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resident council with respect to which assistance for
the development or formation of such entity is pro-
vided under title III of the United States Housing
Act of 1937 (as in effect before the effective date of
the repeal under section 1601(b) of this Act).
(6) TECHNICAL
ASSISTANCE
AND
CLEARING-
HOUSE.—The Secretary may use up to 10 percent of
the amount made available pursuant to paragraph
(4)—
(A) to provide technical assistance, directly
or by grant or contract, and
(B) to receive, collect, process, assemble,
and disseminate information,
in connection with activities under this subsection.
(g) ASSESSMENT AND REPORT BY SECRETARY.—Not
later than 3 years after the date of the enactment of this
Act, the Secretary shall—
(1) conduct an evaluation and assessment of
resident management, and particularly of the effect
of resident management on living conditions in pub-
lic housing; and
(2) submit to the Congress a report setting
forth the findings of the Secretary as a result of the
evaluation and assessment and including any rec-
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ommendations the Secretary determines to be appro-
priate.
(h) APPLICABILITY.—Any management contract be-
tween a public housing agency and a resident management
corporation that is entered into after the date of the enact-
ment of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 shall be subject to this section
and any regulations issued to carry out this section.
Subtitle D—Homeownership
SEC. 1251. RESIDENT HOMEOWNERSHIP PROGRAMS.
(a) IN GENERAL.—A public housing agency may
carry out a homeownership program in accordance with
this section and the local housing management plan of the
agency to make public housing dwelling units, public hous-
ing developments, and other housing projects available for
purchase by low-income families. An agency may transfer
a unit only pursuant to a homeownership program ap-
proved by the Secretary. Notwithstanding section 1107,
the Secretary may approve a local housing management
plan without approving the portion of the plan regarding
a homeownership program pursuant to this section. In the
case of the portion of a plan regarding the homeownership
program that is submitted separately pursuant to the pre-
ceding sentence, the Secretary shall approve or disapprove
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such portion not later than 60 days after the submission
of such portion.
(b) PARTICIPATING UNITS.—A program under this
section may cover any existing public housing dwelling
units or projects, and may include other dwelling units and
housing owned, operated, or assisted, or otherwise ac-
quired for use under such program, by the public housing
agency.
(c) ELIGIBLE PURCHASERS.—
(1) LOW-INCOME REQUIREMENT.—Only low-in-
come families assisted by a public housing agency,
other low-income families, and entities formed to fa-
cilitate such sales by purchasing units for resale to
low-income families shall be eligible to purchase
housing under a homeownership program under this
section.
(2) OTHER REQUIREMENTS.—A public housing
agency may establish other requirements or limita-
tions for families to purchase housing under a home-
ownership program under this section, including re-
quirements or limitations regarding employment or
participation in employment counseling or training
activities, criminal activity, participation in home-
ownership counseling programs, evidence of regular
income, and other requirements. In the case of pur-
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chase by an entity for resale to low-income families,
the entity shall sell the units to low-income families
within 5 years from the date of its acquisition of the
units. The entity shall use any net proceeds from the
resale and from managing the units, as determined
in accordance with guidelines of the Secretary, for
housing purposes, such as funding resident organiza-
tions and reserves for capital replacements.
(d) FINANCING AND ASSISTANCE.—A homeownership
program under this section may provide financing for ac-
quisition of housing by families purchasing under the pro-
gram or by the public housing agency for sale under this
program in any manner considered appropriate by the
agency (including sale to a resident management corpora-
tion).
(e) DOWNPAYMENT REQUIREMENT.—
(1)
IN
GENERAL.—Each
family
purchasing
housing under a homeownership program under this
section shall be required to provide from its own re-
sources a downpayment in connection with any loan
for acquisition of the housing, in an amount deter-
mined by the public housing agency. Except as pro-
vided in paragraph (2), the agency shall permit the
family to use grant amounts, gifts from relatives,
contributions
from
private
sources,
and
similar
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amounts as downpayment amounts in such pur-
chase.
(2) DIRECT FAMILY CONTRIBUTION.—In pur-
chasing housing pursuant to this section, each fam-
ily shall contribute an amount of the downpayment,
from resources of the family other than grants, gifts,
contributions, or other similar amounts referred to
in paragraph (1), that is not less than 1 percent of
the purchase price.
(f) OWNERSHIP INTERESTS.—A homeownership pro-
gram under this section may provide for sale to the pur-
chasing family of any ownership interest that the public
housing agency considers appropriate under the program,
including ownership in fee simple, a condominium interest,
an interest in a limited dividend cooperative, a shared ap-
preciation interest with a public housing agency providing
financing.
