`[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3045 Reported in House (RH)]

                                                 Union Calendar No. 157
111th CONGRESS
  1st Session
                                H. R. 3045

                          [Report No. 111-277]

  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

                           September 30, 2009

     Additional sponsors: Ms. Lee of California, Mr. Hinojosa, Mr. 
                       Pierluisi, and Mr. Israel

                           September 30, 2009

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               25, 2009]





_______________________________________________________________________

                                 A BILL


 
  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.


 


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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Section 8 Voucher 
Reform Act of 2009''.
    (b) Table of Contents.--The table of contents for 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.
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. Prohibition on firearms restrictions in federally assisted 
                            housing.
Sec. 16. Enhanced vouchers.
Sec. 17. Demonstration program waiver authority.
Sec. 18. Authorization of appropriations.
Sec. 19. Agency authority for utility payments in certain 
                            circumstances.
Sec. 20. Utility data.
Sec. 21. Project-based preservation vouchers.
Sec. 22. Effect of foreclosure on section 8 tenancies.
Sec. 23. Study to identify obstacles to using vouchers in federally 
                            subsidized housing projects.
Sec. 24. Interagency Council on Homelessness.
Sec. 25. Study of effects of section 8 program on HUD budget and 
                            programs.
Sec. 26. Housing innovation program.
Sec. 27. Study of use of income databases to reduce subsidy errors.
Sec. 28. Acceptable identification requirement.
Sec. 29. Effective date.

SEC. 2. INSPECTION OF DWELLING UNITS.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following new subparagraph:
                    ``(A) Initial inspection.--
                            ``(i) In general.--For each dwelling unit 
                        for which a housing assistance payment contract 
                        is established under this subsection, the 
                        public housing agency (or other entity pursuant 
                        to paragraph (11)) shall inspect the unit 
                        before any assistance payment is made to 
                        determine whether the dwelling unit meets the 
                        housing quality standards under subparagraph 
                        (B), except as provided in clause (ii) or (iii) 
                        of this subparagraph.
                            ``(ii) Correction of non-life threatening 
                        conditions.--In the case of any dwelling unit 
                        that is determined, pursuant to an inspection 
                        under clause (i), not to meet the housing 
                        quality standards under subparagraph (B), 
                        assistance payments may be made for the unit 
                        notwithstanding subparagraph (C) if failure to 
                        meet such standards is a result only of non-
                        life threatening conditions, as such conditions 
                        are established by the Secretary. A public 
                        housing agency making assistance payments 
                        pursuant to this clause for a dwelling unit 
                        shall, 30 days after the beginning of the 
                        period for which such payments are made, 
                        suspend any assistance payments for the unit if 
                        any deficiency resulting in noncompliance with 
                        the housing quality standards has not been 
                        corrected by such time, and may not resume such 
                        payments until each such deficiency has been 
                        corrected.
                            ``(iii) Use of alternative inspection 
                        method for interim period.--In the case of any 
                        property that within the previous 12 months has 
                        met the requirements of an inspection that 
                        qualifies as an alternative inspection method 
                        pursuant to subparagraph (E), a public housing 
                        agency may authorize occupancy before the 
                        inspection under clause (i) has been completed, 
                        and may make assistance payments retroactive to 
                        the beginning of the lease term after the unit 
                        has been determined pursuant to an inspection 
                        under clause (i) to meet the housing quality 
                        standards under subparagraph (B).'';
            (2) by redesignating subparagraph (E) as subparagraph (H); 
        and
            (3) by striking subparagraph (D) and inserting the 
        following new subparagraphs:
                    ``(D) Biennial inspections.--
                            ``(i) Requirement.--Each public housing 
                        agency providing assistance under this 
                        subsection (or other entity, as provided in 
                        paragraph (11)) shall, for each assisted 
                        dwelling unit, make inspections not less often 
                        than biennially during the term of the housing 
                        assistance payments contract for the unit to 
                        determine whether the unit is maintained in 
                        accordance with the requirements under 
                        subparagraph (A).
                            ``(ii) Use of alternative inspection 
                        method.--The requirement under clause (i) may 
                        be complied with by use of inspections that 
                        qualify as an alternative inspection method 
                        pursuant to subparagraph (E).
                            ``(iii) Records.--The agency (or other 
                        entity) shall retain the records of the 
                        inspection for a reasonable time and shall make 
                        the records available upon request to the 
                        Secretary, the Inspector General for the 
                        Department of Housing and Urban Development, 
                        and any auditor conducting an audit under 
                        section 5(h).
                    ``(E) Alternative inspection method.--An inspection 
                of a property shall qualify as an alternative 
                inspection method for purposes of this subparagraph 
                if--
                            ``(i) the inspection was conducted pursuant 
                        to requirements under a Federal, State, or 
                        local housing assistance program (including the 
                        HOME investment partnerships program under 
                        title II of the Cranston-Gonzalez National 
                        Affordable Housing Act (42 U.S.C. 12721 et 
                        seq.) and the low-income housing tax credit 
                        program under section 42 of the Internal 
                        Revenue Code of 1986); and
                            ``(ii) pursuant to such inspection, the 
                        property was determined to meet the standards 
                        or requirements regarding housing quality or 
                        safety applicable to units assisted under such 
                        program, and, if a non-Federal standard was 
                        used, the public housing agency has certified 
                        to the Secretary that such standards or 
                        requirements provide the same protection to 
                        occupants of dwelling units meeting such 
                        standards or requirements as, or greater 
                        protection than, the housing quality standards 
                        under subparagraph (B).
                    ``(F) Interim inspections.--Upon notification to 
                the public housing agency, by a family on whose behalf 
                tenant-based rental assistance is provided under this 
                subsection or by a government official, that the 
                dwelling unit for which such assistance is provided 
                does not comply with the housing quality standards 
                under subparagraph (B), the agency shall inspect the 
                dwelling unit--
                            ``(i) in the case of any condition that is 
                        life-threatening, within 24 hours after receipt 
                        of such notice; and
                            ``(ii) in the case of any condition that is 
                        not life-threatening, within 15 days after 
                        receipt of such notice.
                    ``(G) Enforcement of housing quality standards.--
                            ``(i) Determination of noncompliance.--A 
                        dwelling unit that is covered by a housing 
                        assistance payments contract under this 
                        subsection shall be considered, for purposes of 
                        subparagraphs (D) and (F), to be in 
                        noncompliance with the housing quality 
                        standards under subparagraph (B) if--
                                    ``(I) the public housing agency or 
                                an inspector authorized by the State or 
                                unit of local government determines 
                                upon inspection of the unit that the 
                                unit fails to comply with such 
                                standards;
                                    ``(II) the agency or inspector 
                                notifies the owner of the unit in 
                                writing of such failure to comply; and
                                    ``(III) the failure to comply is 
                                not corrected--
                                            ``(aa) in the case of any 
                                        such failure that is a result 
                                        of life-threatening conditions, 
                                        within 24 hours after such 
                                        notice has been provided; and
                                            ``(bb) in the case of any 
                                        such failure that is a result 
                                        of non-life threatening 
                                        conditions, within 30 days 
                                        after such notice has been 
                                        provided or such other 
                                        reasonable longer period as the 
                                        public housing agency may 
                                        establish.
                            ``(ii) Withholding of assistance amounts 
                        during correction.--The public housing agency 
                        may withhold assistance amounts under this 
                        subsection with respect to a dwelling unit that 
                        does not comply with housing quality standards 
                        under subparagraph (B) as determined pursuant 
                        to an inspection conducted under subparagraph 
                        (D) or (F). If the unit is brought into 
                        compliance with such housing quality standards 
                        during the periods referred to in clause 
                        (i)(III), the public housing agency shall 
                        recommence assistance payments and may use any 
                        amounts withheld during the correction period 
                        to make assistance payments relating to the 
                        period during which payments were withheld.
                            ``(iii) Abatement of assistance amounts.--
                        The public housing agency shall abate all of 
                        the assistance amounts under this subsection 
                        with respect to a dwelling unit that is 
                        determined, pursuant to clause (i) of this 
                        subparagraph, to be in noncompliance with 
                        housing quality standards under subparagraph 
                        (B). Upon completion of repairs by the public 
                        housing agency or the owner sufficient so that 
                        the dwelling unit complies with such housing 
                        quality standards, the agency shall recommence 
                        payments under the housing assistance payments 
                        contract to the owner of the dwelling unit.
                            ``(iv) Use of abated assistance to pay for 
                        repairs.--
                                    ``(I) Authority.--The public 
                                housing agency may use such amounts 
                                abated to make repairs to the dwelling 
                                unit or to contract to have repairs 
                                made, except that a contract to make 
                                repairs may not be entered into with 
                                the inspector for the dwelling unit 
                                referred to in clause (i)(I).
                                    ``(II) Abated funds.--For purposes 
                                of this clause, abated amounts may 
                                include amounts withheld during the 
                                correction period described in clause 
                                (ii) of this subparagraph with respect 
                                to a dwelling unit that is subsequently 
                                determined under clause (i) to be in 
                                noncompliance with housing quality 
                                standards.
                                    ``(III) Limitation of liability of 
                                public housing agencies.--A public 
                                housing agency that uses its authority 
                                under this clause shall not, if the 
                                agency accomplishes the work through a 
                                contractor that is licensed, bonded, 
                                and insured in amounts and with 
                                coverage as required by the Secretary, 
                                be liable for any injury or damages 
                                that may result to persons or to any 
                                property owned by the tenant or owner.
                            ``(v) Notification.--If a public housing 
                        agency providing assistance under this 
                        subsection abates rental assistance payments 
                        pursuant to clause (iii) with respect to a 
                        dwelling unit, the agency shall, upon 
                        commencement of such abatement--
                                    ``(I) notify the tenant and the 
                                owner of the dwelling unit that--
                                            ``(aa) such abatement has 
                                        commenced; and
                                            ``(bb) if the dwelling unit 
                                        is not brought into compliance 
                                        with housing quality standards 
                                        within 60 days after the 
                                        effective date of the 
                                        determination of noncompliance 
                                        under clause (i) or such 
                                        reasonable longer period as the 
                                        agency may establish, the 
                                        tenant will have to move; and
                                    ``(II) issue the tenant the 
                                necessary forms to allow the tenant to 
                                move to another dwelling unit and 
                                transfer the rental assistance to that 
                                unit.
                            ``(vi) Protection of tenants.--An owner of 
                        a dwelling unit may not terminate the tenancy 
                        of any tenant because of the withholding or 
                        abatement of assistance pursuant to this 
                        subparagraph. During the period that assistance 
                        is abated pursuant to this subparagraph, the 
                        tenant may terminate the tenancy by notifying 
                        the owner.
                            ``(vii) Termination of lease or assistance 
                        payments contract.--If assistance amounts under 
                        this section for a dwelling unit are abated 
                        pursuant to clause (iii) and the owner does not 
                        correct the noncompliance within 60 days after 
                        the effective date of the determination of 
                        noncompliance under clause (i), or such other 
                        reasonable longer period as the public housing 
                        agency may establish, and the agency does not 
                        use its authority under clause (iv), the agency 
                        shall terminate the housing assistance payments 
                        contract for the dwelling unit.
                            ``(viii) Relocation.--
                                    ``(I) Lease of new unit.--The 
                                agency shall provide the family 
                                residing in such a dwelling unit a 
                                period of 90 days or such longer period 
                                as is necessary to lease a new unit, 
                                beginning upon termination of the 
                                contract, to lease a new residence with 
                                tenant-based rental assistance under 
                                this section.
                                    ``(II) Availability of public 
                                housing units.--If the family is unable 
                                to lease such a new residence during 
                                such period, the public housing agency 
                                shall, at the option of the family, 
                                provide such family a preference for 
                                occupancy in a dwelling unit of public 
                                housing that is owned or operated by 
                                the agency that first becomes available 
                                for occupancy after the expiration of 
                                such period.
                                    ``(III) Assistance in finding 
                                unit.--The public housing agency shall 
                                provide reasonable assistance to the 
                                family in finding a new residence, 
                                including use of up to two months of 
                                any assistance amounts abated pursuant 
                                to clause (iii) for costs directly 
                                associated with relocation of the 
                                family to a new residence, which may 
                                include moving expenses and security 
                                deposits. The agency may require that a 
                                family receiving assistance for a 
                                security deposit shall remit, to the 
                                extent of such assistance, the amount 
                                of any security deposit refunds made by 
                                the owner of the dwelling unit for 
                                which the lease was terminated.
                            ``(ix) Tenant-caused damages.--If a public 
                        housing agency determines that any damage to a 
                        dwelling unit that results in a failure of the 
                        dwelling unit to comply with housing quality 
                        standards under subparagraph (B), other than 
                        any damage resulting from ordinary use, was 
                        caused by the tenant, any member of the 
                        tenant's household, or any guest or other 
                        person under the tenant's control, the agency 
                        may waive the applicability of this 
                        subparagraph, except that this clause shall not 
                        exonerate a tenant from any liability otherwise 
                        existing under applicable law for damages to 
                        the premises caused by such tenant.
                            ``(x) Applicability.--This subparagraph 
                        shall apply to any dwelling unit for which a 
                        housing assistance payments contract is entered 
                        into or renewed after the date of the 
                        effectiveness of the regulations implementing 
                        this subparagraph.''.

SEC. 3. RENT REFORM AND INCOME REVIEWS.

