II 

109TH CONGRESS 

1ST SESSION S. 771 

To better assist low-income families to obtain decent, safe, and affordable 

housing as a means of increasing their economic and personal wellbeing through the conversion of the existing section 8 housing choice 

voucher program into a flexible voucher program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 13, 2005 

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

to the Committee on Banking, Housing, and Urban Affairs 

A BILL

To better assist low-income families to obtain decent, safe, 

and affordable housing as a means of increasing their 

economic and personal well-being through the conversion 

of the existing section 8 housing choice voucher program 

into a flexible voucher program, and for other purposes.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State and Local Hous5 ing Flexibility Act of 2005’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows:
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Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—FLEXIBLE VOUCHER PROGRAM 

Sec. 101. Short title. 

Sec. 102. Findings and purposes. 

Sec. 103. Definitions. 

Sec. 104. Authority of Secretary. 

Sec. 105. Elderly families and disabled families. 

Sec. 106. Performance Standards. 

Sec. 107. Eligible families. 

Sec. 108. Eligible activities. 

Sec. 109. Amount of assistance. 

Sec. 110. Authorization, allocation and distribution of funds. 

Sec. 111. Environmental review. 

Sec. 112. Inspection of units. 

Sec. 113. Ability to transfer tenant-based rental assistance. 

Sec. 114. Self-sufficiency. 

Sec. 115. Termination of rental assistance contracts and related transactions. 

Sec. 116. Failure to perform. 

Sec. 117. Administrative and special administrative fees. 

Sec. 118. Implementation. 

Sec. 119. Authorization of appropriations. 

Sec. 120. Conforming amendments. 

TITLE II—PUBLIC HOUSING RENT FLEXIBILITY AND 

SIMPLIFICATION 

Sec. 201. Short title. 

Sec. 202. Public housing rent flexibility and simplification. 

TITLE III—MOVING TO WORK PROGRAM 

Sec. 301. Short title. 

Sec. 302. Moving to work program.

1 TITLE I—FLEXIBLE VOUCHER 

2 PROGRAM 

3 SEC. 101. SHORT TITLE. 

4 This title may be cited as the ‘‘Flexible Voucher Act 

5 of 2005’’. 

6 SEC. 102. FINDINGS AND PURPOSES. 

7 (a) FINDINGS.—Congress finds that— 
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1 (1) the section 8 housing choice voucher pro2 gram provides rental and homeownership assistance 

3 to approximately 2,000,000 families; 

4 (2) the Secretary administers the housing 

5 choice voucher program through rules and regula6 tions that apply directly to more than 2,400 entities 

7 throughout the United States; 

8 (3) such an administrative structure has con9 tributed to the development of statutory and regu10 latory measures that have made the housing choice 

11 voucher program overly prescriptive and difficult for 

12 public housing agencies and the Secretary to admin13 ister; 

14 (4) the complexity of the housing choice vouch15 er program, its inability to allow adequate timely ad16 justments to changing local markets, and its multi17 plicity of Federal directives, all have contributed to 

18 fewer families being provided the housing assistance 

19 made available by Congress; 

20 (5) many families in need of assistance under 

21 the housing choice voucher program wait several 

22 years to receive assistance under the program; 

23 (6) the benefits that assisted households derive 

24 from housing vouchers, including access to safer and 

25 healthier environments and increased economic op-
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1 portunity, derive in substantial part from the choices 

2 of housing and location that vouchers offer; 

3 (7) the combination of increased administrative 

4 flexibility and procedures to measure and reward 

5 local programs for better performance can substan6 tially increase the benefit of housing vouchers to 

7 low-income households; and 

8 (8) local public housing agencies are in the best 

9 position to determine local housing needs and mar10 ket conditions necessary to effectively manage hous11 ing voucher funding. 

12 (b) PURPOSES.—The purposes of this title are to— 

13 (1) provide housing assistance through a flexi14 ble voucher program; 

15 (2) replace the housing choice voucher program 

16 established under section 8 of the United States 

17 Housing Act of 1937 (42 U.S.C. 1437f); 

18 (3) provide for the necessary program flexibility 

19 and oversight so that funds are used promptly and 

20 effectively to assist needy families; 

21 (4) provide for additional program flexibility to 

22 address local markets and needs; 

23 (5) provide for administrative decision making 

24 closer to the communities and families affected, by 

25 local officials who administer the program; and 
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1 (6) provide incentives for improved self-suffi2 ciency efforts by assisted families. 

3 SEC. 103. DEFINITIONS. 

4 For the purposes of this title, the following defini5 tions shall apply: 

6 (1) ADMINISTRATIVE FEE.—The term ‘‘admin7 istrative fee’’ means a fee paid by the Secretary to 

8 a public housing agency for the routine administra9 tion, as determined by the Secretary, of admin10 istering assistance under this title. 

11 (2) DISABLED FAMILY.—Except as otherwise 

12 provided in law, the term ‘‘disabled family’’ means 

13 a family whose head, spouse, or sole member is a 

14 person with disabilities, including 2 or more persons 

15 who are persons with disabilities living together. 

16 (3) DOWNPAYMENT ASSISTANCE.—The term 

17 ‘‘downpayment assistance’’ means assistance for a 

18 family to be used toward the purchase of a home, in19 cluding reasonable and customary closing costs re20 quired in connection with the purchase of a home. 

21 (4) ELDERLY FAMILY.—Except as otherwise 

22 provided, the term ‘‘elderly family’’ means a family 

23 whose head, spouse, or sole member is a person who 

24 is at least 62 years of age, including 2 or more per25 sons who are at least 62 years of age living together. 
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1 (5) ELIGIBILITY EVENT.—The term ‘‘eligibility 

2 event’’ means, with respect to a housing project— 

3 (A) the prepayment of the mortgage on 

4 such housing project; 

5 (B) the voluntary termination of the insur6 ance contract for the mortgage for such housing 

7 project; 

8 (C) the termination or expiration of the 

9 contract for rental assistance under section 8 of 

10 the United States Housing Act of 1937 (42 

11 U.S.C. 1437f) for such housing project; or 

12 (D) the transaction under which the hous13 ing project is preserved as affordable housing, 

14 under paragraphs (3) and (4) of section 515(c) 

15 and section 524(d) of the Multifamily Assisted 

16 Housing Reform and Affordability Act of 1997 

17 (42 U.S.C. 1437f note), section 223(f) of the 

18 Low-Income Housing Preservation and Resi19 dent Homeownership Act of 1990 (12 U.S.C. 

20 4113(f)), or section 201(p) of the Housing and 

21 Community Development Amendments of 1978 

22 (12 U.S.C. 1715z–1a(p)). 

23 (6) FAMILY.—The term ‘‘family’’ means a per24 son or group of persons, as determined by the public 
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1 housing agency, approved to reside in a unit receiv2 ing assistance under this title. 

3 (7) FIRST-TIME HOMEBUYER.—The term ‘‘first4 time homebuyer’’ means a family, no member of 

5 which has had an ownership interest in a principal 

6 residence during the 3 years preceding the date on 

7 which the family initially receives tenant-based 

8 homeownership assistance under this title. 

9 (8) GROSS INCOME.—The term ‘‘gross income’’ 

10 is the amount of income from all sources for each 

11 family member of a household, without deductions or 

12 exclusions, notwithstanding any other provision of 

13 law. 

14 (9) HOUSING PROJECT.—The term ‘‘housing 

15 project’’ means a multifamily housing development 

16 receiving project-based rental assistance under sec17 tion 107(b). 

18 (10) MEDIAN INCOME FOR THE AREA.—The 

19 term ‘‘median income for the area’’ means the fam20 ily income at the fiftieth percentile of income for an 

21 area, as determined by the Secretary, with adjust22 ments for smaller and larger families. 

23 (11) OWNER.—The term ‘‘owner’’ means any 

24 private person or entity, including a cooperative, an 

25 agency of the Federal Government, or a public hous-
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1 ing agency, having the legal right to lease or sub2 lease dwelling units. 

3 (12) PERSON WITH DISABILITIES.—The term 

4 ‘‘person with disabilities’’ has the same meaning 

5 given the term in section 3(b) of the United States 

6 Housing Act of 1937 (42 U.S.C. 1437a(3)(b)). 

7 (13) PROJECT-BASED RENTAL ASSISTANCE.—

8 The term ‘‘project-based rental assistance’’ means 

9 housing assistance that a public housing agency may 

10 attach to a specific property under section 107. 

11 (14) PUBLIC HOUSING AGENCY.—The term 

12 ‘‘public housing agency’’ or ‘‘PHA’’ means— 

13 (A) any State, county, municipality, or 

14 other governmental entity or public body (or 

15 agency or instrumentality thereof) which is au16 thorized to engage in or assist in the develop17 ment or operation of low-income housing; or 

18 (B) any other entity designated by the Sec19 retary to administer assistance under this title 

20 in jurisdictions where— 

21 (i) no public housing agency has been 

22 organized; or 

23 (ii) the Secretary determines that a 

24 public housing agency is not capable of ef-
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1 fectively administering assistance under 

2 this title. 

3 (15) SECRETARY.—The term ‘‘Secretary’’ 

4 means the Secretary of Housing and Urban Develop5 ment. 

6 (16) SPECIAL ADMINISTRATIVE FEE.—The 

7 term ‘‘special administrative fee’’ means a fee paid 

8 by the Secretary to a public housing agency for non9 routine administrative expenses, as determined by 

10 the Secretary, which may include expenses associ11 ated with— 

12 (A) tenant-based homeownership assist13 ance; 

14 (B) family self-sufficiency coordinators; 

15 and 

16 (C) lead-based paint risk assessments. 

17 (17) TENANT-BASED HOMEOWNERSHIP ASSIST18 ANCE.—The term ‘‘tenant-based homeownership as19 sistance’’ means the payments made on a monthly 

20 basis by public housing agencies under section 

21 108(c) and are used by families to make mortgage 

22 payments or meet other monthly homeownership ex23 penses. 

24 (18) TRANSFER-ELIGIBLE FAMILY.—The term 

25 ‘‘transfer-eligible family’’ means a family that has 
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1 received rental assistance under this title for at least 

2 12 months and is in compliance with applicable re3 quirements imposed in accordance with this title and 

4 section 8 of the United States Housing Act of 1937 

5 (42 U.S.C. 1437f). 

