I 
119TH CONGRESS 
1ST SESSION H. R. 3952 
To authorize the Department of Housing and Urban Development to trans-
form neighborhoods of extreme poverty into sustainable, mixed-income 
neighborhoods with access to economic opportunities, by revitalizing se-
verely distressed housing, and investing and leveraging investments in 
well-functioning services, educational opportunities, public assets, public 
transportation, and improved access to jobs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2025 
Mr. CLEAVER (for himself, Mr. LYNCH, Mr. MEEKS, and Mr. TORRES of New 
York) introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To authorize the Department of Housing and Urban Devel-
opment to transform neighborhoods of extreme poverty 
into sustainable, mixed-income neighborhoods with access 
to economic opportunities, by revitalizing severely dis-
tressed housing, and investing and leveraging invest-
ments in well-functioning services, educational opportuni-
ties, public assets, public transportation, and improved 
access to jobs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Choice Neighborhoods 
Initiative Act of 2025’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) AFFORDABLE HOUSING.—The term ‘‘afford-
able housing’’ includes— 
(A) public housing assisted under section 9 
of the United States Housing Act of 1937 (42 
U.S.C. 1437g); 
(B) assisted housing; 
(C) housing assisted under an affordable 
housing program administered by the Secretary 
of Agriculture through Rural Housing Service; 
(D) rental housing that utilizes tax credits 
under section 42 of the Internal Revenue Code 
of 1986; 
(E) affordable rental housing owned, devel-
oped, or assisted through a State or local gov-
ernment or State housing finance agency, in-
cluding State-assisted public housing, which is 
subject to a long-term affordability restriction 
requiring occupancy by low-income households; 
and 
(F) private housing for low- and moderate- 
income households and for which the Secretary 
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requires the owner or purchaser of the project 
to maintain affordability for not less than 30 
years in accordance with use restrictions under 
regulations issued by the Secretary, which re-
strictions shall be— 
(i) contained in a legally enforceable 
document recorded in the appropriate 
records; and 
(ii) consistent with the long-term via-
bility of the project as rental or homeown-
ership housing. 
(2) APPLICANT.—The term ‘‘applicant’’ means 
an eligible entity under section 4(a) that submits an 
application for a grant under this Act pursuant to 
section 7. 
(3) ASSISTED
HOUSING.—The term ‘‘assisted 
housing’’ means rental housing assisted under— 
(A) section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f); 
(B) section 221(d)(3) or 236 of the Na-
tional Housing Act (12 U.S.C. 1715l, 1715z– 
1); 
(C) section 202 of the Housing Act of 
1959 (12 U.S.C. 1701q); or 
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(D) section 811 of Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 
8013). 
(4) 
COMMUNITY
DEVELOPMENT
CORPORA-
TION.—The term ‘‘community development corpora-
tion’’ has the meaning given the term in section 
204(b) of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1997 (12 U.S.C. 
1715z–11a(b)). 
(5) CRITICAL
COMMUNITY
IMPROVEMENTS.— 
The 
term 
‘‘critical 
community 
improvements’’ 
means— 
(A) development or improvement of com-
munity facilities to promote upward mobility, 
self-sufficiency, or improved quality of life for 
residents of the neighborhood, such as construc-
tion or rehabilitation of parks and community 
gardens, environmental improvements, or site 
remediation at affected sites; or 
(B) activities to promote economic develop-
ment, such as development or improvement of 
transit, retail, community financial institutions, 
public services, facilities, assets, or other com-
munity resources. 
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(6) 
ELEMENTARY
SCHOOL; 
SECONDARY 
SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec-
ondary school’’ have the meanings given those terms 
in section 9101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801). 
(7) EXTREME POVERTY.—The term ‘‘extreme 
poverty’’ means, with respect to a neighborhood, 
that the neighborhood— 
(A) has a high percentage of residents who 
are— 
(i) estimated to be in poverty; or 
(ii) have extremely low incomes based 
on the most recent data collected by the 
Bureau of the Census; and 
(B) is experiencing distress related to— 
(i) per capita crime rates over 3 or 
more years that are significantly higher 
than the per capita crime rates of the city 
or county in which the neighborhood is lo-
cated; 
(ii) high rates of vacant, abandoned, 
or substandard homes relative to the city 
or county as a whole; 
(iii) a low-performing public school; or 
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(iv) other such factors as determined 
by the Secretary that further the purposes 
of this Act. 
(8) FAMILIES; PUBLIC HOUSING; PUBLIC HOUS-
ING AGENCY.—The terms ‘‘families’’, ‘‘public hous-
ing’’, and ‘‘public housing agency’’ have the mean-
ings given those terms in section 3(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)). 
(9) GRANTEE.—The term ‘‘grantee’’ means an 
eligible entity under section 4 that is awarded a 
grant under this Act, pursuant to selection under 
section 7. 
(10) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘‘institution of higher education’’ has the 
meaning given the term in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
(11) LOCAL
GOVERNMENT.—The term ‘‘local 
government’’ has the meaning given the term ‘‘unit 
of general local government’’ in section 102(a)(1) of 
the Housing and Community Development Act of 
1974 (42 U.S.C. 5302(a)(1)). 
(12) LONG-TERM VIABILITY.—The term ‘‘long- 
term viability’’ means, with respect to a neighbor-
hood, that the neighborhood is sustainable on an 
economic, education, and environmental basis. 
