H. R. 4194—126
any fiscal year, the Secretary may use up to 2 percent for
technical assistance or contract expertise. Such assistance or
contract expertise may be provided directly or indirectly by
grants, contracts, or cooperative agreements, and shall include
training, and the cost of necessary travel for participants in
such training, by or to officials of the Department of Housing
and Urban Development, of public housing agencies, and of
residents.
‘‘(n) SUNSET.—No assistance may be provided under this section
after September 30, 2002.’’.
(b) APPLICABILITY.—The amendment made by this section is
made on, and shall apply beginning upon, the date of the enactment
of this Act.
SEC. 536. HOMEOWNERSHIP.
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new section:
‘‘SEC. 32. RESIDENT HOMEOWNERSHIP PROGRAMS.
‘‘(a) IN GENERAL.—A public housing agency may carry out a
homeownership program in accordance with this section and the
public housing agency plan of the agency to make public housing
dwelling units, public housing projects, and other housing projects
available for purchase by low-income families for use only as prin-
cipal residences for such families. An agency may transfer a unit
pursuant to a homeownership program only if the program is
authorized under this section and approved by the Secretary.
‘‘(b) PARTICIPATING UNITS.—A program under this section may
cover any existing public housing dwelling units or projects, and
may include other dwelling units and housing owned, assisted,
or operated, or otherwise acquired for use under such program,
by the public housing agency.
‘‘(c) ELIGIBLE PURCHASERS.—
‘‘(1) LOW-INCOME REQUIREMENT.—Only low-income families
assisted by a public housing agency, other low-income families,
and entities formed to facilitate such sales by purchasing units
for resale to low-income families shall be eligible to purchase
housing under a homeownership program under this section.
‘‘(2) OTHER REQUIREMENTS.—A public housing agency may
establish other requirements or limitations for families to pur-
chase housing under a homeownership program under this
section, including requirements or limitations regarding
employment or participation in employment counseling or train-
ing activities, criminal activity, participation in homeownership
counseling programs, evidence of regular income, and other
requirements. In the case of purchase by an entity for resale
to low-income families, the entity shall sell the units to low-
income families within 5 years from the date of its acquisition
of the units. The entity shall use any net proceeds from the
resale and from managing the units, as determined in accord-
ance with guidelines of the Secretary, for housing purposes,
such as funding resident organizations and reserves for capital
replacements.
‘‘(d) RIGHT OF FIRST REFUSAL.—In making any sale under this
section, the public housing agency shall initially offer the public
housing unit at issue to the resident or residents occupying that
H. R. 4194—127
unit, if any, or to an organization serving as a conduit for sales
to any such resident.
‘‘(e) PROTECTION OF NONPURCHASING RESIDENTS.—If a public
housing resident does not exercise the right of first refusal under
subsection (d) with respect to the public housing unit in which
the resident resides, the public housing agency—
‘‘(1) shall notify the resident residing in the unit 90 days
prior to the displacement date except in cases of imminent
threat to health or safety, consistent with any guidelines issued
by the Secretary governing such notifications, that—
‘‘(A) the public housing unit will be sold;
‘‘(B) the transfer of possession of the unit will occur
until the resident is relocated; and
‘‘(C) each resident displaced by such action will be
offered comparable housing—
‘‘(i) that meets housing quality standards;
‘‘(ii) that is located in an area that is generally
not less desirable than the location of the displaced
resident’s housing; and
‘‘(iii) which may include—
‘‘(I) tenant-based assistance, except that the
requirement under this subclause regarding offer-
ing of comparable housing shall be fulfilled by
use of tenant-based assistance only upon the
relocation of such resident into such housing;
‘‘(II) project-based assistance; or
‘‘(III) occupancy in a unit owned, operated,
or assisted by the public housing agency at a rental
rate paid by the resident that is comparable to
the rental rate applicable to the unit from which
the resident is vacated;
‘‘(2) shall provide for the payment of the actual and reason-
able relocation expenses of the resident to be displaced;
‘‘(3) shall ensure that the displaced resident is offered
comparable housing in accordance with the notice under para-
graph (1);
‘‘(4) shall provide any necessary counseling for the displaced
resident; and
‘‘(5) shall not transfer possession of the unit until the
resident is relocated.
‘‘(f ) FINANCING AND ASSISTANCE.—A homeownership program
under this section may provide financing for acquisition of housing
by families purchasing under the program, or for acquisition of
housing by the public housing agency for sale under the program,
in any manner considered appropriate by the agency (including
sale to a resident management corporation).
