155
the agency of the relationship of such use of funds made
available under this division, as well as the use of other
funds, to the needs identified in the local housing manage-
ment plan and to the purposes of this division. The public
housing agency shall certify that the report was available
for review and comment by affected tenants prior to its
submission to the Secretary.
(b) REVIEW
OF PHA’S.—The Secretary shall, at
least on an annual basis, make such reviews as may be
necessary or appropriate to determine whether each public
housing agency receiving assistance under this section—
(1) has carried out its activities under this divi-
sion in a timely manner and in accordance with its
local housing management plan; and
(2) has a continuing capacity to carry out its
local housing management plan in a timely manner.
(c) RECORDS.—Each public housing agency shall col-
lect, maintain, and submit to the Secretary such data and
other program records as the Secretary may require, in
such form and in accordance with such schedule as the
Secretary may establish.
SEC. 1109. PET OWNERSHIP.
Pet ownership in housing assisted under this division
that is federally assisted rental housing (as such term is
defined in section 227 of the Housing and Urban-Rural
156
Recovery Act of 1983) shall be governed by the provisions
of section 227 of such Act.
SEC. 1110. ADMINISTRATIVE GRIEVANCE PROCEDURE.
(a) REQUIREMENTS.—Each public housing agency
receiving assistance under this division shall establish and
implement an administrative grievance procedure under
which residents of public housing will—
(1) be advised of the specific grounds of any
proposed adverse public housing agency action;
(2) have an opportunity for a hearing before an
impartial party (including appropriate employees of
the public housing agency) upon timely request with-
in a reasonable period of time;
(3) have an opportunity to examine any docu-
ments or records or regulations related to the pro-
posed action;
(4) be entitled to be represented by another
person of their choice at any hearing;
(5) be entitled to ask questions of witnesses and
have others make statements on their behalf; and
(6) be entitled to receive a written decision by
the public housing agency on the proposed action.
(b) EXCLUSION FROM ADMINISTRATIVE PROCEDURE
OF GRIEVANCES CONCERNING EVICTIONS FROM PUBLIC
HOUSING INVOLVING HEALTH, SAFETY, OR PEACEFUL
157
ENJOYMENT.—A public housing agency may exclude from
its procedure established under subsection (a) any griev-
ance, in any jurisdiction which requires that prior to evic-
tion, a tenant be given a hearing in court, which the Sec-
retary determines provides the basic elements of due proc-
ess (which the Secretary shall establish by rule under sec-
tion 553 of title 5, United States Code), concerning an
eviction from or termination of tenancy in public housing
that involves any activity that threatens the health, safety,
or right to peaceful enjoyment of the premises of other
tenants or employees of the public housing agency or any
drug-related criminal activity on or off such premises. In
the case of any eviction from or termination of tenancy
in public housing not described in the preceding sentence,
each of the following provisions shall apply:
(1) Such eviction or termination shall be sub-
ject to an administrative grievance procedure if the
tenant so evicted or terminated requests a hearing
under such procedure not later than five days after
service of notice of such eviction or termination.
(2) The public housing agency shall take final
action regarding a grievance under paragraph (1)
not later than thirty days after such notice is served.
(3) If the public housing agency fails to provide
a hearing under the grievance procedure pursuant to
158
a request under paragraph (1) and take final action
regarding the grievance before the expiration of the
30-day period under paragraph (2), the notice of
eviction or termination shall be considered void and
shall not be given any force or effect.
(4) If a public housing authority takes final ac-
tion on a grievance for any eviction or termination,
the tenant and any member of the tenant’s house-
hold shall not have any right in connection with any
subsequent eviction or termination notice to request
or be afforded any administrative grievance hearing
during the 1-year period beginning upon the date of
the final action.
(c) INAPPLICABILITY
TO CHOICE-BASED RENTAL
HOUSING ASSISTANCE.—This section may not be con-
strued to require any public housing agency to establish
or implement an administrative grievance procedure with
respect to assisted families under title XIII.
SEC. 1111. HEADQUARTERS RESERVE FUND.
(a) ANNUAL RESERVATION OF AMOUNTS.—Notwith-
standing any other provision of law, the Secretary may
retain not more than 2 percent of the amounts appro-
priated to carry out title XII for any fiscal year for use
in accordance with this section.