    (a) Rent for Public Housing and Section 8 Programs.--Section 3 of 
the United States Housing Act of 1937 (42 U.S.C. 1437a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by inserting ``Low-income 
                occupancy requirement and rental payments.--'' after 
                ``(1)'';
                    (B) in paragraph (1)--
                            (i) by striking ``paragraph (2)'' and 
                        inserting ``paragraphs (2) and (3)''; and
                            (ii) by striking ``paragraph (3)'' and 
                        inserting ``paragraph (4)'';
                    (C) in paragraph (2)(A)(i), by striking ``paragraph 
                (3)'' and inserting ``paragraph (4)'';
                    (D) by redesignating paragraphs (3), (4), and (5) 
                as paragraphs (4), (5), and (6), respectively;
                    (E) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) PHA authority to establish alternative rents.--
                    ``(A) Rent flexibility for public housing.--Subject 
                to the requirements under subparagraph (B), a public 
                housing agency may establish for public housing--
                            ``(i) a tenant rent structure in which--
                                    ``(I) the public housing agency 
                                establishes, based on the rental value 
                                of the unit, as determined by the 
                                public housing agency, a ceiling rent 
                                for each dwelling unit that it owns and 
                                operates; and
                                    ``(II) such ceiling rent is 
                                adjusted periodically on the basis of 
                                an inflation index or a recalculation 
                                of the rental value of the unit (which 
                                may be recalculated by unit or by 
                                building);
                            ``(ii) an income-tiered tenant rent 
                        structure in which the amount of rent a family 
                        shall pay is set and distributed on the basis 
                        of broad tiers of income and such tiers and 
                        rents are adjusted on the basis of an annual 
                        cost index except that families shall not be 
                        offered a rent lower than the rent 
                        corresponding to their income tier; or
                            ``(iii) a tenant rent structure in which 
                        the amount of rent a family shall pay is based 
                        on a percentage of family income, except that 
                        lower percentages may apply only with respect 
                        to earned income; such a rent structure may 
                        provide for an amount of rent based on a 
                        calculation of earned income that provides for 
                        disregard of a higher percentage or higher 
                        dollar amount, or both, than provided for in 
                        paragraph (8)(B).
                    ``(B) Limitation.--Notwithstanding the authority 
                provided under subparagraph (A), the amount paid for 
                rent (including the amount allowed for tenant-paid 
                utilities) by any family for a dwelling unit in public 
                housing may not exceed the amount determined under 
                subsection (a)(1) of this section. The Secretary shall 
                issue regulations and establish procedures for public 
                housing agency calculations and documentation as are 
                necessary to ensure compliance with this subparagraph.
                    ``(C) Elderly families and disabled families.--
                Notwithstanding any other provision of this Act, this 
                paragraph shall not apply to elderly families and 
                disabled families.''; and
                    (F) by adding at the end the following new 
                paragraphs:
            ``(7) Reviews of family income.--
                    ``(A) Frequency.--Reviews of family income for 
                purposes of this section shall be made--
                            ``(i) in the case of all families, upon the 
                        initial provision of housing assistance for the 
                        family;
                            ``(ii) annually thereafter, except as 
                        provided in subparagraph (B)(i);
                            ``(iii) upon the request of the family, at 
                        any time the income or deductions (under 
                        subsection (b)(5)) of the family change by an 
                        amount that is estimated to result in a 
                        decrease of $1,200 (or such lower amount as the 
                        public housing agency or owner may, at the 
                        option of the agency or owner, establish) or 
                        more in annual adjusted income; and
                            ``(iv) at any time the income or deductions 
                        (under subsection (b)(5)) of the family change 
                        by an amount that is estimated to result in an 
                        increase of $1,200 or more in annual adjusted 
                        income, except that any increase in the earned 
                        income of a family shall not be considered for 
                        purposes of this clause (except that earned 
                        income may be considered if the increase 
                        corresponds to previous decreases under clause 
                        (iii)), except that a public housing agency or 
                        owner may elect not to conduct such review in 
                        the last three months of a certification 
                        period.
                    ``(B) Fixed-income families.--
                            ``(i) Self certification and 3-year 
                        review.--In the case of any family described in 
                        clause (ii), after the initial review of the 
                        family's income pursuant to subparagraph 
                        (A)(i), the public housing agency or owner 
                        shall not be required to conduct a review of 
                        the family's income pursuant to subparagraph 
                        (A)(ii) for any year for which such family 
                        certifies, in accordance with such requirements 
                        as the Secretary shall establish, that the 
                        income of the family meets the requirements of 
                        clause (ii) of this subparagraph and that the 
                        sources of such income have not changed since 
                        the previous year, except that the public 
                        housing agency or owner shall conduct a review 
                        of each such family's income not less than once 
                        every 3 years.
                            ``(ii) Eligible families.--A family 
                        described in this clause is a family who has an 
                        income, as of the most recent review pursuant 
                        to subparagraph (A) or clause (i) of this 
                        subparagraph, of which 90 percent or more 
                        consists of fixed income, as such term is 
                        defined in clause (iii).
                            ``(iii) Fixed income.--For purposes of this 
                        subparagraph, the term `fixed income' includes 
                        income from--
                                    ``(I) the supplemental security 
                                income program under title XVI of the 
                                Social Security Act, including 
                                supplementary payments pursuant to an 
                                agreement for Federal administration 
                                under section 1616(a) of the Social 
                                Security Act and payments pursuant to 
                                an agreement entered into under section 
                                212(b) of Public Law 93-66;
                                    ``(II) Social Security payments;
                                    ``(III) Federal, State, local and 
                                private pension plans; and
                                    ``(IV) other periodic payments 
                                received from annuities, insurance 
                                policies, retirement funds, disability 
                                or death benefits, and other similar 
                                types of periodic receipts that are of 
                                substantially the same amounts from 
                                year to year.
                    ``(C) In general.--Reviews of family income for 
                purposes of this section shall be subject to the 
                provisions of section 904 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988.
            ``(8) Calculation of income.--
                    ``(A) Use of current year income.--In determining 
                family income for initial occupancy or provision of 
                housing assistance pursuant to clause (i) of paragraph 
                (7)(A) or pursuant to reviews pursuant to clause (iii) 
                or (iv) of such paragraph, a public housing agency or 
                owner shall use the income of the family as estimated 
                by the agency or owner for the upcoming year.
                    ``(B) Use of prior year income.--In determining 
                family income for annual reviews pursuant to paragraph 
                (7)(A)(ii), a public housing agency or owner shall, 
                except as otherwise provided in this paragraph, use the 
                income of the family as determined by the agency or 
                owner for the preceding year, taking into consideration 
                any redetermination of income during such prior year 
                pursuant to clause (iii) or (iv) of paragraph (7)(A).
                    ``(C) Inflationary adjustment for fixed income 
                families.--
                            ``(i) In general.--In any year in which a 
                        public housing agency or owner does not conduct 
                        a review of income for any family described in 
                        clause (ii) of paragraph (7)(B) pursuant to the 
                        authority under clause (i) of such paragraph to 
                        waive such a review, such family's prior year's 
                        income determination shall, subject to clauses 
                        (ii) and (iii), be adjusted by applying an 
                        inflationary factor as the Secretary shall, by 
                        regulation, establish.
                            ``(ii) Exemption from adjustment.--A public 
                        housing agency or owner may exempt from an 
                        adjustment pursuant to clause (i) any income 
                        source for which income does not increase from 
                        year to year.
                            ``(iii) Applicability of inflationary 
                        factor.--The inflationary factor adjustment 
                        referred to in clause (i) shall not be made 
                        with respect to the first year after the year 
                        in which housing is occupied or housing 
                        assistance is initially provided for a family.
                    ``(D) Other income.--In determining the income for 
                any family based on the prior year's income, with 
                respect to prior year calculations of income not 
                subject to subparagraph (B), a public housing agency or 
                owner may make other adjustments as it considers 
                appropriate to reflect current income.
                    ``(E) Safe harbor.--A public housing agency or 
                owner may, to the extent such information is available 
                to the public housing agency or owner, determine the 
                family's income prior to the application of any 
                deductions based on timely income determinations made 
                for purposes of other means-tested Federal public 
                assistance programs (including the program for block 
                grants to States for temporary assistance for needy 
                families under part A of title IV of the Social 
                Security Act, a program for Medicaid assistance under a 
                State plan approved under title XIX of the Social 
                Security Act, and the food stamp program as defined in 
                section 3(h) of the Food Stamp Act of 1977). The 
                Secretary shall, in consultation with other appropriate 
                Federal agencies, develop procedures to enable public 
                housing agencies and owners to have access to such 
                income determinations made by other means-tested 
                Federal programs that the Secretary determines to have 
                comparable reliability. Exchanges of such information 
                shall be subject to the same limitations and tenant 
                protections provided under section 904 of the Stewart 
                B. McKinney Homeless Assistance Act Amendments of 1988 
                (42 U.S.C. 3544) with respect to information obtained 
                under the requirements of section 303(i) of the Social 
                Security Act (42 U.S.C. 503(i)).
                    ``(F) PHA and owner compliance.--A public housing 
                agency or owner may not be considered to fail to comply 
                with this paragraph or paragraph (7) due solely to any 
                de minimus errors made by the agency or owner in 
                calculating family incomes.'';
            (2) by striking subsections (d) and (e); and
            (3) by redesignating subsection (f) as subsection (d).
    (b) Income.--Section 3(b) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)) is amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) Income.--The term `income' means, with respect to a 
        family, income received from all sources by each member of the 
        household who is 18 years of age or older or is the head of 
        household or spouse of the head of the household, plus unearned 
        income by or on behalf of each dependent who is less than 18 
        years of age, as determined in accordance with criteria 
        prescribed by the Secretary, in consultation with the Secretary 
        of Agriculture, subject to the following requirements:
                    ``(A) Included amounts.--Such term includes 
                recurring gifts and receipts, actual income from 
                assets, and profit or loss from a business.
                    ``(B) Excluded amounts.--Such term does not 
                include--
                            ``(i) any imputed return on assets;
                            ``(ii) any amounts that would be eligible 
                        for exclusion under section 1613(a)(7) of the 
                        Social Security Act (42 U.S.C. 1382b(a)(7)); 
                        and
                            ``(iii) deferred disability benefits from 
                        the Department of Veterans Affairs that are 
                        received in a lump sum amount or in prospective 
                        monthly amounts.
                    ``(C) Earned income of students.--Such term does 
                not include earned income of any dependent earned 
                during any period that such dependent is attending 
                school or vocational training on a full-time basis or 
                any grant-in-aid or scholarship amounts related to such 
                attendance used for the cost of tuition or books.
                    ``(D) Educational savings accounts.--Income shall 
                be determined without regard to any amounts in or from, 
                or any benefits from, any Coverdell education savings 
                account under section 530 of the Internal Revenue Code 
                of 1986 or any qualified tuition program under section 
                529 of such Code.
                    ``(E) Other exclusions.--Such term shall not 
                include other exclusions from income as are established 
                by the Secretary or any amount required by Federal law 
                to be excluded from consideration as income. The 
                Secretary may not require a public housing agency or 
                owner to maintain records of any amounts excluded from 
                income pursuant to this subparagraph.''; and
            (2) by striking paragraph (5) and inserting the following 
        new paragraph:
            ``(5) Adjusted income.--The term `adjusted income' means, 
        with respect to a family, the amount (as determined by the 
        public housing agency or owner) of the income of the members of 
        the family residing in a dwelling unit or the persons on a 
        lease, after any deductions from income as follows:
                    ``(A) Earned income disregard.--An amount equal to 
                10 percent of the lesser of--
                            ``(i) the family's earned income; or
                            ``(ii) $9,000, except that such amount 
                        shall be adjusted annually by applying to such 
                        amount (as it may have been previously 
                        adjusted) an inflationary factor as the 
                        Secretary shall, by regulation, establish and 
                        except that for purposes of adjusted income 
                        determinations each year such amount shall be 
                        established by rounding the amount calculated 
                        down to the next lowest multiple of $1,000.
                The deduction under this subparagraph shall not be 
                considered in determining adjusted income for the 
                purposes of section 16 (relating to eligibility for 
                assisted housing and income mix).
                    ``(B) Elderly and disabled families.--$725 in the 
                case of any family that is an elderly family or a 
                disabled family.
                    ``(C) Dependents.--In the case of any family that 
                includes a member or members who--
                            ``(i) are less than 18 years of age or 
                        attending school or vocational training on a 
                        full-time basis; or
                            ``(ii) is a person with disabilities who is 
                        18 years of age or older and resides in the 
                        household,
                $500 for each such member.
                    ``(D) Child care.--The amount, if any, that exceeds 
                10 percent of annual family income that is used to pay 
                for unreimbursed child care expenses, which shall 
                include child care for preschool-age children, for 
                before- and after-care for children in school, and for 
                other child care necessary to enable a member of the 
                family to be employed or further his or her education.
                    ``(E) Health and medical expenses.--The amount, if 
                any, by which 10 percent of annual family income is 
                exceeded by the sum of--
                            ``(i) in the case of any elderly or 
                        disabled family, any unreimbursed health and 
                        medical care expenses; and
                            ``(ii) any unreimbursed reasonable 
                        attendant care and auxiliary apparatus expenses 
                        for each handicapped member of the family, to 
                        the extent necessary to enable any member of 
                        such family to be employed.
                    ``(F) Permissive deductions.--Such additional 
                deductions as a public housing agency may, at its 
                discretion, establish, except that the Secretary shall 
                establish procedures to ensure that such deductions do 
                not materially increase Federal expenditures.
        The Secretary shall annually calculate the amounts of the 
        deductions under subparagraphs (B) and (C), as such amounts may 
        have been previously calculated, by applying an inflationary 
        factor as the Secretary shall, by regulation, establish, except 
        that the actual deduction determined for each year shall be 
        established by rounding such amount to the next lowest multiple 
        of $25.''.
    (c) Housing Choice Voucher Program.--Paragraph (5) of section 8(o) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is 
amended--
            (1) in the paragraph heading, by striking ``Annual review'' 
        and inserting ``Reviews'';
            (2) in subparagraph (A)--
                    (A) by striking ``the provisions of'' and inserting 
                ``paragraphs (7) and (8) of section 3(a) and to''; and
                    (B) by striking ``and shall be conducted upon the 
                initial provision of housing assistance for the family 
                and thereafter not less than annually''; and
            (3) in subparagraph (B), by striking the second sentence.
    (d) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by 
striking ``income'' each place such term appears and inserting ``annual 
adjusted income''.
    (e) Project-based Housing.--Paragraph (3) of section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by 
striking the last sentence.
    (f) Impact on Public Housing Revenues.--
            (1) Adjustments to operating formula.--If the Secretary of 
        Housing and Urban Development determines that the application 
        of the amendments made by this section results in a material 
        and disproportionate reduction in the rental income of certain 
        public housing agencies during the first year in which the 
        amendments made by this section are implemented, the Secretary 
        may make appropriate adjustments in the formula income for such 
        year of those agencies experiencing such a reduction.
            (2) HUD reports on revenue and cost impact.--In each of the 
        first two years after the first year in which the amendments 
        made by this section are implemented, the Secretary of Housing 
        and Urban Development shall submit a report to Congress 
        identifying and calculating the impact of changes made by the 
        amendments made by this section and sections 4 and 5 of this 
        Act on the revenues and costs of operating public housing 
        units, the voucher program for rental assistance under section 
        8 of the United States Housing Act of 1937, and the program 
        under such section 8 for project-based rental assistance. If 
        such report identifies a material reduction in the net income 
        of public housing agencies nationwide or a material increase in 
        the costs of funding the voucher program or the project-based 
        assistance program, the Secretary shall include in such report 
        recommendations for legislative changes to reduce or eliminate 
        such a reduction.
    (g) Effective Date.--The amendments made by this section shall take 
effect during the first calendar year after regulations or notice has 
been adopted to implement such amendments, except that the Secretary 
may delay such effective date by one year upon a determination that 
such delay is necessary for public housing agencies and owners to make 
the necessary changes to comply with such amendments.

SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS AND INCOME.

    (a) Assets.--Section 16 of the United States Housing Act of 1937 
(42 U.S.C. 1437n) is amended by inserting after subsection (d) the 
following new subsection:
    ``(e) Eligibility for Assistance Based on Assets.--
            ``(1) Limitation on assets.--Subject to paragraph (3) and 
        notwithstanding any other provision of this Act, a dwelling 
        unit assisted under this Act may not be rented and assistance 
        under this Act may not be provided, either initially or at each 
        recertification of family income, to any family--
                    ``(A) whose net family assets exceed $100,000, as 
                such amount is adjusted annually by applying an 
                inflationary factor as the Secretary considers 
                appropriate; or
                    ``(B) who has a present ownership interest in, a 
                legal right to reside in, and the effective legal 
                authority to sell, real property that is suitable for 
                occupancy as a residence, except that the prohibition 
                under this subparagraph shall not apply to--
                            ``(i) any property for which the family is 
                        receiving assistance under this Act;
                            ``(ii) any person that is a victim of 
                        domestic violence; or
                            ``(iii) any family that is offering such 
                        property for sale.
            ``(2) Net family assets.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `net family assets' means, for all members of 
                the household, the net cash value of all assets after 
                deducting reasonable costs that would be incurred in 
                disposing of real property, savings, stocks, bonds, and 
                other forms of capital investment. Such term does not 
                include interests in Indian trust land, equity accounts 
                in homeownership programs of the Department of Housing 
                and Urban Development, or Family Self Sufficiency 
                accounts.
                    ``(B) Exclusions.--Such term does not include--
                            ``(i) the value of personal property, 
                        except for items of personal property of 
                        significant value, as the Secretary may 
                        establish or the public housing agency may 
                        determine;
                            ``(ii) the value of any retirement account;
                            ``(iii) real property for which the family 
                        does not have the effective legal authority 
                        necessary to sell such property;
                            ``(iv) any amounts recovered in any civil 
                        action or settlement based on a claim of 
                        malpractice, negligence, or other breach of 
                        duty owed to a member of the family and arising 
                        out of law, that resulted in a member of the 
                        family being disabled;
                            ``(v) the value of any Coverdell education 
                        savings account under section 530 of the 
                        Internal Revenue Code of 1986 or any qualified 
                        tuition program under section 529 of such Code; 
                        and
                            ``(vi) such other exclusions as the 
                        Secretary may establish.
                    ``(C) Trust funds.--In cases in which a trust fund 
                has been established and the trust is not revocable by, 
                or under the control of, any member of the family or 
                household, the value of the trust fund shall not be 
                considered an asset of a family if the fund continues 
                to be held in trust. Any income distributed from the 
                trust fund shall be considered income for purposes of 
                section 3(b) and any calculations of annual family 
                income, except in the case of medical expenses for a 
                minor.
            ``(3) Self-certification.--
                    ``(A) Net family assets.--A public housing agency 
                or owner may determine the net assets of a family, for 
                purposes of this section, based on a certification by 
                the family that the net assets of such family do not 
                exceed $50,000.
                    ``(B) No current real property ownership.--A public 
                housing agency or owner may determine compliance with 
                paragraph (1)(B) based on a certification by the family 
                that such family does not have any current ownership 
                interest in any real property at the time the agency or 
                owner reviews the family's income.
                    ``(C) Standardized forms.--The Secretary may 
                develop standardized forms for the certifications 
                referred to in subparagraphs (A) and (B).
            ``(4) Compliance for public housing dwelling units.--When 
        recertifying family income with respect to families residing in 
        public housing dwelling units, a public housing agency may, in 
        the discretion of the agency and only pursuant to a policy that 
        is set forth in the public housing agency plan under section 5A 
        for the agency, choose not to enforce the limitation under 
        paragraph (1).
            ``(5) Elderly and disabled families.--When recertifying the 
        income of an elderly or disabled family residing in a dwelling 
        unit assisted under this Act, a public housing agency or owner 
        may choose not to enforce the limitation under paragraph (1) or 
        may establish exceptions to such limitation based on 
        eligibility criteria, but only pursuant to a policy that is set 
        forth in the public housing agency plan under section 5A for 
        the agency or under a policy adopted by the owner. Eligibility 
        criteria for establishing exceptions may provide for separate 
        treatment for elderly and disabled families and may be based on 
        different factors, such as age, income, the ability of the 
        family to find suitable alternative housing, and whether 
        supportive services are being provided.
            ``(6) Authority to delay evictions.--In the case of a 
        family residing in a dwelling unit assisted under this Act who 
        does not comply with the limitation under paragraph (1), the 
        public housing agency or project owner may delay eviction or 
        termination of the family based on such noncompliance for a 
        period of not more than 6 months.''.
    (b) Income.--The United States Housing Act of 1937 is amended--
            (1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking 
        the first sentence and inserting the following: ``Dwelling 
        units assisted under this Act may be rented, and assistance 
        under this Act may be provided, whether initially or at time of 
        recertification, only to families who are low-income families 
        at the time such initial or continued assistance, respectively, 
        is provided, except that families residing in dwelling units as 
        of the date of the enactment of the Section 8 Voucher Reform 
        Act of 2009 that, under agreements in effect on such date of 
        enactment, may have incomes up to 95 percent of local area 
        median income shall continue to be eligible for assistance at 
        recertification as long as they continue to comply with such 
        income restrictions. When recertifying family income with 
        respect to families residing in public housing dwelling units, 
        a public housing agency may, in the discretion of the agency 
        and only pursuant to a policy that is set forth in the public 
        housing agency plan under section 5A for the agency, choose not 
        to enforce the prohibition under the preceding sentence. When 
        recertifying family income with respect to families residing in 
        dwelling units for which project-based assistance is provided, 
        a project owner may, in the owner's discretion and only 
        pursuant to a policy adopted by such owner, choose not to 
        enforce such prohibition. In the case of a family residing in a 
        dwelling unit assisted under this Act who does not meet the 
        requirements under the first sentence of this paragraph or the 
        requirements under section 8(o)(4), the public housing agency 
        or project owner may delay eviction or termination of the 
        family based on such noncompliance for a period of not more 
        than 6 months.'';
            (2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking 
        the matter preceding subparagraph (A) and inserting the 
        following:
            ``(4) Eligible families.--Assistance under this subsection 
        may be provided, whether initially or at each recertification, 
        only pursuant to subsection (t) to a family eligible for 
        assistance under such subsection or to a family who at the time 
        of such initial or continued assistance, respectively, is a 
        low-income family that is--''; and
            (3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by striking 
        ``at the time it initially occupied such dwelling unit'' and 
        inserting ``according to the restrictions under section 
        3(a)(1)''.

SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORKING FAMILIES.

    (a) Vouchers.--Section 16(b)(1) of the United States Housing Act of 
1937 (42 U.S.C. 1437n(b)(1)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (A) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or (B)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (A) of this sentence 
        shall not apply in the case of public housing agencies located 
        in Puerto Rico or any other territory or possession of the 
        United States''.
    (b) Public Housing.--Section 16(a)(2)(A) of the United States 
Housing Act of 1937 (42 U.S.C. 1437n(a)(2)(A)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (i) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or 
        (ii)''; and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (i) of this sentence 
        shall not apply in the case of projects located in Puerto Rico 
        or any other territory or possession of the United States''.
    (c) Project-based Section 8 Assistance.--Section 16(c)(3) of the 
United States Housing Act of 1937 (42 U.S.C. 1437n(c)(3)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (A) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or (B)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (A) of this sentence 
        shall not apply in the case of projects located in Puerto Rico 
        or any other territory or possession of the United States''.

