112 
date of the enactment of this Act, the Comptroller General 
shall submit a report to the Congress setting forth the results 
and conclusions of the study under this section. 
SEC. 26. HOUSING INNOVATION PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—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 new section: 
‘‘SEC. 37. HOUSING INNOVATION PROGRAM. 
‘‘(a) PURPOSE.—The purpose of this section is to es-
tablish a program under which public housing agencies are 
given the flexibility to design, and the Secretary is given 
the responsibility to evaluate, innovative approaches to pro-
viding housing assistance that— 
‘‘(1) increase housing opportunities for low-, 
very low-, and extremely low-income families, includ-
ing preserving, modernizing, rehabilitating, reconfig-
uring, or replacing public housing at risk of physical 
deterioration or obsolescence, developing additional 
affordable housing, providing supportive housing, and 
increasing the number of families receiving tenant- 
based rental assistance; 
‘‘(2) provide financial incentives and other sup-
port mechanisms to families to obtain employment 
and increase earned income, and achieve economic 
self-sufficiency, while protecting very low- and ex-
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tremely low-income families from increased rent bur-
dens; 
‘‘(3) utilize funds in a more effective or cost-effi-
cient manner, including achieving energy, adminis-
trative, and other cost savings; 
‘‘(4) leverage other Federal, State, and local 
funding sources, including the low-income housing tax 
credit program, to expand and preserve affordable 
housing opportunities, including public housing; 
‘‘(5) test alternative rent-setting policies to deter-
mine whether rent determinations can be simplified 
and administrative cost savings can be realized while 
protecting extremely low- and very low-income fami-
lies from increased rent burdens; 
‘‘(6) are subject to rigorous evaluation to test the 
effectiveness of such innovative approaches; and 
‘‘(7) are developed with the support of the local 
community and with the substantial participation of 
affected residents. 
‘‘(b) PROGRAM AUTHORITY.— 
‘‘(1) SCOPE.— 
‘‘(A) PRIORITY STRATEGY AGENCIES.—The 
Secretary shall carry out a housing innovation 
program under this section under which the Sec-
retary shall designate such number of public 
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housing agencies, which shall not exceed 60, to 
participate in the housing innovation program 
as may be necessary, in conjunction with agen-
cies approved for continued program participa-
tion pursuant to subsection (c), to demonstrate 
the effectiveness of the priority strategies identi-
fied in subsection (d)(2). 
‘‘(B) ADDITIONAL
PROGRAM
AGENCIES.— 
The Secretary shall also designate such number 
of additional agencies, which shall not exceed 20, 
to participate in the program under the terms of 
subsection (i) as may be necessary to dem-
onstrate other innovative strategies as the Sec-
retary or applicants may propose. 
‘‘(C) TRANSFER OF EXISTING MTW AGEN-
CIES.—The Secretary shall also approve and 
transfer into the program existing MTW agencies 
pursuant to subsection (c). 
‘‘(2) DURATION.—The Secretary may carry out 
the housing innovation program under this section 
only during the 10-year period beginning on the date 
of the enactment of the Section 8 Voucher Reform Act 
of 2009. 
‘‘(c) PARTICIPATION OF EXISTING MTW AGENCIES.— 
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‘‘(1) IN GENERAL.—Subject to the requirements 
of paragraph (2), all existing MTW agencies shall be 
designated to participate in the program. 
‘‘(2) CONDITIONS OF PARTICIPATION.—The Sec-
retary shall approve and transfer into the housing in-
novation program under this section each existing 
MTW agency that the Secretary determines— 
‘‘(A) is not in default under such agree-
ment; 
‘‘(B) is meeting the goals and objectives of 
its moving to work plan; and 
‘‘(C) with respect to any agency that has 
been audited by the Inspector General of the De-
partment of Housing and Urban Development 
and that the Inspector General has determined 
was not complying with program rules, is cur-
rently complying with such rules; the Secretary 
shall provide an agency that the Secretary deter-
mines is not in compliance a reasonable period 
of time to achieve such compliance. 
