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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1999 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 1999

   To better assist low-income families to obtain decent, safe, and 
affordable housing as a means of increasing their economic and personal 
  well-being through the conversion of the existing section 8 housing 
 choice voucher program into a flexible voucher program, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2005

Mr. Gary G. Miller of California (for himself, Mrs. Northup, Mr. Renzi, 
   Mr. Weldon of Florida, Ms. Harris, Mr. King of New York, and Mr. 
   Feeney) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
   To better assist low-income families to obtain decent, safe, and 
affordable housing as a means of increasing their economic and personal 
  well-being through the conversion of the existing section 8 housing 
 choice voucher program into a flexible voucher program, 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 ``State and Local Housing Flexibility 
Act of 2005''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                   TITLE I--FLEXIBLE VOUCHER PROGRAM

Sec. 101. Short title.
Sec. 102. Findings and purposes.
Sec. 103. Definitions.
Sec. 104. Authority of Secretary.
Sec. 105. Elderly families and disabled families.
Sec. 106. Performance Standards.
Sec. 107. Eligible families.
Sec. 108. Eligible activities.
Sec. 109. Amount of assistance.
Sec. 110. Authorization, allocation and distribution of funds.
Sec. 111. Environmental review.
Sec. 112. Inspection of units.
Sec. 113. Ability to transfer tenant-based rental assistance.
Sec. 114. Self-sufficiency.
Sec. 115. Termination of rental assistance contracts and related 
                            transactions.
Sec. 116. Failure to perform.
Sec. 117. Administrative and special administrative fees.
Sec. 118. Implementation.
Sec. 119. Authorization of appropriations.
Sec. 120. Conforming amendments.
      TITLE II--PUBLIC HOUSING RENT FLEXIBILITY AND SIMPLIFICATION

Sec. 201. Short title.
Sec. 202. Public housing rent flexibility and simplification.
                   TITLE III--MOVING TO WORK PROGRAM

Sec. 301. Short title.
Sec. 302. Moving to work program.

                   TITLE I--FLEXIBLE VOUCHER PROGRAM

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Flexible Voucher Act of 2005''.

SEC. 102. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the section 8 housing choice voucher program provides 
        rental and homeownership assistance to approximately 2,000,000 
        families;
            (2) the Secretary administers the housing choice voucher 
        program through rules and regulations that apply directly to 
        more than 2,400 entities throughout the United States;
            (3) such an administrative structure has contributed to the 
        development of statutory and regulatory measures that have made 
        the housing choice voucher program overly prescriptive and 
        difficult for public housing agencies and the Secretary to 
        administer;
            (4) the complexity of the housing choice voucher program, 
        its inability to allow adequate timely adjustments to changing 
        local markets, and its multiplicity of Federal directives, all 
        have contributed to fewer families being provided the housing 
        assistance made available by Congress;
            (5) many families in need of assistance under the housing 
        choice voucher program wait several years to receive assistance 
        under the program;
            (6) the benefits that assisted households derive from 
        housing vouchers, including access to safer and healthier 
        environments and increased economic opportunity, derive in 
        substantial part from the choices of housing and location that 
        vouchers offer;
            (7) the combination of increased administrative flexibility 
        and procedures to measure and reward local programs for better 
        performance can substantially increase the benefit of housing 
        vouchers to low-income households; and
            (8) local public housing agencies are in the best position 
        to determine local housing needs and market conditions 
        necessary to effectively manage housing voucher funding.
    (b) Purposes.--The purposes of this title are to--
            (1) provide housing assistance through a flexible voucher 
        program;
            (2) replace the housing choice voucher program established 
        under section 8 of the United States Housing Act of 1937 (42 
        U.S.C. 1437f);
            (3) provide for the necessary program flexibility and 
        oversight so that funds are used promptly and effectively to 
        assist needy families;
            (4) provide for additional program flexibility to address 
        local markets and needs;
            (5) provide for administrative decision making closer to 
        the communities and families affected, by local officials who 
        administer the program; and
            (6) provide incentives for improved self-sufficiency 
        efforts by assisted families.

SEC. 103. DEFINITIONS.

    For the purposes of this title, the following definitions shall 
apply:
            (1) Administrative fee.--The term ``administrative fee'' 
        means a fee paid by the Secretary to a public housing agency 
        for the routine administration, as determined by the Secretary, 
        of administering assistance under this title.
            (2) Disabled family.--Except as otherwise provided in law, 
        the term ``disabled family'' means a family whose head, spouse, 
        or sole member is a person with disabilities, including 2 or 
        more persons who are persons with disabilities living together.
            (3) Downpayment assistance.--The term ``downpayment 
        assistance'' means assistance for a family to be used toward 
        the purchase of a home, including reasonable and customary 
        closing costs required in connection with the purchase of a 
        home.
            (4) Elderly family.--Except as otherwise provided, the term 
        ``elderly family'' means a family whose head, spouse, or sole 
        member is a person who is at least 62 years of age, including 2 
        or more persons who are at least 62 years of age living 
        together.
            (5) Eligibility event.--The term ``eligibility event'' 
        means, with respect to a housing project--
                    (A) the prepayment of the mortgage on such housing 
                project;
                    (B) the voluntary termination of the insurance 
                contract for the mortgage for such housing project;
                    (C) the termination or expiration of the contract 
                for rental assistance under section 8 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f) for such 
                housing project; or
                    (D) the transaction under which the housing project 
                is preserved as affordable housing, under paragraphs 
                (3) and (4) of section 515(c) and section 524(d) of the 
                Multifamily Assisted Housing Reform and Affordability 
                Act of 1997 (42 U.S.C. 1437f note), section 223(f) of 
                the Low-Income Housing Preservation and Resident 
                Homeownership Act of 1990 (12 U.S.C. 4113(f)), or 
                section 201(p) of the Housing and Community Development 
                Amendments of 1978 (12 U.S.C. 1715z-1a(p)).
            (6) Family.--The term ``family'' means a person or group of 
        persons, as determined by the public housing agency, approved 
        to reside in a unit receiving assistance under this title.
            (7) First-time homebuyer.--The term ``first-time 
        homebuyer'' means a family, no member of which has had an 
        ownership interest in a principal residence during the 3 years 
        preceding the date on which the family initially receives 
        tenant-based homeownership assistance under this title.
            (8) Gross income.--The term ``gross income'' is the amount 
        of income from all sources for each family member of a 
        household, without deductions or exclusions, notwithstanding 
        any other provision of law.
            (9) Housing project.--The term ``housing project'' means a 
        multifamily housing development receiving project-based rental 
        assistance under section 107(b).
            (10) Median income for the area.--The term ``median income 
        for the area'' means the family income at the fiftieth 
        percentile of income for an area, as determined by the 
        Secretary, with adjustments for smaller and larger families.
            (11) Owner.--The term ``owner'' means any private person or 
        entity, including a cooperative, an agency of the Federal 
        Government, or a public housing agency, having the legal right 
        to lease or sublease dwelling units.
            (12) Person with disabilities.--The term ``person with 
        disabilities'' has the same meaning given the term in section 
        3(b) of the United States Housing Act of 1937 (42 U.S.C. 
        1437a(3)(b)).
            (13) Project-based rental assistance.--The term ``project-
        based rental assistance'' means housing assistance that a 
        public housing agency may attach to a specific property under 
        section 107.
            (14) Public housing agency.--The term ``public housing 
        agency'' or ``PHA'' means--
                    (A) any State, county, municipality, or other 
                governmental entity or public body (or agency or 
                instrumentality thereof) which is authorized to engage 
                in or assist in the development or operation of low-
                income housing; or
                    (B) any other entity designated by the Secretary to 
                administer assistance under this title in jurisdictions 
                where--
                            (i) no public housing agency has been 
                        organized; or
                            (ii) the Secretary determines that a public 
                        housing agency is not capable of effectively 
                        administering assistance under this title.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (16) Special administrative fee.--The term ``special 
        administrative fee'' means a fee paid by the Secretary to a 
        public housing agency for non-routine administrative expenses, 
        as determined by the Secretary, which may include expenses 
        associated with--
                    (A) tenant-based homeownership assistance;
                    (B) family self-sufficiency coordinators; and
                    (C) lead-based paint risk assessments.
            (17) Tenant-based homeownership assistance.--The term 
        ``tenant-based homeownership assistance'' means the payments 
        made on a monthly basis by public housing agencies under 
        section 108(c) and are used by families to make mortgage 
        payments or meet other monthly homeownership expenses.
            (18) Transfer-eligible family.--The term ``transfer-
        eligible family'' means a family that has received rental 
        assistance under this title for at least 12 months and is in 
        compliance with applicable requirements imposed in accordance 
        with this title and section 8 of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f).
            (19) Tenant-based rental assistance.--The term ``tenant-
        based rental assistance'' means housing assistance that 
        provides for the eligible family to select suitable housing 
        within the jurisdiction of an administering public housing 
        agency.

