H. R. 4194—157
employment, or preparing for employment by participating
in a job training or educational program, or any program
that otherwise assists individuals in obtaining employment
and attaining economic self-sufficiency;
‘‘(B) reduce costs of Federal housing assistance and
achieve greater cost-effectiveness in Federal housing assist-
ance expenditures;
‘‘(C) increase the stock of affordable housing and hous-
ing choices for low-income families;
‘‘(D) increase homeownership among low-income fami-
lies;
‘‘(E) reduce geographic concentration of assisted fami-
lies;
‘‘(F) reduce homelessness through providing permanent
housing solutions;
‘‘(G) improve program management; and
‘‘(H) achieve such other purposes with respect to low-
income families, as determined by the participating local
governments and municipalities in coordination with the
public housing agencies;
‘‘SEC. 402. FLEXIBLE GRANT PROGRAM.
‘‘(a) AUTHORITY
AND USE.—The Secretary shall carry out a
demonstration program in accordance with the purposes under sec-
tion 401 and the provisions of this title. A jurisdiction approved
by the Secretary for participation in the program may receive
and combine and enter into performance-based contracts for the
use of amounts of covered housing assistance, in the manner deter-
mined appropriate by the participating jurisdiction, during the
period of the jurisdiction’s participation—
‘‘(1) to provide housing assistance and services for low-
income families in a manner that facilitates the transition
of such families to work;
‘‘(2) to reduce homelessness through providing permanent
housing solutions;
‘‘(3) to increase homeownership among low-income families;
or
‘‘(4) for other housing purposes for low-income families
determined by the participating jurisdiction.
‘‘(b) PERIOD OF PARTICIPATION.—A jurisdiction may participate
in the demonstration program under this title for a period consisting
of not less than 1 nor more than 5 fiscal years.
‘‘(c) PARTICIPATING JURISDICTIONS.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2), during
the 4-year period consisting of fiscal years 1999 through
2002, the Secretary may approve for participation in the
program under this title not more than an aggregate of
100 jurisdictions over the entire term of the demonstration
program. A jurisdiction that was approved for participation
in the demonstration program under this title in a fiscal
year and that is continuing such participation in any subse-
quent fiscal year shall count as a single jurisdiction for
purposes of the numerical limitation under this paragraph.
‘‘(2) EXCLUSION OF HIGH PERFORMING AGENCIES.—Notwith-
standing any other provision of this title other than paragraph
H. R. 4194—158
(4) of this subsection, the Secretary may approve for participa-
tion in the demonstration program under this title only jurisdic-
tions served by public housing agencies that—
‘‘(A) are not designated as high-performing agencies,
pursuant to their most recent scores under the public hous-
ing management assessment program under section 6( j)(2)
(or any successor assessment program for public housing
agencies), as of the time of approval; and
‘‘(B) have a most recent score under the public housing
management assessment program under section 6( j)(2) (or
any successor assessment program for public housing agen-
cies), as of the time of approval, that is among the lowest
40 percent of the scores of all agencies.
‘‘(3) LIMITATION ON TROUBLED AND NON-TROUBLED PHAS.—
Of the jurisdictions approved by the Secretary for participation
in the demonstration program under this title—
‘‘(A) not more than 55 may be jurisdictions served
by a public housing agency that, at the time of approval,
is designated as a troubled agency under the public housing
management assessment program under section 6( j)(2) (or
any successor assessment program for public housing agen-
cies); and
‘‘(B) not more than 45 may be jurisdictions served
by a public housing agency that, at the time of approval,
is not designated as a troubled agency under the public
housing management assessment program under section
6( j)(2) (or any successor assessment program for public
housing agencies).
‘‘(4) EXCEPTION.—If the City of Indianapolis, Indiana sub-
mits an application for participation in the program under
this title and, upon review of the application under section
406(b), the Secretary determines that such application is
approvable under this title, the Secretary shall approve such
application, notwithstanding the second sentence of section
406(b)(2). Such City shall count for purposes of the numerical
limitations on jurisdictions under paragraphs (1) and (3) of
section 402(c), but the provisions of section 402(c)(2) (relating
to exclusion of high-performing agencies) shall not apply to
such City.
‘‘SEC. 403. PROGRAM ALLOCATION AND COVERED HOUSING ASSIST-
ANCE.
