II
Calendar No. 533
103D CONGRESS
2D SESSION
H. R. 3838
IN THE SENATE OF THE UNITED STATES
JULY 27 (legislative day, JULY 20), 1994
Received; read twice and placed on the calendar
AN ACT
To amend and extend certain laws relating to housing and
community development, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Housing and Community Development Act of 1994’’.
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(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Effective date.
TITLE I—HOUSING ASSISTANCE
Subtitle A—General Provisions
Sec. 101. Low-income housing authorization.
Sec. 102. Resident representation in public housing agencies.
Sec. 103. Determination of median income.
Sec. 104. Definition of families.
Sec. 105. Family self-sufficiency program.
Sec. 106. Use of amounts in headquarters reserve.
Subtitle B—Public and Indian Housing
Sec. 111. Public housing rent reform.
Sec. 112. Sale of public housing to non-profit intermediaries.
Sec. 113. Major reconstruction of obsolete projects.
Sec. 114. New construction of projects for disabled families.
Sec. 115. Recapture of public housing development amounts.
Sec. 116. Repeal of least-cost limitation on public housing new construction.
Sec. 117. Regulatory relief and paperwork reduction for high-performing public
housing agencies.
Sec. 118. Standards for lease termination and expedited grievance procedure.
Sec. 119. Availability of criminal conviction information for screening and
evictions.
Sec. 120. Designated housing.
Sec. 121. Public housing operating subsidies.
Sec. 122. Eligible uses of emergency modernization funds.
Sec. 123. Use of modernization funds for replacement housing.
Sec. 124. Authority for public housing agencies to leverage amounts for re-
placement and modernization.
Sec. 125. Demolition and disposition of public housing.
Sec. 126. Public housing resident opportunity.
Sec. 127. Public housing family investment centers.
Sec. 128. Revitalization of severely distressed public housing.
Sec. 129. Program monitoring and technical assistance.
Sec. 130. Applicability of public housing amendments to Indian housing.
Sec. 131. Early childhood development program.
Sec. 132. Indian housing childhood development services.
Sec. 133. Public housing one-stop perinatal services demonstration.
Sec. 134. Sale of certain scattered-site public housing.
Sec. 135. Eligibility of certain public housing for demolition.
Sec. 136. Demonstration program for innovative public housing agencies and
resident management corporations.
Sec. 137. Demonstration program for occupancy of otherwise vacant public
housing units by moderate-income families.
Sec. 138. Study of adequacy of payment in lieu of taxes.
Subtitle C—Section 8 Assistance
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Sec. 141. Community investment demonstration program.
Sec. 142. Merger of section 8 rental assistance programs.
Sec. 143. Incentives to refinance high interest mortgages for section 8 projects.
Sec. 144. Demonstration program for use of excess residual receipts.
Sec. 145. Treatment of certain projects.
Sec. 146. Study of extent of nonparticipation of owners and landlords in section
8 rental assistance program.
Sec. 147. Study of section 8 housing quality standards.
Subtitle D—Renewal of Expiring Contracts for Section 8 New Construction
and Substantial Rehabilitation Projects
Sec. 151. Findings and purpose.
Sec. 152. Notices of contract expiration and intention to renew.
Sec. 153. Secretary’s response to owner’s proposal.
Sec. 154. Limitation on new contracts.
Sec. 155. Required terms of new contracts.
Sec. 156. Maximum monthly rent under new contracts.
Sec. 157. Actions in cases of failure to enter into new contract.
Sec. 158. Contract extension.
Sec. 159. Financing and restructuring underlying debt and treatment of
residual receipts.
Sec. 160. Retention of program savings by Secretary.
Sec. 161. Supportive services and technical assistance.
Sec. 162. Delegation of authority.
Sec. 163. Definitions.
Sec. 164. Regulations.
Sec. 165. Authorization of appropriations.
Subtitle E—Homeownership Programs
Sec. 171. HOPE homeownership programs.
Sec. 172. National Homeownership Fund.
Sec. 173. Section 235 mortgage refinancing.
Sec. 174. Housing counseling for homeownership and rental housing choice.
Subtitle F—Other Programs
Sec. 181. Community partnerships against crime.
Sec. 182. Low-income housing preservation.
Sec. 183. Flexible subsidy program.
Sec. 184. Youthbuild program.
Sec. 185. Disposition of HUD-owned multifamily housing properties.
Sec. 186. Guidelines for screening, admission, and evictions in public and
assisted housing.
Sec. 187. Metropolitan area-wide strategy demonstration.
Sec. 188. Certain revitalization and relocation assistance.
TITLE II—HOME INVESTMENT PARTNERSHIPS
Sec. 201. Authorization of appropriations.
Sec. 202. Eligible uses of investment.
Sec. 203. Qualification as affordable rental housing.
Sec. 204. Repayment of investment.
Sec. 205. Matching requirements.
Sec. 206. Support for State and local housing strategies.
Sec. 207. Labor requirements.
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TITLE III—SUPPORTIVE HOUSING PROGRAMS
Sec. 301. Funding for supportive housing for the elderly and for persons with
disabilities.
Sec. 302. Supportive housing for the elderly.
Sec. 303. Supportive housing for persons with disabilities.
Sec. 304. Revised congregate services.
Sec. 305. Supportive housing assistance for elderly independence.
Sec. 306. Housing opportunities for persons with AIDS.
Sec. 307. Service coordinators.
TITLE IV—MORTGAGE INSURANCE AND SECONDARY MORTGAGE
MARKET
Subtitle A—Mortgage Insurance and Loan Guarantee Programs
Sec. 401. Limitation on insurance authority.
Sec. 402. Federal Housing Administration Advisory Board.
Sec. 403. Maximum mortgage amount ceiling for single family mortgages.
Sec. 404. Maximum mortgage amount floor for single family mortgage
insurance.
Sec. 405. Calculation of downpayment.
Sec. 406. Elimination of restrictions regarding new construction.
Sec. 407. Authority to use amounts borrowed from family members for
downpayments.
Sec. 408. Indemnification for multifamily housing project managers.
Sec. 409. Extension of multifamily housing mortgage auction provisions.
Sec. 410. Streamlined refinancing for HUD-held mortgages.
Sec. 411. Home equity conversion mortgages for elderly homeowners.
Sec. 412. Single family risk-sharing mortgage insurance program.
Sec. 413. Delegation of single family mortgage insuring authority to direct en-
dorsement mortgagees.
Sec. 414. Eligibility of mortgages on homes on leased land owned by commu-
nity land trusts.
Sec. 415. Insurance of 2-step single family mortgages.
Sec. 416. Mortgage limits for multifamily projects in high-cost areas.
Sec. 417. Approval of point-of-use purification systems and testing of systems.
Sec. 418. Energy efficient mortgages pilot program.
Sec. 419. Extension of multifamily mortgage credit demonstrations.
Sec. 420. Indian housing loan guarantees.
Sec. 421. National Commission on the Future of the Federal Housing Adminis-
tration.
Sec. 422. Action and report on cooperative homeownership for low- and mod-
erate-income families.
Sec. 423. Study of activity of private mortgage bankers and insurers.
Subtitle B—Secondary Mortgage Market Programs
Sec. 441. Limitation on GNMA guarantees of mortgage-backed securities.
Sec. 442. Assessment collection dates for Office of Federal Housing Enterprise
Oversight.
Subtitle C—Emergency Mortgage Relief
Sec. 461. Amendments to Emergency Homeowners’ Relief Act.
Subtitle D—Nonjudicial Foreclosure of Defaulted Single Family Mortgages
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Sec. 481. Short title.
Sec. 482. Findings and purpose.
Sec. 483. Definitions.
Sec. 484. Applicability.
Sec. 485. Designation of foreclosure commissioner.
Sec. 486. Prerequisites to foreclosure.
Sec. 487. Notice of foreclosure sale.
Sec. 488. Commencement of foreclosure.
Sec. 489. Service of notice of foreclosure.
Sec. 490. Presale reinstatement.
Sec. 491. Conduct of sale and adjournment.
Sec. 492. Foreclosure costs.
Sec. 493. Disposition of sale proceeds.
Sec. 494. Transfer of title and possession.
Sec. 495. Record of foreclosure and sale.
Sec. 496. Effect of sale.
Sec. 497. Computation of time.
Sec. 498. Separability.
Sec. 499. Deficiency judgment.
TITLE V—RURAL HOUSING
Sec. 501. Program authorizations.
Sec. 502. Eligibility of Native Americans for rural housing programs.
Sec. 503. Escrow fund.
Sec. 504. Section 502 homeownership loans.
Sec. 505. Loan guarantees.
Sec. 506. Prepayment of rural rental housing loans.
Sec. 507. Designation of underserved areas and reservation of assistance.
Sec. 508. Administrative appeals.
Sec. 509. Section 515 rural rental housing.
Sec. 510. Optional conversion of rental assistance payments to operating sub-
sidy for migrant farmworker projects.
Sec. 511. Definition of rural area.
Sec. 512. Eligibility of manufactured home parks for building site loans for co-
operatives.
Sec. 513. Rural housing assistance targeting report.
Sec. 514. Priority for rural housing voucher assistance.
Sec. 515. Native American rural housing capacity demonstration program.
Sec. 516. Rural community development initiative.
Sec. 517. Loan guarantees for multifamily rental housing in rural areas.
Sec. 518. Rural housing loan delegated processing demonstration.
TITLE VI—COMMUNITY DEVELOPMENT
Subtitle A—Community Development Block Grant Program
Sec. 601. Authorization of appropriations and guarantee authority.
Sec. 602. Definition of metropolitan city.
Sec. 603. Management information systems.
Sec. 604. Eligible activities.
Sec. 605. Reallocations.
Sec. 606. Prohibition of use of CDBG assistance for employment relocation ac-
tivities.
Sec. 607. Limitation on extent of use of loan guarantees for housing purposes.
Sec. 608. Economic development grants.
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Sec. 609. Use of UDAG recaptures.
Sec. 610. Extension of certain CDBG assistance.
Subtitle B—Other Community Development Programs
Sec. 631. Neighborhood Reinvestment Corporation.
Sec. 632. John Heinz neighborhood development program.
Sec. 633. Capacity building for community development and affordable housing.
Sec. 634. Colonias assistance program.
Sec. 635. Grants for empowerment zones and enterprise communities.
Sec. 636. Use of grant amounts.
TITLE VII—REGULATORY AND MISCELLANEOUS PROGRAMS
Sec. 701. Fair housing initiatives program.
Sec. 702. HUD program monitoring and evaluation.
Sec. 703. HUD salaries and expenses.
Sec. 704. Use of technical assistance amounts by or for HUD staff.
Sec. 705. Annual report regarding repeal of unfunded programs.
Sec. 706. Requirements for participation of women in construction assisted
under HUD programs.
Sec. 707. Notification of HUD funding awards.
Sec. 708. Exclusion of GNMA from HUD personnel ceilings.
Sec. 709. HUD research and development.
Sec. 710. Preventing fraud and abuse in rural rental housing program.
Sec. 711. National Institute of Building Sciences.
Sec. 712. Residential lead-based paint hazard reduction.
Sec. 713. GAO study of lead-based paint detection technologies and tenant
notification procedures.
Sec. 714. Civil money penalties for violations of Home Mortgage Disclosure Act
by nonsupervised mortgagees.
Sec. 715. Removal of regulatory barriers to affordable housing.
Sec. 716. New towns demonstration program for emergency relief of Los
Angeles.
Sec. 717. Authorization of appropriations for public services facility.
Sec. 718. National American Indian Housing Council.
Sec. 719. Housing Assistance Council.
Sec. 720. Demonstration program for outreach to avoid disconnection of
utilities.
Sec. 721. Federal Deposit Insurance Corporation affordable housing program.
Sec. 722. State agencies as sureties.
Sec. 723. Insured community development financial institution access to Fed-
eral Home Loan Bank advances.
Sec. 724. Purchase of American-made equipment and products.
TITLE VIII—HOUSING PROGRAMS UNDER STEWART B. MCKINNEY
HOMELESS ASSISTANCE ACT
Sec. 801. Short title.
Subtitle A—Housing Assistance
CHAPTER 1—REORGANIZATION OF CERTAIN MCKINNEY ACT HOUSING
PROVISIONS
Sec. 811. Flexible grant program.
Sec. 812. Regulations and transition provisions.
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Sec. 813. Report on single room occupancy assistance.
CHAPTER 2—OTHER HOUSING ASSISTANCE PROGRAMS FOR THE HOMELESS
UNDER MCKINNEY ACT
Sec. 821. Section 8 assistance for single room occupancy dwellings.
Sec. 822. Section 8 assistance for shelter plus care single room occupancy
dwellings.
Sec. 823. Rural homelessness grant program.
Sec. 824. Clerical amendment.
CHAPTER 3—MISCELLANEOUS HOMELESS HOUSING PROVISIONS
Sec. 831. FHA single family property disposition.
Sec. 832. Strategy to eliminate unfit transient facilities.
Subtitle B—Interagency Council on the Homeless
Sec. 841. Authorization of appropriations.
Sec. 842. Chairperson.
Sec. 843. Extension.
Subtitle C—Federal Emergency Management Agency Food and Shelter
Program
Sec. 851. Authorization of appropriations.
Sec. 852. Prohibition of assistance to illegal aliens.
Subtitle D—Availability of Property at Military Bases for Redevelopment and
Homeless Use
Sec. 861. Availability of property at military bases for redevelopment and
homeless use.
TITLE IX—ASSURANCE AGAINST COST SHIFTING
Sec. 901. Assurance against cost shifting.
SEC. 2. EFFECTIVE DATE.
The provisions of this Act and the amendments made
by this Act shall take effect and shall apply upon the date
of the enactment of this Act, unless such provisions or
amendments specifically provide for effectiveness or appli-
cability upon another date certain.
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TITLE I—HOUSING ASSISTANCE
Subtitle A—General Provisions
SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.
(a) AGGREGATE
BUDGET
AUTHORITY.—Section
5(c)(6) of the United States Housing Act of 1937 (42
U.S.C. 1437c(c)(6)) is amended by adding at the end the
following new sentence: ‘‘The aggregate amount of budget
authority that may be obligated for assistance referred to
in paragraph (7) is increased (to the extent approved in
appropriation Acts) by the sum of the amounts provided
in paragraph (7)(A) on October 1, 1994, and by the sum
of the amounts provided in paragraph (7)(B) on October
1, 1995.’’.
(b) UTILIZATION OF BUDGET AUTHORITY.—Section
5(c)(7) of the United States Housing Act of 1937 (42
U.S.C. 1437c(c)(7)) is amended by striking the paragraph
designation and all that follows through the end of sub-
paragraph (B) and inserting the following:
‘‘(7)(A) Using the additional budget authority pro-
vided under paragraph (6) and the balances of budget au-
thority that become available during fiscal year 1995, the
Secretary shall, to the extent approved in appropriation
Acts, reserve authority to enter into obligations aggregat-
ing—
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‘‘(i) for public housing grants under subsection
(a)(2), not more than $861,000,000, of which
amount not more than $263,000,000 shall be avail-
able for Indian housing;
‘‘(ii) for assistance under section 8, not more
than $2,674,000,000, of which not more than
$75,000,000 shall be available for assistance under
section 8 for family unification under subsection
(q)(3) of such section;
‘‘(iii) for assistance under section 5(j)(2) for
substantial redesign, reconstruction, and redevelop-
ment of existing obsolete public housing projects and
buildings, not more than $114,000,000;
‘‘(iv) for comprehensive improvement assistance
grants 
under 
section 
14(k), 
not 
more 
than
$3,230,000,000;
‘‘(v) for assistance under section 8 for property
disposition, not more than $691,000,000;
‘‘(vi) for assistance under section 8 for loan
management, not more than $150,000,000;
‘‘(vii) for extensions of contracts expiring under
section 8, $5,092,000,000 which shall be for 5-year
contracts for assistance under section 8 and vouch-
ers under section 8(o) (as in effect before the date
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of the enactment of this Act) and for loan manage-
ment assistance under such section;
‘‘(viii) for amendments to contracts under sec-
tion 8, such sums as may be necessary;
‘‘(ix) for public housing lease adjustments and
amendments, such sums as may be necessary;
‘‘(x) for assistance under section 18(g) for re-
placement housing for units demolished or disposed
of under section 18, not more than $333,450,000;
‘‘(xi) for conversions from leased housing con-
tracts under section 23 of this Act (as in effect im-
mediately before the enactment of the Housing and
Community Development Act of 1974) to assistance
under section 8, such sums as may be necessary;
and
‘‘(xii) for grants under section 24 for revitaliza-
tion of severely distressed public housing, not more
than $500,000,000.
‘‘(B) Using the additional budget authority provided
under paragraph (6) and the balances of budget authority
that become available during fiscal year 1996, the Sec-
retary shall, to the extent approved in appropriation Acts,
reserve authority to enter into obligations aggregating—
‘‘(i) for public housing grants under subsection
(a)(2), not more than $862,000,000, of which
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amount not more than $264,000,000 shall be avail-
able for Indian housing;
‘‘(ii) for assistance under section 8, not more
than $2,800,000,000, of which not more than
$75,000,000 shall be available for assistance under
section 8 for family unification under subsection
(q)(3) of such section;
‘‘(iii) for assistance under section 5(j)(2) for
substantial redesign, reconstruction, and redevelop-
ment of existing obsolete public housing projects and
buildings, not more than $120,000,000;
‘‘(iv) for comprehensive improvement assistance
grants 
under 
section 
14(k), 
not 
more 
than
$3,241,000;
‘‘(v) for assistance under section 8 for property
disposition, not more than $800,000,000;
‘‘(vi) for assistance under section 8 for loan
management, not more than $155,000,000;
‘‘(vii) for extensions of contracts expiring under
section 8, $6,000,000,000 which shall be for 5-year
contracts for assistance under section 8 and vouch-
ers under section 8(o) (as in effect before the date
of the enactment of the Housing and Community
Development Act of 1994) and for loan management
assistance under such section;
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‘‘(viii) for amendments to contracts under sec-
tion 8, such sums as may be necessary;
‘‘(ix) for public housing lease adjustments and
amendments, such sums as may be necessary;
‘‘(x) for assistance under section 18(g) for re-
placement housing for units demolished or disposed
of under section 18, not more than $273,600,000;
‘‘(xi) for conversions from leased housing con-
tracts under section 23 of this Act (as in effect im-
mediately before the enactment of the Housing and
Community Development Act of 1974) to assistance
under section 8, such sums as may be necessary;
and
‘‘(xii) for grants under section 24 for revitaliza-
tion of severely distressed public housing, not more
than $550,000,000.’’.
SEC. 102. RESIDENT REPRESENTATION IN PUBLIC HOUS-
ING AGENCIES.
(a) REPRESENTATION.—Section 2 of the United
States Housing Act of 1937 (42 U.S.C. 1437) is amend-
ed—
(1) by inserting ‘‘(a) POLICY.—’’ after ‘‘SEC.
2.’’;
(2) by striking the last sentence; and
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(3) by adding at the end the following new sub-
section:
‘‘(b) GOVERNANCE
OF PUBLIC HOUSING AGEN-
CIES.—
‘‘(1) PROHIBITION.—No person may be barred
from serving on the board of directors or other simi-
lar governing body of a local public housing agency
because of his or her tenancy in a low-income
project.
‘‘(2) RESIDENT
MEMBERSHIP.—Each public
housing agency shall have a board of directors or
other similar governing body, of which not less than
one-quarter of the members shall be residents of
housing units administered or assisted by the agen-
cy, except that in the case of any public housing
agency whose board of directors or other governing
body consists of 5 members, not less than 1 member
shall be a resident of a housing unit administered or
assisted by the agency. The requirement in the pre-
ceding sentence with respect to resident members
shall not apply to any State or local governing body
whose responsibilities include substantial activities
other than acting as a public housing agency for
purposes of this Act, but shall apply to any advisory
committee or organization that is established by
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such a governing body and whose responsibilities re-
late only to the governing body’s functions as a pub-
lic housing agency for purposes of this Act.
‘‘(3) CONFLICTS OF INTEREST.—The Secretary
shall establish guidelines to prevent conflicts of in-
terest on the part of resident members of the board
or directors or governing body of a public housing
agency. Such guidelines shall ensure that resident
members are able to participate fully in policy and
financial matters within the control of the board or
body.
‘‘(4) FULL PARTICIPATION.—No public housing
agency may limit or restrict the capacity or offices
in which a member of such board or body may serve
on such board or body solely because of the mem-
ber’s status as a resident member.
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘resident member’ means a member
of the board of directors or other similar governing
body of a public housing agency who is a resident
of a housing unit administered or assisted by the
agency.’’.
(b) CONFORMING AMENDMENT.—The first sentence
of section 3(b)(6) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)(6)) is amended by inserting be-
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fore the period at the end the following: ‘‘and complies
with the requirements under section 2(b)’’.
SEC. 103. DETERMINATION OF MEDIAN INCOME.
(a) IN GENERAL.—Section 3(b)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is
amended—
(1) in the 4th sentence—
(A) by striking ‘‘County’’ and inserting
‘‘and Rockland Counties’’; and
(B) by inserting ‘‘each’’ before ‘‘such
county’’; and
(2) in the last sentence—
(A) by striking ‘‘County’’ the 1st place it
appears and inserting ‘‘or Rockland Counties’’;
and
(B) by striking ‘‘County’’ the 2d place it
appears and inserting ‘‘and Rockland Coun-
ties’’.
(b) REGULATIONS AND EFFECTIVE DATE.—The Sec-
retary of Housing and Urban Development shall issue reg-
ulations implementing the amendments made by sub-
section (a) not later than the expiration of the 90-day pe-
riod beginning on the date of the enactment of this Act.
The regulations may not take effect until after September
30, 1993.
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SEC. 104. DEFINITION OF FAMILIES.
The first sentence of section 3(b)(3)(B) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is
amended by inserting ‘‘or, in the case of disabled families,
other household members’’ after ‘‘spouses’’.