SEC. 6. VOUCHER RENEWAL FUNDING.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended by striking subsection (dd) and inserting 
the following new subsection:
    ``(dd) Tenant-based Vouchers.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated, for each of fiscal years 2010 
        through 2014, such sums as may be necessary for tenant-based 
        assistance under subsection (o) for the following purposes:
                    ``(A) To renew all expiring annual contributions 
                contracts for tenant-based rental assistance.
                    ``(B) To provide tenant-based rental assistance 
                for--
                            ``(i) conversion of section 23 projects to 
                        assistance under this section;
                            ``(ii) the family unification program under 
                        subsection (x) of this section;
                            ``(iii) relocation of witnesses in 
                        connection with efforts to combat crime in 
                        public and assisted housing pursuant to a 
                        request from a law enforcement or prosecution 
                        agency;
                            ``(iv) enhanced vouchers authorized under 
                        subsection (t) of this section;
                            ``(v) relocation or replacement in 
                        connection with the HOPE VI program under 
                        section 24;
                            ``(vi) demolition or disposition of public 
                        housing units pursuant to section 18 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437p);
                            ``(vii) mandatory conversions of public 
                        housing to vouchers, pursuant to section 33 of 
                        the United States Housing Act of 1937, 
                        respectively (42 U.S.C. 1437z-5);
                            ``(viii) voluntary conversions of public 
                        housing to vouchers, pursuant to section 22 of 
                        the United States Housing Act of 1937, 
                        respectively (42 U.S.C. 1437t);
                            ``(ix) vouchers necessary to comply with a 
                        consent decree or court order;
                            ``(x) tenant protection vouchers in 
                        connection with dwelling units that cease to 
                        receive project-based assistance under 
                        subsection (b), (c), (d), (e), or (v) of this 
                        section;
                            ``(xi) relocation and replacement vouchers 
                        in connection with public housing units that 
                        are demolished or disposed of pursuant to 
                        eminent domain, pursuant to a homeownership 
                        program, or in connection with a mixed finance 
                        development method under section 35 or 
                        otherwise;
                            ``(xii) vouchers used for the preservation 
                        of public housing units not included in the 
                        operating formula under section 9(e)(2) of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437g(e)(2));
                            ``(xiii) emergency voucher assistance for 
                        the protection of victims of domestic violence, 
                        dating violence, sexual assault, or stalking;
                            ``(xiv) tenant protection vouchers in 
                        connection with the foreclosure or disposition 
                        of multifamily housing subject to a mortgage 
                        insured and subsidized under the National 
                        Housing Act; and
                            ``(xv) tenant protection assistance, 
                        including replacement and relocation 
                        assistance.
                Subject only to the availability of sufficient amounts 
                provided in appropriation Acts, the Secretary shall 
                provide tenant-based rental assistance in connection 
                with all dwelling units that cease to be available as 
                assisted housing as a result of clauses (i), (iv), (v), 
                (vi), (vii), (x), (xi), and (xiv).
            ``(2) Allocation of renewal funding among public housing 
        agencies.--
                    ``(A) From amounts appropriated for each year 
                pursuant to paragraph (1)(A), the Secretary shall 
                provide renewal funding for each public housing 
                agency--
                            ``(i) based on leasing and cost data from 
                        the preceding calendar year, as adjusted by an 
                        annual adjustment factor to be established by 
                        the Secretary, which shall be established using 
                        the smallest geographical areas for which data 
                        on changes in rental costs are annually 
                        available;
                            ``(ii) by making any adjustments necessary 
                        to provide for the first-time renewal of 
                        vouchers funded under paragraph (1)(B) and of 
                        any incremental vouchers funded in previous 
                        years;
                            ``(iii) by making any adjustments necessary 
                        for full year funding of vouchers moved into 
                        and out of the jurisdiction of the public 
                        housing agency in the prior calendar year 
                        pursuant to portability procedures under 
                        subsection (r)(2); and
                            ``(iv) by making such other adjustments as 
                        the Secretary considers appropriate, including 
                        adjustments necessary to address changes in 
                        voucher utilization rates and voucher costs 
                        related to natural and other major disasters.
                    ``(B) Leasing and cost data.--For purposes of 
                subparagraph (A)(i), leasing and cost data shall be 
                calculated annually by using the average for the 
                preceding calendar year. Such leasing and cost data 
                shall be adjusted to include vouchers that were set 
                aside under a commitment to provide project-based 
                assistance under subsection (o)(13) and to exclude 
                amounts funded through advances under paragraph (3). 
                Such leasing and cost data shall not include funds not 
                appropriated for tenant-based assistance under section 
                8(o), unless the agency's funding was prorated in the 
                prior year and the agency used other funds to maintain 
                vouchers in use.
                    ``(C) Overleasing.--For the purpose of determining 
                allocations under subsection (A)(i), the leasing rate 
                calculated for the prior calendar year may exceed an 
                agency's authorized voucher level, except that such 
                calculation shall not utilize a leasing rate in excess 
                of 103 percent of the leasing rate in the year 
                preceding such prior year (after making appropriate 
                adjustments for incremental and new enhanced vouchers) 
                which results from the use of accumulated amounts, as 
                referred to in the last sentence of paragraph (4)(A).
                    ``(D) Moving to work; housing innovation program.--
                Notwithstanding subparagraphs (A) and (B), each public 
                housing agency participating in any year in the moving 
                to work program or the housing innovation program under 
                section 37 of this Act shall be funded pursuant to its 
                agreement under such program and shall be subject to 
                any pro rata adjustment made under subparagraph (F)(i).
                    ``(E) Unreimbursed portability costs.--The 
                Secretary may reimburse public housing agencies for 
                increased costs related to portability incurred during 
                the prior year that were not reimbursed pursuant to 
                paragraph (4)(B)(i).
                    ``(F) Pro rata allocation.--
                            ``(i) Insufficient funds.--To the extent 
                        that amounts made available for a fiscal year 
                        are not sufficient to provide each public 
                        housing agency with the full allocation for the 
                        agency determined pursuant to subparagraphs (A) 
                        and (D), the Secretary shall reduce such 
                        allocation for each agency on a pro rata basis, 
                        except that renewal funding of enhanced 
                        vouchers under section 8(t) shall not be 
                        subject to such proration.
                            ``(ii) Excess funds.--To the extent that 
                        amounts made available for a fiscal year exceed 
                        the amount necessary to provide each housing 
                        agency with the full allocation for the agency 
                        determined pursuant to subparagraphs (A) and 
                        (D), such excess amounts shall be used for the 
                        purposes specified in paragraph (4)(B).
                    ``(G) Prompt funding allocation.--The Secretary 
                shall allocate all funds under this subsection for each 
                year before the latter of (i) February 15, or (ii) the 
                expiration of the 45-day period beginning upon the 
                enactment of the appropriations Act funding such 
                renewals.
            ``(3) Advances.--
                    ``(A) Authority.--During the last 3 months of each 
                calendar year, the Secretary shall provide amounts out 
                of any appropriations made pursuant to paragraph (1) 
                for the fiscal year beginning on October 1 of that 
                calendar year to any public housing agency, at the 
                request of the agency, in an amount up to two percent 
                of the allocation for the agency for such calendar 
                year, subject to subparagraph (C).
                    ``(B) Use.--Amounts advanced under subparagraph (A) 
                may be used to pay for additional voucher costs, 
                including costs related to temporary overleasing.
                    ``(C) Use of prior year amounts.--During the last 3 
                months of a calendar year, if amounts previously 
                provided to a public housing agency for tenant-based 
                assistance for such year or for previous years remain 
                unobligated and available to the agency--
                            ``(i) the agency shall exhaust such amounts 
                        to cover any additional voucher costs under 
                        subparagraph (B) before amounts advanced under 
                        subparagraph (A) may be so used; and
                            ``(ii) the amount that may be advanced 
                        under subparagraph (A) to the agency shall be 
                        reduced by an amount equal to the total of such 
                        previously provided and unobligated amounts.
                    ``(D) Repayment.--Amounts advanced under 
                subparagraph (A) in a calendar year shall be repaid to 
                the Secretary in the subsequent calendar year by 
                offsetting the amounts made available for such agency 
                for such subsequent calendar year pursuant to 
                allocation under paragraph (2) by an amount equal to 
                the amount so advanced to the agency.
            ``(4) Offset.--
                    ``(A) In general.--The Secretary shall offset, from 
                amounts provided under the annual contributions 
                contract for a public housing agency for a calendar 
                year, all accumulated amounts allocated under paragraph 
                (2) and from previous years that are unused by the 
                agency at the end of each calendar year, except for an 
                amount not less than 6 percent of such amount allocated 
                to the agency pursuant to paragraph (2) for the 
                preceding calendar year. Notwithstanding any other 
                provision of law, each public housing agency may retain 
                all amounts not offset under this subparagraph, and may 
                use such amounts for all authorized purposes.
                    ``(B) Reallocation.--Not later than the latter of 
                April 1 of each calendar year or 75 days after the 
                enactment of an appropriations Act providing funding 
                for voucher renewal costs, the Secretary shall, from 
                amounts available pursuant to paragraph (2)(E) and from 
                any other available amounts appropriated for such 
                purpose--
                            ``(i) set aside and subsequently make 
                        available such amounts as the Secretary 
                        considers likely to be needed, when combined 
                        with funds from a central fund or any other 
                        source of funds appropriated or made available 
                        for such purpose, to reimburse public housing 
                        agencies for increased costs related to 
                        portability and family self-sufficiency 
                        activities pursuant to section 23(h) during 
                        such year; and
                            ``(ii) reallocate all remaining amounts 
                        among public housing agencies, with priority 
                        given based on the extent to which an agency 
                        has utilized the amount allocated under 
                        paragraph (2) for the agency to serve eligible 
                        families and the relative need for additional 
                        voucher assistance for use only to increase 
                        voucher leasing rates.''.
    (b) Portability.--The Secretary of Housing and Urban Development 
shall, not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, issue a proposed rule for 
comment to modify the regulations governing the responsibilities of 
public housing agencies in cases in which families assisted with 
tenant-based assistance under section 8 of the United States Housing 
Act of 1937 exercise their right to move to a different jurisdiction 
under the Secretary's regulations regarding portability procedures (24 
C.F.R. 982.355), to eliminate, or minimize to the greatest extent 
feasible consistent with available funding, billing between agencies 
and administrative barriers to families' choices of where to reside, 
without undermining the ability of public housing agencies to serve 
their waiting lists. The Secretary shall finalize regulations modifying 
such portability procedures in accordance with this subsection not 
later than the expiration of the 12-month period beginning upon the 
date of the enactment of this Act.
    (c) Vouchers for Persons With Disabilities and Homeless Veterans.--
The Secretary of Housing and Urban Development shall develop and issue, 
to public housing agencies that have received voucher assistance under 
section 8(o) for non-elderly disabled families, or under section 
8(o)(19) for homeless veterans, pursuant to appropriations Acts for 
fiscal year 1997 and fiscal years thereafter, guidance to ensure that, 
to the maximum extent practicable, such vouchers continue to be 
provided upon turnover to qualified non-elderly disabled families or 
homeless veterans, respectively.

SEC. 7. ADMINISTRATIVE FEES.

    (a) In General.--Section 8(q) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(q)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraphs (B) and (C) and 
                inserting the following new subparagraphs:
                    ``(B) Calculation.--The fee under this subsection 
                shall--
                            ``(i) be payable to each public housing 
                        agency for each month for which a dwelling unit 
                        is covered by an assistance contract;
                            ``(ii) be based on a per-unit fee, which 
                        shall be based on the per-unit fee payable to 
                        the agency in fiscal year 2003 and updated for 
                        each subsequent year as specified in subsection 
                        (iv), or on such formula which the Secretary 
                        may, by regulation, establish using a per-unit 
                        fee structure which shall provide for the 
                        payment of the full cost of administering 
                        vouchers, and which may include performance 
                        incentives consistent with subsection (o)(21);
                            ``(iii) include an amount for the cost of 
                        issuing a voucher to new participants;
                            ``(iv) be updated each year using an index 
                        of changes in wage and benefit data or other 
                        objectively measurable data that reflect the 
                        costs of administering the program for such 
                        assistance, as determined by the Secretary; and
                            ``(v) include an amount for the cost of 
                        family self-sufficiency coordinators, as 
                        provided in section 23(h)(1).
                    ``(C) Publication.--The Secretary shall cause to be 
                published in the Federal Register the fee rate for each 
                geographic area.''; and
                    (B) by striking subparagraph (E) and inserting the 
                following new subparagraph;
                    ``(E) Fee for agency-owned units.--The Secretary 
                shall establish a fee for dwelling units owned by a 
                public housing agency that reflects reasonable costs of 
                administration, which shall take into consideration the 
                third-party inspection and rent determination expenses 
                incurred in compliance with the requirements of 
                subsection (o)(11).''; and
            (2) in paragraph (4), by striking ``1999'' and inserting 
        ``2010''.
    (b) Administrative Fees for Family Self-sufficiency Program 
Costs.--Subsection (h) of section 23 of the United States Housing Act 
of 1937 (42 U.S.C. 1437u(h)) is amended by striking paragraph (1) and 
inserting the following new paragraph:
            ``(1) Section 8 fees.--
                    ``(A) In general.--The Secretary shall establish a 
                fee under section 8(q) for the costs incurred in 
                administering the self-sufficiency program under this 
                section to assist families receiving voucher assistance 
                through section 8(o).
                    ``(B) Eligibility for fee.--The fee shall provide 
                funding for family self-sufficiency coordinators as 
                follows:
                            ``(i) Base fee.--A public housing agency 
                        serving 25 or more participants in the family 
                        self-sufficiency program under this section 
                        shall receive a fee equal to the costs of 
                        employing one full-time family self-sufficiency 
                        coordinator. An agency serving fewer than 25 
                        such participants shall receive a prorated fee.
                            ``(ii) Additional fee.--An agency that 
                        meets minimum performance standards shall 
                        receive an additional fee sufficient to cover 
                        the costs of employing a second family self-
                        sufficiency coordinator if the agency has 75 or 
                        more participating families, and a third such 
                        coordinator if it has 125 or more participating 
                        families.
                            ``(iii) Previously funded agencies.--An 
                        agency that received funding from the 
                        Department of Housing and Urban Development for 
                        more than three such coordinators in any of 
                        fiscal years 1998 through 2009 shall receive 
                        funding for the highest number of coordinators 
                        funded in a single fiscal year during that 
                        period, provided they meet applicable size and 
                        performance standards.
                            ``(iv) Initial year.--For the first year in 
                        which a public housing agency exercises its 
                        right to develop an family self-sufficiency 
                        program for its residents, it shall be entitled 
                        to funding to cover the costs of up to one 
                        family self-sufficiency coordinator, based on 
                        the size specified in its action plan for such 
                        program.
                            ``(v) State and regional agencies.--For 
                        purposes of calculating the family self-
                        sufficiency portion of the administrative fee 
                        under this subparagraph, each administratively 
                        distinct part of a State or regional public 
                        housing agency shall be treated as a separate 
                        agency.
                            ``(vi) Determination of number of 
                        coordinators.--In determining whether a public 
                        housing agency meets a specific threshold for 
                        funding pursuant to this paragraph, the number 
                        of participants being served by the agency in 
                        its family self-sufficiency program shall be 
                        considered to be the average number of families 
                        enrolled in such agency's program during the 
                        course of the most recent fiscal year for which 
                        the Department of Housing and Urban Development 
                        has data.
                    ``(C) Proration.--If insufficient funds are 
                available in any fiscal year to fund all of the 
                coordinators authorized under this section, the first 
                priority shall be given to funding one coordinator at 
                each agency with an existing family self-sufficiency 
                program. The remaining funds shall be prorated based on 
                the number of remaining coordinators to which each 
                agency is entitled under this subparagraph.
                    ``(D) Recapture.--Any fees allocated under this 
                subparagraph by the Secretary in a fiscal year that 
                have not been spent by the end of the subsequent fiscal 
                year shall be recaptured by the Secretary and shall be 
                available for providing additional fees pursuant to 
                subparagraph (B)(ii).
                    ``(E) Performance standards.--Within six months 
                after the date of the enactment of this paragraph, the 
                Secretary shall publish a proposed rule specifying the 
                performance standards applicable to funding under 
                clauses (ii) and (iii) of subparagraph (B). Such 
                standards shall include requirements applicable to the 
                leveraging of in-kind services and other resources to 
                support the goals of the family self-sufficiency 
                program.
                    ``(F) Data collection.--Public housing agencies 
                receiving funding under this paragraph shall collect 
                and report to the Secretary, in such manner as the 
                Secretary shall require, information on the performance 
                of their family self-sufficiency programs.
                    ``(G) Evaluation.--The Secretary shall conduct a 
                formal and scientific evaluation of the effectiveness 
                of well-run family self-sufficiency programs, comparing 
                outcomes of families participating in such programs 
                with families who are not, using random assignment of 
                participants to the extent practicable. Not later than 
                the expiration of the 4-year period beginning upon the 
                enactment of this paragraph, the Secretary shall submit 
                an interim evaluation report to the Congress. Not later 
                than the expiration of the 8-year period beginning upon 
                such enactment, the Secretary shall submit a final 
                evaluation report to the Congress. There is authorized 
                to be appropriated $10,000,000 to carry out the 
                evaluation under this subparagraph.
                    ``(H) Incentives for innovation and high 
                performance.--The Secretary may reserve up to 10 
                percent of the amounts made available for 
                administrative fees under this paragraph to provide 
                support to or reward family self-sufficiency programs 
                that are particularly innovative or highly successful 
                in achieving the goals of the program.''.
    (c) Repeal.--Section 202 of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997 (42 U.S.C. 1437f note; Public Law 104-204; 110 Stat. 2893) is 
hereby repealed.

SEC. 8. HOMEOWNERSHIP.

    (a) Section 8 Homeownership Downpayment Program.--Section 8(y)(7) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(y)(7)) is 
amended by striking subparagraphs (A) and (B) and inserting the 
following new subparagraphs:
                    ``(A) In general.--Subject to the provisions of 
                this paragraph, in the case of a family on whose behalf 
                rental assistance under section 8(o) has been provided 
                for a period of not less than 12 months prior to the 
                date of receipt of downpayment assistance under this 
                paragraph, a public housing agency may, in lieu of 
                providing monthly assistance payments under this 
                subsection on behalf of a family eligible for such 
                assistance and at the discretion of the agency, provide 
                a downpayment assistance grant in accordance with 
                subparagraph (B).
                    ``(B) Grant requirements.--A downpayment assistance 
                grant under this paragraph--
                            ``(i) shall be used by the family only as a 
                        contribution toward the downpayment and 
                        reasonable and customary closing costs required 
                        in connection with the purchase of a home;
                            ``(ii) shall be in the form of a single 
                        one-time grant; and
                            ``(iii) may not exceed $10,000.
                    ``(C) No effect on obtaining outside sources for 
                downpayment assistance.--This Act may not be construed 
                to prohibit a public housing agency from providing 
                downpayment assistance to families from sources other 
                than a grant provided under this Act, or as determined 
                by the public housing agency.
                    ``(D) Counseling and self-sufficiency programs.--A 
                public housing agency may require prepurchase housing 
                counseling or participation in a self-sufficiency 
                program as a condition of a family receiving 
                downpayment assistance under this paragraph.''.
    (b) Use of Vouchers for Manufactured Housing.--Section 8(o)(12) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(12)) is 
amended--
            (1) in subparagraph (A), by striking the period at the end 
        of the first sentence and all that follows through ``of'' in 
        the second sentence and inserting ``and rents''; and
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``the rent'' and all 
                that follows and inserting the following: ``rent shall 
                mean the sum of the monthly payments made by a family 
                assisted under this paragraph to amortize the cost of 
                purchasing the manufactured home, including any 
                required insurance and property taxes, the monthly 
                amount allowed for tenant-paid utilities, and the 
                monthly rent charged for the real property on which the 
                manufactured home is located, including monthly 
                management and maintenance charges.'';
                    (B) by striking clause (ii); and
                    (C) in clause (iii)--
                            (i) by inserting after the period at the 
                        end the following: ``If the amount of the 
                        monthly assistance payment for a family exceeds 
                        the monthly rent charged for the real property 
                        on which the manufactured home is located, 
                        including monthly management and maintenance 
                        charges, a public housing agency may pay the 
                        remainder to the family, lender or utility 
                        company, or may choose to make a single payment 
                        to the family for the entire monthly assistance 
                        amount.''; and
                            (ii) by redesignating such clause as clause 
                        (ii).