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(13) NEIGHBORHOOD.—The term ‘‘neighbor-
hood’’ means an area that— 
(A) has distinguishing characteristics; 
(B) represents the geographical distribu-
tion of targeted populations; and 
(C) is not exclusive of areas that are inte-
grally related to the composition of the commu-
nity. 
(14) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Housing and Urban Develop-
ment. 
(15) SEVERELY
DISTRESSED
HOUSING.—The 
term ‘‘severely distressed housing’’ means a public 
or assisted housing project (or building in a project) 
that— 
(A)(i) has been certified, by an engineer or 
architect licensed by a State licensing board, as 
meeting criteria for physical distress that indi-
cate that the project requires major redesign, 
reconstruction, or redevelopment, or partial or 
total demolition, to correct serious deficiencies 
in the original design (including inappropriately 
high-population density), deferred maintenance, 
physical deterioration or obsolescence of major 
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systems, and other deficiencies in the physical 
plant of the project; and 
(ii) is a significant contributing factor to 
the physical decline of and disinvestment by 
public and private entities in the surrounding 
neighborhood, as documented by evidence of 
non-physical distress, such as extreme poverty, 
including census data and past surveys of 
neighborhood stability conducted by an appli-
cant or co-applicant or their qualified designee; 
or 
(B) was a project described in subpara-
graph (A) that has been legally vacated or de-
molished, but for which the Secretary has not 
yet provided replacement housing assistance 
other than tenant-based assistance. 
(16) SIGNIFICANT.—The term ‘‘significant’’ 
means, with respect to an amendment or change to 
a transformation plan, that the amendment or 
change— 
(A) changes the use of 20 percent or more 
of the total amount of the grant provided under 
this Act from use for 1 activity to use for an-
other; 
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(B) eliminates an activity that is a re-
quired 
activity 
that, 
notwithstanding 
the 
change, would otherwise be carried out under 
the plan; or 
(C) significantly changes the scope, loca-
tion, or beneficiaries of the project carried out 
under the plan. 
(17) SUPPORTIVE SERVICES.—The term ‘‘sup-
portive services’’ includes all activities that will pro-
mote upward mobility, self-sufficiency, or improved 
quality of life, including— 
(A) such activities as literacy training, re-
medial and continuing education, job training, 
financial literacy instruction, daycare, youth 
services, aging-in-place, physical and mental 
health services, and other programs for which 
such residents demonstrate need; 
(B) case management and service coordi-
nation services, including providing coordinators 
for the Family Self-Sufficiency program under 
section 23 of the United States Housing Act of 
1937 (42 U.S.C. 1437u) and the Resident Op-
portunity and Supportive Services program 
under section 34 of such Act (42 U.S.C. 
1437z–6); and 
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(C) technical assistance to enable residents 
to access programs from other key agencies and 
local service providers in order to help residents 
be stably housed, improve outcomes for chil-
dren, and enhance adults’ capacity for self-suf-
ficiency and economic security, and services for 
the elderly and persons with disabilities to 
maintain independence. 
SEC. 3. GRANT AUTHORITY. 
The Secretary may make competitive grants to eligi-
ble entities that submit transformation plans for eligible 
neighborhoods that will further the purposes of this Act 
in eligible neighborhoods. 
SEC. 4. ELIGIBLE ENTITIES. 
(a) PRIMARY APPLICANTS.— 
(1) IN GENERAL.—A grant under this Act may 
be made only to a local government, a public housing 
agency, or a nonprofit entity that owns a major 
housing project that is proposed to be assisted under 
a grant under this Act, either as a sole applicant or 
as a co-applicant with another local government or 
public housing agency or with an entity specified in 
subsection (b). 
(2) NONPROFIT ENTITIES.—A nonprofit entity 
may be a sole applicant under paragraph (1) only if 
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the application has the support of a local govern-
ment. 
(b) CO-APPLICANTS.— 
(1) 
COMMUNITY
DEVELOPMENT
CORPORA-
TIONS.—A community development corporation may, 
at the request of an entity specified in subsection 
(a), be a co-applicant for a grant under this Act. 
(2) FOR-PROFIT ENTITIES.—A for-profit entity 
that owns a major housing project that is proposed 
to be assisted under a grant under this Act made in 
fiscal year 2022 or thereafter and that has an estab-
lished presence in the community may be a co-appli-
cant for a grant under this Act. 
(3) REQUIRED CO-APPLICANTS.—A grant under 
this Act may not be made for an application that 
will involve transformation of a major public housing 
project unless the public housing agency having ju-
risdiction with respect to the project is the sole ap-
plicant or a co-applicant for the application. 
(c) PARTNERS.—Nothing in this section may be con-
strued to limit the ability of an applicant to partner with 
any entity in carrying out activities with a grant under 
this Act. 
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SEC. 5. ELIGIBLE NEIGHBORHOODS. 
A grant under this Act may be made only for activi-
ties to be conducted in neighborhoods that have— 
(1) a concentration of extreme poverty; and 
(2) housing that is severely distressed housing. 
SEC. 6. AUTHORIZED ACTIVITIES. 
