121
222, family rental payments under section 225, ten-
ant or applicant protections, employee organizing
rights, or rights of employees under collective bar-
gaining agreements.
(e) OPERATING ASSISTANCE AND DEVELOPMENT IN-
COME.—
(1) CALCULATION OF OPERATING SUBSIDY.—
Subject only to the exception provided in paragraph
(3), the grant amounts received under this title by
a public housing agency used for operating fund ac-
tivities under section 203(a)(2) that are allocated to
a public housing development managed by a resident
management corporation shall not be less than per
unit monthly amount of such assistance used by the
public housing agency in the previous year, as deter-
mined on an individual development basis.
(2) CONTRACT REQUIREMENTS.—Any contract
for management of a public housing development en-
tered into by a public housing agency and a resident
management corporation shall specify the amount of
income expected to be derived from the development
itself (from sources such as rents and charges) and
the amount of income funds to be provided to the
development from the other sources of income of the
agency (such as assistance for operating activities
122
under section 203(a)(2), interest income, adminis-
trative fees, and rents).
(f) RESIDENT MANAGEMENT TECHNICAL ASSIST-
ANCE AND TRAINING.—
(1) FINANCIAL
ASSISTANCE.—To the extent
budget authority is available under this title, the
Secretary shall provide financial assistance to resi-
dent management corporations or resident councils
that obtain, by contract or otherwise, technical as-
sistance for the development of resident management
entities, including the formation of such entities, the
development of the management capability of newly
formed or existing entities, the identification of the
social support needs of residents of public housing
developments, and the securing of such support. In
addition, the Secretary may provide financial assist-
ance to resident management corporations or resi-
dent councils for activities sponsored by resident or-
ganizations for economic uplift, such as job training,
economic development, security, and other self-suffi-
ciency activities beyond those related to the manage-
ment of public housing. The Secretary may require
resident councils or resident management corpora-
tions to utilize public housing agencies or other
qualified organizations as contract administrators
123
with respect to financial assistance provided under
this paragraph.
(2) LIMITATION ON ASSISTANCE.—The finan-
cial assistance provided under this subsection with
respect to any public housing development may not
exceed $100,000.
(3) PROHIBITION.—A resident management
corporation or resident council may not, before the
award to the corporation or council of a grant
amount under this subsection, enter into any con-
tract or other agreement with any entity to provide
such entity with amounts from the grant for provid-
ing technical assistance or carrying out other activi-
ties eligible for assistance with amounts under this
subsection. Any such agreement entered into in vio-
lation of this paragraph shall be void and unenforce-
able.
(4) FUNDING.—Of any amounts made available
for financial assistance under this title, the Sec-
retary may use to carry out this subsection
$15,000,000 for fiscal year 1998.
(5) 
LIMITATION
REGARDING
ASSISTANCE
UNDER HOPE GRANT PROGRAM.—The Secretary may
not provide financial assistance under this sub-
section to any resident management corporation or
124
resident council with respect to which assistance for
the development or formation of such entity is pro-
vided under title III of the United States Housing
Act of 1937 (as in effect before the effective date of
this Act).
(6) TECHNICAL
ASSISTANCE
AND
CLEARING-
HOUSE.—The Secretary may use up to 10 percent of
the amount made available pursuant to paragraph
(4)—
(A) to provide technical assistance, directly
or by grant or contract, and
(B) to receive, collect, process, assemble,
and disseminate information,
in connection with activities under this subsection.
(g) ASSESSMENT AND REPORT BY SECRETARY.—Not
later than 3 years after the date of the enactment of this
Act, the Secretary shall—
(1) conduct an evaluation and assessment of
resident management, and particularly of the effect
of resident management on living conditions in pub-
lic housing; and
(2) submit to the Congress a report setting
forth the findings of the Secretary as a result of the
125
evaluation and assessment and including any rec-
ommendations the Secretary determines to be appro-
priate.
(h) APPLICABILITY.—Any management contract be-
tween a public housing agency and a resident management
corporation that is entered into after the date of the enact-
ment of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 shall be subject to this section
and any regulations issued to carry out this section.
Subtitle D—Homeownership
SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.
(a) IN GENERAL.—A public housing agency may
carry out a homeownership program in accordance with
this section and the local housing management plan of the
agency to make public housing dwelling units, public hous-
ing developments, and other housing projects available for
purchase by low-income families. An agency may transfer
a unit only pursuant to a homeownership program ap-
proved by the Secretary. Notwithstanding section 107, the
Secretary may approve a local housing management plan
without approving the portion of the plan regarding a
homeownership program pursuant to this section.
(b) PARTICIPATING UNITS.—A program under this
section may cover any existing public housing dwelling
units or projects, and may include other dwelling units and
126
housing owned, operated, or assisted, or otherwise ac-
quired for use under such program, by the public housing
agency.
(c) ELIGIBLE PURCHASERS.—
(1) LOW-INCOME REQUIREMENT.—Only low-in-
come families assisted by a public housing agency,
other low-income families, and entities formed to fa-
cilitate such sales by purchasing units for resale to
low-income families shall be eligible to purchase
housing under a homeownership program under this
section.
(2) OTHER REQUIREMENTS.—A public housing
agency may establish other requirements or limita-
tions for families to purchase housing under a home-
ownership program under this section, including re-
quirements or limitations regarding employment or
participation in employment counseling or training
activities, criminal activity, participation in home-
ownership counseling programs, evidence of regular
income, and other requirements. In the case of pur-
chase by an entity for resale to low-income families,
the entity shall sell the units to low-income families
within 5 years from the date of its acquisition of the
units. The entity shall use any net proceeds from the
resale and from managing the units, as determined
127
in accordance with guidelines of the Secretary, for
housing purposes, such as funding resident organiza-
tions and reserves for capital replacements.
(d) FINANCING AND ASSISTANCE.—A homeownership
program under this section may provide financing for ac-
quisition of housing by families purchasing under the pro-
gram or by the public housing agency for sale under this
program in any manner considered appropriate by the
agency (including sale to a resident management corpora-
tion).
(e) DOWNPAYMENT REQUIREMENT.—
(1) IN
GENERAL.—Each family purchasing
housing under a homeownership program under this
section shall be required to provide from its own re-
sources a downpayment in connection with any loan
for acquisition of the housing, in an amount deter-
mined by the public housing agency. Except as pro-
vided in paragraph (2), the agency shall permit the
family to use grant amounts, gifts from relatives,
contributions from private sources, and similar
amounts as downpayment amounts in such pur-
chase,
(2) DIRECT FAMILY CONTRIBUTION.—In pur-
chasing housing pursuant to this section, each fam-
ily shall contribute an amount of the downpayment,
128
from resources of the family other than grants, gifts,
contributions, or other similar amounts referred to
in paragraph (1), that is not less than 1 percent of
the purchase price.
(f) OWNERSHIP INTERESTS.—A homeownership pro-
gram under this section may provide for sale to the pur-
chasing family of any ownership interest that the public
housing agency considers appropriate under the program,
including ownership in fee simple, a condominium interest,
an interest in a limited dividend cooperative, a shared ap-
preciation interest with a public housing agency providing
financing.
(g) RESALE.—
(1) AUTHORITY
AND
LIMITATION.—A home-
ownership program under this section shall permit
the resale of a dwelling unit purchased under the
program by an eligible family, but shall provide such
limitations on resale as the agency considers appro-
priate (whether the family purchases directly from
the agency or from another entity) for the agency to
recapture—
(A) from any economic gain derived from
any such resale occurring during the 5-year pe-
riod beginning upon purchase of the dwelling
unit by the eligible family, a portion of the
129
amount of any financial assistance provided
under the program by the agency to the eligible
family; and
(B) after the expiration of such 5-year pe-
riod, only such amounts as are equivalent to the
assistance provided under this section by the
agency to the purchaser.
(2) CONSIDERATIONS.—The limitations referred
to in paragraph (1) may provide for consideration of
the aggregate amount of assistance provided under
the program to the family, the contribution to equity
provided by the purchasing eligible family, the period
of time elapsed between purchase under the home-
ownership program and resale, the reason for resale,
any improvements to the property made by the eligi-
ble family, any appreciation in the value of the prop-
erty, and any other factors that the agency considers
appropriate.
(h) INAPPLICABILITY
OF DISPOSITION REQUIRE-
MENTS.—The provisions of section 261 shall not apply to
disposition of public housing dwelling units under a home-
ownership program under this section, except that any
dwelling units sold under such a program shall be treated
as public housing dwelling units for purposes of sub-
sections (e) and (f) of section 261.
130
Subtitle 
E—Disposition, 
Demoli-
tion, and Revitalization of De-
velopments
SEC. 261. REQUIREMENTS FOR DEMOLITION AND DISPOSI-
TION OF DEVELOPMENTS.
(a) AUTHORITY AND FLEXIBILITY.—A public hous-
ing agency may demolish, dispose of, or demolish and dis-
pose of nonviable or nonmarketable public housing devel-
opments of the agency in accordance with this section.
(b) LOCAL HOUSING MANAGEMENT PLAN REQUIRE-
MENT.—A public housing agency may take any action to
demolish or dispose of a public housing development (or
a portion of a development) only if such demolition or dis-
position complies with the provisions of this section and
is in accordance with the local housing management plan
for the agency. Notwithstanding section 107, the Sec-
retary may approve a local housing management plan
without approving the portion of the plan covering demoli-
tion or disposition pursuant to this section.
(c) PURPOSE OF DEMOLITION OR DISPOSITION.—A
public housing agency may demolish or dispose of a public
housing development (or portion of a development) only
if the agency provides sufficient evidence to the Secretary
that—
131
(1) the development (or portion thereof) is se-
verely distressed or obsolete;
(2) the development (or portion thereof) is in a
location making it unsuitable for housing purposes;
(3) the development (or portion thereof) has de-
sign or construction deficiencies that make cost-ef-
fective rehabilitation infeasible;
(4) assuming that reasonable rehabilitation and
management intervention for the development has
been completed and paid for, the anticipated revenue
that would be derived from charging market-based
rents for units in the development (or portion there-
of) would not cover the anticipated operating costs
and replacement reserves of the development (or
portion) at full occupancy and the development (or
portion) would constitute a substantial burden on
the resources of the public housing agency;
(5) retention of the development (or portion
thereof) is not in the best interests of the residents
of the public housing agency because—
(A) developmental changes in the area sur-
rounding the development adversely affect the
health or safety of the residents or the feasible
operation of the development by the public
housing agency;
132
(B) demolition or disposition will allow the
acquisition, development, or rehabilitation of
other properties which will be more efficiently
or effectively operated as low-income housing;
or
(C) other factors exist that the agency de-
termines are consistent with the best interests
of the residents and the agency and not incon-
sistent with other provisions of this Act;
(6) in the case only of demolition or disposition
of a portion of a development, the demolition or dis-
position will help to ensure the remaining useful life
of the remainder of the development; or
(7) in the case only of property other than
dwelling units—
(A) the property is excess to the needs of
a development; or
(B) the demolition or disposition is inci-
dental to, or does not interfere with, continued
operation of a development.