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

    Section 3 of the United States Housing Act of 1937 (42 U.S.C. 
1437a), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(e) PHA Reporting of Rent Payments to Credit Reporting 
Agencies.--
            ``(1) Authority.--To the extent that an individual 
        receiving tenant-based housing choice vouchers under section 8 
        by a public housing agency agrees in writing to reporting under 
        this subsection, the public housing agency may submit to 
        consumer reporting agencies described in section 603(p) of the 
        Fair Credit Reporting Act (15 U.S.C. 1681a) information 
        regarding the past rent payment history of the individual with 
        respect to the dwelling unit for which such assistance is 
        provided.
            ``(2) Format.--The Secretary, after consultation with 
        consumer reporting agencies referred in paragraph (1), shall 
        establish a system and format to be used by public housing 
        agencies for reporting of information under such paragraph that 
        provides such information in a format and manner that is 
        similar to other credit information submitted to such consumer 
        reporting agencies and is usable by such agencies.''.

SEC. 10. PERFORMANCE ASSESSMENTS.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following new paragraph:
            ``(21) Performance assessments.--
                    ``(A) Establishment.--The Secretary shall, by 
                regulation, establish standards and procedures for 
                assessing the performance of public housing agencies in 
                carrying out the programs for tenant-based rental 
                assistance under this subsection and for homeownership 
                assistance under subsection (y).
                    ``(B) Contents.--The standards and procedures under 
                this paragraph shall provide for assessment of the 
                performance of public housing agencies in the following 
                areas:
                            ``(i) Extent to which dwelling units comply 
                        with housing quality standards, including 
                        compliance with inspection requirements.
                            ``(ii) Extent of utilization of assistance 
                        amounts provided to the agency and of 
                        authorized vouchers, using appropriate 
                        adjustments for vouchers set aside to meet 
                        commitments under paragraph (13).
                            ``(iii) Timeliness and accuracy of 
                        reporting by the agency to the Secretary.
                            ``(iv) Effectiveness in carrying out 
                        policies that result in deconcentration of 
                        poverty and reduction of racial segregation.
                            ``(v) Reasonableness of rent burdens, 
                        consistent with public housing agency 
                        responsibilities under section 8(o)(1)(E)(iii).
                            ``(vi) Accurate calculations of rent, 
                        utility allowances, and subsidy payments.
                            ``(vii) Effectiveness in carrying out 
                        family self-sufficiency activities.
                            ``(viii) Timeliness of actions related to 
                        landlord participation.
                            ``(ix) Compliance with targeting 
                        requirements under section 16(b).
                            ``(x) Such other areas as the Secretary 
                        considers appropriate, which may only be 
                        established by regulation.
                    ``(C) Biennial assessment.--Not later than 2 years 
                after the date of enactment of this paragraph, and at 
                least every 2 years thereafter, the Secretary, using 
                the standards and procedures established under this 
                paragraph, shall--
                            ``(i) conduct an assessment of the 
                        performance of each public housing agency 
                        carrying out a program referred to in 
                        subparagraph (A);
                            ``(ii) make such assessment available to 
                        the public housing agency and to the public via 
                        the website of the Department of Housing and 
                        Urban Development; and
                            ``(iii) submit a report to Congress 
                        regarding the results of each such assessment.
                    ``(D) Applicability.--When implemented, the 
                performance assessment standards and procedures under 
                this paragraph shall supercede the Section 8 Management 
                Assessment Program of the Secretary then in effect.''.

SEC. 11. PHA PROJECT-BASED ASSISTANCE.

    Section 8(o)(13) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(13)) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) Percentage limitation.--
                            ``(i) In general.--Subject to clause (ii), 
                        not more than 25 percent of the funding 
                        available for tenant-based assistance under 
                        this section that is administered by the agency 
                        may be attached to structures pursuant to this 
                        paragraph.
                            ``(ii) Exception.--An agency may attach up 
                        to an additional 5 percent of the funding 
                        available for tenant-based assistance under 
                        this section to structures pursuant to this 
                        paragraph for dwelling units that house 
                        individuals and families that meet the 
                        definition of homeless under section 103 of the 
                        McKinney-Vento Homeless Assistance Act (42 
                        U.S.C. 11302), that provide supportive housing 
                        to persons with disabilities, or that are 
                        located in areas where vouchers under this 
                        subsection are difficult to use, as specified 
                        in subparagraph (D)(ii)(II). The Secretary may, 
                        by regulation, establish additional categories 
                        for the exception under this clause.'';
            (2) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) Income mixing requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), not more than the greater of 25 
                        dwelling units or 25 percent of the dwelling 
                        units in any project may be assisted under a 
                        housing assistance payment contract for 
                        project-based assistance pursuant to this 
                        paragraph. For purposes of this subparagraph, 
                        the term `project' means a single building, 
                        multiple contiguous buildings, or multiple 
                        buildings on contiguous parcels of land.
                            ``(ii) Exceptions.--
                                    ``(I) Certain housing.--The 
                                limitation under clause (i) shall not 
                                apply in the case of assistance under a 
                                contract for housing consisting of 
                                single family properties, or for 
                                dwelling units that are exclusively 
                                made available for households comprised 
                                of elderly families, disabled families, 
                                and families receiving supportive 
                                services for special needs populations, 
                                such as individuals who were formerly 
                                homeless. For purposes of the preceding 
                                sentence, the term `single family 
                                properties' means buildings with no 
                                more than four dwelling units.
                                    ``(II) Certain areas.--
                                            ``(aa) With respect to 
                                        areas in which fewer than 75 
                                        percent of families issued 
                                        vouchers become participants in 
                                        the program, the public housing 
                                        agency has established the 
                                        payment standard at 110 percent 
                                        of the fair market rent for all 
                                        census tracts in the area for 
                                        the previous six months, the 
                                        public housing agency has 
                                        requested a higher payment 
                                        standard, and the public 
                                        housing agency grants an 
                                        automatic extension of 90 days 
                                        (or longer) to families with 
                                        vouchers who are attempting to 
                                        find housing, clause (i) shall 
                                        be applied by substituting `40 
                                        percent' for `25 percent'; and
                                            ``(bb) With respect to 
                                        census tracts with a poverty 
                                        rate of 20 percent or less, 
                                        clause (i) shall be applied by 
                                        substituting `50 percent' for 
                                        `25 percent' and the Secretary 
                                        may, by regulation, establish 
                                        additional conditions.'';
            (3) in subparagraph (J)--
                    (A) by striking the fifth and sixth sentences and 
                inserting the following: ``A public housing agency may 
                establish and utilize procedures for maintaining site-
                based waiting lists under which applicants may apply 
                directly at, or otherwise designate to the public 
                housing agency, the project or projects in which they 
                seek to reside, except that all eligible applicants on 
                the waiting list of an agency for assistance under this 
                subsection shall be permitted to place their names on 
                such separate list. All such procedures shall comply 
                with title VI of the Civil Rights Act of 1964, the Fair 
                Housing Act, and other applicable civil rights laws. 
                The owner or manager of a structure assisted under this 
                paragraph shall not admit any family to a dwelling unit 
                assisted under a contract pursuant to this paragraph 
                other than a family referred by the public housing 
                agency from its waiting list, or a family on a site-
                based waiting list that complies with the requirements 
                of this subparagraph. A public housing agency shall 
                disclose to each applicant all other options in the 
                selection of a project in which to reside that are 
                provided by the public housing agency and are available 
                to the applicant.''; and
                    (B) by inserting after the third sentence the 
                following new sentence: ``Any family who resides in a 
                dwelling unit proposed to be assisted under this 
                paragraph, or in a unit to be replaced by a proposed 
                unit to be assisted under this paragraph shall be given 
                an absolute preference for selection for placement in 
                the proposed unit, if the family is otherwise eligible 
                for assistance under this subsection.''; and
            (4) by adding at the end the following new subparagraphs:
                    ``(N) Structure owned by agency.--Notwithstanding 
                any other provision of law, as part of an initiative to 
                improve, develop, or replace a public housing site, a 
                public housing agency may attach assistance to an 
                existing, newly constructed, or rehabilitated structure 
                in which the agency has an ownership interest or which 
                the agency has control of without following a 
                competitive process, but only if the agency includes 
                such initiative in its public housing agency plan 
                approved under section 5A and the units that receive 
                such assistance will not receive assistance under 
                section 9. The preceding sentence may not be construed 
                to limit the ability of a public housing agency to 
                attach assistance to structures under other applicable 
                law.
                    ``(O) Leases and tenancy.--Assistance provided 
                under this paragraph shall be subject to the provisions 
                of paragraph (7), except that subparagraph (A) of such 
                paragraph shall not apply. Notwithstanding any other 
                provision of law, for the term of the contract under 
                this paragraph, the owner may terminate tenancy only 
                for serious or repeated violations of the terms and 
                conditions of the lease or for violation of applicable 
                law.
                    ``(P) Allowable transfers.--A public housing agency 
                may, subject to the agreement of the receiving agency, 
                transfer a portion of its vouchers and related budget 
                authority to a public housing agency that administers a 
                program under this subsection in another jurisdiction 
                located in the same or a contiguous metropolitan area 
                or county.
                    ``(Q) Rent flexibility.--If a dwelling unit 
                assisted under this paragraph also receives funding 
                from either of the funds established under section 1138 
                or 1339 of the Federal Housing Enterprises Financial 
                Safety and Soundness Act of 1992 (12 U.S.C. 4568, 
                4569), the rent for the unit, if agreed upon by both 
                the public housing agency and the owner, may be 
                established at an amount that is less than would 
                otherwise be permitted under paragraphs (1)(B) or 
                (10)(A) of this section.''.

SEC. 12. RENT BURDENS.

    (a) Reviews.--Section 8(o)(1) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(1)) is amended by striking subparagraph (E) 
and inserting the following new subparagraph:
                    ``(E) Reviews.--
                            ``(i) Rent burdens.--The Secretary shall 
                        monitor rent burdens and submit a report to the 
                        Congress annually on the percentage of families 
                        assisted under this subsection, occupying 
                        dwelling units of any size, that pay more than 
                        30 percent of their adjusted incomes for rent 
                        and such percentage that pay more than 40 
                        percent of their adjusted incomes for rent. 
                        Using information regularly reported by public 
                        housing agencies, the Secretary shall provide 
                        public housing agencies, on an annual basis, a 
                        report with the information described in the 
                        first sentence of this clause, and may require 
                        a public housing agency to modify a payment 
                        standard that results in a significant 
                        percentage of families assisted under this 
                        subsection, occupying dwelling units of any 
                        size, paying more than 30 percent of their 
                        adjusted incomes for rent. In implementing the 
                        requirements of this clause, the Secretary 
                        shall separate out calculations and 
                        consideration of families whose rent 
                        contributions are calculated under section 
                        3(a)(3) and clauses (ii) and (iii) of paragraph 
                        (2)(A) of this subsection.
                            ``(ii) Concentration of poverty.--The 
                        Secretary shall submit a report to the Congress 
                        annually on the degree to which families 
                        assisted under this subsection in each 
                        metropolitan area are clustered in lower rent, 
                        higher poverty areas, which shall include 
                        reporting of data by race and ethnicity, and 
                        how, and the extent to which, greater 
                        geographic distribution of such assisted 
                        families could be achieved, including by 
                        increasing payment standards for particular 
                        communities within such metropolitan areas.
                            ``(iii) Public housing agency 
                        responsibilities.--Each public housing agency 
                        shall make publicly available the information 
                        on rent burdens provided by the Secretary 
                        pursuant to clause (i), and, for agencies 
                        located in metropolitan areas, the information 
                        on concentration provided by the Secretary 
                        pursuant to clause (ii). If a public housing 
                        agency has a high degree of concentration of 
                        poverty, as determined under a standard to be 
                        developed by the Secretary in accordance with 
                        clause (ii), or if the percentage of families 
                        paying more than 40 percent of their adjusted 
                        net income exceeds a percentage level, to be 
                        established by the Secretary, the public 
                        housing agency shall adjust the payment 
                        standard to eliminate excessive rent burdens 
                        within a reasonable time period or explain its 
                        reasons for not making such adjustment. The 
                        Secretary may not deny the request of a public 
                        housing agency to set a payment standard up to 
                        120 percent of the fair market rent to 
                        eliminate excessive rent burdens in accordance 
                        with the preceding sentence, except on the 
                        basis that an agency has not demonstrated that 
                        its request meets these criteria. If a request 
                        of a public housing agency has not been denied 
                        or approved with 45 days after the request is 
                        made, the request shall be considered to have 
                        been approved.''.
    (b) Public Housing Agency Plan.--Section 5A(d)(4) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c-1(d)(4)) is amended by 
inserting before the period at the end the following: ``, including the 
report with respect to the agency furnished by the Secretary pursuant 
to section 8(o)(1)(E) concerning rent burdens and, if applicable, 
geographic concentration of voucher holders, any changes in rent or 
other policies the public housing agency is making to address excessive 
rent burdens or concentration, and if the public housing agency is not 
adjusting its payment standard, its reasons for not doing so''.
    (c) Rent Burdens for Persons With Disabilities.--Subparagraph (D) 
of section 8(o)(1) is amended by inserting before the period at the end 
the following: ``, except that a public housing agency may establish a 
payment standard of not more than 120 percent of the fair market rent 
where necessary as a reasonable accommodation for a person with a 
disability, without approval of the Secretary. A public housing agency 
may seek approval of the Secretary to use a payment standard greater 
than 120 percent of the fair market rent as a reasonable accommodation 
for a person with a disability. In connection with the use of any 
increased payment standard established or approved pursuant to either 
of the preceding two sentences as a reasonable accommodation for a 
person with a disability, the Secretary may not establish additional 
requirements regarding the amount of adjusted income paid by such 
person for rent''.

SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT.

    (a) In General.--Paragraph (1) of section 8(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation;
            (2) by striking the seventh, eighth, and ninth sentences; 
        and
            (3) by adding at the end the following:
    ``(B)(i) The Secretary shall define market areas for purposes of 
this paragraph in areas sufficiently distinct as is necessary--
            ``(I) to establish fair market rentals that accurately 
        reflect typical rental costs of units suitable for occupancy by 
        persons assisted under this section in communities in 
        metropolitan and non-metropolitan areas (including low poverty 
        areas); and
            ``(II) to avoid concentration of voucher holders;
while taking into consideration the factors specified in clause (ii).
    ``(ii) The factors specified in this clause are--
            ``(I) the efficient administration of the program by public 
        housing agencies and the administrative costs of the Secretary 
        of establishing additional areas;
            ``(II) the availability of data for a sufficient number of 
        dwelling units to establish accurate fair market rentals; and
            ``(III) the ability of public housing agencies to adjust 
        the payment standard to more accurately reflect typical rental 
        costs.
    ``(iii) The Secretary shall establish procedures to permit a public 
housing agency to request the establishment of a separate market areas 
for either all or contiguous parts of the areas under the jurisdiction 
of such agency. The Secretary shall consider and approve any such 
request using the criteria established in clause (i) and the 
considerations under clause (ii).
    ``(iv) The Secretary shall not reduce the fair market rental in a 
market area as a result of a change in the percentile of the 
distribution of market rents used to establish the fair market rental.
    ``(v) The Secretary shall phase in large increases or decreases in 
the fair market rentals that result from changes in market area 
boundaries or other methodological changes that do not reflect actual 
year-to-year trends in rents by limiting such increases or decreases to 
not more than 5 percent each year.''.
    (b) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended 
by inserting before the period at the end the following: ``, except 
that no public housing agency shall be required as a result of a 
reduction in the fair market rental to reduce the payment standard 
applied to a family continuing to reside in a unit for which the family 
was receiving assistance under this section at the time the fair market 
rental was reduced''.

SEC. 14. SCREENING OF APPLICANTS.

    (a) In General.--Subparagraph (B) of section 8(o)(6) of the United 
States Housing Act of 1937 (1437f(o)(6)(B)) is amended--
            (1) by striking ``(B) Selection of tenants.--Each'' and 
        inserting the following:
                    ``(B) Selection of tenants.--
                            ``(i) Function of owner.--Each'';
            (2) in the first sentence, by striking ``unit)'' and 
        inserting ``unit'';
            (3) by striking ``In addition'' and inserting the 
        following:
                            ``(ii) Screening.--In addition'';
            (4) by inserting after ``establish.'' the following: ``A 
        public housing agency's elective screening shall be limited to 
        criteria that are directly related to an applicant's ability to 
        fulfill the obligations of an assisted lease and shall consider 
        mitigating circumstances related to such applicant. The 
        requirements of the preceding sentence shall not limit the 
        ability of a public housing agency to deny assistance based on 
        an applicant's criminal background or any other permissible 
        grounds for denial under subtitle F of title V of the Quality 
        Housing and Work Responsibility Act of 1998 (42 U.S.C. 13661 et 
        seq.; relating to safety and security in public and assisted 
        housing), subject to the procedural requirements of this 
        section. Any applicant or participant determined to be 
        ineligible for admission or continued participation to the 
        program shall be notified of the basis for such determination 
        and provided, within a reasonable time after the determination, 
        an opportunity for an informal hearing on such determination at 
        which mitigating circumstances, including remedial conduct 
        subsequent to the conduct that is the basis of such 
        determination, shall be considered.''; and
            (5) by adding at the end the following:
                            ``(iii) Existing assisted families.--
                        Families being provided enhanced vouchers 
                        pursuant to subsection (t), families receiving 
                        assistance under this Act that are subsequently 
                        provided tenant-based assistance pursuant to 
                        subsection (dd)(1)(B), and families residing in 
                        multifamily housing subject to a mortgage 
                        insured under the National Housing Act that are 
                        provided tenant-based assistance pursuant to 
                        subsection (dd)(1)(B)(xiv) of this section 
                        shall not be considered new applicants under 
                        this paragraph and shall not be subject to 
                        elective re-screening by a public housing 
                        agency.''.
    (b) Leases and Tenancy.--Subparagraph (E) of section 8(o)(7) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(7)(E)) is amended 
by inserting ``termination or'' after ``any'' the last place such term 
appears.
    (c) Denials of Admission.--Section 576 of the Quality Housing and 
Work Responsibility Act of 1998 (42 U.S.C. 13661) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (2);
                    (B) in paragraph (1)--
                            (i) in subparagraph (A), by inserting ``, 
                        based on documented evidence that is credible 
                        and objective,'' after ``determines'';
                            (ii) in subparagraph (B), by striking 
                        ``that it has reasonable'' and all that follows 
                        through ``by other residents'' and inserting 
                        ``, based on documented evidence that is 
                        credible and objective, is a chronic abuser of 
                        alcohol, and who is not currently participating 
                        in a supervised alcohol rehabilitation 
                        program''; and
                            (iii) by redesignating subparagraphs (A) 
                        and (B) (as so amended) as paragraphs (1) and 
                        (2) and realigning such paragraphs, as so 
                        redesignated, so as to be indented 2 ems from 
                        the left margin; and
                    (C) by striking the subsection designation and all 
                that follows through ``Notwithstanding'' in paragraph 
                (1) and inserting the following:
    ``(b) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
Notwithstanding''; and
            (2) in subsection (c)--
                    (A) in the section heading, by inserting 
                ``Certain'' before ``Criminal'';
                    (B) in the matter that precedes paragraph (1)--
                            (i) by inserting ``, based on documented 
                        evidence that is credible and objective,'' 
                        after ``determines'';
                            (ii) by striking ``a reasonable time'' and 
                        inserting ``the 5-year period''; and
                            (iii) by striking ``or other criminal 
                        activity'';
                    (C) in paragraph (2), by striking ``reasonable'' 
                each place such term appears and inserting ``5-year''; 
                and
                    (D) by adding after and below paragraph (2) the 
                following:
``No denial of admission may be made pursuant to this subsection based 
on a misdemeanor charge and conviction unless such denial is based on a 
pattern of activity, the commission of any offense against a child 
(including child pornography offenses), the commission of any offense 
involving a child victim, the commission of a sexual assault, the 
commission of an assault, or the commission of violent, disruptive (as 
such term is defined by the Secretary), or illegal behavior that 
interferes with the right to peaceful enjoyment of the premises by 
other residents.''.