(a) IN GENERAL.—Amounts from a grant under this 
Act may be used only for transformational programs and 
activities in accordance with a transformation plan ap-
proved under section 7 that will further the purposes of 
this Act. 
(b) REQUIRED ACTIVITIES.—Each transformation 
plan submitted pursuant to section 7 and implemented by 
a grantee under this Act shall include the following activi-
ties: 
(1) The transformation of housing through re-
habilitation, preservation, or demolition and replace-
ment of severely distressed housing projects, expan-
sion of affordable housing opportunities, or any com-
bination thereof, which may incorporate energy-effi-
cient design principles. 
(2) The one-for-one replacement of any public 
and assisted housing units demolished or disposed of 
in accordance with the requirements under section 9. 
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(3) Activities that promote economic self-suffi-
ciency of residents of the revitalized housing and of 
the surrounding neighborhood. 
(4) Activities that preserve affordable housing 
in the neighborhood and other activities necessary to 
ensure that existing public and assisted housing resi-
dents have access to the benefits of the neighbor-
hood transformation. 
(5) Activities that demonstrate that each resi-
dent of housing assisted by the grant who is dis-
placed by the transformation plan and who wishes to 
return to the revitalized on-site housing in the neigh-
borhood or to replacement housing outside of the 
neighborhood, can return, and shall be provided a 
preference in accordance with the program require-
ments under section 8. 
(6) Activities that meet the program require-
ments for replacement of housing units under sec-
tion 9. 
(7) Activities that meet the fair housing pro-
gram requirements under section 10(a) and the ac-
cessibility requirements under section 10(b). 
(8) Appropriate service coordination and sup-
portive services. 
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(9) Resident involvement, as described in sec-
tion 8, in planning and implementation of the trans-
formation plan, including reasonable steps to help 
ensure meaningful participation for residents who, 
as a result of their national origin, are limited in 
their English language proficiency. 
(10) Monitoring, under section 8(g), of resi-
dents relocated during redevelopment throughout the 
term of the grant or until full occupancy of replace-
ment housing, whichever is completed later. 
(11) Relocation assistance, including tenant- 
based rental assistance renewable under section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f), mobility or relocation counseling over mul-
tiple years, reasonable moving costs, and security de-
posits. 
(12) Establishment of links to local education 
efforts, as described in subsection (c)(3). 
(13) Activities to comply with section 3 of the 
Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u). 
(c) ELIGIBLE ACTIVITIES.—Amounts from a grant 
under this Act may be used for the following activities: 
(1) Construction, acquisition, or rehabilitation 
of affordable housing, which may include energy effi-
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ciency improvements and sustainable design features 
for that housing. 
(2) Acquisition or disposition of residential 
properties, including properties subject to a mort-
gage previously insured, and foreclosed upon, by the 
Federal Housing Administration, and demolition. 
(3) Outreach to local educators, and engaging 
in local community planning, to help increase access 
to educational opportunities, a continuum of effec-
tive community services, and strong family supports, 
and to improve the educational and life outcomes 
that have a significant benefit to residents of hous-
ing assisted under this Act, including children and 
youth and, as appropriate, for adult residents, in-
cluding the elderly or persons with disabilities. 
(4) Providing supportive services that have a 
significant benefit to residents of housing assisted 
under this Act, primarily focused on services de-
scribed in subparagraphs (B) and (C) of section 
2(17). 
(5) Rehabilitation and physical improvement of 
community facilities that are primarily intended to 
facilitate the delivery of community and supportive 
services that have a significant benefit to residents 
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of housing assisted by the grant and residents of off- 
site replacement housing. 
(6) Work incentives designed to help low-income 
residents assisted by the housing under this Act ac-
cess jobs and move toward self-sufficiency. 
(7) Partnering with employers and for-profit 
and nonprofit organizations to create jobs and job 
training opportunities that have a significant benefit 
to residents of housing assisted under this Act. 
(8) Activities that promote sustainable housing 
by incorporating principles of sustainable design and 
development, including energy efficiency. 
(9) Critical community improvements under-
taken at sites that are adjacent to, or in the imme-
diate vicinity of, housing assisted under this Act. 
(10) Loss reserves to protect residents of hous-
ing assisted by the grant and continue the project in 
the case of default, foreclosure, or any other adverse 
financial event. 
(d) ADDITIONAL PLAN.—The Secretary shall require 
any grantee under this Act that will provide benefits under 
paragraph (3), (4), (5), or (7) of subsection (c) to any 
residents who are not living in housing assisted with a 
grant under this Act to submit to the Secretary a plan 
identifying how such services will be provided. 
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(e) ELIGIBLE METHODS
OF SUPPORT.—Activities 
carried out with amounts from a grant under this Act may 
be carried out through— 
(1) endowments or revolving loan funds; or 
(2) land assembly, land banking, and other ac-
tivities, except that no amounts made available for 
use under this Act may be used to acquire any prop-
erty by means of the exercise of the power of emi-
nent domain. 
(f) FUNDING LIMITATIONS.— 
(1) SCHOOL
BUILDINGS.—No amounts from 
grant under this Act may be used for construction 
or rehabilitation of an elementary school or sec-
ondary school or an institution of higher education, 
except that such amounts may be used to construct 
common infrastructure that is shared by such a 
school or institution and by housing assisted under 
this Act, or community facilities authorized under 
subsection (c)(5), but only if costs are shared on a 
pro rata basis and the grantee certifies, and the Sec-
retary determines, that such use of funds will not 
promote or further segregation. 
