I
105TH CONGRESS
1ST SESSION
H. R. 2932
To require the Secretary of Housing and Urban Development to carry out
a demonstration program to determine the effectiveness of establishing
fair market rentals, for purposes of the tenant-based rental assistance
program under section 8 of the United States Housing Act of 1937,
by smaller geographic areas.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 8, 1997
Mr. BORSKI introduced the following bill; which was referred to the Committee
on Banking and Financial Services
A BILL
To require the Secretary of Housing and Urban Development
to carry out a demonstration program to determine the
effectiveness of establishing fair market rentals, for pur-
poses of the tenant-based rental assistance program
under section 8 of the United States Housing Act of
1937, by smaller geographic areas.
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 ‘‘Accurate Fair Market
Rental Demonstration Act’’.
SEC. 2. DEMONSTRATION PROGRAM.
(a) IN GENERAL.—During fiscal years 1999, 2000,
and 2001, the Secretary of Housing and Urban Develop-
ment shall carry out a demonstration program to deter-
mine the effectiveness of using fair market rentals under
the program for tenant-based assistance under section 8
of the United States Housing Act of 1937 that are estab-
lished by geographic areas that are smaller than market
areas used under section 8(c)(1) of such Act.
(b) ESTABLISHMENT AND SCOPE.—Under the dem-
onstration program under this Act, the Secretary shall es-
tablish fair market rentals, by zip code for all areas within
the metropolitan statistical area containing the city of
Philadelphia, Pennsylvania, for existing rental dwelling
units of various sizes and types. For each such zip code,
the Secretary shall establish the fair market rental for
each size and type of dwelling unit at the amount that
is equal to the 45th percentile rent for standard quality
rental housing units (not including public housing units
and newly built units) of such size and type within the
same zip code that were occupied by recent movers.
(c) PUBLICATION AND ADJUSTMENT.—During the
term of the demonstration program, the Secretary shall
publish and adjust the fair market rentals established
under this section in the same manner and subject to the
same requirements applicable under section 8(c)(1) to fair
market rentals established by market area under such sec-
tion.
(d) USE OF FMR’S.—During the term of the dem-
onstration program under this Act, notwithstanding sub-
section (c) or (o) of section 8 of the United States Housing
Act of 1937, the fair market rentals established under
subsection (b) of this section (as adjusted under sub-
section (c)) shall be used in determining the maximum
monthly rental or the payment standard, as applicable, for
dwelling units located within the area described in sub-
section (b) for which tenant-based rental assistance under
such section 8 is provided.
(e) DEFINITION.—For purposes of this Act, the term
‘‘tenant-based rental assistance’’ means rental assistance
under subsection (b) or (o) of section 8 of the United
States Housing Act of 1937 that is not attached to the
structure.
SEC. 3. REPORT.
Not later than March 31, 2002, the Secretary of
Housing and Urban Development shall submit a report
to the Congress describing the demonstration program
under this Act and setting forth the findings and conclu-
sions of the Secretary as a result of carrying out the dem-
onstration program, which shall include—
(1) a listing of the fair market rentals estab-
lished under the demonstration program;
(2) a listing of the fair market rentals that, but
for the demonstration program, would have been ap-
plicable in the area in which the demonstration pro-
gram was carried out;
(3) an analysis of any savings accrued and
costs incurred as a result of the demonstration pro-
gram;
(4) a description of the procedure involved in
determining fair market rentals by zip code; and
(5) any recommendations of the Secretary for
legislative or administrative changes to provide for
more accurate fair market rentals for use under the
program for tenant-based rental assistance under
section 8 of the United States Housing Act of 1937.
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