H. R. 4194—82
shall apply beginning upon the date of the enactment of
the Quality Housing and Work Responsibility Act of 1998.
‘‘(3) EFFECT
OF
FRAUD.—Notwithstanding the provisions
of section 3(a) (relating to family rental contributions) or para-
graph (4) or (5) of section 3(b) (relating to definition of income
and adjusted income), if the welfare or public assistance benefits
of a covered family are reduced because of an act of fraud
by a member of the family under the law or program, the
amount required to be paid by the covered family as a monthly
contribution toward rent may not be decreased, during the
period of the reduction, as a result of any decrease in the
income of the family (to the extent that the decrease in income
is a result of the benefits reduction). This paragraph shall
apply beginning upon the date of the enactment of the Quality
Housing and Work Responsibility Act of 1998.
‘‘(4) NOTICE.—Paragraphs (2) and (3) shall not apply to
any covered family before the public housing agency providing
assistance under this Act on behalf of the family obtains written
notification from the relevant welfare or public assistance
agency specifying that the family’s benefits have been reduced
because of noncompliance with economic self-sufficiency pro-
gram or work activities requirements or fraud, and the level
of such reduction.
‘‘(5) OCCUPANCY RIGHTS.—This subsection may not be con-
strued to authorize any public housing agency to establish
any time limit on tenancy in a public housing dwelling unit
or on receipt of tenant-based assistance under section 8.
‘‘(6) REVIEW.—Any covered family residing in public hous-
ing that is affected by the operation of this subsection shall
have the right to review the determination under this sub-
section through the administrative grievance procedure estab-
lished pursuant to section 6(k) for the public housing agency.
‘‘(7) COOPERATION AGREEMENTS FOR ECONOMIC SELF-SUFFI-
CIENCY ACTIVITIES.—
‘‘(A) REQUIREMENT.—A public housing agency providing
public housing dwelling units or tenant-based assistance
under section 8 for covered families shall make its best
efforts to enter into such cooperation agreements, with
State, local, and other agencies providing assistance to
covered families under welfare or public assistance pro-
grams, as may be necessary, to provide for such agencies
to transfer information to facilitate administration of sub-
section (c) and paragraphs (2), (3), and (4) of this subsection
and other information regarding rents, income, and assist-
ance that may assist a public housing agency or welfare
or public assistance agency in carrying out its functions.
‘‘(B) CONTENTS.—A public housing agency shall seek
to include in a cooperation agreement under this paragraph
requirements and provisions designed to target assistance
under welfare and public assistance programs to families
residing in public housing projects and families receiving
tenant-based assistance under section 8, which may include
providing for economic self-sufficiency services within such
housing, providing for services designed to meet the unique
employment-related needs of residents of such housing and
recipients of such assistance, providing for placement of
H. R. 4194—83
workfare positions on-site in such housing, and such other
elements as may be appropriate.
‘‘(C) CONFIDENTIALITY.—This paragraph may not be
construed to authorize any release of information prohib-
ited by, or in contravention of, any other provision of Fed-
eral, State, or local law.
‘‘(e) LEASE PROVISIONS.—A public housing agency shall incor-
porate into leases under section 6(l) and into agreements for the
provision of tenant-based assistance under section 8, provisions
incorporating the conditions under subsection (d).
‘‘(f ) TREATMENT OF INCOME.—Notwithstanding any other provi-
sion of this section, in determining the income of a family who
resides in public housing or receives tenant-based assistance under
section 8, a public housing agency shall consider any decrease
in the income of a family that results from the reduction of any
welfare or public assistance benefits received by the family under
any Federal, State, or local law regarding a program for such
assistance if the family (or a member thereof, as applicable) has
complied with the conditions for receiving such assistance and
is unable to obtain employment notwithstanding such compliance.
‘‘(g) DEFINITION.—For purposes of this section, the term ‘eco-
nomic self-sufficiency program’ means any program designed to
encourage, assist, train, or facilitate the economic independence
of participants and their families or to provide work for participants,
including programs for job training, employment counseling, work
placement, basic skills training, education, workfare, financial or
household management, apprenticeship, or other activities as the
Secretary may provide.’’.