SEC. 105. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) SCOPE.—Section 23(b)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437u(b)(3)) is amended
to read as follows:
‘‘(3) SCOPE.—Each public housing agency re-
quired to carry out a local program under this sec-
tion shall make assistance under the program avail-
able in a fiscal year, subject only to the availability
of amounts for such assistance, to a number of fami-
lies who are assisted by the agency under section 8
or reside in public housing of the agency that is
equivalent to the sum of—
‘‘(A) the increase for such year in the
number of families assisted under section 8 (as
compared to the preceding year); and
‘‘(B) the increase for such year in the
number of public housing dwelling units made
available by the agency (as compared to the
preceding year).’’.
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(b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Sec-
tion 23(d) of the United States Housing Act of 1937 (42
U.S.C. 1437u(d)) is amended—
(1) in paragraph (2)—
(A) in the 1st sentence, by striking ‘‘shall’’
and inserting ‘‘may’’;
(B) in the 2d sentence, by inserting after
‘‘area median income’’ the following: ‘‘that
choose to escrow amounts under this para-
graph’’;
(C) in the 2d sentence, by striking ‘‘shall’’
and inserting ‘‘may’’; and
(D) by striking the 3d and 4th sentences
and inserting the following new sentence:
‘‘Amounts in the escrow account may be with-
drawn by the participating family upon the suc-
cessful performance of the obligations of the
family under the contract of participation en-
tered into by the family under subsection (c), as
determined according to the specific goals and
terms included in the contract, and under other
circumstances, as determined by the public
housing agency with the approval of the Sec-
retary.’’; and
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(2) by striking the 2d sentence of paragraph
(3) and inserting the following new sentence: ‘‘The
plan may require the establishment of escrow sav-
ings accounts under paragraph (2), a description of
the procedures for release of escrowed amounts, and
any other incentives designed by the public housing
agency.’’.
(c) SERVICE COORDINATORS.—Section 23 of the
United States Housing Act of 1937 (42 U.S.C. 1437u)
is amended—
(1) in the last sentence of subsection (b)(1), by
inserting ‘‘under section 671 of the Housing and
Community Development Act of 1992’’ after ‘‘serv-
ice coordinator’’; and
(2) in subsection (h)—
(A) in paragraph (2), by striking ‘‘(includ-
ing the costs of employing a full-time service co-
ordinator)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) CONTRACT
ADJUSTMENTS
FOR
SERVICE
COORDINATORS.—If, in providing rental assistance
under section 8 of the United States Housing Act of
1937 for a public housing agency carrying out a
local program under this section in any fiscal year,
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the Secretary increases the amount provided for the
agency so that the number of families assisted by
the agency in the year is greater than the number
of families assisted in the preceding year, the Sec-
retary may increase the amount annually provided
for the agency to provide for the costs of employing
or otherwise retaining the services of one or more
service coordinators referred to in subsection (b)(1)
of this section. The Secretary may also, under any
existing contract for assistance under section 8, in-
clude the cost of employing such service coordinators
to the extent that amounts for amendments to such
contracts are available.’’.
(d) REPEAL OF INCENTIVE AWARD ALLOCATION.—
Section 23 of the United States Housing Act of 1937 (42
U.S.C. 1437u) is amended—
(1) by striking subsection (i); and
(2) by redesignating subsections (j) through (o)
as subsections (i) through (n), respectively.
(e) TECHNICAL AMENDMENT.—Section 23(h)(2) of
the United States Housing Act of 1937 (42 U.S.C.
1437u(h)(2)) is amended by striking the last sentence.
(f) USE OF COMMUNITY ACTION AGENCIES.—Section
23(b) of the United States Housing Act of 1937 (42
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U.S.C. 1437u(b)) is amended by adding at the end the
following new paragraph:
‘‘(5) USE OF COMMUNITY ACTION AGENCIES.—
A pubilc housing agency may enter into agreements
with any local community action agency receiving as-
sistance under the Community Services Block Grant
Act providing for such agency to carry out the local
program of the public housing agency or to provide
any supportive services under the local program.’’.
SEC. 106. USE OF AMOUNTS IN HEADQUARTERS RESERVE.
(a) USE FOR FAIR HOUSING ACTIVITIES.—Section
213(d)(4)(A) of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 1439(d)(4)(A)) is amend-
ed—
(1) in clause (iii), by striking ‘‘and’’ at the end;
(2) in clause (iv) by striking the period at the
end and inserting a semicolon; and
(3) by inserting after clause (iv) the following
new clauses:
‘‘(v) fair housing activities and cash payments,
in connection with the settlement of civil rights liti-
gation (excluding litigation brought by an employee
or former employee of the Secretary); and
‘‘(vi) in the case of financial assistance under
the rental housing assistance program under section
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8 of the United States Housing Act of 1937, provid-
ing assistance pursuant to section 8(q)(4) of such
Act.’’.
(b) AVAILABILITY OF PUBLIC HOUSING AND SEC-
TION 8 AMOUNTS.—Section 5 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437c) is amended by adding
at the end the following new subsection:
‘‘(m) USE OF AMOUNTS UNDER HEADQUARTERS RE-
SERVE.—Any amounts appropriated for public housing de-
velopment or assistance under section 8, that are retained
by the Secretary in accordance with section 213(d)(4)(A)
of the Housing and Community Development Act of 1974,
may be used for any of the activities specified in clauses
(i) through (v) of such section.’’.
(c) USE
OF SECTION 8 ASSISTANCE
FOR PORT-
ABILITY AND NEIGHBORHOOD CRIME FIGHTERS.—Sec-
tion 213(d)(4) of the Housing and Community Develop-
ment Act of 1974 is amended by adding at the end the
following new subparagraphs:
‘‘(C) Of any financial assistance for the rental hous-
ing assistance program under section 8 of the United
States Housing Act of 1937 that is reserved pursuant to
subparagraph (A), 5 percent shall be reserved for use only
for the purposes of providing assistance pursuant to sec-
tion 8(o)(6) of such Act.
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‘‘(D) In addition to any financial assistance for the
rental housing assistance program under section 8 of the
United States Housing Act of 1937 that is reserved pursu-
ant to subparagraphs (A) and (C), the Secretary shall re-
serve not more than an additional $15,000,000 of any fi-
nancial assistance that becomes available under such pro-
gram during each of fiscal years 1995 and 1996 and such
additional amounts may be used only for the purpose
under clause (vi) of subparagraph (A).’’.
Subtitle B—Public and Indian
Housing
SEC. 111. PUBLIC HOUSING RENT REFORM.
(a) CEILING RENTS.—Section 3(a)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is
amended—
(1) in subparagraph (A)—
(A) in clause (i), by striking ‘‘and ap-
proved by the Secretary’’; and
(B) by striking clause (iii) and inserting
the following new clause:
‘‘(iii) at the election of such agency, is—
‘‘(I) not less than the average monthly
amount of debt service and operating expenses
attributable to dwelling units of similar size in
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public housing projects owned and operated by
such agency;
‘‘(II) not less than the reasonable rental
value of the unit, as determined by the agency;
or
‘‘(III) not less than the local market rent
determined by the agency for comparable units
of similar size pursuant to the procedures pre-
scribed by the Secretary for determining rent
reasonableness under the program for rental
certificate assistance under section 8(b).’’;
(2) by redesignating subparagraph (B) as sub-
paragraph (D); and
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraphs:
‘‘(B) Any ceiling rents established by a public housing
agency pursuant to this paragraph may be adjusted by
the agency.
‘‘(C)(i) Any ceiling rents established pursuant to
subclause (I) or (III) of subparagraph (A)(iii) shall take
effect at the discretion of the public housing agency.
‘‘(ii) Any ceiling rents established pursuant to
subclause (II) of subparagraph (A)(iii) may not take effect
before the issuance of regulations to carry out such
subclause, which shall be issued by the Secretary not later
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than 180 days after the date of the enactment of the
Housing and Community Development Act of 1994.
‘‘(iii) Before the effectiveness of regulations under
clause (ii), an agency shall determine the reasonable rental
value of unit for purposes of subclause (II) of subpara-
graph (A)(iii) based upon (I) in a project of 50 or more
units for which such ceiling rents are being established,
the 95th percentile of rents paid for all units in the
project, (II) in a group of comparable projects for which
such ceiling rents are being established that consists of
a total of 50 or more units, all units in the projects, and
(III) in a group of at least 50 comparable units for which
such ceiling rents are being established, all units in the
group.’’.
(b) EXCLUSIONS FROM ADJUSTED INCOME.—Sec-
tion 3(b)(5) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)(5)) is amended—
(1) in subparagraph (C)—
(A) by striking ‘‘and’’ before ‘‘(ii)’’; and
(B) by inserting before the semicolon at
the end the following; ‘‘; and (iii) to the extent
documented by the family, the amount paid by
the family for health insurance coverage and
any other nonreimbursed out-of-pocket medical
expenses for any members of the family resid-
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ing in the household who, at the time, are not
receiving or approved to receive any assistance
for health care from the Federal Government or
any State government, except that this clause
shall apply only to families residing in public
housing’’;
(2) in subparagraph (E), by inserting before the
semicolon at the end the following: ‘‘, except that in
the case of a family residing in public housing the
amount excluded under this subparagraph shall be
20 percent of the earned income of the family re-
maining after excluding any amounts pursuant to
subparagraph (H)’’;
(3) in subparagraph (F), by striking ‘‘and’’ at
the end;
(4) in subparagraph (G), by striking the period
at the end and inserting a semicolon; and
(5) by adding at the end the following new sub-
paragraphs:
‘‘(H) in the case of a family residing in public
housing, any earned income of any formerly depend-
ent child who is a member of the family residing in
the family’s dwelling unit during the period begin-
ning on the date of the first redetermination of the
rent for and family composition of the family that
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occurs after the child reaches 18 years of age and
ending upon the date of the first such redetermina-
tion occurring after he or she reaches 21 years of
age, except that, effective during and after the first
fiscal year that commences after the expiration of
the 4-year period beginning on the date of the enact-
ment of this Act, amounts earned by a child may not
be excluded under this subparagraph unless (i) the
child is enrolled in and attending high school (or a
recognized equivalency program), or has received a
high school diploma (or the recognized equivalent
thereof), or (ii) the public housing agency has deter-
mined that requiring the child to comply with clause
(i) would significantly interfere with the sole source
of financial support of the family or would otherwise
create a significant hardship for the family of the
child; and
‘‘(I) in the case of 2-parent families with chil-
dren (as defined by the Secretary by regulation) who
reside in public housing, an amount (in addition to
any amounts excluded under subparagraphs (E) and
(H)) not to exceed 10 percent of any earned income
of the family.’’.
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(c) EXCLUSION OF EARNED INCOME OF RESIDENTS
WHO OBTAIN EMPLOYMENT FROM RENT DETERMINA-
TIONS.—
(1) IN GENERAL.—Section 3(a) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)) is
amended—
(A) in the third sentence of paragraph (1),
by striking ‘‘paragraph (2)’’ and inserting
‘‘paragraphs (2) and (3)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) OPTIONAL EXCLUSION
OF EARNED INCOME
FROM
RENT
DETERMINATION
FOR
FAMILIES
PRE-
VIOUSLY UNEMPLOYED.—Notwithstanding any other pro-
vision of law, a public housing agency may provide (at the
option of a public housing agency) that, for all units in
public housing administered by the agency, the rent pay-
able under subsection (b) for any such unit occupied by
a family whose income increases as a result of employment
of a member of the family who was previously unemployed
for 1 or more years, may not—
‘‘(A) be increased as a result of the increased
income due to such employment during the period
that begins upon the commencement of such employ-
ment and ends upon the second annual redetermina-
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tion of the rent for and family composition of the
family occurring thereafter;
‘‘(B) during any 12-month period occurring
during the 36 months succeeding the expiration of
the period under subparagraph (A) for the family,
be increased due to the continued employment of
such family member by more than one-third of the
difference between (i) the rent being paid by the
family upon expiration of such period, and (ii) the
amount of rent that the family would pay but for
the applicability of this paragraph; and
‘‘(C) in any case, exceed the amount determined
under paragraph (1) or (2).’’.
(d) EXCLUSION FROM INCOME OF EARNINGS FROM
JOB TRAINING
AND SELF-SUFFICIENCY PROGRAMS.—
Section 3 of the United States Housing Act of 1937 (42
U.S.C. 1437a) is amended—
(1) in subsection (b)(4), by inserting before the
period at the end the following: ‘‘, and except that
the earnings of and benefits to any public housing
resident resulting from enrollment and participation
in a program providing employment training and
supportive services in accordance with the Family
Support Act of 1988, section 22 of this Act, the Job
Training Partnership Act, Subtitle D of title IV of
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the Cranston-Gonzalez National Affordable Housing
Act, part F of title IV of the Social Security Act,
or any comparable Federal, State, or local law shall
not be considered as income for the purposes of de-
termining a limitation on the amount of rent paid by
the resident during the period that the resident en-
rolls and participates in such program’’; and
(2) by striking the undesignated paragraph at
the end of subsection (c)(3) (as added by section
515(b) of the Cranston-Gonzalez National Afford-
able Housing Act).
(e) APPLICABILITY.—Notwithstanding the amend-
ments made by this section, any resident of public housing
participating in the program under the authority con-
tained in the undesignated paragraph at the end of section
3(c)(3) of the United States Housing Act of 1937 (as
added by section 515(b) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (Public Law 101–625; 104
Stat. 4199)), as such paragraph existed before the date
of enactment of this Act, shall continue to be governed
by such authority.
(f) 
PERFORMANCE
FUNDING
SYSTEM.—Section
9(a)(3)(B) of the United States Housing Act of 1937 (42
U.S.C. 1437g(a)(3)(B)) is amended—
(1) in clause (iv), by striking ‘‘and’’ at the end;
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(2) in (v), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new
clause:
‘‘(vi) the amount of any reduced revenue result-
ing from the exclusion of income of public housing
residents pursuant to section 3(b)(5)(E) shall be cal-
culated and included in the amount of the payment
received under this section by the public housing
agency administering the public housing in which
such residents reside;’’.
(g) EFFECTIVE DATE.—The amendments under this
section shall take effect on the earlier of—
(1) date of the effectiveness of the regulations
under subsection (i); or
(2) the expiration of the 120-day period begin-
ning on the date of the enactment of this Act.
(h) REGULATIONS.—The Secretary shall issue any
final regulations necessary to implement the amendments
made by this section, which shall take effect not later than
the expiration of the 120-day period beginning on the date
of the enactment of this Act. The regulations shall be is-
sued after notice and opportunity for public comment in
accordance with the procedures under section 553 of title
5, United States Code, applicable to substantive rules
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(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of
such section).
SEC. 112. SALE OF PUBLIC HOUSING TO NON-PROFIT
INTERMEDIARIES.
The first sentence of section 5(h) of the United
States Housing Act of 1937 (42 U.S.C. 1437c(h)) is
amended by striking ‘‘its lower income tenants’’ and in-
serting: ‘‘low-income families residing in public housing or
to non-profit organizations for resale to low-income fami-
lies residing in public housing’’.
SEC. 
113. 
MAJOR 
RECONSTRUCTION 
OF 
OBSOLETE
PROJECTS.
(a) ASSISTANCE
FOR RECONSTRUCTION.—Section
5(j)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437c(j)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘Notwith-
standing’’ and all that follows through ‘‘fiscal year’’
and inserting the following: ‘‘The Secretary may
provide assistance under this paragraph’’;
(2) in subparagraph (C), by striking ‘‘reserved’’
and inserting ‘‘made available for assistance’’;
(3) in subparagraph (F)(i), by striking ‘‘re-
served or’’; and
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(4) in subparagraph (G)(i), by striking ‘‘re-
served under subparagraph (A)’’ and inserting
‘‘made available for use under this paragraph’’.
(b) SET-ASIDE FOR DISABLED FAMILIES.—Section
5(j)(2)(G)(i) of the United States Housing Act of 1937
(42 U.S.C. 1437c(j)(2)(G)(i)) is amended by striking ‘‘fis-
cal years 1993 and 1994’’ and inserting ‘‘fiscal years 1995
and 1996’’.
SEC. 114. NEW CONSTRUCTION OF PROJECTS FOR DIS-
ABLED FAMILIES.
Section 5(j)(3)(A) of the United States Housing Act
of 1937 (42 U.S.C. 1437c(j)(3)(A)) is amended by strik-
ing ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fiscal
years 1995 and 1996’’.
SEC. 115. RECAPTURE OF PUBLIC HOUSING DEVELOPMENT
AMOUNTS.
Section 5(k) of the United States Housing Act of
1937 (42 U.S.C. 1437c(k)) is amended by adding before
the period at the end of the first sentence the following:
‘‘, unless the Secretary finds that there is no feasible way
for the agency to begin construction or rehabilitation, or
to complete acquisition, within such period’’.
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SEC. 116. REPEAL OF LEAST-COST LIMITATION ON PUBLIC
HOUSING NEW CONSTRUCTION.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended by striking subsection (h).
SEC. 117. REGULATORY RELIEF AND PAPERWORK REDUC-
TION FOR HIGH-PERFORMING PUBLIC HOUS-
ING AGENCIES.
(a) WAIVER OF RULES AND REPORTS.—Section 6(j)
of the United States Housing Act of 1937 (42 U.S.C.
1437d(j)) is amended by adding at the end the following
new paragraph:
‘‘(5)(A) Except as provided in subparagraph (B), the
Secretary may, for public housing agencies designated
pursuant to this subsection as high performing public
housing agencies with respect to a fiscal year, waive (by
regulation issued under subparagraph (C)) the applicabil-
ity for the ensuing fiscal year of regulatory requirements
otherwise applicable to public housing agencies to the ex-
tent appropriate, as determined by the Secretary, to facili-
tate more efficient operation of such agencies.
‘‘(B) The Secretary may not waive the applicability
of any provision—
‘‘(i) limiting occupancy of public housing to
low-income families;
‘‘(ii) under section 18 requiring replacement of
units in the case of demolition or disposition;
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‘‘(iii) under the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970;
‘‘(iv) that prohibits, or the purpose of which is
to protect persons against, discrimination on the
basis of race, color, religion, sex, marital status, na-
tional origin, age, or handicap, or that relates to fair
housing or equal opportunity; or
‘‘(v) under chapter 75 of title 31, United States
Code.
‘‘(C) During fiscal year 1995, the Secretary shall
publish in the Federal Register a proposed rule providing
for the waiver of the regulations to be waived pursuant
to this paragraph and identifying such regulations. The
Secretary shall publish such proposed rule at a time deter-
mined by the Secretary to be sufficient to provide notice
and an opportunity for public comment before issuance of
a final rule under this paragraph. Such final rule shall
be issued not later than August 31, 1995.’’.
(b) RETENTION BY PHA’S OF SAVINGS FROM EFFI-
CIENT MANAGEMENT.—Section 6(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(e)) is amended
to read as follows:
‘‘(e) TREATMENT OF SAVINGS.—
‘‘(1) IN GENERAL.—Any income generated by a
high-performing public housing agency that exceeds
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the income estimated by the agency to be generated,
according to the agency’s annual operating budget,
shall be excluded in subsequent years in calculating
the amount of the operating subsidy provided under
section 9 to the high-performing public housing
agency. Such savings shall be retained by the agency
for other housing purposes.
‘‘(2) 
HIGH-PERFORMING
PUBLIC
HOUSING
AGENCY.—For purposes of paragraph (1), the term
‘high-performing public housing agency’ means, with
respect to a year, a public housing agency that has
been designated pursuant to subsection (j) as a high
performing public housing agency for the last fiscal
year ending before the commencement of such
year.’’.
SEC. 118. STANDARDS FOR LEASE TERMINATION AND EX-
PEDITED GRIEVANCE PROCEDURE.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended—
(1) in subsection (k), in the first sentence of
the matter following paragraph (6), by striking
‘‘criminal’’ the first place it appears; and
(2) in subsection (l)(5), by striking ‘‘criminal’’
the first place it appears.
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SEC. 119. AVAILABILITY OF CRIMINAL CONVICTION INFOR-
MATION FOR SCREENING AND EVICTIONS.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended by adding at the end the
following new subsection:
‘‘(q) AVAILABILITY OF CRIMINAL RECORDS.—
‘‘(1) 
AVAILABILITY.—Notwithstanding 
any
other provision of Federal, State, or local law, upon
the request of any public housing agency, the Na-
tional Crime Information Center, police depart-
ments, and any other law enforcement entities shall
provide information to the agency regarding the
criminal convictions of applicants for, or residents
of, public housing for the purpose of applicant
screening, lease enforcement, and eviction. A public
housing agency may pay a reasonable fee for such
information.
‘‘(2) CONTENT.—The information provided
under paragraph (1) shall include information re-
garding convictions for any felony and convictions
for certain misdemeanors, including crimes of vio-
lence, destruction of property, use, sale, or distribu-
tion of controlled substances, illegal possession or
use of firearms, and hate crimes. Such information
may not include information regarding any criminal
conviction of such an applicant or resident for any
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act (or failure to act) occurring before the applicant
or resident reached 18 years of age or information
regarding any criminal conviction of such an appli-
cant or resident occurring more than 10 years before
the request under this subsection is made by the
public housing agency.
‘‘(3) USE.—A public housing agency receiving
information under this subsection may use such in-
formation only for the purposes provided in this sub-
section and such information may not be disclosed to
any person who is not an officer or employee of the
public housing agency. The Secretary shall, by regu-
lation, establish procedures necessary to ensure that
information provided to a public housing agency
under this subsection is used, and confidentiality of
such information is maintained, as required under
this subsection.
‘‘(4) PENALTY.—Any person who knowingly
and willfully requests or obtains any information
concerning an applicant for, or resident of, public
housing pursuant to the authority under this sub-
section under false pretenses, or any person who
knowingly and willfully discloses any such informa-
tion in any manner to any individual not entitled
under any law to receive it, shall be guilty of a mis-
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demeanor and fined not more than $5,000. The
term ‘person’ as used in this paragraph shall include
an officer or employee of any public housing agency.
