eral Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4568, 
4569); 
(B) low-income housing tax credits pro-
vided under section 42 of the Internal Revenue 
Code of 1986; 
(C) amounts provided under the commu-
nity development block grant program under 
title I of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5301 et seq.) and 
the HOME investment partnerships program 
under title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 
12721 et seq.); and 
(D) State and local affordable housing 
funds and programs. 
SEC. 18. AGENCY AUTHORITY FOR UTILITY PAYMENTS IN 
CERTAIN CIRCUMSTANCES. 
Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)), as amended by the preceding 
provisions of this Act, is further amended by adding at 
the end the following new paragraph: 
‘‘(22) AUTHORITY OF PUBLIC HOUSING AGEN-
CIES TO MAKE DIRECT PAYMENTS FOR UTILITIES 
WHEN OWNER FAILS TO PAY.— 
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‘‘(A) IN
GENERAL.—If the owner has 
failed to pay for utilities that are the responsi-
bility of the owner under the lease or applicable 
law, the public housing agency is authorized to 
utilize subsidy payments otherwise due the 
owner to pay for continued utility service to 
avoid hardship to program participants. 
‘‘(B) NOTICE.—Before making utility pay-
ments as described in subparagraph (A), the 
public housing agency shall take reasonable 
steps to notify the owner that it intends to 
make payments to a utility provider in lieu of 
payments to the owner, except prior notification 
shall not be required in any case in which the 
unit will be or has been rendered uninhabitable 
due to the termination or threat of termination 
of service, in which case the public housing 
agency shall notify the owner within a reason-
able time after making such payment.’’. 
SEC. 19. PROJECT-BASED PRESERVATION VOUCHERS. 
(a) ENHANCED VOUCHERS.—Section 8(t) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(t)) 
is amended— 
(1) by redesignating paragraph (4) as para-
graph (5); and 
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(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) PRESERVATION PROJECT-BASED VOUCHER 
ASSISTANCE.—Notwithstanding any other provision 
of law, in the case of a multifamily housing project 
with respect to which an eligibility event occurs or 
has occurred, project-based voucher assistance may 
be provided in accordance with subsection (o)(13)(P) 
in lieu of enhanced voucher assistance under this 
subsection. Such project-based voucher assistance 
shall not be subject to the provisions of this sub-
section, except as otherwise specifically provided in 
subsection (o)(13)(P).’’. 
(b) PHA PROJECT-BASED VOUCHER ASSISTANCE.— 
Paragraph (13) of section 8(o) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended 
by the preceding provisions of this Act, is further amended 
by adding at the end the following new subparagraph: 
‘‘(P) PRESERVATION ASSISTANCE.— 
‘‘(i) 
AUTHORITY.—Project-based 
voucher assistance under this paragraph 
shall be made available in accordance with 
this subparagraph for multifamily housing 
projects for which an eligibility event (as 
such term is defined in subsection (t)) oc-
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curs or has occurred and for which en-
hanced voucher assistance would otherwise 
be, or has been, provided under subsection 
(t). Any such assistance shall be in lieu of 
enhanced voucher assistance under sub-
section (t) for tenants residing in the 
project and shall be provided by the Sec-
retary to a public housing agency. 
‘‘(ii) REQUEST
AND
PROVISION.—If 
the owner of a multifamily housing project 
makes a request for project-based voucher 
assistance pursuant to this subparagraph 
for the project to a public housing agency 
that administers a program for assistance 
under subsection (o) for a jurisdiction 
within which the project is located, a con-
tract for assistance under this subpara-
graph shall be provided with respect to the 
project, subject to clause (v). 
‘‘(iii) TIMING, COVERAGE, AND UNIT 
RENTS.— 
‘‘(I) REQUEST
MADE
BEFORE 
ELIGIBILITY EVENT.—In the case of a 
contract for assistance under this sub-
paragraph with respect to a project 
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that is requested prior to the occur-
rence of the eligibility event, the con-
tract for assistance shall be provided, 
subject to clause (v), upon the occur-
rence of the eligibility event. Such 
contract shall cover all dwelling units 
in the project for which enhanced 
voucher assistance under subsection 
(t) would otherwise be provided. 
