H. R. 4194—118
‘‘(A) notify each family residing in a public housing
project (or portion) to be converted under the plan 90
days prior to the displacement date except in cases of
imminent threat to health or safety, consistent with any
guidelines issued by the Secretary governing such notifica-
tions, that—
‘‘(i) the public housing project (or portion) will be
removed from the inventory of the public housing
agency; and
‘‘(ii) 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;
‘‘(B) provide any necessary counseling for families dis-
placed by such action;
‘‘(C) ensure that, if the project (or portion) converted
is used as housing after such conversion, each resident
may choose to remain in their dwelling unit in the project
and use the tenant-based assistance toward rent for that
unit; and
‘‘(D) provide any actual and reasonable relocation
expenses for families displaced by the conversion; and
‘‘(5) provide that any proceeds to the agency from the
conversion will be used subject to the limitations that are
applicable under section 18(a)(5) to proceeds resulting from
the disposition or demolition of public housing.
‘‘(e) REVIEW AND APPROVAL OF CONVERSION PLANS.—The Sec-
retary shall disapprove a conversion plan only if—
‘‘(1) the plan is plainly inconsistent with the conversion
assessment for the agency developed under subsection (b);
‘‘(2) there is reliable information and data available to
the Secretary that contradicts that conversion assessment; or
‘‘(3) the plan otherwise fails to meet the requirements
of this section.
‘‘(f ) TENANT-BASED ASSISTANCE.—To the extent approved by
the Secretary, the funds used by the public housing agency to
provide tenant-based assistance under section 8 shall be added
to the annual contribution contract administered by the public
housing agency.’’.
(b) SAVINGS PROVISION.—The amendment made by subsection
(a) shall not affect any contract or other agreement entered into
under section 22 of the United States Housing Act of 1937, as
H. R. 4194—119
such section existed immediately before the effective date under
section 503(a) of the Quality Housing and Work Responsibility
Act of 1998.
SEC. 534. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO
INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.
The United States Housing Act of 1937 is amended by striking
section 25 (42 U.S.C. 1437w) and inserting the following new sec-
tion:
‘‘SEC. 25. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO
INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.
‘‘(a) AUTHORITY.—The Secretary may transfer the responsibility
and authority for management of specified housing (as such term
is defined in subsection (h)) from a public housing agency to an
eligible management entity, in accordance with the requirements
of this section, if—
‘‘(1) a request for transfer of management of such housing
is made and approved in accordance with subsection (b); and
‘‘(2) the Secretary or the public housing agency, as appro-
priate pursuant to subsection (b), determines that—
‘‘(A) due to the mismanagement of the agency, such
housing has deferred maintenance, physical deterioration,
or obsolescence of major systems and other deficiencies
in the physical plant of the project;
‘‘(B) such housing is located in an area such that the
housing is subject to recurrent vandalism and criminal
activity (including drug-related criminal activity); and
‘‘(C) the residents can demonstrate that the elements
of distress for such housing specified in subparagraphs
(A) and (B) can be remedied by an entity or entities, identi-
fied by the residents, that has or have a demonstrated
capacity to manage, with reasonable expenses for mod-
ernization.
‘‘(b) REQUEST FOR TRANSFER.—The responsibility and authority
for managing specified housing may be transferred only pursuant
to a request made by a majority vote of the residents for the
specified housing that—
‘‘(1) in the case of specified housing that is owned by
a public housing agency that is designated as a troubled agency
under section 6( j)(2)—
‘‘(A) is made to the public housing agency or the Sec-
retary; and
‘‘(B) is approved by the agency or the Secretary; or
‘‘(2) in the case of specified housing that is owned by
a public housing agency that is not designated as a troubled
agency under section 6( j)(2)—
‘‘(A) is made to and approved by the public housing
agency; or
‘‘(B) if a request is made to the agency pursuant to
subparagraph (A) and is not approved, is subsequently
made to and approved by the Secretary.
‘‘(c) CAPITAL AND OPERATING ASSISTANCE.—Pursuant to a con-
tract under subsection (d), the Secretary shall require the public
housing agency for specified housing to provide to the manager
for the housing, from any assistance from the Capital and Operating
Funds under section 9 for the agency, fair and reasonable amounts
for the housing for eligible capital and operating activities under
H. R. 4194—120
subsection (d)(1) and (e)(1) of section 9. The amount made available
under this subsection to a manager shall be determined by the
Secretary based on the share for the specified housing of the aggre-
gate amount of assistance from such Funds for the public housing
agency transferring the housing, taking into consideration the
operating and capital improvement needs of the specified housing,
the operating and capital improvement needs of the remaining
public housing units managed by the public housing agency, and
the public housing agency plan of such agency.