‘‘(a) PROGRAM ALLOCATION.—In each fiscal year, the amount
made available to each participating jurisdiction under the dem-
onstration program under this title shall be equal to the sum
of the amounts of covered housing assistance that would otherwise
be made available under the provisions of this Act to the public
housing agency for the jurisdiction.
‘‘(b) COVERED HOUSING ASSISTANCE.—For purposes of this title,
the term ‘covered housing assistance’ means—
‘‘(1) operating assistance under section 9 (as in effect before
the effective date under section 503(a) of the Quality Housing
and Work Responsibility Act of 1998);
‘‘(2) modernization assistance under section 14 (as in effect
before the effective date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998);
H. R. 4194—159
‘‘(3) assistance for the certificate and voucher programs
under section 8 (as in effect before the effective date under
section 503(a) of the Quality Housing and Work Responsibility
Act of 1998);
‘‘(4) assistance from the Operating Fund under section
9(e);
‘‘(5) assistance from the Capital Fund under section 9(d);
and
‘‘(6) tenant-based assistance under section 8 (as amended
by the Quality Housing and Work Responsibility Act of 1998).
‘‘SEC. 404. APPLICABILITY OF REQUIREMENTS UNDER PROGRAMS FOR
COVERED HOUSING ASSISTANCE.
‘‘(a) IN GENERAL.—In each fiscal year of the demonstration
program under this title, amounts made available to a participating
jurisdiction under the demonstration program shall be subject to
the same terms and conditions as such amounts would be subject
to if made available under the provisions of this Act pursuant
to which covered housing assistance is otherwise made available
under this Act to the public housing agency for the jurisdiction,
except that—
‘‘(1) the Secretary may waive any such term or condition
identified by the jurisdiction to the extent that the Secretary
determines such action to be appropriate to carry out the pur-
poses of the demonstration program under this title; and
‘‘(2) the participating jurisdiction may combine the amounts
made available and use the amounts for any activity eligible
under the programs under sections 8 and 9.
‘‘(b) NUMBER OF FAMILIES ASSISTED.—In carrying out the dem-
onstration program under this title, each participating jurisdiction
shall assist substantially the same total number of eligible low-
income families as would have otherwise been served by the public
housing agency for the jurisdiction had the jurisdiction not partici-
pated in the demonstration program under this title.
‘‘(c) PROTECTION OF RECIPIENTS.—This title may not be con-
strued to authorize the termination of assistance to any recipient
receiving assistance under this Act before the date of the enactment
of this title as a result of the implementation of the demonstration
program under this title.
‘‘(d) EFFECT ON ABILITY TO COMPETE FOR OTHER PROGRAMS.—
This title may not be construed to affect the ability of any applying
or participating jurisdiction (or a public housing agency for any
such jurisdiction) to compete or otherwise apply for or receive
assistance under any other housing assistance program adminis-
tered by the Secretary.
‘‘SEC. 405. PROGRAM REQUIREMENTS.
‘‘(a) APPLICABILITY OF CERTAIN PROVISIONS.—Notwithstanding
section 404(a)(1), the Secretary may not waive, with respect to
any participating jurisdiction, any of the following provisions:
‘‘(1) The first sentence of paragraph (1) of section 3(a)
(relating to eligibility of low-income families).
‘‘(2) Section 16 (relating to income eligibility and targeting
of assistance).
‘‘(3) Paragraph (2) of section 3(a) (relating to rental pay-
ments for public housing families).
H. R. 4194—160
‘‘(4) Paragraphs (2) and (3) of section 8(o) (to the extent
such paragraphs limit the amount of rent paid by families
assisted with tenant-based assistance).
‘‘(5) Section 18 (relating to demolition or disposition of
public housing).
‘‘(b) COMPLIANCE WITH ASSISTANCE PLAN.—A participating
jurisdiction shall provide assistance using amounts received pursu-
ant to this title in the manner set forth in the plan of the jurisdiction
approved by the Secretary under section 406(a)(2).
‘‘SEC. 406. APPLICATION.