‘‘(5) CIVIL
ACTION.— Any applicant for, or
resident of, public housing affected by (A) a neg-
ligent or knowing disclosure of information referred
to in this section about such person by an officer or
employee of any public housing agency, which disclo-
sure is not authorized by this subsection, or (B) any
other negligent or knowing action that is inconsist-
ent with this subsection, may bring a civil action for
damages and such other relief as may be appropriate
against any officer or employee of any public hous-
ing agency responsible for such unauthorized action.
The district court of the United States in the dis-
trict in which the affected applicant or resident re-
sides, in which such unauthorized action occurred, or
in which the officer or employee alleged to be re-
sponsible for any such unauthorized action resides,
shall have jurisdiction in such matters. Appropriate
relief that may be ordered by such district courts
shall include reasonable attorney’s fees and other
litigation costs.’’.
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SEC. 120. DESIGNATED HOUSING.
(a) APPLICATIONS.—Section 7(e)(1) of the United
States Housing Act of 1937 (42 U.S.C. 1437e(e)(1)) is
amended—
(1) in the first sentence, by striking ‘‘and the
Secretary approves an application under this sub-
section for such designation’’; and
(2) in the second sentence, by inserting before
the period at the end the following: ‘‘, which shall
provide that an application for a project (or portion
of a project) shall be submitted and considered for
approval in conjunction with submission and ap-
proval of the allocation plan for the project (or por-
tion) under section 7(f)’’.
(b) LIMITATION ON OCCUPANCY IN PUBLIC HOUSING
DESIGNATED FOR ELDERLY FAMILIES.—
(1) IN GENERAL.—Section 7(a) of the United
States Housing Act of 1937 (42 U.S.C. 1437e(a)) is
amended—
(A) in paragraph (1), by striking ‘‘Not-
withstanding any other provision of law’’ and
inserting ‘‘Subject only to the provisions of this
subsection’’;
(B) in paragraph (4), by inserting ‘‘, ex-
cept as provided in paragraph (5)’’ before the
period at the end; and
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(C) by adding at the end the following new
paragraph:
‘‘(5) LIMITATION ON OCCUPANCY IN PROJECTS
FOR ELDERLY FAMILIES.—
‘‘(A) OCCUPANCY
LIMITATION.—Notwith-
standing any other provision of law, a dwelling
unit in a project (or portion of a project) that
is designated under paragraph (1) for occu-
pancy by only elderly families or by only elderly
and disabled families shall not be occupied by—
‘‘(i) any person with disabilities who
is not an elderly person and whose history
of use of alcohol or drugs constitutes a dis-
ability; or
‘‘(ii) any person who is not an elderly
person and whose history of use of alcohol
or drugs provides reasonable cause for the
agency to believe that the occupancy by
such person may interfere with the health,
safety, or right to peaceful enjoyment of
the premises by other tenants.
‘‘(B) REQUIRED
STATEMENT.—A public
housing agency may not make a dwelling unit
in such a project available for occupancy to any
person or family who is not an elderly family,
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unless the agency acquires from the person or
family a signed statement that no person who
will be occupying the unit—
‘‘(i) uses (or has a history of use of)
alcohol, or
‘‘(ii) uses (or has a history of use of)
drugs,
that would interfere with the health, safety, or
right to peaceful enjoyment of the premises by
other tenants.’’.
(2) LEASE
PROVISIONS.—Section 6(l) of the
United States Housing Act of 1937 (42 U.S.C.
1437d(l)) is amended—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) by redesignating paragraph (6) as
paragraph (7); and
(C) by inserting after paragraph (5) the
following new paragraph:
‘‘(6) provide that any occupancy in violation of
the provisions of section 7(a)(5)(A) or the furnishing
of any false or misleading information pursuant to
section 7(a)(5)(B) shall be cause for termination of
tenancy; and’’.
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(c) EVICTION OF NONELDERLY TENANTS HAVING
DRUG
OR ALCOHOL USE PROBLEMS FROM PUBLIC
HOUSING DESIGNATED FOR ELDERLY FAMILIES.—Sec-
tion 7(c) of the United States Housing Act of 1937 is
amended to read as follows:
‘‘(c) STANDARDS REGARDING EVICTIONS.—
‘‘(1) LIMITATION.—Except as provided in para-
graph (2), any tenant who is lawfully residing in a
dwelling unit in a public housing project may not be
evicted or otherwise required to vacate such unit be-
cause of the designation of the project (or a portion
of the project) pursuant to this section or because
of any action taken by the Secretary of Housing and
Urban Development or any public housing agency
pursuant to this section.
‘‘(2) REQUIREMENT
TO
EVICT
NONELDERLY
TENANTS HAVING DRUG OR ALCOHOL USE PROB-
LEMS IN HOUSING DESIGNATED FOR ELDERLY FAMI-
LIES.—The public housing agency administering a
project (or portion of a project) described in sub-
section (a)(5)(A) shall evict any person whose occu-
pancy in the project (or portion of the project) vio-
lates subsection (a)(5)(A).
‘‘(3) REQUIREMENT
TO
EVICT
NONELDERLY
TENANTS FOR 3 INSTANCES OF PROHIBITED ACTIV-
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ITY INVOLVING DRUGS OR ALCOHOL.—With respect
to a project (or portion of a project) described in
subsection (a)(5)(A), the public housing agency ad-
ministering the project shall evict any person who is
not an elderly person and who, during occupancy in
the project (or portion thereof), engages on 3 sepa-
rate occasions (occurring after the date of the enact-
ment of the Housing and Community Development
Act of 1994) in any activity that threatens the
health, safety, or right to peaceful enjoyment of the
premises by other tenants and involves the use of al-
cohol or drugs.
‘‘(4) RULE OF CONSTRUCTION.—The provisions
of paragraphs (2) and (3) requiring eviction of a
person may not be construed to require a public
housing agency to evict any other persons who oc-
cupy the same dwelling unit as the person required
to be evicted.’’.
SEC. 121. PUBLIC HOUSING OPERATING SUBSIDIES.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
9(c) of the United States Housing Act of 1937 (42 U.S.C.
1437g(c)) is amended—
(1) in paragraph (1), by striking ‘‘There’’ and
all that follows and inserting the following new sen-
tence: ‘‘There are authorized to be appropriated for
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purposes of providing annual contributions under
this section $3,146,000,000 for fiscal year 1995 and
$3,208,000,000 for fiscal year 1996.’’;
(2) in paragraph (2), by striking ‘‘1993 and
1994’’ and inserting ‘‘1995 and 1996’’; and
(3) in paragraph (3), by striking ‘‘1993 and
1994’’ and inserting ‘‘1995 and 1996’’.
(b) ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC
HOUSING.—Section 9(a)(2) of the United States Housing
Act of 1937 is amended—
(1) by striking ‘‘one’’ and inserting ‘‘that is
(A)’’; and
(2) by inserting after ‘‘section 8,’’ the following:
‘‘or (B) assisted under section 24 or the program
authorized under (i) the third paragraph of the
head, HOMEOWNERSHIP
AND
OPPORTUNITY
FOR
PEOPLE EVERYWHERE GRANTS (HOPE GRANTS), of
title II of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1993, or (ii) the head,
SEVERELY DISTRESSED PUBLIC HOUSING PROJECTS,
of title II of the Department of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1994;’’.
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(c) INCLUDED COSTS.—Section 9(a)(3)(B) of the
United States Housing Act of 1937 (42 U.S.C.
1437g(a)(3)(B)), as amended by the preceding provisions
of this Act, is further amended by adding at the end the
following new clauses:
‘‘(vii) effective for fiscal year 1996 and there-
after, the amount of the payment received under this
section by public housing agencies shall be calculated
to include—
‘‘(I) benefits (including health care and
pensions, annuities, and other retirement bene-
fits) of employees of the agency;
‘‘(II) the amount of any reduced revenue
resulting from the amendments made by sub-
sections (b) and (c) of section 573 of the Cran-
ston-Gonzalez National Affordable Housing Act;
‘‘(III) maintenance deferred;
‘‘(IV) utility costs attributable to air condi-
tioning; and
‘‘(V) any increased costs of security for the
public housing, attributable to increases in the
number of incidents of vandalism and crime in
the housing; and
‘‘(viii) effective for fiscal year 1996 and there-
after, the amount of the payment received under this
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section by a public housing agency for a fiscal year
shall be determined taking into consideration the ac-
tual expenses for the agency for the preceding fiscal
year.’’.
SEC. 122. ELIGIBLE USES OF EMERGENCY MODERNIZATION
FUNDS.
Section 14(k)(1) of the United States Housing Act
of 1937 (42 U.S.C. 1437l(k)(1)) is amended—
(1) 
in 
the 
first 
sentence, 
by 
striking
‘‘$75,000,000’’ and inserting ‘‘$50,000,000’’; and
(2) by adding at the end the following new sen-
tence: ‘‘The Secretary shall make any amounts re-
served under this paragraph for any fiscal year that
remain unobligated on September 1 of such fiscal
year available for modernization needs in connection
with the settlement of litigation and desegregation of
public housing. Of the amounts reserved each year
under this paragraph, the Secretary shall make
available to the Inspector General of the Department
of Housing and Urban Development not more than
$5,000,000 for cost in connection with efforts to
combat violent crime in public housing. Using
amounts made available pursuant to the preceding
sentence during fiscal years 1995 and 1996, the Sec-
retary shall provide amounts in each such fiscal year
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for the continuation of the drug elimination activi-
ties under Project Nos. IA05PO98003004 and
IA05DEP0980193.’’.
SEC. 123. USE OF MODERNIZATION FUNDS FOR REPLACE-
MENT HOUSING.
(a) IN GENERAL.—Section 14 of the United States
Housing Act of 1937 (42 U.S.C. 1437l) is amended by
adding at the end the following new subsection:
‘‘(q) USE OF AMOUNTS FOR REPLACEMENT HOUS-
ING.—
‘‘(1) AUTHORITY.—A public housing agency
may use assistance under this section to provide re-
placement housing as required by section 18 by de-
veloping additional housing under this Act, in ac-
cordance with requirements applicable to the devel-
opment of public housing, but only if the cost of pro-
viding such housing (not including costs of demoli-
tion) is more cost effective than the cost of mod-
ernization of the housing proposed to be replaced.
‘‘(2) LIMITATION ON AMOUNT.—In any fiscal
year, a public housing agency may not use more
than 50 percent of any assistance provided to the
agency under this section for the fiscal year for pro-
viding replacement housing pursuant to this section.
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‘‘(3) REQUIREMENTS.—A public housing agen-
cy may use assistance under this section as provided
in subsection (a) only if the replacement of units is
included in the replacement plan of the agency.’’.
(b) AVAILABLE REPLACEMENT HOUSING.—Section
14(c)(1) of the United States Housing Act of 1937 is
amended by inserting before the semicolon the following:
‘‘or, only in the case of assistance used as provided under
subsection (q), housing or units in housing owned (or
leased for a period to be determined by the Secretary) by
a partnership of a public housing agency and other entity
in which the agency has a controlling interest’’.
SEC. 124. AUTHORITY FOR PUBLIC HOUSING AGENCIES TO
LEVERAGE AMOUNTS FOR REPLACEMENT
AND MODERNIZATION.
Section 14 of the United States Housing Act of 1937
(42 U.S.C. 1437l) is amended by adding after subsection
(q), as added by the preceding provisions of this Act, the
following new subsection:
‘‘(r) AUTHORITY FOR PUBLIC HOUSING AGENCIES
TO LEVERAGE AMOUNTS FOR REPLACEMENT AND MOD-
ERNIZATION.—
‘‘(1) GENERAL
AUTHORIZATION.—The Sec-
retary may, upon such terms and conditions as the
Secretary may prescribe, authorize a public housing
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recent grant for a fiscal year provided under
this section for comprehensive modernization.
‘‘(B) FOR ALL PHAS.—The aggregate out-
standing principal amount leveraged under this
subsection by all public housing agencies may
not, 
in 
any 
single 
fiscal 
year, 
exceed
$2,000,000,000.
‘‘(4) USE OF COMPREHENSIVE MODERNIZATION
GRANTS
AND
OPERATING
REVENUES.—Notwith-
standing any other provision of this title, a public
housing agency for which a plan is approved under
this subsection may use amounts provided under this
section to the agency for comprehensive moderniza-
tion and amounts provided under section 9 to the
agency for operating subsidies (including program
income derived therefrom) for the payment of prin-
cipal, interest, and fees due on any loans obtained
pursuant to the plan.
‘‘(5) REPORTS.—The Secretary shall submit a
report to the Congress annually regarding the activi-
ties under plans for leveraging approved under this
subsection and the status of loans, financing, and in-
vestments obtained under such plans.’’.
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SEC. 125. DEMOLITION AND DISPOSITION OF PUBLIC
HOUSING.
Section 18 of the United States Housing Act of 1937
(42 U.S.C. 1437p) is amended to read as follows:
‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING
‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec-
retary may approve an application by a public housing
agency for permission to demolish or dispose of a public
housing project or a portion of a public housing project
only if the Secretary has determined that—
‘‘(1) in the case of—
‘‘(A) an application proposing demolition
of a public housing project or a portion of a
public housing project, the project or portion of
the project is obsolete as to physical condition,
location, or other factors, and it is more cost ef-
fective to replace the project or portion of the
project than to rehabilitate the project or por-
tion of the project; or
‘‘(B) an application proposing the demoli-
tion of only a portion of a project, the demoli-
tion will help to assure the remaining useful life
of the remaining portion of the project;
‘‘(2) in the case of an application proposing dis-
position of real property of a public housing agency
by sale or other transfer—
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‘‘(A)(i) the property’s retention is not in
the best interests of the tenants or the public
housing agency because (I) developmental
changes in the area surrounding the project ad-
versely affect the health or safety of the tenants
or the feasible operation of the project by the
public housing agency, (II) disposition will allow
the acquisition, development, or rehabilitation
of other properties which will be more effi-
ciently or effectively operated as low-income
housing and which will preserve the total
amount of low-income housing stock available in
the community or housing sufficient to address
the needs of the community as described in the
comprehensive housing affordability strategy
under section 105 of the Cranston-Gonzalez
National Affordable Housing Act, or (III) be-
cause of other factors which the Secretary de-
termines are consistent with the best interests
of the tenants and public housing agency and
which are not inconsistent with other provisions
of this Act; and
‘‘(ii) for property other than dwelling
units, the property is excess to the needs of a
project or the disposition is incidental to, or
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does not interfere with, continued operation of
a project; and
‘‘(B) the net proceeds of the disposition
will be used for (i) the payment of development
costs for the replacement housing and for the
retirement of outstanding obligations issued to
finance original development or modernization
of the project, which, in the case of scattered-
site housing of a public housing agency, shall be
in an amount that bears the same ratio to the
total of such costs and obligations as the num-
ber of units disposed of bears to the total num-
ber of units of the project at the time of dis-
position, and (ii) to the extent that any pro-
ceeds remain after the application of proceeds
in accordance with clause (i), the provision of
housing assistance for low-income families
through such measures as modernization of low-
income housing, or the acquisition, develop-
ment, or rehabilitation of other properties to
operate as low-income housing; or
‘‘(3) in the case of an application proposing
demolition or disposition of any portion of a public
housing project, assisted at any time under section
5(j)(2)—
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‘‘(A) such assistance has not been provided
for the portion of the project to be demolished
or disposed within the 10-year period ending
upon submission of the application; or
‘‘(B) the property’s retention is not in the
best interest of the tenants or the public hous-
ing agency because of changes in the area sur-
rounding the project or other circumstances of
the project, as determined by the Secretary.
‘‘(b) TENANT INVOLVEMENT
AND REPLACEMENT
HOUSING.—The Secretary may approve an application or
furnish assistance under this section or under this Act
only if the following requirements are met:
‘‘(1) TENANT
CONSULTATION
AND
EMPLOY-
MENT.—The application from the public housing
agency—
‘‘(A) has been developed in consultation
with tenants and tenant councils, if any, who
will be affected by the demolition or disposition;
‘‘(B) includes a plan to employ public
housing tenants in construction or rehabilita-
tion to the extent practicable, pursuant to sec-
tion 3 of the Housing and Urban Development
Act of 1968; and
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‘‘(C) contains a certification by appropriate
local government officials that the proposed ac-
tivity is consistent with the applicable com-
prehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National
Affordable Housing Act.
‘‘(2) RELOCATION ASSISTANCE.—All tenants to
be relocated as a result of the demolition or disposi-
tion will be provided assistance by the public housing
agency and are relocated to other decent, safe, sani-
tary, and affordable housing, which is, to the maxi-
mum extent practicable, housing of their choice, in-
cluding housing assisted under section 8 of this Act.
‘‘(3) REPLACEMENT
HOUSING.—The public
housing agency has developed a plan that provides
for additional decent, safe, sanitary, and affordable
dwelling unit for each public housing dwelling unit
to be demolished or disposed under such application
or provides additional dwelling units sufficient to ad-
dress the needs and demographic characteristics of
the number of applicants on the waiting list of the
agency equal to the number of units to be demol-
ished or disposed of or the needs of the community
as described in the comprehensive housing afford-
ability strategy under section 105 of the Cranston-
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Gonzalez National Affordable Housing Act, which
plan—
‘‘(A) provides for the provision of such ad-
ditional dwelling units through—
‘‘(i) the acquisition or development of
additional public housing dwelling units,
which may be units in housing owned (or
leased for a period to be determined by the
Secretary) by a partnership of a public
housing agency and other entity in which
the agency has a controlling interest;
‘‘(ii) the use of 15-year project-based
assistance under section 8;
‘‘(iii) in the case of an application
proposing demolition or disposition of 200
or more units, the use of tenant-based as-
sistance under section 8 having a term of
not less than 5 years;
‘‘(iv) units acquired or otherwise pro-
vided for homeownership (including cooper-
ative and condominium interests) by public
housing residents under section 5(h), sub-
title B or C of title IV of the Cranston-
Gonzalez National Affordable Housing Act,
or other programs for homeownership that
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have program requirements substantially
equivalent to the requirements established
under section 605 of the Housing and
Community Development Act of 1987;
‘‘(v) affordable housing homeowner-
ship units assisted under title II of the
Cranston-Gonzalez 
National 
Affordable
Housing Act and sold to public housing
residents;
‘‘(vi) rental units that are (I) assisted
under title II of the Cranston-Gonzalez
National Affordable Housing Act (notwith-
standing section 212(d)(2) of such Act), or
(II) assisted under a State or local rental
assistance program that provides for rental
assistance over a term of not less than 15
years that is comparable in terms of eligi-
bility and contribution to rent to assistance
under section 8, except that this subclause
shall only apply in cases provided under
subparagraph (C);
‘‘(vii) housing assisted by a tax credit
under section 42 of the Internal Revenue
Code;
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‘‘(viii) housing acquired from the Res-
olution Trust Corporation or the Federal
Deposit Insurance Corporation;
‘‘(ix) housing acquired under section
203 of the Housing and Community Devel-
opment Amendments of 1978;
‘‘(x) other manners approved by the
Secretary; or
‘‘(xi) any combination of such meth-
ods;
‘‘(B) in the case of an application propos-
ing demolition or disposition of 200 or more
units, shall provide that—
‘‘(i) not less than 50 percent of such
additional dwelling units shall be provided
through the acquisition or development of
additional 
dwelling 
units 
or 
through
project-based assistance; and
‘‘(ii) not more than 50 percent of such
additional dwelling units shall be provided
through tenant-based assistance under sec-
tion 8 having a term of not less than 5
years;
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‘‘(C) if it provides for the use of tenant-
based assistance provided under section 8 or
otherwise, may be approved—
‘‘(i) only after a finding by the Sec-
retary that replacement with project-based
assistance is not feasible, and the supply of
private rental housing actually available to
those who would receive such assistance
under the plan is sufficient for the total
number of families in the community as-
sisted with tenant-based assistance after
implementation of the plan and that such
supply is likely to remain available for the
full term of the assistance; and
‘‘(ii) only if such finding is based on
objective information, which shall include
rates of participation by landlords in the
section 8 program, size, conditions and
rent levels of available rental housing as
compared to section 8 standards, the sup-
ply of vacant existing housing meeting the
section 8 housing quality standards with
rents at or below the fair market rental,
the number of eligible families waiting for
public housing or housing assistance under
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section 8, and the extent of discrimination
against the types of individuals or families
to be served by the assistance;
‘‘(D) may provide that all or part of such
additional dwelling units may be located outside
the jurisdiction of the public housing agency (in
this subparagraph referred to as the ‘original
agency’) if—
‘‘(i) the location is in the same hous-
ing market area as the original agency, as
determined by the Secretary; and
‘‘(ii) the plan contains an agreement
between the original agency and the public
housing agency in the alternate location or
other public or private entity that will be
responsible for providing the additional
units in the alternate location that such al-
ternate agency or entity will, with respect
to the dwelling units involved—
‘‘(I) provide the dwelling units in
accordance with subparagraph (A);
‘‘(II) complete the plan on sched-
ule in accordance with subparagraph
(F);
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‘‘(III) meet the requirements of
subparagraph (G) of this paragraph
and the maximum rent provisions of
subparagraph (H);
‘‘(IV) not impose a local resi-
dency preference on any resident of
the jurisdiction of the original agency
for purposes of admission to any such
units; and
‘‘(V) allow that preference for ad-
mission to any such additional units
may be provided to residents of the
severely distressed public housing
dwelling units replaced under this
subparagraph pursuant to section 24;
‘‘(E) includes a schedule for completing
the plan within a period consistent with the size
of the proposed demolition or disposition and
replacement plan, which—
‘‘(i) shall not exceed 6 years, except
that the Secretary may extend the schedule
to not more than 10 years if the Secretary
determines that good cause exists to ex-
tend the implementation of the replace-
ment plan under this subsection; and
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‘‘(ii) the demolition or disposition
under the plan can occur in phases nec-
essary to provide for relocation of tenants
under paragraph (2);
‘‘(F) includes a method of ensuring that
the same number of individuals and families
will be provided housing;
‘‘(G) provides for the payment of the relo-
cation expenses of each tenant to be displaced
and ensures that the rent paid by the tenant
following relocation will not exceed the amount
permitted under this Act;
‘‘(H) prevents the taking of any action to
demolish or dispose of any unit until the tenant
of the unit is relocated to decent, safe, sanitary,
and affordable housing; and
‘‘(I) permits the Secretary to intervene and
take any actions necessary to complete the plan
if the public housing agency fails, without good
cause, to carry out its obligations under the
plan.