(d) CONSULTATION.—A public housing agency may
demolish or dispose of a public housing development (or
portion of a development) only if the agency notifies and
confers regarding the demolition or disposition with—
133
(1) the residents of the development (or por-
tion); and
(2) appropriate local government officials.
(e) USE OF PROCEEDS.—Any net proceeds from the
disposition of a public housing development (or portion of
a development) shall be used for—
(1) housing assistance for low-income families
that is consistent with the low-income housing needs
of the community, through acquisition, development,
or rehabilitation of, or homeownership programs for,
other low-income housing or the provision of choice-
based assistance under title III for such families;
(2) supportive services relating to job training
or child care for residents of a development or devel-
opments; or
(3) leveraging amounts for securing commercial
enterprises, on-site in public housing developments
of the public housing agency, appropriate to serve
the needs of the residents.
(f) RELOCATION.—A public housing agency that de-
molishes or disposes of a public housing development (or
portion of a development thereof) shall ensure that—
(1) each family that is a resident of the devel-
opment (or portion) that is demolished or disposed
134
of is relocated to other safe, clean, healthy, and af-
fordable housing, which is, to the maximum extent
practicable, housing of the family’s choice or is pro-
vided with choice-based assistance under title III;
(2) the public housing agency does not take any
action to dispose of any unit until any resident to
be displaced is relocated in accordance with para-
graph (1); and
(3) each resident family to be displaced is paid
relocation expenses, and the rent to be paid initially
by the resident following relocation does not exceed
the amount permitted under section 225(a).
(g) RIGHT OF FIRST REFUSAL FOR RESIDENT ORGA-
NIZATIONS
AND
RESIDENT
MANAGEMENT
CORPORA-
TIONS.—
(1) IN
GENERAL.—A public housing agency
may not dispose of a public housing development (or
portion of a development) unless the agency has, be-
fore such disposition, offered to sell the property, as
provided in this subsection, to each resident organi-
zation and resident management corporation operat-
ing at the development for continued use as low-in-
come housing, and no such organization or corpora-
tion purchases the property pursuant to such offer.
A resident organization may act, for purposes of this
135
subsection, through an entity formed to facilitate
homeownership under subtitle D.
(2) TIMING.—Disposition of a development (or
portion thereof) under this section may not take
place—
(A) before the expiration of the period dur-
ing which any such organization or corporation
may notify the agency of interest in purchasing
the property, which shall be the 30-day period
beginning on the date that the agency first pro-
vides notice of the proposed disposition of the
property to such resident organizations and
resident management corporations;
(B) if an organization or corporation sub-
mits notice of interest in accordance with sub-
paragraph (A), before the expiration of the pe-
riod during which such organization or corpora-
tion may obtain a commitment for financing to
purchase the property, which shall be the 60-
day period beginning upon the submission to
the agency of the notice of interest; or
(C) if, during the period under subpara-
graph (B), an organization or corporation ob-
tains such financing commitment and makes a
bona fide offer to the agency to purchase the
136
property for a price equal to or exceeding the
applicable offer price under paragraph (3).
The agency shall sell the property pursuant to any
purchase offer described in subparagraph (C).
(3) TERMS OF OFFER.—An offer by a public
housing agency to sell a property in accordance with
this subsection shall involve a purchase price that re-
flects the market value of the property, the reason
for the sale, the impact of the sale on the surround-
ing community, and any other factors that the agen-
cy considers appropriate.
(h) INFORMATION FOR LOCAL HOUSING MANAGE-
MENT PLAN.—A public housing agency may demolish or
dispose of a public housing development (or portion there-
of) only if it includes in the applicable local housing man-
agement plan information sufficient to describe—
(1) the housing to be demolished or disposed of;
(2) the purpose of the demolition or disposition
under subsection (c) and why the demolition or dis-
position complies with the requirements under sub-
section (c);
(3) how the consultations required under sub-
section (d) will be made;
(4) how the net proceeds of the disposition will
be used in accordance with subsection (e);
137
(5) how the agency will relocate residents, if
necessary, as required under subsection (f); and
(6) that the agency has offered the property for
acquisition by resident organizations and resident
management corporations in accordance with sub-
section (g).
(i) SITE AND NEIGHBORHOOD STANDARDS EXEMP-
TION.—Notwithstanding any other provision of law, a
public housing agency may provide for development of
public housing dwelling units on the same site or in the
same neighborhood as any dwelling units demolished, pur-
suant to a plan under this section, but only if such devel-
opment provides for significantly fewer dwelling units.
(j) TREATMENT OF REPLACEMENT UNITS.—In con-
nection with any demolition or disposition of public hous-
ing under this section, a public housing agency may pro-
vide for other housing assistance for low-income families
that is consistent with the low-income housing needs of
the community, including—
(1) the provision of choice-based assistance
under title III; and
(2) the development, acquisition, or lease by the
agency of dwelling units, which dwelling units
shall—
138
(A) be eligible to receive assistance with
grant amounts provided under this title; and
(B) be made available for occupancy, oper-
ated, and managed in the manner required for
public housing, and subject to the other require-
ments applicable to public housing dwelling
units.
(k) PERMISSIBLE RELOCATION WITHOUT PLAN.—If
a public housing agency determines that public housing
dwelling units are not clean, safe, and healthy or cannot
be maintained cost-effectively in a clean, safe, and healthy
condition, the public housing agency may relocate resi-
dents of such dwelling units before the submission of a
local housing management plan providing for demolition
or disposition of such units.
(l) CONSOLIDATION
OF OCCUPANCY WITHIN
OR
AMONG BUILDINGS.—Nothing in this section may be con-
strued to prevent a public housing agency from consolidat-
ing occupancy within or among buildings of a public hous-
ing development, or among developments, or with other
housing for the purpose of improving living conditions of,
or providing more efficient services to, residents.
(m) DE MINIMIS EXCEPTION TO DEMOLITION RE-
QUIREMENTS.—Notwithstanding any other provision of
this section, in any 5-year period a public housing agency
139
may demolish not more than the lesser of 5 dwelling units
or 5 percent of the total dwelling units owned and oper-
ated by the public housing agency, without providing for
such demolition in a local housing management plan, but
only if the space occupied by the demolished unit is used
for meeting the service or other needs of public housing
residents or the demolished unit was beyond repair.
SEC. 262. DEMOLITION, SITE REVITALIZATION, REPLACE-
MENT HOUSING, AND CHOICE-BASED ASSIST-
ANCE GRANTS FOR DEVELOPMENTS.
(a) PURPOSES.—The purpose of this section is to
provide assistance to public housing agencies for the pur-
poses of—
(1) reducing the density and improving the liv-
ing environment for public housing residents of se-
verely 
distressed 
public 
housing 
developments
through the demolition of obsolete public housing de-
velopments (or portions thereof);
(2) revitalizing sites (including remaining public
housing dwelling units) on which such public hous-
ing developments are located and contributing to the
improvement of the surrounding neighborhood; and
(3) providing housing that will avoid or de-
crease the concentration of very low-income families;
and
140
(4) providing choice-based assistance in accord-
ance with title III for the purpose of providing re-
placement housing and assisting residents to be dis-
placed by the demolition.
(b) GRANT AUTHORITY.—The Secretary may make
grants available to public housing agencies as provided in
this section.
(c) CONTRIBUTION REQUIREMENT.—The Secretary
may not make any grant under this section to any appli-
cant unless the applicant certifies to the Secretary that
the applicant will supplement the amount of assistance
provided under this section with an amount of funds from
sources other than this section equal to not less than 5
percent of the amount provided under this section, includ-
ing amounts from other Federal sources, any State or
local government sources, any private contributions, and
the value of any in-kind services or administrative costs
provided.
(d) ELIGIBLE ACTIVITIES.—Grants under this sec-
tion may be used for activities to carry out revitalization
programs for severely distressed public housing, includ-
ing—
(1) architectural and engineering work, includ-
ing the redesign, reconstruction, or redevelopment of
141
a severely distressed public housing development, in-
cluding the site on which the development is located;
(2) the demolition, sale, or lease of the site, in
whole or in part;
(3) covering the administrative costs of the ap-
plicant, which may not exceed such portion of the
assistance provided under this section as the Sec-
retary may prescribe;
(4) payment of reasonable legal fees;
(5) providing reasonable moving expenses for
residents displaced as a result of the revitalization of
the development;
(6) economic development activities that pro-
mote the economic self-sufficiency of residents under
the revitalization program;
(7) necessary management improvements;
(8) leveraging other resources, including addi-
tional housing resources, retail supportive services,
jobs, and other economic development uses on or
near the development that will benefit future resi-
dents of the site;
(9) replacement housing and housing assistance
under title III;
(10) transitional security activities; and
142
(11) necessary supportive services, except that
not more than 10 percent of the amount of any
grant may be used for activities under this para-
graph.
(e) APPLICATION AND SELECTION.—
(1) APPLICATION.—An application for a grant
under this section shall contain such information
and shall be submitted at such time and in accord-
ance with such procedures, as the Secretary shall
prescribe.
(2) SELECTION CRITERIA.—The Secretary shall
establish selection criteria for the award of grants
under this section, which shall include—
(A) the relationship of the grant to the
local housing management plan for the public
housing agency and how the grant will result in
a revitalized site that will enhance the neighbor-
hood in which the development is located;
(B) the capability and record of the appli-
cant public housing agency, or any alternative
management agency for the agency, for manag-
ing large-scale redevelopment or modernization
projects, meeting construction timetables, and
obligating amounts in a timely manner;
143
(C) the extent to which the public housing
agency could undertake such activities without
a grant under this section;
(D) the extent of involvement of residents,
State and local governments, private service
providers, financing entities, and developers, in
the development of a revitalization program for
the development; and
(E) the amount of funds and other re-
sources to be leveraged by the grant.