‘‘(II) REQUEST
MADE
AFTER 
ISSUANCE
OF
ENHANCED
VOUCH-
ERS.—In the case of a contract for 
assistance under this subparagraph 
with respect to a project that is re-
quested after the issuance of enhanced 
vouchers under subsection (t) for the 
project, the contract shall be provided, 
subject to clause (v), as soon as pos-
sible. Such contract shall cover all 
dwelling units in the project that are 
occupied by tenants receiving such en-
hanced voucher assistance at the time 
the contract is effective. 
‘‘(III) 
COVERAGE
OF
ADDI-
TIONAL DWELLING UNITS.—At the re-
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quest of the owner of a multifamily 
housing project for which a contract 
for assistance is to be provided under 
this subparagraph, the public housing 
agency may contract with the owner 
for project-based voucher assistance 
under this subparagraph to cover ad-
ditional dwelling units, if the public 
housing agency determines that such 
additional assistance is necessary or 
desirable to further the purposes re-
flected in clause (v). 
‘‘(IV) APPROVAL
OF
HIGHER 
RENTS.—At the request of the owner 
of a multifamily housing project for a 
contract for assistance under this sub-
paragraph to establish rents at levels 
above those permitted by subpara-
graph (H), a public housing agency 
that has made the determinations re-
quired by clause (v) may request, and 
the Secretary may approve, higher 
unit rents if necessary to preserve 
housing opportunities that further the 
purposes of clause (v). 
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‘‘(iv) PROJECTS IN MULTIPLE PHA JU-
RISDICTIONS.—If the Secretary has not en-
tered into a contract with a public housing 
agency to provide enhanced voucher assist-
ance under subsection (t) for the project at 
the time the owner of a multifamily hous-
ing project requests assistance under this 
subparagraph, and the project is located 
within the jurisdiction for the program 
under subsection (o) of more than one pub-
lic housing agency, in determining which 
agency will administer such assistance, the 
Secretary shall— 
‘‘(I) consider the ratio of the 
number of vouchers to be awarded 
under this subparagraph and of other 
project-based vouchers administered 
under this paragraph to the total 
number of vouchers administered by 
an agency; and 
‘‘(II) among other factors, pro-
vide preference to an agency for which 
the total number of project-based 
vouchers 
administered 
under 
this 
paragraph, including vouchers to be 
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100 
housing assistance payment contract pur-
suant to this subparagraph. 
‘‘(vii) DISREGARD
OF
ASSISTANCE 
UNDER
PERCENTAGE
LIMITATION.— 
Amounts provided pursuant to this sub-
paragraph shall not be considered for pur-
poses of calculating the limitation under 
subparagraph (B). 
‘‘(viii) INAPPLICABILITY OF INCOME- 
MIXING
REQUIREMENT.—Subparagraph 
(D) shall not apply with respect to a hous-
ing assistance payments contract pursuant 
to this subparagraph. 
‘‘(ix) ELIGIBILITY.—Subject only to 
clause (iii) and notwithstanding any other 
provision of law, any family residing in a 
multifamily housing project on the date of 
the eligibility event for the project who 
would otherwise be eligible for enhanced 
voucher assistance under subsection (t) 
shall be eligible for project-based voucher 
assistance 
pursuant 
to 
this 
subpara-
graph.’’. 
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101 
SEC. 20. EFFECT OF FORECLOSURE ON SECTION 8 TENAN-
CIES. 
(a) USE OF RENTAL ASSISTANCE AMOUNTS.—Sec-
tion 8(o)(7) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)(7)(F)), as amended by section 703 
of division A of Public Law 111–22 (123 Stat. 1661), is 
amended— 
(1) in subparagraph (F), by inserting after ‘‘oc-
cupied unit,’’ the following: ‘‘and if a public housing 
agency is unable to make payments under the con-
tract to the immediate successor in interest after 
foreclosure, due to action or inaction by the suc-
cessor in interest, including the rejection of pay-
ments or the failure of the successor to maintain the 
unit in compliance with paragraph (8), or an inabil-
ity to identify the successor, the agency may use 
funds that would have been used to pay the rental 
amount on behalf of the family— 
‘‘(i) to pay for utilities that are the 
responsibility of the owner under the lease 
or applicable law, after taking reasonable 
steps to notify the owner that it intends to 
make payments to a utility provider in lieu 
of payments to the owner, except prior no-
tification shall not be required in any case 
in which the unit will be or has been ren-
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102 
dered uninhabitable due to the termination 
or threat of termination of service, in 
which case the public housing agency shall 
notify the owner within a reasonable time 
after making such payment; or 
‘‘(ii) for the family’s reasonable mov-
ing 
costs, 
including 
security 
deposit 
costs.’’; 
(2) by striking ‘‘except that this provision and 
the provisions related to foreclosure in subparagraph 
(C) shall not’’ in subparagraph (F) and inserting the 
following: 
‘‘The provisions related to foreclosure in subpara-
graphs (C) and (F)’’; and 
(3) in the matter after and below subparagraph 
(F), as amended by paragraph (2) of this sub-
section, by adding after the period at the end the 
following: ‘‘For purposes of subparagraphs (C) and 
(F), the term ‘immediate successor in interest’ in-
cludes a purchaser who purchases a property from 
an immediate successor in interest.’’. 