SEC. 104. AUTHORITY OF SECRETARY.

    (a) Grant Authority.--The Secretary is authorized to make grants 
to--
            (1) public housing agencies to provide tenant-based and 
        project-based rental assistance, and tenant-based homeownership 
        assistance to low income individuals; and
            (2) carry out activities related to the assistance 
        described in paragraph (1) in accordance with this title.
    (b) Contract Authority.--
            (1) In general.--The Secretary is authorized to enter into 
        contracts with public housing agencies to administer grants 
        authorized under subsection (a).
            (2) Payments to owners.--Pursuant to the contracts entered 
        into under subsection (a), public housing agencies may enter 
        into contracts to make assistance payments to owners, and such 
        contracts shall include any terms and conditions required by 
        the Secretary.
    (c) Tenant-Based Assistance to Continue.--Any family that is 
receiving tenant-based homeownership assistance under section 8(y) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(y)) shall 
continue to receive such assistance, subject to the terms and 
conditions of the United States Housing Act of 1937, as that Act was in 
effect on the day before the date of enactment of this Act, from 
amounts made available for assistance under this title.
    (d) Housing Assistance Under Project-Based Voucher Program to 
Continue.--Any units covered by a housing assistance payments contract 
on the day before the date of enactment of this Act under the project-
based voucher program or project-based certificate program under 
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) 
shall continue to receive assistance subject to the terms and 
conditions of that contract, from amounts made available for assistance 
under this title.

SEC. 105. ELDERLY FAMILIES AND DISABLED FAMILIES.

    (a) Existing Tenants.--Notwithstanding any other provision of this 
title, elderly families and disabled families, as such terms were 
defined under section 3(b)(3)(B) the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)(3)(B)) immediately prior to the date of enactment 
of this title, who were receiving assistance under section 8 (o) or (t) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o), (t)) as 
in effect on the day prior to the date of enactment of this title, 
shall be treated in accordance with the immediately above-referenced 
sections until January 1, 2009.
    (b) New Admissions.--Notwithstanding any other provision of this 
title, except as provided in subsection (d), elderly families and 
disabled families not meeting the requirements of subsection (a), shall 
also be treated in accordance with section 8 (o) or (t) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o), (t)) as in effect on 
the day prior to the date of enactment of this title, until January 1, 
2009.
    (c) Public Housing Agency Policies.--Notwithstanding any other 
provision of this title, a public housing agency receiving a grant 
under section 104 shall, by January 1, 2009, have implemented a policy 
to ensure that the needs of elderly families and disabled families 
described under subsections (a) and (b) are addressed by a policy to be 
determined by the public housing agency as they relate to, among other 
things, eligibility and rent.
    (d) Early Implementation.--A public housing agency that has 
implemented the policy described in subsection (c) before January 1, 
2009, shall administer assistance for elderly families and disabled 
families first receiving a grant under section 104 after the effective 
date of such policy in accordance with such policy.

SEC. 106. PERFORMANCE STANDARDS.

    (a) Performance Standards and Evaluation.--The Secretary shall 
establish performance standards and a performance assessment system for 
public housing agencies receiving grants under this title to maximize 
the benefits of such assistance.
    (b) General Reports.--In developing a performance assessment system 
or in evaluating the performance of a public housing agency, the 
Secretary may require the public housing agency to provide and report 
information including--
            (1) the number of households and persons in such households 
        receiving assistance under this title, including--
                    (A) the number of families with children;
                    (B) the number of elderly families;
                    (C) the number of disabled families; and
                    (D) for each family, general demographic 
                information and income levels;
            (2) the actual subsidy per family and value of assistance 
        under this title received per family;
            (3) administrative costs incurred by a public housing 
        agency in fulfilling its responsibilities under this title; and
            (4) other information as the Secretary may prescribe.
    (c) Public Housing Agency Reports.--Not less frequently than once 
every 12 months, the Secretary shall require each public housing agency 
to provide to the public on the Internet the reports required under 
subsection (a) in a form and manner acceptable to the Secretary.
    (d) Alternative Administration.--
            (1) Troubled programs.--A public housing agency operating a 
        program under section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f) that the Secretary has designated as 
        troubled under a performance evaluation system for the housing 
        choice voucher program, or a public housing program that the 
        Secretary has found to be troubled under section 6(j) of the 
        United States Housing Act of 1937 (42 U.S.C. 1436d(j)) for the 
        first full fiscal year after the date of enactment of this 
        title--
                    (A) shall not implement the provisions of sections 
                107, 109, or 112, unless approved by the Secretary; and
                    (B) may implement the provision of any section of 
                this title not specifically cited in subparagraph (A).
            (2) Failing score.--If any public housing agency receives a 
        failing score under the performance evaluation system 
        implemented pursuant to subsection (a), the Secretary shall 
        determine how to best administer the grant, which may include--
                    (A) administration of such grant by 1 or more other 
                public housing agencies or other entities;
                    (B) appointment of a receiver to manage the grant; 
                or
                    (C) setting a specific deadline for improvement, if 
                the Secretary determines that significant improvements 
                can be made expeditiously.
            (3) Applicability.--All provisions applicable to public 
        housing agencies administering funds under this title shall be 
        applicable to such other public housing agencies or other 
        entities as are designated by the Secretary pursuant to 
        paragraph (2)(A).

SEC. 107. ELIGIBLE FAMILIES.