The Secretary shall give preference in selection to
any public housing agency that has been awarded a
planning grant under section 24(c) of the United
States Housing Act of 1937 (as in effect before the
effective date of this Act).
(f) COST LIMITS.—Subject to the provisions of this
section, the Secretary—
(1) shall establish cost limits on eligible activi-
ties under this section sufficient to provide for effec-
tive revitalization programs; and
(2) may establish other cost limits on eligible
activities under this section.
144
(g) DEMOLITION AND REPLACEMENT.—Any severely
distressed public housing demolished or disposed of pursu-
ant to a revitalization plan and any public housing pro-
duced in lieu of such severely distressed housing, shall be
subject to the provisions of section 261.
(h) ADMINISTRATION
BY OTHER ENTITIES.—The
Secretary may require a grantee under this section to
make arrangements satisfactory to the Secretary for use
of an entity other than the public housing agency to carry
out activities assisted under the revitalization plan, if the
Secretary determines that such action will help to effec-
tuate the purposes of this section.
(i) WITHDRAWAL OF FUNDING.—If a grantee under
this section does not proceed expeditiously, in the deter-
mination of the Secretary, the Secretary shall withdraw
any grant amounts under this section that have not been
obligated by the public housing agency. The Secretary
shall redistribute any withdrawn amounts to one or more
public housing agencies eligible for assistance under this
section or to one or more other entities capable of proceed-
ing expeditiously in the same locality in carrying out the
revitalization plan of the original grantee.
(j) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
145
(1) 
APPLICANT.—The 
term 
‘‘applicant’’
means—
(A) any public housing agency that is not
designated as troubled pursuant to section
533(a);
(B) any public housing agency or private
housing management agent selected, or receiver
appointed pursuant, to section 545; and
(C) any public housing agency that is des-
ignated as troubled pursuant to section 533(a)
that—
(i) is so designated principally for rea-
sons that will not affect the capacity of the
agency to carry out a revitalization pro-
gram;
(ii) is making substantial progress to-
ward eliminating the deficiencies of the
agency; or
(iii) is otherwise determined by the
Secretary to be capable of carrying out a
revitalization program.
(2) PRIVATE NONPROFIT CORPORATION.—The
term ‘‘private nonprofit organization’’ means any
private nonprofit organization (including a State or
locally chartered nonprofit organization) that—
146
(A) is incorporated under State or local
law;
(B) has no part of its net earnings inuring
to the benefit of any member, founder, contrib-
utor, or individual;
(C) complies with standards of financial
accountability acceptable to the Secretary; and
(D) has among its purposes significant ac-
tivities related to the provision of decent hous-
ing that is affordable to very low-income fami-
lies.
(3) SEVERELY
DISTRESSED
PUBLIC
HOUS-
ING.—The term ‘‘severely distressed public housing’’
means a public housing development (or building in
a development) that—
(A) requires major redesign, reconstruction
or redevelopment, or partial or total demolition,
to correct serious deficiencies in the original de-
sign (including inappropriately high population
density), deferred maintenance, physical dete-
rioration or obsolescence of major systems and
other deficiencies in the physical plant of the
development;
(B) is a significant contributing factor to
the physical decline of and disinvestment by
147
public and private entities in the surrounding
neighborhood;
(C)(i) is occupied predominantly by fami-
lies who are very low-income families with chil-
dren, are unemployed, and dependent on var-
ious forms of public assistance; and
(ii) has high rates of vandalism and crimi-
nal activity (including drug-related criminal ac-
tivity) in comparison to other housing in the
area;
(D) cannot be revitalized through assist-
ance under other programs, such as the public
housing block grant program under this title, or
the programs under sections 9 and 14 of the
United States Housing Act of 1937 (as in effect
before the effective date of this Act), because of
cost constraints and inadequacy of available
amounts; and
(E) in the case of individual buildings, is,
in the Secretary’s determination, sufficiently
separable from the remainder of the develop-
ment of which the building is part to make use
of the building feasible for purposes of this sec-
tion.
148
(4) SUPPORTIVE
SERVICES.—The term ‘‘sup-
portive services’’ includes all activities that will pro-
mote upward mobility, self-sufficiency, and improved
quality of life for the residents of the public housing
development involved, including literacy training, job
training, day care, and economic development activi-
ties.
(k) ANNUAL REPORT.—The Secretary shall submit
to the Congress an annual report setting forth—
(1) the number, type, and cost of public hous-
ing units revitalized pursuant to this section;
(2) the status of developments identified as se-
verely distressed public housing;
(3) the amount and type of financial assistance
provided under and in conjunction with this section;
and
(4) the recommendations of the Secretary for
statutory and regulatory improvements to the pro-
gram established by this section.
(l) FUNDING.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for grants
under this section $500,000,000 for each of fiscal
years 1998, 1999, and 2000.
149
(2) TECHNICAL ASSISTANCE.—Of the amount
appropriated pursuant to paragraph (1) for any fis-
cal year, the Secretary may use not more than 0.50
percent for technical assistance. Such assistance
may be provided directly or indirectly by grants, con-
tracts, or cooperative agreements, and shall include
training, and the cost of necessary travel for partici-
pants in such training, by or to officials of the De-
partment of Housing and Urban Development, of
public housing agencies, and of residents.
(m) SUNSET.—No assistance may be provided under
this section after September 30, 2000.
SEC. 263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC
HOUSING.
(a) IN GENERAL.—A public housing agency may con-
vert any public housing development (or portion thereof)
owned and operated by the agency to a system of choice-
based rental housing assistance under title III, in accord-
ance with this section.
(b) ASSESSMENT
AND PLAN REQUIREMENT.—In
converting under this section to a choice-based rental
housing assistance system, the public housing agency shall
develop a conversion assessment and plan under this sub-
section, in consultation with the appropriate public offi-
cials and with significant participation by the residents of
150
the development (or portion thereof), which assessment
and plan shall—
(1) be consistent with and part of the local
housing management plan for the agency;
(2) describe the conversion and future use or
disposition of the public housing development, in-
cluding an impact analysis on the affected commu-
nity;
(3) include a cost analysis that demonstrates
whether or not the cost (both on a net present value
basis and in terms of new budget authority require-
ments) of providing choice-based rental housing as-
sistance under title III for the same families in sub-
stantially similar dwellings over the same period of
time is less expensive than continuing public housing
assistance in the public housing development pro-
posed for conversion for the remaining useful life of
the development; and
(4) identify the actions, if any, that the public
housing agency will take with regard to converting
any public housing development or developments (or
portions thereof) of the agency to a system of
choice-based rental housing assistance under title
III.
151
(c) STREAMLINED ASSESSMENT AND PLAN.—At the
discretion of the Secretary or at the request of a public
housing agency, the Secretary may waive any or all of the
requirements of subsection (b) or otherwise require a
streamlined assessment with respect to any public housing
development or class of public housing developments.
(d) IMPLEMENTATION OF CONVERSION PLAN.—
(1) IN
GENERAL.—A public housing agency
may implement a conversion plan only if the conver-
sion assessment under this section demonstrates
that the conversion—
(A) will not be more expensive than con-
tinuing to operate the public housing develop-
ment (or portion thereof) as public housing;
and
(B) will principally benefit the residents of
the public housing development (or portion
thereof) to be converted, the public housing
agency, and the community.
(2) DISAPPROVAL.—The Secretary shall dis-
approve a conversion plan only if the plan is plainly
inconsistent with the conversion assessment under
subsection (b) or there is reliable information and
data available to the Secretary that contradicts that
conversion assessment.
152
(e) OTHER REQUIREMENTS.—To the extent approved
by the Secretary, the funds used by the public housing
agency to provide choice-based rental housing assistance
under title III shall be added to the housing assistance
payment contract administered by the public housing
agency or any entity administering the contract on behalf
of the public housing agency.
(f) SAVINGS PROVISION.—This section does not af-
fect any contract or other agreement entered into under
section 22 of the United States Housing Act of 1937 (as
such section existed before the effective date of this Act).
Subtitle F—General Provisions
SEC. 271. PAYMENT OF NON-FEDERAL SHARE.
Rental or use-value of buildings or facilities paid for,
in whole or in part, from production, modernization, or
operation costs financed under this title may be used as
the non-Federal share required in connection with activi-
ties undertaken under Federal grant-in-aid programs
which provide social, educational, employment, and other
services to the residents in a project assisted under this
title.
SEC. 
272. 
AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR
BLOCK GRANTS.
There are authorized to be appropriated for grants
under this title, the following amounts:
153
(1) CAPITAL FUND.—For the allocations from
the capital fund for grants, $2,500,000,000 for each
of fiscal years 1998, 1999, 2000, 2001, and 2002;
and
(2) OPERATING
FUND.—For the allocations
from the operating fund for grants, $2,900,000,000
for each of fiscal years 1998, 1999, 2000, 2001, and
2002.
SEC. 273. FUNDING FOR OPERATION SAFE HOME.
Of any amounts made available for fiscal years 1998
and 1999 for carrying out the Community Partnerships
Against Crime Act of 1997 (as so designated pursuant to
section 625(a) of this Act), not more than $10,000,000
shall be available in each such fiscal year, for use under
the Operation Safe Home program administered by the
Office of the Inspector General of the Department of
Housing and Urban Development, for law enforcement ef-
forts to combat violent crime on or near the premises of
public and federally assisted housing and to provide assist-
ance (including housing assistance under title III) for relo-
cating witnesses of crimes pursuant to requests from law
enforcement or prosecuting agencies.
154
SEC. 274. FUNDING FOR RELOCATION OF VICTIMS OF DO-
MESTIC VIOLENCE.
Of any amounts made available for fiscal years 1998,
1999, 2000, 2001, and 2002 for choice-based housing as-
sistance under title III of this Act, not more than
$700,000 shall be available in each such fiscal year for
relocating residents of public housing (including providing
assistance for costs of relocation and housing assistance
under title III of this Act) who are residing in public hous-
ing, who have been subject to domestic violence, and for
whom provision of assistance is likely to reduce or elimi-
nate the threat of subsequent violence to the members of
the family. The Secretary shall establish procedures for
eligibility and administration of assistance under this sec-
tion.
TITLE III—CHOICE-BASED RENT-
AL 
HOUSING 
AND 
HOME-
OWNERSHIP ASSISTANCE FOR
LOW-INCOME FAMILIES
Subtitle A—Allocation
SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE
AMOUNTS.
