I 
114TH CONGRESS 
2D SESSION 
H. R. 5401 
To amend the Fair Housing Act, to prohibit discrimination based on use 
of section 8 vouchers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 7, 2016 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committees on Ways 
and Means and the Judiciary, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To amend the Fair Housing Act, to prohibit discrimination 
based on use of section 8 vouchers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Landlord Account-
ability Act of 2016’’. 
SEC. 2. CONGRESSIONAL FINDINGS. 
The Congress finds that— 
(1) the United States is in the midst of a hous-
ing crisis, as the homeownership rate has declined to 
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63.5 percent, a 30-year low, while rental demand 
has increased and pushed vacancy rates down to 7 
percent; 
(2) the current average rental asking price is 
$870, up 23 percent since the end of the recession 
6 years ago; 
(3) families and individuals that pay more than 
30 percent of their income for housing are consid-
ered cost-burdened and have difficultly affording 
other necessities like food, clothing, transportation, 
and medical care; 
(4) over half of all renters, approximately 20.8 
million households, are cost-burdened; 
(5) over 80 percent of low-income households, 
those with incomes of under $15,000 per year, are 
severely cost-burdened; 
(6) the current rental environment makes rental 
assistance under the Section 8 Housing Choice 
Voucher Program of the Department of Housing 
and Urban Development vital to finding affordable 
housing for many families; 
(7) the Section 8 program helps approximately 
2.2 million low-income families, the elderly, and the 
disabled afford respectable housing in the private 
market; 
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(8) the Section 8 Housing Choice Voucher Pro-
gram assists our Nation’s most economically vulner-
able families—the average annual gross income of a 
family assisted under the program is only $13,568; 
(9) many of the individuals and families as-
sisted by the Section 8 Program would be at risk of 
homelessness without the program; 
(10) the Section 8 program caps the rental cost 
for eligible families and individuals at 30 percent of 
their incomes, which frees up their limited resources 
to pay for life’s other necessities; 
(11) although families and individuals assisted 
under the program are free to choose any available 
housing in their community, that has not prevented 
landlords from discriminating against low-income 
tenants; 
(12) as a result, the Section 8 program has 
only a 60-percent success rate in assisting voucher- 
holders find affordable housing; 
(13) given the strong connection between the 
classes currently protected under the Fair Housing 
Act, including race, gender, those with disabilities, 
familial status, and economic status, establishing a 
ban on income discrimination would further the 
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goals of the Fair Housing Act and better protect 
these families and individuals; 
(14) for many years, landlords have relied on 
the Section 8 housing program to provide affordable 
housing to tenants in low-income areas, but as more 
urban areas have undergone rapid revitalization, 
property values have risen dramatically; 
(15) as a result of rising property values, there 
have been serious allegations that landlords are in-
tentionally allowing their federally subsidized units 
to deteriorate in an effort to drive voucher-users out 
and convert units to higher, market-rate apartments; 
(16) in addition, landlords are failing to meet 
the housing quality standards of the Department of 
Housing and Urban Development and improperly 
demanding rent in excess of 30 percent of voucher- 
holders’ incomes; and 
(17) therefore, it is necessary to ban discrimi-
nation against source of income, discourage inten-
tional acts to disqualify dwelling units from Federal 
housing programs, and encourage proper mainte-
nance of multifamily house in order to revive the 
Section 8 rental assistance program, affirmatively 
further fair housing policies, and address our na-
tional housing affordability crisis. 
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SEC. 3. PROHIBITION OF DISCRIMINATION ON ACCOUNT OF 
USE OF SECTION 8 VOUCHERS. 
(a) IN GENERAL.—Section 804 of the Fair Housing 
Act (42 U.S.C. 3604) is amended by inserting after para-
graph (f) the following new paragraph: 
‘‘(g) To discriminate in connection with the 
rental of a dwelling because the tenant or prospec-
tive tenant is the holder of a housing voucher.’’. 
(b) DEFINITION.—Section 802 of the Fair Housing 
Act (42 U.S.C. 3602) is amended by adding at the end 
the following new paragraph: 
‘‘(p) ‘Holder of a housing voucher’ means a 
holder of a voucher for rental assistance under sub-
section (o) or (t) of section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f).’’. 