    (a) Initial Eligibility.--Subject to subsection (c), to be eligible 
to receive tenant-based rental or tenant-based homeownership assistance 
under this title, a family shall--
            (1) not own a significant interest in any real property;
            (2) not have assets exceeding an amount established by the 
        Secretary; and
            (3) have a gross income that does not exceed 80 percent of 
        the median income for the area, as determined by the Secretary 
        in a manner consistent with income limits established for other 
        Department of Housing and Urban Development programs, with 
        adjustments for smaller or larger families and areas of 
        unusually high or low income.
    (b) Continued Eligibility.--Subject to subsections (f) and (g), 
continued eligibility for housing assistance pursuant to this title 
shall be determined in accordance with standards established by the 
Secretary and the public housing agency, except that families with 
incomes above 80 percent of area median income shall not be eligible 
for continued assistance.
    (c) Other Requirements.--
            (1) 90 percent test.--Not fewer than 90 percent of the 
        families selected during any 1-year period for assistance under 
        this title shall 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 and 
        areas of unusually high or low income.
            (2) Additional requirement.--The Secretary or a public 
        housing agency may establish other eligibility requirements for 
        assistance under this title.
    (d) Term Limits.--
            (1) Assistance limits.--Subject to paragraph (2), and 
        beginning on January 1, 2008, a public housing agency may 
        establish term limits to determine the maximum amount of time 
        during which a family may receive assistance under this title.
            (2) Guidelines for term limits.--Term limits established 
        under paragraph (1)--
                    (A) shall not apply to elderly and disabled 
                families; and
                    (B) shall set a minimum term limit for families 
                receiving rental assistance at 5 years.
    (e) Preferences and Nondiscrimination.--
            (1) System for housing assistance.--
                    (A) In general.--Each public housing agency 
                receiving a grant pursuant to this title shall 
                establish a system for making housing assistance 
                pursuant to this title available to eligible families.
                    (B) Requirements of system.--A system required 
                under subparagraph (A) may include preferences for 
                certain eligible populations identified by the public 
                housing agency.
                    (C) Disability preference.--Notwithstanding any 
                other provisions of law, in providing assistance under 
                this title a public housing agency may establish a 
                preference for persons with a specific disability.
            (2) Nondiscrimination provision.--No person in the United 
        States shall, on the grounds of race, color, national origin, 
        religion, or sex, be excluded from participation in, be denied 
        the benefits of, or be subjected to discrimination under any 
        program or activity funded in whole or in part with funds made 
        available under this title.
    (f) Review of Family Income.--
            (1) In general.--Not less frequently than once every 2 
        years, each public housing agency administering a housing 
        assistance grant pursuant to this title shall conduct a review 
        of the family income of each family receiving assistance under 
        this title to determine the continued eligibility of that 
        family to receive assistance under this title.
            (2) Elderly or disabled family exception.--Notwithstanding 
        paragraph (1), not less frequently than once every 3 years, 
        each public housing agency shall review the income of each 
        elderly family and each disabled family receiving assistance 
        under this title to determine the continued eligibility of that 
        family to receive assistance under this title.
    (g) Termination for Criminal Activity and Alcohol Abuse and 
Selection of Tenants.--
            (1) Termination of assistance.--Notwithstanding any other 
        provision of law, a public housing agency may deny assistance 
        under this title based on the actions by a family member, and 
        may terminate assistance under this title based on actions by a 
        family member, or any guest or other person under the family's 
        control, if the public housing agency determines that the 
        family member or other person engages in or has engaged in 
        any--
                    (A) criminal activity (including violent criminal 
                activity and drug-related criminal activity) on or off 
                the premises;
                    (B) alcohol abuse (or pattern of abuse) that 
                threatens the health, safety, or right to peaceful 
                enjoyment of the premises by other tenants;
                    (C) parole violation, probation violation, or 
                flight to avoid prosecution, custody, or confinement 
                after conviction; or
                    (D) such other acts that subject the person to a 
                lifetime registration requirement under a State sex 
                offender registration program.
            (2) General termination provisions.--Each contract between 
        a public housing agency and an owner to make assistance 
        payments under this title shall provide that, during the term 
        of the lease, the owner may not terminate the tenancy except 
        for serious or repeated violations of the terms and conditions 
        of the lease, for violation of applicable Federal, State, and 
        local law, in accordance with this title, or for other good 
        cause.
            (3) Specific causes for termination.--
                    (A) In general.--Each contract between a public 
                housing agency and an owner to make assistance payments 
                under this title shall provide that, during the term of 
                the lease, the circumstances described in subparagraph 
                (B) shall be cause for termination of tenancy by the 
                owner, if the owner determines that the tenant of a 
                unit, any member of the tenant's household, or any 
                guest or other person under the tenant's control 
                engages in or has engaged in any activities described 
                in subparagraph (B).
                    (B) Prohibited activities.--Activities described in 
                this subparagraph are--
                            (i) violent criminal activity or drug-
                        related criminal activity, on or off the 
                        premises;
                            (ii) other criminal activity that threatens 
                        the health, safety, or right to peaceful 
                        enjoyment of the premises by other tenants, or 
                        the right to peaceful enjoyment of their 
                        residences by persons residing in the immediate 
                        vicinity of the premises;
                            (iii) alcohol abuse (or pattern of abuse) 
                        that threatens the health, safety, or right to 
                        peaceful enjoyment of the premises by other 
                        tenants;
                            (iv) parole violation, probation violation, 
                        or flight to avoid prosecution, custody, or 
                        confinement after conviction; or
                            (v) such other acts that subject the person 
                        to a lifetime registration requirement under a 
                        State sex offender registration program.
            (4) Additional termination provisions.--A public housing 
        agency may deny or terminate assistance under this title, and 
        the owner may terminate tenancy for reasons other than the 
        reasons specified in paragraph (3), as specified in an 
        agreement or contract or as prescribed by the Secretary.
            (5) Selection of tenants.--After the eligibility of a 
        family is determined in accordance with this section, the 
        selection of a tenant shall be the function of the owner.
    (h) Selection of Families.--In selecting families for the provision 
of assistance under this title, a public housing agency may not exclude 
or penalize a family solely because the family resides in a public 
housing project, subject to the normal and customary procedures of the 
public housing agency.

SEC. 108. ELIGIBLE ACTIVITIES.

    (a) In General.--Eligible activities under this title include--
            (1) tenant-based rental assistance, including pad rentals;
            (2) project-based rental assistance under subsection (b);
            (3) tenant-based homeownership assistance for first-time 
        homebuyers under subsection (c);
            (4) self-sufficiency programs under section 114, including 
        self-sufficiency escrow savings accounts deposits;
            (5) costs of administering grant amounts under this title;
            (6) costs of other activities, as specified by the 
        Secretary, in support of tenant-based rental assistance, 
        project-based rental assistance, tenant-based homeownership 
        assistance, and self-sufficiency coordinators authorized under 
        this title; and
            (7) amounts to be used by the Secretary for purposes of 
        program evaluation, management information systems, and 
        technical assistance.
    (b) Project-Based Rental Assistance.--
            (1) In general.--A public housing agency may use amounts 
        provided under this title to enter into a project-based housing 
        assistance payments contract with respect to eligible units for 
        up to 10 years, subject to the availability of appropriations 
        and to compliance with the inspection requirements under 
        section 112(b).
            (2) Extensions.--At the expiration of a contract entered 
        into under paragraph (1), a public housing agency may extend 
        the term of the contract if the housing continues to meet the 
        housing quality standards under section 112(b) and such other 
        requirements as that public housing agency may prescribe.
            (3) Percentage limitations.--
                    (A) Attached structures.--Not more than 20 percent 
                of the funding made available to the public housing 
                agency under this title may be attached to structures 
                pursuant to this subsection.
                    (B) Project-based housing assistance.--Not more 
                than 25 percent of the dwelling units in any building 
                may be assisted under a project-based housing 
                assistance payments contract, except for--
                            (i) housing consisting of single-family 
                        properties; or
                            (ii) dwelling units that are specifically 
                        made available for households comprised of 
                        elderly families, disabled families, and 
                        families receiving supportive services.
            (4) Option of tenant-based assistance.--
                    (A) Relocation.--Each low-income family occupying a 
                dwelling unit assisted under a project-based voucher 
                contract may relocate and continue to receive 
                assistance under this title so long as the family has 
                occupied the assisted dwelling unit for 12 months and 
                relocates within the jurisdiction of the public housing 
                agency wherein it currently resides.
                    (B) Comparable assistance.--Except as provided in 
                subparagraphs (C) and (D), upon such a move to a unit 
                that meets Federal and local requirements, including 
                housing quality standards, the public housing agency 
                shall provide the low-income family with tenant-based 
                rental assistance under this title or such other 
                tenant-based rental assistance that is comparable.
                    (C) Limitation.--In providing assistance under 
                subparagraph (B), the public housing agency shall not 
                be required to provide housing assistance in an amount 
                higher than the assistance provided to the low-income 
                family prior to the relocation under subparagraph (A).
                    (D) If assistance not available.--If tenant-based 
                rental assistance is not immediately available to 
                fulfill this requirement, the public housing agency 
                shall provide the family with the next available 
                tenant-based rental voucher or other tenant-based 
                rental assistance amounts that become available.
            (5) Payment for vacant units.--
                    (A) In general.--The public housing agency may 
                continue to provide assistance under the project-based 
                contract, for a reasonable period not exceeding 60 
                days, for a dwelling unit that becomes vacant, but only 
                if--
                            (i) the vacancy was not the fault of the 
                        owner of the dwelling unit; and
                            (ii) the owner takes every reasonable 
                        action to minimize the likelihood and extent of 
                        any such vacancy.
                    (B) No assistance after expiration of 60-day 
                period.--Project-based rental assistance may not be 
                provided for a vacant unit after the expiration of the 
                60-day period described in subparagraph (A).
    (c) Homeownership Assistance for First-Time Homebuyers.--
            (1) In general.--A public housing agency may provide 
        tenant-based homeownership assistance and downpayment 
        assistance under this title to assist a first-time homebuyer 
        that purchases a home.
            (2) Family eligibility.--In order to receive tenant-based 
        homeownership assistance or downpayment assistance under this 
        title, a family shall--
                    (A) qualify as a first-time homebuyer;
                    (B) participate in a homeownership counseling 
                program; and
                    (C) meet any other initial or continuing 
                requirements established by the public housing agency.
            (3) Purchase agreement.--A recipient of tenant-based 
        homeownership assistance or downpayment assistance may enter 
        into a purchase agreement for a home whether constructed, under 
        construction, or proposed.
            (4) Downpayment assistance.--
                    (A) In general.--Subject to the provisions of this 
                paragraph, a public housing agency may, in lieu of 
                providing tenant-based homeownership assistance to a 
                family under this subsection, provide downpayment 
                assistance under this title for a family that has 
                received a rental subsidy administered by the Secretary 
                for a period of not less than 12 months prior to the 
                date of receipt of downpayment assistance.
                    (B) Grant requirements.--A downpayment assistance 
                grant under subparagraph (A)--
                            (i) shall be in the form of a single one-
                        time grant to be used only as a contribution 
                        toward the downpayment and reasonable and 
                        customary closing costs required in connection 
                        with the purchase of a home; and
                            (ii) may not exceed $10,000.
                    (C) No effect on obtaining outside sources for 
                downpayment assistance.--This title may not be 
                construed to prohibit a public housing agency from 
                providing downpayment assistance to families from 
                sources other than a grant provided under this title, 
                or as determined by the public housing agency.

