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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5137 Introduced in House (IH)]

<DOC>

114th CONGRESS
  2d Session
                                H. R. 5137

 To reform the Moving to Work Program of the Department of Housing and 
               Urban Development, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 2016

  Mr. McCarthy (for himself, Mr. Valadao, Ms. Hahn, Mr. Stivers, Mr. 
  Neugebauer, Mr. Dold, Mr. Royce, Mr. Rothfus, Mr. Westmoreland, Mr. 
 Pearce, Mr. LaMalfa, Mr. Frelinghuysen, Mr. Fleischmann, Mr. Knight, 
Mr. Fitzpatrick, Mr. McHenry, Mr. Hunter, and Mr. Hill) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL

 
 To reform the Moving to Work Program of the Department of Housing and 
               Urban Development, and for other purposes.

    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 ``Moving to Work Reform and Expansion 
Act of 2016''.

SEC. 2. REFORM OF MOVING TO WORK PROGRAM.

    (a) Program Reforms.--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) is amended--
            (1) in the section heading, by striking ``demonstration'' 
        and inserting ``program'';
            (2) by striking the section designation and all that 
        follows through the end of subsection (a) and inserting the 
        following:
    ``Sec. 204. (a) Purposes.--The purposes of the program under this 
section are as follows:
            ``(1) Economic independence.--To develop measures to 
        promote economic independence for families with children whose 
        head of household is working, seeking work, or preparing for 
        work, for able-bodied individuals, and for persons with 
        disabilities who are able to work on a limited basis, to obtain 
        employment and become economically independent, by 
        participating in job training, educational programs, or other 
        supportive services and programs that assist in meeting such 
        goal.
            ``(2) Flexibility and cost-effectiveness.--To give public 
        housing agencies and the Secretary of Housing and Urban 
        Development the flexibility to design and implement various 
        approaches for providing and administering housing assistance 
        that reduce cost and achieve greater cost effectiveness in 
        Federal expenditures.
            ``(3) Housing choice.--To increase housing choices for low-
        income families.'';
            (3) in subsection (b)--
                    (A) by striking ``(b) Program Authority.--The 
                Secretary'' and inserting the following:
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary'';
                    (B) in the first sentence, by striking ``conduct a 
                demonstration program'' and all that follows through 
                ``Indian housing program and'' and inserting ``carry 
                out a program under this section under which public 
                housing agencies administering the public housing 
                program or'';
                    (C) by inserting after the first sentence the 
                following: ``There shall be no limitation on the number 
                of public housing agencies that may participate in the 
                program under this section.'';
                    (D) by striking ``The Secretary shall'' and all 
                that follows through ``demonstration.'' and inserting 
                the following:
            ``(2) Identification of replicable models.--The Secretary 
        shall provide training and technical assistance under the 
        program and conduct detailed evaluations of various agencies to 
        identify replicable program models promoting the purposes of 
        the program.'';
                    (E) by striking ``Under the demonstration'' and 
                inserting the following:
            ``(3) Combination of assistance.--Under the program under 
        this section''; and
                    (F) by striking ``operating assistance provided 
                under section 9 of the United States Housing Act of 
                1937, modernization assistance provided under section 
                14'' and inserting ``amounts provided to the agency 
                from the Operating Fund under section 9(e) of the 
                United States Housing Act of 1937, amounts provided to 
                the agency from the Capital Fund under section 9(d)'';
            (4) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``demonstration'' and inserting ``program 
                under this section'';
                    (B) in paragraph (1), by striking ``9, and 14'' and 
                inserting ``9(d), and 9(e)'';
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``demonstration'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``self-
                                sufficiency'' and inserting ``economic 
                                independence''; and
                                    (II) by striking ``purpose of this 
                                demonstration'' and inserting ``purpose 
                                of the program under subsection 
                                (a)(1)'';
                            (iii) in subparagraph (D), by striking 
                        ``demonstration'' and inserting ``program under 
                        this section;'';
                            (iv) in subparagraph (E), by striking 
                        ``demonstration program'' and inserting 
                        ``program under this section'';
                            (v) by redesignating subparagraphs (A), 
                        (B), (C), (D), and (E) as subparagraphs (B), 
                        (C), (D), (G), and (H), respectively;
                            (vi) by inserting before subparagraph (B) 