‘‘(g) DOWNPAYMENT REQUIREMENT.—
‘‘(1) IN GENERAL.—Each family purchasing housing under
a homeownership program under this section shall be required
to provide from its own resources a downpayment in connection
with any loan for acquisition of the housing, in an amount
determined by the public housing agency. Except as provided
in paragraph (2), the agency shall permit the family to use
grant amounts, gifts from relatives, contributions from private
sources, and similar amounts as downpayment amounts in
such purchase.
H. R. 4194—128
‘‘(2) DIRECT FAMILY CONTRIBUTION.—In purchasing housing
pursuant to this section, each family shall contribute an amount
of the downpayment, from resources of the family other than
grants, gifts, contributions, or other similar amounts referred
to in paragraph (1), that is not less than 1 percent of the
purchase price.
‘‘(h) OWNERSHIP INTERESTS.—A homeownership program under
this section may provide for sale to the purchasing family of any
ownership interest that the public housing agency considers appro-
priate under the program, including ownership in fee simple, a
condominium interest, an interest in a limited dividend cooperative,
a shared appreciation interest with a public housing agency provid-
ing financing.
‘‘(i) RESALE.—
‘‘(1) AUTHORITY AND LIMITATION.—A homeownership pro-
gram under this section shall permit the resale of a dwelling
unit purchased under the program by an eligible family, but
shall provide such limitations on resale as the agency considers
appropriate (whether the family purchases directly from the
agency or from another entity) for the agency to recapture—
‘‘(A) some or all of the economic gain derived from
any such resale occurring during the 5-year period begin-
ning upon purchase of the dwelling unit by the eligible
family; and
‘‘(B) after the expiration of such 5-year period, only
such amounts as are equivalent to the assistance provided
under this section by the agency to the purchaser.
‘‘(2) CONSIDERATIONS.—The limitations referred to in para-
graph (1)(A) may provide for consideration of the aggregate
amount of assistance provided under the program to the family,
the contribution to equity provided by the purchasing eligible
family, the period of time elapsed between purchase under
the homeownership program and resale, the reason for resale,
any improvements to the property made by the eligible family,
any appreciation in the value of the property, and any other
factors that the agency considers appropriate.
‘‘( j) NET PROCEEDS.—The net proceeds of any sales under a
homeownership program under this section remaining after pay-
ment of all costs of the sale shall be used for purposes relating
to low-income housing and in accordance with the public housing
agency plan of the agency carrying out the program.
‘‘(k) HOMEOWNERSHIP ASSISTANCE.—From amounts distributed
to a public housing agency under the Capital Fund under section
9(d), or from other income earned by the public housing agency,
the public housing agency may provide assistance to public housing
residents to facilitate the ability of those residents to purchase
a principal residence, including a residence other than a residence
located in a public housing project.
‘‘(l) INAPPLICABILITY
OF
DISPOSITION
REQUIREMENTS.—The
provisions of section 18 shall not apply to disposition of public
housing dwelling units under a homeownership program under
this section.’’.
SEC. 537. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING
TO TENANT-BASED ASSISTANCE.
(a) IN GENERAL.—Title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.), as amended by the preceding
H. R. 4194—129
provisions of this Act, is further amended by adding at the end
the following new section:
‘‘SEC. 33. REQUIRED CONVERSION OF DISTRESSED PUBLIC HOUSING
TO TENANT-BASED ASSISTANCE.
‘‘(a) IDENTIFICATION OF UNITS.—Each public housing agency
shall identify all public housing projects of the public housing
agency that meet all of the following requirements:
‘‘(1) The project is on the same or contiguous sites.
‘‘(2) The project is determined by the public housing agency
to be distressed, which determination shall be made in accord-
ance with guidelines established by the Secretary, which guide-
lines shall take into account the criteria established in the
Final Report of the National Commission on Severely Distressed
Public Housing (August 1992).
‘‘(3) The project—
‘‘(A) is identified as distressed housing under para-
graph (2) for which the public housing agency cannot assure
the long-term viability as public housing through reason-
able modernization expenses, density reduction, achieve-
ment of a broader range of family income, or other meas-
ures; or
‘‘(B) has an estimated cost, during the remaining useful
life of the project, of continued operation and modernization
as public housing that exceeds the estimated cost, during
the remaining useful life of the project, of providing tenant-
based assistance under section 8 for all families in occu-
pancy, based on appropriate indicators of cost (such as
the percentage of total development costs required for mod-
ernization).
‘‘(b) CONSULTATION.—Each public housing agency shall consult
with the appropriate public housing residents and the appropriate
unit of general local government in identifying any public housing
projects under subsection (a).
