I 

111TH CONGRESS 

1ST SESSION H. R. 3045 

To reform the housing choice voucher program under section 8 of the United 

States Housing Act of 1937. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2009 

Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mr. BACA, Mr. 

COHEN, and Mrs. BIGGERT) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To reform the housing choice voucher program under section 

8 of the United States Housing Act of 1937. 

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 AND TABLE OF CONTENTS. 

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

5 ‘‘Section 8 Voucher Reform Act of 2009’’. 

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

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Inspection of dwelling units. 

Sec. 3. Rent reform and income reviews. 

Sec. 4. Eligibility for assistance based on assets and income. 

Sec. 5. Targeting assistance to low-income working families. 

Sec. 6. Voucher renewal funding. 


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Sec. 7. Administrative fees. 

Sec. 8. Homeownership. 

Sec. 9. PHA reporting of rent payments to credit reporting agencies. 

Sec. 10. Performance assessments. 

Sec. 11. PHA project-based assistance. 

Sec. 12. Rent burdens. 

Sec. 13. Establishment of fair market rent. 

Sec. 14. Screening of applicants. 

Sec. 15. Enhanced vouchers. 

Sec. 16. Demonstration program waiver authority. 

Sec. 17. Authorization of appropriations. 

Sec. 18. Agency authority for utility payments in certain circumstances. 

Sec. 19. Project-based preservation vouchers. 

Sec. 20. Effect of foreclosure on section 8 tenancies. 

Sec. 21. Study to identify obstacles to using vouchers in federally subsidized 

housing projects. 

Sec. 22. Interagency Council on Homelessness. 

Sec. 23. Housing innovation program. 

Sec. 24. Effective date. 

1 SEC. 2. INSPECTION OF DWELLING UNITS. 

2 Section 8(o)(8) of the United States Housing Act of 

3 1937 (42 U.S.C. 1437f(o)(8)) is amended— 

4 (1) by striking subparagraph (A) and inserting 

5 the following new subparagraph: 

6 ‘‘(A) INITIAL INSPECTION.— 

7 ‘‘(i) IN GENERAL.—For each dwelling 

8 unit for which a housing assistance pay9 ment contract is established under this 

10 subsection, the public housing agency (or 

11 other entity pursuant to paragraph (11)) 

12 shall inspect the unit before any assistance 

13 payment is made to determine whether the 

14 dwelling unit meets the housing quality 

15 standards under subparagraph (B), except 


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1 as provided in clause (ii) or (iii) of this 

2 subparagraph. 

3 ‘‘(ii) CORRECTION OF NON-LIFE

4 THREATENING CONDITIONS.—In the case 

5 of any dwelling unit that is determined, 

6 pursuant to an inspection under clause (i), 

7 not to meet the housing quality standards 

8 under subparagraph (B), assistance pay9 ments may be made for the unit notwith10 standing subparagraph (C) if failure to 

11 meet such standards is a result only of 

12 non-life threatening conditions. A public 

13 housing agency making assistance pay14 ments pursuant to this clause for a dwell15 ing unit shall, 30 days after the beginning 

16 of the period for which such payments are 

17 made, suspend any assistance payments 

18 for the unit if any deficiency resulting in 

19 noncompliance with the housing quality 

20 standards has not been corrected by such 

21 time, and may not resume such payments 

22 until each such deficiency has been cor23 rected. 

24 ‘‘(iii) USE OF ALTERNATIVE INSPEC25 TION METHOD FOR INTERIM PERIOD.—In 


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1 the case of any property that within the 

2 previous 12 months has met the require3 ments of an inspection that qualifies as an 

4 alternative inspection method pursuant to 

5 subparagraph (E), a public housing agency 

6 may authorize occupancy before the inspec7 tion under clause (i) has been completed, 

8 and may make assistance payments retro9 active to the beginning of the lease term 

10 after the unit has been determined pursu11 ant to an inspection under clause (i) to 

12 meet the housing quality standards under 

13 subparagraph (B).’’; 

14 (2) by redesignating subparagraph (E) as sub15 paragraph (H); and 

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

17 the following new subparagraphs: 

18 ‘‘(D) BIENNIAL INSPECTIONS.— 

19 ‘‘(i) REQUIREMENT.—Each public 

20 housing agency providing assistance under 

21 this subsection (or other entity, as pro22 vided in paragraph (11)) shall, for each as23 sisted dwelling unit, make inspections not 

24 less often than biennially during the term 

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1 tract for the unit to determine whether the 

2 unit is maintained in accordance with the 

3 requirements under subparagraph (A). 

4 ‘‘(ii) USE OF ALTERNATIVE INSPEC5 TION METHOD.—The requirement under 

6 clause (i) may be complied with by use of 

7 inspections that qualify as an alternative 

8 inspection method pursuant to subpara9 graph (E). 

10 ‘‘(iii) RECORDS.—The agency (or 

11 other entity) shall retain the records of the 

12 inspection for a reasonable time and shall 

13 make the records available upon request to 

14 the Secretary, the Inspector General for 

15 the Department of Housing and Urban 

16 Development, and any auditor conducting 

17 an audit under section 5(h). 

18 ‘‘(E) ALTERNATIVE INSPECTION METH19 OD.—An inspection of a property shall qualify 

20 as an alternative inspection method for pur21 poses of this subparagraph if— 

22 ‘‘(i) the inspection was conducted pur23 suant to requirements under a Federal, 

24 State, or local housing assistance program 

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1 ships program under title II of the Cran2 ston-Gonzalez National Affordable Housing 

3 Act (42 U.S.C. 12721 et seq.) and the low4 income housing tax credit program under 

5 section 42 of the Internal Revenue Code of 

6 1986); and 

7 ‘‘(ii) pursuant to such inspection, the 

8 property was determined to meet the 

9 standards or requirements regarding hous10 ing quality or safety applicable to units as11 sisted under such program, and, if a non12 Federal standard was used, the public 

13 housing agency has certified to the Sec14 retary that such standards or requirements 

15 provide the same protection to occupants 

16 of dwelling units meeting such standards 

17 or requirements as, or greater protection 

18 than, the housing quality standards under 

19 subparagraph (B). 

20 ‘‘(F) INTERIM INSPECTIONS.—Upon notifi21 cation to the public housing agency, by a family 

22 on whose behalf tenant-based rental assistance 

23 is provided under this subsection or by a gov24 ernment official, that the dwelling unit for 

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1 ply with the housing quality standards under 

2 subparagraph (B), the agency shall inspect the 

3 dwelling unit— 

4 ‘‘(i) in the case of any condition that 

5 is life-threatening, within 24 hours after 

6 receipt of such notice; and 

7 ‘‘(ii) in the case of any condition that 

8 is not life-threatening, within 15 days after 

9 receipt of such notice. 

10 ‘‘(G) ENFORCEMENT OF HOUSING QUALITY

11 STANDARDS.— 

12 ‘‘(i) DETERMINATION OF NONCOMPLI13 ANCE.—A dwelling unit that is covered by 

14 a housing assistance payments contract 

15 under this subsection shall be considered, 

16 for purposes of subparagraphs (D) and 

17 (F), to be in noncompliance with the hous18 ing quality standards under subparagraph 

19 (B) if— 

20 ‘‘(I) the public housing agency or 

21 an inspector authorized by the State 

22 or unit of local government deter23 mines upon inspection of the unit that 

24 the unit fails to comply with such 

25 standards; 


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1 ‘‘(II) the agency or inspector no2 tifies the owner of the unit in writing 

3 of such failure to comply; and 

4 ‘‘(III) the failure to comply is not 

5 corrected— 

6 ‘‘(aa) in the case of any 

7 such failure that is a result of 

8 life-threatening conditions, within 

9 24 hours after such notice has 

10 been provided; and 

11 ‘‘(bb) in the case of any 

12 such failure that is a result of 

13 non-life threatening conditions, 

14 within 30 days after such notice 

15 has been provided or such other 

16 reasonable longer period as the 

17 public housing agency may estab18 lish. 

19 ‘‘(ii) WITHHOLDING OF ASSISTANCE

20 AMOUNTS DURING CORRECTION.—The 

21 public housing agency may withhold assist22 ance amounts under this subsection with 

23 respect to a dwelling unit that does not 

24 comply with housing quality standards 

25 under subparagraph (B) as determined 


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1 pursuant to an inspection conducted under 

2 subparagraph (D) or (F). If the unit is 

3 brought into compliance with such housing 

4 quality standards during the periods re5 ferred to in clause (i)(III), the public hous6 ing agency shall recommence assistance 

7 payments and may use any amounts with8 held during the correction period to make 

9 assistance payments relating to the period 

10 during which payments were withheld. 

11 ‘‘(iii) ABATEMENT OF ASSISTANCE

12 AMOUNTS.—The public housing agency 

13 shall abate all of the assistance amounts 

14 under this subsection with respect to a 

15 dwelling unit that is determined, pursuant 

16 to subparagraph (G)(i), to be in non17 compliance with housing quality standards 

18 under subparagraph (B). Upon completion 

19 of repairs by the public housing agency or 

20 the owner sufficient so that the dwelling 

21 unit complies with such housing quality 

22 standards, the agency shall recommence 

23 payments under the housing assistance 

24 payments contract to the owner of the 

25 dwelling unit. 


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1 ‘‘(iv) USE OF ABATED ASSISTANCE TO

2 PAY FOR REPAIRS.— 

3 ‘‘(I) AUTHORITY.—The public 

4 housing agency may use such amounts 

5 abated to make repairs to the dwelling 

6 unit or to contract to have repairs 

7 made, except that a contract to make 

8 repairs may not be entered into with 

9 the inspector for the dwelling unit re10 ferred to in clause (i)(I). 

11 ‘‘(II) ABATED FUNDS.—For pur12 poses of this clause, abated amounts 

13 may include an amounts withheld dur14 ing the correction period described in 

15 clause (ii) of this subparagraph with 

16 respect to a dwelling unit that is sub17 sequently determined under clause (i) 

18 to be in noncompliance with housing 

19 quality standards. 

20 ‘‘(III) LIMITATION OF LIABILITY

21 OF PUBLIC HOUSING AGENCIES.—A 

22 public housing agency that uses its 

23 authority under this clause shall not, 

24 if the agency accomplishes the work 

25 through a contractor that is licensed, 


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1 bonded, and insured in amounts and 

2 with coverage as required by the Sec3 retary, be liable for any injury or 

4 damages that may result to persons or 

5 to any property owned by the tenant 

6 or owner. 

7 ‘‘(v) NOTIFICATION.—If a public 

8 housing agency providing assistance under 

9 this subsection abates rental assistance 

10 payments pursuant to clause (iii) with re11 spect to a dwelling unit, the agency shall, 

12 upon commencement of such abatement— 

13 ‘‘(I) notify the tenant and the 

14 owner of the dwelling unit that— 

15 ‘‘(aa) such abatement has 

16 commenced; and 

17 ‘‘(bb) if the dwelling unit is 

18 not brought into compliance with 

19 housing quality standards within 

20 60 days after the effective date of 

21 the determination of noncompli22 ance under clause (i) or such rea23 sonable longer period as the 

24 agency may establish, the tenant 

25 will have to move; and 


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1 ‘‘(II) issue the tenant the nec2 essary forms to allow the tenant to 

3 move to another dwelling unit and 

4 transfer the rental assistance to that 

5 unit. 

6 ‘‘(vi) PROTECTION OF TENANTS.—An 

7 owner of a dwelling unit may not terminate 

8 the tenancy of any tenant because of the 

9 withholding or abatement of assistance 

10 pursuant to this subparagraph. During the 

11 period that assistance is abated pursuant 

12 to this subparagraph, the tenant may ter13 minate the tenancy by notifying the owner. 

14 ‘‘(vii) TERMINATION OF LEASE OR AS15 SISTANCE PAYMENTS CONTRACT.—If as16 sistance amounts under this section for a 

17 dwelling unit are abated pursuant to clause 

18 (iii) and the owner does not correct the 

19 noncompliance within 60 days after the ef20 fective date of the determination of non21 compliance under clause (i), or such other 

22 reasonable longer period as the public 

23 housing agency may establish, and the 

24 agency does not use its authority under 

25 clause (iv), the agency shall terminate the 


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1 housing assistance payments contract for 

2 the dwelling unit. 

3 ‘‘(viii) RELOCATION.— 

4 ‘‘(I) LEASE OF NEW UNIT.—The 

5 agency shall provide the family resid6 ing in such a dwelling unit a period of 

7 90 days or such longer period as is 

8 necessary to lease a new unit, begin9 ning upon termination of the contract, 

10 to lease a new residence with tenant11 based rental assistance under this sec12 tion. 

13 ‘‘(II) AVAILABILITY OF PUBLIC

14 HOUSING UNITS.—If the family is un15 able to lease such a new residence 

16 during such period, the public housing 

17 agency shall, at the option of the fam18 ily, provide such family a preference 

19 for occupancy in a dwelling unit of 

20 public housing owned or operated by 

21 the agency that first becomes avail22 able for occupancy after the expiration 

23 of such period. 

24 ‘‘(III) ASSISTANCE IN FINDING

25 UNIT.—The public housing agency 


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1 shall provide reasonable assistance to 

2 the family in finding a new residence, 

3 including use of up to two months of 

4 any assistance amounts abated pursu5 ant to clause (iii) for costs directly as6 sociated with relocation of the family 

7 to a new residence, which may include 

8 moving expenses and security depos9 its. The agency may require that a 

10 family receiving assistance for a secu11 rity deposit shall remit, to the extent 

12 of such assistance, the amount of any 

13 security deposit refunds made by the 

14 owner of the dwelling unit for which 

15 the lease was terminated. 

16 ‘‘(ix) TENANT-CAUSED DAMAGES.—If 

17 a public housing agency determines that 

18 any damage to a dwelling unit that results 

19 in a failure of the dwelling unit to comply 

20 with housing quality standards under sub21 paragraph (B), other than any damage re22 sulting from ordinary use, was caused by 

23 the tenant, any member of the tenant’s 

24 household, or any guest or other person 

25 under the tenant’s control, the agency may 


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1 waive the applicability of this subpara2 graph, except that this clause shall not ex3 onerate a tenant from any liability other4 wise existing under applicable law for dam5 ages to the premises caused by such ten6 ant. 

7 ‘‘(x) APPLICABILITY.—This subpara8 graph shall apply to any dwelling unit for 

9 which a housing assistance payments con10 tract is entered into or renewed after the 

11 date of the effectiveness of the regulations 

12 implementing this subparagraph.’’. 

13 SEC. 3. RENT REFORM AND INCOME REVIEWS. 

14 (a) RENT FOR PUBLIC HOUSING AND SECTION 8 

15 PROGRAMS.—Section 3 of the United States Housing Act 

16 of 1937 (42 U.S.C. 1437a) is amended— 

17 (1) in subsection (a)— 

18 (A) in paragraph (1) by inserting ‘‘LOW19 INCOME OCCUPANCY REQUIREMENT AND RENT20 AL PAYMENTS.—’’ after ‘‘(1)’’; 

21 (B) in paragraph (1)— 

22 (i) by striking ‘‘paragraph (2)’’ and 

23 inserting ‘‘paragraphs (2) and (3)’’; and 

24 (ii) by striking ‘‘paragraph (3)’’ and 

25 inserting ‘‘paragraph (4)’’; 


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1 (C) in paragraph (2)(A)(i), by striking 

2 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 

3 (4)’’; 

4 (D) by redesignating paragraphs (3), (4), 

5 and (5) as paragraphs (4), (5), and (6), respec6 tively; 

7 (E) by inserting after paragraph (2) the 

8 following new paragraph: 

9 ‘‘(3) PHA AUTHORITY TO ESTABLISH ALTER10 NATIVE RENTS.— 

11 ‘‘(A) RENT FLEXIBILITY FOR PUBLIC

12 HOUSING.—Subject to the requirements under 

13 subparagraph (B), a public housing agency may 

14 establish for public housing— 

15 ‘‘(i) a tenant rent structure in 

16 which— 

17 ‘‘(I) the public housing agency 

18 establishes, based on the rental value 

19 of the unit, as determined by the pub20 lic housing agency, a ceiling rent for 

21 each dwelling unit that it owns and 

22 operates; and 

23 ‘‘(II) such ceiling rent is adjusted 

24 periodically on the basis of an infla25 tion index or a recalculation of the 


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1 rental value of the unit (which may be 

2 recalculated by unit or by building); 

3 ‘‘(ii) an income-tiered tenant rent 

4 structure in which the amount of rent a 

5 family shall pay is set and distributed on 

6 the basis of broad tiers of income and such 

7 tiers and rents are adjusted on the basis of 

8 an annual cost index except that families 

9 shall not be offered a rent lower than the 

10 rent corresponding to their income tier; or 

11 ‘‘(iii) a tenant rent structure in which 

12 the amount of rent a family shall pay is 

13 based on a percentage of family income, 

14 except that lower percentages may apply 

15 only with respect to earned income; such a 

16 rent structure may provide for an amount 

17 of rent based on a calculation of earned in18 come that provides for disregard of a high19 er percentage or higher dollar amount, or 

20 both, than provided for in paragraph 

21 (8)(B). 

22 ‘‘(B) LIMITATION.—Notwithstanding the 

23 authority provided under subparagraph (A), the 

24 amount paid for rent (including the amount al25 lowed for tenant-paid utilities) by any family 


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1 for a dwelling unit in public housing may not 

2 exceed the amount determined under subsection 

3 (a)(1) of this section. The Secretary shall issue 

4 regulations and establish procedures for public 

5 housing agency calculations and documentation 

6 as are necessary to ensure compliance with this 

7 subparagraph. 

8 ‘‘(C) ELDERLY FAMILIES AND DISABLED

9 FAMILIES.—Notwithstanding any other provi10 sion of this Act, this paragraph shall not apply 

11 to elderly families and disabled families.’’; and 

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

13 paragraphs: 

14 ‘‘(7) REVIEWS OF FAMILY INCOME.— 

15 ‘‘(A) FREQUENCY.—Reviews of family in16 come for purposes of this section shall be 

17 made— 

18 ‘‘(i) in the case of all families, upon 

19 the initial provision of housing assistance 

20 for the family; 

21 ‘‘(ii) annually thereafter, except as 

22 provided in subparagraph (B)(i); 

23 ‘‘(iii) upon the request of the family, 

24 at any time the income or deductions 

25 (under subsection (b)(5)) of the family 


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1 change by an amount that is estimated to 

2 result in a decrease of $1,200 (or such 

3 lower amount as the public housing agency 

4 or owner may, at the option of the agency 

5 or owner, establish) or more in annual ad6 justed income; and 

7 ‘‘(iv) at any time the income or deduc8 tions (under subsection (b)(5)) of the fam9 ily change by an amount that is estimated 

10 to result in an increase of $1,200 or more 

11 in annual adjusted income, except that any 

12 increase in the earned income of a family 

13 shall not be considered for purposes of this 

14 clause (except that earned income may be 

15 considered if the increase corresponds to 

16 previous decreases under clause (iii)), ex17 cept that a public housing agency or owner 

18 may elect not to conduct such review in the 

19 last three months of a certification period. 

20 ‘‘(B) FIXED-INCOME FAMILIES.— 

21 ‘‘(i) SELF CERTIFICATION AND 3-YEAR

22 REVIEW.—In the case of any family de23 scribed in clause (ii), after the initial re24 view of the family’s income pursuant to 

25 subparagraph (A)(i), the public housing 


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1 agency or owner shall not be required to 

2 conduct a review of the family’s income 

3 pursuant to subparagraph (A)(ii) for any 

4 year for which such family certifies, in ac5 cordance with such requirements as the 

6 Secretary shall establish, that the income 

7 of the family meets the requirements of 

8 clause (ii) of this subparagraph and that 

9 the sources of such income have not 

10 changed since the previous year, except 

11 that the public housing agency or owner 

12 shall conduct a review of each such fam13 ily’s income not less than once every 3 

14 years. 

15 ‘‘(ii) ELIGIBLE FAMILIES.—A family 

16 described in this clause is a family who has 

17 an income, as of the most recent review 

18 pursuant to subparagraph (A) or clause (i) 

19 of this subparagraph, of which 90 percent 

20 or more consists of fixed income, as such 

21 term is defined in clause (iii). 

22 ‘‘(iii) FIXED INCOME.—For purposes 

23 of this subparagraph, the term ‘fixed in24 come’ includes income from— 


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1 ‘‘(I) the supplemental security in2 come program under title XVI of the 

3 Social Security Act, including supple4 mentary payments pursuant to an 

5 agreement for Federal administration 

6 under section 1616(a) of the Social 

7 Security Act and payments pursuant 

8 to an agreement entered into under 

9 section 212(b) of Public Law 93–66; 

10 ‘‘(II) Social Security payments; 

11 ‘‘(III) Federal, State, local and 

12 private pension plans; and 

13 ‘‘(IV) other periodic payments re14 ceived from annuities, insurance poli15 cies, retirement funds, disability or 

16 death benefits, and other similar types 

17 of periodic receipts that are of sub18 stantially the same amounts from year 

19 to year. 