SEC. 15. PROHIBITION ON FIREARMS RESTRICTIONS IN FEDERALLY ASSISTED 
              HOUSING.

    Subtitle F of the Quality Housing and Work Responsibility Act of 
1998 is amended by inserting after section 578 (42 U.S.C. 13663) the 
following new section:.

``SEC. 578A. PROHIBITION ON FIREARMS RESTRICTIONS IN FEDERALLY ASSISTED 
              HOUSING.

    ``Neither the Secretary of Housing and Urban Development, nor any 
public housing agency, nor any owner of federally assisted housing may 
establish any prohibition or restriction on the otherwise lawful 
possession or use of firearms in federally assisted housing.''.

SEC. 16. ENHANCED VOUCHERS.

    (a) Qualification; Election To Remain in Unit.--Section 8(t)(1) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)) is 
amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``and shall not require that the family requalify under the 
        selection standards for a public housing agency in order to be 
        eligible for such assistance'' before the comma; and
            (2) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B)(i) the assisted family may elect to remain in 
                the same project in which the family was residing on 
                the date of the eligibility event for the project 
                regardless of unit and family size standards normally 
                used by the administering public housing agency (except 
                that tenants may be required to move to units of 
                appropriate size if available on the premises), and the 
                owner of the unit shall accept the enhanced voucher and 
                terminate the tenancy only for serious or repeated 
                violation of the terms and conditions of the lease or 
                for violation of applicable law; and
                    ``(ii) if, during any period the family makes such 
                an election and continues to so reside, the rent for 
                the dwelling unit of the family in such project exceeds 
                the applicable payment standard established pursuant to 
                subsection (o) for the unit, the amount of rental 
                assistance provided on behalf of the family shall be 
                determined using a payment standard that is equal to 
                the rent for the dwelling unit (as such rent may be 
                increased from time-to-time), subject to paragraph 
                (10)(A) of subsection (o) and any other reasonable 
                limit prescribed by the Secretary, except that a limit 
                shall not be considered reasonable for purposes of this 
                subparagraph if it adversely affects such assisted 
                families;''.
    (b) Provision to Residents of Assisted Multifamily Projects Upon 
Termination Date.--
            (1) Requirement.--Upon the termination date for each 
        assisted multifamily housing project, to the extent that 
        amounts for assistance under this paragraph are provided in 
        advance in appropriation Acts, the Secretary of Housing and 
        Urban Development shall make enhanced voucher assistance under 
        section 8(t) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(t)) available on behalf of each family described 
        in paragraph (2).
            (2) Eligibility.--A family described in this paragraph is a 
        family who--
                    (A)(i) is a low-income family; or
                    (ii) is a moderate-income family that is--
                            (I) an elderly family (as such term is used 
                        in section 3(b) of the United States Housing 
                        Act of 1937 (42 U.S.C. 1437a(b));
                            (II) a disabled family (as such term is 
                        used in section 3(b) of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437a(b)); or
                            (III) residing in a low-vacancy area (as 
                        determined by the Secretary); and
                    (B) on such termination date, is residing in a 
                dwelling unit of the project that--
                            (i) immediately before such termination 
                        date was assisted under the multifamily housing 
                        subsidy program for the project; and
                            (ii) is not assisted after such termination 
                        date under section 8 of such Act.
            (3) Eligibility event.--Section 8(t)(2) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437f(t)(2)) is amended 
        by adding after the period at the end the following new 
        sentence: ``Such term includes, with respect to an assisted 
        multifamily housing project (as such term is defined in section 
        16(b) of the Section 8 Voucher Reform Act of 2009), the 
        occurrence of the termination date for the project.''.
            (4) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    (A) Assisted multifamily housing property.--The 
                term ``assisted multifamily housing property'' means a 
                multifamily housing project for which assistance is 
                provided under a multifamily housing subsidy program.
                    (B) Low-income family.--The term ``low-income 
                family'' has the meaning given such term in section 
                3(b) of the United States Housing Act of 1937 (42 
                U.S.C. 1437a(b)).
                    (C) Moderate-income family.--The term ``moderate-
                income family'' has the meaning given such term in 
                section 229 of the Low-Income Housing Preservation and 
                Resident Homeownership Act of 1992 (12 U.S.C. 4119).
                    (D) Multifamily housing subsidy program.--The term 
                ``multifamily housing subsidy program'' means--
                            (i) the below-market interest rate mortgage 
                        insurance program under section 221(d)(3) of 
                        the National Housing Act (12 U.S.C. 
                        1715l(d)(3)); and
                            (ii) the program for interest reduction 
                        payments under section 236 of the National 
                        Housing Act (12 U.S.C. 1715z-1).
                    (E) Termination date.--The term ``termination 
                date'' means, with respect to an assisted multifamily 
                housing property, the date that--
                            (i) the mortgage for the property that is 
                        insured under the below-market interest rate 
                        program under section 221(d)(3) of the National 
                        Housing Act, or for which interest reduction 
                        payments are made under section 236 of such 
                        Act, matures; and
                            (ii) the affordability restrictions 
                        applicable to the property because of 
                        assistance for the property pursuant to a 
                        multifamily housing subsidy program terminate 
                        with respect to the property.
            (5) Regulations.--The Secretary may issue any regulations 
        necessary to carry out this subsection.
    (c) Provision to Certain Assisted Housing Residents.--
            (1) Enhanced voucher assistance.--Notwithstanding any other 
        provision of law, contract, or covenant, and subject only to 
        the availability of amounts provided in advance in 
        appropriation Acts--
                    (A) upon the expiration, pursuant to subparagraph 
                (B), of the use restrictions applicable to the covered 
                properties pursuant to the Emergency Low Income Housing 
                Preservation Act of 1987 (12 U.S.C. 1715l note), each 
                family who is an eligible low-income or moderate income 
                family, as such terms are used for purposes of section 
                223(f)(2)(A) of the Low-Income Housing Preservation and 
                Resident Homeownership Act of 1990 (12 U.S.C. 
                4113(f)(2)(A)), and, as of such expiration, is residing 
                in a dwelling unit in the covered properties not 
                covered by project-based rental assistance, shall be 
                offered enhanced voucher assistance under section 8(t) 
                of the United States Housing Act of 1937 (42 U.S.C. 
                1437f(t)), and each such family who chooses to remain 
                in the covered properties shall have three years from 
                the date of the issuance of such enhanced voucher to 
                commence use of the voucher;
                    (B) such use restrictions applicable to the covered 
                properties shall be deemed to expire on March 1, 2010, 
                but only if the owner of the covered properties enters 
                into agreements with the Secretary to maintain the 
                project-based rental assistance for the properties for 
                a period beginning upon such expiration of not fewer 
                than 20 years; and
                    (C) the contract rents for dwelling units in the 
                covered properties covered by project-based rental 
                assistance shall be determined during the period ending 
                upon the expiration of such use restrictions pursuant 
                to subparagraph (B) based upon the rents for comparable 
                unassisted and unrestricted units in the area in which 
                the covered properties are located; except that before 
                May 1, 2012, the rental assistance payments for such 
                project-based units in the covered property known as 
                Georgetowne Houses II shall be restricted to the rent 
                levels provided under the Emergency Low Income Housing 
                Preservation Act of 1987.
            (2) Covered properties.--For purposes of this subsection, 
        the term ``covered properties'' means the housing developments 
        known as Georgetowne Houses I and II (formerly identified by 
        FHA project nos. 023-55058 and 023-55179), located in Boston, 
        Massachusetts.
            (3) Funding.--Amounts for the enhanced vouchers pursuant to 
        this subsection shall be provided under amounts appropriated 
        for tenant-based rental assistance otherwise authorized under 
        section 8(t) of the United States Housing Act of 1937.
            (4) Applicability.--This subsection shall take effect upon 
        enactment and nothing in this subsection may be construed to 
        require any administrative guidance.

SEC. 17. DEMONSTRATION PROGRAM WAIVER AUTHORITY.

    (a) Authority To Enter Into Agreements.--Notwithstanding any other 
provision of law, the Secretary of Housing and Urban Development may 
enter into such agreements as may be necessary with the Social Security 
Administration and the Secretary of Health and Human Services to allow 
for the participation, in any demonstration program described in 
subsection (c), by the Department of Housing and Urban Development and 
the use under such program of housing choice vouchers under section 
8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
    (b) Waiver of Income Requirements.--The Secretary of Housing and 
Urban Development may, to extent necessary to allow rental assistance 
under section 8(o) of the United States Housing Act of 1937 to be 
provided on behalf of persons described in subsection (c) who 
participate in a demonstration program described in such subsection, 
and to allow such persons to be placed on a waiting list for such 
assistance, partially or wholly disregard increases in earned income 
for the purpose of rent calculations under section 3 for such persons.
    (c) Demonstration Programs.--A demonstration program described in 
this subsection is a demonstration program of a State that provides for 
persons with significant disabilities to be employed and continue to 
receive benefits under programs of the Department of Health and Human 
Services and the Social Security Administration, including the program 
of supplemental security income benefits under title XVI of the Social 
Security Act, disability insurance benefits under title II of such Act, 
and the State program for medical assistance (Medicaid) under title XIX 
of such Act.

SEC. 18. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for fiscal year 2010 the 
amount necessary to provide public housing agencies with incremental 
assistance under section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)) sufficient to assist 150,000 incremental dwelling 
units in such fiscal year, for--
            (1) tenant-based assistance; and
            (2) project-based voucher assistance for extremely low-
        income families, in conjunction with--
                    (A) funding from either of the funds established 
                under section 1138 or 1339 of the Federal Housing 
                Enterprises Financial Safety and Soundness Act of 1992 
                (12 U.S.C. 4568, 4569);
                    (B) low-income housing tax credits provided under 
                section 42 of the Internal Revenue Code of 1986;
                    (C) amounts provided under the community 
                development block grant program under title I of the 
                Housing and Community Development Act of 1974 (42 
                U.S.C. 5301 et seq.) and the HOME investment 
                partnerships program under title II of the Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                12721 et seq.); and
                    (D) State and local affordable housing funds and 
                programs.

SEC. 19. AGENCY AUTHORITY FOR UTILITY PAYMENTS IN CERTAIN 
              CIRCUMSTANCES.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new paragraph:
            ``(22) Authority of public housing agencies to make direct 
        payments for utilities when owner fails to pay.--
                    ``(A) In general.--If the owner has failed to pay 
                for utilities that are the responsibility of the owner 
                under the lease or applicable law, the public housing 
                agency is authorized to utilize subsidy payments 
                otherwise due the owner to pay for continued utility 
                service to avoid hardship to program participants.
                    ``(B) Notice.--Before making utility payments as 
                described in subparagraph (A), the public housing 
                agency shall take reasonable steps to notify the owner 
                that it intends to make payments to a utility provider 
                in lieu of payments to the owner, except prior 
                notification shall not be required in any case in which 
                the unit will be or has been rendered uninhabitable due 
                to the termination or threat of termination of service, 
                in which case the public housing agency shall notify 
                the owner within a reasonable time after making such 
                payment.''.

SEC. 20. UTILITY DATA.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new paragraph:
            ``(23) Utility data.--
                    ``(A) Publication.--The Secretary shall regularly 
                publish such data regarding utility consumption and 
                costs in local areas as the Secretary determines will 
                be useful for the establishment of allowances for 
                tenant-paid utilities for families assisted under this 
                subsection.
                    ``(B) Guidelines for use.--The Secretary shall 
                establish guidelines providing for the use of such data 
                in a manner that--
                            ``(i) avoids unnecessary administrative 
                        burdens for public housing agencies; and
                            ``(ii) protects families in various unit 
                        sizes and building types, and using various 
                        utilities, from high rent and utility cost 
                        burdens relative to income.''.

SEC. 21. PROJECT-BASED PRESERVATION VOUCHERS.

    (a) Enhanced Vouchers.--Section 8(t) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(t)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Preservation project-based voucher assistance.--
        Notwithstanding any other provision of law, in the case of a 
        multifamily housing project with respect to which an 
        eligibility event occurs or has occurred, project-based voucher 
        assistance may be provided in accordance with subsection 
        (o)(13)(R) in lieu of enhanced voucher assistance under this 
        subsection. Such project-based voucher assistance shall not be 
        subject to the provisions of this subsection, except as 
        otherwise specifically provided in subsection (o)(13)(R).''.
    (b) PHA Project-based Voucher Assistance.--Paragraph (13) of 
section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new subparagraph:
                    ``(R) Preservation assistance.--
                            ``(i) Authority.--Project-based voucher 
                        assistance under this paragraph shall be made 
                        available in accordance with this subparagraph 
                        for multifamily housing projects for which an 
                        eligibility event (as such term is defined in 
                        subsection (t)) occurs or has occurred and for 
                        which enhanced voucher assistance would 
                        otherwise be, or has been, provided under 
                        subsection (t). Any such assistance shall be in 
                        lieu of enhanced voucher assistance under 
                        subsection (t) for tenants residing in the 
                        project and shall be provided by the Secretary 
                        to a public housing agency.
                            ``(ii) Request and provision.--If the owner 
                        of a multifamily housing project makes a 
                        request for project-based voucher assistance 
                        pursuant to this subparagraph for the project 
                        to a public housing agency that administers a 
                        program for assistance under subsection (o) for 
                        a jurisdiction within which the project is 
                        located, a contract for assistance under this 
                        subparagraph shall be provided with respect to 
                        the project, subject to clause (v).
                            ``(iii) Timing, coverage, and unit rents.--
                                    ``(I) Request made before 
                                eligibility event.--In the case of a 
                                contract for assistance under this 
                                subparagraph with respect to a project 
                                that is requested prior to the 
                                occurrence of the eligibility event, 
                                the contract for assistance shall be 
                                provided, subject to clause (v), upon 
                                the occurrence of the eligibility 
                                event. Such contract shall cover all 
                                dwelling units in the project for which 
                                enhanced voucher assistance under 
                                subsection (t) would otherwise be 
                                provided.
                                    ``(II) Request made after issuance 
                                of enhanced vouchers.--In the case of a 
                                contract for assistance under this 
                                subparagraph with respect to a project 
                                that is requested after the issuance of 
                                enhanced vouchers under subsection (t) 
                                for the project, the contract shall be 
                                provided, subject to clause (v), as 
                                soon as possible. Such contract shall 
                                cover all dwelling units in the project 
                                that are occupied by tenants receiving 
                                such enhanced voucher assistance at the 
                                time the contract is effective.
                                    ``(III) Coverage of additional 
                                dwelling units.--At the request of the 
                                owner of a multifamily housing project 
                                for which a contract for assistance is 
                                to be provided under this subparagraph, 
                                the public housing agency may contract 
                                with the owner for project-based 
                                voucher assistance under this 
                                subparagraph to cover additional 
                                dwelling units, if the public housing 
                                agency determines that such additional 
                                assistance is necessary or desirable to 
                                further the purposes reflected in 
                                clause (v).
                                    ``(IV) Approval of higher rents.--
                                At the request of the owner of a 
                                multifamily housing project for a 
                                contract for assistance under this 
                                subparagraph to establish rents at 
                                levels above those permitted by 
                                subparagraph (H), a public housing 
                                agency that has made the determinations 
                                required by clause (v) may request, and 
                                the Secretary may approve, higher unit 
                                rents if necessary to preserve housing 
                                opportunities that further the purposes 
                                of clause (v).
                            ``(iv) Projects in multiple pha 
                        jurisdictions.--If the Secretary has not 
                        entered into a contract with a public housing 
                        agency to provide enhanced voucher assistance 
                        under subsection (t) for the project at the 
                        time the owner of a multifamily housing project 
                        requests assistance under this subparagraph, 
                        and the project is located within the 
                        jurisdiction for the program under subsection 
                        (o) of more than one public housing agency, in 
                        determining which agency will administer such 
                        assistance, the Secretary shall--
                                    ``(I) consider the ratio of the 
                                number of vouchers to be awarded under 
                                this subparagraph and of other project-
                                based vouchers administered under this 
                                paragraph to the total number of 
                                vouchers administered by an agency; and
                                    ``(II) among other factors, provide 
                                preference to an agency for which the 
                                total number of project-based vouchers 
                                administered under this paragraph, 
                                including vouchers to be awarded 
                                pursuant to this subparagraph, would 
                                not exceed 50 percent of the total 
                                number of all vouchers to be 
                                administered by the agency after such 
                                award.
                        The Secretary shall establish guidelines for 
                        determining which agency will administer 
                        assistance if a unit is not located within the 
                        jurisdiction of any public housing agency that 
                        administers vouchers.
                            ``(v) Required determinations.--As a 
                        condition of entering into a contract pursuant 
                        to this subparagraph, the public housing agency 
                        shall have determined, before entering into 
                        such contract that--
                                    ``(I) the housing to be assisted 
                                under the contract is economically 
                                viable; and
                                    ``(II)(aa) there is a significant 
                                demand for the housing;
                                    ``(bb) the housing will contribute 
                                to a community revitalization plan or 
                                to deconcentrating poverty and 
                                expanding housing and economic 
                                opportunities; or
                                    ``(cc) the continued affordability 
                                of the housing otherwise is an 
                                important asset to the community.
                            ``(vi) Inapplicability of goals.--
                        Subparagraph (C) shall not apply to a housing 
                        assistance payment contract pursuant to this 
                        subparagraph.
                            ``(vii) Disregard of assistance under 
                        percentage limitation.--Amounts provided 
                        pursuant to this subparagraph shall not be 
                        considered for purposes of calculating the 
                        limitation under subparagraph (B).
                            ``(viii) Inapplicability of income-mixing 
                        requirement.--Subparagraph (D) shall not apply 
                        with respect to a housing assistance payments 
                        contract pursuant to this subparagraph.
                            ``(ix) Eligibility.--Subject only to clause 
                        (iii) and notwithstanding any other provision 
                        of law, any family residing in a multifamily 
                        housing project on the date of the eligibility 
                        event for the project who would otherwise be 
                        eligible for enhanced voucher assistance under 
                        subsection (t) shall be eligible for project-
                        based voucher assistance pursuant to this 
                        subparagraph.''.

SEC. 22. EFFECT OF FORECLOSURE ON SECTION 8 TENANCIES.