(b) 1-YEAR LEASES.—Section 6(l) of the United States Housing
Act of 1937 (42 U.S.C. 1437d(l)) is amended—
(1) by redesignating paragraphs (1) through (6) as para-
graphs (2) through (7), respectively;
(2) by redesignating paragraph (7) as paragraph (9); and
(3) by inserting before paragraph (2) the following new
paragraph:
‘‘(1) have a term of 12 months and shall be automatically
renewed for all purposes except for noncompliance with the
requirements under section 12(c) (relating to community service
requirements); except that nothing in this title shall prevent
a resident from seeking timely redress in court for failure
to renew based on such noncompliance;’’.
SEC. 513. INCOME TARGETING.
(a) IN GENERAL.—Section 16 of the United States Housing
Act of 1937 (42 U.S.C. 1437n) is amended by striking the section
designation and all that follows through the end of subsection
(d) and inserting the following:
‘‘SEC. 16. (a) INCOME ELIGIBILITY FOR PUBLIC HOUSING.—
‘‘(1) INCOME
MIX
WITHIN
PROJECTS.—A public housing
agency may establish and utilize income-mix criteria for the
selection of residents for dwelling units in public housing
projects, subject to the requirements of this section.
‘‘(2) PHA INCOME MIX.—
‘‘(A) TARGETING.—Except as provided in paragraph (4),
of the public housing dwelling units of a public housing
agency made available for occupancy in any fiscal year
H. R. 4194—84
by eligible families, not less than 40 percent shall be occu-
pied by families whose incomes at the time of commence-
ment of occupancy do not exceed 30 percent of the area
median income, as determined by the Secretary with
adjustments for smaller and larger families.
‘‘(3) PROHIBITION OF CONCENTRATION OF LOW-INCOME FAMI-
LIES.—
‘‘(A) PROHIBITION.—A public housing agency may not,
in complying with the requirements under paragraph (2),
concentrate very low-income families (or other families with
relatively low incomes) in public housing dwelling units
in certain public housing projects or certain buildings
within projects. The Secretary shall review the income
and occupancy characteristics of the public housing projects
and the buildings of such projects of such agencies to
ensure compliance with the provisions of this paragraph
and paragraph (2).
‘‘(B) DECONCENTRATION.—
‘‘(i) IN GENERAL.—A public housing agency shall
submit with its annual public housing agency plan
under section 5A an admissions policy designed to
provide for deconcentration of poverty and income-mix-
ing by bringing higher income tenants into lower
income projects and lower income tenants into higher
income projects. This clause may not be construed to
impose or require any specific income or racial quotas
for any project or projects.
‘‘(ii) INCENTIVES.—In implementing the policy
under clause (i), a public housing agency may offer
incentives for eligible families having higher incomes
to occupy dwelling unit in projects predominantly occu-
pied by eligible families having lower incomes, and
provide for occupancy of eligible families having lower
incomes in projects predominantly occupied by eligible
families having higher incomes.
‘‘(iii) FAMILY
CHOICE.—Incentives referred to in
clause (ii) may be made available by a public housing
agency only in a manner that allows for the eligible
family to have the sole discretion in determining
whether to accept the incentive and an agency may
not take any adverse action toward any eligible family
for choosing not to accept an incentive and occupancy
of a project described in clause (i)(II), Provided, That
the skipping of a family on a waiting list to reach
another family to implement the policy under clause
(i) shall not be considered an adverse action. An agency
implementing an admissions policy under this subpara-
graph shall implement the policy in a manner that
does not prevent or interfere with the use of site-
based waiting lists authorized under section 6(s).
‘‘(4) FUNGIBILITY WITH TENANT-BASED ASSISTANCE.—
‘‘(A) AUTHORITY.—Except as provided under subpara-
graph (D), the number of public housing dwelling units
that a public housing agency shall otherwise make avail-
able in accordance with paragraph (2)(A) to comply with
the percentage requirement under such paragraph for a
H. R. 4194—85
fiscal year shall be reduced by the credit number for the
agency under subparagraph (B).
