I 

111TH CONGRESS 

2D SESSION H. R. 6468 

To authorize the Secretary of Housing and Urban Development to initiate 

a voluntary multi-year effort to transform properties with rental assistance contracts under various programs into properties with long-term, 

property-based, sustainable rental assistance contracts that include flexibility to address capital requirements, to enhance resident choice, and 

to streamline and simplify the administration of rental assistance. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 1, 2010 

Mr. ELLISON (for himself, Mr. AL GREEN of Texas, Ms. EDWARDS of Maryland, Mr. HIMES, and Mr. CLEAVER) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To authorize the Secretary of Housing and Urban Development to initiate a voluntary multi-year effort to transform properties with rental assistance contracts under 

various programs into properties with long-term, property-based, sustainable rental assistance contracts that 

include flexibility to address capital requirements, to enhance resident choice, and to streamline and simplify 

the administration of rental assistance. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Rental Housing Revitalization Act of 2010’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Conversion of rental assistance. 

Sec. 4. Transformation authority. 

Sec. 5. Property-based contracts. 

Sec. 6. Project-based voucher contracts. 

Sec. 7. Conforming amendments. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—The Congress finds that— 

8 (1) the Department of Housing and Urban De9 velopment (in this section referred to as HUD) cur10 rently provides rental assistance to more than 4.8 

11 million households through at least 13 different pro12 grams that are implemented through an infrastruc13 ture comprised of approximately public housing 

14 agencies, more than 18,000 individual Federal con15 tracts with private owners, and hundreds of non16 profit rental program administrators; 

17 (2) the substantial unmet capital needs of the 

18 aging public and assisted housing stock hinder Fed19 eral efforts to provide safe, high-quality, sustainable, 

20 energy-efficient affordable housing; and 

21 (3) the current rental assistance structure un22 necessarily increases transaction costs for developers 


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1 and communities, makes it more difficult for families 

2 in need to obtain rental assistance, impedes fair ac3 cess to scarce resources, and fails to decrease the 

4 concentration of poor and minority families in dis5 tressed or isolated neighborhoods, to expand oppor6 tunities to live in mixed-income sustainable neigh7 borhoods, or to expand opportunities to live in 

8 mixed-income sustainable neighborhoods, while at 

9 the same time worst-case housing needs and home10 lessness are increasing significantly. 

11 (b) PURPOSES.—The purposes of this Act are— 

12 (1) to preserve affordable housing opportunities 

13 for the long term, by providing the opportunity for 

14 public housing agencies and private owners to con15 vert from current forms of rental assistance under 

16 a variety of programs to long-term, property-based 

17 contracts that will enhance market-based discipline 

18 and enable owners to sustain operations and lever19 age private financing to address immediate and 

20 long-term capital needs; 

21 (2) to enhance housing choice for residents; 

22 (3) to streamline and improve the delivery and 

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1 sortia, consolidation, and other locally designed 

2 structures for administrative functions; 

3 (4) to create more uniform policies across all 

4 rental assistance programs funded by the Secretary 

5 of Housing and Urban Development to increase ad6 ministrative efficiency at all levels of program oper7 ations; and 

8 (5) to facilitate the adoption of energy-efficient 

9 and green technologies in HUD-assisted housing in 

10 order to reduce operating costs, improve residents’ 

11 quality of life, and enhance and protect the value of 

12 such housing. 

13 SEC. 3. CONVERSION OF RENTAL ASSISTANCE. 

14 Section 8 of the United States Housing Act of 1937 

15 (42 U.S.C. 1437f) is amended by inserting after sub16 section (k) the following new subsection: 

17 ‘‘(l) CONVERSION OF RENTAL ASSISTANCE.— 

18 ‘‘(1) AUTHORITY FOR CONVERSION OF RENTAL

19 ASSISTANCE.—The Secretary may, subject to the 

20 availability of amounts provided in appropriations 

21 Acts and that otherwise become available, and to the 

22 control of the Secretary of applicable accounts in the 

23 Treasury of the United States, allocate amounts to 

24 public housing agencies and other owners of eligible 

25 properties for the voluntary conversion of existing 


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1 project-based rental housing assistance contracts, as 

2 specified in this subsection, including annual con3 tributions contracts, through the execution of long4 term, property-based assistance contracts under sub5 section (n) (in this subsection referred to as ‘prop6 erty-based contracts’) or of project-based voucher 

7 rental assistance contracts for additional units of as8 sistance under subsection (o)(13) (in this subsection 

9 referred to as ‘project-based voucher contracts’) with 

10 public and private owners of properties assisted 

11 under— 

12 ‘‘(A) this section, excluding owners that 

13 continue to request renewal of rental assistance 

14 contracts under section 524 of the Multifamily 

15 Assisted Housing Reform and Affordability Act 

16 of 1997 (42 U.S.C. 1437f note); 

17 ‘‘(B) section 9 of this Act (42 U.S.C. 

18 1437g); 

19 ‘‘(C) the rent supplement program under 

20 section 101 of the Housing and Urban Develop21 ment Act of 1965 (12 U.S.C. 1701s); 

22 ‘‘(D) the rental assistance program under 

23 section 236(f)(2) of the National Housing Act 

24 (12 U.S.C. 1715z–1(f)(2)); and 


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1 ‘‘(E) other Federal affordable housing pro2 grams, as authorized by statute. 

3 ‘‘(2) CONDITIONS AND PROCEDURES FOR CON4 VERSION PROCESS.—The Secretary shall provide, by 

5 notice inviting owners of eligible properties to re6 quest conversion of assistance pursuant to this sub7 section, conditions and procedures for approval of 

8 such requests as the Secretary determines appro9 priate, including conditions and procedures that— 

10 ‘‘(A) promote the rehabilitation, including 

11 energy-efficiency improvements and sustainable 

12 design features, and long-term financial and 

13 physical sustainability of properties; 

14 ‘‘(B) deconcentrate poverty; 

15 ‘‘(C) increase administrative efficiency; or 

16 ‘‘(D) promote physical accessibility for per17 sons with disabilities. 

18 ‘‘(3) REQUIRED CONDITIONS.—In addition to 

19 any other conditions of conversion the Secretary may 

20 require, the Secretary shall ensure, through meas21 ures including requirements for conversion requests, 

22 contract provisions, and the control of the allocation 

23 of amounts, that— 

24 ‘‘(A) any property that is proposed for con25 version of assistance under this subsection and 


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1 will undergo substantial rehabilitation shall be 

2 subject to a detailed physical condition assess3 ment that will identify rehabilitation needs, esti4 mate repair and replacement needs, and iden5 tify opportunities to implement cost-effective, 

6 energy-efficient and green technologies;. 

7 ‘‘(B) the number of affordable units with 

8 property-based assistance is not decreased by 

9 the conversion of assistance under this sub10 section, except as provided in paragraph (5) of 

11 this subsection; 

12 ‘‘(C) there is no reduction in the number 

13 of families receiving rental assistance as a re14 sult of the conversion under this subsection; 

15 ‘‘(D) conversion under this subsection shall 

16 not be grounds for termination of tenancy; and 

17 ‘‘(E) the owner has complied with require18 ments established by the Secretary for consulta19 tion with residents about the owner’s intention 

20 to apply for conversion under this subsection, 

21 and any related rehabilitation or demolition of 

22 units in which tenants reside and any resulting 

23 relocation of tenants to other units, including 

24 the applicable rights of return, which require25 ments shall include— 


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1 ‘‘(i) resident involvement in planning 

2 for and implementation of conversion, in3 cluding reasonable steps to help ensure 

4 meaningful participation for residents who 

5 are limited in their English proficiency; 

6 ‘‘(ii) meetings with residents to ensure 

7 that each tenant wishing to return to revi8 talized on-site housing has the opportunity 

9 to express that wish and be accorded pref10 erence for tenancy; and 

11 ‘‘(iii) public meetings prior to imple12 menting any significant amendments or 

13 changes to a conversion plan. 

14 For a public housing agency, a plan to convert 

15 under this subsection shall be considered a sig16 nificant amendment to the agency plan under 

17 section 5A (42 U.S.C. 1437c–1), and the agen18 cy shall comply with applicable requirements to 

19 consult with the resident advisory board and 

20 the public concerning significant amendments. 

21 ‘‘(4) AGREEMENT TO PROVIDE ASSISTANCE.— 

22 The Secretary may provide for an agreement to pro23 vide assistance under a property-based or project24 based voucher contract with an owner of a property 

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1 tate the owner’s ability to obtain financing or for 

2 other reasons. 

3 ‘‘(5) ONE-FOR-ONE REPLACEMENT OF AS4 SISTED UNITS.—Properties converted to assistance 

5 under this subsection may have fewer assisted units 

6 under a property-based contract or under a project7 based voucher contract after conversion that the 

8 property had immediately prior to the conversion of 

9 assistance (including vacant units) only if the assist10 ance from such reduced number of units is trans11 ferred to an equal number of units in a replacement 

12 property or properties, as follows: 

13 ‘‘(A) NUMBER OF UNITS.—For 100 per14 cent of all such units in existence, as of the 

15 date of the request for conversion, that are to 

16 be demolished or disposed or converted to a 

17 unit that is not assisted under this Act, the 

18 owner shall provide a plan acceptable to the 

19 Secretary for timely replacement of each unit. 

20 ‘‘(B) NUMBER OF BEDROOMS.—Replace21 ment housing shall reflect the number of bed22 rooms that are needed to adequately serve re23 turning tenants, households currently on the 

24 waiting list and to meet future needs based on 


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1 other market data, as determined by the Sec2 retary. 

3 ‘‘(C) DISABILITY ACCESSIBLE HOUSING.— 

4 Off-site replacement housing shall not result in 

5 a decrease in available inventory of disability 

6 accessible housing, and all housing, where oth7 erwise covered, shall comply with the accessi8 bility requirements of the Fair Housing Act (42 

9 U.S.C. 3601 et seq.) and section 504 of the Re10 habilitation Act of 1973 (29 U.S.C. 794). 

11 ‘‘(D) LOCATION.—Replacement housing 

12 units shall be developed— 

13 ‘‘(i) on the site of the property being 

14 converted; and 

15 ‘‘(ii) in the neighborhood or within the 

16 metropolitan area up to 25 miles from the 

17 property being converted, as necessary 

18 to— 

19 ‘‘(I) comply with fair housing re20 quirements; 

21 ‘‘(II) deconcentrate poverty; 

22 ‘‘(III) provide appropriate den23 sities for the property being con24 verted; 


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1 ‘‘(IV) promote location-efficient 

2 communities; or 

3 ‘‘(V) meet other factors as deter4 mined by the Secretary in order to 

5 further the purposes of this subsection 

6 and subsection (m). 

7 ‘‘(E) OFF-SITE REPLACEMENT.—Replace8 ment housing developed off the site of the prop9 erty being converted as provided under subpara10 graph (D)(ii) shall meet the following require11 ments: 

12 ‘‘(i) ECONOMIC OPPORTUNITIES.— 

13 Off-site replacement housing shall offer ac14 cess to economic opportunities and public 

15 transportation and be accessible to social, 

16 recreational, educational, commercial, 

17 health facilities and services, and other 

18 municipal services and facilities that are 

19 comparable under such standards as the 

20 Secretary may prescribe. 

21 ‘‘(ii) PROHIBITION OF INCREASE OF

22 CONCENTRATION OF MINORITIES.—Off-site 

23 replacement housing shall not be located in 

24 areas of minority concentration, defined in 

25 relation to the metropolitan area or rural 


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1 county in which the project is located, or 

2 in areas of extreme poverty, except in 

3 areas that qualify as revitalizing neighbor4 hoods, as defined by the Secretary. 

5 ‘‘(F) TENANT-BASED VOUCHERS AS RE6 PLACEMENT HOUSING.—An owner may replace 

7 up to half of the units that are demolished or 

8 disposed of or permitted to be unassisted under 

9 the conversion in accordance with this sub10 section with tenant-based vouchers in housing 

11 markets where there is— 

12 ‘‘(i) an adequate supply of affordable 

13 rental housing in areas of low poverty, 

14 which supply shall be demonstrated by 

15 data that show within the housing market 

16 area of the property that— 

17 ‘‘(I) at least 80 percent of vouch18 ers under subsection (o) issued over 

19 the last 24 months to comparable 

20 families were successfully leased with21 in 120 days of issuance, or, if a suffi22 cient number of comparable families 

23 have not received vouchers, an alter24 native measure, as the Secretary shall 

25 design, is met; 


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1 ‘‘(II) existing voucher holders are 

2 widely dispersed geographically in 

3 areas of low poverty with access to 

4 public transportation, education, and 

5 other amenities, as determined by the 

6 Secretary, among the available private 

7 rental housing stock; and 

8 ‘‘(III) the applicant provides a 

9 market analysis demonstrating that— 

10 ‘‘(aa) there is a relatively 

11 high vacancy rate among units 

12 that would meet or exceed hous13 ing quality standards within the 

14 market area, as determined by 

15 the Secretary, with rent and util16 ity costs not exceeding the appli17 cable payment standard under 

18 subsection (o); and 

19 ‘‘(bb) such high vacancy rate 

20 within the market area is ex21 pected to continue for the next 5 

22 years or longer; or 

23 ‘‘(ii) a judgment, consent decree, or 

24 other order of a court limits the ability of 


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1 the owner to comply with the requirements 

2 under this paragraph. 