‘‘(3) TERMS
OF
PARTICIPATION.—Any agency 
approved for transfer into the housing innovation 
program may, at its option, be subject to the provi-
sions of subsection (d)(3), in lieu of an agreement 
currently in place with the Secretary for participa-
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tion in the Moving to Work program. Each agency 
shall, within two years after the date of the enactment 
of the Section 8 Voucher Reform Act of 2009, make 
changes to its policies that were implemented before 
such date of enactment in order to comply with the 
requirements of this section. Existing MTW agencies 
shall not be required to comply with any require-
ments under subsection (d). 
‘‘(d) ADDITIONAL AGENCIES.— 
‘‘(1) PROPOSALS; SELECTION PROCESS.—In ad-
dition to agencies participating in the program pur-
suant to subsection (c), the Secretary shall, within 12 
months after such date of enactment, select public 
housing agencies to participate in the program pursu-
ant to a competitive process that meets the following 
requirements: 
‘‘(A) Any public housing agency may be se-
lected to participate in the program, except that 
not more than 5 agencies that are near-troubled 
under the public housing assessment system and/ 
or section 8 management assessment program 
may be selected, and except that any agency that 
is a troubled agency under either such assess-
ment program or for which the Secretary has 
hired an alternative management entity for such 
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agency or has taken possession of all or any part 
of such agency’s public housing program shall 
not be eligible for participation. Any near-trou-
bled public housing agency participating in the 
program shall remain subject to the requirements 
of this Act governing tenant rent contributions, 
eligibility, and continued participation, and 
may not adopt policies described in subsection 
(e)(4) (relating to rents and requirements for 
continued occupation and participation). 
‘‘(B) The process provides, to the extent pos-
sible based on eligible agencies submitting appli-
cations and taking into account existing MTW 
agencies participating pursuant to subsection 
(c), for representation among agencies selected of 
agencies having various characteristics, includ-
ing both large and small agencies, agencies serv-
ing urban, suburban, and rural areas, and agen-
cies in various geographical regions throughout 
the United States, and which may include the se-
lection of agencies that only administer the 
voucher program under section 8(o). 
‘‘(C) Any agency submitting a proposal 
under this paragraph shall have provided notice 
to residents and the local community, not later 
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than 30 days before the first of the two public 
meetings required under subparagraph (D). 
‘‘(D) The agency submitting a proposal 
shall hold two public meetings to receive com-
ments on the agency’s proposed application, on 
the implications of changes under the proposal, 
and the possible impact on residents. 
‘‘(E) The process includes criteria for selec-
tion, as follows: 
‘‘(i) The extent to which— 
‘‘(I) if proposal is for the purpose 
of carrying out the priority strategy 
under paragraph (2)(A) of this sub-
section, the proposal is likely to achieve 
the purposes of increasing housing op-
portunities for low-, very low-, and ex-
tremely low-income families, including 
preserving, 
modernizing, 
rehabili-
tating, reconfiguring, or replacing pub-
lic housing at risk of physical deterio-
ration or obsolescence, developing addi-
tional affordable housing, providing 
supportive housing, or increasing the 
number of families receiving tenant- 
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based rental assistance, or a combina-
tion of these purposes; 
‘‘(II) if the proposal is for the 
purpose of carrying out the priority 
strategy under paragraph (2)(B) of 
this subsection, the proposal is likely to 
achieve the purposes of families obtain-
ing employment, increasing earned in-
come, or achieving economic self-suffi-
ciency, while protecting extremely low- 
and very low-income families from in-
creased rent burdens; 
‘‘(III) if the proposal is for the 
purpose of carrying out an innovative 
strategy under paragraph (2)(C) of 
this subsection, the proposal is likely to 
utilize funds in a more effective or 
cost-efficient manner, including achiev-
ing energy, administrative, or other 
cost-savings; or 
‘‘(IV) if the proposal is for the 
purpose of carrying out an innovative 
strategy 
pursuant 
to 
subsection 
(b)(1)(B), the proposal is likely to 
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achieve the goals and objectives of such 
strategy. 