‘‘(B) CREDIT FOR EXCEEDING TENANT-BASED ASSISTANCE
TARGETING
REQUIREMENT.—Subject to subparagraph (C),
the credit number under this subparagraph for a public
housing agency for a fiscal year shall be the number by
which—
‘‘(i) the aggregate number of qualified families who,
in such fiscal year, are initially provided tenant-based
assistance under section 8 by the agency; exceeds
‘‘(ii) the number of qualified families that is
required for the agency to comply with the percentage
requirement under subsection (b)(1) for such fiscal
year.
‘‘(C) LIMITATIONS ON CREDIT NUMBER.—The credit num-
ber under subparagraph (B) for a public housing agency
for a fiscal year may not in any case exceed the lesser
of—
‘‘(i) the number of dwelling units that is equivalent
to 10 percent of the aggregate number of families ini-
tially provided tenant-based assistance under section
8 by the agency in such fiscal year; or
‘‘(ii) the number of public housing dwelling units
of the agency that—
‘‘(I) are in projects that are located in census
tracts having a poverty rate of 30 percent or more;
and
‘‘(II) are made available for occupancy during
such fiscal year and are actually filled only by
families whose incomes at the time of commence-
ment of such occupancy exceed 30 percent of the
area median income, as determined by the Sec-
retary with adjustments for smaller and larger
families.
‘‘(D) 
FUNGIBILITY
FLOOR.—Notwithstanding 
any
authority under subparagraph (A), of the public housing
dwelling units of a public housing agency made available
for occupancy in any fiscal year by eligible families, not
less than 30 percent shall be occupied by families whose
incomes at the time of commencement of occupancy do
not exceed 30 percent of the area median income, as deter-
mined by the Secretary with adjustments for smaller and
larger families.
‘‘(E) QUALIFIED FAMILY.—For purposes of this para-
graph, the term ‘qualified family’ means a family having
an income described in subsection (b)(1).
‘‘(b) INCOME ELIGIBILITY FOR TENANT-BASED SECTION 8 ASSIST-
ANCE.—
‘‘(1) IN GENERAL.—Of the families initially provided tenant-
based assistance under section 8 by a public housing agency
in any fiscal year, not less than 75 percent shall be families
whose incomes do not exceed 30 percent of the area median
income, as determined by the Secretary with adjustments for
smaller and larger families; except that the Secretary may
establish income ceilings higher or lower than 30 percent of
the area median income on the basis of the Secretary’s findings
H. R. 4194—86
that such variations are necessary because of unusually high
or low family incomes.
‘‘(2) JURISDICTIONS SERVED BY MULTIPLE PHA’S.—In the case
of any 2 or more public housing agencies that administer ten-
ant-based assistance under section 8 with respect solely to
identical geographical areas, such agencies shall be treated
as a single public housing agency for purposes of paragraph
(1).
‘‘(c) INCOME ELIGIBILITY FOR PROJECT-BASED SECTION 8 ASSIST-
ANCE.—
‘‘(1) PRE-1981 ACT PROJECTS.—Not more than 25 percent
of the dwelling units that were available for occupancy under
section 8 housing assistance payments contracts under this
Act before the effective date of the Housing and Community
Development Amendments of 1981, and which will be leased
on or after such effective date shall be available for leasing
by low-income families other than very low-income families.
‘‘(2) POST-1981 ACT PROJECTS.—Not more than 15 percent
of the dwelling units which become available for occupancy
under section 8 housing assistance payments contracts under
this Act on or after the effective date of the Housing and
Community Development Amendments of 1981 shall be avail-
able for leasing by low-income families other than very low-
income families.
‘‘(3) TARGETING.—For each project assisted under a contract
for project-based assistance, of the dwelling units that become
available for occupancy in any fiscal year that are assisted
under the contract, not less than 40 percent
‘‘(4) PROHIBITION OF SKIPPING.—In developing admission
procedures implementing paragraphs (1), (2), and (3), the Sec-
retary shall prohibit project owners from selecting families
for residence in an order different from the order on the waiting
list for the purpose of selecting relatively higher income families
for residence. Nothing in this paragraph or this subsection
may be construed to prevent an owner of housing assisted
under a contract for project-based assistance from establishing
a preference for occupancy in such housing for families contain-
ing a member who is employed.