To the extent that amounts to carry out this title are
made available, the Secretary may enter into contracts
with public housing agencies for each fiscal year to provide
housing assistance under this title.
155
SEC. 302. CONTRACTS WITH PHA’S.
(a) CONDITION OF ASSISTANCE.—The Secretary may
provide amounts under this title to a public housing agen-
cy for a fiscal year only if the Secretary has entered into
a contract under this section with the public housing agen-
cy, under which the Secretary shall provide such agency
with amounts (in the amount of the allocation for the
agency determined pursuant to section 304) for housing
assistance under this title for low-income families.
(b) USE
FOR HOUSING ASSISTANCE.—A contract
under this section shall require a public housing agency
to use amounts provided under this title to provide hous-
ing assistance in any manner authorized under this title.
(c) ANNUAL OBLIGATION OF AUTHORITY.—A con-
tract under this title shall provide amounts for housing
assistance for 1 fiscal year covered by the contract.
(d) ENFORCEMENT OF HOUSING QUALITY REQUIRE-
MENTS.—Each contract under this section shall require
the public housing agency administering assistance pro-
vided under the contract—
(1) to ensure compliance, under each housing
assistance payments contract entered into pursuant
to the contract under this section, with the provi-
sions of the housing assistance payments contract
included pursuant to section 351(c)(4); and
156
(2) to establish procedures for assisted families
to notify the agency of any noncompliance with such
provisions.
SEC. 
303. 
ELIGIBILITY 
OF 
PHA’S 
FOR 
ASSISTANCE
AMOUNTS.
The Secretary may provide amounts available for
housing assistance under this title pursuant to the formula
established under section 304(a) to a public housing agen-
cy only if—
(1) the agency has submitted a local housing
management plan to the Secretary for such fiscal
year and applied to the Secretary for such assist-
ance;
(2) the plan has been determined to comply
with the requirements under section 106 and the
Secretary has not notified the agency that the plan
fails to comply with such requirements;
(3) no member of the board of directors or
other governing body of the agency, or the executive
director, has been convicted of a felony; and
(4) the agency has not been disqualified for as-
sistance pursuant to title V.
SEC. 304. ALLOCATION OF AMOUNTS.
(a) FORMULA ALLOCATION.—
157
(1) IN GENERAL.—When amounts for assist-
ance under this title are first made available for res-
ervation, after reserving amounts in accordance with
subsections (b)(3) and (c), the Secretary shall allo-
cate such amounts, only among public housing agen-
cies meeting the requirements under this title to re-
ceive such assistance, on the basis of a formula that
is established in accordance with paragraph (2) and
based upon appropriate criteria to reflect the needs
of different States, areas, and communities, using
the most recent data available from the Bureau of
the Census of the Department of Commerce and the
comprehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National Af-
fordable Housing Act (or any consolidated plan in-
corporating such strategy) for the applicable juris-
diction. The Secretary may establish a minimum al-
location amount, in which case only the public hous-
ing agencies that, pursuant to the formula, are pro-
vided an amount equal to or greater than the mini-
mum allocation amount, shall receive an allocation.
(2) REGULATIONS.—The formula under this
subsection shall be established by regulation issued
by the Secretary. Notwithstanding sections 563(a)
158
and 565(a) of title 5, United States Code, any pro-
posed regulation containing such formula shall be is-
sued pursuant to a negotiated rulemaking procedure
under subchapter ll of chapter 5 of such title and
the Secretary shall establish a negotiated rulemaking
committee for development of any such proposed
regulations.
(b) ALLOCATION CONSIDERATIONS.—
(1) LIMITATION
ON
REALLOCATION
FOR
AN-
OTHER STATE.—Any amounts allocated for a State
or areas or communities within a State that are not
likely to be used within the fiscal year for which the
amounts are provided shall not be reallocated for use
in another State, unless the Secretary determines
that other areas or communities within the same
State (that are eligible for amounts under this title)
cannot use the amounts within the same fiscal year.
(2) EFFECT OF RECEIPT OF TENANT-BASED AS-
SISTANCE FOR DISABLED FAMILIES.—The Secretary
may not consider the receipt by a public housing
agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing
Act, or the amount received, in approving amounts
under this title for the agency or in determining the
159
amount of such assistance to be provided to the
agency.
(3) EXEMPTION
FROM
FORMULA
ALLOCA-
TION.—The formula allocation requirements of sub-
section (a) shall not apply to any assistance under
this title that is approved in appropriation Acts for
uses that the Secretary determines are incapable of
geographic allocation, including amendments of ex-
isting housing assistance payments contracts, re-
newal of such contracts, assistance to families that
would otherwise lose assistance due to the decision
of the project owner to prepay the project mortgage
or not to renew the housing assistance payments
contract, assistance to prevent displacement from
public or assisted housing or to provide replacement
housing in connection with the demolition or disposi-
tion of public housing, assistance for relocation from
public housing, assistance in connection with protec-
tion of crime witnesses, assistance for conversion
from leased housing contracts under section 23 of
the United States Housing Act of 1937 (as in effect
before the enactment of the Housing and Commu-
nity Development Act of 1974), and assistance in
support of the property disposition and portfolio
management functions of the Secretary.
160
(c) RECAPTURE OF AMOUNTS.—
(1) AUTHORITY.—In each fiscal year, from any
budget authority made available for assistance under
this title or section 8 of the United States Housing
Act of 1937 (as in effect before the effective date of
this Act) that is obligated to a public housing agency
but remains unobligated by the agency upon the ex-
piration of the 8-month period beginning upon the
initial availability of such amounts for obligation by
the agency, the Secretary may deobligate an amount,
as determined by the Secretary, not exceeding 50
percent of such unobligated amount.
(2) USE.—The Secretary may reallocate and
transfer any amounts deobligated under paragraph
(1) only to public housing agencies in areas that the
Secretary determines have received less funding than
other areas, based on the relative needs of all areas.
SEC. 305. ADMINISTRATIVE FEES.
(a) FEE
FOR ONGOING COSTS
OF ADMINISTRA-
TION.—
(1) IN GENERAL.—The Secretary shall establish
fees for the costs of administering the choice-based
housing assistance program under this title.
(2) FISCAL YEAR 1998.—
161
(A) CALCULATION.—For fiscal year 1998,
the fee for each month for which a dwelling
unit is covered by a contract for assistance
under this title shall be—
(i) in the case of a public housing
agency that, on an annual basis, is admin-
istering a program for not more than 600
dwelling units, 7.65 percent of the base
amount; and
(ii) in the case of an agency that, on
an annual basis, is administering a pro-
gram for more than 600 dwelling units—
(I) for the first 600 units, 7.65
percent of the base amount; and
(II) for any additional dwelling
units under the program, 7.0 percent
of the base amount.
(B) BASE AMOUNT.—For purposes of this
paragraph, the base amount shall be the higher
of—
(i) the fair market rental established
under section 8(c) of the United States
Housing Act of 1937 (as in effect imme-
diately before the effective date of this Act)
162
for fiscal year 1993 for a 2-bedroom exist-
ing rental dwelling unit in the market area
of the agency, and
(ii) the amount that is the lesser of
(I) such fair market rental for fiscal year
1994 or (II) 103.5 percent of the amount
determined under clause (i),
adjusted based on changes in wage data or
other objectively measurable data that reflect
the costs of administering the program, as de-
termined by the Secretary. The Secretary may
require that the base amount be not less than
a minimum amount and not more than a maxi-
mum amount.
(3) SUBSEQUENT FISCAL YEARS.—For subse-
quent fiscal years, the Secretary shall publish a no-
tice in the Federal Register, for each geographic
area, establishing the amount of the fee that would
apply for public housing agencies administering the
program, based on changes in wage data or other
objectively measurable data that reflect the costs of
administering the program, as determined by the
Secretary.
163
(4) INCREASE.—The Secretary may increase
the fee if necessary to reflect the higher costs of ad-
ministering small programs and programs operating
over large geographic areas.
(b) FEE FOR PRELIMINARY EXPENSES.—The Sec-
retary shall also establish reasonable fees (as determined
by the Secretary) for—
(1) the costs of preliminary expenses, in the
amount of $500, for a public housing agency, but
only in the first year that the agency administers
a choice-based housing assistance program under
this title, and only if, immediately before the effec-
tive date of this Act, the agency was not administer-
ing a tenant-based rental assistance program under
the United States Housing Act of 1937 (as in effect
immediately before such effective date), in connec-
tion with its initial increment of assistance received;
(2) the costs incurred in assisting families who
experience difficulty (as determined by the Sec-
retary) in obtaining appropriate housing under the
programs; and
(3) extraordinary costs approved by the Sec-
retary.
(c) TRANSFER OF FEES IN CASES OF CONCURRENT
GEOGRAPHICAL JURISDICTION.—In each fiscal year, if
164
any public housing agency provides tenant-based rental as-
sistance under section 8 of the United States Housing Act
of 1937 or housing assistance under this title on behalf
of a family who uses such assistance for a dwelling unit
that is located within the jurisdiction of such agency but
is also within the jurisdiction of another public housing
agency, the Secretary shall take such steps as may be nec-
essary to ensure that the public housing agency that pro-
vides the services for a family receives all or part of the
administrative fee under this section (as appropriate).
SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated for providing public housing agencies with housing
assistance under this title, $1,861,668,000 for each of fis-
cal years 1998, 1999, 2000, 2001, and 2002.
(b) ASSISTANCE FOR DISABLED FAMILIES.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated, for choice-
based housing assistance under this title to be used
in accordance with paragraph (2), $50,000,000 for
fiscal year 1998, and such sums as may be nec-
essary for each subsequent fiscal year.
165
(2) USE.—The Secretary shall provide amounts
made available under paragraph (1) to public hous-
ing agencies only for use to provide housing assist-
ance under this title for nonelderly disabled families
(including such families relocating pursuant to des-
ignation of a public housing development under sec-
tion 227 and other nonelderly disabled families who
have applied to the agency for housing assistance
under this title).
(3) ALLOCATION OF AMOUNTS.—The Secretary
shall allocate and provide amounts made available
under paragraph (1) to public housing agencies as
the Secretary determines appropriate based on the
relative levels of need among the authorities for as-
sistance for families described in paragraph (1).
SEC. 307. CONVERSION OF SECTION 8 ASSISTANCE.