SEC. 109. AMOUNT OF ASSISTANCE.

    (a) In General.--In accordance with the provisions of this section, 
each public housing agency administering assistance under this title 
shall determine the amount of any monthly assistance payment for a 
family.
    (b) Rent Structures.--In fulfilling its requirements under this 
section, a public housing agency may establish--
            (1) a rent structure in which a family pays a flat amount 
        of rent and such amount is adjusted on the basis of an annual 
        cost index;
            (2) an income-tiered rent structure in which the amount of 
        rent that a family is required to pay is set and distributed on 
        the basis of broad tiers of income, adjusted on the basis of an 
        annual cost index;
            (3) a rent structure in which the amount of rent that a 
        family is required to pay is based on a percentage of family 
        income;
            (4) a rent structure in which the amount of rent that a 
        family is required to pay is based on the provisions of 
        sections 3 and 8(o)(2) of the United States Housing Act of 1937 
        (42 U.S.C. 1437a and 1437f(o)(2)) as such sections existed 
        prior to the date of enactment of this title; or
            (5) any other rent structure that includes 1 or more of the 
        elements of the rent structures specified in this subsection.
    (c) Elderly and Disabled Families.--Notwithstanding subsection (b), 
elderly families and disabled families shall pay rent in accordance 
with the provisions of section 105.
    (d) Minimum Rental Amount.--A public housing agency shall establish 
a minimum monthly rental amount to be paid by each family assisted in 
accordance with this title.
    (e) Rent Reasonableness.--
            (1) In general.--The rent for dwelling units assisted under 
        this title shall be reasonable and appropriate in comparison 
        with rents charged for dwelling units of a modest nature and a 
        non-luxury standard in the private, unassisted local market.
            (2) Review.--Public housing agencies shall review rents not 
        less than annually to ensure that they meet the standard 
        described in paragraph (1).
    (f) Maximum Subsidy.--Public housing agencies shall establish 
maximum subsidy levels for housing assistance under this title that are 
reasonable and appropriate for the market area.

SEC. 110. ALLOCATION AND DISTRIBUTION OF FUNDS.

    (a) In General.--For purposes of administering assistance under 
this title, the Secretary shall allocate available amounts subject to 
appropriations as follows:
            (1) Interim formula for allocation of funds.--During the 
        fiscal years in which this title is being administered pursuant 
        to the Federal Register notice described in section 118(a), 
        each public housing agency may receive an amount proportionate 
        to its annual 2005 housing choice voucher program funding for 
        housing assistance and administrative expenses, adjusted for 
        inflation and subject to validation.
            (2) Permanent formula for allocation of funds.--In 
        accordance with the provisions of section 118(b)(2), the 
        Secretary shall establish a formula to allocate funding made 
        available by Congress under this title.
    (b) Amounts to Provide Tenant-Based Rental Assistance.--
            (1) In general.--The Secretary shall allocate amounts made 
        available from appropriations to public housing agencies for 
        tenant-based rental assistance as authorized by section 115.
            (2) Timing.--Additional tenant-based rental assistance 
        provided under paragraph (1) for a family shall be allocated 
        for 1 year.
            (3) Expiration.--After the expiration of the 1-year period 
        described in paragraph (2), any amounts not expended shall be 
        included in the subsequent grant to each public housing agency 
        under this title.

SEC. 111. ENVIRONMENTAL REVIEW.

    Notwithstanding any other provision of law, the National 
Environmental Protection Act (42 U.S.C. 4321 et seq.) shall not apply 
to activities authorized under this title.

SEC. 112. INSPECTION OF UNITS.

    (a) Inspection Required.--
            (1) In general.--The Secretary shall require that a public 
        housing agency administering rental assistance under this title 
        shall inspect each rental dwelling unit assisted pursuant to 
        this title not later than 60 days after the date of receipt of 
        the initial assistance payment to determine that the rental 
        dwelling unit meets the housing quality standards under 
        subsection (b).
            (2) Standards must be met.--Each rental dwelling unit shall 
        meet such standards in order to receive continued assistance 
        payments.
    (b) Housing Quality Standards.--Each rental dwelling unit assisted 
by a public housing agency under this title shall either meet the 
housing quality standards established by the Secretary or comparable 
housing quality standards that the Secretary has approved.
    (c)  Inspections.--
            (1) Maintenance requirement.--Each public housing agency 
        administering rental assistance under this title shall 
        determine that all occupied dwelling units assisted by such 
        public housing agency pursuant to this title are maintained in 
        accordance with the standards described under subsection (b).
            (2) Timing.--Each rental dwelling unit assisted by the 
        public housing agency under this title shall be inspected when 
        it is first leased, pursuant to subsection (a). Thereafter, 
        each public housing agency shall annually inspect at least 25 
        percent of all of its rental dwelling units assisted under this 
        title, and each such rental dwelling unit shall be inspected at 
        least once every 4 years.
    (d) Corrective Actions.--No further assistance payment may be made 
pursuant to this title for a rental dwelling unit which fails to meet 
the standards under subsections (b) or (c).

SEC. 113. ABILITY TO TRANSFER TENANT-BASED RENTAL ASSISTANCE.

    (a) State and Regional Transfer Agreements.--A public housing 
agency may enter into agreements with other public housing agencies 
within the same State or region in order to facilitate the ability of 
transfer-eligible families who wish to transfer their tenant-based 
rental assistance under this title to another jurisdiction within a 
State or region.
    (b) Regional Boundaries.--For the purpose of entering into 
agreements among public housing agencies within a proposed region 
pursuant to subsection (a), public housing agencies may establish 
regions and enter into regional agreements with other public housing 
agencies, except that the public housing agencies shall notify the 
Secretary of any proposed regional boundaries encompassing more than 1 
State or the District of Columbia prior to the execution of any such 
agreement, and the boundaries may be implemented only if the Secretary 
does not object, not later than 60 days after the date of notification 
to the Secretary.
    (c) Procedures.--The Secretary may establish procedures to transfer 
funding between public housing agencies in order to phase out and 
eliminate previous portability billing arrangements among public 
housing agencies under section 8(r)(3) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(r)(3)) as in effect on the day prior to the 
date of enactment of this title.