6 (19) TENANT-BASED RENTAL ASSISTANCE.—

7 The term ‘‘tenant-based rental assistance’’ means 

8 housing assistance that provides for the eligible fam9 ily to select suitable housing within the jurisdiction 

10 of an administering public housing agency. 

11 SEC. 104. AUTHORITY OF SECRETARY. 

12 (a) GRANT AUTHORITY.—The Secretary is author13 ized to make grants to— 

14 (1) public housing agencies to provide tenant15 based and project-based rental assistance, and ten16 ant-based homeownership assistance to low income 

17 individuals; and 

18 (2) carry out activities related to the assistance 

19 described in paragraph (1) in accordance with this 

20 title. 

21 (b) CONTRACT AUTHORITY.— 

22 (1) IN GENERAL.—The Secretary is authorized 

23 to enter into contracts with public housing agencies 

24 to administer grants authorized under subsection 

25 (a). 
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1 (2) PAYMENTS TO OWNERS.—Pursuant to the 

2 contracts entered into under subsection (a), public 

3 housing agencies may enter into contracts to make 

4 assistance payments to owners, and such contracts 

5 shall include any terms and conditions required by 

6 the Secretary. 

7 (c) TENANT-BASED ASSISTANCE TO CONTINUE.—

8 Any family that is receiving tenant-based homeownership 

9 assistance under section 8(y) of the United States Hous10 ing Act of 1937 (42 U.S.C. 1437f(y)) shall continue to 

11 receive such assistance, subject to the terms and condi12 tions of the United States Housing Act of 1937, as that 

13 Act was in effect on the day before the date of enactment 

14 of this Act, from amounts made available for assistance 

15 under this title. 

16 (d) HOUSING ASSISTANCE UNDER PROJECT-BASED

17 VOUCHER PROGRAM TO CONTINUE.—Any units covered 

18 by a housing assistance payments contract on the day be19 fore the date of enactment of this Act under the project20 based voucher program or project-based certificate pro21 gram under section 8 of the United States Housing Act 

22 of 1937 (42 U.S.C. 1437f) shall continue to receive assist23 ance subject to the terms and conditions of that contract, 

24 from amounts made available for assistance under this 

25 title. 
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1 SEC. 105. ELDERLY FAMILIES AND DISABLED FAMILIES. 

2 (a) EXISTING TENANTS.—Notwithstanding any other 

3 provision of this title, elderly families and disabled fami4 lies, as such terms were defined under section 3(b)(3)(B) 

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

6 1437a(b)(3)(B)) immediately prior to the date of enact7 ment of this title, who were receiving assistance under sec8 tion 8 (o) or (t) of the United States Housing Act of 1937 

9 (42 U.S.C. 1437f(o), (t)) as in effect on the day prior to 

10 the date of enactment of this title, shall be treated in ac11 cordance with the immediately above-referenced sections 

12 until January 1, 2009. 

13 (b) NEW ADMISSIONS.—Notwithstanding any other 

14 provision of this title, except as provided in subsection (d), 

15 elderly families and disabled families not meeting the re16 quirements of subsection (a), shall also be treated in ac17 cordance with section 8 (o) or (t) of the United States 

18 Housing Act of 1937 (42 U.S.C. 1437f(o), (t)) as in effect 

19 on the day prior to the date of enactment of this title, 

20 until January 1, 2009. 

21 (c) PUBLIC HOUSING AGENCY POLICIES.—Notwith22 standing any other provision of this title, a public housing 

23 agency receiving a grant under section 104 shall, by Janu24 ary 1, 2009, have implemented a policy to ensure that the 

25 needs of elderly families and disabled families described 

26 under subsections (a) and (b) are addressed by a policy 
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1 to be determined by the public housing agency as they re2 late to, among other things, eligibility and rent. 

3 (d) EARLY IMPLEMENTATION.—A public housing 

4 agency that has implemented the policy described in sub5 section (c) before January 1, 2009, shall administer as6 sistance for elderly families and disabled families first re7 ceiving a grant under section 104 after the effective date 

8 of such policy in accordance with such policy. 

9 SEC. 106. PERFORMANCE STANDARDS. 

10 (a) PERFORMANCE STANDARDS AND EVALUATION.—

11 The Secretary shall establish performance standards and 

12 a performance assessment system for public housing agen13 cies receiving grants under this title to maximize the bene14 fits of such assistance. 

15 (b) GENERAL REPORTS.—In developing a perform16 ance assessment system or in evaluating the performance 

17 of a public housing agency, the Secretary may require the 

18 public housing agency to provide and report information 

19 including— 

20 (1) the number of households and persons in 

21 such households receiving assistance under this title, 

22 including— 

23 (A) the number of families with children; 

24 (B) the number of elderly families; 

25 (C) the number of disabled families; and 
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1 (D) for each family, general demographic 

2 information and income levels; 

3 (2) the actual subsidy per family and value of 

4 assistance under this title received per family; 

5 (3) administrative costs incurred by a public 

6 housing agency in fulfilling its responsibilities under 

7 this title; and 

8 (4) other information as the Secretary may pre9 scribe. 

10 (c) PUBLIC HOUSING AGENCY REPORTS.—Not less 

11 frequently than once every 12 months, the Secretary shall 

12 require each public housing agency to provide to the public 

13 on the Internet the reports required under subsection (a) 

14 in a form and manner acceptable to the Secretary. 

15 (d) ALTERNATIVE ADMINISTRATION.— 

16 (1) TROUBLED PROGRAMS.—A public housing 

17 agency operating a program under section 8 of the 

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

19 1437f) that the Secretary has designated as troubled 

20 under a performance evaluation system for the hous21 ing choice voucher program, or a public housing pro22 gram that the Secretary has found to be troubled 

23 under section 6(j) of the United States Housing Act 

24 of 1937 (42 U.S.C. 1436d(j)) for the first full fiscal 

25 year after the date of enactment of this title— 
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1 (A) shall not implement the provisions of 

2 sections 107, 109, or 112, unless approved by 

3 the Secretary; and 

4 (B) may implement the provision of any 

5 section of this title not specifically cited in sub6 paragraph (A). 

7 (2) FAILING SCORE.—If any public housing 

8 agency receives a failing score under the perform9 ance evaluation system implemented pursuant to 

10 subsection (a), the Secretary shall determine how to 

11 best administer the grant, which may include— 

12 (A) administration of such grant by 1 or 

13 more other public housing agencies or other en14 tities; 

15 (B) appointment of a receiver to manage 

16 the grant; or 

17 (C) setting a specific deadline for improve18 ment, if the Secretary determines that signifi19 cant improvements can be made expeditiously. 

20 (3) APPLICABILITY.—All provisions applicable 

21 to public housing agencies administering funds 

22 under this title shall be applicable to such other pub23 lic housing agencies or other entities as are des24 ignated by the Secretary pursuant to paragraph 

25 (2)(A). 
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1 SEC. 107. ELIGIBLE FAMILIES. 

2 (a) INITIAL ELIGIBILITY.—Subject to subsection (c), 

3 to be eligible to receive tenant-based rental or tenant4 based homeownership assistance under this title, a family 

5 shall— 

6 (1) not own a significant interest in any real 

7 property; 

8 (2) not have assets exceeding an amount estab9 lished by the Secretary; and 

10 (3) have a gross income that does not exceed 80 

11 percent of the median income for the area, as deter12 mined by the Secretary in a manner consistent with 

13 income limits established for other Department of 

14 Housing and Urban Development programs, with 

15 adjustments for smaller or larger families and areas 

16 of unusually high or low income. 

17 (b) CONTINUED ELIGIBILITY.—Subject to sub18 sections (f) and (g), continued eligibility for housing as19 sistance pursuant to this title shall be determined in ac20 cordance with standards established by the Secretary and 

21 the public housing agency, except that families with in22 comes above 80 percent of area median income shall not 

23 be eligible for continued assistance. 

24 (c) OTHER REQUIREMENTS.— 

25 (1) 90 PERCENT TEST.—Not fewer than 90 

26 percent of the families selected during any 1-year 
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1 period for assistance under this title shall have gross 

2 incomes that do not exceed 60 percent of the median 

3 income for the area, as determined by the Secretary, 

4 with adjustments for smaller or larger families and 

5 areas of unusually high or low income. 

6 (2) ADDITIONAL REQUIREMENT.—The Sec7 retary or a public housing agency may establish 

8 other eligibility requirements for assistance under 

9 this title. 

10 (d) TERM LIMITS.— 

11 (1) ASSISTANCE LIMITS.—Subject to paragraph 

12 (2), and beginning on January 1, 2008, a public 

13 housing agency may establish term limits to deter14 mine the maximum amount of time during which a 

15 family may receive assistance under this title. 

16 (2) GUIDELINES FOR TERM LIMITS.—Term lim17 its established under paragraph (1)— 

18 (A) shall not apply to elderly and disabled 

19 families; and 

20 (B) shall set a minimum term limit for 

21 families receiving rental assistance at 5 years. 

22 (e) PREFERENCES AND NONDISCRIMINATION.— 

23 (1) SYSTEM FOR HOUSING ASSISTANCE.— 

24 (A) IN GENERAL.—Each public housing 

25 agency receiving a grant pursuant to this title 
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1 shall establish a system for making housing as2 sistance pursuant to this title available to eligi3 ble families. 

4 (B) REQUIREMENTS OF SYSTEM.—A sys5 tem required under subparagraph (A) may in6 clude preferences for certain eligible populations 

7 identified by the public housing agency. 

8 (C) DISABILITY PREFERENCE.—Notwith9 standing any other provisions of law, in pro10 viding assistance under this title a public hous11 ing agency may establish a preference for per12 sons with a specific disability. 

13 (2) NONDISCRIMINATION PROVISION.—No per14 son in the United States shall, on the grounds of 

15 race, color, national origin, religion, or sex, be ex16 cluded from participation in, be denied the benefits 

17 of, or be subjected to discrimination under any pro18 gram or activity funded in whole or in part with 

19 funds made available under this title. 

