H. R. 3700—14 
a public housing agency or owner may choose not to enforce 
the limitation under paragraph (1) or may establish exceptions 
to such limitation based on eligibility criteria, but only pursuant 
to a policy that is set forth in the public housing agency 
plan under section 5A for the agency or under a policy adopted 
by the owner. Eligibility criteria for establishing exceptions 
may provide for separate treatment based on family type and 
may be based on different factors, such as age, disability, 
income, the ability of the family to find suitable alternative 
housing, and whether supportive services are being provided. 
‘‘(6) AUTHORITY
TO
DELAY
EVICTIONS.—In the case of a 
family residing in a dwelling unit assisted under this Act who 
does not comply with the limitation under paragraph (1), the 
public housing agency or project owner may delay eviction 
or termination of the family based on such noncompliance for 
a period of not more than 6 months. 
‘‘(7) VERIFYING INCOME.— 
‘‘(A) Beginning in fiscal year 2018, the Secretary shall 
require public housing agencies to require each applicant 
for, or recipient of, benefits under this Act to provide 
authorization by the applicant or recipient (or by any other 
person whose income or resources are material to the deter-
mination of the eligibility of the applicant or recipient 
for such benefits) for the public housing agency to obtain 
(subject to the cost reimbursement requirements of section 
1115(a) of the Right to Financial Privacy Act) from any 
financial institution (within the meaning of section 1101(1) 
of such Act) any financial record (within the meaning of 
section 1101(2) of such Act) held by the institution with 
respect to the applicant or recipient (or any such other 
person) whenever the public housing agency determines 
the record is needed in connection with a determination 
with respect to such eligibility or the amount of such bene-
fits. 
‘‘(B) Notwithstanding section 1104(a)(1) of the Right 
to Financial Privacy Act, an authorization provided by an 
applicant or recipient (or any other person whose income 
or resources are material to the determination of the eligi-
bility of the applicant or recipient) pursuant to subpara-
graph (A) of this paragraph shall remain effective until 
the earliest of— 
‘‘(i) the rendering of a final adverse decision on 
the applicant’s application for eligibility for benefits 
under this Act; 
‘‘(ii) the cessation of the recipient’s eligibility for 
benefits under this Act; or 
‘‘(iii) the express revocation by the applicant or 
recipient (or such other person referred to in subpara-
graph (A)) of the authorization, in a written notification 
to the Secretary. 
‘‘(C)(i) An authorization obtained by the public housing 
agency pursuant to this paragraph shall be considered 
to meet the requirements of the Right to Financial Privacy 
Act for purposes of section 1103(a) of such Act, and need 
not be furnished to the financial institution, notwith-
standing section 1104(a) of such Act.
H. R. 3700—15 
‘‘(ii) The certification requirements of section 1103(b) 
of the Right to Financial Privacy Act shall not apply to 
requests by the public housing agency pursuant to an 
authorization provided under this clause. 
‘‘(iii) A request by the public housing agency pursuant 
to an authorization provided under this clause is deemed 
to meet the requirements of section 1104(a)(3) of the Right 
to Financial Privacy Act and the flush language of section 
1102 of such Act. 
‘‘(iv) The public housing agency shall inform any person 
who provides authorization pursuant to this paragraph 
of the duration and scope of the authorization. 
‘‘(D) If an applicant for, or recipient of, benefits under 
this Act (or any such other person referred to in subpara-
graph (A)) refuses to provide, or revokes, any authorization 
made by the applicant or recipient for the public housing 
agency to obtain from any financial institution any financial 
record, the public housing agency may, on that basis, deter-
mine that the applicant or recipient is ineligible for benefits 
under this title.’’. 
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES. 
Paragraph (11) of section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(11)) is amended— 
(1) by striking ‘‘(11) LEASING OF UNITS OWNED BY PHA.— 
If’’ and inserting the following: 
‘‘(11) LEASING OF UNITS OWNED BY PHA.— 
‘‘(A) INSPECTIONS AND RENT DETERMINATIONS.—If’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(B) UNITS OWNED BY PHA.—For purposes of this sub-
section, the term ‘owned by a public housing agency’ means, 
with respect to a dwelling unit, that the dwelling unit 
is in a project that is owned by such agency, by an entity 
wholly controlled by such agency, or by a limited liability 
company or limited partnership in which such agency (or 
an entity wholly controlled by such agency) holds a control-
ling interest in the managing member or general partner. 
A dwelling unit shall not be deemed to be owned by a 
public housing agency for purposes of this subsection 
because the agency holds a fee interest as ground lessor 
in the property on which the unit is situated, holds a 
security interest under a mortgage or deed of trust on 
the unit, or holds a non-controlling interest in an entity 
which owns the unit or in the managing member or general 
partner of an entity which owns the unit.’’. 
SEC. 106. PHA PROJECT-BASED ASSISTANCE. 
(a) IN GENERAL.—Paragraph (13) of section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended— 
(1) by striking ‘‘structure’’ each place such term appears 
and inserting ‘‘project’’; 
(2) by striking subparagraph (B) and inserting the following 
new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), a public 
housing agency may use for project-based assistance 
under this paragraph not more than 20 percent of 
the authorized units for the agency.
