I 
110TH CONGRESS 
1ST SESSION H. R. 1851 
To reform the housing choice voucher program under section 8 of the United 
States Housing Act of 1937. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mrs. BIGGERT, and 
Mr. SHAYS) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To reform the housing choice voucher program under section 
8 of the United States Housing Act of 1937. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Section 8 Voucher Re-
form Act of 2007’’. 
SEC. 2. INSPECTION OF DWELLING UNITS. 
Section 8(o)(8) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(8)) is amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
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‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling 
unit for which a housing assistance pay-
ment contract is established under this 
subsection, the public housing agency (or 
other entity pursuant to paragraph (11)) 
shall inspect the unit before any assistance 
payment is made to determine whether the 
dwelling unit meets the housing quality 
standards under subparagraph (B), except 
as provided in clause (ii) of this subpara-
graph. 
‘‘(ii) 
CORRECTION
OF
NON-LIFE 
THREATENING CONDITIONS.—In the case 
of any dwelling unit that is determined, 
pursuant to an inspection under clause (i), 
not to meet the housing quality standards 
under subparagraph (B), assistance pay-
ments may be made for the unit notwith-
standing subparagraph (C) if failure to 
meet such standards is a result only of 
non-life threatening conditions. A public 
housing agency making assistance pay-
ments pursuant to this clause for a dwell-
ing unit shall, 30 days after the beginning 
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of the period for which such payments are 
made, suspend any assistance payments 
for the unit if any deficiency resulting in 
noncompliance with the housing quality 
standards has not been corrected by such 
time, and may not resume such payments 
until each such deficiency has been cor-
rected.’’; and 
(2) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) BIENNIAL INSPECTIONS.— 
‘‘(i) 
REQUIREMENT.—Each 
public 
housing agency providing assistance under 
this subsection (or other entity, as pro-
vided in paragraph (11)) shall, for each as-
sisted dwelling unit, make biennial inspec-
tions during the term of the housing as-
sistance payments contract for the unit to 
determine whether the unit is maintained 
in accordance with the requirements under 
subparagraph (A). The agency (or other 
entity) shall retain the records of the in-
spection for a reasonable time and shall 
make the records available upon request to 
the Secretary, the Inspector General for 
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the Department of Housing and Urban 
Development, and any auditor conducting 
an audit under section 5(h). 
‘‘(ii) SUFFICIENT
INSPECTION.—An 
inspection of a dwelling unit shall be suffi-
cient to comply with the inspection require-
ment under clause (i) if— 
‘‘(I) the inspection was conducted 
pursuant to requirements under a 
Federal, State, or local housing assist-
ance program (including the HOME 
investment 
partnerships 
program 
under title II of the Cranston-Gon-
zalez National Affordable Housing 
Act (42 U.S.C. 12721 et seq.)); and 
‘‘(II) pursuant to such inspec-
tion, the dwelling was determined to 
meet the standards or requirements 
regarding housing quality or safety 
applicable to units assisted under such 
program, and the public housing 
agency has certified to the Secretary 
that such standards or requirements 
provide the same protection to occu-
pants of dwelling units meeting such 
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standards or requirements as, or 
greater protection than, the housing 
quality standards under subparagraph 
(B).’’. 
SEC. 3. RENT REFORM AND INCOME REVIEWS. 
(a) RENT FOR PUBLIC HOUSING AND SECTION 8 
PROGRAMS.—Section 3 of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(a)) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1) by inserting ‘‘LOW- 
INCOME OCCUPANCY REQUIREMENT AND RENT-
AL PAYMENTS.—’’ after ‘‘(1)’’; and 
(B) by adding at the end the following new 
paragraphs: 
‘‘(6) REVIEWS OF FAMILY INCOME.— 
‘‘(A) FREQUENCY.—Reviews of family in-
come for purposes of this section shall be 
made— 
‘‘(i) in the case of all families, upon 
the initial provision of housing assistance 
for the family; 
‘‘(ii) annually thereafter, except as 
provided in subparagraph (B)(i); 
‘‘(iii) upon the request of the family, 
at any time the income or deductions 
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(under subsection (b)(5)) of the family 
change by an amount that is estimated to 
result in a decrease of $1,500 (or such 
lower amount as the public housing agency 
may, at the option of the agency, establish) 
or more in annual adjusted income; and 
‘‘(iv) at any time the income or deduc-
tions (under subsection (b)(5)) of the fam-
ily change by an amount that is estimated 
to result in an increase of $1,500 or more 
in annual adjusted income, except that any 
increase in the earned income of a family 
shall not be considered for purposes of this 
clause (except that earned income may be 
considered if the increase corresponds to 
previous decreases under clause (iii)). 