159
(b) USE OF AMOUNTS.—Any amounts that are re-
tained under subsection (a) or appropriated for use under
this section shall be available for subsequent allocation to
specific areas and communities, and may only be used for
the Department of Housing and Urban Development
and—
(1) for unforeseen housing needs resulting from
natural and other disasters;
(2) for housing needs resulting from emer-
gencies, as determined by the Secretary, other than
such disasters;
(3) for housing needs related to a settlement of
litigation, including settlement of fair housing litiga-
tion; and
(4) for needs related to the Secretary’s actions
under this division regarding troubled and at-risk
public housing agencies.
Housing needs under this subsection may be met through
the provision of assistance in accordance with title XII or
title XIII, or both.
SEC. 1112. LABOR STANDARDS.
(a) IN GENERAL.—Any contract for grants, sale, or
lease pursuant to this division relating to public housing
shall contain the following provisions:
160
(1) OPERATION.—A provision requiring that
not less than the wages prevailing in the locality, as
determined or adopted (subsequent to a determina-
tion under applicable State or local law) by the Sec-
retary, shall be paid to all contractors and persons
employed in the operation of the low-income housing
development involved.
(2) PRODUCTION.—A provision that not less
than the wages prevailing in the locality, as pre-
determined by the Secretary of Labor pursuant to
the Davis-Bacon Act (40 U.S.C. 276a–276a–5),
shall be paid to all laborers and mechanics employed
in the production of the development involved.
The Secretary shall require certification as to compliance
with the provisions of this section before making any pay-
ment under such contract.
(b) EXCEPTIONS.—Subsection (a) and the provisions
relating to wages (pursuant to subsection (a)) in any con-
tract for grants, sale, or lease pursuant to this division
relating to public housing, shall not apply to any individual
who—
(1) performs services for which the individual
volunteered;
(2)(A) does not receive compensation for such
services; or
161
(B) is paid expenses, reasonable benefits, or a
nominal fee for such services; and
(3) is not otherwise employed at any time in the
construction work.
SEC. 1113. NONDISCRIMINATION.
(a) IN GENERAL.—No person in the United States
shall on the grounds of race, color, national origin, reli-
gion, or sex be excluded from participation in, be denied
the benefits of, or be subjected to discrimination under
any program or activity funded in whole or in part with
amounts made available under this division. Any prohibi-
tion against discrimination on the basis of age under the
Age Discrimination Act of 1975 or with respect to an oth-
erwise qualified handicapped individual as provided in sec-
tion 504 of the Rehabilitation Act of 1973 shall also apply
to any such program or activity.
(b) CIVIL RIGHTS COMPLIANCE.—Each public hous-
ing agency that receives grant amounts under this division
shall use such amounts and carry out its local housing
management plan approved under section 1107 in con-
formity with title VI of the Civil Rights Act of 1964, the
Fair Housing Act, section 504 of the Rehabilitation Act
of 1973, the Age Discrimination Act of 1975, and the
Americans With Disabilities Act of 1990, and shall affirm-
atively further fair housing.
162
SEC. 1114. PROHIBITION ON USE OF FUNDS.
None of the funds made available to the Department
of Housing and Urban Development to carry out this divi-
sion, which are obligated to State or local governments,
public housing agencies, housing finance agencies, or other
public or quasi-public housing agencies, shall be used to
indemnify contractors or subcontractors of the govern-
ment or agency against costs associated with judgments
of infringement of intellectual property rights.
SEC. 1115. INAPPLICABILITY TO INDIAN HOUSING.
Except as specifically provided by law, the provisions
of this title, and titles XII, XIII, XIV, and XV shall not
apply to public housing developed or operated pursuant
to a contract between the Secretary and an Indian housing
authority under the United States Housing Act of 1937
or to housing assisted under the Native American Housing
Assistance and Self-Determination Act of 1996.
SEC. 1116. REGULATIONS.
(a) IN GENERAL.—The Secretary may issue any reg-
ulations necessary to carry out this division. This sub-
section shall take effect on the date of the enactment of
this Act.
(b) RULE OF CONSTRUCTION.—Any failure by the
Secretary to issue any regulations authorized under sub-
section (a) shall not affect the effectiveness of any provi-
163
sion of this division or any amendment made by this divi-
sion.
TITLE XII—PUBLIC HOUSING
Subtitle A—Block Grants
SEC. 1201. BLOCK GRANT CONTRACTS.
(a) IN GENERAL.—The Secretary shall enter into
contracts with public housing agencies under which—
(1) the Secretary agrees to make a block grant
under this title, in the amount provided under sec-
tion 1202(c), for assistance for low-income housing
to the public housing agency for each fiscal year cov-
ered by the contract; and
(2) the agency agrees—
(A) to provide safe, clean, and healthy
housing that is affordable to low-income fami-
lies and services for families in such housing;
(B) to operate, or provide for the oper-
ation, of such housing in a financially sound
manner;
(C) to use the block grant amounts in ac-
cordance with this title and the local housing
management plan for the agency that complies
with the requirements of section 1106;
(D) to involve residents of housing assisted
with block grant amounts in functions and deci-
164
sions relating to management and the quality of
life in such housing;
(E) that the management of the public
housing of the agency shall be subject to ac-
tions authorized under subtitle D of title XV;
(F) that the Secretary may take actions
under section 1205 with respect to improper
use of grant amounts provided under the con-
tract; and
(G) to otherwise comply with the require-
ments under this title.
(b) SMALL PUBLIC HOUSING AGENCY CAPITAL
GRANT OPTION.—For any fiscal year, upon the request
of the Governor of the State, the Secretary shall make
available directly to the State, from the amounts otherwise
included in the block grants for all public housing agencies
in such State which own or operate less than 100 dwelling
units, 1⁄2 of that portion of such amounts that is derived
from the capital improvement allocations for such agencies
pursuant to section 1203(c)(1) or 1203(d)(2), as applica-
ble. The Governor of the State will have the responsibility
to distribute all of such funds, in amounts determined by
the Governor, only to meet the exceptional capital im-
provement requirements for the various public housing
agencies in the State which operate less than 100 dwelling
165
units: Provided, however, that for States where Federal
funds provided to the State are subject to appropriation
action by the State legislature, the capital funds made
available to the Governor under this subsection shall be
subject to such appropriation by the State legislature.
(c) MODIFICATION.—Contracts and agreements be-
tween the Secretary and a public housing agency may not
be amended in a manner which would—
(1) impair the rights of—
(A) leaseholders for units assisted pursu-
ant to a contract or agreement; or
(B) the holders of any outstanding obliga-
tions of the public housing agency involved for
which annual contributions have been pledged;
or
(2) provide for payment of block grant amounts
under this title in an amount exceeding the alloca-
tion for the agency determined under section 1204.
Any rule of law contrary to this subsection shall be deemed
inapplicable.
SEC. 1202. GRANT AUTHORITY, AMOUNT, AND ELIGIBILITY.
(a) AUTHORITY.—The Secretary shall make block
grants under this title to eligible public housing agencies
in accordance with block grant contracts under section
1201.
171
may reasonably be requested by such unit of general
local government regarding the public housing to be
so assisted (except to the extent otherwise prohibited
by law) and consult with representatives of such
local government regarding the public housing.
(g) EXCEPTION.—Notwithstanding subsection (a),
the Secretary may make a grant under this title for a pub-
lic housing agency that is not an eligible public housing
agency but only for the period necessary to secure, in ac-
cordance with this title, an alternative public housing
agency for the public housing of the ineligible agency.
(h) 
RECAPTURE
OF
CAPITAL
ASSISTANCE
AMOUNTS.—The Secretary may recapture, from any grant
amounts made available to a public housing agency from
the capital fund, any portion of such amounts that are
not used or obligated by the public housing agency for use
for eligible activities under section 1203(a)(1) (or dedi-
cated for use pursuant to section 1202(b)(2)(A)) before
the expiration of the 24-month period beginning upon the
award of such grant to the agency.
SEC. 1203. ELIGIBLE AND REQUIRED ACTIVITIES.
(a) ELIGIBLE ACTIVITIES.—Except as provided in
subsection (b) and in section 1202(b)(2), grant amounts
allocated and provided from the capital fund and grant
172
amounts allocated and provided from the operating fund
may be used for the following activities:
(1) 
CAPITAL
FUND
ACTIVITIES.—Grant
amounts from the capital fund may be used for—
(A) the production and modernization of
public housing developments, including the re-
design, reconstruction, and reconfiguration of
public housing sites and buildings and the pro-
duction of mixed-income developments;
(B) vacancy reduction;
(C) addressing deferred maintenance needs
and the replacement of dwelling equipment;
(D) planned code compliance;
(E) management improvements;
(F) demolition and replacement under sec-
tion 1261;
(G) tenant relocation;
(H) capital expenditures to facilitate pro-
grams to improve the economic empowerment
and self-sufficiency of public housing tenants;
and
(I) capital expenditures to improve the se-
curity and safety of residents.
(2) 
OPERATING
FUND
ACTIVITIES.—Grant
amounts from the operating fund may be used for—