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an owner who is debarred, suspended, or subject
to limited denial of participation under part 24
of title 24, Code of Federal Regulations;
(B) may prohibit, or authorize the termi-
nation or suspension of, payment of housing as-
sistance under a housing assistance payments
contract in effect at the time such debarment,
suspension, or limited denial of participation
takes effect.
If the public housing agency takes action under sub-
paragraph (B), the agency shall take such actions as
may be necessary to protect assisted families who are
affected by the action, which may include the provi-
sion of additional assistance under this title to such
families.
(2) PROHIBITION OF SALE OR RENTAL TO RE-
LATED PARTIES.—The Secretary shall establish guide-
lines to prevent housing assistance payments for a
dwelling unit that is owned by any spouse, child, or
other party who allows an owner described in para-
graph (1) to maintain control of the unit.
SEC. 327. SELECTION OF DWELLING UNITS.
(a) FAMILY CHOICE.—The determination of the dwell-
ing unit in which an assisted family resides and for which
housing assistance is provided under this title shall be made
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solely by the assisted family, subject to the provisions of
this title and any applicable law.
(b) DEED RESTRICTIONS.—Housing assistance may
not be used in any manner that abrogates any local deed
restriction that applies to any housing consisting of 1 to
4 dwelling units. Nothing in this section may be construed
to affect the provisions or applicability of the Fair Housing
Act.
SEC. 328. ELIGIBLE DWELLING UNITS.
(a) IN GENERAL.—A dwelling unit shall be an eligible
dwelling unit for purposes of this title only if the public
housing agency to provide housing assistance for the dwell-
ing unit determines that the dwelling unit—
(1) is an existing dwelling unit that is not lo-
cated within a nursing home or the grounds of any
penal, reformatory, medical, mental, or similar public
or private institution; and
(2) complies—
(A) in the case of a dwelling unit located in
a jurisdiction which has in effect laws, regula-
tions, standards, or codes regarding habitability
of residential dwellings, with such applicable
laws, regulations, standards, or codes; or
(B) in the case of a dwelling unit located in
a jurisdiction which does not have in effect laws,
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regulations, standards, or codes described in sub-
paragraph (A), with the housing quality stand-
ards established under subsection (c).
Each public housing agency providing housing assistance
shall identify, in the local housing management plan for
the agency, whether the agency is utilizing the standard
under subparagraph (A) or (B) of paragraph (2).
(b) DETERMINATIONS.—
(1) IN GENERAL.—A public housing agency shall
make the determinations required under subsection
(a) pursuant to an inspection of the dwelling unit
conducted before any assistance payment is made for
the unit.
(2) EXPEDITIOUS
INSPECTION.—Inspections of
dwelling units under this subsection shall be made be-
fore the expiration of the 15-day period beginning
upon a request by the resident or landlord to the pub-
lic housing agency. The performance of the agency in
meeting the 15-day inspection deadline shall be taken
into account in assessing the performance of the agen-
cy.
(c) FEDERAL HOUSING QUALITY STANDARDS.—The
Secretary shall establish housing quality standards under
this subsection that ensure that assisted dwelling units are
safe, clean, and healthy. Such standards shall include re-
202
quirements relating to habitability, including maintenance,
health and sanitation factors, condition, and construction
of dwellings, and shall, to the greatest extent practicable,
be consistent with the standards established under section
232(b). The Secretary shall differentiate between major and
minor violations of such standards.
(d) ANNUAL
INSPECTIONS.—Each public housing
agency providing housing assistance shall make an annual
inspection of each assisted dwelling unit during the term
of the housing assistance payments contracts for the unit
to determine whether the unit is maintained in accordance
with the requirements under subsection (a)(2). The agency
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 con-
ducting an audit under section 541.
(e) INSPECTION GUIDELINES.—The Secretary shall es-
tablish procedural guidelines and performance standards to
facilitate inspections of dwelling units and conform such
inspections with practices utilized in the private housing
market. Such guidelines and standards shall take into con-
sideration variations in local laws and practices of public
housing agencies and shall provide flexibility to authorities
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appropriate to facilitate efficient provision of assistance
under this title.
(f) RULE OF CONSTRUCTION.—This section may not
be construed to prevent the provision of housing assistance
in connection with supportive services for elderly or dis-
abled families.
SEC. 329. HOMEOWNERSHIP OPTION.
(a) IN GENERAL.—A public housing agency providing
housing assistance under this title may provide homeowner-
ship assistance to assist eligible families to purchase a
dwelling unit (including purchase under lease-purchase
homeownership plans).
(b) REQUIREMENTS.—A public housing agency provid-
ing homeownership assistance under this section shall, as
a condition of an eligible family receiving such assistance,
require the family to—
(1) demonstrate that the family has sufficient in-
come from employment or other sources (other than
public assistance), as determined in accordance with
requirements established by the agency; and
(2) meet any other initial or continuing require-
ments established by the public housing agency.
(c) DOWNPAYMENT REQUIREMENT.—
(1) IN GENERAL.—A public housing agency may
establish minimum downpayment requirements, if
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appropriate, in connection with loans made for the
purchase of dwelling units for which homeownership
assistance is provided under this section. If the agen-
cy establishes a minimum downpayment requirement,
the agency shall permit the family to use grant
amounts, gifts from relatives, contributions from pri-
vate sources, and similar amounts as downpayment
amounts in such purchase, subject to the requirements
of paragraph (2).
(2) DIRECT
FAMILY
CONTRIBUTION.—In pur-
chasing housing pursuant to this section subject to a
downpayment requirement, each family shall contrib-
ute an amount of the downpayment, from resources of
the family other than grants, gifts, contributions, or
other similar amounts referred to in paragraph (1),
that is not less than 1 percent of the purchase price.
(d) INELIGIBILITY UNDER OTHER PROGRAMS.—A
family may not receive homeownership assistance pursuant
to this section during any period when assistance is being
provided for the family under other Federal homeownership
assistance programs, as determined by the Secretary, in-
cluding assistance under the HOME Investment Partner-
ships Act, the Homeownership and Opportunity Through
HOPE Act, title II of the Housing and Community Devel-
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opment Act of 1987, and section 502 of the Housing Act
of 1949.
SEC. 330. ASSISTANCE FOR RENTAL OF MANUFACTURED
HOMES.
(a) AUTHORITY.—Nothing in this title may be con-
strued to prevent a public housing agency from providing
housing assistance under this title on behalf of a low-income
family for the rental of—
(1) a manufactured home that is the principal
residence of the family and the real property on
which the home is located; or
(2) the real property on which is located a man-
ufactured home, which is owned by the family and is
the principal residence of the family.
(b) ASSISTANCE
FOR CERTAIN FAMILIES OWNING
MANUFACTURED HOMES.—
(1) AUTHORITY.—Notwithstanding section 351
or any other provision of this title, a public housing
agency that receives amounts under a contract under
section 302 may enter into a housing assistance pay-
ment contract to make assistance payments under
this title to a family that owns a manufactured home,
but only as provided in paragraph (2).
(2) LIMITATIONS.—In the case only of a low-in-
come family that owns a manufactured home, rents