‘‘(ii) The extent to which the proposal 
generally identifies statutory provisions and 
existing rules and regulations that impede 
achievement of the goals and objectives of 
the proposal and an explanation of why a 
waiver of such statutory provisions, rules, 
and regulations is necessary to achieve such 
goals and objectives. 
‘‘(iii) The extent to which the agency 
has a successful history of implementing or 
has expertise in strategies similar to those 
set forth in the agency’s proposal. 
‘‘(iv) The extent of commitment and 
funding for carrying out the proposal by 
local and State government agencies and 
nonprofit organizations, including the pro-
vision of additional funding and other serv-
ices, and the extent of support for the pro-
posal by residents, resident advisory boards, 
and members of the local community. 
‘‘(v) Such other factors as the Sec-
retary may establish, in consultation with 
participating agencies and agencies inter-
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ested in participating in the program, pro-
gram stakeholders, and any entity con-
ducting evaluations pursuant to subsection 
(f). 
‘‘(2) PRIORITY
STRATEGIES.—For purposes of 
the first sentence of paragraph (b)(1), the following 
are priority strategies: 
‘‘(A) INCREASING
HOUSING
OPPORTUNI-
TIES.—A strategy of development of increasing 
housing opportunities for low-, very low-, and 
extremely low-income families, including pre-
serving, modernizing, rehabilitating, reconfig-
uring, or replacing public housing at risk of 
physical deterioration or obsolescence, developing 
additional affordable housing, providing sup-
portive housing, or increasing the number of 
families receiving tenant-based rental assistance, 
or a combination of these purposes, and which 
may include leveraging other Federal, State, and 
local funding sources. 
‘‘(B) RENT
REFORMS
AND
FAMILY
SELF- 
SUFFICIENCY.—A strategy to implement rent re-
forms and other self-sufficiency incentives or re-
sources, which shall be designed to help families 
obtain employment, increase their earned in-
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come, or achieve economic self-sufficiency, while 
protecting extremely low- and very low-income 
families from increased rent burdens. 
‘‘(C) COST-EFFECTIVENESS.—A strategy to 
utilize funds in a more effective or cost-efficient 
manner, including achieving energy, administra-
tive, or other cost-savings. 
‘‘(3) CONTRACT
AMENDMENT.—After selecting 
agencies under this subsection, the Secretary shall 
promptly amend the applicable annual contributions 
contracts of such agencies to provide that— 
‘‘(A) subject to compliance with all program 
rules under this section, such agencies may im-
plement any policies and activities that are not 
inconsistent with this section, without specifying 
such policies and activities in such amendment 
and without negotiating or entering into any 
other agreements with the Secretary specifying 
such policies and activities; and 
‘‘(B) the policies and activities to be imple-
mented by an agency under the program in a 
given year shall be described in and subject to 
the requirements of the annual plan under sub-
section (e)(11). 
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‘‘(4) MAINTAINING PARTICIPATION RATE.—If, at 
any time after the initial selection period under para-
graph (1), the number of public housing agencies par-
ticipating in the program falls below the number se-
lected pursuant to paragraph (1), the Secretary shall 
promptly solicit applications from and select public 
housing agencies to participate in the program under 
the terms and conditions for application and selection 
provided in this section to increase the number of 
participating agencies to the number initially selected 
pursuant to paragraph (1). 
‘‘(e) PROGRAM REQUIREMENTS.— 
‘‘(1) PROGRAM FUNDS.— 
‘‘(A) IN GENERAL.—To carry out a housing 
innovation program under this section, the par-
ticipating agency may use amounts provided to 
the agency from the Operating Fund under sec-
tion 9(e), amounts provided to the agency from 
the Capital Fund under section 9(d), and 
amounts provided to the agency for voucher as-
sistance under section 8(o). Such program funds 
may be used for any activities that are author-
ized by section 8(o) or 9, or for other activities 
that are not inconsistent with this section, which 
may include, without limitation— 
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