suant to clause (ii) or (iii), respec-
tively, for costs directly associated 
with relocation of the family to a new 
residence, which shall include security 
deposits as necessary and may include 
reimbursements for reasonable moving 
expenses incurred by the household, 
as established by the Secretary. The 
agency may require that a family re-
ceiving assistance for a security de-
posit shall remit, to the extent of such 
assistance, the amount of any security 
deposit refunds made by the owner of 
the dwelling unit for which the lease 
was terminated. 
‘‘(viii) TENANT-CAUSED
DAMAGES.— 
If a public housing agency determines that 
any damage to a dwelling unit that results 
in a failure of the dwelling unit to comply 
with housing quality standards under sub-
paragraph (B), other than any damage re-
sulting from ordinary use, was caused by 
the tenant, any member of the tenant’s 
household, or any guest or other person 
under the tenant’s control, the agency may 
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waive the applicability of this subpara-
graph, except that this clause shall not ex-
onerate a tenant from any liability other-
wise existing under applicable law for dam-
ages to the premises caused by such ten-
ant. 
‘‘(ix) APPLICABILITY.—This subpara-
graph shall apply to any dwelling unit for 
which a housing assistance payments con-
tract is entered into or renewed after the 
date of the effectiveness of the regulations 
implementing this subparagraph.’’. 
(b) EFFECTIVE DATE.—The Secretary of Housing 
and Urban Development shall issue notice or regulations 
to implement subsection (a) of this section and such sub-
section shall take effect upon such issuance. 
SEC. 102. INCOME REVIEWS. 
(a) INCOME REVIEWS FOR PUBLIC HOUSING AND 
SECTION 8 PROGRAMS.—Section 3 of the United States 
Housing Act of 1937 (42 U.S.C. 1437a) is amended— 
(1) in subsection (a)— 
(A) in the second sentence of paragraph 
(1), by striking ‘‘at least annually’’ and insert-
ing ‘‘pursuant to paragraph (6)’’; and 
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(B) by adding at the end the following new 
paragraphs: 
‘‘(6) REVIEWS OF FAMILY INCOME.— 
‘‘(A) FREQUENCY.—Reviews of family in-
come for purposes of this section shall be 
made— 
‘‘(i) in the case of all families, upon 
the initial provision of housing assistance 
for the family; 
‘‘(ii) annually thereafter, except as 
provided in subparagraph (B)(ii); 
‘‘(iii) upon the request of the family, 
at any time the income or deductions 
(under subsection (b)(5)) of the family 
change by an amount that is estimated to 
result in a decrease of 10 percent (or such 
lower amount as the Secretary may, by no-
tice, establish, or permit the public housing 
agency or owner to establish) or more in 
annual adjusted income; and 
‘‘(iv) at any time the income or deduc-
tions (under subsection (b)(5)) of the fam-
ily change by an amount that is estimated 
to result in an increase of 10 percent or 
more in annual adjusted income, or such 
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other amount as the Secretary may by no-
tice establish, except that any increase in 
the earned income of a family shall not be 
considered for purposes of this clause (ex-
cept that earned income may be considered 
if the increase corresponds to previous de-
creases under clause (iii)), except that a 
public housing agency or owner may elect 
not to conduct such review in the last three 
months of a certification period. 
‘‘(B) FIXED-INCOME FAMILIES.— 
‘‘(i) DEFINITIONS.—For purposes of 
this subparagraph, the following definitions 
shall apply: 
‘‘(I) 
ELIGIBLE
FAMILY.—The 
term ‘eligible family’ means a family 
who has an income, as of the most re-
cent review conducted, of which 90 
percent or more consists of fixed in-
come. 
‘‘(II) FIXED INCOME.—The term 
‘fixed income’ means income from— 
‘‘(aa) the supplemental secu-
rity income program under title 
XVI of the Social Security Act, 
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including 
supplementary 
pay-
ments pursuant to an agreement 
for Federal administration under 
section 1616(a) of the Social Se-
curity Act and payments pursu-
ant to an agreement entered into 
under section 212(b) of Public 
Law 93–66; 
‘‘(bb) any payment under 
title II of the Social Security Act; 
‘‘(cc) Federal, State, local, 
and private pension plans; and 
‘‘(dd) other periodic pay-
ments received from annuities, 
insurance 
policies, 
retirement 
funds, disability or death bene-
fits, and other similar types of 
periodic receipts that are of sub-
stantially the same amounts from 
year to year. 
‘‘(ii) SELF-CERTIFICATION
AND
3- 
YEAR
REVIEW
FOR
FIXED-INCOME
FAMI-
LIES.—A public housing agency or owner 
shall not be required to conduct a review 
of an eligible family’s income pursuant to 
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subparagraph (A)(ii) for any year in which 
such eligible family certifies, in accordance 
with such requirements as the Secretary 
shall establish, that the sources of such in-
come have not changed since the previous 
year, except that the public housing agency 
or owner shall conduct a review of each 
such eligible family’s income not less fre-
quently than once every 3 years. 
