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justed by an annual adjustment factor to 
be established by the Secretary, which shall 
be established using the smallest geo-
graphical areas for which data on changes 
in rental costs are annually available; 
‘‘(ii) by making any adjustments nec-
essary to provide for the first-time renewal 
of 
vouchers 
funded 
under 
paragraph 
(1)(B) and of any incremental vouchers 
funded in previous years; 
‘‘(iii) by making any adjustments nec-
essary for full year funding of vouchers 
ported in the prior calendar year under 
subsection (r)(2); and 
‘‘(iv) by making such other adjust-
ments as the Secretary considers appro-
priate, including adjustments necessary to 
address changes in voucher utilization 
rates and voucher costs related to natural 
and other major disasters. 
‘‘(B) LEASING AND COST DATA.—For pur-
poses of subparagraph (A)(i), leasing and cost 
data shall be calculated annually by using the 
average for the preceding calendar year. Such 
leasing and cost data shall be adjusted to in-
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clude vouchers that were set aside under a com-
mitment to provide project-based assistance 
under subsection (o)(13) and to exclude 
amounts funded through advances under para-
graph (3). Such leasing and cost data shall not 
include funds not appropriated for tenant-based 
assistance under section 8(o), unless the agen-
cy’s funding was prorated in the prior year and 
the agency used other funds to maintain vouch-
ers in use. 
‘‘(C) OVERLEASING.—For the purpose of 
determining allocations under subsection (A)(i), 
the leasing rate calculated for the prior cal-
endar year may exceed an agency’s authorized 
voucher level, except that such calculation in 
2009 shall not include amounts resulting from 
a leasing rate in excess of 103 percent of an 
agency’s authorized vouchers in 2008 which re-
sults from the use of accumulated amounts, as 
referred to in paragraph (4)(A). 
‘‘(D) MOVING TO WORK; HOUSING INNOVA-
TION
PROGRAM.—Notwithstanding 
subpara-
graphs (A) and (B), each public housing agency 
participating at any time in the moving to work 
demonstration under section 204 of the Depart-
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ments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies 
Appropriations Act, 1996 (42 U.S.C. 1437f 
note) or in the housing innovation program 
under section 36 of this Act shall be funded 
pursuant to its agreement under such program 
and shall be subject to any pro rata adjustment 
made under subparagraph (E)(i). 
‘‘(E) PRO RATA ALLOCATION.— 
‘‘(i) INSUFFICIENT
FUNDS.—To the 
extent that amounts made available for a 
fiscal year are not sufficient to provide 
each public housing agency with the full al-
location for the agency determined pursu-
ant to subparagraphs (A) and (D), the 
Secretary shall reduce such allocation for 
each agency on a pro rata basis, except 
that renewal funding of enhanced vouchers 
under section 8(t) shall not be subject to 
such proration. 
‘‘(ii) EXCESS FUNDS.—To the extent 
that amounts made available for a fiscal 
year exceed the amount necessary to pro-
vide each housing agency with the full allo-
cation for the agency determined pursuant 
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to subparagraphs (A) and (D), such excess 
amounts shall be used for the purposes 
specified in subparagraphs (B) and (C) of 
paragraph (4). 
‘‘(F) PROMPT
FUNDING
ALLOCATION.— 
The Secretary shall allocate all funds under this 
subsection for each year before the latter of (i) 
February 15, or (ii) the expiration of the 45- 
day period beginning upon the enactment of the 
appropriations Act funding such renewals. 
‘‘(3) ADVANCES.— 
‘‘(A) AUTHORITY.—During the last 3 
months of each calendar year, the Secretary 
shall provide amounts to any public housing 
agency, at the request of the agency, in an 
amount up to two percent of the allocation for 
the agency for such calendar year, subject to 
subparagraph (C). 
‘‘(B) USE.—Amounts advanced under sub-
paragraph (A) may be used to pay for addi-
tional voucher costs, including costs related to 
temporary overleasing. 
‘‘(C) USE
OF
PRIOR
YEAR
AMOUNTS.— 
During the last 3 months of a calendar year, if 
amounts previously provided to a public housing 
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agency for tenant-based assistance for such 
year or for previous years remain unobligated 
and available to the agency— 
‘‘(i) the agency shall exhaust such 
amounts to cover any additional voucher 
costs under subparagraph (B) before 
amounts advanced under subparagraph (A) 
may be so used; and 
‘‘(ii) the amount that may be ad-
vanced under subparagraph (A) to the 
agency shall be reduced by an amount 
equal to the total of such previously pro-
vided and unobligated amounts. 
‘‘(D) 
REPAYMENT.—Amounts 
advanced 
under subparagraph (A) in a calendar year 
shall be repaid to the Secretary in the subse-
quent calendar year by reducing the amounts 
made available for such agency for such subse-
quent calendar year pursuant to allocation 
under paragraph (2) by an amount equal to the 
amount so advanced to the agency. 