(2) NON-HOUSING ACTIVITIES AND SUPPORTIVE 
SERVICES.—For each grant under this Act, the 
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grantee shall comply with each of the following re-
quirements: 
(A) Of the amount of the grant, not more 
than 25 percent may be used for eligible activi-
ties under paragraphs (3) through (9) of sub-
section (c). 
(B) Of the amount of the grant, not more 
than 5 percent may be used for eligible activi-
ties under paragraphs (8) and (9) of subsection 
(c). 
(3) CONSULTATION.—With respect to activities 
assisted pursuant to paragraph (2), the Secretary 
shall consult with the Secretary of Labor, the Sec-
retary of Health and Human Services, the Secretary 
of Energy, the Secretary of Transportation, the Sec-
retary of Education, and the Attorney General in 
identifying funding resources that may be provided 
to supplement amounts from grants under this Act. 
SEC. 
7. 
SUBMISSION 
AND 
SELECTION 
OF 
TRANS-
FORMATION PLANS. 
(a) TRANSFORMATION PLAN REQUIREMENTS.—To 
be eligible for a grant under this Act, an eligible entity 
shall submit to the Secretary, at such time in accordance 
with procedures as the Secretary shall prescribe, an appli-
cation in the form of a transformation plan that— 
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(1) demonstrates how the transformation plan 
will achieve the desired priority outcomes of trans-
forming a distressed neighborhood of extreme pov-
erty into a mixed-income neighborhood with high 
quality, safe, and affordable housing (including the 
one-for-one replacement of any public or assisted 
housing units demolished or disposed of under the 
transformation plan), economic opportunities, well- 
functioning services, public assets, access to jobs, 
public transportation, and effective education pro-
grams and public schools, including charter schools 
and other autonomous public schools; 
(2) demonstrates how the required activities 
under section 6(b) will be carried out, including a 
detailed description of the housing transformation 
activities under paragraphs (1) and (2) of such sec-
tion; 
(3) describes the other eligible activities under 
section 6(c) that will be carried out in support of the 
housing transformation; 
(4) defines desired outcomes of the strategy, 
how residents of housing assisted under this Act will 
benefit, describes the challenges they face, and the 
evidence base that informs the proposed strategies 
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that will result in the desired outcomes for the com-
munity and residents; 
(5) includes a long-term affordability plan, de-
veloped in collaboration with residents of the public 
and assisted housing assisted under this Act, that 
describes how the grantee will maintain affordable 
housing in the neighborhood over the next 50 years 
or longer, including affordability provisions relating 
to dwelling units provided using assistance under the 
grant under this Act, and an agreement by the ap-
plicant to update the plan every 5 years during such 
period; and 
(6) includes such other information as the Sec-
retary shall, by regulation, prescribe. 
(b) SELECTION CRITERIA.—The Secretary shall es-
tablish criteria for the award of grants under this Act, 
with the greatest consideration given to applicant and 
neighborhood need as identified in section 5, and which 
shall include the extent to which the transformation 
plan— 
(1) demonstrates the ability of the plan to fur-
ther the purposes of this Act; 
(2) demonstrates inclusive local planning with 
input from local governments, housing owners and 
providers, educators, residents of housing assisted 
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under this Act, local community organizations, pub-
lic schools, early learning in programs, health service 
organizations, and community stakeholders in the 
development and implementation of a sustainable re-
vitalization program; 
(3) includes efforts to coordinate multiple fund-
ing resources, including public, private, and philan-
thropic funding, and emphasizes collaboration be-
tween local governments, early learning programs 
and public schools, or a public housing agency, or all 
3; 
(4) includes current data showing that the 
neighborhood targeted for revitalization is in need of 
and can benefit from the authorized activities de-
scribed in section 6 and proposed in the trans-
formation plan; 
(5) demonstrates the capability and record of 
the applicant and the partners of the applicant for 
managing housing redevelopment or modernization 
projects, successfully working with public and as-
sisted housing residents during the planning and re-
design process, and meeting performance bench-
marks; 
(6) demonstrates that sustainable building and 
energy efficient design principles are incorporated or 
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will be incorporated in the activities conducted pur-
suant to the plan; 
(7) demonstrates that the applicant has plans 
to have, within a reasonable time, improved access 
to transportation, including public transportation, in 
the neighborhood that provides access to economic 
opportunities and commercial and public services; 
(8) demonstrates that the residents of revital-
ized housing developments will have, to the extent 
possible, improved access to high-quality educational 
opportunities, including early learning and effective 
elementary and secondary public schools, in or out-
side of the neighborhood, where relevant; 
(9) demonstrates that the transformation plan 
includes the provision of appropriate supportive serv-
ices and activities, including those that promote eco-
nomic self-sufficiency of residents and supportive 
services to continue to live independently, of housing 
assisted under the grant, and a plan to sustain those 
services; 
(10) demonstrates that the transformation plan 
provides support for residents displaced as a result 
of the revitalization of the project, including assist-
ance in obtaining housing in areas with low con-
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centrations of poverty in a manner that does not in-
crease racial segregation; 
(11) demonstrates that sufficient housing op-
portunities are available in the neighborhood to be 
revitalized and in low-poverty areas to accommodate 
displaced residents, in a manner that does not in-
crease racial segregation; 
(12) includes a well-documented assessment of 
the number of households with special needs for on-
going supportive services residing in the public or 
assisted housing properties that are the target of the 
grant and an effective plan to address those needs; 
(13) demonstrates the compliance with the re-
quirements of section 9, regarding one-for-one re-
placement of public and assisted housing units; 
(14) demonstrates how the applicant will use 
indicators of housing redevelopment, neighborhood 
quality, resident well-being, and other outcomes to 
measure success, manage program implementation, 
and engage stakeholders, consistent with require-
ments established by the Secretary; 
(15) demonstrates, if feasible, phased redevelop-
ment that provides for demolition and construction 
of dwelling units in phases, to limit disruptions to 
residents; 
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(16) demonstrates efforts to promote a diverse 
housing mix that includes market-rate and owner-
ship opportunities for residents moving up the in-
come scale; 
(17) demonstrates that the neighborhood will 
improve its long-term viability through the revitaliza-
tion of severely distressed housing, improved access 
to economic opportunities, improved investment and 
leveraging in well-functioning services, and improved 
education programs, public assets, public transpor-
tation and access to jobs; and 
(18) demonstrates compliance with any other 
factors and priorities that further the purposes of 
this Act, as the Secretary may, by regulation, pre-
scribe. 