‘‘(a) IN GENERAL.—The Secretary shall provide for jurisdictions
to submit applications for approval to participate in the demonstra-
tion program under this title. An application—
‘‘(1) shall be submitted only after the jurisdiction provides
for citizen participation through a public hearing and, if appro-
priate, other means;
‘‘(2) shall include a plan for the provision of housing assist-
ance with amounts received pursuant to this title that—
‘‘(A) is developed by the jurisdiction;
‘‘(B) takes into consideration comments from the public
hearing, any other public comments on the proposed pro-
gram, and comments from current and prospective resi-
dents who would be affected; and
‘‘(C) identifies each term or condition for which the
jurisdiction is requesting waiver under section 404 (a)(1);
‘‘(3) shall describe how the plan for use of amounts will
assist in meeting the purposes of, and be used in accordance
with, sections 401 and 402(a), respectively;
‘‘(4) shall propose standards for measuring performance
in using assistance provided pursuant to this title based on
the performance standards under subsection (b)(4);
‘‘(5) shall propose the length of the period for participation
of the jurisdiction is in the demonstration program under this
title;
‘‘(6) shall—
‘‘(A) in the case of the application of any jurisdiction
within whose boundaries are areas subject to any other
unit of general local government, include the signed consent
of the appropriate executive official of such unit to the
application; and
‘‘(B) in the case of the application of a consortia of
units of general local government (as provided under sec-
tion 409(1)(B)), include the signed consent of the appro-
priate executive officials of each unit included in the consor-
tia;
‘‘(7) shall include information sufficient, in the determina-
tion of the Secretary—
‘‘(A) to demonstrate that the jurisdiction has or will
have management and administrative capacity sufficient
to carry out the plan under paragraph (2), including a
demonstration that the applicant has a history of effectively
administering amounts provided under other programs of
the Department of Housing and Urban Development, such
as the community development block grant program, the
H. R. 4194—161
HOME investment partnerships program, and the pro-
grams for assistance for the homeless under the Stewart
B. McKinney Homeless Assistance Act;
‘‘(B) to demonstrate that carrying out the plan will
not result in excessive duplication of administrative efforts
and costs, particularly with respect to activities performed
by public housing agencies operating within the boundaries
of the jurisdiction;
‘‘(C) to describe the function and activities to be carried
out by such public housing agencies affected by the plan;
and
‘‘(D) to demonstrate that the amounts received by the
jurisdiction will be maintained separate from other funds
available to the jurisdiction and will be used only to carry
out the plan;
‘‘(8) shall include information describing how the jurisdic-
tion will make decisions regarding asset management of hous-
ing for low-income families under programs for covered housing
assistance or assisted with grant amounts under this title;
‘‘(9) shall—
‘‘(A) clearly identify any State or local laws that will
affect implementation of the plan under paragraph (2) and
any contractual rights and property interests that may
be affected by the plan;
‘‘(B) describe how the plan will be carried out with
respect to such laws, rights, and interests; and
‘‘(C) contain a legal memorandum sufficient to describe
how the plan will comply with such laws and how the
plan will be carried out without violating or impairing
such rights and interests; and
‘‘(10) shall identify procedures for how the jurisdiction shall
return to providing covered assistance for the jurisdiction under
the provisions of title I, in the case of determination under
subsection (b)(4)(B).
A plan required under paragraph (2) to be included in the applica-
tion may be contained in a memorandum of agreement or other
document executed by a jurisdiction and public housing agency,
if such document is submitted together with the application.
‘‘(b) REVIEW, APPROVAL, AND PERFORMANCE STANDARDS.—
‘‘(1) REVIEW.—The Secretary shall review each application
for participation in the demonstration program under this title
and shall determine and notify the jurisdiction submitting the
application, not later than 90 days after its submission, of
whether the application is approvable under this title. If the
Secretary determines that the application of a jurisdiction is
approvable under this title, the Secretary shall provide affected
public housing agencies an opportunity to review and to provide
written comments on the application for a period of not less
than 30 days after notification under the preceding sentence.
If the Secretary determines that an application is not approv-
able under this title, the Secretary shall notify the jurisdiction
submitting the application of the reasons for such determina-
tion. Upon making a determination of whether an application
is approvable or nonapprovable under this title, the Secretary
shall make such determination publicly available in writing
together with a written statement of the reasons for such
determination.
H. R. 4194—162
‘‘(2) APPROVAL.—The Secretary may approve jurisdictions
for participation in the demonstration program under this title,
but only from among applications that the Secretary has deter-
mined under paragraph are approvable under this title and
only in accordance with section 402(c). The Secretary shall
base the selection of jurisdictions to approve on the potential
success, as evidenced by the application, in—
‘‘(A) achieving the goals set forth in the performance
standards under paragraph (4)(A); and
‘‘(B) increasing housing choices for low-income families.
