SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Housing Opportunity Through Modernization Act of 
2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING 
Sec. 101. Inspection of dwelling units. 
Sec. 102. Income reviews. 
Sec. 103. Limitation on public housing tenancy for over-income families. 
Sec. 104. Limitation on eligibility for assistance based on assets. 
Sec. 105. Units owned by public housing agencies. 
Sec. 106. PHA project-based assistance. 
Sec. 107. Establishment of fair market rent. 
Sec. 108. Collection of utility data. 
Sec. 109. Public housing Capital and Operating Funds. 
Sec. 110. Family unification program for children aging out of foster care. 
Sec. 111. Public housing heating guidelines. 
Sec. 112. Use of vouchers for manufactured housing. 
Sec. 113. Preference for United States citizens or nationals. 
Sec. 114. Exception to public housing agency resident board member require-
ment. 
TITLE II—RURAL HOUSING 
Sec. 201. Delegation of guaranteed rural housing loan approval. 
Sec. 202. Guaranteed underwriting user fee. 
TITLE III—FHA MORTGAGE INSURANCE FOR CONDOMINIUMS 
Sec. 301. Modification of FHA requirements for mortgage insurance for con-
dominiums. 
TITLE IV—HOUSING REFORMS FOR THE HOMELESS AND FOR 
VETERANS 
Sec. 401. Definition of geographic area for Continuum of Care Program. 
Sec. 402. Inclusion of public housing agencies and local redevelopment authori-
ties in emergency solutions grants. 
Sec. 403. Special assistant for Veterans Affairs in the Department of Housing 
and Urban Development. 
Sec. 404. Annual supplemental report on veterans homelessness. 
Sec. 405. Reopening of public comment period for continuum of care program 
regulations. 
TITLE V—MISCELLANEOUS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain fraud 
and abuse prevention measures. 
Sec. 502. Energy efficiency requirements under Self-Help Homeownership Op-
portunity program. 
Sec. 503. Data exchange standardization for improved interoperability. 
TITLE VI—REPORTS 
Sec. 601. Report on interagency family economic empowerment strategies. 
TITLE VII—HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS 
Sec. 701. Formula and terms for allocations to prevent homelessness for indi-
viduals living with HIV or AIDS. 
TITLE I—SECTION 8 RENTAL AS-
SISTANCE AND PUBLIC HOUS-
ING 
SEC. 101. INSPECTION OF DWELLING UNITS. 
(a) IN GENERAL.—Section 8(o)(8) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is 
amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling 
unit for which a housing assistance pay-
ment contract is established under this 
subsection, the public housing agency (or 
other entity pursuant to paragraph (11)) 
shall inspect the unit before any assistance 
payment is made to determine whether the 
dwelling unit meets the housing quality 
standards under subparagraph (B), except
as provided in clause (ii) or (iii) of this 
subparagraph. 
‘‘(ii) 
CORRECTION
OF
NON-LIFE- 
THREATENING CONDITIONS.—In the case 
of any dwelling unit that is determined, 
pursuant to an inspection under clause (i), 
not to meet the housing quality standards 
under subparagraph (B), assistance pay-
ments may be made for the unit notwith-
standing subparagraph (C) if failure to 
meet such standards is a result only of 
non-life-threatening conditions, as such 
conditions are established by the Secretary. 
A public housing agency making assistance 
payments pursuant to this clause for a 
dwelling unit shall, 30 days after the be-
ginning of the period for which such pay-
ments are made, withhold any assistance 
payments for the unit if any deficiency re-
sulting in noncompliance with the housing 
quality standards has not been corrected 
by such time. The public housing agency 
shall recommence assistance payments 
when such deficiency has been corrected, 
and may use any payments withheld to
make assistance payments relating to the 
period during which payments were with-
held. 
‘‘(iii) USE OF ALTERNATIVE INSPEC-
TION METHOD FOR INTERIM PERIOD.—In 
the case of any property that within the 
previous 24 months has met the require-
ments of an inspection that qualifies as an 
alternative inspection method pursuant to 
subparagraph (E), a public housing agency 
may authorize occupancy before the inspec-
tion under clause (i) has been completed, 
and may make assistance payments retro-
active to the beginning of the lease term 
after the unit has been determined pursu-
ant to an inspection under clause (i) to 
meet the housing quality standards under 
subparagraph (B). This clause may not be 
construed to exempt any dwelling unit 
from compliance with the requirements of 
subparagraph (D).’’; 
(2) by redesignating subparagraph (G) as sub-
paragraph (H); and 
(3) by inserting after subparagraph (F) the fol-
lowing new subparagraph:
‘‘(G) ENFORCEMENT OF HOUSING QUALITY 
STANDARDS.— 
‘‘(i) DETERMINATION OF NONCOMPLI-
ANCE.—A dwelling unit that is covered by 
a housing assistance payments contract 
under this subsection shall be considered, 
for purposes of subparagraphs (D) and 
(F), to be in noncompliance with the hous-
ing quality standards under subparagraph 
(B) if— 
‘‘(I) the public housing agency or 
an inspector authorized by the State 
or unit of local government deter-
mines upon inspection of the unit that 
the unit fails to comply with such 
standards; 
‘‘(II) the agency or inspector no-
tifies the owner of the unit in writing 
of such failure to comply; and 
‘‘(III) the failure to comply is not 
corrected— 
‘‘(aa) in the case of any 
such failure that is a result of 
life-threatening conditions, within
use any amounts withheld during the cor-
rection period to make assistance payments 
relating to the period during which pay-
ments were withheld. 
‘‘(iii) ABATEMENT
OF
ASSISTANCE 
AMOUNTS.—The public housing agency 
shall abate all of the assistance amounts 
under this subsection with respect to a 
dwelling unit that is determined, pursuant 
to clause (i) of this subparagraph, to be in 
noncompliance with housing quality stand-
ards under subparagraph (B). Upon com-
pletion of repairs by the public housing 
agency or the owner sufficient so that the 
dwelling unit complies with such housing 
quality standards, the agency shall recom-
mence payments under the housing assist-
ance payments contract to the owner of the 
dwelling unit. 
‘‘(iv) NOTIFICATION.—If a public 
housing agency providing assistance under 
this subsection abates rental assistance 
payments pursuant to clause (iii) with re-
spect to a dwelling unit, the agency shall, 
upon commencement of such abatement—
‘‘(I) notify the tenant and the 
owner of the dwelling unit that— 
‘‘(aa) such abatement has 
commenced; and 
‘‘(bb) if the dwelling unit is 
not brought into compliance with 
housing quality standards within 
60 days after the effective date of 
the determination of noncompli-
ance under clause (i) or such rea-
sonable longer period as the 
agency may establish, the tenant 
will have to move; and 
‘‘(II) issue the tenant the nec-
essary forms to allow the tenant to 
move to another dwelling unit and 
transfer the rental assistance to that 
unit. 
‘‘(v) PROTECTION OF TENANTS.—An 
owner of a dwelling unit may not terminate 
the tenancy of any tenant because of the 
withholding or abatement of assistance 
pursuant to this subparagraph. During the 
period that assistance is abated pursuant
to this subparagraph, the tenant may ter-
minate the tenancy by notifying the owner. 
‘‘(vi) TERMINATION OF LEASE OR AS-
SISTANCE
PAYMENTS
CONTRACT.—If as-
sistance amounts under this section for a 
dwelling unit are abated pursuant to clause 
(iii) and the owner does not correct the 
noncompliance within 60 days after the ef-
fective date of the determination of non-
compliance under clause (i), or such other 
reasonable longer period as the public 
housing agency may establish, the agency 
shall terminate the housing assistance pay-
ments contract for the dwelling unit. 
‘‘(vii) RELOCATION.— 
‘‘(I) LEASE OF NEW UNIT.—The 
agency shall provide the family resid-
ing in such a dwelling unit a period of 
90 days or such longer period as the 
public housing agency determines is 
reasonably necessary to lease a new 
unit, beginning upon termination of 
the contract, to lease a new residence 
with tenant-based rental assistance 
under this section.
‘‘(II) AVAILABILITY
OF
PUBLIC 
HOUSING UNITS.—If the family is un-
able to lease such a new residence 
during such period, the public housing 
agency shall, at the option of the fam-
ily, provide such family a preference 
for occupancy in a dwelling unit of 
public housing that is owned or oper-
ated by the agency that first becomes 
available for occupancy after the expi-
ration of such period. 
‘‘(III) ASSISTANCE
IN
FINDING 
UNIT.—The public housing agency 
may provide assistance to the family 
in finding a new residence, including 
use of up to two months of any assist-
ance amounts withheld or abated pur-
suant to clause (ii) or (iii), respec-
tively, for costs directly associated 
with relocation of the family to a new 
residence, which shall include security 
deposits as necessary and may include 
reimbursements for reasonable moving 
expenses incurred by the household, 
as established by the Secretary. The
agency may require that a family re-
ceiving assistance for a security de-
posit shall remit, to the extent of such 
assistance, the amount of any security 
deposit refunds made by the owner of 
the dwelling unit for which the lease 
was terminated. 
