272
by the Secretary governing such notifications,
that—
(i) the development will be removed
from the inventory of the public housing
agency; and
(ii) the families displaced by such ac-
tion will receive choice-based housing as-
sistance;
(B) provide any necessary counseling for
families displaced by such action to facilitate re-
location; and
(C) provide any reasonable relocation ex-
penses for families displaced by such action;
and
(6) ensure that each family that is a resident
of the development is relocated to other safe, clean,
and healthy affordable housing, which is, to the
maximum extent practicable, housing of the family’s
choice, including choice-based assistance under title
XIII (provided that with respect to choice-based as-
sistance, the preceding requirement shall be fulfilled
only upon the relocation of such family into such
housing).
(c) STREAMLINED ASSESSMENT AND PLAN.—At the
discretion of the Secretary or at the request of a public
273
housing agency, the Secretary may waive any or all of the
requirements of subsection (b) or otherwise require a
streamlined assessment with respect to any public housing
development or class of public housing developments.
(d) IMPLEMENTATION OF CONVERSION PLAN.—
(1) IN
GENERAL.—A public housing agency
may implement a conversion plan only if the conver-
sion assessment under this section demonstrates
that the conversion—
(A) will not be more expensive than con-
tinuing to operate the public housing develop-
ment (or portion thereof) as public housing;
and
(B) will principally benefit the residents of
the public housing development (or portion
thereof) to be converted, the public housing
agency, and the community.
(2) DISAPPROVAL.—The Secretary shall dis-
approve a conversion plan only if the plan is plainly
inconsistent with the conversion assessment under
subsection (b) or there is reliable information and
data available to the Secretary that contradicts that
conversion assessment.
(e) OTHER REQUIREMENTS.—To the extent approved
by the Secretary, the funds used by the public housing
274
agency to provide choice-based rental housing assistance
under title XIII shall be added to the housing assistance
payment contract administered by the public housing
agency or any entity administering the contract on behalf
of the public housing agency.
(f) SAVINGS PROVISION.—This section does not af-
fect any contract or other agreement entered into under
section 22 of the United States Housing Act of 1937 (as
such section existed before the effective date of the repeal
under section 1601(b) of this Act).
Subtitle F—Mixed-Finance Public
Housing
SEC. 1271. AUTHORITY.
Notwithstanding sections 1203 and 1262, the Sec-
retary may, upon such terms and conditions as the Sec-
retary may prescribe, authorize a public housing agency
to provide for the use of grant amounts allocated and pro-
vided from the capital fund or from a grant under section
1262, to produce mixed- finance housing developments, or
replace or revitalize existing public housing dwelling units
with mixed-finance housing developments, but only if the
agency submits to the Secretary a plan for such housing
that is approved pursuant to section 1273 by the Sec-
retary.
275
SEC. 1272. MIXED-FINANCE HOUSING DEVELOPMENTS.
(a) IN GENERAL.—For purposes of this subtitle, the
term ‘‘mixed-finance housing’’ means low-income housing
or mixed-income housing (as described in section
1221(c)(2)) for which the financing for production or revi-
talization is provided, in part, from entities other than the
public housing agency.
(b) PRODUCTION.—A mixed-finance housing develop-
ment shall be produced or revitalized, and owned—
(1) by a public housing agency or by an entity
affiliated with a public housing agency;
(2) by a partnership, a limited liability com-
pany, or other entity in which the public housing
agency (or an entity affiliated with a public housing
agency) is a general partner, is a managing member,
or otherwise participates in the activities of the en-
tity;
(3) by any entity that grants to the public
housing agency the option to purchase the public
housing project during the 20-year period beginning
on the date of initial occupancy of the public hous-
ing project in accordance with section 42(l)(7) of the
Internal Revenue Code of 1986; or
(4) in accordance with such other terms and
conditions as the Secretary may prescribe by regula-
tion.
276
This subsection may not be construed to require produc-
tion or revitalization, and ownership, by the same entity.
SEC. 1273. MIXED-FINANCE HOUSING PLAN.
The Secretary may approve a plan for production or
revitalization of mixed-finance housing under this subtitle
only if the Secretary determines that—
(1) the public housing agency has the ability, or
has provided for an entity under section 1272(b)
that has the ability, to use the amounts provided for
use under the plan for such housing, effectively, ei-
ther directly or through contract management;
(2) the plan provides permanent financing com-
mitments from a sufficient number of sources other
than the public housing agency, which may include
banks and other conventional lenders, States, units
of general local government, State housing finance
agencies, secondary market entities, and other finan-
cial institutions;
(3) the plan provides for use of amounts pro-
vided under section 1271 by the public housing
agency for financing the mixed-income housing in
the form of grants, loans, advances, or other debt or
equity investments, including collateral or credit en-
hancement of bonds issued by the agency or any
277
State or local governmental agency for production or
revitalization of the development; and
(4) the plan complies with any other criteria
that the Secretary may establish.
SEC. 1274. RENT LEVELS FOR HOUSING FINANCED WITH
LOW-INCOME HOUSING TAX CREDIT.
With respect to any dwelling unit in a mixed-finance
housing development that is a low-income dwelling unit
for which amounts from a block grant under this title are
used and that is assisted pursuant to the low-income hous-
ing tax credit under section 42 of the Internal Revenue
Code of 1986, the rents charged to the residents of the
unit shall be determined in accordance with this title, but
shall not in any case exceed the amounts allowable under
such section 42.
SEC. 1275. CARRY-OVER OF ASSISTANCE FOR REPLACED
HOUSING.
In the case of a mixed-finance housing development
that is replacement housing for public housing demolished
or disposed of, or is the result of the revitalization of exist-
ing public housing, the share of assistance received from
the capital fund and the operating fund by the public
housing agency that owned or operated the housing demol-
ished, disposed of, or revitalized shall not be reduced be-
cause of such demolition, disposition, or revitalization
279
Subtitle G—General Provisions
SEC. 1281. PAYMENT OF NON-FEDERAL SHARE.
Rental or use-value of buildings or facilities paid for,
in whole or in part, from production, modernization, or
operation costs financed under this title may be used as
the non-Federal share required in connection with activi-
ties undertaken under Federal grant-in-aid programs
which provide social, educational, employment, and other
services to the residents in a project assisted under this
title.
SEC. 1282. AUTHORIZATION OF APPROPRIATIONS FOR
BLOCK GRANTS.
There are authorized to be appropriated for grants
under this title, the following amounts:
(1) CAPITAL FUND.—For the allocations from
the capital fund for grants, $2,500,000,000 for each
of fiscal years 1998, 1999, 2000, 2001, and 2002.
(2) OPERATING
FUND.—For the allocations
from the operating fund for grants, $2,900,000,000
for each of fiscal years 1998, 1999, 2000, 2001, and
2002.
SEC. 1283. FUNDING FOR OPERATION SAFE HOME.
Of any amounts made available for fiscal years 1998
and 1999 for carrying out the Community Partnerships
Against Crime Act of 1997 (as so designated pursuant to
280
section 1624(a) of this Act), not more than $20,000,000
shall be available in each such fiscal year, for use under
the Operation Safe Home program administered by the
Office of the Inspector General of the Department of
Housing and Urban Development, for law enforcement ef-
forts to combat violent crime on or near the premises of
public and federally assisted housing.
SEC. 1284. FUNDING FOR RELOCATION OF VICTIMS OF DO-
MESTIC VIOLENCE.
Of any amounts made available for fiscal years 1998,
1999, 2000, 2001, and 2002 for choice-based housing as-
sistance under title XIII of this Act, not more than
$700,000 shall be available in each such fiscal year for
relocating residents of public housing (including providing
assistance for costs of relocation and housing assistance
under title XIII of this Act) who are residing in public
housing, who have been subject to domestic violence, and
for whom provision of assistance is likely to reduce or
eliminate the threat of subsequent violence to the members
of the family. The Secretary shall establish procedures for
eligibility and administration of assistance under this sec-
tion.
281
TITLE 
XIII—CHOICE-BASED
RENTAL 
HOUSING 
AND
HOMEOWNERSHIP 
ASSIST-
ANCE FOR LOW-INCOME FAM-
ILIES
Subtitle A—Allocation
SEC. 1301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE
AMOUNTS.
To the extent that amounts to carry out this title are
made available, the Secretary may enter into contracts
with public housing agencies for each fiscal year to provide
housing assistance under this title.
SEC. 1302. CONTRACTS WITH PHA’S.
(a) CONDITION OF ASSISTANCE.—The Secretary may
provide amounts under this title to a public housing agen-
cy for a fiscal year only if the Secretary has entered into
a contract under this section with the public housing agen-
cy, under which the Secretary shall provide such agency
with amounts (in the amount of the allocation for the
agency determined pursuant to section 1304) for housing
assistance under this title for low-income families.
(b) USE
FOR HOUSING ASSISTANCE.—A contract
under this section shall require a public housing agency
to use amounts provided under this title to provide hous-
ing assistance in any manner authorized under this title.
282
(c) ANNUAL OBLIGATION OF AUTHORITY.—A con-
tract under this title shall provide amounts for housing
assistance for 1 fiscal year covered by the contract.
