H. R. 4194—109
own 1 or more common household pets or have 1 or more common
household pets present in the dwelling unit of such resident, subject
to the reasonable requirements of the public housing agency, if
the resident maintains each pet responsibly and in accordance
with applicable State and local public health, animal control, and
animal anti-cruelty laws and regulations and with the policies
established in the public housing agency plan for the agency.
‘‘(b) REASONABLE
REQUIREMENTS.—The reasonable require-
ments referred to in subsection (a) may include—
‘‘(1) requiring payment of a nominal fee, a pet deposit,
or both, by residents owning or having pets present, to cover
the reasonable operating costs to the project relating to the
presence of pets and to establish an escrow account for addi-
tional costs not otherwise covered, respectively;
‘‘(2) limitations on the number of animals in a unit, based
on unit size;
‘‘(3) prohibitions on—
‘‘(A) types of animals that are classified as dangerous;
and
‘‘(B) individual animals, based on certain factors,
including the size and weight of the animal; and
‘‘(4) restrictions or prohibitions based on size and type
of building or project, or other relevant conditions.
‘‘(c) PET OWNERSHIP IN PUBLIC HOUSING DESIGNATED FOR
OCCUPANCY BY ELDERLY OR HANDICAPPED FAMILIES.—For purposes
of this section, the term ‘public housing’ has the meaning given
the term in section 3(b), except that such term does not include
any public housing that is federally assisted rental housing for
the elderly or handicapped, as such term is defined in section
227(d) of the Housing and Urban-Rural Recovery Act of 1983 (12
U.S.C. 1701r–1(d)).
‘‘(d) REGULATIONS.—This section shall take effect upon the date
of the effectiveness of regulations issued by the Secretary to carry
out this section. Such regulations shall be issued after notice and
opportunity for public comment in accordance with the procedure
under section 553 of title 5, United States Code, applicable to
substantive rules (notwithstanding subsections (a)(2), (b)(B), and
(d)(3) of such section).’’.
PART 3—MANAGEMENT, HOMEOWNERSHIP,
AND DEMOLITION AND DISPOSITION
SEC. 529. CONTRACT PROVISIONS.
Section 6 of the United States Housing Act of 1937 (42 U.S.C.
1437d) is amended—
(1) in subsection (c)(4)(E), by striking ‘‘except in the case
of agencies not receiving operating assistance under section
9’’ and inserting ‘‘for each agency that receives assistance under
this title’’; and
(2) by striking subsection (e).
SEC. 530. HOUSING QUALITY REQUIREMENTS.
Section 6 of the United States Housing Act of 1937 (42 U.S.C.
1437d) is amended by inserting after subsection (e) the following
new subsection:
‘‘(f ) HOUSING QUALITY REQUIREMENTS.—
H. R. 4194—110
‘‘(1) IN GENERAL.—Each contract for contributions for a
public housing agency shall require that the agency maintain
its public housing in a condition that complies with standards
which meet or exceed the housing quality standards established
under paragraph (2).
‘‘(2) FEDERAL STANDARDS.—The Secretary shall establish
housing quality standards under this paragraph that ensure
that public housing dwelling units are safe and habitable. Such
standards shall include requirements 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 8(o)(8)(B)(i). The Secretary may determine whether the
laws, regulations, standards, or codes of any State or local
jurisdiction meet or exceed these standards, for purposes of
this subsection.
‘‘(3) ANNUAL
INSPECTIONS.—Each public housing agency
that owns or operates public housing shall make an annual
inspection of each public housing project to determine whether
units in the project are maintained in accordance with the
requirements under paragraph (1). The agency shall retain
the results of such inspections and, upon the request of the
Secretary, the Inspector General for the Department of Housing
and Urban Development, or any auditor conducting an audit
under section 5(h), shall make such results available.’’.