SEC. 4. PENALTIES FOR INTENTIONAL ACTS TO DIS-
QUALIFY 
DWELLING 
UNITS 
FROM 
ELIGI-
BILITY FOR FEDERAL HOUSING PROGRAMS. 
(a) VIOLATION.—An owner of a dwelling unit that 
is available for rental may not take any action, or fail to 
take any action, with the intent to make the dwelling unit 
insufficiently decent, safe, sanitary, or inhabitable, or 
cause such other physical condition, so that the dwelling 
does not qualify for assistance within the jurisdiction of 
the Department (as such term is defined in section 102(m) 
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of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545(m))). 
(b) CIVIL MONEY PENALTIES.—Any person who is 
found by the Secretary of Housing and Urban Develop-
ment, after notice and opportunity for a hearing in accord-
ance with section 554 of title 5, United States Code, to 
have violated subsection (a) shall be assessed a civil money 
penalty by the Secretary in the amount of $100,000 for 
each such action or failure to act. 
(c) LIABILITY TO TENANTS.—A tenant who, at the 
time of a violation under subsection (a), occupies the 
dwelling unit to which the violation relates may bring a 
civil action for damages in the following amounts: 
(1) $50,000 for each action or failure to act in 
violation of subsection (a). 
(2) Any actual damages and costs to the tenant 
resulting from the violation, including any costs of 
finding a replacement dwelling unit. 
SEC. 5. RESOURCES FOR RECEIVING AND RESOLVING COM-
PLAINTS REGARDING MULTIFAMILY HOUS-
ING PROJECTS. 
(a) INCREASED HUD STAFFING FOR COMPLAINT 
CALL STAFFING.— 
(1) 
INCREASED
STAFFING.—The 
Secretary 
shall, not later than the expiration of the 180-day 
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period beginning on the date of the enactment of 
this Act, increase the staffing level for the Multi-
family Housing Complaint Line established and op-
erated by the Multifamily Housing Clearinghouse of 
the Department so that it is sufficient and appro-
priate to handle the volume of calls received without 
unreasonable waiting periods. 
(2) AUTHORIZATION OF APPROPRIATIONS.—For 
carrying out paragraph (1), there are authorized to 
be appropriated to the Secretary such sums as may 
be necessary for each fiscal year for carrying out 
paragraph (1). 
(b) MULTIFAMILY HOUSING COMPLAINT RESOLU-
TION PROGRAM.— 
(1) IN
GENERAL.—The Secretary shall carry 
out a Multifamily Housing Complaint Resolution 
Program for receiving complaints about multifamily 
housing projects from voucher users who reside in 
such projects and local governmental officials, under 
which the Secretary shall provide for— 
(A) gathering of information regarding 
each such complaint; 
(B) determining whether there is a likeli-
hood that there is any violation of the require-
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ments under the rental assistance voucher pro-
gram relating to such complaint; 
(C) informing the owner or landlord of the 
complaint and any violations; and 
(D) attempting to resolve the complaint 
and violations, including through mediation. 
(2) RESOLUTION.—The Secretary may provide 
for carrying out the activities required under para-
graph (1)(D) through regional or field offices of the 
Department or through such local or private organi-
zations or agencies as the Secretary determines have 
appropriate capabilities and expertise to carry out 
such activities. 
(3) FUNDING.—Amounts made available for ad-
ministrative fees under section 8(q) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(q)) 
shall be available for carrying out the program 
under this subsection. 
(4) REGULATIONS.—Not later than the expira-
tion of the 12-month period beginning on the date 
of the enactment of this Act, the Secretary shall 
issue any regulations necessary to establish the Pro-
gram required under this subsection. 
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SEC. 6. HUD DISCLOSURE OF LANDLORD COMPLAINTS. 
(a) PUBLIC DISCLOSURE.—The Secretary shall pub-
licly disclose, on a website of the Department and on a 
timely basis, information regarding each complaint re-
ceived under the Program establish pursuant to section 
5(b), which shall include for each such complaint— 
(1) the nature of the complaint; 
(2) the date on which such complaint was sub-
mitted to the Department; 
(3) the disposition, as of the time of such dis-
closure, of such complaint; and 
(4) information identifying the multifamily 
housing project to which such complaint relates. 
