250
mined by the Secretary to be more appropriate for
such agencies.
(c) STATUS OF PHA’S.—Nothing in this section or
title may be construed to require any change in the legal
status of any public housing agency or in any legal rela-
tionship between a jurisdiction and a public housing agen-
cy as a condition of participation in the program under
this title.
SEC. 407. TRAINING.
The Secretary, in consultation with representatives of
public and assisted housing interests, shall provide train-
ing and technical assistance relating to providing assist-
ance under this title and conduct detailed evaluations of
up to 30 jurisdictions for the purpose of identifying
replicable program models that are successful at carrying
out the purposes of this title.
SEC. 408. ACCOUNTABILITY.
(a) PERFORMANCE GOALS.—The Secretary shall
monitor the performance of participating jurisdictions in
providing assistance pursuant to this title based on the
performance standards contained in the agreements en-
tered into pursuant to section 406(b)(1).
(b) KEEPING RECORDS.—Each participating juris-
diction shall keep such records as the Secretary may pre-
scribe as reasonably necessary to disclose the amounts and
251
the disposition of amounts provided pursuant to this title,
to ensure compliance with the requirements of this title
and to measure performance against the performance
goals under subsection (a).
(c) REPORTS.—Each participating jurisdiction agen-
cy shall submit to the Secretary a report, or series of re-
ports, in a form and at a time specified by the Secretary.
The reports shall—
(1) document the use of funds made available
under this title;
(2) provide such information as the Secretary
may request to assist the Secretary in assessing the
program under this title; and
(3) describe and analyze the effect of assisted
activities in addressing the purposes of this title.
(d) 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 title.
(e) ACCESS TO DOCUMENTS BY COMPTROLLER GEN-
ERAL.—The Comptroller General of the United States, or
any of the duly authorized representatives of the Comp-
troller General, shall have access for the purpose of audit
and examination to any books, documents, papers, and
252
records that are pertinent to assistance in connection with,
and the requirements of, this title.
SEC. 409. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) JURISDICTION.—The term ‘‘jurisdiction’’
means—
(A) a unit of general local government (as
such term is defined in section 104 of the Cran-
ston-Gonzalez National Affordable Housing
Act) that has boundaries, for purposes of carry-
ing out this title, that—
(i) wholly contain the area within
which a public housing agency is author-
ized to operate; and
(ii) do not contain any areas con-
tained within the boundaries of any other
participating jurisdiction; and
(B) a consortia of such units of general
local government, organized for purposes of this
title.
(2) PARTICIPATING JURISDICTION.—The term
‘‘participating jurisdiction’’ means, with respect to a
period for which such approval is made, a jurisdic-
tion that has been approved under section 406(b)(3)
253
to receive assistance pursuant to this title for such
fiscal year.
TITLE V—ACCOUNTABILITY AND
OVERSIGHT OF PUBLIC HOUS-
ING AGENCIES
Subtitle A—Study of Alternative
Methods for Evaluating Public
Housing Agencies
SEC. 501. IN GENERAL.
The Secretary of Housing and Urban Development
shall provide under section 505 for a study to be con-
ducted to determine the effectiveness of various alternative
methods of evaluating the performance of public housing
agencies and other providers of federally assisted housing.
SEC. 502. PURPOSES.
The purposes of the study under this subtitle shall
be—
(1) to identify and examine various methods of
evaluating and improving the performance of public
housing agencies in administering public housing
and tenant-based rental assistance programs and of
other providers of federally assisted housing, which
are alternatives to oversight by the Department of
Housing and Urban Development; and
254
(2) to identify specific monitoring and oversight
activities currently conducted by the Department of
Housing and Urban Development that are insuffi-
cient or ineffective in accurately and efficiently as-
sessing the performance of public housing agencies
and other providers of federally assisted housing,
and to evaluate whether such activities should be
eliminated, modified, or transferred to other entities
(including government and private entities) to in-
crease accuracy and effectiveness and improve mon-
itoring.
SEC. 503. EVALUATION OF VARIOUS PERFORMANCE EVAL-
UATION SYSTEMS.
To carry out the purpose under section 502(1), the
study under this subtitle shall identify, and analyze and
assess the costs and benefits of, the following methods of
regulating and evaluating the performance of public hous-
ing agencies and other providers of federally assisted hous-
ing:
(1) CURRENT SYSTEM.—The system pursuant
to the United States Housing Act of 1937 (as in ef-
fect upon the enactment of this Act), including the
methods and requirements under such system for re-
porting, auditing, reviewing, sanctioning, and mon-
itoring of such agencies and housing providers and
255
the public housing management assessment program
pursuant to subtitle C of this title (and section 6(j)
of the United States Housing Act of 1937 (as in ef-
fect upon the enactment of this Act)).
(2) ACCREDITATION MODELS.—Various models
that are based upon accreditation of such agencies
and housing providers, subject to the following re-
quirements:
(A) The study shall identify and analyze
various models used in other industries and
professions for accreditation and determine the
extent of their applicability to the programs for
public housing and federally assisted housing.
(B) If any accreditation models are deter-
mined to be applicable to the public and feder-
ally assisted housing programs, the study shall
identify appropriate goals, objectives, and pro-
cedures for an accreditation program for such
agencies housing providers.
(C) The study shall evaluate the effective-
ness of establishing an independent accredita-
tion and evaluation entity to assist, supplement,
or replace the role of the Department of Hous-
ing and Urban Development in assessing and
256
monitoring the performance of such agencies
and housing providers.
(D) The study shall identify the necessary
and appropriate roles and responsibilities of
various entities that would be involved in an ac-
creditation program, including the Department
of Housing and Urban Development, the In-
spector General of the Department, an accredi-
tation entity, independent auditors and examin-
ers, local entities, and public housing agencies.
(E) The study shall determine the costs in-
volved in developing and maintaining such an
independent accreditation program.
(F) The study shall analyze the need for
technical assistance to assist public housing
agencies in improving performance and identify
the most effective methods to provide such as-
sistance.
(3) PERFORMANCE
BASED
MODELS.—Various
performance-based models, including systems that
establish performance goals or targets, assess the
compliance with such goals or targets, and provide
for incentives or sanctions based on performance rel-
ative to such goals or targets.
257
(4) LOCAL
REVIEW
AND
MONITORING
MOD-
ELS.—Various models providing for local, resident,
and community review and monitoring of such agen-
cies and housing providers, including systems for re-
view and monitoring by local and State govern-
mental bodies and agencies.
(5) PRIVATE MODELS.—Various models using
private contractors for review and monitoring of
such agencies and housing providers.
(6) OTHER MODELS.—Various models of any
other systems that may be more effective and effi-
cient in regulating and evaluating such agencies and
housing providers.
SEC. 504. CONSULTATION.
The entity that, pursuant to section 505, carries out
the study under this subtitle shall, in carrying out the
study, consult with individuals and organization experi-
enced in managing public housing, private real estate
managers, representatives from State and local govern-
ments, residents of public housing, families and individ-
uals receiving choice- or tenant-based assistance, the Sec-
retary of Housing and Urban Development, the Inspector
General of the Department of Housing and Urban Devel-
opment, and the Comptroller General of the United
States.
258
SEC. 505. CONTRACT TO CONDUCT STUDY.
(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary shall enter into a contract with a public or nonprofit
private entity to conduct the study under this subtitle,
using amounts made available pursuant to section 507.
(b) NATIONAL ACADEMY OF PUBLIC ADMINISTRA-
TION.—The Secretary shall request the National Academy
of Public Administration to enter into the contract under
paragraph (1) to conduct the study under this subtitle.
If such Academy declines to conduct the study, the Sec-
retary shall carry out such paragraph through other public
or nonprofit private entities.
SEC. 506. REPORT.
(a) INTERIM REPORT.—The Secretary shall ensure
that not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the
entity conducting the study under this subtitle submits to
the Congress an interim report describing the actions
taken to carry out the study, the actions to be taken to
complete the study, and any findings and recommenda-
tions available at the time.
(b) FINAL REPORT.—The Secretary shall ensure
that—
(1) not later than the expiration of the 12-
month period beginning on the date of the enact-
ment of this Act, the study required under this sub-
259
title is completed and a report describing the find-
ings and recommendations as a result of the study
is submitted to the Congress; and
(2) before submitting the report under this sub-
section to the Congress, the report is submitted to
the Secretary and national organizations for public
housing agencies at such time to provide the Sec-
retary and such agencies an opportunity to review
the report and provide written comments on the re-
port, which shall be included together with the re-
port upon submission to the Congress under para-
graph (1).
SEC. 507. FUNDING.
Of any amounts made available under title V of the
Housing and Urban Development Act of 1970 for policy
development and research for fiscal year 1998, $500,000
shall be available to carry out this subtitle.
SEC. 508. EFFECTIVE DATE.
This subtitle shall take effect on the date of the en-
actment of this Act.
Subtitle B—Housing Evaluation
and Accreditation Board
SEC. 521. ESTABLISHMENT.
(a) IN GENERAL.—There is established an independ-
ent agency in the executive branch of the Government to
260
be known as the Housing Foundation and Accreditation
Board (in this title referred to as the ‘‘Board’’).
(b) REQUIREMENT FOR CONGRESSIONAL REVIEW OF
STUDY.—Notwithstanding any other provision of this Act,
sections 523, 524, and 525 shall not take effect and the
Board shall not have any authority to take any action
under such sections (or otherwise) unless there is enacted
a law specifically providing for the repeal of this sub-
section. This subsection may not be construed to prevent
the appointment of the Board under section 522.
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 522. MEMBERSHIP.
(a) IN GENERAL.—The Board shall be composed of
12 members appointed by the President not later than 180
days after the date of the final report regarding the study
required under subtitle A is submitted to the Congress
pursuant to section 506(b), as follows:
(1) 4 members shall be appointed from among
10 individuals recommended by the Secretary of
Housing and Urban Development.
(2) 4 members shall be appointed from among
10 individuals recommended by the Chairman and
Ranking Minority Member of the Committee on
Banking, Housing, and Urban Affairs of the Senate.
261
(3) 4 members appointed from among 10 indi-
viduals recommended by the Chairman and Ranking
Minority Member of the Committee on Banking and
Financial Services of the House of Representatives.
(b) QUALIFICATIONS.—
(1) REQUIRED REPRESENTATION.—The Board
shall at all times have the following members:
(A) 2 members who are residents of public
housing or dwelling units assisted under title
III of this Act or the provisions of section 8 of
the United States Housing Act of 1937 (as in
effect before the effective date of the repeal
under section 601(b) of this Act).
(B) At least 2, but not more than 4 mem-
bers who are executive directors of public hous-
ing agencies.
(C) 1 member who is a member of the In-
stitute of Real Estate Managers.
(D) 1 member who is the owner of a multi-
family housing project assisted under a pro-
gram administered by the Secretary of Housing
and Urban Development.
(2) REQUIRED EXPERIENCE.—The Board shall
at all times have as members individuals with the
following experience:
262
(A) At least 1 individual who has extensive
experience in the residential real estate finance
business.
(B) At least 1 individual who has extensive
experience in operating a nonprofit organization
that provides affordable housing.
(C) At least 1 individual who has extensive
experience in construction of multifamily hous-
ing.
(D) At least 1 individual who has extensive
experience in the management of a community
development corporation.
(E) At least 1 individual who has extensive
experience in auditing participants in govern-
ment programs.
A single member of the board with the appropriate
experience may satisfy the requirements of more
than 1 subparagraph of this paragraph. A single
member of the board with the appropriate qualifica-
tions and experience may satisfy the requirements of
a subparagraph of paragraph (1) and a subpara-
graph of this paragraph.
