 
                        until each such deficiency has been 
                        corrected.''; and
            (4) in subparagraph (E), as so redesignated by paragraph 
        (2) of this section--
                    (A) by striking ``Annual inspections'' and 
                inserting ``Biennial inspections'';
                    (B) by striking ``shall make an annual inspection 
                of each assisted dwelling unit during the term of the 
                housing assistance payments contract for the unit'' and 
                inserting ``shall, for each assisted dwelling unit, 
                make biennial inspections during the term of the 
                housing assistance payments contract for the unit''; 
                and
                    (C) by inserting after the period at the end of the 
                first sentence the following: ``In the case of a 
                dwelling unit described in clause (i) or (ii) of 
                subparagraph (D), the first such annual inspection 
                shall take place during the 2-year period beginning 
                upon the most recent inspection conducted with respect 
                to the occupancy of the unit by the family previously 
                residing in the unit.''.

SEC. 3. RENT REFORM AND INCOME REVIEWS.

    (a) Rent for Public Housing and Section 8 Programs.--Section 3 of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by inserting ``Low-income occupancy 
                        requirement and rental payments.--'' after 
                        ``(1)'';
                            (ii) by striking the second sentence;
                            (iii) in subparagraph (A), by inserting 
                        ``or'' after the semicolon
                            (iv) by striking subparagraph (B); and
                            (v) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(6) Reviews of family income.--
                    ``(A) Frequency.--Reviews of family income for 
                purposes of this section shall be made--
                            ``(i) in the case of all families, upon the 
                        initial provision of housing assistance for the 
                        family;
                            ``(ii) annually thereafter, except as 
                        provided in subparagraph (B)(i);
                            ``(iii) upon the request of the family, at 
                        any time the annual income of the family 
                        decreases by $1,500 or more; and
                            ``(iv) at any time the annual income of the 
                        family increases by $1,500 or more, except that 
                        any increase in the earned income of a family 
                        shall not be considered for purposes of this 
                        clause.
                    ``(B) Fixed-income families.--
                            ``(i) Self certification and 3-year 
                        review.--In the case of any family described in 
                        clause (ii), after the initial review of the 
                        family's income pursuant to subparagraph 
                        (A)(i), the public housing agency shall not be 
                        required to conduct a review of the family's 
                        income pursuant to subparagraph (A)(ii) for any 
                        year for which such family certifies, in 
                        accordance with such requirements as the 
                        Secretary shall establish, that the income of 
                        the family meets the requirements of clause 
                        (ii) of this subparagraph, except that the 
                        public housing agency shall conduct a review of 
                        each such family's income not less than once 
                        every 3 years.
                            ``(ii) Eligible families.--A family 
                        described in this clause is a family who has an 
                        income, as of the most recent review pursuant 
                        to subparagraph (A) or clause (i) of this 
                        subparagraph, of which 90 percent or more 
                        consists of fixed income, as such term is 
                        defined in clause (ii).
                            ``(iii) Fixed income.--For purposes of this 
                        subparagraph, the term `fixed income' includes 
                        income from--
                                    ``(I) the supplemental security 
                                income program under title XVI of the 
                                Social Security Act, including 
                                supplementary payments pursuant to an 
                                agreement for Federal administration 
                                under section 1616(a) of the Social 
                                Security Act and payments pursuant to 
                                an agreement entered into under section 
                                212(b) of Public Law 93-66;
                                    ``(II) Social Security payments;
                                    ``(III) Federal, State, local and 
                                private pension plans; and
                                    ``(IV) other periodic payments 
                                received from annuities, insurance 
                                policies, retirement funds, disability 
                                or death benefits, and other similar 
                                types of periodic receipts.
                    ``(C)  in general.--Reviews of family income for 
                purposes of this section shall be subject to the 
                provisions of section 904 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988.