(b) SUNSET.—Section 704 of division A of the Help-
ing Families Save Their Homes Act (Public Law 111–22; 
123 Stat. 1662) is amended— 
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103 
(1) by striking ‘‘This title, and any amend-
ments made by this title are’’ and inserting ‘‘Section 
702 is’’; and 
(2) by striking ‘‘this title’’ and inserting ‘‘such 
section’’. 
SEC. 21. STUDY TO IDENTIFY OBSTACLES TO USING 
VOUCHERS 
IN 
FEDERALLY 
SUBSIDIZED 
HOUSING PROJECTS. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of (1) the housing voucher 
program authorized under section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)), and 
(2) other federally subsidized housing programs, to deter-
mine whether any statutory, regulatory, or administrative 
provisions of the housing voucher program or of other fed-
erally subsidized housing programs, or policies and prac-
tices of housing owners or public housing agencies or other 
agencies, may have the effect of making occupancy by 
voucher holders in federally subsidized housing projects 
more difficult to obtain than occupancy by non-voucher 
holders. In conducting the study required under this sub-
section the Comptroller General shall determine if any 
gaps exist in the statute, regulations, or administration 
of the housing voucher program or of other federally sub-
sidized housing programs and policies and practices of 
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104 
housing owners or public housing agencies or other agen-
cies that, if addressed, could eliminate or reduce obstacles 
to voucher holders in seeking occupancy in federally sub-
sidized housing projects. Such study shall include data on 
the use of housing vouchers in federally subsidized housing 
projects. 
(b) DEFINITION.—As used in this section, the term 
‘‘federally subsidized housing projects’’ includes projects 
assisted pursuant to the HOME investment partnerships 
program under title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12721 et seq.) and 
those projects receiving the benefit of low-income housing 
credits under section 42 of the Internal Revenue Code of 
1986 (26 U.S.C. 42). 
(c) REPORT.—Not later than 6 months after the date 
of enactment of this Act, the Comptroller General shall 
report to Congress the findings from the study required 
under subsection (a) and any recommendations for statu-
tory, regulatory, or administrative changes. 
SEC. 22. INTERAGENCY COUNCIL ON HOMELESSNESS. 
(a) TECHNICAL CORRECTION.—Section 202(e) of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11312), as amended by section 1004 of Public Law 111– 
22, is amended by striking ‘‘Chairman’’ and inserting 
‘‘Chairperson’’. 
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105 
(b) DUTIES.—Section 203 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11313), as amended 
by section 1004 of Public Law 111–22, is amended— 
(1) in subsection (a)— 
(A) 
by 
redesignating 
paragraphs 
(6) 
through (13) as paragraphs (9), and (16), re-
spectively; 
(B) in paragraph (1), by inserting ‘‘which 
shall set forth actions to accomplish the goal of 
ending homelessness,’’ after ‘‘National Strategic 
Plan to End Homelessness,’’; 
(C) in paragraph (3), by inserting before 
the semicolon at the end the following: ‘‘and en-
sure that related programs and activities to as-
sist homeless individuals of Federal agencies 
are coordinated with each other’’; and 
(D) by inserting after paragraph (5) the 
following new paragraphs: 
‘‘(6) make recommendations, in the reports 
submitted pursuant to subsection (c) on— 
‘‘(A) long-term goals for the Congress to 
reduce homelessness; and 
‘‘(B) legislative strategies for the Congress 
to achieve such goals; 
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106 
‘‘(7) evaluate the Federal role in interacting 
and coordinating with State and local entities that 
address homelessness; 
‘‘(8) conduct research and develop methods— 
‘‘(A) through consultation with State and 
local agencies, to improve coordination between 
the Council and Federal agencies in existence 
upon the date of enactment of the Interagency 
Council on Homelessness Reform Act of 2009 
that specifically deal with homelessness; and 
‘‘(B) to minimize the period during which 
individuals remain homeless;’’; and 
(2) in subsection (c), by adding at the end the 
following new paragraphs: 
‘‘(3) BIENNIAL
REPORT.—The Council shall 
prepare and transmit to the President and the Con-
gress a biennial report detailing the efforts of the 
Council to address homelessness. 