(d) ENFORCEMENT OF HOUSING QUALITY REQUIRE-
MENTS.—Each contract under this section shall require
the public housing agency administering assistance pro-
vided under the contract—
(1) to ensure compliance, under each housing
assistance payments contract entered into pursuant
to the contract under this section, with the provi-
sions of the housing assistance payments contract
included pursuant to section 1351(c)(4); and
(2) to establish procedures for assisted families
to notify the agency of any noncompliance with such
provisions.
SEC. 
1303. 
ELIGIBILITY 
OF 
PHA’S 
FOR 
ASSISTANCE
AMOUNTS.
The Secretary may provide amounts available for
housing assistance under this title pursuant to the formula
established under section 1304(a) to a public housing
agency only if—
(1) the agency has submitted a local housing
management plan to the Secretary for such fiscal
year and applied to the Secretary for such assist-
ance;
283
(2) the plan has been determined to comply
with the requirements under section 1106 and the
Secretary has not notified the agency that the plan
fails to comply with such requirements;
(3) no member of the board of directors or
other governing body of the agency, or the executive
director, has been convicted of a felony; and
(4) the agency has not been disqualified for as-
sistance pursuant to title XV.
SEC. 1304. ALLOCATION OF AMOUNTS.
(a) FORMULA ALLOCATION.—
(1) IN GENERAL.—When amounts for assist-
ance under this title are first made available for res-
ervation, after reserving amounts in accordance with
subsections (b)(3) and (c), the Secretary shall allo-
cate such amounts, only among public housing agen-
cies meeting the requirements under this title to re-
ceive such assistance, on the basis of a formula that
is established in accordance with paragraph (2) and
based upon appropriate criteria to reflect the needs
of different States, areas, and communities, using
the most recent data available from the Bureau of
the Census of the Department of Commerce and the
comprehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National Af-
284
fordable Housing Act (or any consolidated plan in-
corporating such strategy) for the applicable juris-
diction. The Secretary may establish a minimum al-
location amount, in which case only the public hous-
ing agencies that, pursuant to the formula, are pro-
vided an amount equal to or greater than the mini-
mum allocation amount, shall receive an allocation.
(2) REGULATIONS.—The formula under this
subsection shall be established by regulation issued
by the Secretary. Notwithstanding sections 563(a)
and 565(a) of title 5, United States Code, any pro-
posed regulation containing such formula shall be
issued pursuant to a negotiated rulemaking proce-
dure under subchapter III of chapter 5 of such title
and the Secretary shall establish a negotiated rule-
making committee for development of any such pro-
posed regulations.
(b) ALLOCATION CONSIDERATIONS.—
(1) LIMITATION
ON
REALLOCATION
FOR
AN-
OTHER STATE.—Any amounts allocated for a State
or areas or communities within a State that are not
likely to be used within the fiscal year for which the
amounts are provided shall not be reallocated for use
in another State, unless the Secretary determines
that other areas or communities within the same
285
State (that are eligible for amounts under this title)
cannot use the amounts within the same fiscal year.
(2) EFFECT OF RECEIPT OF TENANT-BASED AS-
SISTANCE FOR DISABLED FAMILIES.—The Secretary
may not consider the receipt by a public housing
agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing
Act, or the amount received, in approving amounts
under this title for the agency or in determining the
amount of such assistance to be provided to the
agency.
(3) EXEMPTION
FROM
FORMULA
ALLOCA-
TION.—The formula allocation requirements of sub-
section (a) shall not apply to any assistance under
this title that is approved in appropriation Acts for
uses that the Secretary determines are incapable of
geographic allocation, including amendments of ex-
isting housing assistance payments contracts, re-
newal of such contracts, assistance to families that
would otherwise lose assistance due to the decision
of the project owner to prepay the project mortgage
or not to renew the housing assistance payments
contract, assistance to prevent displacement from
public or assisted housing or to provide replacement
housing in connection with the demolition or disposi-
286
tion of public housing, assistance for relocation from
public housing, assistance in connection with protec-
tion of crime witnesses, assistance for conversion
from leased housing contracts under section 23 of
the United States Housing Act of 1937 (as in effect
before the enactment of the Housing and Commu-
nity Development Act of 1974), and assistance in
support of the property disposition and portfolio
management functions of the Secretary.
(c) RECAPTURE OF AMOUNTS.—
(1) AUTHORITY.—In each fiscal year, from any
budget authority made available for assistance under
this title or section 8 of the United States Housing
Act of 1937 (as in effect before the effective date of
the repeal under section 1601(b) of this Act) that is
obligated to a public housing agency but remains un-
obligated by the agency upon the expiration of the
8-month period beginning upon the initial availabil-
ity of such amounts for obligation by the agency, the
Secretary may deobligate an amount, as determined
by the Secretary, not exceeding 50 percent of such
unobligated amount.
(2) USE.—The Secretary may reallocate and
transfer any amounts deobligated under paragraph
(1) only to public housing agencies in areas that the
287
Secretary determines have received less funding than
other areas, based on the relative needs of all areas.
SEC. 1305. ADMINISTRATIVE FEES.
(a) FEE
FOR ONGOING COSTS
OF ADMINISTRA-
TION.—
(1) IN GENERAL.—The Secretary shall establish
fees for the costs of administering the choice-based
housing assistance program under this title.
(2) FISCAL YEAR 1998.—
(A) CALCULATION.—For fiscal year 1998,
the fee for each month for which a dwelling
unit is covered by a contract for assistance
under this title shall be—
(i) in the case of a public housing
agency that, on an annual basis, is admin-
istering a program for not more than 600
dwelling units, 7.65 percent of the base
amount; and
(ii) in the case of an agency that, on
an annual basis, is administering a pro-
gram for more than 600 dwelling units—
(I) for the first 600 units, 7.65
percent of the base amount; and
288
(II) for any additional dwelling
units under the program, 7.0 percent
of the base amount.
(B) BASE AMOUNT.—For purposes of this
paragraph, the base amount shall be the higher
of—
(i) the fair market rental established
under section 8(c) of the United States
Housing Act of 1937 (as in effect imme-
diately before the effective date of the re-
peal under section 1601(b) of this Act) for
fiscal year 1993 for a 2-bedroom existing
rental dwelling unit in the market area of
the agency, and
(ii) the amount that is the lesser of
(I) such fair market rental for fiscal year
1994 or (II) 103.5 percent of the amount
determined under clause (i),
adjusted based on changes in wage data or
other objectively measurable data that reflect
the costs of administering the program, as de-
termined by the Secretary. The Secretary may
require that the base amount be not less than
a minimum amount and not more than a maxi-
mum amount.
289
(3) SUBSEQUENT FISCAL YEARS.—For subse-
quent fiscal years, the Secretary shall publish a no-
tice in the Federal Register, for each geographic
area, establishing the amount of the fee that would
apply for public housing agencies administering the
program, based on changes in wage data or other
objectively measurable data that reflect the costs of
administering the program, as determined by the
Secretary.
(4) INCREASE.—The Secretary may increase
the fee if necessary to reflect the higher costs of ad-
ministering small programs and programs operating
over large geographic areas.
(b) FEE FOR PRELIMINARY EXPENSES.—The Sec-
retary shall also establish reasonable fees (as determined
by the Secretary) for—
(1) the costs of preliminary expenses, in the
amount of $500, for a public housing agency, but
only in the first year that the agency administers a
choice-based housing assistance program under this
title, and only if, immediately before the effective
date of this division, the agency was not administer-
ing a tenant-based rental assistance program under
the United States Housing Act of 1937 (as in effect
290
immediately before such effective date), in connec-
tion with its initial increment of assistance received;
(2) the costs incurred in assisting families who
experience difficulty (as determined by the Sec-
retary) in obtaining appropriate housing under the
programs; and
(3) extraordinary costs approved by the Sec-
retary.
(c) TRANSFER OF FEES IN CASES OF CONCURRENT
GEOGRAPHICAL JURISDICTION.—In each fiscal year, if
any public housing agency provides tenant-based rental as-
sistance under section 8 of the United States Housing Act
of 1937 or housing assistance under this title on behalf
of a family who uses such assistance for a dwelling unit
that is located within the jurisdiction of such agency but
is also within the jurisdiction of another public housing
agency, the Secretary shall take such steps as may be nec-
essary to ensure that the public housing agency that pro-
vides the services for a family receives all or part of the
administrative fee under this section (as appropriate).
SEC. 1306. AUTHORIZATIONS OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated for providing public housing agencies with housing
assistance under this title, such sums as may be necessary
for each of fiscal years 1998, 1999, 2000, 2001, and 2002
291
to provide amounts for incremental assistance under this
title, for renewal of expiring contracts under section 1302
of this Act and renewal under this title of expiring con-
tracts for tenant-based rental assistance under section 8
of the United States Housing Act of 1937 (as in effect
before the effective date of the repeal under section
1601(b) of this Act), and for replacement needs for public
housing under title XII.
(b) ASSISTANCE FOR DISABLED FAMILIES.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated, for choice-
based housing assistance under this title to be used
in accordance with paragraph (2), $50,000,000 for
fiscal year 1998, and such sums as may be nec-
essary for each subsequent fiscal year.