(c) POLITICAL AFFILIATION.—Not more than 6
members of the Board may be of the same political party.
(d) TERMS.—
263
(1) IN GENERAL.—Each member of the Board
shall be appointed for a term of 4 years, except as
provided in paragraphs (2) and (3).
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed—
(A) 3 shall be appointed for terms of 1
year;
(B) 3 shall be appointed for terms of 2
years;
(C) 3 shall be appointed for terms of 3
years; and
(D) 3 shall be appointed for terms of 4
years.
(3) VACANCIES.—Any member appointed to fill
a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor has taken
office. A vacancy in the Board shall be filled in the
manner in which the original appointment was
made.
(e) CHAIRPERSON.—The Board shall elect a chair-
person from among members of the Board.
264
(f) QUORUM.—A majority of the members of the
Board shall constitute a quorum for the transaction of
business.
(g) VOTING.—Each member of the Board shall be en-
titled to 1 vote, which shall be equal to the vote of every
other member of the Board.
(h) PROHIBITION ON ADDITIONAL PAY.—Members of
the Board shall serve without compensation, but shall be
reimbursed for travel, subsistence, and other necessary ex-
penses incurred in the performance of their duties as
members of the Board.
SEC. 523. FUNCTIONS.
The purpose of this subtitle is to establish the Board
as a nonpolitical entity to carry out, not later than the
expiration of the 12-month period beginning upon the ap-
pointment under section 522 of all of the initial members
of the Board (or such other date as may be provided by
law), the following functions:
(1) 
ESTABLISHMENT
OF
PERFORMANCE
BENCHMARKS.—The Board shall establish standards
and guidelines for use by the Board in measuring
the performance and efficiency of public housing
agencies and other owners and providers of federally
assisted housing in carrying out operational and fi-
nancial functions. The standards and guidelines
265
shall be designed to replace the public housing man-
agement assessment program under section 6(j) of
the United States Housing Act of 1937 (as in effect
before the enactment of this Act) and improve the
evaluation of the performance of housing providers
relative to such program. In establishing such stand-
ards and guidelines, the Board shall consult with the
Secretary, the Inspector General of the Department
of Housing and Urban Development, and such other
persons and entities as the Board considers appro-
priate.
(2) ESTABLISHMENT OF ACCREDITATION PRO-
CEDURE AND ACCREDITATION.—The Board shall—
(A) establish a procedure for the Board to
accredit public housing agencies to receive block
grants under title II for the operation, mainte-
nance, and production of public housing and
amounts for housing assistance under title III,
based on the performance of agencies, as meas-
ured by the performance benchmarks estab-
lished under paragraph (1) and any audits and
reviews of agencies; and
(B) commence the review and accreditation
of public housing agencies under the procedures
established under subparagraph (A).
266
In carrying out the functions under this section, the Board
shall take into consideration the findings and rec-
ommendations contained in the report issued under sec-
tion 506(b).
SEC. 524. POWERS.
(a) HEARINGS.—The Board may, for the purpose of
carrying out this subtitle, hold such hearings and sit and
act at such times and places as the Board determines ap-
propriate.
(b) RULES
AND REGULATIONS.—The Board may
adopt such rules and regulations as may be necessary to
establish its procedures and to govern the manner of its
operations, organization, and personnel.
(c) ASSISTANCE FROM FEDERAL AGENCIES.—
(1) INFORMATION.—The Board may secure di-
rectly from any department or agency of the Federal
Government such information as the Board may re-
quire for carrying out its functions, including public
housing agency plans submitted to the Secretary by
public housing agencies under title I. Upon request
of the Board, any such department or agency shall
furnish such information.
(2) GENERAL
SERVICES
ADMINISTRATION.—
The Administrator of General Services shall provide
267
to the Board, on a reimbursable basis, such adminis-
trative support services as the Board may request.
(3) DEPARTMENT OF HOUSING AND URBAN DE-
VELOPMENT.—Upon the request of the chairperson
of the Board, the Secretary of Housing and Urban
Development shall, to the extent possible and subject
to the discretion of the Secretary, detail any of the
personnel of the Department of Housing and Urban
Development, on a nonreimbursable basis, to assist
the Board in carrying out its functions under this
subtitle.
(4) HUD INSPECTOR GENERAL.—The Inspector
General of the Department of Housing and Urban
Development shall serve the Board as a principal ad-
viser with respect to all aspects of audits of public
housing agencies. The Inspector General may advise
the Board with respect to other activities and func-
tions of the Board.
(d) MAILS.—The Board may use the United States
mails in the same manner and under the same conditions
as other Federal agencies.
(e) CONTRACTING.—The Board may, to such extent
and in such amounts as are provided in appropriation
Acts, enter into contracts with private firms, institutions,
and individuals for the purpose of conducting evaluations
268
of public housing agencies, audits of public housing agen-
cies, and research and surveys necessary to enable the
Board to discharge its functions under this subtitle.
(f) STAFF.—
(1) EXECUTIVE
DIRECTOR.—The Board shall
appoint an executive director of the Board, who shall
be compensated at a rate fixed by the Board, but
which shall not exceed the rate established for level
V of the Executive Schedule under title 5, United
States Code.
(2) OTHER PERSONNEL.—In addition to the ex-
ecutive director, the Board may appoint and fix the
compensation of such personnel as the Board consid-
ers necessary, in accordance with the provisions of
title 5, United States Code, governing appointments
to the competitive service, and the provisions of
chapter 51 and subchapter III of chapter 53 of such
title, relating to classification and General Schedule
pay rates.
(g) ACCESS TO DOCUMENTS.—The Board shall have
access for the purposes of carrying out its functions under
this subtitle to any books, documents, papers, and records
of a public housing agency to which the Secretary has ac-
cess under this Act.
269
SEC. 525. FEES.
(a) ACCREDITATION FEES.—The Board may estab-
lish and charge reasonable fees for the accreditation of
public housing agencies as the Board considers necessary
to cover the costs of the operations of the Board relating
to its functions under section 523.
(b) FUND.—Any fees collected under this section
shall be deposited in an operations fund for the Board,
which is hereby established in the Treasury of the United
States. Amounts in such fund shall be available, to the
extent provided in appropriation Acts, for the expenses of
the Board in carrying out its functions under this subtitle.
SEC. 526. GAO AUDIT.
The activities and transactions of the Board shall be
subject to audit by the Comptroller General of the United
States under such rules and regulations as may be pre-
scribed by the Comptroller General. The representatives
of the General Accounting Office shall have access for the
purpose of audit and examination to any books, docu-
ments, papers, and records of the Board that are nec-
essary to facilitate an audit.
270
Subtitle C—Interim Applicability of
Public Housing Management As-
sessment Program
SEC. 531. INTERIM APPLICABILITY.
This subtitle shall be effective only during the period
that begins on the effective date of this Act and ends upon
the date of the effectiveness of the standards and proce-
dures required under section 523.
SEC. 532. MANAGEMENT ASSESSMENT INDICATORS.
(a) ESTABLISHMENT.—The Secretary shall develop
and publish in the Federal Register indicators to assess
the management performance of public housing agencies
and other entities managing public housing (including
resident management corporations, independent managers
pursuant to section 236, and management entities pursu-
ant to subtitle D). The indicators shall be established by
rule under section 553 of title 5, United States Code. Such
indicators shall enable the Secretary to evaluate the per-
formance of public housing agencies and such other man-
agers of public housing in all major areas of management
operations.
(b) CONTENT.—The management assessment indica-
tors shall include the following indicators:
(1) The number and percentage of vacancies
within an agency’s or manager’s inventory, including
271
the progress that an agency or manager has made
within the previous 3 years to reduce such vacancies.
(2) The amount and percentage of funds obli-
gated to the public housing agency or manager from
the capital fund or under section 14 of the United
States Housing Act of 1937 (as in effect before the
effective date of the repeal under section 601(b) of
this Act), which remain unexpended after 3 years.
(3) The percentage of rents uncollected.
(4) The energy consumption (with appropriate
adjustments to reflect different regions and unit
sizes).
(5) The average period of time that an agency
or manager requires to repair and turn-around va-
cant dwelling units.
(6) The proportion of maintenance work orders
outstanding, including any progress that an agency
or manager has made during the preceding 3 years
to reduce the period of time required to complete
maintenance work orders.
(7) The percentage of dwelling units that an
agency or manager fails to inspect to ascertain
maintenance or modernization needs within such pe-
riod of time as the Secretary deems appropriate
272
(with appropriate adjustments, if any, for large and
small agencies or managers).
(8) The extent to which the rent policies of any
public housing agency establishing rental amounts in
accordance with section 225(b) comply with the re-
quirement under section 225(c).
(9) Whether the agency is providing acceptable
basic housing conditions, as determined by the Sec-
retary.
(10) Whether the agency has conducted and
regularly updated an assessment to identify any pest
control problems in the public housing owned or op-
erated by the agency and the extent to which the
agency is effective in carrying out a strategy to
eradicate or control such problems, which assess-
ment and strategy shall be included in the local
housing management plan for the agency under sec-
tion 106.
(11) Any other factors as the Secretary deems
appropriate.
(c) CONSIDERATIONS
IN EVALUATION.—The Sec-
retary shall—
(1) administer the system of evaluating public
housing agencies and managers flexibly to ensure
273
that agencies and managers are not penalized as re-
sult of circumstances beyond their control;
(2) reflect in the weights assigned to the var-
ious management assessment indicators the dif-
ferences in the difficulty of managing individual de-
velopments that result from their physical condition
and their neighborhood environment; and
(3) determine a public housing agency’s or
manager’s status as ‘‘troubled with respect to mod-
ernization’’ under section 533(b) based upon factors
solely related to its ability to carry out moderniza-
tion activities.
SEC. 533. DESIGNATION OF PHA’S.
(a) TROUBLED PHA’S.—The Secretary shall, under
the rulemaking procedures under section 553 of title 5,
United States Code, establish procedures for designating
troubled public housing agencies and managers, which
procedures shall include identification of serious and sub-
stantial failure to perform as measured by (1) the per-
formance indicators specified under section 532 and such
other factors as the Secretary may deem to be appropriate;
or (2) such other evaluation system as is determined by
the Secretary to assess the condition of the public housing
agency or other entity managing public housing, which
system may be in addition to or in lieu of the performance
274
indicators established under section 532. Such procedures
shall provide that an agency that does not provide accept-
able basic housing conditions shall be designated a trou-
bled public housing agency.
(b) AGENCIES TROUBLED WITH RESPECT TO CAP-
ITAL ACTIVITIES.—The Secretary shall designate, by rule
under section 553 of title 5, United States Code, agencies
and managers that are troubled with respect to capital ac-
tivities.
(c) AGENCIES AT RISK OF BECOMING TROUBLED.—
The Secretary shall designate, by rule under section 553
of title 5, United States Code, agencies and managers that
are at risk of becoming troubled.
(d) EXEMPLARY AGENCIES.—The Secretary may
also, in consultation with national organizations represent-
ing public housing agencies and managers and public offi-
cials (as the Secretary determines appropriate), identify
and commend public housing agencies and managers that
meet the performance standards established under section
532 in an exemplary manner.
(e) APPEAL OF DESIGNATION.—The Secretary shall
establish procedures for public housing agencies and man-
agers to appeal designation as a troubled agency or man-
ager (including designation as a troubled agency or man-
ager for purposes of capital activities), to petition for re-
275
moval of such designation, and to appeal any refusal to
remove such designation.