‘‘(4) PUBLIC AVAILABILITY.—The Council shall 
make each report submitted to the Congress pursu-
ant to paragraph (1), (2), or (3) of this subsection, 
and the national plan and updates of such plan sub-
mitted pursuant to paragraph (1) of subsection (a), 
publicly available, including through posting on a 
World Wide Web site maintained by the Council.’’. 
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107 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
208 of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11318), as amended by section 1004 of Public Law 
111–22, is amended by striking ‘‘fiscal years 2011’’ and 
inserting ‘‘each of fiscal years 2011 through 2015’’. 
SEC. 23. HOUSING INNOVATION PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—Title I of the 
United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new 
section: 
‘‘SEC. 37. HOUSING INNOVATION PROGRAM. 
‘‘(a) PURPOSE.—The purpose of the program under 
this section is to establish a demonstration program under 
which public housing agencies are given the flexibility to 
design, and the Secretary is given the responsibility to 
evaluate, innovative approaches to providing housing as-
sistance that— 
‘‘(1) increase housing opportunities for low-, 
very low-, and extremely low-income families, includ-
ing modernizing, rehabilitating, reconfiguring, or re-
placing public housing at risk of physical deteriora-
tion or obsolescence, developing additional affordable 
housing, providing supportive housing, and increas-
ing the number of families receiving tenant-based 
rental assistance; 
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108 
‘‘(2) provide financial incentives and other sup-
port mechanisms to families to obtain employment 
and increase earned income, and achieve economic 
self-sufficiency, while protecting very low- and ex-
tremely low-income families from increased rent bur-
dens; 
‘‘(3) utilize funds in a more effective or cost-ef-
ficient manner, including achieving energy, adminis-
trative, and other cost savings; 
‘‘(4) leverage other Federal, State, and local 
funding sources, including the low-income housing 
tax credit program, to expand and preserve afford-
able housing opportunities, including public housing; 
‘‘(5) test alternative rent-setting policies to de-
termine whether rent determinations can be sim-
plified and administrative cost savings can be real-
ized while protecting extremely low- and very low-in-
come families from increased rent burdens; 
‘‘(6) are subject to rigorous evaluation to test 
the effectiveness of such innovative approaches; and 
‘‘(7) are developed with the support of the local 
community and with the substantial participation of 
affected residents. 
‘‘(b) PROGRAM AUTHORITY.— 
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109 
‘‘(1) SCOPE.—The Secretary shall carry out a 
housing innovation demonstration program under 
this section under which the Secretary may des-
ignate such number of public housing agencies to 
participate in the housing innovation demonstration 
program as may be necessary, in conjunction with 
agencies approved for continued program participa-
tion pursuant to subsection (c), to demonstrate the 
effectiveness of the priority strategies identified in 
subsection (d)(2). The Secretary may also designate 
such number of additional agencies to participate in 
the program under the terms of subsection (i) as 
may be necessary to demonstrate other innovative 
strategies as the Secretary or applicants may pro-
pose. 
‘‘(2) DURATION.—The Secretary may carry out 
the housing innovation program under this section 
only during the 10-year period beginning on the date 
of the enactment of the Section 8 Voucher Reform 
Act of 2009. 
‘‘(c) PARTICIPATION
OF EXISTING MTW AGEN-
CIES.— 
‘‘(1) EXISTING MTW AGENCIES.—Subject to the 
requirements of paragraph (2), all existing MTW 
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110 
agencies shall be designated to participate in the 
program. 
‘‘(2) CONDITIONS
OF
PARTICIPATION.—The 
Secretary shall approve and transfer into the hous-
ing innovation program under this section each ex-
isting MTW agency that the Secretary determines is 
not in default under such agreement and which the 
Secretary also determines is meeting the goals and 
objectives of its moving to work plan. Any agency 
that has been audited by the Inspector General of 
the Department of Housing and Urban Development 
shall demonstrate compliance with the program rules 
that the Inspector General determined were not 
being complied with by such agency. Any agency ap-
proved for transfer into the housing innovation pro-
gram may, at its option, be subject to the provisions 
of this paragraph, in lieu of an agreement currently 
in place with the Secretary for participation in the 
Moving to Work program. Each agency shall, within 
two years after the date of the enactment of the Sec-
tion 8 Voucher Reform Act of 2009, make changes 
to its policies that were implemented before such 
date of enactment in order to comply with the re-
quirements of this section. 
