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the real property on which it is located, and to whom
housing assistance under this title has been made
available for the rental of such property, the public
housing agency making such assistance available shall
enter into a contract to make housing assistance pay-
ments under this title directly to the family (rather
than to the owner of such real property) if—
(A) the owner of the real property refuses to
enter into a contract to receive housing assist-
ance payments pursuant to section 351(a);
(B) the family was residing in such manu-
factured home on such real property at the time
such housing assistance was initially made
available on behalf of the family;
(C) the family provides such assurances to
the agency, as the Secretary may require, to en-
sure that amounts from the housing assistance
payments are used for rental of the real prop-
erty; and
(D) the rental of the real property otherwise
complies with the requirements for assistance
under this title.
A contract pursuant to this subsection shall be subject
to the provisions of section 351 and any other provi-
sions applicable to housing assistance payments con-
207
tracts under this title, except that the Secretary may
provide such exceptions as the Secretary considers ap-
propriate to facilitate the provision of assistance
under this subsection.
Subtitle C—Payment of Housing As-
sistance on Behalf of Assisted
Families
SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.
(a) IN GENERAL.—Each public housing agency that
receives amounts under a contract under section 302 may
enter into housing assistance payments contracts with own-
ers of existing dwelling units to make housing assistance
payments to such owners in accordance with this title.
(b) PHA ACTING AS OWNER.—A public housing agen-
cy may enter into a housing assistance payments contract
to make housing assistance payments under this title to it-
self (or any agency or instrumentality thereof) as the owner
of dwelling units (other than public housing), and the agen-
cy shall be subject to the same requirements that are appli-
cable to other owners, except that the determinations under
section 328(a) and 354(b) shall be made by a competent
party not affiliated with the agency, and the agency shall
be responsible for any expenses of such determinations.
(c) PROVISIONS.—Each housing assistance payments
contract shall—
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(1) have a term of not more than 12 months;
(2) require that the assisted dwelling unit may
be rented only pursuant to a lease that complies with
the requirements of section 324;
(3) comply with the requirements of sections 325,
642, and 643 (relating to termination of tenancy);
(4) require the owner to maintain the dwelling
unit in accordance with the applicable standards
under section 328(a)(2); and
(5) provide that the screening and selection of el-
igible families for assisted dwelling units shall be the
function of the owner.
SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.
(a) UNITS HAVING GROSS RENT EXCEEDING PAY-
MENT STANDARD.—In the case of a dwelling unit bearing
a gross rent that exceeds the payment standard established
under section 353 for a dwelling unit of the applicable size
and located in the market area in which such assisted dwell-
ing unit is located, the amount of the monthly assistance
payment shall be the amount by which such payment stand-
ard exceeds the amount of the resident contribution deter-
mined in accordance with section 322(a)(1).
(b) SHOPPING INCENTIVE FOR UNITS HAVING GROSS
RENT NOT EXCEEDING PAYMENT STANDARD.—In the case
of an assisted family renting an eligible dwelling unit bear-
209
ing a gross rent that does not exceed the payment standard
established under section 353 for a dwelling unit of the ap-
plicable size and located in the market area in which such
assisted dwelling unit is located, the following requirements
shall apply:
(1) AMOUNT
OF
MONTHLY
ASSISTANCE
PAY-
MENT.—The amount of the monthly assistance pay-
ment for housing assistance under this title on behalf
of the assisted family shall be the amount by which
the gross rent for the dwelling unit exceeds the
amount of the resident contribution.
(2) ESCROW
OF
SHOPPING
INCENTIVE
SAV-
INGS.—An amount equal to 50 percent of the dif-
ference between payment standard and the gross rent
for the dwelling unit shall be placed in an interest
bearing escrow account on behalf of such family on a
monthly basis by the public housing agency. Amounts
in the escrow account shall be made available to the
assisted family on an annual basis.
(3) DEFICIT
REDUCTION.—The public housing
agency making housing assistance payments on behalf
of such assisted family in a fiscal year shall reserve
from amounts made available to the agency for assist-
ance payments for such fiscal year an amount equal
to the amount described in paragraph (2). At the end
210
of each fiscal year, the Secretary shall recapture any
such amounts reserved by public housing agencies and
such amounts shall be covered into the General Fund
of the Treasury of the United States.
For purposes of this section, in the case of a family receiv-
ing homeownership assistance under section 329, the term
‘‘gross rent’’ shall mean the homeownership costs to the fam-
ily as determined in accordance with guidelines of the Sec-
retary.
SEC. 353. PAYMENT STANDARDS.
(a) ESTABLISHMENT.—Each public housing agency
providing housing assistance under this title shall establish
payment standards under this section for various areas,
and sizes and types of dwelling units, for use in determin-
ing the amount of monthly housing assistance payment to
be provided on behalf of assisted families.
(b) USE
OF RENTAL INDICATORS.—The payment
standard for each size and type of housing for each market
area shall be an amount that is not less than 80 percent,
and not greater than 120 percent, of the rental indicator
established under section 323 for such size and type for such
area.
(c) REVIEW.—If the Secretary determines, at any
time, that a significant percentage of the assisted families
who are assisted by a public housing agency and are occu-
211
pying dwelling units of a particular size are paying more
than 30 percent of their adjusted incomes for rent, the Sec-
retary shall review the payment standard established by the
agency for such size dwellings. If, pursuant to the review,
the Secretary determines that such payment standard is not
appropriate to serve the needs of the low-income population
of the jurisdiction served by the agency (taking into consid-
eration rental costs in the area), as identified in the ap-
proved community improvement plan of the agency, the
Secretary may require the public housing agency to modify
the payment standard.
SEC. 354. REASONABLE RENTS.
(a) ESTABLISHMENT.—The rent charged for a dwelling
unit for which rental assistance is provided under this title
shall be established pursuant to negotiation and agreement
between the assisted family and the owner of the dwelling
unit.
(b) REASONABLENESS.—
(1) DETERMINATION.—A public housing agency
providing rental assistance under this title for a
dwelling unit shall, before commencing assistance
payments for a unit (with respect to initial contract
rents and any rent revisions), determine whether the
rent charged for the unit exceeds the rents charged for
224
(5) choice-based rental assistance provided under
title III of this Act.
Such term does not include any amounts obligated for as-
sistance under existing contracts for project-based assist-
ance under section 8 of the United States Housing Act of
1937 or section 601(f) of this Act.
SEC. 404. PROGRAM REQUIREMENTS.
(a) ELIGIBLE FAMILIES.—Each family on behalf of
whom assistance is provided for rental or homeownership
of a dwelling unit using amounts made available pursuant
to this title shall be a low-income family. Each dwelling
unit assisted using amounts made available pursuant to
this title shall be available for occupancy only by families
that are low-income families at the time of their initial oc-
cupancy of the unit.
(b) COMPLIANCE WITH ASSISTANCE PLAN.—A partici-
pating jurisdiction shall provide assistance using amounts
received pursuant to this title in the manner set forth in
the plan of the jurisdiction approved by the Secretary under
section 406(a)(2).
(c) RENT POLICY.—A participating jurisdiction shall
ensure that the rental contributions charged to families as-
sisted with amounts received pursuant to this title are rea-
sonable and designed to encourage employment and self-suf-
ficiency by participating families.