3 ‘‘(G) DE MINIMIS REDUCTION.—Notwith4 standing any other provision of this subsection, 

5 the owner of a property converting under this 

6 subsection may demolish not more than the 

7 lesser of 5 dwelling units or 5 percent of the 

8 total dwelling units at the converting property, 

9 but only— 

10 ‘‘(i) to reconfigure units to serve re11 turning tenants or households currently on 

12 the waiting list; 

13 ‘‘(ii) if the space occupied by the de14 molished unit is used for meeting the serv15 ice or other needs of residents; or 

16 ‘‘(iii) if the demolished unit was be17 yond repair. 

18 ‘‘(6) USE RESTRICTIONS.—The Secretary shall 

19 require use and affordability restrictions as a condi20 tion of conversion of each property to a property21 based contract or project-based voucher contract, as 

22 follows: 

23 ‘‘(A) PUBLIC HOUSING.— 

24 ‘‘(i) BASIC REQUIREMENTS.—An 

25 owner of a property assisted under section 


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1 9 approved for conversion of assistance 

2 pursuant to this subsection shall agree to 

3 provide the number of units, as required 

4 under paragraph (5), subject to the eligi5 bility, targeting, and rent rules as provided 

6 under the property-based contract or 

7 project-based voucher contract for use as 

8 affordable housing for at least 30 years 

9 from the date of execution of the initial 

10 section 8 contract after conversion and 

11 continuously for the duration of each ex12 tension or renewal of such contract offered 

13 by the Secretary or a public housing agen14 cy pursuant to subsection (n) or (o)(13). 

15 ‘‘(ii) TRANSFER OR SALE OF PROP16 ERTY.—No sale or transfer of a property 

17 subject to a use agreement under this sub18 paragraph, except properties subject to 

19 paragraph (18), shall be permitted without 

20 the prior approval of the Secretary. The 

21 Secretary shall not approve a sale or trans22 fer to a for-profit entity, except as per23 mitted under paragraph (13)(B) of this 

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1 enue Code of 1986, and shall not approve 

2 a sale or transfer to a non-profit entity un3 less the Secretary determines that there is 

4 no capable public entity willing to take 

5 ownership of the property. 

6 ‘‘(B) OTHER HOUSING.—An owner of a 

7 property other than a property assisted under 

8 section 9 entering into a contract for rental as9 sistance pursuant to this subsection shall agree 

10 to provide the number of units, as required 

11 under paragraph (5), subject to the eligibility, 

12 targeting, and rent rules as provided under the 

13 property-based or project-based voucher con14 tract for use as affordable housing for the 

15 greater of the remaining term of any prior use 

16 restriction existing at the time of conversion to 

17 the new rental assistance contract or the initial 

18 term of the new rental assistance contract. 

19 ‘‘(C) MODIFICATION OF USE AGREEMENT

20 WITH TRANSFER OF ASSISTANCE.—The Sec21 retary shall establish procedures to allow for 

22 the transfer of assistance from all or part of the 

23 units in a property with converted assistance, at 

24 the request of an owner or upon expiration or 

25 termination of a rental assistance contract, to a 


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1 new contract for rental assistance at a replace2 ment property or properties, subject to the re3 quirements of paragraph (5), otherwise applica4 ble legal requirements, and to a continuation of 

5 use restriction at the new property. The Sec6 retary shall require owners requesting such 

7 modifications to provide notice and consultation 

8 with tenants as provided in paragraph (3)(E) 

9 and to assist tenants to relocate, in accordance 

10 with paragraph (9). 

11 ‘‘(7) TENANTS RESIDING IN UNITS AT TIME OF

12 CONVERSION.—Notwithstanding any other provision 

13 of law, a family lawfully residing in an assisted unit 

14 in a property at the time of a conversion of assist15 ance under this subsection shall be considered eligi16 ble for assistance under subsections (n) and (o)(13), 

17 as applicable, and shall not be subject to rescreening 

18 or termination of assistance or eviction from the unit 

19 or denial of reoccupancy after rehabilitation because 

20 of the conversion or the requirements of any other 

21 funds used to finance the rehabilitation, and the re22 quirements of section 16 shall not apply to such 

23 family, but shall be complied with upon turnover of 

24 tenants. For purposes of section 42 of the Internal 

25 Revenue Code of 1986, such otherwise compliant 


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1 tenancies shall be considered to be in compliance 

2 with income requirements. 

3 ‘‘(8) ENERGY EFFICIENCY.—The Secretary may 

4 implement measures to facilitate the cost-effective 

5 adoption of energy-efficient and green technologies 

6 in properties converting to assistance under this sub7 section and in replacement units newly constructed 

8 with assistance under this section. 

9 ‘‘(9) RELOCATION ASSISTANCE.— 

10 ‘‘(A) APPLICABILITY OF UNIFORM RELOCA11 TION AND REAL PROPERTY ACQUISITION POLI12 CIES ACT.—The Uniform Relocation and Real 

13 Property Acquisition Policies Act of 1970 (42 

14 U.S.C. 4601 et seq.) shall apply to displace15 ment and relocation activities pursuant to the 

16 conversion of rental assistance under this sub17 section except as otherwise provided in this 

18 paragraph. 

19 ‘‘(B) TEMPORARY RELOCATION.—A public 

20 housing agency or owner that acquires, rehabili21 tates, or demolishes any project or building, or 

22 portion thereof, in connection with the conver23 sion or transfer of assistance under this sub24 section may temporarily, for a period not to ex25 ceed 12 months, or such other period, not to exVerDate Mar 15 2010 21:00 Dec 02, 2010 Jkt 099200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H6468.IH H6468

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1 ceed 24 months, as the Secretary may author2 ize, relocate families lawfully residing in a unit 

3 on the property and provide such families notice 

4 and relocation assistance as required by the 

5 Secretary. A relocated family shall have, upon 

6 completion of the project and consistent with 

7 any guidelines issued by the Secretary, the 

8 right to return if the tenant has not committed 

9 serious or repeated violations of material terms 

10 of the lease or occupancy agreement at the time 

11 of departure from the housing subject to reha12 bilitation or demolition, or during the tem13 porary relocation period. 

14 ‘‘(C) MOVING EXPENSES.—When assist15 ance is transferred to another property pursu16 ant to this subsection without a period of tem17 porary relocation, the public housing agency or 

18 owner shall offer each family that chooses to re19 locate from the property from which assistance 

20 is transferred to the property to which assist21 ance is transferred payment of actual, reason22 able, and necessary moving expenses, including 

23 utility deposits, and, if the newly assisted units 

24 are not owned by the public housing agency or 


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1 owner, payment of security deposits, credit 

2 checks, and other moving-related expenses. 

3 ‘‘(D) COSTS.—Displacement and relocation 

4 costs as required by law or as the Secretary 

5 may direct as authorized by this paragraph 

6 shall be paid from any rental assistance or 

7 other funds provided by the Secretary or other8 wise available to a public housing agency or 

9 owner that may be used for such purpose. A 

10 displaced family may receive an incremental, 

11 tenant-based voucher under this section, if such 

12 a voucher is made available. 

13 ‘‘(10) AMOUNT OF MONTHLY ASSISTANCE PAY14 MENT TO OWNER.—The amount of the monthly as15 sistance payment with respect to any unit upon con16 version shall be the difference between the maximum 

17 monthly rent that the property-based or project18 based voucher contract provides the owner is to re19 ceive for the unit plus the allowance for tenant-paid 

20 utilities and the rent that the family is required to 

21 pay under section 3 of this Act. 

22 ‘‘(11) TENANTS OVER-INCOME FOR CON23 TINUING SUBSIDY.—If the required contribution of a 

24 family toward rent under section 3 exceeds the rent 

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1 lowance, the family may continue to reside in the 

2 unit and pay the established rent. The Secretary or 

3 the public housing agency shall not reduce the num4 ber of units assisted under the property-based or 

5 project-based voucher contract due to residency by 

6 such a family, and may use funds not required for 

7 assistance under the contract in any year for other 

8 authorized rental assistance. 

9 ‘‘(12) DESIGNATED HOUSING.—If the units 

10 proposed to be converted pursuant to this subsection 

11 are subject to an approved designation plan under 

12 section 7 (42 U.S.C. 1437e) or are designed to ac13 commodate tenants with special needs under any 

14 other authority, the Secretary shall permit the des15 ignation or accommodation to continue to apply to 

16 the converted units under the same terms and condi17 tions as would otherwise have applied, and may per18 mit additional designations consistent with Federal 

19 statute or executive order. 

20 ‘‘(13) CONVERSION OF PUBLIC HOUSING.—In 

21 addition to such other conditions as the Secretary 

22 may require, the following conditions shall apply to 

23 a property assisted under section 9 that is con24 verting to rental assistance under this subsection: 


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1 ‘‘(A) TREATMENT OF CONVERTED

2 UNITS.—The conversion of units assisted under 

3 section 9 to assistance in accordance with this 

4 subsection shall not be considered a disposition 

5 under section 18 (42 U.S.C. 1437p). 

6 ‘‘(B) REQUIREMENTS FOR PROPERTIES

7 WITH HOUSING TAX CREDITS.—Public housing 

8 agencies that utilize tax credits under section 

9 42 of the Internal Revenue Code of 1986 for 

10 rental housing units converted under this sub11 section with respect to such units shall provide 

12 for— 

13 ‘‘(i) an option for the public housing 

14 agency to purchase limited partnership in15 terests in a property containing such units 

16 after the tax compliance period under such 

17 section 42; 

18 ‘‘(ii) a provision to give a public hous19 ing agency an active role in property man20 agement decisions of such housing; or 

21 ‘‘(iii) such other provision or provi22 sions as the Secretary may establish to en23 sure the preservation of the interest of the 

24 public housing agency in the property. 


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1 ‘‘(C) RESIDENT MEMBERSHIP ON

2 BOARD.—A public housing agency that converts 

3 some or all of its units to assistance in accord4 ance with this subsection shall comply with the 

5 resident board membership requirement of sec6 tion 2(b) (42 U.S.C. 1437(b)), as applicable. 

7 ‘‘(D) EXISTING CONTRACTS.—The Sec8 retary shall require, following conversion of as9 sistance in accordance with this subsection, that 

10 the Secretary and the public housing agency 

11 shall continue to meet obligations associated 

12 with financing pursuant to section 30 (42 

13 U.S.C. 1437z–2), including financing obliga14 tions for which capital funds or operating funds 

15 provided under section 9 are pledged for repay16 ment, if such obligations are not refinanced or 

17 otherwise paid off, using assistance provided 

18 under the property-based or project-based 

19 voucher contract or otherwise, and shall comply 

20 with the terms and conditions of contracts asso21 ciated with such financings, energy performance 

22 contracts, and similar contracts, as specified by 

23 the Secretary, in effect before conversion of as24 sistance in accordance with this subsection. The 

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1 table percentage of repayment obligations to be 

2 repaid from assistance under the property-based 

3 or project-based voucher contracts or impose 

4 such other requirements as are necessary to en5 sure that the requirements of the preceding 

6 sentence are met, without imposing greater re7 strictions on the public housing agency than the 

8 agency would have had under the original fi9 nancing. 

10 ‘‘(E) USE OF CAPITAL FUNDS.—Notwith11 standing any other provision of law, capital 

12 funds provided pursuant to section 9(d) (42 

13 U.S.C. 1437g(d)) may be used for assistance in 

14 the financing of necessary improvements or 

15 other capital expenses for any project or units 

16 assisted under section 9 and to be converted to 

17 assistance in accordance with this subsection, 

18 including making a capital contribution to such 

19 a project where needed to make the financing 

20 feasible, the purchase or provision of letters of 

21 credit or other credit enhancements necessary 

22 to carry out successful conversions, initial con23 tributions to any necessary reserves, and other 

24 financing expenses approved by the Secretary. 

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1 ments otherwise applicable to such capital 

2 funds as necessary to facilitate their use in con3 nection with conversions as authorized by this 

4 subsection. 

5 ‘‘(F) TRANSITION RENTS FOR TENANTS IN

6 CONVERTED PUBLIC HOUSING PROPERTIES.— 

7 The Secretary shall require a public housing 

8 agency to implement such changes in rental 

9 payment requirements otherwise applicable to 

10 tenants at the time of conversion under this 

11 subsection as are necessary to prevent such ten12 ants from having rents increased solely as a re13 sult of the conversion by more than 10 percent 

14 per year. The Secretary may require or author15 ize a public housing agency to adopt a specific 

16 time after which such transitional provisions no 

17 longer will be effective. 

18 ‘‘(14) TRANSFER AND USE OF FUNDS.— 

19 ‘‘(A) TERMINATION OF ASSISTANCE

20 UNDER PREVIOUS CONTRACT.—Following con21 version under this subsection, additional assist22 ance for a property shall not be provided under 

23 the previous contract, agreement, or authority. 

24 ‘‘(B) UNEXPENDED ASSISTANCE.—The 

25 Secretary shall take necessary actions to proVerDate Mar 15 2010 21:00 Dec 02, 2010 Jkt 099200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H6468.IH H6468

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1 vide that, as a condition of conversion of a 

2 property, the unexpended assistance, including 

3 capital funds, made available for such property 

4 under a previous contract, agreement, or au5 thority (up to and including the Federal fiscal 

6 year of conversion) shall be transferred to ac7 counts applicable to assistance provided under 

8 this subsection to pay all or a portion of— 

9 ‘‘(i) the up-front costs of conversion; 

10 ‘‘(ii) the initial contributions to any 

11 necessary reserves; 

12 ‘‘(iii) the funding of the initial year or 

13 years of the new property-based or project14 based voucher contract of assistance en15 tered into pursuant to this subsection; 

16 ‘‘(iv) the financing of necessary ren17 ovations to, or other capital expenses for, 

18 the property, including the making of cap19 ital contributions and the provision of let20 ters of credit or other credit enhancements 

21 or financing expenses approved by the Sec22 retary; and 

23 ‘‘(v) contract administration of con24 verted rental assistance properties under 

25 this subsection. 