(g) RESALE.—
(1) AUTHORITY
AND
LIMITATION.—A home-
ownership program under this section shall permit
the resale of a dwelling unit purchased under the
program by an eligible family, but shall provide such
limitations on resale as the agency considers appro-
priate (whether the family purchases directly from
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the agency or from another entity) for the agency to
recapture—
(A) from any economic gain derived from
any such resale occurring during the 5-year pe-
riod beginning upon purchase of the dwelling
unit by the eligible family, a portion of the
amount of any financial assistance provided
under the program by the agency to the eligible
family; and
(B) after the expiration of such 5-year pe-
riod, only such amounts as are equivalent to the
assistance provided under this section by the
agency to the purchaser.
(2) CONSIDERATIONS.—The limitations referred
to in paragraph (1) may provide for consideration of
the aggregate amount of assistance provided under
the program to the family, the contribution to equity
provided by the purchasing eligible family, the period
of time elapsed between purchase under the home-
ownership program and resale, the reason for resale,
any improvements to the property made by the eligi-
ble family, any appreciation in the value of the prop-
erty, and any other factors that the agency considers
appropriate.
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(h) SALE OF CERTAIN SCATTERED-SITE HOUSING.—
A public housing agency that the Secretary has deter-
mined to be a high-performing agency may use the pro-
ceeds from the disposition of scattered-site public housing
under a homeownership program under this section to
purchase replacement scattered-site dwelling units, to the
extent such use is provided for in the local housing man-
agement plan for the agency approved under section 1107.
Any such replacement dwelling units shall be considered
public housing for purposes of this division.
(i)
INAPPLICABILITY
OF
DISPOSITION
REQUIRE-
MENTS.—The provisions of section 1261 shall not apply
to disposition of public housing dwelling units under a
homeownership program under this section, except that
any dwelling units sold under such a program shall be
treated as public housing dwelling units for purposes of
subsections (e) and (f) of section 1261.
Subtitle
E—Disposition,
Demoli-
tion, and Revitalization of De-
velopments
SEC. 1261. REQUIREMENTS FOR DEMOLITION AND DISPOSI-
TION OF DEVELOPMENTS.
(a) AUTHORITY AND FLEXIBILITY.—A public hous-
ing agency may demolish, dispose of, or demolish and dis-
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pose of nonviable or nonmarketable public housing devel-
opments of the agency in accordance with this section.
(b) LOCAL HOUSING MANAGEMENT PLAN REQUIRE-
MENT.—A public housing agency may take any action to
demolish or dispose of a public housing development (or
a portion of a development) only if such demolition or dis-
position complies with the provisions of this section and
is in accordance with the local housing management plan
for the agency. Notwithstanding section 1107, the Sec-
retary may approve a local housing management plan
without approving the portion of the plan covering demoli-
tion or disposition pursuant to this section.
(c) PURPOSE OF DEMOLITION OR DISPOSITION.—A
public housing agency may demolish or dispose of a public
housing development (or portion of a development) only
if the agency provides sufficient evidence to the Secretary
that—
(1) the development (or portion thereof) is se-
verely distressed or obsolete;
(2) the development (or portion thereof) is in a
location making it unsuitable for housing purposes;
(3) the development (or portion thereof) has de-
sign or construction deficiencies that make cost-ef-
fective rehabilitation infeasible;
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(4) assuming that reasonable rehabilitation and
management intervention for the development has
been completed and paid for, the anticipated revenue
that would be derived from charging market-based
rents for units in the development (or portion there-
of) would not cover the anticipated operating costs
and replacement reserves of the development (or
portion) at full occupancy and the development (or
portion) would constitute a substantial burden on
the resources of the public housing agency;
(5) retention of the development (or portion
thereof) is not in the best interests of the residents
of the public housing agency because—
(A) developmental changes in the area sur-
rounding the development adversely affect the
health or safety of the residents or the feasible
operation of the development by the public
housing agency;
(B) demolition or disposition will allow the
acquisition, development, or rehabilitation of
other properties which will be more efficiently
or effectively operated as low-income housing;
or
(C) other factors exist that the agency de-
termines are consistent with the best interests
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of the residents and the agency and not incon-
sistent with other provisions of this division;
(6) in the case only of demolition or disposition
of a portion of a development, the demolition or dis-
position will help to ensure the remaining useful life
of the remainder of the development; or
(7) in the case only of property other than
dwelling units—
(A) the property is excess to the needs of
a development; or
(B) the demolition or disposition is inci-
dental to, or does not interfere with, continued
operation of a development.
The evidence required under this subsection shall include,
as a condition of demolishing or disposing of a public
housing development (or portion of a development) esti-
mated to have a value of $100,000 or more, a statement
of the market value of the development (or portion), which
has been determined by a party not having any interest
in the housing or the public housing agency and pursuant
to not less than 2 professional, independent appraisals of
the development (or portion).
(d) CONSULTATION.—A public housing agency may
demolish or dispose of a public housing development (or
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portion of a development) only if the agency notifies and
confers regarding the demolition or disposition with—
(1) the residents of the development (or por-
tion); and
(2) appropriate local government officials.