(2) USE.—The Secretary shall provide amounts
made available under paragraph (1) to public hous-
ing agencies only for use to provide housing assist-
ance under this title for nonelderly disabled families
(including such families relocating pursuant to des-
ignation of a public housing development under sec-
tion 1227 or the establishment of occupancy restric-
tions in accordance with section 658 of the Housing
and Community Development Act of 1992 and other
292
nonelderly disabled families who have applied to the
agency for housing assistance under this title).
(3) ALLOCATION OF AMOUNTS.—The Secretary
shall allocate and provide amounts made available
under paragraph (1) to public housing agencies as
the Secretary determines appropriate based on the
relative levels of need among the authorities for as-
sistance for families described in paragraph (1).
(c) ASSISTANCE FOR WITNESS RELOCATION.—Of the
amounts made available for choice-based housing assist-
ance under this title for each fiscal year, the Secretary,
in consultation with the Inspector General, shall make
available such sums as may be necessary for such housing
assistance for the relocation of witnesses in connection
with efforts to combat crime in public and assisted hous-
ing pursuant to requests from law enforcement and prose-
cutive agencies.
SEC. 1307. CONVERSION OF SECTION 8 ASSISTANCE.
(a) IN GENERAL.—Any amounts made available to
a public housing agency under a contract for annual con-
tributions for assistance under section 8 of the United
States Housing Act of 1937 (as in effect before the effec-
tive date of the repeal under section 1601(b) of this Act)
that have not been obligated for such assistance by such
agency before such effective date shall be used to provide
293
assistance under this title, except to the extent the Sec-
retary determines such use is inconsistent with existing
commitments.
(b) EXCEPTION.—Subsection (a) shall not apply to
any amounts made available under a contract for housing
constructed or substantially rehabilitated pursuant to sec-
tion 8(b)(2) of the United States Housing Act of 1937,
as in effect before October 1, 1983.
SEC. 1308. RECAPTURE AND REUSE OF ANNUAL CONTRACT
PROJECT RESERVES UNDER CHOICE-BASED
HOUSING ASSISTANCE AND SECTION 8 TEN-
ANT-BASED ASSISTANCE PROGRAMS.
To the extent that the Secretary determines that the
amount in the reserve account for annual contributions
contracts (for housing assistance under this title or ten-
ant-based assistance under section 8 of the United States
Housing Act of 1937) that is under contract with a public
housing agency for such assistance is in excess of the
amounts needed by the agency, the Secretary shall recap-
ture such excess amount. The Secretary may hold recap-
tured amounts in reserve until needed to enter into,
amend, or renew contracts under this title or to amend
or renew contracts under section 8 of such Act for tenant-
based assistance with any agency.
294
Subtitle B—Choice-Based Housing
Assistance for Eligible Families
SEC. 1321. ELIGIBLE FAMILIES AND PREFERENCES FOR AS-
SISTANCE.
(a) LOW-INCOME REQUIREMENT.—Housing assist-
ance under this title may be provided only on behalf of
a family that—
(1) at the time that such assistance is initially
provided on behalf of the family, is determined by
the public housing agency to be a low-income family;
or
(2) qualifies to receive such assistance under
any other provision of Federal law.
(b) INCOME TARGETING.—Of the families initially as-
sisted under this title by a public housing agency in any
year, not less than 40 percent shall be families whose in-
comes do not exceed 30 percent of the area median in-
come, as determined by the Secretary with adjustments
for smaller and larger families. The Secretary may estab-
lish income ceiling higher or lower than 30 percent of the
area median income on the basis of the Secretary’s find-
ings that such variations are necessary because of unusu-
ally high or low family incomes.
(c) REVIEWS OF FAMILY INCOMES.—
295
(1) IN GENERAL.—Reviews of family incomes
for purposes of this title shall be subject to the pro-
visions of section 904 of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 and
shall be conducted upon the initial provision of hous-
ing assistance for the family and thereafter not less
than annually.
(2) PROCEDURES.—Each public housing agency
administering housing assistance under this title
shall establish procedures that are appropriate and
necessary to ensure that income data provided to the
agency and owners by families applying for or re-
ceiving housing assistance from the agency is com-
plete and accurate.
(d) PREFERENCES FOR ASSISTANCE.—
(1) AUTHORITY
TO
ESTABLISH.—Any public
housing agency that receives amounts under this
title may establish a system for making housing as-
sistance available on behalf of eligible families that
provides preference for such assistance to eligible
families having certain characteristics.
(2) CONTENT.—Each system of preferences es-
tablished pursuant to this subsection shall be based
upon local housing needs and priorities, as deter-
mined by the public housing agency using generally
296
accepted data sources, including any information ob-
tained pursuant to an opportunity for public com-
ment as provided under section 1106(e) and under
the requirements applicable to the comprehensive
housing affordability strategy for the relevant juris-
diction.
(3) SENSE OF THE CONGRESS.—It is the sense
of the Congress that, to the greatest extent prac-
ticable, public housing agencies involved in the selec-
tion of tenants under the provisions of this title
should adopt preferences for individuals who are vic-
tims of domestic violence.
(e) PORTABILITY OF HOUSING ASSISTANCE.—
(1) NATIONAL PORTABILITY.—An eligible fam-
ily that is selected to receive or is receiving assist-
ance under this title may rent any eligible dwelling
unit in any area where a program is being adminis-
tered under this title. Notwithstanding the preceding
sentence, a public housing agency may require that
any family not living within the jurisdiction of the
public housing agency at the time the family applies
for assistance from the agency shall, during the 12-
month period beginning on the date of initial receipt
of housing assistance made available on behalf of the
family from such agency, lease and occupy an eligi-
297
ble dwelling unit located within the jurisdiction
served by the agency. The agency for the jurisdiction
into which the family moves shall have the respon-
sibility for administering assistance for the family.
(2) SOURCE OF FUNDING FOR A FAMILY THAT
MOVES.—For a family that has moved into the juris-
diction of a public housing agency and that, at the
time of the move, has been selected to receive, or is
receiving, assistance provided by another agency, the
agency for the jurisdiction into which the family has
moved may, in its discretion, cover the cost of assist-
ing the family under its contract with the Secretary
or through reimbursement from the other agency
under that agency’s contract.
(3) AUTHORITY TO DENY ASSISTANCE TO CER-
TAIN FAMILIES WHO MOVE.—A family may not re-
ceive housing assistance as provided under this sub-
section if the family has moved from a dwelling unit
in violation of the lease for the dwelling unit.
(4) FUNDING ALLOCATIONS.—In providing as-
sistance amounts under this title for public housing
agencies for any fiscal year, the Secretary may give
consideration to any reduction or increase in the
number of resident families under the program of an
298
agency in the preceding fiscal year as a result of this
subsection.
(f) CONFIDENTIALITY FOR VICTIMS OF DOMESTIC
VIOLENCE.—A public housing agency shall be subject to
the restrictions regarding release of information relating
to the identity and new residence of any family receiving
housing assistance who was a victim of domestic violence
that are applicable to shelters pursuant to the Family Vio-
lence Prevention and Services Act. The agency shall work
with the United States Postal Service to establish proce-
dures consistent with the confidentiality provisions in the
Violence Against Women Act of 1994.
SEC. 1322. RESIDENT CONTRIBUTION.
(a) AMOUNT.—
(1) MONTHLY
RENT
CONTRIBUTION.—An as-
sisted family shall contribute on a monthly basis for
the rental of an assisted dwelling unit an amount
that the public housing agency determines is appro-
priate with respect to the family and the unit, but
which—
(A) shall not be less than the minimum
monthly rental contribution determined under
subsection (b); and
(B) shall not exceed the greatest of—
299
(i) 30 percent of the monthly adjusted
income of the family;
(ii) 10 percent of the monthly income
of the family; and
(iii) if the family is receiving pay-
ments for welfare assistance from a public
agency and a part of such payments, ad-
justed in accordance with the actual hous-
ing costs of the family, is specifically des-
ignated by such agency to meet the hous-
ing costs of the family, the portion of such
payments that is so designated.
(2) EXCESS RENTAL AMOUNT.—In any case in
which the monthly rent charged for a dwelling unit
pursuant to the housing assistance payments con-
tract exceeds the applicable payment standard (es-
tablished under section 1353) for the dwelling unit,
the assisted family residing in the unit shall contrib-
ute (in addition to the amount of the monthly rent
contribution otherwise determined under paragraph
(1) for such family) such entire excess rental
amount.
(b) MINIMUM MONTHLY RENTAL CONTRIBUTION.—
(1) IN GENERAL.—The public housing agency
shall determine the amount of the minimum monthly
300
rental contribution of an assisted family (which rent
shall include any amount allowed for utilities),
which—
(A) shall be based upon factors including
the adjusted income of the family and any other
factors that the agency considers appropriate;
(B) shall be not less than $25, nor more
than $50; and
(C) may be increased annually by the
agency, except that no such annual increase
may exceed 10 percent of the amount of the
minimum monthly contribution in effect for the
preceding year.