‘‘(viii) TENANT-CAUSED
DAMAGES.— 
If a public housing agency determines that 
any damage to a dwelling unit that results 
in a failure of the dwelling unit to comply 
with housing quality standards under sub-
paragraph (B), other than any damage re-
sulting from ordinary use, was caused by 
the tenant, any member of the tenant’s 
household, or any guest or other person 
under the tenant’s control, the agency may 
waive the applicability of this subpara-
graph, except that this clause shall not ex-
onerate a tenant from any liability other-
wise existing under applicable law for dam-
ages to the premises caused by such ten-
ant. 
‘‘(ix) APPLICABILITY.—This subpara-
graph shall apply to any dwelling unit for
‘‘(ii) annually thereafter, except as 
provided in paragraph (1) with respect to 
fixed-income families; 
‘‘(iii) upon the request of the family, 
at any time the income or deductions 
(under subsection (b)(5)) of the family 
change by an amount that is estimated to 
result in a decrease of 10 percent (or such 
lower amount as the Secretary may, by no-
tice, establish, or permit the public housing 
agency or owner to establish) or more in 
annual adjusted income; and 
‘‘(iv) at any time the income or deduc-
tions (under subsection (b)(5)) of the fam-
ily change by an amount that is estimated 
to result in an increase of 10 percent or 
more in annual adjusted income, or such 
other amount as the Secretary may by no-
tice establish, except that any increase in 
the earned income of a family shall not be 
considered for purposes of this clause (ex-
cept that earned income may be considered 
if the increase corresponds to previous de-
creases under clause (iii)), except that a 
public housing agency or owner may elect
not to conduct such review in the last three 
months of a certification period. 
‘‘(B) IN GENERAL.—Reviews of family in-
come for purposes of this section shall be sub-
ject to the provisions of section 904 of the 
Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 3544). 
‘‘(7) CALCULATION OF INCOME.— 
‘‘(A) USE OF CURRENT YEAR INCOME.—In 
determining family income for initial occupancy 
or provision of housing assistance pursuant to 
clause (i) of paragraph (6)(A) or pursuant to 
reviews pursuant to clause (iii) or (iv) of such 
paragraph, a public housing agency or owner 
shall use the income of the family as estimated 
by the agency or owner for the upcoming year. 
‘‘(B) USE
OF
PRIOR
YEAR
INCOME.—In 
determining family income for annual reviews 
pursuant to paragraph (6)(A)(ii), a public hous-
ing agency or owner shall, except as otherwise 
provided in this paragraph and paragraph (1), 
use the income of the family as determined by 
the agency or owner for the preceding year, 
taking into consideration any redetermination
of income during such prior year pursuant to 
clause (iii) or (iv) of paragraph (6)(A). 
‘‘(C) OTHER INCOME.—In determining the 
income for any family based on the prior year’s 
income, with respect to prior year calculations 
of income not subject to subparagraph (B), a 
public housing agency or owner may make other 
adjustments as it considers appropriate to re-
flect current income. 
‘‘(D) SAFE
HARBOR.—A public housing 
agency or owner may, to the extent such infor-
mation is available to the public housing agency 
or owner, determine the family’s income prior 
to the application of any deductions based on 
timely income determinations made for pur-
poses of other means-tested Federal public as-
sistance programs (including the program for 
block grants to States for temporary assistance 
for needy families under part A of title IV of 
the Social Security Act, a program for Medicaid 
assistance under a State plan approved under 
title XIX of the Social Security Act, and the 
supplemental nutrition assistance program (as 
such term is defined in section 3 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2012))).
The Secretary shall, in consultation with other 
appropriate Federal agencies, develop electronic 
procedures to enable public housing agencies 
and owners to have access to such benefit deter-
minations made by other means-tested Federal 
programs that the Secretary determines to have 
comparable reliability. Exchanges of such infor-
mation shall be subject to the same limitations 
and tenant protections provided under section 
904 of the Stewart B. McKinney Homeless As-
sistance Act Amendments of 1988 (42 U.S.C. 
3544) with respect to information obtained 
under the requirements of section 303(i) of the 
Social Security Act (42 U.S.C. 503(i)). 
‘‘(E) 
ELECTRONIC
INCOME 
VERIFICATION.—The Secretary shall develop a 
mechanism for disclosing information to a pub-
lic housing agency for the purpose of verifying 
the employment and income of individuals and 
families in accordance with section 453(j)(7)(E) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
653(j)(7)(E)), and shall ensure public housing 
agencies have access to information contained 
in the ‘Do Not Pay’ system established by sec-
tion 5 of the Improper Payments Elimination
and Recovery Improvement Act of 2012 (Public 
Law 112–248; 126 Stat. 2392). 
‘‘(F) PHA AND OWNER COMPLIANCE.—A 
public housing agency or owner may not be con-
sidered to fail to comply with this paragraph or 
paragraph (6) due solely to any de minimis er-
rors made by the agency or owner in calculating 
family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as sub-
section (d). 
(b) CERTIFICATION REGARDING HARDSHIP EXCEP-
TION TO MINIMUM MONTHLY RENT.—Not later than the 
expiration of the 6-month period beginning on the date 
of the enactment of this Act, the Secretary of Housing 
and Urban Development shall submit to the Congress a 
certification that the hardship and tenant protection provi-
sions in clause (i) of section 3(a)(3)(B) of the United 
States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(a)(3)(B)(i)) are being enforced at such time and 
that the Secretary will continue to provide due consider-
ation to the hardship circumstances of persons assisted 
under relevant programs of this Act. 
(c) INCOME; ADJUSTED INCOME.—Section 3(b) of 
the United States Housing Act of 1937 (42 U.S.C.
1437a(b)) is amended by striking paragraphs (4) and (5) 
and inserting the following new paragraphs: 
‘‘(4) INCOME.—The term ‘income’ means, with 
respect to a family, income received from all sources 
by each member of the household who is 18 years 
of age or older or is the head of household or spouse 
of the head of the household, plus unearned income 
by or on behalf of each dependent who is less than 
18 years of age, as determined in accordance with 
criteria prescribed by the Secretary, in consultation 
with the Secretary of Agriculture, subject to the fol-
lowing requirements: 
‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual in-
come from assets, and profit or loss from a 
business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include— 
‘‘(i) any imputed return on assets, ex-
cept to the extent that net family assets 
exceed $50,000, except that such amount 
(as it may have been previously adjusted) 
shall be adjusted for inflation annually by 
the Secretary in accordance with an infla-
tionary index selected by the Secretary;
‘‘(ii) any amounts that would be eligi-
ble for exclusion under section 1613(a)(7) 
of the Social Security Act (42 U.S.C. 
1382b(a)(7)); 
‘‘(iii) deferred disability benefits from 
the Department of Veterans Affairs that 
are received in a lump sum amount or in 
prospective monthly amounts; 
‘‘(iv) any expenses related to aid and 
attendance under section 1521 of title 38, 
United States Code, to veterans who are in 
need of regular aid and attendance; and 
‘‘(v) exclusions from income as estab-
lished by the Secretary by regulation or 
notice, or any amount required by Federal 
law to be excluded from consideration as 
income. 
‘‘(C) EARNED
INCOME
OF
STUDENTS.— 
Such term does not include— 
‘‘(i) earned income, up to an amount 
as the Secretary may by regulation estab-
lish, of any dependent earned during any 
period that such dependent is attending 
school or vocational training on a full-time 
basis; or
‘‘(ii) any grant-in-aid or scholarship 
amounts related to such attendance used— 
‘‘(I) for the cost of tuition or 
books; or 
‘‘(II) in such amounts as the Sec-
retary may allow, for the cost of room 
and board. 
‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 
Income shall be determined without regard to 
any amounts in or from, or any benefits from, 
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. 
‘‘(E) 
RECORDKEEPING.—The 
Secretary 
may not require a public housing agency or 
owner to maintain records of any amounts ex-
cluded from income pursuant to this subpara-
graph. 
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted 
income’ means, with respect to a family, the amount 
(as determined by the public housing agency or 
owner) of the income of the members of the family 
residing in a dwelling unit or the persons on a lease, 
after any deductions from income as follows:
‘‘(A) ELDERLY
AND
DISABLED
FAMI-
LIES.—$525 in the case of any family that is 
an elderly family or a disabled family. 
‘‘(B) MINORS, STUDENTS, AND PERSONS 
WITH DISABILITIES.—$480 for each member of 
the family residing in the household (other than 
the head of the household or his or her spouse) 
who is less than 18 years of age or is attending 
school or vocational training on a full-time 
basis, or who is 18 years of age or older and 
is a person with disabilities. 
‘‘(C) CHILD CARE.—Any reasonable child 
care expenses necessary to enable a member of 
the family to be employed or to further his or 
her education. 
‘‘(D) HEALTH AND MEDICAL EXPENSES.— 
The amount, if any, by which 10 percent of an-
nual family income is exceeded by the sum of— 
‘‘(i) in the case of any elderly or dis-
abled family, any unreimbursed health and 
medical care expenses; and 
‘‘(ii) any unreimbursed reasonable at-
tendant care and auxiliary apparatus ex-
penses for each handicapped member of 
the family, if determined necessary by the
public housing agency or owner to enable 
any member of such family to be employed. 