‘‘(d) ADDITIONAL AGENCIES.— 
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111 
‘‘(1) PROPOSALS; SELECTION PROCESS.—In ad-
dition to agencies participating in the program pur-
suant to subsection (c), the Secretary shall, within 
12 months after such date of enactment, select pub-
lic housing agencies to participate in the program 
pursuant to a competitive process that meets the fol-
lowing requirements: 
‘‘(A) Any public housing agency may be se-
lected to participate in the program, except that 
not more than 5 agencies that are near-troubled 
under the public housing assessment system 
and/or section 8 management assessment pro-
gram may be selected, and except that any 
agency that is a troubled agency under either 
such assessment program or for which the Sec-
retary has hired an alternative management en-
tity for such agency or has taken possession of 
all or any part of such agency’s public housing 
program shall not be eligible for participation. 
Any near-troubled public housing agency par-
ticipating in the program shall remain subject 
to the requirements of this Act governing ten-
ant rent contributions, eligibility, and continued 
participation, and may not adopt policies de-
scribed in subsection (e)(4) (relating to rents 
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112 
and requirements for continued occupation and 
participation). 
‘‘(B) The process provides, to the extent 
possible based on eligible agencies submitting 
applications and taking into account existing 
MTW agencies participating pursuant to sub-
section (c), for representation among agencies 
selected of agencies having various characteris-
tics, including both large and small agencies, 
agencies serving urban, suburban, and rural 
areas, and agencies in various geographical re-
gions throughout the United States, and which 
may include the selection of agencies that only 
administer the voucher program under section 
8(o). 
‘‘(C) Any agency submitting a proposal 
under this paragraph shall have provided notice 
to residents and the local community, not later 
than 30 days before the first of the two public 
meetings required under subparagraph (D). 
‘‘(D) The agency submitting a proposal 
shall hold two public meetings to receive com-
ments on the agency’s proposed application, on 
the implications of changes under the proposal, 
and the possible impact on residents. 
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113 
‘‘(E) The process includes criteria for se-
lection, as follows: 
‘‘(i) The extent to which— 
‘‘(I) if proposal is for the purpose 
of carrying out the priority strategy 
under subsection (d)(2)(A), the pro-
posal is likely to achieve the purposes 
of increasing housing opportunities for 
low-, very low-, and extremely low-in-
come families, including modernizing, 
rehabilitating, reconfiguring, or re-
placing public housing at risk of phys-
ical deterioration or obsolescence, de-
veloping additional affordable housing, 
providing supportive housing, or in-
creasing the number of families re-
ceiving tenant-based rental assistance, 
or a combination of these purposes; 
‘‘(II) if the proposal is for the 
purpose of carrying out the priority 
strategy under subsection (d)(2)(B), 
the proposal is likely to achieve the 
purposes of families obtaining employ-
ment, increasing earned income, or 
achieving 
economic 
self-sufficiency, 
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114 
while protecting extremely low- and 
very low-income families from in-
creased rent burdens; or 
‘‘(III) if the proposal is for the 
purpose of carrying out an innovative 
strategy pursuant to the last sentence 
of subsection (b)(1), the proposal is 
likely to achieve the goals and objec-
tives of such strategy. 
‘‘(ii) The extent to which the proposal 
generally identifies statutory provisions 
and existing rules and regulations that im-
pede achievement of the goals and objec-
tives of the proposal and an explanation of 
why a waiver of such statutory provisions, 
rules, and regulations is necessary to 
achieve such goals and objectives. 
‘‘(iii) The extent to which the agency 
has a successful history of implementing or 
has expertise in strategies similar to those 
set forth in the agency’s proposal. 
‘‘(iv) The extent of commitment and 
funding for carrying out the proposal by 
local and State government agencies and 
nonprofit organizations, including the pro-
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vision of additional funding and other serv-
ices, and the extent of support for the pro-
posal 
by 
residents, 
resident 
advisory 
boards, and members of the local commu-
nity. 
