H. R. 4194—65
‘‘(II) each family who is assisted under the certifi-
cate or moderate rehabilitation program under section
8; and
‘‘(III) each family who is assisted under the
voucher program under section 8, and the agency shall
reduce the monthly assistance payment on behalf of
such family as may be necessary to ensure payment
of such minimum monthly rental amount.
‘‘(ii) The Secretary shall require each family who is
assisted under any other program for rental assistance
under section 8 to pay such minimum monthly rental
amount, which amount shall be determined by the Sec-
retary.
‘‘(B) EXCEPTION FOR HARDSHIP CIRCUMSTANCES.—
‘‘(i) IN GENERAL.—Notwithstanding subparagraph (A),
a public housing agency (or the Secretary, in the case
of a family described in subparagraph (A)(ii)) shall imme-
diately grant an exemption from application of the mini-
mum monthly rental under such subparagraph to any fam-
ily unable to pay such amount because of financial hard-
ship, which shall include situations in which (I) the family
has lost eligibility for or is awaiting an eligibility deter-
mination for a Federal, State, or local assistance program,
including a family that includes a member who is an alien
lawfully admitted for permanent residence under the
Immigration and Nationality Act who would be entitled
to public benefits but for title IV of the Personal Respon-
sibility and Work Opportunity Reconciliation Act of 1996;
(II) the family would be evicted as a result of the imposition
of the minimum rent requirement under subparagraph (A);
(III) the income of the family has decreased because of
changed circumstance, including loss of employment; (IV)
a death in the family has occurred; and (V) other situations
as may be determined by the agency (or the Secretary,
in the case of a family described in subparagraph (A)(ii)).
‘‘(ii) WAITING PERIOD.—If a resident requests a hard-
ship exemption under this subparagraph and the public
housing agency (or the Secretary, in the case of a family
described in subparagraph (A)(ii)) reasonably determines
the hardship to be of a temporary nature, an exemption
shall not be granted during the 90-day period beginning
upon the making of a request for the exemption. A resident
may not be evicted during such 90-day period for non-
payment of rent. In such a case, if the resident thereafter
demonstrates that the financial hardship is of a long-term
basis, the agency (or the Secretary) shall retroactively
exempt the resident from the applicability of the minimum
rent requirement for such 90-day period.’’.
(b) REPEAL OF DUPLICATIVE PROVISIONS.—Section 402 of the
Balanced Budget Downpayment Act, I (Public Law 104–99; 110
Stat. 40) is amended by striking subsection (a).
(c) CONFORMING AMENDMENT.—The third sentence of section
3(a)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437a(a)(1)) is amended by inserting ‘‘and subject to the require-
ment under paragraph (3)’’ before the first comma.
H. R. 4194—66
(d) EFFECTIVE DATE.—The amendments under this section are
made on, and shall apply beginning upon, the date of the enactment
of this Act.
SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN
INCOME.
(a) ADJUSTED INCOME.—Paragraph (5) of section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is amend-
ed to read as follows:
‘‘(5) ADJUSTED
INCOME.—The term ‘adjusted income’ means,
with respect to a family, the amount (as determined by the public
housing agency) of the income of the members of the family residing
in a dwelling unit or the persons on a lease, after any income
exclusions as follows:
‘‘(A) MANDATORY
EXCLUSIONS.—In determining adjusted
income, a public housing agency shall exclude from the annual
income of a family the following amounts:
‘‘(i) ELDERLY AND DISABLED FAMILIES.—$400 for any
elderly or disabled family.
‘‘(ii) MEDICAL EXPENSES.—The amount by which 3 per-
cent of the annual family income is exceeded by the sum
of—
‘‘(I) unreimbursed medical expenses of any elderly
family or disabled family;
‘‘(II) unreimbursed medical expenses of any family
that is not covered under subclause (I), except that
this subclause shall apply only to the extent approved
in appropriation Acts; and
‘‘(III) 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 (including such handi-
capped member) to be employed.
‘‘(iii) CHILD CARE EXPENSES.—Any reasonable child care
expenses necessary to enable a member of the family to
be employed or to further his or her education.
‘‘(iv) MINORS, STUDENTS, AND PERSONS WITH DISABIL-
ITIES.—$480 for each member of the family residing in
the household (other than the head of the household or
his or her spouse) who is less than 18 years of age or
is attending school or vocational training on a full-time
basis, or who is 18 years of age or older and is a person
with disabilities.
‘‘(v) CHILD SUPPORT PAYMENTS.—Any payment made
by a member of the family for the support and maintenance
of any child who does not reside in the household, except
that the amount excluded under this clause may not exceed
$480 for each child for whom such payment is made; except
that this clause shall apply only to the extent approved
in appropriations Acts.
‘‘(vi) SPOUSAL SUPPORT EXPENSES.—Any payment made
by a member of the family for the support and maintenance
of any spouse or former spouse who does not reside in
the household, except that the amount excluded under
this clause shall not exceed the lesser of (I) the amount
that such family member has a legal obligation to pay,
or (II) $550 for each individual for whom such payment
H. R. 4194—67
is made; except that this clause shall apply only to the
extent approved in appropriations Acts.
