‘‘(2) 
FLEXIBILITY
AND
COST-EFFECTIVE-
NESS.—To give public housing agencies and the Sec-
retary of Housing and Urban Development the flexi-
bility to design and implement various approaches 
for providing and administering housing assistance 
that reduce cost and achieve greater cost effective-
ness in Federal expenditures. 
‘‘(3) HOUSING CHOICE.—To increase housing 
choices for low-income families.’’; 
(3) in subsection (b)— 
(A) by striking ‘‘(b) PROGRAM AUTHOR-
ITY.—The Secretary’’ and inserting the fol-
lowing: 
‘‘(b) PROGRAM AUTHORITY.— 
‘‘(1) IN GENERAL.—The Secretary’’; 
(B) in the first sentence, by striking ‘‘con-
duct a demonstration program’’ and all that fol-
lows through ‘‘Indian housing program and’’ 
and inserting ‘‘carry out a program under this 
section under which public housing agencies ad-
ministering the public housing program or’’; 
(C) by inserting after the first sentence the 
following: ‘‘There shall be no limitation on the 
number of public housing agencies that may 
participate in the program under this section.’’; 
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(D) by striking ‘‘The Secretary shall’’ and 
all that follows through ‘‘demonstration.’’ and 
inserting the following: 
‘‘(2) IDENTIFICATION
OF
REPLICABLE
MOD-
ELS.—The Secretary shall provide training and tech-
nical assistance under the program and conduct de-
tailed evaluations of various agencies to identify 
replicable program models promoting the purposes 
of the program.’’; 
(E) by striking ‘‘Under the demonstration’’ 
and inserting the following: 
‘‘(3) COMBINATION
OF
ASSISTANCE.—Under 
the program under this section’’; and 
(F) by striking ‘‘operating assistance pro-
vided under section 9 of the United States 
Housing Act of 1937, modernization assistance 
provided under section 14’’ and inserting 
‘‘amounts provided to the agency from the Op-
erating Fund under section 9(e) of the United 
States Housing Act of 1937, amounts provided 
to the agency from the Capital Fund under sec-
tion 9(d)’’; 
(4) in subsection (c)— 
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(A) in the matter preceding paragraph (1), 
by striking ‘‘demonstration’’ and inserting ‘‘pro-
gram under this section’’; 
(B) in paragraph (1), by striking ‘‘9, and 
14’’ and inserting ‘‘9(d), and 9(e)’’; 
(C) in paragraph (3)— 
(i) in subparagraph (A), by striking 
‘‘demonstration’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘self-sufficiency’’ 
and inserting ‘‘economic independ-
ence’’; and 
(II) by striking ‘‘purpose of this 
demonstration’’ and inserting ‘‘pur-
pose of the program under subsection 
(a)(1)’’; 
(iii) in subparagraph (D), by striking 
‘‘demonstration’’ and inserting ‘‘program 
under this section;’’; 
(iv) in subparagraph (E), by striking 
‘‘demonstration program’’ and inserting 
‘‘program under this section’’; 
(v) by redesignating subparagraphs 
(A), (B), (C), (D), and (E) as subpara-
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graphs (B), (C), (D), (G), and (H), respec-
tively; 
(vi) by inserting before subparagraph 
(B), as so redesignated, the following: 
‘‘(A) actions to be taken under the pro-
posed program to achieve the purposes of the 
program under paragraphs (1), (2), and (3) of 
subsection (a);’’; and 
(vii) by inserting after subparagraph 
(D), as so redesignated, the following: 
‘‘(E) hardship exceptions consistent with 
the purposes under subsection (a) under which 
tenants may be temporarily exempted from 
compliance with the program operated by the 
agency in the event of extenuating cir-
cumstances preventing such compliance and a 
process that provides tenants with recourse to 
a speedy determination regarding such an ex-
ception and makes available the contents and 
results of such a determination available to the 
public and the board of directors or other gov-
erning body on request of the tenant concerned 
and the director or other head official of the 
agency; 
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‘‘(F) providing assisted families and par-
ticipants in the program operated by the agency 
with an informal administrative hearing or 
grievance process, prior to any eviction or ter-
mination of assistance, which process shall 
make the content and determination of the 
hearing available to the public and the board of 
directors or other governing body on request of 
the tenant concerned and the director or other 
head official of the agency;’’; and 
(D) in paragraph (4), by striking ‘‘dem-
onstration’’ and inserting ‘‘proposed program’’; 
(5) in subsection (d)— 
(A) by striking ‘‘(d) SELECTION.—In se-
lecting among applications, the Secretary shall 
take into account the potential of each agency 
to plan and carry out a program under the 
demonstration’’ and inserting the following: 
‘‘(d) APPLICATIONS FOR PARTICIPATION.— 
‘‘(1) SUBMISSION; STANDARDS FOR PARTICIPA-
TION.—The Secretary shall provide for public hous-
ing agencies to submit applications for participation 
in the program under this section and shall estab-
lish, and make public, standards and requirements 
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