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on which the manufactured home is located, in-
cluding monthly management and maintenance 
charges.’’; 
(B) by striking clause (ii); and 
(C) in clause (iii)— 
(i) by inserting after the period at the 
end the following: ‘‘If the amount of the 
monthly assistance payment for a family 
exceeds the monthly rent charged for the 
real property on which the manufactured 
home is located, including monthly man-
agement and maintenance charges, a pub-
lic housing agency may pay the remainder 
to the family, lender or utility company, or 
may choose to make a single payment to 
the family for the entire monthly assist-
ance amount.’’; and 
(ii) by redesignating such clause as 
clause (ii). 
SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT 
REPORTING AGENCIES. 
(a) IN GENERAL.—Section 3 of the United States 
Housing Act of 1937 (42 U.S.C. 1437a), as amended by 
the preceding provisions of this Act, is further amended 
by adding at the end the following new subsection: 
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‘‘(e) PHA REPORTING
OF RENT PAYMENTS
TO 
CREDIT REPORTING AGENCIES.— 
‘‘(1) AUTHORITY.—To the extent that a family 
receiving tenant-based housing choice vouchers 
under section 8 by a public housing agency agrees 
in writing to reporting under this subsection, the 
public housing agency may submit to consumer re-
porting agencies described in section 603(p) of the 
Fair Credit Reporting Act (15 U.S.C. 1681a) infor-
mation regarding the past rent payment history of 
the family with respect to the dwelling unit for 
which such assistance is provided. 
‘‘(2) FORMAT.—The Secretary, after consulta-
tion with consumer reporting agencies referred in 
paragraph (1), shall establish a system and format 
to be used by public housing agencies for reporting 
of information under such paragraph that provides 
such information in a format and manner that is 
similar to other credit information submitted to such 
consumer reporting agencies and is usable by such 
agencies.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act. 
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SEC. 10. PERFORMANCE ASSESSMENTS. 
Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following new paragraph: 
‘‘(21) PERFORMANCE ASSESSMENTS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Secretary 
shall, by regulation, establish standards and 
procedures for assessing the performance of 
public housing agencies in carrying out the pro-
grams for tenant-based rental assistance under 
this subsection and for homeownership assist-
ance under subsection (y). 
‘‘(B) CONTENTS.—The standards and pro-
cedures under this paragraph shall provide for 
assessment of the performance of public hous-
ing agencies in the following areas: 
‘‘(i) Quality of dwelling units obtained 
using such assistance. 
‘‘(ii) Extent of utilization of assist-
ance amounts provided to the agency and 
of authorized vouchers. 
‘‘(iii) Timeliness and accuracy of re-
porting by the agency to the Secretary. 
‘‘(iv) Effectiveness in carrying out 
policies to achieve deconcentration of pov-
erty. 
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‘‘(v) Reasonableness of rent burdens, 
consistent with public housing agency re-
sponsibilities under section 8(o)(1)(E)(iii). 
‘‘(vi) Accurate rent calculations and 
subsidy payments. 
‘‘(vii) Effectiveness in carrying out 
family self-sufficiency activities. 
‘‘(viii) Timeliness of actions related to 
landlord participation. 
‘‘(ix) Such other areas as the Sec-
retary considers appropriate. 
‘‘(C) PERIODIC ASSESSMENT.—Using the 
standards and procedures established under this 
paragraph, the Secretary shall conduct an as-
sessment of the performance of each public 
housing agency carrying out a program referred 
to in subparagraph (A) and shall submit a re-
port to the Congress regarding the results of 
each such assessment.’’. 
SEC. 11. PHA PROJECT-BASED ASSISTANCE. 
Section 8(o)(13) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(13)) is amended— 
(1) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
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‘‘(i) IN GENERAL.—Subject to clause 
(ii), not more than 25 percent of the fund-
ing available for tenant-based assistance 
under this section that is administered by 
the agency may be attached to structures 
pursuant to this paragraph. 
‘‘(ii) EXCEPTION.—An agency may at-
tach up to an additional 5 percent of the 
funding available for tenant-based assist-
ance under this section to structures pur-
suant to this paragraph for dwelling units 
that house individuals and families that 
meet the definition of homeless under sec-
tion 103 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11302).’’; 
(2) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) INCOME MIXING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), not more than the 
greater of 25 dwelling units or 25 percent 
of the dwelling units in any project may be 
assisted under a housing assistance pay-
ment contract for project-based assistance 
pursuant to this paragraph. For purposes 
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of this subparagraph, the term ‘project’ 
means a single building, multiple contig-
uous buildings, or multiple buildings on 
contiguous parcels of land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) CERTAIN
HOUSING.—The 
limitation under clause (i) shall not 
apply in the case of assistance under 
a contract for housing consisting of 
single family properties, or for dwell-
ing units that are specifically made 
available for households comprised of 
elderly families, disabled families, and 
families receiving supportive services. 