SEC. 534. ON-SITE INSPECTION OF TROUBLED PHA’S.
(a) IN GENERAL.—Upon designating a public hous-
ing agency or manager as troubled pursuant to section
533 and determining that an assessment under this sec-
tion will not duplicate any other review previously con-
ducted or required to be conducted of the agency or man-
ager, the Secretary shall provide for an on-site, independ-
ent assessment of the management of the agency or man-
ager.
(b) CONTENT.—To the extent the Secretary deems
appropriate (taking into consideration an agency’s or
manager’s performance under the indicators specified
under section 532, the assessment team shall also consider
issues relating to the agency’s or manager’s resident popu-
lation and physical inventory, including the extent to
which—
(1) the public housing agency plan for the agen-
cy or manager adequately and appropriately address-
es the rehabilitation needs of the public housing in-
ventory;
(2) residents of the agency or manager are in-
volved in and informed of significant management
decisions; and
276
(3) any developments in the agency’s or man-
ager’s inventory are severely distressed (as such
term is defined under section 262.
(c) INDEPENDENT ASSESSMENT TEAM.—An inde-
pendent assessment under this section shall be carried out
by a team of knowledgeable individuals selected by the
Secretary (referred to in this title as the ‘‘assessment
team’’) with expertise in public housing and real estate
management. In conducting an assessment, the assess-
ment team shall consult with the residents and with public
and private entities in the jurisdiction in which the public
housing is located. The assessment team shall provide to
the Secretary and the public housing agency or manager
a written report, which shall contain, at a minimum, rec-
ommendations for such management improvements as are
necessary to eliminate or substantially remedy existing de-
ficiencies.
SEC. 535. ADMINISTRATION.
(a) PHA’S.—The Secretary shall carry out this sub-
title with respect to public housing agencies substantially
in the same manner as the public housing management
assessment system under section 6(j) of the United States
Housing Act of 1937 (as in effect immediately before the
effective date of the repeal under section 601(b) of this
Act) was required to be carried out with respect to public
277
housing agencies. The Secretary may comply with the re-
quirements under this subtitle by using any regulations
issued to carry out such system and issuing any additional
regulations necessary to make such system comply with
the requirements under this subtitle.
(b) OTHER MANAGERS.—The Secretary shall estab-
lish specific standards and procedures for carrying out this
subtitle with respect to managers of public housing that
are not public housing agencies. Such standards and pro-
cedures shall take in consideration special circumstances
relating to entities hired, directed, or appointed to manage
public housing.
Subtitle 
D—Accountability 
and
Oversight Standards and Proce-
dures
SEC. 541. AUDITS.
(a) BY SECRETARY AND COMPTROLLER GENERAL.—
Each block grant contract under section 201 and each
contract for housing assistance amounts under section 302
shall provide that the Secretary, the Inspector General of
the Department of Housing and Urban Development, and
the Comptroller General of the United States, or any of
their duly authorized representatives, shall, for the pur-
pose of audit and examination, have access to any books,
documents, papers, and records of the public housing
278
agency (or other entity) entering into such contract that
are pertinent to this Act and to its operations with respect
to financial assistance under the this Act.
(b) BY PHA.—
(1) REQUIREMENT.—Each public housing agen-
cy that owns or operates 250 or more public housing
dwelling units and receives assistance under this Act
shall have an audit made in accordance with chapter
75 of title 31, United States Code. The Secretary,
the Inspector General of the Department of Housing
and Urban Development, and the Comptroller Gen-
eral of the United States shall have access to all
books, documents, papers, or other records that are
pertinent to the activities carried out under this Act
in order to make audit examinations, excerpts, and
transcripts.
(2) WITHHOLDING
OF
AMOUNTS.—The Sec-
retary may, in the sole discretion of the Secretary,
arrange for, and pay the costs of, an audit required
under paragraph (1). In such circumstances, the
Secretary may withhold, from assistance otherwise
payable to the agency under this Act, amounts suffi-
cient to pay for the reasonable costs of conducting
an acceptable audit, including, when appropriate, the
reasonable costs of accounting services necessary to
279
place the agency’s books and records in auditable
condition.
SEC. 542. PERFORMANCE AGREEMENTS FOR AUTHORITIES
AT RISK OF BECOMING TROUBLED.
(a) IN GENERAL.—Upon designation of a public
housing agency as at risk of becoming troubled under sec-
tion 533(c), the Secretary shall seek to enter into an
agreement with the agency providing for improvement of
the elements of the agency that have been identified. An
agreement under this section shall contain such terms and
conditions as the Secretary determines are appropriate for
addressing the elements identified, which may include an
on-site, independent assessment of the management of the
agency.
(b) POWERS OF SECRETARY.—If the Secretary deter-
mines that such action is necessary to prevent the public
housing agency from becoming a troubled agency, the Sec-
retary may—
(1) solicit competitive proposals from other pub-
lic housing agencies and private housing manage-
ment agents (which may be selected by existing ten-
ants through administrative procedures established
by the Secretary), for any case in which such agents
may be needed for managing all, or part, of the
housing or functions administered by the agency; or
280
(2) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management, for any case in
which such authorities or firms may be needed to
oversee implementation of assistance made available
for capital improvement for public housing of the
agency.
SEC. 543. PERFORMANCE AGREEMENTS AND CDBG SANC-
TIONS FOR TROUBLED PHA’S.
(a) IN GENERAL.—Upon designation of a public
housing agency as a troubled agency under section 533(a)
and after reviewing the report submitted pursuant to sec-
tion 534(c) and consulting with the assessment team for
the agency under section 534, the Secretary shall seek to
enter into an agreement with the agency providing for im-
proving the management performance of the agency.
(b) CONTENTS.—An agreement under this section be-
tween the Secretary and a public housing agency shall set
forth—
(1) targets for improving performance, as meas-
ured by the guidelines and standards established
under section 532 and other requirements within a
specified period of time, which shall include targets
to be met upon the expiration of the 12-month pe-
riod beginning upon entering into the agreement;
281
(2) strategies for meeting such targets;
(3) sanctions for failure to implement such
strategies; and
(4) to the extent the Secretary deems appro-
priate, a plan for enhancing resident involvement in
the management of the public housing agency.
(c) LOCAL ASSISTANCE IN IMPLEMENTATION.—The
Secretary and the public housing agency shall, to the max-
imum extent practicable, seek the assistance of local public
and private entities in carrying out an agreement under
this section.
(d) 
DEFAULT
UNDER
PERFORMANCE
AGREE-
MENT.—Upon the expiration of the 12-month period be-
ginning upon entering into an agreement under this sec-
tion with a public housing agency, the Secretary shall re-
view the performance of the agency in relation to the per-
formance targets and strategies under the agreement. If
the Secretary determines that the agency has failed to
comply with the performance targets established for such
period, the Secretary shall take the action authorized
under subsection (b)(2) or (b)(5) of section 545.
(e) CDBG SANCTION AGAINST LOCAL GOVERNMENT
CONTRIBUTING TO TROUBLED STATUS OF PHA.—If the
Secretary determines that the actions or inaction of any
unit of general local government within which any portion
282
of the jurisdiction of a public housing agency is located
has substantially contributed to the conditions resulting
in the agency being designated under section 533(a) as
a troubled agency, the Secretary may redirect or withhold,
from such unit of general local government any amounts
allocated for such unit under section 106 of the Housing
and Community Development Act of 1974.
SEC. 544. OPTION TO DEMAND CONVEYANCE OF TITLE TO
OR POSSESSION OF PUBLIC HOUSING.
(a) AUTHORITY
FOR
CONVEYANCE.—A contract
under section 201 for block grants under title II (including
contracts which amend or supersede contracts previously
made (including contracts for contributions)) may provide
that upon the occurrence of a substantial default with re-
spect to the covenants or conditions to which the public
housing agency is subject (as such substantial default
shall be defined in such contract), the public housing agen-
cy shall be obligated, at the option of the Secretary, to—
(1) convey title in any case where, in the deter-
mination of the Secretary (which determination shall
be final and conclusive), such conveyance of title is
necessary to achieve the purposes of this Act; or
(2) deliver to the Secretary possession of the
development, as then constituted, to which such con-
tract relates.
283
(b) OBLIGATION TO RECONVEY.—Any block grant
contract under title II containing the provisions author-
ized in subsection (a) shall also provide that the Secretary
shall be obligated to reconvey or redeliver possession of
the development, as constituted at the time of reconvey-
ance or redelivery, to such public housing agency or to
its successor (if such public housing agency or a successor
exists) upon such terms as shall be prescribed in such con-
tract, and as soon as practicable after—
(1) the Secretary is satisfied that all defaults
with respect to the development have been cured,
and that the development will, in order to fulfill the
purposes of this Act, thereafter be operated in ac-
cordance with the terms of such contract; or
(2) the termination of the obligation to make
annual block grants to the agency, unless there are
any obligations or covenants of the agency to the
Secretary which are then in default.
Any prior conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right to re-
quire a conveyance or delivery of possession of the develop-
ment to the Secretary pursuant to subsection (a) upon the
subsequent occurrence of a substantial default.
(c) CONTINUED GRANTS FOR REPAYMENT OF BONDS
AND NOTES UNDER 1937 ACT.—If—
284
(1) a contract for block grants under title II for
an agency includes provisions that expressly state
that the provisions are included pursuant to this
subsection, and
(2) the portion of the block grant payable for
debt service requirements pursuant to the contract
has been pledged by the public housing agency as se-
curity for the payment of the principal and interest
on any of its obligations, then—
(A) the Secretary shall (notwithstanding
any other provisions of this Act), continue to
make the block grant payments for the agency
so long as any of such obligations remain out-
standing; and
(B) the Secretary may covenant in such a
contract that in any event such block grant
amounts shall in each year be at least equal to
an amount which, together with such income or
other funds as are actually available from the
development for the purpose at the time such
block grant payments are made, will suffice for
the payment of all installments of principal and
interest on the obligations for which the
amounts provided for in the contract shall have
285
been pledged as security that fall due within the
next succeeding 12 months.
In no case shall such block grant amounts be in excess
of the maximum sum specified in the contract involved,
nor for longer than the remainder of the maximum period
fixed by the contract.
SEC. 545. REMOVAL OF INEFFECTIVE PHA’S.
(a) CONDITIONS OF REMOVAL.—The actions speci-
fied in subsection (b) may be taken only upon—
(1) the occurrence of events or conditions that
constitute a substantial default by a public housing
agency with respect to (A) the covenants or condi-
tions to which the public housing agency is subject,
or (B) an agreement entered into under section 543;
or
(2) submission to the Secretary of a petition by
the residents of the public housing owned or oper-
ated by a public housing agency that is designated
as troubled pursuant to section 533(a).
(b) REMOVAL ACTIONS.—Notwithstanding any other
provision of law or of any block grant contract under title
II or any grant agreement under title III, in accordance
with subsection (a), the Secretary may—
(1) solicit competitive proposals from other pub-
lic housing agencies and private housing manage-
286
ment agents (which, in the discretion of the Sec-
retary, may be selected by existing public housing
residents through administrative procedures estab-
lished by the Secretary) and, if appropriate, provide
for such agents to manage all, or part, of the hous-
ing administered by the public housing agency or all
or part of the other functions of the agency;
(2) take possession of the public housing agen-
cy, including any developments or functions of the
agency under any section of this Act;
(3) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management and, if appro-
priate, provide for such authorities or firms to over-
see implementation of assistance made available for
capital improvements for public housing;
(4) require the agency to make other arrange-
ments acceptable to the Secretary and in the best in-
terests of the public housing residents and assisted
families under title III for managing all, or part of,
the public housing administered by the agency or the
functions of the agency; or
(5) petition for the appointment of a receiver
for the public housing agency to any district court
of the United States or to any court of the State in
287
which any portion of the jurisdiction of the public
housing agency is located, that is authorized to ap-
point a receiver for the purposes and having the
powers prescribed in this section.