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1 ‘‘(C) TRANSFER OF FUNDS.—To the ex2 tent provided in advance in appropriations Acts, 

3 the Secretary may transfer funds between ac4 counts applicable to assistance provided under 

5 section 9 and accounts applicable to assistance 

6 provided under this subsection and subsections 

7 (n) and (o). 

8 ‘‘(15) RELEASE OF PRIOR REQUIREMENTS.—A 

9 property assisted under a property-based or project10 based voucher contract following conversion under 

11 this section shall not be subject to any terms, condi12 tions, and requirements of the previous assistance 

13 from which it was converted, except as provided for 

14 by this subsection and subsections (n) and (o), and 

15 by such terms, conditions, and requirements as es16 tablished for the new assistance by the Secretary. 

17 ‘‘(16) CONVERSION FROM PROPERTY-BASED

18 CONTRACT TO PROJECT-BASED VOUCHER CON19 TRACT.—A property under a property-based contract 

20 may convert to a project-based voucher contract at 

21 the request of the owner of the property and at the 

22 discretion of, and upon approval by, the Secretary if 

23 the property meets the applicable requirements 

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1 cy eligible to administer the contract agrees to such 

2 administration. 

3 ‘‘(17) NOTICE OF TERMINATION OF AFFORD4 ABILITY RESTRICTIONS.— 

5 ‘‘(A) IN GENERAL.—An owner of a prop6 erty that has been converted to a property7 based contract pursuant to this subsection 

8 shall, if the owner intends not to renew or ex9 tend the rental assistance contract at the prop10 erty, provide written notice of such intent at 

11 least 12 months in advance of the intended ter12 mination date. Notice shall be provided to the 

13 Secretary, the chief executive officer of the 

14 State and the unit of general local government 

15 (as such term is defined in section 4 of the 

16 Cranston-Gonzalez National Affordable Hous17 ing Act (42 U.S.C. 12704)) in which the prop18 erty is located, and to each tenant of the prop19 erty at such time and in such form as may be 

20 prescribed by the Secretary through regulation. 

21 ‘‘(B) FAILURE TO PROVIDE NOTICE.—If 

22 an owner fails to provide notice as required in 

23 subparagraph (A), the owner may not evict the 

24 tenants or increase the tenants’ rent payments 

25 based upon the change in subsidy status of the 


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1 property until such time as the owner has pro2 vided the notice and the 12-month period begin3 ning upon the provision of such notice has 

4 elapsed. 

5 ‘‘(18) PROPERTIES IN DEFAULT, FORE6 CLOSURE, OR BANKRUPTCY.— 

7 ‘‘(A) PROPERTIES IN DEFAULT.— 

8 ‘‘(i) MORTGAGE REQUIREMENT.—Any 

9 mortgage made on, or security interest 

10 otherwise granted in, any property with a 

11 rental assistance contract or agreement 

12 converted pursuant to this subsection shall 

13 include a provision for simultaneous notifi14 cation to the owner of the property and the 

15 Secretary of any default under the mort16 gage or other security agreement. 

17 ‘‘(ii) CONVERSION CONTRACT RE18 QUIREMENT.—Any contract or agreement 

19 to convert assistance pursuant to this sub20 section shall include a provision requiring 

21 the owner to notify the Secretary of any 

22 default under a mortgage made on, or se23 curity interest otherwise granted in, any 

24 property with a rental assistance contract 


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1 or agreement converted pursuant to this 

2 subsection. 

3 ‘‘(iii) AUTHORITY TO SUSPEND RENT4 AL ASSISTANCE.—After receiving notifica5 tion of a default as provided in clause (i), 

6 the Secretary may suspend all or a portion 

7 of any rental assistance payments funded 

8 by the Secretary under any contract on be9 half of the property in default and use 

10 amounts from such suspended payments to 

11 cure the default. Such suspension shall not 

12 be cause for eviction of any tenant assisted 

13 under this section. 

14 ‘‘(iv) AUDIT.—The Secretary may 

15 conduct an audit of any property that has 

16 had rental assistance payments suspended 

17 under clause (i). The owner of such prop18 erty shall make available all records of the 

19 property to the Secretary, including books 

20 of account, bank statements, and contracts 

21 for purposes of the audit. 

22 ‘‘(v) RESUMPTION OF RENTAL ASSIST23 ANCE.—Following cure of the default and 

24 subject to the results of any audit con25 ducted under clause (iv), the Secretary 


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1 may terminate, in whole or in part, the 

2 suspension of payments and resume pay3 ment in accordance with the contract. The 

4 Secretary may require the payee under the 

5 contract to take such corrective actions as 

6 the Secretary determines to be appropriate 

7 as a condition of resuming payments under 

8 the contract. 

9 ‘‘(B) PROPERTIES IN FORECLOSURE OR

10 BANKRUPTCY.—Notwithstanding any provision 

11 of Federal or State law, in the event of a fore12 closure, or the bankruptcy of an owner, of a 

13 property converted under this subsection, such 

14 property shall remain subject to— 

15 ‘‘(i) such rental assistance contract 

16 and any extensions or renewal agreements 

17 thereof; 

18 ‘‘(ii) all leases between the prior 

19 owner and tenants assisted under such 

20 contract; and 

21 ‘‘(iii) any use agreement related to 

22 such contract in effect immediately before 

23 the foreclosure or bankruptcy filing. 

24 Any and all successors in interest in such prop25 erty shall assume such contract, extensions or 


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1 renewal agreements, leases, and related use 

2 agreement obligations. In the case of a property 

3 converted from assistance under section 9, prior 

4 to the sale or other transfer of any ownership 

5 interest in such property pursuant to a fore6 closure or bankruptcy, the Secretary shall have 

7 a first option to purchase, and the Secretary 

8 shall exercise such option or may assign such 

9 option to a public entity purchaser that exer10 cises such option in accordance with imple11 menting regulations pursuant to this subpara12 graph and paragraph (19)(A)(iv). If the Sec13 retary determines the property is not physically 

14 viable, the Secretary may require the transfer 

15 of the contract for assistance, including month16 ly assistance payments, and use agreement to 

17 one or more other properties in accordance with 

18 the procedures and requirements of subsection 

19 (m)(F)(ii). 

20 ‘‘(19) FEDERAL OPTION TO PURCHASE.— 

21 ‘‘(A) IN GENERAL.— 

22 ‘‘(i) OPPORTUNITY FOR PURCHASE BY

23 SECRETARY.—Except as provided in clause 

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1 fined in clause (v), shall not sell the cov2 ered property at any time before— 

3 ‘‘(I) providing notice within the 

4 time periods and to the parties de5 scribed in paragraph (17) of the own6 er’s intent to sell the property; and 

7 ‘‘(II) offering the Secretary the 

8 opportunity to purchase the property 

9 pursuant to clause (ii) of this sub10 paragraph. 

11 ‘‘(ii) RIGHT OF SECRETARY TO MAKE

12 OFFER.—Upon receipt of the notice re13 quired in clause (i)(I), the Secretary shall 

14 have the right either to purchase the prop15 erty subject to terms and conditions estab16 lished through regulation or to select an 

17 assignee to act on behalf of the Secretary 

18 as the purchaser before the owner enters 

19 into any agreement to sell to a third party. 

20 Failure by the Secretary or the Secretary’s 

21 assignee to submit an offer to purchase the 

22 property in compliance with the conditions 

23 specified in regulation shall constitute an 

24 irrevocable waiver of the Secretary’s right 

25 under this paragraph. 


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1 ‘‘(iii) RELATIONSHIP WITH OTHER

2 LAWS.—The requirements of this para3 graph are in addition to, and not in lieu of, 

4 any State or local law that has established 

5 a right of first refusal to preserve afford6 able housing. 

7 ‘‘(iv) REGULATIONS.—The Secretary 

8 shall issue regulations to carry out this 

9 paragraph, which may— 

10 ‘‘(I) define such terms as the 

11 Secretary determines necessary to fa12 cilitate the understanding of the 

13 rights and obligations of the owner of 

14 the property, the Secretary, the Sec15 retary’s assignee, or tenants; 

16 ‘‘(II) address any agreement that 

17 may be appropriate between the Sec18 retary and the Secretary’s assignee; 

19 ‘‘(III) provide for the timing of 

20 any offer made by the Secretary to 

21 purchase the owner’s property and the 

22 acceptance or refusal of the Sec23 retary’s purchase offer; and 

24 ‘‘(IV) establish the conditions for 

25 sale of a property to the Secretary. 


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1 ‘‘(v) COVERED PROPERTIES.—Prop2 erties covered by this paragraph include 

3 properties with assistance converted pursu4 ant to this subsection after receiving as5 sistance under subsection (e)(2) or section 

6 9 of this Act, section 236(f)(2) of the Na7 tional Housing Act (12 U.S.C. 1715z– 

8 1(f)(2)), or section 101 of the Housing and 

9 Urban Development Act of 1965 (12 

10 U.S.C. 1701s). For other converted prop11 erties, the Secretary and owner may agree 

12 to be bound by this paragraph. 

13 ‘‘(vi) INAPPLICABILITY OF SEC14 RETARY’S RIGHT TO PURCHASE.—Clauses 

15 (i) through (v) of this subparagraph shall 

16 not apply to any of the following actions: 

17 ‘‘(I) A government taking of cov18 ered housing by eminent domain or a 

19 negotiated purchase in lieu of eminent 

20 domain. 

21 ‘‘(II) A proposed transfer of as22 sistance from the property to another, 

23 subject to terms and conditions estab24 lished by the Secretary. 


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1 ‘‘(B) PUBLIC HOUSING.—For properties 

2 converted from assistance under section 9, the 

3 Secretary shall provide a priority, first, to a 

4 public entity, and next to a non-profit entity, 

5 including a tenant organization, in selecting an 

6 assignee under this paragraph. 

7 ‘‘(C) OTHER HOUSING.—For properties 

8 other than properties converted from assistance 

9 under section 9, clauses (i) through (v) of sub10 paragraph (A) shall not apply to a proposed 

11 sale pursuant to terms and conditions that pre12 serve affordability, as determined by the Sec13 retary. 

14 ‘‘(20) FINANCING OF PROPERTIES WITH CON15 VERTED ASSISTANCE.—The Secretary shall establish 

16 policies and procedures governing the use of sound 

17 financing and underwriting standards for properties 

18 with assistance converted under this subsection, to 

19 ensure that such properties are financially sustain20 able for the term of the assistance contract. 

21 ‘‘(21) RECOVERIES.—To the extent provided in 

22 advance in appropriations Acts, amounts obligated 

23 with respect to a property under a rental assistance 

24 program, for years beyond the fiscal year in which 

25 conversion of rental assistance under this subsection 


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•HR 6468 IH

1 takes place, shall be deobligated and collected by the 

2 Secretary. 

3 ‘‘(22) RENTAL ASSISTANCE CONVERSION TRUST

4 FUND.— 

5 ‘‘(A) ESTABLISHMENT.—There is estab6 lished in the Treasury of the United States a 

7 fund to be known as the ‘Rental Assistance 

8 Conversion Trust Fund’ (in this paragraph re9 ferred to as the ‘Fund’) for deposit of amounts, 

10 to be used for the costs of the resident choice 

11 option under subsection (m)(1), of conversions 

12 under this subsection, including the actions 

13 under paragraph (14)(B), and of the exercise of 

14 the Secretary’s first option to purchase under 

15 paragraphs (18)(B) and (19) of this subsection, 

16 from— 

17 ‘‘(i) to the extent provided in advance 

18 in appropriations Acts, the collection of 

19 costs as authorized by this subsection, 

20 which shall not exceed $100,000 per prop21 erty (or such other higher limit as the Sec22 retary may establish after providing public 

23 notice and an opportunity to comment), as 

24 may be necessary for payment of expenses 

25 incurred by the Secretary in connection 


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1 with assessing such properties for conver2 sion, including the costs of rental com3 parability studies and physical needs and 

4 financial assessments, as the Secretary 

5 may require; and 

6 ‘‘(ii) the amounts deobligated and col7 lected under paragraph (21). 

8 ‘‘(B) AVAILABILITY.—Amounts in the 

9 Fund shall be available only to the extent pro10 vided in advance in appropriations Acts.’’. 

11 SEC. 4. TRANSFORMATION AUTHORITY. 

12 Section 8 of the United States Housing Act of 1937 

13 (42 U.S.C. 1437f), as amended by the preceding provi14 sions of this Act, is further amended by inserting after 

15 subsection (l) the following new subsection: 

16 ‘‘(m) TRANSFORMATION AUTHORITY.— 

17 ‘‘(1) RESIDENT CHOICE.—The Secretary shall 

18 promote informed choice regarding housing opportu19 nities for families in dwelling units with rental as20 sistance converted under subsection (l) of this sec21 tion by establishing procedures to implement a resi22 dent choice option as follows: 

23 ‘‘(A) RIGHT TO MOVE.—To extent of avail24 able resources, each low-income family lawfully 

25 residing in a unit converted under subsection (l) 


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1 may move at any time after residing in the 

2 property for a period of not less than 24 

3 months (which period shall run from the date 

4 of the tenant’s initial occupancy or, if the prop5 erty is rehabilitated in conjunction with the 

6 conversion, from the date of conversion or the 

7 tenant’s initial occupancy, whichever is later), 

8 or such other period as provided in subsection 

9 (o)(13) or as determined by the Secretary, and 

10 may continue to receive rental assistance that is 

11 subject to policies comparable to those that 

12 apply to assistance under subsection (o) con13 cerning income, assistance, rent contribution, 

14 affordability, and other policies as the Secretary 

15 may specify by regulation. 