For purposes of the preceding sen-
tence, the term ‘single family prop-
erties’ means buildings with no more 
than four dwelling units. 
‘‘(II) CERTAIN AREAS.—With re-
spect to areas in which fewer than 75 
percent of families issued vouchers be-
come participants in the program, the 
public housing agency has established 
the payment standard at 110 percent 
of the fair market rent for all census 
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tracts in the area for the previous six 
months, and the public housing agen-
cy grants an automatic extension of 
90 days (or longer) to families with 
vouchers who are attempting to find 
housing, clause (i) shall be applied by 
substituting ‘50 percent’ for ‘25 per-
cent’.’’; 
(3) in the first sentence of subparagraph (F), 
by striking ‘‘10 years’’ and inserting ‘‘15 years’’; 
(4) in subparagraph (G)— 
(A) by inserting after the period at the end 
of the first sentence the following: ‘‘Such con-
tract may, at the election of the public housing 
agency and the owner of the structure, specify 
that such contract shall be extended for renewal 
terms of up to 15 years each, if the agency 
makes the determination required by this sub-
paragraph and the owner is in compliance with 
the terms of the contract.’’; and 
(B) by adding at the end the following: ‘‘A 
public housing agency may agree to enter into 
such a contract at the time it enters into the 
initial agreement for a housing assistance pay-
ment contract or at any time thereafter that is 
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before the expiration of the housing assistance 
payment contract.’’; 
(5) in subparagraph (H), by inserting before 
the period at the end of the first sentence the fol-
lowing: ‘‘, except that in the case of a contract unit 
that has been allocated low-income housing tax cred-
its and for which the rent limitation pursuant to 
such section 42 is less than the amount that would 
otherwise be permitted under this subparagraph, the 
rent for such unit may, in the sole discretion of a 
public housing agency, be established at the higher 
section 8 rent, subject only to paragraph (10)(A)’’; 
(6) in subparagraph (I)(i), by inserting before 
the semicolon the following: ‘‘, except that the con-
tract may provide that the maximum rent permitted 
for a dwelling unit shall not be less than the initial 
rent for the dwelling unit under the initial housing 
assistance payments contract covering the unit’’; 
(7) in subparagraph (J)— 
(A) by striking the fifth and sixth sen-
tences and inserting the following: ‘‘A public 
housing agency may establish and utilize proce-
dures for maintaining site-based waiting lists 
under which applicants may apply directly at, 
or otherwise designate to the public housing 
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agency, the project or projects in which they 
seek to reside, except that all applicants on the 
waiting list of an agency for assistance under 
this subsection shall be permitted to place their 
names on such separate list. All such proce-
dures shall comply with title VI of the Civil 
Rights Act of 1964, the Fair Housing Act, and 
other applicable civil rights laws. The owner or 
manager of a structure assisted under this 
paragraph shall not admit any family to a 
dwelling unit assisted under a contract pursu-
ant to this paragraph other than a family re-
ferred by the public housing agency from its 
waiting list, or a family on a site-based waiting 
list that complies with the requirements of this 
subparagraph. A public housing agency shall 
fully disclose to each applicant each option in 
the selection of a project in which to reside that 
is available to the applicant.’’; and 
(B) by inserting after the third sentence 
the following new sentence: ‘‘Any family who re-
sides in a dwelling unit proposed to be assisted 
under this paragraph, or in a unit to be re-
placed by a proposed unit to be assisted under 
this paragraph shall be given an absolute pref-
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erence for selection for placement in the pro-
posed unit, if the family is otherwise eligible for 
assistance under this subsection.’’; and 
(8) by adding at the end the following new sub-
paragraphs: 
‘‘(L) USE IN COOPERATIVE HOUSING AND 
ELEVATOR BUILDINGS.—A public housing agen-
cy may enter into a housing assistance pay-
ments contract under this paragraph with re-
spect to— 
‘‘(i) dwelling units in cooperative 
housing; 
‘‘(ii) notwithstanding subsection (c), 
dwelling units in a high-rise elevator 
project, including such a project that is oc-
cupied by families with children, without 
review and approval of the contract by the 
Secretary. 
‘‘(M) REVIEWS.— 
‘‘(i) SUBSIDY LAYERING.—A subsidy 
layering review in accordance with section 
102(d) of the Department of Housing and 
Urban Development Reform Act of 1989 
(42 U.S.C. 3545(d)) shall not be required 
for assistance under this subparagraph in 
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the case of a housing assistance payments 
contract for an existing structure, or if a 
subsidy layering review has been conducted 
by the applicable State or local agency. 