(c) EMERGENCY ASSISTANCE.—The Secretary may
make available to receivers and other entities selected or
appointed pursuant to this section such assistance as is
fair and reasonable to remedy the substantial deteriora-
tion of living conditions in individual public housing devel-
opments or other related emergencies that endanger the
health, safety and welfare of public housing residents or
assisted families under title III.
(d) POWERS OF SECRETARY.—If the Secretary takes
possession of an agency, or any developments or functions
of an agency, pursuant to subsection (b)(2), the Sec-
retary—
(1) may abrogate contracts that substantially
impede correction of the substantial default or im-
provement of the classification, but only after efforts
to renegotiate such contracts have failed and the
Secretary has made a written determination regard-
ing such abrogation, which shall be available to the
public upon request, identify such contracts, and ex-
plain the determination that such contracts may be
abrogated;
288
(2) may demolish and dispose of assets of the
agency in accordance with section 261;
(3) where determined appropriate by the Sec-
retary, may require the establishment of one or more
new public housing agencies;
(4) may consolidate the agency into other well-
managed public housing agencies with the consent of
such well-managed authorities;
(5) shall not be subject to any State or local
laws relating to civil service requirements, employee
rights, procurement, or financial or administrative
controls that, in the determination of the Secretary,
substantially impede correction of the substantial de-
fault or improvement of the classification, but only
if the Secretary has made a written determination
regarding such inapplicability, which shall be avail-
able to the public upon request, identify such inap-
plicable laws, and explain the determination that
such laws impede such correction; and
(6) shall have such additional authority as a
district court of the United States has the authority
to confer under like circumstances upon a receiver to
achieve the purposes of the receivership.
The Secretary may appoint, on a competitive or non-
competitive basis, an individual or entity as an administra-
289
tive receiver to assume the Secretary’s responsibility under
this paragraph for the administration of a public housing
agency. The Secretary may delegate to the administrative
receiver any or all of the powers of the Secretary under
this subsection. Regardless of any delegation under this
subsection, an administrative receiver may not require the
establishment of one or more new public housing agencies
pursuant to paragraph (3) unless the Secretary first ap-
proves such establishment. For purposes of this sub-
section, the term ‘‘public housing agency’’ includes any de-
velopments or functions of a public housing agency under
any section of this title.
(e) RECEIVERSHIP.—
(1) REQUIRED APPOINTMENT.—In any proceed-
ing under subsection (b)(5), upon a determination
that a substantial default has occurred, and without
regard to the availability of alternative remedies, the
court shall appoint a receiver to conduct the affairs
of the public housing agency in a manner consistent
with this Act and in accordance with such further
terms and conditions as the court may provide. The
receiver appointed may be another public housing
agency, a private management corporation, the Sec-
retary, or any other appropriate entity. The court
shall have power to grant appropriate temporary or
290
preliminary relief pending final disposition of the pe-
tition by the Secretary.
(2) POWERS OF RECEIVER.—If a receiver is ap-
pointed for a public housing agency pursuant to sub-
section (b)(5), in addition to the powers accorded by
the court appointing the receiver, the receiver—
(A) may abrogate contracts that substan-
tially impede correction of the substantial de-
fault or improvement of the classification, but
only after bona fide efforts to renegotiate such
contracts have failed and the receiver has made
a written determination regarding such abroga-
tion, which shall be available to the public upon
request, identify such contracts, and explain the
determination that such contracts may be abro-
gated;
(B) may demolish and dispose of assets of
the agency in accordance with section 261;
(C) where determined appropriate by the
Secretary, may require the establishment of one
or more new public housing agencies, to the ex-
tent permitted by State and local law; and
(D) except as provided in subparagraph
(C), shall not be subject to any State or local
laws relating to civil service requirements, em-
291
ployee rights, procurement, or financial or ad-
ministrative controls that, in the determination
of the receiver, substantially impede correction
of the substantial default or improvement of the
classification, but only if the receiver has made
a written determination regarding such inappli-
cability, which shall be available to the public
upon request, identify such inapplicable laws,
and explain the determination that such laws
impede such correction.
For purposes of this paragraph, the term ‘‘public
housing agency’’ includes any developments or func-
tions of a public housing agency under any section
of this title.
(3) TERMINATION.—The appointment of a re-
ceiver pursuant to this subsection may be termi-
nated, upon the petition of any party, when the
court determines that all defaults have been cured or
the public housing agency will be able to make the
same amount of progress in correcting the manage-
ment of the housing as the receiver.
(f) LIABILITY.—If the Secretary takes possession of
an agency pursuant to subsection (b)(2) or a receiver is
appointed pursuant to subsection (b)(5) for a public hous-
ing agency, the Secretary or the receiver shall be deemed
292
to be acting in the capacity of the public housing agency
(and not in the official capacity as Secretary or other offi-
cial) and any liability incurred shall be a liability of the
public housing agency.
(g) EFFECTIVENESS.—The provisions of this section
shall apply with respect to actions taken before, on, or
after the effective date of this Act and shall apply to any
receivers appointed for a public housing agency before the
effective date of this Act.
SEC. 546. MANDATORY TAKEOVER OF CHRONICALLY TROU-
BLED PHA’S.
(a) REMOVAL
OF AGENCY.—Notwithstanding any
other provision of this Act, not later than the expiration
of the 180-day period beginning on the effective date of
this Act, the Secretary shall take one of the following ac-
tions with respect to each chronically troubled public hous-
ing agency:
(1) CONTRACTING FOR MANAGEMENT.—Solicit
competitive proposals for the management of the
agency pursuant to section 545(b)(1) and replace
the management of the agency pursuant to selection
of such a proposal.
(2) TAKEOVER.—Take possession of the agency
pursuant to section 545(b)(2) of such Act.
293
(3) PETITION FOR RECEIVER.—Petition for the
appointment of a receiver for the agency pursuant to
section 545(b)(5).
(b) DEFINITION.—For purposes of this section, the
term ‘‘chronically troubled public housing agency’’ means
a public housing agency that, as of the effective date of
this Act, is designated under section 6(j)(2) of the United
States Housing Act of 1937 (as in effect immediately be-
fore the effective date of the repeal under section 601(b)
of this Act) as a troubled public housing agency and has
been so designated continuously for the 3-year period end-
ing upon the effective date of this Act; except that such
term does not include any agency that owns or operates
less than 1250 public housing dwelling units and that the
Secretary determines can, with a reasonable amount of ef-
fort, make such improvements or remedies as may be nec-
essary to remove its designation as troubled within 12
months.
SEC. 547. TREATMENT OF TROUBLED PHA’S.
(a) EFFECT OF TROUBLED STATUS ON CHAS.—The
comprehensive housing affordability strategy (or any con-
solidated plan incorporating such strategy) for the State
or unit of general local government in which any troubled
public housing agency is located shall not be considered
to comply with the requirements under section 105 of the
294
Cranston-Gonzalez National Affordable Housing Act un-
less such plan includes a description of the manner in
which the State or unit will assist such troubled agency
in improving its operations to remove such designation.
(b) DEFINITION.—For purposes of this section, the
term ‘‘troubled public housing agency’’ means a public
housing agency that—
(1) upon the effective date of this Act, is des-
ignated under section 6(j)(2) of the United States
Housing Act of 1937 (as in effect immediately be-
fore the effective date of the repeal under section
601(b) of this Act) as a troubled public housing
agency; and
(2) is not a chronically troubled public housing
agency, as such term is defined in section 546(b) of
this Act.
SEC. 548. MAINTENANCE OF RECORDS.
Each public housing agency shall keep such records
as may be reasonably necessary to disclose the amount
and the disposition by the agency of the proceeds of assist-
ance received pursuant to this Act and to ensure compli-
ance with the requirements of this Act.
SEC. 549. ANNUAL REPORTS REGARDING TROUBLED PHA’S.
The Secretary shall submit a report to the Congress
annually, as a part of the report of the Secretary under
295
section 8 of the Department of Housing and Urban Devel-
opment Act, that—
(1) identifies the public housing agencies that
are designated under section 533 as troubled or at-
risk of becoming troubled and the reasons for such
designation; and
(2) describes any actions that have been taken
in accordance with sections 542, 543, 544, and 545.
SEC. 550. APPLICABILITY TO RESIDENT MANAGEMENT
CORPORATIONS.
The Secretary shall apply the provisions of this sub-
title to resident management corporations in the same
manner as applied to public housing agencies.
SEC. 551. ADVISORY COUNCIL FOR HOUSING AUTHORITY
OF NEW ORLEANS.
(a) ESTABLISHMENT.—The Secretary and the Hous-
ing Authority of New Orleans (in this section referred to
as the ‘‘Housing Authority’’) shall, pursuant to the coop-
erative endeavor agreement in effect between the Sec-
retary and the Housing Authority, establish an advisory
council for the Housing Authority of New Orleans (in this
section referred to as the ‘‘advisory council’’) that com-
plies with the requirements of this section.
(b) MEMBERSHIP.—
296
(1) IN GENERAL.—The advisory council shall be
appointed by the Secretary, not later than 90 days
after the date of the enactment of this Act, and shall
be composed of the following members:
(A) The Inspector General of the Depart-
ment of Housing and Urban Development (or
the Inspector General’s designee).
(B) Not more than 7 other members, who
shall be selected for appointment based on their
experience in successfully reforming troubled
public housing agencies or in providing afford-
able housing in coordination with State and
local governments, the private sector, affordable
housing residents, or local nonprofit organiza-
tions.
(2) PROHIBITION ON ADDITIONAL PAY.—Mem-
bers of the advisory council shall serve without com-
pensation, but shall be reimbursed for travel, sub-
sistence, and other necessary expenses incurred in
the performance of their duties as members of the
Board using amounts from the Headquarters Re-
serve fund pursuant to section 111(b)(4).
(c) FUNCTIONS.—The advisory council shall—
(1) establish standards and guidelines for as-
sessing the performance of the Housing Authority in
297
carrying out operational, asset management, and fi-
nancial functions for purposes of the reports and
finding under subsections (d) and (e), respectively;
(2) provide advice, expertise, and recommenda-
tions to the Housing Authority regarding the man-
agement, operation, repair, redevelopment, revital-
ization, demolition, and disposition of public housing
developments of the Housing Authority;
(3) report to the Congress under subsection (d)
regarding any progress of the Housing Authority in
improving the performance of its functions; and
(4) make a final finding to the Congress under
subsection (e) regarding the future of the Housing
Authority.
(d) QUARTERLY REPORTS.—The advisory council
shall report to the Congress and the Secretary not less
than every 3 months regarding the performance of the
Housing Authority and any progress of the authority in
improving its performance and carrying out its functions.
(e) FINAL FINDING.—Upon the expiration of the 18-
month period that begins upon the appointment under
subsection (b)(1) of all members of the advisory council,
the council shall make and submit to the Congress and
the Secretary a finding of whether the Housing Authority
has substantially improved its performance, the perform-
298
ance of its functions, and the overall condition of the Au-
thority such that the Authority should be allowed to con-
tinue to operate as the manager of the public housing of
the Authority. In making the finding under this sub-
section, the advisory council shall consider whether the
Housing Authority has made sufficient progress in the
demolition and revitalization of the Desire Homes develop-
ment, the revitalization of the St. Thomas Homes develop-
ment, the appropriate allocation of operating subsidy
amounts, and the appropriate expending of modernization
amounts.