‘‘(B) FIXED-INCOME FAMILIES.— 
‘‘(i) SELF CERTIFICATION AND 3-YEAR 
REVIEW.—In the case of any family de-
scribed in clause (ii), after the initial re-
view of the family’s income pursuant to 
subparagraph (A)(i), the public housing 
agency or owner shall not be required to 
conduct a review of the family’s income 
pursuant to subparagraph (A)(ii) for any 
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year for which such family certifies, in ac-
cordance with such requirements as the 
Secretary shall establish, that the income 
of the family meets the requirements of 
clause (ii) of this subparagraph, except 
that the public housing agency or owner 
shall conduct a review of each such fam-
ily’s income not less than once every 3 
years. 
‘‘(ii) ELIGIBLE FAMILIES.—A family 
described in this clause is a family who has 
an income, as of the most recent review 
pursuant to subparagraph (A) or clause (i) 
of this subparagraph, of which 90 percent 
or more consists of fixed income, as such 
term is defined in clause (iii). 
‘‘(iii) FIXED INCOME.—For purposes 
of this subparagraph, the term ‘fixed in-
come’ includes income from— 
‘‘(I) the supplemental security in-
come program under title XVI of the 
Social Security Act, including supple-
mentary payments pursuant to an 
agreement for Federal administration 
under section 1616(a) of the Social 
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Security Act and payments pursuant 
to an agreement entered into under 
section 212(b) of Public Law 93–66; 
‘‘(II) Social Security payments; 
‘‘(III) Federal, State, local and 
private pension plans; and 
‘‘(IV) other periodic payments re-
ceived from annuities, insurance poli-
cies, retirement funds, disability or 
death benefits, and other similar types 
of periodic receipts. 
‘‘(C) IN GENERAL.—Reviews of family in-
come for purposes of this section shall be sub-
ject to the provisions of section 904 of the 
Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988. 
‘‘(7) CALCULATION OF INCOME.— 
‘‘(A) USE OF PRIOR YEAR’S INCOME.—Ex-
cept as otherwise provided in this paragraph, in 
determining the income of a family for a year, 
a public housing agency or owner may use the 
income of the family as determined by the agen-
cy or owner for the preceding year, taking into 
consideration any redetermination of income 
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during such prior year pursuant to clause (iii) 
or (iv) of paragraph (6)(A). 
‘‘(B) EARNED INCOME.—For purposes of 
this section, the earned income of a family for 
a year shall be the amount of earned income by 
the family in the prior year minus an amount 
equal to 10 percent of the lesser of such prior 
year’s earned income or $10,000, except that 
the income of a family for purposes of section 
16 (relating to eligibility for assisted housing 
and income mix) shall be determined without 
regard to any reduction under this subpara-
graph. 
‘‘(C) INFLATIONARY
ADJUSTMENT
FOR 
FIXED INCOME FAMILIES.—If, for any year, a 
public housing agency or owner determines the 
income for any family described in paragraph 
(6)(B)(ii), or the amount of fixed income of any 
other family, based on the prior year’s income 
or fixed income, respectively, pursuant to sub-
paragraph (A), such prior year’s income or 
fixed income, respectively, shall be adjusted by 
applying an inflationary factor as the Secretary 
shall, by regulation, establish. 
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‘‘(D) OTHER INCOME.—If, for any year, a 
public housing agency or owner determines the 
income for any family based on the prior year’s 
income, with respect to prior year calculations 
of types of income not subject to subparagraph 
(B), a public housing agency or owner may 
make other adjustments as it considers appro-
priate to reflect current income. 
‘‘(E) SAFE
HARBOR.—A public housing 
agency or owner may, to the extent such infor-
mation is available to the public housing agency 
or owner, determine the family’s income for 
purposes of this section based on timely income 
determinations made for purposes of other 
means-tested Federal public assistance pro-
grams (including the program for block grants 
to States for temporary assistance for needy 
families under part A of title IV of the Social 
Security Act, a program for medicaid assistance 
under a State plan approved under title XIX of 
the Social Security Act, and the food stamp 
program as defined in section 3(h) of the Food 
Stamp Act of 1977). 
