SEC. 2. FUNDING ALLOCATION. 
Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended by adding at the end the 
following new subsections: 
‘‘(ff) TENANT-BASED CONTRACT RENEWALS.— 
‘‘(1) ALLOCATION DETERMINATION.—Notwith-
standing any other provision of law, for each cal-
endar year funding cycle, the Secretary shall allocate 
amounts made available for such funding cycle for 
renewal of expiring annual contributions contracts 
for tenant-based rental assistance for each public 
housing agency (other than an agency with a special 
funding agreement under the Moving To Work dem-
onstration program) based on the most recent leas-
ing and cost data for such funding cycle, as adjusted 
to reflect likely reasonable future costs— 
‘‘(A) by applying local and regional annual 
adjustment factors, as established for such cal-
endar year by the Secretary using the most re-
cent data available; and 
‘‘(B) by applying such additional adjust-
ments to the most recent leasing and cost data 
for such funding cycle, to compensate for 
changes in the number of vouchers under lease 
or voucher costs, as the Secretary may approve 
for a public housing agency, pursuant to appli-
VerDate Aug 31 2005 
22:29 Apr 30, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5233.IH
H5233
cchase on PROD1PC60 with BILLS
cation by the agency and in accordance with 
paragraph (3). 
‘‘(2) MOST
RECENT
LEASING
AND
COST 
DATA.—For purposes of this subsection, the term 
‘most recent leasing and cost data’ means, for any 
calendar year funding cycle, leasing and per-voucher 
cost data for the most recent 12-month period for 
which such verified data is available as of the time 
of the allocation determination for such funding 
cycle, except that such data shall not include data 
with respect to any units leased in excess of the 
agency’s authorized unit months. The Secretary 
shall collect new leasing and per-voucher cost data 
for use under this paragraph for each calendar year 
funding cycle, which shall be verified data obtained 
from the Voucher Management System. 
‘‘(3) ADJUSTMENTS.— 
‘‘(A) AUTHORITY.—Application and ap-
proval of additional adjustments referred to in 
paragraph (1)(B) for a calendar year shall be 
in accordance with such limitations as the Sec-
retary shall provide, which shall include the use 
of objective and fair approval criteria estab-
lished by the Secretary that provide that— 
VerDate Aug 31 2005 
22:29 Apr 30, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5233.IH
H5233
cchase on PROD1PC60 with BILLS
‘‘(i) adjustment to the number of 
vouchers under lease shall be approved if a 
public housing agency demonstrates need 
for renewal of previously issued tenant pro-
tection vouchers or of other authorized 
vouchers to comply with court orders or to 
meet previous commitments to owners for 
project-based vouchers in projects ready 
for occupancy in such calendar year; and 
‘‘(ii) adjustment of voucher costs shall 
be approved if an agency demonstrates— 
‘‘(I) rent increases; 
‘‘(II) utility rate changes; 
‘‘(III) known changes in subsidy 
costs due to enhanced vouchers under 
subsection (t), portability under sub-
section (r), increased average unit 
size, or approval of higher subsidy 
payments for people with disabilities 
due to reasonable accommodation; 
‘‘(IV) change in average tenant 
income, including adjustments needed 
for areas with seasonal employment if 
income variations are not adequately 
VerDate Aug 31 2005 
22:29 Apr 30, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5233.IH
H5233
cchase on PROD1PC60 with BILLS