SEC. 114. SELF-SUFFICIENCY.

    (a) Self-Sufficiency.--Subject to the provisions of this section, a 
public housing agency may develop a local self-sufficiency initiative 
accessing public and private resources to enable families to achieve 
economic independence and homeownership.
    (b) Eligible Activities.--A public housing agency may use funds 
made available under this title for a self-sufficiency initiative 
authorized by subsection (a) only--
            (1) to provide housing assistance;
            (2) to employ self-sufficiency coordinators; and
            (3) to establish and maintain a special escrow account 
        incentive.
    (c) Requirements.--A public housing agency may establish 
requirements for participating families and terminate or withhold 
assistance under this title if families fail to comply, without good 
cause, with any such requirements.

SEC. 115. TERMINATION OF RENTAL ASSISTANCE CONTRACTS AND RELATED 
              TRANSACTIONS.

    (a) Enhanced Voucher Assistance.--
            (1) In general.--Except as provided in subsection (b), 
        families affected by an eligibility event shall receive 
        enhanced voucher assistance under this subsection.
            (2) Scope of enhanced voucher assistance.--Enhanced voucher 
        assistance shall be tenant-based rental assistance under this 
        title, except that a family shall--
                    (A) pay as rent not less than the amount that the 
                family was paying on the date of the eligibility event;
                    (B) be allowed to remain in the rental housing 
                project in which they were residing for 12 months; and
                    (C) have its housing assistance calculated in 
                accordance with the provisions of section 109 if the 
                family moves out of the housing project.
            (3) Amount of rental assistance.--If a family elects to 
        remain in the same housing project under paragraph (2)(A), and 
        if the rent for the dwelling unit in the housing project 
        exceeds the maximum subsidy level established by the public 
        housing agency, the maximum subsidy level used to calculate the 
        enhanced voucher shall equal the rent for the dwelling unit, 
        subject to the rent reasonableness requirements of section 
        109(e) and any other reasonable limit prescribed by the 
        Secretary.
            (4) Tenant-based rental assistance.--After 12 months of 
        receiving assistance under subsection (a), affected families 
        shall receive tenant-based rental assistance calculated in 
        accordance with section 109 in lieu of the assistance under 
        subsection (a).

SEC. 116. FAILURE TO PERFORM.

    (a) Monitoring.--The Secretary shall make such reviews and audits 
as may be necessary or appropriate to determine whether--
            (1) each public housing agency has carried out the 
        activities and objectives of this title, including all 
        certifications, in accordance with the requirements of this 
        title and other applicable laws;
            (2) it has the continuing capacity to undertake such 
        activities and objectives in a timely and effective manner; and
            (3) whether it has met the performance standards 
        established by the Secretary pursuant to section 106(a).
    (b) Enforcement.--In addition to any other actions authorized under 
this or any other applicable law, if the Secretary finds that a public 
housing agency receiving assistance under this title has failed to 
comply with any provision of this title, including any performance 
standard established by the Secretary pursuant to this title, and until 
the Secretary is satisfied that there is no longer any such failure to 
comply, the Secretary may--
            (1) terminate payments under this title to the public 
        housing agency and provide for alternative administration of 
        such amounts;
            (2) withhold from the public housing agency amounts from 
        the total allocation that would otherwise be available to the 
        public housing agency under this title;
            (3) reduce the amount of future grants to the public 
        housing agency by an amount equal to the amount of such grants 
        that were not expended in accordance with this title;
            (4) limit the availability of amounts provided to the 
        public housing agency to programs and activities under this 
        title not affected by such failure to comply;
            (5) withhold from the public housing agency other amounts 
        allocated for the public housing agency under other programs 
        administered by the Secretary;
            (6) require such changes in public housing agency policy or 
        management practices, consistent with other provisions of this 
        title, as determined necessary to ensure compliance;
            (7) refer any such failure to comply, as appropriate, to 
        Federal, State, or local enforcement agencies for appropriate 
        action;
            (8) impose civil money penalties, except that a public 
        housing agency shall not pay a civil money penalty imposed 
        under this paragraph from a grant received under section 103; 
        or
            (9) take any combination of the actions described in 
        paragraphs (1) through (8), as appropriate.

SEC. 117. ADMINISTRATIVE AND SPECIAL ADMINISTRATIVE FEES.

    (a) Administrative Fees.--In each fiscal year, the Secretary shall 
pay an administrative fee to each public housing agency administering a 
program under this title.
    (b) Special Administrative Fees.--Of amounts made available under 
this title for administrative fees, the Secretary may retain up to 5 
percent for allocation as special administrative fees to public housing 
agencies for non-routine expenses.
    (c) Interim Allocation of Administrative Fees.--During the period 
in which this title is being administered pursuant to the Federal 
Register notice described in section 118(a), the Secretary shall 
allocate administrative fees to public housing agencies on a pro rata 
basis, based upon the amount that each public housing agency received 
under the pro rata distribution method in fiscal year 2005.
    (d) Permanent Allocation of Administrative Fees.--In the final rule 
described in section 118(b)(2), the Secretary shall establish a formula 
for distributing administrative fees for the administration of this 
title.

SEC. 118. IMPLEMENTATION.

    (a) Interim Implementation.--Notwithstanding any other provision of 
law, the Secretary shall publish a notice in the Federal Register not 
later than 90 days after the date of enactment of this title describing 
the immediate implementation of this title on an interim basis.
    (b) Final Implementation.--
            (1) Rules.--The Secretary shall, not later than 18 months 
        after the date of enactment of this title, issue a final rule 
        for the purpose of implementation of this title, other than 
        sections 110(a)(2) and 117(d).
            (2) Rules issued under negotiated rulemaking procedures.--
        For the purpose of final implementation of sections 110(a)(2) 
        and 117(d), the Secretary shall issue 1 or more proposed rules 
        developed under the negotiated rulemaking procedure under 
        subchapter III of chapter 5 of title 5, United States Code.
            (3) Rules shall be issued within 24 months.--One or more 
        final rules implementing sections 110(a)(2), and 117(d) shall 
        be issued not later than 24 months after the date of enactment 
        of this title.

SEC. 119. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this title for each of fiscal 
years 2006 through 2011.

SEC. 120. CONFORMING AMENDMENTS.