            ``(7) Calculation of income.--
                    ``(A) Use of prior year's income.--Except as 
                otherwise provided in this paragraph, in determining 
                the income of a family for a year, a public housing 
                agency may use the income of the family as determined 
                by the agency for the prior year, taking into 
                consideration any redetermination of income during such 
                prior year pursuant to clause (iii) or (iv) of 
                paragraph (6)(A).
                    ``(B) Earned income.--For purposes of this section, 
                the earned income of a family for a year shall be the 
                amount of earned income of the family in the prior year 
                minus an amount equal to 10 percent of such prior 
                year's earned income, except that the income of a 
                family for purposes of section 16 (relating to 
                eligibility for assisted housing and income mix) shall 
                be determined without regard to any reduction under 
                this subparagraph.
                    ``(C) Inflationary adjustment for fixed income 
                families.--If, for any year, a public housing agency 
                determines the income for any family described in 
                paragraph (6)(ii), or the amount of fixed income of any 
                other family, based on the prior year's income or fixed 
                income, respectively, pursuant to subparagraph (A), 
                such prior year's income or fixed income, respectively, 
                shall be adjusted by applying an inflationary factor as 
                the Secretary shall, by regulation, establish.
                    ``(D) Other income.--If, for any year, a public 
                housing agency determines the income for any family 
                based on the prior year's income, with respect to prior 
                year calculations of types of income not subject to 
                subparagraph (B), a public housing agency may make 
                other adjustments as it considers appropriate to 
                reflect current income.
                    ``(E) Safe harbor.--A public housing agency may, to 
                the extent such information is available to the public 
                housing agency, determine the family's income for 
                purposes of this section based on timely income 
                determinations made for purposes of other means-tested 
                Federal public assistance programs (including the 
                program for block grants to States for temporary 
                assistance for needy families under part A of title IV 
                of the Social Security Act, a program for medicaid 
                assistance under a State plan approved under title XIX 
                of the Social Security Act, and the food stamp program 
                as defined in section 3(h) of the Food Stamp Act of 
                1977).
                    ``(F) PHA compliance.--A public housing agency may 
                not be considered to fail to comply with this paragraph 
                or paragraph (6) due solely to any de minimus errors 
                made by the agency in calculating family incomes.'';
            (2) by striking subsections (d) and (e); and
            (3) by redesignating subsection (f) as subsection (d).
    (b) Income.--Section 3(b) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)) is amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) Income.--The term `income' means, with respect to a 
        family, income received from all sources by each member of the 
        household who is 18 years of age or older, as determined in 
        accordance with criteria prescribed by the Secretary, in 
        consultation with the Secretary of Agriculture, subject to the 
        following requirements:
                    ``(A) Included amounts.--Such term includes 
                recurring gifts and receipts, actual income from 
                assets, and profit or loss from a business.
                    ``(B) Excluded amounts.--Such term does not include 
                any imputed return on assets.
                    ``(C) Earned income of students.--Such term does 
                not include earned income of any dependent earned 
                during any period that such dependent is attending 
                school on a full-time basis.
                    ``(D) Other exclusions.--Such term shall not 
                include other exclusions from income as are established 
                by the Secretary or any amount required by Federal law 
                to be excluded from consideration as income. The 
                Secretary may not require a public housing agency to 
                maintain records of any amounts excluded from income 
                pursuant to this subparagraph.''; and
            (2) in paragraph (5)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``income exclusions'' and inserting 
                ``deductions from income''; and
                    (B) by striking subparagraphs (A) and (B) and 
                inserting the following:
                    ``(A) Elderly and disabled families.--$750 in the 
                case of any family that is an elderly family or a 
                disabled family.
                    ``(B) Dependents.--In the case of any family that 
                includes a member or members who are dependents (as 
                such term is defined in section 152 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 152)) and resides in 
                the household, $500 for each such member.
                    ``(C) Health and medical expenses.--In the case of 
                any elderly or disabled family, the amount, if any, by 
                which the sum of any unreimbursed medical and health 
                care expenses and reasonable attendant care and 
                auxiliary apparatus expenses for any person with 
                disabilities exceeds 10 percent of the family's income.
