‘‘(E) the plan complies with any other cri-
teria that the Secretary may establish.
‘‘(3) OBLIGATION LIMITS.—
‘‘(A) PER PHA.—The aggregate outstand-
ing principal amount leveraged under this sub-
section by a public housing agency may not at
any time exceed 5 times the amount of the most
recent grant for a fiscal year provided under
this section for comprehensive modernization.
‘‘(B) FOR ALL PHAS.—The aggregate out-
standing principal amount leveraged under this
subsection by all public housing agencies may
not, 
in 
any 
single 
fiscal 
year, 
exceed
$2,000,000,000.
‘‘(4) USE OF COMPREHENSIVE MODERNIZATION
GRANTS
AND
OPERATING
REVENUES.—Notwith-
standing any other provision of this title, a public
housing agency for which a plan is approved under
this subsection may use amounts provided under this
section to the agency for comprehensive moderniza-
tion and amounts provided under section 9 to the
agency for operating subsidies (including program
income derived therefrom) for the payment of prin-
cipal, interest, and fees due on any loans obtained
pursuant to the plan.
‘‘(5) REPORTS.—The Secretary shall submit a
report to the Congress annually regarding the activi-
ties under plans for leveraging approved under this
subsection and the status of loans, financing, and in-
vestments obtained under such plans.’’.
SEC. 111. DEMOLITION AND DISPOSITION OF PUBLIC
HOUSING.
Section 18 of the United States Housing Act of 1937
(42 U.S.C. 1437p) is amended to read as follows:
‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING
‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec-
retary may approve an application by a public housing
agency to demolish or dispose of a public housing project
or a portion of a public housing project only if the Sec-
retary has determined that—
‘‘(1) in the case of—
‘‘(A) an application proposing demolition
of a public housing project or a portion of a
public housing project, the project or portion of
the project is obsolete as to physical condition,
location, or other factors, and it is more cost ef-
fective to replace the project or portion of the
project than to rehabilitate the project or por-
tion of the project; or
‘‘(B) an application proposing the demoli-
tion of only a portion of a project, the demoli-
tion will help to assure the remaining useful life
of the remaining portion of the project;
‘‘(2) in the case of an application proposing dis-
position of real property of a public housing agency
by sale or other transfer—
‘‘(A)(i) the property’s retention is not in
the best interests of the tenants or the public
housing agency because (I) developmental
changes in the area surrounding the project ad-
versely affect the health or safety of the tenants
or the feasible operation of the project by the
public housing agency, (II) disposition proceeds
will contribute to the acquisition, development,
or rehabilitation of other properties which will
preserve the low-income rental housing available
in the community and help to meet the low-in-
come rental needs of the community as de-
scribed in the comprehensive housing afford-
ability strategy under section 105 of the Cran-
ston-Gonzalez National Affordable Housing Act,
or (III) because of other factors which the Sec-
retary determines are consistent with the best
interests of the tenants and public housing
agency and which are not inconsistent with
other provisions of this Act; and
‘‘(ii) for property other than dwelling
units, the property is excess to the needs of a
project or the disposition is incidental to, or
does not interfere with, continued operation of
a project; and
‘‘(B) the net proceeds of the disposition
will be used for (i) the payment of development
costs for the replacement housing and for the
retirement of outstanding obligations issued to
finance original development or modernization
of the project, which, in the case of scattered-
site housing of a public housing agency, shall be
in an amount that bears the same ratio to the
total of such costs and obligations as the num-
ber of units disposed of bears to the total num-
ber of units of the project at the time of dis-
position, and (ii) to the extent that any pro-
ceeds remain after the application of proceeds
in accordance with clause (i), the provision of
housing assistance for low-income families
through such measures as modernization of low-
income housing, or the acquisition, develop-
ment, or rehabilitation of other properties to
operate as low-income housing; or
‘‘(3) in the case of an application proposing
demolition or disposition of any portion of a public
housing project, assisted at any time under section
5(j)(2)—
‘‘(A) such assistance has not been provided
for the portion of the project to be demolished
or disposed within the 10-year period ending
upon submission of the application; or
‘‘(B) the property’s retention is not in the
best interest of the tenants or the public hous-
ing agency because of changes in the area sur-
rounding the project or other extraordinary cir-
cumstances of the project, as determined by the
Secretary.
‘‘(b) TENANT INVOLVEMENT
AND REPLACEMENT
HOUSING.—The Secretary may approve an application or
furnish assistance under this section or under this Act
only if the following requirements are met:
‘‘(1) TENANT
CONSULTATION
AND
EMPLOY-
MENT.—The application from the public housing
agency—
‘‘(A) has been developed in consultation
with tenants and tenant councils, if any, who
will be affected by the demolition or disposition;
‘‘(B) includes a plan to employ public
housing tenants in demolition, construction, and
rehabilitation to the extent practicable, pursu-
ant to section 3 of the Housing and Urban De-
velopment Act of 1968; and
‘‘(C) contains a certification by appropriate
local government officials that the proposed ac-
tivity is consistent with the applicable com-
prehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National
Affordable Housing Act.
‘‘(2) RELOCATION ASSISTANCE.—All tenants to
be relocated as a result of the demolition or disposi-
tion will be provided assistance by the public housing
agency and be relocated to other decent, safe, sani-
tary, and affordable housing, which is, to the maxi-
mum extent practicable, housing of their choice, in-
cluding housing assisted under section 8 of this Act.
‘‘(3) REPLACEMENT
HOUSING.—The public
housing agency has developed a plan, including a
completion schedule, that provides for an additional
decent, safe, sanitary, and affordable dwelling unit
for each public housing dwelling unit to be demol-
ished or disposed under such application or provides
additional dwelling units sufficient to meet the needs
and demographic characteristics of the number of
applicants on the waiting list of the agency equal to
the number of units to be demolished or disposed of
which plan—
‘‘(A) provides for the provision of such ad-
ditional dwelling units through—
‘‘(i) the acquisition or development of
additional public housing dwelling units,
which may be units in housing owned (or
leased for a period to be determined by the
Secretary) by a partnership of a public
housing agency and other entity in which
the agency has a controlling interest;
‘‘(ii) the use of 15-year project-based
assistance under section 8;
‘‘(iii) in the case of an application
proposing demolition or disposition of 200
or more units, the use of tenant-based as-
sistance under section 8 having a term of
not less than 5 years;
‘‘(iv) units acquired or otherwise pro-
vided for homeownership (including cooper-
ative and condominium interests) by public
housing residents under section 5(h), sub-
title B or C of title IV of the Cranston-