‘‘(5) EXCEPTION.—The limitations established in paragraphs
(1), (2), and (3) shall not apply to dwelling units made available
under project-based contracts under section 8 for the purpose
of preventing displacement, or ameliorating the effects of
displacement.
‘‘(6) DEFINITION.—For purposes of this subsection, the term
‘project-based assistance’ means assistance under any of the
following programs:
‘‘(A) The new construction or substantial rehabilitation
program under section 8(b)(2) (as in effect before October
1, 1983).
‘‘(B) The property disposition program under section
8(b) (as in effect before the effective date under section
503(a) of the Quality Housing and Work Responsibility
Act of 1998).
‘‘(C) The loan management set-aside program under
subsections (b) and (v) of section 8.
‘‘(D) The project-based certificate program under sec-
tion 8(d)(2).
H. R. 4194—87
‘‘(E) The moderate rehabilitation program under sec-
tion 8(e)(2) (as in effect before October 1, 1991).
‘‘(F) The low-income housing preservation program
under Low-Income Housing Preservation and Resident
Homeownership Act of 1990 or the provisions of the Emer-
gency Low Income Housing Preservation Act of 1987 (as
in effect before November 28, 1990).
‘‘(G) Section 8 (as in effect before the effective date
under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998), 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.
‘‘(d) ESTABLISHMENT OF DIFFERENT STANDARDS.—Notwithstand-
ing subsection (a)(2) or (b)(1), if approved by the Secretary, a
public housing agency may for good cause establish and implement,
in accordance with the public housing agency plan, an admission
standard other than the standard under such subsection.’’.
(b) EFFECTIVE DATE.—This section shall take effect on, and
the amendments under this section are made on, and shall apply
beginning upon, the date of the enactment of this Act.
SEC. 514. REPEAL OF FEDERAL PREFERENCES.
(a) PUBLIC HOUSING.—
(1) IN GENERAL.—Subparagraph (A) of section 6(c)(4) of
the United States Housing Act of 1937 (42 U.S.C. 1437d)(c)(4))
is amended to read as follows:
‘‘(A) making dwelling units in public housing available
for occupancy, which shall provide that the public housing
agency may establish a system for making dwelling units
available that provides preference for such occupancy to
families having certain characteristics; each system of pref-
erences established pursuant to this subparagraph shall
be based upon local housing needs and priorities, as deter-
mined by the public housing agency using generally
accepted data sources, including any information obtained
pursuant to an opportunity for public comment as provided
under section 5A(f ) and under the requirements applicable
to the comprehensive housing affordability strategy for the
relevant jurisdiction;’’.
(2) CONFORMING AMENDMENTS.—
(A) PUBLIC
HOUSING
ASSISTANCE
FOR
FOSTER
CARE
CHILDREN.—Section 6(o) of the United States Housing Act
of 1937 (42 U.S.C. 1437d(o)) is amended by striking ‘‘Sub-
ject’’ and all that follows through ‘‘, in’’ and inserting ‘‘In’’.
(B) YOUTHBUILD PROGRAM.—Section 455(a)(2)(D)(iii) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12899d(a)(2)(D)(iii) is amended striking ‘‘section
6(c)(4)(A)’’ and inserting ‘‘any system of preferences estab-
lished under section 6(c)(1)’’.
(b) SECTION 8 EXISTING AND MODERATE REHABILITATION.—
(1) IN GENERAL.—Subparagraph (A) of section 8(d)(1) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A))
is amended to read as follows:
‘‘(A) the selection of tenants shall be the function of the
owner, subject to the annual contributions contract between
the Secretary and the agency, except that with respect to the
H. R. 4194—88
certificate and moderate rehabilitation programs only, for the
purpose of selecting families to be assisted, the public housing
agency may establish local preferences, consistent with the
public housing agency plan submitted under section 5A by
the public housing agency;’’.
