II 

113TH CONGRESS 

1ST SESSION S. 437 

To authorize the Department of Housing and Urban Development to transform neighborhoods of extreme poverty into sustainable, mixed-income 

neighborhoods with access to economic opportunities, by revitalizing severely distressed housing, and investing and leveraging investments in 

well-functioning services, educational opportunities, public assets, public 

transportation, and improved access to jobs. 

IN THE SENATE OF THE UNITED STATES 

MARCH 4, 2013 

Mr. MENENDEZ introduced the following bill; which was read twice and 

referred to the Committee on Health, Education, Labor, and Pensions 

APRIL 22, 2013 

Committee discharged; referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To authorize the Department of Housing and Urban Development to transform neighborhoods of extreme poverty 

into sustainable, mixed-income neighborhoods with access 

to economic opportunities, by revitalizing severely distressed housing, and investing and leveraging investments in well-functioning services, educational opportunities, public assets, public transportation, and improved 

access to jobs. 

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


PWALKER on DSK7TPTVN1PROD with BILLS
2 

S 437 RCS 

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Choice Neighborhoods Initiative Act of 2013’’. 

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. Grant authority. 

Sec. 4. Eligible entities. 

Sec. 5. Eligible neighborhoods. 

Sec. 6. Authorized activities. 

Sec. 7. Interagency consultation and notification of available funding. 

Sec. 8. Transformation plan and selection. 

Sec. 9. Program requirements. 

Sec. 10. Definitions. 

Sec. 11. Demolition and disposition. 

Sec. 12. Administration by other entities. 

Sec. 13. Withdrawal of funding. 

Sec. 14. Annual report. 

Sec. 15. Program evaluation. 

Sec. 16. Funding. 

6 SEC. 2. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress finds that— 

8 (1) the geographic concentration of poverty re9 mains a serious and often unrecognized challenge to 

10 the ability of poor families and children to access op11 portunity and move up the economic ladder; 

12 (2) the HOPE VI program, authorized by sec13 tion 24 of the United States Housing Act of 1937 

14 (42 U.S.C. 1437v), presented a successful first step 

15 in transforming neighborhoods of extreme poverty 

16 with severely distressed housing into revitalized 

17 mixed-income neighborhoods; 


PWALKER on DSK7TPTVN1PROD with BILLS
3 

S 437 RCS 

1 (3) there remains a large amount of severely 

2 distressed public and privately owned assisted hous3 ing concentrated in neighborhoods of extreme pov4 erty; and 

5 (4) a broader approach is needed, using con6 centrated and coordinated neighborhood investment 

7 from multiple sources to transform neighborhoods of 

8 extreme poverty into communities that will improve 

9 the quality of life of current and future residents. 

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

11 (1) to transform neighborhoods of extreme pov12 erty into mixed-income neighborhoods of long-term 

13 viability, by revitalizing severely distressed housing, 

14 improving access to economic opportunities, and in15 vesting and leveraging investments in well-func16 tioning services, effective schools and education pro17 grams, public assets, public transportation, and im18 proved access to jobs; 

19 (2) to grow communities and metropolitan 

20 areas by concentrating, leveraging, and coordinating 

21 Federal, State, local, and private funding for public 

22 transportation, education, housing, energy, health 

23 and mental health services, supportive services, pub24 lic safety, and environmental programs and initia25 tives; 


PWALKER on DSK7TPTVN1PROD with BILLS
4 

S 437 RCS 

1 (3) to support positive outcomes for all neigh2 borhood residents, including improvements in edu3 cational achievements, and economic self-sufficiency; 

4 and 

5 (4) to ensure that current residents benefit 

6 from transformation by preserving affordable hous7 ing in the neighborhood or providing residents with 

8 the choice to move to affordable housing in another 

9 neighborhood of opportunity. 

10 SEC. 3. GRANT AUTHORITY. 

11 The Secretary is authorized to make competitive 

12 grants to eligible entities that submit transformation plans 

13 that will further the purposes of this Act in eligible neigh14 borhoods. 

15 SEC. 4. ELIGIBLE ENTITIES. 

16 Entities eligible to be grantees under this Act include 

17 local governments, public housing agencies, community de18 velopment corporations (as defined in section 204(b)(11) 

19 of the Departments of Veterans Affairs and Housing and 

20 Urban Development, and Independent Agencies Appro21 priations Act, 1997 (12 U.S.C. 1715z–11a(b)(11))), as22 sisted housing owners, and other for-profit and nonprofit 

23 entities. 


PWALKER on DSK7TPTVN1PROD with BILLS
5 

S 437 RCS 

1 SEC. 5. ELIGIBLE NEIGHBORHOODS. 

2 Eligible neighborhoods for grant funds under this Act 

3 include neighborhoods with— 

4 (1) a concentration of extreme poverty; 

5 (2) severely distressed housing; and 

6 (3) a potential for long-term viability, once key 

7 problems are addressed, including neighborhoods 

8 with characteristics such as proximity to educational 

9 institutions, medical centers, central business dis10 tricts, major employers, effective transportation al11 ternatives (including public transit, walking, and bi12 cycling) and being close to low-poverty neighbor13 hoods. 