‘‘(F) PHA AND OWNER COMPLIANCE.—A 
public housing agency or owner may not be con-
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sidered to fail to comply with this paragraph or 
paragraph (6) due solely to any de minimus er-
rors made by the agency or owner in calculating 
family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as sub-
section (d). 
(b) INCOME.—Section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended— 
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) INCOME.—The term ‘income’ means, with 
respect to a family, income received from all sources 
by each member of the household who is 18 years 
of age or older or is the head of household, as deter-
mined in accordance with criteria prescribed by the 
Secretary, in consultation with the Secretary of Ag-
riculture, subject to the following requirements: 
‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual in-
come from assets, and profit or loss from a 
business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include— 
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‘‘(i) any imputed return on assets; 
and 
‘‘(ii) any amounts that would be eligi-
ble for exclusion under section 1613(a)(7) 
of the Social Security Act (42 U.S.C. 
1382b(a)(7)). 
‘‘(C) EARNED
INCOME
OF
STUDENTS.— 
Such term does not include earned income of 
any dependent earned during any period that 
such dependent is attending school on a full- 
time basis. 
‘‘(D) OTHER
EXCLUSIONS.—Such term 
shall not include other exclusions from income 
as are established by the Secretary or any 
amount required by Federal law to be excluded 
from consideration as income. The Secretary 
may not require a public housing agency or 
owner to maintain records of any amounts ex-
cluded from income pursuant to this subpara-
graph.’’; and 
(2) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted 
income’ means, with respect to a family, the amount 
(as determined by the public housing agency or 
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owner) of the income of the members of the family 
residing in a dwelling unit or the persons on a lease, 
after any deductions from income as follows: 
‘‘(A) ELDERLY
AND
DISABLED
FAMI-
LIES.—$725 in the case of any family that is 
an elderly family or a disabled family. 
‘‘(B) DEPENDENTS.—In the case of any 
family that includes a member or members 
who— 
‘‘(i) are less than 18 years of age or 
attending school or vocational training on 
a full-time basis; or 
‘‘(ii) is a person with disabilities who 
is 18 years of age or older and resides in 
the household, 
$500 for each such member. 
‘‘(C) HEALTH AND MEDICAL EXPENSES.— 
The amount, if any, by which 10 percent of an-
nual family income is exceeded by the sum of— 
‘‘(i) in the case of any elderly or dis-
abled family, any unreimbursed health and 
medical care expenses; and 
‘‘(ii) any unreimbursed reasonable at-
tendant care and auxiliary apparatus ex-
penses for each handicapped member of 
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the family, to the extent necessary to en-
able any member of such family to be em-
ployed. 
‘‘(D) PERMISSIVE DEDUCTIONS.—Such ad-
ditional deductions as a public housing agency 
may, at its discretion, establish, except that the 
Secretary shall establish procedures to ensure 
that such deductions do not increase Federal 
expenditures. 
The Secretary shall annually adjust the amounts of 
the exclusions under subparagraphs (A) and (B), as 
such amounts may have been previously adjusted, by 
applying an inflationary factor as the Secretary 
shall, by regulation, establish. If the dollar amount 
of any such exclusion determined for any year by ap-
plying such inflationary factor is not a multiple of 
$25, the Secretary shall round such amount to the 
next lowest multiple of $25.’’. 
(c) HOUSING CHOICE VOUCHER PROGRAM.—Para-
graph (5) of section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended— 
(1) in the paragraph heading, by striking ‘‘AN-
NUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 
(2) in subparagraph (A)— 
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(A) by striking ‘‘the provisions of’’ and in-
serting ‘‘paragraphs (6) and (7) of section 3(a) 
and to’’; and 
(B) by striking ‘‘and shall be conducted 
upon the initial provision of housing assistance 
for the family and thereafter not less than an-
nually’’; and 
(3) in subparagraph (B), by striking the second 
sentence. 
(d) 
ENHANCED
VOUCHER
PROGRAM.—Section 
8(t)(1)(D) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ 
and inserting ‘‘annual adjusted income’’. 
(e) EFFECTIVE
DATE
AND
TRANSITION.—The 
amendments made by this section shall apply with respect 
to fiscal year 2008 and fiscal years thereafter. 
SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS 
AND INCOME. 