SEC. 8. RIGHT OF RESIDENTS TO RETURN; RELOCATION. 
(a) 
DETERMINATION
OF
RESIDENT
PREF-
ERENCES.—An applicant shall, not later than 30 days be-
fore submitting an application to the Secretary for a grant 
under this Act— 
(1) hold a community meeting and provide in-
formation to all residents who occupy a dwelling unit 
in public housing or assisted housing subject to the 
transformation plan of— 
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(A) the intent of the applicant to submit 
an application for a grant under this Act; 
(B) their right to return and relocation 
housing options; and 
(C) all planned replacement housing units; 
and 
(2) solicit from each resident information re-
garding the desire of the resident to return to the 
replacement housing units constructed upon the 
original public or assisted housing location, interest 
in moving to other neighborhoods or communities, or 
interest in retaining a voucher for rental assistance. 
(b) RESIDENT INVOLVEMENT.— 
(1) IN
GENERAL.—Each transformation plan 
assisted under this Act shall provide opportunities 
for the active involvement and participation of, and 
consultation with, residents of the public and as-
sisted housing that is subject to the transformation 
plan during the planning process for the trans-
formation plan, including prior to submission of the 
application, and during all phases of the planning 
and implementation, which opportunities— 
(A) may include participation of members 
of any resident council or tenant organization, 
but may not be limited to those members; and 
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(B) shall include— 
(i) all segments of the population of 
residents of the public and assisted hous-
ing that is subject to the revitalization 
plan, including single parent-headed house-
holds, the elderly, young employed and un-
employed adults, teenage youth, and dis-
abled persons; and 
(ii) a process that provides oppor-
tunity for comment on specific proposals 
for redevelopment, any demolition and dis-
position involved, and any proposed signifi-
cant amendments or changes to the trans-
formation plan. 
(2) PUBLIC MEETING.—The Secretary may not 
make a grant under this Act to an applicant unless 
the applicant has convened and conducted a public 
meeting regarding the transformation plan, includ-
ing the one-for-one replacement to occur under the 
plan, not later than 30 days before submission of the 
application for the grant under this section for the 
plan, at a time and location that is convenient for 
residents of the public and assisted housing subject 
to the plan. 
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(3) SIGNIFICANT
AMENDMENTS
OR
CHANGES 
TO PLAN.—An applicant may not carry out any sig-
nificant amendment or change to a transformation 
plan unless— 
(A) the applicant has convened and con-
ducted a public meeting regarding the signifi-
cant amendment or change at a time and loca-
tion that is convenient for residents of the pub-
lic and assisted housing subject to the plan and 
has provided each household occupying a dwell-
ing unit in the public and assisted housing with 
written notice of the meeting not less than 10 
days before such meeting; 
(B) after the meeting held under subpara-
graph (A), the applicant consults with the 
households occupying dwelling units in the pub-
lic and assisted housing that are subject to, or 
to be subject to the plan, and the agency sub-
mits a report to the Secretary describing the re-
sults of the consultation; and 
(C) the Secretary approves the significant 
amendment or change. 
(c) RIGHT TO RETURN.—The Secretary may not ap-
prove a transformation plan under this Act unless the plan 
provides that each resident of public or assisted housing 
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displaced by activities under the transformation plan who 
wishes to return to the on-site or off-site replacement 
housing provided under the plan may return if the resi-
dent— 
(1) was in compliance with the lease at the time 
of departure from the housing subject to rehabilita-
tion or demolition; and 
(2) would be eligible, as of the time of the re-
turn, for occupancy under the eligibility, screening, 
and occupancy standards, policies, or practices appli-
cable to the housing from which the resident was 
displaced, as in effect at the time of displacement. 