(a) IN GENERAL.—Any amounts made available to
a public housing agency under a contract for annual con-
tributions for assistance under section 8 of the United
States Housing Act of 1937 (as in effect before the effec-
tive date of this Act) that have not been obligated for such
assistance by such agency before such effective date shall
be used to provide assistance under this title, except to
the extent the Secretary determines such use is inconsist-
ent with existing commitments.
166
(b) EXCEPTION.—Subsection (a) shall not apply to
any amounts made available under a contract for housing
constructed or substantially rehabilitated pursuant to sec-
tion 8(b)(2) of the United States Housing Act of 1937,
as in effect before October 1, 1983.
Subtitle B—Choice-Based Housing
Assistance for Eligible Families
SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR AS-
SISTANCE.
(a) LOW-INCOME REQUIREMENT.—Housing assist-
ance under this title may be provided only on behalf of
a family that—
(1) at the time that such assistance is initially
provided on behalf of the family, is determined by
the public housing agency to be a low-income family;
or
(2) qualifies to receive such assistance under
any other provision of Federal law.
(b) INCOME TARGETING.—Of the families initially as-
sisted under this title by a public housing agency in any
year, not less than 40 percent shall be families whose in-
comes do not exceed 30 percent of the area median in-
come, as determined by the Secretary with adjustments
for smaller and larger families. The Secretary may estab-
lish income ceiling higher or lower than 30 percent of the
167
area median income on the basis of the Secretary’s find-
ings that such variations are necessary because of unusu-
ally high or low family incomes.
(c) REVIEWS OF FAMILY INCOMES.—
(1) IN GENERAL.—Reviews of family incomes
for purposes of this title shall be subject to the pro-
visions of section 904 of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 and
shall be conducted upon the initial provision of hous-
ing assistance for the family and thereafter not less
than annually.
(2) PROCEDURES.—Each public housing agency
administering housing assistance under this title
shall establish procedures that are appropriate and
necessary to ensure that income data provided to the
agency and owners by families applying for or re-
ceiving housing assistance from the agency is com-
plete and accurate.
(d) PREFERENCES FOR ASSISTANCE.—
(1) AUTHORITY
TO
ESTABLISH.—Any public
housing agency that receives amounts under this
title may establish a system for making housing as-
sistance available on behalf of eligible families that
provides preference for such assistance to eligible
families having certain characteristics.
168
(2) CONTENT.—Each system of preferences es-
tablished pursuant to this subsection 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 ob-
tained pursuant to an opportunity for public com-
ment as provided under section 106(e) or under the
requirements applicable to comprehensive housing
affordability strategy for the relevant jurisdiction.
(e) PORTABILITY OF HOUSING ASSISTANCE.—
(1) NATIONAL PORTABILITY.—An eligible fam-
ily that is selected to receive or is receiving assist-
ance under this title may rent any eligible dwelling
unit in any area where a program is being adminis-
tered under this title. Notwithstanding the preceding
sentence, a public housing agency may require that
any family not living within the jurisdiction of the
public housing agency at the time the family applies
for assistance from the agency shall, during the 12-
month period beginning on the date of initial receipt
of housing assistance made available on behalf of the
family from such agency, lease and occupy an eligi-
ble dwelling unit located within the jurisdiction
served by the agency. The agency for the jurisdiction
169
into which the family moves shall have the respon-
sibility for administering assistance for the family.
(2) SOURCE OF FUNDING FOR A FAMILY THAT
MOVES.—For a family that has moved into the juris-
diction of a public housing agency and that, at the
time of the move, has been selected to receive, or is
receiving, assistance provided by another agency, the
agency for the jurisdiction into which the family has
moved may, in its discretion, cover the cost of assist-
ing the family under its contract with the Secretary
or through reimbursement from the other agency
under that agency’s contract.
(3) AUTHORITY TO DENY ASSISTANCE TO CER-
TAIN FAMILIES WHO MOVE.—A family may not re-
ceive housing assistance as provided under this sub-
section if the family has moved from a dwelling unit
in violation of the lease for the dwelling unit.
(4) FUNDING ALLOCATIONS.—In providing as-
sistance amounts under this title for public housing
agencies for any fiscal year, the Secretary may give
consideration to any reduction or increase in the
number of resident families under the program of an
agency in the preceding fiscal year as a result of this
subsection.
170
(f) CONFIDENTIALITY FOR VICTIMS OF DOMESTIC
VIOLENCE.—A public housing agency shall be subject to
the restrictions regarding release of information relating
to the identity and new residence of any family receiving
housing assistance who was a victim of domestic violence
that are applicable to shelters pursuant to the Family Vio-
lence Prevention and Services Act. The agency shall work
with the United States Postal Service to establish proce-
dures consistent with the confidentiality provisions in the
Violence Against Women Act of 1994.
SEC. 322. RESIDENT CONTRIBUTION.
(a) AMOUNT.—
(1) MONTHLY
RENT
CONTRIBUTION.—An as-
sisted family shall contribute on a monthly basis for
the rental of an assisted dwelling unit an amount
that the public housing agency determines is appro-
priate with respect to the family and the unit, but
which—
(A) shall not be less than the minimum
monthly rental contribution determined under
subsection (b); and
(B) shall not exceed the greatest of—
(i) 30 percent of the monthly adjusted
income of the family;
171
(ii) 10 percent of the monthly income
of the family; and
(iii) if the family is receiving pay-
ments for welfare assistance from a public
agency and a part of such payments, ad-
justed in accordance with the actual hous-
ing costs of the family, is specifically des-
ignated by such agency to meet the hous-
ing costs of the family, the portion of such
payments that is so designated.
(2) EXCESS RENTAL AMOUNT.—In any case in
which the monthly rent charged for a dwelling unit
pursuant to the housing assistance payments con-
tract exceeds the applicable payment standard (es-
tablished under section 353) for the dwelling unit,
the assisted family residing in the unit shall contrib-
ute (in addition to the amount of the monthly rent
contribution otherwise determined under paragraph
(1) for such family) such entire excess rental
amount.
(b) MINIMUM MONTHLY RENTAL CONTRIBUTION.—
(1) IN GENERAL.—The public housing agency
shall determine the amount of the minimum monthly
rental contribution of an assisted family (which rent
172
shall include any amount allowed for utilities),
which—
(A) shall be based upon factors including
the adjusted income of the family and any other
factors that the agency considers appropriate;
(B) shall be not less than $25, nor more
than $50; and
(C) may be increased annually by the
agency, except that no such annual increase
may exceed 10 percent of the amount of the
minimum monthly contribution in effect for the
preceding year.
(2) HARDSHIP
EXCEPTION.—Notwithstanding
paragraph (1), a public housing agency may, in its
sole discretion, grant an exemption in whole or in
part from payment of the minimum monthly rental
contribution established under this paragraph to any
assisted family unable to pay such amount because
of severe financial hardships. Severe financial hard-
ships may include situations in which the family is
awaiting an eligibility determination for a Federal,
State, or local assistance program, the family would
be evicted as a result of imposition of the minimum
rent, the income of the family has decreased because
173
of changed circumstances, including loss of employ-
ment, death in the family, and other situations as
may be determined by the agency, and such other
situations, as may be determined by the agency.
(c) TREATMENT
OF CHANGES
IN RENTAL CON-
TRIBUTION.—
(1) NOTIFICATION
OF
CHANGES.—A public
housing agency shall promptly notify the owner of
an assisted dwelling unit of any change in the resi-
dent contribution by the assisted family residing in
the unit that takes effect immediately or at a later
date.
(2) COLLECTION OF RETROACTIVE CHANGES.—
In the case of any change in the rental contribution
of an assisted family that affects rental payments
previously made, the public housing agency shall col-
lect any additional amounts required to be paid by
the family under such change directly from the fam-
ily and shall refund any excess rental contribution
paid by the family directly to the family.
(d) 
PHASE-IN
OF
RENT
CONTRIBUTION
IN-
CREASES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), for any family that is receiving tenant-
174
based rental assistance under section 8 of the Unit-
ed States Housing Act of 1937 upon the initial ap-
plicability of the provisions of this title to such fam-
ily, if the monthly contribution for rental of an as-
sisted dwelling unit to be paid by the family upon
such initial applicability is greater than the amount
paid by the family under the provisions of the Unit-
ed States Housing Act of 1937 immediately before
such applicability, any such resulting increase in
rent contribution shall be—
(A) phased in equally over a period of not
less than 3 years, if such increase is 30 percent
or more of such contribution before initial ap-
plicability; and
(B) limited to not more than 10 percent
per year if such increase is more than 10 per-
cent but less than 30 percent of such contribu-
tion before initial applicability.
(2) EXCEPTION.—The minimum rent contribu-
tion requirement under subsection (b)(1) shall apply
to each family described in paragraph (1) of this
subsection, notwithstanding such paragraph.
SEC. 323. RENTAL INDICATORS.
(a) IN GENERAL.—The Secretary shall establish and
issue rental indicators under this section periodically, but
175
not less than annually, for existing rental dwelling units
that are eligible dwelling units. The Secretary shall estab-
lish and issue the rental indicators by housing market area
(as the Secretary shall establish) for various sizes and
types of dwelling units.
(b) AMOUNT.—For a market area, the rental indica-
tor established under subsection (a) for a dwelling unit
of a particular size and type in the market area shall be
a dollar amount that reflects the rental amount for a
standard quality rental unit of such size and type in the
market area that is an eligible dwelling unit.
(c) EFFECTIVE DATE.—The Secretary shall cause
the proposed rental indicators established under sub-
section (a) for each market area to be published in the
Federal Register with reasonable time for public comment,
and such rental indicators shall become effective upon the
date of publication in final form in the Federal Register.
(d) ANNUAL ADJUSTMENT.—Each rental indicator in
effect under this section shall be adjusted to be effective
on October 1 of each year to reflect changes, based on
the most recent available data trended so that the indica-
tors will be current for the year to which they apply, in
rents for existing rental dwelling units of various sizes and
types in the market area suitable for occupancy by families
assisted under this title.
176
SEC. 324. LEASE TERMS.
Rental assistance may be provided for an eligible
dwelling unit only if the assisted family and the owner of
the dwelling unit enter into a lease for the unit that—
(1) provides for a single lease term of 12
months and continued tenancy after such term
under a periodic tenancy on a month-to-month basis;
(2) contains terms and conditions specifying
that termination of tenancy during the term of a
lease shall be subject to the provisions set forth in
sections 642 and 643; and
(3) is set forth in the standard form, which is
used in the local housing market area by the owner
and applies generally to any other tenants in the
property who are not assisted families, together with
any addendum necessary to include the many terms
required under this section.