‘‘(c) LIMITATION
ON DEMOLITION
AND EXEMP-
TION.—
‘‘(1) MAXIMUM
PERCENTAGE.—Notwithstand-
ing any other provision of this section, in any 5-year
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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 operated by
the public housing agency, without providing an ad-
ditional dwelling unit for each such public housing
dwelling unit to be demolished, but only if the space
occupied by the demolished unit is used for meeting
the service or other needs of public housing resi-
dents.
‘‘(2) SITE
AND
NEIGHBORHOOD
STANDARDS
EXEMPTION.—Notwithstanding any other provision
of law, a replacement plan under subsection (b)(3)
may provide for demolition of public housing units
and replacement of such units on site or in the same
neighborhood if the number of replacement units
provided in the same neighborhood is fewer than the
number of units demolished and the balance of re-
placement units are provided elsewhere in the juris-
diction or pursuant to subsection (b)(3)(D).
‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With
respect to any dwelling units developed, acquired, or leased
by a public housing agency pursuant to a replacement plan
under subsection (b)(3)—
‘‘(1) assistance may be provided under section
9 for such units; and
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‘‘(2) such units shall be available for occupancy,
operated and managed in the manner required for
public housing, and shall be subject to the other re-
quirements applicable to public housing dwelling
units.
‘‘(e) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall notify
a public housing agency submitting an application
under this section for demolition or disposition and
replacement of a public housing project or portion of
a project of the approval or disapproval of the appli-
cation not later than 60 days after receiving the ap-
plication. If the Secretary does not notify the public
housing agency as required under this paragraph or
paragraph (2), the application shall be considered to
have been approved.
‘‘(2) DISAPPROVAL AND RESUBMISSION.—If the
Secretary disapproves an application, the Secretary
shall specify in the notice of disapproval the reasons
for the disapproval and the agency may resubmit the
application as amended or modified.
‘‘(3) ANNUAL
REPORT.—The Secretary shall
submit a report to the Congress annually describing
for the year the applications under this section ap-
proved and disapproved, the number, general condi-
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tion, and location of units demolished or disposed of,
and the number, general condition, location and
method of provision of units of replacement housing
provided pursuant to this section.
‘‘(f) ACTION BEFORE APPROVAL OF APPLICATION.—
‘‘(1) PROHIBITED ACTION.—A public housing
agency shall not take any action to demolish or dis-
pose of a public housing project or a portion of a
public housing project without obtaining the ap-
proval of the Secretary and satisfying the conditions
specified in subsections (a) and (b).
‘‘(2) 
ALLOWABLE
RELOCATION.—A 
public
housing agency may relocate tenants of public hous-
ing into other dwelling units before the approval of
an application under this section for demolition or
disposition or prior to implementing a plan for mod-
ernization under section 14 or 24, if units to be de-
molished or disposed of are not decent, safe, and
sanitary, or if the units to be rehabilitated can not
be maintained cost-effectively in a decent, safe, and
sanitary condition.
‘‘(g) ASSISTANCE FOR REPLACEMENT HOUSING.—
The Secretary may provide assistance under this sub-
section for—
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‘‘(1) providing replacement public housing units
pursuant to subsection (b)(3)(A) for units demol-
ished or disposed of pursuant to this section; and
‘‘(2) providing assistance under section 8 for
replacement 
housing 
pursuant 
to 
subsection
(b)(3)(A) for units demolished or disposed of pursu-
ant to this section.
‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME-
OWNERSHIP PROGRAM.—The provisions of this section
shall not apply to the disposition of a public housing
project in accordance with an approved homeownership
program under title III of this Act.
‘‘(i) EXCEPTION TO REPLACEMENT RULE.—
‘‘(1) REQUIREMENTS FOR WAIVER.—The Sec-
retary shall waive the applicability of the provisions
of subsection (b)(3) with respect to any application
under this section by a public housing agency for the
demolition or disposition of public housing dwelling
units if—
‘‘(A) the Secretary determines, based on
information provided by the public housing
agency in the application and the request under
paragraph (2), that—
‘‘(i) the requirements under sub-
section (b)(3) are preventing or interfering
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with the development or acquisition of new
public housing dwelling units by the agen-
cy;
‘‘(ii) the long-term goal of the agency
in requesting the waiver under this sub-
section is to increase the number of habit-
able public housing dwelling units of the
agency;
‘‘(iii) maintaining and operating the
dwelling units to be demolished or disposed
of is not cost effective; and
‘‘(iv) sufficient financial assistance is
not, and will not be, available to the public
housing agency to rehabilitate or replace
all or some of the units;
‘‘(B) the Secretary determines that replac-
ing the dwelling units to be demolished or dis-
posed under the application is unnecessary be-
cause other affordable housing is available in
the area in which the units are located, and in
making such determination the Secretary shall
consider the assessment submitted by the public
housing agency under paragraph (2)(C); and
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‘‘(C) the public housing agency requests a
waiver under this subsection in accordance with
the requirements under paragraph (2).
‘‘(2) REQUEST FOR WAIVER.—To be eligible for
a waiver under this subsection, a public housing
agency shall submit to the Secretary a request for
a waiver under this subsection that includes—
‘‘(A) a comprehensive plan for demolition,
disposition, and replacement that describes ad-
ditional dwelling units to be made available by
the public housing agency;
‘‘(B) an identification of the dwelling units
for which the waiver is requested; and
‘‘(C) an assessment of the need of replac-
ing such dwelling units including the unit size,
age, general condition, and length of time such
units have been vacant, the condition of the
neighborhood in which the dwelling units are lo-
cated, and the availability of dwelling units af-
fordable to low-income families within the juris-
diction in which the dwelling units are located,
during the implementation of the replacement
plan.
‘‘(3) SUBMISSION TO SECRETARY.—A request
for a waiver under this subsection may be submitted
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mined based on the difficulty of obtaining the infor-
mation requested. If the agency submits such addi-
tional information requested before the deadline es-
tablished in the notice under this paragraph, the
Secretary shall notify the agency requesting the
waiver that the request is approved or disapproved
not later than 30 days after the submission of such
additional information.
‘‘(6) STATEMENT OF REASONS FOR DENYING
OR APPROVING REQUEST.—The Secretary shall in-
clude, in each notice under paragraph (4) or (5) of
the denial or approval of a request for a waiver
under this subsection, the specific reasons for deny-
ing or approving the request. The denial of any re-
quest for a waiver for public housing dwelling units
shall not prejudice the consideration of any other
subsequent request for such a waiver for any of such
dwelling units.’’.
SEC. 126. PUBLIC HOUSING RESIDENT OPPORTUNITY.
Section 20 of the United States Housing Act of 1937
(42 U.S.C. 1437r) is amended—
(1) by striking the section heading and insert-
ing the following new section heading:
‘‘RESIDENT OPPORTUNITY PROGRAM’’;
(2) in the first 2 sentences of subsection (b), by
striking ‘‘resident management program’’ each place
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it appears and inserting ‘‘resident opportunity pro-
gram’’; and
(3) in subsection (f)—
(A) by striking ‘‘RESIDENT MANAGEMENT
TECHNICAL ASSISTANCE AND TRAINING’’ and
inserting ‘‘RESIDENT
OPPORTUNITY
ASSIST-
ANCE’’;
(B) in paragraph (1), by adding at the end
the following new sentences: ‘‘In addition, the
Secretary may provide financial assistance to
resident management corporations or resident
councils for activities sponsored by resident or-
ganizations for job training, economic develop-
ment, security, and other self-sufficiency activi-
ties beyond those related to the management of
public housing. Any resident management cor-
poration or resident council may use such as-
sistance to enter into agreements with any local
community action agency receiving assistance
under the Community Services Block Grant Act
for such agency to carry out such activities.’’;
(C) 
in 
paragraph 
(2), 
by 
striking
‘‘$100,000’’ and inserting ‘‘$250,000’’;
(D) by striking paragraph (3) and insert-
ing the following new paragraph:
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‘‘(3) FUNDING.—Of any amounts made avail-
able for financial assistance under section 14, the
Secretary may use to carry out this subsection
$25,000,000 for fiscal year 1995 and $25,000,000
for fiscal year 1996.’’;
(E) 
by 
redesignating 
paragraphs 
(2)
through (4) as paragraphs (3) through (5), re-
spectively; and
(F) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) OTHER USES OF ASSISTANCE.—The Sec-
retary may use amounts available to carry out this
subsection to enter into contracts with—
‘‘(A) various entities for monitoring, eval-
uation, technical assistance, and information
dissemination in connection with activities
under this subsection; and
‘‘(B) resident organizations and public or
private entities (including local community ac-
tion agencies receiving assistance under the
Community Services Block Grant Act) for ac-
tivities that support the economic development
and increased self-sufficiency of public housing
residents.
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Eligible activities related to economic development
and self-sufficiency may include programs for coun-
seling, treatment for substance abuse, child care, re-
medial education, job training, and development of
resident businesses.’’.
SEC. 127. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
22(k) of the United States Housing Act of 1937 (42
U.S.C. 1437t(k)) is amended to read as follows:
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$50,000,000 for fiscal year 1995 and $50,000,000 for fis-
cal year 1996.’’.
(b) PURPOSES.—Section 22(a) of the United States
Housing Act of 1937 (42 U.S.C. 1437t(a)) is amended—
(1) in the matter preceding paragraph (1) by
inserting before ‘‘to provide’’ the following: ‘‘to pro-
vide job training and employment services to public
housing residents in connection with public and pri-
vate sector jobs generated by construction, mod-
ernization, maintenance, and supportive service ac-
tivities of public housing and other housing projects
and programs assisted by the Department of Hous-
ing and Urban Development and’’;
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(2) by redesignating paragraphs (2), (3), and
(4), as paragraphs (3), (4), and (5), respectively;
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) operating job banks, assisting employers to
develop training and apprenticeship programs, as-
sisting businesses of public housing residents, and
other employment-related activities;’’; and
(4) by adding at the end the following new
flush sentence:
‘‘The provision of services under this section shall be con-
sidered the provision of housing for purposes of section
3 of the Housing and Urban Development Act of 1968.’’.
(c) ELIMINATION OF SUPPORTIVE SERVICES CAP.—
Section 22(c)(4) of the United States Housing Act of
1937 is amended by striking ‘‘not more than 15 percent
of’’.
(d) ECONOMIC OPPORTUNITY ACTIVITIES.—Section
22 of the United States Housing Act of 1937 is amend-
ed—
(1) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) GRANT AUTHORITY.—The Secretary may make
grants to public housing agencies, and to local community
action agencies that are receiving assistance under the
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Community Services Block Grant Act and are working in
coordination with public housing agencies, to adapt and
provide sites in or near public housing for providing serv-
ices to help families residing in the public housing gain
better access to educational and job opportunities to
achieve self-sufficiency and independence, and to provide
such services. Assistance under this section may be made
available only for public housing agencies that dem-
onstrate to the satisfaction of the Secretary that support-
ive services (as such term is defined in subsection (j)) will
be made available. Facilities assisted under this section
shall be located in or near the premises of public hous-
ing.’’;
(2) in subsection (c)(3), by striking ‘‘the ren-
ovation of facilities located near the premises of 1 or
more public housing projects’’ and inserting the fol-
lowing: ‘‘the acquisition of facilities located near the
premises of 1 or more public housing projects, the
acquisition and renovation of such facilities, or the
renovation of such facilities,’’; and
(3) in subsection (j)—
(A) in the first sentence, by inserting be-
fore the period at the end the following: ‘‘(in-
cluding opportunities under a Family Self-Suffi-
ciency program under section 23 of this Act,
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subtitle D of title IV of the Cranston-Gonzalez
National Affordable Housing Act, and the Job
Training Partnership Act) and to facilitating
participation in such opportunities’’;
(B) in paragraph (5), by striking ‘‘and’’ at
the end;
(C) by redesignating paragraphs (4), (5),
and (6) as paragraphs (5), (6), and (15), re-
spectively; and
(D) by inserting after paragraph (3) the
following new paragraph:
‘‘(4) English language education for persons
having no or limited proficiency in English;’’; and
(E) by inserting after paragraph (6) (as so
redesignated) the following new paragraphs:
‘‘(7) providing a job bank of available employ-
ment positions;
‘‘(8) assisting contractors, contractor associa-
tions, and joint labor-management committees to de-
velop and assist training and apprenticeship pro-
grams;
‘‘(9) funding start-up costs of business employ-
ing, or owned by, public housing residents;
‘‘(10) providing coordination with related gov-
ernment and private programs;
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‘‘(11) carrying out job-related activities nec-
essary to establish and operate a family investment
center, including training, supervision of trainees,
and job recruitment;
‘‘(12) apprenticeship training of public housing
residents in job skills used in the construction mod-
ernization, maintenance, and operation of public
housing and other housing assisted by the Depart-
ment of Housing and Urban Development;
‘‘(13) employing public housing residents in
modernization, maintenance, and operation of public
housing and other housing assisted by the Depart-
ment of Housing and Urban Development;
‘‘(14) training and employing public housing
residents in jobs providing supportive services to
residents participating in the program for family
self-sufficiency and other economic independence;
and’’.
(e) USE OF COMMUNITY ACTION AGENCIES.—Sec-
tion 22 of the United States Housing Act of 1937 is
amended—
(1) in subsection (c)(4), by inserting ‘‘, includ-
ing local community action agencies receiving assist-
ance under the Community Services Block Grant
Act’’ after ‘‘providers’’; and
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(2) in subsection (h), by striking ‘‘employ’’ and
inserting ‘‘provide for the employment of’’.
SEC. 128. REVITALIZATION OF SEVERELY DISTRESSED PUB-
LIC HOUSING.
(a) PLANNING GRANTS.—Subsection (c) of section 24
of the United States Housing Act of 1937 (42 U.S.C.
1437v(c)) is amended—
(1) in paragraph (2) by striking ‘‘$200,000’’
and inserting ‘‘$300,000’’;
(2) in paragraph (3)—
(A) in subparagraph (G), by striking ‘‘de-
signing a suitable replacement housing plan’’
and inserting ‘‘designing suitable relocation and
replacement housing plans’’;
(B) by redesignating subparagraphs (E)
through (I) as subparagraphs (F) through (J),
respectively; and
(C) by inserting after subparagraph (D)
the following new subparagraph:
‘‘(E) planning for community service ac-
tivities to be carried out by residents, other
members of the community, and other persons
willing to contribute to the social, economic, or
physical improvement of the community;’’;
(3) in paragraph (4)—
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(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) to the extent the applicant is request-
ing amounts for community service activities, a
description of the planning activities for com-
munity service to be carried out by residents,
other members of the community, and other
persons willing to contribute to the social, eco-
nomic, or physical improvement of the commu-
nity;’’; and
(5) in paragraph (5)—
(A) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
taking into consideration the condition of the
public housing of the public housing agency as
a whole’’;
(B) by striking subparagraph (E);
(C) by redesignating subparagraphs (F)
and (G) as subparagraphs (E) and (F), respec-
tively; and
(D) by adding at the end the following new
flush material:
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‘‘In making grants under this subsection, the Sec-
retary may select a lower-rated application that
meets the requirements pursuant to this section in-
stead of a higher-rated application to increase the
national geographic diversity among applications ap-
proved under this section.’’.
(b) IMPLEMENTATION GRANTS.—Subsection (d) of
section 24 of the United States Housing Act of 1937 is
amended—
(1) in paragraph (2)—
(A) in subparagraph (I), by striking ‘‘ex-
cept that’’ and all that follows and inserting the
following: ‘‘except that—
‘‘(i) not more than 20 percent of any
grant under this subsection may be used
for such purpose; and
‘‘(ii) an amount equal to 15 percent of
the amount of any grant under this sub-
section used for such purposes shall be
contributed from non-Federal sources, and
may be in the form of cash, administrative
costs, and the reasonable value of in-kind
contributions, and may include funding
under title I of the Housing and Commu-
nity Development Act of 1974.’’;
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(B) by redesignating subparagraphs (E)
through (I) (as so amended) as subparagraphs
(G) through (K), respectively; and
(C) by inserting after subparagraph (D)
the following new subparagraphs:
‘‘(E) community service activities to be
carried out by residents, other members of the
community, and other persons willing to con-
tribute to the social, economic, or physical im-
provement of the community;
‘‘(F) replacement of public housing units;’’;
(2) in paragraph (3)—
(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) to the extent the applicant is request-
ing amounts for community service activities, a
description of the community service activities
to be carried out by residents, other members
of the community, and other persons willing to
contribute to the social, economic, or physical
improvement of the community;’’; and
(3) in paragraph (4)—
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(A) by striking subparagraph (D) and in-
serting the following new subparagraph:
‘‘(D) the quality of the proposed revitaliza-
tion program and the suitability of the project
for such a program;’’;
(B) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
taking into consideration the condition of the
public housing of the applicant as a whole’’;
and
(C) by striking subparagraph (E);
(D) by redesignating subparagraphs (F)
and (G) as subparagraphs (E) and (F), respec-
tively; and
(E) by adding at the end the following new
flush material:
‘‘In making grants under this subsection, the Sec-
retary may select a lower-rated application that
meets the requirements pursuant to this section in-
stead of a higher-rated application to increase the
national geographic diversity among applications ap-
proved under this section.’’.
(c) EXCEPTIONS TO GENERAL PROGRAM REQUIRE-
MENTS.—Section 24(e) of the United States Housing Act
of 1937 is amended—
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(1) by striking the first sentence of paragraph
(2) and inserting the following new sentence: ‘‘For
projects revitalized under this section, a public hous-
ing agency may—
‘‘(A) in lieu of selecting tenants pursuant
to the preferences specified under section
6(c)(4)(A)(i), select tenants pursuant to a local
system of preferences;
‘‘(B) in making dwelling units in such
projects available for occupancy, disregard the
order in which applications were made for resi-
dency in public housing dwelling units or any
waiting lists established for such residency to
provide for substantial variation in the incomes
of families residing in the project, subject to the
provisions of this Act relating to income eligi-
bility in public housing projects (as modified
under subparagraph (C));
‘‘(C) notwithstanding section 16 of this
Act, provide for low-income families to occupy
not more than 50 percent of the dwelling units
in a project, and
‘‘(D) establish ceiling rents under section
3(a)(2).’’; and
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(2) by adding at the end the following new
paragraph:
‘‘(3) DEMOLITION AND REPLACEMENT.—
‘‘(A) IN GENERAL.—Notwithstanding any
other applicable law or regulation, a revitaliza-
tion plan under this section may include demoli-
tion of public housing units and replacement of
such units on site or in the same neighborhood
if the number of replacement units provided in
the same neighborhood is fewer than the num-
ber of units demolished as a result of the revi-
talization effort.
‘‘(B) TENANT-BASED
ASSISTANCE.—Not-
withstanding the limitation in subparagraph (C)
of section 18(b)(3), a public housing agency
may replace not more than one-third of the
units demolished or disposed of through a revi-
talization project under this section with ten-
ant-based assistance under section 8, but only
if the public housing agency demonstrates to
the satisfaction of the Secretary that the local
housing market in which the assistance is to be
used has had a vacancy rate, among units
whose rent does not exceed the fair market
rental for the area established under section
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8(e), of more than 3 percent for at least 6 con-
secutive months.
‘‘(C) ALTERNATIVE
METHODS
OF
RE-
PLACEMENT.—A revitalization plan under this
section may provide for replacement of public
housing units in the manners under subpara-
graph (D) of this paragraph (and not subject to
the requirements of subparagraph (B) of sec-
tion 18(b)(3)) if the agency or corporation en-
ters into such agreements as the Secretary con-
siders necessary to ensure that the replacement
units will remain affordable to families eligible
for residency in public housing for the remain-
ing useful life of the units, as determined by the
Secretary.
‘‘(D) CERTIFICATE AND NEW UNIT MIX.—
Each such dwelling unit demolished, disposed
of, or otherwise eliminated pursuant to this
paragraph shall be replaced with an additional
dwelling unit through any combination of—
‘‘(i) additional public housing dwelling
units;
‘‘(ii) units or housing described in
clause (iv), (v), (vii), (viii), or (ix) of sec-
tion 18(b)(3)(A);
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‘‘(iii) rental units that are (I) assisted
under title II of the Cranston-Gonzalez
National Affordable Housing Act (notwith-
standing section 212(d)(2) of such Act), or
(II) assisted under a State or local rental
assistance program that provides for rental
assistance over a term of not less than 5
years that is comparable in terms of eligi-
bility and contribution to rent to assistance
under section 8; but this clause shall apply
to a revitalization program only if the
agency demonstrates to the satisfaction of
the Secretary that the local housing mar-
ket in which the assistance is to be used
has had a vacancy rate, among units whose
rent does not exceed the fair market rental
for the area established under section 8(e),
of more than 3 percent for at least 6 con-
secutive months; or
‘‘(iv) other manners approved by the
Secretary.’’.