(2) HARDSHIP PROVISIONS.—
(A) IN GENERAL.—Notwithstanding para-
graph (1), a public housing agency shall grant
an exemption in whole or in part from payment
of the minimum monthly rental contribution es-
tablished under this paragraph to any assisted
family unable to pay such amount because of fi-
nancial hardship, which shall include situations
in which (i) the family has lost eligibility for or
is awaiting an eligibility determination for a
Federal, State, or local assistance program, in-
cluding a family that includes a member who is
301
an alien lawfully admitted for permanent resi-
dence under the Immigration and Nationality
Act who would be entitled to public benefits but
for title IV of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996;
(ii) the family would be evicted as a result of
imposition of the minimum rent; (iii) the in-
come of the family has decreased because of
changed circumstance, including loss of employ-
ment; and (iv) a death in the family has oc-
curred; and other situations as may be deter-
mined by the agency.
(B) WAITING PERIOD.—If an assisted fam-
ily requests a hardship exemption under this
paragraph and the public housing agency rea-
sonably determines the hardship to be of a tem-
porary nature, an exemption shall not be grant-
ed during the 90-day period beginning upon the
making of a request for the exemption. An as-
sisted family may not be evicted during such
90-day period for nonpayment of rent. In such
a case, if the assisted family thereafter dem-
onstrates that the financial hardship is of a
long-term basis, the agency shall retroactively
exempt the family from the applicability of the
302
minimum rent requirement for such 90-day pe-
riod.
(c) TREATMENT
OF CHANGES
IN RENTAL CON-
TRIBUTION.—
(1) NOTIFICATION
OF
CHANGES.—A public
housing agency shall promptly notify the owner of
an assisted dwelling unit of any change in the resi-
dent contribution by the assisted family residing in
the unit that takes effect immediately or at a later
date.
(2) COLLECTION OF RETROACTIVE CHANGES.—
In the case of any change in the rental contribution
of an assisted family that affects rental payments
previously made, the public housing agency shall col-
lect any additional amounts required to be paid by
the family under such change directly from the fam-
ily and shall refund any excess rental contribution
paid by the family directly to the family.
(d) 
PHASE-IN
OF
RENT
CONTRIBUTION
IN-
CREASES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), for any family that is receiving tenant-
based rental assistance under section 8 of the
United States Housing Act of 1937 upon the initial
applicability of the provisions of this title to such
303
family, if the monthly contribution for rental of an
assisted dwelling unit to be paid by the family upon
such initial applicability is greater than the amount
paid by the family under the provisions of the
United States Housing Act of 1937 immediately be-
fore such applicability, any such resulting increase in
rent contribution shall be—
(A) phased in equally over a period of not
less than 3 years, if such increase is 30 percent
or more of such contribution before initial ap-
plicability; and
(B) limited to not more than 10 percent
per year if such increase is more than 10 per-
cent but less than 30 percent of such contribu-
tion before initial applicability.
(2) EXCEPTION.—The minimum rent contribu-
tion requirement under subsection (b)(1) shall apply
to each family described in paragraph (1) of this
subsection, notwithstanding such paragraph.
SEC. 1323. RENTAL INDICATORS.
(a) IN GENERAL.—The Secretary shall establish and
issue rental indicators under this section periodically, but
not less than annually, for existing rental dwelling units
that are eligible dwelling units. The Secretary shall estab-
lish and issue the rental indicators by housing market area
304
(as the Secretary shall establish) for various sizes and
types of dwelling units.
(b) AMOUNT.—For a market area, the rental indica-
tor established under subsection (a) for a dwelling unit
of a particular size and type in the market area shall be
a dollar amount that reflects the rental amount for a
standard quality rental unit of such size and type in the
market area that is an eligible dwelling unit.
(c) EFFECTIVE DATE.—The Secretary shall cause
the proposed rental indicators established under sub-
section (a) for each market area to be published in the
Federal Register with reasonable time for public comment,
and such rental indicators shall become effective upon the
date of publication in final form in the Federal Register.
(d) ANNUAL ADJUSTMENT.—Each rental indicator in
effect under this section shall be adjusted to be effective
on October 1 of each year to reflect changes, based on
the most recent available data trended so that the indica-
tors will be current for the year to which they apply, in
rents for existing rental dwelling units of various sizes and
types in the market area suitable for occupancy by families
assisted under this title.
305
SEC. 1324. LEASE TERMS.
Rental assistance may be provided for an eligible
dwelling unit only if the assisted family and the owner of
the dwelling unit enter into a lease for the unit that—
(1) provides for a single lease term of 12
months and continued tenancy after such term
under a periodic tenancy on a month-to-month basis;
(2) contains terms and conditions specifying
that termination of tenancy during the term of a
lease shall be subject to the provisions set forth in
sections 1642 and 1643; and
(3) is set forth in the standard form, which is
used in the local housing market area by the owner
and applies generally to any other tenants in the
property who are not assisted families, together with
any addendum necessary to include the many terms
required under this section.
A lease may include any addenda appropriate to set forth
the provisions under this title.
SEC. 1325. TERMINATION OF TENANCY.
Each housing assistance payments contract shall pro-
vide that the owner shall conduct the termination of ten-
ancy of any tenant of an assisted dwelling unit under the
contract in accordance with applicable State or local laws,
including providing any notice of termination required
under such laws.
306
SEC. 1326. ELIGIBLE OWNERS.
(a) OWNERSHIP ENTITY.—Rental assistance under
this title may be provided for any eligible dwelling unit
for which the owner is any public agency, private person
or entity (including a cooperative), nonprofit organization,
agency of the Federal Government, or public housing
agency.
(b) INELIGIBLE OWNERS.—
(1) IN GENERAL.—Notwithstanding subsection
(a), a public housing agency—
(A) may not enter into a housing assist-
ance payments contract (or renew an existing
contract) covering a dwelling unit that is owned
by an owner who is debarred, suspended, or
subject to limited denial of participation under
part 24 of title 24, Code of Federal Regula-
tions; and
(B) may prohibit, or authorize the termi-
nation or suspension of, payment of housing as-
sistance under a housing assistance payments
contract in effect at the time such debarment,
suspension, or limited denial of participation
takes effect.
If the public housing agency takes action under sub-
paragraph (B), the agency shall take such actions as
may be necessary to protect assisted families who
307
are affected by the action, which may include the
provision of additional assistance under this title to
such families.
(2) PROHIBITION OF SALE OR RENTAL TO RE-
LATED
PARTIES.—The Secretary shall establish
guidelines to prevent housing assistance payments
for a dwelling unit that is owned by any spouse,
child, or other party who allows an owner described
in paragraph (1) to maintain control of the unit.
SEC. 1327. SELECTION OF DWELLING UNITS.
(a) FAMILY CHOICE.—The determination of the
dwelling unit in which an assisted family resides and for
which housing assistance is provided under this title shall
be made solely by the assisted family, subject to the provi-
sions of this title and any applicable law.
(b) DEED RESTRICTIONS.—Housing assistance may
not be used in any manner that abrogates any local deed
restriction that applies to any housing consisting of 1 to
4 dwelling units. Nothing in this section may be construed
to affect the provisions or applicability of the Fair Hous-
ing Act.
SEC. 1328. ELIGIBLE DWELLING UNITS.
(a) IN GENERAL.—A dwelling unit shall be an eligible
dwelling unit for purposes of this title only if the public
308
housing agency to provide housing assistance for the
dwelling unit determines that the dwelling unit—
(1) is an existing dwelling unit that is not lo-
cated within a nursing home or the grounds of any
penal, reformatory, medical, mental, or similar pub-
lic or private institution; and
(2) complies—
(A) in the case of a dwelling unit located
in a jurisdiction which has in effect laws, regu-
lations, standards, or codes regarding habit-
ability of residential dwellings, with such appli-
cable laws, regulations, standards, or codes; or
(B) in the case of a dwelling unit located
in a jurisdiction which does not have in effect
laws, regulations, standards, or codes described
in subparagraph (A), with the housing quality
standards established under subsection (c).
Each public housing agency providing housing assistance
shall identify, in the local housing management plan for
the agency, whether the agency is utilizing the standard
under subparagraph (A) or (B) of paragraph (2).
(b) DETERMINATIONS.—
(1) IN
GENERAL.—A public housing agency
shall make the determinations required under sub-
section (a) pursuant to an inspection of the dwelling
309
unit conducted before any assistance payment is
made for the unit.
(2) EXPEDITIOUS INSPECTION.—Inspections of
dwelling units under this subsection shall be made
before the expiration of the 15-day period beginning
upon a request by the resident or landlord to the
public housing agency. The performance of the agen-
cy in meeting the 15-day inspection deadline shall be
taken into account in assessing the performance of
the agency.
(c) FEDERAL HOUSING QUALITY STANDARDS.—The
Secretary shall establish housing quality standards under
this subsection that ensure that assisted dwelling units are
safe, clean, and healthy. Such standards shall include re-
quirements relating to habitability, including maintenance,
health and sanitation factors, condition, and construction
of dwellings, and shall, to the greatest extent practicable,
be consistent with the standards established under section
1232(b). The Secretary shall differentiate between major
and minor violations of such standards.