20 (f) REVIEW OF FAMILY INCOME.— 

21 (1) IN GENERAL.—Not less frequently than 

22 once every 2 years, each public housing agency ad23 ministering a housing assistance grant pursuant to 

24 this title shall conduct a review of the family income 

25 of each family receiving assistance under this title to 
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1 determine the continued eligibility of that family to 

2 receive assistance under this title. 

3 (2) ELDERLY OR DISABLED FAMILY EXCEP4 TION.—Notwithstanding paragraph (1), not less fre5 quently than once every 3 years, each public housing 

6 agency shall review the income of each elderly family 

7 and each disabled family receiving assistance under 

8 this title to determine the continued eligibility of 

9 that family to receive assistance under this title. 

10 (g) TERMINATION FOR CRIMINAL ACTIVITY AND AL11 COHOL ABUSE AND SELECTION OF TENANTS.— 

12 (1) TERMINATION OF ASSISTANCE.—Notwith13 standing any other provision of law, a public housing 

14 agency may deny assistance under this title based on 

15 the actions by a family member, and may terminate 

16 assistance under this title based on actions by a 

17 family member, or any guest or other person under 

18 the family’s control, if the public housing agency de19 termines that the family member or other person en20 gages in or has engaged in any— 

21 (A) criminal activity (including violent 

22 criminal activity and drug-related criminal ac23 tivity) on or off the premises; 

24 (B) alcohol abuse (or pattern of abuse) 

25 that threatens the health, safety, or right to 
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1 peaceful enjoyment of the premises by other 

2 tenants; 

3 (C) parole violation, probation violation, or 

4 flight to avoid prosecution, custody, or confine5 ment after conviction; or 

6 (D) such other acts that subject the person 

7 to a lifetime registration requirement under a 

8 State sex offender registration program. 

9 (2) GENERAL TERMINATION PROVISIONS.—

10 Each contract between a public housing agency and 

11 an owner to make assistance payments under this 

12 title shall provide that, during the term of the lease, 

13 the owner may not terminate the tenancy except for 

14 serious or repeated violations of the terms and con15 ditions of the lease, for violation of applicable Fed16 eral, State, and local law, in accordance with this 

17 title, or for other good cause. 

18 (3) SPECIFIC CAUSES FOR TERMINATION.— 

19 (A) IN GENERAL.—Each contract between 

20 a public housing agency and an owner to make 

21 assistance payments under this title shall pro22 vide that, during the term of the lease, the cir23 cumstances described un subparagraph (B) 

24 shall be cause for termination of tenancy by the 

25 owner, if the owner determines that the tenant 
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1 of a unit, any member of the tenant’s house2 hold, or any guest or other person under the 

3 tenant’s control engages in or has engaged in 

4 any activities described in subparagraph (B). 

5 (B) PROHIBITED ACTIVITIES.—Activities 

6 described in this subparagraph are— 

7 (i) violent criminal activity or drug-re8 lated criminal activity, on or off the prem9 ises; 

10 (ii) other criminal activity that threat11 ens the health, safety, or right to peaceful 

12 enjoyment of the premises by other ten13 ants, or the right to peaceful enjoyment of 

14 their residences by persons residing in the 

15 immediate vicinity of the premises; 

16 (iii) alcohol abuse (or pattern of 

17 abuse) that threatens the health, safety, or 

18 right to peaceful enjoyment of the premises 

19 by other tenants; 

20 (iv) parole violation, probation viola21 tion, or flight to avoid prosecution, cus22 tody, or confinement after conviction; or 

23 (v) such other acts that subject the 

24 person to a lifetime registration require-
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1 ment under a State sex offender registra2 tion program. 

3 (4) ADDITIONAL TERMINATION PROVISIONS.—A 

4 public housing agency may deny or terminate assist5 ance under this title, and the owner may terminate 

6 tenancy for reasons other than the reasons specified 

7 in paragraph (3), as specified in an agreement or 

8 contract or as prescribed by the Secretary. 

9 (5) SELECTION OF TENANTS.—After the eligi10 bility of a family is determined in accordance with 

11 this section, the selection of a tenant shall be the 

12 function of the owner. 

13 (h) SELECTION OF FAMILIES.—In selecting families 

14 for the provision of assistance under this title, a public 

15 housing agency may not exclude or penalize a family solely 

16 because the family resides in a public housing project, sub17 ject to the normal and customary procedures of the public 

18 housing agency. 

19 SEC. 108. ELIGIBLE ACTIVITIES. 

20 (a) IN GENERAL.—Eligible activities under this title 

21 include— 

22 (1) tenant-based rental assistance, including 

23 pad rentals; 

24 (2) project-based rental assistance under sub25 section (b); 
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1 (3) tenant-based homeownership assistance for 

2 first-time homebuyers under subsection (c); 

3 (4) self-sufficiency programs under section 114, 

4 including self-sufficiency escrow savings accounts de5 posits; 

6 (5) costs of administering grant amounts under 

7 this title; 

8 (6) costs of other activities, as specified by the 

9 Secretary, in support of tenant-based rental assist10 ance, project-based rental assistance, tenant-based 

11 homeownership assistance, and self-sufficiency coor12 dinators authorized under this title; and 

13 (7) amounts to be used by the Secretary for 

14 purposes of program evaluation, management infor15 mation systems, and technical assistance. 

16 (b) PROJECT-BASED RENTAL ASSISTANCE.— 

17 (1) IN GENERAL.—A public housing agency 

18 may use amounts provided under this title to enter 

19 into a project-based housing assistance payments 

20 contract with respect to eligible units for up to 10 

21 years, subject to the availability of appropriations 

22 and to compliance with the inspection requirements 

23 under section 112(b). 

24 (2) EXTENSIONS.—At the expiration of a con25 tract entered into under paragraph (1), a public 
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1 housing agency may extend the term of the contract 

2 if the housing continues to meet the housing quality 

3 standards under section 112(b) and such other re4 quirements as that public housing agency may pre5 scribe. 

6 (3) PERCENTAGE LIMITATIONS.— 

7 (A) ATTACHED STRUCTURES.—Not more 

8 than 20 percent of the funding made available 

9 to the public housing agency under this title 

10 may be attached to structures pursuant to this 

11 subsection. 

12 (B) PROJECT-BASED HOUSING ASSIST13 ANCE.—Not more than 25 percent of the dwell14 ing units in any building may be assisted under 

15 a project-based housing assistance payments 

16 contract, except for— 

17 (i) housing consisting of single-family 

18 properties; or 

19 (ii) dwelling units that are specifically 

20 made available for households comprised of 

21 elderly families, disabled families, and fam22 ilies receiving supportive services. 

23 (4) OPTION OF TENANT-BASED ASSISTANCE.— 

24 (A) RELOCATION.—Each low-income fam25 ily occupying a dwelling unit assisted under a 
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1 project-based voucher contract may relocate and 

2 continue to receive assistance under this title so 

3 long as the family has occupied the assisted 

4 dwelling unit for 12 months and relocates with5 in the jurisdiction of the public housing agency 

6 wherein it currently resides. 

7 (B) COMPARABLE ASSISTANCE.—Except as 

8 provided in subparagraphs (C) and (D), upon 

9 such a move to a unit that meets Federal and 

10 local requirements, including housing quality 

11 standards, the public housing agency shall pro12 vide the low-income family with tenant-based 

13 rental assistance under this title or such other 

14 tenant-based rental assistance that is com15 parable. 

16 (C) LIMITATION.—In providing assistance 

17 under subparagraph (B), the public housing 

18 agency shall not be required to provide housing 

19 assistance in an amount higher than the assist20 ance provided to the low-income family prior to 

21 the relocation under subparagraph (A). 

22 (D) IF ASSISTANCE NOT AVAILABLE.—If 

23 tenant-based rental assistance is not imme24 diately available to fulfill this requirement, the 

25 public housing agency shall provide the family 
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1 with the next available tenant-based rental 

2 voucher or other tenant-based rental assistance 

3 amounts that become available. 

4 (5) PAYMENT FOR VACANT UNITS.— 

5 (A) IN GENERAL.—The public housing 

6 agency may continue to provide assistance 

7 under the project-based contract, for a reason8 able period not exceeding 60 days, for a dwell9 ing unit that becomes vacant, but only if— 

10 (i) the vacancy was not the fault of 

11 the owner of the dwelling unit; and 

12 (ii) the owner takes every reasonable 

13 action to minimize the likelihood and ex14 tent of any such vacancy. 

15 (B) NO ASSISTANCE AFTER EXPIRATION

16 OF 60-DAY PERIOD.—Project-based rental as17 sistance may not be provided for a vacant unit 

18 after the expiration of the 60-day period de19 scribed in subparagraph (A). 

20 (c) HOMEOWNERSHIP ASSISTANCE FOR FIRST-TIME

21 HOMEBUYERS.— 

22 (1) IN GENERAL.—A public housing agency 

23 may provide tenant-based homeownership assistance 

24 and downpayment assistance under this title to as25 sist a first-time homebuyer that purchases a home. 
27

•S 771 IS

1 (2) FAMILY ELIGIBILITY.—In order to receive 

2 tenant-based homeownership assistance or downpay3 ment assistance under this title, a family shall— 

4 (A) qualify as a first-time homebuyer; 

5 (B) participate in a homeownership coun6 seling program; and 

7 (C) meet any other initial or continuing re8 quirements established by the public housing 

9 agency. 

10 (3) PURCHASE AGREEMENT.—A recipient of 

11 tenant-based homeownership assistance or downpay12 ment assistance may enter into a purchase agree13 ment for a home whether constructed, under con14 struction, or proposed. 

15 (4) DOWNPAYMENT ASSISTANCE.— 

16 (A) IN GENERAL.—Subject to the provi17 sions of this paragraph, a public housing agen18 cy may, in lieu of providing tenant-based home19 ownership assistance to a family under this sub20 section, provide downpayment assistance under 

21 this title for a family that has received a rental 

22 subsidy administered by the Secretary for a pe23 riod of not less than 12 months prior to the 

24 date of receipt of downpayment assistance. 
28

•S 771 IS

1 (B) GRANT REQUIREMENTS.—A downpay2 ment assistance grant under subparagraph 

3 (A)— 

4 (i) shall be in the form of a single 

5 one-time grant to be used only as a con6 tribution toward the downpayment and 

7 reasonable and customary closing costs re8 quired in connection with the purchase of 

9 a home; and 

10 (ii) may not exceed $10,000. 