16 ‘‘(B) PROVISION OF VOUCHERS.—A public 

17 housing agency administering a tenant-based 

18 voucher program under subsection (o) whose 

19 property is selected for conversion or that is se20 lected to administer a rental assistance contract 

21 pursuant to subsection (l) shall provide vouch22 ers to low-income families lawfully residing in 

23 units converted under subsection (l) who exer24 cise their rights under the resident choice op25 tion provided under subparagraph (A) as reVerDate Mar 15 2010 21:00 Dec 02, 2010 Jkt 099200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H6468.IH H6468

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1 quired by the Secretary, but not more than one2 third of the vouchers that become available each 

3 year as a result of turnover may be used for 

4 such purpose. 

5 ‘‘(C) SEPARATE WAITING LIST.—A public 

6 housing agency may establish a separate wait7 ing list for families eligible to exercise such resi8 dent choice option if demand for vouchers ex9 ceeds one-third of turnover vouchers. 

10 ‘‘(2) STREAMLINING RENTAL ASSISTANCE PRO11 GRAMS.—In addition to the authority of the Sec12 retary under any other provision of law or as speci13 fied in this paragraph, the Secretary may establish 

14 uniform policies and procedures governing properties 

15 with rental assistance converted under subsection 

16 (l), including policies and procedures with respect to 

17 the following: 

18 ‘‘(A) TENANT ORGANIZATION RIGHTS.—In 

19 implementing the authority under this para20 graph with respect to tenants’ rights to orga21 nize, the Secretary shall provide that— 

22 ‘‘(i) owners of properties funded 

23 under a rental assistance program and 

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1 able efforts of tenants to organize or of 

2 tenant organizations to represent their 

3 members; 

4 ‘‘(ii) tenants and tenant organizations 

5 shall have the right to hold meetings, in6 cluding meetings concerning the formation 

7 of a tenant organization, in a building re8 ceiving funding from a rental assistance 

9 program; 

10 ‘‘(iii) property owners and public 

11 housing agencies administering rental as12 sistance under subsection (l) shall recog13 nize legitimate tenant organizations and 

14 give reasonable consideration to concerns 

15 raised by legitimate tenant organizations; 

16 ‘‘(iv) properties with only a portion of 

17 the units funded under a rental assistance 

18 program may, at the option of the tenants 

19 of units with such assistance, have a single 

20 tenant organization representing all ten21 ants; 

22 ‘‘(v) a tenant organization shall be 

23 considered legitimate if it meets regularly, 

24 operates democratically, is broadly rep25 resentative, is independent of the public 


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1 housing agency, owners, management, and 

2 their representatives, and has been estab3 lished— 

4 ‘‘(I) by the tenants in a property 

5 funded under a rental assistance pro6 gram administered by the Secretary 

7 for purposes of addressing issues re8 lated to the tenants’ living environ9 ment, which shall include the terms 

10 and conditions of their tenancy and 

11 other issues as determined by the Sec12 retary; 

13 ‘‘(II) by the participants in a 

14 rental assistance program under sub15 section (o), for purposes of addressing 

16 issues related to policies governing 

17 payment standards, conditions of oc18 cupied units, or other discretionary 

19 policies and program implementation 

20 issues; or 

21 ‘‘(III) through a combination of 

22 tenant organizations, including juris23 diction-wide or area-wide organiza24 tions; and 


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1 ‘‘(vi) a portion of funds made avail2 able for renewal of rental assistance shall 

3 be allocated to tenant groups, non-profit 

4 organizations, or public entities to facili5 tate tenants’ rights to organize; such 

6 amounts, which shall not be less than the 

7 amount that would have been provided for 

8 such purposes under previously applicable 

9 funding formulas if the properties had not 

10 converted pursuant to subsection (l), may 

11 fund technical assistance and organizing 

12 activities that empower residents to partici13 pate meaningfully in planning processes 

14 and other activities related to improving or 

15 preserving the quality of their housing, 

16 subject to such terms and conditions as the 

17 Secretary may establish; allocation of 

18 funds to legitimate tenant organizations 

19 meeting the requirements of clause (v) 

20 shall not require a competitive process. 

21 ‘‘(B) APPLICANT AND TENANT PROCE22 DURAL RIGHTS.— 

23 ‘‘(i) IN GENERAL.—Applicants for, 

24 and tenants of, units with assistance con25 verted under subsection (l) or with assistVerDate Mar 15 2010 21:00 Dec 02, 2010 Jkt 099200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H6468.IH H6468

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1 ance under subsection (o) shall be timely 

2 notified of and provided the rights speci3 fied in this subparagraph upon receiving 

4 notification of, including a statement of 

5 the specific grounds for— 

6 ‘‘(I) ineligibility for assistance or 

7 for admission to a unit assisted under 

8 this subsection; 

9 ‘‘(II) adverse actions involving in10 come determinations, tenant contribu11 tions, unit size, other conditions of 

12 continuing eligibility, or such other 

13 issues as determined by the Secretary; 

14 and 

15 ‘‘(III) eviction or termination of 

16 assistance. 

17 ‘‘(ii) PROCEDURES REQUIRED.— 

18 ‘‘(I) An applicant for, and a ten19 ant of, a unit with assistance con20 verted under subsection (l) or with as21 sistance under subsection (o) may re22 quest a review of an action for which 

23 the applicant or tenant receives notifi24 cation pursuant to this subparagraph. 

25 Such request for a review must be 


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1 made within 30 days of receipt of any 

2 notice concerning ineligibility for as3 sistance or for admission to a unit as4 sisted under this section, or termi5 nation of assistance or eviction. For 

6 notices concerning any other matter, 

7 such request for a review must be 

8 made within 10 days of receipt of the 

9 notice or such longer time as the 

10 owner or agency, consistent with its 

11 written administrative policies, may 

12 permit, and before the action may be 

13 initiated or carried out. 

14 ‘‘(II) An applicant for, and a ten15 ant of, a unit with assistance con16 verted under subsection (l) or with as17 sistance under subsection (o) may re18 quest a review within a reasonable pe19 riod of time of any agency or owner 

20 failure to act that has had a direct 

21 adverse impact on the applicant or 

22 tenant. 

23 ‘‘(III) For any review concerning 

24 an eviction or termination of tenancy 

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1 ens the health, safety, or right to 

2 peaceful enjoyment of the premises of 

3 other tenants or employees of the 

4 owner or agency or any violent or 

5 drug-related criminal activity on or off 

6 such premises, or any activity result7 ing in a felony conviction, the agency 

8 or owner may establish an expedited 

9 review procedure as the Secretary 

10 shall provide, or exclude from its re11 view procedure any such matter, in 

12 any jurisdiction which requires that 

13 prior to eviction, a tenant be given a 

14 hearing in court, which the Secretary 

15 determines provides the basic ele16 ments of due process. Such elements 

17 of due process shall not include a re18 quirement that the tenant be provided 

19 an opportunity to examine relevant 

20 documents within the possession of 

21 the agency or owner. The agency or 

22 owner shall provide to the tenant a 

23 reasonable opportunity, prior to hear24 ing or trial, to examine and obtain 

25 copies of any relevant documents, 


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1 records, or regulations directly related 

2 to the eviction or termination. 

3 ‘‘(IV) The review shall be con4 ducted by a person or panel with au5 thority to approve, amend, or with6 draw the action, but not the person, 

7 or a subordinate of the person, that 

8 made the initial decision to take the 

9 action. 

10 ‘‘(V) The entity that made the 

11 decision for the action or that failed 

12 to take an action for which a review 

13 is requested shall permit a reasonable 

14 opportunity in advance of the review 

15 for the applicant or tenant to inspect 

16 and obtain copies of documents 

17 claimed to support the action or fail18 ure to act. 

19 ‘‘(VI) The applicant’s or tenant’s 

20 entire file shall be made available for 

21 review by the applicant or tenant 

22 upon request. 

23 ‘‘(VII) The applicant or tenant 

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1 ments on the applicant’s or tenant’s 

2 behalf. The applicant or tenant shall 

3 have the right to present evidence and 

4 arguments, to controvert evidence re5 lied on by the entity, and to confront 

6 and cross-examine any witness who 

7 testifies at the review on behalf of the 

8 entity. The applicant or tenant may 

9 present arguments as to why the 

10 agency or owner should not exercise 

11 discretionary authority to undertake 

12 the action being challenged. 

13 ‘‘(VIII) A written notice of the 

14 outcome of the review and the reasons 

15 in support of the outcome shall be 

16 provided to the applicant or tenant 

17 and representative, if any. The deci18 sion shall be based solely on the facts 

19 presented at the review. 

20 ‘‘(iii) COSTS.—The reasonable costs, 

21 which shall not include attorney’s fees, of 

22 providing the applicant and tenant rights 

23 under this subparagraph shall be consid24 ered operating costs of a property. 


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1 ‘‘(C) NONDISCRIMINATION AND AFFIRMA2 TIVELY FURTHERING FAIR HOUSING.— 

3 ‘‘(i) NONDISCRIMINATION.—All pro4 grams and activities related to providing or 

5 administering rental housing assistance, 

6 including admissions, demolition or disposi7 tion, relocation, replacement, re-occupancy 

8 of housing units, and transfer of any con9 tracts for rental assistance, shall be con10 ducted in compliance with the civil rights 

11 laws and their implementing regulations, 

12 including the Fair Housing Act (42 U.S.C. 

13 3601 et seq.), title VI of the Civil Rights 

14 Act of 1964 (42 U.S.C. 2000d et seq.), 

15 section 504 of the Rehabilitation Act of 

16 1973 (29 U.S.C. 794), and Executive Or17 ders 11063 and 13166, and shall not have 

18 the purpose or effect of discriminating 

19 against a tenant or prospective tenant as20 sisted under this subsection because of 

21 such person’s receipt of a voucher under 

22 this section. 

23 ‘‘(ii) AFFIRMATIVELY FURTHERING

24 FAIR HOUSING.—Owners and public hous25 ing agencies shall conduct all rental housVerDate Mar 15 2010 21:00 Dec 02, 2010 Jkt 099200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H6468.IH H6468

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1 ing assistance programs and activities 

2 funded by the Secretary authorized under 

3 this Act, including admissions, demolition 

4 or disposition, relocation, replacement, re5 occupancy of housing units, and transfer of 

6 any contracts for rental assistance, in a 

7 manner that affirmatively furthers fair 

8 housing as required by section 808(e)(5) of 

9 the Fair Housing Act (42 U.S.C. 

10 3608(e)(5)). 

11 ‘‘(D) ADMINISTRATION OF RENTAL ASSIST12 ANCE.—In implementing the authority under 

13 this subsection with respect to the administra14 tion of rental assistance, the Secretary may— 

15 ‘‘(i) facilitate the implementation, by 

16 public housing agencies that administer 

17 tenant-based voucher programs under sub18 section (o), of regional portability agree19 ments, consortia, and such other or addi20 tional methods of streamlining administra21 tion of vouchers and other rental assist22 ance on an area-wide basis as the Sec23 retary determines appropriate to promote 

24 greater efficiency in the use of resources 


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1 and to increase informed resident choice 

2 and mobility; 

3 ‘‘(ii) allocate funds to administer con4 tracts for properties converted under sub5 section (l) to entities authorized to admin6 ister rental assistance under section 

7 3(b)(6)(B) pursuant to such conditions 

8 and procedures as the Secretary may es9 tablish by notice, following an opportunity 

10 for comment. In awarding such funding, 

11 the Secretary shall promote administrative 

12 efficiency and advance the policy of resi13 dent choice as specified in paragraph (1) 

14 of this subsection; and 

15 ‘‘(iii) establish mechanisms, proce16 dures, and policies to initiate in a single lo17 cation the application process for all wait18 ing lists for rental assistance programs ad19 ministered by the Secretary in a metropoli20 tan or rural area and to minimize the bur21 dens on owners, public housing agencies, 

22 and applicants, including through provision 

23 of technical assistance. 

24 ‘‘(E) PHYSICAL CONDITION STANDARDS.— 

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1 section with respect to the inspection of prop2 erties, the Secretary may establish or provide 

3 for the use of uniform physical condition stand4 ards. 

5 ‘‘(F) ENFORCEMENT.— 

6 ‘‘(i) AUTHORITY TO BRING ACTION.— 

7 The Secretary may commence any action 

8 in an appropriate United States district 

9 court to obtain a monetary judgment or 

10 such other relief, or both, as may be avail11 able with respect to a rental assistance 

12 contract, an annual contributions contract, 

13 a use agreement, or any statute other than 

14 the Fair Housing Act (42 U.S.C. 3601 et 

15 seq.), or regulation applicable to any rental 

16 assistance program under the authority of 

17 the Secretary or the property assisted 

18 under such program, or to protect or en19 force any obligation to, or right or require20 ment of, the Secretary under any such con21 tract, agreement, or law. The monetary 

22 judgment or other relief may, in the 

23 court’s discretion, include the attorneys’ 

24 fees and other expenses incurred by the 

25 Secretary in connection with the action. 


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1 ‘‘(ii) TERMINATION AND TRANSFER

2 OF ASSISTANCE.—Upon repeated or con3 tinued violation of applicable requirements, 

4 or upon substantial default of any cov5 enants or conditions of a use agreement or 

6 rental assistance contract by the owner of 

7 a property with rental assistance, and fol8 lowing consultation with the primary and 

9 subordinate mortgages of the property, if 

10 any, the Secretary may terminate the rent11 al assistance contract with such owner and, 

12 through a selection process established by 

13 regulation, transfer the rental assistance 

14 by entering into a new contract with the 

15 owner or owners of a property or prop16 erties that have the capacity to accept all 

17 assisted tenants who choose to move to 

18 such properties from the property that has 

19 had its assistance terminated. Assisted ten20 ants that do not choose to move to the re21 placement properties, or if replacement 

22 properties are not available, shall be pro23 vided voucher assistance under subsection 

24 (o), which may be funded initially by the 

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1 tract. No additional units of assistance 

2 under this section are authorized to be cre3 ated as a result of such termination and 

4 transfer. 