        The Secretary shall annually adjust the amounts of the 
        exclusions under subparagraphs (A) and (B), as such amounts may 
        have been previously adjusted, by applying an inflationary 
        factor as the Secretary shall, by regulation, establish. If the 
        dollar amount of any such exclusion determined for any year by 
        applying such inflationary factor is not a multiple of $25, the 
        Secretary shall round such amount to the next lowest multiple 
        of $25.''.
    (c) Housing Choice Voucher Program.--Section 8(o)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (ii); and
                    (B) by redesignating clause (iii) as clause (ii); 
                and
            (2) in subparagraph (B), by striking ``, (ii), and (iii)'' 
        and inserting ``and (ii)''.
    (d) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by 
striking ``income'' and inserting ``annual adjusted income''.
    (e) Homeownership Program.--Section 8(y)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(y)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (ii); and
                    (B) by redesignating clause (iii) as clause (ii); 
                and
            (2) in subparagraph (B), by striking ``, (ii), and (iii)'' 
        and inserting ``and (ii)''.
    (f) Effective Date and Transition.--The amendments made by this 
section shall apply with respect to fiscal year 2008 and fiscal years 
thereafter.

SEC. 4. TARGETING VOUCHERS TO LOW-INCOME WORKING FAMILIES.

    Section 16(b)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437n(b)(1)) is amended by inserting after ``do not exceed'' the 
following: ``the higher of (A) the poverty line (as such term is 
defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 
(42 U.S.C. 9902), including any revision required by such section) 
applicable to a family of the size involved, or (B)''.

SEC. 5. MOVING TO WORK PROGRAM.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended by adding at the end the following 
new section:

``SEC. 36. MOVING TO WORK PROGRAM.

    ``(a) Purposes.--The purposes of the program established under this 
section are--
            ``(1) to give incentives to families to become self-
        sufficient;
            ``(2) to give public housing agencies and the Secretary 
        flexibility to develop approaches for providing and 
        administering housing assistance that achieve greater cost-
        effectiveness in Federal expenditures;
            ``(3) to increase housing opportunities for low-income 
        families;
            ``(4) to reduce administrative burdens on public housing 
        agencies in providing housing assistance; and
            ``(5) to allow Federal resources to be more effectively 
        utilized at the local level.
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary shall carry out a Moving 
        to Work Program (in this section referred to as the `program'), 
        in which public housing agencies selected under subsection (c) 
        may participate.
            ``(2) Use of assistance.--Under the program, a public 
        housing agency--
                    ``(A) may combine operating assistance provided 
                under section 9(e), modernization assistance provided 
                under section 9(d), and assistance provided under 
                section 8 for voucher program, to provide housing 
                assistance for low-income families, and services to 
                facilitate the transition to work; and
                    ``(B) shall continue to assist substantially the 
                same total number of eligible low-income families as 
                would have been served had the amounts not be combined.
            ``(3) Authority of secretary.--
                    ``(A) Waiver.--Notwithstanding any other provision 
                of law, except as provided in subsection (f), the 
                Secretary may waive any provision of this Act with 
                respect to assistance under the program.
                    ``(B) Additional powers.--The Secretary may, as the 
                Secretary determines appropriate to further the 
                purposes of this section--
                            ``(i) provide streamlined procedures 
                        including procurement procedures; and
                            ``(ii) subject to paragraph (2), provide 
                        for immediate implementation of such 
                        procedures.
    ``(c) Selection.--
            ``(1) In general.--The Secretary shall select public 
        housing agencies to participate in the program. The Secretary 
        shall provide for agencies to submit applications, in such form 
        as prescribed by the Secretary, for selection for participation 
        in the program.