                        (as so redesignated by clause (v) of this 
                        subparagraph) the following new subparagraph:
                    ``(A) actions to be taken under the proposed 
                program to achieve the purposes of the program under 
                paragraphs (1), (2), and (3) of subsection (a);''; and
                            (vii) by inserting after subparagraph (D) 
                        (as so redesignated by clause (v) of this 
                        subparagraph) the following new subparagraphs:
                    ``(E) hardship exceptions consistent with the 
                purposes under subsection (a) under which tenants may 
                be temporarily exempted from compliance with the 
                program operated by the agency in the event of 
                extenuating circumstances preventing such compliance 
                and a process that provides tenants with recourse to a 
                speedy determination regarding such an exception and 
                makes available the contents and results of such a 
                determination available to the public and the board of 
                directors or other governing body on request of the 
                tenant concerned or the director or other head official 
                of the agency;
                    ``(F) providing assisted families and participants 
                in the program operated by the agency with an informal 
                administrative hearing or grievance process, prior to 
                any eviction or termination of assistance, which 
                process shall make the content and determination of the 
                hearing available to the public and the board of 
                directors or other governing body on request of the 
                tenant concerned or the director or other head official 
                of the agency;''; and
                    (D) in paragraph (4), by striking ``demonstration'' 
                and inserting ``proposed program'';
            (5) in subsection (d)--
                    (A) by striking ``(d) Selection.--In selecting 
                among applications, the Secretary shall take into 
                account the'' and inserting the following:
    ``(d) Applications for Participation.--
            ``(1) Submission; standards for participation.--The 
        Secretary shall provide for public housing agencies to submit 
        applications for participation in the program under this 
        section and shall establish, and make public, standards and 
        requirements for participation that further the purposes of 
        this program set forth in subsection (a), which shall--
                    ``(A) provide that all agencies not designated as 
                troubled pursuant to part 902 or subpart B of part 985 
                of the Secretary's regulations (24 C.F.R. 902, 985) at 
                any time during the most recent two fiscal years are 
                invited to submit applications for consideration;
                    ``(B) provide that participation of an agency, upon 
                approval, shall be for a period not shorter than 10 
                years;
                    ``(C) include a common set of budget metrics for 
                use under the program that allow for comparison of the 
                performance of different agencies under the program;
                    ``(D) require that each agency include in its 
                application--
                            ``(i) a list of innovative proposals to be 
                        carried out under the program that are designed 
                        to reduce the cost of, and increase the cost-
                        efficiency of, housing provided in connection 
                        with the program and metrics to assess the 
                        progress of the agency toward such goals; and
                            ``(ii) a list of innovative manners in 
                        which the agency will use the authorities under 
                        the program to assist families, goals regarding 
                        such activities to accomplish on an annual 
                        basis, and metrics to assess the progress of 
                        the agency toward such goals; and
                    ``(E) include a plan for using, to the greatest 
                extent feasible, electronic data-matching for income 
                verification services.
            ``(2) Determination and notification.--
                    ``(A) Review and determination.--Upon receipt of an 
                application for participation in the program under this 
                section, the Secretary shall provide for review such 
                application by a selection panel comprised of Federal 
                officials and employees and established by the 
                Secretary for such purpose. Based on such review, such 
                selection panel shall make a determination of whether 
                to approve such agency for participation in the program 
                under this section, based on the criteria under 
                paragraph (4).
                    ``(B) Notification.--Upon making a determination 
                pursuant to subparagraph (A), the selection panel shall 
                notify the public housing agency, the Secretary, and 
                the governments for any counties and municipalities in 
                which the jurisdiction of the public housing agency is 
                located of such determination. In the case of 
                disapproval of an application, such notice shall 
                include a statement specifying the reasons for such 
                disapproval.