5 ‘‘(iii) ADDITIONAL EQUITABLE REM6 EDIES.—Notwithstanding any other provi7 sion of law or of any contract for contribu8 tions, upon the occurrence of events or 

9 conditions that constitute a default by a 

10 public housing agency with which the Sec11 retary contracts for administration of rent12 al assistance under this section with re13 spect to the covenants or conditions to 

14 which the public housing agency is subject, 

15 the Secretary may— 

16 ‘‘(I) take possession of properties 

17 solely owned by a public housing au18 thority, rights or interests held in con19 nection with the program for rental 

20 assistance under this section, includ21 ing funds held by a depository, pro22 gram receipts, and rights or interests 

23 under a housing assistance payments 

24 contract with an owner; 


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1 ‘‘(II) appoint a receiver, which 

2 may be another public housing agency 

3 or other entity at the Secretary’s dis4 cretion regardless of jurisdictional 

5 limitations; 

6 ‘‘(III) transfer the program to 

7 another public housing agency or 

8 other entity at the discretion of the 

9 Secretary regardless of jurisdictional 

10 limitations; 

11 ‘‘(IV) seek the establishment of 

12 one or more new public housing agen13 cies; or 

14 ‘‘(V) require the agency to make 

15 other arrangements acceptable to the 

16 Secretary for managing all or part of 

17 the programs administered by the 

18 agency or other programs of the agen19 cy under this section. 

20 ‘‘(iv) DEPOSIT OF PENALTIES.—Not21 withstanding any other provision of law, 

22 the Secretary shall apply amounts collected 

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1 thorize the owner of the property or 

2 project at issue in the action to use the 

3 amounts, in accordance with the require4 ments of the Secretary, for the improve5 ment of such property or project. 

6 ‘‘(G) RESIDENT ACCESS TO BUILDING IN7 FORMATION.— 

8 ‘‘(i) IN GENERAL.—Upon a written 

9 request by a legitimate tenants’ organiza10 tion meeting the requirements of subpara11 graph (A)(v) of this paragraph, established 

12 with respect to a multifamily housing prop13 erty covered under part 245 of the Sec14 retary’s regulations (24 C.F.R. part 245) 

15 or assisted by a contract that has been 

16 converted pursuant to subsection (l), by or 

17 through its duly appointed designee or rep18 resentative, the Secretary shall make avail19 able to that organization designee or rep20 resentative— 

21 ‘‘(I) information identifying the 

22 legal entities that own and manage 

23 the property, including identification 

24 of general partners and other prin25 cipals; 


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1 ‘‘(II) an annual operating state2 ment of profit and loss of the owner3 ship and management entities identi4 fied in subclause (I); 

5 ‘‘(III) any subsidy contracts be6 tween the ownership entities and the 

7 Secretary, and related, non-privileged 

8 correspondence between those owner9 ship entities and the Department of 

10 Housing and Urban Development; 

11 ‘‘(IV) any management reviews 

12 of entities identified in subclause (I) 

13 that are conducted by the Department 

14 of Housing and Urban Development 

15 and which may, pursuant to the regu16 lations of the Department of Housing 

17 and Urban Development, be publicly 

18 disclosed; and 

19 ‘‘(V) an annual statement, pre20 pared by the Department’s contract 

21 administrator for the subject property, 

22 of the balances of, and expenditures 

23 from, any replacement reserves and 

24 other escrow funds for the property. 


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1 ‘‘(ii) PROTECTION OF INFORMA2 TION.—Such a request shall be subject to 

3 the applicability of all laws and regulations 

4 governing proprietary information, privacy 

5 rights, privileges and other established 

6 legal protections for individuals and enti7 ties, and shall not be construed to limit or 

8 otherwise alter such laws, regulations, 

9 rights, privileges, and protections, or to re10 quire disclosure of Social Security num11 bers, personal tax returns, or any other 

12 personal financial information of or con13 cerning individuals who have an interest in 

14 the ownership or management entities re15 ferred to in subclause (I) of clause (i). 

16 ‘‘(H) STREAMLINED REGULATIONS.—The 

17 Secretary may establish streamlined review and 

18 compliance requirements for small or partially 

19 assisted properties, or both, regardless of the 

20 form of assistance provided such properties 

21 under this section. 

22 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated for the trans24 formation of rental assistance, including conversions 

25 under subsection (l), $350,000,000 for fiscal year 


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1 2011 and such sums as may be necessary for each 

2 of fiscal years 2012, 2013, 2014, and 2015. 

3 ‘‘(4) ALLOCATION.—The Secretary may allocate 

4 amounts for the transformation of rental assistance 

5 under this subsection, including for a portion of the 

6 funding of property-based and project-based voucher 

7 contracts, the costs of administration of a property8 based or project-based voucher contract for a par9 ticular property, promotion of tenant organizing 

10 rights and resident mobility (including of partici11 pants in the tenant-based voucher program under 

12 subsection (o)), relocation assistance pursuant to 

13 subsection (l)(9), efforts to affirmatively further fair 

14 housing, and expenses of combining administrative 

15 components of local programs under subsection (o) 

16 by competition or such other procedure the Sec17 retary determines appropriate, upon publication of 

18 notice in the Federal Register notice not later than 

19 30 days before such allocation is made. Except in 

20 the case of a competitive allocation, if the method of 

21 allocation from year to year does not change, publi22 cation of a new notice shall not be required.’’. 

23 SEC. 5. PROPERTY-BASED CONTRACTS. 

24 Section 8 of the United States Housing Act of 1937 

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1 sions of this Act, is further amended by inserting after 

2 subsection (m) the following new subsection: 

3 ‘‘(n) PROPERTY-BASED CONTRACTS.— 

4 ‘‘(1) AUTHORITY.—Subject to the availability of 

5 amounts provided in appropriations Acts and that 

6 otherwise become available, and to the control of the 

7 Secretary of applicable accounts in the Treasury of 

8 the United States, the Secretary may enter into a 

9 property-based housing assistance payment contract 

10 with respect to a property converted pursuant to 

11 subsection (l) or a replacement property, and may 

12 provide funds pursuant to such conditions and pro13 cedures as the Secretary may establish for a public 

14 housing agency to administer or assist in the admin15 istration of such property-based contract. 

16 ‘‘(2) CONTRACT TERM.—The Secretary may 

17 enter into a multi-year property-based contract for 

18 assistance pursuant to this subsection, subject to the 

19 availability of appropriations for each year of such 

20 contract, for the following terms: 

21 ‘‘(A) INITIAL TERM.— 

22 ‘‘(i) PUBLIC HOUSING.—A property23 based contract between the Secretary and 

24 the owner of a property assisted, prior to 


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1 conversion, under section 9 shall have an 

2 initial term of not fewer than 20 years. 

3 ‘‘(ii) OTHER HOUSING.—A property4 based contract between the Secretary and 

5 the owner of any other property shall have 

6 a term at least equal to the term remain7 ing on the contract being converted to a 

8 contract for rental assistance under this 

9 subsection, or may have a term of up to 20 

10 years, as determined by the Secretary. 

11 ‘‘(B) CONTRACT RENEWALS AND EXTEN12 SIONS.— 

13 ‘‘(i) AGREEMENT TO EXTEND OR

14 RENEW.—At any time during the term of 

15 a property-based contract, the Secretary 

16 may, at the request of the owner, agree to 

17 extend or renew the property-based con18 tract for up to a 20-year period beyond the 

19 initial contract term or the term of any re20 newal contract subject to the availability of 

21 appropriations for each year of such exten22 sion or renewal. In the initial contract or 

23 any renewal contract, the Secretary and 

24 the owner may agree to have such exten25 sions or renewals of the property-based 


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1 contract accepted by the owner and by the 

2 successors in interest of the owner. 

3 ‘‘(ii) RENEWAL CONTRACT.— 

4 ‘‘(I) RENEWAL.—During the 2- 

5 year period before the expiration of a 

6 property-based contract, the Secretary 

7 shall offer, and at the request of the 

8 owner shall agree to, a renewal con9 tract for a term of up to 20 years, 

10 subject to the requirements of sub11 clause (II) and the availability of ap12 propriations for each year of such re13 newal. 

14 ‘‘(II) PROHIBITION ON RE15 NEWAL.—The Secretary shall not 

16 offer or agree to renew a contract for 

17 the subject property— 

18 ‘‘(aa) if the Secretary deter19 mines, in consultation with the 

20 tenants and the local govern21 ment, that the property is obso22 lete as to physical condition, loca23 tion, or other factors that cannot 

24 be remedied with available Fed25 eral, State, and local resources, 


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1 making it unsuitable as low-in2 come housing; or 

3 ‘‘(bb) with an owner that is 

4 debarred or suspended, or found 

5 to be in serious and repeated 

6 noncompliance with applicable re7 quirements established by the 

8 Secretary. 

9 ‘‘(III) CONVERTED PUBLIC

10 HOUSING.—An owner of a property 

11 converted from assistance under sec12 tion 9 shall accept all renewal con13 tracts offered by the Secretary in ac14 cordance with this subparagraph. 

15 ‘‘(C) RENEWALS UPON EXPIRATION.— 

16 ‘‘(i) IN GENERAL.—At the request of 

17 an owner of a property with a property18 based contract that expires or otherwise 

19 terminates to renew such expired or termi20 nated contract in whole or in part, the Sec21 retary shall, subject to the requirements of 

22 subparagraph (B)(ii)(II), renew such con23 tract if eligible tenants in the property 

24 have not yet been issued tenant protection 

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1 merly provided to the property has not 

2 been transferred to another property or 

3 properties. 

4 ‘‘(ii) PARTIAL RENEWAL.—In the case 

5 of a partial renewal, the assistance not re6 newed may be transferred to another prop7 erty or properties or vouchers shall be pro8 vided in accordance with subsection (k). 

9 ‘‘(3) CALCULATION OF RENT TO OWNER.— 

10 ‘‘(A) INITIAL CALCULATION.— 

11 ‘‘(i) IN GENERAL.—The Secretary 

12 shall establish rents for each unit assisted 

13 under a property-based contract at the 

14 level requested by the owner but not to ex15 ceed the rents derived from comparable un16 assisted properties in the area, up to 110 

17 percent of the applicable area rental estab18 lished by the Secretary or such higher 

19 amount approved by the Secretary based 

20 on a determination by the Secretary that 

21 such higher amount is cost-effective con22 sidering the need for affordable housing by 

23 the types of households served by the prop24 erty and the quality and location of the 

25 property. For a property for which the 


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1 Secretary has approved under the Multi2 family Assisted Housing Reform and Af3 fordability Act of 1997 (42 U.S.C. 1437f 

4 note) a rent not in excess of the com5 parable rent at the time of such approval, 

6 the Secretary shall establish rents for each 

7 unit assisted under a property-based con8 tract at the higher of the level most re9 cently approved or the rent established 

10 under the preceding sentence. Prior to the 

11 agreement to enter into a contract under 

12 this subsection, the Secretary may approve 

13 upon an owner’s request a lower rent than 

14 that permitted under this clause if such 

15 lower rent is sufficient to meet the finan16 cial and physical sustainability needs of the 

17 property. 

18 ‘‘(ii) EXCEPTION PROPERTIES.— 

19 ‘‘(I) PROPERTY REQUIRE20 MENTS.—The maximum monthly rent 

21 may exceed the rents derived from 

22 comparable unassisted properties in 

23 the area upon a determination by the 

24 Secretary that such exception rents 

25 are necessary to meet the financial 


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1 and physical sustainability needs of 

2 the property, and that— 

3 ‘‘(aa) the property is not, or 

4 after planned rehabilitation will 

5 not be, obsolete as to physical 

6 condition, location, or other fac7 tors, making it unsuitable for 

8 housing purposes; and 

9 ‘‘(bb) a reasonable program 

10 of property modifications in com11 bination with rents determined 

12 under this clause will be cost-ef13 fective to extend the useful life of 

14 the property. 

15 ‘‘(II) RENT LIMITATION.—The 

16 Secretary may not approve an excep17 tion above the higher of 110 percent 

18 of the applicable area rental or 120 

19 percent of the rent for comparable un20 assisted properties in the area. The 

21 limitations of this subclause shall not 

22 apply if the property was, prior to 

23 conversion of assistance, subject to a 

24 rental assistance contract that has 

25 been renewed under section 515 of the 


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1 Multifamily Assisted Housing Reform 

2 and Affordability Act of 1997 (42 

3 U.S.C. 1437f note) with rents estab4 lished under section 514(g)(2) of such 

5 Act that, at the time of conversion of 

6 assistance, exceed the limit established 

7 in the preceding sentence. 

8 ‘‘(III) CONSIDERATION OF

9 OTHER FUNDS.—In determining 

10 whether to allow an exception rent, 

11 the Secretary shall consider the avail12 ability of unexpended funds that may 

13 be used to reduce or eliminate the 

14 need for an exception rent. 

15 ‘‘(iii) UNITS EXEMPT FROM RENT

16 CONTROL.—If a unit for which a property17 based contract is established is exempt 

18 from local rent control provisions during 

19 the term of such contract, the rent for that 

20 unit shall be reasonable in comparison with 

21 other units in the area that are exempt 

22 from local rent control provisions. 