‘‘(c) PLAN
FOR REMOVAL
OF UNITS FROM INVENTORIES
OF
PHA’S.—
‘‘(1) DEVELOPMENT.—Each public housing agency shall
develop and carry out a 5-year plan in conjunction with the
Secretary for the removal of public housing units identified
under subsection (a) from the inventory of the public housing
agency and the annual contributions contract.
‘‘(2) APPROVAL.—Each plan required under paragraph (1)
shall—
‘‘(A) be included as part of the public housing agency
plan;
‘‘(B) be certified by the relevant local official to be
in accordance with the comprehensive housing affordability
strategy under title I of the Housing and Community
Development Act of 1992; and
‘‘(C) include a description of any disposition and demoli-
tion plan for the public housing units.
‘‘(3) EXTENSIONS.—The Secretary may extend the 5-year
deadline described in paragraph (1) by not more than an addi-
tional 5 years if the Secretary makes a determination that
the deadline is impracticable.
‘‘(4) REVIEW BY SECRETARY.—
H. R. 4194—130
‘‘(A) FAILURE TO IDENTIFY PROJECTS.—If the Secretary
determines, based on a plan submitted under this sub-
section, that a public housing agency has failed to identify
1 or more public housing projects that the Secretary deter-
mines should have been identified under subsection (a),
the Secretary may designate the public housing projects
to be removed from the inventory of the public housing
agency pursuant to this section.
‘‘(B) ERRONEOUS IDENTIFICATION OF PROJECTS.—If the
Secretary determines, based on a plan submitted under
this subsection, that a public housing agency has identified
1 or more public housing projects that should not have
been identified pursuant to subsection (a), the Secretary
shall—
‘‘(i) require the public housing agency to revise
the plan of the public housing agency under this sub-
section; and
‘‘(ii) prohibit the removal of any such public hous-
ing project from the inventory of the public housing
agency under this section.
‘‘(d) CONVERSION TO TENANT-BASED ASSISTANCE.—
‘‘(1) IN GENERAL.—To the extent approved in advance in
appropriations Acts, the Secretary shall make budget authority
available to a public housing agency to provide assistance under
this Act to families residing in any public housing project
that, pursuant to this section, is removed from the inventory
of the agency and the annual contributions contract of the
agency.
‘‘(2) CONVERSION
REQUIREMENTS.—Each agency carrying
out a plan under subsection (c) for removal of public housing
dwelling units from the inventory of the agency shall—
‘‘(A) notify each family residing in a public housing
project to be converted under the plan 90 days prior to
the displacement date, except in cases of imminent threat
to health or safety, consistent with any guidelines issued
by the Secretary governing such notifications, that—
‘‘(i) the public housing project will be removed
from the inventory of the public housing agency; and
‘‘(ii) each family displaced by such action will be
offered comparable housing—
‘‘(I) that meets housing quality standards; and
‘‘(II) which may include—
‘‘(aa) tenant-based assistance, except that
the requirement under this clause regarding
offering of comparable housing shall be ful-
filled by use of tenant-based assistance only
upon the relocation of such family into such
housing;
‘‘(bb) project-based assistance; or
‘‘(cc) occupancy in a unit operated or
assisted by the public housing agency at a
rental rate paid by the family that is com-
parable to the rental rate applicable to the
unit from which the family is vacated.
‘‘(B) provide any necessary counseling for families dis-
placed by such action;
H. R. 4194—131
‘‘(C) ensure that, if the project (or portion) converted
is used as housing after such conversion, each resident
may choose to remain in their dwelling unit in the project
and use the tenant-based assistance toward rent for that
unit;
‘‘(D) ensure that each displaced resident is offered com-
parable housing in accordance with the notice under
subparagraph (A); and
‘‘(E) provide any actual and reasonable relocation
expenses for families displaced by such action.
‘‘(e) CESSATION OF UNNECESSARY SPENDING.—Notwithstanding
any other provision of law, if, in the determination of the Secretary,
a project or projects of a public housing agency meet or are likely
to meet the criteria set forth in subsection (a), the Secretary may
direct the agency to cease additional spending in connection with
such project or projects until the Secretary determines or approves
an appropriate course of action with respect to such project or
projects under this section, except to the extent that failure to
expend such amounts would endanger the health or safety of resi-
dents in the project or projects.