            ``(3) Transition.--
                    ``(A) Numerical limitation.--
                            ``(i) In general.--The Secretary shall 
                        review and process such applications as to 
                        enable the transition of not less than 25 
                        public housing agencies per year to the program 
                        under this section (subject to approvable 
                        applications), until such time as there are not 
                        25 agencies whose applications merit approval.
                            ``(ii) Reserved spots for small and rural 
                        phas.--Of the applications of public housing 
                        agencies approved in each year pursuant to 
                        clause (i), not less than 10 shall be 
                        applications of public housing agencies that 
                        administer, in the aggregate, fewer than 6,000 
                        vouchers for rental assistance under section 8 
                        of the United States Housing Act of 1937 and 
                        public housing dwelling units, except that if 
                        for any year the Secretary receives fewer than 
                        10 applications by public housing agencies 
                        described in this clause that merit approval, 
                        the requirement under this clause shall apply 
                        for such year only to the extent of the number 
                        of such approvable applications received.
                            ``(iii) Treatment of new mtw agencies.--Any 
                        agency that is newly transitioned under this 
                        subparagraph to participation in the program as 
                        in effect pursuant to the amendments made by 
                        the Moving to Work Reform and Expansion Act of 
                        2016, shall count toward fulfillment of the 
                        numerical limitation in clause (i), 
                        notwithstanding the authority under section 239 
                        of the Transportation, Housing and Urban 
                        Development, and Related Agencies 
                        Appropriations Act, 2016 (division L of Public 
                        Law 114-113) or any other provision of law 
                        other than this section authorizing 
                        participation of new agencies.
                    ``(B) Contract revisions.--The Secretary shall, 
                from time to time and in consultation with public 
                housing agencies, amend contracts for participation by 
                agencies in the program under this section as may be 
                necessary, based on experiences of agencies that have 
                participated in the program, to correct mistakes and 
                better achieve the goals of this program set forth in 
                subsection (a).
                    ``(C) Renewal of certification.--
                            ``(i) In general.--The Secretary shall 
                        provide that upon expiration of a contract for 
                        participation by a public housing agency in the 
                        program under this section, to continue 
                        participating in the program the agency shall 
                        be required to recertify with the Secretary for 
                        such renewed participation. The standards and 
                        requirements applicable to applications for 
                        initial participation in the program shall also 
                        apply to applications for renewed participation 
                        in the program.
                            ``(ii) Treatment of numerical limitation.--
                        An agency approved for continued participation 
                        in the program pursuant to recertification 
                        under this subparagraph shall not count toward 
                        fulfillment of the numerical limitation in 
                        subparagraph (A)(i).