‘‘(v) Such other factors as the Sec-
retary may establish, in consultation with 
participating agencies and agencies inter-
ested in participating in the program, pro-
gram stakeholders, and any entity con-
ducting evaluations pursuant to subsection 
(f), which may include the extent to which 
the proposal is likely to result in utilization 
of funds in a more effective or cost-effi-
cient manner, including achieving energy, 
administrative, and other cost savings. 
‘‘(2) PRIORITY STRATEGIES.—For purposes of 
the first sentence of paragraph (b)(1), the following 
are priority strategies: 
‘‘(A) INCREASING
HOUSING
OPPORTUNI-
TIES.—A strategy of development of increasing 
housing opportunities for low-, very low-, and 
extremely low-income families, including mod-
ernizing, rehabilitating, reconfiguring, or replac-
ing public housing at risk of physical deteriora-
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tion or obsolescence, developing additional af-
fordable housing, providing supportive housing, 
or increasing the number of families receiving 
tenant-based rental assistance, or a combination 
of these purposes. 
‘‘(B) RENT REFORMS AND FAMILY SELF- 
SUFFICIENCY.—A strategy to implement rent 
reforms and other self-sufficiency incentives or 
resources, which shall be designed to help fami-
lies obtain employment, increase their earned 
income, or achieve economic self-sufficiency, 
while protecting extremely low- and very low-in-
come families from increased rent burdens. 
‘‘(3) CONTRACT AMENDMENT.—After selecting 
agencies under this subsection, the Secretary shall 
promptly amend the applicable annual contributions 
contracts of such agencies to provide that— 
‘‘(A) subject to subparagraph (B), such 
agencies may implement only such policies and 
activities that are necessary to carry out the 
priority strategy or innovative strategy or strat-
egies included in the application for participa-
tion in the program, without specifying such 
policies and activities in such amendment and 
without negotiating or entering into any other 
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agreements with the Secretary specifying such 
policies and activities; and 
‘‘(B) the activities to be implemented by 
an agency under the program in a given year 
shall be described in and subject to the require-
ments of the annual plan under subsection 
(e)(8). 
‘‘(e) PROGRAM REQUIREMENTS.— 
‘‘(1) PROGRAM FUNDS.— 
‘‘(A) IN
GENERAL.—To the extent nec-
essary to carry out a housing innovation pro-
gram under this section, the participating agen-
cy may use amounts provided to the agency 
from the Operating Fund under section 9(e), 
amounts provided to the agency from the Cap-
ital Fund under section 9(d), and amounts pro-
vided to the agency for voucher assistance 
under section 8(o). Such program funds may be 
used for any activities that are authorized by 
section 8(o) or 9, or for other activities that are 
not inconsistent with this section, which may 
include, without limitation— 
‘‘(i) providing capital and operating 
assistance, and financing for housing pre-
viously developed or operated pursuant to 
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a contract between the Secretary and such 
agency; 
‘‘(ii) the acquisition, new construction, 
rehabilitation, financing, and provision of 
capital or operating assistance for low-in-
come housing (including housing other 
than public housing) and related facilities, 
which may be for terms exceeding the term 
of the program under this section in order 
to secure other financing for such housing; 
‘‘(iii) costs of site acquisition and im-
provement, providing utility services, demo-
lition, planning, and administration of ac-
tivities under this paragraph; 
‘‘(iv) housing counseling for low-in-
come families in connection with rental or 
homeownership assistance provided under 
the program; 
‘‘(v) safety, security, law enforcement, 
and anticrime activities appropriate to pro-
tect and support families assisted under 
the program; 
‘‘(vi) tenant-based rental assistance, 
which may include the project-basing of 
such assistance; and 
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‘‘(vii) appropriate and reasonable fi-
nancial assistance that is required to pre-
serve low-income housing otherwise as-
sisted under programs administered by the 
Secretary or under State or local low-in-
come housing or public housing programs. 
‘‘(B) 
COMBINING
FUNDS.—Notwith-
standing any other provision of law, a partici-
pating agency may combine and use program 
funds for any activities authorized under this 
section, except that a participating agency may 
use funds provided for assistance under section 
8(o) for activities other than those authorized 
under section 8(o) only if (i) in the calendar 
year prior to its participation in the program, 
the agency utilized not less than 95 percent of 
such funds allocated for that calendar year for 
such authorized activities or 95 percent of its 
authorized vouchers; or (ii) after approval to 
participate in the program, the agency achieves 
such utilization for a 12-month period. Such 
limitation shall not apply to participating agen-
cies approved by the Secretary to combine 
funds from sections 8 and 9 of the Act prior to 
enactment of this section. A public housing 
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120 
agency that uses funds provided from assist-
ance under section 8(o) for activities not au-
thorized under such subsection may not termi-
nate assistance to families assisted under such 
subsection on the grounds of inadequate fund-
ing to the extent such inadequacy is caused by 
such use of funds for purposes not authorized 
under section 8(o). 