(d) ANNUAL INSPECTIONS.—Each public housing
agency providing housing assistance shall make an annual
inspection of each assisted dwelling unit during the term
of the housing assistance payments contracts for the unit
to determine whether the unit is maintained in accordance
310
with the requirements under subsection (a)(2). The agency
shall retain the records of the inspection for a reasonable
time and shall make the records available upon request
to the Secretary, the Inspector General for the Depart-
ment of Housing and Urban Development, and any audi-
tor conducting an audit under section 1541.
(e) INSPECTION GUIDELINES.—The Secretary shall
establish procedural guidelines and performance standards
to facilitate inspections of dwelling units and conform such
inspections with practices utilized in the private housing
market. Such guidelines and standards shall take into con-
sideration variations in local laws and practices of public
housing agencies and shall provide flexibility to authorities
appropriate to facilitate efficient provision of assistance
under this title.
(f) RULE OF CONSTRUCTION.—This section may not
be construed to prevent the provision of housing assistance
in connection with supportive services for elderly or dis-
abled families.
SEC. 1329. HOMEOWNERSHIP OPTION.
(a) IN GENERAL.—A public housing agency providing
housing assistance under this title may provide home-
ownership assistance to assist eligible families to purchase
a dwelling unit (including purchase under lease-purchase
homeownership plans).
311
(b) REQUIREMENTS.—A public housing agency pro-
viding homeownership assistance under this section shall,
as a condition of an eligible family receiving such assist-
ance, require the family to—
(1) demonstrate that the family has sufficient
income from employment or other sources (other
than public assistance), as determined in accordance
with requirements established by the agency; and
(2) meet any other initial or continuing require-
ments established by the public housing agency.
(c) DOWNPAYMENT REQUIREMENT.—
(1) IN
GENERAL.—A public housing agency
may establish minimum downpayment requirements,
if appropriate, in connection with loans made for the
purchase of dwelling units for which homeownership
assistance is provided under this section. If the
agency establishes a minimum downpayment re-
quirement, the agency shall permit the family to use
grant amounts, gifts from relatives, contributions
from private sources, and similar amounts as down-
payment amounts in such purchase, subject to the
requirements of paragraph (2).
(2) DIRECT FAMILY CONTRIBUTION.—In pur-
chasing housing pursuant to this section subject to
a downpayment requirement, each family shall con-
312
tribute an amount of the downpayment, from re-
sources of the family other than grants, gifts, con-
tributions, or other similar amounts referred to in
paragraph (1), that is not less than 1 percent of the
purchase price.
(d) INELIGIBILITY UNDER OTHER PROGRAMS.—A
family may not receive homeownership assistance pursu-
ant to this section during any period when assistance is
being provided for the family under other Federal home-
ownership assistance programs, as determined by the Sec-
retary, including assistance under the HOME Investment
Partnerships Act, the Homeownership and Opportunity
Through HOPE Act, title II of the Housing and Commu-
nity Development Act of 1987, and section 502 of the
Housing Act of 1949.
SEC. 1330. ASSISTANCE FOR RENTAL OF MANUFACTURED
HOMES.
(a) AUTHORITY.—Nothing in this title may be con-
strued to prevent a public housing agency from providing
housing assistance under this title on behalf of a low-in-
come family for the rental of—
(1) a manufactured home that is the principal
residence of the family and the real property on
which the home is located; or
313
(2) the real property on which is located a man-
ufactured home, which is owned by the family and
is the principal residence of the family.
(b) ASSISTANCE FOR CERTAIN FAMILIES OWNING
MANUFACTURED HOMES.—
(1) 
AUTHORITY.—Notwithstanding 
section
1351 or any other provision of this title, a public
housing agency that receives amounts under a con-
tract under section 1302 may enter into a housing
assistance payment contract to make assistance pay-
ments under this title to a family that owns a manu-
factured home, but only as provided in paragraph
(2).
(2) LIMITATIONS.—In the case only of a low-in-
come family that owns a manufactured home, rents
the real property on which it is located, and to
whom housing assistance under this title has been
made available for the rental of such property, the
public housing agency making such assistance avail-
able shall enter into a contract to make housing as-
sistance payments under this title directly to the
family (rather than to the owner of such real prop-
erty) if—
314
(A) the owner of the real property refuses
to enter into a contract to receive housing as-
sistance payments pursuant to section 1351(a);
(B) the family was residing in such manu-
factured home on such real property at the time
such housing assistance was initially made
available on behalf of the family;
(C) the family provides such assurances to
the agency, as the Secretary may require, to en-
sure that amounts from the housing assistance
payments are used for rental of the real prop-
erty; and
(D) the rental of the real property other-
wise complies with the requirements for assist-
ance under this title.
A contract pursuant to this subsection shall be sub-
ject to the provisions of section 1351 and any other
provisions applicable to housing assistance payments
contracts under this title, except that the Secretary
may provide such exceptions as the Secretary consid-
ers appropriate to facilitate the provision of assist-
ance under this subsection.
315
Subtitle C—Payment of Housing
Assistance on Behalf of Assisted
Families
SEC. 1351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.
(a) IN GENERAL.—Each public housing agency that
receives amounts under a contract under section 1302
may enter into housing assistance payments contracts
with owners of existing dwelling units to make housing
assistance payments to such owners in accordance with
this title.
(b) PHA ACTING AS OWNER.—A public housing
agency may enter into a housing assistance payments con-
tract to make housing assistance payments under this title
to itself (or any agency or instrumentality thereof) as the
owner of dwelling units (other than public housing), and
the agency shall be subject to the same requirements that
are applicable to other owners, except that the determina-
tions under sections 1328(a) and 1354(b) shall be made
by a competent party not affiliated with the agency, and
the agency shall be responsible for any expenses of such
determinations.
(c) PROVISIONS.—Each housing assistance payments
contract shall—
(1) have a term of not more than 12 months;
316
(2) require that the assisted dwelling unit may
be rented only pursuant to a lease that complies
with the requirements of section 1324;
(3) comply with the requirements of sections
1325, 1642, and 1643 (relating to termination of
tenancy);
(4) require the owner to maintain the dwelling
unit in accordance with the applicable standards
under section 1328(a)(2); and
(5) provide that the screening and selection of
eligible families for assisted dwelling units shall be
the function of the owner.
SEC. 1352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.
(a) UNITS HAVING GROSS RENT EXCEEDING PAY-
MENT STANDARD.—In the case of a dwelling unit bearing
a gross rent that exceeds the payment standard estab-
lished under section 1353 for a dwelling unit of the appli-
cable size and located in the market area in which such
assisted dwelling unit is located, the amount of the month-
ly assistance payment shall be the amount by which such
payment standard exceeds the amount of the resident con-
tribution 
determined 
in 
accordance 
with 
section
1322(a)(1).
(b) SHOPPING
INCENTIVE
FOR
UNITS
HAVING
GROSS RENT NOT EXCEEDING PAYMENT STANDARD.—
317
In the case of an assisted family renting an eligible dwell-
ing unit bearing a gross rent that does not exceed the pay-
ment standard established under section 1353 for a dwell-
ing unit of the applicable size and located in the market
area in which such assisted dwelling unit is located, the
following requirements shall apply:
(1) AMOUNT
OF
MONTHLY
ASSISTANCE
PAY-
MENT.—The amount of the monthly assistance pay-
ment for housing assistance under this title on be-
half of the assisted family shall be the amount by
which the gross rent for the dwelling unit exceeds
the amount of the resident contribution.
(2) ESCROW
OF
SHOPPING
INCENTIVE
SAV-
INGS.—An amount equal to 50 percent of the dif-
ference between payment standard and the gross
rent for the dwelling unit shall be placed in an inter-
est bearing escrow account on behalf of such family
on a monthly basis by the public housing agency.
Amounts in the escrow account shall be made avail-
able to the assisted family on an annual basis.
(3) DEFICIT REDUCTION.—The public housing
agency making housing assistance payments on be-
half of such assisted family in a fiscal year shall re-
serve from amounts made available to the agency for
assistance payments for such fiscal year an amount
318
equal to the amount described in paragraph (2). At
the end of each fiscal year, the Secretary shall re-
capture any such amounts reserved by public hous-
ing agencies and such amounts shall be covered into
the General Fund of the Treasury of the United
States.
For purposes of this section, in the case of a family receiv-
ing homeownership assistance under section 1329, the
term ‘‘gross rent’’ shall mean the homeownership costs to
the family as determined in accordance with guidelines of
the Secretary.
SEC. 1353. PAYMENT STANDARDS.
(a) ESTABLISHMENT.—Each public housing agency
providing housing assistance under this title shall establish
payment standards under this section for various areas,
and sizes and types of dwelling units, for use in determin-
ing the amount of monthly housing assistance payment
to be provided on behalf of assisted families.
(b) USE
OF RENTAL INDICATORS.—The payment
standard for each size and type of housing for each market
area shall be an amount that is not less than 80 percent,
and not greater than 120 percent, of the rental indicator
established under section 1323 for such size and type for
such area.