(d) DEFINITIONS.—Subsection (h) of section 24 of
the United States Housing Act of 1937 is amended—
(1) by striking paragraph (5) and inserting the
following new paragraphs:
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‘‘(6) SEVERELY
DISTRESSED
PUBLIC
HOUS-
ING.—The term ‘severely distressed public housing’
means a public housing project or building in a
project that—
‘‘(A) requires major redesign, reconstruc-
tion, or redevelopment, or partial or total demo-
lition, to correct serious deficiencies in the
original design (including inappropriately high
population 
density), 
deferred 
maintenance,
physical deterioration or obsolescence of major
systems, and other deficiencies in the physical
plant of the project;
‘‘(B) is—
‘‘(i)(I) occupied predominantly by
families with children which have extremely
low incomes, high rates of unemployment,
and extensive dependency on various forms
of public assistance; and
‘‘(II) has high rates of vandalism and
criminal activity (including drug-related
criminal activity) in comparison to other
housing in the area; or
‘‘(ii) has a vacancy rate, as deter-
mined by the Secretary, of 50 percent or
more;
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‘‘(C) can not be revitalized through assist-
ance under other programs, such as the pro-
grams under sections 9 and 14, or through
other administrative means because of the inad-
equacy of available amounts; and
‘‘(D) in the case of an individual building,
the building is (in the determination of the Sec-
retary) sufficiently separable from the remain-
der of the project of which the building is part
to make use of the building feasible for pur-
poses of this section.
‘‘(7) SUPPORT SERVICES.—The term ‘support
services’ includes all activities which will promote
upward mobility, self-sufficiency, and improved qual-
ity of life for the residents of the public housing
project involved, and shall include literacy training,
job training, day care, and economic development ac-
tivities. Support services may be provided to resi-
dents of the neighborhood in which the public hous-
ing project involved is located.’’;
(2) by redesignating paragraphs (2) through
(4) as paragraphs (3) through (5), respectively; and
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
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‘‘(2) COMMUNITY SERVICE.—The term ‘commu-
nity service’ means services provided on a volunteer
or limited stipend basis for the social, economic, or
physical improvement of the community to be
served, including opportunity for the upward mobil-
ity of participants providing the community service,
through completion of education requirements, job
training, or alternative methods of developing skills
and job readiness.’’.
(e) REPORTS.—Section 24(i) of the United States
Housing Act of 1937 is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
(f) REPEAL.—Section 24 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437v) is amended by striking
subsection (b).
(g) APPLICABILITY.—Section 24 of the United States
Housing Act of 1937 is amended by adding at the end
the following new subsection:
‘‘(j) APPLICABILITY.—Notwithstanding any provision
of this Act, with respect to a public housing project that
(1) has been selected for funding under this section 24
or through the urban revitalization demonstration pro-
gram under the Departments of Veterans Affairs and
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Housing and Urban Development, and Independent Agen-
cies Appropriations Act, 1993 (Public Law 102–389, 106
Stat. 1579; 42 U.S.C. 1437l note) or the Departments of
Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1994
(Public Law 103–124, 107 Stat. 1285; 42 U.S.C. 1437l
note), and (2) has an approved comprehensive plan under
section 14 of this Act, the Secretary may apply any provi-
sion of this section and the regulations hereunder to all
activities undertaken at such projects only during revital-
ization (including activities relating to demolition, mod-
ernization, reconstruction, site improvement, and replace-
ment housing).’’.
(h) CONFORMING AMENDMENT.—The first sentence
of section 25(m)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437w(m)(1)) is amended to read as fol-
lows: ‘‘The term ‘eligible housing’ means a public housing
project, or one or more buildings within a project, that
is owned or operated by a troubled public housing agency
that has been troubled for not less than 3 years and that,
as determined by the Secretary, has failed to make sub-
stantial progress toward effective management.’’.
(i) APPLICABILITY
TO
CERTAIN
PROJECT.—The
amendments made by this section shall apply with respect
to assistance provided before the date of the enactment
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of this Act under section 24 of the United States Housing
Act of 1937 for the Desire Housing Development, located
in New Orleans, Louisiana, but only to the extent that
the Housing Authority of New Orleans submits to the Sec-
retary of Housing and Urban Development a description
of the revitalization program for such project describing
the use of such assistance under the provisions of such
section 24, as amended, which is approved by the Sec-
retary.
SEC. 129. PROGRAM MONITORING AND TECHNICAL ASSIST-
ANCE.
(a) DEFINITION.—Section 3 of the United States
Housing Act of 1937 (42 U.S.C. 1437a), as amended by
adding at the end the following new subsection:
‘‘(e) TECHNICAL ASSISTANCE AND SERVICES.—As
used in sections 5(c)(9) and 14(k)(1)(B), the term ‘tech-
nical assistance and services’ shall include any or all un-
dertakings by the Secretary, directly using officials and
employees of the Secretary, or indirectly under contract
or otherwise, related to the inspection or oversight of
project or program development or implementation, train-
ing and technical assistance, public housing agency or In-
dian housing authority program, project, or general man-
agement, crisis management and operations, survey re-
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search, and the preparation of reports or recommenda-
tions to the Secretary.’’.
(b) AVAILABILITY OF DEVELOPMENT AMOUNTS.—
Section 5(c) of the United States Housing Act of 1937
(42 U.S.C. 1437c(c)) is amended by adding at the end
the following new paragraph:
‘‘(9) Of any amounts appropriated pursuant to this
Act in fiscal year 1995 for public housing development (in-
cluding Indian housing development), the Secretary may
use not more than 0.5 percent for technical assistance and
services.’’.
(c) AVAILABILITY OF MODERNIZATION AMOUNTS.—
Section 14(k)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437l(k)(1)), as amended by the preced-
ing provisions of this Act, is amended—
(1) by inserting ‘‘(A)’’ before the first sentence;
and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) Of any amounts approved in appropriation Acts
for grants under this section in fiscal year 1995, the Sec-
retary may use not more than 1 percent for technical as-
sistance and services.’’.
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SEC. 130. APPLICABILITY OF PUBLIC HOUSING AMEND-
MENTS TO INDIAN HOUSING.
(a) AMENDMENT.—Section 201(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is
amended to read as follows:
‘‘(b) APPLICABILITY OF TITLE I.—Except as other-
wise provided by law, the provisions of title I shall apply
to low-income housing developed or operated pursuant to
a contract between the Secretary and an Indian housing
authority.’’.
(b) APPLICABILITY OF AMENDMENT.—The amend-
ment made by subsection (a) shall not affect provisions
of the United States Housing Act of 1937 that were made
applicable to public housing developed or operated pursu-
ant to a contract between the Secretary and an Indian
housing authority in accordance with section 201(b)(2) of
such Act, as such section existed before the effective date
of this section.
(c) APPLICABILITY OF HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1992.—The provisions of, and the
amendments made by, sections 103(a)(1), 112, 114, 116,
118, 903, and 927 of the Housing and Community Devel-
opment Act of 1992 and sections 301, 302, 303, and 304
of the Multifamily Housing Property Disposition Reform
Act of 1994 shall apply to public housing developed or op-
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erated pursuant to a contract between the Secretary and
an Indian housing authority.
SEC. 131. EARLY CHILDHOOD DEVELOPMENT PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
222(g) of the Housing and Urban-Rural Recovery Act of
1983 (12 U.S.C. 1701z–6 note) is amended by striking
the first two sentences and inserting the following new
sentence: ‘‘There are authorized to be appropriated to
carry out this section $35,000,000 for fiscal year 1995
and $35,000,000 for fiscal year 1996.’’.
(b) 
ELIGIBILITY
FOR
ASSISTANCE.—Section
222(b)(1) of the Housing and Urban-Rural Recovery Act
of 1983 is amended by inserting before the semicolon at
the end the following: ‘‘, except that the Secretary may
make a grant to provide additional assistance for an exist-
ing child care center assisted under this section or to ex-
pand an existing child care center regardless of whether
such center was previously assisted under this section’’.
(c) ASSISTANCE FOR HOMELESS FAMILIES.—Section
222(a)(1) of the Housing and Urban-Rural Recovery Act
of 1983 amended by inserting before the period at the end
the following: ‘‘(including, for purposes of this section,
homeless families with children, as defined by the Sec-
retary)’’.
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(d) CLERICAL AMENDMENT.—The heading for sec-
tion 222 of the Housing and Urban-Rural Recovery Act
of 1983 is amended to read as follows: ‘‘EARLY CHILD-
HOOD DEVELOPMENT PROGRAMS’’.
SEC. 132. INDIAN HOUSING CHILDHOOD DEVELOPMENT
SERVICES.
FUNDING.—Section 518(a) of the Cranston-Gonzalez
National Affordable Housing Act (12 U.S.C. 1701z–6
note) is amended by striking the first and second sen-
tences and inserting the following new sentence: ‘‘There
are authorized to be appropriated to carry out the dem-
onstration program under this section $6,000,000 for fis-
cal year 1995 and $6,000,000 for fiscal year 1996.’’.
SEC. 133. PUBLIC HOUSING ONE-STOP PERINATAL SERV-
ICES DEMONSTRATION.
Section 521(g) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437t note) is amend-
ed to read as follows:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for carrying out the
demonstration program under this section such sums as
may be necessary for each of fiscal years 1995 and
1996.’’.
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SEC. 134. SALE OF CERTAIN SCATTERED-SITE PUBLIC
HOUSING.
Section 131 of the Housing and Community Develop-
ment Act of 1992 (Public Law 102–550; 106 Stat. 3712)
is amended by adding at the end the following new sen-
tence: ‘‘During the term of the annual contributions con-
tract relating to the scattered-site public housing origi-
nally sold under this section, any proceeds from the dis-
position of replacement scattered-site dwellings purchased
with (1) the proceeds from such original disposition, or
(2) the proceeds from the disposition of any replacement
scattered-site dwellings, shall be used to purchase addi-
tional replacement scattered-site dwellings, which shall be
considered public housing for the purposes of such Act and
for which the Secretary shall provide annual contributions
for operation, using amounts made available under section
9(c) of such Act.’’.
SEC. 135. ELIGIBILITY OF CERTAIN PUBLIC HOUSING FOR
DEMOLITION.
Section 415 of the Department of Housing and
Urban Development—Independent Agencies Appropria-
tions Act, 1988 (Public Law 100–202; 101 Stat. 1329–
213), is amended by striking ‘‘George Loving Place, at
3320 Rupert Street, Edgar Ward Place, at 3901
Holystone, Elmer Scott Place, at 2600 Morris, in Dallas,
Texas, or’’.
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SEC. 136. DEMONSTRATION PROGRAM FOR INNOVATIVE
PUBLIC HOUSING AGENCIES AND RESIDENT
MANAGEMENT CORPORATIONS.
(a) AUTHORITY.—The Secretary may authorize pub-
lic housing agencies and resident management corpora-
tions to carry out demonstrations for public housing
that—
(1) test the extent to which aspects of the public
housing program may be exempt from certain statu-
tory requirements while continuing to serve eligible
families, and
(2) permit agencies and resident management
corporations to establish policies for the operation,
maintenance, management, and development (includ-
ing modernization) of one or more projects, without
regard to the requirements applicable to public hous-
ing in the United States Housing Act of 1937.
In establishing such policies, public housing agencies and
resident management corporations shall be subject to any
applicable State or local law.
(b) WAIVER OF PROVISIONS OF 1937 ACT.—For any
demonstration authorized under this section, the Secretary
may waive the applicability of any requirements of the
United States Housing Act of 1937 that the Secretary de-
termines are not consistent with the purposes of a dem-
onstration, except requirements—
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(1) limiting occupancy of public housing to low-
income families, as defined in section 3 of the Unit-
ed States Housing Act of 1937;
(2) under section 18 of such Act requiring re-
placement of units in the case of demolition or dis-
position (except that the limitation on the use of
tenant-based assistance to applications proposing
demolition or disposition of 200 or more units may
be waived); and
(3) relating to labor standards.
(c) REPLACEMENT HOUSING.—
(1) AUTHORITY.—In authorizing a demonstra-
tion under this section, the Secretary may authorize
a public housing agency to demolish or dispose of
public housing units and replace such units on site
or in the same neighborhood if the number of re-
placement units provided in the same neighborhood
is fewer than the number of units demolished under
the demonstration.
(2) 
TENANT-BASED
ASSISTANCE.—Notwith-
standing the limitations in subparagraphs (A)(v)
and (C) of section 18(b)(3), a public housing agency
may replace not more than one-third of the units de-
molished or disposed of under a demonstration
under this section with tenant-based assistance
100
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under section 8, but only if the public housing agen-
cy demonstrates to the satisfaction of the Secretary
that the local housing market in which the assist-
ance is to be used has had a vacancy rate, among
units whose rent does not exceed the fair market
rental for the area established under section 8(e), of
more than 3 percent for at least 6 consecutive
months.
(3) ALTERNATIVE
METHODS
OF
REPLACE-
MENT.—In authorizing a demonstration under this
section, the Secretary may authorize a public hous-
ing agency to provide for replacement of public
housing units in the manners under paragraph (4)
of this subsection rather than in the manners speci-
fied under the various clauses of section 18(b)(3)(A)
(and not subject to the requirements of subpara-
graph (B) of section 18(b)(3)) if the agency enters
into such agreements as the Secretary considers nec-
essary to ensure that the replacement units will re-
main affordable to families eligible for residency in
public housing for the remaining useful life of the
units, as determined by the Secretary.
(4) CERTIFICATE AND NEW UNIT MIX.—Each
such dwelling unit demolished, disposed of, or other-
wise eliminated pursuant to this subsection shall be
101
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replaced with an additional dwelling unit through
any combination of—
(A) additional public housing dwelling
units;
(B) units acquired or otherwise provided
for homeownership (including cooperative and
condominium interests) by public housing resi-
dents under section 5(h), subtitle B or C of title
IV of the Cranston-Gonzalez National Afford-
able Housing Act, or other programs for home-
ownership that have program requirements sub-
stantially equivalent to the requirements estab-
lished under section 605 of the Housing and
Community Development Act of 1987;
(C) affordable housing homeownership
units assisted under title II of the Cranston-
Gonzalez National Affordable Housing Act and
sold to public housing residents;
(D) rental units that are (i) assisted under
title II of the Cranston-Gonzalez National Af-
fordable Housing Act (notwithstanding section
212(d)(2) of such Act), or (ii) assisted under a
State or local rental assistance program that
provides for rental assistance over a term of not
less than 5 years that is comparable in terms
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of eligibility and contribution to rent to assist-
ance under section 8; but this subparagraph
shall apply to a public housing agency only if
the agency demonstrates to the satisfaction of
the Secretary that the local housing market in
which the assistance is to be used has had a va-
cancy rate, among units whose rent does not ex-
ceed the fair market rental for area established
under section 8(e), of more than 3 percent for
at least 6 consecutive months;
(E) housing assisted by a tax credit under
section 42 of the Internal Revenue Code;
(F) housing acquired from the Resolution
Trust Corporation or the Federal Deposit In-
surance Corporation;
(G) housing acquired under section 203 of
the Housing and Community Development
Amendments of 1978; or
(H) other manners approved by the Sec-
retary.
(d) WAIVER
OF
OTHER
STATUTORY
REQUIRE-
MENTS.—For any demonstration authorized under this
section, the Secretary may also waive the applicability of
any provision of law that applies to the projects under the
demonstration and that the Secretary determines is not
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consistent with the purposes of a demonstration, except
that the Secretary may not waive any provision of the Uni-
form Relocation Assistance and Real Property Acquisition
Policies Act of 1970, any provision of the Internal Reve-
nue Code of 1986, or any other provision of law relating
to equal opportunity, nondiscrimination, or the environ-
ment.
(e) SELECTION OF DEMONSTRATIONS.—
(1) SCOPE.—The Secretary may select not
more than 25 public housing agencies or resident
management corporations (or a combination of both)
to carry out not more than 25 demonstrations under
this section. Not more than 5 of the agencies se-
lected may be agencies designated pursuant to sec-
tion 6(j) of the United States Housing Act of 1937
as troubled or troubled with respect to the public
housing modernization program under section 14 of
such Act.
(2) CRITERIA.—The Secretary shall select agen-
cies and corporations based on selection criteria es-
tablished by the Secretary, which shall include the
following factors:
(A) The need for a range of project sizes.
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(B) The need for a range of types of public
housing agencies and resident management cor-
porations.
(C) The potential effects and benefits that
the variations proposed by the agency or cor-
poration could have on the public housing pro-
gram if the variations were adopted for the
whole program.
(f) REQUIREMENTS.—The Secretary may authorize a
demonstration program under this section only if the Sec-
retary determines that the demonstration—
(1) would not, over the term of the demonstra-
tion, result in the Federal Government incurring
greater costs than the government would otherwise
incur if the demonstration were not authorized;
(2) is consistent with the overall purposes of
the public housing program;
(3) is evaluated by an independent party; and
(4) is consistent with the Fair Housing Act,
title VI of the Civil Rights Act of 1964, section 504
of the Rehabilitation Act of 1973, the Age Discrimi-
nation Act of 1975, and the National Environmental
Policy Act of 1969.
(g) AUTHORITY TO ESTABLISH ADDITIONAL RE-
QUIREMENTS.—In authorizing a demonstration under this
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section, the Secretary may impose such requirements as
the Secretary considers to be appropriate to further the
purposes of the demonstration.
(h) REPORTS.—
(1) REPORT
ON
DEMONSTRATION.—For each
demonstration site, the public housing agency or
resident management corporation carrying out the
demonstration shall submit an annual progress re-
port to the Secretary. For each demonstration car-
ried out under this section, the Secretary shall sub-
mit a report to Congress not later than 1 year after
completion of the demonstration, describing the re-
sults of the demonstration and making any rec-
ommendations for legislation.
(2) REPORT
ON
WAIVER
FOR
NEW
YORK
CITY.—The Secretary shall conduct a study of the
advisability, practicality, and effects of exempting
the New York City Housing Authority from any pro-
visions of law or regulation establishing require-
ments for the site on which, and neighborhood in
which, public housing is developed. The Secretary
shall submit a report to the Congress not later than
6 months after the date of the enactment of this Act
describing the results of the study and making a rec-
ommendation with respect to such exemption.
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(i) TERM OF DEMONSTRATIONS.—The authority to
carry out a demonstration program under this section
shall be effective only for the period specified by the Sec-
retary in authorizing the demonstration program, which
may not exceed 5 years.
(j) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) The terms ‘‘public housing agency’’ and
‘‘agency’’ mean a public housing agency, as such
term is defined in section 3(b) of the United States
Housing Act of 1937.
(2) The terms ‘‘resident management corpora-
tion’’ and ‘‘corporation’’ mean a resident manage-
ment corporation established in accordance with re-
quirements of the Secretary under section 20 of the
United States Housing Act of 1937.
(3) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
(k) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $1,000,000 for the evalua-
tion of demonstrations under this section.
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SEC. 137. DEMONSTRATION PROGRAM FOR OCCUPANCY OF
OTHERWISE VACANT PUBLIC HOUSING UNITS
BY MODERATE-INCOME FAMILIES.
(a) AUTHORITY.—The Secretary of Housing and
Urban Development may carry out a demonstration pro-
gram under which public housing agencies may lease units
in public housing projects assisted under the United
States Housing Act of 1937 to moderate-income families,
as such term is defined by the Secretary.
(b) REQUIREMENTS FOR PARTICIPATION.—The Sec-
retary may approve a request by a public housing agency
to participate in the demonstration program only if the
Secretary determines that—
(1) the units proposed for leasing to moderate-
income families would otherwise remain vacant;
(2) the agency has demonstrated that it has ac-
tively marketed the units to eligible families and that
eligible families are not available to fill the units cov-
ered by the application and are not expected to be
available for at least 12 months; and
(3) the agency has agreed not to provide ten-
ant-based assistance under the United States Hous-
ing Act of 1937 for unit sizes available for occu-
pancy under the demonstration.
(c) DURATION.—The Secretary may authorize a pub-
lic housing agency to participate in the demonstration for
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up to a 2-year term and may extend the term for addi-
tional periods of up to 2 years, if the agency submits an-
other application that meets the requirements of this
section.
SEC. 138. STUDY OF ADEQUACY OF PAYMENT IN LIEU OF
TAXES.
The Comptroller General of the United States shall
conduct a study of the payments made during recent years
by public housing agencies to State and local governments
in lieu of taxes, pursuant to section 6(d) of the United
States Housing Act of 1937, to determine whether such
payments adequately compensate for the amount of taxes
foregone by such governments pursuant to such section.
The Comptroller General shall submit a report to the Con-
gress describing the results of the study not later than
the expiration of the 1-year period beginning on the date
of the enactment of this Act.
Subtitle C—Section 8 Assistance
SEC. 141. COMMUNITY INVESTMENT DEMONSTRATION PRO-
GRAM.
Section 6(j) of the HUD Demonstration Act of 1993
(42 U.S.C. 1437f note) is amended to read as follows:
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—Of any
amounts appropriated for incremental assistance under
section 8 of the United States Housing Act of 1937, the
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Secretary may use not more than $150,000,000 in fiscal
year 1995 and $200,000,000 in fiscal year 1996 to carry
out this section.’’.
SEC. 142. MERGER OF SECTION 8 RENTAL ASSISTANCE
PROGRAMS.
(a) IN GENERAL.—Section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) is amended to
read as follows:
‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME
FAMILIES
‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—
‘‘(1) IN GENERAL.—For the purposes of aiding
low-income families in obtaining a decent place to
live and promoting economically mixed housing, the
Secretary may provide assistance payments with re-
spect to existing housing in accordance with the pro-
visions of this section.
‘‘(2) ELDERLY HOUSING.—Notwithstanding any
other provision of this Act, assistance payments
under this section may be provided, in accordance
with regulations prescribed by the Secretary, with
respect to some or all of the units in any project ap-
proved pursuant to section 202 of the Housing Act
of 1959 (as in effect before October 1, 1991).
‘‘(b) ANNUAL
CONTRIBUTIONS
CONTRACTS
FOR
RENTAL ASSISTANCE.—
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‘‘(1) IN GENERAL.—The Secretary may enter
into annual contributions contracts under this sub-
section with public housing agencies to provide rent-
al housing assistance under this section for low-in-
come families. Such annual contributions contracts
shall bind the Secretary to make such authority, and
any amendments increasing such authority, available
to the public housing agency for a specified period.