14 SEC. 6. AUTHORIZED ACTIVITIES. 

15 (a) IN GENERAL.—Activities authorized to be funded 

16 under this Act are those that will further the purposes 

17 of this Act, in accordance with a transformation plan ap18 proved under section 8, to carry out transformational pro19 grams and initiatives. 

20 (b) REQUIRED ACTIVITIES.—The following author21 ized activities shall be contained in the transformation 

22 plan to be submitted under section 8 and implemented by 

23 a grantee under an approved transformation plan: 

24 (1) The transformation of housing through re25 habilitation, preservation, or demolition, or any com26 bination thereof, and replacement of severely disVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
6 

S 437 RCS 

1 tressed housing projects that incorporates energy ef2 ficient design principles. 

3 (2) Activities that promote the economic self4 sufficiency of residents of the revitalized housing 

5 and of the surrounding neighborhood. 

6 (3) Activities that preserve affordable housing 

7 in the neighborhood and other activities necessary to 

8 ensure that existing residents have access to the 

9 benefits of the neighborhood transformation. 

10 (4) Activities that demonstrate that each tenant 

11 relocated from severely distressed housing who wish12 es to return to the revitalized on-site housing in the 

13 neighborhood or to replacement housing outside of 

14 the neighborhood, can return, and shall be provided 

15 a preference in accordance with the program re16 quirements in section 9(a). 

17 (5) Activities that meet the program require18 ments for replacement of housing units in section 

19 9(b). 

20 (6) Activities that meet the fair housing pro21 gram requirements in section 9(c) and the accessi22 bility requirements in section 9(d). 

23 (7) Appropriate service coordination, support 

24 services, mobility counseling, and housing search asVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
7 

S 437 RCS 

1 sistance for residents displaced as a result of revital2 ization of severely distressed projects. 

3 (8) Involvement of residents of severely dis4 tressed housing and of the neighborhood in planning 

5 and implementation of the transformation plan, in6 cluding reasonable steps to help ensure meaningful 

7 participation for residents who, as a result of their 

8 national origin, are limited in their English pro9 ficiency. 

10 (9) Relocation assistance, including tenant11 based rental assistance renewable under section 8 of 

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

13 1437f), and supportive services for families that are 

14 displaced, including mobility and relocation coun15 seling over multiple years, reasonable moving costs, 

16 and security deposits. 

17 (10) Tracking of tenants relocated during rede18 velopment throughout the life of the grant or until 

19 full occupancy of replacement housing, whichever is 

20 longer. 

21 (11) Links to local education efforts, as de22 scribed in subsection (c)(4). 

23 (c) ELIGIBLE ACTIVITIES.—In addition to the activi24 ties required under subsection (b), activities eligible for 

25 funding under this Act include— 


PWALKER on DSK7TPTVN1PROD with BILLS
8 

S 437 RCS 

1 (1) construction, acquisition or rehabilitation of 

2 public, assisted, and privately owned housing that 

3 incorporates sustainable design principles, including 

4 energy efficiency; 

5 (2) construction, acquisition, or rehabilitation of 

6 mixed-use developments that include public or as7 sisted housing; 

8 (3) the acquisition, demolition, or disposition of 

9 properties, including Federal Housing Administra10 tion-foreclosed properties; 

11 (4) partnering with local educators, and engag12 ing in local community planning, to help increase ac13 cess to place-based programs that combine a con14 tinuum of effective community services, strong fam15 ily support, and comprehensive education reform to 

16 improve the educational and life outcomes for resi17 dent children and youth; 

18 (5) providing support services for residents pri19 marily focused on case management, service coordi20 nation (including family self-sufficiency coordina21 tors), workforce development, financial literacy and 

22 technical assistance to enable residents to access 

23 programs from other key agencies and local service 

24 providers, in order to help residents with stable 

25 housing, improve outcomes for children, enhance 


PWALKER on DSK7TPTVN1PROD with BILLS
9 

S 437 RCS 

1 adults’ capacity for self-sufficiency and economic se2 curity, and services for the elderly and persons with 

3 disabilities to maintain independence; 

4 (6) rehabilitation, physical improvement and de5 velopment of community facilities that are primarily 

6 intended to facilitate the delivery of economic, com7 munity, and supportive services which have a signifi8 cant benefit to residents of housing assisted by the 

9 grant and residents of off-site replacement housing; 

10 (7) work incentives designed to help public and 

11 assisted housing residents access jobs and move to12 ward self-sufficiency; 

13 (8) partnerships involving the police, commu14 nity organizations, and other entities to reduce crime 

15 and promote safety; 

16 (9) partnering with employers and for-profit 

17 and nonprofit organizations to create jobs and job 

18 training opportunities, with a focus on job opportu19 nities accessible by mass transit; 

20 (10) activities that promote sustainable neigh21 borhoods and incorporate principles of sustainable 

22 design and development; 

23 (11) critical community improvements not oth24 erwise covered by this Act; and 


PWALKER on DSK7TPTVN1PROD with BILLS
10 

S 437 RCS 

1 (12) loss reserves to protect residents of hous2 ing assisted by the grant and continue the project in 

3 case of default, foreclosure, or any other adverse fi4 nancial event. 