            ``(4) Criteria.--The Secretary shall establish criteria for 
        approval of applications of public housing agencies for 
        participation in the program under this section, which shall 
        provide for approval of applications that are reasonably 
        designed to carry out the purposes of the program under 
        subsection (a). Such criteria shall take into consideration the 
        capacity and'';
                    (B) by striking ``each'' and inserting ``the'';
                    (C) by striking ``a program under the 
                demonstration'' and inserting ``the proposed program in 
                the application''; and
                    (D) by striking ``an agency'' and inserting ``the 
                agency'';
            (6) in subsection (e)--
                    (A) in paragraph (1), by striking ``this 
                demonstration'' and inserting ``the program under this 
                section''; and
                    (B) in paragraph (2), by striking ``demonstration'' 
                and inserting ``program under this section'';
            (7) in subsection (f), by striking ``section 9, or pursuant 
        to section 14 by a public housing agency participating in the 
        demonstration under this part'' and inserting ``of the United 
        States Housing Act of 1937, or provided from the Operating Fund 
        under section 9(e) or from the Capital Fund under section 9(d) 
        of such Act, by a public housing agency participating in the 
        program under this section'';
            (8) in subsection (g)--
                    (A) in paragraph (1), by inserting ``, including 
                performance in achieving each of the purposes of the 
                program specified in subsection (a)'';
                    (B) in paragraph (2)--
                            (i) in the first sentence--
                                    (I) by inserting ``, and including 
                                such content, as shall be'' before 
                                ``specified by the Secretary''; and
                                    (II) by inserting ``, but not less 
                                often than annually'' before the period 
                                at the end; and
                            (ii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) describe and analyze the effects of the 
                program of the agency and the assisted activities under 
                such program in addressing and achieving the objectives 
                of the program under this section and each of the 
                purposes specified in subsection (a), including the 
                effects of the program on--
                            ``(i) the number of new families the agency 
                        has been able to assist from the waiting lists 
                        for housing assistance that is administered by 
                        the agency, including vouchers for rental 
                        assistance under section 8(o) of the United 
                        States Housing Act of 1937 and dwelling units 
                        in public housing and in housing assisted with 
                        project-based section 8 assistance, as a result 
                        of the flexibility of funds and achievement of 
                        economic independence;
                            ``(ii) the cost and annual change, per 
                        family participating in the program, of 
                        providing housing assistance referred to in 
                        clause (i) that is administered by the agency;
                            ``(iii) any cost savings and additional 
                        housing resulting from the program; and
                            ``(iv) the household incomes, and changes 
                        in such incomes, of members of families 
                        participating in the program who are not exempt 
                        from work requirements; and
                            ``(v) such other factors as the Secretary 
                        considers appropriate.'';
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (5) and (6); and
                    (D) by inserting after paragraph (2) the following 
                new paragraphs:
            ``(3) Annual budget plan.--
                    ``(A) Requirement.--Each agency shall submit 
                annually to the Secretary, together with the report 
                under paragraph (2), a budget plan for the program of 
                the agency for the upcoming year and shall make such 
                budget plan publicly available.
                    ``(B) Form and metrics.--Each annual budget plan 
                shall be set forth in a standard form, prescribed by 
                the Secretary and shall utilize a common budget metric 
                that allows for comparison of the budget plans of all 
                public housing agencies participating in the program.
                    ``(C) Content.--Each annual budget plan shall 
                include such content as the Secretary shall specify, 
                which shall include--
                            ``(i) a description and explanation of all 
                        new rules and policy changes adopted by the 
                        agency in accordance with this section and the 
                        program under this section and, with respect to 
                        such new rules and policy changes--
                                    ``(I) a description of the effect 
                                such rules and changes will have on the 
                                operation of the agency as compared to 
                                the preceding year and as compared to 
                                the operations of the agency other than 
                                under the program under this section;
                                    ``(II) a description of the extent 
                                to which such rules and changes helped 
                                to achieve the annual goals identified 
                                in the public housing agency's 
                                application pursuant to subsection 
                                (d)(1)(E) and, in the case of any such 
                                goals not achieved, a description of 
                                the extent to which such goals were not 
                                achieved and the reasons for such 
                                failure; and
                                    ``(III) whether the adoption of 
                                such new rules and policy changes 
                                required an adjustment in the annual 
                                goals identified in the public housing 
                                agency's application pursuant to 
                                subsection (d)(1);
                            ``(ii) a plan for all capital assets and 
                        anticipated construction and rehabilitation 
                        activities of the agency in the upcoming year 
                        and a description of whether and how such 
                        activities are authorized and assisted under 
                        the program under this section; and
                            ``(iii) assurances satisfactory to the 
                        Secretary that such plan will conform with all 
                        applicable provisions of the Civil Rights Act 
                        of 1964, the Fair Housing Act, the 
                        Rehabilitation Act of 1973, and the Americans 
                        with Disabilities Act of 1990.
