SEC. 2. OBLIGATION FOR OWNERS OF ASSISTED UNITS TO 
REMAIN CURRENT ON LOCAL PROPERTY AND 
SCHOOL TAXES. 
(a) IN GENERAL.—Subsection (o) of section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 
is amended by adding at the end the following new para-
graph: 
‘‘(20) OBLIGATION FOR OWNERS TO REMAIN CUR-
RENT ON LOCAL PROPERTY AND SCHOOL TAXES.— 
‘‘(1) OBLIGATION.—Each housing assistance 
payments contract entered into by a public housing 
agency and the owner of a dwelling unit shall pro-
vide that the owner of the dwelling unit assisted 
under the contract shall pay, on a timely basis, all 
covered taxes validly assessed against the property 
in which such dwelling unit is located. 
‘‘(2) AUTHORITY TO PROVIDE FOR USE OF AS-
SISTANCE AMOUNTS TO PAY DELINQUENT TAXES.— 
A housing assistance payments contract entered into 
by a public housing agency and the owner of a dwell-
ing unit may provide that, upon notification by a 
taxing authority that the owner of a dwelling unit 
assisted under this subsection is delinquent with re-
spect to payment of any covered taxes assessed by 
such taxing authority against the property in which 
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such dwelling unit is located and identification of the 
amount of such delinquency— 
‘‘(A) the public housing agency shall abate 
all of the assistance amounts under this sub-
section with respect to such property until the 
transfer of amounts pursuant to subparagraph 
(B) is completed; and 
‘‘(B) the agency shall transfer to such tax-
ing authority, on a monthly basis, an amount 
equal to the monthly assistance amounts under 
this subsection with respect to such dwelling 
unit (or such lesser amount as may be agreed 
to by the agency and such authority) until the 
delinquency identified in such notification is 
eliminated (or for such shorter period, as may 
be agreed to by the agency and such authority). 
‘‘(3) REQUIREMENTS AND PROCEDURES.—The 
Secretary shall establish such requirements as may 
be necessary to provide for the housing assistance 
payments contract provisions under paragraphs (1) 
and (2), including, in the case of provisions author-
ized by paragraph (2), such requirements regarding 
notifications and transfer of amounts pursuant to 
paragraph (2)(B) as may be necessary to ensure 
that amounts are not so transferred except for ac-
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tual and confirmed taxes assessed to and owed by an 
owner of a dwelling unit, to ensure that no amounts 
are transferred in excess of the amount of such 
taxes owed, and to ensure the timely commencement 
and termination of such transfers. 
‘‘(4) TREATMENT
OF
TENANTS.—Nothing in 
this section may be construed to authorize, or estab-
lish any cause or grounds for, the termination of the 
tenancy of any tenant from any dwelling unit as-
sisted under this subsection. 
‘‘(5) DATABASE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
maintain a database of information regarding— 
‘‘(i) owners of dwelling units assisted 
under this subsection whose housing assist-
ance payments contracts have been termi-
nated for failure to comply with the provi-
sion required under paragraph (1); and 
‘‘(ii) owners of such dwelling units 
with respect to whom assistance amounts 
have been abated and transferred to a tax-
ing authority pursuant to paragraph (2). 
‘‘(B) CONTENTS.—Such database shall in-
clude information that identifies the owner, the 
property for which such assistance was pro-
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vided, the amount transferred, and the period 
over which such abatement and transfer oc-
curred. 
‘‘(C) INFORMATION FROM PUBLIC HOUS-
ING
AGENCIES.—The Secretary shall require 
public housing agencies to submit information 
regarding the abatement and transfer of assist-
ance amounts pursuant to paragraph (2) suffi-
cient for the Secretary to maintain such data-
base. 
‘‘(6) DEFINITIONS.—For purposes of this para-
graph, the following definitions shall apply: 
‘‘(A) COVERED TAXES.—The term ‘covered 
taxes’ means any tax under the law of a State 
or any political subdivision of a State that is as-
sessed upon real property or the revenue of 
which is dedicated for use only for schools or 
for costs of education. 
‘‘(B) TAXING AUTHORITY.—The term ‘tax-
ing authority’ means any State or political sub-
division of a State, including any agency or au-
thority thereof, having authority to assess and 
collect covered taxes.’’. 
(b) REGULATIONS.—The Secretary of Housing and 
Urban Development shall issue any regulations necessary 
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to carry section 8(o)(20) of the United States Housing 
Act of 1937, as added by the amendment made by sub-
section (a). 
Æ 
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