(d) 
RELOCATION, 
NOTICE, 
APPLICATION
FOR 
VOUCHERS, AND DATA.—All relocation activities resulting 
from, or that will result from, demolition, disposition, or 
both demolition and disposition, to be carried out under 
a transformation plan relating to a grant under this Act 
shall be subject to the following requirements: 
(1) UNIFORM
RELOCATION
AND
REAL
PROP-
ERTY ACQUISITION ACT.—The Uniform Relocation 
and Real Property Acquisition Policies Act of 1970 
(42 U.S.C. 4601 et seq.) shall apply. To the extent 
the provisions of this subsection and such Act con-
flict, the provisions that provide greater protection 
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to residents displaced by the demolition, disposition, 
or demolition and disposition, shall apply. 
(2) RELOCATION
PLAN.—The applicant shall 
submit to the Secretary, together with the applica-
tion for a grant under this Act, a relocation plan 
providing for the relocation of residents occupying 
the public or assisted housing for which the demoli-
tion or disposition is proposed, which shall include— 
(A) a statement of the estimated number 
of vouchers for rental assistance under section 
8 that will be needed for such relocation; 
(B) identification of the location of the re-
placement dwelling units that will be made 
available for permanent occupancy; and 
(C) a statement of whether any temporary, 
off-site relocation of any residents is necessary 
and a description of the plans for such reloca-
tion. 
(3) NOTICE
UPON
APPROVAL
OF
APPLICA-
TION.—Within a reasonable time after notice to the 
applicant of the approval of an application for a 
grant under this section, the applicant shall provide 
notice in writing, in plain and non-technical lan-
guage, to the residents of the public and assisted 
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housing subject to the approved transformation plan 
that— 
(A) states that the application and trans-
formation plan has been approved; 
(B) describes the process involved to relo-
cate the residents, including a statement that 
the residents may not be relocated until the 
conditions set forth in section 10 have been 
met; 
(C) provides information regarding reloca-
tion options; and 
(D) advises residents of the availability of 
relocation counseling as required in paragraph 
(7). 
(4) NOTICE BEFORE RELOCATION.—Except in 
cases of a substantial and imminent threat to health 
or safety, not later than 90 days before the date on 
which residents will be relocated, the grantee shall 
provide notice in writing, in plain and non-technical 
language, to each family residing in a public or as-
sisted housing project that is subject to an approved 
transformation plan, and in accordance with such 
guidelines as the Secretary may issue governing such 
notifications, that— 
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(A) the public or assisted housing project 
will be demolished or disposed of; 
(B) the demolition of the building in which 
the family resides will not commence until each 
resident of the building is relocated; and 
(C) if temporary, off-site relocation is nec-
essary, each family displaced by the action shall 
be offered comparable housing— 
(i) that meets housing quality stand-
ards; 
(ii) that is located in an area that is 
generally not less desirable than the loca-
tion of the housing of the displaced family, 
which shall include not less than 1 unit lo-
cated in an area of low poverty or 1 unit 
located within the neighborhood of the 
original public or assisted housing site; 
(iii) that is identified and available to 
the family; and 
(iv) which shall include— 
(I) tenant-based assistance, ex-
cept that the requirement under this 
subparagraph regarding offering of 
comparable housing shall be fulfilled 
by use of tenant-based assistance only 
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upon the relocation of the family into 
such housing; 
(II) project-based assistance; 
(III) occupancy in a unit oper-
ated or assisted by the public housing 
agency or the owner of the assisted 
project demolished or disposed of 
under this section, at a rental rate 
paid by the family that is comparable 
to the rental rate applicable to the 
unit from which the family is relo-
cated; or 
(IV) other comparable housing. 
(5) SEARCH PERIOD.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, in the case of a house-
hold that is provided tenant-based assistance 
for relocation of the household under this sec-
tion, the period during which the household 
may lease a dwelling unit using that assistance 
shall not be shorter in duration than the 150- 
day period that begins at the time a comparable 
replacement unit is made available to the fam-
ily. 
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(B) EXTENSION.—If a household is unable 
to lease a dwelling unit using the assistance de-
scribed in subparagraph (A) during the period 
described in that subparagraph, the grantee 
shall— 
(i) extend the period during which the 
household may lease a dwelling unit using 
the assistance; or 
(ii) at the request of the resident, pro-
vide the resident with the next available 
comparable public housing unit or com-
parable housing unit for which project- 
based assistance is provided. 
(6) PAYMENT
OF
RELOCATION
EXPENSES.— 
The grantee shall provide for the payment of the ac-
tual and reasonable relocation expenses, including 
security deposits, of each resident to be displaced 
and any other relocation expenses as are required by 
the Uniform Relocation Assistance and Real Prop-
erty Acquisition Policies Act of 1970 (42 U.S.C. 
4601 et seq.). 
(7) 
COMPREHENSIVE
RELOCATION
COUN-
SELING.—The grantee shall provide all advisory pro-
grams and services as required by the Uniform Relo-
cation Assistance and Real Property Acquisition 
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Policies Act of 1970 (42 U.S.C. 4601 et seq.) and 
counseling for residents who are displaced that 
shall— 
(A) fully inform residents to be displaced 
of all relocation options, which may include re-
locating to housing in a neighborhood with a 
lower concentration of poverty than their cur-
rent residence, a neighborhood where relocation 
will not increase racial segregation, or remain-
ing in the current neighborhood; and 
(B) include providing school options for 
children and comprehensive housing search as-
sistance for households that receive a voucher 
for tenant-based assistance. 