(f) RECEIVERSHIP.—If the advisory council finds
under subsection (e) that the Housing Authority has not
substantially improved its performance such that the Au-
thority should be allowed to continue to operate as the
manager of the public housing of the Authority, the Sec-
retary shall (notwithstanding section 545(a)) petition
under section 545(b) for the appointment of a receiver for
the Housing Authority, which receivership shall be subject
to the provisions of section 545.
(g) EXEMPTION.—The provisions of section 546 shall
not apply to the Housing Authority.
299
TITLE VI—REPEALS AND
RELATED AMENDMENTS
Subtitle A—Repeals, Effective Date,
and Savings Provisions
SEC. 601. EFFECTIVE DATE AND REPEAL OF UNITED
STATES HOUSING ACT OF 1937.
(a) EFFECTIVE DATE.—
(1) IN GENERAL.—This Act and the amend-
ments made by this Act shall take effect upon the
expiration of the 6-month period beginning on the
date of the enactment of this Act, except as other-
wise provided in this section.
(2) EXCEPTION.—If the Secretary determines
that action under this paragraph is necessary for
program administration or to avoid hardship, the
Secretary may, by notice in accordance with sub-
section (d), delay the effective date of any provision
of this Act until a date not later than October 1,
1998.
(3) SPECIFIC EFFECTIVE DATES.—Any provi-
sion of this Act that specifically provides for the ef-
fective date of such provision shall take effect in ac-
cordance with the terms of the provision.
(b) REPEAL OF UNITED STATES HOUSING ACT OF
1937.—Effective upon the effective date under subsection
300
(a)(1), the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is repealed, subject to the conditions under
subsection (c). Subsection (a)(2) shall not apply to this
subsection.
(c) SAVINGS PROVISIONS.—
(1) OBLIGATIONS UNDER 1937 ACT.—Any obli-
gation of the Secretary made under authority of the
United States Housing Act of 1937 shall continue to
be governed by the provisions of such Act, except
that—
(A) notwithstanding the repeal of such
Act, the Secretary may make a new obligation
under such Act upon finding that such obliga-
tion is required—
(i) to protect the financial interests of
the United States or the Department of
Housing and Urban Development; or
(ii) for the amendment, extension, or
renewal of existing obligations; and
(B) notwithstanding the repeal of such
Act, the Secretary may, in accordance with sub-
section (d), issue regulations and other guid-
ance and directives as if such Act were in effect
if the Secretary finds that such action is nec-
301
essary to facilitate the administration of obliga-
tions under such Act.
(2) TRANSITION
OF
FUNDING.—Amounts ap-
propriated under the United States Housing Act of
1937 shall, upon repeal of such Act, remain avail-
able for obligation under such Act in accordance
with the terms under which amounts were made
available.
(3) CROSS
REFERENCES.—The provisions of
the United States Housing Act of 1937 shall remain
in effect for purposes of the validity of any reference
to a provision of such Act in any statute (other than
such Act) until such reference is modified by law or
repealed.
(d) PUBLICATION AND EFFECTIVE DATE OF NO-
TICES OF DELAY.—
(1) SUBMISSION TO CONGRESS.—The Secretary
shall submit to the Committee on Banking and Fi-
nancial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a copy of any proposed notice
under subsection (a)(2) or any proposed regulation,
guidance, or directive under subsection (c)(1)(B).
(2) OPPORTUNITY TO REVIEW.—Such a regula-
tion, notice, guidance, or directive may not be pub-
302
lished for comment or for final effectiveness before
or during the 15-calendar day period beginning on
the day after the date on which such regulation, no-
tice, guidance, or directive was submitted to the
Congress.
(3) EFFECTIVE DATE.—No regulation, notice,
guideline, or directive may become effective until
after the expiration of the 30-calendar day period
beginning on the day after the day on which such
rule or regulation is published as final.
(4) WAIVER.—The provisions of paragraphs (2)
and (3) may be waived upon the written request of
the Secretary, if agreed to by the Chairmen and
Ranking Minority Members of both Committees.
(e) MODIFICATIONS.—Notwithstanding any provision
of this Act or any annual contributions contract or other
agreement entered into by the Secretary and a public
housing agency pursuant to the provisions of the United
States Housing Act of 1937 (as in effect before the effec-
tive date of the repeal under section 601(b) of this Act),
the Secretary and the agency may by mutual consent
amend, supersede, or modify any such agreement as ap-
propriate to provide for assistance under this Act, except
that the Secretary and the agency may not consent to any
such amendment, supersession, or modification that sub-
303
stantially alters any outstanding obligations requiring con-
tinued maintenance of the low-income character of any
public housing development and any such amendment,
supersession, or modification shall not be given effect.
(f) SECTION 8 PROJECT-BASED ASSISTANCE.—
(1) IN GENERAL.—The provisions of the United
States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) shall remain in effect after the effectiveness of
the repeal under subsection (b) with respect to all
section 8 project-based assistance, pursuant to exist-
ing and future contracts, except as otherwise pro-
vided by this section.
(2) TENANT
SELECTION
PREFERENCES.—An
owner of housing assisted with section 8 project-
based assistance shall give preference, in the selec-
tion of tenants for units of such projects that be-
come available, according to any system of local
preferences established pursuant to section 223 by
the public housing agency having jurisdiction for the
area in which such projects are located.
(3) 1-YEAR
NOTIFICATION.—Paragraphs (9)
and (10) of section 8(c) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(c)) shall not be
applicable to section 8 project-based assistance.
304
(4) LEASE TERMS.—Leases for dwelling units
assisted with section 8 project-based assistance shall
comply with the provisions of paragraphs (1) and
(3) of section 324 of this Act and shall not be sub-
ject to the provisions of 8(d)(1)(B) of the United
States Housing Act of 1937.
(5) TERMINATION
OF
TENANCY.—Any termi-
nation of tenancy of a resident of a dwelling unit as-
sisted with section 8 project-based assistance shall
comply with the provisions of section 324(2) and
section 325 of this Act and shall not be subject to
the provisions of section 8(d)(1)(B) of the United
States Housing Act of 1937.
(6) TREATMENT OF COMMON AREAS.—The Sec-
retary may not provide any assistance amounts pur-
suant to an existing contract for section 8 project-
based assistance for a housing project and may not
enter into a new or renewal contract for such assist-
ance for a project unless the owner of the project
provides consent, to such local law enforcement
agencies as the Secretary determines appropriate,
for law enforcement officers of such agencies to
enter common areas of the project at any time and
without advance notice upon a determination of
305
probable cause by such officers that criminal activity
is taking place in such areas.
(7) DEFINITION.—For purposes of this sub-
section, the term ‘‘section 8 project-based assist-
ance’’ means assistance under any of the following
programs:
(A) The new construction or substantial
rehabilitation program under section 8(b)(2) of
the United States Housing Act of 1937 (as in
effect before October 1, 1983).
(B) The property disposition program
under section 8(b) of the United States Hous-
ing Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of this
Act).
(C) The loan management set-aside pro-
gram under subsections (b) and (v) of section
8 of such Act.
(D) The project-based certificate program
under section 8(d)(2) of such Act.
(E) The moderate rehabilitation program
under section 8(e)(2) of the United States
Housing Act of 1937 (as in effect before Octo-
ber 1, 1991).
306
(F) The low-income housing preservation
program under Low-Income Housing Preserva-
tion and Resident Homeownership Act of 1990
or the provisions of the Emergency Low Income
Housing Preservation Act of 1987 (as in effect
before November 28, 1990).
(G) Section 8 of the United States Hous-
ing Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of this
Act), following conversion from assistance
under section 101 of the Housing and Urban
Development Act of 1965 or section 236(f)(2)
of the National Housing Act.
(g) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 602. OTHER REPEALS.
(a) IN GENERAL.—The following provisions of law
are hereby repealed:
(1) ASSISTED HOUSING ALLOCATION.—Section
213 of the Housing and Community Development
Act of 1974 (42 U.S.C. 1439).
(2) PUBLIC HOUSING RENT WAIVERS FOR PO-
LICE.—Section 519 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437a–1).
307
(3) TREATMENT OF CERTIFICATE AND VOUCH-
ER HOLDERS.—Subsection (c) of section 183 of the
Housing and Community Development Act of 1987
(42 U.S.C. 1437f note).
(4) EXCESSIVE
RENT
BURDEN
DATA.—Sub-
section (b) of section 550 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f
note).
(5) MOVING TO OPPORTUNITY FOR FAIR HOUS-
ING.—Section 152 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).
(6) REPORT REGARDING FAIR HOUSING OBJEC-
TIVES.—Section 153 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).
(7) SPECIAL
PROJECTS
FOR
ELDERLY
OR
HANDICAPPED FAMILIES.—Section 209 of the Hous-
ing and Community Development Act of 1974 (42
U.S.C. 1438).
(8) ACCESS TO PHA BOOKS.—Section 816 of
the Housing Act of 1954 (42 U.S.C. 1435).
(9) MISCELLANEOUS PROVISIONS.—Subsections
(b)(1) and (d) of section 326 of the Housing and
Community Development Amendments of 1981
(Public Law 97–35, 95 Stat. 406; 42 U.S.C. 1437f
note).
308
(10) 
PAYMENT
FOR
DEVELOPMENT
MAN-
AGERS.—Section 329A of the Housing and Commu-
nity Development Amendments of 1981 (42 U.S.C.
1437j–1).
(11) 
PROCUREMENT
OF
INSURANCE
BY
PHA’S.—In the item relating to ‘‘ADMINISTRATIVE
PROVISIONS’’ under the heading ‘‘MANAGEMENT
AND ADMINISTRATION’’ in title II of the Depart-
ments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropria-
tions Act, 1991, the penultimate undesignated para-
graph of such item (Public Law 101–507; 104 Stat.
1369).
(12) PUBLIC HOUSING CHILDHOOD DEVELOP-
MENT.—Section 222 of the Housing and Urban-
Rural Recovery Act of 1983 (12 U.S.C. 1701z–6
note).
(13) INDIAN HOUSING CHILDHOOD DEVELOP-
MENT.—Section 518 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (12 U.S.C. 1701z–6
note).
(14) PUBLIC HOUSING COMPREHENSIVE TRAN-
SITION DEMONSTRATION.—Section 126 of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 1437f note).
309
(15) PUBLIC
HOUSING
ONE-STOP
PERINATAL
SERVICES
DEMONSTRATION.—Section 521 of the
Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437t note).
(16) PUBLIC
HOUSING
MINCS
DEMONSTRA-
TION.—Section 522 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437f
note).
(17) PUBLIC
HOUSING
ENERGY
EFFICIENCY
DEMONSTRATION.—Section 523 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 1437g note).
(18) OMAHA
HOMEOWNERSHIP
DEMONSTRA-
TION.—Section 132 of the Housing and Community
Development Act of 1992 (Public Law 102–550;
106 Stat. 3712).
(19) PUBLIC AND ASSISTED HOUSING YOUTH
SPORTS PROGRAMS.—Section 520 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 11903a).
(20) FROST-LELAND PROVISIONS.—Section 415
of the Department of Housing and Urban Develop-
ment—Independent Agencies Appropriations Act,
1988 (Public Law 100–202; 101 Stat. 1329–213);
except that, notwithstanding any other provision of
310
law, beginning on the date of enactment of this Act,
the public housing projects described in section 415
of such appropriations Act (as such section existed
immediately before the date of enactment of this
Act) shall be eligible for demolition—
(A) under section 14 of the United States
Housing Act of 1937 (as such section existed
upon the enactment of this Act); and
(B) under section 9 of the United States
Housing Act of 1937.