20 ‘‘(C) IN GENERAL.—Reviews of family in21 come for purposes of this section shall be sub22 ject to the provisions of section 904 of the 

23 Stewart B. McKinney Homeless Assistance 

24 Amendments Act of 1988. 

25 ‘‘(8) CALCULATION OF INCOME.— 


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1 ‘‘(A) USE OF CURRENT YEAR INCOME.—In 

2 determining family income for initial occupancy 

3 or provision of housing assistance pursuant to 

4 clause (i) of paragraph (7)(A) or pursuant to 

5 reviews pursuant to clause (iii) or (iv) of such 

6 paragraph, a public housing agency or owner 

7 shall use the income of the family as estimated 

8 by the agency or owner for the upcoming year. 

9 ‘‘(B) USE OF PRIOR YEAR INCOME.—In 

10 determining family income for annual reviews 

11 pursuant to paragraph (7)(A)(ii), a public hous12 ing agency or owner shall, except as otherwise 

13 provided in this paragraph, use the income of 

14 the family as determined by the agency or 

15 owner for the preceding year, taking into con16 sideration any redetermination of income during 

17 such prior year pursuant to clause (iii) or (iv) 

18 of paragraph (7)(A). 

19 ‘‘(C) INFLATIONARY ADJUSTMENT FOR

20 FIXED INCOME FAMILIES.— 

21 ‘‘(i) IN GENERAL.—In any year in 

22 which a public housing agency or owner 

23 does not conduct a review of income for 

24 any family described in clause (ii) of para25 graph (7)(B) pursuant to the authority 


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1 under clause (i) of such paragraph to 

2 waive such a review, such family’s prior 

3 year’s income determination shall, subject 

4 to clauses (ii) and (iii), be adjusted by ap5 plying an inflationary factor as the Sec6 retary shall, by regulation, establish. 

7 ‘‘(ii) EXEMPTION FROM ADJUST8 MENT.—A public housing agency or owner 

9 may exempt from an adjustment pursuant 

10 to clause (i) any income source for which 

11 income does not increase from year to 

12 year. 

13 ‘‘(iii) APPLICABILITY OF INFLA14 TIONARY FACTOR.—The inflationary factor 

15 adjustment referred to in clause (i) shall 

16 not be made with respect to the first year 

17 after the year in which housing is occupied 

18 or housing assistance is initially provided 

19 for a family. 

20 ‘‘(D) OTHER INCOME.—In determining the 

21 income for any family based on the prior year’s 

22 income, with respect to prior year calculations 

23 of income not subject to subparagraph (B), a 

24 public housing agency or owner may make other 


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1 adjustments as it considers appropriate to re2 flect current income. 

3 ‘‘(E) SAFE HARBOR.—A public housing 

4 agency or owner may, to the extent such infor5 mation is available to the public housing agency 

6 or owner, determine the family’s income prior 

7 to the application of any deductions based on 

8 timely income determinations made for pur9 poses of other means-tested Federal public as10 sistance programs (including the program for 

11 block grants to States for temporary assistance 

12 for needy families under part A of title IV of 

13 the Social Security Act, a program for Medicaid 

14 assistance under a State plan approved under 

15 title XIX of the Social Security Act, and the 

16 food stamp program as defined in section 3(h) 

17 of the Food Stamp Act of 1977). The Secretary 

18 shall, in consultation with other appropriate 

19 Federal agencies, develop procedures to enable 

20 public housing agencies and owners to have ac21 cess to such income determinations made by 

22 other means-tested Federal programs that the 

23 Secretary determines to have comparable reli24 ability. Exchanges of such information shall be 

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1 tections provided under section 904 of the 

2 Stewart B. McKinney Homeless Assistance Act 

3 Amendments of 1988 (42 U.S.C. 3544) with re4 spect to information obtained under the require5 ments of section 303(i) of the Social Security 

6 Act (42 U.S.C. 503(i)). 

7 ‘‘(F) PHA AND OWNER COMPLIANCE.—A 

8 public housing agency or owner may not be con9 sidered to fail to comply with this paragraph or 

10 paragraph (7) due solely to any de minimus er11 rors made by the agency or owner in calculating 

12 family incomes.’’; 

13 (2) by striking subsections (d) and (e); and 

14 (3) by redesignating subsection (f) as sub15 section (d). 

16 (b) INCOME.—Section 3(b) of the United States 

17 Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended— 

18 (1) by striking paragraph (4) and inserting the 

19 following new paragraph: 

20 ‘‘(4) INCOME.—The term ‘income’ means, with 

21 respect to a family, income received from all sources 

22 by each member of the household who is 18 years 

23 of age or older or is the head of household or spouse 

24 of the head of the household, plus unearned income 

25 by or on behalf of each dependent who is less than 


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1 18 years of age, as determined in accordance with 

2 criteria prescribed by the Secretary, in consultation 

3 with the Secretary of Agriculture, subject to the fol4 lowing requirements: 

5 ‘‘(A) INCLUDED AMOUNTS.—Such term in6 cludes recurring gifts and receipts, actual in7 come from assets, and profit or loss from a 

8 business. 

9 ‘‘(B) EXCLUDED AMOUNTS.—Such term 

10 does not include— 

11 ‘‘(i) any imputed return on assets; 

12 ‘‘(ii) any amounts that would be eligi13 ble for exclusion under section 1613(a)(7) 

14 of the Social Security Act (42 U.S.C. 

15 1382b(a)(7)); and 

16 ‘‘(iii) deferred disability benefits from 

17 the Department of Veterans Affairs that 

18 are received in a lump sum amount or in 

19 prospective monthly amounts. 

20 ‘‘(C) EARNED INCOME OF STUDENTS.— 

21 Such term does not include earned income of 

22 any dependent earned during any period that 

23 such dependent is attending school on a full24 time basis or any grant-in-aid or scholarship 


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1 amounts related to such attendance used for 

2 the cost of tuition or books. 

3 ‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 

4 Income shall be determined without regard to 

5 any amounts in or from, or any benefits from, 

6 any Coverdell education savings account under 

7 section 530 of the Internal Revenue Code of 

8 1986 or any qualified tuition program under 

9 section 529 of such Code. 

10 ‘‘(E) OTHER EXCLUSIONS.—Such term 

11 shall not include other exclusions from income 

12 as are established by the Secretary or any 

13 amount required by Federal law to be excluded 

14 from consideration as income. The Secretary 

15 may not require a public housing agency or 

16 owner to maintain records of any amounts ex17 cluded from income pursuant to this subpara18 graph.’’; and 

19 (2) by striking paragraph (5) and inserting the 

20 following new paragraph: 

21 ‘‘(5) ADJUSTED INCOME.—The term ‘adjusted 

22 income’ means, with respect to a family, the amount 

23 (as determined by the public housing agency or 

24 owner) of the income of the members of the family 


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1 residing in a dwelling unit or the persons on a lease, 

2 after any deductions from income as follows: 

3 ‘‘(A) EARNED INCOME DISREGARD.—An 

4 amount equal to 10 percent of the lesser of— 

5 ‘‘(i) the family’s earned income; or 

6 ‘‘(ii) $9,000, except that such amount 

7 shall be adjusted annually by applying to 

8 such amount (as it may have been pre9 viously adjusted) an inflationary factor as 

10 the Secretary shall, by regulation, establish 

11 and except that for purposes of adjusted 

12 income determinations each year such 

13 amount shall be established by rounding 

14 the amount calculated down to the next 

15 lowest multiple of $1,000. 

16 The deduction under this subparagraph shall 

17 not be considered in determining adjusted in18 come for the purposes of section 16 (relating to 

19 eligibility for assisted housing and income mix). 

20 ‘‘(B) ELDERLY AND DISABLED FAMI21 LIES.—$725 in the case of any family that is 

22 an elderly family or a disabled family. 

23 ‘‘(C) DEPENDENTS.—In the case of any 

24 family that includes a member or members 

25 who— 


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1 ‘‘(i) are less than 18 years of age or 

2 attending school or vocational training on 

3 a full-time basis; or 

4 ‘‘(ii) is a person with disabilities who 

5 is 18 years of age or older and resides in 

6 the household, 

7 $500 for each such member. 

8 ‘‘(D) CHILD CARE.—The amount, if any, 

9 that exceeds 10 percent of annual family in10 come that is used to pay for unreimbursed child 

11 care expenses, which shall include child care for 

12 preschool-age children, for before- and after13 care for children in school, and for other child 

14 care necessary to enable a member of the family 

15 to be employed or further his or her education. 

16 ‘‘(E) HEALTH AND MEDICAL EXPENSES.— 

17 The amount, if any, by which 10 percent of an18 nual family income is exceeded by the sum of— 

19 ‘‘(i) in the case of any elderly or dis20 abled family, any unreimbursed health and 

21 medical care expenses; and 

22 ‘‘(ii) any unreimbursed reasonable at23 tendant care and auxiliary apparatus ex24 penses for each handicapped member of 

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1 able any member of such family to be em2 ployed. 

3 ‘‘(F) PERMISSIVE DEDUCTIONS.—Such ad4 ditional deductions as a public housing agency 

5 may, at its discretion, establish, except that the 

6 Secretary shall establish procedures to ensure 

7 that such deductions do not materially increase 

8 Federal expenditures. 

9 The Secretary shall annually calculate the amounts 

10 of the deductions under subparagraphs (B) and (C), 

11 as such amounts may have been previously cal12 culated, by applying an inflationary factor as the 

13 Secretary shall, by regulation, establish, except that 

14 the actual deduction determined for each year shall 

15 be established by rounding such amount to the next 

16 lowest multiple of $25.’’. 

17 (c) HOUSING CHOICE VOUCHER PROGRAM.—Para18 graph (5) of section 8(o) of the United States Housing 

19 Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended— 

20 (1) in the paragraph heading, by striking ‘‘AN21 NUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 

22 (2) in subparagraph (A)— 

23 (A) by striking ‘‘the provisions of’’ and in24 serting ‘‘paragraphs (7) and (8) of section 3(a) 

25 and to’’; and 


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1 (B) by striking ‘‘and shall be conducted 

2 upon the initial provision of housing assistance 

3 for the family and thereafter not less than an4 nually’’; and 

5 (3) in subparagraph (B), by striking the second 

6 sentence. 

7 (d) ENHANCED VOUCHER PROGRAM.—Section 

8 8(t)(1)(D) of the United States Housing Act of 1937 (42 

9 U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ 

10 each place such term appears and inserting ‘‘annual ad11 justed income’’. 

12 (e) PROJECT-BASED HOUSING.—Paragraph (3) of 

13 section 8(c) of the United States Housing Act of 1937 

14 (42 U.S.C. 1437f(c)(3)) is amended by striking the last 

15 sentence. 

16 (f) IMPACT ON PUBLIC HOUSING REVENUES.— 

17 (1) ADJUSTMENTS TO OPERATING FORMULA.— 

18 If the Secretary of Housing and Urban Development 

19 determines that the application of the amendments 

20 made by this section results in a material and dis21 proportionate reduction in the rental income of cer22 tain public housing agencies during the first year in 

23 which the amendments made by this section are im24 plemented, the Secretary may make appropriate adVerDate Nov 24 2008 01:18 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3045.IH H3045

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1 justments in the formula income for such year of 

2 those agencies experiencing such a reduction. 

3 (2) HUD REPORTS ON REVENUE AND COST IM4 PACT.—In each of the first two years after the first 

5 year in which the amendments made by this section 

6 are implemented, the Secretary of Housing and 

7 Urban Development shall submit a report to Con8 gress identifying and calculating the impact of 

9 changes made by the amendments made by this sec10 tion and sections 4 and 5 of this Act on the revenues 

11 and costs of operating public housing units, the 

12 voucher program for rental assistance under section 

13 8 of the United States Housing Act of 1937, and 

14 the program under such section 8 for project-based 

15 rental assistance. If such report identifies a material 

16 reduction in the net income of public housing agen17 cies nationwide or a material increase in the costs of 

18 funding the voucher program or the project-based 

19 assistance program, the Secretary may include in 

20 such report recommendations for legislative changes 

21 to reduce or eliminate such a reduction. 

22 (g) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect during the first calendar year 

24 after regulations or notice has been adopted to implement 

25 such amendments, except that the Secretary may delay 


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1 such effective date by one year upon a determination that 

2 such delay is necessary for public housing agencies and 

3 owners to make the necessary changes to comply with such 

4 amendments. 

5 SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS 

6 AND INCOME. 

7 (a) ASSETS.—Section 16 of the United States Hous8 ing Act of 1937 (42 U.S.C. 1437n) is amended by insert9 ing after subsection (d) the following new subsection: 

10 ‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS11 SETS.— 

12 ‘‘(1) LIMITATION ON ASSETS.—Subject to para13 graph (3) and notwithstanding any other provision 

14 of this Act, a dwelling unit assisted under this Act 

15 may not be rented and assistance under this Act 

16 may not be provided, either initially or at each recer17 tification of family income, to any family— 

18 ‘‘(A) whose net family assets exceed 

19 $100,000, as such amount is adjusted annually 

20 by applying an inflationary factor as the Sec21 retary considers appropriate; or 

22 ‘‘(B) who has a present ownership interest 

23 in, a legal right to reside in, and the effective 

24 legal authority to sell, real property that is suit25 able for occupancy as a residence, except that 


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1 the prohibition under this subparagraph shall 

2 not apply to— 

3 ‘‘(i) any property for which the family 

4 is receiving assistance under this Act; 

5 ‘‘(ii) any person that is a victim of do6 mestic violence; or 

7 ‘‘(iii) any family that is making a 

8 good faith effort to sell such property. 

9 ‘‘(2) NET FAMILY ASSETS.— 

10 ‘‘(A) IN GENERAL.—For purposes of this 

11 subsection, the term ‘net family assets’ means, 

12 for all members of the household, the net cash 

13 value of all assets after deducting reasonable 

14 costs that would be incurred in disposing of real 

15 property, savings, stocks, bonds, and other 

16 forms of capital investment. Such term does not 

17 include interests in Indian trust land, equity ac18 counts in homeownership programs of the De19 partment of Housing and Urban Development, 

20 or Family Self Sufficiency accounts. 

21 ‘‘(B) EXCLUSIONS.—Such term does not 

22 include— 

23 ‘‘(i) the value of personal property, ex24 cept for items of personal property of sig25 nificant value, as the Secretary may estabVerDate Nov 24 2008 01:18 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H3045.IH H3045

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1 lish or the public housing agency may de2 termine; 

3 ‘‘(ii) the value of any retirement ac4 count; 

5 ‘‘(iii) real property for which the fam6 ily does not have the effective legal author7 ity necessary to sell such property; 

8 ‘‘(iv) any amounts recovered in any 

9 civil action or settlement based on a claim 

10 of malpractice, negligence, or other breach 

11 of duty owed to a member of the family 

12 and arising out of law, that resulted in a 

13 member of the family being disabled; 

14 ‘‘(v) the value of any Coverdell edu15 cation savings account under section 530 

16 of the Internal Revenue Code of 1986 or 

17 any qualified tuition program under sec18 tion 529 of such Code; and 

19 ‘‘(vi) such other exclusions as the Sec20 retary may establish. 

21 ‘‘(C) TRUST FUNDS.—In cases in which a 

22 trust fund has been established and the trust is 

23 not revocable by, or under the control of, any 

24 member of the family or household, the value of 

25 the trust fund shall not be considered an asset 


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1 of a family if the fund continues to be held in 

2 trust. Any income distributed from the trust 

3 fund shall be considered income for purposes of 

4 section 3(b) and any calculations of annual 

5 family income, except in the case of medical ex6 penses for a minor. 

7 ‘‘(3) SELF-CERTIFICATION.— 

8 ‘‘(A) NET FAMILY ASSETS.—A public 

9 housing agency or owner may determine the net 

10 assets of a family, for purposes of this section, 

11 based on a certification by the family— 

12 ‘‘(i) that the net assets of such family 

13 do not exceed $50,000; or 

14 ‘‘(ii) of the amounts reported by the 

15 family at the time the agency or owner re16 views the family’s income. 

17 ‘‘(B) NO CURRENT REAL PROPERTY OWN18 ERSHIP.—A public housing agency or owner 

19 may determine compliance with paragraph 

20 (1)(B) based on a certification by the family 

21 that such family does not have any current 

22 ownership interest in any real property at the 

23 time the agency or owner reviews the family’s 

24 income. 


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1 ‘‘(C) STANDARDIZED FORMS.—The Sec2 retary may develop standardized forms for the 

3 certifications referred to in subparagraphs (A) 

4 and (B). 

5 ‘‘(4) COMPLIANCE FOR PUBLIC HOUSING

6 DWELLING UNITS.—When recertifying family income 

7 with respect to families residing in public housing 

8 dwelling units, a public housing agency may, in the 

9 discretion of the agency and only pursuant to a pol10 icy that is set forth in the public housing agency 

11 plan under section 5A for the agency, choose not to 

12 enforce the limitation under paragraph (1). 

13 ‘‘(5) ELDERLY AND DISABLED FAMILIES.— 

14 When recertifying the income of an elderly or dis15 abled family residing in a dwelling unit assisted 

16 under this Act, a public housing agency or owner 

17 may choose not to enforce the limitation under para18 graph (1) or may establish exceptions to such limita19 tion based on eligibility criteria, but only pursuant 

20 to a policy that is set forth in the public housing 

21 agency plan under section 5A for the agency or 

22 under a policy adopted by the owner. Eligibility cri23 teria for establishing exceptions may provide for sep24 arate treatment for elderly and disabled families and 

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1 come, the ability of the family to find suitable alter2 native housing, and whether supportive services are 

3 being provided. 

4 ‘‘(6) AUTHORITY TO DELAY EVICTIONS.—In the 

5 case of a family residing in a dwelling unit assisted 

6 under this Act who does not comply with the limita7 tion under paragraph (1), the public housing agency 

8 or project owner may delay eviction or termination 

9 of the family based on such noncompliance for a pe10 riod of not more than 6 months.’’. 

11 (b) INCOME.—The United States Housing Act of 

12 1937 is amended— 

13 (1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), 

14 by striking the first sentence and inserting the fol15 lowing: ‘‘Dwelling units assisted under this Act may 

16 be rented, and assistance under this Act may be pro17 vided, whether initially or at time of recertification, 

18 only to families who are low-income families at the 

19 time such initial or continued assistance, respec20 tively, is provided, except that families residing in 

21 dwelling units as of the date of the enactment of the 

22 Section 8 Voucher Reform Act of 2009 that, under 

23 agreements in effect on such date of enactment, may 

24 have incomes up to 95 percent of local area median 

25 income shall continue to be eligible for assistance at 


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1 recertification as long as they continue to comply 

2 with such income restrictions. When recertifying 

3 family income with respect to families residing in 

4 public housing dwelling units, a public housing agen5 cy may, in the discretion of the agency and only pur6 suant to a policy that is set forth in the public hous7 ing agency plan under section 5A for the agency, 

8 choose not to enforce the prohibition under the pre9 ceding sentence. When recertifying family income 

10 with respect to families residing in dwelling units for 

11 which project-based assistance is provided, a project 

12 owner may, in the owner’s discretion and only pur13 suant to a policy adopted by such owner, choose not 

14 to enforce such prohibition. In the case of a family 

15 residing in a dwelling unit assisted under this Act 

16 who does not meet the requirements under the first 

17 sentence of this paragraph or the requirements 

18 under section 8(o)(4), the public housing agency or 

19 project owner may delay eviction or termination of 

20 the family based on such noncompliance for a period 

21 of not more than 6 months.’’; 

22 (2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), 

23 by striking the matter preceding subparagraph (A) 

24 and inserting the following: 


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1 ‘‘(4) ELIGIBLE FAMILIES.—Assistance under 

2 this subsection may be provided, whether initially or 

3 at each recertification, only pursuant to subsection 

4 (t) to a family eligible for assistance under such sub5 section or to a family who at the time of such initial 

6 or continued assistance, respectively, is a low-income 

7 family that is—’’; and 

8 (3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), 

9 by striking ‘‘at the time it initially occupied such 

10 dwelling unit’’ and inserting ‘‘according to the re11 strictions under section 3(a)(1)’’. 