‘‘(2) USE OF PROGRAM FUNDS.—In carrying 
out the housing innovation program under this sec-
tion, each participating agency shall continue to as-
sist— 
‘‘(A) not less than 98 percent of the num-
ber of eligible low-income families under the 
program as it assisted in the base year for the 
agency; and 
‘‘(B) a comparable mix of families by fam-
ily size, subject to adjustment to reflect changes 
in the agency’s waiting list, except that the Sec-
retary may approve exceptions to such require-
ments for up to 3 years based on modernization 
or redevelopment activities proposed in an an-
nual plan submitted and approved in accord-
ance with paragraph (11). 
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Determinations with respect to the number of fami-
lies required to be served shall be adjusted to reflect 
any allocation of additional vouchers under section 
8(o), any change in annual voucher proration factor, 
or such other appropriate adjustments as the Sec-
retary may establish. For purposes of subparagraph 
(A), the term ‘base year’ means, with respect to ex-
isting MTW agencies, the first full calendar year 
prior to approval and transfer, pursuant to sub-
section (c)(2), into the housing innovation program 
under this section. The Secretary shall monitor and 
enforce compliance with the requirements of sub-
paragraph (A) on an annual basis. 
‘‘(3) RETAINED
PROVISIONS.—Each agency 
that is approved to carry out one of the two priority 
strategies identified in subsection (d)(2) shall comply 
with all provisions of this Act except those that are 
necessary to carry out one of such two priority strat-
egies. Notwithstanding any other provision of this 
section, families receiving assistance under this sec-
tion shall retain the same rights of judicial review of 
agency action as they would otherwise have had if 
the agency were not participating in the program, 
and each participating agency, including existing 
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MTW agencies, shall comply with the following pro-
visions of this Act: 
‘‘(A) Subsections (a)(2)(A) and (b)(1) of 
section 16 (relating to targeting for new admis-
sions in the public housing and voucher pro-
grams). 
‘‘(B) Section 2(b) (relating to tenant rep-
resentatives on the public housing agency board 
of directors). 
‘‘(C) Section 3(b)(2) (relating to defini-
tions for the terms ‘low-income families’ and 
‘very low-income families’). 
‘‘(D) Section 5(A)(e) (relating to the for-
mation of and consultation with a resident advi-
sory board). 
‘‘(E) Sections 6(f)(1) and 8(o)(8)(B) (re-
lating to compliance of units assisted with hous-
ing quality standards or other codes). 
‘‘(F) Sections 6(c)(3), 6(c)(4)(i), and 
8(o)(6)(B) (relating to rights of public housing 
applicants and existing procedural rights for 
applicants under section 8(o)). 
‘‘(G) Section 6(k) (relating to grievance 
procedures for public housing tenants) and 
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comparable procedural rights for families as-
sisted under section 8(o). 
‘‘(H) Section 6(l) (relating to public hous-
ing lease requirements), except that for units 
assisted both with program funds and low-in-
come housing tax credits, the initial lease term 
may be less than 12 months if required to con-
form lease terms with such tax credit require-
ments. 
‘‘(I) Section 7 (relating to designation of 
housing for elderly and disabled households), 
except that a participating agency may make 
such designations (at initial designation or upon 
renewal) for a term of up to 5 years if the 
agency includes in its annual plan under para-
graph (11) an analysis of the impact of such 
designations on affected households and such 
designation is subject to the program evalua-
tion. Any participating agency with a des-
ignated housing plan that was approved under 
the moving to work demonstration may con-
tinue to operate under the terms of such plan 
for a term of 5 years (with an option to renew 
on the same terms for an additional 5 years) if 
it includes in its annual plan an analysis of the 
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126 
pation and tenant opportunities in public hous-
ing). 