    (a) Public Housing Agency Organization.--Section 2 of the United 
States Housing Act of 1937 (42 U.S.C. 1437) is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(C) that is administering a program under section 
                8 of this Act.''; and
            (2) in subsection (b)(3), by striking ``or status as 
        assisted housing under section 8''.
    (b) Rental Payments.--Section 3 of the United States Housing Act of 
1937 (42 U.S.C. 1437a) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``(other than a family assisted 
                under section 8(o) or (y) or paying rent under section 
                8(c)(3)(B))''; and
                    (B) by inserting ``section 3A of this Act and'' 
                after ``Except as provided in'';
            (2) in subsection (a)(3)(A), by striking ``(o)(2)'';
            (3) in subsection (b)(6)--
                    (A) by striking ``(a) in general.--Except as 
                provided in subparagraph (B), the term'' and inserting 
                ``The term''; and
                    (B) by striking subparagraph (B); and
            (4) in subsection (f)(2)--
                    (A) in subparagraph (A), by inserting ``and'' after 
                the semicolon;
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
    (c) Contributions for Lower Income Housing Projects.--Section 5(c) 
of the United States Housing Act of 1937 (42 U.S.C. 1437c(c)) is 
amended by striking paragraphs (6) through (8).
    (d) Public Housing Agency Plans.--Section 5A of the United States 
Housing Act of 1937 (42 U.S.C. 1437c-1) is amended--
            (1) in subsection (a)(1), by inserting ``administering 
        programs under this Act'' after ``public housing agency'' the 
        first place it appears;
            (2) in subsection (b)(1), by striking ``8(o) or'';
            (3) in subsection (d)--
                    (A) in paragraph (3), by striking ``and housing 
                assistance under section 8(o)'';
                    (B) in paragraph (4), by striking ``and rental 
                contributions of families assisted under section 
                8(o)'';
                    (C) in paragraph (10)(A), by striking ``to tenant-
                based assistance'' and
                    (D) in paragraph (11), by striking ``under section 
                8(y) or''; and
            (4) in subsection (k)--
                    (A) in subparagraph (A), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (C).
    (e) Contract Provisions.--Section 6(q)(8)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(q)(8)(B)) is amended--
            (1) in clause (i), by inserting ``and'' after the 
        semicolon;
            (2) in clause (ii), by striking ``; and'' and inserting a 
        period; and
            (3) by striking clause (iii).
    (f) Designated Housing for Elderly and Disabled Families.--Section 
7(c)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437e(c)(2)) is amended by striking ``tenant-based rental assistance 
under section 8'' and inserting ``assistance under the Flexible Voucher 
Act of 2005''.
    (g) Lower Income Housing Assistance.--Section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``(1) In 
                general.--'' ; and
                    (B) by striking paragraph (2);
            (2) in subsection (p), by striking ``existing housing and 
        moderate rehabilitation programs''; and inserting ``moderate 
        rehabilitation program'';
            (3) in subsection (q)--
                    (A) by striking paragraphs (2) through (4)
                    (B) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``tenant-based 
                                assistance, certificate, voucher, 
                                and''; and
                                    (II) by striking ``rehabilitation 
                                programs'' and inserting 
                                ``rehabilitation program'';
                            (ii) by striking subparagraph (B);
                            (iii) by redesignating subparagraphs (C) as 
                        subparagraph (B); and
                            (iv) by redesignating subparagraphs (D) and 
                        (E) as paragraphs (2) and (3), respectively, 
                        and moving the margins 2 ems to the left.
            (4) in subsection (z)--
                    (A) in paragraph (1)(A)--
                            (i) in the subparagraph heading, by 
                        striking ``Tenant-based Assistance'' and 
                        inserting ``Voucher Program Assistance''; and
                            (ii) by striking ``tenant-based 
                        assistance'' and inserting ``assistance under 
                        the Flexible Voucher Act of 2005''; and
                    (B) in paragraph (2)--
                            (i) by striking ``tenant - or''; and
                            (ii) by striking the last sentence; and
            (5) by striking subsections (o), (r), (s), (t), (u), (x), 
        (y), and (dd).
    (h) Eligibility for Assisted Housing.--Section 16 of the United 
States Housing Act of 1937 (42 U.S.C. 1437n) is amended--
            (1) in subsection (a), by striking paragraph (4);
            (2) by striking subsection (b); and
            (3) by redesignating subsections (c), (d), and (f) as 
        subsections (b), (c), and (d), respectively.
    (i) Demolition and Disposition of Housing.--Section 
18(a)(4)(A)(iii)(III)(aa) of the United States Housing Act of 1937 (42 
U.S.C. 1437p(a)(4)(A)(iii)(III)(aa)) is amended by striking ``tenant-
based assistance'' and inserting ``assistance under the Flexible 
Voucher Act of 2005''.
    (j) Conversion of Public Housing to Vouchers.--Section 22 of the 
United States Housing Act of 1937 (42 U.S.C. 1437t) is amended--
            (1) in subsection (a), by striking ``tenant-based 
        assistance'' and inserting ``assistance under the Flexible 
        Voucher Act of 2005'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``tenant-based 
                assistance under section 8'' and by inserting 
                ``assistance under the Flexible Voucher Act of 2005'';
                    (B) in subparagraph (C), by striking ``tenant-based 
                assistance under section 8'' each place that term 
                appears and inserting ``assistance under the Flexible 
                Voucher Act of 2005'';
                    (C) in subparagraph (D), by striking ``tenant-based 
                assistance'' and inserting ``assistance under the 
                Flexible Voucher Act of 2005''; and
                    (D) in subparagraph (E), by striking ``tenant-based 
                assistance'' and inserting ``assistance under the 
                Flexible Voucher Act of 2005'';
            (3) in subsection (c), by striking ``tenant-based 
        assistance'' and inserting ``assistance under the Flexible 
        Voucher Act of 2005''; and
            (4) in subsection (d)--
                    (A) by striking ``tenant-based assistance'' and 
                inserting ``assistance under the Flexible Voucher Act 
                of 2005''; and
                    (B) in paragraph (4)(A)(ii)(III)(aa), by striking 
                ``tenant-based assistance'' each place that term 
                appears and inserting ``assistance under the Flexible 
                Voucher Act of 2005''; and
            (5) by striking subsection (f).
    (k) Family Self-Sufficiency Program.--Section 23 of the United 
States Housing Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) in subsection (a), by striking ``and assistance under 
        the certificate and voucher programs under section 8'';
            (2) in subsection (b)--
                    (A) in paragraph (4)(A), by striking ``receives 
                incremental assistance under subsection (b) or (o) of 
                section 8 or that''; and
                    (B) by striking paragraph (5);
            (3) in subsection (c)--
                    (A) in paragraph (1), in the first sentence, by 
                striking ``receiving assistance under the certificate 
                and voucher programs of the public housing agency under 
                section 8 or'';
                    (B) in paragraph (1), in the third sentence, by 
                striking ``under section 8''; and
                    (C) in paragraph (2), in the second sentence, by 
                striking ``receiving assistance under section 8 or'';
            (4) in subsection (d)--
                    (A) in paragraph (1), in the first sentence, by 
                striking ``or dwelling unit assisted under section 8''; 
                and
                    (B) in paragraph (1), in the third sentence, by 
                striking ``or housing assisted under section 8'';
            (5) in subsection (h)--
                    (A) by striking the subsection heading and 
                inserting the following: ``Performance Funding 
                System.-- '';
                    (B) by striking paragraph (1); and
                    (C) in paragraph (2), by striking ``(2) Performance 
                funding system.--'';
            (6) in subsection (i)(1), by striking ``budget authority 
        for certificate and voucher assistance under section 8 and''; 
        and,
            (7) in subsection (n)(5), by striking ``or housing assisted 
        under section 8''.
    (l) Tenant-Based Assistance Grants for Projects.--Section 24 of the 
United States Housing Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) in the section heading--
                    (A) by inserting ``and'' after ``revitalization,''; 
                and
                    (B) by striking ``, and tenant-based assistance'';
            (2) in subsection (c)(3), by striking ``tenant-based 
        assistance under section 8'' and inserting ``assistance under 
        the Flexible Voucher Act of 2005'';
            (3) in subsection (d)(1)(J), by striking ``section 8'' and 
        inserting ``the Flexible Voucher Act of 2005'';
            (4) in subsection (e)--
                    (A) in paragraph (2)(F), by striking ``tenant'' and 
                inserting ``project''; and
                    (B) in paragraph (3), by striking ``, tenant-based 
                assistance only,'' and inserting ``assistance under the 
                Flexible Voucher Act of 2005 only''; and
            (5) in subsection (j)(2)(B), by striking ``(other than 
        tenant-based assistance)'' and inserting ``(other than 
        assistance under the Flexible Voucher Act of 2005)''.
    (m) Conversion of Distressed Public Housing.--Section 33 of the 
United States Housing Act of 1937 (42 U.S.C. 1437z-5) is amended--
            (1) in the section heading by striking ``tenant-based 
        assistance'' and inserting ``assistance under the flexible 
        voucher act of 2005'';
            (2) in subsection (a)(3)(B), by striking ``tenant-based 
        assistance under section 8'' and inserting ``assistance under 
        the Flexible Voucher Act of 2005, if specific appropriations 
        are available for such purpose,'';
            (3) in subsection (d), in the subsection heading, by 
        striking ``Tenant-Based Assistance'' and inserting ``Assistance 
        Under the Flexible Voucher Act of 2005''; and
            (4) in subsection (d)(2)(A)(ii)(II)(aa), by striking 
        ``tenant-based assistance'' both places where it appears and 
        inserting ``assistance under the Flexible Voucher Act of 
        2005''.
    (n) Local Housing Assistance Plan.--Section 213 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 1439) is amended--
            (1) in subsection (d)(1)(A)--
                    (A) in clause (i)--
                            (i) by striking ``(i)''; and
                            (ii) in the last sentence--
                                    (I) by striking ``tenant-based'' 
                                and inserting ``project-based''; and
                                    (II) by striking ``(o)''; and
                    (B) by striking clause (ii); and
            (2) by striking subsection (e).