319
(c) REVIEW.—If the Secretary determines, at any
time, that a significant percentage of the assisted families
who are assisted by a public housing agency and are occu-
pying dwelling units of a particular size are paying more
than 30 percent of their adjusted incomes for rent, the
Secretary shall review the payment standard established
by the agency for such size dwellings. If, pursuant to the
review, the Secretary determines that such payment stand-
ard is not appropriate to serve the needs of the low-income
population of the jurisdiction served by the agency (taking
into consideration rental costs in the area), as identified
in the approved community improvement plan of the agen-
cy, the Secretary may require the public housing agency
to modify the payment standard.
SEC. 1354. REASONABLE RENTS.
(a) ESTABLISHMENT.—The rent charged for a dwell-
ing unit for which rental assistance is provided under this
title shall be established pursuant to negotiation and
agreement between the assisted family and the owner of
the dwelling unit.
(b) REASONABLENESS.—
(1) DETERMINATION.—A public housing agency
providing rental assistance under this title for a
dwelling unit shall, before commencing assistance
payments for a unit (with respect to initial contract
320
rents and any rent revisions), determine whether the
rent charged for the unit exceeds the rents charged
for comparable units in the applicable private unas-
sisted market.
(2) UNREASONABLE RENTS.—If the agency de-
termines that the rent charged for a dwelling unit
exceeds such comparable rents, the agency shall—
(A) inform the assisted family renting the
unit that such rent exceeds the rents for com-
parable unassisted units in the market; and
(B) refuse to provide housing assistance
payments for such unit.
SEC. 1355. PROHIBITION OF ASSISTANCE FOR VACANT
RENTAL UNITS.
If an assisted family vacates a dwelling unit for which
rental assistance is provided under a housing assistance
payments contract before the expiration of the term of the
lease for the unit, rental assistance pursuant to such con-
tract may not be provided for the unit after the month
during which the unit was vacated.
Subtitle D—General and
Miscellaneous Provisions
SEC. 1371. DEFINITIONS.
For purposes of this title:
321
(1) ASSISTED DWELLING UNIT.—The term ‘‘as-
sisted dwelling unit’’ means a dwelling unit in which
an assisted family resides and for which housing as-
sistance payments are made under this title.
(2) ASSISTED
FAMILY.—The term ‘‘assisted
family’’ means an eligible family on whose behalf
housing assistance payments are made under this
title or who has been selected and approved for
housing assistance.
(3) CHOICE-BASED.—The term ‘‘choice-based’’
means, with respect to housing assistance, that the
assistance is not attached to a dwelling unit but can
be used for any eligible dwelling unit selected by the
eligible family.
(4) ELIGIBLE DWELLING UNIT.—The term ‘‘eli-
gible dwelling unit’’ means a dwelling unit that com-
plies with the requirements under section 1328 for
consideration as an eligible dwelling unit.
(5) ELIGIBLE
FAMILY.—The term ‘‘eligible
family’’ means a family that meets the requirements
under section 1321(a) for assistance under this title.
(6) HOMEOWNERSHIP ASSISTANCE.—The term
‘‘homeownership assistance’’ means housing assist-
ance provided under section 1329 for the ownership
of a dwelling unit.
322
(7) HOUSING ASSISTANCE.—The term ‘‘housing
assistance’’ means choice-based assistance provided
under this title on behalf of low-income families for
the rental or ownership of an eligible dwelling unit.
(8) HOUSING
ASSISTANCE
PAYMENTS
CON-
TRACT.—The term ‘‘housing assistance payments
contract’’ means a contract under section 1351 be-
tween a public housing agency (or the Secretary)
and an owner to make housing assistance payments
under this title to the owner on behalf of an assisted
family.
(9) PUBLIC
HOUSING
AGENCY.—The terms
‘‘public housing agency’’ and ‘‘agency’’ have the
meaning given such terms in section 1103, except
that the terms include—
(A) a consortia of public housing agencies
that the Secretary determines has the capacity
and capability to administer a program for
housing assistance under this title in an effi-
cient manner;
(B) any other entity that, upon the effec-
tive date of this division, was administering any
program for tenant-based rental assistance
under section 8 of the United States Housing
Act of 1937 (as in effect before the effective
323
date of the repeal under section 1601(b) of this
Act), pursuant to a contract with the Secretary
or a public housing agency; and
(C) with respect to any area in which no
public housing agency has been organized or
where the Secretary determines that a public
housing agency is unwilling or unable to imple-
ment this title, or is not performing effec-
tively—
(i) the Secretary or another entity
that by contract agrees to receive assist-
ance amounts under this title and enter
into housing assistance payments contracts
with owners and perform the other func-
tions of public housing agency under this
title; or
(ii) notwithstanding any provision of
State or local law, a public housing agency
for another area that contracts with the
Secretary to administer a program for
housing assistance under this title, without
regard to any otherwise applicable limita-
tions on its area of operation.
(10) OWNER.—The term ‘‘owner’’ means the
person or entity having the legal right to lease or
324
sublease dwelling units. Such term includes any
principals, general partners, primary shareholders,
and other similar participants in any entity owning
a multifamily housing project, as well as the entity
itself.
(11) RENT.—The terms ‘‘rent’’ and ‘‘rental’’
include, with respect to members of a cooperative,
the charges under the occupancy agreements be-
tween such members and the cooperative.
(12) RENTAL ASSISTANCE.—The term ‘‘rental
assistance’’ means housing assistance provided
under this title for the rental of a dwelling unit.
SEC. 1372. RENTAL ASSISTANCE FRAUD RECOVERIES.
(a) 
AUTHORITY
TO
RETAIN
RECOVERED
AMOUNTS.—The Secretary shall permit public housing
agencies administering housing assistance under this title
to retain, out of amounts obtained by the authorities from
tenants that are due as a result of fraud and abuse, an
amount (determined in accordance with regulations issued
by the Secretary) equal to the greater of—
(1) 50 percent of the amount actually collected;
or
(2) the actual, reasonable, and necessary ex-
penses related to the collection, including costs of in-
vestigation, legal fees, and collection agency fees.
325
(b) USE.—Amounts retained by an agency shall be
made available for use in support of the affected program
or project, in accordance with regulations issued by the
Secretary. If the Secretary is the principal party initiating
or sustaining an action to recover amounts from families
or owners, the provisions of this section shall not apply.
(c) RECOVERY.—Amounts may be recovered under
this section—
(1) by an agency through a lawsuit (including
settlement of the lawsuit) brought by the agency or
through court-ordered restitution pursuant to a
criminal proceeding resulting from an agency’s in-
vestigation where the agency seeks prosecution of a
family or where an agency seeks prosecution of an
owner;
(2) through administrative repayment agree-
ments with a family or owner entered into as a re-
sult of an administrative grievance procedure con-
ducted by an impartial decisionmaker in accordance
with section 1110; or
(3) through an agreement between the parties.
SEC. 1373. STUDY REGARDING GEOGRAPHIC CONCENTRA-
TION OF ASSISTED FAMILIES.
(a) IN GENERAL.—The Secretary shall conduct a
study of the geographic areas in the State of Illinois served
326
by the Housing Authority of Cook County and the Chicago
Housing Authority and submit to the Congress a report
and a specific proposal, which addresses and resolves the
issues of—
(1) the adverse impact on local communities
due to geographic concentration of assisted house-
holds under the tenant-based housing programs
under section 8 of the United States Housing Act of
1937 (as in effect upon the enactment of this Act)
and under this title; and
(2) facilitating the deconcentration of such as-
sisted households by providing broader housing
choices to such households.
The study shall be completed, and the report shall be sub-
mitted, not later than 90 days after the date of the enact-
ment of this Act.
(b) CONCENTRATION.—For purposes of this section,
the term ‘‘concentration’’ means, with respect to any area
within a census tract, that—
(1) 15 percent or more of the households resid-
ing within such area have incomes which do not ex-
ceed the poverty level; or
(2) 15 percent or more of the total affordable
housing stock located within such area is assisted
housing.
327
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 1374. STUDY REGARDING RENTAL ASSISTANCE.
The Secretary shall conduct a nationwide study of the
choice-based housing assistance program under this title
and the tenant-based rental assistance program under sec-
tion 8 of the United States Housing Act of 1937 (as in
effect pursuant to sections 1601(c) and 1602(b)). The
study shall, for various localities—
(1) determine who are the providers of the
housing in which families assisted under such pro-
grams reside;
(2) describe and analyze the physical and demo-
graphic characteristics of the housing in which such
assistance is used, including, for housing in which at
least one such assisted family resides, the total num-
ber of units in the housing and the number of units
in the housing for which such assistance is provided;
(3) determine the total number of units for
which such assistance is provided;
(4) describe the durations that families remain
on waiting lists before being provided such housing
assistance; and
(5) assess the extent and quality of participa-
tion of housing owners in such assistance programs
328
in relation to the local housing market, including
comparing—
(A) the quality of the housing assisted to
the housing generally available in the same
market; and
(B) the extent to which housing is avail-
able to be occupied using such assistance to the
extent to which housing is generally available in
the same market.
The Secretary shall submit a report describing the results
of the study to the Congress not later than the expiration
of the 2-year period beginning on the date of the enact-
ment of this Act.
