H. R. 3700—10 
(B) in subparagraph (A)— 
(i) by striking ‘‘the provisions of’’ and inserting 
‘‘paragraphs (1), (6), and (7) of section 3(a) and to’’; 
and 
(ii) by striking ‘‘and shall be conducted’’ and all 
that follows through the end of the subparagraph and 
inserting a period; and 
(C) in subparagraph (B), by striking the second sen-
tence. 
(e) ENHANCED VOUCHER PROGRAM.—Section 8(t)(1)(D) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is 
amended by striking ‘‘income’’ each place such term appears and 
inserting ‘‘annual adjusted income’’. 
(f) PROJECT-BASED HOUSING.—Paragraph (3) of section 8(c) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is 
amended by striking the last sentence. 
(g) IMPACT ON PUBLIC HOUSING REVENUES.— 
(1) ADJUSTMENTS TO OPERATING FORMULA.—If the Secretary 
of Housing and Urban Development determines that the 
application of subsections (a) through (e) of this section results 
in a material and disproportionate reduction in the rental 
income of certain public housing agencies during the first year 
in which such subsections are implemented, the Secretary may 
make appropriate adjustments in the formula income for such 
year of those agencies experiencing such a reduction. 
(2) HUD REPORTS ON REVENUE AND COST IMPACT.—In each 
of the first two years after the first year in which subsections 
(a) through (e) are implemented, the Secretary of Housing 
and Urban Development shall submit a report to Congress 
identifying and calculating the impact of changes made by 
such subsections and section 104 of this Act on the revenues 
and costs of operating public housing units, the voucher pro-
gram for rental assistance under section 8 of the United States 
Housing Act of 1937, and the program under such section 
8 for project-based rental assistance. If such report identifies 
a material reduction in the net income of public housing agen-
cies nationwide or a material increase in the costs of funding 
the voucher program or the project-based assistance program, 
the Secretary shall include in such report recommendations 
for legislative changes to reduce or eliminate such a reduction. 
(h) EFFECTIVE DATE.—The Secretary of Housing and Urban 
Development shall issue notice or regulations to implement this 
section and this section shall take effect after such issuance, except 
that this section may only take effect upon the commencement 
of a calendar year. 
(i) STUDY
ON IMPACT
ON ELDERLY
AND DISABLED FAMILIES 
OF DECREASED DEDUCTIONS IN INCOME.— 
(1) STUDY.—The Secretary of Housing and Urban Develop-
ment shall conduct a study to determine the impacts, on rents 
paid by elderly and disabled individuals and families assisted 
under the section 8 rental assistance and public housing pro-
grams under the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), of any decreases in the amounts of any deductions 
from income (for purposes of section 3(b) of such Act (42 U.S.C. 
1437a(b))), as compared to such deductions under such section 
3(b) as in effect before the effectiveness of this section, resulting 
from the amendments made by this section.
H. R. 3700—11 
(2) REPORT.—The Secretary shall submit to the Congress 
a report setting forth the results of the study conducted pursu-
ant to paragraph (1) not later than the expiration of the 12- 
month period beginning on the date of the enactment of this 
Act. 
(3) EFFECTIVE
DATE.—Notwithstanding subsection (h) of 
this section, this subsection shall take effect on the date of 
the enactment of this Act. 
SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER- 
INCOME FAMILIES. 
Subsection (a) of section 16 of the United States Housing Act 
of 1937 (42 U.S.C. 1437n(a)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) LIMITATIONS
ON
TENANCY
FOR
OVER-INCOME
FAMI-
LIES.— 
‘‘(A) LIMITATIONS.—Except as provided in subpara-
graph (D), in the case of any family residing in a dwelling 
unit of public housing whose income for the most recent 
two consecutive years, as determined pursuant to income 
reviews conducted pursuant to section 3(a)(6), has exceeded 
the applicable income limitation under subparagraph (C), 
the public housing agency shall— 
‘‘(i) notwithstanding any other provision of this 
Act, charge such family as monthly rent for the unit 
occupied by such family an amount equal to the greater 
of— 
‘‘(I) the applicable fair market rental estab-
lished under section 8(c) for a dwelling unit in 
the same market area of the same size; or 
‘‘(II) the amount of the monthly subsidy pro-
vided under this Act for the dwelling unit, which 
shall include any amounts from the Operating 
Fund and Capital Fund under section 9 used for 
the unit, as determined by the agency in accord-
ance with regulations that the Secretary shall 
issue to carry out this subclause; or 
‘‘(ii) terminate the tenancy of such family in public 
housing not later than 6 months after the income deter-
mination described in subparagraph (A). 
‘‘(B) NOTICE.—In the case of any family residing in 
a dwelling unit of public housing whose income for a year 
has exceeded the applicable income limitation under 
subparagraph (C), upon the conclusion of such year the 
public housing agency shall provide written notice to such 
family of the requirements under subparagraph (A). 
‘‘(C) INCOME LIMITATION.—The income limitation under 
this subparagraph shall be 120 percent of the median 
income for the area, as determined by the Secretary with 
adjustments for smaller and larger families, except that 
the Secretary may establish income limitations higher or 
lower than 120 percent of such median income on the 
basis of the Secretary’s findings that such variations are 
necessary because of prevailing levels of construction costs, 
or unusually high or low family incomes, vacancy rates, 
or rental costs.