SEC. 531. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
(a) IN GENERAL.—Section 18 of the United States Housing
Act of 1937 (42 U.S.C. 1437p) is amended to read as follows:
‘‘SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
‘‘(a) APPLICATIONS FOR DEMOLITION AND DISPOSITION.—Except
as provided in subsection (b), upon receiving an application by
a public housing agency for authorization, with or without financial
assistance under this title, to demolish or dispose of a public housing
project or a portion of a public housing project (including any
transfer to a resident-supported nonprofit entity), the Secretary
shall approve the application, if the public housing agency cer-
tifies—
‘‘(1) in the case of—
‘‘(A) an application proposing demolition of a public
housing project or a portion of a public housing project,
that—
‘‘(i) the project or portion of the public housing
project is obsolete as to physical condition, location,
or other factors, making it unsuitable for housing pur-
poses; and
‘‘(ii) no reasonable program of modifications is cost-
effective to return the public housing project or portion
of the project to useful life; and
‘‘(B) an application proposing the demolition of only
a portion of a public housing project, that the demolition
will help to ensure the viability of the remaining portion
of the project;
‘‘(2) in the case of an application proposing disposition
by sale or other transfer of a public housing project or other
real property subject to this title—
H. R. 4194—111
‘‘(A) the retention of the property is not in the best
interests of the residents or the public housing agency
because—
‘‘(i) conditions in the area surrounding the public
housing project adversely affect the health or safety
of the residents or the feasible operation of the project
by the public housing agency; or
‘‘(ii) disposition allows the acquisition, develop-
ment, or rehabilitation of other properties that will
be more efficiently or effectively operated as low-income
housing;
‘‘(B) the public housing agency has otherwise deter-
mined the disposition to be appropriate for reasons that
are—
‘‘(i) in the best interests of the residents and the
public housing agency;
‘‘(ii) consistent with the goals of the public housing
agency and the public housing agency plan; and
‘‘(iii) otherwise consistent with this title; or
‘‘(C) for property other than dwelling units, the prop-
erty is excess to the needs of a public housing project
or the disposition is incidental to, or does not interfere
with, continued operation of a public housing project;
‘‘(3) that the public housing agency has specifically author-
ized the demolition or disposition in the public housing agency
plan, and has certified that the actions contemplated in the
public housing agency plan comply with this section;
‘‘(4) that the public housing agency—
‘‘(A) will notify each family residing in a project subject
to demolition or disposition 90 days prior to the displace-
ment date, except in cases of imminent threat to health
or safety, consistent with any guidelines issued by the
Secretary governing such notifications, that—
‘‘(i) the public housing project will be demolished
or disposed of;
‘‘(ii) the demolition of the building in which the
family resides will not commence until each resident
of the building is relocated; and
‘‘(iii) each family displaced by such action will be
offered comparable housing—
‘‘(I) that meets housing quality standards;
‘‘(II) that is located in an area that is generally
not less desirable than the location of the displaced
person’s housing; and
‘‘(III) which may include—
‘‘(aa) tenant-based assistance, except that
the requirement under this clause regarding
offering of comparable housing shall be ful-
filled by use of tenant-based assistance only
upon the relocation of such family into such
housing;
‘‘(bb) project-based assistance; or
‘‘(cc) occupancy in a unit operated or
assisted by the public housing agency at a
rental rate paid by the family that is com-
parable to the rental rate applicable to the
unit from which the family is vacated;
H. R. 4194—112
‘‘(B) will provide for the payment of the actual and
reasonable relocation expenses of each resident to be dis-
placed;
‘‘(C) will ensure that each displaced resident is offered
comparable housing in accordance with the notice under
subparagraph (A); and
‘‘(D) will provide any necessary counseling for residents
who are displaced; and
‘‘(E) will not commence demolition or complete disposi-
tion until all residents residing in the building are
relocated;
‘‘(5) that the net proceeds of any disposition will be used—
‘‘(A) unless waived by the Secretary, for the retirement
of outstanding obligations issued to finance the original
public housing project or modernization of the project; and
‘‘(B) to the extent that any proceeds remain after the
application of proceeds in accordance with subparagraph
(A), for—
‘‘(i) the provision of low-income housing or to bene-
fit the residents of the public housing agency; or
‘‘(ii) leveraging amounts for securing commercial
enterprises, on-site in public housing projects of the
public housing agency, appropriate to serve the needs
of the residents; and
‘‘(6) that the public housing agency has complied with
subsection (c).