The Secretary shall, by regulation, provide 
hardship exemptions to the requirements of this 
subparagraph and subparagraph (C) for im-
pacted families who demonstrate an inability to 
pay calculated rents because of financial hard-
ship. Such regulations shall include a require-
ment to notify tenants regarding any changes 
to the determination of adjusted income pursu-
ant to such subparagraphs based on the deter-
mination of the family’s claim of financial hard-
ship exemptions required by the preceding sen-
tence. Such regulations shall be promulgated in 
consultation with tenant organizations, industry 
participants, and the Secretary of Health and 
Human Services, with an adequate comment 
period provided for interested parties. 
‘‘(E) PERMISSIVE DEDUCTIONS.—Such ad-
ditional deductions as a public housing agency 
may, at its discretion, establish, except that the 
Secretary shall establish procedures to ensure 
that such deductions do not materially increase 
Federal expenditures.
The Secretary shall annually calculate the amounts 
of the deductions under subparagraphs (A) and (B), 
as such amounts may have been previously cal-
culated, by applying an inflationary factor as the 
Secretary shall, by regulation, establish, except that 
the actual deduction determined for each year shall 
be established by rounding such amount to the next 
lowest multiple of $25.’’. 
(d) HOUSING CHOICE VOUCHER PROGRAM.—Section 
8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended— 
(1) in paragraph (1)(D), by inserting before the 
period at the end the following: ‘‘, except that a pub-
lic housing agency may establish a payment stand-
ard of not more than 120 percent of the fair market 
rent where necessary as a reasonable accommodation 
for a person with a disability, without approval of 
the Secretary. A public housing agency may use a 
payment standard that is greater than 120 percent 
of the fair market rent as a reasonable accommoda-
tion for a person with a disability, but only with the 
approval of the Secretary. In connection with the use 
of any increased payment standard established or 
approved pursuant to either of the preceding two 
sentences as a reasonable accommodation for a per-
son with a disability, the Secretary may not estab-
lish additional requirements regarding the amount of 
adjusted income paid by such person for rent’’; and 
(2) in paragraph (5)— 
(A) in the paragraph heading, by striking 
‘‘ANNUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 
(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 con-
ducted’’ and all that follows through the 
end of the subparagraph and inserting a 
period; and 
(C) in subparagraph (B), by striking the 
second sentence. 
(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 ad-
justed 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 Sec-
retary may make appropriate adjustments in the for-
mula income for such year of those agencies experi-
encing such a reduction. 
(2) HUD REPORTS ON REVENUE AND COST IM-
PACT.—In each of the first two years after the first 
year in which subsections (a) through (e) are imple-
mented, the Secretary of Housing and Urban Devel-
opment 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 reve-
nues and costs of operating public housing units, the 
voucher program 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 Development shall conduct a study to deter-
mine the impacts, on rents paid by elderly and dis-
abled individuals and families assisted under the sec-
tion 8 rental assistance and public housing programs 
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 pur-
poses 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.
(2) REPORT.—The Secretary shall submit to 
the Congress a report setting forth the results of the 
study conducted pursuant to paragraph (1) not later 
than the expiration of the 12-month period begin-
ning on the date of the enactment of this Act. 
(3) EFFECTIVE
DATE.—Notwithstanding sub-
section (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-IN-
COME FAMILIES.— 
‘‘(A) LIMITATIONS.—Except as provided in 
subparagraph (D), in the case of any family re-
siding in a dwelling unit of public housing 
whose income for the most recent two consecu-
tive 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 provi-
sion 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 established under section 8(c) 
for a dwelling unit in the same mar-
ket area of the same size; or 
‘‘(II) the amount of the monthly 
subsidy provided 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 accordance with regula-
tions 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 determination de-
scribed 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 appli-
cable 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 subpara-
graph (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 me-
dian income on the basis of the Secretary’s 
findings that such variations are necessary be-
cause of prevailing levels of construction costs, 
or unusually high or low family incomes, va-
cancy rates, or rental costs. 
‘‘(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 re-
quire 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 resid-
ing, as of the end of the year for 
which the report is submitted, in pub-
lic housing administered by the agen-
cy who had incomes exceeding the ap-
plicable income limitation under sub-
paragraph (C); and 
‘‘(II) the number of families, as 
of the end of such year, on the wait-
ing lists for admission to public hous-
ing 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 sub-
section (d) the following new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS-
SETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to para-
graph (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 recer-
tification 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 Sec-
retary 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 suit-
able for occupancy by the family as a residence, 
except that the prohibition under this subpara-
graph 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 do-
mestic 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 assist-
ance under subsection (y) or (o)(12) of section 
8, equity accounts in homeownership programs 
of the Department of Housing and Urban De-
velopment, or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not 
include— 
‘‘(i) the value of personal property, ex-
cept for items of personal property of sig-
nificant value, as the Secretary may estab-
lish or the public housing agency may de-
termine; 
‘‘(ii) the value of any retirement ac-
count; 
‘‘(iii) real property for which the fam-
ily does not have the effective legal author-
ity necessary to sell such property; 
‘‘(iv) any amounts recovered in any 
civil action or settlement based on a claim 
of malpractice, negligence, 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 edu-
cation savings account under section 530 
of the Internal Revenue Code of 1986 or 
any qualified tuition program under sec-
tion 529 of such Code; and 
‘‘(vi) such other exclusions as the Sec-
retary 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 household, 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 ex-
penses 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 Sec-
retary considers appropriate. 
‘‘(B) NO CURRENT REAL PROPERTY OWN-
ERSHIP.—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 Sec-
retary 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 pol-
icy 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 as-
sisted under this Act, a public housing agency or 
owner may choose not to enforce the limitation 
under paragraph (1) or may establish exceptions to 
such limitation based on eligibility criteria, but only 
pursuant to a policy that is set forth in the public 
housing agency plan under section 5A for the agency 
or under a policy adopted by the owner. Eligibility 
criteria for establishing exceptions may provide for 
separate treatment based on family type and may be 
based on different factors, such as age, disability, in-
come, the ability of the family to find suitable alter-
native housing, and whether supportive services are 
being provided. 
‘‘(6) AUTHORITY TO DELAY EVICTIONS.—In the 
case of a family residing in a dwelling unit assisted 
under this Act who does not comply with the limita-
tion under paragraph (1), the public housing agency 
or project owner may delay eviction or termination 
of the family based on such noncompliance for a pe-
riod of not more than 6 months. 
‘‘(7) VERIFYING INCOME.— 
‘‘(A) Beginning in fiscal year 2018, the 
Secretary shall require public housing agencies
to require each applicant for, or recipient of, 
benefits under this Act to provide authorization 
by the applicant or recipient (or by any other 
person whose income or resources are material 
to the determination of the eligibility of the ap-
plicant or recipient for such benefits) for the 
public housing agency to obtain (subject to the 
cost reimbursement requirements of section 
1115(a) of the Right to Financial Privacy Act) 
from any financial institution (within the mean-
ing of section 1101(1) of such Act) any finan-
cial record (within the meaning of section 
1101(2) of such Act) held by the institution 
with respect to the applicant or recipient (or 
any such other person) whenever the public 
housing agency determines the record is needed 
in connection with a determination with respect 
to such eligibility or the amount of such bene-
fits. 
‘‘(B) Notwithstanding section 1104(a)(1) 
of the Right to Financial Privacy Act, an au-
thorization provided by an applicant or recipi-
ent (or any other person whose income or re-
sources are material to the determination of the 
eligibility of the applicant or recipient) pursuant
to subparagraph (A) of this paragraph shall re-
main effective until the earliest of— 
‘‘(i) the rendering of a final adverse 
decision on the applicant’s application for 
eligibility for benefits under this Act; 
‘‘(ii) the cessation of the recipient’s 
eligibility for benefits under this Act; or 
‘‘(iii) the express revocation by the ap-
plicant or recipient (or such other person 
referred to in subparagraph (A)) of the au-
thorization, in a written notification to the 
Secretary. 
‘‘(C)(i) An authorization obtained by the 
public housing agency pursuant to this para-
graph shall be considered to meet the require-
ments of the Right to Financial Privacy Act for 
purposes of section 1103(a) of such Act, and 
need not be furnished to the financial institu-
tion, notwithstanding section 1104(a) of such 
Act. 
‘‘(ii) The certification requirements of sec-
tion 1103(b) of the Right to Financial Privacy 
Act shall not apply to requests by the public 
housing agency pursuant to an authorization 
provided under this clause.
‘‘(iii) A request by the public housing 
agency pursuant to an authorization provided 
under this clause is deemed to meet the require-
ments of section 1104(a)(3) of the Right to Fi-
nancial Privacy Act and the flush language of 
section 1102 of such Act. 
‘‘(iv) The public housing agency shall in-
form any person who provides authorization 
pursuant to this paragraph of the duration and 
scope of the authorization. 
‘‘(D) If an applicant for, or recipient of, 
benefits under this Act (or any such other per-
son referred to in subparagraph (A)) refuses to 
provide, or revokes, any authorization made by 
the applicant or recipient for the public housing 
agency to obtain from any financial institution 
any financial record, the public housing agency 
may, on that basis, determine that the appli-
cant or recipient is ineligible for benefits under 
this title.’’. 
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES. 
Paragraph (11) of section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(11)) is amend-
ed—
member or general partner of an entity which 
owns the unit.’’. 
SEC. 106. PHA PROJECT-BASED ASSISTANCE. 