‘‘(ii) ENVIRONMENTAL
REVIEW.—A 
public housing agency shall not be required 
to undertake any environmental review be-
fore entering into a housing assistance 
payments contract under this paragraph 
for an existing structure, except to the ex-
tent such a review is otherwise required by 
law or regulation. 
‘‘(N) ADMINISTRATIVE FEE.—The admin-
istrative fee applicable to the administration of 
assistance under this paragraph shall be deter-
mined in the same manner as administrative 
fees applicable to other assistance administered 
under other provisions of this subsection. 
‘‘(O) LEASES AND TENANCY.—Assistance 
provided under this paragraph shall be subject 
to the provisions of paragraph (7), except that 
subparagraph (A) of such paragraph shall not 
apply.’’. 
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SEC. 12. RENT BURDENS. 
(a) REVIEWS.—Section 8(o)(1) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended 
by striking subparagraph (E) and inserting the following 
new subparagraph: 
‘‘(E) REVIEWS.— 
‘‘(i) RENT BURDENS.—The Secretary 
shall monitor rent burdens and submit a 
report to the Congress annually on the 
percentage of families assisted under this 
subsection, occupying dwelling units of any 
size, that pay more than 30 percent of 
their adjusted incomes for rent and such 
percentage that pay more than 40 percent 
of their adjusted incomes for rent. Using 
information regularly reported by public 
housing agencies, the Secretary shall pro-
vide public housing agencies, on an annual 
basis, a report with the information de-
scribed in the first sentence of this clause, 
and may require a public housing agency 
to modify a payment standard that results 
in a significant percentage of families as-
sisted under this subsection, occupying 
dwelling units of any size, paying more 
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than 30 percent of their adjusted incomes 
for rent. 
‘‘(ii) CONCENTRATION OF POVERTY.— 
The Secretary shall submit a report to the 
Congress annually on the degree to which 
families assisted under this subsection in 
each metropolitan area are clustered in 
lower rent, higher poverty areas and how, 
and the extent to which, greater geo-
graphic distribution of such assisted fami-
lies could be achieved, including by increas-
ing payment standards for particular com-
munities within such metropolitan areas. 
‘‘(iii) PUBLIC HOUSING AGENCY RE-
SPONSIBILITIES.—Each 
public 
housing 
agency shall make publicly available the in-
formation on rent burdens provided by the 
Secretary pursuant to clause (i), and, for 
agencies located in metropolitan areas, the 
information on concentration provided by 
the Secretary pursuant to clause (ii). If the 
percentage of families paying more than 30 
percent or 40 percent of income exceeds 
the national average for either of such cat-
egories, as reported pursuant to clause (i), 
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the public housing agency shall adjust the 
payment standard to eliminate excessive 
rent burdens within a reasonable time pe-
riod or explain its reasons for not making 
such adjustment. The Secretary may not 
deny the request of a public housing agen-
cy to set a payment standard up to 120 
percent of the fair market rent to remedy 
rent burdens in excess of the national aver-
age or undue concentration of families as-
sisted under this subsection in lower rent, 
higher poverty sections of a metropolitan 
area except on the basis that an agency 
has not demonstrated that its request 
meets these criteria. If a request of a pub-
lic housing agency has not been denied or 
approved with 45 days after the request is 
made, the request shall be considered to 
have been approved.’’. 
(b) PUBLIC
HOUSING
AGENCY
PLAN.—Section 
5A(d)(4) of the United States Housing Act of 1937 (42 
U.S.C. 1437c–1(d)(4)) is amended by inserting before the 
period at the end the following: ‘‘, including the report 
with respect to the agency furnished by the Secretary pur-
suant to section 8(o)(1)(E) concerning rent burdens and, 
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if applicable, geographic concentration of voucher holders, 
any changes in rent or other policies the public housing 
agency is making to address excessive rent burdens or con-
centration, and if the public housing agency is not adjust-
ing its payment standard, its reasons for not doing so’’. 
(c) RENT BURDENS FOR PERSONS WITH DISABIL-
ITIES.—Subparagraph (D) of section 8(o)(1) is amended 
by inserting before the period at the end the following: 
‘‘, except that a public housing agency may establish a 
payment standard of not more than 120 percent of the 
fair market rent where necessary as a reasonable accom-
modation for a person with a disability, without approval 
of the Secretary. A public housing agency may seek ap-
proval of the Secretary to use a payment standard greater 
than 120 percent of the fair market rent as a reasonable 
accommodation for a person with a disability’’. 
SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT. 
(a) IN GENERAL.—Paragraph (1) of section 8(c) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(c)(1)) is amended— 
(1) by inserting ‘‘(A)’’ after the paragraph des-
ignation; 
(2) by striking the seventh, eighth, and ninth 
sentences; and 
(3) by adding at the end the following: 
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‘‘(B)(i) The Secretary shall endeavor to define mar-
ket areas for purposes of this paragraph in a manner that 
results in fair market rentals that are adequate to cover 
typical rental costs of units suitable for occupancy by per-
sons assisted under this section in as wide a range of com-
munities as is feasible, including communities with low 
poverty rates. 
‘‘(ii) The Secretary at a minimum shall define a sepa-
rate market area for each— 
‘‘(I) metropolitan city, as such term is defined 
in section 102(a) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5302(a)), with 
more than 40,000 rental dwelling units; and 
‘‘(II) urban county or portion of an urban coun-
ty, as such term is defined in such section 102(a), 
located outside the boundaries of any metropolitan 
city specified in subclause (I). 
‘‘(iii) The Secretary shall, at the request of one or 
more public housing agencies, establish a separate market 
area for part or all of the area under the jurisdiction of 
such agencies, if— 
‘‘(I) the requested market area contains at least 
20,000 rental dwelling units; 
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‘‘(II) the areas contained in the requested mar-
ket area are geographically contiguous and share 
similar housing market characteristics; 
‘‘(III) adequate data are available to establish 
a reliable fair market rental for the requested mar-
ket area, and for the remainder of the market area 
in which it is currently located; and 
‘‘(IV) establishing the requested market area 
would raise or lower the fair market rental by 10 
percent or more at the time the requested market 
area is established. 
For purposes of subclause (III), data for an area shall 
be considered adequate if they are sufficient to establish 
from time to time a reliable benchmark fair market rental 
based primarily on data from that area, whether or not 
those data need to be supplemented with data from a larg-
er area for purposes of annual updates. 
‘‘(iv) The Secretary shall not reduce the fair market 
rental in a market area as a result of a change in the 
percentile of the distribution of market rents used to es-
tablish the fair market rental.’’. 
(b) PAYMENT STANDARD.—Subparagraph (B) of sec-
tion 8(o)(1) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)(1)(B)) is amended by inserting be-
fore the period at the end the following: ‘‘, except that 
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no public housing agency shall be required as a result of 
a reduction in the fair market rental to reduce the pay-
ment standard applied to a family continuing to reside in 
a unit for which the family was receiving assistance under 
this section at the time the fair market rental was re-
duced’’. 
SEC. 14. SCREENING OF APPLICANTS. 
Subparagraph (B) of section 8(o)(6) of the United 
States Housing Act of 1937 (1437f(o)(6)(B)) is amended 
by inserting after the period at the end of the second sen-
tence the following: ‘‘A public housing agency’s elective 
screening shall be limited to criteria that are directly re-
lated to an applicant’s ability to fulfill the obligations of 
an assisted lease and shall consider mitigating cir-
cumstances related to such applicant. Any applicant or 
participant determined to be ineligible for admission or 
continued participation to the program shall be notified 
of the basis for such determination and provided, within 
a reasonable time after the determination, an opportunity 
for an informal hearing on such determination at which 
mitigating circumstances, including remedial conduct sub-
sequent to the notice, shall be considered.’’. 
SEC. 15. ENHANCED VOUCHERS. 
(a) TREATMENT OF UNIT AND FAMILY SIZE.—Sub-
paragraph (B) of section 8(t)(1) of the United States 
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Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)) is 
amended by inserting after ‘‘eligibility event for the 
project,’’ the following: ‘‘regardless of unit and family size 
standards normally used by the administering agency (ex-
cept that tenants may be required to move to units of ap-
propriate size if available on the premises),’’. 
(b) ELIGIBILITY OF CERTAIN PROJECTS.—Notwith-
standing any other provision of law— 
(1) the property known as The Heritage Apart-
ments (FHA No. 023-44804), in Malden, Massachu-
setts, shall be considered eligible low-income housing 
for purposes of the eligibility of residents of the 
property for enhanced voucher assistance under sec-
tion 8(t) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(t)), pursuant to paragraph (2)(A) 
of section 223(f) of the Low-Income Housing Pres-
ervation and Resident Homeownership Act of 1990 
(12 U.S.C. 4113(f)(2)(A)); 
(2) such residents shall receive enhanced rental 
housing vouchers upon the prepayment of the mort-
gage loan for the property under section 236 of the 
National Housing Act (12 U.S.C. 1715z–1); and 
(3) the Secretary shall approve such prepay-
ment and subsequent transfer of the property with-
out any further condition, except that the property 
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shall be restricted for occupancy, until the original 
maturity date of the prepaid mortgage loan, only by 
families with incomes not exceeding 80 percent of 
the adjusted median income for the area in which 
the property is located, as published by the Sec-
retary. 