11 (C) NO EFFECT ON OBTAINING OUTSIDE

12 SOURCES FOR DOWNPAYMENT ASSISTANCE.—

13 This title may not be construed to prohibit a 

14 public housing agency from providing downpay15 ment assistance to families from sources other 

16 than a grant provided under this title, or as de17 termined by the public housing agency. 

18 SEC. 109. AMOUNT OF ASSISTANCE. 

19 (a) IN GENERAL.—In accordance with the provisions 

20 of this section, each public housing agency administering 

21 assistance under this title shall determine the amount of 

22 any monthly assistance payment for a family. 

23 (b) RENT STRUCTURES.—In fulfilling its require24 ments under this section, a public housing agency may es25 tablish— 
29

•S 771 IS

1 (1) a rent structure in which a family pays a 

2 flat amount of rent and such amount is adjusted on 

3 the basis of an annual cost index; 

4 (2) an income-tiered rent structure in which the 

5 amount of rent that a family is required to pay is 

6 set and distributed on the basis of broad tiers of in7 come, adjusted on the basis of an annual cost index; 

8 (3) a rent structure in which the amount of 

9 rent that a family is required to pay is based on a 

10 percentage of family income; 

11 (4) a rent structure in which the amount of 

12 rent that a family is required to pay is based on the 

13 provisions of sections 3 and 8(o)(2) of the United 

14 States Housing Act of 1937 (42 U.S.C. 1437a and 

15 1437f(o)(2)) as such sections existed prior to the 

16 date of enactment of this title; or 

17 (5) any other rent structure that includes 1 or 

18 more of the elements of the rent structures specified 

19 in this subsection. 

20 (c) ELDERLY AND DISABLED FAMILIES.—Notwith21 standing subsection (b), elderly families and disabled fami22 lies shall pay rent in accordance with the provisions of sec23 tion 105. 

24 (d) MINIMUM RENTAL AMOUNT.—A public housing 

25 agency shall establish a minimum monthly rental amount 
30

•S 771 IS

1 to be paid by each family assisted in accordance with this 

2 title. 

3 (e) RENT REASONABLENESS.— 

4 (1) IN GENERAL.—The rent for dwelling units 

5 assisted under this title shall be reasonable and ap6 propriate in comparison with rents charged for 

7 dwelling units of a modest nature and a non-luxury 

8 standard in the private, unassisted local market. 

9 (2) REVIEW.—Public housing agencies shall re10 view rents not less than annually to ensure that they 

11 meet the standard described in paragraph (1). 

12 (f) MAXIMUM SUBSIDY.—Public housing agencies 

13 shall establish maximum subsidy levels for housing assist14 ance under this title that are reasonable and appropriate 

15 for the market area. 

16 SEC. 110. ALLOCATION AND DISTRIBUTION OF FUNDS. 

17 (a) IN GENERAL.—For purposes of administering as18 sistance under this title, the Secretary shall allocate avail19 able amounts subject to appropriations as follows: 

20 (1) INTERIM FORMULA FOR ALLOCATION OF

21 FUNDS.—During the fiscal years in which this title 

22 is being administered pursuant to the Federal Reg23 ister notice described in section 118(a), each public 

24 housing agency may receive an amount propor25 tionate to its annual 2005 housing choice voucher 
31

•S 771 IS

1 program funding for housing assistance and admin2 istrative expenses, adjusted for inflation and subject 

3 to validation. 

4 (2) PERMANENT FORMULA FOR ALLOCATION OF

5 FUNDS.—In accordance with the provisions of sec6 tion 118(b)(2), the Secretary shall establish a for7 mula to allocate funding made available by Congress 

8 under this title. 

9 (b) AMOUNTS TO PROVIDE TENANT-BASED RENTAL

10 ASSISTANCE.— 

11 (1) IN GENERAL.—The Secretary shall allocate 

12 amounts made available from appropriations to pub13 lic housing agencies for tenant-based rental assist14 ance as authorized by section 115. 

15 (2) TIMING.—Additional tenant-based rental 

16 assistance provided under paragraph (1) for a family 

17 shall be allocated for 1 year. 

18 (3) EXPIRATION.—After the expiration of the 

19 1-year period described in paragraph (2), any 

20 amounts not expended shall be included in the sub21 sequent grant to each public housing agency under 

22 this title. 

23 SEC. 111. ENVIRONMENTAL REVIEW. 

24 Notwithstanding any other provision of law, the Na25 tional Environmental Protection Act (42 U.S.C. 4321 et 
32

•S 771 IS

1 seq.) shall not apply to activities authorized under this 

2 title. 

3 SEC. 112. INSPECTION OF UNITS. 

4 (a) INSPECTION REQUIRED.— 

5 (1) IN GENERAL.—The Secretary shall require 

6 that a public housing agency administering rental 

7 assistance under this title shall inspect each rental 

8 dwelling unit assisted pursuant to this title not later 

9 than 60 days after the date of receipt of the initial 

10 assistance payment to determine that the rental 

11 dwelling unit meets the housing quality standards 

12 under subsection (b). 

13 (2) STANDARDS MUST BE MET.—Each rental 

14 dwelling unit shall meet such standards in order to 

15 receive continued assistance payments. 

16 (b) HOUSING QUALITY STANDARDS.—Each rental 

17 dwelling unit assisted by a public housing agency under 

18 this title shall either meet the housing quality standards 

19 established by the Secretary or comparable housing qual20 ity standards that the Secretary has approved. 

21 (c) INSPECTIONS.— 

22 (1) MAINTENANCE REQUIREMENT.—Each pub23 lic housing agency administering rental assistance 

24 under this title shall determine that all occupied 

25 dwelling units assisted by such public housing agen-
33

•S 771 IS

1 cy pursuant to this title are maintained in accord2 ance with the standards described under subsection 

3 (b). 

4 (2) TIMING.—Each rental dwelling unit assisted 

5 by the public housing agency under this title shall be 

6 inspected when it is first leased, pursuant to sub7 section (a). Thereafter, each public housing agency 

8 shall annually inspect at least 25 percent of all of 

9 its rental dwelling units assisted under this title, and 

10 each such rental dwelling unit shall be inspected at 

11 least once every 4 years. 

12 (d) CORRECTIVE ACTIONS.—No further assistance 

13 payment may be made pursuant to this title for a rental 

14 dwelling unit which fails to meet the standards under sub15 sections (b) or (c). 

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

17 ASSISTANCE. 

18 (a) STATE AND REGIONAL TRANSFER AGREE19 MENTS.—A public housing agency may enter into agree20 ments with other public housing agencies within the same 

21 State or region in order to facilitate the ability of transfer22 eligible families who wish to transfer their tenant-based 

23 rental assistance under this title to another jurisdiction 

24 within a State or region. 
34

•S 771 IS

1 (b) REGIONAL BOUNDARIES.—For the purpose of en2 tering into agreements among public housing agencies 

3 within a proposed region pursuant to subsection (a), pub4 lic housing agencies may establish regions and enter into 

5 regional agreements with other public housing agencies, 

6 except that the public housing agencies shall notify the 

7 Secretary of any proposed regional boundaries encom8 passing more than 1 State or the District of Columbia 

9 prior to the execution of any such agreement, and the 

10 boundaries may be implemented only if the Secretary does 

11 not object, not later than 60 days after the date of notifi12 cation to the Secretary. 

13 (c) PROCEDURES.—The Secretary may establish pro14 cedures to transfer funding between public housing agen15 cies in order to phase out and eliminate previous port16 ability billing arrangements among public housing agen17 cies under section 8(r)(3) of the United States Housing 

18 Act of 1937 (42 U.S.C. 1437f(r)(3)) as in effect on the 

19 day prior to the date of enactment of this title. 

20 SEC. 114. SELF-SUFFICIENCY. 

21 (a) SELF-SUFFICIENCY.—Subject to the provisions of 

22 this section, a public housing agency may develop a local 

23 self-sufficiency initiative accessing public and private re24 sources to enable families to achieve economic independ25 ence and homeownership. 
35

•S 771 IS

1 (b) ELIGIBLE ACTIVITIES.—A public housing agency 

2 may use funds made available under this title for a self3 sufficiency initiative authorized by subsection (a) only— 

4 (1) to provide housing assistance; 

5 (2) to employ self-sufficiency coordinators; and 

6 (3) to establish and maintain a special escrow 

7 account incentive. 

8 (c) REQUIREMENTS.—A public housing agency may 

9 establish requirements for participating families and ter10 minate or withhold assistance under this title if families 

11 fail to comply, without good cause, with any such require12 ments. 

13 SEC. 115. TERMINATION OF RENTAL ASSISTANCE CON14 TRACTS AND RELATED TRANSACTIONS. 

15 (a) ENHANCED VOUCHER ASSISTANCE.— 

16 (1) IN GENERAL.—Except as provided in sub17 section (b), families affected by an eligibility event 

18 shall receive enhanced voucher assistance under this 

19 subsection. 

20 (2) SCOPE OF ENHANCED VOUCHER ASSIST21 ANCE.—Enhanced voucher assistance shall be ten22 ant-based rental assistance under this title, except 

23 that a family shall— 
36

•S 771 IS

1 (A) pay as rent not less than the amount 

2 that the family was paying on the date of the 

3 eligibility event; 

4 (B) be allowed to remain in the rental 

5 housing project in which they were residing for 

6 12 months; and 

7 (C) have its housing assistance calculated 

8 in accordance with the provisions of section 109 

9 if the family moves out of the housing project. 

10 (3) AMOUNT OF RENTAL ASSISTANCE.—If a 

11 family elects to remain in the same housing project 

12 under paragraph (2)(A), and if the rent for the 

13 dwelling unit in the housing project exceeds the 

14 maximum subsidy level established by the public 

15 housing agency, the maximum subsidy level used to 

16 calculate the enhanced voucher shall equal the rent 

17 for the dwelling unit, subject to the rent reasonable18 ness requirements of section 109(e) and any other 

19 reasonable limit prescribed by the Secretary. 