23 ‘‘(B) RENT ADJUSTMENTS.—A property24 based contract pursuant to this subsection shall 

25 provide for annual rent adjustments using one 


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1 or more indices established by the Secretary 

2 (which shall not result in a negative adjust3 ment) by notice published in the Federal Reg4 ister to reflect the change in the rents and costs 

5 of multifamily rental housing, except that— 

6 ‘‘(i) the contract may provide that the 

7 maximum rent permitted for a unit shall 

8 not be less than the initial rent for the unit 

9 under the initial property-based contract 

10 under this subsection; 

11 ‘‘(ii) an owner may request a rent in12 crease above the index based on significant 

13 improvements to the property, subject to 

14 limitations in subparagraph (A) and any 

15 additional standards issued by the Sec16 retary; and 

17 ‘‘(iii) the Secretary may at any time, 

18 and at least every 5 years, compare the 

19 maximum rent to the level of rents charged 

20 for comparable units in the private, unas21 sisted local market, and shall, if appro22 priate, decrease the contract rent, subject 

23 to the limitations in clause (i) or any ex24 ception approved by the Secretary, and 

25 may, if appropriate, increase the contract 


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1 rent, subject to the limitations in subpara2 graph (A) and clause (ii) of this subpara3 graph. 

4 ‘‘(C) TAX CREDIT OR HOME PROJECTS.— 

5 In the case of a unit receiving tax credits pur6 suant to section 42 of the Internal Revenue 

7 Code of 1986 or for which assistance is pro8 vided under subtitle A of title II of the Cran9 ston-Gonzalez National Affordable Housing Act 

10 (42 U.S.C. 12741 et seq.) for which a property11 based contract is established under this sub12 section, rent reasonableness shall be determined 

13 as otherwise provided by this paragraph, except 

14 that comparison with rents for units in the pri15 vate, unassisted local market shall not be re16 quired if the rent is equal to or less than the 

17 rent for other comparable units receiving such 

18 tax credits or assistance in the project that are 

19 not occupied by families assisted under a prop20 erty-based contract. 

21 ‘‘(4) TENANT CONTRIBUTION.—A family shall 

22 pay as rent for a unit assisted under this subsection 

23 the amount determined in accordance with section 3 

24 (42 U.S.C. 1437a). 


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1 ‘‘(5) ELIGIBLE TENANTS.—To be eligible to be 

2 a tenant for a unit assisted under this subsection, a 

3 family shall, at the time a family initially receives 

4 assistance under this subsection, be— 

5 ‘‘(A) a family lawfully residing in a unit at 

6 the time of a conversion of assistance under 

7 subsection (l); or 

8 ‘‘(B) a low-income family meeting eligi9 bility criteria specified by the Secretary that 

10 fulfill the requirements under paragraphs (3) 

11 and (4) of section 16(c) (42 U.S.C. 1437n(c)). 

12 ‘‘(6) SELECTION OF TENANTS.— 

13 ‘‘(A) WAITING LISTS.—Subject to such 

14 conditions as may be established by the Sec15 retary, selection of tenants for units assisted 

16 under a property-based contract under this sub17 section shall be subject to the following: 

18 ‘‘(i) REQUIRED USE.—The owner 

19 shall select families for units assisted 

20 under such a contract from a waiting list 

21 for applicants for housing assistance under 

22 this subsection. If a property has rental as23 sistance that has been converted under 

24 subsection (l), any waiting list for the 


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1 property prior to conversion shall continue 

2 to apply after the conversion. 

3 ‘‘(ii) DELAY DUE TO RESIDENT

4 CHOICE OPTION.—Notwithstanding clause 

5 (i), the Secretary may establish policies to 

6 permit applicants on a tenant-based vouch7 er waiting list whose receipt of assistance 

8 is delayed due to the resident choice option 

9 under subsection (m)(1) to exercise the op10 tion to be placed on a waiting list for ap11 plicants for housing assistance under this 

12 subsection or subsection (o)(13). 

13 ‘‘(iii) MAINTENANCE OF WAITING

14 LIST.—An owner may maintain a waiting 

15 list or may use a waiting list maintained 

16 by a public housing agency on such terms 

17 and conditions as agreed to by the owner 

18 and public housing agency and permitted 

19 by the Secretary. 

20 ‘‘(iv) SINGLE AND SITE-BASED WAIT21 ING LISTS.—An owner of more than one 

22 property, or a public housing agency ad23 ministering waiting lists for properties as24 sisted under this subsection, may maintain 

25 a single waiting list for all or some of such 


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1 properties or may establish a site-based 

2 waiting list for individual properties. An 

3 owner or public housing agency shall dis4 close to each applicant all other options in 

5 the selection of a property in which to re6 side that are provided by the owner or ad7 ministered by the public housing agency 

8 and are available to the applicant. If a 

9 public housing agency administers site10 based waiting lists for more than one prop11 erty assisted under this subsection, an ap12 plicant may apply in a single location to all 

13 site-based waiting lists maintained by such 

14 an entity. 

15 ‘‘(v) PREFERENCES.—The owner or 

16 the public housing agency administering 

17 the waiting list for the property may estab18 lish preferences or criteria for tenant selec19 tion for a unit that are consistent with the 

20 affordable housing needs established for 

21 the area in which a property is located in 

22 the consolidated plan prepared pursuant to 

23 part 91 of the Secretary’s regulations (24 

24 C.F.R. part 91), or successor regulations. 


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1 ‘‘(vi) OUTREACH.—The owner or the 

2 public housing agency administering the 

3 waiting list for the property shall adopt af4 firmative marketing procedures and under5 take affirmative marketing activities. Such 

6 special outreach efforts shall be targeted to 

7 those who are least likely to apply for the 

8 housing to ensure that all persons, regard9 less of their race, color, national origin, re10 ligion, sex, disability, or familial status, are 

11 aware of the housing opportunities in each 

12 of the owner’s properties with rental assist13 ance. 

14 ‘‘(vii) COMPLIANCE WITH CIVIL

15 RIGHTS LAWS.—All procedures, pref16 erences, and criteria for waiting lists shall 

17 comply with title VI of the Civil Rights Act 

18 of 1964 (42 U.S.C. 2000d et seq.), the 

19 Fair Housing Act (42 U.S.C. 3601 et 

20 seq.), section 504 of the Rehabilitation Act 

21 of 1973 (29 U.S.C. 794), and other appli22 cable civil rights laws. 

23 ‘‘(B) SELECTION BY OWNER.—Each prop24 erty-based contract entered into by the Sec25 retary and an owner shall provide that the 


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1 screening and selection of families shall be the 

2 function of the owner. 

3 ‘‘(C) PREVENTION OF DISPLACEMENT.— 

4 Any family who resides in a unit proposed to be 

5 assisted under this subsection, or in a unit to 

6 be replaced by a unit proposed to be assisted 

7 under this subsection, shall be given an absolute 

8 preference for selection for placement in the 

9 unit proposed to be assisted, if the family is 

10 otherwise eligible for assistance under this sub11 section. 

12 ‘‘(7) LEASES AND TENANCY.—Each property13 based contract for a property converted under sub14 section (l) shall provide that the lease between the 

15 tenant and the owner— 

16 ‘‘(A) shall be for an initial term of 1 year, 

17 automatically renewable at the expiration of 

18 each term, and that the owner may terminate 

19 a tenancy only for serious or repeated violations 

20 of the terms and conditions of the lease or for 

21 a violation of applicable law; 

22 ‘‘(B) shall comply with subsection (c)(9); 

23 and 

24 ‘‘(C) shall contain provisions required by 

25 the Secretary and State and local law. 


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1 ‘‘(8) VACANCY PAYMENTS.— 

2 ‘‘(A) IN GENERAL.—For each property 

3 with assistance converted under this subsection, 

4 the owner may receive, as permitted by the Sec5 retary, for a reasonable period not exceeding 60 

6 days, vacancy payments for a unit that becomes 

7 vacant, but only if— 

8 ‘‘(i) the vacancy was not the fault of 

9 the owner of the dwelling unit; and 

10 ‘‘(ii) the owner has taken and con11 tinues to take every reasonable action to 

12 minimize the likelihood and extent of any 

13 such vacancy. 

14 ‘‘(B) LIMITATION.—Rental assistance may 

15 not be provided for a vacant unit after the expi16 ration of the 60-day period specified in sub17 paragraph (A). 

18 ‘‘(C) PROHIBITION OF DOUBLE COMPENSA19 TION FOR VACANCIES.—If the owner collects 

20 payments for vacancies from other sources, the 

21 owner shall not be entitled to collect vacancy 

22 payments to the extent these collections from 

23 other sources plus the vacancy payment exceed 

24 contract rent. 


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1 ‘‘(9) PHYSICAL INSPECTIONS OF PROP2 ERTIES.— 

3 ‘‘(A) REQUIREMENT.—The Secretary shall, 

4 for each property receiving assistance under 

5 this subsection, provide for inspections during 

6 the term of the property-based contract to de7 termine whether the property is maintained in 

8 accordance with the physical condition stand9 ards established or provided by the Secretary 

10 under subsection (m)(2)(E). The schedule of 

11 the inspections shall be determined by the Sec12 retary. 

13 ‘‘(B) FAILURE OF INSPECTION.—The Sec14 retary may take such actions as provided by law 

15 or contract to enforce and maintain compliance 

16 with applicable inspection standards. 

17 ‘‘(C) RECORDS.—The owner shall retain 

18 the records of the inspection for a reasonable 

19 time and shall make the records available upon 

20 request to the Secretary, the Inspector General 

21 of the Department of Housing and Urban De22 velopment, and any auditor conducting an audit 

23 under section 5(h) (42. U.S.C. 1437c(h)). 

24 ‘‘(D) STATE AND LOCAL INSPECTIONS.— 

25 For purposes of meeting the requirement under 


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1 subparagraph (A), the Secretary may accept in2 spection results from inspections conducted by 

3 a State or locality or a program funded or ad4 ministered by a State or locality if such inspec5 tion employs standards equivalent to or exceed6 ing the physical condition standards established 

7 by the Secretary. Such reserve requirements 

8 shall vary based on the anticipated physical 

9 needs of the property. 

10 ‘‘(10) USE OF RENTAL AMOUNTS.— 

11 ‘‘(A) RESERVE REQUIREMENTS.—An 

12 owner of a property with rental assistance 

13 under this subsection shall comply with oper14 ating and replacement reserve requirements es15 tablished by the Secretary. 

16 ‘‘(B) CASH FLOW LIMITATION.—The Sec17 retary may establish standards for the cash 

18 flow of a property, including standards applica19 ble upon suspension, expiration, or termination 

20 of rental assistance, with assistance under this 

21 subsection. Any access to cash flow shall not be 

22 limited based on the tax status of the property 

23 owner or project sponsor or whether the prop24 erty was formerly assisted under section 9. 


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1 ‘‘(11) EXPIRATION OR TERMINATION OF CON2 TRACT OR USE AGREEMENT.— 

3 ‘‘(A) VOUCHER ASSISTANCE.—In the case 

4 of a property-based contract that is no longer 

5 in effect and the property is no longer subject 

6 to a use agreement, in whole or in part, to the 

7 extent that amounts are provided in advance in 

8 appropriation Acts, upon the date of expiration 

9 of such contract or use agreement, whichever is 

10 later, the Secretary shall make voucher assist11 ance under subsection (t), or in the case of a 

12 contract that expires or is terminated because it 

13 does not meet the requirements of paragraph 

14 (2)(B)(ii)(II) of this subsection, voucher assist15 ance under subsection (o), available on behalf of 

16 each low-income family who, upon the date of 

17 such expiration, is residing in an assisted dwell18 ing unit in the property, and shall, subject to 

19 the availability of appropriations, provide re20 placement vouchers under subsection (o) for 

21 any vacant units subject to the contract at the 

22 time of expiration or termination. 

23 ‘‘(B) TRANSFER OF ASSISTANCE.—In lieu 

24 of providing vouchers pursuant to subparagraph 

25 (A) when a contract expires or is terminated, 


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1 the Secretary may, following notice and con2 sultation by the Secretary with tenants as pro3 vided in subsection (l)(3)(E)(i), transfer assist4 ance from a contract that is not renewed in 

5 whole or in part to a new contract with another 

6 property or properties, and in the case of a 

7 property converted from assistance under sec8 tion 9, shall transfer such assistance to a new 

9 contract with another property or properties 

10 with priority for a public entity owner, followed 

11 by a priority for a non-profit entity owner. 

12 ‘‘(12) FINANCIAL REVIEWS.—The owner of a 

13 property assisted under this subsection shall provide 

14 the Secretary an annual financial report of the prop15 erty, prepared and submitted in accordance with the 

16 requirements of the Secretary, which may include 

17 certification by the owner, a certified public account18 ant, or other person acceptable to the Secretary.’’. 

19 SEC. 6. PROJECT-BASED VOUCHER CONTRACTS. 

20 Paragraph (13) of section 8(o) of the United States 

21 Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amend22 ed— 

23 (1) by striking ‘‘structure’’ each place such 

24 term appears and inserting ‘‘project’’; 


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1 (2) by striking subparagraph (B) and inserting 

2 the following new subparagraph: 

3 ‘‘(B) PERCENTAGE LIMITATION.— 

4 ‘‘(i) IN GENERAL.—Subject to clauses 

5 (ii) and (iii), not more than 20 percent of 

6 the dwelling units assisted by the agency 

7 under this subsection may be assisted with 

8 project-based assistance under this para9 graph. 

10 ‘‘(ii) EXCEPTION.—Up to an addi11 tional 5 percent of the dwelling units as12 sisted by an agency under this subsection 

13 may be assisted with project-based assist14 ance under this paragraph to provide 

15 dwelling units that house individuals and 

16 families that meet the definition of home17 less under section 103 of the McKinney18 Vento Homeless Assistance Act (42 U.S.C. 

