‘‘(ii) AMOUNT.—The amount of an in-
centive payment made to an eligible owner 
under clause (i) may not exceed 200 per-
cent of the monthly housing assistance 
payment made to the eligible owner for the 
eligible unit. 
‘‘(iii) CONDITIONS PERMITTED.—Sub-
ject to paragraph (7), a public housing 
agency may require the owner of an eligi-
ble unit, as a condition of receiving an in-
centive payment under clause (i), to com-
mit to lease the eligible unit to tenants as-
sisted under this subsection for more than 
1 year. 
‘‘(iv) LIMIT.—The owner of an eligible 
unit may not receive more than 1 incentive 
payment under clause (i), regardless of— 
‘‘(I) the number of eligible units 
owned by the owner; or 
‘‘(II) the number of public hous-
ing agencies with which the owner has 
entered into housing assistance pay-
ment contracts.’’. 
(b) SECURITY DEPOSIT PAYMENTS.—Section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 
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1437f(o)), as amended by subsection (a), is amended by 
adding at the end the following: 
‘‘(22) SECURITY DEPOSIT PAYMENTS.— 
‘‘(A) SECURITY
DEPOSIT
PAYMENT
AU-
THORITY.—The Secretary shall provide assist-
ance to public housing agencies to be used to 
pay the owner of a dwelling unit assisted under 
this subsection for a security deposit, or a sub-
stantial portion thereof, on behalf of the tenant 
of the dwelling unit in accordance with subpara-
graph (B). 
‘‘(B) MINIMUM
PHA
REQUIREMENTS.—A 
public housing agency that receives assistance 
from the Secretary under subparagraph (A) 
shall administer the assistance in accordance 
with the following conditions: 
‘‘(i) The public housing agency shall 
pay the owners of dwelling units assisted 
under this subsection for a security de-
posit, or a substantial portion thereof, in 
an amount determined by the public hous-
ing agency, on behalf of the tenants of the 
dwelling units. 
‘‘(ii) In making payments to owners of 
dwelling units under clause (i), the public 
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housing agency shall give priority to own-
ers of dwelling units occupied by extremely 
low-income families. 
‘‘(iii) The owner of a dwelling unit 
may deduct amounts from a security de-
posit payment received under clause (i) to 
cover damages beyond normal wear and 
tear caused by the tenant of the dwelling 
unit, any member of the tenant’s house-
hold, or any guest or other person under 
the tenant’s control. 
‘‘(iv) The public housing agency shall 
conduct a damage claims process where-
by— 
‘‘(I) in order to deduct amounts 
from a security deposit payment re-
ceived under clause (i), the owner of 
a covered dwelling unit must submit a 
claim to the public housing agency 
with an itemized list of damages and 
evidence and request reimbursement; 
and 
‘‘(II) the tenant of a covered 
dwelling unit may refute a claim sub-
mitted under subclause (I). 
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