5 (d) ELIGIBLE METHODS OF SUPPORT.—Activities 

6 carried out with amounts from a grant under this Act may 

7 be carried out through— 

8 (1) endowments, revolving loan funds, reserves 

9 or other instruments that the Secretary approves for 

10 tenant services and ongoing operating and capital 

11 needs; and 

12 (2) land assembly and land banking. 

13 (e) FUNDING RESTRICTIONS.— 

14 (1) RESTRICTION ON ACTIVITIES.— 

15 (A) IN GENERAL.—No funds made avail16 able under this Act may be used for construc17 tion or rehabilitation of a K–12 school building 

18 or a higher educational institution. 

19 (B) NON-HOUSING ACTIVITIES AND SUP20 PORTIVE SERVICES.—For each grant under this 

21 Act, the grantee shall comply with each of the 

22 following requirements: 

23 (i) Not more than 30 percent of the 

24 amount of the grant may be used for eligiVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
11 

S 437 RCS 

1 ble activities under paragraphs (4) through 

2 (12) of subsection (c). 

3 (ii) Not more than 5 percent of the 

4 amount of the grant may be used for eligi5 ble activities under paragraphs (8) and (9) 

6 of subsection (c). 

7 (2) WAIVER.—The Secretary may waive the 

8 funding limits in this subsection in order to promote 

9 the purposes of this Act. 

10 SEC. 7. INTERAGENCY CONSULTATION AND NOTIFICATION 

11 OF AVAILABLE FUNDING. 

12 (a) ANNUAL CONSULTATION.—The Secretary shall 

13 consult with appropriate Federal agencies to identify addi14 tional funding opportunities that may be available to eligi15 ble neighborhoods and ensure that eligible entities are 

16 aware of such opportunities as follows: 

17 (1) The Secretary shall consult with the Sec18 retary of Labor, the Secretary of Education, the 

19 Secretary of Transportation, the Secretary of Health 

20 and Human Services, the Administrator of the Envi21 ronmental Protection Agency, and other agencies, as 

22 the President may prescribe. 

23 (2) The Secretary shall include in the notifica24 tion of funding availability for Choice Neighborhoods 

25 information about other Federal funding opportuniVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
12 

S 437 RCS 

1 ties that the Secretary deems related to the Choice 

2 Neighborhoods program. 

3 (3) The Secretary shall consult with the Sec4 retary of Labor, the Secretary of Education, the 

5 Secretary of Transportation, the Secretary of Health 

6 and Human Services, the Administrator of the Envi7 ronmental Protection Agency, and other agencies, as 

8 the Secretary may prescribe, to identify barriers to 

9 and opportunities for greater coordination of Federal 

10 resources for meeting the purposes of this Act. 

11 (b) REPORTS TO CONGRESS.—The Secretary shall— 

12 (1) not later than 1 year after the date of en13 actment of this Act, issue a report to the Committee 

14 on Banking, Housing, and Urban Affairs of the Sen15 ate and the Committee on Financial Services of the 

16 House of Representatives identifying barriers and 

17 opportunities to the coordination of Federal funding 

18 to meet the purposes of this Act, including any regu19 latory or statutory recommendations for addressing 

20 such barriers; and 

21 (2) issue an annual report to be posted on the 

22 agency Web site that identifies Federal funding op23 portunities for eligible neighborhoods and best prac24 tices in coordinating Federal funding for purposes of 

25 this Act. 


PWALKER on DSK7TPTVN1PROD with BILLS
13 

S 437 RCS 

1 SEC. 8. TRANSFORMATION PLAN AND SELECTION. 

2 (a) TRANSFORMATION PLAN.—An application for a 

3 grant under this Act shall be submitted in the form of 

4 a transformation plan that— 

5 (1) demonstrates how the transformation plan 

6 will achieve the desired priority outcomes of trans7 forming a distressed neighborhood of extreme pov8 erty into a mixed-income neighborhood with high9 quality, safe, affordable housing, economic opportu10 nities, well-functioning services, public assets, access 

11 to jobs, public transportation, and effective edu12 cation programs and public schools, including char13 ter schools and other autonomous public schools; 

14 (2) includes a long-term affordability plan that 

15 describes how the grantee will maintain affordable 

16 housing in the neighborhood over the succeeding 50 

17 years or longer, including affordability provisions re18 lating to dwelling units provided using assistance 

19 under the grant under this Act, and an agreement 

20 by the applicant to update such plan every 5 years 

21 during such period; 

22 (3) demonstrates how the required activities 

23 under section 6(b) will be carried out, with par24 ticular focus on the housing transformation; 


PWALKER on DSK7TPTVN1PROD with BILLS
14 

S 437 RCS 

1 (4) describes the other eligible activities listed 

2 in section 6(c) that will occur in support of the 

3 housing transformation; 

4 (5) defines desired outcomes of the strategy, 

5 identifies the population that will benefit, describes 

6 the challenges they face, and the evidence base that 

7 informs the proposed strategies that will result in 

8 the desired outcomes for the community and resi9 dents; and 

10 (6) includes such other information and shall be 

11 submitted at such time and in accordance with pro12 cedures as the Secretary shall prescribe. 