            ``(2) Selection criteria.--In selecting among applications 
        by public housing agencies to participate in the program, the 
        Secretary shall take into consideration the extent to which 
        such public housing agency meets such criteria as the Secretary 
        shall establish, including--
                    ``(A) a demonstrated capacity by the public housing 
                agency to develop and manage a successful program;
                    ``(B) demonstrated compliance by the agency with 
                statutes and regulations applicable to Department of 
                Housing and Urban Development programs in which the 
                public housing agency participates or has participated;
                    ``(C) commitment by the agency of non-Federal 
                resources, including resources from the local 
                community; and
                    ``(D) demonstrated commitment, by units of local 
                government serving the areas within which the public 
                housing agency administers its program, on removing 
                regulatory barriers to affordable housing.
            ``(3) Limitation on total number of agencies 
        participating.--Notwithstanding any other provision of law, the 
        aggregate number of public housing agencies participating, at 
        any single time, in the program under this section or in the 
        moving to work demonstration program under section 204 of the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations Act, 1996 
        (42 U.S.C. 1437f note) (in this subsection referred to as the 
        `demonstration program') may not exceed 40.
            ``(4) Term of participation.--
                    ``(A) 3-year term.--A public housing agency may 
                participate in the program for a period of 3 years 
                pursuant to selection by the Secretary.
                    ``(B) Reapplication for continued participation.-- 
                Upon the expiration (pursuant to initial selection or 
                reapplication under this subparagraph) of the period of 
                participation of an agency in the program, the agency 
                may reapply for selection for participation in the 
                program and the Secretary shall select such agency for 
                an additional 3-year period unless such agency fails to 
                comply with the performance standards established by 
                the Secretary pursuant to subsection (h)(3).
            ``(5) Effect on agencies currently participating in 
        demonstration program.--Subject to such procedures and 
        requirements as the Secretary may establish, a public housing 
        agency that, as on the date of the enactment of this Act, is 
        participating in the demonstration program--
                    ``(A) may apply, in accordance with the 
                requirements of this section, for participation in 
                program under this section--
                            ``(i) at any time before the expiration of 
                        the period of its participation in such 
                        demonstration, if the agency opts out of the 
                        demonstration program; or
                            ``(ii) upon the expiration of the period of 
                        participation of such agency in the 
                        demonstration program; and
                    ``(B) upon such application, shall be treated, for 
                purposes of selection for participation, as an agency 
                reapplying under paragraph (4)(B).
    ``(d) Eligibility for Selection.--A public housing agency shall be 
eligible for selection to participate in the program only if such 
public housing agency--
            ``(1) is designated, at the time of submission of an 
        application for participation, as a high performer under the 
        applicable assessment systems that evaluate the performance of 
        a public housing agency, if any, with respect to its public 
        housing and voucher programs; and
            ``(2)(A) manages at least 500 units of public housing 
        pursuant to contracts for annual contributions; or
            ``(B) administers at least 500 vouchers for assistance 
        under section 8.
    ``(e) Program Requirements.--A public housing agency that is 
administering a program pursuant to this section shall, as a condition 
of continued participation in the program--
            ``(1) consult with representatives of the community that 
        represent a broad range of the various interests that are 
        affected by the program;
            ``(2) target, for purposes of the program, not fewer than 
        90 percent of families authorized in the program under this 
        section to receive assistance, who have gross incomes that do 
        not exceed 60 percent of the median income for the area, as 
        determined by the Secretary, with adjustments for smaller or 
        larger families;
            ``(3) establish a reasonable rent policy which is designed 
        to encourage employment and self-sufficiency by participating 
        families;
            ``(4) provide such assurances, as the Secretary shall 
        require, that housing assisted under the program meets housing 
        standards established or approved by the Secretary; and
            ``(5) provide such additional information as determined by 
        the Secretary.
    ``(f) Applicability of Section 18 Provisions.--Section 18 shall 
continue to apply to public housing notwithstanding any use of the 
housing under the program.
    ``(g) Effect on Section 8 and Operating Subsidies Allocations.--The 
amount of assistance received under section 8 or section 9 by a public 
housing agency participating in the program shall, subject to 
appropriations, not be affected by its participation in the program.
