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agency and how the grant will result in a revi-
talized site that will enhance the neighborhood in
which the development is located;
(B) the capability and record of the appli-
cant public housing agency, or any alternative
management agency for the agency, for manag-
ing large-scale redevelopment or modernization
projects, meeting construction timetables, and ob-
ligating amounts in a timely manner;
(C) the extent to which the public housing
agency could undertake such activities without a
grant under this section;
(D) the extent of involvement of residents,
State and local governments, private service pro-
viders, financing entities, and developers, in the
development of a revitalization program for the
development; and
(E) the amount of funds and other resources
to be leveraged by the grant.
The Secretary shall give preference in selection to any
public housing agency that has been awarded a plan-
ning grant under section 24(c) of the United States
Housing Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of this Act).
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(f) COST LIMITS.—Subject to the provisions of this sec-
tion, the Secretary—
(1) shall establish cost limits on eligible activities
under this section sufficient to provide for effective re-
vitalization programs; and
(2) may establish other cost limits on eligible ac-
tivities under this section.
(g) DEMOLITION AND REPLACEMENT.—Any severely
distressed public housing demolished or disposed of pursu-
ant to a revitalization plan and any public housing pro-
duced in lieu of such severely distressed housing, shall be
subject to the provisions of section 261.
(h) ADMINISTRATION BY OTHER ENTITIES.—The Sec-
retary may require a grantee under this section to make
arrangements satisfactory to the Secretary for use of an en-
tity other than the public housing agency to carry out ac-
tivities assisted under the revitalization plan, if the Sec-
retary determines that such action will help to effectuate
the purposes of this section.
(i) WITHDRAWAL OF FUNDING.—If a grantee under
this section does not proceed expeditiously, in the deter-
mination of the Secretary, the Secretary shall withdraw
any grant amounts under this section that have not been
obligated by the public housing agency. The Secretary shall
redistribute any withdrawn amounts to one or more public
160
housing agencies eligible for assistance under this section
or to one or more other entities capable of proceeding expe-
ditiously in the same locality in carrying out the revitaliza-
tion plan of the original grantee.
(j) DEFINITIONS.—For purposes of this section, the fol-
lowing definitions shall apply:
(1) APPLICANT.—The term ‘‘applicant’’ means—
(A) any public housing agency that is not
designated as troubled pursuant to section
533(a);
(B) any public housing agency or private
housing management agent selected, or receiver
appointed pursuant, to section 545; and
(C) any public housing agency that is des-
ignated as troubled pursuant to section 533(a)
that—
(i) is so designated principally for rea-
sons that will not affect the capacity of the
agency to carry out a revitalization pro-
gram;
(ii) is making substantial progress to-
ward eliminating the deficiencies of the
agency; or
161
(iii) is otherwise determined by the
Secretary to be capable of carrying out a re-
vitalization program.
(2) PRIVATE
NONPROFIT
CORPORATION.—The
term ‘‘private nonprofit organization’’ means any
private nonprofit organization (including a State or
locally chartered nonprofit organization) that—
(A) is incorporated under State or local
law;
(B) has no part of its net earnings inuring
to the benefit of any member, founder, contribu-
tor, or individual;
(C) complies with standards of financial ac-
countability acceptable to the Secretary; and
(D) has among its purposes significant ac-
tivities related to the provision of decent housing
that is affordable to very low-income families.
(3) SEVERELY DISTRESSED PUBLIC HOUSING.—
The term ‘‘severely distressed public housing’’ means
a public housing development (or building in a devel-
opment) that—
(A) requires major redesign, reconstruction
or redevelopment, or partial or total demolition,
to correct serious deficiencies in the original de-
sign (including inappropriately high population
162
density), deferred maintenance, physical deterio-
ration or obsolescence of major systems and other
deficiencies in the physical plant of the develop-
ment;
(B) is a significant contributing factor to
the physical decline of and disinvestment by
public and private entities in the surrounding
neighborhood;
(C)(i) is occupied predominantly by fami-
lies who are very low-income families with chil-
dren, are unemployed, and dependent on various
forms of public assistance; and
(ii) has high rates of vandalism and crimi-
nal activity (including drug-related criminal ac-
tivity) in comparison to other housing in the
area;
(D) cannot be revitalized through assistance
under other programs, such as the public housing
block grant program under this title, or the pro-
grams under sections 9 and 14 of the United
States Housing Act of 1937 (as in effect before
the effective date of the repeal under section
601(b) of this Act), because of cost constraints
and inadequacy of available amounts; and
163
(E) in the case of individual buildings, is,
in the Secretary’s determination, sufficiently
separable from the remainder of the development
of which the building is part to make use of the
building feasible for purposes of this section.
(4) SUPPORTIVE SERVICES.—The term ‘‘support-
ive services’’ includes all activities that will promote
upward mobility, self-sufficiency, and improved qual-
ity of life for the residents of the public housing devel-
opment involved, including literacy training, job
training, day care, and economic development activi-
ties.
(k) ANNUAL REPORT.—The Secretary shall submit to
the Congress an annual report setting forth—
(1) the number, type, and cost of public housing
units revitalized pursuant to this section;
(2) the status of developments identified as se-
verely distressed public housing;
(3) the amount and type of financial assistance
provided under and in conjunction with this section;
and
(4) the recommendations of the Secretary for
statutory and regulatory improvements to the pro-
gram established by this section.
(l) FUNDING.—
170
This subsection may not be construed to require production
or revitalization, and ownership, by the same entity.
SEC. 273. MIXED-FINANCE HOUSING PLAN.
The Secretary may approve a plan for production or
revitalization of mixed-finance housing under this subtitle
only if the Secretary determines that—
(1) the public housing agency has the ability, or
has provided for an entity under section 272(b) that
has the ability, to use the amounts provided for use
under the plan for such housing, effectively, either di-
rectly or through contract management;
(2) the plan provides permanent financing com-
mitments from a sufficient number of sources other
than the public housing agency, which may include
banks and other conventional lenders, States, units of
general local government, State housing finance agen-
cies, secondary market entities, and other financial
institutions;
(3) the plan provides for use of amounts pro-
vided under section 271 by the public housing agency
for financing the mixed-income housing in the form
of grants, loans, advances, or other debt or equity in-
vestments, including collateral or credit enhancement
of bond issued by the agency for production or revital-
ization of the development; and
225
(d) HOUSING QUALITY STANDARDS.—
(1) COMPLIANCE.—A participating jurisdiction
shall ensure that housing assisted with amounts re-
ceived pursuant to this title is maintained in a con-
dition that complies—
(A) in the case of housing located in a juris-
diction which has in effect laws, regulations,
standards, or codes regarding habitability of res-
idential dwellings, with such applicable laws,
regulations, standards, or codes; or
(B) in the case of housing located in a ju-
risdiction which does not have in effect laws, reg-
ulations, standards, or codes described in para-
graph (1), with the housing quality standards es-
tablished under paragraph (2).
(2) FEDERAL HOUSING QUALITY STANDARDS.—
The Secretary shall establish housing quality stand-
ards under this paragraph that ensure that dwelling
units assisted under this title are safe, clean, and
healthy. Such standards shall include requirements
relating to habitability, including maintenance,
health and sanitation factors, condition, and con-
struction of dwellings, and shall, to the greatest extent
practicable, be consistent with the standards estab-
lished under sections 232(b) and 328(c). The Sec-