13 (b) SELECTION CRITERIA.—The Secretary shall es14 tablish criteria for the award of grants under this Act, 

15 which shall include the extent to which the transformation 

16 plan— 

17 (1) demonstrates the ability of the plan to fur18 ther the purposes of this Act, as evidenced by, 

19 among other factors, a track record of effective part20 nerships and community engagement; 

21 (2) demonstrates inclusive local planning with 

22 input from local government, housing owners and 

23 providers, educators, residents, local community or24 ganizations, public schools, early learning programs, 

25 health service organizations, and community stakeVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
15 

S 437 RCS 

1 holders in the development and implementation of a 

2 sustainable revitalization program; 

3 (3) coordinates multiple funding resources, in4 cluding public, private, and philanthropic funding, 

5 and emphasizes collaboration between the local gov6 ernment, early learning programs, and public 

7 schools, or a public housing agency, or all three; 

8 (4) submits current data showing that the 

9 neighborhood targeted for revitalization is in need of 

10 and can benefit from the authorized activities de11 scribed in section 6 and proposed in the trans12 formation plan; 

13 (5) demonstrates that the neighborhood has, or 

14 will have, the potential for long-term viability; 

15 (6) demonstrates the capability and record of 

16 the applicant and its partners for managing housing 

17 redevelopment or modernization projects and meet18 ing performance benchmarks; 

19 (7) demonstrates that sustainable building and 

20 energy efficient design principles are incorporated or 

21 will be incorporated in the activities; 

22 (8) demonstrates that the neighborhood has, or 

23 will have within a reasonable time, public transpor24 tation that provides effective access to economic op25 portunities and commercial and public services; 


PWALKER on DSK7TPTVN1PROD with BILLS
16 

S 437 RCS 

1 (9) demonstrates that the residents of revital2 ized housing developments have or will have access 

3 to high-quality educational opportunities, including 

4 early learning and effective K–12 public schools, in 

5 or outside of the neighborhood; 

6 (10) demonstrates that the transformation plan 

7 includes the provision of appropriate supportive serv8 ices and activities that promote economic self-suffi9 ciency of residents, and a plan to sustain those serv10 ices; 

11 (11) demonstrates that the transformation plan 

12 provides support for residents displaced as a result 

13 of the revitalization of the project, including assist14 ance in obtaining housing in areas with low con15 centrations of poverty and minority populations; 

16 (12) demonstrates that sufficient housing op17 portunities are available in the neighborhood to be 

18 revitalized and in nonminority, low-poverty areas to 

19 accommodate displaced residents; 

20 (13) has a well-documented assessment of the 

21 number of households with special needs for ongoing 

22 supportive services residing in the public or assisted 

23 properties that are the target of the grant and an 

24 effective plan to address those needs; 


PWALKER on DSK7TPTVN1PROD with BILLS
17 

S 437 RCS 

1 (14) demonstrates the ability to leverage funds 

2 from— 

3 (A) other programs of the Department of 

4 Housing and Urban Development; 

5 (B) other Federal, State, or local pro6 grams; or 

7 (C) the private sector, including donations 

8 of land or services; 

9 (15) replaces the public and assisted housing 

10 units in accordance with section 9(2), if targeting a 

11 project that meets the definition of section 10(9)(B); 

12 (16) demonstrates, if feasible, phased redevelop13 ment that provides for demolition and construction 

14 of dwelling units in phases, to limit disruptions to 

15 residents; 

16 (17) demonstrates how the applicant will use 

17 indicators of housing redevelopment, neighborhood 

18 quality, resident well-being, and other outcomes to 

19 measure success, manage program implementation, 

20 and engage stakeholders, consistent with require21 ments established by the Secretary; and 

22 (18) demonstrates compliance with any other 

23 factors and priorities, as the Secretary may pre24 scribe through a notice of funding availability and 

25 that further the purposes of this Act. 


PWALKER on DSK7TPTVN1PROD with BILLS
18 

S 437 RCS 

1 SEC. 9. PROGRAM REQUIREMENTS. 

2 The following requirements shall apply to any grant 

3 made under this Act: 

4 (1) HOUSING CHOICE OPPORTUNITIES FOR RE5 TURNING TENANTS.—An approved transformation 

6 plan under section 8 shall demonstrate that each 

7 former tenant who wishes to return to the on-site or 

8 off-site replacement housing may return if the ten9 ant was lease-compliant at the time of departure 

10 from the housing subject to rehabilitation or demoli11 tion, and would be eligible, as of the time of such 

12 return, for occupancy under the eligibility, screening, 

13 and occupancy standards, policies, or practices appli14 cable to the housing from which the resident was 

15 displaced, as in effect at such time of displacement. 