‘‘(f ) USE OF BUDGET AUTHORITY.—Notwithstanding any other
provision of law, if a project or projects are identified pursuant
to subsection (a), the Secretary may authorize or direct the transfer,
to the tenant-based assistance program of such agency or to appro-
priate site revitalization or other capital improvements approved
by the Secretary, of—
‘‘(1) in the case of an agency receiving assistance under
the comprehensive improvement assistance program, any
amounts obligated by the Secretary for the modernization of
such project or projects pursuant to section 14 of the United
States Housing Act of 1937 (as in effect immediately before
the effective date under section 503(a) of the Quality Housing
and Work Responsibility Act of 1998);
‘‘(2) in the case of an agency receiving public housing
modernization assistance by formula pursuant to such section
14, any amounts provided to the agency which are attributable
pursuant to the formula for allocating such assistance to such
project or projects;
‘‘(3) in the case of an agency receiving assistance for the
major reconstruction of obsolete projects, any amounts obligated
by the Secretary for the major reconstruction of such project
or projects pursuant to section 5( j)(2) of the United States
Housing Act of 1937, as in effect immediately before the effec-
tive date under section 503(a) of the Quality Housing and
Work Responsibility Act of 1998; and
‘‘(4) in the case of an agency receiving assistance pursuant
to the formulas under section 9, any amounts provided to
the agency which are attributable pursuant to the formulas
for allocating such assistance to such project or projects.
‘‘(g) REMOVAL BY SECRETARY.—The Secretary shall take appro-
priate actions to ensure removal of any public housing project
identified under subsection (a) from the inventory of a public hous-
ing agency, if the public housing agency fails to adequately develop
a plan under subsection (c) with respect to that project, or fails
to adequately implement such plan in accordance with the terms
of the plan.
‘‘(h) ADMINISTRATION.—
H. R. 4194—132
‘‘(1) IN GENERAL.—The Secretary may require a public hous-
ing agency to provide to the Secretary or to public housing
residents such information as the Secretary considers to be
necessary for the administration of this section.
‘‘(2) APPLICABILITY OF SECTION 18.—Section 18 shall not
apply to the demolition of public housing projects removed
from the inventory of the public housing agency under this
section.’’.
(b) CONFORMING AMENDMENT.—Section 202 of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437l
note) is repealed.
(c) TRANSITION.—
(1) USE
OF
AMOUNTS.—Any amounts made available to
a public housing agency to carry out section 202 of the Depart-
ments of Veterans Affairs and Housing and Urban Develop-
ment, and Independent Agencies Appropriations Act, 1996
(enacted as section 101(e) of the Omnibus Consolidated Rescis-
sions and Appropriations Act of 1996 (Public Law 104–134;
110 Stat. 1321–279)) may be used, to the extent or in such
amounts as are or have been provided in advance in appropria-
tion Acts, to carry out section 33 of the United States Housing
Act of 1937 (as added by subsection (a) of this section).
(2) SAVINGS PROVISION.—Notwithstanding the amendments
made by this section, section 202 of the Departments of Veter-
ans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C.
14371 note) and any regulations implementing such section,
as in effect immediately before the enactment of this Act,
shall continue to apply to public housing developments identi-
fied by the Secretary or a public housing agency for conversion
pursuant to that section or for assessment of whether such
conversion is required prior to enactment of this Act.
SEC. 538. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.
(a) IN GENERAL.—Title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new section:
‘‘SEC. 34. SERVICES FOR PUBLIC HOUSING RESIDENTS.
‘‘(a) IN GENERAL.—To the extent that amounts are provided
in advance in appropriations Acts, the Secretary may make grants
to public housing agencies on behalf of public housing residents,
or directly to resident management corporations, resident councils,
or resident organizations (including nonprofit entities supported
by residents), for the purposes of providing a program of supportive
services and resident empowerment activities to provide supportive
services to public housing residents or assist such residents in
becoming economically self-sufficient.
‘‘(b) ELIGIBLE ACTIVITIES.—Grantees under this section may
use such amounts only for activities on or near the property of
the public housing agency or public housing project that are
designed to promote the self-sufficiency of public housing residents
or provide supportive services for such residents, including activities
relating to—
‘‘(1) physical improvements to a public housing project in
order to provide space for supportive services for residents;
H. R. 4194—133
‘‘(2) the provision of service coordinators or a congregate
housing services program for elderly individuals, elderly dis-
abled individuals, nonelderly disabled individuals, or tempo-
rarily disabled individuals;
‘‘(3) the provision of services related to work readiness,
including education, job training and counseling, job search
skills, business development training and planning, tutoring,
mentoring, adult literacy, computer access, personal and family
counseling, health screening, work readiness health services,
transportation, and child care;
‘‘(4) economic and job development, including employer link-
ages and job placement, and the start-up of resident microenter-
prises, community credit unions, and revolving loan funds,
including the licensing, bonding, and insurance needed to oper-
ate such enterprises;
‘‘(5) resident management activities and resident participa-
tion activities; and
‘‘(6) other activities designed to improve the economic self-
sufficiency of residents.