H. R. 3700—12 
‘‘(D) EXCEPTION.—Subparagraph (A) shall not apply 
to a family occupying a dwelling unit in public housing 
pursuant to paragraph (5) of section 3(a) (42 U.S.C. 
1437a(a)(5)). 
‘‘(E) REPORTS ON OVER-INCOME FAMILIES AND WAITING 
LISTS.—The Secretary shall require that each public 
housing agency shall— 
‘‘(i) submit a report annually, in a format required 
by the Secretary, that specifies— 
‘‘(I) the number of families residing, as of the 
end of the year for which the report is submitted, 
in public housing administered by the agency who 
had incomes exceeding the applicable income 
limitation under subparagraph (C); and 
‘‘(II) the number of families, as of the end 
of such year, on the waiting lists for admission 
to public housing projects of the agency; and 
‘‘(ii) make the information reported pursuant to 
clause (i) publicly available.’’. 
SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON 
ASSETS. 
Section 16 of the United States Housing Act of 1937 (42 U.S.C. 
1437n) is amended by inserting after subsection (d) the following 
new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to paragraph (3) and 
notwithstanding any other provision of this Act, a dwelling 
unit assisted under this Act may not be rented and assistance 
under this Act may not be provided, either initially or at 
each recertification of family income, to any family— 
‘‘(A) whose net family assets exceed $100,000, as such 
amount is adjusted annually by applying an inflationary 
factor as the Secretary considers appropriate; or 
‘‘(B) who has a present ownership interest in, a legal 
right to reside in, and the effective legal authority to sell, 
real property that is suitable for occupancy by the family 
as a residence, except that the prohibition under this 
subparagraph shall not apply to— 
‘‘(i) any property for which the family is receiving 
assistance under subsection (y) or (o)(12) of section 
8 of this Act; 
‘‘(ii) any person that is a victim of domestic 
violence; or 
‘‘(iii) any family that is offering such property for 
sale. 
‘‘(2) NET FAMILY ASSETS.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
term ‘net family assets’ means, for all members of the 
household, the net cash value of all assets after deducting 
reasonable costs that would be incurred in disposing of 
real property, savings, stocks, bonds, and other forms of 
capital investment. Such term does not include interests 
in Indian trust land, equity in property for which the 
family is receiving assistance under subsection (y) or (o)(12) 
of section 8, equity accounts in homeownership programs
H. R. 3700—13 
of the Department of Housing and Urban Development, 
or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not include— 
‘‘(i) the value of personal property, except for items 
of personal property of significant value, as the Sec-
retary may establish or the public housing agency may 
determine; 
‘‘(ii) the value of any retirement account; 
‘‘(iii) real property for which the family does not 
have the effective legal authority necessary to sell such 
property; 
‘‘(iv) any amounts recovered in any civil action 
or settlement based on a claim of malpractice, neg-
ligence, or other breach of duty owed to a member 
of the family and arising out of law, that resulted 
in a member of the family being disabled; 
‘‘(v) the value of any Coverdell education savings 
account under section 530 of the Internal Revenue 
Code of 1986 or any qualified tuition program under 
section 529 of such Code; and 
‘‘(vi) such other exclusions as the Secretary may 
establish. 
‘‘(C) TRUST FUNDS.—In cases in which a trust fund 
has been established and the trust is not revocable by, 
or under the control of, any member of the family or house-
hold, the value of the trust fund shall not be considered 
an asset of a family if the fund continues to be held in 
trust. Any income distributed from the trust fund shall 
be considered income for purposes of section 3(b) and any 
calculations of annual family income, except in the case 
of medical expenses for a minor. 
‘‘(3) SELF-CERTIFICATION.— 
‘‘(A) NET
FAMILY
ASSETS.—A public housing agency 
or owner may determine the net assets of a family, for 
purposes of this section, based on a certification by the 
family that the net assets of such family do not exceed 
$50,000, as such amount is adjusted annually by applying 
an inflationary factor as the Secretary considers appro-
priate. 
‘‘(B) NO
CURRENT
REAL
PROPERTY
OWNERSHIP.—A 
public housing agency or owner may determine compliance 
with paragraph (1)(B) based on a certification by the family 
that such family does not have any current ownership 
interest in any real property at the time the agency or 
owner reviews the family’s income. 
‘‘(C) 
STANDARDIZED
FORMS.—The 
Secretary 
may 
develop standardized forms for the certifications referred 
to in subparagraphs (A) and (B). 
‘‘(4) COMPLIANCE FOR PUBLIC HOUSING DWELLING UNITS.— 
When recertifying family income with respect to families 
residing in public housing dwelling units, a public housing 
agency may, in the discretion of the agency and only pursuant 
to a policy that is set forth in the public housing agency 
plan under section 5A for the agency, choose not to enforce 
the limitation under paragraph (1). 
‘‘(5) ENFORCEMENT.—When recertifying the income of a 
family residing in a dwelling unit assisted under this Act,