TITLE XIV—HOME RULE
FLEXIBLE GRANT OPTION
SEC. 1401. PURPOSE.
The purpose of this title is to give local governments
and municipalities the flexibility to design creative ap-
proaches for providing and administering Federal housing
assistance based on the particular needs of the commu-
nities that—
(1) give incentives to low-income families with
children where the head of household is working,
seeking work, or preparing for work by participating
in job training, educational programs, or programs
329
that assist people to obtain employment and become
economically self-sufficient;
(2) reduce cost and achieve greater cost-effec-
tiveness in Federal housing assistance expenditures;
(3) increase housing choices for low-income
families; and
(4) reduce excessive geographic concentration of
assisted families.
SEC. 1402. FLEXIBLE GRANT PROGRAM.
(a) AUTHORITY AND USE.—The Secretary shall carry
out a program under which a jurisdiction may, upon the
application of the jurisdiction and the review and approval
of the Secretary, receive, combine, and enter into perform-
ance-based contracts for the use of amounts of covered
housing assistance in a period consisting of not less than
one nor more than 5 fiscal years in the manner determined
appropriate by the participating jurisdiction—
(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;
(3) to increase homeownership among low-in-
come families; and
(4) for other housing purposes for low-income
families determined by the participating jurisdiction.
330
(b) INAPPLICABILITY
OF CATEGORICAL PROGRAM
REQUIREMENTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2) and section 1405, the provisions of this di-
vision regarding use of amounts made available
under each of the programs included as covered
housing assistance and the program requirements
applicable to each such program shall not apply to
amounts received by a jurisdiction pursuant to this
title.
(2) APPLICABILITY OF CERTAIN LAWS.—This
title may not be construed to exempt assistance
under this division from, or make inapplicable any
provision of this division or of any other law that re-
quires that assistance under this division be provided
in compliance with—
(A) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.);
(B) the Fair Housing Act (42 U.S.C. 3601
et seq.);
(C) section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 701 et seq.);
(D) title IX of the Education Amendments
of 1972 (86 Stat. 373 et seq.);
331
(E) the Age Discrimination Act of 1975
(42 U.S.C. 6101 et seq.);
(F) the Americans with Disabilities Act of
1990; or
(G) the National Environmental Policy Act
of 1969 and other provisions of law that further
protection of the environment (as specified in
regulations that shall be issued by the Sec-
retary).
(c) EFFECT ON PROGRAM ALLOCATIONS FOR COV-
ERED HOUSING ASSISTANCE.—The amount of assistance
received pursuant to this title by a participating jurisdic-
tion shall not be decreased, because of participation in the
program under this title, from the sum of the amounts
that otherwise would be made available for or within the
participating jurisdiction under the programs included as
covered housing assistance.
SEC. 1403. COVERED HOUSING ASSISTANCE.
For purposes of this title, the term ‘‘covered housing
assistance’’ means—
(1) operating assistance provided under section
9 of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under
section 1601(b) of this Act);
332
(2) modernization assistance provided under
section 14 of such Act;
(3) assistance provided under section 8 of such
Act for the certificate and voucher programs;
(4) assistance for public housing provided under
title XII of this Act; and
(5) choice-based rental assistance provided
under title XIII of this Act.
Such term does not include any amounts obligated for as-
sistance under existing contracts for project-based assist-
ance under section 8 of the United States Housing Act
of 1937 or section 1601(f) of this Act.
SEC. 1404. PROGRAM REQUIREMENTS.
(a) ELIGIBLE FAMILIES.—Each family on behalf of
whom assistance is provided for rental or homeownership
of a dwelling unit using amounts made available pursuant
to this title shall be a low-income family. Each dwelling
unit assisted using amounts made available pursuant to
this title shall be available for occupancy only by families
that are low-income families at the time of their initial
occupancy of the unit.
(b) COMPLIANCE WITH ASSISTANCE PLAN.—A par-
ticipating jurisdiction shall provide assistance using
amounts received pursuant to this title in the manner set
333
forth in the plan of the jurisdiction approved by the Sec-
retary under section 1406(a)(2).
(c) RENT POLICY.—A participating jurisdiction shall
ensure that the rental contributions charged to families
assisted with amounts received pursuant to this title—
(1) do not exceed the amount that would be
chargeable under title XII to such families were such
families residing in public housing assisted under
such title; or
(2) are established, pursuant to approval by the
Secretary of a proposed rent structure included in
the application under section 1406, at levels that are
reasonable and designed to eliminate any disincen-
tives for members of the family to obtain employ-
ment and attain economic self-sufficiency.
(d) HOUSING QUALITY STANDARDS.—
(1) COMPLIANCE.—A participating jurisdiction
shall ensure that housing assisted with amounts re-
ceived pursuant to this title is maintained in a con-
dition that complies—
(A) in the case of housing located in a ju-
risdiction which has in effect laws, regulations,
standards, or codes regarding habitability of
residential dwellings, with such applicable laws,
regulations, standards, or codes; or
334
(B) in the case of housing located in a ju-
risdiction which does not have in effect laws,
regulations, standards, or codes described in
paragraph (1), with the housing quality stand-
ards established under paragraph (2).
(2) FEDERAL HOUSING QUALITY STANDARDS.—
The Secretary shall establish housing quality stand-
ards under this paragraph that ensure that dwelling
units assisted under this title are safe, clean, and
healthy. Such standards shall include requirements
relating to habitability, including maintenance,
health and sanitation factors, condition, and con-
struction of dwellings, and shall, to the greatest ex-
tent practicable, be consistent with the standards es-
tablished under sections 1232(b) and 1328(c). The
Secretary shall differentiate between major and
minor violations of such standards.
(e) NUMBER OF FAMILIES ASSISTED.—A participat-
ing jurisdiction shall ensure that, in providing assistance
with amounts received pursuant to this title in each fiscal
year, not less than substantially the same total number
of eligible low-income families are assisted as would have
been assisted had the amounts of covered housing assist-
ance not been combined for use under this title.
335
(f) CONSISTENCY WITH WELFARE PROGRAM.—A
participating jurisdiction shall ensure that assistance pro-
vided with amounts received pursuant to this title is pro-
vided in a manner that is consistent with the welfare, pub-
lic assistance, or other economic self-sufficiency programs
operating in the jurisdiction by facilitating the transition
of assisted families to work, which may include requiring
compliance with the requirements under such welfare,
public assistance, or self-sufficiency programs as a condi-
tion of receiving housing assistance with amounts provided
under this title.
(g) TREATMENT OF CURRENTLY ASSISTED FAMI-
LIES.—
(1) CONTINUATION OF ASSISTANCE.—A partici-
pating jurisdiction shall ensure that each family that
was receiving housing assistance or residing in an
assisted dwelling unit pursuant to any of the pro-
grams included as covered housing assistance imme-
diately before the jurisdiction initially provides as-
sistance pursuant to this title shall be offered assist-
ance or an assisted dwelling unit under the program
of the jurisdiction under this title.
(2) PHASE-IN
OF
RENT
CONTRIBUTION
IN-
CREASES.—For any family that was receiving hous-
ing assistance pursuant to any of the programs in-
336
cluded as covered housing assistance immediately be-
fore the jurisdiction initially provides assistance pur-
suant to this title, if the monthly contribution for
rental of a dwelling unit assisted under this title to
be paid by the family upon initial applicability of
this title is greater than the amount paid by the
family immediately before such applicability, any
such resulting increase in rent contribution shall
be—
(A) phased in equally over a period of not
less than 3 years, if such increase is 30 percent
or more of such contribution before initial ap-
plicability; and
(B) limited to not more than 10 percent
per year if such increase is more than 10 per-
cent but less than 30 percent of such contribu-
tion before initial applicability.
(h) AMOUNT OF ASSISTANCE.—In providing housing
assistance using amounts received pursuant to this title,
the amount of assistance provided by a participating juris-
diction on behalf of each assisted low-income family shall
be sufficient so that if the family used such assistance to
rent a dwelling unit having a rent equal to the 40th per-
centile of rents for standard quality rental units of the
same size and type in the same market area, the contribu-
337
tion toward rental paid by the family would be affordable
(as such term is defined by the jurisdiction) to the family.
(i) PORTABILITY.—A participating jurisdiction shall
ensure that financial assistance for housing provided with
amounts received pursuant to this title may be used by
a family moving from an assisted dwelling unit located
within the jurisdiction to obtain a dwelling unit located
outside of the jurisdiction.
(j) PREFERENCES.—In providing housing assistance
using amounts received pursuant to this title, a participat-
ing jurisdiction may establish a system for making hous-
ing assistance available that provides preference for assist-
ance to families having certain characteristics. A system
of preferences established pursuant to this subsection shall
be based on local housing needs and priorities, as deter-
mined by the jurisdiction using generally accepted data
sources.
(k) COMMUNITY WORK REQUIREMENT.—
(1) APPLICABILITY
OF
REQUIREMENTS
FOR
PHA’S.—Except as provided in paragraph (2), par-
ticipating 
jurisdictions, 
families 
assisted 
with
amounts received pursuant to this title, and dwelling
units assisted with amounts received pursuant to
this title, shall be subject to the provisions of section
1105 to the same extent that such provisions apply
338
with respect to public housing agencies, families re-
siding in public housing dwelling units and families
assisted under title XIII, and public housing dwell-
ing units and dwelling units assisted under title
XIII.