(a) IN GENERAL.—Paragraph (13) of section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)) is amended— 
(1) by striking ‘‘structure’’ each place such 
term appears and inserting ‘‘project’’; 
(2) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), a public housing agency may use for 
project-based assistance under this para-
graph not more than 20 percent of the au-
thorized units for the agency. 
‘‘(ii) EXCEPTION.—A public housing 
agency may use up to an additional 10 
percent of the authorized units for the 
agency for project-based assistance under 
this paragraph, to provide units that house 
individuals and families that meet the defi-
nition of homeless under section 103 of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11302), that house families
with veterans, that provide supportive 
housing to persons with disabilities or el-
derly persons, or that are located in areas 
where vouchers under this subsection are 
difficult to use, as specified in subpara-
graph (D)(ii)(II). Any units of project- 
based assistance that are attached to units 
previously subject to federally required 
rent restrictions or receiving another type 
of long-term housing subsidy provided by 
the Secretary shall not count toward the 
percentage limitation under clause (i) of 
this subparagraph. The Secretary may, by 
regulation, establish additional categories 
for the exception under this clause.’’; 
(3) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) INCOME-MIXING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), not more than the 
greater of 25 dwelling units or 25 percent 
of the dwelling units in any project may be 
assisted under a housing assistance pay-
ment contract for project-based assistance 
pursuant to this paragraph. For purposes
of this subparagraph, the term ‘project’ 
means a single building, multiple contig-
uous buildings, or multiple buildings on 
contiguous parcels of land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) CERTAIN
FAMILIES.—The 
limitation under clause (i) shall not 
apply to dwelling units assisted under 
a contract that are exclusively made 
available to elderly families or to 
households eligible for supportive serv-
ices that are made available to the as-
sisted residents of the project, accord-
ing to standards for such services the 
Secretary may establish. 
‘‘(II) CERTAIN AREAS.—With re-
spect to areas in which tenant-based 
vouchers for assistance under this 
subsection are difficult to use, as de-
termined by the Secretary, and with 
respect to census tracts with a poverty 
rate of 20 percent or less, clause (i) 
shall be applied by substituting ‘40 
percent’ for ‘25 percent’, and the Sec-
retary may, by regulation, establish 
additional conditions. 
‘‘(III) CERTAIN
CONTRACTS.— 
The limitation under clause (i) shall 
not apply with respect to contracts or 
renewal of contracts under which a 
greater percentage of the dwelling 
units in a project were assisted under 
a housing assistance payment contract 
for project-based assistance pursuant 
to this paragraph on the date of the 
enactment of the Housing Oppor-
tunity Through Modernization Act of 
2016. 
‘‘(IV) CERTAIN
PROPERTIES.— 
Any units of project-based assistance 
under this paragraph that are at-
tached to units previously subject to 
federally required rent restrictions or 
receiving other project-based assist-
ance provided by the Secretary shall 
not count toward the percentage limi-
tation imposed by this subparagraph 
(D).
‘‘(iii) ADDITIONAL MONITORING AND 
OVERSIGHT
REQUIREMENTS.—The 
Sec-
retary may establish additional require-
ments for monitoring and oversight of 
projects in which more than 40 percent of 
the dwelling units are assisted under a 
housing assistance payment contract for 
project-based assistance pursuant to this 
paragraph.’’; 
(4) by striking subparagraph (F) and inserting 
the following new subparagraph: 
‘‘(F) CONTRACT TERM.— 
‘‘(i) TERM.—A housing assistance 
payment contract pursuant to this para-
graph between a public housing agency 
and the owner of a project may have a 
term of up to 20 years, subject to— 
‘‘(I) the availability of sufficient 
appropriated funds for the purpose of 
renewing expiring contracts for assist-
ance payments, as provided in appro-
priation Acts and in the agency’s an-
nual contributions contract with the 
Secretary, provided that in the event 
of insufficient appropriated funds,
payments due under contracts under 
this paragraph shall take priority if 
other cost-saving measures that do 
not require the termination of an ex-
isting contract are available to the 
agency; and 
‘‘(II) compliance with the inspec-
tion requirements under paragraph 
(8), except that the agency shall not 
be required to make biennial inspec-
tions of each assisted unit in the de-
velopment. 
‘‘(ii) ADDITION OF ELIGIBLE UNITS.— 
Subject to the limitations of subparagraphs 
(B) and (D), the agency and the owner 
may add eligible units within the same 
project to a housing assistance payments 
contract at any time during the term 
thereof without being subject to any addi-
tional competitive selection procedures. 
‘‘(iii) HOUSING
UNDER
CONSTRUC-
TION
OR
RECENTLY
CONSTRUCTED.—An 
agency may enter into a housing assistance 
payments contract with an owner for any 
unit that does not qualify as existing hous-
ing and is under construction or recently 
has been constructed whether or not the 
agency has executed an agreement to enter 
into a contract with the owner, provided 
that the owner demonstrates compliance 
with applicable requirements prior to exe-
cution of the housing assistance payments 
contract. This clause shall not subject a 
housing assistance payments contract for 
existing housing under this paragraph to 
such requirements or otherwise limit the 
extent to which a unit may be assisted as 
existing housing. 
‘‘(iv) ADDITIONAL CONDITIONS.—The 
contract may specify additional conditions, 
including with respect to continuation, ter-
mination, or expiration, and shall specify 
that upon termination or expiration of the 
contract without extension, each assisted 
family may elect to use its assistance 
under this subsection to remain in the 
same project if its unit complies with the 
inspection requirements under paragraph 
(8), the rent for the unit is reasonable as 
required by paragraph (10)(A), and the
family pays its required share of the rent 
and the amount, if any, by which the unit 
rent (including the amount allowed for ten-
ant-based utilities) exceeds the applicable 
payment standard.’’; 
(5) in subparagraph (G), by striking ‘‘15 years’’ 
and inserting ‘‘20 years’’; 
(6) by striking subparagraph (I) and inserting 
the following new subparagraph: 
‘‘(I) RENT ADJUSTMENTS.—A housing as-
sistance payments contract pursuant to this 
paragraph entered into after the date of the en-
actment of the Housing Opportunity Through 
Modernization Act of 2016 shall provide for an-
nual rent adjustments upon the request of the 
owner, except that— 
‘‘(i) by agreement of the parties, a 
contract may allow a public housing agency 
to adjust the rent for covered units using 
an operating cost adjustment factor estab-
lished by the Secretary pursuant to section 
524(c) of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 
(which shall not result in a negative ad-
justment), in which case the contract may
require an additional adjustment, if re-
quested, up to the reasonable rent periodi-
cally during the term of the contract, and 
shall require such an adjustment, if re-
quested, upon extension pursuant to sub-
paragraph (G); 
‘‘(ii) the adjusted rent shall not ex-
ceed the maximum rent permitted under 
subparagraph (H); 
‘‘(iii) the contract may provide that 
the maximum rent permitted for a dwelling 
unit shall not be less than the initial rent 
for the dwelling unit under the initial 
housing assistance payments contract cov-
ering the units; and 
‘‘(iv) the provisions of subsection 
(c)(2)(C) shall not apply.’’; 
(7) in subparagraph (J)— 
(A) in the first sentence— 
(i) by striking ‘‘shall’’ and inserting 
‘‘may’’; and 
(ii) by inserting before the period the 
following: ‘‘or may permit owners to select 
applicants from site-based waiting lists as 
specified in this subparagraph’’;
(B) by striking the third sentence and in-
serting the following: ‘‘The agency or owner 
may establish preferences or criteria for selec-
tion for a unit assisted under this paragraph 
that are consistent with the public housing 
agency plan for the agency approved under sec-
tion 5A and that give preference to families 
who qualify for voluntary services, including 
disability-specific services, offered in conjunc-
tion with assisted units.’’; and 
(C) by striking the fifth and sixth sen-
tences and inserting the following: ‘‘A public 
housing agency may establish and utilize proce-
dures for owner-maintained site-based waiting 
lists, under which applicants may apply at, or 
otherwise designate to the public housing agen-
cy, the project or projects in which they seek to 
reside, except that all eligible applicants on the 
waiting list of an agency for assistance under 
this subsection shall be permitted to place their 
names on such separate list, subject to policies 
and procedures established by the Secretary. All 
such procedures shall comply with title VI of 
the Civil Rights Act of 1964, the Fair Housing 
Act, section 504 of the Rehabilitation Act of
1973, and other applicable civil rights laws. The 
owner or manager of a project assisted under 
this paragraph shall not admit any family to a 
dwelling unit assisted under a contract pursu-
ant to this paragraph other than a family re-
ferred by the public housing agency from its 
waiting list, or a family on a site-based waiting 
list that complies with the requirements of this 
subparagraph. A public housing agency shall 
disclose to each applicant all other options in 
the selection of a project in which to reside that 
are provided by the public housing agency and 
are available to the applicant.’’; 
(8) in subparagraph (M)(ii), by inserting before 
the period at the end the following: ‘‘relating to 
funding other than housing assistance payments’’; 
and 
(9) by adding at the end the following new sub-
paragraphs: 
‘‘(N) STRUCTURE OWNED BY AGENCY.—A 
public housing agency engaged in an initiative 
to improve, develop, or replace a public housing 
property or site may attach assistance to an ex-
isting, newly constructed, or rehabilitated struc-
ture in which the agency has an ownership in-
terest or which the agency has control of with-
out following a competitive process, provided 
that the agency has notified the public of its in-
tent through its public housing agency plan and 
subject to the limitations and requirements of 
this paragraph. 