      TITLE II--PUBLIC HOUSING RENT FLEXIBILITY AND SIMPLIFICATION

SEC. 201. SHORT TITLE.

     This title may be cited as the ``Public Housing Rent Flexibility 
and Simplification Act of 2005''.

SEC. 202. PUBLIC HOUSING RENT FLEXIBILITY AND SIMPLIFICATION.

    (a) In General.--Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a), as amended by section 120, is amended--
            (1) in subsection (a)--
                    (A) by striking ``(1) Dwelling units'' and that 
                follows through ``(3), a family'' and inserting ``A 
                family''; and
                    (B) by striking paragraphs (2), (3), (4), and (5);
            (2) in subsection (b)(5)--
                    (A) in subparagraph (A), by striking ``(A)''; and
                    (B) by striking subparagraph (B); and
            (3) in subsection (d)(3), by amending subparagraph (A) to 
        read as follows:
                    ``(A) that receives assistance under section 8; 
                and''.
    (b) Public Housing Rental Payments.--The United States Housing Act 
of 1937 is amended by inserting after section 3 (42 U.S.C. 1437a) the 
following new section:

``SEC. 3A. PUBLIC HOUSING RENTAL PAYMENTS.

    ``(a) Rent Structure and Occupancy.--
            ``(1) In general.--Public housing dwelling units assisted 
        under this Act shall be rented only to and occupied by low-
        income families that do not own a significant interest in real 
        property and do not have assets exceeding an amount established 
        by the Secretary at the time of their initial occupancy of such 
        units.
            ``(2) Review.--Not less frequently than once every 2 years, 
        each public housing dwelling unit receiving assistance under 
        this Act shall conduct a review of the family income of each 
        family occupying such unit to determine the continued 
        eligibility of that family to occupy such unit.
            ``(3) Elderly or disabled family exception.--
        Notwithstanding paragraph (1), not less frequently than once 
        every 3 years, each public housing dwelling unit receiving 
        assistance under this Act shall conduct a review of the income 
        of each elderly family or disabled family occupying such unit 
        to determine the continued eligibility of that family to occupy 
        such unit.
            ``(4) Rental payments for public housing families and rent 
        structure.--
                    ``(A) In general.--In accordance with the 
                provisions of this section, public housing agencies 
                shall determine the amount of any monthly rent for a 
                family with respect to a public housing dwelling unit 
                receiving assistance under this Act.
                    ``(B) Rent structure guidelines.--In fulfilling its 
                requirements under this section, a public housing 
                agency may establish--
                            ``(i) a rent structure in which the public 
                        housing agency establishes a flat amount of 
                        rent for each dwelling unit that it owns and 
                        operates, based on the rental value of the 
                        unit, as determined by the public housing 
                        agency, and in which such rent is adjusted on 
                        the basis of an annual cost index;
                            ``(ii) an income-tiered rent structure in 
                        which the amount of rent that a family is 
                        required to pay is set and distributed on the 
                        basis of broad tiers of income, and such tiers 
                        and rents are adjusted on the basis of an 
                        annual cost index, except that families 
                        entering public housing shall not be offered a 
                        rent that is lower than the rent corresponding 
                        to their income tier;
                            ``(iii) a rent structure in which the 
                        amount of rent that a family is required to pay 
                        is based on a percentage of family income;
                            ``(iv) a rent structure in which the amount 
                        of rent that a family is required to pay is 
                        based on the provisions of section 3, as such 
                        section was in effect on the day prior to the 
                        date of enactment of this section; or
                            ``(v) any other rent structure that 
                        includes 1 or more of the elements of the rent 
                        structures specified in this subparagraph.
                    ``(C) Elderly families and disabled families.--
                            ``(i) Existing tenants.--Notwithstanding 
                        any other provision of this Act, elderly 
                        families and disabled families, as such terms 
                        were used in this Act on the day prior to the 
                        date of enactment of this section, who were 
                        receiving assistance under section 3, as such 
                        section was in effect on the day prior to the 
                        date of enactment of this section, shall be 
                        treated in accordance with section 3 until 
                        January 1, 2009.
                            ``(ii) New admissions.--Notwithstanding any 
                        other provision of this Act, except as provided 
                        in clause (iv), elderly families and disabled 
                        families not meeting the requirements of clause 
                        (i) shall also be treated in accordance with 
                        section 3, as such section was in effect on the 
                        day prior to the date of enactment of this 
                        section, until January 1, 2009.
                            ``(iii) Public housing agency policies.--
                        Notwithstanding any other provision of this 
                        Act, a public housing agency providing 
                        assistance under this Act shall, by January 1, 
                        2009, have implemented a policy to ensure that 
                        the needs of elderly families and disabled 
                        families described under clauses (i) and (ii) 
                        are addressed by a policy determined by a 
                        public housing agency, as they relate to, among 
                        other things, eligibility and rent.
                            ``(iv) Early implementation.--A public 
                        housing agency that has implemented a policy 
                        described in clause (iii) before January 1, 
                        2009, shall administer assistance for elderly 
                        families and disabled families first receiving 
                        assistance under this Act after the effective 
                        date of such policy in accordance with such 
                        policy.
                    ``(D) Minimum rental amount.--Public housing 
                agencies shall establish a minimum monthly rental 
                amount to be paid by each family.
            ``(5) Occupancy by police officers.--
                    ``(A) Eligibility requirements waiver.--
                            ``(i) In general.--Subject to subparagraph 
                        (B) and notwithstanding any other provision of 
                        law, a public housing agency may, in accordance 
                        with the public housing agency plan for the 
                        agency, allow a police officer who is not 
                        otherwise eligible for residence in public 
                        housing to reside in a public housing dwelling 
                        unit.
                            ``(ii) Number and location.--The number and 
                        location of units occupied by police officers 
                        under this paragraph and the terms and 
                        conditions of their tenancies shall be 
                        determined by the public housing agency.
                    ``(B) Increased security.--A public housing agency 
                may take the actions authorized in subparagraph (A) 
                only for the purpose of increasing security for the 
                residents of a public housing project.
            ``(6) Occupancy by over-income families in certain public 
        housing.--
                    ``(A) Authority.--Notwithstanding any other 
                provision of law, a public housing agency that owns or 
                operates fewer than 250 public housing dwelling units 
                may, on a month-to-month basis, lease a dwelling unit 
                in a public housing project to an over-income family in 
                accordance with this paragraph, but only if--
                            ``(i) there are no eligible families 
                        applying for housing assistance from the public 
                        housing agency for that month; and
                            ``(ii) the agency provides not less than a 
                        30-day public notice of the availability of 
                        such assistance.
                    ``(B) Terms and conditions.--The number and 
                location of dwelling units of a public housing agency 
                occupied under this paragraph by over-income families, 
                and the terms and conditions of those tenancies, shall 
                be determined by the public housing agency, except 
                that--
                            ``(i) notwithstanding paragraph (2), rent 
                        for a unit shall be in an amount that is not 
                        less than the costs to operate the unit;
                            ``(ii) if an eligible family applies for 
                        residence after an over-income family moves in 
                        to the last available unit, the over-income 
                        family shall vacate the unit in accordance with 
                        notice of termination of tenancy provided by 
                        the agency, which shall be provided not less 
                        than 30 days before such termination; and
                            ``(iii) if a unit is vacant and there is no 
                        one on the waiting list, the public housing 
                        agency may allow an over-income family to gain 
                        immediate occupancy in the unit, while 
                        simultaneously providing reasonable public 
                        notice and outreach with regard to availability 
                        of the unit.
            ``(7) Escrow savings accounts.--
                    ``(A) In general.--A public housing agency may 
                establish escrow savings accounts for any family 
                residing in a public housing dwelling unit as an 
                incentive to encourage savings.
                    ``(B) Matching.--Escrow savings accounts may be 
                matched with any other public or private funds.
    ``(b) Definition of Terms Under This Section.--As used in this 
section, the following definitions shall apply:
            ``(1) Disabled family.--Except as otherwise provided in 
        law, the term `disabled family' means a family whose head, 
        spouse, or sole member is a person with disabilities, including 
        2 or more persons who are persons with disabilities living 
        together.
            ``(2) Elderly family.--Except as otherwise provided, the 
        term `elderly family' means a family whose head, spouse, or 
        sole member is a person who is at least 62 years of age, 
        including 2 or more persons who are at least 62 years of age 
        living together.
            ``(3) Family.--The term `family' means a person or group of 
        persons, as determined by the public housing agency, approved 
        to reside in a unit receiving assistance under this title.
            ``(4) Income.--The term `income' means income from all 
        sources of each member of the household without deductions or 
        exclusions, notwithstanding any other provisions of law, except 
        where a public housing agency has approved deductions or 
        exclusions.
            ``(5) Police officer.--The term `police officer' means any 
        person determined by a public housing agency to be, during the 
        period of residence of that person in public housing, employed 
        on a full-time basis as a duly licensed professional police 
        officer by a Federal, State, or local government or by any 
        agency thereof (including a public housing agency having an 
        accredited police force).
            ``(6) Public housing agency.--The term `public housing 
        agency' means--
                    ``(A) any State, county, municipality, or other 
                governmental entity or public body (or agency or 
                instrumentality thereof) which is authorized to engage 
                in or assist in the development or operation of low-
                income housing; or
                    ``(B) any other entity designated by the Secretary 
                to administer assistance under this title in 
                jurisdictions where--
                            ``(i) no public housing agency has been 
                        organized; or
            ``(7) Over-income family.--The term `over-income family' 
        means an individual or family that is not a low-income family.
    ``(c) Availability of Income Matching Information.--A public 
housing agency shall require any family residing in a public housing 
dwelling unit who receives information regarding income, earnings, 
wages, or unemployment compensation from the Department of Housing and 
Urban Development pursuant to income verification procedures of the 
Department to disclose such information, upon receipt of the 
information, to the public housing agency that owns or operates the 
public housing dwelling unit in which such family resides.''.
    (c) Technical and Conforming Amendments.--The United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 16(a) (42 U.S.C. 1437n), as amended by this 
        Act, by striking paragraph (3) and by redesignating paragraph 
        (4) as paragraph (3); and
            (2) in section 23 (42 U.S.C. 1437u)--
                    (A) by striking subsection (d) and inserting the 
                following:
    ``(d) Plan.--Each public housing agency carrying out a local 
program under this section shall establish a plan to offer incentives 
to families to encourage families to participate in the program.'';
                    (B) by striking subsection (e); and
                    (C) by redesignating subsections (f) through (o) as 
                subsections (e) through (n), respectively.