    (a) Use of Rental Assistance Amounts.--Section 8(o)(7) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(7)), as amended 
by section 703 of division A of Public Law 111-22 (123 Stat. 1661), is 
amended--
            (1) in subparagraph (F), by inserting after ``occupied 
        unit,'' the following: ``and if a public housing agency is 
        unable to make payments under the contract to the immediate 
        successor in interest after foreclosure, due to action or 
        inaction by the successor in interest, including the rejection 
        of payments or the failure of the successor to maintain the 
        unit in compliance with paragraph (8), or an inability to 
        identify the successor, the agency may use funds that would 
        have been used to pay the rental amount on behalf of the 
        family--
                            ``(i) to pay for utilities that are the 
                        responsibility of the owner under the lease or 
                        applicable law, after taking reasonable steps 
                        to notify the owner that it intends to make 
                        payments to a utility provider in lieu of 
                        payments to the owner, except prior 
                        notification shall not be required in any case 
                        in which the unit will be or has been rendered 
                        uninhabitable due to the termination or threat 
                        of termination of service, in which case the 
                        public housing agency shall notify the owner 
                        within a reasonable time after making such 
                        payment; or
                            ``(ii) for the family's reasonable moving 
                        costs, including security deposit costs.'';
            (2) by striking ``except that this provision and the 
        provisions related to foreclosure in subparagraph (C) shall 
        not'' in subparagraph (F) and inserting the following:
        ``The provisions related to foreclosure in subparagraphs (C) 
        and (F)''; and
            (3) in the matter after and below subparagraph (F), as 
        amended by paragraph (2) of this subsection, by adding after 
        the period at the end the following: ``For purposes of 
        subparagraphs (C) and (F), the term `immediate successor in 
        interest' includes a purchaser who purchases a property from an 
        immediate successor in interest.''.
    (b) Sunset.--Section 704 of division A of the Helping Families Save 
Their Homes Act (42 U.S.C. 1437f note; Public Law 111-22; 123 Stat. 
1662) is amended--
            (1) by striking ``This title, and any amendments made by 
        this title are'' and inserting ``Section 702 is''; and
            (2) by striking ``this title'' and inserting ``such 
        section''.

SEC. 23. STUDY TO IDENTIFY OBSTACLES TO USING VOUCHERS IN FEDERALLY 
              SUBSIDIZED HOUSING PROJECTS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of (1) the housing voucher program authorized under 
section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)), and (2) other federally subsidized housing programs, to 
determine whether any statutory, regulatory, or administrative 
provisions of the housing voucher program or of other federally 
subsidized housing programs, or policies and practices of housing 
owners or public housing agencies or other agencies, may have the 
effect of making occupancy by voucher holders in federally subsidized 
housing projects more difficult to obtain than occupancy by non-voucher 
holders. In conducting the study required under this subsection the 
Comptroller General shall determine if any gaps exist in the statute, 
regulations, or administration of the housing voucher program or of 
other federally subsidized housing programs and policies and practices 
of housing owners or public housing agencies or other agencies that, if 
addressed, could eliminate or reduce obstacles to voucher holders in 
seeking occupancy in federally subsidized housing projects. Such study 
shall include data on the use of housing vouchers in federally 
subsidized housing projects.
    (b) Definition.--As used in this section, the term ``federally 
subsidized housing projects'' includes projects assisted pursuant to 
the HOME investment partnerships program under title II of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et 
seq.) and those projects receiving the benefit of low-income housing 
credits under section 42 of the Internal Revenue Code of 1986 (26 
U.S.C. 42).
    (c) Report.--Not later than 6 months after the date of enactment of 
this Act, the Comptroller General shall report to Congress the findings 
from the study required under subsection (a) and any recommendations 
for statutory, regulatory, or administrative changes.

SEC. 24. INTERAGENCY COUNCIL ON HOMELESSNESS.

    (a) Technical Correction.--Section 202(e) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11312), as amended by section 1004 
of division B of Public Law 111-22, is amended by striking ``Chairman'' 
and inserting ``Chairperson''.
    (b) Duties.--Section 203 of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11313), as amended by section 1004 of Public Law 111-22, 
is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (6) through (13) as 
                paragraphs (9) through (16), respectively;
                    (B) in paragraph (1), by inserting ``which shall 
                set forth actions to accomplish the goal of ending 
                homelessness,'' after ``National Strategic Plan to End 
                Homelessness,'';
                    (C) in paragraph (3), by inserting before the 
                semicolon at the end the following: ``and ensure that 
                related programs and activities to assist homeless 
                individuals of Federal agencies are coordinated with 
                each other''; and
                    (D) by inserting after paragraph (5) the following 
                new paragraphs:
            ``(6) make recommendations, in the reports submitted 
        pursuant to subsection (c) on--
                    ``(A) long-term goals for the Congress to reduce 
                homelessness; and
                    ``(B) legislative strategies for the Congress to 
                achieve such goals;
            ``(7) evaluate the Federal role in interacting and 
        coordinating with State and local entities that address 
        homelessness;
            ``(8) conduct research and develop methods--
                    ``(A) through consultation with State and local 
                agencies, to improve coordination between the Council 
                and Federal agencies in existence upon the date of 
                enactment of the Interagency Council on Homelessness 
                Reform Act of 2009 that specifically deal with 
                homelessness; and
                    ``(B) to minimize the period during which 
                individuals remain homeless;''; and
            (2) in subsection (c), by adding at the end the following 
        new paragraphs:
            ``(3) Biennial report.--The Council shall prepare and 
        transmit to the President and the Congress a biennial report 
        detailing the efforts of the Council to address homelessness.
            ``(4) Public availability.--The Council shall make each 
        report submitted to the Congress pursuant to paragraph (1), 
        (2), or (3) of this subsection, and the national plan and 
        updates of such plan submitted pursuant to paragraph (1) of 
        subsection (a), publicly available, including through posting 
        on a World Wide Web site maintained by the Council.''.
    (c) Authorization of Appropriations.--Section 208 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11318), as amended by section 
1004 of division B of Public Law 111-22, is amended by striking 
``fiscal years 2011'' and inserting ``each of fiscal years 2011 through 
2015''.

SEC. 25. STUDY OF EFFECTS OF SECTION 8 PROGRAM ON HUD BUDGET AND 
              PROGRAMS.

    The Comptroller General of the United States shall conduct a study 
to identify and analyze the effects that the rental assistance program 
under section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) has on the other programs administered by the Secretary of 
Housing and Urban Development and on the overall budget for the 
Department of Housing and Urban Development. Not later than the 
expiration of the 6-month period beginning on the date of the enactment 
of this Act, the Comptroller General shall submit a report to the 
Congress setting forth the results and conclusions of the study under 
this section.

SEC. 26. HOUSING INNOVATION PROGRAM.

    (a) Establishment of Program.--Title I of the United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end 
the following new section:

``SEC. 37. HOUSING INNOVATION PROGRAM.