19 11302), that provide supportive housing to 

20 elderly persons or persons with disabilities, 

21 or that are located in areas where vouchers 

22 under this subsection are difficult to use, 

23 as specified in subparagraph (D)(ii)(II). 

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1 lish additional categories for the exception 

2 under this clause. 

3 ‘‘(iii) EXCEPTION FOR PROJECTS CON4 VERTED UNDER SUBSECTION (l).—An 

5 agency administering project-based assist6 ance under this paragraph pursuant to a 

7 conversion under subsection (l) may attach 

8 project-based assistance under this para9 graph to up to 40 percent of the dwelling 

10 units assisted by the agency under this 

11 subsection, but in no event may an agency 

12 attach project-based assistance through 

13 means other than conversion to more than 

14 the share of units permitted by clauses (i) 

15 and (ii) of this subparagraph.’’; 

16 (3) by striking subparagraph (D) and inserting 

17 the following new subparagraph: 

18 ‘‘(D) INCOME MIXING REQUIREMENT.— 

19 ‘‘(i) IN GENERAL.—Except as pro20 vided in clause (ii), of the dwelling units in 

21 any project, not more than the greater of 

22 25 units or 25 percent of the units may be 

23 assisted under a housing assistance pay24 ment contract for project-based assistance 

25 pursuant to this paragraph. For purposes 


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1 of this subparagraph, the term ‘project’ 

2 means a single building, multiple contig3 uous buildings, or multiple buildings on 

4 contiguous parcels of land. 

5 ‘‘(ii) EXCEPTIONS.— 

6 ‘‘(I) CERTAIN HOUSEHOLDS.— 

7 The limitation under clause (i) shall 

8 not apply to dwelling units assisted 

9 under a contract that are exclusively 

10 made available to elderly families or 

11 to households eligible for comprehen12 sive social services that are made 

13 available to residents of the property. 

14 The Secretary may establish addi15 tional requirements for the monitoring 

16 and oversight of projects in which 

17 more than 40 percent of the dwelling 

18 units are assisted. 

19 ‘‘(II) CERTAIN AREAS.—With re20 spect to areas in which tenant-based 

21 vouchers are difficult to use, as deter22 mined by the Secretary, and with re23 spect to census tracts with a poverty 

24 rate of 20 percent or less, clause (i) 

25 shall be applied by substituting ‘40 


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1 percent’ for ‘25 percent’ and the Sec2 retary may, by regulation, establish 

3 additional conditions. 

4 ‘‘(III) EXCEPTION FOR PROJECTS

5 CONVERTED UNDER SUBSECTION

6 (l).—In the case of a project assisted 

7 under this paragraph pursuant to a 

8 conversion under subsection (l), the 

9 exception in subclause (I) shall apply 

10 to not more than 40 percent of the 

11 dwelling units.’’; 

12 (4) by striking subparagraph (F) and inserting 

13 the following new subparagraph: 

14 ‘‘(F) CONTRACT TERM.—A housing assist15 ance payment contract pursuant to this para16 graph between a public housing agency and the 

17 owner of a project may have a term of up to 

18 20 years, subject to— 

19 ‘‘(i) the availability of sufficient ap20 propriated funds for the purpose of renew21 ing expiring contracts for assistance pay22 ments, as provided in appropriations Acts 

23 and in the agency’s annual contributions 

24 contract with the Secretary: Provided, 

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1 priated funds, payments due under con2 tracts under this paragraph shall take pri3 ority if other cost-saving measures that do 

4 not require the termination of an existing 

5 contract are available to the agency; and 

6 ‘‘(ii) compliance with the inspection 

7 requirements under paragraph (8), except 

8 that the Secretary may modify the applica9 tion of paragraph (8) to properties assisted 

10 under this paragraph, through actions in11 cluding permitting inspection of a sample 

12 of dwelling units in a project, avoiding du13 plicative requirements, and incentivizing 

14 high performance. 

15 The contract may specify additional conditions, 

16 including with respect to continuation, termi17 nation, or expiration.’’; 

18 (5) in subparagraph (G)— 

19 (A) in the second sentence, by striking 

20 ‘‘15’’ and inserting ‘‘20’’; 

21 (B) in the last sentence, by inserting ‘‘ex22 tension’’ after ‘‘enter into such a contract’’; 

23 (C) by striking the ‘‘(G) EXTENSION OF

24 CONTRACT TERM.—A public housing agency 


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1 may enter into a contract’’ and inserting the 

2 following: 

3 ‘‘(G) EXTENSION OF CONTRACT TERM.— 

4 ‘‘(i) IN GENERAL.—A public housing 

5 agency may enter into a contract exten6 sion’’; and 

7 (D) by adding at the end the following new 

8 clause: 

9 ‘‘(ii) CONVERTED PROPERTIES.—In 

10 the case of projects converted from other 

11 forms of rental assistance pursuant to sub12 section (l), a public housing agency may 

13 decline to offer to extend the term of the 

14 underlying housing assistance payment 

15 contract for the maximum period per16 mitted under clause (i) of this subpara17 graph only with the advance approval of 

18 the Secretary. The Secretary may grant 

19 approval to not extend a contract only— 

20 ‘‘(I) if the property is obsolete as 

21 to physical condition, location, or 

22 other factors which cannot be rem23 edied with available Federal, State, 

24 and local resources, making it unsuit25 able as low-income housing; 


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1 ‘‘(II) with an owner that is 

2 debarred or suspended, or found in to 

3 be in serious and repeated noncompli4 ance with applicable requirements es5 tablished by the Secretary; or 

6 ‘‘(III) if no funding is available 

7 that can be used for such exten8 sions.’’; 

9 (6) in subparagraph (H)— 

10 (A) in the first sentence, by striking ‘‘(or 

11 any exception payment standard approved by 

12 the Secretary pursuant to paragraph (1)(D)),’’ 

13 and inserting ‘‘(or any exception payment 

14 standard approved by the Secretary for the area 

15 pursuant to paragraph (1)(D) or for the 

16 project),’’; 

17 (B) by striking ‘‘(H) RENT CALCULA18 TION.—A housing’’ and inserting the following: 

19 ‘‘(H) RENT CALCULATION.— 

20 ‘‘(i) IN GENERAL.—A housing’’; and 

21 (C) by adding at the end the following new 

22 clause: 

23 ‘‘(ii) TENANTS OVER-INCOME FOR

24 CONTINUING SUBSIDY.—Subsection (l)(11) 

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1 graph, except that the public housing agen2 cy and the owner may agree to retain the 

3 number of dwelling units subject to a con4 tract for assistance under this subpara5 graph, subject to policies issued by the 

6 Secretary.’’; 

7 (7) by striking subparagraph (I) and inserting 

8 the following new subparagraph: 

9 ‘‘(I) RENT ADJUSTMENTS.— 

10 ‘‘(i) IN GENERAL.—A housing assist11 ance payment contract pursuant to this 

12 paragraph shall provide for reasonable rent 

13 adjustments if requested by the owner, ex14 cept that— 

15 ‘‘(I) the adjusted rent for any 

16 unit assisted shall be reasonable in 

17 comparison with rents charged for 

18 comparable dwelling units in the pri19 vate, unassisted, local market and 

20 may not exceed the maximum rent 

21 permitted under subparagraph (H); 

22 and 

23 ‘‘(II) the contract may provide 

24 that the maximum rent permitted for 

25 a dwelling unit shall not be less than 


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1 the initial rent for the dwelling unit 

2 under the initial housing assistance 

3 payments contract covering the unit. 

4 ‘‘(ii) SCHEDULED RENT ADJUST5 MENTS.—A housing assistance payment 

6 contract pursuant to this paragraph may, 

7 at the discretion of the Secretary, provide 

8 for annual rent adjustments using an index 

9 determined by the Secretary for adjust10 ment of contracts under subsection (n). 

11 Such a contract shall provide that— 

12 ‘‘(I) an owner may request a rent 

13 increase above the index based on sig14 nificant improvements to the project, 

15 subject to limitations in subparagraph 

16 (H) of this paragraph and any addi17 tional standards issued by the Sec18 retary; and 

19 ‘‘(II) the public housing agency 

20 shall, at least every 5 years, compare 

21 the maximum rent to the level of 

22 rents charged for comparable dwelling 

23 units in the private, unassisted local 

24 market, and shall, if appropriate, de25 crease the contract rent, subject to 


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1 the limitations in clause (i) or any ex2 ception approved by the Secretary, 

3 and may, if appropriate, increase the 

4 contract rent, subject to the limita5 tions in subparagraph (H).’’; 

6 (8) in subparagraph (J)— 

7 (A) by striking the last two sentences; 

8 (B) by inserting after the third sentence 

9 the following new sentence: ‘‘Any family who re10 sides in a dwelling unit proposed to be assisted 

11 under this paragraph, or in a unit to be re12 placed by a unit proposed to be assisted under 

13 this paragraph, shall be given an absolute pref14 erence for selection for placement in the pro15 posed unit, if the family is otherwise eligible for 

16 assistance under this subsection.’’; 

17 (C) by striking ‘‘(J) TENANT SELEC18 TION.—A public housing agency’’ and inserting 

19 the following: 

20 ‘‘(J) TENANT SELECTION.— 

21 ‘‘(i) IN GENERAL.—A public housing 

22 agency’’; and 

23 (D) by adding at the end the following new 

24 clause: 


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1 ‘‘(ii) SITE-BASED WAITING LISTS.—A 

2 public housing agency may establish and 

3 utilize procedures for maintaining site4 based waiting lists under which applicants 

5 may apply directly at, or otherwise des6 ignate to the public housing agency, the 

7 project or projects in which they seek to 

8 reside, except that all eligible applicants on 

9 the waiting list of an agency for assistance 

10 under this subsection shall be permitted to 

11 place their names on such separate lists, 

12 subject to policies and procedures specified 

13 by the Secretary. All such procedures shall 

14 comply with title VI of the Civil Rights Act 

15 of 1964 (42 U.S.C. 42 U.S.C. 2000d et 

16 seq.), the Fair Housing Act (42 U.S.C. 

17 3601 et seq.), section 504 of the Rehabili18 tation Act of 1973 (29 U.S.C. 794), and 

19 other applicable civil rights laws. The 

20 owner or manager of a project assisted 

21 under this paragraph shall not admit any 

22 family to a dwelling unit assisted under a 

23 contract pursuant to this paragraph other 

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1 ily on a site-based waiting list that com2 plies with the requirements of this sub3 paragraph. A public housing agency shall 

4 disclose to each applicant all other options 

5 in the selection of a project in which to re6 side that are provided by the public hous7 ing agency and are available to the appli8 cant.’’; 

9 (9) in subparagraph (K)(ii) by striking ‘‘the 

10 owner has notified the agency of the vacancy’’ and 

11 inserting ‘‘the unit has become vacant’’; and 

12 (10) by adding at the end the following new 

13 subparagraphs: 

14 ‘‘(N) LEASES AND TENANCY.—Notwith15 standing any other provision of law, for the 

16 term of the contract under this paragraph, the 

17 owner may terminate a tenancy only for serious 

18 or repeated violations of the terms and condi19 tions of the lease or for violation of applicable 

20 law. 

21 ‘‘(O) PROPERTIES IN FORECLOSURE OR

22 BANKRUPTCY.—Notwithstanding any provision 

23 of Federal or State law, for all properties as24 sisted under this paragraph on or after May 20, 


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1 2009, the provision of subsection (l)(18)(B) 

2 shall apply. 

3 ‘‘(P) CONVERSION FROM PROJECT-BASED

4 VOUCHER CONTRACT TO PROPERTY-BASED CON5 TRACT.—A property assisted under this para6 graph (in this subparagraph referred to as a 

7 ‘project-based voucher contract’) may convert to 

8 a property-based housing assistance payment 

9 contract under subsection (n) (in this subpara10 graph referred to as a ‘property-based con11 tract’) at the request of the owner of the prop12 erty and at the discretion of, and upon approval 

13 by, the Secretary if the property meets the ap14 plicable requirements under subsection (n), sub15 ject to the following requirements: 

16 ‘‘(i) CONTRACTS RESULTING FROM

17 CONVERSION.—If the project-based vouch18 er contract resulted from a conversion 

19 under subsection (l), the Secretary, upon 

20 approval of the request to convert to a 

21 property-based contract, shall reduce the 

22 annual contributions contract under this 

23 subsection of the public housing agency ad24 ministering the project-based voucher con25 tract by the appropriate number of units 


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1 and related funding, and transfer the fund2 ing to the entity administering the project3 based contract. 

4 ‘‘(ii) CONTRACTS NOT RESULTING

5 FROM CONVERSION.—If the project-based 

6 voucher contract did not result from a con7 version under subsection (l), and the public 

8 housing agency has not breached its con9 tractual obligations concerning the prop10 erty, the Secretary may approve the re11 quest only with the agreement of the public 

12 housing agency administering the project13 based voucher contract to the reduction of 

14 its annual contributions contract under 

15 this subsection by the appropriate number 

16 of units and related funding. 

17 ‘‘(Q) CONVERSION FROM TENANT-BASED

18 VOUCHERS TO PROPERTY-BASED CONTRACT.—A 

19 property with units assisted under this sub20 section or subsection (t) may convert to a prop21 erty-based housing assistance payment contract 

22 under subsection (n) (in this subparagraph re23 ferred to as a ‘property-based contract’), rather 

24 than to assistance under this paragraph, at the 

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1 ment of the public housing agency and at the 

2 discretion of, and upon approval by, the Sec3 retary if the property meets the applicable re4 quirements under subsection (n), subject to the 

5 following requirements: 

6 ‘‘(i) REDUCTION OF ANNUAL CON7 TRIBUTIONS CONTRACT.—The Secretary, 

8 upon approval of the request to convert to 

9 a property-based contract, shall reduce the 

10 annual contributions contract of the public 

11 housing agency administering the tenant12 based vouchers by the appropriate number 

13 of units and related funding, and transfer 

14 the funding to the entity administering the 

15 project-based contract. 