    ``(h) Evaluation of Performance.--
            ``(1) In general.--The Secretary shall conduct detailed 
        evaluations of all public housing agencies participating in the 
        program under this section and all agencies participating in 
        the moving to work demonstration referred to in subsection 
        (c)(3)--
                    ``(A) to determine the level of success of each 
                public housing agency in achieving the purposes of the 
                program under subsection (a); and
                    ``(B) to identify program models that can be 
                replicated by other agencies to achieve such success.
            ``(2) In general.--The Secretary shall assess the 
        performance of a public housing agency in the program under 
        this section and in the moving to work demonstration program 
        referred to in subsection (c)(3). Subject to paragraph (3) of 
        this subsection, such assessment--
                    ``(A) may be conducted, only during the period 
                ending January 1, 2008, using the applicable assessment 
                systems that evaluate the performance of a public 
                housing agency with respect to its public housing and 
                voucher programs, including section 6(j); or
                    ``(B) except as provided in subparagraph (A), shall 
                be conducted under such assessment systems as shall be 
                designed by the Secretary to evaluate the program under 
                this section.
            ``(3) Performance standards.--
                    ``(A) Issuance of rules.--The Secretary shall, for 
                the purposes of designing and implementing performance 
                standards for public housing agencies participating in 
                the program under this section and agencies 
                participating in the moving to work demonstration 
                program referred to in subsection (c)(3), issue a 
                proposed rule and a final rule implementing performance 
                standards under this section.
                    ``(B) Timing.--The final rule required under 
                subparagraph (A) shall be issued not later than 24 
                months after the date of enactment of the Section 8 
                Voucher Reform Act of 2006.
                    ``(C) Standards.--Performance standards issued by 
                the Secretary under subparagraph (A) may include--
                            ``(i) a baseline performance level against 
                        which public housing agencies may be rated; and
                            ``(ii) standards for--
                                    ``(I) moving assisted low-income 
                                families to economic self-sufficiency;
                                    ``(II) reducing the per-family cost 
                                of providing housing assistance;
                                    ``(III) expanding housing choices 
                                for low-income families;
                                    ``(IV) improving program 
                                management;
                                    ``(V) increasing the number of 
                                homeownership opportunities and 
                                affordable rental housing 
                                opportunities, for low-income families; 
                                and
                                    ``(VI) any other performance goals 
                                that the Secretary may establish.
    ``(i) Recordkeeping, Reports, and Audits.--
            ``(1) Recordkeeping.--Each public housing agency 
        participating in the program shall keep such records as the 
        Secretary may prescribe as reasonably necessary to disclose the 
        amounts and the disposition of amounts under the program, to 
        ensure compliance with the requirements of this section, and to 
        measure performance.
            ``(2) Reports.--Each such agency participating in the 
        program shall submit to the Secretary a report, or series of 
        reports, in a form and at a time specified by the Secretary.
            ``(3) Access to documents by secretary.--The Secretary 
        shall have access for the purpose of audit and examination to 
        any books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            ``(4) Access to documents by the comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            ``(5) Reports regarding evaluations.--
                    ``(A) To secretary.--The Secretary shall require 
                each public housing agency participating in the program 
                under this section and each agency participating in the 
                moving to work demonstration program referred to in 
                subsection (c)(3) to submit annually to the Secretary 
                such information as the Secretary considers appropriate 
                to permit the Secretary to evaluate (pursuant to 
                subsection (h)) the performance and success of the 
                agency in achieving the purposes of the demonstration.
                    ``(B) To congress.--The Secretary shall submit a 
                report to the Congress not less than annually 
                evaluating the programs of all public housing agencies 
                participating in the program under this section and all 
                agencies participating in the moving to work 
                demonstration program referred to in subsection (c)(3). 
                Each such report shall include findings and 
                recommendations for any appropriate legislative 
                action.''.