‘‘(O) SPECIAL
PURPOSE
VOUCHERS.—A 
public housing agency that administers vouch-
ers authorized under subsection (o)(19) or (x) 
of this section may provide such assistance in 
accordance with the limitations and require-
ments of this paragraph, without additional re-
quirements for approval by the Secretary.’’. 
(b) EFFECTIVE DATE.—The Secretary of Housing 
and Urban Development shall issue notice or regulations 
to implement subsection (a) of this section and such sub-
section shall take effect upon such issuance. 
SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT. 
(a) IN GENERAL.—Paragraph (1) of section 8(c) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(c)(1)) is amended— 
(1) by inserting ‘‘(A)’’ after the paragraph des-
ignation; 
(2) by striking the fourth, seventh, eighth, and 
ninth sentences; and
(3) by adding at the end the following: 
‘‘(B) Fair market rentals for an area shall be pub-
lished not less than annually by the Secretary on the site 
of the Department on the World Wide Web and in any 
other manner specified by the Secretary. Notice that such 
fair market rentals are being published shall be published 
in the Federal Register, and such fair market rentals shall 
become effective no earlier than 30 days after the date 
of such publication. The Secretary shall establish a proce-
dure for public housing agencies and other interested par-
ties to comment on such fair market rentals and to re-
quest, within a time specified by the Secretary, reevalua-
tion of the fair market rentals in a jurisdiction before such 
rentals become effective. The Secretary shall cause to be 
published for comment in the Federal Register notices of 
proposed material changes in the methodology for esti-
mating fair market rentals and notices specifying the final 
decisions regarding such proposed substantial methodo-
logical changes and responses to public comments.’’. 
(b) PAYMENT STANDARD.—Subparagraph (B) of sec-
tion 8(o)(1) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)(1)(B)) is amended by inserting be-
fore the period at the end the following: ‘‘, except that 
no public housing agency shall be required as a result of 
a reduction in the fair market rental to reduce the pay-
ment standard applied to a family continuing to reside in 
a unit for which the family was receiving assistance under 
this section at the time the fair market rental was reduced. 
The Secretary shall allow public housing agencies to re-
quest exception payment standards within fair market 
rental areas subject to criteria and procedures established 
by the Secretary’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect upon the date of the enact-
ment of this Act. 
SEC. 108. COLLECTION OF UTILITY DATA. 
Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following new paragraph: 
‘‘(20) COLLECTION OF UTILITY DATA.— 
‘‘(A) PUBLICATION.—The Secretary shall, 
to the extent that data can be collected cost ef-
fectively, regularly publish such data regarding 
utility consumption and costs in local areas as 
the Secretary determines will be useful for the 
establishment of allowances for tenant-paid util-
ities for families assisted under this subsection. 
‘‘(B) USE OF DATA.—The Secretary shall 
provide such data in a manner that—
‘‘(i) avoids unnecessary administrative 
burdens for public housing agencies and 
owners; and 
‘‘(ii) protects families in various unit 
sizes and building types, and using various 
utilities, from high rent and utility cost 
burdens relative to income.’’. 
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING 
FUNDS. 
(a) CAPITAL FUND REPLACEMENT RESERVES.—Sec-
tion 9 of the United States Housing Act of 1937 (42 
U.S.C. 1437g) is amended— 
(1) in subsection (j), by adding at the end the 
following new paragraph: 
‘‘(7) 
TREATMENT
OF
REPLACEMENT
RE-
SERVE.—The requirements of this subsection shall 
not apply to funds held in replacement reserves es-
tablished pursuant to subsection (n).’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(n) 
ESTABLISHMENT
OF
REPLACEMENT
RE-
SERVES.— 
‘‘(1) IN
GENERAL.—Public housing agencies 
shall be permitted to establish a replacement reserve
to fund any of the capital activities listed in sub-
section (d)(1). 
‘‘(2) SOURCE AND AMOUNT OF FUNDS FOR RE-
PLACEMENT RESERVE.—At any time, a public hous-
ing agency may deposit funds from such agency’s 
Capital Fund into a replacement reserve, subject to 
the following: 
‘‘(A) At the discretion of the Secretary, 
public housing agencies may transfer and hold 
in a replacement reserve funds originating from 
additional sources. 
‘‘(B) No minimum transfer of funds to a 
replacement reserve shall be required. 
‘‘(C) At any time, a public housing agency 
may not hold in a replacement reserve more 
than the amount the public housing authority 
has determined necessary to satisfy the antici-
pated capital needs of properties in its portfolio 
assisted under this section, as outlined in its 
Capital Fund 5-Year Action Plan, or a com-
parable plan, as determined by the Secretary. 
‘‘(D) The Secretary may establish, by reg-
ulation, a maximum replacement reserve level 
or levels that are below amounts determined 
under subparagraph (C), which may be based
upon the size of the portfolio assisted under 
this section or other factors. 
‘‘(3) TRANSFER
OF
OPERATING
FUNDS.—In 
first establishing a replacement reserve, the Sec-
retary may allow public housing agencies to transfer 
more than 20 percent of its operating funds into its 
replacement reserve. 
‘‘(4) EXPENDITURE.—Funds in a replacement 
reserve may be used for purposes authorized by sub-
section (d)(1) and contained in its Capital Fund 5- 
Year Action Plan. 
‘‘(5) MANAGEMENT
AND
REPORT.—The Sec-
retary shall establish appropriate accounting and re-
porting requirements to ensure that public housing 
agencies are spending funds on eligible projects and 
that funds in the replacement reserve are connected 
to capital needs.’’. 
(b) FLEXIBILITY OF OPERATING FUND AMOUNTS.— 
Paragraph (1) of section 9(g) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437g(g)(1)) is amended— 
(1) by striking ‘‘(1)’’ and all that follows 
through ‘‘—Of’’ and inserting the following: 
‘‘(1) FLEXIBILITY IN USE OF FUNDS.— 
‘‘(A) FLEXIBILITY
FOR
CAPITAL
FUND 
AMOUNTS.—Of’’; and
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) FLEXIBILITY FOR OPERATING FUND 
AMOUNTS.—Of any amounts appropriated for 
fiscal year 2016 or any fiscal year thereafter 
that are allocated for fiscal year 2016 or any 
fiscal year thereafter from the Operating Fund 
for any public housing agency, the agency may 
use not more than 20 percent for activities that 
are eligible under subsection (d) for assistance 
with amounts from the Capital Fund, but only 
if the public housing plan under section 5A for 
the agency provides for such use.’’. 
SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN 
AGING OUT OF FOSTER CARE. 
Section 8(x) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(x)) is amended— 
(1) in paragraph (2)(B)— 
(A) by striking ‘‘18 months’’ and inserting 
‘‘36 months’’; 
(B) by striking ‘‘21 years of age’’ and in-
serting ‘‘24 years of age’’; and 
(C) by inserting after ‘‘have left foster 
care’’ the following: ‘‘, or will leave foster care 
within 90 days, in accordance with a transition
plan described in section 475(5)(H) of the So-
cial Security Act, and is homeless or is at risk 
of becoming homeless’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) COORDINATION BETWEEN PUBLIC HOUS-
ING AGENCIES AND PUBLIC CHILD WELFARE AGEN-
CIES.—The Secretary shall, not later than the expi-
ration of the 180-day period beginning on the date 
of the enactment of the Housing Opportunity 
Through Modernization Act of 2016 and after con-
sultation with other appropriate Federal agencies, 
issue guidance to improve coordination between pub-
lic housing agencies and public child welfare agen-
cies in carrying out the program under this sub-
section, which shall provide guidance on— 
‘‘(A) identifying eligible recipients for as-
sistance under this subsection; 
‘‘(B) coordinating with other local youth 
and family providers in the community and par-
ticipating in the Continuum of Care program 
established under subtitle C of title IV of the
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11381 et seq.); 
‘‘(C) implementing housing strategies to 
assist eligible families and youth; 
‘‘(D) aligning system goals to improve out-
comes for families and youth and reducing 
lapses in housing for families and youth; and 
‘‘(E) identifying resources that are avail-
able to eligible families and youth to provide 
supportive services available through parts B 
and E of title IV of the Social Security Act (42 
U.S.C. 621 et seq.; 670 et seq.) or that the 
head of household of a family or youth may be 
entitled to receive under section 477 of the So-
cial Security Act (42 U.S.C. 677).’’. 
SEC. 111. PUBLIC HOUSING HEATING GUIDELINES. 
Section 9 of the United States Housing Act of 1937 
(42 U.S.C. 1437g), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end 
the following new subsection: 
‘‘(o) PUBLIC HOUSING HEATING GUIDELINES.—The 
Secretary shall publish model guidelines for minimum 
heating requirements for public housing dwelling units op-
erated by public housing agencies receiving assistance 
under this section.’’.
SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUS-
ING. 