H. R. 3700—16 
‘‘(ii) EXCEPTION.—A public housing agency may use 
up to an additional 10 percent of the authorized units 
for the agency for project-based assistance under this 
paragraph, to provide units that house individuals and 
families that meet the definition of homeless under 
section 103 of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11302), that house families with 
veterans, that provide supportive housing to persons 
with disabilities or elderly persons, or that are located 
in areas where vouchers under this subsection are 
difficult to use, as specified in subparagraph (D)(ii)(II). 
Any units of project-based assistance that are attached 
to units previously subject to federally required rent 
restrictions or receiving another type of long-term 
housing subsidy provided by the Secretary shall not 
count toward the percentage limitation under clause 
(i) of this subparagraph. The Secretary may, by regula-
tion, establish additional categories for the exception 
under this clause.’’; 
(3) by striking subparagraph (D) and inserting the following 
new subparagraph: 
‘‘(D) INCOME-MIXING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), not more than the greater of 25 dwelling units 
or 25 percent of the dwelling units in any project 
may be assisted under a housing assistance payment 
contract for project-based assistance pursuant to this 
paragraph. For purposes of this subparagraph, the 
term ‘project’ means a single building, multiple contig-
uous buildings, or multiple buildings on contiguous 
parcels of land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) CERTAIN FAMILIES.—The limitation under 
clause (i) shall not apply to dwelling units assisted 
under a contract that are exclusively made avail-
able to elderly families or to households eligible 
for supportive services that are made available 
to the assisted residents of the project, according 
to standards for such services the Secretary may 
establish. 
‘‘(II) CERTAIN AREAS.—With respect to areas 
in which tenant-based vouchers for assistance 
under this subsection are difficult to use, as deter-
mined by the Secretary, and with respect to census 
tracts with a poverty rate of 20 percent or less, 
clause (i) shall be applied by substituting ‘40 per-
cent’ for ‘25 percent’, and the Secretary may, by 
regulation, establish additional conditions. 
‘‘(III) CERTAIN
CONTRACTS.—The limitation 
under clause (i) shall not apply with respect to 
contracts or renewal of contracts under which a 
greater percentage of the dwelling units in a 
project were assisted under a housing assistance 
payment contract for project-based assistance 
pursuant to this paragraph on the date of the 
enactment of the Housing Opportunity Through 
Modernization Act of 2016.
H. R. 3700—17 
‘‘(IV) CERTAIN
PROPERTIES.—Any units of 
project-based assistance under this paragraph that 
are attached to units previously subject to federally 
required rent restrictions or receiving other 
project-based assistance provided by the Secretary 
shall not count toward the percentage limitation 
imposed by this subparagraph (D). 
‘‘(iii) ADDITIONAL
MONITORING
AND
OVERSIGHT 
REQUIREMENTS.—The Secretary may establish addi-
tional requirements for monitoring and oversight of 
projects in which more than 40 percent of the dwelling 
units are assisted under a housing assistance payment 
contract for project-based assistance pursuant to this 
paragraph.’’; 
(4) by striking subparagraph (F) and inserting the following 
new subparagraph: 
‘‘(F) CONTRACT TERM.— 
‘‘(i) TERM.—A housing assistance payment contract 
pursuant to this paragraph between a public housing 
agency and the owner of a project may have a term 
of up to 20 years, subject to— 
‘‘(I) the availability of sufficient appropriated 
funds for the purpose of renewing expiring con-
tracts for assistance payments, as provided in 
appropriation Acts and in the agency’s annual con-
tributions contract with the Secretary, provided 
that in the event of insufficient appropriated funds, 
payments due under contracts under this para-
graph shall take priority if other cost-saving meas-
ures that do not require the termination of an 
existing contract are available to the agency; and 
‘‘(II) compliance with the inspection require-
ments under paragraph (8), except that the agency 
shall not be required to make biennial inspections 
of each assisted unit in the development. 
‘‘(ii) ADDITION OF ELIGIBLE UNITS.—Subject to the 
limitations of subparagraphs (B) and (D), the agency 
and the owner may add eligible units within the same 
project to a housing assistance payments contract at 
any time during the term thereof without being subject 
to any additional competitive selection procedures. 
‘‘(iii) HOUSING UNDER CONSTRUCTION OR RECENTLY 
CONSTRUCTED.—An agency may enter into a housing 
assistance payments contract with an owner for any 
unit that does not qualify as existing housing and 
is under construction or recently has been constructed 
whether or not the agency has executed an agreement 
to enter into a contract with the owner, provided that 
the owner demonstrates compliance with applicable 
requirements prior to execution of the housing assist-
ance payments contract. This clause shall not subject 
a housing assistance payments contract for existing 
housing under this paragraph to such requirements 
or otherwise limit the extent to which a unit may 
be assisted as existing housing. 
‘‘(iv) ADDITIONAL CONDITIONS.—The contract may 
specify additional conditions, including with respect