(a) ASSETS.—Section 16 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437n) is amended by insert-
ing after subsection (d) the following new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS-
SETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to para-
graph (3) and notwithstanding any other provision 
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of this Act, a dwelling unit assisted under this Act 
may not be rented and assistance under this Act 
may not be provided, either initially or at each recer-
tification of family income, to any family— 
‘‘(A) whose net family assets exceed 
$100,000, as such amount is adjusted annually 
by applying an inflationary factor as the Sec-
retary considers appropriate; or 
‘‘(B) who has a present ownership interest 
in, and a legal right to reside in, real property 
that is suitable for occupancy as a residence, 
except that the prohibition under this subpara-
graph shall not apply to— 
‘‘(i) any property for which the family 
is receiving assistance under this Act; 
‘‘(ii) any person that is a victim of do-
mestic violence; or 
‘‘(iii) any family that is making a 
good faith effort to sell such property. 
‘‘(2) NET FAMILY ASSETS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘net family assets’ means, 
for all members of the household, the net cash 
value of all assets after deducting reasonable 
costs that would be incurred in disposing of real 
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property, savings, stocks, bonds, and other 
forms of capital investment. Such term does not 
include interests in Indian trust land, equity ac-
counts in homeownership programs of the De-
partment of Housing and Urban Development, 
or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not 
include— 
‘‘(i) the value of personal property, ex-
cept for items of personal property of sig-
nificant value, as the public housing agen-
cy may determine; 
‘‘(ii) the value of any retirement ac-
count; and 
‘‘(iii) any amounts recovered in any 
civil action or settlement based on a claim 
of malpractice, negligence, or other breach 
of duty owed to a member of the family 
and arising out of law, that resulted in a 
member of the family being disabled 
(under the meaning given such term in 
section 1614 of the Social Security Act (42 
U.S.C. 1382c)). 
‘‘(C) TRUST
FUNDS.—In cases where a 
trust fund has been established and the trust is 
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not revocable by, or under the control of, any 
member of the family or household, the value of 
the trust fund shall not be considered an asset 
of a family if the fund continues to be held in 
trust. Any income distributed from the trust 
fund shall be considered income for purposes of 
section 3(b) and any calculations of annual 
family income, except in the case of medical ex-
penses for a minor. 
‘‘(D) 
SELF-CERTIFICATION.—A 
public 
housing agency or owner may determine the net 
assets of a family, for purposes of this section, 
based on the amounts reported by the family at 
the time the agency or owner reviews the fam-
ily’s income. 
‘‘(3) 
COMPLIANCE
FOR
PUBLIC
HOUSING 
DWELLING UNITS.—When recertifying family income 
with respect to families residing in public housing 
dwelling units, a public housing agency may, in the 
discretion of the agency and only pursuant to a pol-
icy that is set forth in the public housing agency 
plan under section 5A for the agency, choose not to 
enforce the limitation under paragraph (1). 
‘‘(4) AUTHORITY TO DELAY EVICTIONS.—In the 
case of a family residing in a dwelling unit assisted 
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under this Act who does not comply with the limita-
tion under paragraph (1), the public housing agency 
or project owner may delay eviction of the family 
based on such noncompliance for a period of not 
more than 6 months.’’. 
(b) INCOME.—The United States Housing Act of 
1937 is amended— 
(1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), 
by striking the first sentence and inserting the fol-
lowing: ‘‘Dwelling units assisted under this Act may 
be rented, and assistance under this Act may be pro-
vided, whether initially or at time of recertification, 
only to families who are low-income families at the 
time such initial or continued assistance, respec-
tively, is provided. When recertifying family income 
with respect to families residing in public housing 
dwelling units, a public housing agency may, in the 
discretion of the agency and only pursuant to a pol-
icy that is set forth in the public housing agency 
plan under section 5A for the agency, choose not to 
enforce the prohibition under the preceding sentence. 
When recertifying family income with respect to 
families residing in dwelling units for which project- 
based assistance is provided, a project owner may, in 
the owner’s discretion and only pursuant to a policy 
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adopted by such owner, choose not to enforce such 
prohibition. In the case of a family residing in a 
dwelling unit assisted under this Act who does not 
comply with the prohibition under the first sentence 
of this paragraph, the public housing agency or 
project owner may delay eviction of the family based 
on such noncompliance for a period of not more than 
6 months.’’; and 
(2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), 
by striking the matter preceding subparagraph (A) 
and inserting the following: 
‘‘(4) ELIGIBLE
FAMILIES.—Assistance under 
this subsection may be provided, whether initially or 
at each recertification, only pursuant to subsection 
(t) to a family eligible for assistance under such sub-
section or to a family who at the time of such initial 
or continued assistance, respectively, is a low-income 
family that is—’’. 
SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORK-
ING FAMILIES. 
(a) VOUCHERS.—Section 16(b)(1) of the United 
States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is 
amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (A) the poverty line (as such 
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term is defined in section 673 of the Omnibus Budg-
et Reconciliation Act of 1981 (42 U.S.C. 9902), in-
cluding any revision required by such section) appli-
cable to a family of the size involved, or (B)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (A) of this sen-
tence shall not apply in the case of families residing 
in Puerto Rico or any other territory or possession 
of the United States’’. 
(b) PUBLIC HOUSING.—Section 16(a)(2)(A) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437n(a)(2)(A)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (i) the poverty line (as such 
term is defined in section 673 of the Omnibus Budg-
et Reconciliation Act of 1981 (42 U.S.C. 9902), in-
cluding any revision required by such section) appli-
cable to a family of the size involved, or (ii)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (i) of this sen-
tence shall not apply in the case of families residing 
in Puerto Rico or any other territory or possession 
of the United States’’. 
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(c) PROJECT-BASED SECTION 8 ASSISTANCE.—Sec-
tion 16(b)(1) of the United States Housing Act of 1937 
(42 U.S.C. 1437n(b)(1)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (A) the poverty line (as such 
term is defined in section 673 of the Omnibus Budg-
et Reconciliation Act of 1981 (42 U.S.C. 9902), in-
cluding any revision required by such section) appli-
cable to a family of the size involved, or (B)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (A) of this sen-
tence shall not apply in the case of families residing 
in Puerto Rico or any other territory or possession 
of the United States’’. 
SEC. 6. VOUCHER RENEWAL FUNDING. 
(a) IN GENERAL.—Section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) is amended by 
striking subsection (dd) and inserting the following new 
subsection: 
‘‘(dd) TENANT-BASED VOUCHERS.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated, for each of 
fiscal years 2008 through 2012, such sums as may 
be necessary for tenant-based assistance under sub-
section (o) for the following purposes: 
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‘‘(A) To renew all expiring annual con-
tributions contracts for tenant-based rental as-
sistance. 
‘‘(B) To provide tenant-based rental assist-
ance for— 
‘‘(i) relocation and replacement of 
housing units that are demolished or dis-
posed of pursuant to the Omnibus Consoli-
dated Rescissions and Appropriations Act 
of 1996 (Public Law 104–134); 
‘‘(ii) conversion of section 23 projects 
to assistance under this section; 
‘‘(iii) the family unification program 
under subsection (x) of this section; 
‘‘(iv) relocation of witnesses in con-
nection with efforts to combat crime in 
public and assisted housing pursuant to a 
request from a law enforcement or pros-
ecution agency; 
‘‘(v) enhanced vouchers authorized 
under subsection (t) of this section; 
‘‘(vi) vouchers in connection with the 
HOPE VI program under section 24; 
‘‘(vii) demolition or disposition of pub-
lic housing units pursuant to section 18 of 
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the United States Housing Act of 1937 
(42 U.S.C. 1437p); 
‘‘(viii) mandatory and voluntary con-
versions of public housing to vouchers, pur-
suant to sections 33 and 22 of the United 
States Housing Act of 1937, respectively 
(42 U.S.C. 1437z–5, 1437t); 
‘‘(ix) vouchers necessary to comply 
with a consent decree or court order; 
‘‘(x) vouchers to replace dwelling units 
that cease to receive project-based assist-
ance under subsection (b), (c), (d), (e), or 
(v) of this section; 
‘‘(xi) tenant protection assistance, in-
cluding replacement and relocation assist-
ance; and 
‘‘(xii) emergency voucher assistance 
for the protection of victims of domestic vi-
olence, dating violence, sexual assault, or 
stalking. 
Subject only to the availability of sufficient 
amounts provided in appropriation Acts, the 
Secretary shall provide tenant-based rental as-
sistance to replace all dwelling units that cease 
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to be available as assisted housing as a result 
of clause (i), (ii), (v), (vi), (vii), (viii), or (x). 