(a) IN GENERAL.—Section 8(o)(12) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(12)) is 
amended— 
(1) in subparagraph (A), by striking the period 
at the end of the first sentence and all that follows 
through ‘‘of’’ in the second sentence and inserting 
‘‘and rents’’; and 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘the rent’’ 
and all that follows and inserting the following: 
‘‘rent shall mean the sum of the monthly pay-
ments made by a family assisted under this 
paragraph to amortize the cost of purchasing 
the manufactured home, including any required 
insurance and property taxes, the monthly 
amount allowed for tenant-paid utilities, and 
the monthly rent charged for the real property 
on which the manufactured home is located, in-
cluding monthly management and maintenance 
charges.’’; 
(B) by striking clause (ii); and 
(C) in clause (iii)— 
(i) by inserting after the period at the 
end the following: ‘‘If the amount of the
monthly assistance payment for a family 
exceeds the monthly rent charged for the 
real property on which the manufactured 
home is located, including monthly man-
agement and maintenance charges, a pub-
lic housing agency may pay the remainder 
to the family, lender or utility company, or 
may choose to make a single payment to 
the family for the entire monthly assist-
ance amount.’’; and 
(ii) by redesignating such clause as 
clause (ii). 
(b) EFFECTIVE DATE.—The Secretary of Housing 
and Urban Development shall issue notice to implement 
the amendments made by subsection (a) and such amend-
ments shall take effect upon such issuance. 
SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR 
NATIONALS. 
Section 214(a)(7) of the Housing and Community 
Development Act of 1980 (42 U.S.C. 1436a(a)(7)) is 
amended by striking ‘‘such alien’’ and all that follows 
through the period at the end and inserting ‘‘any citizen 
or national of the United States shall be entitled to a pref-
erence or priority in receiving financial assistance before 
any such alien who is otherwise eligible for assistance.’’.
SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESI-
DENT BOARD MEMBER REQUIREMENT. 
Subsection (b) of section 2 of the United States 
Housing Act of 1937 (42 U.S.C. 1437(b)) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraphs (2) and (3)’’; 
(2) by redesignating paragraph (3) as para-
graph (4); and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) EXCEPTION
FOR
CERTAIN
JURISDIC-
TIONS.— 
‘‘(A) EXCEPTION.—A covered agency (as 
such term is defined in subparagraph (C) of 
this paragraph) shall not be required to include 
on the board of directors or a similar governing 
board of such agency a member described in 
paragraph (1). 
‘‘(B) ADVISORY BOARD REQUIREMENT.— 
Each covered agency that administers Federal 
housing assistance under section 8 (42 U.S.C. 
1437f) that chooses not to include a member 
described in paragraph (1) on the board of di-
rectors or a similar governing board of the 
agency shall establish an advisory board of not 
less than 6 residents of public housing or recipi-
ents of assistance under section 8 (42 U.S.C. 
1437f) to provide advice and comment to the 
agency or other administering entity on issues 
related to public housing and section 8. Such 
advisory board shall meet not less than quar-
terly. 
‘‘(C) COVERED AGENCY OR ENTITY.—For 
purposes of this paragraph, the term ‘covered 
agency’ means a public housing agency or such 
other entity that administers Federal housing 
assistance for— 
‘‘(I) the Housing Authority of the 
county of Los Angeles, California; or 
‘‘(ii) any of the States of Alaska, 
Iowa, and Mississippi.’’. 
TITLE II—RURAL HOUSING 
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING 
LOAN APPROVAL. 
Subsection (h) of section 502 of the Housing Act of 
1949 (42 U.S.C. 1472(h)) is amended by adding at the 
end the following new paragraph: 
‘‘(18) DELEGATION OF APPROVAL.—The Sec-
retary may delegate, in part or in full, the Sec-
retary’s authority to approve and execute binding 
Rural Housing Service loan guarantees pursuant to
this subsection to certain preferred lenders, in ac-
cordance with standards established by the Sec-
retary.’’. 
SEC. 202. GUARANTEED UNDERWRITING USER FEE. 
Section 502 of the Housing Act of 1949 (42 U.S.C. 
1472) is amended by adding at the end the following new 
subsection: 
‘‘(i) GUARANTEED UNDERWRITING USER FEE.— 
‘‘(1) AUTHORITY; 
MAXIMUM
AMOUNT.—The 
Secretary may assess and collect a fee for a lender 
to access the automated underwriting systems of the 
Department in connection with such lender’s partici-
pation in the single family loan program under this 
section and only in an amount necessary to cover the 
costs of information technology enhancements, im-
provements, maintenance, and development for auto-
mated underwriting systems used in connection with 
the single family loan program under this section, 
except that such fee shall not exceed $50 per loan. 
‘‘(2) CREDITING; AVAILABILITY.—Any amounts 
collected from such fees shall be credited to the 
Rural Development Expense Account as offsetting 
collections and shall remain available until expended, 
in the amounts provided in appropriation Acts, sole-
ly for expenses described in paragraph (1).’’.
TITLE III—FHA MORTGAGE IN-
SURANCE 
FOR 
CONDOMIN-
IUMS 
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR 
MORTGAGE 
INSURANCE 
FOR 
CONDOMIN-
IUMS. 
Section 203 of the National Housing Act (12 U.S.C. 
1709) is amended by adding at the end the following new 
subsection: 
‘‘(y) REQUIREMENTS
FOR MORTGAGES
FOR CON-
DOMINIUMS.— 
‘‘(1) PROJECT
RECERTIFICATION
REQUIRE-
MENTS.—Notwithstanding any other law, regulation, 
or guideline of the Secretary, including chapter 2.4 
of the Condominium Project Approval and Proc-
essing Guide of the FHA, the Secretary shall 
streamline the project certification requirements that 
are applicable to the insurance under this section for 
mortgages for condominium projects so that recer-
tifications are substantially less burdensome than 
certifications. The Secretary shall consider length-
ening the time between certifications for approved 
properties, and allowing updating of information 
rather than resubmission.
‘‘(2) COMMERCIAL
SPACE
REQUIREMENTS.— 
Notwithstanding any other law, regulation, or guide-
line of the Secretary, including chapter 2.1.3 of the 
Condominium Project Approval and Processing 
Guide of the FHA, in providing for exceptions to the 
requirement for the insurance of a mortgage on a 
condominium property under this section regarding 
the percentage of the floor space of a condominium 
property that may be used for nonresidential or com-
mercial purposes, the Secretary shall provide that— 
‘‘(A) any request for such an exception and 
the determination of the disposition of such re-
quest may be made, at the option of the re-
quester, under the direct endorsement lender 
review and approval process or under the HUD 
review and approval process through the appli-
cable field office of the Department; and 
‘‘(B) in determining whether to allow such 
an exception for a condominium property, fac-
tors relating to the economy for the locality in 
which such project is located or specific to 
project, including the total number of family 
units in the project, shall be considered. 
Not later than the expiration of the 90-day period 
beginning on the date of the enactment of this para-
graph, the Secretary shall issue regulations to imple-
ment this paragraph, which shall include any stand-
ards, training requirements, and remedies and pen-
alties that the Secretary considers appropriate. 
‘‘(3) TRANSFER
FEES.—Notwithstanding any 
other law, regulation, or guideline of the Secretary, 
including chapter 1.8.8 of the Condominium Project 
Approval and Processing Guide of the FHA and sec-
tion 203.41 of the Secretary’s regulations (24 CFR 
203.41), existing standards of the Federal Housing 
Finance Agency relating to encumbrances under pri-
vate transfer fee covenants shall apply to the insur-
ance of mortgages by the Secretary under this sec-
tion to the same extent and in the same manner that 
such standards apply to the purchasing, investing in, 
and otherwise dealing in mortgages by the Federal 
National Mortgage Association and the Federal 
Home Loan Mortgage Corporation. If the provisions 
of part 1228 of the Director of the Federal Housing 
Finance Agency’s regulations (12 CFR part 1228) 
are amended or otherwise changed after the date of 
the enactment of this paragraph, the Secretary of 
Housing and Urban Development shall adopt any 
such amendments or changes for purposes of this 
paragraph, unless the Secretary causes to be pub-
lished in the Federal Register a notice explaining 
why the Secretary will disregard such amendments 
or changes within 90 days after the effective date of 
such amendments or changes. 
‘‘(4) OWNER-OCCUPANCY REQUIREMENT.— 
‘‘(A) ESTABLISHMENT
OF
PERCENTAGE 
REQUIREMENT.—Not later than the expiration 
of the 90-day period beginning on the date of 
the enactment of this paragraph, the Secretary 
shall, by rule, notice, or mortgagee letter, issue 
guidance regarding the percentage of units that 
must be occupied by the owners as a principal 
residence or a secondary residence (as such 
terms are defined by the Secretary), or must 
have been sold to owners who intend to meet 
such occupancy requirements, including jus-
tifications for the percentage requirements, in 
order for a condominium project to be accept-
able to the Secretary for insurance under this 
section of a mortgage within such condominium 
property. 
‘‘(B) FAILURE TO ACT.—If the Secretary 
fails to issue the guidance required under sub-
paragraph (A) before the expiration of the 90-
day period specified in such clause, the fol-
lowing provisions shall apply: 
‘‘(i) 35 PERCENT REQUIREMENT.—In 
order for a condominium project to be ac-
ceptable to the Secretary for insurance 
under this section, at least 35 percent of 
all family units (including units not cov-
ered by FHA-insured mortgages) must be 
occupied by the owners as a principal resi-
dence or a secondary residence (as such 
terms are defined by the Secretary), or 
must have been sold to owners who intend 
to meet such occupancy requirement. 