‘‘(c) FUNDING DISTRIBUTION.—
‘‘(1) IN GENERAL.—Except for amounts provided under sub-
section (d), the Secretary may distribute amounts made avail-
able under this section on the basis of a competition or a
formula, as appropriate.
‘‘(2) FACTORS FOR DISTRIBUTION.—Factors for distribution
under paragraph (1) shall include—
‘‘(A) the demonstrated capacity of the applicant to carry
out a program of supportive services or resident empower-
ment activities;
‘‘(B) the ability of the applicant to leverage additional
resources for the provision of services; and
‘‘(C) the extent to which the grant will result in a
high quality program of supportive services or resident
empowerment activities.
‘‘(d) MATCHING REQUIREMENT.—The Secretary may not make
any grant under this section to any applicant unless the applicant
supplements amounts made available under this section with funds
from sources other than this section in an amount equal to not
less than 25 percent of the grant amount. Such supplemental
amounts may include—
‘‘(1) funds from other Federal sources;
‘‘(2) funds from any State or local government sources;
‘‘(3) funds from private contributions; and
‘‘(4) the value of any in-kind services or administrative
costs provided to the applicant.
‘‘(e) FUNDING FOR RESIDENT ORGANIZATIONS.—To the extent
that there are a sufficient number of qualified applications for
assistance under this section, not less than 25 percent of any
amounts appropriated to carry out this section shall be provided
directly to resident councils, resident organizations, and resident
management corporations. In any case in which a resident council,
resident organization, or resident management corporation lacks
adequate expertise, the Secretary may require the council, organiza-
tion, or corporation to utilize other qualified organizations as con-
tract administrators with respect to financial assistance provided
under this section.’’.
H. R. 4194—134
(b) ASSESSMENT AND REPORT BY SECRETARY.—Not later than
3 years after the date of the enactment of the Quality Housing
and Work Responsibility Act of 1998, the Secretary of Housing
and Urban Development shall—
(1) conduct an evaluation and assessment of grants carried
out by resident organizations, and particularly of the effect
of the grants on living conditions in public housing; and
(2) submit to the Congress a report setting forth the find-
ings of the Secretary as a result of the evaluation and assess-
ment and including any recommendations the Secretary deter-
mines to be appropriate.
This subsection shall take effect on the date of the enactment
of this Act.
SEC. 539. MIXED-FINANCE PUBLIC HOUSING.
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new section:
‘‘SEC. 35. MIXED FINANCE PUBLIC HOUSING.
‘‘(a) AUTHORITY.—A public housing agency may own, operate,
assist, or otherwise participate in 1 or more mixed-finance projects
in accordance with this section.
‘‘(b) ASSISTANCE.—
‘‘(1) FORMS.—A public housing agency may provide to a
mixed-finance project assistance from the Operating Fund
under section 9, assistance from the Capital Fund under such
section, or both forms of assistance. A public housing agency
may, in accordance with regulations established by the Sec-
retary, provide capital assistance to a mixed-finance project
in the form of a grant, loan, guarantee, or other form of invest-
ment in the project, which may involve drawdown of funds
on a schedule commensurate with construction draws for
deposit into an interest-bearing escrow account to serve as
collateral or credit enhancement for bonds issued by a public
agency, or for other forms of public or private borrowings,
for the construction or rehabilitation of the development.
‘‘(2) USE.—To the extent deemed appropriate by the Sec-
retary, assistance used in connection with the costs associated
with the operation and management of mixed-finance projects
may be used for funding of an operating reserve to ensure
affordability for low-income and very low-income families in
lieu of the availability of operating funds for public housing
units in a mixed-finance project.
‘‘(c) COMPLIANCE WITH PUBLIC HOUSING REQUIREMENTS.—The
units assisted with capital or operating assistance in a mixed-
finance project shall be developed, operated, and maintained in
accordance with the requirements of this Act relating to public
housing during the period required by under this Act, unless other-
wise specified in this section. For purposes of this Act, any reference
to public housing owned or operated by a public housing agency
shall include dwelling units in a mixed finance project that are
assisted by the agency with capital or operating assistance.
‘‘(d) MIXED-FINANCE PROJECTS.—
‘‘(1) IN GENERAL.—For purposes of this section, the term
‘mixed-finance project’ means a project that meets the require-
ments of paragraph (2) and is financially assisted by private