16 ‘‘(ii) RESIDENT CHOICE.—Tenants in 

17 units with assistance converted under this 

18 subparagraph shall be provided with a resi19 dent choice option as provided for in sub20 section (m)(1). 

21 ‘‘(iii) TREATMENT OF LIMITATION ON

22 TENANT-BASED VOUCHERS.—The percent23 age limitation on a public housing agency’s 

24 tenant-based vouchers converted to prop25 erty-based assistance under subparagraph 


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1 (B)(iii) shall include vouchers converted 

2 under this subparagraph. 

3 ‘‘(iv) SUBSTANTIAL AMENDMENT.— 

4 Conversion under this subparagraph shall 

5 be considered a substantial amendment to 

6 the public housing agency’s plan under sec7 tion 5A(g). 

8 ‘‘(v) CONSULTATION WITH RESI9 DENTS.—The owner of the property shall 

10 comply with the requirements established 

11 by the Secretary pursuant to subsection 

12 (l)(2)(E)(i) for consultation with residents 

13 about the owner’s intention to apply for 

14 conversion under this subparagraph.’’. 

15 SEC. 7. CONFORMING AMENDMENTS. 

16 (a) DEFINITION.—Subparagraph (B) of section 

17 3(b)(6) of the United States Housing Act of 1937 (42 

18 U.S.C. 1437a(b)(6)(B)) is amended— 

19 (1) by striking ‘‘tenant-based’’ each place such 

20 term appears; 

21 (2) in the subparagraph heading, by striking 

22 ‘‘PROGRAM’’ and inserting ‘‘PROGRAMS’’; 

23 (3) and in the matter preceding clause (i), by 

24 striking ‘‘program’’ and inserting ‘‘programs’’; and 


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1 (4) by striking clauses (i) and (ii) and inserting 

2 the following: 

3 ‘‘(i) any State, county, municipality, 

4 or other governmental entity or public 

5 body, or an agency or instrumentality of 

6 such an entity, and a non-profit entity, 

7 that has the capability to administer a pro8 gram for assistance under such section in 

9 an efficient manner and, notwithstanding 

10 any provision of State or local law, without 

11 regard to any otherwise applicable limita12 tions on its area of operation, as deter13 mined by the Secretary; 

14 ‘‘(ii) a consortium of public housing 

15 agencies, which shall have a legal entity or 

16 entities authorized to act as the legal rep17 resentative of the consortium members; 

18 and’’. 

19 (b) ADMINISTRATIVE FEE.—Paragraph (1) of section 

20 8(q) of the United States Housing Act of 1937 (42 U.S.C. 

21 1437f(q)(1)) is amended by adding at the end the fol22 lowing new subparagraph: 

23 ‘‘(F) CONVERSION RENTAL ASSISTANCE

24 ADMINISTRATOR.—The Secretary may establish 

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1 retary, for the administration of the rental as2 sistance for properties converted to a project3 based voucher contract under subsection (l).’’. 

4 (c) RENEWAL OF MAINSTREAM TENANT-BASED

5 RENTAL ASSISTANCE PROGRAM THROUGH SECTION 8 

6 VOUCHER PROGRAM.— 

7 (1) RENTAL ASSISTANCE.—Subsection (d) of 

8 section 811 of the Cranston-Gonzalez National Af9 fordable Housing Act (42 U.S.C. 8013(d)) is amend10 ed by striking paragraph (4) and inserting the fol11 lowing new paragraph: 

12 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.— 

13 ‘‘(A) IN GENERAL.—Tenant-based rental 

14 assistance provided under subsection (b)(1) 

15 shall be provided under section 8(o) of the 

16 United States Housing Act of 1937 (42 U.S.C. 

17 1437f(o)). 

18 ‘‘(B) CONVERSION OF EXISTING ASSIST19 ANCE.—There is authorized to be appropriated 

20 for tenant-based rental assistance under section 

21 8(o) of the United States Housing Act of 1937 

22 (42 U.S.C. 1437f(o)) for persons with disabil23 ities, an amount not less than the amount nec24 essary to convert the number of authorized 

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1 tributions contract in effect on the date of en2 actment of the Rental Housing Revitalization 

3 Act of 2010. Such converted vouchers may be 

4 administered by the entity administering the 

5 vouchers prior to conversion. Such entities shall 

6 be considered a public housing agency author7 ized to engage in the operation of tenant-based 

8 assistance under such section 8(o). 

9 ‘‘(C) REQUIREMENTS UPON TURNOVER.— 

10 The Secretary shall develop and issue, to public 

11 housing agencies that receive voucher assistance 

12 made available under this subsection and to 

13 public housing agencies that received voucher 

14 assistance under section 8(o) of the United 

15 States Housing Act of 1937 (42 U.S.C. 

16 1437f(o)) for non-elderly disabled families pur17 suant to appropriation Acts for fiscal years 

18 1997 through 2002 or any other subsequent ap19 propriations for incremental vouchers for non20 elderly disabled families, guidance to ensure 

21 that such vouchers continue to be provided 

22 upon turnover to qualified persons with disabil23 ities or to qualified non-elderly disabled fami24 lies, respectively.’’. 


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1 (2) UNEXPENDED AMOUNTS.—Unexpended 

2 amounts made available in prior year appropriations 

3 Acts for the Department of Housing and Urban De4 velopment under the heading ‘‘Housing for Persons 

5 with Disabilities’’ or the heading ‘‘Housing for Spe6 cial Populations’’ for contracts under section 811 of 

7 the Cranston-Gonzalez National Affordable Housing 

8 Act (42 U.S.C. 8013) shall be available until ex9 pended for renewal of vouchers converted under sec10 tion 811(d)(4)(B) of the Cranston-Gonzalez Na11 tional Affordable Housing Act (42 U.S.C. 

12 8013(d)(4)(B)), as amended by paragraph (1) of 

13 this subsection, notwithstanding the period of avail14 ability for such amounts established in such prior 

15 appropriations Acts. The Secretary may reallocate 

16 such amounts to administering entities for the pur17 pose of establishing a reserve in an amount deter18 mined by the Secretary up to the amount as may be 

19 otherwise established by law. 

20 (3) TECHNICAL ASSISTANCE.—The Secretary of 

21 Housing and Urban Development may, to the extent 

22 amounts are made available in appropriations Acts, 

23 provide technical assistance to public housing agen24 cies and other administering entities to facilitate 

25 using vouchers to provide permanent supportive 


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1 housing for persons with disabilities, to assist States 

2 to reduce reliance on segregated restrictive settings 

3 for people with disabilities to meet community care 

4 requirements, to end chronic homelessness (as 

5 ‘‘chronically homeless’’ is defined in section 401 of 

6 the McKinney-Vento Homeless Assistance Act (42 

7 U.S.C. 11361)), and for other related purposes. 

8 (d) INCOME ELIGIBILITY.—Paragraph (6) of section 

9 16(c) (42 U.S.C. 1437n(c)(6)) is amended by adding at 

10 the end the following new subparagraph: 

11 ‘‘(H) The property-based contract program 

12 under section 8(n).’’. 

13 (e) ENFORCEMENT PROVISIONS.—Section 29 of the 

14 United States Housing Act of 1937 (42 U.S.C. 1437z– 

15 1) is amended— 

16 (1) in subsection (b)— 

17 (A) in paragraph (1)— 

18 (i) in subparagraph (B), by striking 

19 ‘‘and’’ after the semicolon; 

20 (ii) in subparagraph (C) by striking 

21 ‘‘that has an identity of interest with the 

22 owner or the general partner of a partner23 ship owner of the property;’’ and inserting 

24 ‘‘; and’’; and 


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1 (iii) by adding at the end the fol2 lowing new subparagraph: 

3 ‘‘(D) any member of a limited liability 

4 company that is the owner of such property or 

5 is the general partner of a limited partnership 

6 owner or is a partner of a general partnership 

7 owner.’’; 

8 (B) in paragraph (2)— 

9 (i) in the matter preceding subpara10 graph (A) by inserting ‘‘or use agree11 ment,’’ before the comma; 

12 (ii) in subparagraph (A), by striking 

13 ‘‘or’’ at the end; 

14 (iii) in subparagraph (B), by striking 

15 the period at the end and inserting a semi16 colon; and 

17 (iv) by adding at the end the following 

18 new subparagraphs: 

19 ‘‘(C) failure of an owner of a property re20 ceiving project-based assistance under section 8 

21 to submit an annual audited financial statement 

22 to the Secretary in the form and manner estab23 lished by the Secretary; 

24 ‘‘(D) failure of an owner of a property re25 ceiving project-based assistance under section 8 


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1 to provide management for the property that is 

2 acceptable to the Secretary pursuant to regula3 tions and requirements of the Secretary, includ4 ing— 

5 ‘‘(i) proper fiscal management; 

6 ‘‘(ii) proper handling of vacancies and 

7 tenanting in accordance with regulations 

8 set forth by the Secretary; 

9 ‘‘(iii) appropriate handling of rent col10 lection; 

11 ‘‘(iv) proper property maintenance; 

12 and 

13 ‘‘(v) compliance with regulations set 

14 forth by the Secretary on tenant organiza15 tion; 

16 ‘‘(E) failure to provide access to the books, 

17 records, and accounts related to the operations 

18 of the project; or 

19 ‘‘(F) failure to permit physical access to 

20 the property or any unit of the property.’’; and 

21 (C) in paragraph (3), by striking 

22 ‘‘$25,000’’ and inserting ‘‘$37,500’’; and 

23 (2) in subsection (c)(1)— 


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1 (A) by redesignating subparagraphs (B) 

2 and (C) as subparagraphs (C) and (D), respec3 tively; and 

4 (B) by inserting after subparagraph (A) 

5 the following new subparagraph: 

6 ‘‘(B) shall provide the Secretary the discre7 tion to investigate any facts, conditions, prac8 tices, or matters that may be deemed necessary 

9 or proper to aid in the enforcement of the pro10 visions of this Act; to aid in the investigations, 

11 the Secretary may hold such hearings, admin12 ister such oaths, and require by subpoena the 

13 attendance and testimony of such witnesses and 

14 production of such documents as the Secretary 

15 deems advisable, and such subpoena authority 

16 shall include the authority to require the at17 tendance of any witness and the production of 

18 documentary evidence from any place in the 

19 United States at any designated place of hear20 ing; any district court of the United States 

21 within the jurisdiction of which an inquiry is 

22 carried on may, in the case of contumacy or re23 fusal to obey a subpoena of the Secretary issued 

24 under this section, issue an order requiring 

25 compliance therewith; any failure to obey such 


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1 order of the court may be punished by such 

2 court as a contempt thereof;’’; and 

3 (3) in subsection (g), by striking paragraph (1) 

4 and inserting the following new paragraph: 

5 ‘‘(1) IN GENERAL.—Notwithstanding any other 

6 provision of law, the Secretary shall apply civil 

7 money penalties collected under this section to the 

8 Rental Assistance Conversion Trust Fund, estab9 lished under section 8(l)(21), or shall authorize the 

10 owner of the property or project at issue in the pen11 alty action to use the penalty funds, in accordance 

12 with the requirements of the Secretary, for the im13 provement of that property or project.’’. 

14 (f) AMENDMENTS TO SECTION 3 OF THE HOUSING

15 AND URBAN DEVELOPMENT ACT OF 1968.—Subsection 

16 (c) of section 3 of the Housing and Urban Development 

17 Act of 1968 (12 U.S.C. 1701u(c)) is amended— 

18 (1) in paragraph (1)— 

19 (A) by striking the paragraph designation 

20 and all that follows through ‘‘(A) IN GEN21 ERAL.—The Secretary’’ and inserting the fol22 lowing: 

23 ‘‘(1) PUBLIC AND INDIAN HOUSING PRO24 GRAMS.—The Secretary’’; and 

25 (B) by striking subparagraph (B); 


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1 (2) in paragraph (2)— 

2 (A) by striking the paragraph designation 

3 and all that follows through ‘‘(A) IN GEN4 ERAL.—In other’’ and inserting the following: 

5 ‘‘(1) OTHER PROGRAMS.—In other’’; and 

6 (B) by striking subparagraph (B); and 

7 (3) by adding at the end the following new 

8 paragraphs: 

9 ‘‘(3) PRIORITY.—The efforts required under 

10 paragraphs (1) and (2) of this subsection shall be di11 rected in the following order of priority: 

12 ‘‘(A) First, to recipients of Federal rental 

13 assistance, including public housing residents, 

14 residents of other federally subsidized prop15 erties, or participants in the program under 

16 section 8(o) of the U.S. Housing Act in the 

17 service area and metropolitan area (or non-met18 ropolitan county). 

19 ‘‘(B) Next, to low- and very low-income 

20 residents in the service area and metropolitan 

21 area (or non-metropolitan county). 

22 ‘‘(C) Next, to other residents, as des23 ignated by the Secretary by regulation. 

24 ‘‘(4) SCOPE.—For properties with rental assist25 ance converted under section 8(l) of the United 


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1 States Housing Act of 1937, the requirements of 

2 paragraphs (1)(A) and (2)(A) of this subsection, as 

3 in effect immediately before the enactment of the 

4 Rental Housing Revitalization Act of 2010, shall 

5 continue to apply.’’. 

Æ 


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