12 SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORK13 ING FAMILIES. 

14 (a) VOUCHERS.—Section 16(b)(1) of the United 

15 States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is 

16 amended— 

17 (1) by inserting after ‘‘do not exceed’’ the fol18 lowing: ‘‘the higher of (A) the poverty line (as such 

19 term is defined in section 673 of the Omnibus Budg20 et Reconciliation Act of 1981 (42 U.S.C. 9902), in21 cluding any revision required by such section) appli22 cable to a family of the size involved, or (B)’’; and 

23 (2) by inserting before the period at the end the 

24 following: ‘‘; and except that clause (A) of this sen25 tence shall not apply in the case of public housing 


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1 agencies located in Puerto Rico or any other terri2 tory or possession of the United States’’. 

3 (b) PUBLIC HOUSING.—Section 16(a)(2)(A) of the 

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

5 1437n(a)(2)(A)) is amended— 

6 (1) by inserting after ‘‘do not exceed’’ the fol7 lowing: ‘‘the higher of (i) the poverty line (as such 

8 term is defined in section 673 of the Omnibus Budg9 et Reconciliation Act of 1981 (42 U.S.C. 9902), in10 cluding any revision required by such section) appli11 cable to a family of the size involved, or (ii)’’; and 

12 (2) by inserting before the period at the end the 

13 following: ‘‘; and except that clause (i) of this sen14 tence shall not apply in the case of projects located 

15 in Puerto Rico or any other territory or possession 

16 of the United States’’. 

17 (c) PROJECT-BASED SECTION 8 ASSISTANCE.—Sec18 tion 16(c)(3) of the United States Housing Act of 1937 

19 (42 U.S.C. 1437n(c)(3)) is amended— 

20 (1) by inserting after ‘‘do not exceed’’ the fol21 lowing: ‘‘the higher of (A) the poverty line (as such 

22 term is defined in section 673 of the Omnibus Budg23 et Reconciliation Act of 1981 (42 U.S.C. 9902), in24 cluding any revision required by such section) appli25 cable to a family of the size involved, or (B)’’; and 


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1 (2) by inserting before the period at the end the 

2 following: ‘‘; and except that clause (A) of this sen3 tence shall not apply in the case of projects located 

4 in Puerto Rico or any other territory or possession 

5 of the United States’’. 

6 SEC. 6. VOUCHER RENEWAL FUNDING. 

7 (a) IN GENERAL.—Section 8 of the United States 

8 Housing Act of 1937 (42 U.S.C. 1437f) is amended by 

9 striking subsection (dd) and inserting the following new 

10 subsection: 

11 ‘‘(dd) TENANT-BASED VOUCHERS.— 

12 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

13 There are authorized to be appropriated, for each of 

14 fiscal years 2010 through 2014, such sums as may 

15 be necessary for tenant-based assistance under sub16 section (o) for the following purposes: 

17 ‘‘(A) To renew all expiring annual con18 tributions contracts for tenant-based rental as19 sistance. 

20 ‘‘(B) To provide tenant-based rental assist21 ance for— 

22 ‘‘(i) conversion of section 23 projects 

23 to assistance under this section; 

24 ‘‘(ii) the family unification program 

25 under subsection (x) of this section; 


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1 ‘‘(iii) relocation of witnesses in con2 nection with efforts to combat crime in 

3 public and assisted housing pursuant to a 

4 request from a law enforcement or pros5 ecution agency; 

6 ‘‘(iv) enhanced vouchers authorized 

7 under subsection (t) of this section; 

8 ‘‘(v) relocation or replacement in con9 nection with the HOPE VI program under 

10 section 24; 

11 ‘‘(vi) demolition or disposition of pub12 lic housing units pursuant to section 18 of 

13 the United States Housing Act of 1937 

14 (42 U.S.C. 1437p); 

15 ‘‘(vii) mandatory conversions of public 

16 housing to vouchers, pursuant to section 

17 33 of the United States Housing Act of 

18 1937, respectively (42 U.S.C. 1437z–5); 

19 ‘‘(viii) voluntary conversions of public 

20 housing to vouchers, pursuant to section 

21 22 of the United States Housing Act of 

22 1937, respectively (42 U.S.C. 1437t); 

23 ‘‘(ix) vouchers necessary to comply 

24 with a consent decree or court order; 


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1 ‘‘(x) tenant protection vouchers in 

2 connection with dwelling units that cease 

3 to receive project-based assistance under 

4 subsection (b), (c), (d), (e), or (v) of this 

5 section; 

6 ‘‘(xi) relocation and replacement 

7 vouchers in connection with public housing 

8 units that are demolished or disposed of 

9 pursuant to eminent domain, pursuant to a 

10 homeownership program, or in connection 

11 with a mixed finance development method 

12 under section 35 or otherwise; 

13 ‘‘(xii) vouchers used for the preserva14 tion of public housing units not included in 

15 the operating formula under section 

16 9(e)(2) of the United States Housing Act 

17 of 1937 (42 U.S.C. 1437g(e)(2)); 

18 ‘‘(xiii) emergency voucher assistance 

19 for the protection of victims of domestic vi20 olence, dating violence, sexual assault, or 

21 stalking; 

22 ‘‘(xiv) tenant protection vouchers in 

23 connection with the foreclosure or disposi24 tion of multifamily housing subject to a 


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1 mortgage insured and subsidized under the 

2 National Housing Act; and 

3 ‘‘(xv) tenant protection assistance, in4 cluding replacement and relocation assist5 ance. 

6 Subject only to the availability of sufficient 

7 amounts provided in appropriation Acts, the 

8 Secretary shall provide tenant-based rental as9 sistance in connection with all dwelling units 

10 that cease to be available as assisted housing as 

11 a result of clauses (i), (iv), (v), (vi), (vii), (x), 

12 (xi), and (xiv). 

13 ‘‘(2) ALLOCATION OF RENEWAL FUNDING

14 AMONG PUBLIC HOUSING AGENCIES.— 

15 ‘‘(A) From amounts appropriated for each 

16 year pursuant to paragraph (1)(A), the Sec17 retary shall provide renewal funding for each 

18 public housing agency— 

19 ‘‘(i) based on leasing and cost data 

20 from the preceding calendar year, as ad21 justed by an annual adjustment factor to 

22 be established by the Secretary, which shall 

23 be established using the smallest geo24 graphical areas for which data on changes 

25 in rental costs are annually available; 


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1 ‘‘(ii) by making any adjustments nec2 essary to provide for the first-time renewal 

3 of vouchers funded under paragraph 

4 (1)(B) and of any incremental vouchers 

5 funded in previous years; 

6 ‘‘(iii) by making any adjustments nec7 essary for full year funding of vouchers 

8 moved into and out of the jurisdiction of 

9 the public housing agency in the prior cal10 endar year pursuant to portability proce11 dures under subsection (r)(2); and 

12 ‘‘(iv) by making such other adjust13 ments as the Secretary considers appro14 priate, including adjustments necessary to 

15 address changes in voucher utilization 

16 rates and voucher costs related to natural 

17 and other major disasters. 

18 ‘‘(B) LEASING AND COST DATA.—For pur19 poses of subparagraph (A)(i), leasing and cost 

20 data shall be calculated annually by using the 

21 average for the preceding calendar year. Such 

22 leasing and cost data shall be adjusted to in23 clude vouchers that were set aside under a com24 mitment to provide project-based assistance 

25 under subsection (o)(13) and to exclude 


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1 amounts funded through advances under para2 graph (3). Such leasing and cost data shall not 

3 include funds not appropriated for tenant-based 

4 assistance under section 8(o), unless the agen5 cy’s funding was prorated in the prior year and 

6 the agency used other funds to maintain vouch7 ers in use. 

8 ‘‘(C) OVERLEASING.—For the purpose of 

9 determining allocations under subsection (A)(i), 

10 the leasing rate calculated for the prior cal11 endar year may exceed an agency’s authorized 

12 voucher level, except that such calculation shall 

13 not utilize a leasing rate in excess of 103 per14 cent of the leasing rate in the year preceding 

15 such prior year (after making appropriate ad16 justments for incremental and new enhanced 

17 vouchers) which results from the use of accu18 mulated amounts, as referred to in the last sen19 tence of paragraph (4)(A). 

20 ‘‘(D) MOVING TO WORK; HOUSING INNOVA21 TION PROGRAM.—Notwithstanding subpara22 graphs (A) and (B), each public housing agency 

23 participating in any year in the moving to work 

24 program or the housing innovation program 

25 under section 37 of this Act shall be funded 


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1 pursuant to its agreement under such program 

2 and shall be subject to any pro rata adjustment 

3 made under subparagraph (F)(i). 

4 ‘‘(E) UNREIMBURSED PORTABILITY

5 COSTS.—The Secretary may reimburse public 

6 housing agencies for increased costs related to 

7 portability incurred during the prior year that 

8 were not reimbursed pursuant to paragraph 

9 (4)(B)(i). 

10 ‘‘(F) PRO RATA ALLOCATION.— 

11 ‘‘(i) INSUFFICIENT FUNDS.—To the 

12 extent that amounts made available for a 

13 fiscal year are not sufficient to provide 

14 each public housing agency with the full al15 location for the agency determined pursu16 ant to subparagraphs (A) and (D), the 

17 Secretary shall reduce such allocation for 

18 each agency on a pro rata basis, except 

19 that renewal funding of enhanced vouchers 

20 under section 8(t) shall not be subject to 

21 such proration. 

22 ‘‘(ii) EXCESS FUNDS.—To the extent 

23 that amounts made available for a fiscal 

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1 cation for the agency determined pursuant 

2 to subparagraphs (A) and (D), such excess 

3 amounts shall be used for the purposes 

4 specified in paragraph (4)(B). 

5 ‘‘(G) PROMPT FUNDING ALLOCATION.— 

6 The Secretary shall allocate all funds under this 

7 subsection for each year before the latter of (i) 

8 February 15, or (ii) the expiration of the 45- 

9 day period beginning upon the enactment of the 

10 appropriations Act funding such renewals. 

11 ‘‘(3) ADVANCES.— 

12 ‘‘(A) AUTHORITY.—During the last 3 

13 months of each calendar year, the Secretary 

14 shall provide amounts out of any appropriations 

15 made pursuant to paragraph (1) for the fiscal 

16 year beginning on October 1 of that calendar 

17 year to any public housing agency, at the re18 quest of the agency, in an amount up to two 

19 percent of the allocation for the agency for such 

20 calendar year, subject to subparagraph (C). 

21 ‘‘(B) USE.—Amounts advanced under sub22 paragraph (A) may be used to pay for addi23 tional voucher costs, including costs related to 

24 temporary overleasing. 


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1 ‘‘(C) USE OF PRIOR YEAR AMOUNTS.— 

2 During the last 3 months of a calendar year, if 

3 amounts previously provided to a public housing 

4 agency for tenant-based assistance for such 

5 year or for previous years remain unobligated 

6 and available to the agency— 

7 ‘‘(i) the agency shall exhaust such 

8 amounts to cover any additional voucher 

9 costs under subparagraph (B) before 

10 amounts advanced under subparagraph (A) 

11 may be so used; and 

12 ‘‘(ii) the amount that may be ad13 vanced under subparagraph (A) to the 

14 agency shall be reduced by an amount 

15 equal to the total of such previously pro16 vided and unobligated amounts. 

17 ‘‘(D) REPAYMENT.—Amounts advanced 

18 under subparagraph (A) in a calendar year 

19 shall be repaid to the Secretary in the subse20 quent calendar year by offsetting the amounts 

21 made available for such agency for such subse22 quent calendar year pursuant to allocation 

23 under paragraph (2) by an amount equal to the 

24 amount so advanced to the agency. 

25 ‘‘(4) OFFSET.— 


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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 offset, from amounts provided under the annual 

3 contributions contract for a public housing 

4 agency for a calendar year, all accumulated 

5 amounts allocated under paragraph (2) and 

6 from previous years that are unused by the 

7 agency at the end of each calendar year, except 

8 for an amount not less than 6 percent of such 

9 amount allocated to the agency pursuant to 

10 paragraph (2) for the preceding calendar year. 

11 Notwithstanding any other provision of law, 

12 each public housing agency may retain all 

13 amounts not offset under this subparagraph, 

14 and may use such amounts for all authorized 

15 purposes. 

16 ‘‘(B) REALLOCATION.—Not later than the 

17 latter of April 1 of each calendar year or 75 

18 days after the enactment of an appropriations 

19 Act providing funding for voucher renewal 

20 costs, the Secretary shall, from amounts avail21 able pursuant to paragraph (2)(E) and from 

22 any other available amounts appropriated for 

23 such purpose— 

24 ‘‘(i) set aside and subsequently make 

25 available such amounts as the Secretary 


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1 considers likely to be needed, when com2 bined with funds from a central fund or 

3 any other source of funds appropriated or 

4 made available for such purpose, to reim5 burse public housing agencies for increased 

6 costs related to portability and family self7 sufficiency activities pursuant to section 

8 23(h) during such year; and 

9 ‘‘(ii) reallocate all remaining amounts 

10 among public housing agencies, with pri11 ority given based on the extent to which an 

12 agency has utilized the amount allocated 

13 under paragraph (2) for the agency to 

14 serve eligible families and the relative need 

15 for additional voucher assistance for use 

16 only to increase voucher leasing rates.’’. 

17 (b) PORTABILITY.—The Secretary of Housing and 

18 Urban Development shall, not later than the expiration 

19 of the 6-month period beginning on the date of the enact20 ment of this Act, issue a proposed rule for comment to 

21 modify the regulations governing the responsibilities of 

22 public housing agencies in cases in which families assisted 

23 with tenant-based assistance under section 8 of the United 

24 States Housing Act of 1937 exercise their right to move 

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1 tions regarding portability procedures (24 C.F.R. 

2 982.355), to eliminate, or minimize to the greatest extent 

3 feasible consistent with available funding, billing between 

4 agencies and administrative barriers to families’ choices 

5 of where to reside, without undermining the ability of pub6 lic housing agencies to serve their waiting lists. The Sec7 retary shall finalize regulations modifying such portability 

8 procedures in accordance with this subsection not later 

9 than the expiration of the 12-month period beginning 

10 upon the date of the enactment of this Act. 

11 (c) VOUCHERS FOR PERSONS WITH DISABILITIES.— 

12 The Secretary of Housing and Urban Development shall 

13 develop and issue, to public housing agencies that have 

14 received voucher assistance under section 8(o) for non-el15 derly disabled families pursuant to appropriations Acts for 

16 fiscal year 1997 and fiscal years thereafter, guidance to 

17 ensure that, to the maximum extent practicable, such 

18 vouchers continue to be provided upon turnover to quali19 fied non-elderly disabled families. 

20 SEC. 7. ADMINISTRATIVE FEES. 

21 (a) IN GENERAL.—Section 8(q) of the United States 

22 Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended— 

23 (1) in paragraph (1)— 

24 (A) by striking subparagraphs (B) and (C) 

25 and inserting the following new subparagraphs: 


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1 ‘‘(B) CALCULATION.—The fee under this 

2 subsection shall— 

3 ‘‘(i) be payable to each public housing 

4 agency for each month for which a dwell5 ing unit is covered by an assistance con6 tract; 

7 ‘‘(ii) be based on a per-unit fee, which 

8 shall be based on the per-unit fee payable 

9 to the agency in fiscal year 2003 and up10 dated for each subsequent year as specified 

11 in subsection (iv), or on such formula 

12 which the Secretary may, by regulation, es13 tablish using a per-unit fee structure which 

14 shall provide for the payment of the full 

15 cost of administering vouchers, and which 

16 may include performance incentives con17 sistent with subsection (o)(21); 

18 ‘‘(iii) include an amount for the cost 

19 of issuing a voucher to new participants; 

20 ‘‘(iv) be updated each year using an 

21 index of changes in wage and benefit data 

22 or other objectively measurable data that 

23 reflect the costs of administering the pro24 gram for such assistance, as determined by 

25 the Secretary; and 


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1 ‘‘(v) include an amount for the cost of 

2 family self-sufficiency coordinators, as pro3 vided in section 23(h)(1). 

4 ‘‘(C) PUBLICATION.—The Secretary shall 

5 cause to be published in the Federal Register 

6 the fee rate for each geographic area.’’; and 

7 (B) by striking subparagraph (E) and in8 serting the following new subparagraph; 

9 ‘‘(E) FEE FOR AGENCY-OWNED UNITS.— 

10 The Secretary shall establish a fee for dwelling 

11 units owned by a public housing agency that re12 flects reasonable costs of administration, which 

13 shall take into consideration the third-party in14 spection and rent determination expenses in15 curred in compliance with the requirements of 

16 subsection (o)(11).’’; and 

17 (2) in paragraph (4), by striking ‘‘1999’’ and 

18 inserting ‘‘2010’’. 

19 (b) ADMINISTRATIVE FEES FOR FAMILY SELF-SUF20 FICIENCY PROGRAM COSTS.—Subsection (h) of section 23 

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

22 1437u(h)) is amended by striking paragraph (1) and in23 serting the following new paragraph: 

24 ‘‘(1) SECTION 8 FEES.— 


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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 establish a fee under section 8(q) for the costs 

3 incurred in administering the self-sufficiency 

4 program under this section to assist families re5 ceiving voucher assistance through section 8(o). 

6 ‘‘(B) ELIGIBILITY FOR FEE.—The fee shall 

7 provide funding for family self-sufficiency coor8 dinators as follows: 

9 ‘‘(i) BASE FEE.—A public housing 

10 agency serving 25 or more participants in 

11 the family self-sufficiency program under 

12 this section shall receive a fee equal to the 

13 costs of employing one full-time family 

14 self-sufficiency coordinator. An agency 

15 serving fewer than 25 such participants 

16 shall receive a prorated fee. 

17 ‘‘(ii) ADDITIONAL FEE.—An agency 

18 that meets minimum performance stand19 ards shall receive an additional fee suffi20 cient to cover the costs of employing a sec21 ond family self-sufficiency coordinator if 

22 the agency has 75 or more participating 

23 families, and a third such coordinator if it 

24 has 125 or more participating families. 


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1 ‘‘(iii) PREVIOUSLY FUNDED AGEN2 CIES.—An agency that received funding 

3 from the Department of Housing and 

4 Urban Development for more than three 

5 such coordinators in any of fiscal years 

6 1998 through 2009 shall receive funding 

7 for the highest number of coordinators 

8 funded in a single fiscal year during that 

9 period, provided they meet applicable size 

10 and performance standards. 

11 ‘‘(iv) INITIAL YEAR.—For the first 

12 year in which a public housing agency ex13 ercises its right to develop an family self14 sufficiency program for its residents, it 

15 shall be entitled to funding to cover the 

16 costs of up to one family self-sufficiency 

17 coordinator, based on the size specified in 

18 its action plan for such program. 

19 ‘‘(v) STATE AND REGIONAL AGEN20 CIES.—For purposes of calculating the 

21 family self-sufficiency portion of the ad22 ministrative fee under this subparagraph, 

23 each administratively distinct part of a 

24 State or regional public housing agency 

25 shall be treated as a separate agency. 


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1 ‘‘(vi) DETERMINATION OF NUMBER

2 OF COORDINATORS.—In determining 

3 whether a public housing agency meets a 

4 specific threshold for funding pursuant to 

5 this paragraph, the number of participants 

6 being served by the agency in its family 

7 self-sufficiency program shall be considered 

8 to be the average number of families en9 rolled in such agency’s program during the 

10 course of the most recent fiscal year for 

11 which the Department of Housing and 

12 Urban Development has data. 

13 ‘‘(C) PRORATION.—If insufficient funds 

14 are available in any fiscal year to fund all of the 

15 coordinators authorized under this section, the 

16 first priority shall be given to funding one coor17 dinator at each agency with an existing family 

18 self-sufficiency program. The remaining funds 

19 shall be prorated based on the number of re20 maining coordinators to which each agency is 

21 entitled under this subparagraph. 

22 ‘‘(D) RECAPTURE.—Any fees allocated 

23 under this subparagraph by the Secretary in a 

24 fiscal year that have not been spent by the end 

25 of the subsequent fiscal year shall be recaptured 


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1 by the Secretary and shall be available for pro2 viding additional fees pursuant to subparagraph 

3 (B)(ii). 

4 ‘‘(E) PERFORMANCE STANDARDS.—Within 

5 six months after the date of the enactment of 

6 this paragraph, the Secretary shall publish a 

7 proposed rule specifying the performance stand8 ards applicable to funding under clauses (ii) 

9 and (iii) of subparagraph (B). Such standards 

10 shall include requirements applicable to the 

11 leveraging of in-kind services and other re12 sources to support the goals of the family self13 sufficiency program. 

14 ‘‘(F) DATA COLLECTION.—Public housing 

15 agencies receiving funding under this paragraph 

16 shall collect and report to the Secretary, in such 

17 manner as the Secretary shall require, informa18 tion on the performance of their family self-suf19 ficiency programs. 