16 A returning tenant shall be provided a preference for 

17 occupancy of on-site or off-site replacement units be18 fore such units are made available to any other eligi19 ble households, or the tenant may choose to retain 

20 tenant-based voucher assistance provided under sec21 tion 8(o) of the United States Housing Act of 1937, 

22 for relocation from the properties revitalized under 

23 this Act. 

24 (2) RELOCATION AND NOTICE.—All relocation 

25 activities resulting from, or that will result from, 

26 demolition, disposition, or both demolition and disVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
19 

S 437 RCS 

1 position, to be carried out under a transformation 

2 plan relating to a grant under this Act shall be sub3 ject to the following requirements: 

4 (A) THE UNIFORM RELOCATION ACT.—The 

5 Uniform Relocation and Real Property Acquisi6 tion Policies Act of 1970 (42 U.S.C. 61) shall 

7 apply to all relocation activities pursuant to a 

8 transformation plan under this Act, except as 

9 otherwise provided in this Act. 

10 (B) RELOCATION PLAN.—The applicant 

11 shall submit to the Secretary, before acquisition 

12 or demolition, a relocation plan providing for 

13 the relocation of residents occupying the public 

14 or assisted housing for which the demolition or 

15 disposition is proposed. 

16 (3) NOTICE UPON APPROVAL OF APPLICA17 TION.—Within a reasonable time after notice to the 

18 applicant of the approval of an application for a 

19 grant under this section, the applicant shall provide 

20 notice in writing, in plain and non-technical lan21 guage, to the residents of the public and assisted 

22 housing subject to the approved transformation plan 

23 that— 

24 (A) states that the application and trans25 formation plan has been approved; 


PWALKER on DSK7TPTVN1PROD with BILLS
20 

S 437 RCS 

1 (B) describes the process involved to relo2 cate the residents, including a statement that 

3 the residents may not be relocated until the 

4 conditions in this section have been met; 

5 (C) provides information regarding reloca6 tion options; and 

7 (D) advises residents of the availability of 

8 relocation counseling. 

9 (4) NOTICE BEFORE RELOCATION.—Except in 

10 the cases of a substantial and imminent threat to 

11 health or safety, not later than 90 days before the 

12 date on which residents will be relocated, the grantee 

13 shall provide notice in writing, in plain and nontech14 nical language, to each family residing in a public or 

15 assisted housing project that is subject to an ap16 proved transformation plan, and in accordance with 

17 such guidelines as the Secretary may issue governing 

18 such notification, of the demolition, their rights, and 

19 relocation options. 

20 (5) ONE-FOR-ONE REPLACEMENT OF PUBLIC

21 OR ASSISTED HOUSING UNITS.—Each trans22 formation plan that provides for dwelling units to be 

23 demolished or disposed shall provide as follows: 

24 (A) NUMBER OF UNITS.—For one hundred 

25 percent of all such dwelling units in existence, 


PWALKER on DSK7TPTVN1PROD with BILLS
21 

S 437 RCS 

1 as of the date of the application for the grant, 

2 that are to be demolished or disposed, the 

3 transformation plan shall provide for replace4 ment of the dwelling unit. 

5 (B) NUMBER OF BEDROOMS.—Replace6 ment housing for demolished properties shall 

7 reflect the number of bedrooms that are needed 

8 to adequately serve returning tenants, house9 holds currently on the waiting list and that are 

10 needed based on other market data, except that 

11 in instances where the tenants of the original 

12 properties need a different number of bedrooms 

13 than households on the waiting list, the plan 

14 may enable displaced tenants to exercise their 

15 opportunity under paragraph (1), using a ten16 ant-based voucher in the original neighborhood 

17 or other neighborhood of the tenants’ choice. 

18 (C) LOCATION.— 

19 (i) REPLACEMENT UNITS.—Replace20 ment housing units shall be developed— 

21 (I) in the neighborhood being re22 vitalized; and 

23 (II) within the metropolitan area, 

24 up to 25 miles from the original 

25 project site, as necessary to— 


PWALKER on DSK7TPTVN1PROD with BILLS
22 

S 437 RCS 

1 (aa) comply with fair hous2 ing requirements; 

3 (bb) deconcentrate poverty; 

4 (cc) redevelop on site with 

5 appropriate densities; or 

6 (dd) meet other factors, as 

7 determined by the Secretary in 

8 order to further the purposes of 

9 this Act. 

10 (ii) REPLACEMENT HOUSING OUTSIDE

11 IMMEDIATE NEIGHBORHOOD.—Replace12 ment housing outside the immediate neigh13 borhood shall offer access to economic op14 portunities and public transportation and 

15 shall be accessible to social, recreational, 

16 educational, commercial, health facilities 

17 and services, and other municipal services 

18 and facilities that are comparable, under 

19 such standards as the Secretary may pre20 scribe. 

21 (iii) OFF-SITE REPLACEMENT HOUS22 ING.—Off-site replacement housing, out23 side the immediate neighborhood, shall not 

24 be located in areas of minority concentra25 tion, defined in relation to the metropolitan 


PWALKER on DSK7TPTVN1PROD with BILLS
23 

S 437 RCS 

1 area or rural county in which the Choice 

2 Neighborhoods project is located, or in 

3 areas of extreme poverty. 