            ``(4) Public and resident participation.--
                    ``(A) Notification of residents.--Each agency shall 
                annually hold a meeting to notify all assisted families 
                participating in the program of the agency of the 
                contents of the report under paragraph (2) for such 
                year and budget plan under paragraph (3) for such year 
                and impacts on such assisted families. Any agency that 
                assists in the aggregate, more than 50,000 families or 
                assists families in multiple counties shall hold as 
                many meetings as necessary to provide each assisted 
                family a good-faith opportunity to attend such a 
                meeting.
                    ``(B) Public comment.--Each annual report under 
                paragraph (2) and annual plan under paragraph (3) 
                shall--
                            ``(i) be made available for inspection and 
                        public comment 30 days before the meeting 
                        required by subparagraph (A) regarding such 
                        plan or report; and
                            ``(ii) be approved in a public meeting of 
                        the board of directors or other governing body 
                        of the agency before submission to the 
                        Secretary.
                    ``(C) Public availability.--Each annual report 
                under paragraph (2) and annual plan under paragraph (3) 
                shall, upon submission to the Secretary, be made 
                publicly available and shall include all comments 
                provided pursuant to subparagraph (B).'';
            (9) in subsection (h)--
                    (A) in paragraph (1), by striking ``demonstration'' 
                and inserting ``program under this section''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Review.--The Secretary shall annually review the 
        activities of each public housing agency participating in the 
        program under this section and, based on such review and the 
        information submitted by the agency pursuant to subsection (g), 
        determine--
                    ``(A) the impact and effectiveness of the agency's 
                program and activities in achieving each of the 
                purposes of the program specified in subsection (a), 
                including an assessment of such impact and 
                effectiveness using the common set of budget metrics 
                established pursuant to subsection (d)(1)(D);
                    ``(B) the progress of the agency toward meeting the 
                goals identified in the agency's application pursuant 
                to subsection (d)(1)(E), using the metrics identified 
                in the agency's application pursuant to such 
                subsection; and
                    ``(C) the extent of compliance by the agency with 
                the requirements of the program under this section and, 
                in determining such extent of compliance, shall take 
                into consideration the unique characteristics of the 
                agency.
            ``(3) Verification of accuracy.--In assessing information 
        submitted by public housing agencies pursuant to subsection (g) 
        and in reviewing such information and making determinations 
        pursuant to paragraph (2) of this subsection, the Secretary 
        shall carry out control activities and procedures designed to 
        verify the accuracy of such information, which shall include 
        auditing a representative sample of such information using 
        standard statistical methods.
            ``(4) Continued participation.--The Secretary shall not 
        terminate the participation of any public housing agency in the 
        program under this section unless the Secretary finds that the 
        agency--
                    ``(A) is in material default of the conditions and 
                obligations under the agreement entered into between 
                the agency and the Secretary providing for such 
                participation;
                    ``(B) as demonstrated in its reports under 
                subsection (g)(2) and its annual budget plans under 
                subsection (g)(3), has persistently failed to meet the 
                goals identified in its application, and the reasons or 
                circumstances specified in the agency's reports and 
                plans for such failure are not sufficient to justify 
                the continued failure;
                    ``(C) has misused or misappropriated funds;
                    ``(D) has failed to make a good faith effort to 
                carry out the purposes of the program specified in 
                subsection (a); or
                    ``(E) has failed to cure a material deficiency in 
                performance after notice and an opportunity to correct 
                the deficiency.
            ``(5) Corrective action program.--The Secretary shall carry 
        out a program--
                    ``(A) to identify agencies participating in the 
                program under this section that are at risk of 
                termination of such participation pursuant to paragraph 
                (6);
                    ``(B) to consult with such agencies regarding 
                actions that may be taken to avoid such termination;
                    ``(C) to establish goals and timelines for such 
                corrective actions; and
                    ``(D) to provide appropriate technical assistance 
                designed to facilitate such actions and avoid such 
                termination.
            ``(6) Termination of participation.--Any agency whose 
        participation in the program under this section is terminated 
        shall be subject to the provisions of the United States Housing 
        Act of 1937 (42 U.S.C. 1437 et seq.) and all other provisions 
        of law applicable to public housing agencies not participating 
        in the program, except that the Secretary shall provide a 
        transition period, that begins upon such termination and is not 
        shorter than 18 months, for such agencies to come into 
        compliance with such laws.
