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(2) REQUIRED EXPERIENCE.—The Board shall
at all times have as members individuals with the
following experience:
(A) At least one individual who has exten-
sive experience in the residential real estate fi-
nance business.
(B) At least one individual who has exten-
sive experience in operating a nonprofit organi-
zation that provides affordable housing.
(C) At least one individual who has exten-
sive experience in construction of multifamily
housing.
(D) At least one individual who has exten-
sive experience in the management of a commu-
nity development corporation.
(E) At least one individual who has exten-
sive experience in auditing participants in gov-
ernment programs.
A single member of the board with the appropriate
experience may satisfy the requirements of more
than one subparagraph of this paragraph. A single
member of the board with the appropriate qualifica-
tions and experience may satisfy the requirements of
a subparagraph of paragraph (1) and a subpara-
graph of this paragraph.
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(c) POLITICAL AFFILIATION.—Not more than six
members of the Board may be of the same political party.
(d) TERMS.—
(1) IN GENERAL.—Each member of the Board
shall be appointed for a term of 4 years, except as
provided in paragraphs (2) and (3).
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed—
(A) three shall be appointed for terms of
1 year;
(B) three shall be appointed for terms of
2 years;
(C) three shall be appointed for terms of 3
years; and
(D) three shall be appointed for terms of
4 years.
(3) VACANCIES.—Any member appointed to fill
a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor has taken
office. A vacancy in the Board shall be filled in the
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manner in which the original appointment was
made.
(e) CHAIRPERSON.—The Board shall elect a chair-
person from among members of the Board.
(f) QUORUM.—A majority of the members of the
Board shall constitute a quorum for the transaction of
business.
(g) VOTING.—Each member of the Board shall be en-
titled to one vote, which shall be equal to the vote of every
other member of the Board.
(h) PROHIBITION ON ADDITIONAL PAY.—Members of
the Board shall serve without compensation, but shall be
reimbursed for travel, subsistence, and other necessary ex-
penses incurred in the performance of their duties as
members of the Board.
SEC. 1523. FUNCTIONS.
The purpose of this subtitle is to establish the Board
as a nonpolitical entity to carry out, not later than the
expiration of the 12-month period beginning upon the ap-
pointment under section 1522 of all of the initial members
of the Board (or such other date as may be provided by
law), the following functions:
(1) 
ESTABLISHMENT
OF
PERFORMANCE
BENCHMARKS.—The Board shall establish standards
and guidelines for use by the Board in measuring
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the performance and efficiency of public housing
agencies and other owners and providers of federally
assisted housing in carrying out operational and fi-
nancial functions. The standards and guidelines
shall be designed to replace the public housing man-
agement assessment program under section 6(j) of
the United States Housing Act of 1937 (as in effect
before the enactment of this Act) and improve the
evaluation of the performance of housing providers
relative to such program. In establishing such stand-
ards and guidelines, the Board shall consult with the
Secretary, the Inspector General of the Department
of Housing and Urban Development, and such other
persons and entities as the Board considers appro-
priate.
(2) ESTABLISHMENT OF ACCREDITATION PRO-
CEDURE AND ACCREDITATION.—The Board shall—
(A) establish a procedure for the Board to
accredit public housing agencies to receive block
grants under title XII for the operation, main-
tenance, and production of public housing and
amounts for housing assistance under title
XIII, based on the performance of agencies, as
measured by the performance benchmarks es-
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tablished under paragraph (1) and any audits
and reviews of agencies; and
(B) commence the review and accreditation
of public housing agencies under the procedures
established under subparagraph (A).
In carrying out the functions under this section, the Board
shall take into consideration the findings and rec-
ommendations contained in the report issued under sec-
tion 1506(b).
SEC. 1524. POWERS.
(a) HEARINGS.—The Board may, for the purpose of
carrying out this subtitle, hold such hearings and sit and
act at such times and places as the Board determines ap-
propriate.
(b) RULES
AND REGULATIONS.—The Board may
adopt such rules and regulations as may be necessary to
establish its procedures and to govern the manner of its
operations, organization, and personnel.
(c) ASSISTANCE FROM FEDERAL AGENCIES.—
(1) INFORMATION.—The Board may secure di-
rectly from any department or agency of the Federal
Government such information as the Board may re-
quire for carrying out its functions, including public
housing agency plans submitted to the Secretary by
public housing agencies under title XI. Upon request
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of the Board, any such department or agency shall
furnish such information.
(2) GENERAL
SERVICES
ADMINISTRATION.—
The Administrator of General Services shall provide
to the Board, on a reimbursable basis, such adminis-
trative support services as the Board may request.
(3) DEPARTMENT OF HOUSING AND URBAN DE-
VELOPMENT.—Upon the request of the chairperson
of the Board, the Secretary of Housing and Urban
Development shall, to the extent possible and subject
to the discretion of the Secretary, detail any of the
personnel of the Department of Housing and Urban
Development, on a nonreimbursable basis, to assist
the Board in carrying out its functions under this
subtitle.
(4) HUD INSPECTOR GENERAL.—The Inspector
General of the Department of Housing and Urban
Development shall serve the Board as a principal ad-
viser with respect to all aspects of audits of public
housing agencies. The Inspector General may advise
the Board with respect to other activities and func-
tions of the Board.
(d) MAILS.—The Board may use the United States
mails in the same manner and under the same conditions
as other Federal agencies.
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(e) CONTRACTING.—The Board may, to such extent
and in such amounts as are provided in appropriation
Acts, enter into contracts with private firms, institutions,
and individuals for the purpose of conducting evaluations
of public housing agencies, audits of public housing agen-
cies, and research and surveys necessary to enable the
Board to discharge its functions under this subtitle.
(f) STAFF.—
(1) EXECUTIVE
DIRECTOR.—The Board shall
appoint an executive director of the Board, who shall
be compensated at a rate fixed by the Board, but
which shall not exceed the rate established for level
V of the Executive Schedule under title 5, United
States Code.
(2) OTHER PERSONNEL.—In addition to the ex-
ecutive director, the Board may appoint and fix the
compensation of such personnel as the Board consid-
ers necessary, in accordance with the provisions of
title 5, United States Code, governing appointments
to the competitive service, and the provisions of
chapter 51 and subchapter III of chapter 53 of such
title, relating to classification and General Schedule
pay rates.
(g) ACCESS TO DOCUMENTS.—The Board shall have
access for the purposes of carrying out its functions under
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this subtitle to any books, documents, papers, and records
of a public housing agency to which the Secretary has ac-
cess under this division.
SEC. 1525. FEES.
(a) ACCREDITATION FEES.—The Board may estab-
lish and charge reasonable fees for the accreditation of
public housing agencies as the Board considers necessary
to cover the costs of the operations of the Board relating
to its functions under section 1523.