4 (D) TYPES OF UNITS.—Replacement hous5 ing is public housing or other assisted housing 

6 units, as defined in section 10, excluding ten7 ant-based vouchers, unless permitted in this 

8 section. 

9 (E) USE OF PROJECT-BASED VOUCHERS

10 FOR REPLACEMENT HOUSING.—The Secretary 

11 may require the use of project-based voucher 

12 assistance under section 8(o)(13) of the United 

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

14 1437f(o)(13)) to meet the replacement require15 ment. Where project-based voucher units are 

16 developed as replacement housing, subpara17 graph (D) of section 8(o)(13), relating to per18 centage limitation and income-mixing require19 ment for project-based voucher assistance, shall 

20 not apply. The Secretary may waive or modify 

21 other provisions of section 8(o)(13) to promote 

22 the purposes of this program. 

23 (F) TENANT-BASED VOUCHERS AS RE24 PLACEMENT HOUSING.—A grantee may replace 

25 up to 20 percent of the public housing or other 


PWALKER on DSK7TPTVN1PROD with BILLS
24 

S 437 RCS 

1 assisted housing dwelling units that are demol2 ished or disposed of under the transformation 

3 plan with tenant-based vouchers in housing 

4 markets where there is an adequate supply of 

5 affordable rental housing in areas of low pov6 erty. Such supply shall be demonstrated by data 

7 that shows within the housing market or area 

8 served by the Choice Neighborhoods project 

9 that— 

10 (i) a minimum of 80 percent of vouch11 ers issued over the preceding 24 months to 

12 comparable families were successfully 

13 leased within 120 days of issuance or, if a 

14 sufficient number of comparable families 

15 have not received vouchers, the Secretary 

16 shall design an alternative measure; 

17 (ii) existing voucher holders are widely 

18 dispersed geographically, as determined by 

19 the Secretary, among the available private 

20 rental housing stock, including in areas of 

21 low poverty; and 

22 (iii) the grantee provides a market 

23 analysis demonstrating that there is a rel24 atively high vacancy rate, as determined by 

25 the Secretary, within the market area with 


PWALKER on DSK7TPTVN1PROD with BILLS
25 

S 437 RCS 

1 rent and utility costs not exceeding the ap2 plicable payment standard under section 

3 8(o) of the United States Housing Act of 

4 1937 (42 U.S.C. 1437f(o)). 

5 (6) FAIR HOUSING.—The demolition or disposi6 tion, relocation, replacement, and re-occupancy of 

7 housing units under this Act shall be carried out in 

8 a manner that affirmatively furthers fair housing, as 

9 required by section 808 of the Civil Rights Act of 

10 1968 (42 U.S.C. 3608(e)). Grantees shall adopt af11 firmative marketing procedures, and require affirma12 tive marketing activities of project owners and man13 agers which special outreach efforts shall be targeted 

14 to those who are least likely to apply for the hous15 ing, to ensure that all persons, regardless of their 

16 race, color, national origin, religion, sex, disability or 

17 familial status are aware of the housing opportuni18 ties in each project funded under this Act. 

19 (7) ACCESSIBILITY REQUIREMENTS.—All new 

20 construction and substantial alterations of existing 

21 buildings receiving assistance under this Act shall 

22 comply with the requirements of the Rehabilitation 

23 Act of 1973, the Uniform Federal Accessibility 

24 Standards, the Fair Housing Act, and any other re25 quirements, as determined by the Secretary. 


PWALKER on DSK7TPTVN1PROD with BILLS
26 

S 437 RCS 

1 (8) AFFORDABILITY REQUIREMENT.—The 

2 owner of a property assisted with funding under this 

3 Act shall agree to a period of affordability for the 

4 property which shall be not less than the period of 

5 affordability to which the property is already subject 

6 and remains subject, or 30 years, whichever is great7 er. 

8 (9) COST LIMITS.—Subject to the provisions of 

9 this Act, the Secretary shall establish cost limits on 

10 eligible activities under this Act sufficient to provide 

11 for effective transformation programs. 

12 (10) ENVIRONMENTAL REVIEW.—For purposes 

13 of environmental review, assistance and projects 

14 under this Act shall be treated as assistance for spe15 cial projects that are subject to section 305(c) of the 

16 Multifamily Housing Property Disposition Reform 

17 Act of 1994, and shall be subject to the regulations 

18 issued by the Secretary to implement such section. 

19 (11) GRANTEE REPORTING.—The Secretary 

20 shall require grantees under this Act to report the 

21 sources and uses of all amounts expended and other 

22 information for transformation plans for the annual 

23 report of the Secretary to Congress or other pur24 poses, as determined by the Secretary. 