            ``(7) Reports to congress.--Not later than the expiration 
        of the 5-year period beginning on the date of the enactment of 
        the Moving to Work Reform and Expansion Act of 2016, and not 
        later than the expiration of each successive 5-year period 
        thereafter, the Secretary shall submit a report to the Congress 
        regarding the program under this section and the results of the 
        reviews conducted under paragraph (2), which shall--
                    ``(A) evaluate the programs carried out by public 
                housing agencies participating in the program, 
                including with respect to each of the purposes 
                specified in subsection (a); and
                    ``(B) include findings and recommendations for 
                appropriate legislative changes to the program.
            ``(8) GAO reviews and reports.--Not later than September 
        30, 2023, and not later than the expiration of each successive 
        8-year period thereafter, the Comptroller General of the United 
        States shall--
                    ``(A) conduct and complete a review of the program 
                under this section, which shall include examination and 
                analysis of the implementation of the program and 
                identification of any shortcomings and any means for 
                improving the program; and
                    ``(B) submit to the Congress a report regarding the 
                review, which shall set forth a detailed description of 
                such implementation, any shortcomings of the program 
                identified, and recommendations for improving the 
                program.'';
            (10) in subsection (i)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``section 14 of the United States Housing Act 
                of 1937 for fiscal years 1996, 1997, and 1998'' and 
                inserting ``the Capital Fund under section 9(d) of the 
                United States Housing Act of 1937 in each fiscal 
                year''; and
                    (B) in paragraph (1)(B), by striking ``up to 10''; 
                and
            (11) by striking subsection (j).
    (b) Treatment of Participating Agencies.--
            (1) Continuation of participation.--This Act and the 
        amendments made by this Act shall not affect the status of any 
        public housing agency that, as of the date of the enactment of 
        this Act, is participating in the Moving to Work Program under 
        section 204 of the Departments of Veterans Affairs and Housing 
        and Urban Development, and Independent Agencies Appropriations 
        Act, 1996, as such a participating agency.
            (2) Election.--Any public housing agency referred to in 
        paragraph (1) may elect--
                    (A) to continue participation in the Program under 
                such section 204 under the terms of the agreement 
                entered into between the agency and the Secretary 
                providing for such participation until the date of the 
                expiration of such agreement; or
                    (B) at any time before date of the expiration of 
                such agreement, to transition to participation under 
                the program under such section 204, as amended by this 
                Act.
            (3) Conversion to reformed program.--
                    (A) In general.--Except as provided in subparagraph 
                (B) of this paragraph, any public housing agency that 
                elects pursuant to paragraph (2)(A) of this subsection 
                to continue participation in the Program under such 
                section 204 shall, upon the expiration of the agreement 
                referred to in such paragraph, be considered to have 
                been approved for participation in the Program under 
                such section 204, as amended by this Act, and the 
                Secretary of Housing and Urban Development shall 
                provide for the transition of the agency to 
                participation under the Program under such section as 
                so amended.
                    (B) Inapplicability.--Subparagraph (A) shall not 
                apply to any public housing agency that is determined 
                by the Secretary to be in material default, upon the 
                expiration of the agreement referred to in paragraph 
                (2)(A), of the conditions and obligations under such 
                agreement.
            (4) Inapplicability of numerical limitation.--Any public 
        housing agency transitioned pursuant to paragraph (2)(B) or 
        (3)(A) of this subsection to participation under the Program as 
        amended by this Act shall not count toward fulfillment of the 
        numerical limitation under section 204(d)(3)(A) of the 
        Departments of Veterans Affairs and Housing and Urban 
        Development, and Independent Agencies Appropriations Act, 1996 
        (as added by the amendment made by section 2(a)(5)(A) of this 
        Act).
                                 <all>
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