‘‘(ii) OTHER
CONSIDERATIONS.—The 
Secretary may increase the percentage ap-
plicable pursuant to clause (i) to a condo-
minium project on a project-by-project or 
regional basis, and in determining such 
percentage for a project shall consider fac-
tors relating to the economy for the local-
ity in which such project is located or spe-
cific to project, including the total number 
of family units in the project.’’.
TITLE 
IV—HOUSING 
REFORMS 
FOR THE HOMELESS AND FOR 
VETERANS 
SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CON-
TINUUM OF CARE PROGRAM. 
(a) DEFINITION.—Subtitle C of the McKinney-Vento 
Homeless Assistance Act is amended— 
(1) by redesignating sections 432 and 433 (42 
U.S.C. 11387, 11388) as sections 433 and 434, re-
spectively; and 
(2) by inserting after section 431 (42 U.S.C. 
11386e) the following new section: 
‘‘SEC. 432. GEOGRAPHIC AREAS. 
‘‘(a) REQUIREMENT TO DEFINE.—For purposes of 
this subtitle, the term ‘geographic area’ shall have such 
meaning as the Secretary shall by notice provide. 
‘‘(b) ISSUANCE OF NOTICE.—Not later than the expi-
ration of the 90-day period beginning on the date of the 
enactment of the Housing Opportunity Through Mod-
ernization Act of 2016, the Secretary shall issue a notice 
setting forth the definition required by subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 101(b) of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11301 note) is amended by striking
the items relating to sections 432 and 433 and inserting 
the following new items: 
‘‘Sec. 432. Geographic areas. 
‘‘Sec. 433. Regulations. 
‘‘Sec. 434. Reports to Congress.’’. 
SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND 
LOCAL REDEVELOPMENT AUTHORITIES IN 
EMERGENCY SOLUTIONS GRANTS. 
Section 414(c) of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11373(c)) is amended— 
(1) in the subsection heading, by inserting ‘‘, 
PUBLIC HOUSING AGENCIES, AND LOCAL REDEVEL-
OPMENT
AUTHORITIES’’ after ‘‘ORGANIZATIONS’’; 
and 
(2) in the first sentence, by inserting before the 
period at the end the following: ‘‘, to public housing 
agencies (as defined under section 3(b)(6) of the 
United States Housing Act of 1937), or to local re-
development authorities (as defined under State 
law)’’. 
SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN 
THE DEPARTMENT OF HOUSING AND URBAN 
DEVELOPMENT. 
(a) TRANSFER OF POSITION TO OFFICE OF THE SEC-
RETARY.—Section 4 of the Department of Housing and 
Urban Development Act (42 U.S.C. 3533) is amended by 
adding at the end the following new subsection:
‘‘(h) SPECIAL
ASSISTANT
FOR
VETERANS
AF-
FAIRS.— 
‘‘(1) POSITION.—There shall be in the Office of 
the Secretary a Special Assistant for Veterans Af-
fairs, who shall report directly to the Secretary. 
‘‘(2) APPOINTMENT.—The Special Assistant for 
Veterans Affairs shall be appointed based solely on 
merit and shall be covered under the provisions of 
title 5, United States Code, governing appointments 
in the competitive service. 
‘‘(3) RESPONSIBILITIES.—The Special Assist-
ant for Veterans Affairs shall be responsible for— 
‘‘(A) ensuring veterans have fair access to 
housing and homeless assistance under each 
program of the Department providing either 
such assistance; 
‘‘(B) coordinating all programs and activi-
ties of the Department relating to veterans; 
‘‘(C) serving as a liaison for the Depart-
ment with the Department of Veterans Affairs, 
including establishing and maintaining relation-
ships with the Secretary of Veterans Affairs; 
‘‘(D) serving as a liaison for the Depart-
ment, and establishing and maintaining rela-
tionships with the United States Interagency
Council on Homelessness and officials of State, 
local, regional, and nongovernmental organiza-
tions concerned with veterans; 
‘‘(E) providing information and advice re-
garding— 
‘‘(i) sponsoring housing projects for 
veterans assisted under programs adminis-
tered by the Department; or 
‘‘(ii) assisting veterans in obtaining 
housing or homeless assistance under pro-
grams administered by the Department; 
‘‘(F) coordinating with the Secretary of 
Housing and Urban Development and the Sec-
retary of Veterans Affairs in carrying out sec-
tion 404 of the Housing Opportunity Through 
Modernization Act of 2016; 
‘‘(G) collaborating with the Department of 
Veterans Affairs on making joint recommenda-
tions to the Congress, the Secretary of Housing 
and Urban Development, and the Secretary of 
Veterans Affairs on how to better coordinate 
and improve services to veterans under both 
Department of Housing and Urban Develop-
ment and Department of Veteran Affairs vet-
erans housing programs, including ways to im-
prove the Independent Living Program of the 
Department of Veteran Affairs; and 
‘‘(H) carrying out such other duties as 
may be assigned to the Special Assistant by the 
Secretary or by law.’’. 
(b) TRANSFER OF POSITION IN OFFICE OF DEPUTY 
ASSISTANT SECRETARY FOR SPECIAL NEEDS.—On the 
date that the initial Special Assistant for Veterans Affairs 
is appointed pursuant to section 4(h)(2) of the Depart-
ment of Housing and Urban Development Act, as added 
by subsection (a) of this section, the position of Special 
Assistant for Veterans Programs in the Office of the Dep-
uty Assistant Secretary for Special Needs of the Depart-
ment of Housing and Urban Development shall be termi-
nated. 
SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS 
HOMELESSNESS. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development and the Secretary of Veterans Af-
fairs, in coordination with the United States Interagency 
Council on Homelessness, shall submit annually to the 
Committees of the Congress specified in subsection (b), 
together with the annual reports required by such Secre-
taries under section 203(c)(1) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11313(c)(1)), a sup-
plemental report that includes the following information 
with respect to the preceding year: 
(1) The same information, for such preceding 
year, that was included with respect to 2010 in the 
report by the Secretary of Housing and Urban De-
velopment and the Secretary of Veterans Affairs en-
titled ‘‘Veterans Homelessness: A Supplemental Re-
port to the 2010 Annual Homeless Assessment Re-
port to Congress’’. 
(2) Information regarding the activities of the 
Department of Housing and Urban Development re-
lating to veterans during such preceding year, as fol-
lows: 
(A) The number of veterans provided as-
sistance under the housing choice voucher pro-
gram for Veterans Affairs supported housing 
under section 8(o)(19) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), 
the socioeconomic characteristics of such home-
less veterans, and the number, types, and loca-
tions of entities contracted under such section 
to administer the vouchers. 
(B) A summary description of the special 
considerations made for veterans under public 
housing agency plans submitted pursuant to
section 5A of the United States Housing Act of 
1937 (42 U.S.C. 1437c–1) and under com-
prehensive housing affordability strategies sub-
mitted pursuant to section 105 of the Cranston- 
Gonzalez National Affordable Housing Act (42 
U.S.C. 12705). 
(C) A description of the activities of the 
Special Assistant for Veterans Affairs of the 
Department of Housing and Urban Develop-
ment. 
(D) A description of the efforts of the De-
partment of Housing and Urban Development 
and the other members of the United States 
Interagency Council on Homelessness to coordi-
nate the delivery of housing and services to vet-
erans. 
(E) The cost to the Department of Hous-
ing and Urban Development of administering 
the programs and activities relating to veterans. 
(F) Any other information that the Sec-
retary of Housing and Urban Development and 
the Secretary of Veterans Affairs consider rel-
evant in assessing the programs and activities 
of the Department of Housing and Urban De-
velopment relating to veterans.
I–01). Upon re-opening, such comment period shall re-
main open for a period of not fewer than 60 days. 
TITLE V—MISCELLANEOUS 
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE 
PROGRAM IN CERTAIN FRAUD AND ABUSE 
PREVENTION MEASURES. 
The Disaster Housing Assistance Program adminis-
tered by the Department of Housing and Urban Develop-
ment shall be considered a ‘‘program of the Department 
of Housing and Urban Development’’ under section 904 
of the Stewart B. McKinney Homeless Assistance Amend-
ments Act of 1988 (42 U.S.C. 3544) for the purpose of 
income verifications. 
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER 
SELF-HELP HOMEOWNERSHIP OPPORTUNITY 
PROGRAM. 
Section 11 of the Housing Opportunity Program Ex-
tension Act of 1996 (42 U.S.C. 12805 note) is amended 
by inserting after subsection (f) the following new sub-
section: 
‘‘(g) ENERGY EFFICIENCY REQUIREMENTS.—The 
Secretary may not require any dwelling developed using 
amounts from a grant made under this section to meet 
any energy efficiency standards other than the standards 
applicable at such time pursuant to section 109 of the
Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12709) to housing specified in subsection (a) of 
such section.’’. 
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IM-
PROVED INTEROPERABILITY. 
(a) DATA EXCHANGE STANDARDIZATION.—Title I of 
the United States Housing Act of 1937 (42 U.S.C. 1437 
et seq.) is amended by adding at the end the following 
new section: 
‘‘SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED 
INTEROPERABILITY. 