PWALKER on DSK7TPTVN1PROD with BILLS
27 

S 437 RCS 

1 SEC. 10. DEFINITIONS. 

2 For purposes of this Act, the following definitions 

3 shall apply: 

4 (1) AFFORDABLE HOUSING.—The term ‘‘afford5 able housing’’ includes— 

6 (A) assisted housing, as defined by this 

7 Act; or 

8 (B) private housing for which the Sec9 retary requires the owner or purchaser of the 

10 project to maintain affordability for not fewer 

11 than 30 years, in accordance with use restric12 tions promulgated in regulations by the Sec13 retary, which restrictions shall be— 

14 (i) contained in a legally enforceable 

15 document recorded in the appropriate 

16 records; and 

17 (ii) consistent with the long-term via18 bility of the project as rental or homeown19 ership housing. 

20 (2) ASSISTED HOUSING.—The term ‘‘assisted 

21 housing’’ means housing assisted under— 

22 (A) section 8 or 9 of the United States 

23 Housing Act of 1937 (42 U.S.C. 1437f and 42 

24 U.S.C. 1437g); and 


PWALKER on DSK7TPTVN1PROD with BILLS
28 

S 437 RCS 

1 (B) section 221(d)(3) or section 236 (12 

2 U.S.C. 1715 and 12 U.S.C. 1715z–1) of the 

3 National Housing Act. 

4 (3) CRITICAL COMMUNITY IMPROVEMENTS.— 

5 The term ‘‘critical community improvements’’ 

6 means— 

7 (A) development or improvement of com8 munity facilities to promote upward mobility, 

9 self-sufficiency, or improved quality of life for 

10 residents of the neighborhood, such as construc11 tion or rehabilitation of parks and community 

12 gardens, environmental improvements or site 

13 remediation at affected sites; and 

14 (B) activities to promote economic develop15 ment, such as development or improvement of 

16 transit, retail, community financial institutions, 

17 public services, facilities, assets or other com18 munity resources. 

19 (4) EXTREME POVERTY.—The term ‘‘extreme 

20 poverty’’ neighborhoods means a neighborhood in 

21 which a high percentage of residents are estimated 

22 to be in poverty or have extremely low incomes, 

23 based on the most recent data collected by the Cen24 sus Bureau and that is experiencing distress related 

25 to— 


PWALKER on DSK7TPTVN1PROD with BILLS
29 

S 437 RCS 

1 (A) per capita crime rates over 3 or more 

2 years that are significantly higher than the per 

3 capita crime rates of the city or county in which 

4 the neighborhood is located; 

5 (B) high rates of vacant, abandoned, or 

6 substandard homes relative to the city or coun7 ty as a whole; 

8 (C) a low-performing public school; 

9 (D) other such factor as determined by the 

10 Secretary that further the purposes of this Act; 

11 or 

12 (E) any combination of such factors. 

13 (5) FAMILIES.—The term ‘‘families’’ has the 

14 meaning provided in section 3(B)(3) of the United 

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

16 1437a(B)(3)). 

17 (6) LONG-TERM VIABILITY.—The term ‘‘long18 term viability’’ refers to a neighborhood that is sus19 tainable on an economic, educational, and environ20 mental basis. 

21 (7) PUBLIC HOUSING AGENCY.—The term 

22 ‘‘public housing agency’’ has the meaning provided 

23 in section 3(b)(6) of the United States Housing Act 

24 of 1937 (42 U.S.C. 1437a(b)(6)). 


PWALKER on DSK7TPTVN1PROD with BILLS
30 

S 437 RCS 

1 (8) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Housing and Urban Development. 

3 (9) SEVERELY DISTRESSED HOUSING.—The 

4 term ‘‘severely distressed housing’’ means a public 

5 or assisted housing project (or building in a project) 

6 that— 

7 (A)(i) requires major redesign, reconstruc8 tion, or redevelopment, or partial or total demo9 lition, to correct serious deficiencies in the 

10 original design (including inappropriately high 

11 population density), deferred maintenance, 

12 physical deterioration or obsolescence of major 

13 systems, and other deficiencies in the physical 

14 plant of the project; and 

15 (ii) is a significant contributing factor to 

16 the physical decline of and disinvestment by 

17 public and private entities in the surrounding 

18 neighborhood; or 

19 (B) was a project described in subpara20 graph (A) that has been legally vacated or de21 molished, but for which the Secretary has not 

22 yet provided replacement housing assistance 

23 other than tenant-based assistance. 

24 (10) SUPPORTIVE SERVICES.—The term ‘‘sup25 portive services’’ includes all activities for public or 


PWALKER on DSK7TPTVN1PROD with BILLS
31 

S 437 RCS 

1 assisted housing tenants displaced from the projects 

2 being revitalized under this Act, that will promote 

3 upward mobility, self-sufficiency, or improved quality 

4 of life, including such activities as literacy training, 

5 remedial and continuing education, job training, fi6 nancial literacy instruction, day care, youth services, 

7 aging-in-place, public transportation, physical and 

8 mental health services, economic development activi9 ties, and other programs for which the community 

10 demonstrates need. 