‘‘(b) DISAPPROVAL OF APPLICATIONS.—The Secretary shall dis-
approve an application submitted under subsection (a) if the Sec-
retary determines that—
‘‘(1) any certification made by the public housing agency
under that subsection is clearly inconsistent with information
and data available to the Secretary or information or data
requested by the Secretary; or
‘‘(2) the application was not developed in consultation
with—
‘‘(A) residents who will be affected by the proposed
demolition or disposition;
‘‘(B) each resident advisory board and resident council,
if any, of the project (or portion thereof) that will be affected
by the proposed demolition or disposition; and
‘‘(C) appropriate government officials.
‘‘(c) RESIDENT OPPORTUNITY TO PURCHASE IN CASE OF PRO-
POSED DISPOSITION.—
‘‘(1) IN GENERAL.—In the case of a proposed disposition
of a public housing project or portion of a project, the public
housing agency shall, in appropriate circumstances, as deter-
mined by the Secretary, initially offer the property to any
eligible resident organization, eligible resident management cor-
poration, or nonprofit organization acting on behalf of the resi-
dents, if that entity has expressed an interest, in writing,
to the public housing agency in a timely manner, in purchasing
the property for continued use as low-income housing.
‘‘(2) TIMING.—
‘‘(A) EXPRESSION OF INTEREST.—A resident organiza-
tion, resident management corporation, or other resident-
supported nonprofit entity referred to in paragraph (1)
may express interest in purchasing property that is the
H. R. 4194—113
subject of a disposition, as described in paragraph (1),
during the 30-day period beginning on the date of notifica-
tion of a proposed sale of the property.
‘‘(B) OPPORTUNITY TO ARRANGE PURCHASE.—If an entity
expresses written interest in purchasing a property, as
provided in subparagraph (A), no disposition of the property
shall occur during the 60-day period beginning on the date
of receipt of that written notice (other than to the entity
providing the notice), during which time that entity shall
be given the opportunity to obtain a firm commitment
for financing the purchase of the property.
‘‘(d) REPLACEMENT UNITS.—Notwithstanding any other provi-
sion of law, replacement public housing units for public housing
units demolished in accordance with this section may be built
on the original public housing location or in the same neighborhood
as the original public housing location if the number of the replace-
ment public housing units is significantly fewer than the number
of units demolished.
‘‘(e) CONSOLIDATION OF OCCUPANCY WITHIN OR AMONG BUILD-
INGS.—Nothing in this section may be construed to prevent a public
housing agency from consolidating occupancy within or among build-
ings of a public housing project, or among projects, or with other
housing for the purpose of improving living conditions of, or provid-
ing more efficient services to, residents.
‘‘(f ) DE MINIMIS EXCEPTION TO DEMOLITION REQUIREMENTS.—
Notwithstanding any other provision of this section, in any 5-
year period a public housing agency may demolish not more than
the lesser of 5 dwelling units or 5 percent of the total dwelling
units owned by the public housing agency, but only if the space
occupied by the demolished unit is used for meeting the service
or other needs of public housing residents or the demolished unit
was beyond repair.
‘‘(g) UNIFORM RELOCATION AND REAL PROPERTY ACQUISITION
ACT.—The Uniform Relocation and Real Property Acquisition Poli-
cies Act of 1970 shall not apply to activities under this section.
‘‘(h) RELOCATION AND REPLACEMENT.—Of the amounts appro-
priated for tenant-based assistance under section 8 in any fiscal
year, the Secretary may use such sums as are necessary for reloca-
tion and replacement housing for dwelling units that are demolished
and disposed of from the public housing inventory (in addition
to other amounts that may be available for such purposes).’’.