20 ‘‘(G) EVALUATION.—The Secretary shall 

21 conduct a formal and scientific evaluation of 

22 the effectiveness of well-run family self-suffi23 ciency programs, comparing outcomes of fami24 lies participating in such programs with fami25 lies who are not, using random assignment of 


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1 participants to the extent practicable. Not later 

2 than the expiration of the 4-year period begin3 ning upon the enactment of this paragraph, the 

4 Secretary shall submit an interim evaluation re5 port to the Congress. Not later than the expira6 tion of the 8-year period beginning upon such 

7 enactment, the Secretary shall submit a final 

8 evaluation report to the Congress. There is au9 thorized to be appropriated $10,000,000 to 

10 carry out the evaluation under this subpara11 graph. 

12 ‘‘(H) INCENTIVES FOR INNOVATION AND

13 HIGH PERFORMANCE.—The Secretary may re14 serve up to 10 percent of the amounts made 

15 available for administrative fees under this 

16 paragraph to provide support to or reward fam17 ily self-sufficiency programs that are particu18 larly innovative or highly successful in achieving 

19 the goals of the program.’’. 

20 (c) REPEAL.—Section 202 of the Departments of 

21 Veterans Affairs and Housing and Urban Development, 

22 and Independent Agencies Appropriations Act, 1997 (42 

23 U.S.C. 1437f note; Public Law 104–204; 110 Stat. 2893) 

24 is hereby repealed. 


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1 SEC. 8. HOMEOWNERSHIP. 

2 (a) SECTION 8 HOMEOWNERSHIP DOWNPAYMENT

3 PROGRAM.—Section 8(y)(7) of the United States Housing 

4 Act of 1937 (42 U.S.C. 1437f(y)(7)) is amended by strik5 ing subparagraphs (A) and (B) and inserting the following 

6 new subparagraphs: 

7 ‘‘(A) IN GENERAL.—Subject to the provi8 sions of this paragraph, in the case of a family 

9 on whose behalf rental assistance under section 

10 8(o) has been provided for a period of not less 

11 than 12 months prior to the date of receipt of 

12 downpayment assistance under this paragraph, 

13 a public housing agency may, in lieu of pro14 viding monthly assistance payments under this 

15 subsection on behalf of a family eligible for 

16 such assistance and at the discretion of the 

17 agency, provide a downpayment assistance 

18 grant in accordance with subparagraph (B). 

19 ‘‘(B) GRANT REQUIREMENTS.—A down20 payment assistance grant under this para21 graph— 

22 ‘‘(i) shall be used by the family only 

23 as a contribution toward the downpayment 

24 and reasonable and customary closing 

25 costs required in connection with the pur26 chase of a home; 


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1 ‘‘(ii) shall be in the form of a single 

2 one-time grant; and 

3 ‘‘(iii) may not exceed $10,000. 

4 ‘‘(C) NO EFFECT ON OBTAINING OUTSIDE

5 SOURCES FOR DOWNPAYMENT ASSISTANCE.— 

6 This Act may not be construed to prohibit a 

7 public housing agency from providing downpay8 ment assistance to families from sources other 

9 than a grant provided under this Act, or as de10 termined by the public housing agency.’’. 

11 (b) USE OF VOUCHERS FOR MANUFACTURED HOUS12 ING.—Section 8(o)(12) of the United States Housing Act 

13 of 1937 (42 U.S.C. 1437f(o)(12)) is amended— 

14 (1) in subparagraph (A), by striking the period 

15 at the end of the first sentence and all that follows 

16 through ‘‘of’’ in the second sentence and inserting 

17 ‘‘and rents’’; and 

18 (2) in subparagraph (B)— 

19 (A) in clause (i), by striking ‘‘the rent’’ 

20 and all that follows and inserting the following: 

21 ‘‘rent shall mean the sum of the monthly pay22 ments made by a family assisted under this 

23 paragraph to amortize the cost of purchasing 

24 the manufactured home, including any required 

25 insurance and property taxes, the monthly 


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1 amount allowed for tenant-paid utilities, and 

2 the monthly rent charged for the real property 

3 on which the manufactured home is located, in4 cluding monthly management and maintenance 

5 charges.’’; 

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

7 (C) in clause (iii)— 

8 (i) by inserting after the period at the 

9 end the following: ‘‘If the amount of the 

10 monthly assistance payment for a family 

11 exceeds the monthly rent charged for the 

12 real property on which the manufactured 

13 home is located, including monthly man14 agement and maintenance charges, a pub15 lic housing agency may pay the remainder 

16 to the family, lender or utility company, or 

17 may choose to make a single payment to 

18 the family for the entire monthly assist19 ance amount.’’; and 

20 (ii) by redesignating such clause as 

21 clause (ii). 

22 SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT 

23 REPORTING AGENCIES. 

24 Section 3 of the United States Housing Act of 1937 

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1 sions of this Act, is further amended by adding at the end 

2 the following new subsection: 

3 ‘‘(e) PHA REPORTING OF RENT PAYMENTS TO

4 CREDIT REPORTING AGENCIES.— 

5 ‘‘(1) AUTHORITY.—To the extent that a family 

6 receiving tenant-based housing choice vouchers 

7 under section 8 by a public housing agency agrees 

8 in writing to reporting under this subsection, the 

9 public housing agency may submit to consumer re10 porting agencies described in section 603(p) of the 

11 Fair Credit Reporting Act (15 U.S.C. 1681a) infor12 mation regarding the past rent payment history of 

13 the family with respect to the dwelling unit for 

14 which such assistance is provided. 

15 ‘‘(2) FORMAT.—The Secretary, after consulta16 tion with consumer reporting agencies referred in 

17 paragraph (1), shall establish a system and format 

18 to be used by public housing agencies for reporting 

19 of information under such paragraph that provides 

20 such information in a format and manner that is 

21 similar to other credit information submitted to such 

22 consumer reporting agencies and is usable by such 

23 agencies.’’. 


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1 SEC. 10. PERFORMANCE ASSESSMENTS. 

2 Section 8(o) of the United States Housing Act of 

3 1937 (42 U.S.C. 1437f(o)) is amended by adding at the 

4 end the following new paragraph: 

5 ‘‘(21) PERFORMANCE ASSESSMENTS.— 

6 ‘‘(A) ESTABLISHMENT.—The Secretary 

7 shall, by regulation, establish standards and 

8 procedures for assessing the performance of 

9 public housing agencies in carrying out the pro10 grams for tenant-based rental assistance under 

11 this subsection and for homeownership assist12 ance under subsection (y). 

13 ‘‘(B) CONTENTS.—The standards and pro14 cedures under this paragraph shall provide for 

15 assessment of the performance of public hous16 ing agencies in the following areas: 

17 ‘‘(i) Extent to which dwelling units 

18 comply with housing quality standards, in19 cluding compliance with inspection require20 ments. 

21 ‘‘(ii) Extent of utilization of assist22 ance amounts provided to the agency and 

23 of authorized vouchers, using appropriate 

24 adjustments for vouchers set aside to meet 

25 commitments under paragraph (13). 


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1 ‘‘(iii) Timeliness and accuracy of re2 porting by the agency to the Secretary. 

3 ‘‘(iv) Effectiveness in carrying out 

4 policies that result in deconcentration of 

5 poverty. 

6 ‘‘(v) Reasonableness of rent burdens, 

7 consistent with public housing agency re8 sponsibilities under section 8(o)(1)(E)(iii). 

9 ‘‘(vi) Accurate calculations of rent, 

10 utility allowances, and subsidy payments. 

11 ‘‘(vii) Effectiveness in carrying out 

12 family self-sufficiency activities. 

13 ‘‘(viii) Timeliness of actions related to 

14 landlord participation. 

15 ‘‘(ix) Compliance with targeting re16 quirements under section 16(b). 

17 ‘‘(x) Such other areas as the Sec18 retary considers appropriate. 

19 ‘‘(C) BIENNIAL ASSESSMENT.—Not later 

20 than 2 years after the date of enactment of this 

21 paragraph, and at least every 2 years there22 after, the Secretary, using the standards and 

23 procedures established under this paragraph, 

24 shall— 


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1 ‘‘(i) conduct an assessment of the per2 formance of each public housing agency 

3 carrying out a program referred to in sub4 paragraph (A); 

5 ‘‘(ii) make such assessment available 

6 to the public housing agency and to the 

7 public via the website of the Department of 

8 Housing and Urban Development; and 

9 ‘‘(iii) submit a report to Congress re10 garding the results of each such assess11 ment. 

12 ‘‘(D) APPLICABILITY.—When imple13 mented, the performance assessment standards 

14 and procedures under this paragraph shall 

15 supercede the Section 8 Management Assess16 ment Program of the Secretary then in effect.’’. 

17 SEC. 11. PHA PROJECT-BASED ASSISTANCE. 

18 Section 8(o)(13) of the United States Housing Act 

19 of 1937 (42 U.S.C. 1437f(o)(13)) is amended— 

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

21 the following new subparagraph: 

22 ‘‘(B) PERCENTAGE LIMITATION.— 

23 ‘‘(i) IN GENERAL.—Subject to clause 

24 (ii), not more than 25 percent of the fund25 ing available for tenant-based assistance 


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1 under this section that is administered by 

2 the agency may be attached to structures 

3 pursuant to this paragraph. 

4 ‘‘(ii) EXCEPTION.—An agency may at5 tach up to an additional 5 percent of the 

6 funding available for tenant-based assist7 ance under this section to structures pur8 suant to this paragraph for dwelling units 

9 that house individuals and families that 

10 meet the definition of homeless under sec11 tion 103 of the McKinney-Vento Homeless 

12 Assistance Act (42 U.S.C. 11302), that 

13 provide supportive housing to persons with 

14 disabilities, or that are located in areas 

15 where vouchers under this subsection are 

16 difficult to use, as specified in subpara17 graph (D)(ii)(II). The Secretary may, by 

18 regulation, establish additional categories 

19 for the exception under this clause.’’; 

20 (2) by striking subparagraph (D) and inserting 

21 the following new subparagraph: 

22 ‘‘(D) INCOME MIXING REQUIREMENT.— 

23 ‘‘(i) IN GENERAL.—Except as pro24 vided in clause (ii), not more than the 

25 greater of 25 dwelling units or 25 percent 


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1 of the dwelling units in any project may be 

2 assisted under a housing assistance pay3 ment contract for project-based assistance 

4 pursuant to this paragraph. For purposes 

5 of this subparagraph, the term ‘project’ 

6 means a single building, multiple contig7 uous buildings, or multiple buildings on 

8 contiguous parcels of land. 

9 ‘‘(ii) EXCEPTIONS.— 

10 ‘‘(I) CERTAIN HOUSING.—The 

11 limitation under clause (i) shall not 

12 apply in the case of assistance under 

13 a contract for housing consisting of 

14 single family properties, or for dwell15 ing units that are specifically made 

16 available for households comprised of 

17 elderly families, disabled families, and 

18 families receiving comprehensive sup19 portive services for special needs pop20 ulations, such as individuals who were 

21 formerly homeless. For purposes of 

22 the preceding sentence, the term ‘sin23 gle family properties’ means buildings 

24 with no more than four dwelling units. 

25 ‘‘(II) CERTAIN AREAS.— 


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1 ‘‘(aa) With respect to areas 

2 in which fewer than 75 percent 

3 of families issued vouchers be4 come participants in the pro5 gram, the public housing agency 

6 has established the payment 

7 standard at 110 percent of the 

8 fair market rent for all census 

9 tracts in the area for the pre10 vious six months, the public 

11 housing agency has requested a 

12 higher payment standard, and 

13 the public housing agency grants 

14 an automatic extension of 90 

15 days (or longer) to families with 

16 vouchers who are attempting to 

17 find housing, clause (i) shall be 

18 applied by substituting ‘40 per19 cent’ for ‘25 percent’; and 

20 ‘‘(bb) With respect to census 

21 tracts with a poverty rate of 20 

22 percent or less, clause (i) shall be 

23 applied by substituting ‘50 per24 cent’ for ‘25 percent’ and the 


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1 Secretary may, by regulation, es2 tablish additional conditions.’’; 

3 (3) in subparagraph (J)— 

4 (A) by striking the fifth and sixth sen5 tences and inserting the following: ‘‘A public 

6 housing agency may establish and utilize proce7 dures for maintaining site-based waiting lists 

8 under which applicants may apply directly at, 

9 or otherwise designate to the public housing 

10 agency, the project or projects in which they 

11 seek to reside, except that all applicants on the 

12 waiting list of an agency for assistance under 

13 this subsection shall be permitted to place their 

14 names on such separate list. All such proce15 dures shall comply with title VI of the Civil 

16 Rights Act of 1964, the Fair Housing Act, and 

17 other applicable civil rights laws. The owner or 

18 manager of a structure assisted under this 

19 paragraph shall not admit any family to a 

20 dwelling unit assisted under a contract pursu21 ant to this paragraph other than a family re22 ferred by the public housing agency from its 

23 waiting list, or a family on a site-based waiting 

24 list that complies with the requirements of this 

25 subparagraph. A public housing agency shall 


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1 disclose to each applicant all other options in 

2 the selection of a project in which to reside that 

3 are provided by the public housing agency and 

4 are available to the applicant.’’; and 

5 (B) by inserting after the third sentence 

6 the following new sentence: ‘‘Any family who re7 sides in a dwelling unit proposed to be assisted 

8 under this paragraph, or in a unit to be re9 placed by a proposed unit to be assisted under 

10 this paragraph shall be given an absolute pref11 erence for selection for placement in the pro12 posed unit, if the family is otherwise eligible for 

13 assistance under this subsection.’’; and 

14 (4) by adding at the end the following new sub15 paragraphs: 

16 ‘‘(N) STRUCTURE OWNED BY AGENCY.— 

17 Notwithstanding any other provision of law, as 

18 part of an initiative to improve, develop, or re19 place a public housing site, a public housing 

20 agency may attach assistance to an existing, 

21 newly constructed, or rehabilitated structure in 

22 which the agency has an ownership interest 

23 without following a competitive process, but 

24 only if the agency includes such initiative in its 

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1 tion 5A and the units that receive such assist2 ance will not receive assistance under section 9. 

3 The preceding sentence may not be construed 

4 to limit the ability of a public housing agency 

5 to attach assistance to structures under other 

6 applicable law. 

7 ‘‘(O) LEASES AND TENANCY.—Assistance 

8 provided under this paragraph shall be subject 

9 to the provisions of paragraph (7), except that 

10 subparagraph (A) of such paragraph shall not 

11 apply. Notwithstanding any other provision of 

12 law, for the term of the contract under this 

13 paragraph, the owner may terminate tenancy 

14 only for serious or repeated violations of the 

15 terms and conditions of the lease or for viola16 tion of applicable law. 

17 ‘‘(P) ALLOWABLE TRANSFERS.—A public 

18 housing agency may transfer a portion of its 

19 vouchers and related budget authority to a pub20 lic housing agency that administers a program 

21 under this subsection in another jurisdiction lo22 cated in the same or a contiguous metropolitan 

23 area or county. 

24 ‘‘(Q) RENT FLEXIBILITY.—If a dwelling 

25 unit assisted under this paragraph also receives 


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1 funding from either of the funds established 

2 under section 1138 or 1339 of the Federal 

3 Housing Enterprises Financial Safety and 

4 Soundness Act of 1992 (12 U.S.C. 4568, 

5 4569), the rent for the unit, if agreed upon by 

6 both the public housing agency and the owner, 

7 may be established at an amount that is less 

8 than would otherwise be permitted under para9 graphs (1)(B) or (10)(A) of this section.’’. 

10 SEC. 12. RENT BURDENS. 

11 (a) REVIEWS.—Section 8(o)(1) of the United States 

12 Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended 

13 by striking subparagraph (E) and inserting the following 

14 new subparagraph: 

15 ‘‘(E) REVIEWS.— 

16 ‘‘(i) RENT BURDENS.—The Secretary 

17 shall monitor rent burdens and submit a 

18 report to the Congress annually on the 

19 percentage of families assisted under this 

20 subsection, occupying dwelling units of any 

21 size, that pay more than 30 percent of 

22 their adjusted incomes for rent and such 

23 percentage that pay more than 40 percent 

24 of their adjusted incomes for rent. Using 

25 information regularly reported by public 


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1 housing agencies, the Secretary shall pro2 vide public housing agencies, on an annual 

3 basis, a report with the information de4 scribed in the first sentence of this clause, 

5 and may require a public housing agency 

6 to modify a payment standard that results 

7 in a significant percentage of families as8 sisted under this subsection, occupying 

9 dwelling units of any size, paying more 

10 than 30 percent of their adjusted incomes 

11 for rent. In implementing the requirements 

12 of this clause, the Secretary shall separate 

13 out calculations and consideration of fami14 lies whose rent contributions are calculated 

15 under section 3(a)(3) and clauses (ii) and 

16 (iii) of paragraph (2)(A) of this subsection. 

17 ‘‘(ii) CONCENTRATION OF POVERTY.— 

18 The Secretary shall submit a report to the 

19 Congress annually on the degree to which 

20 families assisted under this subsection in 

21 each metropolitan area are clustered in 

22 lower rent, higher poverty areas, which 

23 shall include reporting of data by race and 

24 ethnicity, and how, and the extent to 

25 which, greater geographic distribution of 


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1 such assisted families could be achieved, 

2 including by increasing payment standards 

3 for particular communities within such 

4 metropolitan areas. 

5 ‘‘(iii) PUBLIC HOUSING AGENCY RE6 SPONSIBILITIES.—Each public housing 

7 agency shall make publicly available the in8 formation on rent burdens provided by the 

9 Secretary pursuant to clause (i), and, for 

10 agencies located in metropolitan areas, the 

11 information on concentration provided by 

12 the Secretary pursuant to clause (ii). If a 

13 public housing agency has a high degree of 

14 concentration of poverty, as determined 

15 under a standard to be developed by the 

16 Secretary in accordance with clause (ii), or 

17 if the percentage of families paying more 

18 than 40 percent of their adjusted net in19 come exceeds a percentage level, to be es20 tablished by the Secretary, the public hous21 ing agency shall adjust the payment stand22 ard to eliminate excessive rent burdens 

23 within a reasonable time period or explain 

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1 quest of a public housing agency to set a 

2 payment standard up to 120 percent of the 

3 fair market rent to eliminate excessive rent 

4 burdens in accordance with the preceding 

5 sentence, except on the basis that an agen6 cy has not demonstrated that its request 

7 meets these criteria. If a request of a pub8 lic housing agency has not been denied or 

9 approved with 45 days after the request is 

10 made, the request shall be considered to 

11 have been approved.’’. 

12 (b) PUBLIC HOUSING AGENCY PLAN.—Section 

13 5A(d)(4) of the United States Housing Act of 1937 (42 

14 U.S.C. 1437c–1(d)(4)) is amended by inserting before the 

15 period at the end the following: ‘‘, including the report 

16 with respect to the agency furnished by the Secretary pur17 suant to section 8(o)(1)(E) concerning rent burdens and, 

18 if applicable, geographic concentration of voucher holders, 

19 any changes in rent or other policies the public housing 

20 agency is making to address excessive rent burdens or con21 centration, and if the public housing agency is not adjust22 ing its payment standard, its reasons for not doing so’’. 

23 (c) RENT BURDENS FOR PERSONS WITH DISABIL24 ITIES.—Subparagraph (D) of section 8(o)(1) is amended 

25 by inserting before the period at the end the following: 


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1 ‘‘, except that a public housing agency may establish a 

2 payment standard of not more than 120 percent of the 

3 fair market rent where necessary as a reasonable accom4 modation for a person with a disability, without approval 

5 of the Secretary. A public housing agency may seek ap6 proval of the Secretary to use a payment standard greater 

7 than 120 percent of the fair market rent as a reasonable 

8 accommodation for a person with a disability’’. 

9 SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT. 

10 (a) IN GENERAL.—Paragraph (1) of section 8(c) of 

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

12 1437f(c)(1)) is amended— 

13 (1) by inserting ‘‘(A)’’ after the paragraph des14 ignation; 

15 (2) by striking the seventh, eighth, and ninth 

16 sentences; and 

17 (3) by adding at the end the following: 

18 ‘‘(B)(i) The Secretary shall define market areas for 

19 purposes of this paragraph in areas sufficiently distinct 

20 as is necessary— 

21 ‘‘(I) to establish fair market rentals that accu22 rately reflect typical rental costs of units suitable for 

23 occupancy by persons assisted under this section in 

24 communities in metropolitan and non-metropolitan 

25 areas (including low poverty areas); and 


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1 ‘‘(II) to avoid concentration of voucher holders; 

2 while taking into consideration the factors specified 

3 in clause (ii). 