11 SEC. 11. DEMOLITION AND DISPOSITION. 

12 The demolition or disposition of severely distressed 

13 public and assisted housing pursuant to a transformation 

14 plan is exempt from the provisions of section 18 of the 

15 United States Housing Act of 1937 (42 U.S.C. 1437p). 

16 SEC. 12. ADMINISTRATION BY OTHER ENTITIES. 

17 The Secretary may require a grantee under this Act 

18 to make arrangements satisfactory to the Secretary for 

19 use of an entity other than the original grantee to carry 

20 out activities assisted under the transformation plan, if 

21 the Secretary determines that such action will help to ef22 fectuate the purposes of this Act. 

23 SEC. 13. WITHDRAWAL OF FUNDING. 

24 If a grantee under this Act does not proceed within 

25 a reasonable time frame in implementing its transVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
32 

S 437 RCS 

1 formation plan, or does not otherwise comply with the re2 quirements of this Act or the grant agreement, as deter3 mined by the Secretary, the Secretary is authorized to 

4 withdraw any grant amounts under this Act that have not 

5 been obligated by the grantee. The Secretary may redis6 tribute any withdrawn amounts to one or more other eligi7 ble entities capable of proceeding expeditiously in the same 

8 locality in carrying out the transformation plan of the 

9 original grantee, or as such plan may be modified and ap10 proved by the Secretary, or, if that is not feasible, to one 

11 or more other applicants that has already received assist12 ance under this Act. 

13 SEC. 14. ANNUAL REPORT. 

14 The Secretary shall submit to Congress an annual re15 port setting forth— 

16 (1) the number, type, and cost of affordable 

17 housing units revitalized pursuant to this Act; 

18 (2) the amount and type of financial assistance 

19 provided under and in conjunction with this Act, in20 cluding a specification of the amount and type of as21 sistance provided for educational opportunities, serv22 ices, public assets, public transportation, and access 

23 to jobs; and 

24 (3) the impact of grants made under this Act 

25 on the original residents, the target neighborhoods, 


PWALKER on DSK7TPTVN1PROD with BILLS
33 

S 437 RCS 

1 and the larger communities within which they are lo2 cated. 

3 SEC. 15. PROGRAM EVALUATION. 

4 The Secretary shall conduct, and shall submit a re5 port to Congress on, an evaluation of the Choice Neighbor6 hoods program, with respect to which— 

7 (1) the Secretary shall— 

8 (A) select an outside expert firm to con9 duct the evaluation of the Choice Neighbor10 hoods program; and 

11 (B) consult with the Secretary of Labor, 

12 the Secretary of Education, the Secretary of 

13 Transportation, the Secretary of Health and 

14 Human Services, the Administrator of the En15 vironmental Protection Agency, and other ap16 propriate agencies on the evaluation of the pro17 gram and selection of the evaluation firm; 

18 (2) the Secretary shall submit to Congress a re19 port of the results of the evaluation 5 years after the 

20 initial grant awards, and annually thereafter; and 

21 (3) the factors to be considered within the eval22 uation include measures of— 

23 (A) resident engagement within and after 

24 the transformation process; 


PWALKER on DSK7TPTVN1PROD with BILLS
34 

S 437 RCS 

1 (B) neighborhood improvement, including 

2 changes in property values, demographic 

3 changes, access to transportation, and survey 

4 data on resident satisfaction; 

5 (C) self-sufficiency, including changes in 

6 resident and neighborhood income, and changes 

7 in neighborhood and resident employment sta8 tistics; 

9 (D) educational improvement, including 

10 student performance data, student mobility and 

11 absenteeism, and parental involvement; and 

12 (E) other indicators deemed appropriate by 

13 the Secretary. 

14 SEC. 16. FUNDING. 

15 There are authorized to be appropriated the fol16 lowing: 

17 (1) $350,000,000 for fiscal year 2013, and such 

18 sums as may be necessary in each of fiscal years 

19 2014 through 2017, for grants under this Act. Of 

20 the funding authorized in any fiscal year, up to 10 

21 percent is authorized for planning grants. In award22 ing planning grants, the Secretary may elect to base 

23 selection on a subset of the required provisions of 

24 this Act. In any fiscal year, up to 5 percent is au25 thorized for technical assistance and program evalVerDate Mar 15 2010 00:55 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S437.RCS S437

PWALKER on DSK7TPTVN1PROD with BILLS
35 

S 437 RCS 

1 uation efforts related to grants awarded under this 

2 Act, or under predecessor programs. 

3 (2) Such sums as may be necessary for each of 

4 fiscal years 2013 through 2017, for providing ten5 ant-based assistance for relocation and for rental as6 sistance under section 8 of the United States Hous7 ing Act of 1937, for the purposes of complying with 

8 section 9(2) of this Act, but not to exceed the 

9 amount of assistance for the number of units demol10 ished or disposed of under section 9(2). 

(3) Not less than 2 11 ⁄3 of amounts made available 

12 in any fiscal year under this Act shall be used for, 

or 2 13 ⁄3 of the number of housing units assisted under 

14 this Act shall be, public housing units, subject to de 

15 minimis variations, as may result from the grantee 

16 selection process. 

Æ 


PWALKER on DSK7TPTVN1PROD with BILLS