‘‘(a) DESIGNATION.—The Secretary shall, in con-
sultation with an interagency work group established by 
the Office of Management and Budget, and considering 
State government perspectives, designate data exchange 
standards to govern, under this Act— 
‘‘(1) necessary categories of information that 
State agencies operating related programs are re-
quired under applicable law to electronically ex-
change with another State agency; and 
‘‘(2) Federal reporting and data exchange re-
quired under applicable law. 
‘‘(b) REQUIREMENTS.—The data exchange standards 
required by subsection (a) shall, to the maximum extent 
practicable—
‘‘(1) incorporate a widely accepted, nonpropri-
etary, searchable, computer-readable format, such as 
the eXtensible Markup Language; 
‘‘(2) contain interoperable standards developed 
and maintained by intergovernmental partnerships, 
such as the National Information Exchange Model; 
‘‘(3) incorporate interoperable standards devel-
oped and maintained by Federal entities with au-
thority over contracting and financial assistance; 
‘‘(4) be consistent with and implement applica-
ble accounting principles; 
‘‘(5) be implemented in a manner that is cost- 
effective and improves program efficiency and effec-
tiveness; and 
‘‘(6) be capable of being continually upgraded 
as necessary. 
‘‘(c) RULES OF CONSTRUCTION.—Nothing in this 
section requires a change to existing data exchange stand-
ards for Federal reporting found to be effective and effi-
cient.’’. 
(b) APPLICABILITY.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of the enactment of this Act, the Secretary 
of Housing and Urban Development shall issue a
proposed rule to carry out the amendments made by 
subsection (a). 
(2) REQUIREMENTS.—The rule shall— 
(A) identify federally required data ex-
changes; 
(B) include specification and timing of ex-
changes to be standardized; 
(C) address the factors used in deter-
mining whether and when to standardize data 
exchanges; 
(D) specify State implementation options; 
and 
(E) describe future milestones. 
TITLE VI—REPORTS 
SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC 
EMPOWERMENT STRATEGIES. 
The Secretary of Housing and Urban Development, 
in consultation with the Secretary of Labor, shall submit 
a report to the Congress annually that describes— 
(1) any interagency strategies of such Depart-
ments that are designed to improve family economic 
empowerment by linking housing assistance with es-
sential supportive services, such as employment 
counseling and training, financial education and 
growth, childcare, transportation, meals, youth rec-
reational activities, and other supportive services; 
and 
(2) any actions taken in the preceding year to 
carry out such strategies and the extent of progress 
achieved by such actions. 
TITLE VII—HOUSING OPPORTU-
NITIES FOR PERSONS WITH 
AIDS 
SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO 
PREVENT HOMELESSNESS FOR INDIVIDUALS 
LIVING WITH HIV OR AIDS. 
(a) IN GENERAL.—Subsection (c) of section 854 of 
the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)) 
is amended by— 
(1) redesignating paragraph (3) as paragraph 
(5); and 
(2) striking paragraphs (1) and (2) and insert-
ing the following: 
‘‘(1) ALLOCATION OF RESOURCES.— 
‘‘(A) ALLOCATION
FORMULA.—The Sec-
retary shall allocate 90 percent of the amount 
approved in appropriations Acts under section 
863 among States and metropolitan statistical 
areas as follows:
‘‘(I) 75 percent of such amounts 
among— 
‘‘(I) cities that are the most pop-
ulous unit of general local government 
in a metropolitan statistical area with 
a population greater than 500,000, as 
determined on the basis of the most 
recent census, and with more than 
2,000 individuals living with HIV or 
AIDS, using the data specified in sub-
paragraph (B); and 
‘‘(II) States with more than 
2,000 individuals living with HIV or 
AIDS outside of metropolitan statis-
tical areas. 
‘‘(ii) 25 percent of such amounts 
among States and metropolitan statistical 
areas based on the method described in 
subparagraph (C). 
‘‘(B) SOURCE OF DATA.—For purposes of 
allocating amounts under this paragraph for 
any fiscal year, the number of individuals living 
with HIV or AIDS shall be the number of such 
individuals as confirmed by the Director of the 
Centers for Disease Control and Prevention, as
of December 31 of the most recent calendar 
year for which such data is available. 
‘‘(C) ALLOCATION UNDER SUBPARAGRAPH 
(A)(ii).—For purposes of allocating amounts 
under subparagraph (A)(ii), the Secretary shall 
develop a method that accounts for— 
‘‘(I) differences in housing costs 
among States and metropolitan statistical 
areas based on the fair market rental es-
tablished pursuant to section 8(c) of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f(c)) or another methodology 
established by the Secretary through regu-
lation; and 
‘‘(ii) differences in poverty rates 
among States and metropolitan statistical 
areas based on area poverty indexes or an-
other methodology established by the Sec-
retary through regulation. 
‘‘(2) MAINTAINING GRANTS.— 
‘‘(A) CONTINUED ELIGIBILITY OF FISCAL 
YEAR 2016 GRANTEES.—A grantee that received 
an allocation in fiscal year 2016 shall continue 
to be eligible for allocations under paragraph 
(1) in subsequent fiscal years, subject to—
‘‘(I) the amounts available from ap-
propriations Acts under section 863; 
‘‘(ii) approval by the Secretary of the 
most recent comprehensive housing afford-
ability strategy for the grantee approved 
under section 105; and 
‘‘(iii) the requirements of subpara-
graph (C). 
‘‘(B) 
ADJUSTMENTS.—Allocations 
to 
grantees described in subparagraph (A) shall be 
adjusted annually based on the administrative 
provisions included in fiscal year 2016 appro-
priations Acts. 
‘‘(C) REDETERMINATION
OF
CONTINUED 
ELIGIBILITY.—The Secretary shall redetermine 
the continued eligibility of a grantee that re-
ceived an allocation in fiscal year 2016 at least 
once during the 10-year period following fiscal 
year 2016. 
‘‘(D) ADJUSTMENT TO GRANTS.—For each 
of fiscal years 2017, 2018, 2019, 2020, and 
2021, the Secretary shall ensure that a grantee 
that received an allocation in the prior fiscal 
year does not receive an allocation that is 5 per-
cent less than or 10 percent greater than the
amount allocated to such grantee in the pre-
ceding fiscal year. 
‘‘(3) ALTERNATIVE GRANTEES.— 
‘‘(A) REQUIREMENTS.—The Secretary may 
award funds reserved for a grantee eligible 
under paragraph (1) to an alternative grantee 
if— 
‘‘(I) the grantee submits to the Sec-
retary a written agreement between the 
grantee and the alternative grantee that 
describes how the alternative grantee will 
take actions consistent with the applicable 
comprehensive housing affordability strat-
egy approved under section 105 of this 
Act; 
‘‘(ii) the Secretary approves the writ-
ten agreement described in clause (I) and 
agrees to award funds to the alternative 
grantee; and 
‘‘(iii) the written agreement does not 
exceed a term of 10 years. 
‘‘(B) RENEWAL.—An agreement approved 
pursuant to subparagraph (A) may be renewed 
by the parties with the approval of the Sec-
retary.
‘‘(C) DEFINITION.—In this paragraph, the 
term ‘alternative grantee’ means a public hous-
ing agency (as defined in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b))), a unified funding agency (as de-
fined in section 401 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11360)), a 
State, a unit of general local government, or an 
instrumentality of State or local government. 
‘‘(4) REALLOCATIONS.—If a State or metropoli-
tan statistical area declines an allocation under 
paragraph (1)(A), or the Secretary determines, in 
accordance with criteria specified in regulation, that 
a State or metropolitan statistical area that is eligi-
ble for an allocation under paragraph (1)(A) is un-
able to properly administer such allocation, the Sec-
retary shall reallocate any funds reserved for such 
State or metropolitan statistical area as follows: 
‘‘(A) For funds reserved for a State— 
‘‘(I) to eligible metropolitan statistical 
areas within the State on a pro rata basis; 
or 
‘‘(ii) if there is no eligible metropoli-
tan statistical areas within a State, to met-
ropolitan cities and urban counties within
the State that are eligible for grant under 
section 106 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 
5306), on a pro rata basis. 
‘‘(B) For funds reserved for a metropolitan 
statistical area, to the State in which the metro-
politan statistical area is located. 
‘‘(C) If the Secretary is unable to make a 
reallocation under subparagraph (A) or (B), the 
Secretary shall make such funds available on a 
pro rata basis under the formula in paragraph 
(1)(A).’’. 
(b) AMENDMENT TO DEFINITIONS.—Section 853 of 
the AIDS Housing Opportunity Act (42 U.S.C. 12902) 
is amended— 
(1) in paragraph (1), by inserting ‘‘or ‘AIDS’ ’’ 
before ‘‘means’’; and 
(2) by inserting at the end the following new 
paragraphs: 
‘‘(15) The term ‘HIV’ means infection with the 
human immunodeficiency virus. 
‘‘(16) The term ‘individuals living with HIV or 
AIDS’ means, with respect to the counting of cases 
in a geographic area during a period of time, the 
sum of—
‘‘(A) the number of living non-AIDS cases 
of HIV in the area; and 
‘‘(B) the number of living cases of AIDS 
in the area.’’. 
Passed the House of Representatives February 2, 
2016. 
Attest: 
Clerk.