                   TITLE III--MOVING TO WORK PROGRAM

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Moving to Work Program Act of 
2005''.

SEC. 302. MOVING TO WORK PROGRAM.

     The United States Housing Act of 1937 (42 U.S.C. 1437) 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 
title 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 establish the Moving 
        to Work Program (in this title referred to as the `Program'), 
        in which public housing agencies meeting the eligibility 
        criteria under subsection (c) may participate.
            ``(2) Use of assistance.--Under the Program a public 
        housing agency may combine operating assistance provided under 
        section 9(e), modernization assistance provided under section 
        9(d), and assistance provided under the Flexible Voucher Act of 
        2005, to provide housing assistance for low-income families, 
        and services to facilitate the transition to work.
            ``(3) Authority of secretary.--
                    ``(A) Waiver.--Notwithstanding any other provision 
                of law, except as provided in subsection (e), the 
                Secretary may waive any provision of this Act with 
                respect to assistance under the Program under this 
                title.
                    ``(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), may 
                        provide for immediate implementation of such 
                        procedures.
    ``(c) Eligibility.--A public housing agency may submit an 
application, in such form as prescribed by the Secretary, under this 
title to participate in the Program if such public housing agency--
            ``(1) participates at the time of the submission in the 
        Moving to Work Demonstration established under section 101(e) 
        of the Departments of Veterans Affairs and Housing and Urban 
        Development, and independent Agencies Appropriations Act, 1996 
        (Public Law 104-134; 110 Stat. 1321-281; 42 U.S.C. 1437f note);
            ``(2) is designated at the time of submission as a high 
        performer under the applicable assessment systems that evaluate 
        a public housing agency's performance, if any, with respect to 
        its public housing and voucher programs;
            ``(3) manages at least 500 units of public housing pursuant 
        to contracts for annual contributions;
            ``(4) administers at least 500 vouchers under the Flexible 
        Voucher Act of 2005; or
            ``(5) meets other criteria as determined by the Secretary, 
        including the public housing agency's--
                    ``(A) demonstrated capacity to develop and manage a 
                successful Program;
                    ``(B) demonstrated compliance 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 of non-Federal resources, 
                including resources from the local community; and
                    ``(D) demonstrated commitment of units of local 
                government serving the areas within which the public 
                housing agency administers its Program, on removing 
                regulatory barriers to affordable housing.
    ``(d) 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, in accordance 
        with section 3A, which is designed to encourage employment and 
        self-sufficiency by participating families;
            ``(4) assure 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.
    ``(e) Applicability of Section 18 Provisions.--Section 18 shall 
continue to apply to public housing notwithstanding any use of the 
housing under the Program.
    ``(f) Effect on Section 8, Operating Subsidies, and Comprehensive 
Grant Program Allocations.--The amount of assistance received under 
section 8, section 9, or the Flexible Voucher Act of 2005, by a public 
housing agency participating in the Program shall, subject to 
appropriations, not be affected by its participation in the Program.
    ``(g) Effect on Current Participants in Moving to Work 
Demonstration.--Subject to such procedures and requirements as the 
Secretary may establish--
            ``(1) a public housing agency participating in the Moving 
        to Work Demonstration referred to in subsection (c)(1) may opt 
        out of the demonstration and the requirements governing the 
        demonstration, and continue to operate its demonstration as 
        part of the Program in accordance with the requirements of this 
        section; or
            ``(2) a public housing agency that will terminate its 
        participation in the Moving to Work Demonstration referred to 
        in subsection (c)(1) in 2005 or 2006 may renew and extend its 
        participation in the demonstration for an additional 3 years, 
        and may apply for participation in the Program at the end of 
        the 3-year period.
    ``(h) Evaluation of Performance.--
            ``(1) In general.--Subject to paragraph (2), a public 
        housing agency's performance in the Moving to Work 
        Demonstration referred to in subsection (c)(1) and the Program 
        under this section shall be assessed under the applicable 
        assessment systems that evaluate a public housing agency's 
        performance with respect to its public housing and voucher 
        programs, including section 6(j), for a period not to extend 
        beyond January 1, 2008, or under such other assessment systems 
        as may be designed by the Secretary to evaluate the Program.
            ``(2) 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, 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 this title.
                    ``(C) Standards.--Performance standards issued by 
                the Secretary under subparagraph (A) may include 
                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 for low-income 
                        families; and
                            ``(vi) any other performance goals that 
                        they 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 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 the 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.''.
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