H. R. 4194—148
(2) by striking the third sentence and all that follows
and inserting the following:
‘‘(B) In the case of owner who has requested that the Secretary
renew the contract, the owner’s notice under subparagraph (A)
to the tenants shall include statements that—
‘‘(i) the owner currently has a contract with the Department
of Housing and Urban Development that pays the Government’s
share of the tenant’s rent and the date on which the contract
will expire;
‘‘(ii) the owner intends to renew the contract for another
year;
‘‘(iii) renewal of the contract may depend upon the Congress
making funds available for such renewal;
‘‘(iv) the owner is required by law to notify tenants of
the possibility that the contract may not be renewed if Congress
does not provide funding for such renewals;
‘‘(v) in the event of nonrenewal, the Department of Housing
and Urban Development will provide tenant-based rental assist-
ance to all eligible residents, enabling them to choose the
place they wish to rent; and
‘‘(vi) the notice itself does not indicate an intent to termi-
nate the contract by either the owner or the Department of
Housing and Urban Development, provided there is Congres-
sional approval of funding availability.
‘‘(C) Notwithstanding the preceding provisions of this para-
graph, if the owner agrees to a 5-year contract renewal offered
by the Secretary, payments under which shall be subject to the
availability of appropriations for any year, the owner shall provide
a written notice to the Secretary and the tenants not less than
180 days before the termination of such contract. In the event
the owner does not provide the 180-day notice required in the
immediately preceding sentence, the owner may not evict the ten-
ants or increase the tenants’ rent payment until such time as
the owner has provided the 180-day notice and such period has
elapsed. The Secretary may allow the owner to renew the terminat-
ing contract for a period of time sufficient to give tenants 180
days of advance notice under such terms and conditions as the
Secretary may require.
‘‘(D) Any notice under this paragraph shall also comply with
any additional requirements established by the Secretary.
‘‘(E) For purposes of this paragraph, the term ‘termination’
means the expiration of the assistance contract or an owner’s refusal
to renew the assistance contract, and such term shall include termi-
nation of the contract for business reasons.’’.
(c) MULTIFAMILY ASSISTED HOUSING REFORM
AND AFFORD-
ABILITY ACT OF 1997.—Section 514(d) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended by inserting at the end the following new sen-
tences: ‘In addition, if after giving the notice required in the first
sentence, an owner determines to terminate a contract, an owner
shall provide an additional written notice with respect to the termi-
nation, in a form prescribed by the Secretary, not less than 120
days prior to the termination. In the event the owner does not
provide the 120-day notice required in the preceding sentence,
the owner may not evict the tenants or increase the tenants’ rent
payment until such time as the owner has provided the 120-day
notice and such period has elapsed. The Secretary may allow the
H. R. 4194—149
owner to renew the terminating contract for a period of time suffi-
cient to give tenants 120 days of advance notice in accordance
with section 524 of this Act.’’.
SEC. 550. TECHNICAL AND CONFORMING AMENDMENTS.
(a) LOWER INCOME HOUSING ASSISTANCE.—Section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) is amended—
(1) in subsection (a), by striking the second and third
sentences;
(2) in subsection (b)—
(A) in the subsection heading, by striking ‘‘RENTAL
CERTIFICATES AND’’; and
(B) in the first undesignated paragraph—
(i) by striking ‘‘The Secretary’’ and inserting the
following:
‘‘(1) IN GENERAL.—The Secretary’’; and
(ii) by striking the second sentence;
(3) in subsection (c)—
(A) in paragraph (3)—
(i) by striking ‘‘(A)’’; and
(ii) by striking subparagraph (B);
(B) in the first sentence of paragraph (4), by striking
‘‘or by a family that qualifies to receive’’ and all that
follows through ‘‘1990’’;
(C) by striking paragraphs (5) and (7); and
(D) redesignating paragraph (6) as paragraph (5);
(4) in subsection (d)(2)—
(A) in subparagraph (A), by striking the third sentence
and all that follows through the end of the subparagraph;
(B) in subparagraph (H), by striking ‘‘(H)’’ and all
that follows through ‘‘owner’’ and inserting ‘‘(H) An owner’’;
and
(C) by striking subparagraphs (B) through (E) and
redesignating subparagraphs (F) through (H) (as amended
by subparagraph (B) of this paragraph) as subparagraphs
(B) through (D), respectively;
(5) in subsection (f )(7)—
(A) by striking ‘‘(b) or’’; and
(B) by inserting before the period the following: ‘‘and
that provides for the eligible family to select suitable hous-
ing and to move to other suitable housing’’; and
(6) by striking subsection ( j);
(7) by striking subsection (n);
(8) in subsection (u)—
(A) in paragraph (2), by striking ‘‘, certificates’’; and
(B) by striking ‘‘certificates or’’ each place that term
appears; and
(9) in subsection (x)(2), by striking ‘‘housing certificate
assistance’’ and inserting ‘‘tenant-based assistance’’.
(b) HOPWA GRANTS FOR COMMUNITY RESIDENCES AND SERV-
ICES.—Section 861(b)(1)(D) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12910(b)(1)(D)) is amended by
striking ‘‘certificates or vouchers’’ and inserting ‘‘assistance’’.
(c) SECTION 8 CERTIFICATES AND VOUCHERS.—Section 931 of
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437c note) is amended by striking ‘‘assistance under the certificate
and voucher programs under sections 8(b) and (o) of such Act’’
H. R. 4194—150
and inserting ‘‘tenant-based assistance under section 8 of the United
States Housing Act of 1937’’.
(d) ASSISTANCE FOR DISPLACED RESIDENTS.—Section 223(a) of
the Housing and Community Development Act of 1987 (12 U.S.C.
4113(a)) is amended by striking ‘‘assistance under the certificate
and voucher programs under sections 8(b) and 8(o)’’ and inserting
‘‘tenant-based assistance under section 8’’.
(e) RURAL HOUSING PRESERVATION GRANTS.—Section 533(a) of
the Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the
second sentence by striking ‘‘assistance payments as provided by
section 8(o)’’ and inserting ‘‘tenant-based assistance as provided
under section 8’’.
(f ) REPEAL OF MOVING TO OPPORTUNITIES FOR FAIR HOUSING
DEMONSTRATION.—Section 152 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note) is repealed.
(g) 
ASSISTANCE
FOR
TROUBLED
MULTIFAMILY
HOUSING
PROJECTS.—Section 201(m)(2)(A) of the Housing and Community
Development Amendments of 1978 (12 U.S.C. 1715z–1a(m)(2)(A))
is amended by striking ‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’.
SEC. 551. FUNDING AND ALLOCATION.
Section 213 of the Housing and Community Development Act
of 1974 (42 U.S.C. 1439) is amended—
(1) by striking subsection (c); and
(2) in subsection (d)—
(A) in paragraph (1)(A)—
(i) in clause (i), by adding at the end the following
new sentence: ‘‘Amounts for tenant-based assistance
under section 8(o) of the United States Housing Act
of 1937 may not be provided to any public housing
agency that has been disqualified from providing such
assistance.’’; and
(ii) in clause (ii), by striking ‘‘8(b)(1)’’ each place
it appears and inserting ‘‘8(o)’’;
(B) by striking paragraph (2); and
(C) by redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
SEC. 552. TREATMENT OF COMMON AREAS.
Section 8(d) of the United States Housing Act of 1937 (42
U.S.C. 1437f(d)), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following new
paragraph:
‘‘(6) TREATMENT OF COMMON AREAS.—The Secretary may not
provide any assistance amounts pursuant to an existing contract
for project-based assistance under this section for a housing project
and may not enter into a new or renewal contract for such assistance
for a project unless the owner of the project provides consent,
to such local law enforcement agencies as the Secretary determines
appropriate, for law enforcement officers of such agencies to enter
common areas of the project at any time and without advance
notice upon a determination of probable cause by such officers
that criminal activity is taking place in such areas.’’.
SEC. 553. PORTABILITY.
Section 8(r) of the United States Housing Act of 1937 (42
U.S.C. 1437f(r)) is amended—
(1) in paragraph (2), by striking the last sentence;
H. R. 4194—151
(2) in paragraph (3))—
(A) by striking ‘‘(b) or’’; and
(B) by adding at the end the following: ‘‘The Secretary
shall establish procedures for the compensation of public
housing agencies that issue vouchers to families that move
into or out of the jurisdiction of the public housing agency
under portability procedures. The Secretary may reserve
amounts available for assistance under subsection (o) to
compensate those public housing agencies.’’;
(3) by striking ‘‘(r)’’ and all that follows through the end
of paragraph (1) and inserting the following:
‘‘(r) PORTABILITY.—(1) IN GENERAL.—(A) Any family receiving
tenant-based assistance under subsection (o) may receive such
assistance to rent an eligible dwelling unit if the dwelling unit
to which the family moves is within any area in which a program
is being administered under this section.
‘‘(B)(i) Notwithstanding subparagraph (A) and subject to any
exceptions established under clause (ii) of this subparagraph, a
public housing agency may require that any family not living within
the jurisdiction of the public housing agency at the time the family
applies for assistance from the agency shall, during the 12-month
period beginning on the date of initial receipt of housing assistance
made available on behalf of the family from such agency, lease
and occupy an eligible dwelling unit located within the jurisdiction
served by the agency.
‘‘(ii) The Secretary may establish such exceptions to the author-
ity of public housing agencies established under clause (i).’’; and
(5) by adding at the end the following new paragraph:
‘‘(5) LEASE VIOLATIONS.—A family may not receive a voucher
from a public housing agency and move to another jurisdiction
under the tenant-based assistance program if the family has moved
out of the assisted dwelling unit of the family in violation of a
lease.’’.
SEC. 554. LEASING TO VOUCHER HOLDERS.
Notwithstanding section 203(d) of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (as contained in section 101(e)
of the Omnibus Consolidated Rescissions and Appropriations Act
of 1996 (Public Law 104–134; 42 U.S.C. 1437f note)), section 8
of the United States Housing Act of 1937 (42 U.S.C. 1437f) is
amended by striking subsection (t). This section shall apply begin-
ning upon, and the amendment made by this section is made
on, and shall apply beginning upon, the date of the enactment
of this Act.
SEC. 555. HOMEOWNERSHIP OPTION.
(a) IN GENERAL.—Section 8(y) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(y)) is amended—
(1) in paragraph (1)—
(A) in the matter preceding subparagraph (A), by strik-
ing ‘‘A family receiving’’ and all that follows through ‘‘if
the family’’ and inserting the following: ‘‘A public housing
agency providing tenant-based assistance on behalf of an
eligible family under this section may provide assistance
for an eligible family that purchases a dwelling unit (includ-
ing a unit under a lease-purchase agreement) that will
H. R. 4194—152
be owned by 1 or more members of the family, and will
be occupied by the family, if the family’’;
(B) in subparagraph (A), by inserting before the semi-
colon ‘‘, or owns or is acquiring shares in a cooperative’’;
and
(C) in subparagraph (B)—
(i) by striking ‘‘(i) participates’’ and all that follows
through ‘‘(ii) demonstrates’’ and inserting ‘‘dem-
onstrates’’; and
(ii) by inserting ‘‘, except that the Secretary may
provide for the consideration of public assistance in
the case of an elderly family or a disabled family’’
after ‘‘other than public assistance’’;
(2) by striking paragraph (2) and inserting the following
new paragraph:
‘‘(2) DETERMINATION OF AMOUNT OF ASSISTANCE.—
‘‘(A) MONTHLY
EXPENSES
NOT
EXCEEDING
PAYMENT
STANDARD.—If the monthly homeownership expenses, as
determined in accordance with requirements established
by the Secretary, do not exceed the payment standard,
the monthly assistance payment shall be the amount by
which the homeownership expenses exceed the highest of
the following amounts, rounded to the nearest dollar:
‘‘(i) 30 percent of the monthly adjusted income
of the family.
‘‘(ii) 10 percent of the monthly income of the family.
‘‘(iii) If the family is receiving payments for welfare
assistance from a public agency, and a portion of those
payments, adjusted in accordance with the actual hous-
ing costs of the family, is specifically designated by
that agency to meet the housing costs of the family,
the portion of those payments that is so designated.
‘‘(B) MONTHLY
EXPENSES
EXCEED
PAYMENT
STAND-
ARD.—If the monthly homeownership expenses, as deter-
mined in accordance with requirements established by the
Secretary, exceed the payment standard, the monthly
assistance payment shall be the amount by which the
applicable payment standard exceeds the highest of the
amounts under clauses (i), (ii), and (iii) of subparagraph
(A).’’;
(3) by striking paragraphs (3), (4), and (5) and inserting
the following new paragraphs:
‘‘(3) INSPECTIONS AND CONTRACT CONDITIONS.—
‘‘(A) IN GENERAL.—Each contract for the purchase of
a unit to be assisted under this section shall—
‘‘(i) provide for pre-purchase inspection of the unit
by an independent professional; and
‘‘(ii) require that any cost of necessary repairs be
paid by the seller.
‘‘(B) 
ANNUAL
INSPECTIONS
NOT
REQUIRED.—The
requirement under subsection (o)(8)(A)(ii) for annual
inspections shall not apply to units assisted under this
section.
‘‘(4) OTHER AUTHORITY OF THE SECRETARY.—The Secretary
may—
‘‘(A) limit the term of assistance for a family assisted
under this subsection; and
H. R. 4194—153
‘‘(B) modify the requirements of this subsection as the
Secretary determines to be necessary to make appropriate
adaptations for lease-purchase agreements.’’; and
(4) by redesignating paragraphs (6), (7) (as previously
amended by this Act), and (8) as paragraphs (5), (6), and
(7), respectively.
(b) DEMONSTRATION PROGRAM.—
(1) IN GENERAL.—With the consent of the affected public
housing agencies, the Secretary may carry out (or contract
with 1 or more entities to carry out) a demonstration program
under section 8(y) of the United States Housing Act of 1937
(42 U.S.C. 1437f(y)) to expand homeownership opportunities
for low-income families.
(2) REPORT.—The Secretary shall report annually to Con-
gress on activities conducted under this subsection.
(c) APPLICABILITY.—This section shall take effect on, and the
amendments made by this section are made on, and shall apply
beginning upon, the date of the enactment of this Act.
SEC. 556. RENEWALS.
(a) IN GENERAL.—Section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f), as amended by the preceding provisions
of this Act, is further amended by adding at the end the following
new subsection:
‘‘(dd) 
TENANT-BASED
CONTRACT
RENEWALS.—Subject 
to
amounts provided in appropriation Acts, starting in fiscal year
1999, the Secretary shall renew all expiring tenant-based annual
contribution contracts under this section by applying an inflation
factor based on local or regional factors to an allocation baseline.
The allocation baseline shall be calculated by including, at a mini-
mum, amounts sufficient to ensure continued assistance for the
actual number of families assisted as of October 1, 1997, with
appropriate upward adjustments for incremental assistance and
additional families authorized subsequent to that date.’’.
(b) IMPLEMENTATION.—The Secretary of Housing and Urban
Development shall implement the provision added by the amend-
ment made by subsection (a) through notice, not later than Decem-
ber 31, 1998, and shall issue final regulations which shall be devel-
oped pursuant to the procedures for issuance of regulations under
the negotiated rulemaking procedure under subchapter III of chap-
ter 5 of title 5, United States Code, not later than one year after
the date of the enactment of this Act.
SEC. 557. MANUFACTURED HOUSING DEMONSTRATION PROGRAM.
(a) IN GENERAL.—The Secretary of Housing and Urban Develop-
ment shall carry out a program during fiscal years 1999, 2000,
and 2001 to demonstrate the effectiveness of providing, directly
to eligible families that own manufactured homes and rent real
property on which their homes are located, tenant-based assistance
for the rental of such property that would otherwise be provided
directly to the owners of such real property under section 8(o)(12)
of the United States Housing Act of 1937.
(b) REQUIREMENTS.—The demonstration program under this
section shall be subject to the following requirements:
(1) SCOPE.—The Secretary of Housing and Urban Develop-
ment shall carry out the demonstration program with respect
H. R. 4194—154
to the Housing Authority of the County of San Diego, in Califor-
nia, and the Housing Authority of the City of San Diego,
in California.
(2) ELIGIBLE FAMILIES.—Under the demonstration program,
each public housing agency shall provide tenant-based assist-
ance under section 8(o) of the United States Housing Act of
1937 on behalf of eligible families who rent real property on
which their manufactured homes are located and which is
owned by an owner who has refused to participate in the
section 8 program.
(3) PARTICIPATION
ARRANGEMENTS.—Each public housing
agency participating in the demonstration program shall enter
into arrangements with families assisted under the program
providing for their participation in the program and may, to
the extent authorized by the Secretary, continue to provide
assistance in the same manner as under the demonstration
program after its conclusion to such participating families.
(4) WAIVER
OF
OTHER
REQUIREMENTS.—Under the dem-
onstration program, the Secretary may waive, or specify alter-
native requirements for, requirements established by or under
section 8 of the United States Housing Act of 1937 relating
to the provision of assistance under subsection ( j) or (o)(12)
of such section.
(c) REPORT.—Not later than March 31, 2002, the Secretary
shall submit a report to the Congress describing and evaluating
the demonstration program under this section.
(d) EFFECTIVE DATE.—This section shall take effect on the
date of the enactment of this Act.
SEC. 558. AUTHORIZATIONS OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appropriated for
providing public housing agencies with tenant-based housing assist-
ance under section 8 of the United States Housing Act of 1937—
(1) to provide amounts for incremental assistance under
such section 8—
(A) for each of fiscal years 2000 and 2001, the amount
necessary to assist 100,000 incremental dwelling units in
each such fiscal year; and
(B) for each of fiscal years 1999, 2002, and 2003, such
sums as may be necessary; and
(2) such sums as may be necessary for each of fiscal years
1999, 2000, 2001, 2002, and 2003, for—
(A) relocation and replacement housing for units that
are demolished and disposed of from the public housing
inventory (in addition to other amounts that may be avail-
able for such purposes);
(B) relocation of residents of properties that are owned
by the Secretary and being disposed of or that are dis-
continuing section 8 project-based assistance;
(C) the conversion of section 23 projects to assistance
under section 8;
(D) carrying out the family unification program;
(E) relocation of witnesses in connection with efforts
to combat crime in public and assisted housing pursuant
to a request from a law enforcement or prosecution agency;
(F) nonelderly disabled families affected by the des-
ignation of a public housing development under section
H. R. 4194—155
7 of the United States Housing Act of 1937, the establish-
ment of preferences in accordance with section 651 of the
Housing and Community Development Act of 1992, or the
restriction of occupancy to elderly families in accordance
with section 658 of such Act, and to the extent the Secretary
determines that such amount is not needed to fund applica-
tions for such affected families, to other nonelderly disabled
families;
(G) housing vouchers for homeless individuals; and
(H) housing vouchers to compensate public housing
agencies which issue vouchers to families that move into
or out of the jurisdiction of the agency under portability
procedures.
(b) ASSISTANCE FOR DISABLED FAMILIES.—
(1) AUTHORIZATION OF APPROPRIATIONS.—There is author-
ized to be appropriated, for tenant-based assistance under sec-
tion 8 of the United States Housing Act of 1937, to be used
in accordance with paragraph (2), $50,000,000 for fiscal year
2000, and such sums as may be necessary for each subsequent
fiscal year.