4 ‘‘(ii) The factors specified in this clause are— 

5 ‘‘(I) the efficient administration of the program 

6 by public housing agencies and the administrative 

7 costs of the Secretary of establishing additional 

8 areas; 

9 ‘‘(II) the availability of data for a sufficient 

10 number of dwelling units to establish accurate fair 

11 market rentals; and 

12 ‘‘(III) the ability of public housing agencies to 

13 adjust the payment standard to more accurately re14 flect typical rental costs. 

15 ‘‘(iii) The Secretary shall establish procedures to per16 mit a public housing agency to request the establishment 

17 of a separate market areas for either all or contiguous 

18 parts of the areas under the jurisdiction of such agency. 

19 The Secretary shall consider and approve any such request 

20 using the criteria established in clause (i) and the consid21 erations under clause (ii). 

22 ‘‘(iv) The Secretary shall not reduce the fair market 

23 rental in a market area as a result of a change in the 

24 percentile of the distribution of market rents used to es25 tablish the fair market rental. 


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1 ‘‘(v) The Secretary shall phase in large increases or 

2 decreases in the fair market rentals that result from 

3 changes in market area boundaries or other methodo4 logical changes that do not reflect actual year-to-year 

5 trends in rents by limiting such increases or decreases to 

6 not more than 5 percent each year.’’. 

7 (b) PAYMENT STANDARD.—Subparagraph (B) of sec8 tion 8(o)(1) of the United States Housing Act of 1937 

9 (42 U.S.C. 1437f(o)(1)(B)) is amended by inserting be10 fore the period at the end the following: ‘‘, except that 

11 no public housing agency shall be required as a result of 

12 a reduction in the fair market rental to reduce the pay13 ment standard applied to a family continuing to reside in 

14 a unit for which the family was receiving assistance under 

15 this section at the time the fair market rental was re16 duced’’. 

17 SEC. 14. SCREENING OF APPLICANTS. 

18 (a) IN GENERAL.—Subparagraph (B) of section 

19 8(o)(6) of the United States Housing Act of 1937 

20 (1437f(o)(6)(B)) is amended— 

21 (1) by striking ‘‘(B) SELECTION OF TEN22 ANTS.—Each’’ and inserting the following: 

23 ‘‘(B) SELECTION OF TENANTS.— 

24 ‘‘(i) FUNCTION OF OWNER.—Each’’; 


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1 (2) in the first sentence, by striking ‘‘unit)’’ 

2 and inserting ‘‘unit’’; 

3 (3) by striking ‘‘In addition’’ and inserting the 

4 following: 

5 ‘‘(ii) SCREENING.—In addition’’; 

6 (4) by inserting after ‘‘establish.’’ the following: 

7 ‘‘A public housing agency’s elective screening shall 

8 be limited to criteria that are directly related to an 

9 applicant’s ability to fulfill the obligations of an as10 sisted lease and shall consider mitigating cir11 cumstances related to such applicant. The require12 ments of the preceding sentence shall not limit the 

13 ability of a public housing agency to deny assistance 

14 based on an applicant’s criminal background or any 

15 other permissible grounds for denial under subtitle F 

16 of title V of the Quality Housing and Work Respon17 sibility Act of 1998 (42 U.S.C. 13661 et seq.; relat18 ing to safety and security in public and assisted 

19 housing), subject to the procedural requirements of 

20 this section. Any applicant or participant determined 

21 to be ineligible for admission or continued participa22 tion to the program shall be notified of the basis for 

23 such determination and provided, within a reason24 able time after the determination, an opportunity for 

25 an informal hearing on such determination at which 


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1 mitigating circumstances, including remedial conduct 

2 subsequent to the conduct that is the basis of such 

3 determination, shall be considered.’’; and 

4 (5) by adding at the end the following: 

5 ‘‘(iii) EXISTING ASSISTED FAMI6 LIES.—Families being provided enhanced 

7 vouchers pursuant to subsection (t), fami8 lies receiving assistance under this Act 

9 that are subsequently provided tenant10 based assistance pursuant to subsection 

11 (dd)(1)(B), and families residing in multi12 family housing subject to a mortgage in13 sured under the National Housing Act that 

14 are provided tenant-based assistance pur15 suant to subsection (dd)(1)(B)(xiv) of this 

16 section shall not be considered new appli17 cants under this paragraph and shall not 

18 be subject to elective re-screening by a 

19 public housing agency.’’. 

20 (b) LEASES AND TENANCY.—Subparagraph (E) of 

21 section 8(o)(7) of the United States Housing Act of 1937 

22 (42 U.S.C. 1437f(o)(7)(E)) is amended by inserting ‘‘ter23 mination or’’ after ‘‘any’’ the last place such term appears. 


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1 (c) DENIALS OF ADMISSION.—Section 576 of the 

2 Quality Housing and Work Responsibility Act of 1998 (42 

3 U.S.C. 13661) is amended— 

4 (1) in subsection (b)— 

5 (A) by striking paragraph (2); 

6 (B) in paragraph (1)— 

7 (i) in subparagraph (A), by inserting 

8 ‘‘, based on documented evidence that is 

9 credible and objective,’’ after ‘‘deter10 mines’’; 

11 (ii) in subparagraph (B), by striking 

12 ‘‘that it has reasonable’’ and all that fol13 lows through ‘‘by other residents’’ and in14 serting ‘‘, based on documented evidence 

15 that is credible and objective, is a chronic 

16 abuser of alcohol, and who is not currently 

17 participating in a supervised alcohol reha18 bilitation program’’; and 

19 (iii) by redesignating subparagraphs 

20 (A) and (B) (as so amended) as para21 graphs (1) and (2) and realigning such 

22 paragraphs, as so redesignated, so as to be 

23 indented 2 ems from the left margin; and 


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1 (C) by striking the subsection designation 

2 and all that follows through ‘‘Notwithstanding’’ 

3 in paragraph (1) and inserting the following: 

4 ‘‘(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND

5 ALCOHOL ABUSERS.—Notwithstanding’’; and 

6 (2) in subsection (c)— 

7 (A) in the section heading, by inserting 

8 ‘‘CERTAIN’’ before ‘‘CRIMINAL’’; 

9 (B) in the matter that precedes paragraph 

10 (1)— 

11 (i) by inserting ‘‘, based on docu12 mented evidence that is credible and objec13 tive,’’ after ‘‘determines’’; 

14 (ii) by striking ‘‘a reasonable time’’ 

15 and inserting ‘‘the 5-year period’’; and 

16 (iii) by striking ‘‘or other criminal ac17 tivity’’; 

18 (C) in paragraph (2), by striking ‘‘reason19 able’’ each place such term appears and insert20 ing ‘‘5-year’’; and 

21 (D) by adding after and below paragraph 

22 (2) the following: 

23 ‘‘No denial of admission may be made pursuant to this 

24 subsection based on a misdemeanor conviction or activity 


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1 which is of a misdemeanor nature unless such denial is 

2 based on a pattern of activity.’’. 

3 SEC. 15. ENHANCED VOUCHERS. 

4 (a) QUALIFICATION; ELECTION TO REMAIN IN

5 UNIT.—Section 8(t)(1) of the United States Housing Act 

6 of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amended— 

7 (1) in the matter preceding subparagraph (A), 

8 by inserting ‘‘and shall not require that the family 

9 requalify under the selection standards for a public 

10 housing agency in order to be eligible for such as11 sistance’’ before the comma; and 

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

13 the following new subparagraph: 

14 ‘‘(B)(i) the assisted family may elect to re15 main in the same project in which the family 

16 was residing on the date of the eligibility event 

17 for the project regardless of unit and family 

18 size standards normally used by the admin19 istering public housing agency (except that ten20 ants may be required to move to units of appro21 priate size if available on the premises), and the 

22 owner of the unit shall accept the enhanced 

23 voucher and terminate the tenancy only for se24 rious or repeated violation of the terms and 


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1 conditions of the lease or for violation of appli2 cable law; and 

3 ‘‘(ii) if, during any period the family 

4 makes such an election and continues to so re5 side, the rent for the dwelling unit of the family 

6 in such project exceeds the applicable payment 

7 standard established pursuant to subsection (o) 

8 for the unit, the amount of rental assistance 

9 provided on behalf of the family shall be deter10 mined using a payment standard that is equal 

11 to the rent for the dwelling unit (as such rent 

12 may be increased from time-to-time), subject to 

13 paragraph (10)(A) of subsection (o) and any 

14 other reasonable limit prescribed by the Sec15 retary, except that a limit shall not be consid16 ered reasonable for purposes of this subpara17 graph if it adversely affects such assisted fami18 lies;’’. 

19 (b) PROVISION TO RESIDENTS OF ASSISTED MULTI20 FAMILY PROJECTS UPON TERMINATION DATE.— 

21 (1) REQUIREMENT.—Upon the termination 

22 date for each assisted multifamily housing project, 

23 to the extent that amounts for assistance under this 

24 paragraph are provided in advance in appropriation 

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1 ment shall make enhanced voucher assistance under 

2 section 8(t) of the United States Housing Act of 

3 1937 (42 U.S.C. 1437f(t)) available on behalf of 

4 each family described in paragraph (2). 

5 (2) ELIGIBILITY.—A family described in this 

6 paragraph is a family who— 

7 (A)(i) is a low-income family; or 

8 (ii) is a moderate-income family that is— 

9 (I) an elderly family (as such term is 

10 used in section 3(b) of the United States 

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

12 1437a(b)); 

13 (II) a disabled family (as such term is 

14 used in section 3(b) of the United States 

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

16 1437a(b)); or 

17 (III) residing in a low-vacancy area 

18 (as determined by the Secretary); and 

19 (B) on such termination date, is residing 

20 in a dwelling unit of the project that— 

21 (i) immediately before such termi22 nation date was assisted under the multi23 family housing subsidy program for the 

24 project; and 


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1 (ii) is not assisted after such termi2 nation date under section 8 of such Act. 

3 (3) ELIGIBILITY EVENT.—Section 8(t)(2) of the 

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

5 1437f(t)(2)) is amended by adding after the period 

6 at the end the following new sentence: ‘‘Such term 

7 includes, with respect to an assisted multifamily 

8 housing project (as such term is defined in section 

9 15(b) of the Section 8 Voucher Reform Act of 

10 2009), the occurrence of the termination date for 

11 the project. 

12 (4) DEFINITIONS.—For purposes of this sub13 section, the following definitions shall apply: 

14 (A) ASSISTED MULTIFAMILY HOUSING

15 PROPERTY.—The term ‘‘assisted multifamily 

16 housing property’’ means a multifamily housing 

17 project for which assistance is provided under a 

18 multifamily housing subsidy program. 

19 (B) LOW-INCOME FAMILY.—The term 

20 ‘‘low-income family’’ has the meaning given 

21 such term in section 3(b) of the United States 

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

23 (C) MODERATE-INCOME FAMILY.—The 

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1 Income Housing Preservation and Resident 

2 Homeownership Act of 1992 (12 U.S.C. 4119). 

3 (D) MULTIFAMILY HOUSING SUBSIDY PRO4 GRAM.—The term ‘‘multifamily housing subsidy 

5 program’’ means— 

6 (i) the below-market interest rate 

7 mortgage insurance program under section 

8 221(d)(3) of the National Housing Act (12 

9 U.S.C. 1715l(d)(3)); and 

10 (ii) the program for interest reduction 

11 payments under section 236 of the Na12 tional Housing Act (12 U.S.C. 1715z–1). 

13 (E) TERMINATION DATE.—The term ‘‘ter14 mination date’’ means, with respect to an as15 sisted multifamily housing property, the date 

16 that— 

17 (i) the mortgage for the property that 

18 is insured under the below-market interest 

19 rate program under section 221(d)(3) of 

20 the National Housing Act, or for which in21 terest reduction payments are made under 

22 section 236 of such Act, matures; and 

23 (ii) the affordability restrictions appli24 cable to the property because of assistance 

25 for the property pursuant to a multifamily 


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1 housing subsidy program terminate with 

2 respect to the property. 

3 (5) REGULATIONS.—The Secretary may issue 

4 any regulations necessary to carry out this sub5 section. 

6 SEC. 16. DEMONSTRATION PROGRAM WAIVER AUTHORITY. 

7 (a) AUTHORITY TO ENTER INTO AGREEMENTS.— 

8 Notwithstanding any other provision of law, the Secretary 

9 of Housing and Urban Development may enter into such 

10 agreements as may be necessary with the Social Security 

11 Administration and the Secretary of Health and Human 

12 Services to allow for the participation, in any demonstra13 tion program described in subsection (c), by the Depart14 ment of Housing and Urban Development and the use 

15 under such program of housing choice vouchers under sec16 tion 8(o) of the United States Housing Act of 1937 (42 

17 U.S.C. 1437f(o)). 

18 (b) WAIVER OF INCOME REQUIREMENTS.—The Sec19 retary of Housing and Urban Development may, to extent 

20 necessary to allow rental assistance under section 8(o) of 

21 the United States Housing Act of 1937 to be provided 

22 on behalf of persons described in subsection (c) who par23 ticipate in a demonstration program described in such 

24 subsection, and to allow such persons to be placed on a 

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1 regard increases in earned income for the purpose of rent 

2 calculations under section 3 for such persons. 

3 (c) DEMONSTRATION PROGRAMS.—A demonstration 

4 program described in this subsection is a demonstration 

5 program of a State that provides for persons with signifi6 cant disabilities to be employed and continue to receive 

7 benefits under programs of the Department of Health and 

8 Human Services and the Social Security Administration, 

9 including the program of supplemental security income 

10 benefits under title XVI of the Social Security Act, dis11 ability insurance benefits under title II of such Act, and 

12 the State program for medical assistance (Medicaid) under 

13 title XIX of such Act. 

14 SEC. 17. AUTHORIZATION OF APPROPRIATIONS. 

15 There is authorized to be appropriated for fiscal year 

16 2010 the amount necessary to provide public housing 

17 agencies with incremental assistance under section 8(o) of 

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

19 1437f(o)) sufficient to assist 150,000 incremental dwelling 

20 units in such fiscal year, for— 

21 (1) tenant-based assistance; and 

22 (2) project-based voucher assistance for ex23 tremely low-income families, in conjunction with— 

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1 eral Housing Enterprises Financial Safety and 

2 Soundness Act of 1992 (12 U.S.C. 4568, 

3 4569); 

4 (B) low-income housing tax credits pro5 vided under section 42 of the Internal Revenue 

6 Code of 1986; 

7 (C) amounts provided under the commu8 nity development block grant program under 

9 title I of the Housing and Community Develop10 ment Act of 1974 (42 U.S.C. 5301 et seq.) and 

11 the HOME investment partnerships program 

12 under title II of the Cranston-Gonzalez Na13 tional Affordable Housing Act (42 U.S.C. 

14 12721 et seq.); and 

15 (D) State and local affordable housing 

16 funds and programs. 

17 SEC. 18. AGENCY AUTHORITY FOR UTILITY PAYMENTS IN 

18 CERTAIN CIRCUMSTANCES. 

19 Section 8(o) of the United States Housing Act of 

20 1937 (42 U.S.C. 1437f(o)), as amended by the preceding 

21 provisions of this Act, is further amended by adding at 

22 the end the following new paragraph: 

23 ‘‘(22) AUTHORITY OF PUBLIC HOUSING AGEN24 CIES TO MAKE DIRECT PAYMENTS FOR UTILITIES

25 WHEN OWNER FAILS TO PAY.— 


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1 ‘‘(A) IN GENERAL.—If the owner has 

2 failed to pay for utilities that are the responsi3 bility of the owner under the lease or applicable 

4 law, the public housing agency is authorized to 

5 utilize subsidy payments otherwise due the 

6 owner to pay for continued utility service to 

7 avoid hardship to program participants. 

8 ‘‘(B) NOTICE.—Before making utility pay9 ments as described in subparagraph (A), the 

10 public housing agency shall take reasonable 

11 steps to notify the owner that it intends to 

12 make payments to a utility provider in lieu of 

13 payments to the owner, except prior notification 

14 shall not be required in any case in which the 

15 unit will be or has been rendered uninhabitable 

16 due to the termination or threat of termination 

17 of service, in which case the public housing 

18 agency shall notify the owner within a reason19 able time after making such payment.’’. 

20 SEC. 19. PROJECT-BASED PRESERVATION VOUCHERS. 

21 (a) ENHANCED VOUCHERS.—Section 8(t) of the 

22 United States Housing Act of 1937 (42 U.S.C. 1437f(t)) 

23 is amended— 

24 (1) by redesignating paragraph (4) as para25 graph (5); and 


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1 (2) by inserting after paragraph (3) the fol2 lowing new paragraph: 

3 ‘‘(4) PRESERVATION PROJECT-BASED VOUCHER

4 ASSISTANCE.—Notwithstanding any other provision 

5 of law, in the case of a multifamily housing project 

6 with respect to which an eligibility event occurs or 

7 has occurred, project-based voucher assistance may 

8 be provided in accordance with subsection (o)(13)(P) 

9 in lieu of enhanced voucher assistance under this 

10 subsection. Such project-based voucher assistance 

11 shall not be subject to the provisions of this sub12 section, except as otherwise specifically provided in 

13 subsection (o)(13)(P).’’. 

14 (b) PHA PROJECT-BASED VOUCHER ASSISTANCE.— 

15 Paragraph (13) of section 8(o) of the United States Hous16 ing Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended 

17 by the preceding provisions of this Act, is further amended 

18 by adding at the end the following new subparagraph: 

19 ‘‘(P) PRESERVATION ASSISTANCE.— 

20 ‘‘(i) AUTHORITY.—Project-based 

21 voucher assistance under this paragraph 

22 shall be made available in accordance with 

23 this subparagraph for multifamily housing 

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1 curs or has occurred and for which en2 hanced voucher assistance would otherwise 

3 be, or has been, provided under subsection 

4 (t). Any such assistance shall be in lieu of 

5 enhanced voucher assistance under sub6 section (t) for tenants residing in the 

7 project and shall be provided by the Sec8 retary to a public housing agency. 

9 ‘‘(ii) REQUEST AND PROVISION.—If 

10 the owner of a multifamily housing project 

11 makes a request for project-based voucher 

12 assistance pursuant to this subparagraph 

13 for the project to a public housing agency 

14 that administers a program for assistance 

15 under subsection (o) for a jurisdiction 

16 within which the project is located, a con17 tract for assistance under this subpara18 graph shall be provided with respect to the 

19 project, subject to clause (v). 

20 ‘‘(iii) TIMING, COVERAGE, AND UNIT

21 RENTS.— 

22 ‘‘(I) REQUEST MADE BEFORE

23 ELIGIBILITY EVENT.—In the case of a 

24 contract for assistance under this sub25 paragraph with respect to a project 


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1 that is requested prior to the occur2 rence of the eligibility event, the con3 tract for assistance shall be provided, 

4 subject to clause (v), upon the occur5 rence of the eligibility event. Such 

6 contract shall cover all dwelling units 

7 in the project for which enhanced 

8 voucher assistance under subsection 

9 (t) would otherwise be provided. 

10 ‘‘(II) REQUEST MADE AFTER

11 ISSUANCE OF ENHANCED VOUCH12 ERS.—In the case of a contract for 

13 assistance under this subparagraph 

14 with respect to a project that is re15 quested after the issuance of enhanced 

16 vouchers under subsection (t) for the 

17 project, the contract shall be provided, 

18 subject to clause (v), as soon as pos19 sible. Such contract shall cover all 

20 dwelling units in the project that are 

21 occupied by tenants receiving such en22 hanced voucher assistance at the time 

23 the contract is effective. 

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1 quest of the owner of a multifamily 

2 housing project for which a contract 

3 for assistance is to be provided under 

4 this subparagraph, the public housing 

5 agency may contract with the owner 

6 for project-based voucher assistance 

7 under this subparagraph to cover ad8 ditional dwelling units, if the public 

9 housing agency determines that such 

10 additional assistance is necessary or 

11 desirable to further the purposes re12 flected in clause (v). 

13 ‘‘(IV) APPROVAL OF HIGHER

14 RENTS.—At the request of the owner 

15 of a multifamily housing project for a 

16 contract for assistance under this sub17 paragraph to establish rents at levels 

18 above those permitted by subpara19 graph (H), a public housing agency 

20 that has made the determinations re21 quired by clause (v) may request, and 

22 the Secretary may approve, higher 

23 unit rents if necessary to preserve 

24 housing opportunities that further the 

25 purposes of clause (v). 