(e) COUNSELING.—A public housing agency may de-
molish or dispose of a public housing development (or a
portion of a development) only if the agency provides any
necessary counseling for families displaced by such action
to facilitate relocation.
(f) USE OF PROCEEDS.—Any net proceeds from the
disposition of a public housing development (or portion of
a development) shall be used for—
(1) housing assistance for low-income families
that is consistent with the low-income housing needs
of the community, through acquisition, development,
or rehabilitation of, or homeownership programs for,
other low-income housing or the provision of choice-
based assistance under title XIII for such families;
(2) supportive services relating to job training
or child care for residents of a development or devel-
opments; or
(3) leveraging amounts for securing commercial
enterprises, on-site in public housing developments
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of the public housing agency, appropriate to serve
the needs of the residents.
(g) RELOCATION.—A public housing agency that de-
molishes or disposes of a public housing development (or
portion of a development thereof) shall ensure that—
(1) each family that is a resident of the devel-
opment (or portion) that is demolished or disposed
of is relocated to other safe, clean, healthy, and af-
fordable housing, which is, to the maximum extent
practicable, housing of the family’s choice, including
choice-based assistance under title XIII (provided
that with respect to choice-based assistance, the pre-
ceding requirement shall be fulfilled only upon the
relocation of the such family into such housing);
(2) the public housing agency does not take any
action to dispose of any unit until any resident to
be displaced is relocated in accordance with para-
graph (1); and
(3) each resident family to be displaced is paid
relocation expenses, and the rent to be paid initially
by the resident following relocation does not exceed
the amount permitted under section 1225(a).
(h) RIGHT OF FIRST REFUSAL FOR RESIDENT ORGA-
NIZATIONS
AND
RESIDENT
MANAGEMENT
CORPORA-
TIONS.—
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(1) IN
GENERAL.—A public housing agency
may not dispose of a public housing development (or
portion of a development) unless the agency has, be-
fore such disposition, offered to sell the property, as
provided in this subsection, to each resident organi-
zation and resident management corporation operat-
ing at the development for continued use as low-in-
come housing, and no such organization or corpora-
tion purchases the property pursuant to such offer.
A resident organization may act, for purposes of this
subsection, through an entity formed to facilitate
homeownership under subtitle D.
(2) TIMING.—Disposition of a development (or
portion thereof) under this section may not take
place—
(A) before the expiration of the period dur-
ing which any such organization or corporation
may notify the agency of interest in purchasing
the property, which shall be the 30-day period
beginning on the date that the agency first pro-
vides notice of the proposed disposition of the
property to such resident organizations and
resident management corporations;
(B) if an organization or corporation sub-
mits notice of interest in accordance with sub-
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paragraph (A), before the expiration of the pe-
riod during which such organization or corpora-
tion may obtain a commitment for financing to
purchase the property, which shall be the 60-
day period beginning upon the submission to
the agency of the notice of interest; or
(C) if, during the period under subpara-
graph (B), an organization or corporation ob-
tains such financing commitment and makes a
bona fide offer to the agency to purchase the
property for a price equal to or exceeding the
applicable offer price under paragraph (3).
The agency shall sell the property pursuant to any
purchase offer described in subparagraph (C).
(3) TERMS OF OFFER.—An offer by a public
housing agency to sell a property in accordance with
this subsection shall involve a purchase price that re-
flects the market value of the property, the reason
for the sale, the impact of the sale on the surround-
ing community, and any other factors that the agen-
cy considers appropriate.
(i) INFORMATION FOR LOCAL HOUSING MANAGE-
MENT PLAN.—A public housing agency may demolish or
dispose of a public housing development (or portion there-
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suant to a plan under this section, but only if such devel-
opment provides for significantly fewer dwelling units.
(k) TREATMENT OF REPLACEMENT UNITS.—
(1) PROVISION
OF
OTHER
HOUSING
ASSIST-
ANCE.—In connection with any demolition or dis-
position of public housing under this section, a pub-
lic housing agency may provide for other housing as-
sistance for low-income families that is consistent
with the low-income housing needs of the commu-
nity, including—
(A) the provision of choice-based assistance
under title XIII; and
(B) the development, acquisition, or lease
by the agency of dwelling units, which dwelling
units shall—
(i) be eligible to receive assistance
with grant amounts provided under this
title; and
(ii) be made available for occupancy,
operated, and managed in the manner re-
quired for public housing, and subject to
the other requirements applicable to public
housing dwelling units.
(2) TREATMENT
OF
INDIVIDUALS.—For pur-
poses of this subsection, an individual between the
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ages of 18 and 21, inclusive, shall, at the discretion
of the individual, be considered a family.