(21) MULTIFAMILY
FINANCING.—The penul-
timate sentence of section 302(b)(2) of the National
Housing Act (12 U.S.C. 1717(b)(2)) and the penul-
timate sentence of section 305(a)(2) of the Emer-
gency Home Finance Act of 1970 (12 U.S.C.
1454(a)(2)).
(22) CONFLICTS OF INTEREST.—Subsection (c)
of section 326 of the Housing and Community De-
velopment Amendments of 1981 (42 U.S.C. 1437f
note).
(23) CONVERSION OF PUBLIC HOUSING.—Sec-
tion 202 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l
note) (enacted as section 101(e) of the Omnibus
311
Consolidated Rescissions and Appropriations Act of
1996 (Public Law 104–134; 110 Stat. 1321–279)).
(b) SAVINGS PROVISION.—Except to the extent oth-
erwise provided in this Act—
(1) the repeals made by subsection (a) shall not
affect any legally binding obligations entered into be-
fore the effective date of this Act; and
(2) any funds or activities subject to a provision
of law repealed by subsection (a) shall continue to
be governed by the provision as in effect immediately
before such repeal.
Subtitle B—Other Provisions Relat-
ing to Public Housing and Rent-
al Assistance Programs
SEC. 621. ALLOCATION OF ELDERLY HOUSING AMOUNTS.
Section 202(l) of the Housing Act of 1959 (12 U.S.C.
1701q(l)) is amended by adding at the end the following
new paragraph:
‘‘(4) CONSIDERATION IN ALLOCATING ASSIST-
ANCE.—Assistance under this section shall be allo-
cated in a manner that ensures that the awards of
the assistance are made for projects of sufficient size
to accommodate facilities for supportive services ap-
propriate to the needs of frail elderly residents.’’.
312
SEC. 622. PET OWNERSHIP.
Section 227 of the Housing and Urban-Rural Recov-
ery Act of 1983 (12 U.S.C. 1701r–1) is amended to read
as follows:
‘‘SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENT-
AL HOUSING.
‘‘(a) RIGHT OF OWNERSHIP.—A resident of a dwell-
ing unit in federally assisted rental housing may own com-
mon household pets or have common household pets
present in the dwelling unit of such resident, subject to
the reasonable requirements of the owner of the federally
assisted rental housing and providing that the resident
maintains the animals responsibly and in compliance with
applicable local and State public health, animal control,
and anticruelty laws. Such reasonable requirements may
include requiring payment of a nominal fee and pet deposit
by residents owning or having pets present, to cover the
operating costs to the project relating to the presence of
pets and to establish an escrow account for additional such
costs not otherwise covered, respectively. Notwithstanding
section 225(d) of the Housing Opportunity and Respon-
sibility Act of 1997, a public housing agency may not
grant any exemption under such section from payment,
in whole or in part, of any fee or deposit required pursuant
to the preceding sentence.
313
‘‘(b) PROHIBITION AGAINST DISCRIMINATION.—No
owner of federally assisted rental housing may restrict or
discriminate against any person in connection with admis-
sion to, or continued occupancy of, such housing by reason
of the ownership of common household pets by, or the
presence of such pets in the dwelling unit of, such person.
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) FEDERALLY
ASSISTED
RENTAL
HOUS-
ING.—The term ‘federally assisted rental housing’
means any multifamily rental housing project that
is—
‘‘(A) public housing (as such term is de-
fined in section 103 of the Housing Oppor-
tunity and Responsibility Act of 1997);
‘‘(B) assisted with project-based assistance
pursuant to section 601(f) of the Housing Op-
portunity and Responsibility Act of 1997 or
under section 8 of the United States Housing
Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of the
Housing Opportunity and Responsibility Act of
1997);
‘‘(C) assisted under section 202 of the
Housing Act of 1959 (as amended by section
314
801 of the Cranston-Gonzalez National Afford-
able Housing Act);
‘‘(D) assisted under section 202 of the
Housing Act of 1959 (as in effect before the en-
actment of the Cranston-Gonzalez National Af-
fordable Housing Act);
‘‘(E) assisted under title V of the Housing
Act of 1949; or
‘‘(F) insured, assisted, or held by the Sec-
retary or a State or State agency under section
236 of the National Housing Act.
‘‘(2) OWNER.—The term ‘owner’ means, with
respect to federally assisted rental housing, the en-
tity or private person, including a cooperative or
public housing agency, that has the legal right to
lease or sublease dwelling units in such housing (in-
cluding a manager of such housing having such
right).
‘‘(d) REGULATIONS.—This section shall take effect
upon the date of the effectiveness of regulations issued by
the Secretary to carry out this section. Such regulations
shall be issued not later than the expiration of the 1-year
period beginning on the date of the enactment of the
Housing Opportunity and Responsibility Act of 1997 and
after notice and opportunity for public comment in accord-
315
ance with the procedure under section 553 of title 5, Unit-
ed States Code, applicable to substantive rules (notwith-
standing subsections (a)(2), (b)(B), and (d)(3) of such
section).’’.
SEC. 623. REVIEW OF DRUG ELIMINATION PROGRAM CON-
TRACTS.
(a) REQUIREMENT.—The Secretary of Housing and
Urban Development shall investigate all security contracts
awarded by grantees under the Public and Assisted Hous-
ing Drug Elimination Act of 1990 (42 U.S.C. 11901 et
seq.) that are public housing agencies that own or operate
more than 4,500 public housing dwelling units—
(1) to determine whether the contractors under
such contracts have complied with all laws and regu-
lations regarding prohibition of discrimination in
hiring practices;
(2) to determine whether such contracts were
awarded in accordance with the applicable laws and
regulations regarding the award of such contracts;
(3) to determine how many such contracts were
awarded under emergency contracting procedures;
(4) to evaluate the effectiveness of the con-
tracts; and
(5) to provide a full accounting of all expenses
under the contracts.
316
(b) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Secretary shall complete
the investigation required under subsection (a) and submit
a report to the Congress regarding the findings under the
investigation. With respect to each such contract, the re-
port shall (1) state whether the contract was made and
is operating, or was not made or is not operating, in full
compliance with applicable laws and regulations, and (2)
for each contract that the Secretary determines is in such
compliance issue a personal certification of such compli-
ance by the Secretary of Housing and Urban Develop-
ment.
(c) ACTIONS.—For each contract that is described in
the report under subsection (b) as not made or not operat-
ing in full compliance with applicable laws and regulations,
the Secretary of Housing and Urban Development shall
promptly take any actions available under law or regula-
tion that are necessary—
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
317
SEC. 624. AMENDMENTS TO PUBLIC AND ASSISTED HOUS-
ING DRUG ELIMINATION ACT OF 1990.
(a) SHORT TITLE, PURPOSES, AND AUTHORITY TO
MAKE GRANTS.—Chapter 2 of subtitle C of title V of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.)
is amended by striking the chapter heading and all that
follows through section 5123 and inserting the following:
‘‘CHAPTER 2—COMMUNITY
PARTNERSHIPS AGAINST CRIME
‘‘SEC. 5121. SHORT TITLE.
‘‘This chapter may be cited as the ‘Community Part-
nerships Against Crime Act of 1997’.
‘‘SEC. 5122. PURPOSES.
‘‘The purposes of this chapter are to—
‘‘(1) improve the quality of life for the vast ma-
jority of law-abiding public housing residents by re-
ducing the levels of fear, violence, and crime in their
communities;
‘‘(2) broaden the scope of the Public and As-
sisted Housing Drug Elimination Act of 1990 to
apply to all types of crime, and not simply crime
that is drug-related; and
‘‘(3) reduce crime and disorder in and around
public housing through the expansion of community-
oriented policing activities and problem solving.
318
‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.
‘‘The Secretary of Housing and Urban Development
may make grants in accordance with the provisions of this
chapter for use in eliminating crime in and around public
housing and other federally assisted low-income housing
projects to (1) public housing agencies, and (2) private,
for-profit and nonprofit owners of federally assisted low-
income housing.’’.
(b) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.—Section 5124(a) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is
amended—
(A) in the matter preceding paragraph (1),
by inserting ‘‘and around’’ after ‘‘used in’’;
(B) in paragraph (3), by inserting before
the semicolon the following: ‘‘, including fenc-
ing, lighting, locking, and surveillance systems’’;
(C) in paragraph (4), by striking subpara-
graph (A) and inserting the following new sub-
paragraph:
‘‘(A) to investigate crime; and’’;
(D) in paragraph (6)—
(i) by striking ‘‘in and around public
or other federally assisted low-income
housing projects’’; and
319
(ii) by striking ‘‘and’’ after the semi-
colon; and
(E) by striking paragraph (7) and insert-
ing the following new paragraphs:
‘‘(7) providing funding to nonprofit public hous-
ing resident management corporations and resident
councils to develop security and crime prevention
programs involving site residents;
‘‘(8) the employment or utilization of one or
more individuals, including law enforcement officers,
made available by contract or other cooperative ar-
rangement with State or local law enforcement agen-
cies, to engage in community- and problem-oriented
policing involving interaction with members of the
community in proactive crime control and prevention
activities;
‘‘(9) programs and activities for or involving
youth, including training, education, recreation and
sports, career planning, and entrepreneurship and
employment activities and after school and cultural
programs; and
‘‘(10) service programs for residents that ad-
dress the contributing factors of crime, including
programs for job training, education, drug and alco-
320
hol treatment, and other appropriate social serv-
ices.’’.
(2) OTHER
PHA-OWNED
HOUSING.—Section
5124(b) of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11903(b)) is amended—
(A) in the matter preceding paragraph
(1)—
(i) by striking ‘‘drug-related crime in’’
and inserting ‘‘crime in and around’’; and
(ii) 
by 
striking 
‘‘paragraphs 
(1)
through (7)’’ and inserting ‘‘paragraphs
(1) through (10)’’; and
(B) in paragraph (2), by striking ‘‘drug-re-
lated’’ and inserting ‘‘criminal’’.
(c) GRANT PROCEDURES.—Section 5125 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended
to read as follows:
‘‘SEC. 5125. GRANT PROCEDURES.
‘‘(a) PHA’S WITH 250 OR MORE UNITS.—
‘‘(1) GRANTS.—In each fiscal year, the Sec-
retary shall make a grant under this chapter from
any amounts available under section 5131(b)(1) for
the fiscal year to each of the following public hous-
ing agencies:
321
‘‘(A) 
NEW
APPLICANTS.—Each 
public
housing agency that owns or operates 250 or
more public housing dwelling units and has—
‘‘(i) submitted an application to the
Secretary for a grant for such fiscal year,
which includes a 5-year crime deterrence
and reduction plan under paragraph (2);
and
‘‘(ii) had such application and plan
approved by the Secretary.
‘‘(B) RENEWALS.—Each public housing
agency that owns or operates 250 or more pub-
lic housing dwelling units and for which—
‘‘(i) a grant was made under this
chapter for the preceding Federal fiscal
year;
‘‘(ii) the term of the 5-year crime de-
terrence and reduction plan applicable to
such grant includes the fiscal year for
which the grant under this subsection is to
be made; and
‘‘(iii) the Secretary has determined,
pursuant to a performance review under
paragraph (4), that during the preceding
fiscal year the agency has substantially ful-
322
filled the requirements under subpara-
graphs (A) and (B) of paragraph (4).