‘‘(2) SECRETARY
ACTING
AS
PHA.—In areas
where no public housing agency has been organized
or where the Secretary determines that a public
housing agency is unable to implement the provi-
sions of this section, the Secretary may enter into
such contracts and perform the other functions as-
signed to a public housing agency by this section.
‘‘(3) TREATMENT
OF
ASSISTANCE
FOR
SUP-
PORTIVE HOUSING FOR THE DISABLED.—The Sec-
retary may not consider the receipt by a public hous-
ing agency of assistance under section 811(b)(1) of
the Cranston-Gonzalez National Affordable Housing
Act, or the amount received, in approving assistance
under this section for the agency or in determining
the amount of such assistance to be provided to the
agency.
‘‘(c) ASSISTANCE CONTRACTS.—
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‘‘(1) IN GENERAL.—Each public housing agen-
cy that receives amounts under an annual contribu-
tions contract may enter into assistance contracts to
make rental assistance payments to owners of exist-
ing dwelling units in accordance with the provisions
of this section.
‘‘(2) PHA ACTING AS OWNER.—A public hous-
ing agency may contract to make rental assistance
payments under this section to itself (or any agency
or instrumentality thereof) as the owner of dwelling
units, and the agency shall be subject to the same
program requirements as are applied to other own-
ers. In such cases, the Secretary may establish ini-
tial rents within applicable limits.
‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)
and 6 and any other provisions of this Act that are
inconsistent with the provisions of this section shall
not apply to assistance contracts entered into pursu-
ant to this section.
‘‘(d) MAXIMUM MONTHLY RENT.—
‘‘(1) IN
GENERAL.—Each assistance contract
entered into pursuant to this section shall establish
the maximum monthly rent (including utilities and
all maintenance and management charges) that the
owner is entitled to receive for each dwelling unit for
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which rental assistance payments are to be made
under the contract. Except as provided in paragraph
(2), the maximum monthly rent shall not exceed by
more than 10 percent the fair market rental under
subsection (e) for the market area in which the
dwelling unit is located. If units assisted under this
section are exempt from local rent control while they
are so assisted or otherwise, the maximum monthly
rent for such units shall be reasonable in comparison
with other units in the market area that are exempt
from local rent control.
‘‘(2) EXCEPTION.—The maximum monthly rent
may exceed the fair market rental—
‘‘(A) by more than 10 but not more than
20 percent, but only if the Secretary determines
that special circumstances warrant such higher
maximum rent or that such higher rent is nec-
essary to the implementation of a comprehen-
sive housing affordability strategy under section
105 of the Cranston-Gonzalez National Afford-
able Housing Act; or
‘‘(B) by such higher amount, only if re-
quested by the low-income family assisted and
approved by the public housing agency in ac-
cordance with subsection (f)(2).
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‘‘(3) ANNUAL ADJUSTMENTS.—Each assistance
contract shall provide for adjustment in the maxi-
mum monthly rents for units covered by the contract
not less than annually to reflect changes in the fair
market rentals established under subsection (e) for
the housing area for similar types and sizes of dwell-
ing units or, if the Secretary determines, on the
basis of a reasonable formula.
‘‘(4) ADJUSTMENTS DUE TO EXPENSES.—Each
assistance contract shall further provide for the Sec-
retary to make additional adjustments in the maxi-
mum monthly rent for units assisted under the con-
tract to the extent the Secretary determines such ad-
justments are necessary to reflect increases in the
actual and necessary expenses of owning and main-
taining the units that have resulted from substantial
general increases in real property taxes, utility rates,
or similar costs that are not adequately compensated
for by the adjustment in the maximum monthly rent
authorized by paragraph (3). The Secretary shall
make additional adjustments in the maximum
monthly rent for units under contract (subject to the
availability of appropriations for contract amend-
ments) to the extent the Secretary determines such
adjustments are necessary to reflect increases in the
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actual and necessary expenses of owning and main-
taining the units that have resulted from the expira-
tion of a real property tax exemption.
‘‘(5) ADJUSTMENTS DUE TO CRIMINAL ACTIV-
ITY.—If the Secretary determines that a project as-
sisted under this section is located in a community
where criminal activity is generally prevalent and the
operating, maintenance, and capital repair expenses
for the project have been substantially increased pri-
marily as a result of the prevalence of such activity,
the Secretary may (at the discretion of the Secretary
and subject to the availability of appropriations for
contract amendments for this purpose), on a project-
by-project basis, provide adjustments to the maxi-
mum monthly rents, to a level not exceeding 120
percent of the project rents, to cover the costs of
maintenance, security, capital repairs, and reserves
required for the owner to carry out a strategy ac-
ceptable to the Secretary for addressing the problem
of criminal activity. The Secretary may waive the
applicability of any rent comparability standard re-
quired under this subsection to implement this para-
graph.
‘‘(6) ADJUSTMENTS
DUE
TO
LEAD-BASED
PAINT
REDUCTION
FOR
HOUSING
RECEIVING
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PROJECT-BASED
ASSISTANCE.—The Secretary may
(at the discretion of the Secretary and subject to the
availability of appropriations for contract amend-
ments), on a project-by-project basis for projects re-
ceiving project-based assistance, provide adjustments
to the maximum monthly rents to cover the costs of
evaluating and reducing lead-based paint hazards, as
defined in section 1004 of the Residential Lead-
Based Paint Hazard Reduction Act of 1992.
‘‘(7) LIMITATIONS ON ADJUSTMENTS.—
‘‘(A) GENERAL
COMPARABILITY
RULE.—
Adjustments in the maximum rents under para-
graphs (3) through (6) shall not result in mate-
rial differences between the rents charged for
assisted units and unassisted units of similar
quality, type, and age in the same market area,
as determined by the Secretary.
‘‘(B) COMPARABILITY STUDIES.—
‘‘(i) To carry out subparagraph (A),
the Secretary shall issue regulations to
provide for conducting comparability stud-
ies for projects where the Secretary has
reason to believe that the application of the
formula adjustments under paragraph (3)
would result in such material differences.
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The Secretary shall conduct such studies
upon the request of any owner of any
project, or as the Secretary determines to
be appropriate by establishing, to the ex-
tent practicable, a modified annual adjust-
ment factor for such market area, as the
Secretary shall designate, that is geo-
graphically smaller than the applicable
housing area used for the establishment of
the annual adjustment factor under para-
graph (3). The Secretary shall establish
such modified annual adjustment factor on
the basis of the results of a study con-
ducted by the Secretary of the rents
charged, and any change in such rents
over the previous year, for assisted units
and unassisted units of similar quality,
type, and age in the smaller market area.
Where the Secretary determines that such
modified annual adjustment factor cannot
be established or that such factor when ap-
plied to a particular project would result in
material differences between the rents
charged for assisted units and unassisted
units of similar quality, type, and age in
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the same market area, the Secretary may
apply an alternative methodology for con-
ducting comparability studies in order to
establish rents that are not materially dif-
ferent from rents charged for comparable
unassisted units.
‘‘(ii) If the Secretary or appropriate
State agency does not complete and submit
to the project owner a comparability study
not later than 60 days before the anniver-
sary date of the assistance contract under
this section, the automatic annual adjust-
ment factor shall be applied. The Secretary
may not reduce the contract rents in effect
on or after April 15, 1987, for newly con-
structed, substantially rehabilitated, or
moderately rehabilitated projects assisted
under this section (including projects as-
sisted under this section as in effect prior
to November 30, 1983), unless the project
has been refinanced in a manner that re-
duces the periodic payments of the owner.
Any maximum monthly rent that has been
reduced by the Secretary after April 14,
1987, and prior to November 7, 1988,
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shall be restored to the maximum monthly
rent in effect on April 15, 1987.
‘‘(iii) For any project which has had
its maximum monthly rents reduced after
April 14, 1987, the Secretary shall make
assistance payments (from amounts re-
served for the original contract) to the
owner of such project in an amount equal
to the difference between the maximum
monthly rents in effect on April 15, 1987,
and the reduced maximum monthly rents,
multiplied by the number of months that
the reduced maximum monthly rents were
in effect.
‘‘(e) FAIR MARKET RENTALS.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish fair market rentals under this subsection peri-
odically, but not less than annually, for existing
rental dwelling units suitable for occupancy by low-
income families assisted under this section. The Sec-
retary shall establish the fair market rental by hous-
ing market area for various sizes and types of dwell-
ing units. For a market area, the fair market rental
for any size and type of dwelling unit shall be a dol-
lar amount not less than the amount that results in
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the rents charged for 45 percent of the standard
quality rental units of such size and type in the mar-
ket area being less than such dollar amount. For
purposes of determining the dollar amount under the
preceding sentence, the Secretary shall consider only
rental units occupied by recent movers and shall not
consider public housing units, units for which mar-
ket rents cannot be determined, and newly con-
structed units.
‘‘(2) EFFECTIVENESS AND ADJUSTMENT.—The
Secretary shall publish proposed fair market rentals
for each area in the Federal Register with reason-
able time for public comment, and such fair market
rentals shall become effective upon the date of publi-
cation in final form in the Federal Register. Each
fair market rental in effect under this subsection
shall be adjusted to be effective on October 1 of each
year to reflect changes, based on the most recent
available data trended so the rentals will be current
for the year to which they apply, of rents for exist-
ing rental dwelling units, as the case may be, of var-
ious sizes and types in the market area suitable for
occupancy by families assisted under this section.
‘‘(3) CERTAIN AREAS.—The Secretary shall es-
tablish separate fair market rentals under this sub-
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section for Westchester County in the State of New
York. The Secretary shall also establish separate fair
market rentals under this paragraph for Monroe
County in the Commonwealth of Pennsylvania. In
establishing fair market rentals for the remaining
portion of the market areas in which Monroe County
is located, the Secretary shall establish the fair mar-
ket rentals as if such portion included Monroe
County.
‘‘(4) REQUIRED REVIEW.—If at any time, for
any public housing agency, more than 50 percent of
the families on behalf of whom assistance is provided
under this section by the agency are paying as rent
more than the amount specified under section 3(a)
(as authorized in subsection (f)(2)), the agency shall
review the fair market rentals established under this
subsection for the market areas in the jurisdiction of
the public housing agency.
‘‘(f) AMOUNT OF MONTHLY ASSISTANCE PAYMENT
AND DUE PROCESS RIGHTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amount of the monthly assistance
payment under this section with respect to any
dwelling unit shall be the difference between the
maximum monthly rent that the contract provides
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that the owner is to receive for the unit and the rent
the family is required to pay under section 3(a).
‘‘(2) INCREASED FAMILY PAYMENT.—A family
on behalf of whom tenant-based assistance payments
are made under this section may pay as rent for a
dwelling unit assisted under this section more than
the amount specified under section 3(a), but only
if—
‘‘(A) the family notifies the public housing
agency of its interest in a unit renting for an
amount that exceeds the permissible maximum
monthly rent established for the market area
under subsection (d);
‘‘(B) such agency determines that the rent
for the unit and the rental payments of the
family are reasonable, after taking into account
other family expenses (including child care, un-
reimbursed medical expenses, transportation,
and other appropriate family expenses;
‘‘(C) such amount does not exceed 40 per-
cent of the family’s monthly adjusted income;
and
‘‘(D) the public housing agency has first
exercised any authority under paragraphs (1)
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and (2)(A) of subsection (d) to increase the
maximum monthly rent for the dwelling unit.
The amount of the monthly assistance payment
under this section with respect to a dwelling unit for
a family paying rent as provided in this paragraph
shall be the difference between an amount based on
the fair market rent and the rent the family is re-
quired to pay under section 3(a).
‘‘(3) INCREASES IN ASSISTANCE PAYMENTS.—
The Secretary shall take any action necessary, in-
cluding making contracts for assistance payments in
amounts exceeding the amounts required upon the
initial renting of dwelling units, reserving annual
contributions authority for the purpose of amending
assistance contracts, or allocating a portion of new
authorizations for the purpose of amending assist-
ance contracts, to ensure that assistance payments
are increased on a timely basis to cover increases in
maximum monthly rents or decreases in family in-
comes.
‘‘(4) REVIEWS OF FAMILY INCOMES.—
‘‘(A) IN GENERAL.—Reviews of family in-
comes for purposes of this section shall be made
annually and shall be subject to the provisions
of section 904(e) of the Stewart B. McKinney
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Homeless Assistance Amendments Act of 1988.
For families for whom an increased rental pay-
ment has been approved under paragraph (2),
such review shall include determining whether
the rent for the unit and the rental payments
of the family continue to be reasonable, in ac-
cordance with subparagraphs (B) and (C) of
paragraph (2).
‘‘(B) PROCEDURES.—The Secretary shall
establish procedures that are appropriate and
necessary to ensure that income data provided
to public housing agencies and owners by fami-
lies applying for or receiving assistance under
this section is complete and accurate.
‘‘(C) CONFIDENTIALITY.—Any income in-
formation received pursuant to this paragraph
shall remain confidential and shall be used only
for the purpose of verifying incomes in order to
determine eligibility of families for benefits (and
the amount of such benefits, if any) under this
section.
‘‘(5) DUE PROCESS RIGHTS IN CASES OF AD-
VERSE ACTION.—In the case of any action proposed
to be taken by a public housing agency, any family
receiving assistance under this section adversely af-
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fected by such action shall have the right to at least
the basic elements of due process with regard to
such action, as follows:
‘‘(A) Written notice of the intended ad-
verse action and the reason for such action
shall be provided to the family not less than 30
days before the action is to be taken, or, in a
case where the health or safety of other families
is threatened, a reasonable period of time con-
sidering the seriousness of the situation (but
not to exceed 30 days).
‘‘(B) The family shall have the right to re-
quest a hearing within 30 days after receipt of
the notice.
‘‘(C) The family shall have the right to a
hearing before an impartial hearing officer.
‘‘(D) The family shall have the right to be
represented at the hearing by an attorney or
other advocate.
‘‘(E) The family shall have the right to ex-
amine the evidence supporting the action and
all evidence that the public housing agency in-
tends to use.
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‘‘(F) The family shall have the right to
present testimonial and documentary evidence
and to cross-examine adverse witnesses.
‘‘(G) The hearing officer shall issue a writ-
ten decision, which shall be based solely upon
the evidence introduced at the hearing and
which shall state the basis of the decision.
‘‘(g) ELIGIBILITY OF UNITS FOR ASSISTANCE.—
‘‘(1) OCCUPANCY
STATUS.—Each assistance
contract shall provide that assistance payments may
be made only with respect to the following dwelling
units:
‘‘(A) OCCUPIED UNITS.—A dwelling unit
under lease for occupancy by a family deter-
mined to be a low-income family at the time it
initially occupies the dwelling unit or by a fam-
ily that qualifies to receive assistance under this
section pursuant to section 223 or 226 of the
Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990.
‘‘(B) UNOCCUPIED UNITS.—An unoccupied
dwelling unit, but only if—
‘‘(i)(I) a family vacates the dwelling
unit before the expiration date of the lease
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for occupancy, or (II) a good faith effort is
being made to fill the unoccupied unit; and
‘‘(ii) the costs of such vacancy are not
charged to or paid by the family vacating
the dwelling unit.
Payments for units referred to in this subpara-
graph may be made only for a period not ex-
ceeding 60 days, except that such payments
may be made, in the case of a newly con-
structed or substantially rehabilitated project,
after the expiration of such 60-day period in an
amount equal to the debt service attributable to
such an unoccupied dwelling unit for a period
not to exceed one year, if a good faith effort is
being made to fill the unit and the unit provides
decent, safe, and sanitary housing. No such
payment may be made after the expiration of
such 60-day period if the Secretary determines
that the dwelling unit is in a project which pro-
vides the owner with revenues exceeding the
costs incurred by such owner with respect to
such project.
‘‘(2) OWNER’S
STATUS.—A public housing
agency shall not approve the rental of a dwelling
unit if—
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‘‘(A) the owner—
‘‘(i) is debarred, suspended, or subject
to limited denial of participation under
part 24 of title 24, Code of Federal Regu-
lations; or
‘‘(ii) has been convicted of drug traf-
ficking;
‘‘(B) the owner owns any other dwelling
unit in the same project, which is assisted
under this section and at such time, such unit
is not in compliance in any material respect
with standards for housing quality for units so
assisted, but the public housing agency shall
provide an owner of any such dwelling unit a
reasonable opportunity to correct the non-
compliance before denying approval; or
‘‘(C) the owner owns or has owned dwell-
ing units in the same project, which are as-
sisted under this section (or any other program
of the Federal Government for housing assist-
ance) and such units have repeatedly or regu-
larly failed to comply with the housing quality
standards applicable to such units.
‘‘(h) OTHER
PROVISIONS
OF
ASSISTANCE
CON-
TRACTS.—Contracts to make assistance payments entered
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into by any public housing agency (or by the Secretary)
with an owner of existing housing units shall meet the fol-
lowing requirements:
‘‘(1) CONTRACT TERM.—Each assistance con-
tract shall have a term of not less than one month
nor more than 180 months. The Secretary shall per-
mit public housing agencies to enter into assistance
contracts having terms of less than 12 months to the
extent necessary to avoid disruption in assistance to
eligible families if the annual contributions contract
for the agency under subsection (b) will expire with-
in 1 year.
‘‘(2) PREFERENCES.—Each assistance contract
shall provide that, in making assistance available
pursuant to the contract—
‘‘(A) for not less than 70 percent of the
families who initially receive project-based as-
sistance, and
‘‘(B) for not less than 90 percent of the
families who initially receive tenant-based as-
sistance in any 1-year period,
preference shall be given to families that (i) occupy
substandard housing (including families that are
homeless or living in a shelter for homeless families),
(ii) are paying more than 50 percent of family in-
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come for rent, or (iii) are involuntarily displaced (in-
cluding displacement because of disposition of a mul-
tifamily housing project under section 203 of the
Housing and Community Development Amendments
of 1978) at the time they are seeking assistance
under this section.
‘‘(3) SECONDARY PREFERENCES.—Each assist-
ance contract shall provide that, for any assistance
remaining in any 1-year period after assistance is
made available pursuant to paragraph (2), pref-
erence for such assistance shall be given to families
who qualify under a system of local preferences es-
tablished by the public housing agency in writing
and after public hearing to respond to local housing
needs and priorities, which may include—
‘‘(A) assisting very low-income families
who either reside in transitional housing as-
sisted under title IV of the Stewart B. McKin-
ney Homeless Assistance Act or participate in
a program designed to provide public assistance
recipients with greater access to employment
and educational opportunities;
‘‘(B) assisting families in accordance with
subsection (q)(1)(B);
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‘‘(C) assisting families identified by local
public agencies involved in providing for the
welfare of children as having a lack of adequate
housing that is a primary factor in the immi-
nent placement of a child in foster care, or in
preventing the discharge of a child from foster
care and reunification with his or her family;
‘‘(D) assisting youth, upon discharge from
foster care, in cases in which return to the fam-
ily or extended family or adoption is not avail-
able;
‘‘(E) assisting veterans who are eligible
and have applied for assistance, will use the as-
sistance for a dwelling unit designed for the
handicapped, and, upon discharge or eligibility
for discharge from a hospital or nursing home,
have physical disability which, because of the
configuration of their homes, prevents them
from access to or use of their homes; and
‘‘(F) achieving other objectives of national
housing policy as established by law.
A public housing agency may not establish a pref-
erence for assistance that provides preference based
on residency in the jurisdiction of the public housing
agency.
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‘‘(4) TENANT
SELECTION.—Each assistance
contract shall provide that the selection of tenants
for such dwelling units shall be the function of the
owner, subject to any provisions of the annual con-
tributions contract between the Secretary and the
agency. The owner shall use tenant selection criteria,
which shall provide as follows:
‘‘(A) PROHIBITION OF PERSONS ENGAGED
IN DRUG ACTIVITY.—The criteria shall prohibit
any individual or family evicted from housing
assisted under this Act by reason of drug-relat-
ed criminal activity from having a preference
under any provision of this paragraph for 3
years unless the evicted tenant successfully
completes a rehabilitation program approved by
the agency or owner. The agency or the owner
may waive the application of the preceding sen-
tence under standards established by the Sec-
retary, which shall provide for such waiver for
any member of a family of an individual prohib-
ited from tenancy under this subparagraph who
the agency or owner determines clearly did not
participate in and had no knowledge of such
criminal activity or when circumstances leading
to eviction no longer exist.
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‘‘(B) 
OTHER
REQUIREMENTS
FOR
PROJECT-BASED
ASSISTANCE.—With 
respect
only to project-based assistance, the criteria
shall—
‘‘(i) be consistent with the purpose of
improving housing opportunities for very
low-income families;
‘‘(ii) be reasonably related to program
eligibility and an applicant’s ability to per-
form the obligations of the assisted lease;
‘‘(iii) be established in writing; and
‘‘(iv) provide for the owner to prompt-
ly provide to any rejected applicant (I)
written notice of the grounds for the rejec-
tion, and (II) an opportunity to meet with
the decision maker to evaluate the validity
of the reasons for rejection and rectify any
erroneous decisions.
‘‘(5) LEASE PROVISIONS.—Each assistance con-
tract shall provide that the lease between the tenant
of any unit and the owner—
‘‘(A) shall be for at least one year or the
term of such assistance contract, whichever is
shorter;
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‘‘(B) shall contain other terms and condi-
tions specified by the Secretary, including provi-
sions meeting the requirements of paragraphs
(6), (7), and (8); and
‘‘(C) shall be in a standard form which is
used in the local housing market area by the
owner and which applies generally to tenants in
the property who are not assisted under this
section, together with any addendum necessary
to include in the lease the provisions required
under subparagraph (B).
‘‘(6) GENERAL GROUNDS FOR TERMINATION OF
TENANCY.—Each assistance contract shall provide
that the owner shall not terminate the tenancy of
the tenant of any unit except for serious or repeated
violation of the terms and conditions of the lease, for
violation of applicable Federal, State, or local law, or
for other good cause. The withholding of assistance
payments for a dwelling unit pursuant to paragraph
(10) shall not constitute good cause for termination
of the tenancy of the tenant of the unit.