(b) REPORTS
TO CONGRESS.—The Secretary of 
Housing and Urban Development shall submit a report 
annually to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate summarizing 
the complaints described in subsection (a) that were re-
ceived by the Department during the preceding year and 
describing the disposition to such date of such complaints. 
SEC. 7. TAX CREDIT INCENTIVE FOR MAINTENANCE OF 
MULTIFAMILY 
HOUSING 
WITH 
VOUCHER 
USER TENANTS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. LOW-INCOME HOUSING MAINTENANCE CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible landlord, the low-income housing 
maintenance credit determined under this section for the 
taxable year is an amount equal to the amount of the tax-
payer’s low-income housing maintenance expenses for such 
taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) PER
UNIT
LIMITATION.—The credit al-
lowed under subsection (a) with respect to any tax-
payer for any taxable year shall not exceed the prod-
uct of $2,500 multiplied by the number of low-in-
come housing units owned by the taxpayer. 
‘‘(2) PER BUILDING LIMITATION.—The credit 
allowed under subsection (a) with respect to any tax-
payer for any taxable year shall not exceed the prod-
uct of $100,000 multiplied by the number of eligible 
low-income housing projects owned by the taxpayer. 
‘‘(3) PER TAXPAYER LIMITATION.—The credit 
allowed under subsection (a) with respect to any tax-
payer for any taxable year shall not exceed 
$500,000. 
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‘‘(c) ELIGIBLE LANDLORD.—For purposes of this 
section, the term ‘eligible landlord’ means any taxpayer 
for any taxable year if— 
‘‘(1) such taxpayer owns one or more eligible 
low-income housing projects during such taxable 
year, and 
‘‘(2) either— 
‘‘(A) each complaint that is filed, under 
the program under section 5(b) of the Landlord 
Accountability Act of 2016, during such taxable 
year with respect to a dwelling unit in an eligi-
ble low-income housing project owned by such 
taxpayer has been determined by the Secretary 
of Housing and Urban Development to have 
been remedied not later than the date which is 
30 days after the date on which such complaint 
is so filed, or 
‘‘(B) no such complaint has been filed with 
respect to such a dwelling unit in such a hous-
ing project owned by such taxpayer during such 
taxable year. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) LOW-INCOME HOUSING MAINTENANCE EX-
PENSES.—The term ‘low-income housing mainte-
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nance expenses’ means the aggregate amount paid 
or incurred by the taxpayer during the taxable year 
for maintenance or improvement of low-income hous-
ing units. 
‘‘(2) 
ELIGIBLE
LOW-INCOME
HOUSING 
PROJECT.—The term ‘eligible low-income housing 
project’ means, with respect to a taxable year, a 
housing project— 
‘‘(A) that consists of five or more dwelling 
units at least one of which was occupied during 
such year by a family who rented the dwelling 
unit using a voucher for rental assistance under 
section 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)); and 
‘‘(B) with respect to which the eligible 
landlord has entered into such binding agree-
ments as the Secretary of Housing and Urban 
Development shall require to ensure that rents 
for dwelling units in the project do not, at any 
time after the taxable year in which a low-in-
come housing maintenance credit under this 
section is allowable, exceed the applicable fair 
market rental under section 8(c) of the United 
States Housing Act of 1937 (42 U.S.C. 
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1437f(c)) for the market area in which the 
project is located. 
‘‘(3) LOW-INCOME HOUSING UNIT.—The term 
‘low-income housing unit’ means a dwelling unit 
within an eligible low-income housing project. 
‘‘(e) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52 
or subsection (m) or (o) of section 414 shall be treated 
as one person for purposes of applying this section. The 
credit determined under subsection (a) (after application 
of subsection (b)) shall be allocated among such persons 
in such manner as the Secretary may prescribe. 
‘‘(f) TERMINATION.—No credit shall be determined 
under this section with respect to any taxable year begin-
ning after December 31, 2026.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(37) in the case of an eligible landlord (as de-
fined in section 45S(c)), the low-income housing 
maintenance credit determined under section 45S.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
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of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45S. Low-income housing maintenance credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 8. PUBLIC DISPLAY OF TENANT’S RIGHTS AND COM-
PLAINT LINE. 