Notwithstanding subparagraphs (A) and (B), the
Secretary may make a grant under this chapter to
a public housing agency that owns or operates 250
or more public housing dwelling units only if the
agency includes in the application for the grant in-
formation that demonstrates, to the satisfaction of
the Secretary, that the agency has a need for the
grant amounts based on generally recognized crime
statistics showing that (I) the crime rate for the
public housing developments of the agency (or the
immediate neighborhoods in which such develop-
ments are located) is higher than the crime rate for
the jurisdiction in which the agency operates, (II)
the crime rate for the developments (or such neigh-
borhoods) is increasing over a period of sufficient
duration to indicate a general trend, or (III) the op-
eration of the program under this chapter substan-
tially contributes to the reduction of crime.
‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC-
TION
PLAN.—Each application for a grant under
this subsection shall contain a 5-year crime deter-
rence and reduction plan. The plan shall be devel-
oped with the participation of residents and appro-
323
priate law enforcement officials. The plan shall de-
scribe, for the public housing agency submitting the
plan—
‘‘(A) the nature of the crime problem in
public housing owned or operated by the public
housing agency;
‘‘(B) the building or buildings of the public
housing agency affected by the crime problem;
‘‘(C) the impact of the crime problem on
residents of such building or buildings; and
‘‘(D) the actions to be taken during the
term of the plan to reduce and deter such
crime, which shall include actions involving resi-
dents, law enforcement, and service providers.
The term of a plan shall be the period consisting of
5 consecutive fiscal years, which begins with the first
fiscal year for which funding under this chapter is
provided to carry out the plan.
‘‘(3) AMOUNT.—In any fiscal year, the amount
of the grant for a public housing agency receiving a
grant pursuant to paragraph (1) shall be the
amount that bears the same ratio to the total
amount made available under section 5131(b)(1) as
the total number of public dwelling units owned or
operated by such agency bears to the total number
324
of dwelling units owned or operated by all public
housing agencies that own or operate 250 or more
public housing dwelling units that are approved for
such fiscal year.
‘‘(4) PERFORMANCE REVIEW.—For each fiscal
year, the Secretary shall conduct a performance re-
view of the activities carried out by each public
housing agency receiving a grant pursuant to this
subsection to determine whether the agency—
‘‘(A) has carried out such activities in a
timely manner and in accordance with its 5-
year crime deterrence and reduction plan; and
‘‘(B) has a continuing capacity to carry
out such plan in a timely manner.
‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec-
retary shall establish such deadlines and require-
ments for submission of applications under this sub-
section.
‘‘(6) REVIEW AND DETERMINATION.—The Sec-
retary shall review each application submitted under
this subsection upon submission and shall approve
the application unless the application and the 5-year
crime deterrence and reduction plan are inconsistent
with the purposes of this chapter or any require-
ments established by the Secretary or the informa-
325
tion in the application or plan is not substantially
complete. Upon approving or determining not to ap-
prove an application and plan submitted under this
subsection, the Secretary shall notify the public
housing agency submitting the application and plan
of such approval or disapproval.
‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the
Secretary notifies an agency that the application and
plan of the agency is not approved, not later than
the expiration of the 15-day period beginning upon
such notice of disapproval, the Secretary shall also
notify the agency, in writing, of the reasons for the
disapproval, the actions that the agency could take
to comply with the criteria for approval, and the
deadlines for such actions.
‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—
If the Secretary fails to notify an agency of approval
or disapproval of an application and plan submitted
under this subsection before the expiration of the
60-day period beginning upon the submission of the
plan or fails to provide notice under paragraph (7)
within the 15-day period under such paragraph to
an agency whose application has been disapproved,
the application and plan shall be considered to have
been approved for purposes of this section.
326
‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND
OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS-
ING.—
‘‘(1) APPLICATIONS AND PLANS.—To be eligible
to receive a grant under this chapter, a public hous-
ing agency that owns or operates fewer than 250
public housing dwelling units or an owner of feder-
ally assisted low-income housing shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and accompanied by such additional information
as the Secretary may require. The application shall
include a plan for addressing the problem of crime
in and around the housing for which the application
is submitted, describing in detail activities to be con-
ducted during the fiscal year for which the grant is
requested.
‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN
250 UNITS.—In each fiscal year the Secretary may,
to the extent amounts are available under section
5131(b)(2), make grants under this chapter to pub-
lic housing agencies that own or operate fewer than
250 public housing dwelling units and have submit-
ted applications under paragraph (1) that the Sec-
retary has approved pursuant to the criteria under
paragraph (4).
327
‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW-
INCOME HOUSING.—In each fiscal year the Secretary
may, to the extent amounts are available under sec-
tion 5131(b)(3), make grants under this chapter to
owners of federally assisted low-income housing that
have submitted applications under paragraph (1)
that the Secretary has approved pursuant to the cri-
teria under paragraphs (4) and (5).
‘‘(4) CRITERIA
FOR
APPROVAL
OF
APPLICA-
TIONS.—The Secretary shall determine whether to
approve each application under this subsection on
the basis of—
‘‘(A) the extent of the crime problem in
and around the housing for which the applica-
tion is made;
‘‘(B) the quality of the plan to address the
crime problem in the housing for which the ap-
plication is made;
‘‘(C) the capability of the applicant to
carry out the plan; and
‘‘(D) the extent to which the tenants of the
housing, the local government, local community-
based nonprofit organizations, local tenant or-
ganizations representing residents of neighbor-
ing projects that are owned or assisted by the
328
Secretary, and the local community support and
participate in the design and implementation of
the activities proposed to be funded under the
application.
In each fiscal year, the Secretary may give pref-
erence to applications under this subsection for
housing made by applicants who received a grant for
such housing for the preceding fiscal year under this
subsection or under the provisions of this chapter as
in effect immediately before the date of the enact-
ment of the Housing Opportunity and Responsibility
Act of 1997.
‘‘(5) ADDITIONAL
CRITERIA
FOR
FEDERALLY
ASSISTED
LOW-INCOME
HOUSING.—In addition to
the selection criteria under paragraph (4), the Sec-
retary may establish other criteria for evaluating ap-
plications submitted by owners of federally assisted
low-income housing, except that such additional cri-
teria shall be designed only to reflect—
‘‘(A) relevant differences between the fi-
nancial resources and other characteristics of
public housing agencies and owners of federally
assisted low-income housing; or
‘‘(B) relevant differences between the prob-
lem of crime in public housing administered by
329
such authorities and the problem of crime in
federally assisted low-income housing.’’.
(d) DEFINITIONS.—Section 5126 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11905) is amended—
(1) by striking paragraphs (1) and (2);
(2) in paragraph (4)(A), by striking ‘‘section’’
before ‘‘221(d)(4)’’;
(3) by redesignating paragraphs (3) and (4) (as
so amended) as paragraphs (1) and (2), respectively;
and
(4) by adding at the end the following new
paragraph:
‘‘(3) PUBLIC
HOUSING
AGENCY.—The term
‘public housing agency’ has the meaning given the
term in section 103 of the Housing Opportunity and
Responsibility Act of 1997.’’.
(e) IMPLEMENTATION.—Section 5127 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended
by striking ‘‘Cranston-Gonzalez National Affordable
Housing Act’’ and inserting ‘‘Housing Opportunity and
Responsibility Act of 1997’’.
(f) REPORTS.—Section 5128 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11907) is amended—
(1) by striking ‘‘drug-related crime in’’ and in-
serting ‘‘crime in and around’’; and
330
(2) by striking ‘‘described in section 5125(a)’’
and inserting ‘‘for the grantee submitted under sub-
section (a) or (b) of section 5125, as applicable’’.
(g) FUNDING AND PROGRAM SUNSET.—Chapter 2 of
subtitle C of title V of the Anti-Drug Abuse Act of 1988
is amended by striking section 5130 (42 U.S.C. 11909)
and inserting the following new section:
‘‘SEC. 5130. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this chapter
$290,000,000 for each of fiscal years 1998, 1999, 2000,
2001, and 2002.
‘‘(b) ALLOCATION.—Of any amounts available, or
that the Secretary is authorized to use, to carry out this
chapter in any fiscal year—
‘‘(1) 85 percent shall be available only for as-
sistance pursuant to section 5125(a) to public hous-
ing agencies that own or operate 250 or more public
housing dwelling units;
‘‘(2) 10 percent shall be available only for as-
sistance pursuant to section 5125(b)(2) to public
housing agencies that own or operate fewer than 250
public housing dwelling units; and
331
‘‘(3) 5 percent shall be available only for assist-
ance to federally assisted low-income housing pursu-
ant to section 5125(b)(3).
‘‘(c) RETENTION OF PROCEEDS OF ASSET FORFEIT-
URES BY INSPECTOR GENERAL.—Notwithstanding section
3302 of title 31, United States Code, or any other provi-
sion of law affecting the crediting of collections, the pro-
ceeds of forfeiture proceedings and funds transferred to
the Office of Inspector General of the Department of
Housing and Urban Development, as a participating agen-
cy, from the Department of Justice Assets Forfeiture
Fund or the Department of the Treasury Forfeiture Fund,
as an equitable share from the forfeiture of property in
investigations in which the Office of Inspector General
participates, shall be deposited to the credit of the Office
of Inspector General for Operation Safe Home activities
authorized under the Inspector General Act of 1978, as
amended, to remain available until expended.’’.
(h) CONFORMING AMENDMENTS.—The table of con-
tents in section 5001 of the Anti-Drug Abuse Act of 1988
(Public Law 100–690; 102 Stat. 4295) is amended—
(1) by striking the item relating to the heading
for chapter 2 of subtitle C of title V and inserting
the following:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;
332
(2) by striking the item relating to section 5122
and inserting the following new item:
‘‘Sec. 5122. Purposes.’’;
(3) by striking the item relating to section 5125
and inserting the following new item:
‘‘Sec. 5125. Grant procedures.’’;
and
(4) by striking the item relating to section 5130
and inserting the following new item:
‘‘Sec. 5130. Funding.’’.
(i) TREATMENT OF NOFA.—The cap limiting assist-
ance under the Notice of Funding Availability issued by
the Department of Housing and Urban Development in
the Federal Register of April 8, 1996, shall not apply to
a public housing agency within an area designated as a
high intensity drug trafficking area under section 1005(c)
of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1504(c)).
(j) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date
of the enactment of this Act.
Subtitle C—Limitations Relating to
Occupancy in Federally Assisted
Housing
SEC. 641. SCREENING OF APPLICANTS.
(a) INELIGIBILITY BECAUSE
OF EVICTION.—Any
household or member of a household evicted from federally
333
assisted housing (as such term is defined in section 645)
shall not be eligible for federally assisted housing—
(1) in the case of eviction by reason of drug-re-
lated criminal activity, for a period of not less than
3 years that begins on the date of such eviction, un-
less the evicted member of the household successfully
completes a rehabilitation program; and
(2) in the case of an eviction for other serious
violations of the terms or conditions of the lease, for
a reasonable period of time, as determined by the
public housing agency or owner of the federally as-
sisted housing, as applicable.
The requirements of paragraphs (1) and (2) may be
waived if the circumstances leading to eviction no longer
exist.
(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND
ALCOHOL USERS.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, a public housing agency or an
owner of federally assisted housing, or both, as de-
termined by the Secretary, shall establish standards
that prohibit admission to the program or admission
to federally assisted housing for any household with
a member—
334
(A) who the public housing agency or
owner determines is engaging in the illegal use
of a controlled substance; or
(B) with respect to whom the public hous-
ing agency or owner determines that it has rea-
sonable cause to believe that such household
member’s illegal use (or pattern of illegal use)
of a controlled substance, or abuse (or pattern
of abuse) of alcohol, would interfere with the
health, safety, or right to peaceful enjoyment of
the premises by other residents.