‘‘(7) TERMINATION FOR ACTIVITY.—Each as-
sistance contract shall provide that any activity that
threatens the health, safety, or right to peaceful en-
joyment of the premises by other tenants, any activ-
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ity that threatens the health, safety, or right to
peaceful enjoyment of their residences by persons re-
siding in the immediate vicinity of the premises, or
any drug-related criminal activity on or near such
premises, engaged in by a tenant of any unit, any
member of the tenant’s household, or any guest or
other person under the tenant’s control, shall be
cause for termination of tenancy.
‘‘(8) NOTICE OF TERMINATION OF TENANCY.—
Each assistance contract shall provide that before
terminating the tenancy of any tenant, the owner
shall provide written notice to the tenant specifying
the legal and factual grounds for such action, which
shall be provided in accordance with any require-
ments under State or local law.
‘‘(9) MAINTENANCE
AND
REPLACEMENT.—
Each assistance contract shall provide that mainte-
nance and replacement (including redecoration) shall
be performed in accordance with the standard prac-
tice for the building concerned as established by the
owner and agreed to by the agency (or the Sec-
retary). With the approval of the Secretary, the pub-
lic housing agency administering a contract under
this section with respect to existing housing units
may exercise all management and maintenance re-
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sponsibilities with respect to the units pursuant to a
contract between such agency and the owner of such
units.
‘‘(10) ENFORCEMENT
OF
HOUSING
QUALITY
STANDARDS.—
‘‘(A) IN GENERAL.—Each assistance con-
tract shall provide for action under this para-
graph if a unit assisted under this section fails
to comply with the standards for housing qual-
ity for units so assisted.
‘‘(B) NOTIFICATION.—If the agency (or
the Secretary) determines that a unit assisted
under this section fails to comply in any mate-
rial respect with the standards for housing
quality for units so assisted, the agency (or the
Secretary) shall notify the tenant and owner of
the unit of the noncompliance and the possible
actions under this paragraph.
‘‘(C) CORRECTION OF NONCOMPLIANCE.—
The agency may approve the dwelling unit for
assistance under this section, on the condition
that the noncompliance is corrected, if (i) the
agency determines that the noncompliance is
minor and can be corrected within 15 days, (ii)
the agency provides notice of the conditional ap-
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proval to the owner, (ii) the owner provides a
written commitment to the agency to correct
the noncompliance within the time period re-
quired by the agency, not to exceed 15 days,
and (iii) the conditional approval will expedite
the occupancy of an eligible tenant with assist-
ance under this section. The agency shall rein-
spect any unit for which conditional approval is
made under this subparagraph within the pe-
riod referred to in clause (ii) of the preceding
sentence, and if the agency determines that the
noncompliance is not corrected, the agency may
take action under subparagraph (D).
‘‘(D) FAILURE TO CORRECT SERIOUS NON-
COMPLIANCE.—If any serious noncompliance
with such standards is not corrected within a
reasonable period of time after such notifica-
tion, the agency (or the Secretary) shall with-
hold some or all of the assistance amounts
under this section with respect to the unit and
promptly—
‘‘(i) use such amounts to make nec-
essary repairs or contract to have such re-
pairs made;
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‘‘(ii) release any withheld amounts to
the owner after repairs are made by the
owner, in an amount not exceeding the
cost of the repairs;
‘‘(iii) release any withheld amounts to
the applicable State or local housing agen-
cy after repairs are made by such agency,
in an amount not exceeding the cost of the
repairs; or
‘‘(iv) upon the request of the tenant,
release any withheld amounts to—
‘‘(I) the tenant to reimburse the
tenant for the reasonable cost of any
necessary repairs performed or paid
for by the tenant; or
‘‘(II) such person secured by the
tenant and approved by the agency
(or the Secretary) to make such nec-
essary repairs.
If an agency (or the Secretary) withholds any
assistance amounts pursuant to this subpara-
graph, the agency (or the Secretary) shall
promptly notify the tenant of the unit for which
assistance is withheld of the withholding and
may not terminate the assistance contract un-
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less and until the tenant has relocated to de-
cent, safe, and sanitary housing.
‘‘(11) STANDARDS AND OBLIGATIONS OF RESI-
DENCY IN HOUSING RECEIVING PROJECT-BASED AS-
SISTANCE.—Each assistance contract for project-
based assistance under subsection (i) shall provide
that the owner shall ensure and maintain compliance
with subtitle C of title VI of the Housing and Com-
munity Development Act of 1992 and any regula-
tions issued under such subtitle.
‘‘(12) SERVICE COORDINATORS.—In determin-
ing the amount of assistance provided under an as-
sistance contract for tenant-based assistance under
this paragraph, the Secretary may increase the
amount annually provided with respect to such
project to provide for the costs of employing or oth-
erwise retaining the services of one or more service
coordinators under section 671 of the Housing and
Community Development Act of 1992 to coordinate
the provision of any services within the project for
residents of the project who are elderly or disabled
families.
‘‘(13) OTHER.—Each assistance contract shall
provide that the agency and the owner shall carry
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out such other appropriate terms and conditions as
may be mutually agreed to by the agency and owner.
‘‘(i) PROJECT-BASED ASSISTANCE.—
‘‘(1) AUTHORITY.—Pursuant to an annual con-
tributions contract entered into under subsection
(b), a public housing agency may enter into a assist-
ance contract providing for assistance payments
under this section that are attached to a structure.
‘‘(2) REQUIREMENTS.—Any public housing
agency may approve project-based assistance under
this subsection with respect to any or all of the as-
sistance provided by the public housing agency if—
‘‘(A) the owner agrees to rehabilitate the
structure other than with assistance under this
Act and the owner otherwise complies with the
requirements of this section; and
‘‘(B) in the case of any newly constructed
structure, the owner or prospective owner
agrees to construct the structure other than
with assistance under this Act and otherwise
complies with the requirements of this section.
‘‘(3) LONG-TERM AFFORDABILITY.—
‘‘(A) IN GENERAL.—In the case of an as-
sistance contract for project-based assistance
under this subsection, a public housing agency
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shall enter into a contract with an owner, con-
tingent upon the future availability of appro-
priations for the purpose of renewing expiring
contracts for assistance payments as provided
in appropriations Acts, to extend the term of
the underlying assistance contract for such pe-
riod or periods as the Secretary determines to
be appropriate to achieve long-term afford-
ability of the housing. The contract shall obli-
gate the owner to have the extensions of the as-
sistance contract accepted by the owner and the
owner’s successors in interest.
‘‘(B) TERM OF ASSISTANCE FOR LOW-IN-
COME HOUSING PRESERVATION.—The contract
for assistance may, at the option of the public
housing agency, have an initial term not exceed-
ing 15 years for any assistance that is at-
tached—
‘‘(i) to projects assisted under a State
program that permits the owner of the
projects to prepay a State assisted or sub-
sidized mortgage on the structure; and
‘‘(ii) for the purpose of providing in-
centives to owners to preserve such
projects for occupancy by low- and mod-
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erate-income families (for the period that
assistance under this subparagraph is
available) and assisting low-income tenants
to afford any increases in rent that may be
required to induce the owner to maintain
occupancy in the project by low- and mod-
erate-income tenants.
Any assistance provided to low-income tenants
in the manner described in this subparagraph
shall not be considered for purposes of the limi-
tation under subsection (h)(2) regarding the
percentage of families that may receive assist-
ance under this section who do not qualify for
preferences under such subsection.
‘‘(4) SERVICE COORDINATORS.—In determining
the amount of assistance provided under an assist-
ance contract for project-based assistance under this
subsection or a contract for assistance for housing
constructed or substantially rehabilitated pursuant
to assistance provided under section 8(b)(2) of this
Act (as such section existed before October 1, 1983),
the Secretary may increase the amount annually
provided with respect to such project to provide for
the costs of employing or otherwise retaining the
services of one or more service coordinators under
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section 671 of the Housing and Community Devel-
opment Act of 1992 to coordinate the provision of
any services within the project for residents of the
project who are elderly or disabled families.
‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—
‘‘(1) TERMINATION OF TENANT-BASED ASSIST-
ANCE.—
‘‘(A) NOTICE BY OWNER.—Any owner ter-
minating any assistance contract under this sec-
tion for tenant-based assistance shall provide
written notice to the public housing agency and
the tenants involved of the proposed termi-
nation not less than 90 days before the termi-
nation of the contract. The notice shall specify
the date of the termination and the reasons for
the termination, with detail sufficient to enable
the agency to evaluate whether the termination
is lawful.
‘‘(B) REVIEW OF NOTICE BY PHA.—The
public housing agency shall review the notice
and issue a written finding of the legality of the
termination and the reasons for the termi-
nation. Within 30 days after issuance of the
findings, the owner shall provide written notice
to each tenant of the decision, together with the
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written findings of the agency regarding the
termination.
‘‘(2) TERMINATION OF PROJECT-BASED ASSIST-
ANCE CONTRACTS.—
‘‘(A) NOTICE BY OWNER.—Any owner ter-
minating any assistance contract under sub-
section (i) for project-based assistance shall
provide written notice to the Secretary and the
tenants involved of the proposed termination
not less than one year before the termination of
the contract. The notice shall specify the date
of the termination and the reasons for the ter-
mination, with detail sufficient to enable the
Secretary to evaluate whether the termination
is lawful and whether additional actions can be
taken by the Secretary to avoid the termination.
The notice shall include a statement that the
owner and the Secretary may agree to a re-
newal of the contract, thus avoiding the termi-
nation.
‘‘(B) 
REVIEW
OF
NOTICE
BY
SEC-
RETARY.—The Secretary shall review the no-
tice, shall consider whether additional actions
can be taken by the Secretary to avoid the ter-
mination, and shall ensure a proper adjustment
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of the contract rents for the project in compli-
ance with the requirements of subsection (d)
and subparagraph (C) of this subsection. The
Secretary shall issue a written finding of the le-
gality of the termination and the reasons for
the termination, including the actions consid-
ered or taken to avoid the termination. Within
30 days after issuance of the findings, the
owner shall provide written notice to each ten-
ant of the decision, together with the written
findings of the Secretary regarding the termi-
nation. The Secretary and the owner shall com-
plete the actions under this paragraph not later
than the expiration of the 9-month period be-
ginning upon the date that the owner provides
written notice of termination under subpara-
graph (A).
‘‘(3) ADJUSTMENT OF CONTRACT RENT.—If an
owner provides notice of proposed termination under
paragraph (1)(A) or (2)(A) and the contract rent is
less than the maximum monthly rent for units as-
sisted under this section, the Secretary shall adjust
the contract rent based on the maximum monthly
rent for units assisted under this section and the
value of the low-income housing.
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‘‘(4) NOTICE OF RENT INCREASES.—Each as-
sistance contract for assistance under this section
shall require the owner to notify tenants at least 90
days before the expiration of the contract of any
rent increase which may occur as a result of the ex-
piration of such contract.
‘‘(5) DEFINITION OF TERMINATION.—For pur-
poses of this subsection, the term ‘termination’
means the expiration of the assistance contract or
the refusal of the owner to renew an assistance con-
tract, which shall include the termination of tenancy
by an owner for business reasons.
‘‘(k) RENTAL ASSISTANCE
FOR MANUFACTURED
HOUSING.—
‘‘(1) IN GENERAL.—The Secretary may enter
into contracts to make assistance payments under
this subsection to assist low-income families by mak-
ing rental assistance payments on behalf of any such
family that utilizes a manufactured home as its prin-
cipal place of residence. In carrying out this sub-
section, the Secretary may—
‘‘(A) enter into annual contributions con-
tracts with public housing agencies pursuant to
which such agencies may enter into assistance
contracts to make such assistance payments to
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the owners of such real property, if such owners
agree to make good faith efforts to ensure that
such property complies with local health and
safety standards for water and sewage systems;
or
‘‘(B) enter into such contracts directly
with the owners of such real property, if such
owners agree to make good faith efforts to en-
sure that such property complies with local
health and safety standards for water and sew-
age systems.
‘‘(2) USE OF ASSISTANCE.—Rental assistance
payments under this subsection may be made with
respect to the rental of the real property on which
is located a manufactured home that is owned by a
low-income family or with respect to the rental by
such a family of a manufactured home and the real
property on which it is located.
‘‘(3) ASSISTANCE FOR RENTAL OF MANUFAC-
TURED HOME SITE.—
‘‘(A) MAXIMUM MONTHLY RENT.—A con-
tract entered into pursuant to this paragraph
shall establish the maximum monthly rent (in-
cluding maintenance and management charges)
that the owner is entitled to receive for the
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space on which a manufactured home is located
and with respect to which assistance payments
are to be made. The maximum monthly rent
shall not exceed an amount approved or estab-
lished by the Secretary.
‘‘(B) AMOUNT OF MONTHLY ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents real property that is assisted under this
paragraph, and on which is located a manufac-
tured home that is owned by such family shall
be the difference between the rent the family is
required to pay under section 3(a) and the sum
of—
‘‘(i) the monthly payment made by
such family to amortize the cost of pur-
chasing the manufactured home;
‘‘(ii) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary;
and
‘‘(iii) the maximum monthly rent per-
mitted with respect to the real property
which is rented by such family for the pur-
pose of locating its manufactured home;
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except that in no case may such assistance ex-
ceed the total amount of such maximum month-
ly rent.
‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC-
TURED HOME AND SITE.—
‘‘(A) MAXIMUM
MONTHLY
RENT.—Con-
tracts entered into pursuant to this paragraph
shall establish the maximum monthly rent per-
mitted with respect to the manufactured home
and the real property on which it is located and
with respect to which assistance payments are
to be made. The maximum monthly rent shall
not exceed an amount approved or established
by the Secretary.
‘‘(B) AMOUNT OF MONTHLY ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents a manufactured home and the real prop-
erty on which it is located and that is assisted
under this paragraph shall be the difference be-
tween the rent the family is required to pay
under section 3(a) and the sum of—
‘‘(i) the monthly utility payments
made by such family, subject to reasonable
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limitations prescribed by the Secretary;
and
‘‘(ii) the maximum monthly rent per-
mitted with respect to the manufactured
home and real property on which it is lo-
cated.
‘‘(5) ADJUSTMENT
OF
MAXIMUM
MONTHLY
RENTS.—The provisions of paragraphs (3) through
(7) of subsection (d) shall apply to the adjustments
of maximum monthly rents under this subsection.
‘‘(6) CONTRACT TERM.—Each contract entered
into under the subsection shall be for a term of not
less than one month and not more than 180 months;
except that in any case in which the manufactured
home park is substantially rehabilitated or newly
constructed, such term may not be less than 240
months, nor more than the maximum term for a
manufactured home loan permitted under section
2(b) of the National Housing Act.
‘‘(7) APPLICABILITY.—The Secretary may carry
out this subsection without regard to whether the
manufactured home park is existing, substantially
rehabilitated, or newly constructed.
‘‘(8) LIMITATION
ON
SUBSTANTIALLY
REHA-
BILITATED
AND
NEWLY
CONSTRUCTED
MANUFAC-
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TURED HOME PARKS.—In the case of any substan-
tially rehabilitated or newly constructed manufac-
tured home park containing spaces with respect to
which assistance is made under this subsection, the
principal amount of the mortgage attributable to the
rental spaces within the park may not exceed an
amount established by the Secretary which is equal
to or less than the limitation for manufactured home
parks described in section 207(c)(3) of the National
Housing Act, and the Secretary may increase such
limitation in high cost areas in the manner described
in such section.
‘‘(9) OTHER
REQUIREMENTS.—The Secretary
may prescribe other terms and conditions necessary
for the purpose of carrying out this subsection and
that are consistent with the purposes of this sub-
section.
‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—
‘‘(1) AUTHORITY.—In making assistance avail-
able under this section and assistance under section
441 and part V of subtitle F of title IV of the Stew-
art B. McKinney Homeless Assistance Act, the Sec-
retary may provide assistance with respect to resi-
dential properties in which some or all of the dwell-
ing units do not contain bathroom or kitchen facili-
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ties, if the unit of general local government in which
the property is located and the local public housing
agency certify to the Secretary that the property
complies with local health and safety standards.
‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE
FOR SINGLE PERSONS.—The Secretary may waive,
in appropriate cases, the limitation and preference in
section 3(b)(3)(A) with respect to the assistance
made available under this subsection.
‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI-
LIES.—
‘‘(1) SHARED HOUSING.—To assist elderly fam-
ilies and disabled families (as defined in section
3(b)) who elect to live in a shared housing arrange-
ment in which they benefit as a result of sharing the
facilities of a dwelling with others in a manner that
effectively and efficiently meets their housing needs
and thereby reduces their costs of housing, the Sec-
retary shall permit assistance provided under this
section to be used by such families in such arrange-
ments. In carrying out this subsection, the Secretary
shall issue minimum habitability standards for the
purpose of ensuring decent, safe, and sanitary hous-
ing for such families while taking into account the
special circumstances of shared housing.
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‘‘(2) PRIORITY
FOR
NONELDERLY
DISABLED
FAMILIES.—In allocating assistance under this sec-
tion, a public housing agency that serves more than
one unit of general local government may, at the dis-
cretion of the agency, give priority to disabled fami-
lies that are not elderly families.
‘‘(3) AUTHORITY
TO
PROVIDE
PREFERENCES
FOR THE ELDERLY AND RESERVE UNITS FOR THE
DISABLED.—Notwithstanding subsection (h)(2) or
(3), an owner of a covered section 8 housing project
(as such term is defined in section 659 of the Hous-
ing and Community Development Act of 1992) may
give preference for occupancy of dwelling units in
the project, and reserve units for occupancy, in ac-
cordance with subtitle D of title VI of the Housing
and Community Development Act of 1992.
‘‘(n) ADMINISTRATIVE FEES.—
‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL
PROGRAM.—The Secretary shall establish a fee for
the costs incurred by a public housing agency in ad-
ministering the program for rental assistance under
this section, which shall be, together with other fees
authorized under this subsection, included in any
amounts provided to the public housing agency
under the annual contributions contract for the
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agency. The amount of the fee for each month for
which a dwelling unit is covered by an assistance
contract shall be 8.2 percent of the fair market rent-
al established under subsection (e) for a 2-bedroom
existing rental dwelling unit in the market area of
the public housing agency. The Secretary may in-
crease the fee if necessary to reflect the higher costs
of administering small programs and programs oper-
ating over large geographic areas.
‘‘(2) OTHER FEES.—The Secretary shall also
establish reasonable fees (as determined by the Sec-
retary) for—
‘‘(A) the costs of preliminary expenses that
a public housing agency documents it has in-
curred in connection with new allocations of as-
sistance under the program for rental assist-
ance under this section, which shall not exceed
$275 per unit assisted;
‘‘(B) the costs incurred in assisting fami-
lies who experience difficulty (as determined by
the Secretary) in obtaining appropriate housing
under the program; and
‘‘(C) extraordinary costs approved by the
Secretary.
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‘‘(3) BUDGET
COMPLIANCE.—The Secretary
may establish or increase a fee in accordance with
this subsection only to such extent or in such
amounts as are provided in appropriation Acts.
‘‘(4) FEES FOR 1995 AND 1996.—Notwithstand-
ing any other provision of this subsection, the basic
fee for the costs incurred by a public housing agency
in administering the program for rental assistance
under this section during fiscal years 1995 and 1996
shall be equal to the fee determined for fiscal year
1993 under section 11(a) of the HUD Demonstra-
tion Act of 1993.
‘‘(o) PORTABILITY OF ASSISTANCE.—
‘‘(1) AUTHORITY.—Except as provided in para-
graphs (3) and (4), any family on behalf of whom
is provided tenant-based rental assistance under this
section and who moves to an eligible dwelling unit
located within the same State, or the same or a con-
tiguous metropolitan statistical area, as the metro-
politan statistical area within which is located the
area of jurisdiction of the public housing agency ap-
proving the assistance for the family, may use such
assistance to rent such eligible dwelling unit.
‘‘(2) ADMINISTRATION.—The public housing
agency having authority with respect to the dwelling
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unit to which a family moves under this subsection
shall have the responsibility of carrying out the pro-
visions of this section with respect to the family. If
no public housing agency has authority with respect
to the dwelling unit to which a family moves under
this subsection, the public housing agency approving
the assistance shall have such responsibility.
‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA
RESIDENCY.—At the discretion of a public housing
agency, the agency may provide that a family not
living within the jurisdiction of a public housing
agency at the time such family applies for or re-
ceives assistance from the agency may use tenant-
based rental assistance under this section to rent an
eligible dwelling unit that is not located within the
area of jurisdiction of the agency approving the as-
sistance only if, before such use, the family has
rented and occupied an eligible dwelling unit within
such original jurisdiction for not less than 12 con-
secutive months using assistance provided by such
agency.
‘‘(4) PROHIBITION OF PORTABILITY IN CASES
OF LEASE VIOLATION.—A family may not use ten-
ant-based rental assistance as provided in paragraph
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(1) if the family has moved from a dwelling unit in
violation of the lease for the dwelling unit.
‘‘(5) ALLOCATIONS DUE TO PORTABILITY.—In
determining the amount of rental assistance pro-
vided under an annual contributions contract for any
fiscal year, the Secretary shall consider any reduc-
tion in the number of resident families incurred by
a public housing agency in the preceding fiscal year
as a result of the provisions of this subsection.
‘‘(6) PROVISION OF RENTAL ASSISTANCE FOR
PORTABILITY PURPOSES.—
‘‘(A) AMOUNT.—To the extent amounts for
assistance under this section that are reserved
under section 213(d)(4) of the Housing and
Community Development Act of 1974 are avail-
able in a fiscal year, the Secretary shall provide
rental assistance under this section in accord-
ance with this paragraph.
‘‘(B) USE.—Amounts provided for use
under this paragraph shall be used only to pro-
vide a public housing agency with additional
amounts (as determined under subparagraph
(C)) to provide assistance for families on behalf
of whom assistance is provided under this sec-
tion by another public housing agency and who
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move into an eligible dwelling unit located with-
in the area of jurisdiction of the agency to re-
ceive assistance under this paragraph.