(a) REQUIRED DISPLAY.—An owner of a multifamily 
housing project in which three or more voucher users re-
side shall display, at all times and in clear and conspicuous 
location on each floor of such project that contains any 
dwelling unit, a written notice that includes— 
(1) a statement describing the rights under 
Federal law afforded to tenants of the project who 
are voucher users; 
(2) the phone number for the Multifamily 
Housing Complaint Line established and operated by 
the Multifamily Housing Clearinghouse; and 
(3) the phone number for a regional or local of-
fice of the Department which can provide tenants 
additional information regarding State and local re-
sources for tenants. 
(b) CIVIL MONEY PENALTY.—Any person who is 
found by the Secretary of Housing and Urban Develop-
ment, after notice and opportunity for a hearing in accord-
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ance with section 554 of title 5, United States Code, to 
have failed to make a good faith effort to display notice 
complying with subsection (a) may be assessed a civil 
money penalty by the Secretary in the amount of $500 
for each day of each such failure, except that the Secretary 
shall waive such penalty in any case in which an owner 
cures such violation within the 5-day period beginning 
upon notice by the Secretary of such violation. 
(c) MODEL NOTICE.— 
(1) DEVELOPMENT.—Not later than the expira-
tion of the 12-month period beginning on the date 
of the enactment of this Act, the Secretary shall de-
velop and publish in the Federal Register a model 
notice that fulfills the requirements under subsection 
(a)(1). 
(2) AVAILABILITY.—The Secretary shall make 
copies of the notice developed pursuant to paragraph 
(1) available, upon request, to owners of multifamily 
housing projects. 
(d) APPLICABILITY.—Subsections (a) and (b) shall 
apply beginning upon the expiration of the 60-day period 
that begins on the date that the Secretary publishes notice 
in the Federal Register pursuant to subsection (c)(1). 
(e) REGULATIONS.—Not later than the expiration of 
the 180-day period beginning on the date of the enactment 
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of this Act, the Secretary shall issue regulations to carry 
out this section. 
SEC. 9. GRANTS FOR TENANT HARASSMENT PREVENTION 
PROGRAMS. 
(a) AUTHORITY.—The Secretary may, to the extent 
amounts are made available for grants under this section, 
make grants to States, Indian tribes, units of local govern-
ment, and nonprofit, nongovernmental affordable housing 
organizations to develop, expand, or assist tenant harass-
ment prevention programs. 
(b) TENANT
HARASSMENT
PREVENTION
PRO-
GRAM.—For purposes of this section, the term ‘‘tenant 
harassment prevention program’’ means any program or 
activities designed to protect, assist, or educate tenants 
of residential rental dwelling units regarding harassing or 
illegal behavior by their landlords intended to force the 
tenant to vacate the dwelling unit or surrender any of 
their rights as tenants. Such term includes programs and 
activities providing legal assistance, counseling, education, 
intervention, complaint processes. 
(c) FEDERAL SHARE.—The amount of a grant under 
this section for any tenant harassment prevention pro-
gram may not exceed 75 percent of the total costs of the 
program or activities to be carried out, including adminis-
trative costs. 
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(d) APPLICATIONS.—The Secretary shall provide for 
eligible entities specified in subsection (a) to apply for 
grants under this section, which applications shall describe 
the tenant harassment prevention program to be assisted 
with grant amounts, the activities to be carried out under 
the program, and the projected costs of such activities; 
(e) SELECTION.—The Secretary shall select appli-
cants to receive grants based on criteria that the Secretary 
shall establish. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $25,000,000 for each 
of fiscal years 2017 through 2021 for grants under this 
section. 
SEC. 10. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) MULTIFAMILY
HOUSING
PROJECT.—The 
term ‘‘multifamily housing project’’ means a housing 
project consisting of five or more dwelling units. 
(2) RENTAL ASSISTANCE VOUCHER .—The term 
‘‘rental assistance voucher’’means a voucher for 
rental assistance made available under section 8(o) 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)). 
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(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(4) VOUCHER USER.—The term ‘‘voucher user’’ 
means a family who is renting a dwelling unit using 
a rental assistance voucher. 
SEC. 11. REGULATIONS. 
The Secretary may issue any regulations necessary 
to carry out this Act. 
Æ 
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