Amounts for the enhanced vouchers pursuant to this sub-
section shall be provided under amounts appropriated for 
tenant-based rental assistance otherwise authorized under 
section 8(t) of the United States Housing Act of 1937. 
SEC. 16. 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. 36. HOUSING INNOVATION PROGRAM. 
‘‘(a) PURPOSE.—The purpose of the program under 
this section is to provide public housing agencies and the 
Secretary the flexibility to design and evaluate innovative 
approaches to providing housing assistance that— 
‘‘(1) increase housing opportunities for low-in-
come families, including preventing homelessness, re-
habilitate or replace housing at risk of physical dete-
rioration or obsolescence, and develop additional af-
fordable housing; 
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‘‘(2) leverage other Federal, State, and local 
funding sources, including the low-income housing 
tax credit program, to expand and preserve afford-
able housing opportunities, including public housing; 
‘‘(3) provide financial incentives and other sup-
port mechanisms to families to obtain employment 
and increase earned income; 
‘‘(4) test alternative rent-setting policies to de-
termine whether rent determinations can be sim-
plified and administrative cost savings can be real-
ized while protecting extremely low- and very low-in-
come families from increased rent burdens; 
‘‘(5) are subject to rigorous evaluation to test 
the effectiveness of such innovative approaches; and 
‘‘(6) are developed with the support of the local 
community and with the substantial participation of 
affected residents. 
‘‘(b) PROGRAM AUTHORITY.— 
‘‘(1) SCOPE.—The Secretary shall carry out a 
housing innovation program under this section under 
which the Secretary may designate not more than 60 
public housing agencies to participate, at any one 
time, in the housing innovation program, in accord-
ance with subsections (c) and (d), except that, in ad-
dition to such 60 agencies, the Secretary may des-
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ignate an additional 20 agencies to participate in the 
program under the terms of subsection (h). 
‘‘(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 2007. 
‘‘(c) PARTICIPATION
OF EXISTING MTW AGEN-
CIES.— 
‘‘(1) EXISTING MTW AGENCIES.—Subject to the 
requirements of paragraph (2), all existing MTW 
agencies shall be designated to participate in the 
program. 
‘‘(2) CONDITIONS
OF
PARTICIPATION.—The 
Secretary shall approve and transfer into the hous-
ing innovation program under this section each ex-
isting MTW agency that the Secretary determines is 
not in default under such agreement and which the 
Secretary also determines is meeting the goals and 
objectives of its moving to work plan. Each such 
agency shall, within two years after the date of the 
enactment of the Section 8 Voucher Reform Act of 
2007, make changes to its policies that were imple-
mented before such date of enactment in order to 
comply with the requirements of this section. 
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‘‘(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 
18 months after such date of enactment, select pub-
lic housing agencies to participate in the program 
pursuant to a competitive process that meets the fol-
lowing 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 pro-
gram may be selected, and except that any 
agency that is a troubled agency under either 
such assessment program or for which the Sec-
retary has hired an alternative management en-
tity for such 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-troubled public housing agency par-
ticipating in the program shall remain subject 
to the requirements of this Act governing ten-
ant rent contributions, eligibility, and continued 
participation, and may not adopt policies de-
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scribed in subsection (e)(4) (relating to rents 
and requirements for continued occupation and 
participation). 
‘‘(B) The process provides, to the extent 
possible based on eligible agencies submitting 
applications and taking into account existing 
MTW agencies participating pursuant to sub-
section (c), for representation among agencies 
selected of agencies having various characteris-
tics, including both large and small agencies, 
agencies serving urban, suburban, and rural 
areas, and agencies in various geographical re-
gions throughout the United States, and which 
may include the selection 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 
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 
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the implications of changes under the proposal, 
and the possible impact on residents. 
‘‘(E) The process includes criteria for se-
lection, as follows: 
‘‘(i) The extent to which the proposal 
generally identifies existing rules and regu-
lations that impede achievement of the 
goals and objectives of the proposal and an 
explanation of why participation in the 
program is necessary to achieve such goals 
and objectives. 
‘‘(ii) The extent of commitment and 
funding for carrying out the proposal by 
local government agencies and nonprofit 
organizations, including the provision of 
additional funding and other services, and 
the extent of support for the proposal by 
residents, resident advisory boards, and 
members of the local community. 