(b) HOMEOWNERSHIP REPLACEMENT PLAN.—
(1) IN GENERAL.—Notwithstanding subsections (b) and (c)
of section 1002 of the Emergency Supplemental Appropriations
for Additional Disaster Assistance, for Anti-terrorism Initia-
tives, for Assistance in the Recovery from the Tragedy that
Occurred At Oklahoma City, and Rescissions Act, 1995 (Public
Law 104–19; 109 Stat. 236), subsection (g) of section 304 of
the United States Housing Act of 1937 (42 U.S.C. 1437aaa–
3(g)) is repealed.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall be effective with respect to any plan for the demolition,
disposition, or conversion to homeownership of public housing
that is approved by the Secretary after September 30, 1995.
(c) TREATMENT OF FROST-LELAND PROVISIONS.—Notwithstand-
ing any other provision of law, on and after the date of the enact-
ment of this Act, the public housing projects described in section
H. R. 4194—114
415 of the Department of Housing and Urban Development—
Independent Agencies Appropriations Act, 1988 (Public Law 100–
202; 101 Stat. 1329–213), as in effect on April 25, 1996, shall
be eligible for demolition under—
(1) section 9 of the United States Housing Act of 1937,
as amended by this Act; and
(2) section 14 of the United States Housing Act of 1937,
as that section existed on the day before the date of the enact-
ment of this Act.
(c) APPLICABILITY.—This section shall take effect on, and the
amendments made by this section are made on, and shall apply
beginning upon, the date of the enactment of this Act.
SEC. 532. RESIDENT COUNCILS AND RESIDENT MANAGEMENT COR-
PORATIONS.
(a) RESIDENT MANAGEMENT.—Section 20 of the United States
Housing Act of 1937 (42 U.S.C. 1437r) is amended—
(1) in subsection (b)(4), by inserting after ‘‘materials’’ the
following: ‘‘, rent determination, community service require-
ments,’’;
(2) by striking subsection (c) and inserting the following
new subsection:
‘‘(c) ASSISTANCE AMOUNTS.—A contract under this section for
management of a public housing project by a resident management
corporation shall provide for—
‘‘(1) the public housing agency to provide a portion of the
assistance to agency from the Capital and Operating Funds
to the resident management corporation in accordance with
subsection (e) for purposes of operating the public housing
project covered by the contract and performing such other
eligible activities with respect to the project as may be provided
under the contract;
‘‘(2) the amount of income expected to be derived from
the project itself (from sources such as rents and charges);
‘‘(3) the amount of income to be provided to the project
from the other sources of income of the public housing agency
(such as interest income, administrative fees, and rents); and
‘‘(4) any income generated by a resident management cor-
poration of a public housing project that exceeds the income
estimated under the contract shall be used for eligible activities
under subsections (d)(1) and (e)(1) of section 9.’’;
(3) in subsection (d), by striking paragraph (3) and
redesignating paragraph (4) as paragraph (3);
(4) in subsection (e)—
(A) by redesignating paragraph (4) as paragraph (6);
(B) by striking the subsection designation and heading
and all that follows through the end of paragraph (3)
and inserting the following:
‘‘(e) DIRECT PROVISION
OF OPERATING
AND CAPITAL ASSIST-
ANCE.—
‘‘(1) IN
GENERAL.—The Secretary shall directly provide
assistance from the Operating and Capital Funds to a resident
management corporation managing a public housing develop-
ment pursuant to a contract under this section, but only if—
‘‘(A) the resident management corporation petitions the
Secretary for the release of the funds;
H. R. 4194—115
‘‘(B) the contract provides for the resident management
corporation to assume the primary management respon-
sibilities of the public housing agency; and
‘‘(C) the Secretary determines that the corporation has
the capability to effectively discharge such responsibilities.