(2) CONFORMING AMENDMENTS.—
(A) LOW-INCOME HOUSING PRESERVATION AND RESIDENT
HOMEOWNERSHIP ACT OF 1990.—The second sentence of sec-
tion 226(b)(6)(B) of the Low-Income Housing Preservation
and Resident Homeownership Act of 1990 (12 U.S.C.
4116(b)(6)(B)) is amended by striking ‘‘The requirement
for giving preferences to certain categories of eligible fami-
lies under sections 8(d)(1)(A) and 8(o)(3)’’ and inserting
‘‘Any system for preferences established under section
8(d)(1)(A) or 8(o)(6)(A)’’.
(B) HOUSING AND COMMUNITY DEVELOPMENT ACT OF
1992.—Section 655 of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 13615) is amended by striking
‘‘shall be given’’ and all that follows through the period
at the end and inserting the following: ‘‘shall be given
to disabled families according to any preferences estab-
lished under any system established under section
8(d)(1)(A) by the public housing agency.’’.
(C) MANAGEMENT
AND
DISPOSITION
OF
MULTIFAMILY
HOUSING PROJECTS.—Section 203(g)(2) of the Housing and
Community Development Amendments of 1978 (12 U.S.C.
1701z–11(g)(2)) is amended by striking ‘‘the preferences
for assistance under sections 6(c)(4)(A)(i), 8(d)(1)(A)(i), and
8(o)(3)(B)’’ and inserting ‘‘any system of preferences estab-
lished 
pursuant 
to 
section 
6(c)(4)(A), 
8(d)(1)(A), 
or
8(o)(6)(A)’’.
(D) OTHER REFERENCES.—Subparagraph (D) of section
402(d)(6) of The Balanced Budget Downpayment Act, I
(42 U.S.C. 1437d note) is hereby repealed.
(c) 
SECTION
NEW
CONSTRUCTION
AND
SUBSTANTIAL
REHABILITATION.—
(1) PERMANENT REPEAL.—Subsection (c) of section 545 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437f note) is hereby repealed.
(2) PROHIBITION.—Notwithstanding any other provision of
law (including subsection (f ) of this section), section 402(d)(4)(B)
of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a
note) shall apply to fiscal year 1999 and thereafter.
(d) RENT SUPPLEMENTS.—Subsection (k) of section 1010 of the
Housing and Urban Development Act of 1965 (12 U.S.C. 1701s(k))
is hereby repealed.
(e) SENSE OF CONGRESS REGARDING PREFERENCE FOR ASSIST-
ANCE
FOR VICTIMS
OF DOMESTIC VIOLENCE.—It is the sense of
Congress that, each public housing agency involved in the selection
of eligible families for assistance under the United States Housing
Act of 1937 (including residency in public housing and tenant-
based assistance under section 8 of such Act) should, consistent
with the public housing agency plan of the agency, consider pref-
erences for individuals who are victims of domestic violence.
(f ) TERMINATION OF TEMPORARY PROVISIONS.—Section 402 of
The Balanced Budget Downpayment Act, I, and the amendments
made by such section shall cease to be effective on the date of
H. R. 4194—89
the enactment of this Act. Notwithstanding the inclusion in this
Act of any provision extending the effectiveness of such section
or such amendments, such provision included in this Act shall
not take effect.
(g) APPLICABILITY.—This section shall take effect on, and the
amendments made by this section are made on, and shall apply
beginning upon, the date of the enactment of this Act.
SEC. 515. JOINT VENTURES AND CONSORTIA OF PUBLIC HOUSING
AGENCIES; REPEAL OF ENERGY CONSERVATION PROVI-
SIONS.
Section 13 of the United States Housing Act of 1937 (42 U.S.C.
1437k) is amended to read as follows:
‘‘SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDI-
ARIES OF PUBLIC HOUSING AGENCIES.
