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development or building, or portion thereof, for occupancy
as provided under subsection (a) of this section.
(g) USE OF AMOUNTS.—Any amounts appropriated
pursuant to section 10(b) of the Housing Opportunity Pro-
gram Extension Act of 1996 (Public Law 104–120) may
also be used for choice-based rental housing assistance under
title III for public housing agencies to implement this sec-
tion.
Subtitle C—Management
SEC. 231. MANAGEMENT PROCEDURES.
(a) SOUND MANAGEMENT.—A public housing agency
that receives grant amounts under this title shall establish
and comply with procedures and practices sufficient to en-
sure that the public housing developments owned or admin-
istered by the agency are operated in a sound manner.
(b) ACCOUNTING SYSTEM FOR RENTAL COLLECTIONS
AND COSTS.—
(1) 
ESTABLISHMENT.—Each 
public 
housing
agency that receives grant amounts under this title
shall establish and maintain a system of accounting
for rental collections and costs (including administra-
tive, utility, maintenance, repair, and other operating
costs) for each project and operating cost center (as
determined by the Secretary).
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(2) ACCESS TO RECORDS.—Each public housing
agency shall make available to the general public the
information required pursuant to paragraph (1) re-
garding collections and costs.
(3) EXEMPTION.—The Secretary may permit au-
thorities owning or operating fewer than 500 dwelling
units to comply with the requirements of this sub-
section by accounting on an agency-wide basis.
(c) MANAGEMENT BY OTHER ENTITIES.—Except as
otherwise provided under this Act, a public housing agency
may contract with any other entity to perform any of the
management functions for public housing owned or oper-
ated by the public housing agency.
SEC. 232. HOUSING QUALITY REQUIREMENTS.
(a) IN GENERAL.—Each public housing agency that
receives grant amounts under this Act shall maintain its
public housing in a condition that complies—
(1) in the case of public housing located in a ju-
risdiction which has in effect laws, regulations, stand-
ards, or codes regarding habitability of residential
dwellings, with such applicable laws, regulations,
standards, or codes; or
(2) in the case of public housing located in a ju-
risdiction which does not have in effect laws, regula-
tions, standards, or codes described in paragraph (1),
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with the housing quality standards established under
subsection (b).
(b) FEDERAL HOUSING QUALITY STANDARDS.—The
Secretary shall establish housing quality standards under
this subsection that ensure that public housing dwelling
units are safe, clean, and healthy. Such standards shall in-
clude requirements relating to habitability, including main-
tenance, health and sanitation factors, condition, and con-
struction of dwellings, and shall, to the greatest extent prac-
ticable, be consistent with the standards established under
section 328(c). The Secretary shall differentiate between
major and minor violations of such standards.
(c) DETERMINATIONS.—Each public housing agency
providing housing assistance shall identify, in the local
housing management plan of the agency, whether the agency
is utilizing the standard under paragraph (1) or (2) of sub-
section (a).
(d) ANNUAL
INSPECTIONS.—Each public housing
agency that owns or operates public housing shall make an
annual inspection of each public housing development to
determine whether units in the development are maintained
in accordance with the requirements under subsection (a).
The agency shall retain the results of such inspections and,
upon the request of the Secretary, the Inspector General for
the Department of Housing and Urban Development, or
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any auditor conducting an audit under section 541, shall
make such results available.
SEC. 233. EMPLOYMENT OF RESIDENTS.
Section 3 of the Housing and Urban Development Act
of 1968 (12 U.S.C. 1701u) is amended—
(1) in subsection (c)(1)—
(A) in subparagraph (A)—
(i) by striking ‘‘public and Indian
housing agencies’’ and inserting ‘‘public
housing agencies and recipients of grants
under the Native American Housing Assist-
ance and Self-Determination Act of 1996’’;
and
(ii) by striking ‘‘development assist-
ance’’ and all that follows through the end
and inserting ‘‘assistance provided under
title II of the Housing Opportunity and Re-
sponsibility Act of 1997 and used for the
housing production, operation, or capital
needs.’’; and
(B) in subparagraph (B)(ii), by striking
‘‘managed by the public or Indian housing agen-
cy’’ and inserting ‘‘assisted by the public housing
agency or the recipient of a grant under the Na-
120
tive American Housing Assistance and Self-De-
termination Act of 1996’’; and
(2) in subsection (d)(1)—
(A) in subparagraph (A)—
(i) by striking ‘‘public and Indian
housing agencies’’ and inserting ‘‘public
housing agencies and recipients of grants
under the Native American Housing Assist-
ance and Self-Determination Act of 1996’’;
and
(ii) by striking ‘‘development assist-
ance’’ and all that follows through ‘‘section
14 of that Act’’ and inserting ‘‘assistance
provided under title II of the Housing Op-
portunity and Responsibility Act of 1997
and used for the housing production, oper-
ation, or capital needs’’; and
(B) in subparagraph (B)(ii), by striking
‘‘operated by the public or Indian housing agen-
cy’’ and inserting ‘‘assisted by the public housing
agency or the recipient of a grant under the Na-
tive American Housing Assistance and Self-De-
termination Act of 1996’’.