‘‘(iii) The extent to which the agency 
has a successful history of implementing 
strategies similar to those set forth in the 
agency’s proposal. 
‘‘(iv) Whether the proposal pursues a 
priority strategy as specified in paragraph 
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(2). In the case of any proposal utilizing a 
such a priority strategy, the proposal shall 
be evaluated based upon— 
‘‘(I) the extent to which the pro-
posal is likely to achieve the objectives 
of developing additional housing dwell-
ing units affordable to extremely low- 
, very low-, and low-income families, 
and preserving, rehabilitating, or mod-
ernizing existing public housing dwell-
ing units; or 
‘‘(II) the extent to which the pro-
posal is likely to achieve the purposes 
of moving families toward economic 
self-sufficiency and increasing employ-
ment rates and wages of families 
without imposing a significant rent 
burden on the lowest income families, 
as well as such of the additional pur-
poses as may be identified in the pro-
posal, which may include expanding 
housing choices utilizing coordinators 
for the family self-sufficiency program 
under section 23, making more effec-
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tive use of program funds, and im-
proving program management. 
‘‘(v) Such other factors as the Sec-
retary may provide, in consultation with 
participating agencies, program stake-
holders, and any entity conducting evalua-
tions pursuant to subsection (f). 
‘‘(2) PRIORITY STRATEGIES.—For purposes of 
paragraph (1)(E)(iv), the following are priority 
strategies: 
‘‘(A) 
DEVELOPMENT, 
REHABILITATION, 
AND FINANCING.—A strategy of development of 
additional affordable housing dwelling units 
and/or a strategy for preservation and physical 
rehabilitation and modernization of existing 
public housing dwelling units. Such strategies 
may include innovative financing proposals, 
leveraging of non-public housing funds (includ-
ing the low-income housing tax credit program), 
and combining of funds for assistance under 
sections 8 and 9. Each such proposal shall in-
clude detailed information about the strategies 
expected to be employed, an explanation of why 
participation in the program is necessary to em-
ploy such strategies, and numerical goals re-
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garding the number of dwelling units to be de-
veloped, preserved, or rehabilitated. 
‘‘(B) RENT REFORMS.—A strategy to im-
plement rent reforms, which shall be designed 
to help families increase their earned income 
through rent and other work incentives, and 
may also test the effectiveness of achieving ad-
ministrative cost savings without increased rent 
burdens for extremely low- and very low-income 
families. 
‘‘(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 subparagraph (B), such 
agencies may implement any policies and activi-
ties that are not inconsistent with this section 
without specifying such policies and activities in 
such amendment and without negotiating or en-
tering into any other agreements with the Sec-
retary specifying such policies and activities; 
and 
‘‘(B) the activities to be implemented by 
an agency under the program in a given year 
shall be described in and subject to the require-
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ments of the annual plan under subsection 
(e)(8). Upon the enactment of this section, any 
agency which has participated in the Moving to 
Work demonstration may, at its option, be sub-
ject to the provisions of this paragraph in lieu 
of any other agreement required by the Sec-
retary for participation in the program. 
‘‘(4) MAINTAINING
PARTICIPATION
RATE.—If, 
at any time after the initial selection period under 
paragraph (1), the number of public housing agen-
cies participating in the program under this section 
is fewer than 40, 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 agencies par-
ticipating in the program to 40. 
‘‘(e) PROGRAM REQUIREMENTS.— 
‘‘(1) PROGRAM FUNDS.— 
‘‘(A) IN GENERAL.—To carry out a hous-
ing innovation program under this section, the 
participating agency may use amounts provided 
to the agency from the Operating Fund under 
section 9(e), amounts provided to the agency 
from the Capital Fund under section 9(d), and 
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amounts provided to the agency for voucher as-
sistance under section 8(o). Such program 
funds may be used for any activities that are 
authorized by section 8(o) or 9, or for other ac-
tivities that are not inconsistent with this sec-
tion, which shall include, without limitation— 
‘‘(i) providing capital and operating 
assistance, and financing for housing pre-
viously developed or operated pursuant to 
a contract between the Secretary and such 
agency; 
‘‘(ii) the acquisition, new construction, 
rehabilitation, financing, and provision of 
capital or operating assistance for low-in-
come housing (including housing other 
than public housing) and related facilities, 
which may be for terms exceeding the term 
of the program under this section in order 
to secure other financing for such housing; 
‘‘(iii) costs of site acquisition and im-
provement, providing utility services, demo-
lition, planning, and administration of ac-
tivities under this paragraph; 
‘‘(iv) housing counseling for low-in-
come families in connection with rental or 
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homeownership assistance provided under 
the program; 
‘‘(v) safety, security, law enforcement, 
and anticrime activities appropriate to pro-
tect and support families assisted under 
the program; 
‘‘(vi) tenant-based rental assistance, 
which may include the project-basing of 
such assistance; and 
‘‘(vii) appropriate and reasonable fi-
nancial assistance that is required to pre-
serve low-income housing otherwise as-
sisted under programs administered by the 
Secretary or under State or local low-in-
come housing programs. 
