(B) ensure that each family that is a resi-
dent of the development is relocated to other safe,
clean, and healthy affordable housing, which is,
to the maximum extent practicable, housing of
the family’s choice, including choice-based assist-
ance under title III (provided that with respect
to choice-based assistance, the preceding require-
ment shall be fulfilled only upon the relocation
of such family into such housing);
(C) provide any necessary counseling for
families displaced by such action to facilitate re-
location; and
(D) provide any reasonable relocation ex-
penses for families displaced by such action.
(8) TRANSITION.—Any amounts made available
to a public housing agency to carry out section 202
of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies
Appropriations Act, 1996 (enacted as section 101(e)
of Omnibus Consolidated Rescissions and Appropria-
tions Act of 1996 (Public Law 104–134; 110 Stat.
1321–279)) may be used to carry out this section. The
Secretary shall provide for public housing agencies to
conform and continue actions taken under such sec-
tion 202 in accordance with the requirements under
this section.
(c) EXTENSION OF DEADLINES.—The Secretary may,
for a public housing agency, extend any deadline established
pursuant to this section or a local housing management
plan for up to an additional 5 years if the Secretary makes
a determination that the deadline is impracticable.
(d) COMPLIANCE WITH PLAN.—The local housing
management plan submitted by a public housing agency
(including any amendments to the plan), unless determined
under section 107 not to comply with the requirements
under section 106, shall be binding upon the Secretary and
the public housing agency and the agency shall use any
grant amounts provided under this title for eligible activi-
ties under subsection (a) in accordance with the plan. This
subsection may not be construed to preclude changes or
amendments to the plan, as authorized under section 107
or any actions authorized by this Act to be taken without
regard to a local housing management plan.
SEC. 204. DETERMINATION OF GRANT ALLOCATION.
(a) IN GENERAL.—For each fiscal year, after reserving
amounts under section 111 from the aggregate amount
made available for the fiscal year for carrying out this title,
the Secretary shall allocate any remaining amounts among
eligible public housing agencies in accordance with this sec-
tion, so that the sum of all of the allocations for all eligible
authorities is equal to such remaining amount.
(b) ALLOCATION AMOUNT.—The Secretary shall deter-
mine the amount of the allocation for each eligible public
housing agency, which shall be—
(1) for any fiscal year beginning after the enact-
ment of a law containing the formulas described in
paragraphs (1) and (2) of subsection (c), the sum of
the amounts determined for the agency under each
such formula; or
(2) for any fiscal year beginning before the expi-
ration of such period, the sum of—
(A) the operating allocation determined
under subsection (d)(1) for the agency; and
(B) the capital improvement allocation de-
termined under subsection (d)(2) for the agency.
(c) PERMANENT ALLOCATION FORMULAS FOR CAPITAL
AND OPERATING FUNDS.—
(1) ESTABLISHMENT
OF
CAPITAL
FUND
FOR-
MULA.—The formula under this paragraph shall pro-
vide for allocating assistance under the capital fund
for a fiscal year. The formula may take into account
such factors as—
(A) the number of public housing dwelling
units owned or operated by the public housing
agency, the characteristics and locations of the
developments, and the characteristics of the fami-
lies served and to be served (including the in-
comes of the families);
(B) the need of the public housing agency to
carry out rehabilitation and modernization ac-
tivities, and reconstruction, production, and
demolition activities related to public housing
dwelling units owned or operated by the public
housing agency, including backlog and projected
future needs of the agency;
(C) the cost of constructing and rehabilitat-
ing property in the area; and
(D) the need of the public housing agency to
carry out activities that provide a safe and se-
cure environment in public housing units owned
or operated by the public housing agency.
(2) ESTABLISHMENT OF OPERATING FUND FOR-
MULA.—
(A) IN GENERAL.—The formula under this
paragraph shall provide for allocating assistance
under the operating fund for a fiscal year. The
formula may take into account such factors as—
(i) standards for the costs of operating
and reasonable projections of income, taking
into account the characteristics and loca-
tions of the public housing developments
and characteristics of the families served
and to be served (including the incomes of
the families), or the costs of providing com-
parable services as determined in accord-
ance with criteria or a formula representing
the operations of a prototype well-managed
public housing development;
(ii) the number of public housing
dwelling units owned or operated by the
public housing agency;
(iii) the need of the public housing
agency to carry out anti-crime and anti-
drug activities, including providing ade-
quate security for public housing residents;
and
(iv) any record by the public housing
agency of exemplary performance in the op-
eration of public housing.
(B) INCENTIVE TO INCREASE INCOME.—The
formula shall provide an incentive to encourage
public housing agencies to increase nonrental in-
come and to increase rental income attributable
to their units by encouraging occupancy by fam-
ilies whose incomes have increase while in occu-
pancy and newly admitted families. Any such
incentive shall provide that the agency shall de-
rive the full benefit of any increase in nonrental
or rental income, and such increase shall not re-
sult in a decrease in amounts provided to the
agency under this title. In addition, an agency
shall be permitted to retain, from each fiscal
year, the full benefit of such an increase in non-
rental or rental income, except to the extent that
such benefit exceeds (i) 100 percent of the total
amount of the operating allocation for which the
agency is eligible under this section, and (ii) the
maximum balance permitted for the agency’s op-
erating reserve under this section and any regu-
lations issued under this section.
(C) TREATMENT OF UTILITY RATES.—The
formula shall not take into account the amount
of any cost reductions for a public housing agen-
cy due to the difference between projected and ac-
tual utility rates attributable to actions that are
taken by the agency which lead to such reduc-
tions, as determined by the Secretary. In the case
of any public housing agency that receives fi-
nancing from any person or entity other than
233
formance standards are established under paragraph
(2). If the Secretary determines that an application
does not comply with the requirements of this title,
the Secretary shall notify the jurisdiction submitting
the application of the reasons for such disapproval
and actions that may be taken to make the applica-
tion approvable.
(2) PERFORMANCE STANDARDS.—The Secretary
shall establish standards for measuring performance
of jurisdictions in the following areas:
(A) Success in moving dependent low-in-
come families to economic self-sufficiency.
(B) Success in reducing the numbers of
long-term homeless families.
(C) Decrease in the per-family cost of pro-
viding assistance.
(D) Reduction of excessive geographic con-
centration of assisted families.
(E) Any other performance goals that the
Secretary may prescribe.
(3) APPROVAL.—If the Secretary and a jurisdic-
tion that the Secretary determines has submitted an
application meeting the requirements of this title
enter into an agreement referred to in paragraph (1),
the Secretary shall approve the application and pro-