of the United States Housing Act of 1937, and the 
program under such section 8 for project-based rental 
assistance. If such report identifies a material reduc-
tion in the net income of public housing agencies na-
tionwide or a material increase in the costs of fund-
ing the voucher program or the project-based assist-
ance program, the Secretary shall include in such re-
port recommendations for legislative changes to reduce 
or eliminate such a reduction. 
(h) EFFECTIVE DATE.—The Secretary of Housing and 
Urban Development shall issue notice or regulations to im-
plement this section and this section shall take effect after 
such issuance, except that this section may only take effect 
upon the commencement of a calendar year. 
SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR 
OVER-INCOME FAMILIES. 
Subsection (a) of section 16 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437n(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(5) LIMITATIONS
ON
TENANCY
FOR
OVER-IN-
COME FAMILIES.— 
‘‘(A) LIMITATIONS.—Except as provided in 
subparagraph (D), in the case of any family re-
siding in a dwelling unit of public housing 
whose income for the most recent two consecutive 
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years, as determined pursuant to income reviews 
conducted pursuant to section 3(a)(6), has ex-
ceeded the applicable income limitation under 
subparagraph (C), the public housing agency 
shall— 
‘‘(i) notwithstanding any other provi-
sion of this Act, charge such family as 
monthly rent for the unit occupied by such 
family an amount equal to the greater of— 
‘‘(I) the applicable fair market 
rental established under section 8(c) for 
a dwelling unit in the same market 
area of the same size; or 
‘‘(II) the amount of the monthly 
subsidy provided under this Act for the 
dwelling unit, which shall include any 
amounts from the Operating Fund and 
Capital Fund under section 9 used for 
the unit, as determined by the agency 
in accordance with regulations that the 
Secretary shall issue to carry out this 
subclause; or 
‘‘(ii) terminate the tenancy of such 
family in public housing not later than 6 
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months after the income determination de-
scribed in subparagraph (A). 
‘‘(B) NOTICE.—In the case of any family 
residing in a dwelling unit of public housing 
whose income for a year has exceeded the appli-
cable income limitation under subparagraph (C), 
upon the conclusion of such year the public hous-
ing agency shall provide written notice to such 
family of the requirements under subparagraph 
(A). 
‘‘(C) INCOME
LIMITATION.—The income 
limitation under this subparagraph shall be 120 
percent of the median income for the area, as de-
termined by the Secretary with adjustments for 
smaller and larger families, except that the Sec-
retary may establish income limitations higher 
or lower than 120 percent of such median income 
on the basis of the Secretary’s findings that such 
variations are necessary because of prevailing 
levels of construction costs, or unusually high or 
low family incomes, vacancy rates, or rental 
costs. 
‘‘(D) EXCEPTION.—Subparagraph (A) shall 
not apply to a family occupying a dwelling unit 
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in public housing pursuant to paragraph (5) of 
section 3(a) (42 U.S.C. 1437a(a)(5)). 
‘‘(E) REPORTS ON OVER-INCOME FAMILIES 
AND
WAITING
LISTS.—The Secretary shall re-
quire that each public housing agency shall— 
‘‘(i) submit a report annually, in a 
format required by the Secretary, that 
specifies— 
‘‘(I) the number of families resid-
ing, as of the end of the year for which 
the report is submitted, in public hous-
ing administered by the agency who 
had incomes exceeding the applicable 
income limitation under subparagraph 
(C); and 
‘‘(II) the number of families, as of 
the end of such year, on the waiting 
lists for admission to public housing 
projects of the agency; and 
‘‘(ii) make the information reported 
pursuant to clause (i) publicly available.’’. 
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SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE 
BASED ON ASSETS. 
Section 16 of the United States Housing Act of 1937 
(42 U.S.C. 1437n) is amended by inserting after subsection 
(d) the following new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS-
SETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to para-
graph (3) and notwithstanding any other provision of 
this Act, a dwelling unit assisted under this Act may 
not be rented and assistance under this Act may not 
be provided, either initially or at each recertification 
of family income, to any family— 
‘‘(A) 
whose 
net 
family 
assets 
exceed 
$100,000, as such amount is adjusted annually 
by applying an inflationary factor as the Sec-
retary considers appropriate; or 
‘‘(B) who has a present ownership interest 
in, a legal right to reside in, and the effective 
legal authority to sell, real property that is suit-
able for occupancy by the family as a residence, 
except that the prohibition under this subpara-
graph shall not apply to— 
‘‘(i) any property for which the family 
is receiving assistance under subsection (y) 
or (o)(12) of section 8 of this Act; 
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