‘‘(B) 
COMBINING
FUNDS.—Notwith-
standing any other provision of law, a partici-
pating agency may combine and use program 
funds for any activities authorized under this 
section, except that a participating agency may 
use funds provided for assistance under section 
8(o) for activities other than those authorized 
under section 8(o) only if (i) in the calendar 
year prior to its participation in the program, 
the agency utilized not less than 95 percent of 
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such funds allocated for that calendar year for 
such authorized activities or 95 percent of its 
authorized vouchers, including vouchers ported 
in to the agency and vouchers ported out; or (ii) 
after approval to participate in the program, 
the agency achieves such utilization for a 12- 
month period. This subparagraph shall not 
apply to participating agencies approved by the 
Secretary to combine funds from sections 8 and 
9 of the Act prior to enactment of this section. 
‘‘(2) USE OF PROGRAM FUNDS.—In carrying 
out the housing innovation program under this sec-
tion, each participating agency shall continue to as-
sist— 
‘‘(A) not less than substantially the same 
number of eligible low-income families under 
the program as it assisted in the base year for 
the agency; and 
‘‘(B) a comparable mix of families by fam-
ily size, subject to adjustment to reflect changes 
in the agency’s waiting list, except that the Sec-
retary may approve exceptions to such require-
ments for up to 3 years based on modernization 
or redevelopment activities proposed in an an-
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nual plan submitted and approved in accord-
ance with paragraph (8). 
Determinations with respect to the number of fami-
lies served shall be adjusted based on any allocation 
of additional vouchers under section 8(o) and to re-
flect any change in the percentage of program funds 
that a participating agency receives compared to the 
base year. 
‘‘(3) RETAINED PROVISIONS.—Notwithstanding 
any other provision of this section, families receiving 
assistance under this section shall retain the same 
rights of judicial review of agency action as they 
would otherwise have had if the agency were not 
participating in the program, and each participating 
agency shall comply with the following provisions of 
this Act: 
‘‘(A) Subsections (a)(2)(A) and (b)(1) of 
section 16 (relating to targeting for new admis-
sions in the public housing and voucher pro-
grams). 
‘‘(B) Section 2(b) (relating to tenant rep-
resentatives on the public housing agency board 
of directors). 
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‘‘(C) Section 3(b)(2) (relating to defini-
tions for the terms ‘low-income families’ and 
‘very low-income families’). 
‘‘(D) Section 5(A)(e) (relating to the for-
mation of and consultation with a resident advi-
sory board). 
‘‘(E) Sections 6(f)(1) and 8(o)(8)(B) (re-
lating to compliance of units assisted with hous-
ing quality standards or other codes). 
‘‘(F) Sections 6(c)(3), 6(c)(4)(i), and 
8(o)(6)(B) (relating to rights of public housing 
applicants and existing procedural rights for 
applicants under section 8(o)). 
‘‘(G) Section 6(k) (relating to grievance 
procedures for public housing tenants) and 
comparable procedural rights for families as-
sisted under section 8(o). 
‘‘(H) Section 6(l) (relating to public hous-
ing lease requirements), except that for units 
assisted both with program funds and low-in-
come housing tax credits, the initial lease term 
may be less than 12 months if required to con-
form lease terms with such tax credit require-
ments. 
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‘‘(I) Section 7 (relating to designation of 
housing for elderly and disabled households), 
except that a participating agency may make 
such designations(at initial designation or upon 
renewal) for a term of up to 5 years if the 
agency includes in its annual plan under para-
graph (8) an analysis of the impact of such des-
ignations on affected households and such des-
ignation is subject to the program evaluation. 
Any participating agency with a designated 
housing plan that was approved under the mov-
ing to work demonstration may continue to op-
erate under the terms of such plan for a term 
of 5 years (with an option to renew on the same 
terms for an additional 5 years) if it includes 
in its annual plan an analysis of the impact of 
such designations on affected households and is 
subject to evaluation under subsection (f). 
‘‘(J) Subparagraphs (C) through (E) of 
section 8(o)(7) and section 8(o)(20) (relating to 
lease requirements and eviction protections for 
families assisted with tenant-based assistance). 