(8) TIMING OF DEMOLITION OR DISPOSITION.— 
The grantee shall not commence demolition or com-
plete disposition of a building subject to the ap-
proved transformation plan until all residents resid-
ing in the building are relocated. 
(9) TIMING
OF
RELOCATION.—The applicant 
shall not commence relocation before approval by the 
Secretary of the transformation plan providing for 
the demolition or disposition, unless the applicant 
generally relocates residents in accordance with this 
section, as determined by the Secretary, except in 
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the case of a substantial and imminent threat to 
health or safety. 
(e) MONITORING OF DISPLACED HOUSEHOLDS.— 
(1) GRANTEE RESPONSIBILITIES.—To facilitate 
compliance with the requirement under subsection 
(a) (relating to right of residents to return), the Sec-
retary shall, by regulation, require each grantee of 
a grant under this section, during the period of the 
transformation plan assisted with the grant and 
until all funding under the grant has been ex-
pended— 
(A) to maintain a current address of resi-
dence and contact information for each house-
hold affected by the transformation plan who 
was occupying a dwelling unit in the housing 
that is subject to the plan; and 
(B) to provide such updated information to 
the Secretary on at least a quarterly basis. 
(2) CERTIFICATION.—The Secretary may not 
close out any grant made under this section before 
the grantee has certified to the Secretary that the 
agency has complied with subsection (a) (relating to 
right of residents to return) with respect to each 
resident displaced as a result of the transformation 
plan, including providing occupancy in a replacement 
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dwelling unit for each resident who requested such 
a unit in accordance with such subsection. 
(f) PREFERENCE.—A returning resident shall be pro-
vided a preference for occupancy of on-site or off-site re-
placement units before those units are made available for 
occupancy by any other eligible households, or the resident 
may choose to retain tenant-based voucher assistance pro-
vided under section 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)) for relocation from the prop-
erties revitalized under a transformation plan assisted 
with a grant under this Act. 
(g) PROHIBITION
ON
RE-SCREENING.—A public 
housing agency or any other manager of on-site or off- 
site replacement housing shall not, through the application 
of any additional eligibility, screening, occupancy, or other 
policy or practice, prevent any person otherwise eligible 
under subsection (a) from occupying a replacement hous-
ing unit. 
SEC. 9. ONE-FOR-ONE REPLACEMENT OF PUBLIC AND AS-
SISTED HOUSING DWELLING UNITS. 
(a) ONE-FOR-ONE REPLACEMENT OF PUBLIC OR AS-
SISTED HOUSING UNITS.—The Secretary may not ap-
prove a transformation plan that provides for dwelling 
units to be demolished or disposed of unless the plan pro-
vides as follows: 
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(1) REQUIREMENT TO REPLACE EACH UNIT.— 
One hundred percent of the public and assisted 
housing dwelling units and units described in section 
2(1)(E) that are demolished or disposed of pursuant 
to the transformation plan shall be replaced with a 
newly constructed, rehabilitated, or purchased public 
or assisted housing unit or with a newly constructed, 
rehabilitated, or purchased unit (including through 
project-based assistance) that is subject to require-
ments regarding eligibility for occupancy, tenant 
contribution toward rent, and long-term affordability 
restrictions that are consistent with such require-
ments for public and assisted housing dwelling units 
or for State units, as applicable, except that sub-
paragraphs (B) and (D) of section 8(o)(13) of the 
United States Housing Act of 1936 (relating to per-
centage limitation and income mixing requirement of 
project-based assistance) shall not apply with respect 
to vouchers used to comply with the requirements of 
this paragraph. 
(2) OTHER REQUIREMENTS.—Admission to, ad-
ministration of, and eviction from replacement hous-
ing units that replaced public housing units, but 
that are not public housing dwelling units, shall be 
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subject to the following provisions to the same ex-
tent as public housing dwelling units: 
(A) Section 578 of the Quality Housing 
and Work Responsibility Act of 1998 (42 
U.S.C. 13663; relating to ineligibility of dan-
gerous sex offenders). 
(B) Section 16(f) of the United States 
Housing Act of 1937 (42 U.S.C. 1437n(f); re-
lating to ineligibility of certain drug offenders). 
(C) Sections 20 and 21 of the United 
States Housing Act of 1937 (42 U.S.C. 1437r, 
1437s; relating to resident management). 
(D) Section 25 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437w; relating to 
transfer of management at request of resi-
dents). 
(E) Section 6(k) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(k); re-
lating to administrative grievance procedure). 
(F) Section 6(f) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(f); re-
lating to housing quality requirements). 
(G) Part 964 of title 24, Code of Federal 
Regulations (relating to tenant participation 
and opportunities). 
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(3) RETENTION
OF
RIGHTS.—Tenants occu-
pying a replacement housing unit shall have all 
rights provided to tenants of the housing from which 
the tenants were relocated. 
(4) SIZE.— 
(A) IN GENERAL.—Replacement units shall 
be of comparable size, unless a market analysis 
shows a need for other-sized units, in which 
case such need shall be addressed. 
(B) BEDROOMS.—The number of bed-
rooms within each replacement unit shall be 
sufficient to serve families displaced as a result 
of the demolition or disposition. 