‘‘(2) USE OF ASSISTANCE.—Any assistance from the Operat-
ing and Capital Funds provided to a resident management
corporation pursuant to this subsection shall be used for pur-
poses of operating the public housing developments of the
agency and performing such other eligible activities with
respect to public housing as may be provided under the contract.
‘‘(3) RESPONSIBILITY OF PUBLIC HOUSING AGENCY.—If the
Secretary provides direct funding to a resident management
corporation under this subsection, the public housing agency
shall not be responsible for the actions of the resident manage-
ment corporation.
‘‘(4) CALCULATION OF OPERATING FUND ALLOCATION.—Not-
withstanding any provision of section 9 or any regulation under
such section, and subject to the exception provided in paragraph
(3), the portion of the amount received by a public housing
agency under section 9 that is due to an allocation from the
Operating Fund and that is allocated to a public housing project
managed by a resident management corporation shall not be
less than the public housing agency per unit monthly amount
provided in the previous year as determined on an individual
project basis.
‘‘(5) CALCULATION OF TOTAL INCOME.—
‘‘(A) Subject to subparagraph (B), the amount of funds
provided by a public housing agency to a public housing
project managed by a resident management corporation
may not be reduced during the 3-year period beginning
on the date of the enactment of the Housing and Commu-
nity Development Act of 1987 or on any later date on
which a resident management corporation is first estab-
lished for the project.
‘‘(B) If the total income of a public housing agency
(including any amounts from the Capital or Operating
Funds provided to the public housing agency under section
9) is reduced or increased, the income provided by the
public housing agency to a public housing project managed
by a resident management corporation shall be reduced
or increased in proportion to the reduction or increase
in the total income of the public housing agency, except
that any reduction in amounts from the Operating Fund
that occurs as a result of fraud, waste, or mismanagement
by the public housing agency shall not affect the funds
provided to the resident management corporation.’’; and
(C) in paragraph (6)(A) (as so redesignated by subpara-
graph (A) of this paragraph), by striking ‘‘the operating
subsidies provided to’’ and inserting ‘‘the allocations from
the Operating Fund for’’; and
(5) by striking subsections (f ) and (g).
(b) PURCHASE BY RESIDENT MANAGEMENT CORPORATIONS.—Sec-
tion 21 of the United States Housing Act of 1937 (42 U.S.C. 1437s)
is amended—
(1) in subsection (a)—
H. R. 4194—116
(A) in paragraph (2)(A), by striking ‘‘comprehensive
improvement assistance under section 14’’ and inserting
‘‘assistance from the Capital Fund’’;
(B) in paragraph (3)(A)(v), by striking ‘‘minimum safety
and livability standards applicable under section 14’’ and
inserting ‘‘housing quality standards applicable under sec-
tion 6(f )’’;
(C) in paragraph (7)—
(i) by striking ‘‘ANNUAL
CONTRIBUTIONS’’ and
inserting ‘‘CAPITAL AND OPERATING ASSISTANCE’’;
(ii) in the first sentence, by striking ‘‘pay annual
contributions’’ and inserting ‘‘provide assistance under
section 9’’; and
(iii) by striking the last sentence and inserting
the following: ‘‘Such assistance may not exceed the
allocation for the project under section 9.’’; and
(D) in paragraph (8), by striking ‘‘OPERATING
SUB-
SIDIES.—Operating subsidies’’ and inserting ‘‘OPERATING
FUND ALLOCATION.—Amounts from the Operating Fund’’;
(2) in subsection (b)(3)—
(A) by striking ‘‘a certificate under section 8(b)(1) or
a housing voucher’’ and inserting ‘‘tenant-based assistance’’;
and
(B) by striking ‘‘fair market rent for such certificate’’
and inserting ‘‘payment standard for such assistance’’; and
(3) in subsection (d), by inserting ‘‘, as in effect before
the effective date under section 503(a) of the Quality Housing
and Work Responsibility Act of 1998,’’ after ‘‘section 6(c)(4)(D)’’.