‘‘(2) ALLOCATION
OF
RENEWAL
FUNDING 
AMONG PUBLIC HOUSING AGENCIES.— 
‘‘(A) From amounts appropriated for each 
year pursuant to paragraph (1)(A), the Sec-
retary shall provide renewal funding for each 
public housing agency— 
‘‘(i) based on leasing and costs from 
the preceding calendar year, as adjusted by 
an annual adjustment factor to be estab-
lished by the Secretary; 
‘‘(ii) by making any adjustments nec-
essary to provide for the first-time renewal 
of 
vouchers 
funded 
under 
paragraph 
(1)(B); and 
‘‘(iii) by making such other adjust-
ments as the Secretary considers appro-
priate, including adjustments necessary to 
address changes in voucher utilization 
rates and voucher costs related to natural 
and other major disasters. 
‘‘(B) LEASING AND COST DATA.—For pur-
poses of subparagraph (A)(i), leasing and cost 
data shall be calculated annually by using the 
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average for the preceding calendar year. Such 
leasing data shall be adjusted to include vouch-
ers that were set aside under a commitment to 
provide project-based assistance under sub-
section (o)(13) and to exclude amounts funded 
through advances under paragraph (3). 
‘‘(C) MOVING TO WORK.—Notwithstanding 
subparagraphs (A) and (B), each public hous-
ing agency participating at any time in the 
moving to work demonstration under section 
204 of the Departments of Veterans Affairs 
and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1996 
(42 U.S.C. 1437f note) shall be funded pursu-
ant to its agreement under such program and 
shall be subject to any pro rata adjustment 
made under subparagraph (D)(i). 
‘‘(D) PRO RATA ALLOCATION.— 
‘‘(i) INSUFFICIENT
FUNDS.—To the 
extent that amounts made available for a 
fiscal year are not sufficient to provide 
each public housing agency with the full al-
location for the agency determined pursu-
ant to subparagraphs (A) and (C), the 
Secretary shall reduce such allocation for 
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each agency on a pro rata basis, except 
that renewal funding of enhanced vouchers 
under section 8(t) shall not be subject to 
such proration. 
‘‘(ii) EXCESS FUNDS.—To the extent 
that amounts made available for a fiscal 
year exceed the amount necessary to pro-
vide each housing agency with the full allo-
cation for the agency determined pursuant 
to subparagraphs (A) and (C), such excess 
amounts shall be used for the purposes 
specified in subparagraphs (B) and (D) of 
paragraph (4). 
‘‘(3) ADVANCES.— 
‘‘(A) AUTHORITY.—During the last 3 
months of each calendar year, the Secretary 
shall provide amounts to any public housing 
agency, at the request of the agency, in an 
amount up to two percent of the allocation for 
the agency for such calendar year, subject to 
subparagraph (C). 
‘‘(B) USE.—Amounts advanced under sub-
paragraph (A) may be used to pay for addi-
tional voucher costs, including costs related to 
temporary overleasing. 
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‘‘(C) USE
OF
PRIOR
YEAR
AMOUNTS.— 
During the last 3 months of a calendar year, if 
amounts previously provided to a public housing 
agency for tenant-based assistance for such 
year or for previous years remain unobligated 
and available to the agency— 
‘‘(i) the agency shall exhaust such 
amounts to cover any additional voucher 
costs under subparagraph (B) before 
amounts advanced under subparagraph (A) 
may be so used; and 
‘‘(ii) the amount that may be ad-
vanced under subparagraph (A) to the 
agency shall be reduced by an amount 
equal to the total of such previously pro-
vided and unobligated amounts. 
‘‘(D) 
REPAYMENT.—Amounts 
advanced 
under subparagraph (A) in a calendar year 
shall be repaid to the Secretary in the subse-
quent calendar year by reducing the amounts 
made available for such agency for such subse-
quent calendar year pursuant to allocation 
under paragraph (2) by an amount equal to the 
amount so advanced to the agency. 
‘‘(4) RECAPTURE.— 
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‘‘(A) IN
GENERAL.—The Secretary shall 
recapture, from amounts provided under the 
annual contributions contract for a public hous-
ing agency for a calendar year, all accumulated 
amounts allocated under paragraph (2) and 
from previous years that are unused by the 
agency at the end of each calendar year ex-
cept— 
‘‘(i) with respect to the recapture 
under this subparagraph at the end of 
2007, an amount equal to one twelfth the 
amount allocated to the public housing 
agency for such year pursuant to para-
graph (2)(A); and 
‘‘(ii) with respect to the recapture 
under this subparagraph at the end of 
each of 2008, 2009, 2010, and 2011, an 
amount equal to 2 percent of such amount 
allocated to the agency for such year. 