(5) LOCATION ON SITE.—At least one-third of 
all replacement units for public and assisted housing 
units demolished shall be public or assisted housing 
units constructed within the immediate area of the 
original public or assisted housing location, unless 
the Secretary determines that— 
(A) construction on the location would re-
sult in the violation of a consent decree; or 
(B) the land on which the public and as-
sisted housing is located is environmentally un-
safe or geologically unstable. 
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(6) LOCATION IN THE NEIGHBORHOOD.—Any 
replacement housing units provided in addition to 
dwelling units provided pursuant to paragraph (5) 
shall— 
(A) be provided in areas within the neigh-
borhood, except that if rebuilding the units 
within the neighborhood is not feasible, units 
shall be provided within the jurisdiction of the 
public housing agency— 
(i) in a manner that furthers the eco-
nomic and educational opportunities for 
residents; and 
(ii) in areas offering access to public 
transportation; and 
(B) have access to social, recreational, edu-
cational, commercial, and health facilities and 
services, including municipal services and facili-
ties, that are comparable to services provided to 
the revitalized neighborhood from which resi-
dents were displaced. 
(7) LOCATION OUTSIDE OF JURISDICTION.—If 
rebuilding replacement housing units within the ju-
risdiction, in a manner that complies with the re-
quirements of clauses (i) through (iv) of subpara-
graph (A) and subparagraph (B) of paragraph (6) 
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is not feasible, units may be provided outside of the 
jurisdiction of the public housing agency, but within 
the metropolitan area of such jurisdiction, pro-
vided— 
(A) the grantee requests, and the public 
housing agency or local government in which 
such units shall be located, agrees to such 
transfer of units; and 
(B) the units shall comply with the re-
quirements of clauses (i) through (iv) of sub-
paragraph (A) and subparagraph (B) of para-
graph (6). 
(b) WAIVER.— 
(1) AUTHORITY.—Upon the written request of 
an applicant for a grant under this Act submitted as 
part of the transformation plan pursuant to section 
7, the Secretary may reduce the percentage applica-
ble under subsection (a)(1) to the transformation 
plan of the applicant to not less than 90 percent, 
but only if— 
(A) a judgment, consent decree, or other 
order of a court limits the ability of the appli-
cant to comply with such requirements; or 
(B) the applicant demonstrates that there 
is an excess supply of affordable rental housing 
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in areas of low poverty and provides data show-
ing that, in the area surrounding the revitalized 
neighborhood— 
(i) not less than 90 percent of vouch-
ers issued under section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f(o)) over the last 24 months to com-
parable families were successfully used to 
lease a dwelling unit within 120 days of 
issuance or, if a sufficient number of com-
parable families have not received vouch-
ers, an alternative measure, as the Sec-
retary shall design, is met; 
(ii) existing voucher holders are widely 
dispersed geographically in areas of low 
poverty with access to public transpor-
tation, education, and other amenities, as 
determined by the Secretary, among the 
available private rental housing stock; and 
(iii) the applicant provides a market 
analysis demonstrating that— 
(I) there is a relatively high va-
cancy rate among units that would 
meet or exceed housing quality stand-
ards, as determined by the Secretary, 
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within the market area with rent and 
utility costs not exceeding the applica-
ble payment standard under section 
8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)); and 
(II) the high vacancy rate within 
the market area is expected to con-
tinue for the next 5 years or longer. 
SEC. 10. OTHER PROGRAM REQUIREMENTS. 
(a) FAIR HOUSING.— 
(1) IN GENERAL.—The demolition or disposi-
tion, relocation, replacement, and re-occupancy of 
housing units in connection with a grant under this 
Act shall be carried out in a manner that affirma-
tively furthers fair housing, as required by section 
808(e) of the Civil Rights Act of 1968 (42 U.S.C. 
3608(e)). 
(2) MARKETING
AND
OUTREACH.—Grantees 
shall adopt affirmative marketing procedures, and 
require affirmative marketing activities of project 
owners and managers, which shall be targeted o 
those who are least likely to apply for the housing, 
to ensure that all persons regardless of their race, 
color, national origin, religion, sex, disability, or fa-
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milial status are aware of the housing opportunities 
in each project funded with a grant under this Act. 
(b) ACCESSIBILITY REQUIREMENTS.—All new con-
struction and alterations of existing buildings carried out 
in connection with a grant under this Act shall comply 
with the requirements of the section 504 of Rehabilitation 
Act of 1973 (29 U.S.C. 794), the Accessibility Standards 
for Design, Construction, and Alteration of Publicly 
Owned Residential Structures of the Department of Hous-
ing and Urban Development under part 40 of title 24, 
Code of Federal Regulations, or any successor regulation, 
the Fair Housing Act (42 U.S.C. 3601 et seq.), and any 
other requirements as determined by the Secretary. 
(c) AFFORDABILITY REQUIREMENT.—Amounts from 
a grant under this Act may not be used for assistance 
for any housing property unless the owner of the property 
assisted agrees to a period of affordability for the property 
which shall be not shorter than the period of affordability 
to which the property is already subject and remains sub-
ject, or 3Hi 0 years, whichever is longer. 
(d) COST LIMITS.—Subject to the provisions of this 
Act, the Secretary shall establish cost limits on eligible ac-
tivities under this Act sufficient to provide for effective 
transformation programs. 
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