‘‘(C) REQUIREMENT.—Amounts provided
for use under this paragraph may be made
available to a public housing agency in a fiscal
year only if, during such fiscal year, the agency
has provided assistance pursuant to the first
sentence of paragraph (2) on behalf of families
who have moved into eligible dwelling units lo-
cated within the area of jurisdiction of the
agency in an amount not less than the lesser of
(i) 5 percent of total amount received by the
agency for assistance under this section for the
fiscal year, or (ii) the amount necessary to as-
sist 25 percent of average annual number of
families previously assisted by the agency who
relinquish such assistance in a year (based on
the preceding 3 calendar years).
‘‘(p) PROHIBITION OF DISCRIMINATION.—In select-
ing families for the provision of assistance under this sec-
tion, a public housing agency may not exclude or penalize
a family solely because the family resides in a public hous-
ing project.
‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—
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‘‘(1) ASSISTANCE
FOR
RESIDENTS
OF
REHA-
BILITATED PROJECTS.—In the case of low-income
families living in rental projects rehabilitated under
section 17 of this Act or section 533 of the Housing
Act of 1949 before rehabilitation—
‘‘(A) tenant-based rental assistance under
this section shall be provided for families who
are required to move out of their dwelling units
because of the physical rehabilitation activities
or because of overcrowding;
‘‘(B) at the discretion of each public hous-
ing agency, tenant-based rental assistance
under this section may be provided for families
who would have to pay more than 30 percent of
their adjusted income for rent after rehabilita-
tion whether they choose to remain in, or to
move from, the project; and
‘‘(C) the Secretary shall allocate tenant-
based rental assistance provided under this sec-
tion to ensure that sufficient resources are
available to address the physical or economic
displacement, or potential economic displace-
ment, of existing tenants pursuant to subpara-
graphs (A) and (B).
‘‘(2) LOAN MANAGEMENT ASSISTANCE.—
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‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section through a
loan management program to assist financially
troubled 
multifamily 
residential 
housing
projects (i) subject to mortgages that are in-
sured under the National Housing Act or mort-
gages that have been assigned to the Secretary,
(ii) that were held by the Secretary and have
been sold, and (iii) that were assisted under
section 202 of the Housing Act of 1959.
‘‘(B) ELIGIBILITY.—The eligibility of a
multifamily residential project for loan manage-
ment assistance under this paragraph shall be
determined without regard to whether the
project is subsidized or unsubsidized.
‘‘(C) EXTENSION
OF
CONTRACT.—The
Secretary shall extend any expiring contract en-
tered into under this section for loan manage-
ment assistance or execute a new contract for
project-based loan management assistance, if
the owner agrees to continue providing housing
for low-income families during the term of the
contract.
‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—
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‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section to be used
only in connection with tenant-based assistance
under this section on behalf of any family (i)
who is otherwise eligible for such assistance,
and (ii) who the public child welfare agency for
the jurisdiction has certified is a family for
whom the lack of adequate housing is a primary
factor in the imminent placement of the fami-
ly’s child or children in out-of-home care or the
delayed discharge of a child or children to the
family from out-of-home care.
‘‘(B) ALLOCATION.—Any amounts made
available under this paragraph shall be allo-
cated by the Secretary through a national com-
petition among applicants based on dem-
onstrated need for assistance under this para-
graph. To be considered for assistance, an ap-
plicant shall submit to the Secretary a written
proposal containing a report from the public
child welfare agency serving the jurisdiction of
the applicant that describes how a lack of ade-
quate housing in the jurisdiction is resulting in
the initial or prolonged separation of children
from their families, and how the applicant will
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coordinate with the public child welfare agency
to identify eligible families and provide the fam-
ilies with assistance under this paragraph.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) APPLICANT.—The term ‘appli-
cant’ means a public housing agency.
‘‘(ii) PUBLIC CHILD WELFARE AGEN-
CY.—The term ‘public child welfare agen-
cy’ means the public agency responsible
under applicable State law for determining
that a child is at imminent risk of place-
ment in out-of-home care or that a child in
out-of-home care under the supervision of
the public agency may be returned to his
or her family.
‘‘(D) REPORT.—The Secretary shall in-
clude in each annual report of the Secretary
under section 8 of the Department of Housing
and Urban Development Act information speci-
fying the number of families assisted pursuant
to this paragraph during the preceding 2-year
period and the number of communities in which
such assistance was used, describing the extent
of cooperation between public housing agencies
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and public child welfare agencies in timely iden-
tifying families for which such assistance is ap-
propriate and in providing such assistance, and
describing any impediments to providing such
assistance.
‘‘(4) NEIGHBORHOOD CRIME FIGHTERS ASSIST-
ANCE.—
‘‘(A) ASSISTANCE.—To the extent amounts
for assistance under this section are reserved
under section 213(d)(4)(A) of the Housing and
Community Development Act of 1974 for use
under this paragraph, the Secretary may pro-
vide such amounts to any public housing agency
approved under subparagraph (C) to make as-
sistance payments under this paragraph on be-
half of any family described under subpara-
graph (B) for the rental of a dwelling unit for
the family that, in the determination of the
public housing agency (after consultation with
law enforcement agency concerned) provides for
the protection of the family.
‘‘(B) ELIGIBLE
FAMILIES.—A family re-
ferred to in subparagraph (A) shall be any fam-
ily that—
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‘‘(i) contains a member that has pro-
vided information to any Federal, State, or
local law enforcement agency that such law
enforcement agency determines substan-
tially contributes to the arrest, criminal
prosecution, or conviction of any person for
any criminal activity in or near the area or
neighborhood in which the person provid-
ing the information resides;
‘‘(ii) is likely, in the determination of
such law enforcement agency, to be subject
to a crime of violence directed at the fam-
ily on account of providing the information
referred to in clause (i);
‘‘(iii) is legally residing, at the time
such information is provided to the law en-
forcement agency, in a dwelling unit in a
public housing project administered by a
public housing agency meeting the require-
ments of subparagraph (C) or in a dwell-
ing unit assisted under this section by such
a public housing agency; and
‘‘(iv) is not protected or assisted, or to
be protected or assisted, under chapter 224
of title 18, United States Code.
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‘‘(C) ELIGIBLE
PHA’S.—The Secretary
may provide amounts reserved for use under
this paragraph only to public housing agencies
approved by the Secretary under this subpara-
graph. The Secretary may approve only agen-
cies that the Secretary determines have—
‘‘(i) established sufficient cooperation
with local law enforcement agencies to
make determinations to provide assistance
under this paragraph; and
‘‘(ii) coordinated with local law en-
forcement agencies to promptly inform the
public housing agency and the Secretary of
any determination that assistance under
this paragraph is appropriate for a family,
except that such coordination shall be sub-
ject to the procedures established under
subparagraph (F)(iii) to ensure confiden-
tiality.
‘‘(D) GUIDELINES.—
‘‘(i) DETERMINATION OF NEED AND
COORDINATION.—The Secretary shall es-
tablish guidelines jointly with the Attorney
General that—
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‘‘(I) describe the types of situa-
tions under clauses (i) and (ii) of sub-
paragraph (B) in which assistance
may be provided under this para-
graph, which shall include situations
in which the information referred to
in subparagraph (B)(i) is information
regarding any crime that is detrimen-
tal to the health, safety, peace, or se-
curity of the area or neighborhood in
which the family providing the infor-
mation resides; and
‘‘(II) describe elements of suffi-
cient cooperation between public hous-
ing agencies and law enforcement
agencies for purposes of subparagraph
(C)(i).
‘‘(ii) PROCEDURES.—The Secretary
shall establish procedures for public hous-
ing agencies approved under subparagraph
(C)—
‘‘(I) to apply for, obtain, and ad-
minister amounts reserved for provid-
ing assistance under this paragraph
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on behalf of families eligible under
subparagraph (B); and
‘‘(II) to provide for the termi-
nation of the tenancy of any family
assisted under this paragraph from
the dwelling unit in which the family
is residing so that such assistance
may be utilized.
‘‘(E) PHA ACTIONS.—Each public housing
agency approved by the Secretary under sub-
paragraph (C) shall—
‘‘(i) periodically notify Federal, State,
and local law enforcement agencies in the
area of jurisdiction of the public housing
agency of the availability of assistance
under this paragraph;
‘‘(ii) take such actions as may be ap-
propriate to inform residents of public
housing projects administered by the agen-
cy and dwelling units assisted under this
section by the agency of the availability of
such assistance; and
‘‘(iii) coordinate with such law en-
forcement agencies to promptly inform the
public housing agency and the Secretary of
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any determination that assistance under
this paragraph is appropriate for a family,
except that such coordination shall be sub-
ject to the procedures established under
subparagraph (F)(iii) to ensure confiden-
tiality.
‘‘(F) NOTICE
AND
CONFIDENTIALITY.—
The Secretary shall—
‘‘(i) periodically notify public housing
agencies of the availability of assistance
under this paragraph;
‘‘(ii) encourage public housing agen-
cies to cooperate and coordinate with law
enforcement agencies to encourage resi-
dents of public housing projects and dwell-
ing units assisted under this section to
provide information to law enforcement
agencies regarding criminal activity; and
‘‘(iii) develop and implement proce-
dures to ensure the confidentiality of the
identity and new location of any family as-
sisted under this paragraph.
‘‘(G) OTHER ASSISTANCE.—A public hous-
ing agency that provides assistance under sub-
paragraph (A) for a family and the law enforce-
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ment agency involved shall ensure that the fam-
ily is provided access to other assistance and
services appropriate to ensure that the reloca-
tion of the family to the dwelling unit assisted
under subparagraph (A) and the neighborhood
of such dwelling unit occurs with the minimum
possible amount of disruption to the life of the
family.
‘‘(H) LIABILITY.—The United States, and
its officers and employees, shall not be subject
to any civil liability on account of any decision
to provide or not to provide protection under
this paragraph.
‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—
‘‘(1) 5-YEAR PLAN.—Not later than 30 days
after the beginning of each fiscal year, the Secretary
shall publish in the Federal Register a plan for re-
ducing, to the extent feasible, year-to-year fluctua-
tions in the levels of budget authority that will be
required over the succeeding 5-year period to renew
expiring assistance contracts entered into under this
section after the enactment of the Housing and
Community Development Act of 1974. To the extent
necessary to carry out such plan and to the extent
approved in appropriations Acts, the Secretary is au-
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thorized to enter into annual contributions contracts
with terms of less than 60 months.
‘‘(2) NEW
CONSTRUCTION
AND
SUBSTANTIAL
REHABILITATION
PROJECTS.—Subject only to the
availability of budget authority to carry out this
paragraph and to the absence of owners agreeing to
enter into new contracts, the Secretary shall enter
into new contracts under subtitle D of title I of the
Housing and Community Development Act of 1994
to provide project-based assistance for qualified
housing (as such term is defined in section 163 of
such subtitle) to owners of such housing.
‘‘(s) GENERAL PROVISIONS.—
‘‘(1) PLEDGING ASSISTANCE CONTRACTS AS SE-
CURITY.—An owner may pledge, or offer as security
for any loan or obligation, an assistance contract en-
tered into pursuant to this section, but only if such
security is in connection with a project constructed
or rehabilitated pursuant to authority under this
section and the terms of the financing or any refi-
nancing have been approved by the Secretary.
‘‘(2) HOUSING
COUNSELING
FOR
RENTAL
CHOICE.—Each public housing agency that provides
rental housing assistance under this section on be-
half of low-income families shall notify such assisted
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families of the availability of any entity in the juris-
diction of the agency providing rental housing coun-
seling under section 106(a)(4) of the Housing and
Urban Development Act of 1968.
‘‘(t) HOMEOWNERSHIP OPTION.—A public housing
agency providing assistance under this section may, at the
option of the agency, provide assistance for homeowner-
ship under this subsection as follows:
‘‘(1) USE OF ASSISTANCE FOR HOMEOWNER-
SHIP.—A family receiving tenant-based assistance
under this section may receive assistance for occu-
pancy of a dwelling owned by one or more members
of the family if the family—
‘‘(A) is a first-time homeowner;
‘‘(B)(i) participates in the family self-suffi-
ciency program under section 23 of the public
housing agency providing the assistance; or
‘‘(ii) demonstrates that the family has in-
come from employment or other sources (other
than public assistance), as determined in ac-
cordance with requirements of the Secretary,
that is not less than twice the fair market rent-
al for the area established under subsection
(e)(1) (or such other amount as may be estab-
lished by the Secretary);
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‘‘(C) except as provided by the Secretary,
demonstrates at the time the family initially re-
ceives tenant-based assistance under this sub-
section that one or more adult members of the
family have achieved employment for the period
as the Secretary shall require;
‘‘(D) participates in a homeownership and
housing counseling program provided by the
agency; and
‘‘(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements estab-
lished by the Secretary.
‘‘(2) MONTHLY ASSISTANCE PAYMENT.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provisions of this section governing deter-
mination of the amount of assistance payments
under this section on behalf of a family, the
monthly assistance payment for any family as-
sisted under this subsection shall be the amount
by which the fair market rental for the area es-
tablished under subsection (e)(1) exceeds 30
percent of the family’s monthly adjusted in-
come; except that the monthly assistance pay-
ment shall not exceed the amount by which the
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monthly homeownership expenses, as deter-
mined in accordance with requirements estab-
lished by the Secretary, exceeds 10 percent of
the family’s monthly income.
‘‘(B) EXCLUSION
OF
EQUITY
FROM
IN-
COME.—For 
purposes 
of 
determining 
the
monthly assistance payment for a family, the
Secretary shall not include in family income an
amount imputed from the equity of the family
in a dwelling occupied by the family with assist-
ance under this subsection.
‘‘(3) RECAPTURE
OF
CERTAIN
AMOUNTS.—
Upon sale of the dwelling by the family, the Sec-
retary shall recapture from any net proceeds the
amount of additional assistance (as determined in
accordance with requirements established by the
Secretary) paid to or on behalf of the eligible family
as a result of paragraph (2)(B).
‘‘(4) 
DOWNPAYMENT
REQUIREMENT.—Each
public housing agency providing assistance under
this subsection shall ensure that each family assisted
shall provide from its own resources not less than 80
percent of any downpayment in connection with a
loan made for the purchase of a dwelling. Such re-
sources may include amounts from any escrow ac-
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count for the family established under section 23(d).
Not more than 20 percent of the downpayment may
be provided from other sources, such as from non-
profit entities and programs of States and units of
general local government.
‘‘(5) 
INELIGIBILITY
UNDER
OTHER
PRO-
GRAMS.—A family may not receive assistance under
this subsection during any period when assistance is
being provided for the family under other Federal
homeownership assistance programs, as determined
by the Secretary, which shall include assistance
under the HOME Investment Partnerships Act, the
Homeownership and Opportunity Through HOPE
Act, title II of the Housing and Community Devel-
opment Act of 1987, and section 502 of the Housing
Act of 1949.
‘‘(6) INAPPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—Assistance under this subsection shall not
be subject to the requirements of the following provi-
sions:
‘‘(A) Subsection (h)(5) of this section.
‘‘(B) Any other provisions of this section
governing maximum amounts payable to owners
and amounts payable by assisted families.
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‘‘(C) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
‘‘(D) Any other provisions of this Act
that are inconsistent with the provisions of this
subsection.
‘‘(7) REVERSION TO RENTAL STATUS.—
‘‘(A) FHA-INSURED
MORTGAGES.—If a
family receiving assistance under this sub-
section for occupancy of a dwelling defaults
under a mortgage for the dwelling insured by
the Secretary under the National Housing Act,
the family may not continue to receive rental
assistance under this section unless the family
(i) transfers to the Secretary marketable title to
the dwelling, (ii) moves from the dwelling with-
in the period established or approved by the
Secretary, and (iii) agrees that any amounts
the family is required to pay to reimburse the
escrow account under section 23(d)(3) may be
deducted by the public housing agency from the
assistance payment otherwise payable on behalf
of the family.
‘‘(B) OTHER MORTGAGES.—If a family re-
ceiving assistance under this subsection defaults
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under a mortgage not insured under the Na-
tional Housing Act, the family may not con-
tinue to receive rental assistance under this sec-
tion unless it complies with requirements estab-
lished by the Secretary.
‘‘(C) ALL MORTGAGES.—A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
‘‘(8) 
DEFINITION
OF
FIRST-TIME
HOME-
OWNER.—For purposes of this subsection, the term
‘first-time homeowner’ means—
‘‘(A) a family, no member of which has
had a present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives assistance
for homeownership under this subsection; and
‘‘(B) any other family, as the Secretary
may prescribe.
‘‘(u) DEFINITIONS.—For purposes of this section:
‘‘(1) ANNUAL
CONTRIBUTIONS
CONTRACT.—
The term ‘annual contributions contract’ means a
contract under subsection (b) between the Secretary
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and a public housing agency to provide amounts for
rental assistance payments under this section to the
public housing agency.
‘‘(2) ASSISTANCE
CONTRACT.—The term ‘as-
sistance contract’ means a contract under subsection
(c) between a public housing agency (or the Sec-
retary) and an owner to make rental assistance pay-
ments under this section to the owner.
‘‘(3) DEBT SERVICE.—The term ‘debt service’
means the required payments for principal and in-
terest made with respect to a mortgage secured by
housing assisted under this Act.
‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The
term ‘drug-related criminal activity’ means the ille-
gal manufacture, sale, distribution, use, or posses-
sion with intent to manufacture, sell, distribute, or
use, of a controlled substance (as such term is de-
fined in section 102 of the Controlled Substances
Act).
‘‘(5) OWNER.—The term ‘owner’ means any
private person or entity, including a cooperative, an
agency of the Federal Government, or a public hous-
ing agency, having the legal right to lease or sub-
lease dwelling units, and such term shall include any
principals, general partners, primary shareholders,
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and other similar participants in any entity owning
a multifamily housing project (as such term is de-
fined in subsection (p)(3)), as well as the entity
itself.
‘‘(6) PARTICIPATING JURISDICTION.—The term
‘participating jurisdiction’ means a State or unit of
general local government designated by the Sec-
retary to be a participating jurisdiction under title
II of the Cranston-Gonzalez National Affordable
Housing Act.
‘‘(7) PROJECT-BASED ASSISTANCE.—The term
‘project-based assistance’ means rental assistance
under this section that is attached to a structure
pursuant to subsection (i).
‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in-
clude, with respect to members of a cooperative, the
charges under the occupancy agreements between
such members and the cooperative.
‘‘(9) RENTAL ASSISTANCE.—The term ‘rental
assistance’ means assistance provided under this sec-
tion on behalf of low-income families for the rental
of a dwelling unit.
‘‘(10) TENANT-BASED ASSISTANCE.—The term
‘tenant-based assistance’ means rental assistance
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under this section that is not project-based assist-
ance.’’.
(b) CONFORMING AMENDMENTS.—
(1) UNITED STATES HOUSING ACT OF 1937.—
The United States Housing Act of 1937 is amend-
ed—
(A) 
in 
section 
3(a)(1) 
(42 
U.S.C.
1437a(a)(1)), by striking ‘‘(other than a family
assisted under section 8(o) or (y) or paying rent
under 
section 
8(c)(3)(B))’’ 
and 
inserting
‘‘(other than a family assisted under section
8(t) or paying rent under section 8(f)(2))’’;
(B) in section 5 (42 U.S.C. 1437c)—
(i) in subsection (c)(7)(C), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’;
(ii) in subsection (j)(1)(B)(i), by strik-
ing ‘‘section 8(o)(6)’’ and inserting ‘‘sec-
tion 8’’; and
(iii) in subsection (j)(1)(D), by strik-
ing ‘‘subsection (b) or (o) of’’;
(C) in section 6(p)(1)(B) (42 U.S.C.
1437d(p)(1)(B)), by striking ‘‘holding certifi-
cates and vouchers’’ and inserting ‘‘eligible and
approved for assistance’’;
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(D) in section 21(b)(3)—
(i) by striking ‘‘a certificate under
section 8(b)(1) or a housing voucher under
section 8(o)’’ and inserting ‘‘tenant-based
assistance under section 8’’; and
(ii) by striking ‘‘such certificate’’ and
inserting ‘‘such assistance’’;
(E) in section 23—
(i) in subsection (a), by striking ‘‘as-
sistance under the certificate and voucher
programs’’ and inserting ‘‘tenant-based as-
sistance’’;
(ii) in subsection (b)—
(I) in paragraph (1), by striking
‘‘assistance under subsection (b) or
(o) of’’ and inserting ‘‘tenant-based
assistance under’’; and
(II) in paragraph (4), by striking
‘‘Assistance under the certificate or
voucher 
programs’’ 
and 
inserting
‘‘Tenant-based assistance’’;
(iii) in subsection (c)(1), by striking
‘‘assistance under the certificate and
voucher programs of’’ and inserting ‘‘ten-
ant-based assistance from’’;
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(iv) in subsection (d)(3) (as added by
section 185(b) of the Housing and Com-
munity Development Act of 1992 (Public
Law 102–550; 106 Stat. 3747)), by strik-
ing ‘‘section 8(y)’’ and inserting ‘‘section
8(t)’’; and
(v) in subsection (h)(1)—
(I) by striking ‘‘section 8(q) for
the costs incurred in administering
the provision of certificate and vouch-
er’’ and inserting ‘‘section 8(n) for the
costs incurred in administering the
provision of tenant-based’’; and
(II) 
by 
striking 
‘‘section
8(q)(2)(A)(i)’’ and inserting ‘‘section
8(n)(2)(A)’’; and
(G) in section 304(g)(3) (42 U.S.C.
1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)
and section 8(o)(9)’’ and inserting ‘‘section 8’’.
(2) 
ALLOCATION
OF
ASSISTED
HOUSING
FUNDS.—Section 213 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 1439) is
amended—
(A) in subsection (d)—