‘‘(B) REALLOCATION.—Not later than May 
1 of each calendar year, the Secretary shall— 
‘‘(i) calculate the aggregate unused 
amounts for the preceding year recaptured 
pursuant to subparagraph (A); 
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‘‘(ii) set aside and make available 
such amounts as the Secretary considers 
appropriate to reimburse public housing 
agencies for increased costs related to port-
ability and family self-sufficiency activities 
during such year; and 
‘‘(iii) reallocate all remaining amounts 
among public housing agencies, with pri-
ority given based on the extent to which an 
agency has utilized the amount allocated 
under paragraph (2) for the agency to 
serve eligible families. 
‘‘(C) USE.—Amounts reallocated to a pub-
lic housing agency pursuant to subparagraph 
(B)(iii) may be used only to increase voucher 
leasing rates to the level authorized for the 
agency.’’. 
(b) ABSORPTION OF VOUCHER FROM OTHER AGEN-
CIES.—Section 8(r)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(r)(2)) is amended by adding 
after the period at the end the following: ‘‘The agency 
shall absorb the family into its program for voucher assist-
ance under this section and shall have priority to receive 
additional funding from the Secretary for the housing as-
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sistance provided for such family from amounts made 
available pursuant to subsection (dd)(4)(B).’’ 
SEC. 7. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—Section 8(q) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended— 
(1) in paragraph (1), by striking subparagraphs 
(B) and (C) and inserting the following new sub-
paragraphs: 
‘‘(B) CALCULATION.—The fee under this 
subsection shall— 
‘‘(i) be payable to each public housing 
agency for each month for which a dwell-
ing unit is covered by an assistance con-
tract; 
‘‘(ii) include an amount for the cost of 
issuing voucher to new participants; and 
‘‘(iii) be updated each year using an 
index of changes in wage data or other ob-
jectively measurable data that reflect the 
costs of administering the program for 
such assistance, as determined by the Sec-
retary. 
‘‘(C) PUBLICATION.—The Secretary shall 
cause to be published in the Federal Register 
the fee rate for each geographic area.’’; and 
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(2) in paragraph (4), by striking ‘‘1999’’ and 
inserting ‘‘2007’’. 
(b) REPEAL.—Section 202 of the Departments of 
Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997 (42 
U.S.C. 1437f note; Public Law 104–204; 110 Stat. 2893) 
is hereby repealed. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act. 
SEC. 8. SECTION 8 HOMEOWNERSHIP DOWNPAYMENT PRO-
GRAM. 
Section 8(y)(7) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(y)(7)) is amended by striking sub-
paragraphs (A) and (B) and inserting the following new 
subparagraph: 
‘‘(A) IN GENERAL.—Subject to the provi-
sions of this paragraph, in the case of a family 
on whose behalf rental assistance under section 
8(o) has been provided for a period of not less 
than 12 months prior to the date of receipt of 
downpayment assistance under this paragraph, 
a public housing agency may, in lieu of pro-
viding monthly assistance payments under this 
subsection on behalf of a family eligible for 
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such assistance and at the discretion of the 
agency, provide a downpayment assistance 
grant in accordance with subparagraph (B). 
‘‘(B) GRANT
REQUIREMENTS.—A down-
payment assistance grant under this para-
graph— 
‘‘(i) shall be used by the family only 
as a contribution toward the downpayment 
and reasonable and customary closing 
costs required in connection with the pur-
chase of a home; 
‘‘(ii) shall be in the form of a single 
one-time grant; and 
‘‘(iii) may not exceed $10,000. 
‘‘(C) NO EFFECT ON OBTAINING OUTSIDE 
SOURCES
FOR
DOWNPAYMENT
ASSISTANCE.— 
This Act may not be construed to prohibit a 
public housing agency from providing downpay-
ment assistance to families from sources other 
than a grant provided under this Act, or as de-
termined by the public housing agency.’’. 
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SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT 
REPORTING AGENCIES. 
(a) IN GENERAL.—Section 3 of the United States 
Housing Act of 1937 (42 U.S.C. 1437a) is amended by 
adding at the end the following new subsection: 
‘‘(g) PHA REPORTING
OF RENT PAYMENTS
TO 
CREDIT REPORTING AGENCIES.— 
‘‘(1) AUTHORITY.—To the extent that a family 
receiving tenant-based housing choice vouchers 
under section 8 by a public housing agency agrees 
in writing to reporting under this subsection, the 
public housing agency may submit to consumer re-
porting agencies described in section 603(p) of the 
Fair Credit Reporting Act (15 U.S.C. 1681a) infor-
mation regarding the past rent payment history of 
the family with respect to the dwelling unit for 
which such assistance is provided. 
‘‘(2) FORMAT.—The Secretary, after consulta-
tion with consumer reporting agencies referred in 
paragraph (1), shall establish a system and format 
to be used by public housing agencies for reporting 
of information under such paragraph that provides 
such information in a format and manner that is 
similar to other credit information submitted to such 
consumer reporting agencies and is usable by such 
agencies.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act. 
SEC. 10. PERFORMANCE ASSESSMENTS. 
Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following new paragraph: 
‘‘(21) PERFORMANCE ASSESSMENTS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Secretary 
shall, by regulation, establish standards and 
procedures for assessing the performance of 
public housing agencies in carrying out the pro-
grams for tenant-based rental assistance under 
this subsection and for homeownership assist-
ance under subsection (y). 
‘‘(B) CONTENTS.—The standards and pro-
cedures under this paragraph shall provide for 
assessment of the performance of public hous-
ing agencies in the following areas: 
‘‘(i) Quality of dwelling units obtained 
using such assistance. 
‘‘(ii) Extent of utilization of assist-
ance amounts provided to the agency. 
‘‘(iii) Financial condition of the agen-
cy. 
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‘‘(iv) Timeliness and accuracy of re-
porting by the agency to the Secretary. 
‘‘(v) Effectiveness in carrying out poli-
cies to achieve deconcentration of poverty. 
‘‘(vi) Such other areas as the Sec-
retary considers appropriate. 
‘‘(C) PERIODIC ASSESSMENT.—Using the 
standards and procedures established under this 
paragraph, the Secretary shall conduct an as-
sessment of the performance of each public 
housing agency carrying out a program referred 
to in subparagraph (A) and shall submit a re-
port to the Congress regarding the results of 
each such assessment.’’. 
SEC. 11. PHA PROJECT-BASED ASSISTANCE. 
Section 8(o)(13) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(13)) is amended— 
(1) in subparagraph (H), by inserting before 
the period at the end of the first sentence the fol-
lowing: ‘‘, except that in the case of a contract unit 
that has been allocated low-income housing tax cred-
its and for which the rent limitation pursuant to 
such section 42 is less than the amount that would 
otherwise be permitted under this subparagraph, the 
rent for such unit may, in the sole discretion of a 
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public housing agency, be established at the higher 
section 8 rent, subject only to paragraph (10)(A)’’; 
and 
(2) in subparagraph (I)(i), by inserting before 
the semicolon the following: ‘‘, except that the con-
tract may provide that the maximum rent permitted 
for a dwelling unit shall not be less than the initial 
rent for the dwelling unit under the initial housing 
assistance payments contract covering the unit’’. 
SEC. 12. REPORTS ON RENT BURDEN. 
Section 8(o)(1) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(1)) is amended by striking sub-
paragraph (E) and inserting the following new subpara-
graph: 
‘‘(E) REVIEWS.— 
‘‘(i) RENT BURDENS.—The Secretary 
shall monitor rent burdens and submit a 
report to the Congress annually on the 
percentage of families assisted under this 
subsection, occupying dwelling units of any 
size, that pay more than 30 percent of 
their adjusted incomes for rent. Using in-
formation regularly reported by public 
housing agencies, the Secretary shall pro-
vide public housing agencies, on an annual 
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basis, a report with the information de-
scribed in the first sentence of this clause, 
and may require a public housing agency 
to modify a payment standard that results 
in a significant percentage of families as-
sisted under this subsection, occupying 
dwelling units of any size, paying more 
than 30 percent of their adjusted incomes 
for rent. 
‘‘(ii) CONCENTRATION OF POVERTY.— 
The Secretary shall submit a report to the 
Congress annually on the degree to which 
families assisted under this subsection in 
each metropolitan area are clustered in 
lower rent, higher poverty areas and how, 
and the extent to which, greater geo-
graphic distribution of such assisted fami-
lies could be achieved, including by increas-
ing payment standards for particular com-
munities within such metropolitan areas.’’. 
SEC. 13. EFFECTIVE DATE. 
Except as otherwise specifically provided in this Act, 
this Act and the amendments made by this Act, shall take 
effect on January 1, 2008. 
Æ 
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