    ``(a) Purpose.--The purpose of this section is to establish a 
program under which public housing agencies are given the flexibility 
to design, and the Secretary is given the responsibility to evaluate, 
innovative approaches to providing housing assistance that--
            ``(1) increase housing opportunities for low-, very low-, 
        and extremely low-income families, including preserving, 
        modernizing, rehabilitating, reconfiguring, or replacing public 
        housing at risk of physical deterioration or obsolescence, 
        developing additional affordable housing, providing supportive 
        housing, and increasing the number of families receiving 
        tenant-based rental assistance;
            ``(2) provide financial incentives and other support 
        mechanisms to families to obtain employment and increase earned 
        income, and achieve economic self-sufficiency, while protecting 
        very low- and extremely low-income families from increased rent 
        burdens;
            ``(3) utilize funds in a more effective or cost-efficient 
        manner, including achieving energy, administrative, and other 
        cost savings;
            ``(4) leverage other Federal, State, and local funding 
        sources, including the low-income housing tax credit program, 
        to expand and preserve affordable housing opportunities, 
        including public housing;
            ``(5) test alternative rent-setting policies to determine 
        whether rent determinations can be simplified and 
        administrative cost savings can be realized while protecting 
        extremely low- and very low-income families from increased rent 
        burdens;
            ``(6) are subject to rigorous evaluation to test the 
        effectiveness of such innovative approaches; and
            ``(7) are developed with the support of the local community 
        and with the substantial participation of affected residents.
    ``(b) Program Authority.--
            ``(1) Scope.--
                    ``(A) Priority strategy agencies.--The Secretary 
                shall carry out a housing innovation program under this 
                section under which the Secretary shall designate such 
                number of public housing agencies, which shall not 
                exceed 60, to participate in the housing innovation 
                program as may be necessary, in conjunction with 
                agencies approved for continued program participation 
                pursuant to subsection (c), to demonstrate the 
                effectiveness of the priority strategies identified in 
                subsection (d)(2).
                    ``(B) Additional program agencies.--The Secretary 
                shall also designate such number of additional 
                agencies, which shall not exceed 20, to participate in 
                the program under the terms of subsection (i) as may be 
                necessary to demonstrate other innovative strategies as 
                the Secretary or applicants may propose.
                    ``(C) Transfer of existing mtw agencies.--The 
                Secretary shall also approve and transfer into the 
                program existing MTW agencies pursuant to subsection 
                (c).
            ``(2) Duration.--The Secretary may carry out the housing 
        innovation program under this section only during the 10-year 
        period beginning on the date of the enactment of the Section 8 
        Voucher Reform Act of 2009.
    ``(c) Participation of Existing MTW Agencies.--
            ``(1) In general.--Subject to the requirements of paragraph 
        (2), all existing MTW agencies shall be designated to 
        participate in the program.
            ``(2) Conditions of participation.--The Secretary shall 
        approve and transfer into the housing innovation program under 
        this section each existing MTW agency that the Secretary 
        determines--
                    ``(A) is not in default under such agreement;
                    ``(B) is meeting the goals and objectives of its 
                moving to work plan; and
                    ``(C) with respect to any agency that has been 
                audited by the Inspector General of the Department of 
                Housing and Urban Development and that the Inspector 
                General has determined was not complying with program 
                rules, is currently complying with such rules; the 
                Secretary shall provide an agency that the Secretary 
                determines is not in compliance a reasonable period of 
                time to achieve such compliance.
            ``(3) Terms of participation.--Any agency approved for 
        transfer into the housing innovation program may, at its 
        option, be subject to the provisions of subsection (d)(3), in 
        lieu of an agreement currently in place with the Secretary for 
        participation in the Moving to Work program. Each agency shall, 
        within two years after the date of the enactment of the Section 
        8 Voucher Reform Act of 2009, make changes to its policies that 
        were implemented before such date of enactment in order to 
        comply with the requirements of this section. Existing MTW 
        agencies shall not be required to comply with any requirements 
        under subsection (d).
    ``(d) Additional Agencies.--
            ``(1) Proposals; selection process.--In addition to 
        agencies participating in the program pursuant to subsection 
        (c), the Secretary shall, within 12 months after such date of 
        enactment, select public housing agencies to participate in the 
        program pursuant to a competitive process that meets the 
        following requirements:
                    ``(A) Any public housing agency may be selected to 
                participate in the program, except that not more than 5 
                agencies that are near-troubled under the public 
                housing assessment system and/or section 8 management 
                assessment program may be selected, and except that any 
                agency that is a troubled agency under either such 
                assessment program or for which the Secretary has hired 
                an alternative management entity for such agency or has 
                taken possession of all or any part of such agency's 
                public housing program shall not be eligible for 
                participation. Any near-troubled public housing agency 
                participating in the program shall remain subject to 
                the requirements of this Act governing tenant rent 
                contributions, eligibility, and continued 
                participation, and may not adopt policies described in 
                subsection (e)(4) (relating to rents and requirements 
                for continued occupation and participation).
                    ``(B) The process provides, to the extent possible 
                based on eligible agencies submitting applications and 
                taking into account existing MTW agencies participating 
                pursuant to subsection (c), for representation among 
                agencies selected of agencies having various 
                characteristics, including both large and small 
                agencies, agencies serving urban, suburban, and rural 
                areas, and agencies in various geographical regions 
                throughout the United States, and which may include the 
                selection of agencies that only administer the voucher 
                program under section 8(o).
                    ``(C) Any agency submitting a proposal under this 
                paragraph shall have provided notice to residents and 
                the local community, not later than 30 days before the 
                first of the two public meetings required under 
                subparagraph (D).
                    ``(D) The agency submitting a proposal shall hold 
                two public meetings to receive comments on the agency's 
                proposed application, on the implications of changes 
                under the proposal, and the possible impact on 
                residents.
                    ``(E) The process includes criteria for selection, 
                as follows:
                            ``(i) The extent to which--
                                    ``(I) if proposal is for the 
                                purpose of carrying out the priority 
                                strategy under paragraph (2)(A) of this 
                                subsection, the proposal is likely to 
                                achieve the purposes of increasing 
                                housing opportunities for low-, very 
                                low-, and extremely low-income 
                                families, including preserving, 
                                modernizing, rehabilitating, 
                                reconfiguring, or replacing public 
                                housing at risk of physical 
                                deterioration or obsolescence, 
                                developing additional affordable 
                                housing, providing supportive housing, 
                                or increasing the number of families 
                                receiving tenant-based rental 
                                assistance, or a combination of these 
                                purposes;
                                    ``(II) if the proposal is for the 
                                purpose of carrying out the priority 
                                strategy under paragraph (2)(B) of this 
                                subsection, the proposal is likely to 
                                achieve the purposes of families 
                                obtaining employment, increasing earned 
                                income, or achieving economic self-
                                sufficiency, while protecting extremely 
                                low- and very low-income families from 
                                increased rent burdens;
                                    ``(III) if the proposal is for the 
                                purpose of carrying out an innovative 
                                strategy under paragraph (2)(C) of this 
                                subsection, the proposal is likely to 
                                utilize funds in a more effective or 
                                cost-efficient manner, including 
                                achieving energy, administrative, or 
                                other cost-savings; or
                                    ``(IV) if the proposal is for the 
                                purpose of carrying out an innovative 
                                strategy pursuant to subsection 
                                (b)(1)(B), the proposal is likely to 
                                achieve the goals and objectives of 
                                such strategy.
                            ``(ii) The extent to which the proposal 
                        generally identifies statutory provisions and 
                        existing rules and regulations that impede 
                        achievement of the goals and objectives of the 
                        proposal and an explanation of why a waiver of 
                        such statutory provisions, rules, and 
                        regulations is necessary to achieve such goals 
                        and objectives.
                            ``(iii) The extent to which the agency has 
                        a successful history of implementing or has 
                        expertise in strategies similar to those set 
                        forth in the agency's proposal.
                            ``(iv) The extent of commitment and funding 
                        for carrying out the proposal by local and 
                        State government agencies and nonprofit 
                        organizations, including the provision of 
                        additional funding and other services, and the 
                        extent of support for the proposal by 
                        residents, resident advisory boards, and 
                        members of the local community.
                            ``(v) Such other factors as the Secretary 
                        may establish, in consultation with 
                        participating agencies and agencies interested 
                        in participating in the program, program 
                        stakeholders, and any entity conducting 
                        evaluations pursuant to subsection (f).
            ``(2) Priority strategies.--For purposes of the first 
        sentence of paragraph (b)(1), the following are priority 
        strategies:
                    ``(A) Increasing housing opportunities.--A strategy 
                of development of increasing housing opportunities for 
                low-, very low-, and extremely low-income families, 
                including preserving, modernizing, rehabilitating, 
                reconfiguring, or replacing public housing at risk of 
                physical deterioration or obsolescence, developing 
                additional affordable housing, providing supportive 
                housing, or increasing the number of families receiving 
                tenant-based rental assistance, or a combination of 
                these purposes, and which may include leveraging other 
                Federal, State, and local funding sources.
                    ``(B) Rent reforms and family self-sufficiency.--A 
                strategy to implement rent reforms and other self-
                sufficiency incentives or resources, which shall be 
                designed to help families obtain employment, increase 
                their earned income, or achieve economic self-
                sufficiency, while protecting extremely low- and very 
                low-income families from increased rent burdens.
                    ``(C) Cost-effectiveness.--A strategy to utilize 
                funds in a more effective or cost-efficient manner, 
                including achieving energy, administrative, or other 
                cost-savings.
            ``(3) Contract amendment.--After selecting agencies under 
        this subsection, the Secretary shall promptly amend the 
        applicable annual contributions contracts of such agencies to 
        provide that--
                    ``(A) subject to compliance with all program rules 
                under this section, such agencies may implement any 
                policies and activities that are not inconsistent with 
                this section, without specifying such policies and 
                activities in such amendment and without negotiating or 
                entering into any other agreements with the Secretary 
                specifying such policies and activities; and
                    ``(B) the policies and activities to be implemented 
                by an agency under the program in a given year shall be 
                described in and subject to the requirements of the 
                annual plan under subsection (e)(11).
            ``(4) Maintaining participation rate.--If, at any time 
        after the initial selection period under paragraph (1), the 
        number of public housing agencies participating in the program 
        falls below the number selected pursuant to paragraph (1), the 
        Secretary shall promptly solicit applications from and select 
        public housing agencies to participate in the program under the 
        terms and conditions for application and selection provided in 
        this section to increase the number of participating agencies 
        to the number initially selected pursuant to paragraph (1).
    ``(e) Program Requirements.--
            ``(1) Program funds.--
                    ``(A) In general.--To carry out a housing 
                innovation program under this section, the 
                participating agency may use amounts provided to the 
                agency from the Operating Fund under section 9(e), 
                amounts provided to the agency from the Capital Fund 
                under section 9(d), and amounts provided to the agency 
                for voucher assistance under section 8(o). Such program 
                funds may be used for any activities that are 
                authorized by section 8(o) or 9, or for other 
                activities that are not inconsistent with this section, 
                which may include, without limitation--
                            ``(i) providing capital and operating 
                        assistance, and financing for housing 
                        previously developed or operated pursuant to a 
                        contract between the Secretary and such agency;
                            ``(ii) the acquisition, new construction, 
                        rehabilitation, financing, and provision of 
                        capital or operating assistance for low-income 
                        housing (including housing other than public 
                        housing) and related facilities, which may be 
                        for terms exceeding the term of the program 
                        under this section in order to secure other 
                        financing for such housing;
                            ``(iii) costs of site acquisition and 
                        improvement, providing utility services, 
                        demolition, planning, and administration of 
                        activities under this paragraph;
                            ``(iv) housing counseling for low-income 
                        families in connection with rental or 
                        homeownership assistance provided under the 
                        program;
                            ``(v) safety, security, law enforcement, 
                        and anticrime activities appropriate to protect 
                        and support families assisted under the 
                        program;
                            ``(vi) tenant-based rental assistance, 
                        which may include the project-basing of such 
                        assistance;
                            ``(vii) appropriate and reasonable 
                        financial assistance that is required to 
                        preserve low-income housing otherwise assisted 
                        under programs administered by the Secretary or 
                        under State or local low-income housing or 
                        public housing programs; and
                            ``(viii) family self-sufficiency activities 
                        for low-income families in connection with 
                        rental or homeownership assistance provided 
                        under the program.
                    ``(B) Combining funds.--Notwithstanding any other 
                provision of law, a participating agency may combine 
                and use program funds for any activities authorized 
                under this section, except that a participating agency 
                may use funds provided for assistance under section 
                8(o) for activities other than those authorized under 
                section 8(o) only if (i) in the calendar year prior to 
                its participation in the program, the agency utilized 
                not less than 95 percent of such funds allocated for 
                that calendar year for such authorized activities or 95 
                percent of its authorized vouchers; or (ii) after 
                approval to participate in the program, the agency 
                achieves such utilization for a 12-month period. Such 
                limitation shall not apply to participating agencies 
                approved by the Secretary to combine funds from 
                sections 8 and 9 of the Act prior to enactment of this 
                section. A public housing agency that uses funds 
                provided from assistance under section 8(o) for 
                activities not authorized under such subsection may not 
                terminate assistance to families assisted under such 
                subsection on the grounds of inadequate funding to the 
                extent such inadequacy is caused by such use of funds 
                for purposes not authorized under section 8(o).
            ``(2) Use of program funds.--In carrying out the housing 
        innovation program under this section, each participating 
        agency shall continue to assist--
                    ``(A) not less than substantially the same number 
                of eligible low-income families under the program as it 
                assisted in the base year for the agency; and
                    ``(B) a comparable mix of families by family size, 
                subject to adjustment to reflect changes in the 
                agency's waiting list, except that the Secretary may 
                approve exceptions to such requirements for up to 3 
                years based on modernization or redevelopment 
                activities proposed in an annual plan submitted and 
                approved in accordance with paragraph (11).
        Determinations with respect to the number of families required 
        to be served shall be adjusted to reflect any allocation of 
        additional vouchers under section 8(o), any change in annual 
        voucher proration factor, or such other appropriate adjustments 
        as the Secretary may establish. For purposes of subparagraphs 
        (A) and (B), the term `base year' means, with respect to 
        existing MTW agencies, the first full calendar year prior to 
        approval for entry into the moving to work demonstration. The 
        Secretary shall monitor and enforce compliance with the 
        requirements of subparagraph (A) on an annual basis.
            ``(3) Retained provisions.--Each agency that is approved 
        for program participation pursuant to subparagraph (A) or (B) 
        of subsection (b)(1) shall comply with all provisions of this 
        Act except those statutory provisions and existing rules and 
        regulations generally identified in the application for 
        participation in the program, except that the Secretary may 
        approve requests by an agency to waive compliance with other 
        statutes, regulations, and rules pursuant to this Act, 
        consistent with other program rules, if the Secretary 
        determines that such a request would further the goals and 
        objectives identified in the application for participation in 
        the program (taking into consideration public and resident 
        input pursuant to the procedure under paragraph (4)) or would 
        further the purposes identified in subparagraphs (B) and (C) of 
        subsection (f)(1). Notwithstanding any other provision of this 
        section, families receiving assistance under this section shall 
        retain the same rights of judicial review of agency action as 
        they would otherwise have had if the agency were not 
        participating in the program, and each participating agency, 
        including existing MTW agencies that are approved for transfer 
        into the program pursuant to subsection (c), shall comply with 
        the following provisions of this Act:
                    ``(A) Subsections (a)(2)(A) and (b)(1) of section 
                16 (relating to targeting for new admissions in the 
                public housing and voucher programs).
                    ``(B) Section 2(b) (relating to tenant 
                representatives on the public housing agency board of 
                directors).
                    ``(C) Section 3(b)(2) (relating to definitions for 
                the terms `low-income families' and `very low-income 
                families').
                    ``(D) Section 5(A)(e) (relating to the formation of 
                and consultation with a resident advisory board).
                    ``(E) Sections 6(f)(1) and 8(o)(8)(B) (relating to 
                compliance of units assisted with housing quality 
                standards or other codes).
                    ``(F) Sections 6(c)(3), 6(c)(4)(i), and 8(o)(6)(B) 
                (relating to rights of public housing applicants and 
                existing procedural rights for applicants under section 
                8(o)).
                    ``(G) Section 6(k) (relating to grievance 
                procedures for public housing tenants) and comparable 
                procedural rights for families assisted under section 
                8(o).
                    ``(H) Section 6(l) (relating to public housing 
                lease requirements), except that for units assisted 
                both with program funds and low-income housing tax 
                credits, the initial lease term may be less than 12 
                months if required to conform lease terms with such tax 
                credit requirements.
                    ``(I) Section 7 (relating to designation of housing 
                for elderly and disabled households), except that a 
                participating agency may make such designations (at 
                initial designation or upon renewal) for a term of up 
                to 5 years if the agency includes in its annual plan 
                under paragraph (11) an analysis of the impact of such 
                designations on affected households and such 
                designation is subject to the program evaluation. Any 
                participating agency with a designated housing plan 
                that was approved under the moving to work 
                demonstration may continue to operate under the terms 
                of such plan for a term of 5 years (with an option to 
                renew on the same terms for an additional 5 years) if 
                it includes in its annual plan an analysis of the 
                impact of such designations on affected households and 
                is subject to evaluation under subsection (f).
                    ``(J) Subparagraphs (C) through (E) of section 
                8(o)(7) and section 8(o)(20) (relating to lease 
                requirements and eviction protections for families 
                assisted with tenant-based assistance).
                    ``(K) Section 8(o)(13)(B) (relating to a percentage 
                limitation on project-based assistance), except that 
                for purposes of this subparagraph such section shall be 
                applied by substituting `50 percent' for `20 percent', 
                and all voucher funding that is used for non-tenant 
                based assistance purposes shall count towards this 
                calculation.
                    ``(L) Section 8(o)(13)(E) (relating to resident 
                choice for tenants of units with project-based 
                vouchers), except with respect to--
                            ``(i) in the case of agencies participating 
                        in the moving to work demonstration, any 
                        housing assistance payment contract entered 
                        into before or within 2 years after the 
                        enactment of this section;
                            ``(ii) project-based vouchers that replace 
                        public housing units;
                            ``(iii) not more than 10 percent of the 
                        vouchers available to the participating agency 
                        upon entering the housing innovation program 
                        under this section; and
                            ``(iv) any project-based voucher program 
                        that is subject to evaluation under subsection 
                        (f).
                Notwithstanding the exceptions under this subparagraph, 
                an agency may not eliminate resident choice under 
                section 8(o)(13)(E) for more than 25 percent of its 
                authorized vouchers.
                    ``(M) Section 8(r) (relating to portability of 
                voucher assistance), except that a participating agency 
                may receive funding for portability obligations under 
                section 8(dd) in the same manner as other public 
                housing agencies.
                    ``(N) Sections 8(ee) and 6(u) (relating to records, 
                certification and confidentiality regarding domestic 
                violence).
                    ``(O) Subsections (a) and (b) of section 12 
                (relating to payment of prevailing wages).
                    ``(P) Section 18 (relating to demolition and 
                disposition of public housing).
                    ``(Q) Requirements regarding--
                            ``(i) establishment of resident councils 
                        and jurisdiction-wide resident organizations;
                            ``(ii) public housing agency support for 
                        such councils and organizations; and
                            ``(iii) involvement of such councils and 
                        organizations in public housing agency 
                        operations;.
                as authorized under sections 3(c)(2), 6(c)(5)(C), and 
                9(e) and implemented by applicable regulations.
            ``(4) Rents and requirements for continued occupancy or 
        participation.--
                    ``(A) Before policy change.--Before adopting any 
                policy pursuant to participation in the housing 
                innovation program under this section that would make a 
                material adverse change to the requirements of this Act 
                regarding tenant rents or contributions, or conditions 
                of continued occupancy or participation, a 
                participating agency shall complete each of the 
                following actions:
                            ``(i) The agency shall conduct an impact 
                        analysis of the proposed policy on families the 
                        agency is assisting under the program under 
                        this section and on applicants on the waiting 
                        list, including analysis of the incidence and 
                        severity of rent burdens greater than 30 
                        percent of adjusted income on households of 
                        various sizes and types and in various income 
                        tiers, that would result, if any, without 
                        application of the hardship provisions. The 
                        analysis with respect to applicants on the 
                        waiting list may be limited to demographic data 
                        provided by the applicable consolidated plan, 
                        information provided by the Secretary, and 
                        other generally available information. The 
                        proposed policy, including provisions for 
                        addressing hardship cases and transition 
                        provisions that mitigate the impact of any rent 
                        increases or changes in the conditions of 
                        continued occupancy or participation, and data 
                        from this analysis shall be made available for 
                        public inspection and copying, on request, and 
                        for access through the Internet, for at least 
                        60 days in advance of the public meeting 
                        described in clause (ii).
                            ``(ii) The agency shall hold a public 
                        meeting regarding the proposed change, 
                        including the hardship provisions, which may be 
                        combined with a public meeting on the draft 
                        annual plan under paragraph (11) or the annual 
                        report under subsection (h)(2).
                            ``(iii) The board of directors or other 
                        similar governing body of the agency shall 
                        approve the change in public session.
                            ``(iv) The agency shall obtain approval 
                        from the Secretary of the annual plan or plan 
                        amendment. The Secretary may approve a plan or 
                        amendment containing a material change to the 
                        requirements of this Act regarding tenant rents 
                        or contributions, or conditions of continued 
                        occupancy or participation, only if the agency 
                        agrees that such policy may be included as part 
                        of the national evaluation.
                    ``(B) After policy change.--After adopting a policy 
                described in subparagraph (A), a program agency shall 
                complete each of the following actions:
                            ``(i) The agency shall provide adequate 
                        notice to residents, which shall include a 
                        description of the changes in the public 
                        housing lease or participation agreement that 
                        may be required and of the hardship or 
                        transition protections offered.
                            ``(ii) In the case of any additional 
                        requirements for continued occupancy or 
                        participation, the agency shall execute a lease 
                        addendum or participation agreement specifying 
                        the requirements applicable to both the 
                        resident and the agency. A resident may bring a 
                        civil action to enforce commitments of the 
                        agency made through the lease addendum or 
                        participation agreement.
                            ``(iii) The agency shall reassess rent, 
                        subsidy level, and policies on program 
                        participation no less often than every two 
                        years, which shall include preparing a revised 
                        impact analysis, and make available for public 
                        inspection and copying, on request, and for 
                        access through the Internet, the results of 
                        such reassessment and impact analysis. The 
                        requirement under this clause may be met by 
                        sufficiently detailed interim reports, if any, 
                        by the national evaluating entity.
                            ``(iv) The agency shall include in the 
                        annual report under subsection (h)(2) 
                        information sufficient to describe any hardship 
                        requests, including the number and types of 
                        requests made, granted, and denied, the use of 
                        transition rules, and adverse impacts resulting 
                        from changes in rent or continued occupancy 
                        policies, including actions taken by the agency 
                        to mitigate such impacts and impacts on 
                        families no longer assisted under the program.
                    ``(C) Applicability to existing mtw agencies.--An 
                existing MTW agency that, before the date of the 
                enactment of this section, implemented material changes 
                to the requirements of this Act regarding tenant rents 
                or contributions, or conditions of continued occupancy 
                or participation, as part of the moving to work 
                demonstration shall not be subject to subparagraph (A) 
                with regard to such previously implemented changes, but 
                shall comply with the requirements of subparagraph 
                (B)(ii) and provide the evaluation and impact analysis 
                required by subparagraph (B)(iii) by the end of the 
                second agency fiscal year ending after such date of 
                enactment.
            ``(5) Prohibition against decrease in program funds.--The 
        amount of program funds a participating agency receives shall 
        not be diminished by its participation in the housing 
        innovation program under this section.
            ``(6) Rent burden.--A participating agency may not adopt 
        rent policies that result in families making substantially 
        higher rent payments than would customarily be made by families 
        of comparable income under the program under which assistance 
        is provided.
            ``(7) Time limits.--A participating agency may implement 
        time limits on the term of housing assistance received by 
        families under the program only if--
                    ``(A) such limits are for a period of time not 
                shorter than 5 years; and
                    ``(B) enforcement of such limits is suspended for 
                any period of time during which the unemployment rate 
                in the area exceeds 10 percent.
            ``(8) Employment conditions.--A participating agency may 
        condition the receipt of housing assistance by families under 
        the program on requirements relating to the employment status 
        or related activities of one or more family members only if--
                    ``(A) such requirements are consistent with the 
                program for block grants to States for temporary 
                assistance for needy families under part A of title IV 
                of the Social Security Act;
                    ``(B) the agency establishes reasonable hardship 
                exemptions; and
                    ``(C) enforcement of such requirements is suspended 
                for any period of time during which the unemployment 
                rate in the area exceeds 10 percent.
            ``(9) Submission of information.--As part of the annual 
        report required under subsection (h)(2), each participating 
        agency shall submit information annually to the Secretary 
        regarding families assisted under the program of the agency and 
        comply with any other data submissions required by the 
        Secretary for purposes of evaluation of the program under this 
        section.
            ``(10) Public and resident participation.--Each 
        participating agency shall provide opportunities for resident 
        and public participation in the annual plan under paragraph 
        (11), as follows:
                    ``(A) Notice to residents.--
                            ``(i) Notice.--Each year, the agency shall 
                        provide notice to the low-income families it 
                        serves under the programs authorized by this 
                        section as to the impact of proposed policy 
                        changes and program initiatives and of the 
                        schedule of resident advisory board and public 
                        meetings for the annual plan.
                            ``(ii) Meeting.--The agency shall hold at 
                        least one meeting with the resident advisory 
                        board (including representatives of recipients 
                        of assistance under section 8) to review the 
                        annual plan for each year.
                    ``(B) Public meeting.--With respect to each annual 
                plan, the agency shall hold at least one annual public 
                meeting to obtain comments on the plan, which may be 
                combined with a meeting to review the annual report. In 
                the case of any agency that administers, in the 
                aggregate, more than 15,000 public housing units and 
                vouchers, or that operates in more than one county, the 
                agency shall hold additional meetings in locations that 
                promote attendance by residents and other stakeholders.
                    ``(C) Public availability.--Before adoption of any 
                annual plan, and not less than 30 days before the 
                public meeting required under subparagraph (A)(ii) with 
                respect to the plan, the agency shall make the proposed 
                annual plan available for public inspection and 
                copying, on request, and for access through the 
                Internet. The annual plan shall be made available for 
                public inspection not less than 30 days before approval 
                by the board of directors (or other similar governing 
                body) of the agency and shall remain publicly 
                available.
                    ``(D) Board approval.--Before submitting an annual 
                plan or annual report to the Secretary, the plan or 
                report, as applicable, shall be approved in a public 
                meeting by the board of directors or other governing 
                body of the agency.
            ``(11) Annual plan.--
                    ``(A) Requirement.--For each year that a 
                participating agency participates in the housing 
                innovation program under this section, the agency shall 
                submit to the Secretary, in lieu of all other planning 
                requirements, an annual plan under this paragraph.
                    ``(B) Contents.--Each annual plan shall include the 
                following information:
                            ``(i) A list and description of all program 
                        initiatives and generally applicable policy 
                        changes, including references to affected 
                        provisions of law or the implementing 
                        regulations affected.
                            ``(ii) A description and comparison of 
                        changes under the housing innovation program of 
                        the agency from the plan for such program for 
                        the preceding year.
                            ``(iii) A description of property 
                        redevelopment or portfolio repositioning 
                        strategies and proposed changes in policies or 
                        uses of funds required to implement such 
                        strategies.
                            ``(iv) Documentation of public and resident 
                        participation sufficient to comply with the 
                        requirements under paragraphs (4) and (10), 
                        including a copy of any recommendations 
                        submitted in writing by the resident advisory 
                        board of the agency and members of the public, 
                        a summary of comments, and a description of the 
                        manner in which the recommendations were 
                        addressed.
                            ``(v) Certifications by the agency that--
                                    ``(I) the annual plan will be 
                                carried out in conformity with title VI 
                                of the Civil Rights Act of 1964, the 
                                Fair Housing Act, section 504 of the 
                                Rehabilitation Act of 1973, title II of 
                                the Americans with Disabilities Act of 
                                1990, and the rules, standards, and 
                                policies in the approved plan;
                                    ``(II) the agency will 
                                affirmatively further fair housing; and
                                    ``(III) the agency has complied and 
                                will continue to comply with its 
                                obligations under the national 
                                evaluation.
                            ``(vi) A description of the agency's local 
                        asset management strategy for public housing 
                        properties, which shall be in lieu of any other 
                        asset management, project based management or 
                        accounting, or other system of allocating 
                        resources and costs to participating agency 
                        assets or cost centers that the Secretary may 
                        otherwise impose under this Act.
                    ``(C) Changes.--If the agency proposes to make 
                material changes in policies or initiatives in the plan 
                during the year covered by the plan, the agency shall 
                consult with the resident advisory board for the agency 
                established pursuant to section 5A(e) and the public 
                regarding such changes before their adoption.
                    ``(D) Approval process.--
                            ``(i) Timing.--The Secretary shall review 
                        and approve or disapprove each annual plan 
                        submitted to the Secretary within 45 days after 
                        such submission. The Secretary, directly or 
                        through the public housing agency, shall make 
                        information relating to such approval or 
                        disapproval available to all members of the 
                        Resident Advisory Board of the public housing 
                        agency.
                            ``(ii) Standards for disapproval.--The 
                        Secretary may disapprove a plan only if--
                                    ``(I) the Secretary reasonably 
                                determines, based on information 
                                contained in the annual plan or annual 
                                report, that the agency is not in 
                                compliance with the requirements of 
                                this section;
                                    ``(II) the annual plan or most 
                                recent annual report is not consistent 
                                with other reliable information 
                                available to the Secretary; or
                                    ``(III) the annual plan or annual 
                                report or the agency's activities under 
                                the program are not otherwise in 
                                accordance with applicable law.
                            ``(iii) Failure to disapprove.--If a 
                        submitted plan is not disapproved within 45 
                        days after submission, the plan shall be 
                        considered to be approved for purposes of this 
                        section. The preceding sentence shall not 
                        preclude judicial review regarding such 
                        compliance pursuant to chapter 7 of title 5, 
                        United States Code, or an action regarding such 
                        compliance under section 1979 of the Revised 
                        Statutes of the United States (42 U.S.C. 1983).
    ``(f) Evaluation of Performance.--
            ``(1) In general.--The Secretary shall conduct detailed 
        evaluations of all public housing agencies participating in the 
        program under this section--
                    ``(A) to determine the level of success of each 
                public housing agency in achieving the goals and 
                objectives of the application to participate in the 
                program;
                    ``(B) to determine the level of success of 
                different types of proposals in achieving the priority 
                strategies of subsection (d)(2) or other innovative 
                strategies identified pursuant to subsection (b)(1); 
                and
                    ``(C) to identify program models that can be 
                replicated by other agencies to achieve such success.
            ``(2) Evaluation methodology.--Evaluations under this 
        subsection shall be conducted utilizing rigorous research 
        methodology which shall incorporate, where appropriate and to 
        the extent funding is available, the following:
                    ``(A) Comparison of the impact on families to 
                similar types of families not subject to such policies.
                    ``(B) Comparisons of alternative strategies for 
                advancing common goals.
                    ``(C) An examination of the costs, outputs, and 
                outcomes of tested strategies.
                    ``(D) A process evaluation that examines the 
                challenges faced in implementing tested strategies and 
                how those challenges were overcome.
                    ``(E) A qualitative examination of the impacts of 
                tested strategies on affected families, including 
                families on agency waiting lists.
                    ``(F) An examination of the impact of tested 
                strategies on the housing needs and conditions of the 
                jurisdiction in which the agency works.
                    ``(G) Appropriate sensitivity to the costs that 
                evaluation places on participating agencies, including 
                a recognition that smaller agencies may have more 
                difficulty than larger agencies in responding to data 
                requests.
            ``(3) Advisory council.--The Secretary shall establish an 
        Advisory Council to provide input on the policies and 
        strategies to be tested in evaluations under this subsection, 
        data collection protocols, and other matters related to the 
        success of the evaluation, and to assist the evaluating entity 
        and the Secretary in interpreting the findings and formulating 
        recommendations to the Congress to be included in the final 
        report. The Secretary may also establish a separate Technical 
        Advisory Group to provide input on technical issues associated 
        with the evaluation.
            ``(4) Reports.--
                    ``(A) In general.--The Secretary shall submit three 
                reports to the Congress, as provided in subparagraph 
                (B), evaluating the programs of all public housing 
                agencies participating in the program under this 
                section and all agencies participating in the moving to 
                work demonstration. Each such report shall include 
                findings and recommendations for any appropriate 
                legislative action.
                    ``(B) Timing.--The reports under this paragraph 
                shall include--
                            ``(i) an initial report, which shall be 
                        submitted before the expiration of the 2-year 
                        period beginning on the date on which 
                        additional agencies are approved for 
                        participation pursuant to subsection (d);
                            ``(ii) an interim report, which shall be 
                        submitted before the expiration of the 4-year 
                        period beginning on such date of approval; and
                            ``(iii) a final report, which shall be 
                        submitted before the expiration of the 10-year 
                        period beginning on the date of the enactment 
                        of the Section 8 Voucher Reform Act of 2009.
            ``(5) Evaluating entity.--The Secretary may contract out 
        the responsibilities under this paragraphs (1) and (2) to an 
        independent entity that is qualified to perform such 
        responsibilities.
            ``(6) Performance measures.--The Secretary or the 
        evaluating entity, as applicable, shall establish performance 
        measures, which may include--
                    ``(A) a baseline performance level against which 
                program activities may be evaluated; and
                    ``(B) performance measures for each of the five 
                purposes identified in paragraphs (1) through (5) of 
                subsection (a).
    ``(g) Impact of Policy on Families Being Assisted.--
            ``(1) Modification of policy.--If an evaluation of an 
        agency pursuant to subsection (f)(1)(A) includes evidence that 
        a policy adopted by an agency is or has been harmful to 
        families assisted by the agency, the Secretary may, after the 
        publication of either the initial or the interim report 
        pursuant to subsection (f)(4)(B), require such agency to take 
        appropriate actions to modify such policy to ameliorate such 
        harm.
            ``(2) Determination.--The Secretary may not take such 
        action unless the Secretary has made a determination that such 
        policy is causing or has caused measurable harm to families 
        currently or previously assisted, based on a reduction in the 
        overall number of families receiving housing assistance, 
        noncompliance with the provision of subsection (e)(6) (relating 
        to rent burdens), specific types of families losing their 
        housing assistance, a reduction in the number of affordable 
        rental housing units operated by the agency, noncompliance with 
        the requirements of subsection (e)(3)(A) (relating to 
        targeting), or a combination of such factors.
            ``(3) Advice and opportunity to contest.--Before taking 
        such action, the Secretary shall advise the agency and give the 
        agency a fair opportunity to contest such determination or 
        action. If an agency contests such a determination or action, 
        the Secretary shall provide an opportunity for interested 
        parties to submit additional relevant evidence.
    ``(h) Recordkeeping, Reports, and Audits.--
            ``(1) Recordkeeping.--Each public housing agency 
        participating in the program under this section shall keep such 
        records as the Secretary may prescribe as reasonably necessary 
        to disclose the amounts and the disposition of amounts under 
        the program, to ensure compliance with the requirements of this 
        section, and to measure performance.
            ``(2) Reports.--In lieu of all other reporting 
        requirements, each such agency participating in the program 
        shall submit to the Secretary an annual report in a form and at 
        a time specified by the Secretary. Each annual report shall 
        include the following information:
                    ``(A) A description, including an annual 
                consolidated financial report, of the sources and uses 
                of funds of the agency under the program, which shall 
                account separately for funds made available under 
                section 8 and subsections (d) and (e) of section 9, and 
                shall compare the agency's actions under the program 
                with its annual plan for the year.
                    ``(B) An annual audit that complies with the 
                requirements of Circular A-133 of the Office of 
                Management and Budget, including the OMB Compliance 
                Supplement.
                    ``(C) A description of each hardship exception 
                requested and granted or denied, and of the use of any 
                transition rules.
                    ``(D) Documentation of public and resident 
                participation sufficient to comply with the 
                requirements under paragraph (7).
                    ``(E) A comparison of income and the sizes and 
                types of families assisted by the agency under the 
                program compared to those assisted by the agency in the 
                base year.
                    ``(F) Every two years, an evaluation of rent 
                policies, subsidy level policies, and policies on 
                program participation.
                    ``(G) A description of any ongoing local 
                evaluations and the results of any local evaluations 
                completed during the year.
            ``(3) Access to documents by secretary.--The Secretary 
        shall have access for the purpose of audit and examination to 
        any books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            ``(4) Access to documents by the comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            ``(5) Reports regarding evaluations.--The Secretary shall 
        require each public housing agency participating in the program 
        under this section to submit to the Secretary such information 
        as the Secretary considers appropriate to permit the Secretary 
        to evaluate (pursuant to subsection (f)) the performance and 
        success of the agency in achieving the purposes of the program.
    ``(i) Additional Program Agencies.--In participating in the program 
under the terms of this subsection, the public housing agencies 
designated for such participation shall be subject to the requirements 
of this section, and the additional following requirements:
            ``(1) Applicability of certain existing provisions.--Such 
        agencies shall be subject to the provisions of--
                    ``(A) subsections (a) and (b) of section 3; and
                    ``(B) section 8(o), except for paragraph (11) and 
                except as the requirements of section 8(o) are modified 
                by subsection (e)(3) of this section.
            ``(2) No time limits.--Such agencies may not impose time 
        limits on the term of housing assistance received by families 
        under the program.
            ``(3) No employment conditions.--Such agencies may not 
        condition the receipt of housing assistance by families under 
        the program on the employment status of one or more family 
        members.
            ``(4) One-for-one replacement.--
                    ``(A) Conditions on demolition.--Such agencies may 
                not demolish or dispose of any dwelling unit of public 
                housing operated or administered by such agency 
                (including any uninhabitable unit and any unit 
                previously approved for demolition) except pursuant to 
                a plan for replacement of such units in accordance 
                with, and approved by the Secretary of Housing and 
                Urban Development pursuant to, subparagraph (B).
                    ``(B) Plan requirements.--The Secretary may not 
                approve a plan that provides for demolition or 
                disposition of any dwelling unit of public housing 
                referred to in subparagraph (A) unless--
                            ``(i) such plan provides for outreach to 
                        public housing agency residents in accordance 
                        with paragraph (5);
                            ``(ii) not later than 60 days before the 
                        date of the approval of such plan, such agency 
                        has convened and conducted a public hearing 
                        regarding the demolition or disposition 
                        proposed in the plan;
                            ``(iii) such plan provides that for each 
                        such dwelling unit demolished or disposed of, 
                        such public housing agency will provide an 
                        additional dwelling unit through--
                                    ``(I) the acquisition or 
                                development of additional public 
                                housing dwelling units; or
                                    ``(II) the acquisition, 
                                development, or contracting (including 
                                through project-based assistance) of 
                                additional dwelling units that are 
                                subject to requirements regarding 
                                eligibility for initial or continued 
                                occupancy, tenant contribution toward 
                                rent, and long-term affordability 
                                restrictions which are comparable to 
                                public housing units, except that no 
                                household may be prevented from 
                                occupying a replacement dwelling unit 
                                provided pursuant to clause (iii) 
                                except to the extent specifically 
                                provided by any other provision of 
                                Federal law (including subtitle F of 
                                title V of the Quality Housing and Work 
                                Responsibility Act of 1998 (42 U.S.C. 
                                13661 et seq.; relating to safety and 
                                security in public and assisted 
                                housing, subtitle D of title VI of the 
                                Housing and Community Development Act 
                                of 1992 (42 U.S.C. 13611 et seq.; 
                                relating to preferences for elderly and 
                                disabled residents), and section 16(f) 
                                of this Act (42 U.S.C. 1437n(f)); 
                                relating to ineligibility of persons 
                                convicted of methamphetamine offenses);
                            ``(iv) such plan provides for a right, and 
                        implementation of such right, to occupancy of 
                        additional dwelling units provided in 
                        accordance with clause (iii), for households 
                        who, as of the time that dwelling units 
                        demolished or disposed of were vacated to 
                        provide for such demolition or disposition, 
                        were occupying such dwelling units;
                            ``(v) such plan provides that the proposed 
                        demolition or disposition and relocation will 
                        be carried out in a manner that affirmatively 
                        furthers fair housing, as described in 
                        subsection (e) of section 808 of the Civil 
                        Rights Act of 1968;
                            ``(vi) such plan provides for a mixed-
                        income development on the site of the original 
                        public housing, with at least one-third of all 
                        dwelling units being provided through the 
                        development of additional public housing 
                        dwelling units, except that upon a showing by 
                        the agency, if the Secretary determines that 
                        such location is infeasible, an agency may 
                        locate such a development in areas within the 
                        jurisdiction of the agency having low 
                        concentrations of poverty; and
                            ``(vii) to the extent that such plan 
                        provides for the provision of replacement or 
                        additional dwelling units, or redevelopment, in 
                        phases over time, such plan provides that the 
                        ratio of dwelling units described in subclauses 
                        (I) and (II) of clause (iii) that are provided 
                        in any such single phase to the total number of 
                        dwelling units provided in such phase is not 
                        less than the ratio of the aggregate number of 
                        such dwelling units provided under the plan to 
                        the total number of dwelling units provided 
                        under the plan.
                    ``(C) Inapplicable provisions.--Subparagraphs (B) 
                and (D) of section 8(o)(13) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) shall not 
                apply with respect to vouchers used to comply with the 
                requirements of subparagraph (B)(iii) of this 
                paragraph.
                    ``(D) Monitoring.--The Secretary shall provide for 
                the appropriate field offices of the Department to 
                monitor and supervise the enforcement of this paragraph 
                and plans approved under this paragraph and to consult, 
                regarding such monitoring and enforcement, with 
                resident councils of, and resident of public housing 
                operated or administered by, the agency.
            ``(5) Comprehensive outreach plan.--No program funds of 
        such agencies may be use to demolish or dispose of any public 
        housing dwelling units except in accordance with a 
        comprehensive outreach plan for such activities, developed by 
        the agency in conjunction with the residents of the public 
        housing agency, as follows:
                    ``(A) The plan shall be developed by the agency and 
                a resident task force, which may include members of the 
                Resident Council, but may not be limited to such 
                members, and which shall represent all segments of the 
                population of residents of the agency, including single 
                parent-headed households, the elderly, young employed 
                and unemployed adults, teenage youth, and disabled 
                persons.
                    ``(B) The votes and agreements regarding the plan 
                shall involve--
                            ``(i) in the case of any public housing 
                        agency that administers 250 or fewer public 
                        housing dwelling units, not less than 10 
                        percent of affected residents; and
                            ``(ii) in the case of any public housing 
                        agency that administers more than 250 public 
                        housing dwelling units, not less than 25 
                        affected residents.
                    ``(C) The plan shall provide for and describe 
                outreach efforts to inform residents of the program 
                under this subsection, including a door-to-door 
                information program, monthly newsletters to each 
                resident household, monthly meetings dedicated solely 
                to every aspect of the proposed development, including 
                redevelopment factors, which shall include the one-for-
                one replacement requirement under paragraph (4), 
                resident rights to return, the requirements of the 
                program under this subsection, new resident support and 
                community services to be provided, opportunities for 
                participation in architectural design, and employment 
                opportunities for residents, which shall make available 
                at least 30 percent of the total hours worked at all 
                such employment, and shall also make available at least 
                25 percent of unskilled jobs in demolition activities 
                and 25 percent of unskilled jobs in construction 
                activities related to the redevelopment project, 
                including job training, apprenticeships, union 
                membership assistance.
                    ``(D) The plan shall provide for regularly 
                scheduled monthly meeting updates and a system for 
                filing complaints about any aspect of the redevelopment 
                process.
    ``(j) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Existing mtw agency.--The term `existing MTW agency' 
        means a public housing agency that as of the date of the 
        enactment of the Section 8 Voucher Reform Act of 2009 has an 
        existing agreement with the Secretary pursuant to the moving to 
        work demonstration, or is authorized to enter into such an 
        agreement under section 230 of the Transportation, Housing and 
        Urban Development, and Related Agencies Appropriations Act, 
        2008 (Public Law 110-161; 121 Stat. 2438) or section 236 of the 
        Transportation, Housing and Urban Development, and Related 
        Agencies Appropriations Act, 2009 (Division I of Public Law 
        111-8).
            ``(2) Base year.--The term `base year' means, with respect 
        to a participating agency, the agency fiscal year or calendar 
        year, as appropriate, most recently completed prior to 
        selection and approval for participation in the housing 
        innovation program under this section.
            ``(3) Moving to work demonstration.--The term `moving to 
        work demonstration' means the moving to work demonstration 
        program under section 204 of the Departments of Veterans 
        Affairs and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).
            ``(4) Participating agencies.--The term `participating 
        agencies' means public housing agencies designated and approved 
        for participation, and participating, in the housing innovation 
        program under this section.
            ``(5) Program funds.--The term `program funds' means, with 
        respect to a participating agency, any amounts that the agency 
        is authorized, pursuant to subsection (e)(1), to use to carry 
        out the housing innovation program under this section of the 
        agency.
            ``(6) Residents.--The term `residents' means, with respect 
        to a public housing agency, tenants of public housing of the 
        agency and participants in the voucher or other housing 
        assistance programs of the agency funded under section 8(o), or 
        tenants of other units owned by the agency and assisted under 
        this section.
    ``(k) Resident Technical Assistance.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated for each of fiscal years 2010 through 2014 
        $10,000,000, for providing capacity building and technical 
        assistance to enhance the capabilities of low-income families 
        assisted or eligible for assistance under the program under 
        this section to participate in the process for establishment 
        and revision of annual plans under this section for 
        participating agencies, including review and comment on impact 
        analyses and demolition or disposition proposals.
            ``(2) Criteria for award of funds.--The Secretary shall 
        publish the criteria to be used to award funds on a competitive 
        basis, in an amount appropriate to the number of households 
        affected by the program of the participating agency or agencies 
        that such participating agency assists, to local, regional, 
        State, or national organizations that--
                    ``(A)(i) have members who are predominantly low-
                income;
                    ``(ii) have low-income individuals on their boards 
                of directors; or
                    ``(iii) directly work with or represent low-income 
                individuals;
                    ``(B) have the legal, policy, and development 
                expertise to provide such assistance or will 
                subcontract for such services; and
                    ``(C) have a demonstrated capacity to manage 
                similar grants.
            ``(3) Public housing agencies.--
                    ``(A) Ineligibility; nonliability.--Public housing 
                agencies shall not be eligible to receive funds under 
                this subsection, and shall not be liable for the action 
                of any grantee.
                    ``(B) Cooperation with grantees.--Public housing 
                agencies participating in the program under this 
                section shall cooperate with grantees receiving 
                technical assistance funds under this subsection, to 
                assist such grantees to reach families assisted under 
                the program.
    ``(l) Authorization of Appropriations for Evaluations.--There is 
authorized to be appropriated $15,000,000 to the Department of Housing 
and Urban Development for the purpose of conducting the evaluations 
required under subsection (f)(1).''.
    (b) GAO Report.--Not later than 48 months after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit a report to the Congress on the extent to which the public 
housing agencies participating in the housing innovation program under 
section 37 of the United States Housing Act of 1937 are meeting the 
goals and purposes of such program, as identified in subsection (a) of 
such section 37.