‘‘(3) AGREEMENT.—The Secretary shall offer to enter into
an agreement with each jurisdiction approved for participation
in the program under this title providing for assistance pursu-
ant to this title for a period in accordance with section 402(b)
and incorporating a requirement that the jurisdiction achieve
a particular level of performance in each of the areas for which
performance standards are established under paragraph (4)(A)
of this subsection. If the Secretary and the jurisdiction enter
into an agreement, the Secretary shall provide any covered
housing assistance for the jurisdiction in the manner authorized
under this title. The Secretary may not provide covered housing
assistance for a jurisdiction in the manner authorized under
this title unless the Secretary and jurisdiction enter into an
agreement under this paragraph.
‘‘(4) PERFORMANCE STANDARDS.—
‘‘(A) ESTABLISHMENT.—The Secretary and each partici-
pating jurisdiction may collectively establish standards for
evaluating the performance of the participating jurisdiction
in meeting the purposes under section 401 of this title,
which may include standards for—
‘‘(i) moving dependent low-income families to eco-
nomic self-sufficiency;
‘‘(ii) reducing the per-family cost of providing hous-
ing assistance;
‘‘(iii) expanding the stock of affordable housing
and housing choices for low-income families;
‘‘(iv) improving program management;
‘‘(v) increasing the number of homeownership
opportunities for low-income families;
‘‘(vi) reducing homelessness through providing
permanent housing resources;
‘‘(vii) reducing geographic concentration of assisted
families; and
‘‘(viii) any other performance goals that the Sec-
retary and the participating jurisdiction may establish.
‘‘(B) FAILURE TO COMPLY.—If, at any time during the
participation of a jurisdiction in the program under this
title, the Secretary determines that the jurisdiction is not
sufficiently meeting, or making progress toward meeting,
the levels of performance incorporated into the agreement
of the jurisdiction pursuant to subparagraph (A), the Sec-
retary shall terminate the participation of the jurisdiction
in the program under this title and require the implementa-
tion of the procedures included in the application of the
jurisdiction pursuant to subsection (a)(10).
‘‘(5) TROUBLED
AGENCIES.—The Secretary may establish
requirements for the approval of applications under this section
H. R. 4194—163
submitted by public housing agencies designated under section
6( j)(2) as troubled, which may include additional or different
criteria determined by the Secretary to be more appropriate
for such agencies.
‘‘(c) STATUS
OF PHAS.—This title may not be construed to
require any change in the legal status of any public housing agency
or in any legal relationship between a jurisdiction and a public
housing agency as a condition of participation in the program under
this title.
‘‘(d) PHA PLANS.—In carrying out this title, the Secretary may
provide for a streamlined public housing agency plan and planning
process under section 5A for participating jurisdictions.
‘‘SEC. 407. TRAINING.
‘‘The Secretary, in consultation with representatives of public
and assisted housing interests, may provide training and technical
assistance relating to providing assistance under this title and
may 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) MAINTENANCE OF RECORDS.—Each participating jurisdic-
tion shall maintain such records as the Secretary may require
to—
‘‘(1) document the amounts received by the jurisdiction
under this Act and the disposition of such amounts under
the demonstration program under this title;
‘‘(2) ensure compliance by the jurisdiction with this title;
and
‘‘(3) evaluate the performance of the jurisdiction under
the demonstration program under this title.
‘‘(b) REPORTS.—Each participating jurisdiction shall annually
submit to the Secretary a report in a form and at a time specified
by the Secretary, which shall include—
‘‘(1) documentation of the use of amounts made available
to the jurisdiction under this title;
‘‘(2) any information as the Secretary may request to assist
the Secretary in evaluating the demonstration program under
this title; and
‘‘(3) a description and analysis of the effect of assisted
activities in addressing the objectives of the demonstration
program under this title.
‘‘(c) ACCESS TO DOCUMENTS BY SECRETARY AND COMPTROLLER
GENERAL.—The Secretary and the Comptroller General of the
United States, or any duly authorized representative of the Sec-
retary or the Comptroller General, shall have access for the purpose
of audit and examination to any books, documents, papers, and
records maintained by a participating jurisdiction that relate to
the demonstration program under this title.
‘‘(d) PERFORMANCE REVIEW AND EVALUATION.—
‘‘(1) PERFORMANCE
REVIEW.—Based on the performance
standards established under section 406(b)(4), the Secretary
shall monitor the performance of participating jurisdictions in
providing assistance under this title.