‘‘(4) RECAPTURE.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
recapture, from amounts provided under the 
annual contributions contract for a public hous-
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ing agency for a calendar year, all accumulated 
amounts allocated under paragraph (2) and 
from previous years that are unused by the 
agency at the end of each calendar year ex-
cept— 
‘‘(i) with respect to the recapture 
under this subparagraph at the end of 
2007, an amount equal to 12.5 percent of 
the amount allocated to the public housing 
agency for such year pursuant to para-
graph (2)(A); and 
‘‘(ii) with respect to the recapture 
under this subparagraph at the end of 
each of 2008, 2009, 2010, and 2011, an 
amount equal to 5 percent of such amount 
allocated to the agency for such year. Not-
withstanding any other provision of law, 
each public housing agency may retain all 
amounts not authorized to be recaptured 
under this subparagraph, and may use 
such amounts for all authorized purposes. 
‘‘(B) REALLOCATION.—Not later than May 
1 of each calendar year, the Secretary shall— 
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‘‘(i) calculate the aggregate unused 
amounts for the preceding year recaptured 
pursuant to subparagraph (A); 
‘‘(ii) set aside and make available 
such amounts as the Secretary considers 
appropriate to reimburse public housing 
agencies for increased costs related to port-
ability and family self-sufficiency activities 
during such year; and 
‘‘(iii) reallocate all remaining amounts 
among public housing agencies, with pri-
ority given based on the extent to which an 
agency has utilized the amount allocated 
under paragraph (2) for the agency to 
serve eligible families. 
‘‘(C) USE.—Amounts reallocated to a pub-
lic housing agency pursuant to subparagraph 
(B)(iii) may be used only to increase voucher 
leasing rates as provided under paragraph 
(2)(C).’’. 
(b) ABSORPTION OF VOUCHERS FROM OTHER AGEN-
CIES.—Section 8(r)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(r)(2)) is amended by adding 
after the period at the end the following: ‘‘The agency 
shall absorb the family into its program for voucher assist-
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ance under this section and shall have priority to receive 
additional funding from the Secretary for the housing as-
sistance provided for such family from amounts made 
available pursuant to subsection (dd)(4)(B).’’. 
(c) VOUCHERS FOR PERSONS WITH DISABILITIES.— 
The Secretary of Housing and Urban Development shall 
develop and issue, to public housing agencies that received 
voucher assistance under section 8(o) for non-elderly dis-
abled families pursuant to appropriations Acts for fiscal 
years 1997 through 2002, guidance to ensure that, to the 
maximum extent practicable, such vouchers continue to be 
provided upon turnover to qualified non-elderly disabled 
families. 
SEC. 7. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—Section 8(q) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended— 
(1) in paragraph (1), by striking subparagraphs 
(B) and (C) and inserting the following new sub-
paragraphs: 
‘‘(B) CALCULATION.—The fee under this 
subsection shall— 
‘‘(i) be payable to each public housing 
agency for each month for which a dwell-
ing unit is covered by an assistance con-
tract; 
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‘‘(ii) be based on the per-unit fee pay-
able to the agency in fiscal year 2003, up-
dated for each subsequent year as specified 
in subsection (iv); 
‘‘(iii) include an amount for the cost 
of issuing voucher to new participants; 
‘‘(iv) be updated each year using an 
index of changes in wage data or other ob-
jectively measurable data that reflect the 
costs of administering the program for 
such assistance, as determined by the Sec-
retary; and 
‘‘(v) include an amount for the cost of 
family self-sufficiency coordinators, as pro-
vided in section 23(h)(1). 
‘‘(C) PUBLICATION.—The Secretary shall 
cause to be published in the Federal Register 
the fee rate for each geographic area.’’; and 
(2) in paragraph (4), by striking ‘‘1999’’ and 
inserting ‘‘2007’’. 
(b) ADMINISTRATIVE FEES FOR FAMILY SELF-SUF-
FICIENCY PROGRAM COSTS.—Subsection (h) of section 23 
of the United States Housing Act of 1937 (42 U.S.C. 
1437u(h)) is amended by striking paragraph (1) and in-
serting the following new paragraph: 
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‘‘(1) SECTION 8 FEES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a fee under section 8(q) for the costs 
incurred in administering the self-sufficiency 
program under this section to assist families re-
ceiving voucher assistance through section 8(o). 
‘‘(B) ELIGIBILITY FOR FEE.—The fee shall 
provide funding for family self-sufficiency coor-
dinators as follows: 
‘‘(i) BASE
FEE.—A public housing 
agency serving 25 or more participants in 
the family self-sufficiency program under 
this section shall receive a fee equal to the 
costs of employing one full-time family 
self-sufficiency coordinator. An agency 
serving fewer than 25 such participants 
shall receive a prorated fee. 
‘‘(ii) ADDITIONAL
FEE.—An agency 
that meets minimum performance stand-
ards shall receive an additional fee suffi-
cient to cover the costs of employing a sec-
ond family self-sufficiency coordinator if 
the agency has 75 or more participating 
families, and a third such coordinator if it 
has 125 or more participating families. 
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