‘‘(vii) EARNED INCOME OF MINORS.—The amount of any
earned income of a member of the family who is not—
‘‘(I) 18 years of age or older; and
‘‘(II) the head of the household (or the spouse
of the head of the household).
‘‘(B) PERMISSIVE
EXCLUSIONS
FOR
PUBLIC
HOUSING.—In
determining adjusted income, a public housing agency may,
in the discretion of the agency, establish exclusions from the
annual income of a family residing in a public housing dwelling
unit. Such exclusions may include the following amounts:
‘‘(i) EXCESSIVE
TRAVEL
EXPENSES.—Excessive travel
expenses in an amount not to exceed $25 per family per
week, for employment- or education-related travel.
‘‘(ii) EARNED
INCOME.—An amount of any earned
income of the family, established at the discretion of the
public housing agency, which may be based on—
‘‘(I) all earned income of the family,
‘‘(II) the amount earned by particular members
of the family;
‘‘(III) the amount earned by families having certain
characteristics; or
‘‘(IV) the amount earned by families or members
during certain periods or from certain sources.
‘‘(iii) OTHERS.—Such other amounts for other purposes,
as the public housing agency may establish.’’.
(b) DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING
RENT DETERMINATIONS.—
(1) IN GENERAL.—Section 3 of the United States Housing
Act of 1937 (42 U.S.C. 1437a) is amended—
(A) by striking the undesignated paragraph that fol-
lows subsection (c)(3) (as added by section 515(b) of the
Cranston-Gonzalez National Affordable Housing Act (Public
Law 101–625; 104 Stat. 4199)); and
(B) by adding at the end the following new subsections:
‘‘(d) DISALLOWANCE OF EARNED INCOME FROM RENT DETER-
MINATIONS.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, the rent payable under subsection (a) by a family described
in paragraph (3) of this subsection may not be increased as
a result of the increased income due to such employment during
the 12-month period beginning on the date on which the
employment is commenced.
‘‘(2) PHASE-IN OF RENT INCREASES.—Upon the expiration
of the 12-month period referred to in paragraph (1), the rent
payable by a family described in paragraph (3) may be increased
due to the continued employment of the family member
described in paragraph (3)(B), except that during the 12-month
period beginning upon such expiration the amount of the
increase may not be greater than 50 percent of the amount
of the total rent increase that would be applicable but for
this paragraph.
‘‘(3) ELIGIBLE FAMILIES.—A family described in this para-
graph is a family—
‘‘(A) that—
H. R. 4194—68
‘‘(i) occupies a dwelling unit in a public housing
project; or
‘‘(ii) receives assistance under section 8; and
‘‘(B)(i) whose income increases as a result of employ-
ment of a member of the family who was previously
unemployed for 1 or more years;
‘‘(ii) whose earned income increases during the partici-
pation of a family member in any family self-sufficiency
or other job training program; or
‘‘(iii) who is or was, within 6 months, assisted under
any State program for temporary assistance for needy fami-
lies funded under part A of title IV of the Social Security
Act and whose earned income increases.
‘‘(4) APPLICABILITY.—This subsection and subsection (e)
shall apply beginning upon October 1, 1999, except that this
subsection and subsection (e) shall apply with respect to any
family described in paragraph 3(A)(ii) only to the extent pro-
vided in advance in appropriations Acts.
‘‘(e) INDIVIDUAL SAVINGS ACCOUNTS.—
‘‘(1) IN
GENERAL.—In lieu of a disallowance of earned
income under subsection (d), upon the request of a family
that qualifies under subsection (d), a public housing agency
may establish an individual savings account in accordance with
this subsection for that family.
‘‘(2) DEPOSITS
TO
ACCOUNT.—The public housing agency
shall deposit in any savings account established under this
subsection an amount equal to the total amount that otherwise
would be applied to the family’s rent payment under subsection
(a) as a result of employment.
‘‘(3) WITHDRAWAL FROM ACCOUNT.—Amounts deposited in
a savings account established under this subsection may only
be withdrawn by the family for the purpose of—
‘‘(A) purchasing a home;
‘‘(B) paying education costs of family members;
‘‘(C) moving out of public or assisted housing; or
‘‘(D) paying any other expense authorized by the public
housing agency for the purpose of promoting the economic
self-sufficiency of residents of public and assisted housing.’’.
(2) SAVINGS PROVISION.—Notwithstanding the amendment
made by paragraph (1), the provisions of the undesignated
paragraph at the end of section 3(c)(3) of the United States
Housing Act of 1937, as such section was in effect immediately
before the enactment of this Act, shall continue to apply until
the effective date under section 503 of this Act. Notwithstanding
the amendment made by subsection (a) of this section, nor
the applicability under section 402(f ) of The Balanced Budget
Downpayment Act, I (42 U.S.C. 1437a note) of the amendments
made by such section 402, nor any repeal of such section
402(f ), the provisions of section 3(b)(5)(G) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such section
was in effect immediately before the date of the enactment
of this Act, shall continue to apply until the effective date
under section 503 of this Act.
(c) MEDIAN INCOME.—
(1) IN GENERAL.—Section 3(b)(2) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended—
(A) in the 4th sentence—