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1 ‘‘(iv) PROJECTS IN MULTIPLE PHA JU2 RISDICTIONS.—If the Secretary has not en3 tered into a contract with a public housing 

4 agency to provide enhanced voucher assist5 ance under subsection (t) for the project at 

6 the time the owner of a multifamily hous7 ing project requests assistance under this 

8 subparagraph, and the project is located 

9 within the jurisdiction for the program 

10 under subsection (o) of more than one pub11 lic housing agency, in determining which 

12 agency will administer such assistance, the 

13 Secretary shall— 

14 ‘‘(I) consider the ratio of the 

15 number of vouchers to be awarded 

16 under this subparagraph and of other 

17 project-based vouchers administered 

18 under this paragraph to the total 

19 number of vouchers administered by 

20 an agency; and 

21 ‘‘(II) among other factors, pro22 vide preference to an agency for which 

23 the total number of project-based 

24 vouchers administered under this 

25 paragraph, including vouchers to be 


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1 awarded pursuant to this subpara2 graph, would not exceed 50 percent of 

3 the total number of all vouchers to be 

4 administered by the agency after such 

5 award. 

6 ‘‘(v) REQUIRED DETERMINATIONS.— 

7 As a condition of entering into a contract 

8 pursuant to this subparagraph, the public 

9 housing agency shall have determined, be10 fore entering into such contract that— 

11 ‘‘(I) the housing to be assisted 

12 under the contract is economically via13 ble; and 

14 ‘‘(II)(aa) there is a significant 

15 demand for the housing; 

16 ‘‘(bb) the housing will contribute 

17 to a community revitalization plan or 

18 to deconcentrating poverty and ex19 panding housing and economic oppor20 tunities; or 

21 ‘‘(cc) the continued affordability 

22 of the housing otherwise is an impor23 tant asset to the community. 

24 ‘‘(vi) INAPPLICABILITY OF GOALS.— 

25 Subparagraph (C) shall not apply to a 


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1 housing assistance payment contract pur2 suant to this subparagraph. 

3 ‘‘(vii) DISREGARD OF ASSISTANCE

4 UNDER PERCENTAGE LIMITATION.— 

5 Amounts provided pursuant to this sub6 paragraph shall not be considered for pur7 poses of calculating the limitation under 

8 subparagraph (B). 

9 ‘‘(viii) INAPPLICABILITY OF INCOME10 MIXING REQUIREMENT.—Subparagraph 

11 (D) shall not apply with respect to a hous12 ing assistance payments contract pursuant 

13 to this subparagraph. 

14 ‘‘(ix) ELIGIBILITY.—Subject only to 

15 clause (iii) and notwithstanding any other 

16 provision of law, any family residing in a 

17 multifamily housing project on the date of 

18 the eligibility event for the project who 

19 would otherwise be eligible for enhanced 

20 voucher assistance under subsection (t) 

21 shall be eligible for project-based voucher 

22 assistance pursuant to this subpara23 graph.’’. 


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1 SEC. 20. EFFECT OF FORECLOSURE ON SECTION 8 TENAN2 CIES. 

3 (a) USE OF RENTAL ASSISTANCE AMOUNTS.—Sec4 tion 8(o)(7) of the United States Housing Act of 1937 

5 (42 U.S.C. 1437f(o)(7)(F)), as amended by section 703 

6 of division A of Public Law 111–22 (123 Stat. 1661), is 

7 amended— 

8 (1) in subparagraph (F), by inserting after ‘‘oc9 cupied unit,’’ the following: ‘‘and if a public housing 

10 agency is unable to make payments under the con11 tract to the immediate successor in interest after 

12 foreclosure, due to action or inaction by the suc13 cessor in interest, including the rejection of pay14 ments or the failure of the successor to maintain the 

15 unit in compliance with paragraph (8), or an inabil16 ity to identify the successor, the agency may use 

17 funds that would have been used to pay the rental 

18 amount on behalf of the family— 

19 ‘‘(i) to pay for utilities that are the 

20 responsibility of the owner under the lease 

21 or applicable law, after taking reasonable 

22 steps to notify the owner that it intends to 

23 make payments to a utility provider in lieu 

24 of payments to the owner, except prior no25 tification shall not be required in any case 

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1 dered uninhabitable due to the termination 

2 or threat of termination of service, in 

3 which case the public housing agency shall 

4 notify the owner within a reasonable time 

5 after making such payment; or 

6 ‘‘(ii) for the family’s reasonable mov7 ing costs, including security deposit 

8 costs.’’; 

9 (2) by striking ‘‘except that this provision and 

10 the provisions related to foreclosure in subparagraph 

11 (C) shall not’’ in subparagraph (F) and inserting the 

12 following: 

13 ‘‘The provisions related to foreclosure in subpara14 graphs (C) and (F)’’; and 

15 (3) in the matter after and below subparagraph 

16 (F), as amended by paragraph (2) of this sub17 section, by adding after the period at the end the 

18 following: ‘‘For purposes of subparagraphs (C) and 

19 (F), the term ‘immediate successor in interest’ in20 cludes a purchaser who purchases a property from 

21 an immediate successor in interest.’’. 

22 (b) SUNSET.—Section 704 of division A of the Help23 ing Families Save Their Homes Act (Public Law 111–22; 

24 123 Stat. 1662) is amended— 


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1 (1) by striking ‘‘This title, and any amend2 ments made by this title are’’ and inserting ‘‘Section 

3 702 is’’; and 

4 (2) by striking ‘‘this title’’ and inserting ‘‘such 

5 section’’. 

6 SEC. 21. STUDY TO IDENTIFY OBSTACLES TO USING 

7 VOUCHERS IN FEDERALLY SUBSIDIZED 

8 HOUSING PROJECTS. 

9 (a) STUDY.—The Comptroller General of the United 

10 States shall conduct a study of (1) the housing voucher 

11 program authorized under section 8(o) of the United 

12 States Housing Act of 1937 (42 U.S.C. 1437f(o)), and 

13 (2) other federally subsidized housing programs, to deter14 mine whether any statutory, regulatory, or administrative 

15 provisions of the housing voucher program or of other fed16 erally subsidized housing programs, or policies and prac17 tices of housing owners or public housing agencies or other 

18 agencies, may have the effect of making occupancy by 

19 voucher holders in federally subsidized housing projects 

20 more difficult to obtain than occupancy by non-voucher 

21 holders. In conducting the study required under this sub22 section the Comptroller General shall determine if any 

23 gaps exist in the statute, regulations, or administration 

24 of the housing voucher program or of other federally sub25 sidized housing programs and policies and practices of 


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1 housing owners or public housing agencies or other agen2 cies that, if addressed, could eliminate or reduce obstacles 

3 to voucher holders in seeking occupancy in federally sub4 sidized housing projects. Such study shall include data on 

5 the use of housing vouchers in federally subsidized housing 

6 projects. 

7 (b) DEFINITION.—As used in this section, the term 

8 ‘‘federally subsidized housing projects’’ includes projects 

9 assisted pursuant to the HOME investment partnerships 

10 program under title II of the Cranston-Gonzalez National 

11 Affordable Housing Act (42 U.S.C. 12721 et seq.) and 

12 those projects receiving the benefit of low-income housing 

13 credits under section 42 of the Internal Revenue Code of 

14 1986 (26 U.S.C. 42). 

15 (c) REPORT.—Not later than 6 months after the date 

16 of enactment of this Act, the Comptroller General shall 

17 report to Congress the findings from the study required 

18 under subsection (a) and any recommendations for statu19 tory, regulatory, or administrative changes. 

20 SEC. 22. INTERAGENCY COUNCIL ON HOMELESSNESS. 

21 (a) TECHNICAL CORRECTION.—Section 202(e) of the 

22 McKinney-Vento Homeless Assistance Act (42 U.S.C. 

23 11312), as amended by section 1004 of Public Law 111– 

24 22, is amended by striking ‘‘Chairman’’ and inserting 

25 ‘‘Chairperson’’. 


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1 (b) DUTIES.—Section 203 of the McKinney-Vento 

2 Homeless Assistance Act (42 U.S.C. 11313), as amended 

3 by section 1004 of Public Law 111–22, is amended— 

4 (1) in subsection (a)— 

5 (A) by redesignating paragraphs (6) 

6 through (13) as paragraphs (9), and (16), re7 spectively; 

8 (B) in paragraph (1), by inserting ‘‘which 

9 shall set forth actions to accomplish the goal of 

10 ending homelessness,’’ after ‘‘National Strategic 

11 Plan to End Homelessness,’’; 

12 (C) in paragraph (3), by inserting before 

13 the semicolon at the end the following: ‘‘and en14 sure that related programs and activities to as15 sist homeless individuals of Federal agencies 

16 are coordinated with each other’’; and 

17 (D) by inserting after paragraph (5) the 

18 following new paragraphs: 

19 ‘‘(6) make recommendations, in the reports 

20 submitted pursuant to subsection (c) on— 

21 ‘‘(A) long-term goals for the Congress to 

22 reduce homelessness; and 

23 ‘‘(B) legislative strategies for the Congress 

24 to achieve such goals; 


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1 ‘‘(7) evaluate the Federal role in interacting 

2 and coordinating with State and local entities that 

3 address homelessness; 

4 ‘‘(8) conduct research and develop methods— 

5 ‘‘(A) through consultation with State and 

6 local agencies, to improve coordination between 

7 the Council and Federal agencies in existence 

8 upon the date of enactment of the Interagency 

9 Council on Homelessness Reform Act of 2009 

10 that specifically deal with homelessness; and 

11 ‘‘(B) to minimize the period during which 

12 individuals remain homeless;’’; and 

13 (2) in subsection (c), by adding at the end the 

14 following new paragraphs: 

15 ‘‘(3) BIENNIAL REPORT.—The Council shall 

16 prepare and transmit to the President and the Con17 gress a biennial report detailing the efforts of the 

18 Council to address homelessness. 

19 ‘‘(4) PUBLIC AVAILABILITY.—The Council shall 

20 make each report submitted to the Congress pursu21 ant to paragraph (1), (2), or (3) of this subsection, 

22 and the national plan and updates of such plan sub23 mitted pursuant to paragraph (1) of subsection (a), 

24 publicly available, including through posting on a 

25 World Wide Web site maintained by the Council.’’. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 208 of the McKinney-Vento Homeless Assistance Act (42 

3 U.S.C. 11318), as amended by section 1004 of Public Law 

4 111–22, is amended by striking ‘‘fiscal years 2011’’ and 

5 inserting ‘‘each of fiscal years 2011 through 2015’’. 

6 SEC. 23. HOUSING INNOVATION PROGRAM. 

7 (a) ESTABLISHMENT OF PROGRAM.—Title I of the 

8 United States Housing Act of 1937 (42 U.S.C. 1437 et 

9 seq.) is amended by adding at the end the following new 

10 section: 

11 ‘‘SEC. 37. HOUSING INNOVATION PROGRAM. 

12 ‘‘(a) PURPOSE.—The purpose of the program under 

13 this section is to establish a demonstration program under 

14 which public housing agencies are given the flexibility to 

15 design, and the Secretary is given the responsibility to 

16 evaluate, innovative approaches to providing housing as17 sistance that— 

18 ‘‘(1) increase housing opportunities for low-, 

19 very low-, and extremely low-income families, includ20 ing modernizing, rehabilitating, reconfiguring, or re21 placing public housing at risk of physical deteriora22 tion or obsolescence, developing additional affordable 

23 housing, providing supportive housing, and increas24 ing the number of families receiving tenant-based 

25 rental assistance; 


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1 ‘‘(2) provide financial incentives and other sup2 port mechanisms to families to obtain employment 

3 and increase earned income, and achieve economic 

4 self-sufficiency, while protecting very low- and ex5 tremely low-income families from increased rent bur6 dens; 

7 ‘‘(3) utilize funds in a more effective or cost-ef8 ficient manner, including achieving energy, adminis9 trative, and other cost savings; 

10 ‘‘(4) leverage other Federal, State, and local 

11 funding sources, including the low-income housing 

12 tax credit program, to expand and preserve afford13 able housing opportunities, including public housing; 

14 ‘‘(5) test alternative rent-setting policies to de15 termine whether rent determinations can be sim16 plified and administrative cost savings can be real17 ized while protecting extremely low- and very low-in18 come families from increased rent burdens; 

19 ‘‘(6) are subject to rigorous evaluation to test 

20 the effectiveness of such innovative approaches; and 

21 ‘‘(7) are developed with the support of the local 

22 community and with the substantial participation of 

23 affected residents. 

24 ‘‘(b) PROGRAM AUTHORITY.— 


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1 ‘‘(1) SCOPE.—The Secretary shall carry out a 

2 housing innovation demonstration program under 

3 this section under which the Secretary may des4 ignate such number of public housing agencies to 

5 participate in the housing innovation demonstration 

6 program as may be necessary, in conjunction with 

7 agencies approved for continued program participa8 tion pursuant to subsection (c), to demonstrate the 

9 effectiveness of the priority strategies identified in 

10 subsection (d)(2). The Secretary may also designate 

11 such number of additional agencies to participate in 

12 the program under the terms of subsection (i) as 

13 may be necessary to demonstrate other innovative 

14 strategies as the Secretary or applicants may pro15 pose. 

16 ‘‘(2) DURATION.—The Secretary may carry out 

17 the housing innovation program under this section 

18 only during the 10-year period beginning on the date 

19 of the enactment of the Section 8 Voucher Reform 

20 Act of 2009. 

21 ‘‘(c) PARTICIPATION OF EXISTING MTW AGEN22 CIES.— 

23 ‘‘(1) EXISTING MTW AGENCIES.—Subject to the 

24 requirements of paragraph (2), all existing MTW 


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1 agencies shall be designated to participate in the 

2 program. 

3 ‘‘(2) CONDITIONS OF PARTICIPATION.—The 

4 Secretary shall approve and transfer into the hous5 ing innovation program under this section each ex6 isting MTW agency that the Secretary determines is 

7 not in default under such agreement and which the 

8 Secretary also determines is meeting the goals and 

9 objectives of its moving to work plan. Any agency 

10 that has been audited by the Inspector General of 

11 the Department of Housing and Urban Development 

12 shall demonstrate compliance with the program rules 

13 that the Inspector General determined were not 

14 being complied with by such agency. Any agency ap15 proved for transfer into the housing innovation pro16 gram may, at its option, be subject to the provisions 

17 of this paragraph, in lieu of an agreement currently 

18 in place with the Secretary for participation in the 

19 Moving to Work program. Each agency shall, within 

20 two years after the date of the enactment of the Sec21 tion 8 Voucher Reform Act of 2009, make changes 

22 to its policies that were implemented before such 

23 date of enactment in order to comply with the re24 quirements of this section. 

25 ‘‘(d) ADDITIONAL AGENCIES.— 


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1 ‘‘(1) PROPOSALS; SELECTION PROCESS.—In ad2 dition to agencies participating in the program pur3 suant to subsection (c), the Secretary shall, within 

4 12 months after such date of enactment, select pub5 lic housing agencies to participate in the program 

6 pursuant to a competitive process that meets the fol7 lowing requirements: 

8 ‘‘(A) Any public housing agency may be se9 lected to participate in the program, except that 

10 not more than 5 agencies that are near-troubled 

11 under the public housing assessment system 

12 and/or section 8 management assessment pro13 gram may be selected, and except that any 

14 agency that is a troubled agency under either 

15 such assessment program or for which the Sec16 retary has hired an alternative management en17 tity for such agency or has taken possession of 

18 all or any part of such agency’s public housing 

19 program shall not be eligible for participation. 

20 Any near-troubled public housing agency par21 ticipating in the program shall remain subject 

22 to the requirements of this Act governing ten23 ant rent contributions, eligibility, and continued 

24 participation, and may not adopt policies de25 scribed in subsection (e)(4) (relating to rents 


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1 and requirements for continued occupation and 

2 participation). 

3 ‘‘(B) The process provides, to the extent 

4 possible based on eligible agencies submitting 

5 applications and taking into account existing 

6 MTW agencies participating pursuant to sub7 section (c), for representation among agencies 

8 selected of agencies having various characteris9 tics, including both large and small agencies, 

10 agencies serving urban, suburban, and rural 

11 areas, and agencies in various geographical re12 gions throughout the United States, and which 

13 may include the selection of agencies that only 

14 administer the voucher program under section 

15 8(o). 

16 ‘‘(C) Any agency submitting a proposal 

17 under this paragraph shall have provided notice 

18 to residents and the local community, not later 

19 than 30 days before the first of the two public 

20 meetings required under subparagraph (D). 

21 ‘‘(D) The agency submitting a proposal 

22 shall hold two public meetings to receive com23 ments on the agency’s proposed application, on 

24 the implications of changes under the proposal, 

25 and the possible impact on residents. 


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1 ‘‘(E) The process includes criteria for se2 lection, as follows: 

3 ‘‘(i) The extent to which— 

4 ‘‘(I) if proposal is for the purpose 

5 of carrying out the priority strategy 

6 under subsection (d)(2)(A), the pro7 posal is likely to achieve the purposes 

8 of increasing housing opportunities for 

9 low-, very low-, and extremely low-in10 come families, including modernizing, 

11 rehabilitating, reconfiguring, or re12 placing public housing at risk of phys13 ical deterioration or obsolescence, de14 veloping additional affordable housing, 

15 providing supportive housing, or in16 creasing the number of families re17 ceiving tenant-based rental assistance, 

18 or a combination of these purposes; 

19 ‘‘(II) if the proposal is for the 

20 purpose of carrying out the priority 

21 strategy under subsection (d)(2)(B), 

22 the proposal is likely to achieve the 

23 purposes of families obtaining employ24 ment, increasing earned income, or 

25 achieving economic self-sufficiency, 


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1 while protecting extremely low- and 

2 very low-income families from in3 creased rent burdens; or 

4 ‘‘(III) if the proposal is for the 

5 purpose of carrying out an innovative 

6 strategy pursuant to the last sentence 

7 of subsection (b)(1), the proposal is 

8 likely to achieve the goals and objec9 tives of such strategy. 

10 ‘‘(ii) The extent to which the proposal 

11 generally identifies statutory provisions 

12 and existing rules and regulations that im13 pede achievement of the goals and objec14 tives of the proposal and an explanation of 

15 why a waiver of such statutory provisions, 

16 rules, and regulations is necessary to 

17 achieve such goals and objectives. 

18 ‘‘(iii) The extent to which the agency 

19 has a successful history of implementing or 

20 has expertise in strategies similar to those 

21 set forth in the agency’s proposal. 

22 ‘‘(iv) The extent of commitment and 

23 funding for carrying out the proposal by 

24 local and State government agencies and 

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1 vision of additional funding and other serv2 ices, and the extent of support for the pro3 posal by residents, resident advisory 

4 boards, and members of the local commu5 nity. 

6 ‘‘(v) Such other factors as the Sec7 retary may establish, in consultation with 

8 participating agencies and agencies inter9 ested in participating in the program, pro10 gram stakeholders, and any entity con11 ducting evaluations pursuant to subsection 

12 (f), which may include the extent to which 

13 the proposal is likely to result in utilization 

14 of funds in a more effective or cost-effi15 cient manner, including achieving energy, 

16 administrative, and other cost savings. 

17 ‘‘(2) PRIORITY STRATEGIES.—For purposes of 

18 the first sentence of paragraph (b)(1), the following 

19 are priority strategies: 

20 ‘‘(A) INCREASING HOUSING OPPORTUNI21 TIES.—A strategy of development of increasing 

22 housing opportunities for low-, very low-, and 

23 extremely low-income families, including mod24 ernizing, rehabilitating, reconfiguring, or replac25 ing public housing at risk of physical deterioraVerDate Nov 24 2008 01:18 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6201 E:\BILLS\H3045.IH H3045

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1 tion or obsolescence, developing additional af2 fordable housing, providing supportive housing, 

3 or increasing the number of families receiving 

4 tenant-based rental assistance, or a combination 

5 of these purposes. 

6 ‘‘(B) RENT REFORMS AND FAMILY SELF7 SUFFICIENCY.—A strategy to implement rent 

8 reforms and other self-sufficiency incentives or 

9 resources, which shall be designed to help fami10 lies obtain employment, increase their earned 

11 income, or achieve economic self-sufficiency, 

12 while protecting extremely low- and very low-in13 come families from increased rent burdens. 

14 ‘‘(3) CONTRACT AMENDMENT.—After selecting 

15 agencies under this subsection, the Secretary shall 

16 promptly amend the applicable annual contributions 

17 contracts of such agencies to provide that— 

18 ‘‘(A) subject to subparagraph (B), such 

19 agencies may implement only such policies and 

20 activities that are necessary to carry out the 

21 priority strategy or innovative strategy or strat22 egies included in the application for participa23 tion in the program, without specifying such 

24 policies and activities in such amendment and 

25 without negotiating or entering into any other 


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1 agreements with the Secretary specifying such 

2 policies and activities; and 

3 ‘‘(B) the activities to be implemented by 

4 an agency under the program in a given year 

5 shall be described in and subject to the require6 ments of the annual plan under subsection 

7 (e)(8). 

8 ‘‘(e) PROGRAM REQUIREMENTS.— 

9 ‘‘(1) PROGRAM FUNDS.— 

10 ‘‘(A) IN GENERAL.—To the extent nec11 essary to carry out a housing innovation pro12 gram under this section, the participating agen13 cy may use amounts provided to the agency 

14 from the Operating Fund under section 9(e), 

15 amounts provided to the agency from the Cap16 ital Fund under section 9(d), and amounts pro17 vided to the agency for voucher assistance 

18 under section 8(o). Such program funds may be 

19 used for any activities that are authorized by 

20 section 8(o) or 9, or for other activities that are 

21 not inconsistent with this section, which may 

22 include, without limitation— 

23 ‘‘(i) providing capital and operating 

24 assistance, and financing for housing pre25 viously developed or operated pursuant to 


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1 a contract between the Secretary and such 

2 agency; 

3 ‘‘(ii) the acquisition, new construction, 

4 rehabilitation, financing, and provision of 

5 capital or operating assistance for low-in6 come housing (including housing other 

7 than public housing) and related facilities, 

8 which may be for terms exceeding the term 

9 of the program under this section in order 

10 to secure other financing for such housing; 

11 ‘‘(iii) costs of site acquisition and im12 provement, providing utility services, demo13 lition, planning, and administration of ac14 tivities under this paragraph; 

15 ‘‘(iv) housing counseling for low-in16 come families in connection with rental or 

17 homeownership assistance provided under 

18 the program; 

19 ‘‘(v) safety, security, law enforcement, 

20 and anticrime activities appropriate to pro21 tect and support families assisted under 

22 the program; 

23 ‘‘(vi) tenant-based rental assistance, 

24 which may include the project-basing of 

25 such assistance; and 


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1 ‘‘(vii) appropriate and reasonable fi2 nancial assistance that is required to pre3 serve low-income housing otherwise as4 sisted under programs administered by the 

5 Secretary or under State or local low-in6 come housing or public housing programs. 

7 ‘‘(B) COMBINING FUNDS.—Notwith8 standing any other provision of law, a partici9 pating agency may combine and use program 

10 funds for any activities authorized under this 

11 section, except that a participating agency may 

12 use funds provided for assistance under section 

13 8(o) for activities other than those authorized 

14 under section 8(o) only if (i) in the calendar 

15 year prior to its participation in the program, 

16 the agency utilized not less than 95 percent of 

17 such funds allocated for that calendar year for 

18 such authorized activities or 95 percent of its 

19 authorized vouchers; or (ii) after approval to 

20 participate in the program, the agency achieves 

21 such utilization for a 12-month period. Such 

22 limitation shall not apply to participating agen23 cies approved by the Secretary to combine 

24 funds from sections 8 and 9 of the Act prior to 

25 enactment of this section. A public housing 


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1 agency that uses funds provided from assist2 ance under section 8(o) for activities not au3 thorized under such subsection may not termi4 nate assistance to families assisted under such 

5 subsection on the grounds of inadequate fund6 ing to the extent such inadequacy is caused by 

7 such use of funds for purposes not authorized 

8 under section 8(o). 

9 ‘‘(2) USE OF PROGRAM FUNDS.—In carrying 

10 out the housing innovation program under this sec11 tion, each participating agency shall continue to as12 sist— 

13 ‘‘(A) not less than 98 percent of the num14 ber of eligible low-income families under the 

15 program as it assisted in the base year for the 

16 agency; and 

17 ‘‘(B) a comparable mix of families by fam18 ily size, subject to adjustment to reflect changes 

19 in the agency’s waiting list, except that the Sec20 retary may approve exceptions to such require21 ments for up to 3 years based on modernization 

22 or redevelopment activities proposed in an an23 nual plan submitted and approved in accord24 ance with paragraph (11). 


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1 Determinations with respect to the number of fami2 lies required to be served shall be adjusted to reflect 

3 any allocation of additional vouchers under section 

4 8(o), any change in annual voucher proration factor, 

5 or such other appropriate adjustments as the Sec6 retary may establish. For purposes of subparagraph 

7 (A), the term ‘base year’ means, with respect to ex8 isting MTW agencies, the first full calendar year 

9 prior to approval and transfer, pursuant to sub10 section (c)(2), into the housing innovation program 

11 under this section. The Secretary shall monitor and 

12 enforce compliance with the requirements of sub13 paragraph (A) on an annual basis. 

14 ‘‘(3) RETAINED PROVISIONS.—Each agency 

15 that is approved to carry out one of the two priority 

16 strategies identified in subsection (d)(2) shall comply 

17 with all provisions of this Act except those that are 

18 necessary to carry out one of such two priority strat19 egies. Notwithstanding any other provision of this 

20 section, families receiving assistance under this sec21 tion shall retain the same rights of judicial review of 

22 agency action as they would otherwise have had if 

23 the agency were not participating in the program, 

24 and each participating agency, including existing 


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1 MTW agencies, shall comply with the following pro2 visions of this Act: 

3 ‘‘(A) Subsections (a)(2)(A) and (b)(1) of 

4 section 16 (relating to targeting for new admis5 sions in the public housing and voucher pro6 grams). 

7 ‘‘(B) Section 2(b) (relating to tenant rep8 resentatives on the public housing agency board 

9 of directors). 

10 ‘‘(C) Section 3(b)(2) (relating to defini11 tions for the terms ‘low-income families’ and 

12 ‘very low-income families’). 

13 ‘‘(D) Section 5(A)(e) (relating to the for14 mation of and consultation with a resident advi15 sory board). 

16 ‘‘(E) Sections 6(f)(1) and 8(o)(8)(B) (re17 lating to compliance of units assisted with hous18 ing quality standards or other codes). 

19 ‘‘(F) Sections 6(c)(3), 6(c)(4)(i), and 

20 8(o)(6)(B) (relating to rights of public housing 

21 applicants and existing procedural rights for 

22 applicants under section 8(o)). 

23 ‘‘(G) Section 6(k) (relating to grievance 

24 procedures for public housing tenants) and 


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1 comparable procedural rights for families as2 sisted under section 8(o). 

3 ‘‘(H) Section 6(l) (relating to public hous4 ing lease requirements), except that for units 

5 assisted both with program funds and low-in6 come housing tax credits, the initial lease term 

7 may be less than 12 months if required to con8 form lease terms with such tax credit require9 ments. 

10 ‘‘(I) Section 7 (relating to designation of 

11 housing for elderly and disabled households), 

12 except that a participating agency may make 

13 such designations (at initial designation or upon 

14 renewal) for a term of up to 5 years if the 

15 agency includes in its annual plan under para16 graph (11) an analysis of the impact of such 

17 designations on affected households and such 

18 designation is subject to the program evalua19 tion. Any participating agency with a des20 ignated housing plan that was approved under 

21 the moving to work demonstration may con22 tinue to operate under the terms of such plan 

23 for a term of 5 years (with an option to renew 

24 on the same terms for an additional 5 years) if 

25 it includes in its annual plan an analysis of the 


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1 impact of such designations on affected house2 holds and is subject to evaluation under sub3 section (f). 

4 ‘‘(J) Subparagraphs (C) through (E) of 

5 section 8(o)(7) and section 8(o)(20) (relating to 

6 lease requirements and eviction protections for 

7 families assisted with tenant-based assistance). 

8 ‘‘(K) Section 8(o)(13)(B) (relating to a 

9 percentage limitation on project-based assist10 ance), except that for purposes of this subpara11 graph such section shall be applied by sub12 stituting ‘50 percent’ for ‘20 percent’, and all 

13 voucher funding that is used for non-tenant 

14 based assistance purposes shall count towards 

15 this calculation. 

16 ‘‘(L) Section 8(o)(13)(E) (relating to resi17 dent choice for tenants of units with project18 based vouchers), except with respect to— 

19 ‘‘(i) in the case of agencies partici20 pating in the moving to work demonstra21 tion, any housing assistance payment con22 tract entered into within 2 years after the 

23 enactment of this section; 

24 ‘‘(ii) project-based vouchers that re25 place public housing units; 


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1 ‘‘(iii) not more than 10 percent of the 

2 vouchers available to the participating 

3 agency upon entering the housing innova4 tion program under this section; and 

5 ‘‘(iv) any project-based voucher pro6 gram that is subject to evaluation under 

7 subsection (f). 

8 Notwithstanding the exceptions under this sub9 paragraph, an agency may not eliminate resi10 dent choice under section 8(o)(13)(E) for more 

11 than 25 percent of its authorized vouchers. 

12 ‘‘(M) Section 8(r) (relating to portability 

13 of voucher assistance), except that a partici14 pating agency may receive funding for port15 ability obligations under section 8(dd) in the 

16 same manner as other public housing agencies. 

17 ‘‘(N) Sections 8(ee) and 6(u) (relating to 

18 records, certification and confidentiality regard19 ing domestic violence). 

20 ‘‘(O) Subsections (a) and (b) of section 12 

21 (relating to payment of prevailing wages). 

22 ‘‘(P) Section 18 (relating to demolition and 

23 disposition of public housing). 

24 ‘‘(Q) Part 964 of title 24 of the Code of 

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1 pation and tenant opportunities in public hous2 ing). 

3 ‘‘(4) RENTS AND REQUIREMENTS FOR CONTIN4 UED OCCUPANCY OR PARTICIPATION.— 

5 ‘‘(A) BEFORE POLICY CHANGE.—Before 

6 adopting any policy pursuant to participation in 

7 the housing innovation program under this sec8 tion that would make a material change to the 

9 requirements of this Act regarding tenant rents 

10 or contributions, or conditions of continued oc11 cupancy or participation, a participating agency 

12 shall complete each of the following actions: 

13 ‘‘(i) The agency shall conduct an im14 pact analysis of the proposed policy on 

15 families the agency is assisting under the 

16 program under this section and on appli17 cants on the waiting list, including analysis 

18 of the incidence and severity of rent bur19 dens greater than 30 percent of adjusted 

20 income on households of various sizes and 

21 types and in various income tiers, that 

22 would result, if any, without application of 

23 the hardship provisions. The analysis with 

24 respect to applicants on the waiting list 

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1 vided by the applicable consolidated plan, 

2 information provided by the Secretary, and 

3 other generally available information. The 

4 proposed policy, including provisions for 

5 addressing hardship cases and transition 

6 provisions that mitigate the impact of any 

7 rent increases or changes in the conditions 

8 of continued occupancy or participation, 

9 and data from this analysis shall be made 

10 available for public inspection and copying, 

11 on request, and for access through the 

12 Internet, for at least 60 days in advance of 

13 the public meeting described in clause (ii). 

14 ‘‘(ii) The agency shall hold a public 

15 meeting regarding the proposed change, in16 cluding the hardship provisions, which may 

17 be combined with a public meeting on the 

18 draft annual plan under paragraph (11) or 

19 the annual report under subsection (h)(2). 

20 ‘‘(iii) The board of directors or other 

21 similar governing body of the agency shall 

22 approve the change in public session. 

23 ‘‘(iv) The agency shall obtain approval 

24 from the Secretary of the annual plan or 

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1 prove a plan or amendment containing a 

2 material change to the requirements of this 

3 Act regarding tenant rents or contribu4 tions, or conditions of continued occupancy 

5 or participation, only if such policy is in6 cluded as part of the national evaluation. 

7 ‘‘(B) AFTER POLICY CHANGE.—After 

8 adopting a policy described in subparagraph 

9 (A), a program agency shall complete each of 

10 the following actions: 

11 ‘‘(i) The agency shall provide ade12 quate notice to residents, which shall in13 clude a description of the changes in the 

14 public housing lease or participation agree15 ment that may be required and of the 

16 hardship or transition protections offered. 

17 ‘‘(ii) In the case of any additional re18 quirements for continued occupancy or 

19 participation, the agency shall execute a 

20 lease addendum or participation agreement 

21 specifying the requirements applicable to 

22 both the resident and the agency. A resi23 dent may bring a civil action to enforce 

24 commitments of the agency made through 


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1 the lease addendum or participation agree2 ment. 

3 ‘‘(iii) The agency shall reassess rent, 

4 subsidy level, and policies on program par5 ticipation no less often than every two 

6 years, which shall include preparing a re7 vised impact analysis, and make available 

8 for public inspection and copying, on re9 quest, and for access through the Internet, 

10 the results of such reassessment and im11 pact analysis. The requirement under this 

12 clause may be met by sufficiently detailed 

13 interim reports, if any, by the national 

14 evaluating entity. 

15 ‘‘(iv) The agency shall include in the 

16 annual report under subsection (h)(2) in17 formation sufficient to describe any hard18 ship requests, including the number and 

19 types of requests made, granted, and de20 nied, the use of transition rules, and ad21 verse impacts resulting from changes in 

22 rent or continued occupancy policies, in23 cluding actions taken by the agency to 

24 mitigate such impacts and impacts on fam25 ilies no longer assisted under the program. 


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1 ‘‘(C) APPLICABILITY TO EXISTING MTW

2 AGENCIES.—An existing MTW agency that, be3 fore the date of the enactment of this section, 

4 implemented material changes to the require5 ments of this Act regarding tenant rents or 

6 contributions, or conditions of continued occu7 pancy or participation, as part of the moving to 

8 work demonstration shall not be subject to sub9 paragraph (A) with regard to such previously 

10 implemented changes, but shall comply with the 

11 requirements of subparagraph (B)(ii) and pro12 vide the evaluation and impact analysis required 

13 by subparagraph (B)(iii) by the end of the sec14 ond agency fiscal year ending after such date of 

15 enactment. 

16 ‘‘(5) PROHIBITION AGAINST DECREASE IN PRO17 GRAM FUNDS.—The amount of program funds a 

18 participating agency receives shall not be diminished 

19 by its participation in the housing innovation pro20 gram under this section. 

21 ‘‘(6) RENT BURDEN.—A participating agency 

22 may not adopt rent policies that result in rents that 

23 are not affordable to assisted families. 

24 ‘‘(7) TIME LIMITS.—A participating agency 

25 may implement time limits on the term of housing 


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1 assistance received by families under the program 

2 only for families who— 

3 ‘‘(A) are gainfully employed and have been 

4 employed for at least 3 years; and 

5 ‘‘(B) have earned income of at least 150 

6 percent of the poverty level for a family of the 

7 comparable size. 

8 ‘‘(8) EMPLOYMENT CONDITIONS.—A partici9 pating agency may condition the receipt of housing 

10 assistance by families under the program on the em11 ployment status of one or more families members 

12 only if the agency— 

13 ‘‘(A) permits compliance with a standard 

14 of not more than 20 hours per week in quali15 fying work activity and permits compliance 

16 based on attendance in a school or other insti17 tution in pursuit of a diploma or graduate 

18 equivalency diploma; 

19 ‘‘(B) establishes reasonable hardship ex20 emptions; and 

21 ‘‘(C) suspends enforcement of such condi22 tion if the unemployment rate in the area 

23 served by the agency exceeds such level as the 

24 Secretary shall establish. 


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1 ‘‘(9) SUBMISSION OF INFORMATION.—As part 

2 of the annual report required under subsection 

3 (h)(2), each participating agency shall submit infor4 mation annually to the Secretary regarding families 

5 assisted under the program of the agency and com6 ply with any other data submissions required by the 

7 Secretary for purposes of evaluation of the program 

8 under this section. 

9 ‘‘(10) PUBLIC AND RESIDENT PARTICIPA10 TION.—Each participating agency shall provide op11 portunities for resident and public participation in 

12 the annual plan under paragraph (11), as follows: 

13 ‘‘(A) NOTICE TO RESIDENTS.— 

14 ‘‘(i) NOTICE.—Each year, the agency 

15 shall provide notice to the low-income fam16 ilies it serves under the programs author17 ized by this section as to the impact of 

18 proposed policy changes and program ini19 tiatives and of the schedule of resident ad20 visory board and public meetings for the 

21 annual plan. 

22 ‘‘(ii) MEETING.—The agency shall 

23 hold at least one meeting with the resident 

24 advisory board (including representatives 


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1 of recipients of assistance under section 8) 

2 to review the annual plan for each year. 

3 ‘‘(B) PUBLIC MEETING.—With respect to 

4 each annual plan, the agency shall hold at least 

5 one annual public meeting to obtain comments 

6 on the plan, which may be combined with a 

7 meeting to review the annual report. In the case 

8 of any agency that administers, in the aggre9 gate, more than 15,000 public housing units 

10 and vouchers, or that operates in more than one 

11 county, the agency shall hold additional meet12 ings in locations that promote attendance by 

13 residents and other stakeholders. 

14 ‘‘(C) PUBLIC AVAILABILITY.—Before adop15 tion of any annual plan, and not less than 30 

16 days before the public meeting required under 

17 subparagraph (A)(ii) with respect to the plan, 

18 the agency shall make the proposed annual plan 

19 available for public inspection and copying, on 

20 request, and for access through the Internet. 

21 The annual plan shall be made available for 

22 public inspection not less than 30 days before 

23 approval by the board of directors (or other 

24 similar governing body) of the agency and shall 

25 remain publicly available. 


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1 ‘‘(D) BOARD APPROVAL.—Before submit2 ting an annual plan or annual report to the 

3 Secretary, the plan or report, as applicable, 

4 shall be approved in a public meeting by the 

5 board of directors or other governing body of 

6 the agency. 

7 ‘‘(11) ANNUAL PLAN.— 

8 ‘‘(A) REQUIREMENT.—For each year that 

9 a participating agency participates in the hous10 ing innovation program under this section, the 

11 agency shall submit to the Secretary, in lieu of 

12 all other planning requirements, an annual plan 

13 under this paragraph. 

14 ‘‘(B) CONTENTS.—Each annual plan shall 

15 include the following information: 

16 ‘‘(i) A list and description of all pro17 gram initiatives and generally applicable 

18 policy changes, including references to af19 fected provisions of law or the imple20 menting regulations affected. 

21 ‘‘(ii) A description and comparison of 

22 changes under the housing innovation pro23 gram of the agency from the plan for such 

24 program for the preceding year. 


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1 ‘‘(iii) A description of property rede2 velopment or portfolio repositioning strate3 gies and proposed changes in policies or 

4 uses of funds required to implement such 

5 strategies. 

6 ‘‘(iv) Documentation of public and 

7 resident participation sufficient to comply 

8 with the requirements under paragraphs 

9 (4) and (10), including a copy of any rec10 ommendations submitted in writing by the 

11 resident advisory board of the agency and 

12 members of the public, a summary of com13 ments, and a description of the manner in 

14 which the recommendations were ad15 dressed. 

16 ‘‘(v) Certifications by the agency 

17 that— 

18 ‘‘(I) the annual plan will be car19 ried out in conformity with title VI of 

20 the Civil Rights Act of 1964, the Fair 

21 Housing Act, section 504 of the Reha22 bilitation Act of 1973, title II of the 

23 Americans with Disabilities Act of 

24 1990, and the rules, standards, and 

25 policies in the approved plan; 


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1 ‘‘(II) the agency will affirmatively 

2 further fair housing; and 

3 ‘‘(III) the agency has complied 

4 and will continue to comply with its 

5 obligations under the national evalua6 tion. 

7 ‘‘(vi) A description of the agency’s 

8 local asset management strategy for public 

9 housing properties, which shall be in lieu 

10 of any other asset management, project 

11 based management or accounting, or other 

12 system of allocating resources and costs to 

13 participating agency assets or cost centers 

14 that the Secretary may otherwise impose 

15 under this Act. 

16 ‘‘(C) CHANGES.—If the agency proposes to 

17 make material changes in policies or initiatives 

18 in the plan during the year covered by the plan, 

19 the agency shall consult with the resident advi20 sory board for the agency established pursuant 

21 to section 5A(e) and the public regarding such 

22 changes before their adoption. 

23 ‘‘(D) APPROVAL PROCESS.— 

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1 nual plan submitted to the Secretary with2 in 45 days after such submission. The Sec3 retary, directly or through the public hous4 ing agency, shall make information relating 

5 to such approval or disapproval available to 

6 the chairperson of the Resident Advisory 

7 Board of the public housing agency. 

8 ‘‘(ii) STANDARDS FOR DIS9 APPROVAL.—The Secretary may dis10 approve a plan only if— 

11 ‘‘(I) the Secretary reasonably de12 termines, based on information con13 tained in the annual plan or annual 

14 report, that the agency is not in com15 pliance with the requirements of this 

16 section; 

17 ‘‘(II) the annual plan or most re18 cent annual report is not consistent 

19 with other reliable information avail20 able to the Secretary; or 

21 ‘‘(III) the annual plan or annual 

22 report or the agency’s activities under 

23 the program are not otherwise in ac24 cordance with applicable law or with 

25 the agency’s application to participate 


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1 in the program pursuant to this sec2 tion. 