A lease may include any addenda appropriate to set forth
the provisions under this title.
SEC. 325. TERMINATION OF TENANCY.
Each housing assistance payments contract shall pro-
vide that the owner shall conduct the termination of ten-
ancy of any tenant of an assisted dwelling unit under the
contract in accordance with applicable State or local laws,
including providing any notice of termination required
under such laws.
177
SEC. 326. ELIGIBLE OWNERS.
(a) OWNERSHIP ENTITY.—Rental assistance under
this title may be provided for any eligible dwelling unit
for which the owner is any public agency, private person
or entity (including a cooperative), nonprofit organization,
agency of the Federal Government, or public housing
agency.
(b) INELIGIBLE OWNERS.—
(1) IN GENERAL.—Notwithstanding subsection
(a), a public housing agency—
(A) may not enter into a housing assist-
ance payments contract (or renew an existing
contract) covering a dwelling unit that is owned
by an owner who is debarred, suspended, or
subject to limited denial of participation under
part 24 of title 24, Code of Federal Regula-
tions;
(B) may prohibit, or authorize the termi-
nation or suspension of, payment of housing as-
sistance under a housing assistance payments
contract in effect at the time such debarment,
suspension, or limited denial of participation
takes effect.
If the public housing agency takes action under sub-
paragraph (B), the agency shall take such actions as
may be necessary to protect assisted families who
178
are affected by the action, which may include the
provision of additional assistance under this title to
such families.
(2) PROHIBITION OF SALE TO RELATED PAR-
TIES.—The Secretary shall establish guidelines to
prevent housing assistance payments for a dwelling
unit that is owned by any spouse, child, or other
party who allows an owner described in paragraph
(1) to maintain control of the unit.
SEC. 327. SELECTION OF DWELLING UNITS.
(a) FAMILY CHOICE.—The determination of the
dwelling unit in which an assisted family resides and for
which housing assistance is provided under this title shall
be made solely by the assisted family, subject to the provi-
sions of this title and any applicable law.
(b) DEED RESTRICTIONS.—Housing assistance may
not be used in any manner that abrogates any local deed
restriction that applies to any housing consisting of 1 to
4 dwelling units. Nothing in this section may be construed
to affect the provisions or applicability of the Fair Hous-
ing Act.
SEC. 328. ELIGIBLE DWELLING UNITS.
(a) IN GENERAL.—A dwelling unit shall be an eligible
dwelling unit for purposes of this title only if the public
179
housing agency to provide housing assistance for the
dwelling unit determines that the dwelling unit—
(1) is an existing dwelling unit that is not lo-
cated within a nursing home or the grounds of any
penal, reformatory, medical, mental, or similar pub-
lic or private institution; and
(2) complies—
(A) in the case of a dwelling unit located
in a jurisdiction which has in effect laws, regu-
lations, standards, or codes regarding habit-
ability of residential dwellings, with such appli-
cable laws, regulations, standards, or codes; or
(B) in the case of a dwelling unit located
in a jurisdiction which does not have in effect
laws, regulations, standards, or codes described
in subparagraph (A), with the housing quality
standards established under subsection (c).
Each public housing agency providing housing assistance
shall identify, in the local housing management plan for
the agency, whether the agency is utilizing the standard
under subparagraph (A) or (B) of paragraph (2).
(b) DETERMINATIONS.—
(1) IN
GENERAL.—A public housing agency
shall make the determinations required under sub-
section (a) pursuant to an inspection of the dwelling
180
unit conducted before any assistance payment is
made for the unit.
(2) EXPEDITIOUS INSPECTION.—Inspections of
dwelling units under this subsection shall be made
before the expiration of the 15-day period beginning
upon a request by the resident or landlord to the
public housing agency. The performance of the agen-
cy in meeting the 15-day inspection deadline shall
be taken into account in assessing the performance
of the agency.
(c) FEDERAL HOUSING QUALITY STANDARDS.—The
Secretary shall establish housing quality standards under
this subsection that ensure that assisted dwelling units are
safe, clean, and healthy. Such standards shall include re-
quirements relating to habitability, including maintenance,
health and sanitation factors, condition, and construction
of dwellings, and shall, to the greatest extent practicable,
be consistent with the standards established under section
232(b). The Secretary shall differentiate between major
and minor violations of such standards.
(d) ANNUAL INSPECTIONS.—Each public housing
agency providing housing assistance shall make an annual
inspection of each assisted dwelling unit during the term
of the housing assistance payments contracts for the unit
to determine whether the unit is maintained in accordance
181
with the requirements under subsection (a)(2). The agency
shall retain the records of the inspection for a reasonable
time and shall make the records available upon request
to the Secretary, the Inspector General for the Depart-
ment of Housing and Urban Development, and any audi-
tor conducting an audit under section 541.
(e) INSPECTION GUIDELINES.—The Secretary shall
establish procedural guidelines and performance standards
to facilitate inspections of dwelling units and conform such
inspections with practices utilized in the private housing
market. Such guidelines and standards shall take into con-
sideration variations in local laws and practices of public
housing agencies and shall provide flexibility to authorities
appropriate to facilitate efficient provision of assistance
under this title.
(f) RULE OF CONSTRUCTION.—This section may not
be construed to prevent the provision of housing assistance
in connection with supportive services for elderly or dis-
abled families.
SEC. 329. HOMEOWNERSHIP OPTION.
(a) IN GENERAL.—A public housing agency providing
housing assistance under this title may provide home-
ownership assistance to assist eligible families to purchase
a dwelling unit (including purchase under lease-purchase
homeownership plans).
182
(b) REQUIREMENTS.—A public housing agency pro-
viding homeownership assistance under this section shall,
as a condition of an eligible family receiving such assist-
ance, require the family to—
(1) demonstrate that the family has sufficient
income from employment or other sources (other
than public assistance), as determined in accordance
with requirements established by the agency; and
(2) meet any other initial or continuing require-
ments established by the public housing agency.
(c) DOWNPAYMENT REQUIREMENT.—
(1) IN
GENERAL.—A public housing agency
may establish minimum downpayment requirements,
if appropriate, in connection with loans made for the
purchase of dwelling units for which homeownership
assistance is provided under this section. If the
agency establishes a minimum downpayment re-
quirement, the agency shall permit the family to use
grant amounts, gifts from relatives, contributions
from private sources, and similar amounts as down-
payment amounts in such purchase, subject to the
requirements of paragraph (2).
(2) DIRECT FAMILY CONTRIBUTION.—In pur-
chasing housing pursuant to this section subject to
183
a downpayment requirement, each family shall con-
tribute an amount of the downpayment, from re-
sources of the family other than grants, gifts, con-
tributions, or other similar amounts referred to in
paragraph (1), that is not less than 1 percent of the
purchase price.
(d) INELIGIBILITY UNDER OTHER PROGRAMS.—A
family may not receive homeownership assistance pursu-
ant to this section during any period when assistance is
being provided for the family under other Federal home-
ownership assistance programs, as determined by the Sec-
retary, including assistance under the HOME Investment
Partnerships Act, the Homeownership and Opportunity
Through HOPE Act, title II of the Housing and Commu-
nity Development Act of 1987, and section 502 of the
Housing Act of 1949.
SEC. 330. ASSISTANCE FOR RENTAL OF MANUFACTURED
HOMES.
(a) AUTHORITY.—Nothing in this title may be con-
strued to prevent a public housing agency from providing
housing assistance under this title on behalf of a low-in-
come family for the rental of—
(1) a manufactured home that is the principal
residence of the family and the real property on
which the home is located; or
184
(2) the real property on which is located a man-
ufactured home, which is owned by the family and
is the principal residence of the family.
(b) ASSISTANCE FOR CERTAIN FAMILIES OWNING
MANUFACTURED HOMES.—
(1) AUTHORITY.—Notwithstanding section 351
or any other provision of this title, a public housing
agency that receives amounts under a contract
under section 302 may enter into a housing assist-
ance payment contract to make assistance payments
under this title to a family that owns a manufac-
tured home, but only as provided in paragraph (2).
(2) LIMITATIONS.—In the case only of a low-in-
come family that owns a manufactured home, rents
the real property on which it is located, and to
whom housing assistance under this title has been
made available for the rental of such property, the
public housing agency making such assistance avail-
able shall enter into a contract to make housing as-
sistance payments under this title directly to the
family (rather than to the owner of such real prop-
erty) if—
(A) the owner of the real property refuses
to enter into a contract to receive housing as-
sistance payments pursuant to section 351(a);
185
(B) the family was residing in such manu-
factured home on such real property at the time
such housing assistance was initially made
available on behalf of the family;
(C) the family provides such assurances to
the agency, as the Secretary may require, to en-
sure that amounts from the housing assistance
payments are used for rental of the real prop-
erty; and
(D) the rental of the real property other-
wise complies with the requirements for assist-
ance under this title.
A contract pursuant to this subsection shall be sub-
ject to the provisions of section 351 and any other
provisions applicable to housing assistance payments
contracts under this title, except that the Secretary
may provide such exceptions as the Secretary consid-
ers appropriate to facilitate the provision of assist-
ance under this subsection.
Subtitle C—Payment of Housing
Assistance on Behalf of Assisted
Families
SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.
(a) IN GENERAL.—Each public housing agency that
receives amounts under a contract under section 302 may
186
enter into housing assistance payments contracts with
owners of existing dwelling units to make housing assist-
ance payments to such owners in accordance with this
title.
(b) PHA ACTING AS OWNER.—A public housing
agency may enter into a housing assistance payments con-
tract to make housing assistance payments under this title
to itself (or any agency or instrumentality thereof) as the
owner of dwelling units (other than public housing), and
the agency shall be subject to the same requirements that
are applicable to other owners, except that the determina-
tions under section 328(a) and 354(b) shall be made by
a competent party not affiliated with the agency, and the
agency shall be responsible for any expenses of such deter-
minations.
(c) PROVISIONS.—Each housing assistance payments
contract shall—
(1) have a term of not more than 12 months;
(2) require that the assisted dwelling unit may
be rented only pursuant to a lease that complies
with the requirements of section 324;
(3) comply with the requirements of sections
325, 642, and 643 (relating to termination of ten-
ancy);
187
(4) require the owner to maintain the dwelling
unit in accordance with the applicable standards
under section 328(a)(2); and
(5) provide that the screening and selection of
eligible families for assisted dwelling units shall be
the function of the owner.
SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.
(a) UNITS HAVING GROSS RENT EXCEEDING PAY-
MENT STANDARD.—In the case of a dwelling unit bearing
a gross rent that exceeds the payment standard estab-
lished under section 353 for a dwelling unit of the applica-
ble size and located in the market area in which such as-
sisted dwelling unit is located, the amount of the monthly
assistance payment shall be the amount by which such
payment standard exceeds the amount of the resident con-
tribution determined in accordance with section 322(a)(1).
(b) SHOPPING
INCENTIVE
FOR
UNITS
HAVING
GROSS RENT NOT EXCEEDING PAYMENT STANDARD.—
In the case of an assisted family renting an eligible dwell-
ing unit bearing a gross rent that does not exceed the pay-
ment standard established under section 353 for a dwell-
ing unit of the applicable size and located in the market
area in which such assisted dwelling unit is located, the
following requirements shall apply:
188
(1) AMOUNT
OF
MONTHLY
ASSISTANCE
PAY-
MENT.—The amount of the monthly assistance pay-
ment for housing assistance under this title on be-
half of the assisted family shall be the amount by
which the gross rent for the dwelling unit exceeds
the amount of the resident contribution.
(2) ESCROW
OF
SHOPPING
INCENTIVE
SAV-
INGS.—An amount equal to 50 percent of the dif-
ference between payment standard and the gross
rent for the dwelling unit shall be placed in an inter-
est bearing escrow account on behalf of such family
on a monthly basis by the public housing agency.
Amounts in the escrow account shall be made avail-
able to the assisted family on an annual basis.
(3) DEFICIT REDUCTION.—The public housing
agency making housing assistance payments on be-
half of such assisted family in a fiscal year shall re-
serve from amounts made available to the agency for
assistance payments for such fiscal year an amount
equal to the amount described in paragraph (2). At
the end of each fiscal year, the Secretary shall re-
capture any such amounts reserved by public hous-
ing agencies and such amounts shall be covered into
the General Fund of the Treasury of the United
States.
189
For purposes of this section, in the case of a family receiv-
ing homeownership assistance under section 329, the term
‘‘gross rent’’ shall mean the homeownership costs to the
family as determined in accordance with guidelines of the
Secretary.
SEC. 353. PAYMENT STANDARDS.
(a) ESTABLISHMENT.—Each public housing agency
providing housing assistance under this title shall establish
payment standards under this section for various areas,
and sizes and types of dwelling units, for use in determin-
ing the amount of monthly housing assistance payment
to be provided on behalf of assisted families.
(b) USE
OF RENTAL INDICATORS.—The payment
standard for each size and type of housing for each market
area shall be an amount that is not less than 80 percent,
and not greater than 120 percent, of the rental indicator
established under section 323 for such size and type for
such area.
(c) REVIEW.—If the Secretary determines, at any
time, that a significant percentage of the assisted families
who are assisted by a public housing agency and are occu-
pying dwelling units of a particular size are paying more
than 30 percent of their adjusted incomes for rent, the
Secretary shall review the payment standard established
by the agency for such size dwellings. If, pursuant to the
190
review, the Secretary determines that such payment stand-
ard is not appropriate to serve the needs of the low-income
population of the jurisdiction served by the agency (taking
into consideration rental costs in the area), as identified
in the approved community improvement plan of the agen-
cy, the Secretary may require the public housing agency
to modify the payment standard.
SEC. 354. REASONABLE RENTS.
(a) ESTABLISHMENT.—The rent charged for a dwell-
ing unit for which rental assistance is provided under this
title shall be established pursuant to negotiation and
agreement between the assisted family and the owner of
the dwelling unit.
(b) REASONABLENESS.—
(1) DETERMINATION.—A public housing agency
providing rental assistance under this title for a
dwelling unit shall, before commencing assistance
payments for a unit (with respect to initial contract
rents and any rent revisions), determine whether the
rent charged for the unit exceeds the rents charged
for comparable units in the applicable private unas-
sisted market.
(2) UNREASONABLE RENTS.—If the agency de-
termines that the rent charged for a dwelling unit
exceeds such comparable rents, the agency shall—
191
(A) inform the assisted family renting the
unit that such rent exceeds the rents for com-
parable unassisted units in the market; and
(B) refuse to provide housing assistance
payments for such unit.
SEC. 355. PROHIBITION OF ASSISTANCE FOR VACANT
RENTAL UNITS.
If an assisted family vacates a dwelling unit for which
rental assistance is provided under a housing assistance
payments contract before the expiration of the term of the
lease for the unit, rental assistance pursuant to such con-
tract may not be provided for the unit after the month
during which the unit was vacated.
Subtitle D—General and
Miscellaneous Provisions
SEC. 371. DEFINITIONS.
For purposes of this title:
(1) ASSISTED DWELLING UNIT.—The term ‘‘as-
sisted dwelling unit’’ means a dwelling unit in which
an assisted family resides and for which housing as-
sistance payments are made under this title.
(2) ASSISTED
FAMILY.—The term ‘‘assisted
family’’ means an eligible family on whose behalf
housing assistance payments are made under this
192
title or who has been selected and approved for
housing assistance.
(3) CHOICE-BASED.—The term ‘‘choice-based’’
means, with respect to housing assistance, that the
assistance is not attached to a dwelling unit but can
be used for any eligible dwelling unit selected by the
eligible family.
(4) ELIGIBLE DWELLING UNIT.—The term ‘‘eli-
gible dwelling unit’’ means a dwelling unit that com-
plies with the requirements under section 328 for
consideration as an eligible dwelling unit.
(5) ELIGIBLE
FAMILY.—The term ‘‘eligible
family’’ means a family that meets the requirements
under section 321(a) for assistance under this title.
(6) HOMEOWNERSHIP ASSISTANCE.—The term
‘‘homeownership assistance’’ means housing assist-
ance provided under section 329 for the ownership
of a dwelling unit.
(7) HOUSING ASSISTANCE.—The term ‘‘housing
assistance’’ means choice-based assistance provided
under this title on behalf of low-income families for
the rental or ownership of an eligible dwelling unit.
(8) HOUSING
ASSISTANCE
PAYMENTS
CON-
TRACT.—The term ‘‘housing assistance payments
193
contract’’ means a contract under section 351 be-
tween a public housing agency (or the Secretary)
and an owner to make housing assistance payments
under this title to the owner on behalf of an assisted
family.
(9) PUBLIC
HOUSING
AGENCY.—The terms
‘‘public housing agency’’ and ‘‘agency’’ have the
meaning given such terms in section 103, except
that the terms include—
(A) a consortia of public housing agencies
that the Secretary determines has the capacity
and capability to administer a program for
housing assistance under this title in an effi-
cient manner;
(B) any other entity that, upon the effec-
tive date of this Act, was administering any
program for tenant-based rental assistance
under section 8 of the United States Housing
Act of 1937 (as in effect before the effective
date of this Act), pursuant to a contract with
the Secretary or a public housing agency; and
(C) with respect to any area in which no
public housing agency has been organized or
where the Secretary determines that a public
194
housing agency is unwilling or unable to imple-
ment this title, or is not performing effec-
tively—
(i) the Secretary or another entity
that by contract agrees to receive assist-
ance amounts under this title and enter
into housing assistance payments contracts
with owners and perform the other func-
tions of public housing agency under this
title; or
(ii) notwithstanding any provision of
State or local law, a public housing agency
for another area that contracts with the
Secretary to administer a program for
housing assistance under this title, without
regard to any otherwise applicable limita-
tions on its area of operation.
(10) OWNER.—The term ‘‘owner’’ means the
person or entity having the legal right to lease or
sublease dwelling units. Such term includes any
principals, general partners, primary shareholders,
and other similar participants in any entity owning
a multifamily housing project, as well as the entity
itself.
195
(11) RENT.—The terms ‘‘rent’’ and ‘‘rental’’
include, with respect to members of a cooperative,
the charges under the occupancy agreements be-
tween such members and the cooperative.
(12) RENTAL ASSISTANCE.—The term ‘‘rental
assistance’’ means housing assistance provided
under this title for the rental of a dwelling unit.
SEC. 372. RENTAL ASSISTANCE FRAUD RECOVERIES.
(a) 
AUTHORITY
TO
RETAIN
RECOVERED
AMOUNTS.—The Secretary shall permit public housing
agencies administering housing assistance under this title
to retain, out of amounts obtained by the authorities from
tenants that are due as a result of fraud and abuse, an
amount (determined in accordance with regulations issued
by the Secretary) equal to the greater of—
(1) 50 percent of the amount actually collected;
or
(2) the actual, reasonable, and necessary ex-
penses related to the collection, including costs of in-
vestigation, legal fees, and collection agency fees.
(b) USE.—Amounts retained by an agency shall be
made available for use in support of the affected program
or project, in accordance with regulations issued by the
Secretary. If the Secretary is the principal party initiating
196
or sustaining an action to recover amounts from families
or owners, the provisions of this section shall not apply.
(c) RECOVERY.—Amounts may be recovered under
this section—
(1) by an agency through a lawsuit (including
settlement of the lawsuit) brought by the agency or
through court-ordered restitution pursuant to a
criminal proceeding resulting from an agency’s in-
vestigation where the agency seeks prosecution of a
family or where an agency seeks prosecution of an
owner;
(2) through administrative repayment agree-
ments with a family or owner entered into as a re-
sult of an administrative grievance procedure con-
ducted by an impartial decisionmaker in accordance
with section 110; or
(3) through an agreement between the parties.
SEC. 373. STUDY REGARDING GEOGRAPHIC CONCENTRA-
TION OF ASSISTED FAMILIES.
(a) IN GENERAL.—The Secretary shall conduct a
study of the geographic areas in the State of Illinois served
by the Housing Authority of Cook County and the Chicago
Housing Authority and submit to the Congress a report
and a specific proposal, which addresses and resolves the
issues of—
197
(1) the adverse impact on local communities
due to geographic concentration of assisted house-
holds under the tenant-based housing programs
under section 8 of the United States Housing Act of
1937 (as in effect upon the enactment of this Act)
and under this title; and
(2) facilitating the deconcentration of such as-
sisted households by providing broader housing
choices to such households.
The study shall be completed, and the report shall be sub-
mitted, not later than 90 days after the date of the enact-
ment of this Act.