    (b) Prohibition of Extension of, and Selection of Additional 
Agencies for, Participation in Demonstration Program.--Section 204(d) 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996 (42 
U.S.C. 1437f note) is amended by adding after the period at the end the 
following: ``After the date of the enactment of the Section 8 Voucher 
Reform Act of 2006, the Secretary may not extend the period of 
participation, in effect on such date of enactment, of any public 
housing agency, or select any public housing agency for participation, 
in the demonstration under this section.''.
    (c) GAO Report.--Not later than 12 months after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit a report to the Congress on the extent to which the public 
housing agencies participating in the Moving to Work program under 
section 36 of the United States Housing Act of 1937 and the agencies 
participating in the moving to work demonstration program under section 
204 of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996, are 
meeting the goals and purposes of such programs, including the purposes 
under subsection (a) of such section 36 and the goals identified in 
section (h)(3)(C)(ii) of such section 36.

SEC. 6. VOUCHER RENEWAL FUNDING.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by striking subsection (dd) and inserting the 
following new subsection:
    ``(dd) Tenant-Based Vouchers.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated, for each of fiscal years 2007 
        through 2011, such sums as may be necessary for tenant-based 
        assistance under subsection (o) for the following purposes:
                    ``(A) To renew all expiring annual contributions 
                contracts for tenant-based rental assistance.
                    ``(B) To provide tenant-based rental assistance 
                for--
                            ``(i) relocation and replacement of housing 
                        units that are demolished or disposed of 
                        pursuant to the Omnibus Consolidated 
                        Rescissions and Appropriations Act of 1996 
                        (Public Law 104-134);
                            ``(ii) conversion of section 23 projects to 
                        assistance under this section;
                            ``(iii) the family unification program 
                        under subsection (x) of this section;
                            ``(iv) relocation of witnesses in 
                        connection with efforts to combat crime in 
                        public and assisted housing pursuant to a 
                        request from a law enforcement or prosecution 
                        agency;
                            ``(v) enhanced vouchers authorized under 
                        subsection (t) of this section;
                            ``(vi) vouchers in connection with the HOPE 
                        VI program under section 24;
                            ``(vii) demolition or disposition of public 
                        housing units pursuant to section 18 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437p);
                            ``(viii) mandatory and voluntary 
                        conversions of public housing to vouchers, 
                        pursuant to sections 33 and 22 of the United 
                        States Housing Act of 1937, respectively (42 
                        U.S.C. 1437z-5, 1437t);
                            ``(ix) vouchers necessary to comply with a 
                        consent decree or court order;
                            ``(x) vouchers transferred from another 
                        public housing agency; and
                            ``(xi) tenant protection assistance, 
                        including replacement and relocation 
                        assistance.
            ``(2) Allocation of renewal funding among public housing 
        agencies.--
                    ``(A) From amounts appropriated for each year 
                pursuant to paragraph (1)(A), the Secretary shall 
                provide renewal funding for each public housing 
                agency--
                            ``(i) based on leasing and costs from the 
                        prior year, as adjusted by an annual adjustment 
                        factor to be established by the Secretary;
                            ``(ii) by making any adjustments necessary 
                        to provide for the first-time renewal of 
                        vouchers funded under paragraph (1)(B); and
                            ``(iii) by making such other adjustments as 
                        the Secretary considers appropriate.
                    ``(B) Leasing and cost data.--For purposes of 
                subparagraph (A)(i), leasing and cost data shall be 
                calculated not less often than biennially by using the 
                average for the calendar year that, at the time of such 
                calculation, is the most recently completed calendar 
                year for which the Secretary determines data is 
                available, substantially verifiable, and complete. Such 
                leasing data shall be adjusted to include vouchers that 
                were set aside under a commitment to provide project-
                based assistance under subsection (o)(13).