3 ‘‘(iii) FAILURE TO DISAPPROVE.—If a 

4 submitted plan is not disapproved within 

5 45 days after submission, the plan shall be 

6 considered to be approved for purposes of 

7 this section. The preceding sentence shall 

8 not preclude judicial review regarding such 

9 compliance pursuant to chapter 7 of title 

10 5, United States Code, or an action re11 garding such compliance under section 

12 1979 of the Revised Statutes of the United 

13 States (42 U.S.C. 1983). 

14 ‘‘(f) EVALUATION OF PERFORMANCE.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall con16 duct detailed evaluations of all public housing agen17 cies participating in the program under this sec18 tion— 

19 ‘‘(A) to determine the level of success of 

20 each public housing agency in achieving the 

21 goals and objectives of the application to par22 ticipate in the program; 

23 ‘‘(B) to determine the level of success of 

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1 novative strategies identified pursuant to sub2 section (b)(1); and 

3 ‘‘(C) to identify program models that can 

4 be replicated by other agencies to achieve such 

5 success. 

6 ‘‘(2) EVALUATION METHODOLOGY.—Evalua7 tions under this subsection shall be conducted uti8 lizing rigorous research methodology which shall in9 corporate, where appropriate and to the extent fund10 ing is available, the following: 

11 ‘‘(A) Random assignment of families to ex12 perimental and control groups. 

13 ‘‘(B) Comparisons of alternative strategies 

14 for advancing common goals. 

15 ‘‘(C) An examination of the costs, outputs, 

16 and outcomes of tested strategies. 

17 ‘‘(D) A process evaluation that examines 

18 the challenges faced in implementing tested 

19 strategies and how those challenges were over20 come. 

21 ‘‘(E) A qualitative examination of the im22 pacts of tested strategies on affected families, 

23 including families on agency waiting lists. 

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1 tions of the jurisdiction in which the agency 

2 works. 

3 ‘‘(G) Appropriate sensitivity to the costs 

4 that evaluation places on participating agencies, 

5 including a recognition that smaller agencies 

6 may have more difficulty than larger agencies 

7 in responding to data requests. 

8 ‘‘(3) ADVISORY COUNCIL.—The Secretary shall 

9 establish an Advisory Council to provide input on 

10 the policies and strategies to be tested in evaluations 

11 under this subsection, data collection protocols, and 

12 other matters related to the success of the evalua13 tion, and to assist the evaluating entity and the Sec14 retary in interpreting the findings and formulating 

15 recommendations to the Congress to be included in 

16 the final report. The Secretary may also establish a 

17 separate Technical Advisory Group to provide input 

18 on technical issues associated with the evaluation. 

19 ‘‘(4) REPORTS.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 submit three reports to the Congress, as pro22 vided in subparagraph (B), evaluating the pro23 grams of all public housing agencies partici24 pating in the program under this section and all 

25 agencies participating in the moving to work 


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1 demonstration. Each such report shall include 

2 findings and recommendations for any appro3 priate legislative action. 

4 ‘‘(B) TIMING.—The reports under this 

5 paragraph shall include— 

6 ‘‘(i) an initial report, which shall be 

7 submitted before the expiration of the 2- 

8 year period beginning on the date on which 

9 additional agencies are approved for par10 ticipation pursuant to subsection (d); 

11 ‘‘(ii) an interim report, which shall be 

12 submitted before the expiration of the 4- 

13 year period beginning on such date of ap14 proval; and 

15 ‘‘(iii) a final report, which shall be 

16 submitted before the expiration of the 10- 

17 year period beginning on the date of the 

18 enactment of the Section 8 Voucher Re19 form Act of 2009. 

20 ‘‘(5) EVALUATING ENTITY.—The Secretary may 

21 contract out the responsibilities under this para22 graphs (1) and (2) to an independent entity that is 

23 qualified to perform such responsibilities. 

24 ‘‘(6) PERFORMANCE MEASURES.—The Sec25 retary or the evaluating entity, as applicable, shall 


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1 establish performance measures, which may in2 clude— 

3 ‘‘(A) a baseline performance level against 

4 which program activities may be evaluated; and 

5 ‘‘(B) performance measures for each of the 

6 five purposes identified in paragraphs (1) 

7 through (5) of subsection (a). 

8 ‘‘(g) IMPACT OF POLICY ON FAMILIES BEING AS9 SISTED.— 

10 ‘‘(1) DISCONTINUANCE OR MODIFICATION OF

11 POLICY.—If an evaluation of an agency pursuant to 

12 subsection (f)(1)(A) includes evidence that a policy 

13 adopted by an agency is or has been harmful to fam14 ilies assisted by the agency, the Secretary may, after 

15 the publication of either the initial or the interim re16 port pursuant to subsection (f)(4)(B), require such 

17 agency to discontinue such policy or to take appro18 priate actions to modify such policy to ameliorate 

19 such harm. 

20 ‘‘(2) DETERMINATION.—The Secretary may not 

21 take such action unless the Secretary has made a 

22 determination that such policy is causing or has 

23 caused measurable harm to families currently or pre24 viously assisted, based on a reduction in the overall 

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1 cific types of families losing their housing assistance, 

2 a reduction in the number of affordable rental hous3 ing units operated by the agency, a reduction in the 

4 effective targeting of housing assistance to extremely 

5 low- or very low-income families, or a combination of 

6 such factors. 

7 ‘‘(3) ADVICE AND OPPORTUNITY TO CON8 TEST.—Before taking such action, the Secretary 

9 shall advise the agency and give the agency a fair 

10 opportunity to contest such determination or action. 

11 If an agency contests such a determination or ac12 tion, the Secretary shall provide an opportunity for 

13 interested parties to submit additional relevant evi14 dence. 

15 ‘‘(h) RECORDKEEPING, REPORTS, AND AUDITS.— 

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

17 agency participating in the program under this sec18 tion shall keep such records as the Secretary may 

19 prescribe as reasonably necessary to disclose the 

20 amounts and the disposition of amounts under the 

21 program, to ensure compliance with the require22 ments of this section, and to measure performance. 

23 ‘‘(2) REPORTS.—In lieu of all other reporting 

24 requirements, each such agency participating in the 

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1 port in a form and at a time specified by the Sec2 retary. Each annual report shall include the fol3 lowing information: 

4 ‘‘(A) A description, including an annual 

5 consolidated financial report, of the sources and 

6 uses of funds of the agency under the program, 

7 which shall account separately for funds made 

8 available under section 8 and subsections (d) 

9 and (e) of section 9, and shall compare the 

10 agency’s actions under the program with its an11 nual plan for the year. 

12 ‘‘(B) An annual audit that complies with 

13 the requirements of Circular A–133 of the Of14 fice of Management and Budget, including the 

15 OMB Compliance Supplement. 

16 ‘‘(C) A description of each hardship excep17 tion requested and granted or denied, and of 

18 the use of any transition rules. 

19 ‘‘(D) Documentation of public and resident 

20 participation sufficient to comply with the re21 quirements under paragraph (7). 

22 ‘‘(E) A comparison of income and the sizes 

23 and types of families assisted by the agency 

24 under the program compared to those assisted 

25 by the agency in the base year. 


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1 ‘‘(F) Every two years, an evaluation of 

2 rent policies, subsidy level policies, and policies 

3 on program participation. 

4 ‘‘(G) A description of any ongoing local 

5 evaluations and the results of any local evalua6 tions completed during the year. 

7 ‘‘(3) ACCESS TO DOCUMENTS BY SECRETARY.— 

8 The Secretary shall have access for the purpose of 

9 audit and examination to any books, documents, pa10 pers, and records that are pertinent to assistance in 

11 connection with, and the requirements of, this sec12 tion. 

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. 

21 ‘‘(5) REPORTS REGARDING EVALUATIONS.—The 

22 Secretary shall require each public housing agency 

23 participating in the program under this section to 

24 submit to the Secretary such information as the Sec25 retary considers appropriate to permit the Secretary 


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1 to evaluate (pursuant to subsection (f)) the perform2 ance and success of the agency in achieving the pur3 poses of the demonstration. 

4 ‘‘(i) ADDITIONAL PROGRAM AGENCIES.—In partici5 pating in the program under the terms of this subsection, 

6 the public housing agencies designated for such participa7 tion shall be subject to the requirements of this section, 

8 and the additional following requirements: 

9 ‘‘(1) APPLICABILITY OF CERTAIN EXISTING

10 PROVISIONS.—Such agencies shall be subject to the 

11 provisions of— 

12 ‘‘(A) subsections (a) and (b) of section 3; 

13 and 

14 ‘‘(B) section 8(o), except for paragraph 

15 (11) and except as the requirements of section 

16 8(o) are modified by subsection (e)(3) of this 

17 section. 

18 ‘‘(2) NO TIME LIMITS.—Such agencies may not 

19 impose time limits on the term of housing assistance 

20 received by families under the program. 

21 ‘‘(3) NO EMPLOYMENT CONDITIONS.—Such 

22 agencies may not condition the receipt of housing as23 sistance by families under the program on the em24 ployment status of one or more family members. 

25 ‘‘(4) ONE-FOR-ONE REPLACEMENT.— 


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1 ‘‘(A) CONDITIONS ON DEMOLITION.—Such 

2 agencies may not demolish or dispose of any 

3 dwelling unit of public housing operated or ad4 ministered by such agency (including any un5 inhabitable unit and any unit previously ap6 proved for demolition) except pursuant to a 

7 plan for replacement of such units in accord8 ance with, and approved by the Secretary of 

9 Housing and Urban Development pursuant to, 

10 subparagraph (B). 

11 ‘‘(B) PLAN REQUIREMENTS.—The Sec12 retary may not approve a plan that provides for 

13 demolition or disposition of any dwelling unit of 

14 public housing referred to in subparagraph (A) 

15 unless— 

16 ‘‘(i) such plan provides for outreach to 

17 public housing agency residents in accord18 ance with paragraph (5); 

19 ‘‘(ii) not later than 60 days before the 

20 date of the approval of such plan, such 

21 agency has convened and conducted a pub22 lic hearing regarding the demolition or dis23 position proposed in the plan; 

24 ‘‘(iii) such plan provides that for each 

25 such dwelling unit demolished or disposed 


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1 of, such public housing agency will provide 

2 an additional dwelling unit through— 

3 ‘‘(I) the acquisition or develop4 ment of additional public housing 

5 dwelling units; or 

6 ‘‘(II) the acquisition, develop7 ment, or contracting (including 

8 through project-based assistance) of 

9 additional dwelling units that are sub10 ject to requirements regarding eligi11 bility for initial or continued occu12 pancy, tenant contribution toward 

13 rent, and long-term affordability re14 strictions which are comparable to 

15 public housing units, except that no 

16 household may be prevented from oc17 cupying a replacement dwelling unit 

18 provided pursuant to clause (iii) ex19 cept to the extent specifically provided 

20 by any other provision of Federal law 

21 (including subtitle F of title V of the 

22 Quality Housing and Work Responsi23 bility Act of 1998 (42 U.S.C. 13661 

24 et seq.; relating to safety and security 

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1 title D of title VI of the Housing and 

2 Community Development Act of 1992 

3 (42 U.S.C. 13611 et seq.; relating to 

4 preferences for elderly and disabled 

5 residents), and section 16(f) of this 

6 Act (42 U.S.C. 1437n(f)); relating to 

7 ineligibility of persons convicted of 

8 methamphetamine offenses); 

9 ‘‘(iv) such plan provides for a right, 

10 and implementation of such right, to occu11 pancy of additional dwelling units provided 

12 in accordance with clause (iii), for house13 holds who, as of the time that dwelling 

14 units demolished or disposed of were va15 cated to provide for such demolition or dis16 position, were occupying such dwelling 

17 units; 

18 ‘‘(v) such plan provides that the pro19 posed demolition or disposition and reloca20 tion will be carried out in a manner that 

21 affirmatively furthers fair housing, as de22 scribed in subsection (e) of section 808 of 

23 the Civil Rights Act of 1968; and 

24 ‘‘(vi) to the extent that such plan pro25 vides for the provision of replacement or 


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1 additional dwelling units, or redevelop2 ment, in phases over time, such plan pro3 vides that the ratio of dwelling units de4 scribed in subclauses (I) and (II) of clause 

5 (iii) that are provided in any such single 

6 phase to the total number of dwelling units 

7 provided in such phase is not less than the 

8 ratio of the aggregate number of such 

9 dwelling units provided under the plan to 

10 the total number of dwelling units provided 

11 under the plan. 

12 ‘‘(C) MONITORING.—The Secretary shall 

13 provide for the appropriate field offices of the 

14 Department to monitor and supervise the en15 forcement of this paragraph and plans approved 

16 under this paragraph and to consult, regarding 

17 such monitoring and enforcement, with resident 

18 councils of, and resident of public housing oper19 ated or administered by, the agency. 

20 ‘‘(5) COMPREHENSIVE OUTREACH PLAN.—No 

21 program funds of such agencies may be use to de22 molish or dispose of any public housing dwelling 

23 units except in accordance with a comprehensive 

24 outreach plan for such activities, developed by the 


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1 agency in conjunction with the residents of the pub2 lic housing agency, as follows: 

3 ‘‘(A) The plan shall be developed by the 

4 agency and a resident task force, which may in5 clude members of the Resident Council, but 

6 may not be limited to such members, and which 

7 shall represent all segments of the population of 

8 residents of the agency, including single parent9 headed households, the elderly, young employed 

10 and unemployed adults, teenage youth, and dis11 abled persons. 

12 ‘‘(B) The votes and agreements regarding 

13 the plan shall involve— 

14 ‘‘(i) in the case of any public housing 

15 agency that administers 250 or fewer pub16 lic housing dwelling units, not less than 10 

17 percent of affected residents; and 

18 ‘‘(ii) in the case of any public housing 

19 agency that administers more than 250 

20 public housing dwelling units, not less than 

21 25 affected residents. 

22 ‘‘(C) The plan shall provide for and de23 scribe outreach efforts to inform residents of 

24 the program under this subsection, including a 

25 door-to-door information program, monthly 


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1 newsletters to each resident household, monthly 

2 meetings dedicated solely to every aspect of the 

3 proposed development, including redevelopment 

4 factors, which shall include the one-for-one re5 placement requirement under paragraph (4), 

6 resident rights to return, the requirements of 

7 the program under this subsection, new resident 

8 support and community services to be provided, 

9 opportunities for participation in architectural 

10 design, and employment opportunities for resi11 dents, which shall make available at least 30 

12 percent of the total hours worked at all such 

13 employment, and shall also make available at 

14 least 25 percent of unskilled jobs in demolition 

15 activities and 25 percent of unskilled jobs in 

16 construction activities related to the redevelop17 ment project, including job training, apprentice18 ships, union membership assistance. 

19 ‘‘(D) The plan shall provide for regularly 

20 scheduled monthly meeting updates and a sys21 tem for filing complaints about any aspect of 

22 the redevelopment process. 

23 ‘‘(j) DEFINITIONS.—For purposes of this section, the 

24 following definitions shall apply: 


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1 ‘‘(1) EXISTING MTW AGENCY.—The term ‘exist2 ing MTW agency’ means a public housing agency 

3 that as of the date of the enactment of the Section 

4 8 Voucher Reform Act of 2009 has an existing 

5 agreement with the Secretary pursuant to the mov6 ing to work demonstration, or is authorized to enter 

7 into such an agreement under section 230 of the 

8 Transportation, Housing and Urban Development, 

9 and Related Agencies Appropriations Act, 2008 

10 (Public Law 110–161; 121 Stat. 2438) or section 

11 236 of the Transportation, Housing and Urban De12 velopment, and Related Agencies Appropriations 

13 Act, 2009 (Division I of Public Law 111–8). 

14 ‘‘(2) BASE YEAR.—The term ‘base year’ means, 

15 with respect to a participating agency, the agency 

16 fiscal year or calendar year, as appropriate, most re17 cently completed prior to selection and approval for 

18 participation in the housing innovation program 

19 under this section. 

20 ‘‘(3) MOVING TO WORK DEMONSTRATION.—The 

21 term ‘moving to work demonstration’ means the 

22 moving to work demonstration program under sec23 tion 204 of the Departments of Veterans Affairs and 

24 Housing and Urban Development, and Independent 


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1 Agencies Appropriations Act, 1996 (42 U.S.C. 1437f 

2 note). 

3 ‘‘(4) PARTICIPATING AGENCIES.—The term 

4 ‘participating agencies’ means public housing agen5 cies designated and approved for participation, and 

6 participating, in the housing innovation program 

7 under this section. 

8 ‘‘(5) PROGRAM FUNDS.—The term ‘program 

9 funds’ means, with respect to a participating agency, 

10 any amounts that the agency is authorized, pursuant 

11 to subsection (e)(1), to use to carry out the housing 

12 innovation program under this section of the agency. 

13 ‘‘(6) RESIDENTS.—The term ‘residents’ means, 

14 with respect to a public housing agency, tenants of 

15 public housing of the agency and participants in the 

16 voucher or other housing assistance programs of the 

17 agency funded under section 8(o), or tenants of 

18 other units owned by the agency and assisted under 

19 this section. 

20 ‘‘(k) RESIDENT TECHNICAL ASSISTANCE.— 

21 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated for each of 

23 fiscal years 2010 through 2014 $10,000,000, for 

24 providing capacity building and technical assistance 

25 to enhance the capabilities of low-income families asVerDate Nov 24 2008 01:18 Jul 01, 2009 Jkt 079200 PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 E:\BILLS\H3045.IH H3045

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1 sisted or eligible for assistance under the program 

2 under this section to participate in the process for 

3 establishment and revision of annual plans under 

4 this section for participating agencies, including re5 view and comment on impact analyses and demoli6 tion or disposition proposals. 

7 ‘‘(2) CRITERIA FOR AWARD OF FUNDS.—The 

8 Secretary shall publish the criteria to be used to 

9 award funds on a competitive basis, in an amount 

10 appropriate to the number of households affected by 

11 the program of the participating agency or agencies 

12 that such participating agency assists, to local, re13 gional, State, or national organizations that— 

14 ‘‘(A)(i) have members who are predomi15 nantly low-income; 

16 ‘‘(ii) have low-income individuals on their 

17 boards of directors; or 

18 ‘‘(iii) directly work with or represent low19 income individuals; 

20 ‘‘(B) have the legal, policy, and develop21 ment expertise to provide such assistance or will 

22 subcontract for such services; and 

23 ‘‘(C) have a demonstrated capacity to man24 age similar grants. 

25 ‘‘(3) PUBLIC HOUSING AGENCIES.— 


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1 ‘‘(A) INELIGIBILITY; NONLIABILITY.—Pub2 lic housing agencies shall not be eligible to re3 ceive funds under this subsection, and shall not 

4 be liable for the action of any grantee. 

5 ‘‘(B) COOPERATION WITH GRANTEES.— 

6 Public housing agencies participating in the 

7 program under this section shall cooperate with 

8 grantees receiving technical assistance funds 

9 under this subsection, to assist such grantees to 

10 reach families assisted under the program. 

11 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS FOR

12 EVALUATIONS.—There is authorized to be appropriated 

13 $15,000,000 to the Department of Housing and Urban 

14 Development for the purpose of conducting the evaluations 

15 required under subsection (f)(1).’’. 

16 (b) GAO REPORT.—Not later than 48 months after 

17 the date of the enactment of this Act, the Comptroller 

18 General of the United States shall submit a report to the 

19 Congress on the extent to which the public housing agen20 cies participating in the housing innovation program 

21 under section 37 of the United States Housing Act of 

22 1937 are meeting the goals and purposes of such program, 

23 as identified in subsection (a) of such section 37. 


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1 SEC. 24. EFFECTIVE DATE. 

2 Except as otherwise specifically provided in this 

3 Act— 

4 (1) sections 3, 4, 6, and 7 of this Act and the 

5 amendments made by such sections shall take effect 

6 on January 1, 2010, except that the Secretary may 

7 delay such effective date for any one or more of sec8 tions 3, 4, and 7 to January 1, 2011, upon a deter9 mination by the Secretary that such extension is 

10 necessary to provide program participants sufficient 

11 time to make adjustments to the changes made by 

12 such sections; and 

13 (2) all other provisions of this Act and the 

14 amendments made by this Act shall take effect upon 

15 the issuance by the Secretary of implementing regu16 lations, as appropriate, or by notice, which shall be 

17 issued not later than the expiration of the 12-month 

18 period beginning upon the date of the enactment of 

19 this Act. 

Æ 


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