(b) FUND.—Any fees collected under this section
shall be deposited in an operations fund for the Board,
which is hereby established in the Treasury of the United
States. Amounts in such fund shall be available, to the
extent provided in appropriation Acts, for the expenses of
the Board in carrying out its functions under this subtitle.
SEC. 1526. GAO AUDIT.
The activities and transactions of the Board shall be
subject to audit by the Comptroller General of the United
States under such rules and regulations as may be pre-
scribed by the Comptroller General. The representatives
of the General Accounting Office shall have access for the
purpose of audit and examination to any books, docu-
ments, papers, and records of the Board that are nec-
essary to facilitate an audit.
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Subtitle C—Interim Applicability of
Public Housing Management As-
sessment Program
SEC. 1531. INTERIM APPLICABILITY.
This subtitle shall be effective only during the period
that begins on the effective date of this division and ends
upon the date of the effectiveness of the standards and
procedures required under section 1523.
SEC. 1532. MANAGEMENT ASSESSMENT INDICATORS.
(a) ESTABLISHMENT.—The Secretary shall develop
and publish in the Federal Register indicators to assess
the management performance of public housing agencies
and other entities managing public housing (including
resident management corporations, independent managers
pursuant to section 1236, and management entities pursu-
ant to subtitle D). The indicators shall be established by
rule under section 553 of title 5, United States Code. Such
indicators shall enable the Secretary to evaluate the per-
formance of public housing agencies and such other man-
agers of public housing in all major areas of management
operations.
(b) CONTENT.—The management assessment indica-
tors shall include the following indicators:
(1) The number and percentage of vacancies
within an agency’s or manager’s inventory, including
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the progress that an agency or manager has made
within the previous 3 years to reduce such vacancies.
(2) The amount and percentage of funds obli-
gated to the public housing agency or manager from
the capital fund or under section 14 of the United
States Housing Act of 1937 (as in effect before the
effective date of the repeal under section 1601(b) of
this Act), which remain unexpended after 3 years.
(3) The percentage of rents uncollected.
(4) The energy consumption (with appropriate
adjustments to reflect different regions and unit
sizes).
(5) The average period of time that an agency
or manager requires to repair and turn-around va-
cant dwelling units.
(6) The proportion of maintenance work orders
outstanding, including any progress that an agency
or manager has made during the preceding 3 years
to reduce the period of time required to complete
maintenance work orders.
(7) The percentage of dwelling units that an
agency or manager fails to inspect to ascertain
maintenance or modernization needs within such pe-
riod of time as the Secretary deems appropriate
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(with appropriate adjustments, if any, for large and
small agencies or managers).
(8) The extent to which the rent policies of any
public housing agency establishing rental amounts in
accordance with section 1225(b) comply with the re-
quirement under section 1225(c).
(9) Whether the agency is providing acceptable
basic housing conditions, as determined by the Sec-
retary.
(10) Whether the agency has conducted and
regularly updated an assessment to identify any pest
control problems in the public housing owned or op-
erated by the agency and the extent to which the
agency is effective in carrying out a strategy to
eradicate or control such problems, which assess-
ment and strategy shall be included in the local
housing management plan for the agency under sec-
tion 1106.
(11) Any other factors as the Secretary deems
appropriate.
(c) CONSIDERATIONS
IN EVALUATION.—The Sec-
retary shall—
(1) administer the system of evaluating public
housing agencies and managers flexibly to ensure
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that agencies and managers are not penalized as re-
sult of circumstances beyond their control;
(2) reflect in the weights assigned to the var-
ious management assessment indicators the dif-
ferences in the difficulty of managing individual de-
velopments that result from their physical condition
and their neighborhood environment; and
(3) determine a public housing agency’s or
manager’s status as ‘‘troubled with respect to mod-
ernization’’ under section 1533(b) based upon fac-
tors solely related to its ability to carry out mod-
ernization activities.
SEC. 1533. DESIGNATION OF PHA’S.
(a) TROUBLED PHA’S.—The Secretary shall, under
the rulemaking procedures under section 553 of title 5,
United States Code, establish procedures for designating
troubled public housing agencies and managers, which
procedures shall include identification of serious and sub-
stantial failure to perform as measured by (1) the per-
formance indicators specified under section 1532 and such
other factors as the Secretary may deem to be appropriate;
or (2) such other evaluation system as is determined by
the Secretary to assess the condition of the public housing
agency or other entity managing public housing, which
system may be in addition to or in lieu of the performance
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indicators established under section 1532. Such proce-
dures shall provide that an agency that does not provide
acceptable basic housing conditions shall be designated a
troubled public housing agency.
(b) AGENCIES TROUBLED WITH RESPECT TO CAP-
ITAL ACTIVITIES.—The Secretary shall designate, by rule
under section 553 of title 5, United States Code, agencies
and managers that are troubled with respect to capital ac-
tivities.
(c) AGENCIES AT RISK OF BECOMING TROUBLED.—
The Secretary shall designate, by rule under section 553
of title 5, United States Code, agencies and managers that
are at risk of becoming troubled.
(d) EXEMPLARY AGENCIES.—The Secretary may
also, in consultation with national organizations represent-
ing public housing agencies and managers and public offi-
cials (as the Secretary determines appropriate), identify
and commend public housing agencies and managers that
meet the performance standards established under section
1532 in an exemplary manner.
(e) APPEAL OF DESIGNATION.—The Secretary shall
establish procedures for public housing agencies and man-
agers to appeal designation as a troubled agency or man-
ager (including designation as a troubled agency or man-
ager for purposes of capital activities), to petition for re-
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moval of such designation, and to appeal any refusal to
remove such designation.
SEC. 1534. ON-SITE INSPECTION OF TROUBLED PHA’S.
(a) IN GENERAL.—Upon designating a public hous-
ing agency or manager as troubled pursuant to section
1533 and determining that an assessment under this sec-
tion will not duplicate any other review previously con-
ducted or required to be conducted of the agency or man-
ager, the Secretary shall provide for an on-site, independ-
ent assessment of the management of the agency or man-
ager.
(b) CONTENT.—To the extent the Secretary deems
appropriate (taking into consideration an agency’s or
manager’s performance under the indicators specified
under section 1532, the assessment team shall also con-
sider issues relating to the agency’s or manager’s resident
population and physical inventory, including the extent to
which—
(1) the public housing agency plan for the agen-
cy or manager adequately and appropriately address-
es the rehabilitation needs of the public housing in-
ventory;
(2) residents of the agency or manager are in-
volved in and informed of significant management
decisions; and
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(3) any developments in the agency’s or man-
ager’s inventory are severely distressed (as such
term is defined under section 1262.
(c) INDEPENDENT ASSESSMENT TEAM.—An inde-
pendent assessment under this section shall be carried out
by a team of knowledgeable individuals selected by the
Secretary (referred to in this title as the ‘‘assessment
team’’) with expertise in public housing and real estate
management. In conducting an assessment, the assess-
ment team shall consult with the residents and with public
and private entities in the jurisdiction in which the public
housing is located. The assessment team shall provide to
the Secretary and the public housing agency or manager
a written report, which shall contain, at a minimum, rec-
ommendations for such management improvements as are
necessary to eliminate or substantially remedy existing de-
ficiencies.
SEC. 1535. ADMINISTRATION.
(a) PHA’S.—The Secretary shall carry out this sub-
title with respect to public housing agencies substantially
in the same manner as the public housing management
assessment system under section 6(j) of the United States
Housing Act of 1937 (as in effect immediately before the
effective date of the repeal under section 1601(b) of this
Act) was required to be carried out with respect to public
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housing agencies. The Secretary may comply with the re-
quirements under this subtitle by using any regulations
issued to carry out such system and issuing any additional
regulations necessary to make such system comply with
the requirements under this subtitle.
(b) OTHER MANAGERS.—The Secretary shall estab-
lish specific standards and procedures for carrying out this
subtitle with respect to managers of public housing that
are not public housing agencies. Such standards and pro-
cedures shall take in consideration special circumstances
relating to entities hired, directed, or appointed to manage
public housing.
Subtitle 
D—Accountability 
and
Oversight Standards and Proce-
dures
SEC. 1541. AUDITS.
(a) BY SECRETARY AND COMPTROLLER GENERAL.—
Each block grant contract under section 1201 and each
contract for housing assistance amounts under section
1302 shall provide that the Secretary, the Inspector Gen-
eral of the Department of Housing and Urban Develop-
ment, and the Comptroller General of the United States,
or any of their duly authorized representatives, shall, for
the purpose of audit and examination, have access to any
books, documents, papers, and records of the public hous-
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ing agency (or other entity) entering into such contract
that are pertinent to this division and to its operations
with respect to financial assistance under this division.
(b) BY PHA.—
(1) REQUIREMENT.—Each public housing agen-
cy that owns or operates 250 or more public housing
dwelling units and receives assistance under this di-
vision shall have an audit made in accordance with
chapter 75 of title 31, United States Code. The Sec-
retary, the Inspector General of the Department of
Housing and Urban Development, and the Comp-
troller General of the United States shall have ac-
cess to all books, documents, papers, or other
records that are pertinent to the activities carried
out under this division in order to make audit ex-
aminations, excerpts, and transcripts.
(2) WITHHOLDING
OF
AMOUNTS.—The Sec-
retary may, in the sole discretion of the Secretary,
arrange for, and pay the costs of, an audit required
under paragraph (1). In such circumstances, the
Secretary may withhold, from assistance otherwise
payable to the agency under this division, amounts
sufficient to pay for the reasonable costs of conduct-
ing an acceptable audit, including, when appropriate,
the reasonable costs of accounting services necessary
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to place the agency’s books and records in auditable
condition.
SEC. 1542. PERFORMANCE AGREEMENTS FOR AUTHORI-
TIES AT RISK OF BECOMING TROUBLED.
(a) IN GENERAL.—Upon designation of a public
housing agency as at risk of becoming troubled under sec-
tion 1533(c), the Secretary shall seek to enter into an
agreement with the agency providing for improvement of
the elements of the agency that have been identified. An
agreement under this section shall contain such terms and
conditions as the Secretary determines are appropriate for
addressing the elements identified, which may include an
on-site, independent assessment of the management of the
agency.
(b) POWERS OF SECRETARY.—If the Secretary deter-
mines that such action is necessary to prevent the public
housing agency from becoming a troubled agency, the Sec-
retary may—
(1) solicit competitive proposals from other pub-
lic housing agencies and private housing manage-
ment agents (which may be selected by existing ten-
ants through administrative procedures established
by the Secretary), for any case in which such agents
may be needed for managing all, or part, of the
housing or functions administered by the agency; or
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(2) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management, for any case in
which such authorities or firms may be needed to
oversee implementation of assistance made available
for capital improvement for public housing of the
agency.
SEC. 1543. PERFORMANCE AGREEMENTS AND CDBG SANC-
TIONS FOR TROUBLED PHA’S.
(a) IN GENERAL.—Upon designation of a public
housing agency as a troubled agency under section
1533(a) and after reviewing the report submitted pursu-
ant to section 1534(c) and consulting with the assessment
team for the agency under section 1534, the Secretary
shall seek to enter into an agreement with the agency pro-
viding for improving the management performance of the
agency.
(b) CONTENTS.—An agreement under this section be-
tween the Secretary and a public housing agency shall set
forth—
(1) targets for improving performance, as meas-
ured by the guidelines and standards established
under section 1532 and other requirements within a
specified period of time, which shall include targets
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to be met upon the expiration of the 12-month pe-
riod beginning upon entering into the agreement;
(2) strategies for meeting such targets;
(3) sanctions for failure to implement such
strategies; and
(4) to the extent the Secretary deems appro-
priate, a plan for enhancing resident involvement in
the management of the public housing agency.
(c) LOCAL ASSISTANCE IN IMPLEMENTATION.—The
Secretary and the public housing agency shall, to the max-
imum extent practicable, seek the assistance of local public
and private entities in carrying out an agreement under
this section.
(d) 
DEFAULT
UNDER
PERFORMANCE
AGREE-
MENT.—Upon the expiration of the 12-month period be-
ginning upon entering into an agreement under this sec-
tion with a public housing agency, the Secretary shall re-
view the performance of the agency in relation to the per-
formance targets and strategies under the agreement. If
the Secretary determines that the agency has failed to
comply with the performance targets established for such
period, the Secretary shall take the action authorized
under subsection (b)(2) or (b)(5) of section 1545.
(e) CDBG SANCTION AGAINST LOCAL GOVERNMENT
CONTRIBUTING TO TROUBLED STATUS OF PHA.—If the
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Secretary determines that the actions or inaction of any
unit of general local government within which any portion
of the jurisdiction of a public housing agency is located
has substantially contributed to the conditions resulting
in the agency being designated under section 1533(a) as
a troubled agency, the Secretary may redirect or withhold,
from such unit of general local government any amounts
allocated for such unit under section 106 of the Housing
and Community Development Act of 1974.
SEC. 1544. OPTION TO DEMAND CONVEYANCE OF TITLE TO
OR POSSESSION OF PUBLIC HOUSING.
(a) AUTHORITY
FOR
CONVEYANCE.—A contract
under section 1201 for block grants under title XII (in-
cluding contracts which amend or supersede contracts pre-
viously made (including contracts for contributions)) may
provide that upon the occurrence of a substantial default
with respect to the covenants or conditions to which the
public housing agency is subject (as such substantial de-
fault shall be defined in such contract), the public housing
agency shall be obligated, at the option of the Secretary,
to—
(1) convey title in any case where, in the deter-
mination of the Secretary (which determination shall
be final and conclusive), such conveyance of title is
necessary to achieve the purposes of this division; or
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(2) deliver to the Secretary possession of the
development, as then constituted, to which such con-
tract relates.
(b) OBLIGATION TO RECONVEY.—Any block grant
contract under title XII containing the provisions author-
ized in subsection (a) shall also provide that the Secretary
shall be obligated to reconvey or redeliver possession of
the development, as constituted at the time of reconvey-
ance or redelivery, to such public housing agency or to
its successor (if such public housing agency or a successor
exists) upon such terms as shall be prescribed in such con-
tract, and as soon as practicable after—
(1) the Secretary is satisfied that all defaults
with respect to the development have been cured,
and that the development will, in order to fulfill the
purposes of this division, thereafter be operated in
accordance with the terms of such contract; or
(2) the termination of the obligation to make
annual block grants to the agency, unless there are
any obligations or covenants of the agency to the
Secretary which are then in default.
Any prior conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right to re-
quire a conveyance or delivery of possession of the develop-
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ment to the Secretary pursuant to subsection (a) upon the
subsequent occurrence of a substantial default.
(c) CONTINUED GRANTS FOR REPAYMENT OF BONDS
AND NOTES UNDER 1937 ACT.—If—
(1) a contract for block grants under title XII
for an agency includes provisions that expressly
state that the provisions are included pursuant to
this subsection, and
(2) the portion of the block grant payable for
debt service requirements pursuant to the contract
has been pledged by the public housing agency as se-
curity for the payment of the principal and interest
on any of its obligations, then—
(A) the Secretary shall (notwithstanding
any other provisions of this division), continue
to make the block grant payments for the agen-
cy so long as any of such obligations remain
outstanding; and
(B) the Secretary may covenant in such a
contract that in any event such block grant
amounts shall in each year be at least equal to
an amount which, together with such income or
other funds as are actually available from the
development for the purpose at the time such
block grant payments are made, will suffice for
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the payment of all installments of principal and
interest on the obligations for which the
amounts provided for in the contract shall have
been pledged as security that fall due within the
next succeeding 12 months.
In no case shall such block grant amounts be in excess
of the maximum sum specified in the contract involved,
nor for longer than the remainder of the maximum period
fixed by the contract.
SEC. 1545. REMOVAL OF INEFFECTIVE PHA’S.
(a) CONDITIONS OF REMOVAL.—The actions speci-
fied in subsection (b) may be taken only upon—
(1) the occurrence of events or conditions that
constitute a substantial default by a public housing
agency with respect to (A) the covenants or condi-
tions to which the public housing agency is subject,
or (B) an agreement entered into under section
1543; or
(2) submission to the Secretary of a petition by
the residents of the public housing owned or oper-
ated by a public housing agency that is designated
as troubled pursuant to section 1533(a).
(b) REMOVAL ACTIONS.—Notwithstanding any other
provision of law or of any block grant contract under title
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XII or any grant agreement under title XIII, in accord-
ance with subsection (a), the Secretary may—
(1) solicit competitive proposals from other pub-
lic housing agencies and private housing manage-
ment agents (which, in the discretion of the Sec-
retary, may be selected by existing public housing
residents through administrative procedures estab-
lished by the Secretary) and, if appropriate, provide
for such agents to manage all, or part, of the hous-
ing administered by the public housing agency or all
or part of the other functions of the agency;
(2) take possession of the public housing agen-
cy, including any developments or functions of the
agency under any section of this division;
(3) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management and, if appro-
priate, provide for such authorities or firms to over-
see implementation of assistance made available for
capital improvements for public housing;
(4) require the agency to make other arrange-
ments acceptable to the Secretary and in the best in-
terests of the public housing residents and assisted
families under title XIII for managing all, or part
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of, the public housing administered by the agency or
the functions of the agency; or
(5) petition for the appointment of a receiver
for the public housing agency to any district court
of the United States or to any court of the State in
which any portion of the jurisdiction of the public
housing agency is located, that is authorized to ap-
point a receiver for the purposes and having the
powers prescribed in this section.
(c) EMERGENCY ASSISTANCE.—The Secretary may
make available to receivers and other entities selected or
appointed pursuant to this section such assistance as is
fair and reasonable to remedy the substantial deteriora-
tion of living conditions in individual public housing devel-
opments or other related emergencies that endanger the
health, safety and welfare of public housing residents or
assisted families under title XIII.
(d) POWERS OF SECRETARY.—If the Secretary takes
possession of an agency, or any developments or functions
of an agency, pursuant to subsection (b)(2), the Sec-
retary—
(1) may abrogate contracts that substantially
impede correction of the substantial default or im-
provement of the classification, but only after efforts
to renegotiate such contracts have failed and the
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Secretary has made a written determination regard-
ing such abrogation, which shall be available to the
public upon request, identify such contracts, and ex-
plain the determination that such contracts may be
abrogated;
(2) may demolish and dispose of assets of the
agency in accordance with section 1261;
(3) where determined appropriate by the Sec-
retary, may require the establishment of one or more
new public housing agencies;
(4) may consolidate the agency into other well-
managed public housing agencies with the consent of
such well-managed authorities;
(5) shall not be subject to any State or local
laws relating to civil service requirements, employee
rights, procurement, or financial or administrative
controls that, in the determination of the Secretary,
substantially impede correction of the substantial de-
fault or improvement of the classification, but only
if the Secretary has made a written determination
regarding such inapplicability, which shall be avail-
able to the public upon request, identify such inap-
plicable laws, and explain the determination that
such laws impede such correction; and
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(6) shall have such additional authority as a
district court of the United States has the authority
to confer under like circumstances upon a receiver to
achieve the purposes of the receivership.
The Secretary may appoint, on a competitive or non-
competitive basis, an individual or entity as an administra-
tive receiver to assume the Secretary’s responsibility under
this paragraph for the administration of a public housing
agency. The Secretary may delegate to the administrative
receiver any or all of the powers of the Secretary under
this subsection. Regardless of any delegation under this
subsection, an administrative receiver may not require the
establishment of one or more new public housing agencies
pursuant to paragraph (3) unless the Secretary first ap-
proves such establishment. For purposes of this sub-
section, the term ‘‘public housing agency’’ includes any de-
velopments or functions of a public housing agency under
any section of this title.
(e) RECEIVERSHIP.—
(1) REQUIRED APPOINTMENT.—In any proceed-
ing under subsection (b)(5), upon a determination
that a substantial default has occurred, and without
regard to the availability of alternative remedies, the
court shall appoint a receiver to conduct the affairs
of the public housing agency in a manner consistent
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with this division and in accordance with such fur-
ther terms and conditions as the court may provide.
The receiver appointed may be another public hous-
ing agency, a private management corporation, the
Secretary, or any other appropriate entity. The court
shall have power to grant appropriate temporary or
preliminary relief pending final disposition of the pe-
tition by the Secretary.
(2) POWERS OF RECEIVER.—If a receiver is ap-
pointed for a public housing agency pursuant to sub-
section (b)(5), in addition to the powers accorded by
the court appointing the receiver, the receiver—
(A) may abrogate contracts that substan-
tially impede correction of the substantial de-
fault or improvement of the classification, but
only after bona fide efforts to renegotiate such
contracts have failed and the receiver has made
a written determination regarding such abroga-
tion, which shall be available to the public upon
request, identify such contracts, and explain the
determination that such contracts may be abro-
gated;
(B) may demolish and dispose of assets of
the agency in accordance with section 1261;
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(C) where determined appropriate by the
Secretary, may require the establishment of one
or more new public housing agencies, to the ex-
tent permitted by State and local law; and
(D) except as provided in subparagraph
(C), shall not be subject to any State or local
laws relating to civil service requirements, em-
ployee rights, procurement, or financial or ad-
ministrative controls that, in the determination
of the receiver, substantially impede correction
of the substantial default or improvement of the
classification, but only if the receiver has made
a written determination regarding such inappli-
cability, which shall be available to the public
upon request, identify such inapplicable laws,
and explain the determination that such laws
impede such correction.
For purposes of this paragraph, the term ‘‘public
housing agency’’ includes any developments or func-
tions of a public housing agency under any section
of this title.
(3) TERMINATION.—The appointment of a re-
ceiver pursuant to this subsection may be termi-
nated, upon the petition of any party, when the
court determines that all defaults have been cured or
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the public housing agency will be able to make the
same amount of progress in correcting the manage-
ment of the housing as the receiver.
(f) LIABILITY.—If the Secretary takes possession of
an agency pursuant to subsection (b)(2) or a receiver is
appointed pursuant to subsection (b)(5) for a public hous-
ing agency, the Secretary or the receiver shall be deemed
to be acting in the capacity of the public housing agency
(and not in the official capacity as Secretary or other offi-
cial) and any liability incurred shall be a liability of the
public housing agency.
(g) EFFECTIVENESS.—The provisions of this section
shall apply with respect to actions taken before, on, or
after the effective date of this division and shall apply to
any receivers appointed for a public housing agency before
the effective date of this division.
SEC. 1546. MANDATORY TAKEOVER OF CHRONICALLY
TROUBLED PHA’S.
(a) REMOVAL
OF AGENCY.—Notwithstanding any
other provision of this division, not later than the expira-
tion of the 180-day period beginning on the effective date
of this division, the Secretary shall take one of the follow-
ing actions with respect to each chronically troubled public
housing agency:
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(1) CONTRACTING FOR MANAGEMENT.—Solicit
competitive proposals for the management of the
agency pursuant to section 1545(b)(1) and replace
the management of the agency pursuant to selection
of such a proposal.
(2) TAKEOVER.—Take possession of the agency
pursuant to section 1545(b)(2).
(3) PETITION FOR RECEIVER.—Petition for the
appointment of a receiver for the agency pursuant to
section 1545(b)(5).
(b) DEFINITION.—For purposes of this section, the
term ‘‘chronically troubled public housing agency’’ means
a public housing agency that, as of the effective date of
this division, is designated under section 6(j)(2) of the
United States Housing Act of 1937 (as in effect imme-
diately before the effective date of the repeal under section
1601(b) of this Act) as a troubled public housing agency
and has been so designated continuously for the 3-year
period ending upon the effective date of this division; ex-
cept that such term does not include any agency that owns
or operates less than 1250 public housing dwelling units
and that the Secretary determines can, with a reasonable
amount of effort, make such improvements or remedies
as may be necessary to remove its designation as troubled
within 12 months.
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SEC. 1547. TREATMENT OF TROUBLED PHA’S.
(a) EFFECT OF TROUBLED STATUS ON CHAS.—The
comprehensive housing affordability strategy (or any con-
solidated plan incorporating such strategy) for the State
or unit of general local government in which any troubled
public housing agency is located shall not be considered
to comply with the requirements under section 105 of the
Cranston-Gonzalez National Affordable Housing Act un-
less such plan includes a description of the manner in
which the State or unit will assist such troubled agency
in improving its operations to remove such designation.
(b) DEFINITION.—For purposes of this section, the
term ‘‘troubled public housing agency’’ means a public
housing agency that—
(1) upon the effective date of this division, is
designated under section 6(j)(2) of the United
States Housing Act of 1937 (as in effect imme-
diately before the effective date of the repeal under
section 1601(b) of this Act) as a troubled public
housing agency; and
(2) is not a chronically troubled public housing
agency, as such term is defined in section 1546(b)
of this Act.
SEC. 1548. MAINTENANCE OF RECORDS.
Each public housing agency shall keep such records
as may be reasonably necessary to disclose the amount
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and the disposition by the agency of the proceeds of assist-
ance received pursuant to this division and to ensure com-
pliance with the requirements of this division.
SEC. 1549. ANNUAL REPORTS REGARDING TROUBLED
PHA’S.
The Secretary shall submit a report to the Congress
annually, as a part of the report of the Secretary under
section 8 of the Department of Housing and Urban Devel-
opment Act, that—
(1) identifies the public housing agencies that
are designated under section 1533 as troubled or at-
risk of becoming troubled and the reasons for such
designation; and
(2) describes any actions that have been taken
in accordance with sections 1542, 1543, 1544, and
1545.
SEC. 1550. APPLICABILITY TO RESIDENT MANAGEMENT
CORPORATIONS.
The Secretary shall apply the provisions of this sub-
title to resident management corporations in the same
manner as applied to public housing agencies.
SEC. 1551. ADVISORY COUNCIL FOR HOUSING AUTHORITY
OF NEW ORLEANS.
(a) ESTABLISHMENT.—The Secretary and the Hous-
ing Authority of New Orleans (in this section referred to
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as the ‘‘Housing Authority’’) shall, pursuant to the coop-
erative endeavor agreement in effect between the Sec-
retary and the Housing Authority, establish an advisory
council for the Housing Authority of New Orleans (in this
section referred to as the ‘‘advisory council’’) that com-
plies with the requirements of this section.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The advisory council shall be
appointed by the Secretary, not later than 90 days
after the date of the enactment of this Act, and shall
be composed of the following members:
(A) The Inspector General of the Depart-
ment of Housing and Urban Development (or
the Inspector General’s designee).
(B) Not more than 7 other members, who
shall be selected for appointment based on their
experience in successfully reforming troubled
public housing agencies or in providing afford-
able housing in coordination with State and
local governments, the private sector, affordable
housing residents, or local nonprofit organiza-
tions.
(2) PROHIBITION ON ADDITIONAL PAY.—Mem-
bers of the advisory council shall serve without com-
pensation, but shall be reimbursed for travel, sub-
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sistence, and other necessary expenses incurred in
the performance of their duties as members of the
Board using amounts from the Headquarters Re-
serve fund pursuant to section 1111(b)(4).
(c) FUNCTIONS.—The advisory council shall—
(1) establish standards and guidelines for as-
sessing the performance of the Housing Authority in
carrying out operational, asset management, and fi-
nancial functions for purposes of the reports and
finding under subsections (d) and (e), respectively;
(2) provide advice, expertise, and recommenda-
tions to the Housing Authority regarding the man-
agement, operation, repair, redevelopment, revital-
ization, demolition, and disposition of public housing
developments of the Housing Authority;
(3) report to the Congress under subsection (d)
regarding any progress of the Housing Authority in
improving the performance of its functions; and
(4) make a final finding to the Congress under
subsection (e) regarding the future of the Housing
Authority.
(d) QUARTERLY REPORTS.—The advisory council
shall report to the Congress and the Secretary not less
than every 3 months regarding the performance of the
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Housing Authority and any progress of the authority in
improving its performance and carrying out its functions.
(e) FINAL FINDING.—Upon the expiration of the 18-
month period that begins upon the appointment under
subsection (b)(1) of all members of the advisory council,
the council shall make and submit to the Congress and
the Secretary a finding of whether the Housing Authority
has substantially improved its performance, the perform-
ance of its functions, and the overall condition of the Au-
thority such that the Authority should be allowed to con-
tinue to operate as the manager of the public housing of
the Authority. In making the finding under this sub-
section, the advisory council shall consider whether the
Housing Authority has made sufficient progress in the
demolition and revitalization of the Desire Homes develop-
ment, the revitalization of the St. Thomas Homes develop-
ment, the appropriate allocation of operating subsidy
amounts, and the appropriate expending of modernization
amounts.
(f) RECEIVERSHIP.—If the advisory council finds
under subsection (e) that the Housing Authority has not
substantially improved its performance such that the Au-
thority should be allowed to continue to operate as the
manager of the public housing of the Authority, the Sec-
retary shall (notwithstanding section 1545(a)) petition
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under section 1545(b) for the appointment of a receiver
for the Housing Authority, which receivership shall be
subject to the provisions of section 1545.
(g) EXEMPTION.—The provisions of section 1546
shall not apply to the Housing Authority.
TITLE XVI—REPEALS AND
RELATED AMENDMENTS
Subtitle A—Repeals, Effective Date,
and Savings Provisions
SEC. 1601. EFFECTIVE DATE AND REPEAL OF UNITED
STATES HOUSING ACT OF 1937.
(a) EFFECTIVE DATE.—
(1) IN
GENERAL.—This division and the
amendments made by this division shall take effect
on October 1, 1999, except as otherwise provided in
this section.
(2) SPECIFIC EFFECTIVE DATES.—Any provi-
sion of this division that specifically provides for the
effective date of such provision shall take effect in
accordance with the terms of the provision.
(b) REPEAL OF UNITED STATES HOUSING ACT OF
1937.—Effective upon the effective date under subsection
(a)(1), the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is repealed, subject to the conditions under
subsection (c).
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able for obligation under such Act in accordance
with the terms under which amounts were made
available.
(3) CROSS
REFERENCES.—The provisions of
the United States Housing Act of 1937 shall remain
in effect for purposes of the validity of any reference
to a provision of such Act in any statute (other than
such Act) until such reference is modified by law or
repealed.
(d) PUBLICATION AND EFFECTIVE DATE OF SAV-
INGS PROVISIONS.—
(1) SUBMISSION TO CONGRESS.—The Secretary
shall submit to the Committee on Banking and Fi-
nancial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a copy of any proposed regula-
tion, 
guidance, 
or 
directive 
under 
subsection
(c)(1)(B).
(2) OPPORTUNITY TO REVIEW.—Such a regula-
tion, guidance, or directive may not be published for
comment or for final effectiveness before or during
the 15-calendar day period beginning on the day
after the date on which such regulation, guidance, or
directive was submitted to the Congress.
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(3) EFFECTIVE DATE.—No regulation, guide-
line, or directive may become effective until after the
expiration of the 30-calendar day period beginning
on the day after the day on which such rule or regu-
lation is published as final.
(4) WAIVER.—The provisions of paragraphs (2)
and (3) may be waived upon the written request of
the Secretary, if agreed to by the Chairmen and
Ranking Minority Members of both Committees.
(e) MODIFICATIONS.—Notwithstanding any provision
of this division or any annual contributions contract or
other agreement entered into by the Secretary and a pub-
lic housing agency pursuant to the provisions of the
United States Housing Act of 1937 (as in effect before
the effective date of the repeal under section 1601(b) of
this Act), the Secretary and the agency may by mutual
consent amend, supersede, or modify any such agreement
as appropriate to provide for assistance under this divi-
sion, except that the Secretary and the agency may not
consent to any such amendment, supersession, or modi-
fication that substantially alters any outstanding obliga-
tions requiring continued maintenance of the low-income
character of any public housing development and any such
amendment, supersession, or modification shall not be
given effect.
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(f) SECTION 8 PROJECT-BASED ASSISTANCE.—
(1) IN GENERAL.—The provisions of the United
States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) shall remain in effect after the effectiveness of
the repeal under subsection (b) with respect to all
section 8 project-based assistance, pursuant to exist-
ing and future contracts, except as otherwise pro-
vided by this section.
(2) TENANT
SELECTION
PREFERENCES.—An
owner of housing assisted with section 8 project-
based assistance shall give preference, in the selec-
tion of tenants for units of such projects that be-
come available, according to any system of local
preferences established pursuant to section 1223 by
the public housing agency having jurisdiction for the
area in which such projects are located.
(3) 1-YEAR
NOTIFICATION.—Paragraphs (9)
and (10) of section 8(c) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(c)) shall not be
applicable to section 8 project-based assistance.
(4) LEASE TERMS.—Leases for dwelling units
assisted with section 8 project-based assistance shall
comply with the provisions of paragraphs (1) and
(3) of section 1324 of this Act and shall not be sub-
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ject to the provisions of 8(d)(1)(B) of the United
States Housing Act of 1937.
(5) TERMINATION
OF
TENANCY.—Any termi-
nation of tenancy of a resident of a dwelling unit as-
sisted with section 8 project-based assistance shall
comply with the provisions of section 1324(2) and
section 1325 of this Act and shall not be subject to
the provisions of section 8(d)(1)(B) of the United
States Housing Act of 1937.
(6) TREATMENT OF COMMON AREAS.—The Sec-
retary may not provide any assistance amounts pur-
suant to an existing contract for section 8 project-
based assistance for a housing project and may not
enter into a new or renewal contract for such assist-
ance for a project unless the owner of the project
provides consent, to such local law enforcement
agencies as the Secretary determines appropriate,
for law enforcement officers of such agencies to
enter common areas of the project at any time and
without advance notice upon a determination of
probable cause by such officers that criminal activity
is taking place in such areas.
(7) DEFINITION.—For purposes of this sub-
section, the term ‘‘section 8 project-based assist-
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ance’’ means assistance under any of the following
programs:
(A) The new construction or substantial
rehabilitation program under section 8(b)(2) of
the United States Housing Act of 1937 (as in
effect before October 1, 1983).
(B) The property disposition program
under section 8(b) of the United States Hous-
ing Act of 1937 (as in effect before the effective
date of the repeal under section 1601(b) of this
Act).
(C) The loan management set-aside pro-
gram under subsections (b) and (v) of section
8 of such Act.
(D) The project-based certificate program
under section 8(d)(2) of such Act.
(E) The moderate rehabilitation program
under section 8(e)(2) of the United States
Housing Act of 1937 (as in effect before Octo-
ber 1, 1991).
(F) The low-income housing preservation
program under Low-Income Housing Preserva-
tion and Resident Homeownership Act of 1990
or the provisions of the Emergency Low Income
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Housing Preservation Act of 1987 (as in effect
before November 28, 1990).
(G) Section 8 of the United States Hous-
ing Act of 1937 (as in effect before the effective
date of the repeal under section 1601(b) of this
Act), following conversion from assistance
under section 101 of the Housing and Urban
Development Act of 1965 or section 236(f)(2)
of the National Housing Act.
(g) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 1602. OTHER REPEALS.
(a) IN GENERAL.—The following provisions of law
are hereby repealed:
(1) ASSISTED HOUSING ALLOCATION.—Section
213 of the Housing and Community Development
Act of 1974 (42 U.S.C. 1439).
(2) PUBLIC HOUSING RENT WAIVERS FOR PO-
LICE.—Section 519 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437a–1).
(3) TREATMENT OF CERTIFICATE AND VOUCH-
ER HOLDERS.—Subsection (c) of section 183 of the
Housing and Community Development Act of 1987
(42 U.S.C. 1437f note).
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(11) 
PROCUREMENT
OF
INSURANCE
BY
PHA’S.—In the item relating to ‘‘ADMINISTRATIVE
PROVISIONS’’ under the heading ‘‘MANAGEMENT
AND ADMINISTRATION’’ in title II of the Depart-
ments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropria-
tions Act, 1991, the penultimate undesignated para-
graph of such item (Public Law 101–507; 104 Stat.
1369).
(12) PUBLIC HOUSING CHILDHOOD DEVELOP-
MENT.—Section 222 of the Housing and Urban-
Rural Recovery Act of 1983 (12 U.S.C. 1701z–6
note).
(13) INDIAN HOUSING CHILDHOOD DEVELOP-
MENT.—Section 518 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (12 U.S.C. 1701z–6
note).
(14) PUBLIC HOUSING COMPREHENSIVE TRAN-
SITION DEMONSTRATION.—Section 126 of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 1437f note).
(15) PUBLIC
HOUSING
ONE-STOP
PERINATAL
SERVICES
DEMONSTRATION.—Section 521 of the
Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437t note).
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(16) PUBLIC
HOUSING
MINCS
DEMONSTRA-
TION.—Section 522 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437f
note).
(17) PUBLIC
HOUSING
ENERGY
EFFICIENCY
DEMONSTRATION.—Section 523 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 1437g note).
(18) OMAHA
HOMEOWNERSHIP
DEMONSTRA-
TION.—Section 132 of the Housing and Community
Development Act of 1992 (Public Law 102–550;
106 Stat. 3712).
(19) PUBLIC AND ASSISTED HOUSING YOUTH
SPORTS PROGRAMS.—Section 520 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 11903a).
(20) FROST-LELAND PROVISIONS.—Section 415
of the Department of Housing and Urban Develop-
ment—Independent Agencies Appropriations Act,
1988 (Public Law 100–202; 101 Stat. 1329–213);
except that, notwithstanding any other provision of
law, beginning on the date of enactment of this Act,
the public housing projects described in section 415
of such appropriations Act (as such section existed
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immediately before the date of enactment of this
Act) shall be eligible for demolition—
(A) under section 14 of the United States
Housing Act of 1937 (as such section existed
upon the enactment of this Act); and
(B) under section 9 of the United States
Housing Act of 1937.
(21) MULTIFAMILY
FINANCING.—The penul-
timate sentence of section 302(b)(2) of the National
Housing Act (12 U.S.C. 1717(b)(2)) and the penul-
timate sentence of section 305(a)(2) of the Emer-
gency Home Finance Act of 1970 (12 U.S.C.
1454(a)(2)).
(22) CONFLICTS OF INTEREST.—Subsection (c)
of section 326 of the Housing and Community De-
velopment Amendments of 1981 (42 U.S.C. 1437f
note).
(23) CONVERSION OF PUBLIC HOUSING.—Sec-
tion 202 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l
note) (enacted as section 101(e) of the Omnibus
Consolidated Rescissions and Appropriations Act of
1996 (Public Law 104–134; 110 Stat. 1321–279)).
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(b) SAVINGS PROVISION.—Except to the extent oth-
erwise provided in this division—
(1) the repeals made by subsection (a) shall not
affect any legally binding obligations entered into be-
fore the effective date of this division; and
(2) any funds or activities subject to a provision
of law repealed by subsection (a) shall continue to
be governed by the provision as in effect immediately
before such repeal.
Subtitle B—Other Provisions Relat-
ing to Public Housing and Rent-
al Assistance Programs
SEC. 1621. ALLOCATION OF ELDERLY HOUSING AMOUNTS.
Section 202(l) of the Housing Act of 1959 (12 U.S.C.
1701q(l)) is amended by adding at the end the following
new paragraph:
‘‘(4) CONSIDERATION IN ALLOCATING ASSIST-
ANCE.—Assistance under this section shall be allo-
cated in a manner that ensures that the awards of
the assistance are made for projects of sufficient size
to accommodate facilities for supportive services ap-
propriate to the needs of frail elderly residents.’’.
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SEC. 1622. PET OWNERSHIP.
Section 227 of the Housing and Urban-Rural Recov-
ery Act of 1983 (12 U.S.C. 1701r–1) is amended to read
as follows:
‘‘SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENT-
AL HOUSING.
‘‘(a) RIGHT OF OWNERSHIP.—A resident of a dwell-
ing unit in federally assisted rental housing may own com-
mon household pets or have common household pets
present in the dwelling unit of such resident, subject to
the reasonable requirements of the owner of the federally
assisted rental housing and providing that the resident
maintains the animals responsibly and in compliance with
applicable local and State public health, animal control,
and anticruelty laws. Such reasonable requirements may
include requiring payment of a nominal fee and pet deposit
by residents owning or having pets present, to cover the
operating costs to the project relating to the presence of
pets and to establish an escrow account for additional such
costs not otherwise covered, respectively. Notwithstanding
section 1225(d) of the Housing Opportunity and Respon-
sibility Act of 1998, a public housing agency may not
grant any exemption under such section from payment,
in whole or in part, of any fee or deposit required pursuant
to the preceding sentence.
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‘‘(b) PROHIBITION AGAINST DISCRIMINATION.—No
owner of federally assisted rental housing may restrict or
discriminate against any person in connection with admis-
sion to, or continued occupancy of, such housing by reason
of the ownership of common household pets by, or the
presence of such pets in the dwelling unit of, such person.
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) FEDERALLY
ASSISTED
RENTAL
HOUS-
ING.—The term ‘federally assisted rental housing’
means any multifamily rental housing project that
is—
‘‘(A) public housing (as such term is de-
fined in section 1103 of the Housing Oppor-
tunity and Responsibility Act of 1998);
‘‘(B) assisted with project-based assistance
pursuant to section 1601(f) of the Housing Op-
portunity and Responsibility Act of 1998 or
under section 8 of the United States Housing
Act of 1937 (as in effect before the effective
date of the repeal under section 1601(b) of the
Housing Opportunity and Responsibility Act of
1998);
‘‘(C) assisted under section 202 of the
Housing Act of 1959 (as amended by section
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801 of the Cranston-Gonzalez National Afford-
able Housing Act);
‘‘(D) assisted under section 202 of the
Housing Act of 1959 (as in effect before the en-
actment of the Cranston-Gonzalez National Af-
fordable Housing Act);
‘‘(E) assisted under title V of the Housing
Act of 1949; or
‘‘(F) insured, assisted, or held by the Sec-
retary or a State or State agency under section
236 of the National Housing Act.
‘‘(2) OWNER.—The term ‘owner’ means, with
respect to federally assisted rental housing, the en-
tity or private person, including a cooperative or
public housing agency, that has the legal right to
lease or sublease dwelling units in such housing (in-
cluding a manager of such housing having such
right).
‘‘(d) REGULATIONS.—This section shall take effect
upon the date of the effectiveness of regulations issued by
the Secretary to carry out this section. Such regulations
shall be issued not later than the expiration of the 1-year
period beginning on the date of the enactment of the
Housing Opportunity and Responsibility Act of 1998 and
after notice and opportunity for public comment in accord-
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ance with the procedure under section 553 of title 5,
United States Code, applicable to substantive rules (not-
withstanding subsections (a)(2), (b)(B), and (d)(3) of
such section).’’.
SEC. 1623. REVIEW OF DRUG ELIMINATION PROGRAM CON-
TRACTS.
(a) REQUIREMENT.—The Secretary of Housing and
Urban Development shall investigate all security contracts
awarded by grantees under the Public and Assisted Hous-
ing Drug Elimination Act of 1990 (42 U.S.C. 11901 et
seq.) that are public housing agencies that own or operate
more than 4,500 public housing dwelling units—
(1) to determine whether the contractors under
such contracts have complied with all laws and regu-
lations regarding prohibition of discrimination in
hiring practices;
(2) to determine whether such contracts were
awarded in accordance with the applicable laws and
regulations regarding the award of such contracts;
(3) to determine how many such contracts were
awarded under emergency contracting procedures;
(4) to evaluate the effectiveness of the con-
tracts; and
(5) to provide a full accounting of all expenses
under the contracts.
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(b) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Secretary shall complete
the investigation required under subsection (a) and submit
a report to the Congress regarding the findings under the
investigation. With respect to each such contract, the re-
port shall (1) state whether the contract was made and
is operating, or was not made or is not operating, in full
compliance with applicable laws and regulations, and (2)
for each contract that the Secretary determines is in such
compliance issue a personal certification of such compli-
ance by the Secretary of Housing and Urban Develop-
ment.
(c) ACTIONS.—For each contract that is described in
the report under subsection (b) as not made or not operat-
ing in full compliance with applicable laws and regulations,
the Secretary of Housing and Urban Development shall
promptly take any actions available under law or regula-
tion that are necessary—
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
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SEC. 1624. AMENDMENTS TO PUBLIC AND ASSISTED HOUS-
ING DRUG ELIMINATION ACT OF 1990.
(a) SHORT TITLE, PURPOSES, AND AUTHORITY TO
MAKE GRANTS.—Chapter 2 of subtitle C of title V of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.)
is amended by striking the chapter heading and all that
follows through section 5123 and inserting the following:
‘‘CHAPTER 2—COMMUNITY
PARTNERSHIPS AGAINST CRIME
‘‘SEC. 5121. SHORT TITLE.
‘‘This chapter may be cited as the ‘Community Part-
nerships Against Crime Act of 1998’.
‘‘SEC. 5122. PURPOSES.
‘‘The purposes of this chapter are to—
‘‘(1) improve the quality of life for the vast ma-
jority of law-abiding public housing residents by re-
ducing the levels of fear, violence, and crime in their
communities;
‘‘(2) broaden the scope of the Public and As-
sisted Housing Drug Elimination Act of 1990 to
apply to all types of crime, and not simply crime
that is drug-related; and
‘‘(3) reduce crime and disorder in and around
public housing through the expansion of community-
oriented policing activities and problem solving.
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‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.
‘‘The Secretary of Housing and Urban Development
may make grants in accordance with the provisions of this
chapter for use in eliminating crime in and around public
housing and other federally assisted low-income housing
projects to (1) public housing agencies, and (2) private,
for-profit and nonprofit owners of federally assisted low-
income housing.’’.
(b) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.—Section 5124(a) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is
amended—
(A) in the matter preceding paragraph (1),
by inserting ‘‘and around’’ after ‘‘used in’’;
(B) in paragraph (3), by inserting before
the semicolon the following: ‘‘, including fenc-
ing, lighting, locking, and surveillance systems’’;
(C) in paragraph (4), by striking subpara-
graph (A) and inserting the following new sub-
paragraph:
‘‘(A) to investigate crime; and’’;
(D) in paragraph (6)—
(i) by striking ‘‘in and around public
or other federally assisted low-income
housing projects’’; and
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(ii) by striking ‘‘and’’ after the semi-
colon; and
(E) by striking paragraph (7) and insert-
ing the following new paragraphs:
‘‘(7) providing funding to nonprofit public hous-
ing resident management corporations and resident
councils to develop security and crime prevention
programs involving site residents;
‘‘(8) the employment or utilization of one or
more individuals, including law enforcement officers,
made available by contract or other cooperative ar-
rangement with State or local law enforcement agen-
cies, to engage in community- and problem-oriented
policing involving interaction with members of the
community in proactive crime control and prevention
activities;
‘‘(9) programs and activities for or involving
youth, including training, education, recreation and
sports, career planning, and entrepreneurship and
employment activities and after school and cultural
programs; and
‘‘(10) service programs for residents that ad-
dress the contributing factors of crime, including
programs for job training, education, drug and alco-