‘‘(K) Subject to paragraph (1)(B) of this 
subsection, section 8(o)(13)(B) (relating to a 
percentage limitation on project-based assist-
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ance), except that for purposes of this subpara-
graph such section shall be applied by sub-
stituting ‘50 percent’ for ‘20 percent’. 
‘‘(L) Section 8(o)(13)(E) (relating to resi-
dent choice for tenants of units with project- 
based vouchers), except with respect to— 
‘‘(i) in the case of agencies partici-
pating in the moving to work demonstra-
tion, any housing assistance payment con-
tract entered into within 2 years after the 
enactment of this section; 
‘‘(ii) project-based vouchers that re-
place public housing units; 
‘‘(iii) not more than 10 percent of the 
vouchers available to the participating 
agency upon entering the housing innova-
tion program under this section; and 
‘‘(iv) any project-based voucher pro-
gram that is subject to evaluation under 
subsection (f). 
‘‘(M) Section 8(r) (relating to portability 
of voucher assistance), except that a partici-
pating agency may receive funding for port-
ability obligations under section 8(dd) in the 
same manner as other public housing agencies. 
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‘‘(N) Sections 8(ee) and 6(u) (relating to 
records, certification and confidentiality regard-
ing domestic violence). 
‘‘(O) Subsections (a) and (b) of section 12 
(relating to payment of prevailing wages). 
‘‘(P) Section 18 (relating to demolition and 
disposition of public housing). 
‘‘(4) RENTS AND REQUIREMENTS FOR CONTIN-
UED OCCUPANCY OR PARTICIPATION.— 
‘‘(A) BEFORE
POLICY
CHANGE.—Before 
adopting any policy pursuant to participation in 
the housing innovation program under this sec-
tion that would make a material change to the 
requirements of this Act regarding tenant rents 
or contributions, or conditions of continued oc-
cupancy or participation, a participating agency 
shall complete each of the following actions: 
‘‘(i) The agency shall conduct an im-
pact analysis of the proposed policy on 
families the agency is assisting under the 
program under this section and on appli-
cants on the waiting list, including analysis 
of the incidence and severity of rent bur-
dens greater than 30 percent of adjusted 
income on households of various sizes and 
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types and in various income tiers, that 
would result, if any, without application of 
the hardship provisions. The analysis with 
respect to applicants on the waiting list 
may be limited to demographic data pro-
vided by the applicable consolidated plan, 
information provided by the Secretary, and 
other generally available information. The 
proposed policy, including provisions for 
addressing hardship cases and transition 
provisions that mitigate the impact of any 
rent increases or changes in the conditions 
of continued occupancy or participation, 
and data from this analysis shall be made 
available for public inspection for at least 
60 days in advance of the public meeting 
described in clause (ii). 
‘‘(ii) The agency shall hold a public 
meeting regarding the proposed change, in-
cluding the hardship provisions, which may 
be combined with a public meeting on the 
draft annual plan under paragraph (8) or 
the annual report under paragraph (9). 
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‘‘(iii) The board of directors or other 
similar governing body of the agency shall 
approve the change in public session. 
‘‘(iv) The agency shall obtain approval 
from the Secretary of the annual plan or 
plan amendment. The Secretary may ap-
prove a plan or amendment containing a 
material change to the requirements of this 
Act regarding tenant rents or contribu-
tions, or conditions of continued occupancy 
or participation, only if the agency agrees 
that such policy may be included as part of 
the national evaluation. 
‘‘(B) 
AFTER
POLICY
CHANGE.—After 
adopting a policy described in subparagraph 
(A), a program agency shall complete each of 
the following actions: 
‘‘(i) The agency shall provide ade-
quate notice to residents, which shall in-
clude a description of the changes in the 
public housing lease or participation agree-
ment that may be required and of the 
hardship or transition protections offered. 
‘‘(ii) In the case of any additional re-
quirements for continued occupancy or 
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participation, the agency shall execute a 
lease addendum or participation agreement 
specifying the requirements applicable to 
both the resident and the agency. A resi-
dent may bring a civil action to enforce 
commitments of the agency made through 
the lease addendum or participation agree-
ment. 
‘‘(iii) The agency shall reassess rent, 
subsidy level, and policies on program par-
ticipation no less often than every two 
years, which shall include preparing a re-
vised impact analysis, and make available 
to the public the results of such reassess-
ment and impact analysis. The require-
ment under this clause may be met by suf-
ficiently detailed interim reports, if any, by 
the national evaluating entity. 
‘‘(iv) The agency shall include in the 
annual report under paragraph (8) infor-
mation sufficient to describe any hardship 
requests, including the number and types 
of requests made, granted, and denied, the 
use of transition rules, and adverse im-
pacts resulting from changes in rent or 
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