SEC. 27. STUDY OF USE OF INCOME DATABASES TO REDUCE SUBSIDY ERRORS.

    The Comptroller General of the United States shall conduct a study 
to identify databases regarding incomes of families and individuals 
that may be used in connection with the voucher program for rental 
assistance under section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)), the public housing program under such Act, and 
project-based rental assistance programs under section 8 of such Act to 
reduce errors in subsidy amounts provided on behalf of recipients of 
assistance under such programs and to determine how best to utilize 
such databases for such purpose. In conducting such study, the 
Comptroller General shall analyze and consider the use of income 
information maintained in the National Directory of New Hires database 
of the Department of Health and Human Services. Not later than the 
expiration of the 9-month period beginning on the date of the enactment 
of this Act, the Comptroller General shall submit a report to the 
Congress setting for the results and conclusions of the study under 
this section.

SEC. 28. ACCEPTABLE IDENTIFICATION REQUIREMENT.

    (a) In General.--Rental housing assistance under section 8(o) of 
the United States Housing Act of 1937 may not be provided on behalf of 
any individual or household unless the individual provides, or, in the 
case of a household, all adult members of the household provide, valid 
personal identification in one of the following forms:
            (1) Social security card with photo identification card or 
        Real ID Act identification.--
                    (A) A social security card accompanied by a photo 
                identification card issued by the Federal Government or 
                a State Government; or
                    (B) A driver's license or identification card 
                issued by a State in the case of a State that is in 
                compliance with title II of the REAL ID Act of 2005 
                (title II of division B of Public Law 109-13; 49 U.S.C. 
                30301 note).
            (2) Passport.--A passport issued by the United States or a 
        foreign government.
            (3) USCIS photo identification card.--A photo 
        identification card issued by the Secretary of Homeland 
        Security (acting through the Director of the United States 
        Citizenship and Immigration Services).
    (b) Regulations.--The Secretary of Housing and Urban Development 
shall, by regulations issued before the expiration of the period 
referred to in subsection (c), require that each public housing agency 
or other entity administering rental housing assistance described in 
subsection (a) take such actions as the Secretary considers necessary 
to ensure compliance with the requirements of subsection (a).
    (c) Effective Date.--The requirements of this section shall take 
effect upon the expiration of the 6-month period beginning upon the 
date of the enactment of this Act.

SEC. 29. EFFECTIVE DATE.

    Except as otherwise specifically provided in this Act--
            (1) sections 3, 4, 6, and 7 of this Act and the amendments 
        made by such sections shall take effect on January 1, 2010, 
        except that the Secretary may delay such effective date for any 
        one or more of sections 3, 4, and 7 to January 1, 2011, upon a 
        determination by the Secretary that such extension is necessary 
        to provide program participants sufficient time to make 
        adjustments to the changes made by such sections; and
            (2) all other provisions of this Act and the amendments 
        made by this Act shall take effect upon the issuance by the 
        Secretary of implementing regulations, as appropriate, or by 
        notice, which shall be issued not later than the expiration of 
        the 12-month period beginning upon the date of the enactment of 
        this Act.
                                                 Union Calendar No. 157

111th CONGRESS

  1st Session

                               H. R. 3045

                          [Report No. 111-277]

_______________________________________________________________________

                                 A BILL

  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.

_______________________________________________________________________

                           September 30, 2009

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed`