H. R. 2029—651 
(7) is not otherwise individually eligible, or has parents 
who, individually or jointly, are not eligible, to receive assist-
ance under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f). 
(b) For purposes of determining the eligibility of a person 
to receive assistance under section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f), any financial assistance (in excess 
of amounts received for tuition and any other required fees and 
charges) that an individual receives under the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or 
an institution of higher education (as defined under the Higher 
Education Act of 1965 (20 U.S.C. 1002)), shall be considered income 
to that individual, except for a person over the age of 23 with 
dependent children. 
SEC. 214. The funds made available for Native Alaskans under 
the heading ‘‘Native American Housing Block Grants’’ in title II 
of this Act shall be allocated to the same Native Alaskan housing 
block grant recipients that received funds in fiscal year 2005. 
SEC. 215. Notwithstanding the limitation in the first sentence 
of section 255(g) of the National Housing Act (12 U.S.C. 1715z– 
20(g)), the Secretary of Housing and Urban Development may, 
until September 30, 2016, insure and enter into commitments to 
insure mortgages under such section 255. 
SEC. 216. Notwithstanding any other provision of law, in fiscal 
year 2016, in managing and disposing of any multifamily property 
that is owned or has a mortgage held by the Secretary of Housing 
and Urban Development, and during the process of foreclosure 
on any property with a contract for rental assistance payments 
under section 8 of the United States Housing Act of 1937 or other 
Federal programs, the Secretary shall maintain any rental assist-
ance payments under section 8 of the United States Housing Act 
of 1937 and other programs that are attached to any dwelling 
units in the property. To the extent the Secretary determines, 
in consultation with the tenants and the local government, that 
such a multifamily property owned or held by the Secretary is 
not feasible for continued rental assistance payments under such 
section 8 or other programs, based on consideration of (1) the 
costs of rehabilitating and operating the property and all available 
Federal, State, and local resources, including rent adjustments 
under section 524 of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (‘‘MAHRAA’’) and (2) environmental 
conditions that cannot be remedied in a cost-effective fashion, the 
Secretary may, in consultation with the tenants of that property, 
contract for project-based rental assistance payments with an owner 
or owners of other existing housing properties, or provide other 
rental assistance. The Secretary shall also take appropriate steps 
to ensure that project-based contracts remain in effect prior to 
foreclosure, subject to the exercise of contractual abatement rem-
edies to assist relocation of tenants for imminent major threats 
to health and safety after written notice to and informed consent 
of the affected tenants and use of other available remedies, such 
as partial abatements or receivership. After disposition of any multi-
family property described under this section, the contract and allow-
able rent levels on such properties shall be subject to the require-
ments under section 524 of MAHRAA.
H. R. 2029—652 
SEC. 217. The commitment authority funded by fees as provided 
under the heading ‘‘Community Development Loan Guarantees Pro-
gram Account’’ may be used to guarantee, or make commitments 
to guarantee, notes, or other obligations issued by any State on 
behalf of non-entitlement communities in the State in accordance 
with the requirements of section 108 of the Housing and Community 
Development Act of 1974: Provided, That any State receiving such 
a guarantee or commitment shall distribute all funds subject to 
such guarantee to the units of general local government in non- 
entitlement areas that received the commitment. 
SEC. 218. Public housing agencies that own and operate 400 
or fewer public housing units may elect to be exempt from any 
asset management requirement imposed by the Secretary of 
Housing and Urban Development in connection with the operating 
fund rule: Provided, That an agency seeking a discontinuance of 
a reduction of subsidy under the operating fund formula shall 
not be exempt from asset management requirements. 
SEC. 219. With respect to the use of amounts provided in 
this Act and in future Acts for the operation, capital improvement 
and management of public housing as authorized by sections 9(d) 
and 9(e) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(d) and (e)), the Secretary shall not impose any requirement 
or guideline relating to asset management that restricts or limits 
in any way the use of capital funds for central office costs pursuant 
to section 9(g)(1) or 9(g)(2) of the United States Housing Act of 
1937 (42 U.S.C. 1437g(g)(1), (2)): Provided, That a public housing 
agency may not use capital funds authorized under section 9(d) 
for activities that are eligible under section 9(e) for assistance 
with amounts from the operating fund in excess of the amounts 
permitted under section 9(g)(1) or 9(g)(2). 
SEC. 220. No official or employee of the Department of Housing 
and Urban Development shall be designated as an allotment holder 
unless the Office of the Chief Financial Officer has determined 
that such allotment holder has implemented an adequate system 
of funds control and has received training in funds control proce-
dures and directives. The Chief Financial Officer shall ensure that 
there is a trained allotment holder for each HUD sub-office under 
the accounts ‘‘Executive Offices’’ and ‘‘Administrative Support 
Offices,’’ as well as each account receiving appropriations for ‘‘Pro-
gram Office Salaries and Expenses’’, ‘‘Government National Mort-
gage Association—Guarantees of Mortgage-Backed Securities Loan 
Guarantee Program Account’’, and ‘‘Office of Inspector General’’ 
within the Department of Housing and Urban Development. 
SEC. 221. The Secretary of the Department of Housing and 
Urban Development shall, for fiscal year 2016, notify the public 
through the Federal Register and other means, as determined 
appropriate, of the issuance of a notice of the availability of assist-
ance or notice of funding availability (NOFA) for any program 
or discretionary fund administered by the Secretary that is to 
be competitively awarded. Notwithstanding any other provision of 
law, for fiscal year 2016, the Secretary may make the NOFA avail-
able only on the Internet at the appropriate Government web site 
or through other electronic media, as determined by the Secretary. 
SEC. 222. Payment of attorney fees in program-related litigation 
shall be paid from the individual program office and Office of 
General Counsel salaries and expenses appropriations. The annual 
budget submission for the program offices and the Office of General
H. R. 2029—653 
Counsel shall include any such projected litigation costs for attorney 
fees as a separate line item request. No funds provided in this 
title may be used to pay any such litigation costs for attorney 
fees until the Department submits for review a spending plan 
for such costs to the House and Senate Committees on Appropria-
tions. 
SEC. 223. The Secretary is authorized to transfer up to 10 
percent or $4,000,000, whichever is less, of funds appropriated 
for any office under the heading ‘‘Administrative Support Offices’’ 
or for any account under the general heading ‘‘Program Office 
Salaries and Expenses’’ to any other such office or account: Pro-
vided, That no appropriation for any such office or account shall 
be increased or decreased by more than 10 percent or $4,000,000, 
whichever is less, without prior written approval of the House 
and Senate Committees on Appropriations: Provided further, That 
the Secretary shall provide notification to such Committees three 
business days in advance of any such transfers under this section 
up to 10 percent or $4,000,000, whichever is less. 
SEC. 224. The Disaster Housing Assistance Programs, adminis-
tered by the Department of Housing and Urban Development, shall 
be considered a ‘‘program of the Department of Housing and Urban 
Development’’ under section 904 of the McKinney Act for the pur-
pose of income verifications and matching. 
SEC. 225. (a) The Secretary of Housing and Urban Development 
shall take the required actions under subsection (b) when a multi-
family housing project with a section 8 contract or contract for 
similar project-based assistance: 
(1) receives a Real Estate Assessment Center (REAC) score 
of 30 or less; or 
(2) receives a REAC score between 31 and 59 and: 
(A) fails to certify in writing to HUD within 60 days 
that all deficiencies have been corrected; or 
(B) receives consecutive scores of less than 60 on REAC 
inspections. 
Such requirements shall apply to insured and noninsured projects 
with assistance attached to the units under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f), but do not apply 
to such units assisted under section 8(o)(13) (42 U.S.C. 1437f(o)(13)) 
or to public housing units assisted with capital or operating funds 
under section 9 of the United States Housing Act of 1937 (42 
U.S.C. 1437g). 
(b) The Secretary shall take the following required actions 
as authorized under subsection (a): 
(1) The Secretary shall notify the owner and provide an 
opportunity for response within 30 days. If the violations 
remain, the Secretary shall develop a Compliance, Disposition 
and Enforcement Plan within 60 days, with a specified time-
table for correcting all deficiencies. The Secretary shall provide 
notice of the Plan to the owner, tenants, the local government, 
any mortgagees, and any contract administrator. 
(2) At the end of the term of the Compliance, Disposition 
and Enforcement Plan, if the owner fails to fully comply with 
such plan, the Secretary may require immediate replacement 
of project management with a management agent approved 
by the Secretary, and shall take one or more of the following 
actions, and provide additional notice of those actions to the 
owner and the parties specified above:
H. R. 2029—654 
(A) impose civil money penalties; 
(B) abate the section 8 contract, including partial 
abatement, as determined by the Secretary, until all defi-
ciencies have been corrected; 
(C) pursue transfer of the project to an owner, approved 
by the Secretary under established procedures, which will 
be obligated to promptly make all required repairs and 
to accept renewal of the assistance contract as long as 
such renewal is offered; or 
(D) seek judicial appointment of a receiver to manage 
the property and cure all project deficiencies or seek a 
judicial order of specific performance requiring the owner 
to cure all project deficiencies. 
(c) The Secretary shall also take appropriate steps to ensure 
that project-based contracts remain in effect, subject to the exercise 
of contractual abatement remedies to assist relocation of tenants 
for imminent major threats to health and safety after written 
notice to and informed consent of the affected tenants and use 
of other remedies set forth above. To the extent the Secretary 
determines, in consultation with the tenants and the local govern-
ment, that the property is not feasible for continued rental assist-
ance payments under such section 8 or other programs, based 
on consideration of (1) the costs of rehabilitating and operating 
the property and all available Federal, State, and local resources, 
including rent adjustments under section 524 of the Multifamily 
Assisted Housing Reform and Affordability Act of 1997 (‘‘MAHRAA’’) 
and (2) environmental conditions that cannot be remedied in a 
cost-effective fashion, the Secretary may, in consultation with the 
tenants of that property, contract for project-based rental assistance 
payments with an owner or owners of other existing housing prop-
erties, or provide other rental assistance. The Secretary shall report 
semi-annually on all properties covered by this section that are 
assessed through the Real Estate Assessment Center and have 
physical inspection scores of less than 30 or have consecutive phys-
ical inspection scores of less than 60. The report shall include: 
(1) The enforcement actions being taken to address such 
conditions, including imposition of civil money penalties and 
termination of subsidies, and identify properties that have such 
conditions multiple times; and 
(2) Actions that the Department of Housing and Urban 
Development is taking to protect tenants of such identified 
properties. 
SEC. 226. None of the funds made available by this Act, or 
any other Act, for purposes authorized under section 8 (only with 
respect to the tenant-based rental assistance program) and section 
9 of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.), may be used by any public housing agency for any amount 
of salary, including bonuses, for the chief executive officer of which, 
or any other official or employee of which, that exceeds the annual 
rate of basic pay payable for a position at level IV of the Executive 
Schedule at any time during any public housing agency fiscal year 
2016. 
SEC. 227. None of the funds in this Act may be available 
for the doctoral dissertation research grant program at the Depart-
ment of Housing and Urban Development. 
SEC. 228. Section 24 of the United States Housing Act of 
1937 (42 U.S.C. 1437v) is amended—