(2) CONSIDERATION OF REHABILITATION.—In
determining whether, pursuant to paragraph (1)(B),
to deny admission to the program or to federally as-
sisted housing to any household based on a pattern
of illegal use of a controlled substance or a pattern
of abuse of alcohol by a household member, a public
housing agency or an owner may consider whether
such household member—
(A) has successfully completed an accred-
ited drug or alcohol rehabilitation program (as
applicable) and is no longer engaging in the ille-
gal use of a controlled substance or abuse of al-
cohol (as applicable);
335
(B) has otherwise been rehabilitated suc-
cessfully and is no longer engaging in the illegal
use of a controlled substance or abuse of alco-
hol (as applicable); or
(C) is participating in an accredited drug
or alcohol rehabilitation program (as applicable)
and is no longer engaging in the illegal use of
a controlled substance or abuse of alcohol (as
applicable).
(c) INELIGIBILITY OF SEXUALLY VIOLENT PREDA-
TORS FOR ADMISSION TO PUBLIC HOUSING.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, a public housing agency shall pro-
hibit admission to public housing for any household
that includes any individual who is a sexually violent
predator.
(2) SEXUALLY VIOLENT PREDATOR.—For pur-
poses of this subsection, the term ‘‘sexually violent
predator’’ means an individual who—
(A) is a sexually violent predator (as such
term is defined in section 170101(a)(3) of such
Act); and
(B) is subject to a registration requirement
under section 170101(a)(1)(B) or 170102(c) of
the Violent Crime Control and Law Enforce-
336
ment Act of 1994 (42 U.S.C. 14071(a)(1)(B),
14072(c)), 
as 
provided 
under 
section
170101(b)(6)(B) or 170102(d)(2), respectively,
of such Act.
(d) AUTHORITY TO DENY ADMISSION TO CRIMINAL
OFFENDERS.—Except as provided in subsections (a), (b),
and (c) and in addition to any other authority to screen
applicants, in selecting among applicants for admission to
the program or to federally assisted housing, if the public
housing agency or owner of such housing (as applicable)
determines that an applicant or any member of the appli-
cant’s household is or was, during a reasonable time pre-
ceding the date when the applicant household would other-
wise be selected for admission, engaged in any criminal
activity (including drug-related criminal activity), the pub-
lic housing agency or owner may—
(1) deny such applicant admission to the pro-
gram or to federally assisted housing;
(2) consider the applicant (for purposes of any
waiting list) as not having applied for the program
or such housing; and
(3) after the expiration of the reasonable period
beginning upon such activity, require the applicant,
as a condition of admission to the program or to
federally assisted housing, to submit to the public
337
housing agency or owner evidence sufficient (as the
Secretary shall by regulation provide) to ensure that
the individual or individuals in the applicant’s house-
hold who engaged in criminal activity for which de-
nial was made under paragraph (1) have not en-
gaged in any criminal activity during such reason-
able period.
(e) AUTHORITY TO REQUIRE ACCESS TO CRIMINAL
RECORDS.—A public housing agency and an owner of fed-
erally assisted housing may require, as a condition of pro-
viding admission to the program or admission to or occu-
pancy in federally assisted housing, that each adult mem-
ber of the household provide a signed, written authoriza-
tion for the public housing agency to obtain the records
described in section 644(a) regarding such member of the
household from the National Crime Information Center,
police departments, other law enforcement agencies, and
State registration agencies referred to in such section. In
the case of an owner of federally assisted housing that is
not a public housing agency, the owner shall request the
public housing agency having jurisdiction over the area
within which the housing is located to obtain the records
pursuant to section 644.
(f) ADMISSION BASED ON DISABILITY.—
338
(1) IN GENERAL.—Notwithstanding any other
provision of law, for purposes of determining eligi-
bility for admission to federally assisted housing, a
person shall not be considered to have a disability or
a handicap solely because of the prior or current ille-
gal use of a controlled substance (as defined in sec-
tion 102 of the Controlled Substances Act) or solely
by reason of the prior or current use of alcohol.
(2) CONTINUED OCCUPANCY.—This subsection
may not be construed to prohibit the continued occu-
pancy of any person who is a resident in assisted
housing on the effective date of this Act.
SEC. 642. TERMINATION OF TENANCY AND ASSISTANCE
FOR ILLEGAL DRUG USERS AND ALCOHOL
ABUSERS.
Notwithstanding any other provision of law, a public
housing agency or an owner of federally assisted housing
(as applicable), shall establish standards or lease provi-
sions for continued assistance or occupancy in federally
assisted housing that allow the agency or owner (as appli-
cable) to terminate the tenancy or assistance for any
household with a member—
(1) who the public housing agency or owner de-
termines is engaging in the illegal use of a controlled
substance; or
339
(2) whose illegal use of a controlled substance,
or whose abuse of alcohol, is determined by the pub-
lic housing agency or owner to interfere with the
health, safety, or right to peaceful enjoyment of the
premises by other residents.
SEC. 643. LEASE REQUIREMENTS.
In addition to any other applicable lease require-
ments, each lease for a dwelling unit in federally assisted
housing shall provide that—
(1) the owner may not terminate the tenancy
except for violation of the terms or conditions of the
lease, violation of applicable Federal, State, or local
law, or for other good cause; and
(2) grounds for termination of tenancy shall in-
clude any criminal or other activity, engaged in by
the tenant, any member of the tenant’s household,
any guest, or any other person under the control of
the household, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other tenant or employees of the owner or other
manager of the housing;
(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises
340
by, persons residing in the immediate vicinity of
the premises; or
(C) with respect only to activity engaged in
by the tenant or any member of the tenant’s
household, is criminal activity on or off the
premises.
SEC. 644. AVAILABILITY OF CRIMINAL RECORDS FOR TEN-
ANT SCREENING AND EVICTION.
(a) IN GENERAL.—
(1) CRIMINAL
CONVICTION
INFORMATION.—
Notwithstanding any other provision of law other
than paragraphs (3) and (4), upon the request of a
public housing agency, the National Crime Informa-
tion Center, a police department, and any other law
enforcement agency shall provide to the public hous-
ing agency information regarding the criminal con-
viction records of an adult applicant for, or tenants
of, federally assisted housing for purposes of appli-
cant screening, lease enforcement, and eviction, but
only if the public housing agency requests such in-
formation and presents to such Center, department,
or agency a written authorization, signed by such
applicant, for the release of such information to the
public housing agency or other owner of the feder-
ally assisted housing.
341
(2) INFORMATION REGARDING CRIMES AGAINST
CHILDREN AND SEXUALLY VIOLENT PREDATORS.—
Notwithstanding any other provision of law other
than paragraphs (3) and (4), upon the request of a
public housing agency, the Federal Bureau of Inves-
tigation, a State law enforcement agency designated
as a registration agency under a State registration
program under subtitle A of title XVII of the Vio-
lent Crime Control and Law Enforcement Act of
1994 (42 U.S.C. 14071), and any local law enforce-
ment agency authorized by the State agency shall
provide to a public housing agency the information
collected under the national database established
pursuant to section 170102 of such Act or such
State registration program, as applicable, regarding
an adult applicant for, or tenant of, federally as-
sisted housing for purposes of applicant screening,
lease enforcement, and eviction, but only if the pub-
lic housing agency requests such information and
presents to such State registration agency or other
local law enforcement agency a written authoriza-
tion, signed by such applicant, for the release of
such information to the public housing agency or
other owner of the federally assisted housing.
342
(3) DELAYED EFFECTIVE DATE FOR OWNERS
OTHER THAN PHA’S.—The provisions of paragraphs
(1) and (2) authorizing obtaining information for
owners of federally assisted housing other than pub-
lic housing agencies shall not take effect before—
(A) the expiration of the 1-year period be-
ginning on the date of enactment of this Act;
and
(B) the Secretary and the Attorney Gen-
eral of the United States have determined that
access to such information is feasible for such
owners and have provided for the terms of re-
lease of such information to owners.
(4) EXCEPTION.—The information provided
under paragraphs (1), (2), and (3) shall include in-
formation regarding any criminal conviction of a ju-
venile only to the extent that the release of such in-
formation is authorized under the law of the applica-
ble State, tribe, or locality.
(b) CONFIDENTIALITY.—A public housing agency or
owner receiving information under this section may use
such information only for the purposes provided in this
section and such information may not be disclosed to any
person who is not an officer, employee, or authorized rep-
resentative of the agency or owner and who has a job-
343
related need to have access to the information in connec-
tion with admission of applicants, eviction of tenants, or
termination of assistance. For judicial eviction proceed-
ings, disclosures may be made to the extent necessary. The
Secretary shall, by regulation, establish procedures nec-
essary to ensure that information provided under this sec-
tion to a public housing agency or owner is used, and con-
fidentiality of such information is maintained, as required
under this section.
(c) OPPORTUNITY TO DISPUTE.—Before an adverse
action is taken with regard to assistance for federally as-
sisted housing on the basis of a criminal record (including
on the basis that an individual is a sexually violent preda-
tor, pursuant to section 641(c)), the public housing agency
or owner shall provide the tenant or applicant with a copy
of the criminal record and an opportunity to dispute the
accuracy and relevance of that record.
(d) FEE.—A public housing agency may be charged
a reasonable fee for information provided under subsection
(a). A public housing agency may require an owner of fed-
erally assisted housing (that is not a public housing agen-
cy) to pay such fee for any information that the agency
acquires for the owner pursuant to section 641(e) and sub-
section (a) of this section.
344
(e) RECORDS MANAGEMENT.—Each public housing
agency and owner of federally assisted housing that re-
ceives criminal record information pursuant to this section
shall establish and implement a system of records manage-
ment that ensures that any criminal record received by
the agency or owner is—
(1) maintained confidentially;
(2) not misused or improperly disseminated;
and
(3) destroyed in a timely fashion, once the pur-
pose for which the record was requested has been
accomplished.
(f) PENALTY.—Any person who knowingly and will-
fully requests or obtains any information concerning an
applicant for, or tenant of, federally assisted housing pur-
suant to the authority under this section under false pre-
tenses, or any person who knowingly and willfully discloses
any such information in any manner to any individual not
entitled under any law to receive it, shall be guilty of a
misdemeanor and fined not more than $5,000. The term
‘‘person’’ as used in this subsection shall include an offi-
cer, employee, or authorized representative of any public
housing agency or owner.
(g) CIVIL ACTION.—Any applicant for, or tenant of,
federally assisted housing affected by (1) a negligent or
345
knowing disclosure of information referred to in this sec-
tion about such person by an officer, employee, or author-
ized representative of any public housing agency or owner
of federally assisted housing, which disclosure is not au-
thorized by this section, or (2) any other negligent or
knowing action that is inconsistent with this section, may
bring a civil action for damages and such other relief as
may be appropriate against any public housing agency or
owner responsible for such unauthorized action. The dis-
trict court of the United States in the district in which
the affected applicant or tenant resides, in which such un-
authorized action occurred, or in which the officer, em-
ployee, or representative alleged to be responsible for any
such unauthorized action resides, shall have jurisdiction
in such matters. Appropriate relief that may be ordered
by such district courts shall include reasonable attorney’s
fees and other litigation costs.
(h) DEFINITION.—For purposes of this section, the
term ‘‘adult’’ means a person who is 18 years of age or
older, or who has been convicted of a crime as an adult
under any Federal, State, or tribal law.
SEC. 645. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply: