165
court determines that all defaults have been cured or
the local housing and management authority will be
able to make the same amount of progress in cor-
recting the management of the housing as the re-
ceiver.
(f) LIABILITY.—If the Secretary takes possession of
an authority pursuant to subsection (b)(2) or a receiver
is appointed pursuant to subsection (b)(5) for a local
housing and management authority, the Secretary or the
receiver shall be deemed to be acting in the capacity of
the local housing and management authority (and not in
the official capacity as Secretary or other official) and any
liability incurred shall be a liability of the local housing
and management authority.
SEC. 438. MANDATORY TAKEOVER OF CHRONICALLY TROU-
BLED PHA’S.
(a) REMOVAL
OF AGENCY.—Notwithstanding any
other provision of this Act, not later than the expiration
of the 180-day period beginning on the date of the enact-
ment of this Act, the Secretary shall take one of the fol-
lowing actions with respect to each chronically troubled
public housing agency:
(1) CONTRACTING FOR MANAGEMENT.—Solicit
competitive proposals for the management of the
agency pursuant to section 437(b)(1) and replace
166
the management of the agency pursuant to selection
of such a proposal.
(2) TAKEOVER.—Take possession of the agency
pursuant to section 437(b)(2) of such Act.
(b) DEFINITION.—For purposes of this section, the
term ‘‘chronically troubled public housing agency’’ means
a public housing agency that, as of the date of the enact-
ment of this Act, is designated under section 6(j)(2) of
the United States Housing Act of 1937 (as in effect imme-
diately before the enactment of this Act) as a troubled
public housing agency and has been so designated continu-
ously for the 3-year period ending upon such date of en-
actment; except that such term does not include any agen-
cy 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.
SEC. 439. TREATMENT OF TROUBLED PHA’S.
(a) EFFECT OF TROUBLED STATUS ON CHAS.—The
comprehensive housing affordability strategy for the first
year beginning after the date of the enactment of this Act
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
167
105 of the Cranston-Gonzalez National Affordable Hous-
ing Act unless such plan includes a description of the man-
ner in which the State or unit will assist such troubled
agency in improving its operations to remove such des-
ignation.
(b) DEFINITION.—For purposes of this section, the
term ‘‘troubled public housing agency’’ means a public
housing agency that—
(1) upon the date of the enactment of this Act,
is designated under section 6(j)(2) of the United
States Housing Act of 1937 (as in effect imme-
diately before the enactment of this Act) as a trou-
bled public housing agency; and
(2) is not a chronically troubled public housing
agency, as such term is defined in section 438(b) of
this Act.
SEC. 438. MAINTENANCE OF AND ACCESS TO RECORDS.
(a) KEEPING OF RECORDS.—Each local housing and
management authority shall keep such records as may be
reasonably necessary to disclose the amount and the dis-
position by the authority of the proceeds of assistance re-
ceived pursuant to this Act and to ensure compliance with
the requirements of this Act.
(b) ACCESS TO DOCUMENTS.—The Secretary, the In-
spector General for the Department of Housing and
168
Urban Development, and the Comptroller General of the
United States shall each have access for the purpose of
audit and examination to any books, documents, papers,
and records of a local housing and management authority
that are pertinent to this Act and assistance received pur-
suant to this Act.
SEC. 
440. 
ANNUAL 
REPORTS 
REGARDING 
TROUBLED
LHMA’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 local housing and management
authorities that are designated as troubled or dys-
functional under section 431(a)(2) and the reasons
for such designation;
(2) identifies the local housing and management
authorities that have lost accreditation pursuant to
section 432; and
(3) describes any actions that have been taken
in accordance with sections 433, 434, and 435.
SEC. 442. APPLICABILITY TO RESIDENT MANAGEMENT
CORPORATIONS.
The Secretary shall apply the provisions of this sub-
title to resident management corporations in the same
169
manner as applied to local housing and management au-
thorities.
SEC. 443. INAPPLICABILITY TO INDIAN HOUSING.
The provisions of sections 431, 432, 433, 434, 435,
437, and 441 shall not apply to public housing developed
or operated pursuant to a contract between the Secretary
and an Indian housing authority.
TITLE V—REPEALS AND
CONFORMING AMENDMENTS
SEC. 501. REPEALS.
(a) IN GENERAL.—The following provisions of law
are hereby repealed:
(1) UNITED STATES HOUSING ACT OF 1937.—
The United States Housing Act of 1937 (42 U.S.C.
1437 et seq.).
(2) ASSISTED HOUSING ALLOCATION.—Section
213 of the Housing and Community Development
Act of 1974 (42 U.S.C. 1439).
(3) PUBLIC HOUSING RENT WAIVERS FOR PO-
LICE.—Section 519 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437a–1).
(4) OCCUPANCY
PREFERENCES
AND
INCOME
MIX
FOR
NEW
CONSTRUCTION
AND
SUBSTANTIAL
REHABILITATION PROJECTS.—Subsection (c) of sec-
tion 545, and section 555, of the Cranston-Gonzalez
170
National Affordable Housing Act (42 U.S.C. 1437f
note).
(5) RETROACTIVE PAYMENT FOR ANNUAL AD-
JUSTMENT FACTORS.—Section 801 of the Depart-
ment of Housing and Urban Development Reform
Act of 1989 42 U.S.C. 1437f note).
(6) EXCESSIVE
RENT
BURDEN
DATA.—Sub-
section (b) of section 550 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f
note).
(7) SECTION
DISASTER
RELIEF.—Sections
931 and 932 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 1737c note).
(8) MOVING TO OPPORTUNITY FOR FAIR HOUS-
ING.—Section 152 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).
(9) REPORT REGARDING FAIR HOUSING OBJEC-
TIVES.—Section 153 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437f
note).
(10) SECTION 8 COMMUNITY INVESTMENT DEM-
ONSTRATION.—Section 6 of the HUD Demonstra-
tion Act of 1993 (42 U.S.C. 1437f note).
(11) SPECIAL
PROJECTS
FOR
ELDERLY
OR
HANDICAPPED FAMILIES.—Section 209 of the Hous-