(2) USE.—The Secretary shall provide amounts made avail-
able under paragraph (1) to public housing agencies only for
use to provide tenant-based assistance under section 8 of the
United States Housing Act of 1937 for nonelderly disabled
families (including such families relocating pursuant to designa-
tion of a public housing development under 7 of such Act
or to the establishment of occupancy restrictions in accordance
with section 658 of the Housing and Community Development
Act of 1992, and other nonelderly disabled families who have
applied to the agency for assistance under such section 8).
(3) ALLOCATION OF AMOUNTS.—The Secretary shall allocate
and provide amounts made available under paragraph (1) to
public housing agencies as the Secretary determines appro-
priate based on the relative levels of need among the authorities
for assistance for families described in paragraph (1).
(c) EFFECTIVE DATE.—This section shall take effect on the date
of the enactment of this Act.
SEC. 559. RULEMAKING AND IMPLEMENTATION.
(a) INTERIM REGULATIONS.—The Secretary of Housing and
Urban Development shall issue such interim regulations as may
be necessary to implement the amendments made by this subtitle
and other provisions in this title which relate to section 8(o) of
the United States Housing Act of 1937.
(b) FINAL REGULATIONS.—The Secretary shall issue final regula-
tions necessary to implement the amendments made by this subtitle
and other provisions in this title which relate to section 8(o) of
the United States Housing Act of 1937 not later then 1 year after
the date of the enactment of this Act.
(c) FACTORS FOR CONSIDERATION.—Before the publication of
the final regulations under subsection (b), in addition to public
comments invited in connection with the publication of the interim
rule, the Secretary shall—
(1) seek recommendations on the implementation of sec-
tions 8(o)(6)(B), 8(o)(7)(B), and 8(o)(10)(D) of the United States
Housing Act of 1937 and of renewals of expiring tenant-based
assistance from organizations representing—
H. R. 4194—156
(A) State or local public housing agencies;
(B) owners and managers of tenant-based housing
assisted under section 8 of the United States Housing
Act of 1937;
(C) families receiving tenant-based assistance under
section 8 of the United States Housing Act of 1937; and
(D) legal service organizations; and
(2) convene not less than 2 public forums at which the
persons or organizations making recommendations under para-
graph (1) may express views concerning the proposed disposi-
tion of the recommendations.
(d) CONVERSION ASSISTANCE.—
(1) IN GENERAL.—The Secretary may provide for the conver-
sion of assistance under the certificate and voucher programs
under subsections (b) and (o) of section 8 of the United States
Housing Act of 1937, as in effect before the applicability of
the amendments made by this subtitle, to the voucher program
established by the amendments made by this subtitle.
(2) CONTINUED APPLICABILITY.—The Secretary may apply
the provisions of the United States Housing Act of 1937, or
any other provision of law amended by this subtitle, as those
provisions were in effect immediately before the date of the
enactment of this Act (except that such provisions shall be
subject to any amendments to such provisions that may be
contained in title II of this Act), to assistance obligated by
the Secretary before October 1, 1999, for the certificate or
voucher program under section 8 of the United States Housing
Act of 1937, if the Secretary determines that such action is
necessary for simplification of program administration, avoid-
ance of hardship, or other good cause.
(e) EFFECTIVE DATE.—This section shall take effect on the
date of the enactment of this Act.
Subtitle D—Home Rule Flexible Grant
Demonstration
SEC. 561. HOME RULE FLEXIBLE GRANT DEMONSTRATION PROGRAM.
The United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following new title:
‘‘TITLE IV—HOME RULE FLEXIBLE
GRANT DEMONSTRATION
‘‘SEC. 401. PURPOSE.
The purpose of this title is to demonstrate the effectiveness
of authorizing local governments and municipalities, in coordination
with the public housing agencies for such jurisdictions—
‘‘(1) to receive and combine program allocations of covered
housing assistance; and
‘‘(2) to design creative approaches for providing and admin-
istering Federal housing assistance based on the particular
needs of the jurisdictions that—
‘‘(A) provide incentives to low-income families with chil-
dren whose head of the household is employed, seeking