income housing by any State, county, munici-
pality, or other governmental body or public en-
tity; or
(C) an entity selected by the Secretary, pur-
suant to subtitle B of title IV, to manage hous-
ing; and
(2) complies with the requirements under sub-
section (b).
(b) GOVERNANCE.—
(1) BOARD OF DIRECTORS.—Each local housing
and management authority shall have a board of di-
rectors or other form of governance as prescribed in
State or local law. No person may be barred from
serving on such board or body because of such per-
son’s residency in a public housing development or
status as an assisted family under title III.
(2) RESIDENT MEMBERSHIP.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), in localities in which a local
housing and management authority is governed
by a board of directors or other similar body, the
board or body shall include not less than 1 mem-
ber who is—
(i) a resident of a public housing
dwelling unit owned or operated by the au-
thority; or
(ii) a member of an assisted family
under title III.
(B) EXCEPTIONS.—The requirement in sub-
paragraph (A) with respect to a resident member
shall not apply to—
(i) any State or local governing body
that serves as a local housing and manage-
ment authority for purposes of this Act and
whose responsibilities include substantial
activities other than acting as the local
housing and management authority, except
that such requirement shall apply to any
advisory committee or organization that is
established by such governing body and
whose responsibilities relate only to the gov-
erning body’s functions as a local housing
and management authority for purposes of
this Act;
(ii) any local housing and manage-
ment authority that owns or operates less
than 250 public housing dwelling units (in-
cluding any authority that does not own or
operate public housing);
(iii) any local housing and manage-
ment authority that manages public hous-
ing consisting primarily of scattered site
public housing;
(iv) any local housing and manage-
ment authority in a State in which State
law specifically precludes public housing
residents or assisted families from serving
on the board of directors or other similar
body of an authority; or
(v) any local housing and management
authority in a State that requires the mem-
bers of the board of directors or other simi-
lar body of a local housing and manage-
ment authority to be salaried and to serve
on a full-time basis.
(3) FULL PARTICIPATION.—No local housing and
management authority may limit or restrict the ca-
pacity or offices in which a member of such board or
body may serve on such board or body solely because
of the member’s status as a resident member.
(4) CONFLICTS
OF
INTEREST.—The Secretary
shall establish guidelines to prevent conflicts of inter-
est on the part of members of the board or directors
or governing body of a local housing and management
authority.
(5) DEFINITION.—For purposes of this sub-
section, the term ‘‘resident member’’ means a member
of the board of directors or other similar governing
body of a local housing and management authority
who is a resident of a public housing dwelling unit
administered or assisted by the authority or is an as-
sisted family (as such term is defined in section 371).
(c) ESTABLISHMENT OF POLICIES.—Any rules, regula-
tions, policies, standards, and procedures necessary to im-
plement policies required under section 107 to be included
in the local housing management plan for a local housing
and management authority shall be approved by the board
of directors or similar governing body of the authority and
shall be publicly available for review upon request.
SEC. 104. DETERMINATION OF ADJUSTED INCOME.
(a) IN GENERAL.—For purposes of this Act, the term
‘‘adjusted income’’ means, with respect to a family, the dif-
ference between the income of the members of the family
residing in a dwelling unit or the persons on a lease and
the amount of any income exclusions for the family under
subsections (b) and (c), as determined by the local housing
and management authority.
(b) MANDATORY EXCLUSIONS FROM INCOME.—In de-
termining adjusted income, a local housing and manage-
ment authority shall exclude from the annual income of a
family the following amounts:
(1) ELDERLY AND DISABLED FAMILIES.—$400
for any elderly or disabled family.
(2) MEDICAL EXPENSES.—The amount by which
3 percent of the annual family income is exceeded by
the sum of—
(A) unreimbursed medical expenses of any
elderly family;
(B) unreimbursed medical expenses of any
nonelderly family, except that this subparagraph
shall apply only to the extent approved in ap-
propriation Acts; and
(C) unreimbursed reasonable attendant care
and auxiliary apparatus expenses for each
handicapped member of the family, to the extent
necessary to enable any member of such family
(including such handicapped member) to be em-
ployed.
(3) CHILD
CARE
EXPENSES.—Any reasonable
child care expenses necessary to enable a member of
the family to be employed or to further his or her edu-
cation.