‘‘(2) STATUS
REPORT.—Not later than 60 days after the
conclusion of the second year of the demonstration program
under this title, the Secretary shall submit to Congress an
H. R. 4194—164
interim report on the status of the demonstration program
and the progress each participating jurisdiction in achieving
the purposes of the demonstration program under section 401.
‘‘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 Cranston-Gonzalez National
Affordable Housing Act) that has boundaries, for purposes
of carrying out this title, that—
‘‘(i) wholly contain the area within which a public
housing agency is authorized to operate; and
‘‘(ii) do not contain any areas contained within
the boundaries of any other participating jurisdiction;
and
‘‘(B) a consortia of such units of general local govern-
ment, organized for purposes of this title.
‘‘(2) PARTICIPATING JURISDICTION.—The term ‘participating
jurisdiction’ means, with respect to a period for which such
an agreement is made, a jurisdiction that has entered into
an agreement under section 406(b)(3) to receive assistance
pursuant to this title for such fiscal year.
‘‘SEC. 410. TERMINATION AND EVALUATION.
‘‘(a) TERMINATION.—The demonstration program under this title
shall terminate not less than 2 and not more than 5 years after
the date on which the demonstration program is commenced.
‘‘(b) EVALUATION.—Not later than 6 months after the termi-
nation of the demonstration program under this title, the Secretary
shall submit to the Congress a final report, which shall include—
‘‘(1) an evaluation the effectiveness of the activities carried
out under the demonstration program; and
‘‘(2) any findings and recommendations of the Secretary
for any appropriate legislative action.
‘‘SEC. 411. APPLICABILITY.
‘‘This title shall take effect on the date of the enactment of
the Quality Housing and Work Responsibility Act of 1998.’’.
Subtitle E—Accountability and Oversight
of Public Housing Agencies
SEC. 563. STUDY OF ALTERNATIVE METHODS FOR EVALUATING PUB-
LIC HOUSING AGENCIES.
(a) IN GENERAL.—The Secretary of Housing and Urban Develop-
ment shall provide under subsection (e) for a study to be conducted
to determine the effectiveness of various alternative methods of
evaluating the performance of public housing agencies and other
providers of federally assisted housing.
(b) PURPOSES.—The purposes of the study under this section
shall be—
(1) to identify and examine various methods of evaluating
and improving the performance of public housing agencies in
H. R. 4194—165
administering public housing and tenant-based rental assist-
ance programs and of other providers of federally assisted hous-
ing, which are alternatives to oversight by the Department
of Housing and Urban Development; and
(2) to identify specific monitoring and oversight activities
currently conducted by the Department of Housing and Urban
Development and to evaluate whether such activities should
be eliminated, expanded, modified, or transferred to other enti-
ties (including governmental and private entities) to increase
accuracy and effectiveness and improve monitoring.
(c) EVALUATION OF VARIOUS PERFORMANCE EVALUATION SYS-
TEMS.—To carry out the purposes under subsection (b), the study
under this section shall identify, and analyze the advantages and
disadvantages of various methods of regulating and evaluating the
performance of public housing agencies and other providers of feder-
ally assisted housing, including the following methods:
(1) CURRENT SYSTEM.—The system pursuant to the United
States Housing Act of 1937, including the methods and require-
ments under such system for reporting, auditing, reviewing,
sanctioning, and monitoring of such agencies and housing
providers and the public housing management assessment pro-
gram pursuant to section 6( j) of the United States Housing
Act of 1937.
(2) ACCREDITATION
MODELS.—Various models that are
based upon accreditation of such agencies and housing provid-
ers, subject to the following requirements:
(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 pro-
grams for public housing and federally assisted housing.
(B) If any accreditation models are determined to be
applicable to the public and federally assisted housing pro-
grams, the study shall identify appropriate goals, objec-
tives, and procedures for an accreditation program for such
agencies and housing providers.
(C) The study shall evaluate the feasibility and merit
of establishing an independent accreditation and evaluation
entity to assist, supplement, or replace the role of the
Department of Housing and Urban Development in assess-
ing and monitoring the performance of such agencies and
housing providers.
(D) The study shall identify the necessary and appro-
priate roles and responsibilities of various entities that
would be involved in an accreditation program, including
the Department of Housing and Urban Development, the
Inspector General of the Department, an accreditation
entity, independent auditors and examiners, local entities,
and public housing agencies.
(E) The study shall estimate the costs involved in
developing and maintaining such an independent accredita-
tion program.
(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 relative to such goals or targets.