20 (4) TENANT-BASED RENTAL ASSISTANCE.—

21 After 12 months of receiving assistance under sub22 section (a), affected families shall receive tenant23 based rental assistance calculated in accordance with 

24 section 109 in lieu of the assistance under sub25 section (a). 
37

•S 771 IS

1 SEC. 116. FAILURE TO PERFORM. 

2 (a) MONITORING.—The Secretary shall make such 

3 reviews and audits as may be necessary or appropriate to 

4 determine whether— 

5 (1) each public housing agency has carried out 

6 the activities and objectives of this title, including all 

7 certifications, in accordance with the requirements of 

8 this title and other applicable laws; 

9 (2) it has the continuing capacity to undertake 

10 such activities and objectives in a timely and effec11 tive manner; and 

12 (3) whether it has met the performance stand13 ards established by the Secretary pursuant to sec14 tion 106(a). 

15 (b) ENFORCEMENT.—In addition to any other actions 

16 authorized under this or any other applicable law, if the 

17 Secretary finds that a public housing agency receiving as18 sistance under this title has failed to comply with any pro19 vision of this title, including any performance standard es20 tablished by the Secretary pursuant to this title, and until 

21 the Secretary is satisfied that there is no longer any such 

22 failure to comply, the Secretary may— 

23 (1) terminate payments under this title to the 

24 public housing agency and provide for alternative 

25 administration of such amounts; 
38

•S 771 IS

1 (2) withhold from the public housing agency 

2 amounts from the total allocation that would other3 wise be available to the public housing agency under 

4 this title; 

5 (3) reduce the amount of future grants to the 

6 public housing agency by an amount equal to the 

7 amount of such grants that were not expended in ac8 cordance with this title; 

9 (4) limit the availability of amounts provided to 

10 the public housing agency to programs and activities 

11 under this title not affected by such failure to com12 ply; 

13 (5) withhold from the public housing agency 

14 other amounts allocated for the public housing agen15 cy under other programs administered by the Sec16 retary; 

17 (6) require such changes in public housing 

18 agency policy or management practices, consistent 

19 with other provisions of this title, as determined nec20 essary to ensure compliance; 

21 (7) refer any such failure to comply, as appro22 priate, to Federal, State, or local enforcement agen23 cies for appropriate action; 

24 (8) impose civil money penalties, except that a 

25 public housing agency shall not pay a civil money 
39

•S 771 IS

1 penalty imposed under this paragraph from a grant 

2 received under section 103; or 

3 (9) take any combination of the actions de4 scribed in paragraphs (1) through (8), as appro5 priate. 

6 SEC. 117. ADMINISTRATIVE AND SPECIAL ADMINISTRATIVE 

7 FEES. 

8 (a) ADMINISTRATIVE FEES.—In each fiscal year, the 

9 Secretary shall pay an administrative fee to each public 

10 housing agency administering a program under this title. 

11 (b) SPECIAL ADMINISTRATIVE FEES.—Of amounts 

12 made available under this title for administrative fees, the 

13 Secretary may retain up to 5 percent for allocation as spe14 cial administrative fees to public housing agencies for non15 routine expenses. 

16 (c) INTERIM ALLOCATION OF ADMINISTRATIVE

17 FEES.—During the period in which this title is being ad18 ministered pursuant to the Federal Register notice de19 scribed in section 118(a), the Secretary shall allocate ad20 ministrative fees to public housing agencies on a pro rata 

21 basis, based upon the amount that each public housing 

22 agency received under the pro rata distribution method in 

23 fiscal year 2005. 

24 (d) PERMANENT ALLOCATION OF ADMINISTRATIVE

25 FEES.—In the final rule described in section 118(b)(2), 
40

•S 771 IS

1 the Secretary shall establish a formula for distributing ad2 ministrative fees for the administration of this title. 

3 SEC. 118. IMPLEMENTATION. 

4 (a) INTERIM IMPLEMENTATION.—Notwithstanding 

5 any other provision of law, the Secretary shall publish a 

6 notice in the Federal Register not later than 90 days after 

7 the date of enactment of this title describing the imme8 diate implementation of this title on an interim basis. 

9 (b) FINAL IMPLEMENTATION.— 

10 (1) RULES.—The Secretary shall, not later 

11 than 18 months after the date of enactment of this 

12 title, issue a final rule for the purpose of implemen13 tation of this title, other than sections 110(a)(2) and 

14 117(d). 

15 (2) RULES ISSUED UNDER NEGOTIATED RULE16 MAKING PROCEDURES.—For the purpose of final im17 plementation of sections 110(a)(2) and 117(d), the 

18 Secretary shall issue 1 or more proposed rules devel19 oped under the negotiated rulemaking procedure 

20 under subchapter III of chapter 5 of title 5, United 

21 States Code. 

22 (3) RULES SHALL BE ISSUED WITHIN 24

23 MONTHS.—One or more final rules implementing 

24 sections 110(a)(2), and 117(d) shall be issued not 
41

•S 771 IS

1 later than 24 months after the date of enactment of 

2 this title. 

3 SEC. 119. AUTHORIZATION OF APPROPRIATIONS. 

4 There are authorized to be appropriated such sums 

5 as may be necessary to carry out the provisions of this 

6 title for each of fiscal years 2006 through 2011. 

7 SEC. 120. CONFORMING AMENDMENTS. 

8 (a) PUBLIC HOUSING AGENCY ORGANIZATION.—Sec9 tion 2 of the United States Housing Act of 1937 (42 

10 U.S.C. 1437) is amended— 

11 (1) in subsection (b)(2)— 

12 (A) in subparagraph (A), by striking ‘‘or’’ 

13 at the end; 

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

15 period at the end and inserting ‘‘; or’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(C) that is administering a program 

18 under section 8 of this Act.’’; and 

19 (2) in subsection (b)(3), by striking ‘‘or status 

20 as assisted housing under section 8’’. 

21 (b) RENTAL PAYMENTS.—Section 3 of the United 

22 States Housing Act of 1937 (42 U.S.C. 1437a) is amend23 ed— 

24 (1) in subsection (a)(1)— 
42

•S 771 IS

1 (A) by striking ‘‘(other than a family as2 sisted under section 8(o) or (y) or paying rent 

3 under section 8(c)(3)(B))’’; and 

4 (B) by inserting ‘‘section 3A of this Act 

5 and’’ after ‘‘Except as provided in’’; 

6 (2) in subsection (a)(3)(A), by striking 

7 ‘‘(o)(2)’’; 

8 (3) in subsection (b)(6)— 

9 (A) by striking ‘‘(A) IN GENERAL.—Except 

10 as provided in subparagraph (B), the term’’ 

11 and inserting ‘‘The term’’; and 

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

13 (4) in subsection (f)(2)— 

14 (A) in subparagraph (A), by inserting 

15 ‘‘and’’ after the semicolon; 

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

17 (C) by redesignating subparagraph (C) as 

18 subparagraph (B). 

19 (c) CONTRIBUTIONS FOR LOWER INCOME HOUSING

20 PROJECTS.—Section 5(c) of the United States Housing 

21 Act of 1937 (42 U.S.C. 1437c(c)) is amended by striking 

22 paragraphs (6) through (8). 

23 (d) PUBLIC HOUSING AGENCY PLANS.—Section 5A 

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

25 1437c–1) is amended— 
43

•S 771 IS

1 (1) in subsection (a)(1), by inserting ‘‘admin2 istering programs under this Act’’ after ‘‘public 

3 housing agency’’ the first place it appears; 

4 (2) in subsection (b)(1), by striking ‘‘8(o) or’’; 

5 (3) in subsection (d)— 

6 (A) in paragraph (3), by striking ‘‘and 

7 housing assistance under section 8(o)’’; 

8 (B) in paragraph (4), by striking ‘‘and 

9 rental contributions of families assisted under 

10 section 8(o)’’; 

11 (C) in paragraph (10)(A), by striking ‘‘to 

12 tenant-based assistance’’ and 

13 (D) in paragraph (11), by striking ‘‘under 

14 section 8(y) or’’; and 

15 (4) in subsection (k)— 

16 (A) in subparagraph (A), by inserting 

17 ‘‘and’’ after the semicolon; 

18 (B) in subparagraph (B), by striking ‘‘; 

19 and’’ and inserting a period; and 

20 (C) by striking subparagraph (C). 

21 (e) CONTRACT PROVISIONS.—Section 6(q)(8)(B) of 

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

23 1437d(q)(8)(B)) is amended— 

24 (1) in clause (i), by inserting ‘‘and’’ after the 

25 semicolon; 
44

•S 771 IS

1 (2) in clause (ii), by striking ‘‘; and’’ and in2 serting a period; and 

3 (3) by striking clause (iii). 

4 (f) DESIGNATED HOUSING FOR ELDERLY AND DIS5 ABLED FAMILIES.—Section 7(c)(2) of the United States 

6 Housing Act of 1937 (42 U.S.C. 1437e(c)(2)) is amended 

7 by striking ‘‘tenant-based rental assistance under section 

8 8’’ and inserting ‘‘assistance under the Flexible Voucher 

9 Act of 2005’’. 

10 (g) LOWER INCOME HOUSING ASSISTANCE.—Section 

11 8 of the United States Housing Act of 1937 (42 U.S.C. 

12 1437f) is amended— 

13 (1) in subsection (b)— 

14 (A) in paragraph (1), by striking ‘‘(1) IN

15 GENERAL.—’’ ; and 

16 (B) by striking paragraph (2); 

17 (2) in subsection (p), by striking ‘‘existing 

18 housing and moderate rehabilitation programs’’; and 

19 inserting ‘‘moderate rehabilitation program’’; 

20 (3) in subsection (q)— 

21 (A) by striking paragraphs (2) through (4) 

22 (B) in paragraph (1)— 

23 (i) in subparagraph (A)— 
45

•S 771 IS

1 (I) by striking ‘‘tenant-based as2 sistance, certificate, voucher, and’’; 

3 and 

4 (II) by striking ‘‘rehabilitation 

5 programs’’ and inserting ‘‘rehabilita6 tion program’’; 

7 (ii) by striking subparagraph (B); 

8 (iii) by redesignating subparagraphs 

9 (C) as subparagraph (B); and 

10 (iv) by redesignating subparagraphs 

11 (D) and (E) as paragraphs (2) and (3), re12 spectively, and moving the margins 2 ems 

13 to the left. 

14 (4) in subsection (z)— 

15 (A) in paragraph (1)(A)— 

16 (i) in the subparagraph heading, by 

17 striking ‘‘TENANT-BASED ASSISTANCE’’ 

18 and inserting ‘‘VOUCHER PROGRAM AS19 SISTANCE’’; and 

20 (ii) by striking ‘‘tenant-based assist21 ance’’ and inserting ‘‘assistance under the 

22 Flexible Voucher Act of 2005’’; and 

23 (B) in paragraph (2)— 

24 (i) by striking ‘‘tenant - or’’; and 

25 (ii) by striking the last sentence; and 
46

•S 771 IS

1 (5) by striking subsections (o), (r), (s), (t), (u), 

2 (x), (y), and (dd). 

3 (h) ELIGIBILITY FOR ASSISTED HOUSING.—Section 

4 16 of the United States Housing Act of 1937 (42 U.S.C. 

5 1437n) is amended— 

6 (1) in subsection (a), by striking paragraph (4); 

7 (2) by striking subsection (b); and 

8 (3) by redesignating subsections (c), (d), and 

9 (f) as subsections (b), (c), and (d), respectively. 

10 (i) DEMOLITION AND DISPOSITION OF HOUSING.—

11 Section 18(a)(4)(A)(iii)(III)(aa) of the United States 

12 Housing Act of 1937 (42 U.S.C. 

13 1437p(a)(4)(A)(iii)(III)(aa)) is amended by striking ‘‘ten14 ant-based assistance’’ and inserting ‘‘assistance under the 

15 Flexible Voucher Act of 2005’’. 

16 (j) CONVERSION OF PUBLIC HOUSING TO VOUCH17 ERS.—Section 22 of the United States Housing Act of 

18 1937 (42 U.S.C. 1437t) is amended— 

19 (1) in subsection (a), by striking ‘‘tenant-based 

20 assistance’’ and inserting ‘‘assistance under the 

21 Flexible Voucher Act of 2005’’; 

22 (2) in subsection (b)(1)— 

23 (A) in subparagraph (A), by striking ‘‘ten24 ant-based assistance under section 8’’ and by 
47

•S 771 IS

1 inserting ‘‘assistance under the Flexible Vouch2 er Act of 2005’’; 

3 (B) in subparagraph (C), by striking ‘‘ten4 ant-based assistance under section 8’’ each 

5 place that term appears and inserting ‘‘assist6 ance under the Flexible Voucher Act of 2005’’; 

7 (C) in subparagraph (D), by striking ‘‘ten8 ant-based assistance’’ and inserting ‘‘assistance 

9 under the Flexible Voucher Act of 2005’’; and 

10 (D) in subparagraph (E), by striking ‘‘ten11 ant-based assistance’’ and inserting ‘‘assistance 

12 under the Flexible Voucher Act of 2005’’; 

13 (3) in subsection (c), by striking ‘‘tenant-based 

14 assistance’’ and inserting ‘‘assistance under the 

15 Flexible Voucher Act of 2005’’; and 

16 (4) in subsection (d)— 

17 (A) by striking ‘‘tenant-based assistance’’ 

18 and inserting ‘‘assistance under the Flexible 

19 Voucher Act of 2005’’; and 

20 (B) in paragraph (4)(A)(ii)(III)(aa), by 

21 striking ‘‘tenant-based assistance’’ each place 

22 that term appears and inserting ‘‘assistance 

23 under the Flexible Voucher Act of 2005’’; and 

24 (5) by striking subsection (f). 
48

•S 771 IS

1 (k) FAMILY SELF-SUFFICIENCY PROGRAM.—Section 

2 23 of the United States Housing Act of 1937 (42 U.S.C. 

3 1437u) is amended— 

4 (1) in subsection (a), by striking ‘‘and assist5 ance under the certificate and voucher programs 

6 under section 8’’; 

7 (2) in subsection (b)— 

8 (A) in paragraph (4)(A), by striking ‘‘re9 ceives incremental assistance under subsection 

10 (b) or (o) of section 8 or that’’; and 

11 (B) by striking paragraph (5); 

12 (3) in subsection (c)— 

13 (A) in paragraph (1), in the first sentence, 

14 by striking ‘‘receiving assistance under the cer15 tificate and voucher programs of the public 

16 housing agency under section 8 or’’; 

17 (B) in paragraph (1), in the third sen18 tence, by striking ‘‘under section 8’’; and 

19 (C) in paragraph (2), in the second sen20 tence, by striking ‘‘receiving assistance under 

21 section 8 or’’; 

22 (4) in subsection (d)— 

23 (A) in paragraph (1), in the first sentence, 

24 by striking ‘‘or dwelling unit assisted under sec25 tion 8’’; and 
49

•S 771 IS

1 (B) in paragraph (1), in the third sen2 tence, by striking ‘‘or housing assisted under 

3 section 8’’; 

4 (5) in subsection (h)— 

5 (A) by striking the subsection heading and 

6 inserting the following: ‘‘PERFORMANCE FUND7 ING SYSTEM.— ’’; 

8 (B) by striking paragraph (1); and 

9 (C) in paragraph (2), by striking ‘‘(2) 

10 PERFORMANCE FUNDING SYSTEM.—’’ ; 

11 (6) in subsection (i)(1), by striking ‘‘budget au12 thority for certificate and voucher assistance under 

13 section 8 and’’; and, 

14 (7) in subsection (n)(5), by striking ‘‘or housing 

15 assisted under section 8’’. 

16 (l) TENANT-BASED ASSISTANCE GRANTS FOR

17 PROJECTS.—Section 24 of the United States Housing Act 

18 of 1937 (42 U.S.C. 1437v) is amended— 

19 (1) in the section heading— 

20 (A) by inserting ‘‘AND’’ after ‘‘REVITAL21 IZATION,’’; and 

22 (B) by striking ‘‘, AND TENANT-BASED

23 ASSISTANCE’’; 
50

•S 771 IS

1 (2) in subsection (c)(3), by striking ‘‘tenant2 based assistance under section 8’’ and inserting ‘‘as3 sistance under the Flexible Voucher Act of 2005’’; 

4 (3) in subsection (d)(1)(J), by striking ‘‘section 

5 8’’ and inserting ‘‘the Flexible Voucher Act of 

6 2005’’; 

7 (4) in subsection (e)— 

8 (A) in paragraph (2)(F), by striking ‘‘ten9 ant’’ and inserting ‘‘project’’; and 

10 (B) in paragraph (3), by striking ‘‘, ten11 ant-based assistance only,’’ and inserting ‘‘as12 sistance under the Flexible Voucher Act of 

13 2005 only’’; and 

14 (5) in subsection (j)(2)(B), by striking ‘‘(other 

15 than tenant-based assistance)’’ and inserting ‘‘(other 

16 than assistance under the Flexible Voucher Act of 

17 2005)’’. 

18 (m) CONVERSION OF DISTRESSED PUBLIC HOUS19 ING.—Section 33 of the United States Housing Act of 

20 1937 (42 U.S.C. 1437z–5) is amended— 

21 (1) in the section heading by striking ‘‘TEN22 ANT-BASED ASSISTANCE’’ and inserting ‘‘ASSIST23 ANCE UNDER THE FLEXIBLE VOUCHER ACT OF

24 2005’’; 
51

•S 771 IS

1 (2) in subsection (a)(3)(B), by striking ‘‘tenant2 based assistance under section 8’’ and inserting ‘‘as3 sistance under the Flexible Voucher Act of 2005, if 

4 specific appropriations are available for such pur5 pose,’’; 

6 (3) in subsection (d), in the subsection heading, 

7 by striking ‘‘TENANT-BASED ASSISTANCE’’ and in8 serting ‘‘ASSISTANCE UNDER THE FLEXIBLE

9 VOUCHER ACT OF 2005’’; and 

10 (4) in subsection (d)(2)(A)(ii)(II)(aa), by strik11 ing ‘‘tenant-based assistance’’ both places where it 

12 appears and inserting ‘‘assistance under the Flexible 

13 Voucher Act of 2005’’. 

14 (n) LOCAL HOUSING ASSISTANCE PLAN.—Section 

15 213 of the Housing and Community Development Act of 

16 1974 (42 U.S.C. 1439) is amended— 

17 (1) in subsection (d)(1)(A)— 

18 (A) in clause (i)— 

19 (i) by striking ‘‘(i)’’; and 

20 (ii) in the last sentence— 

21 (I) by striking ‘‘tenant-based’’ 

22 and inserting ‘‘project-based’’; and 

23 (II) by striking ‘‘(o)’’; and 

24 (B) by striking clause (ii); and 

25 (2) by striking subsection (e). 
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1 TITLE II—PUBLIC HOUSING 

2 RENT FLEXIBILITY AND SIM3 PLIFICATION 

4 SEC. 201. SHORT TITLE. 

5 This title may be cited as the ‘‘Public Housing Rent 

6 Flexibility and Simplification Act of 2005’’. 

7 SEC. 202. PUBLIC HOUSING RENT FLEXIBILITY AND SIM8 PLIFICATION. 

9 (a) IN GENERAL.—Section 3 of the United States 

10 Housing Act of 1937 (42 U.S.C. 1437a), as amended by 

11 section 120, is amended— 

12 (1) in subsection (a)— 

13 (A) by striking ‘‘(1) Dwelling units’’ and 

14 that follows through ‘‘(3), a family’’ and insert15 ing ‘‘A family’’; and 

16 (B) by striking paragraphs (2), (3), (4), 

17 and (5); 

18 (2) in subsection (b)(5)— 

19 (A) in subparagraph (A), by striking 

20 ‘‘(A)’’; and 

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

22 (3) in subsection (d)(3), by amending subpara23 graph (A) to read as follows: 

24 ‘‘(A) that receives assistance under section 

25 8; and’’. 
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1 (b) PUBLIC HOUSING RENTAL PAYMENTS.—The 

2 United States Housing Act of 1937 is amended by insert3 ing after section 3 (42 U.S.C. 1437a) the following new 

4 section: 

5 ‘‘SEC. 3A. PUBLIC HOUSING RENTAL PAYMENTS. 

6 ‘‘(a) RENT STRUCTURE AND OCCUPANCY.— 

7 ‘‘(1) IN GENERAL.—Public housing dwelling 

8 units assisted under this Act shall be rented only to 

9 and occupied by low-income families that do not own 

10 a significant interest in real property and do not 

11 have assets exceeding an amount established by the 

12 Secretary at the time of their initial occupancy of 

13 such units. 

14 ‘‘(2) REVIEW.—Not less frequently than once 

15 every 2 years, each public housing dwelling unit re16 ceiving assistance under this Act shall conduct a re17 view of the family income of each family occupying 

18 such unit to determine the continued eligibility of 

19 that family to occupy such unit. 

20 ‘‘(3) ELDERLY OR DISABLED FAMILY EXCEP21 TION.—Notwithstanding paragraph (1), not less fre22 quently than once every 3 years, each public housing 

23 dwelling unit receiving assistance under this Act 

24 shall conduct a review of the income of each elderly 

25 family or disabled family occupying such unit to de-
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1 termine the continued eligibility of that family to oc2 cupy such unit. 

3 ‘‘(4) RENTAL PAYMENTS FOR PUBLIC HOUSING

4 FAMILIES AND RENT STRUCTURE.— 

5 ‘‘(A) IN GENERAL.—In accordance with 

6 the provisions of this section, public housing 

7 agencies shall determine the amount of any 

8 monthly rent for a family with respect to a pub9 lic housing dwelling unit receiving assistance 

10 under this Act. 

11 ‘‘(B) RENT STRUCTURE GUIDELINES.—In 

12 fulfilling its requirements under this section, a 

13 public housing agency may establish— 

14 ‘‘(i) a rent structure in which the pub15 lic housing agency establishes a flat 

16 amount of rent for each dwelling unit that 

17 it owns and operates, based on the rental 

18 value of the unit, as determined by the 

19 public housing agency, and in which such 

20 rent is adjusted on the basis of an annual 

21 cost index; 

22 ‘‘(ii) an income-tiered rent structure 

23 in which the amount of rent that a family 

24 is required to pay is set and distributed on 

25 the basis of broad tiers of income, and 
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1 such tiers and rents are adjusted on the 

2 basis of an annual cost index, except that 

3 families entering public housing shall not 

4 be offered a rent that is lower than the 

5 rent corresponding to their income tier; 

6 ‘‘(iii) a rent structure in which the 

7 amount of rent that a family is required to 

8 pay is based on a percentage of family in9 come; 

10 ‘‘(iv) a rent structure in which the 

11 amount of rent that a family is required to 

12 pay is based on the provisions of section 3, 

13 as such section was in effect on the day 

14 prior to the date of enactment of this sec15 tion; or 

16 ‘‘(v) any other rent structure that in17 cludes 1 or more of the elements of the 

18 rent structures specified in this subpara19 graph. 

20 ‘‘(C) ELDERLY FAMILIES AND DISABLED

21 FAMILIES.— 

22 ‘‘(i) EXISTING TENANTS.—Notwith23 standing any other provision of this Act, 

24 elderly families and disabled families, as 

25 such terms were used in this Act on the 
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1 day prior to the date of enactment of this 

2 section, who were receiving assistance 

3 under section 3, as such section was in ef4 fect on the day prior to the date of enact5 ment of this section, shall be treated in ac6 cordance with section 3 until January 1, 

7 2009. 

8 ‘‘(ii) NEW ADMISSIONS.—Notwith9 standing any other provision of this Act, 

10 except as provided in clause (iv), elderly 

11 families and disabled families not meeting 

12 the requirements of clause (i) shall also be 

13 treated in accordance with section 3, as 

14 such section was in effect on the day prior 

15 to the date of enactment of this section, 

16 until January 1, 2009. 

17 ‘‘(iii) PUBLIC HOUSING AGENCY POLI18 CIES.—Notwithstanding any other provi19 sion of this Act, a public housing agency 

20 providing assistance under this Act shall, 

21 by January 1, 2009, have implemented a 

22 policy to ensure that the needs of elderly 

23 families and disabled families described 

24 under clauses (i) and (ii) are addressed by 

25 a policy determined by a public housing 
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1 agency, as they relate to, among other 

2 things, eligibility and rent. 

3 ‘‘(iv) EARLY IMPLEMENTATION.—A 

4 public housing agency that has imple5 mented a policy described in clause (iii) be6 fore January 1, 2009, shall administer as7 sistance for elderly families and disabled 

8 families first receiving assistance under 

9 this Act after the effective date of such 

10 policy in accordance with such policy. 

11 ‘‘(D) MINIMUM RENTAL AMOUNT.—Public 

12 housing agencies shall establish a minimum 

13 monthly rental amount to be paid by each fam14 ily. 

15 ‘‘(5) OCCUPANCY BY POLICE OFFICERS.— 

16 ‘‘(A) ELIGIBILITY REQUIREMENTS WAIV17 ER.— 

18 ‘‘(i) IN GENERAL.—Subject to sub19 paragraph (B) and notwithstanding any 

20 other provision of law, a public housing 

21 agency may, in accordance with the public 

22 housing agency plan for the agency, allow 

23 a police officer who is not otherwise eligible 

24 for residence in public housing to reside in 

25 a public housing dwelling unit. 
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1 ‘‘(ii) NUMBER AND LOCATION.—The 

2 number and location of units occupied by 

3 police officers under this paragraph and 

4 the terms and conditions of their tenancies 

5 shall be determined by the public housing 

6 agency. 

7 ‘‘(B) INCREASED SECURITY.—A public 

8 housing agency may take the actions authorized 

9 in subparagraph (A) only for the purpose of in10 creasing security for the residents of a public 

11 housing project. 

12 ‘‘(6) OCCUPANCY BY OVER-INCOME FAMILIES IN

13 CERTAIN PUBLIC HOUSING.— 

14 ‘‘(A) AUTHORITY.—Notwithstanding any 

15 other provision of law, a public housing agency 

16 that owns or operates fewer than 250 public 

17 housing dwelling units may, on a month-to18 month basis, lease a dwelling unit in a public 

19 housing project to an over-income family in ac20 cordance with this paragraph, but only if— 

21 ‘‘(i) there are no eligible families ap22 plying for housing assistance from the pub23 lic housing agency for that month; and 
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1 ‘‘(ii) the agency provides not less than 

2 a 30-day public notice of the availability of 

3 such assistance. 

4 ‘‘(B) TERMS AND CONDITIONS.—The num5 ber and location of dwelling units of a public 

6 housing agency occupied under this paragraph 

7 by over-income families, and the terms and con8 ditions of those tenancies, shall be determined 

9 by the public housing agency, except that— 

10 ‘‘(i) notwithstanding paragraph (2), 

11 rent for a unit shall be in an amount that 

12 is not less than the costs to operate the 

13 unit; 

14 ‘‘(ii) if an eligible family applies for 

15 residence after an over-income family 

16 moves in to the last available unit, the 

17 over-income family shall vacate the unit in 

18 accordance with notice of termination of 

19 tenancy provided by the agency, which 

20 shall be provided not less than 30 days be21 fore such termination; and 

22 ‘‘(iii) if a unit is vacant and there is 

23 no one on the waiting list, the public hous24 ing agency may allow an over-income fam25 ily to gain immediate occupancy in the 
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1 unit, while simultaneously providing rea2 sonable public notice and outreach with re3 gard to availability of the unit. 

4 ‘‘(7) ESCROW SAVINGS ACCOUNTS.— 

5 ‘‘(A) IN GENERAL.—A public housing 

6 agency may establish escrow savings accounts 

7 for any family residing in a public housing 

8 dwelling unit as an incentive to encourage sav9 ings. 

10 ‘‘(B) MATCHING.—Escrow savings ac11 counts may be matched with any other public 

12 or private funds. 

13 ‘‘(b) DEFINITION OF TERMS UNDER THIS SEC14 TION.—As used in this section, the following definitions 

15 shall apply: 

16 ‘‘(1) DISABLED FAMILY.—Except as otherwise 

17 provided in law, the term ‘disabled family’ means a 

18 family whose head, spouse, or sole member is a per19 son with disabilities, including 2 or more persons 

20 who are persons with disabilities living together. 

21 ‘‘(2) ELDERLY FAMILY.—Except as otherwise 

22 provided, the term ‘elderly family’ means a family 

23 whose head, spouse, or sole member is a person who 

24 is at least 62 years of age, including 2 or more per25 sons who are at least 62 years of age living together. 
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1 ‘‘(3) FAMILY.—The term ‘family’ means a per2 son or group of persons, as determined by the public 

3 housing agency, approved to reside in a unit receiv4 ing assistance under this title. 

5 ‘‘(4) INCOME.—The term ‘income’ means in6 come from all sources of each member of the house7 hold without deductions or exclusions, notwith8 standing any other provisions of law, except where 

9 a public housing agency has approved deductions or 

10 exclusions. 

11 ‘‘(5) POLICE OFFICER.—The term ‘police offi12 cer’ means any person determined by a public hous13 ing agency to be, during the period of residence of 

14 that person in public housing, employed on a full15 time basis as a duly licensed professional police offi16 cer by a Federal, State, or local government or by 

17 any agency thereof (including a public housing agen18 cy having an accredited police force). 

19 ‘‘(6) PUBLIC HOUSING AGENCY.—The term 

20 ‘public housing agency’ means— 

21 ‘‘(A) any State, county, municipality, or 

22 other governmental entity or public body (or 

23 agency or instrumentality thereof) which is au24 thorized to engage in or assist in the develop25 ment or operation of low-income housing; or 
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1 ‘‘(B) any other entity designated by the 

2 Secretary to administer assistance under this 

3 title in jurisdictions where— 

4 ‘‘(i) no public housing agency has 

5 been organized; or 

6 ‘‘(7) OVER-INCOME FAMILY.—The term ‘over7 income family’ means an individual or family that is 

8 not a low-income family. 

9 ‘‘(c) AVAILABILITY OF INCOME MATCHING INFORMA10 TION.—A public housing agency shall require any family 

11 residing in a public housing dwelling unit who receives in12 formation regarding income, earnings, wages, or unem13 ployment compensation from the Department of Housing 

14 and Urban Development pursuant to income verification 

15 procedures of the Department to disclose such informa16 tion, upon receipt of the information, to the public housing 

17 agency that owns or operates the public housing dwelling 

18 unit in which such family resides.’’. 

19 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

20 The United States Housing Act of 1937 (42 U.S.C. 1437 

21 et seq.) is amended— 

22 (1) in section 16(a) (42 U.S.C. 1437n), as 

23 amended by this Act, by striking paragraph (3) and 

24 by redesignating paragraph (4) as paragraph (3); 

25 and 
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1 (2) in section 23 (42 U.S.C. 1437u)— 

2 (A) by striking subsection (d) and insert3 ing the following: 

4 ‘‘(d) PLAN.—Each public housing agency carrying 

5 out a local program under this section shall establish a 

6 plan to offer incentives to families to encourage families 

7 to participate in the program.’’; 

8 (B) by striking subsection (e); and 

9 (C) by redesignating subsections (f) 

10 through (o) as subsections (e) through (n), re11 spectively. 

12 TITLE III—MOVING TO WORK 

13 PROGRAM 

14 SEC. 301. SHORT TITLE. 

15 This title may be cited as the ‘‘Moving to Work Pro16 gram Act of 2005’’. 

17 SEC. 302. MOVING TO WORK PROGRAM. 

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

19 1437) is amended by adding at the end the following new 

20 section: 

21 ‘‘SEC. 36. MOVING TO WORK PROGRAM. 

22 ‘‘(a) PURPOSES.—The purposes of the program es23 tablished under this title are— 

24 ‘‘(1) to give incentives to families to become 

25 self-sufficient; 
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1 ‘‘(2) to give public housing agencies and the 

2 Secretary flexibility to develop approaches for pro3 viding and administering housing assistance that 

4 achieve greater cost-effectiveness in Federal expendi5 tures; 

6 ‘‘(3) to increase housing opportunities for low7 income families; 

8 ‘‘(4) to reduce administrative burdens on public 

9 housing agencies in providing housing assistance; 

10 and 

11 ‘‘(5) to allow Federal resources to be more ef12 fectively utilized at the local level. 

13 ‘‘(b) PROGRAM AUTHORITY.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall estab15 lish the Moving to Work Program (in this title re16 ferred to as the ‘Program’), in which public housing 

17 agencies meeting the eligibility criteria under sub18 section (c) may participate. 

19 ‘‘(2) USE OF ASSISTANCE.—Under the Program 

20 a public housing agency may combine operating as21 sistance provided under section 9(e), modernization 

22 assistance provided under section 9(d), and assist23 ance provided under the Flexible Voucher Act of 

24 2005, to provide housing assistance for low-income 
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1 families, and services to facilitate the transition to 

2 work. 

3 ‘‘(3) AUTHORITY OF SECRETARY.— 

4 ‘‘(A) WAIVER.—Notwithstanding any other 

5 provision of law, except as provided in sub6 section (e), the Secretary may waive any provi7 sion of this Act with respect to assistance under 

8 the Program under this title. 

9 ‘‘(B) ADDITIONAL POWERS.—The Sec10 retary may, as the Secretary determines appro11 priate to further the purposes of this section— 

12 ‘‘(i) provide streamlined procedures 

13 including procurement procedures; and 

14 ‘‘(ii) subject to paragraph (2), may 

15 provide for immediate implementation of 

16 such procedures. 

17 ‘‘(c) ELIGIBILITY.—A public housing agency may 

18 submit an application, in such form as prescribed by the 

19 Secretary, under this title to participate in the Program 

20 if such public housing agency— 

21 ‘‘(1) participates at the time of the submission 

22 in the Moving to Work Demonstration established 

23 under section 101(e) of the Departments of Vet24 erans Affairs and Housing and Urban Development, 

25 and independent Agencies Appropriations Act, 1996 
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1 (Public Law 104–134; 110 Stat. 1321–281; 42 

2 U.S.C. 1437f note); 

3 ‘‘(2) is designated at the time of submission as 

4 a high performer under the applicable assessment 

5 systems that evaluate a public housing agency’s per6 formance, if any, with respect to its public housing 

7 and voucher programs; 

8 ‘‘(3) manages at least 500 units of public hous9 ing pursuant to contracts for annual contributions; 

10 ‘‘(4) administers at least 500 vouchers under 

11 the Flexible Voucher Act of 2005; or 

12 ‘‘(5) meets other criteria as determined by the 

13 Secretary, including the public housing agency’s— 

14 ‘‘(A) demonstrated capacity to develop and 

15 manage a successful Program; 

16 ‘‘(B) demonstrated compliance with stat17 utes and regulations applicable to Department 

18 of Housing and Urban Development programs 

19 in which the public housing agency participates 

20 or has participated; 

21 ‘‘(C) commitment of non-Federal re22 sources, including resources from the local com23 munity; and 

24 ‘‘(D) demonstrated commitment of units of 

25 local government serving the areas within which 
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1 the public housing agency administers its Pro2 gram, on removing regulatory barriers to af3 fordable housing. 

4 ‘‘(d) PROGRAM REQUIREMENTS.—A public housing 

5 agency that is administering a Program pursuant to this 

6 section shall, as a condition of continued participation in 

7 the Program— 

8 ‘‘(1) consult with representatives of the commu9 nity that represent a broad range of the various in10 terests that are affected by the Program; 

11 ‘‘(2) target, for purposes of the Program, not 

12 fewer than 90 percent of families authorized in the 

13 Program under this section to receive assistance, 

14 who have gross incomes that do not exceed 60 per15 cent of the median income for the area, as deter16 mined by the Secretary, with adjustments for small17 er or larger families; 

18 ‘‘(3) establish a reasonable rent policy, in ac19 cordance with section 3A, which is designed to en20 courage employment and self-sufficiency by partici21 pating families; 

22 ‘‘(4) assure that housing assisted under the 

23 Program meets housing standards established or ap24 proved by the Secretary; and 
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1 ‘‘(5) provide such additional information as de2 termined by the Secretary. 

3 ‘‘(e) APPLICABILITY OF SECTION 18 PROVISIONS.—

4 Section 18 shall continue to apply to public housing not5 withstanding any use of the housing under the Program. 

6 ‘‘(f) EFFECT ON SECTION 8, OPERATING SUBSIDIES, 

7 AND COMPREHENSIVE GRANT PROGRAM ALLOCATIONS.—

8 The amount of assistance received under section 8, section 

9 9, or the Flexible Voucher Act of 2005, by a public hous10 ing agency participating in the Program shall, subject to 

11 appropriations, not be affected by its participation in the 

12 Program. 

13 ‘‘(g) EFFECT ON CURRENT PARTICIPANTS IN MOV14 ING TO WORK DEMONSTRATION.—Subject to such proce15 dures and requirements as the Secretary may establish— 

16 ‘‘(1) a public housing agency participating in 

17 the Moving to Work Demonstration referred to in 

18 subsection (c)(1) may opt out of the demonstration 

19 and the requirements governing the demonstration, 

20 and continue to operate its demonstration as part of 

21 the Program in accordance with the requirements of 

22 this section; or 

23 ‘‘(2) a public housing agency that will terminate 

24 its participation in the Moving to Work Demonstra25 tion referred to in subsection (c)(1) in 2005 or 2006 
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1 may renew and extend its participation in the dem2 onstration for an additional 3 years, and may apply 

3 for participation in the Program at the end of the 

4 3-year period. 

5 ‘‘(h) EVALUATION OF PERFORMANCE.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

7 public housing agency’s performance in the Moving 

8 to Work Demonstration referred to in subsection 

9 (c)(1) and the Program under this section shall be 

10 assessed under the applicable assessment systems 

11 that evaluate a public housing agency’s performance 

12 with respect to its public housing and voucher pro13 grams, including section 6(j), for a period not to ex14 tend beyond January 1, 2008, or under such other 

15 assessment systems as may be designed by the Sec16 retary to evaluate the Program. 

17 ‘‘(2) PERFORMANCE STANDARDS.— 

18 ‘‘(A) ISSUANCE OF RULES.—The Secretary 

19 shall, for the purposes of designing and imple20 menting performance standards for public hous21 ing agencies participating in the Program under 

22 this section, issue a proposed rule and a final 

23 rule implementing performance standards under 

24 this section. 
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1 ‘‘(B) TIMING.—The final rule required 

2 under subparagraph (A) shall be issued not 

3 later than 24 months after the date of enact4 ment of this title. 

5 ‘‘(C) STANDARDS.—Performance stand6 ards issued by the Secretary under subpara7 graph (A) may include standards for— 

8 ‘‘(i) moving assisted low-income fami9 lies to economic self-sufficiency; 

10 ‘‘(ii) reducing the per-family cost of 

11 providing housing assistance; 

12 ‘‘(iii) expanding housing choices for 

13 low-income families; 

14 ‘‘(iv) improving Program manage15 ment; 

16 ‘‘(v) increasing the number of home17 ownership opportunities for low-income 

18 families; and 

19 ‘‘(vi) any other performance goals 

20 that they Secretary may establish. 

21 ‘‘(i) RECORDKEEPING, REPORTS, AND AUDITS.— 

22 ‘‘(1) RECORDKEEPING.—Each public housing 

23 agency participating in the Program shall keep such 

24 records as the Secretary may prescribe as reasonably 

25 necessary to disclose the amounts and the disposi-
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1 tion of amounts under the Program, to ensure com2 pliance with the requirements of this section, and to 

3 measure performance. 

4 ‘‘(2) REPORTS.—Each such agency shall submit 

5 to the Secretary a report, or series of reports, in a 

6 form and at a time specified by the Secretary. 

7 ‘‘(3) ACCESS TO DOCUMENTS BY THE SEC8 RETARY.—The Secretary shall have access for the 

9 purpose of audit and examination to any books, doc10 uments, papers, and records that are pertinent to 

11 assistance in connection with, and the requirements 

12 of, this section. 

13 ‘‘(4) ACCESS TO DOCUMENTS BY THE COMP14 TROLLER GENERAL.—The Comptroller General of 

15 the United States, or any of the duly authorized rep16 resentatives of the Comptroller General, shall have 

17 access for the purpose of audit and examination to 

18 any books, documents, papers, and records that are 

19 pertinent to assistance in connection with, and the 

20 requirements of, this section.’’.

Æ