SEC. 533. CONVERSION OF PUBLIC HOUSING TO VOUCHERS; REPEAL
OF FAMILY INVESTMENT CENTERS.
(a) IN GENERAL.—Section 22 of the United States Housing
Act of 1937 (42 U.S.C. 1437t) is amended to read as follows:
‘‘SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS.
‘‘(a) AUTHORITY.—A public housing agency may convert any
public housing project (or portion thereof) owned by the public
housing agency to tenant-based assistance, but only in accordance
with the requirements of this section.
‘‘(b) CONVERSION ASSESSMENT.—
‘‘(1) IN GENERAL.—To convert public housing under this
section, a public housing agency shall conduct an assessment
of the public housing that includes—
‘‘(A) a cost analysis that demonstrates whether or not
the cost (both on a net present value basis and in terms
of new budget authority requirements) of providing tenant-
based assistance under section 8 for the same families
in substantially similar dwellings over the same period
of time is less expensive than continuing public housing
assistance in the public housing project for the remaining
useful life of the project;
‘‘(B) an analysis of the market value of the public
housing project both before and after rehabilitation, and
before and after conversion;
‘‘(C) an analysis of the rental market conditions with
respect to the likely success of the use of tenant-based
assistance under section 8 in that market for the specific
H. R. 4194—117
residents of the public housing project, including an assess-
ment of the availability of decent and safe dwellings renting
at or below the payment standard established for tenant-
based assistance under section 8 by the agency;
‘‘(D) the impact of the conversion to tenant-based
assistance under this section on the neighborhood in which
the public housing project is located; and
‘‘(E) a plan that identifies actions, if any, that the
public housing agency would take with regard to converting
any public housing project or projects (or portions thereof)
of the public housing agency to tenant-based assistance.
‘‘(2) TIMING.—Not later than 2 years after the effective
date under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998, each public housing agency shall
conduct an assessment under paragraph (1) or (3) of the status
of each public housing project owned by such agency and shall
submit to the Secretary such assessment. A public housing
agency may otherwise undertake an assessment under this
subsection at any time and for any public housing project
(or portion thereof) owned by the agency. A public housing
agency may update a previously conducted assessment for a
project (or portion thereof) for purposes of compliance with
the one-year limitation under subsection (c).
‘‘(3) STREAMLINED ASSESSMENT.—At the discretion of the
Secretary or at the request of a public housing agency, the
Secretary may waive any or all of the requirements of para-
graph (1) or (3) or otherwise require a streamlined assessment
with respect to any public housing project or class of public
housing projects.
‘‘(c) CRITERIA FOR IMPLEMENTATION OF CONVERSION PLAN.—
A public housing agency may convert a public housing project
(or portion thereof) owned by the agency to tenant-based assistance
only pursuant to a conversion assessment under subsection (b)
that one year and that demonstrates that the conversion—
‘‘(1) will not be more expensive than continuing to operate
the public housing project (or portion thereof) as public housing;
‘‘(2) will principally benefit the residents of the public hous-
ing project (or portion thereof) to be converted, the public
housing agency, and the community; and
‘‘(3) will not adversely affect the availability of affordable
housing in such community.
‘‘(d) CONVERSION PLAN REQUIREMENT.—A public housing project
may be converted under this section to tenant-based assistance
only as provided in a conversion plan under this subsection, which
has not been disapproved by the Secretary pursuant to subsection
(e). Each conversion plan shall—
‘‘(1) be developed by the public housing agency, in consulta-
tion with the appropriate public officials, with significant
participation by the residents of the project (or portion thereof)
to be converted;
‘‘(2) be consistent with and part of the public housing
agency plan;
‘‘(3) describe the conversion and future use or disposition
of the project (or portion thereof) and include an impact analysis
on the affected community;
‘‘(4) provide that the public housing agency shall—