‘‘(d) CONTRACT BETWEEN SECRETARY AND MANAGER.—
‘‘(1) REQUIREMENTS.—Pursuant to the approval of a request
under this section for transfer of the management of specified
housing, the Secretary shall enter into a contract with the
eligible management entity.
‘‘(2) TERMS.—A contract under this subsection shall contain
provisions establishing the rights and responsibilities of the
manager with respect to the specified housing and the Secretary
and shall be consistent with the requirements of this Act
applicable to public housing projects.
‘‘(e) COMPLIANCE WITH PUBLIC HOUSING AGENCY PLAN.—A
manager of specified housing under this section shall comply with
the approved public housing agency plan applicable to the housing
and shall submit such information to the public housing agency
from which management was transferred as may be necessary
for such agency to prepare and update its public housing agency
plan.
‘‘(f ) DEMOLITION AND DISPOSITION BY MANAGER.—A manager
under this section may demolish or dispose of specified housing
only if, and in the manner, provided for in the public housing
agency plan for the agency transferring management of the housing.
‘‘(g) LIMITATION ON PHA LIABILITY.—A public housing agency
that is not a manager for specified housing shall not be liable
for any act or failure to act by a manager or resident council
for the specified housing.
‘‘(h) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
‘‘(1) ELIGIBLE
MANAGEMENT
ENTITY.—The term ‘eligible
management entity’ means, with respect to any public housing
project, any of the following entities:
‘‘(A) NONPROFIT
ORGANIZATION.—A public or private
nonprofit organization, which may—
‘‘(i) include a resident management corporation;
and
‘‘(ii) not include the public housing agency that
owns or operates the project.
‘‘(B) FOR-PROFIT ENTITY.—A for-profit entity that has
demonstrated experience in providing low-income housing.
‘‘(C) STATE OR LOCAL GOVERNMENT.—A State or local
government, including an agency or instrumentality
thereof.
‘‘(D) PUBLIC
HOUSING
AGENCY.—A public housing
agency (other than the public housing agency that owns
or operates the project).
The term does not include a resident council.
‘‘(2) MANAGER.—The term ‘manager’ means any eligible
management entity that has entered into a contract under
H. R. 4194—121
this section with the Secretary for the management of specified
housing.
‘‘(3) NONPROFIT.—The term ‘nonprofit’ means, with respect
to an organization, association, corporation, or other entity,
that no part of the net earnings of the entity inures to the
benefit of any member, founder, contributor, or individual.
‘‘(4) PRIVATE NONPROFIT ORGANIZATION.—The term ‘private
nonprofit organization’ means any private organization (includ-
ing a State or locally chartered organization) that—
‘‘(A) is incorporated under State or local law;
‘‘(B) is nonprofit in character;
‘‘(C) complies with standards of financial accountability
acceptable to the Secretary; and
‘‘(D) has among its purposes significant activities
related to the provision of decent housing that is affordable
to low-income families.
‘‘(5) PUBLIC NONPROFIT ORGANIZATION.—The term ‘public
nonprofit organization’ means any public entity that is nonprofit
in character.
‘‘(6) SPECIFIED
HOUSING.—The term ‘specified housing’
means a public housing project or projects, or a portion of
a project or projects, for which the transfer of management
is requested under this section. The term includes one or more
contiguous buildings and an area of contiguous row houses,
but in the case of a single building, the building shall be
sufficiently separable from the remainder of the project of which
it is part to make transfer of the management of the building
feasible for purposes of this section.’’.
SEC. 535. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUS-
ING, AND TENANT-BASED ASSISTANCE GRANTS FOR
PROJECTS.
(a) IN GENERAL.—Section 24 of the United States Housing
Act of 1937 (42 U.S.C. 1437v) is amended to read as follows:
‘‘SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUS-
ING, AND TENANT-BASED ASSISTANCE GRANTS FOR
PROJECTS.
‘‘(a) PURPOSES.—The purpose of this section is to provide assist-
ance to public housing agencies for the purposes of—
‘‘(1) improving the living environment for public housing
residents of severely distressed public housing projects through
the demolition, rehabilitation, reconfiguration, or replacement
of obsolete public housing projects (or portions thereof);
‘‘(2) revitalizing sites (including remaining public housing
dwelling units) on which such public housing projects are
located and contributing to the improvement of the surrounding
neighborhood;
‘‘(3) providing housing that will avoid or decrease the con-
centration of very low-income families; and
‘‘(4) building sustainable communities.
‘‘(b) GRANT AUTHORITY.—The Secretary may make grants as
provided in this section to applicants whose applications for such
grants are approved by the Secretary under this section.
‘‘(c) CONTRIBUTION REQUIREMENT.—
‘‘(1) IN GENERAL.—The Secretary may not make any grant
under this section to any applicant unless the applicant certifies
to the Secretary that the applicant will—