(2) 
LOCAL
COMMUNITY
SERVICE
ALTER-
NATIVE.—Paragraph (1) shall not apply to a partici-
pating jurisdiction that, pursuant to approval by the
Secretary of a proposal included in the application
under section 1406, is carrying out a local program
that is designed to foster community service by fami-
lies assisted with amounts received pursuant to this
title.
(l) INCOME TARGETING.—In providing housing as-
sistance using amounts received pursuant to this title in
any fiscal year, a participating jurisdiction shall ensure
that the number of families having incomes that do not
exceed 30 percent of the area median income that are ini-
tially assisted under this title during such fiscal year is
not less than substantially the same number of families
having such incomes that would be initially assisted in
such jurisdiction during such fiscal year under titles XII
and XIII pursuant to sections 1222(c) and 1321(b)).
339
SEC. 1405. APPLICABILITY OF CERTAIN PROVISIONS.
(a) PUBLIC HOUSING DEMOLITION AND DISPOSI-
TION REQUIREMENTS.—section 1261 shall continue to
apply to public housing notwithstanding any use of the
housing under this title.
(b) LABOR STANDARDS.—section 1112 shall apply to
housing assisted with amounts provided pursuant to this
title, other than housing assisted solely due to occupancy
by families receiving tenant-based assistance.
SEC. 1406. APPLICATION.
(a) IN GENERAL.—The Secretary shall provide for
jurisdictions to submit applications to receive and use cov-
ered housing assistance amounts as authorized in this title
for periods of not less than 1 and not more than 5 fiscal
years. An application—
(1) shall be submitted only after the jurisdiction
provides for citizen participation through a public
hearing and, if appropriate, other means;
(2) shall include a plan developed by the juris-
diction for the provision of housing assistance with
amounts received pursuant to this title that takes
into consideration comments from the public hearing
and any other public comments on the proposed pro-
gram, and comments from current and prospective
residents who would be affected, and that includes
340
criteria for meeting each of the requirements under
section 1404 and this title;
(3) shall describe how the plan for use of
amounts will assist in meeting the goals set forth in
section 1401;
(4) shall propose standards for measuring per-
formance in using assistance provided pursuant to
this title based on the performance standards under
subsection (b)(2);
(5) shall propose the length of the period for
which the jurisdiction is applying for assistance
under this title;
(6) may include a request assistance for train-
ing and technical assistance to assist with design of
the program and to participate in a detailed evalua-
tion;
(7) shall—
(A) in the case of the application of any
jurisdiction within whose boundaries are areas
subject to any other unit of general local gov-
ernment, include the signed consent of the ap-
propriate executive official of such unit to the
application; and
(B) in the case of the application of a con-
sortia of units of general local government (as
341
provided under section 1409(1)(B)), include the
signed consent of the appropriate executive offi-
cials of each unit included in the consortia;
(8) shall include information sufficient, in the
determination of the Secretary—
(A) to demonstrate that the jurisdiction
has or will have management and administra-
tive capacity sufficient to carry out the plan
under paragraph (2);
(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 bound-
aries of the jurisdiction;
(C) to describe the function and activities
to be carried out by such public housing agen-
cies affected by the plan; and
(D) to demonstrate that the amounts re-
ceived by the jurisdiction will be maintained
separate from other funds available to the juris-
diction and will be used only to carry out the
plan; and
(9) shall include information describing how the
jurisdiction will make decisions regarding asset man-
342
agement of housing for low-income families under
programs for covered housing assistance or assisted
with grant amounts under this title.
A plan required under paragraph (2) to be included in
the application 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 STAND-
ARDS.—
(1) REVIEW.—The Secretary shall review appli-
cations for assistance pursuant to this title and shall
approve or disapprove such applications within 60
days after their submission. The Secretary shall pro-
vide affected public housing agencies an opportunity
to review an application submitted under this sub-
section and to provide written comments on the ap-
plication, which shall be a period of not less than 30
days ending before the Secretary approves or dis-
approves the application. If the Secretary determines
that the application complies with the requirements
of this title, the Secretary shall offer to enter into
an agreement with jurisdiction providing for assist-
ance pursuant to this title and incorporating a re-
quirement that the jurisdiction achieve a particular
343
level of performance in each of the areas for which
performance standards are established under para-
graph (2). If the Secretary determines that an appli-
cation does not comply with the requirements of this
title, the Secretary shall notify the jurisdiction sub-
mitting the application of the reasons for such dis-
approval and actions that may be taken to make the
application approvable. Upon approving or dis-
approving an application under this paragraph, the
Secretary shall make such determination publicly
available in writing together with a written state-
ment of the reasons for such determination.
(2) PERFORMANCE
STANDARDS.—The Sec-
retary shall establish standards for measuring per-
formance of jurisdictions in the following areas:
(A) Success in moving dependent low-in-
come families to economic self-sufficiency.
(B) Success in reducing the numbers of
long-term homeless families.
(C) Decrease in the per-family cost of pro-
viding assistance.
(D) Reduction of excessive geographic con-
centration of assisted families.
(E) Any other performance goals that the
Secretary may prescribe.
344
(3) APPROVAL.—If the Secretary and a juris-
diction that the Secretary determines has submitted
an application meeting the requirements of this title
enter into an agreement referred to in paragraph
(1), the Secretary shall approve the application and
provide covered housing assistance for the jurisdic-
tion in the manner authorized under this title. The
Secretary may not approve any application for as-
sistance pursuant to this title unless the Secretary
and jurisdiction enter into an agreement referred to
in paragraph (1). The Secretary shall establish re-
quirements for the approval of applications under
this section submitted by public housing agencies
designated under section 1533(a) as troubled, which
may include additional or different criteria deter-
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.
345
SEC. 1407. 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. 1408. 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 1406(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
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—
346
(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
records that are pertinent to assistance in connection with,
and the requirements of, this title.
SEC. 1409. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) JURISDICTION.—The term ‘‘jurisdiction’’
means—
347
(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
1406(b)(3) to receive assistance pursuant to this
title for such fiscal year.
348
TITLE 
XV—ACCOUNTABILITY
AND OVERSIGHT OF PUBLIC
HOUSING AGENCIES
Subtitle A—Study of Alternative
Methods for Evaluating Public
Housing Agencies
SEC. 1501. IN GENERAL.
The Secretary of Housing and Urban Development
shall provide under section 1505 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. 1502. 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
(2) to identify specific monitoring and oversight
activities currently conducted by the Department of
Housing and Urban Development that are insuffi-
349
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. 1503. EVALUATION OF VARIOUS PERFORMANCE EVAL-
UATION SYSTEMS.
To carry out the purpose under section 1502(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
the public housing management assessment program
pursuant to subtitle C of this title (and section 6(j)
351
(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.
(4) LOCAL
REVIEW
AND
MONITORING
MOD-
ELS.—Various models providing for local, resident,
and community review and monitoring of such agen-
352
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. 1504. CONSULTATION.
The entity that, pursuant to section 1505, 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.
SEC. 1505. CONTRACT TO CONDUCT STUDY.
(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary shall enter into a contract with a public or nonprofit
353
private entity to conduct the study under this subtitle,
using amounts made available pursuant to section 1507.
(b) NATIONAL ACADEMY OF PUBLIC ADMINISTRA-
TION.—The Secretary shall request the National Academy
of Public Administration to enter into the contract under
subsection (a) to conduct the study under this subtitle.
If such Academy declines to conduct the study, the Sec-
retary shall carry out such subsection through other public
or nonprofit private entities.
SEC. 1506. 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-
title is completed and a report describing the find-
354
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. 1507. 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. 1508. 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. 1521. ESTABLISHMENT.
(a) IN GENERAL.—There is established an independ-
ent agency in the executive branch of the Government to
355
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 divi-
sion, sections 1523, 1524, and 1525 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
subsection. This subsection may not be construed to pre-
vent the appointment of the Board under section 1522.
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 1522. 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 1506(b), as follows:
(1) four members shall be appointed from
among 10 individuals recommended by the Secretary
of Housing and Urban Development.
(2) four members shall be appointed from
among 10 individuals recommended by the Chair-
man and Ranking Minority Member of the Commit-
356
tee on Banking, Housing, and Urban Affairs of the
Senate.
(3) four members appointed from among 10 in-
dividuals recommended by the Chairman and Rank-
ing Minority Member of the Committee on Banking
and Financial Services of the House of Representa-
tives.
(b) QUALIFICATIONS.—
(1) REQUIRED REPRESENTATION.—The Board
shall at all times have the following members:
(A) two members who are residents of pub-
lic housing or dwelling units assisted under title
XIII 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 1601(b) of this Act).
(B) At least two, but not more than four
members who are executive directors of public
housing agencies.
(C) one member who is a member of the
Institute of Real Estate Managers.
(D) one member who is the owner of a
multifamily housing project assisted under a
program administered by the Secretary of
Housing and Urban Development.