‘‘(iii) 
INFLATIONARY
ADJUSTMENT 
FOR FIXED INCOME FAMILIES.— 
‘‘(I) IN GENERAL.—In any year 
in which a public housing agency or 
owner does not conduct a review of in-
come for an eligible family pursuant 
to the authority under clause (ii) to 
waive such a review, the income deter-
mination of such eligible family for 
the previous year shall, subject to sub-
clause (II) of this clause, be adjusted 
by applying an inflationary factor as 
the Secretary shall establish by regu-
lation or notice. 
‘‘(II) EXEMPTION FROM ADJUST-
MENT.—A public housing agency or 
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year, taking into consideration any redetermina-
tion of income during such prior year pursuant 
to clause (iii) or (iv) of paragraph (6)(A). 
‘‘(C) OTHER INCOME.—In determining the 
income for any family based on the prior year’s 
income, with respect to prior year calculations 
of income not subject to subparagraph (B), a 
public housing agency or owner may make other 
adjustments as it considers appropriate to re-
flect current income. 
‘‘(D) SAFE
HARBOR.—A public housing 
agency or owner may, to the extent such infor-
mation is available to the public housing agency 
or owner, determine the family’s income prior 
to the application of any deductions based on 
timely income determinations made for pur-
poses of other means-tested Federal public as-
sistance programs (including the program for 
block grants to States for temporary assistance 
for needy families under part A of title IV of 
the Social Security Act, a program for Medicaid 
assistance under a State plan approved under 
title XIX of the Social Security Act, and the 
supplemental nutrition assistance program (as 
such term is defined in section 3 of the Food 
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and Nutrition Act of 2008 (7 U.S.C. 2012)). 
The Secretary shall, in consultation with other 
appropriate Federal agencies, develop proce-
dures to enable public housing agencies and 
owners to have access to such income deter-
minations made by other means-tested Federal 
programs that the Secretary determines to have 
comparable reliability. Exchanges of such infor-
mation shall be subject to the same limitations 
and tenant protections provided under section 
904 of the Stewart B. McKinney Homeless As-
sistance Act Amendments of 1988 (42 U.S.C. 
3544) with respect to information obtained 
under the requirements of section 303(i) of the 
Social Security Act (42 U.S.C. 503(i)). 
‘‘(E) PHA AND OWNER COMPLIANCE.—A 
public housing agency or owner may not be con-
sidered to fail to comply with this paragraph or 
paragraph (6) due solely to any de minimis er-
rors made by the agency or owner in calculating 
family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as sub-
section (d). 
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(b) CERTIFICATION REGARDING HARDSHIP EXCEP-
TION TO MINIMUM MONTHLY RENT.—Not later than the 
expiration of the 6-month period beginning on the date 
of the enactment of this Act, the Secretary of Housing 
and Urban Development shall submit to the Congress a 
certification that the hardship and tenant protection provi-
sions in clause (i) of section 3(a)(3)(B) of the United 
States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(a)(3)(B)(i)) are being enforced at such time and 
that the Secretary will continue to provide due consider-
ation to the hardship circumstances of persons assisted 
under relevant programs of this Act. 
(c) INCOME; ADJUSTED INCOME.—Section 3(b) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437a(b)) is amended by striking paragraphs (4) and (5) 
and inserting the following new paragraphs: 
‘‘(4) INCOME.—The term ‘income’ means, with 
respect to a family, income received from all sources 
by each member of the household who is 18 years 
of age or older or is the head of household or spouse 
of the head of the household, plus unearned income 
by or on behalf of each dependent who is less than 
18 years of age, as determined in accordance with 
criteria prescribed by the Secretary, in consultation 
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with the Secretary of Agriculture, subject to the fol-
lowing requirements: 
‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual in-
come from assets, and profit or loss from a 
business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include— 
‘‘(i) any imputed return on assets, ex-
cept to the extent that net family assets 
exceed $50,000, except that such amount 
(as it may have been previously adjusted) 
shall be adjusted for inflation annually by 
the Secretary in accordance with an infla-
tionary index selected by the Secretary; 
‘‘(ii) any amounts that would be eligi-
ble for exclusion under section 1613(a)(7) 
of the Social Security Act (42 U.S.C. 
1382b(a)(7)); 
‘‘(iii) deferred disability benefits from 
the Department of Veterans Affairs that 
are received in a lump sum amount or in 
prospective monthly amounts; 
‘‘(iv) any expenses related to aid and 
attendance under section 1521 of title 38, 
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United States Code, to veterans who are in 
need of regular aid and attendance; and 
‘‘(v) exclusions from income as estab-
lished by the Secretary by regulation or 
notice, or any amount required by Federal 
law to be excluded from consideration as 
income. 
‘‘(C) EARNED
INCOME
OF
STUDENTS.— 
Such term does not include— 
‘‘(i) earned income, up to an amount 
as the Secretary may by regulation estab-
lish, of any dependent earned during any 
period that such dependent is attending 
school or vocational training on a full-time 
basis; or 
‘‘(ii) any grant-in-aid or scholarship 
amounts related to such attendance used— 
‘‘(I) for the cost of tuition or 
books; or 
‘‘(II) in such amounts as the Sec-
retary may allow, for the cost of room 
and board. 
‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 
Income shall be determined without regard to 
any amounts in or from, or any benefits from, 
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