                    ``(C) Moving to work.--Notwithstanding 
                subparagraphs (A) and (B), each public housing agency 
                participating at any time in the moving to work 
                demonstration under section 204 of the Departments of 
                Veterans Affairs and Housing and Urban Development, and 
                Independent Agencies Appropriations Act, 1996 (42 
                U.S.C. 1437f note) or in the Moving to Work program 
                under section 36 of this Act shall be funded pursuant 
                to its agreement under such program and shall be 
                subject to any pro rata adjustment made under 
                subparagraph (D).
                    ``(D) Pro rata allocation.--
                            ``(i) Insufficient funds.--To the extent 
                        that amounts made available for a fiscal year 
                        are not sufficient to provide each public 
                        housing agency with the full allocation for the 
                        agency determined pursuant to subparagraphs (A) 
                        and (C), the Secretary shall reduce such 
                        allocation for each agency on a pro rata basis, 
                        except that renewal funding of enhanced 
                        vouchers under section 8(t) shall not be 
                        subject to such proration.
                            ``(ii) Excess funds.--To the extent that 
                        amounts made available for a fiscal year exceed 
                        the amount necessary to provide each housing 
                        agency with the full allocation for the agency 
                        determined pursuant to subparagraphs (A) and 
                        (C), such excess amounts shall be used for the 
                        purposes specified in subparagraphs (B) and (C) 
                        of paragraph (4).
            ``(3) Advances.--
                    ``(A) Authority.--During the last 3 months of each 
                calendar year, the Secretary shall provide amounts to 
                any public housing agency, at the request of the 
                agency, in an amount up to two percent of the 
                allocation for the agency for such calendar year.
                    ``(B) Use.--Amounts advanced under subparagraph (A) 
                may be used to pay for additional voucher costs, 
                including costs related to temporary overleasing.
                    ``(C) Repayment.--Amounts advanced under 
                subparagraph (A) in a calendar year shall be repaid to 
                the Secretary in the subsequent calendar year by 
                reducing the amounts made available for such agency for 
                such subsequent calendar year pursuant to allocation 
                under paragraph (2) by an amount equal to the amount so 
                advanced to the agency.
            ``(4) Recapture.--
                    ``(A) In general.--The Secretary shall recapture, 
                from amounts provided under the annual contributions 
                contract for a public housing agency for a calendar 
                year, all amounts allocated under paragraph (2) that 
                are unused by the agency at the end of each calendar 
                year.
                    ``(B) Reallocation.--Not later than May 1 of each 
                calendar year, the Secretary shall--
                            ``(i) calculate the aggregate unused 
                        amounts for the preceding year recaptured 
                        pursuant to subparagraph (A);
                            ``(ii) set aside and make available such 
                        amounts as the Secretary considers appropriate 
                        to reimburse public housing agencies for 
                        increased costs related to portability and 
                        family self-sufficiency activities during such 
                        year; and
                            ``(iii) reallocate all remaining amounts 
                        among public housing agencies that, in the 
                        preceding year, used at least 99 percent of 
                        amounts allocated under paragraph (2) for the 
                        agency and leased fewer than the number of 
                        vouchers authorized for the agency; except that 
                        the Secretary may establish priority for 
                        allocation of such amounts to public housing 
                        agencies that leased fewer vouchers in such 
                        preceding year than in the 12-month period 
                        ending April 1, 2004.
                    ``(C) Use.--Amounts reallocated to a public housing 
                agency pursuant to subparagraph (B)(iii) may be used 
                only to increase voucher leasing rates to the level 
                authorized for the agency.''.

SEC. 7. SECTION 8 HOMEOWNERSHIP DOWNPAYMENT PROGRAM.

    Section 8(y)(7) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)(7)) is amended by striking subparagraph (A) and inserting the 
following new subparagraph:
                    ``(A) Authority.--A public housing agency may, in 
                lieu of providing monthly assistance payments under 
                this subsection on behalf of a family eligible for such 
                assistance and at the discretion of the public housing 
                agency, provide assistance for the family in the form 
                of a single grant to be used only as a contribution 
                toward the downpayment required in connection with the 
                purchase of a dwelling.''.
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