(l) USE OF NEW DWELLING UNITS.—A public hous-
ing agency demolishing or disposing of a public housing
development (or portion thereof) under this section shall
seek, where practical, to ensure that, if housing units are
provided on any property that was previously used for the
public housing demolished or disposed of, not less than
25 percent of such dwelling units shall be dwelling units
reserved for occupancy during the remaining useful life of
the housing by low-income families.
(m) PERMISSIBLE RELOCATION WITHOUT PLAN.—
If a public housing agency determines that because of an
emergency situation public housing dwelling units are se-
verely uninhabitable, the public housing agency may relo-
cate residents of such dwelling units before the submission
of a local housing management plan providing for demoli-
tion or disposition of such units.
(n) CONSOLIDATION
OF OCCUPANCY WITHIN
OR
AMONG BUILDINGS.—Nothing in this section may be con-
strued to prevent a public housing agency from consolidat-
ing occupancy within or among buildings of a public hous-
ing development, or among developments, or with other
housing for the purpose of improving living conditions of,
or providing more efficient services to, residents.
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(o) DE MINIMIS EXCEPTION TO DEMOLITION RE-
QUIREMENTS.—Notwithstanding any other provision of
this section, in any 5-year period a public housing agency
may demolish not more than the lesser of 5 dwelling units
or 5 percent of the total dwelling units owned and oper-
ated by the public housing agency, without providing for
such demolition in a local housing management plan, but
only if the space occupied by the demolished unit is used
for meeting the service or other needs of public housing
residents or the demolished unit was beyond repair.
SEC. 1262. DEMOLITION, SITE REVITALIZATION, REPLACE-
MENT HOUSING, AND CHOICE-BASED ASSIST-
ANCE GRANTS FOR DEVELOPMENTS.
(a) PURPOSES.—The purpose of this section is to
provide assistance to public housing agencies for the pur-
poses of—
(1) reducing the density and improving the liv-
ing environment for public housing residents of se-
verely
distressed
public
housing
developments
through the demolition of obsolete public housing de-
velopments (or portions thereof);
(2) revitalizing sites (including remaining public
housing dwelling units) on which such public hous-
ing developments are located and contributing to the
improvement of the surrounding neighborhood;
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(3) providing housing that will avoid or de-
crease the concentration of very low-income families;
and
(4) providing choice-based assistance in accord-
ance with title XIII for the purpose of providing re-
placement housing and assisting residents to be dis-
placed by the demolition.
(b) GRANT AUTHORITY.—The Secretary may make
grants available to public housing agencies as provided in
this section.
(c) CONTRIBUTION REQUIREMENT.—The Secretary
may not make any grant under this section to any appli-
cant unless the applicant certifies to the Secretary that
the applicant will supplement the amount of assistance
provided under this section with an amount of funds from
sources other than this section equal to not less than 5
percent of the amount provided under this section, includ-
ing amounts from other Federal sources, any State or
local government sources, any private contributions, and
the value of any in-kind services or administrative costs
provided.
(d) ELIGIBLE ACTIVITIES.—Grants under this sec-
tion may be used for activities to carry out revitalization
programs for severely distressed public housing, includ-
ing—
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(1) architectural and engineering work, includ-
ing the redesign, reconstruction, or redevelopment of
a severely distressed public housing development, in-
cluding the site on which the development is located;
(2) the demolition, sale, or lease of the site, in
whole or in part;
(3) covering the administrative costs of the ap-
plicant, which may not exceed such portion of the
assistance provided under this section as the Sec-
retary may prescribe;
(4) payment of reasonable legal fees;
(5) providing reasonable moving expenses for
residents displaced as a result of the revitalization of
the development;
(6) economic development activities that pro-
mote the economic self-sufficiency of residents under
the revitalization program;
(7) necessary management improvements;
(8) leveraging other resources, including addi-
tional housing resources, retail supportive services,
jobs, and other economic development uses on or
near the development that will benefit future resi-
dents of the site;
(9) replacement housing and housing assistance
under title XIII;
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(10) transitional security activities; and
(11) necessary supportive services, except that
not more than 10 percent of the amount of any
grant may be used for activities under this para-
graph.
(e) APPLICATION AND SELECTION.—
(1) APPLICATION.—An application for a grant
under this section shall contain such information
and shall be submitted at such time and in accord-
ance with such procedures, as the Secretary shall
prescribe.
(2) SELECTION CRITERIA.—The Secretary shall
establish selection criteria for the award of grants
under this section, which shall include—
(A) the relationship of the grant to the
local housing management plan for the public
housing agency and how the grant will result in
a revitalized site that will enhance the neighbor-
hood in which the development is located;
(B) the capability and record of the appli-
cant public housing agency, or any alternative
management agency for the agency, for manag-
ing large-scale redevelopment or modernization
projects, meeting construction timetables, and
obligating amounts in a timely manner;