‘‘(4) RENTS AND REQUIREMENTS FOR CONTIN-
UED OCCUPANCY OR PARTICIPATION.— 
‘‘(A) BEFORE
POLICY
CHANGE.—Before 
adopting any policy pursuant to participation in 
the housing innovation program under this sec-
tion that would make a material change to the 
requirements of this Act regarding tenant rents 
or contributions, or conditions of continued oc-
cupancy or participation, a participating agency 
shall complete each of the following actions: 
‘‘(i) The agency shall conduct an im-
pact analysis of the proposed policy on 
families the agency is assisting under the 
program under this section and on appli-
cants on the waiting list, including analysis 
of the incidence and severity of rent bur-
dens greater than 30 percent of adjusted 
income on households of various sizes and 
types and in various income tiers, that 
would result, if any, without application of 
the hardship provisions. The analysis with 
respect to applicants on the waiting list 
may be limited to demographic data pro-
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vided by the applicable consolidated plan, 
information provided by the Secretary, and 
other generally available information. The 
proposed policy, including provisions for 
addressing hardship cases and transition 
provisions that mitigate the impact of any 
rent increases or changes in the conditions 
of continued occupancy or participation, 
and data from this analysis shall be made 
available for public inspection and copying, 
on request, and for access through the 
Internet, for at least 60 days in advance of 
the public meeting described in clause (ii). 
‘‘(ii) The agency shall hold a public 
meeting regarding the proposed change, in-
cluding the hardship provisions, which may 
be combined with a public meeting on the 
draft annual plan under paragraph (11) or 
the annual report under subsection (h)(2). 
‘‘(iii) The board of directors or other 
similar governing body of the agency shall 
approve the change in public session. 
‘‘(iv) The agency shall obtain approval 
from the Secretary of the annual plan or 
plan amendment. The Secretary may ap-
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prove a plan or amendment containing a 
material change to the requirements of this 
Act regarding tenant rents or contribu-
tions, or conditions of continued occupancy 
or participation, only if such policy is in-
cluded as part of the national evaluation. 
‘‘(B) 
AFTER
POLICY
CHANGE.—After 
adopting a policy described in subparagraph 
(A), a program agency shall complete each of 
the following actions: 
‘‘(i) The agency shall provide ade-
quate notice to residents, which shall in-
clude a description of the changes in the 
public housing lease or participation agree-
ment that may be required and of the 
hardship or transition protections offered. 
‘‘(ii) In the case of any additional re-
quirements for continued occupancy or 
participation, the agency shall execute a 
lease addendum or participation agreement 
specifying the requirements applicable to 
both the resident and the agency. A resi-
dent may bring a civil action to enforce 
commitments of the agency made through 
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129 
the lease addendum or participation agree-
ment. 
‘‘(iii) The agency shall reassess rent, 
subsidy level, and policies on program par-
ticipation no less often than every two 
years, which shall include preparing a re-
vised impact analysis, and make available 
for public inspection and copying, on re-
quest, and for access through the Internet, 
the results of such reassessment and im-
pact analysis. The requirement under this 
clause may be met by sufficiently detailed 
interim reports, if any, by the national 
evaluating entity. 
‘‘(iv) The agency shall include in the 
annual report under subsection (h)(2) in-
formation sufficient to describe any hard-
ship requests, including the number and 
types of requests made, granted, and de-
nied, the use of transition rules, and ad-
verse impacts resulting from changes in 
rent or continued occupancy policies, in-
cluding actions taken by the agency to 
mitigate such impacts and impacts on fam-
ilies no longer assisted under the program. 
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‘‘(C) APPLICABILITY
TO
EXISTING
MTW 
AGENCIES.—An existing MTW agency that, be-
fore the date of the enactment of this section, 
implemented material changes to the require-
ments of this Act regarding tenant rents or 
contributions, or conditions of continued occu-
pancy or participation, as part of the moving to 
work demonstration shall not be subject to sub-
paragraph (A) with regard to such previously 
implemented changes, but shall comply with the 
requirements of subparagraph (B)(ii) and pro-
vide the evaluation and impact analysis required 
by subparagraph (B)(iii) by the end of the sec-
ond agency fiscal year ending after such date of 
enactment. 
‘‘(5) PROHIBITION AGAINST DECREASE IN PRO-
GRAM
FUNDS.—The amount of program funds a 
participating agency receives shall not be diminished 
by its participation in the housing innovation pro-
gram under this section. 
‘‘(6) RENT BURDEN.—A participating agency 
may not adopt rent policies that result in rents that 
are not affordable to assisted families. 
‘‘(7) TIME
LIMITS.—A participating agency 
may implement time limits on the term of housing 
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