‘‘(a) CONSORTIA.—
‘‘(1) IN GENERAL.—Any 2 or more public housing agencies
may participate in a consortium for the purpose of administer-
ing any or all of the housing programs of those public housing
agencies in accordance with this section.
‘‘(2) EFFECT.—With respect to any consortium described
in paragraph (1)—
‘‘(A) any assistance made available under this title
to each of the public housing agencies participating in
the consortium shall be paid to the consortium; and
‘‘(B) all planning and reporting requirements imposed
upon each public housing agency participating in the
consortium with respect to the programs operated by the
consortium shall be consolidated.
‘‘(3) RESTRICTIONS.—
‘‘(A) AGREEMENT.—Each consortium described in para-
graph (1) shall be formed and operated in accordance with
a consortium agreement, and shall be subject to the require-
ments of a joint public housing agency plan, which shall
be submitted by the consortium in accordance with section
5A.
‘‘(B) MINIMUM
REQUIREMENTS.—The Secretary shall
specify minimum requirements relating to the formation
and operation of consortia and the minimum contents of
consortium agreements under this paragraph.
‘‘(b) JOINT VENTURES.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of
law, a public housing agency, in accordance with the public
housing agency plan, may—
‘‘(A) form and operate wholly owned or controlled
subsidiaries (which may be nonprofit corporations) and
other affiliates, any of which may be directed, managed,
or controlled by the same persons who constitute the board
of directors or similar governing body of the public housing
agency, or who serve as employees or staff of the public
housing agency; or
‘‘(B) enter into joint ventures, partnerships, or other
business arrangements with, or contract with, any person,
organization, entity, or governmental unit—
‘‘(i) with respect to the administration of the pro-
grams of the public housing agency, including any
program that is subject to this title; or
H. R. 4194—90
‘‘(ii) for the purpose of providing or arranging for
the provision of supportive or social services.
‘‘(2) USE OF AND TREATMENT INCOME.—Any income gen-
erated under paragraph (1)—
‘‘(A) shall be used for low-income housing or to benefit
the residents assisted by the public housing agency; and
‘‘(B) shall not result in any decrease in any amount
provided to the public housing agency under this title,
except as otherwise provided under the formulas estab-
lished under section 9(d)(2) and 9(e)(2).
‘‘(3) AUDITS.—The Comptroller General of the United
States, the Secretary, or the Inspector General of the Depart-
ment of Housing and Urban Development may conduct an
audit of any activity undertaken under paragraph (1) at any
time.’’.
SEC. 516. PUBLIC HOUSING AGENCY MORTGAGES AND SECURITY
INTERESTS.
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is amended by adding at the end the following:
‘‘SEC. 30. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.
‘‘(a) GENERAL AUTHORIZATION.—The Secretary may, upon such
terms and conditions as the Secretary may prescribe, authorize
a public housing agency to mortgage or otherwise grant a security
interest in any public housing project or other property of the
public housing agency.
‘‘(b) TERMS
AND CONDITIONS.—In making any authorization
under subsection (a), the Secretary may consider—
‘‘(1) the ability of the public housing agency to use the
proceeds of the mortgage or security interest for low-income
housing uses;
‘‘(2) the ability of the public housing agency to make pay-
ments on the mortgage or security interest; and
‘‘(3) such other criteria as the Secretary may specify.
‘‘(c) NO FEDERAL LIABILITY.—No action taken under this section
shall result in any liability to the Federal Government.’’.
SEC. 517. MENTAL HEALTH ACTION PLAN.
The Secretary of Housing and Urban Development, in consulta-
tion with the Secretary of Health and Human Services, the Sec-
retary of Labor, and appropriate State and local officials and rep-
resentatives, shall—
(1) develop an action plan and list of recommendations
for the improvement of means of providing severe mental illness
treatment to families and individuals receiving housing assist-
ance under the United States Housing Act of 1937, including
public housing residents, residents of multifamily housing
assisted with project-based assistance under section 8 of such
Act, and recipients of tenant-based assistance under such sec-
tion; and
(2) develop and disseminate a list of current practices
among public housing agencies and owners of assisted housing
that serve to benefit persons in need of mental health care.’’.