(b) CONCENTRATION.—For purposes of this section,
the term ‘‘concentration’’ means, with respect to any area
within a census tract, that—
(1) 15 percent or more of the households resid-
ing within such area have incomes which do not ex-
ceed the poverty level; or
(2) 15 percent or more of the total affordable
housing stock located within such area is assisted
housing.
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
198
TITLE IV—HOME RULE
FLEXIBLE GRANT OPTION
SEC. 401. PURPOSE.
The purpose of this title is to give local governments
and municipalities the flexibility to design creative ap-
proaches for providing and administering Federal housing
assistance based on the particular needs of the commu-
nities that—
(1) give incentives to low-income families with
children where the head of household is working,
seeking work, or preparing for work by participating
in job training, educational programs, or programs
that assist people to obtain employment and become
economically self-sufficient;
(2) reduce cost and achieve greater cost-effec-
tiveness in Federal housing assistance expenditures;
(3) increase housing choices for low-income
families; and
(4) reduce excessive geographic concentration of
assisted families.
SEC. 402. FLEXIBLE GRANT PROGRAM.
(a) AUTHORITY AND USE.—The Secretary shall carry
out a program under which a jurisdiction may, upon the
application of the jurisdiction and the review and approval
199
of the Secretary, receive, combine, and enter into perform-
ance-based contracts for the use of amounts of covered
housing assistance in a period consisting of not less than
1 nor more than 5 fiscal years in the manner determined
appropriate by the participating jurisdiction—
(1) to provide housing assistance and services
for low-income families in a manner that facilitates
the transition of such families work;
(2) to reduce homelessness;
(3) to increase homeownership among low-in-
come families; and
(4) for other housing purposes for low-income
families determined by the participating jurisdiction.
(b) INAPPLICABILITY
OF CATEGORICAL PROGRAM
REQUIREMENTS.—
(1) IN GENERAL.—Except as provided in para-
graph (2) and section 405, the provisions of this Act
regarding use of amounts made available under each
of the programs included as covered housing assist-
ance and the program requirements applicable to
each such program shall not apply to amounts re-
ceived by a jurisdiction pursuant to this title.
(2) APPLICABILITY OF CERTAIN LAWS.—This
title may not be construed to exempt assistance
200
under this Act from, or make inapplicable any provi-
sion of this Act or of any other law that requires
that assistance under this Act be provided in compli-
ance with—
(A) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.);
(B) the Fair Housing Act (42 U.S.C. 3601
et seq.);
(C) section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 701 et seq.);
(D) title IX of the Education Amendments
of 1972 (86 Stat. 373 et seq.);
(E) the Age Discrimination Act of 1975
(42 U.S.C. 6101 et seq.);
(F) the Americans with Disabilities Act of
1990; or
(G) the National Environmental Policy Act
of 1969 and other provisions of law that further
protection of the environment (as specified in
regulations that shall be issued by the Sec-
retary).
(c) EFFECT ON PROGRAM ALLOCATIONS FOR COV-
ERED HOUSING ASSISTANCE.—The amount of assistance
received pursuant to this title by a participating jurisdic-
tion shall not be decreased, because of participation in the
201
program under this title, from the sum of the amounts
that otherwise would be made available for or within the
participating jurisdiction under the programs included as
covered housing assistance.
SEC. 403. COVERED HOUSING ASSISTANCE.
For purposes of this title, the term ‘‘covered housing
assistance’’ means—
(1) operating assistance provided under section
9 of the United States Housing Act of 1937 (as in
effect before the effective date of this Act);
(2) modernization assistance provided under
section 14 of such Act;
(3) assistance provided under section 8 of such
Act for the certificate and voucher programs;
(4) assistance for public housing provided under
title II of this Act; and
(5) choice-based rental assistance provided
under title III of this Act.
Such term does not include any amounts obligated for as-
sistance under existing contracts for project-based assist-
ance under section 8 of the United States Housing Act
of 1937 or section 601(f) of this Act.
SEC. 404. PROGRAM REQUIREMENTS.
(a) ELIGIBLE FAMILIES.—Each family on behalf of
whom assistance is provided for rental or homeownership
202
of a dwelling unit using amounts made available pursuant
to this title shall be a low-income family. Each dwelling
unit assisted using amounts made available pursuant to
this title shall be available for occupancy only by families
that are low-income families at the time of their initial
occupancy of the unit.
(b) COMPLIANCE WITH ASSISTANCE PLAN.—A par-
ticipating jurisdiction shall provide assistance using
amounts received pursuant to this title in the manner set
forth in the plan of the jurisdiction approved by the Sec-
retary under section 406(a)(2).
(c) RENT POLICY.—A participating jurisdiction shall
ensure that the rental contributions charged to families
assisted with amounts received pursuant to this title are
reasonable and designed to encourage employment and
self-sufficiency by participating families.
(d) HOUSING QUALITY STANDARDS.—
(1) COMPLIANCE.—A participating jurisdiction
shall ensure that housing assisted with amounts re-
ceived pursuant to this title is maintained in a con-
dition that complies—
(A) in the case of housing located in a ju-
risdiction which has in effect laws, regulations,
standards, or codes regarding habitability of
203
residential dwellings, with such applicable laws,
regulations, standards, or codes; or
(B) in the case of housing located in a ju-
risdiction which does not have in effect laws,
regulations, standards, or codes described in
paragraph (1), with the housing quality stand-
ards established under paragraph (2).
(2) FEDERAL HOUSING QUALITY STANDARDS.—
The Secretary shall establish housing quality stand-
ards under this paragraph that ensure that dwelling
units assisted under this title are safe, clean, and
healthy. Such standards shall include requirements
relating to habitability, including maintenance,
health and sanitation factors, condition, and con-
struction of dwellings, and shall, to the greatest ex-
tent practicable, be consistent with the standards es-
tablished under sections 232(b) and 328(c). The
Secretary shall differentiate between major and
minor violations of such standards.
(e) NUMBER OF FAMILIES ASSISTED.—A participat-
ing jurisdiction shall ensure that, in providing assistance
with amounts received pursuant to this title in each fiscal
year, not less than substantially the same total number
of eligible low-income families are assisted as would have
204
been assisted had the amounts of covered housing assist-
ance not been combined for use under this title.
(f) CONSISTENCY WITH WELFARE PROGRAM.—A
participating jurisdiction shall ensure that assistance pro-
vided with amounts received pursuant to this title is pro-
vided in a manner that is consistent with the welfare, pub-
lic assistance, or other economic self-sufficiency programs
operating in the jurisdiction by facilitating the transition
of assisted families to work, which may include requiring
compliance with the requirements under such welfare,
public assistance, or self-sufficiency programs as a condi-
tion of receiving housing assistance with amounts provided
under this title.
(g) TREATMENT OF CURRENTLY ASSISTED FAMI-
LIES.—
(1) CONTINUATION OF ASSISTANCE.—A partici-
pating jurisdiction shall ensure that each family that
was receiving housing assistance or residing in an
assisted dwelling unit pursuant to any of the pro-
grams included as covered housing assistance imme-
diately before the jurisdiction initially provides as-
sistance pursuant to this title shall be offered assist-
ance or an assisted dwelling unit under the program
of the jurisdiction under this title.
205
(2) PHASE-IN
OF
RENT
CONTRIBUTION
IN-
CREASES.—For any family that was receiving hous-
ing assistance pursuant to any of the programs in-
cluded as covered housing assistance immediately be-
fore the jurisdiction initially provides assistance pur-
suant to this title, if the monthly contribution for
rental of a dwelling unit assisted under this title to
be paid by the family upon initial applicability of
this title is greater than the amount paid by the
family immediately before such applicability, any
such resulting increase in rent contribution shall
be—
(A) phased in equally over a period of not
less than 3 years, if such increase is 30 percent
or more of such contribution before initial ap-
plicability; and
(B) limited to not more than 10 percent
per year if such increase is more than 10 per-
cent but less than 30 percent of such contribu-
tion before initial applicability.
(h) AMOUNT OF ASSISTANCE.—In providing housing
assistance using amounts received pursuant to this title,
the amount of assistance provided by a participating juris-
diction on behalf of each assisted low-income family shall
be sufficient so that if the family used such assistance to
206
rent a dwelling unit having a rent equal to the 40th per-
centile of rents for standard quality rental units of the
same size and type in the same market area, the contribu-
tion toward rental paid by the family would be affordable
(as such term is defined by the jurisdiction) to the family.
(i) PORTABILITY.—A participating jurisdiction shall
ensure that financial assistance for housing provided with
amounts received pursuant to this title may be used by
a family moving from an assisted dwelling unit located
within the jurisdiction to obtain a dwelling unit located
outside of the jurisdiction.
(j) PREFERENCES.—In providing housing assistance
using amounts received pursuant to this section, a partici-
pating jurisdiction may establish a system for making
housing assistance available that provides preference for
assistance to families having certain characteristics. A sys-
tem of preferences established pursuant to this subsection
shall be based on local housing needs and priorities, as
determined by the jurisdiction using generally accepted
data sources.
SEC. 405. APPLICABILITY OF CERTAIN PROVISIONS.
(a) PUBLIC HOUSING DEMOLITION AND DISPOSI-
TION REQUIREMENTS.—Section 261 shall continue to
apply to public housing notwithstanding any use of the
housing under this title.
207
(b) LABOR STANDARDS.—Section 112 shall apply to
housing assisted with amounts provided pursuant to this
title, other than housing assisted solely due to occupancy
by families receiving tenant-based assistance.
SEC. 406. APPLICATION.
(a) IN GENERAL.—The Secretary shall provide for
jurisdictions to submit applications to receive and use cov-
ered housing assistance amounts as authorized in this title
for periods of not less than 1 and not more than 5 fiscal
years. An application—
(1) shall be submitted only after the jurisdiction
provides for citizen participation through a public
hearing and, if appropriate, other means;
(2) shall include a plan developed by the juris-
diction for the provision of housing assistance with
amounts received pursuant to this title that takes
into consideration comments from the public hearing
and any other public comments on the proposed pro-
gram, and comments from current and prospective
residents who would be affected, and that includes
criteria for meeting each of the requirements under
section 404 and this title;
(3) shall describe how the plan for use of
amounts will assist in meeting the goals set forth in
section 401;
208
(4) shall propose standards for measuring per-
formance in using assistance provided pursuant to
this title based on the performance standards under
subsection (b)(2);
(5) shall propose the length of the period for
which the jurisdiction is applying for assistance
under this title; and
(6) may include a request assistance for train-
ing and technical assistance to assist with design of
the program and to participate in a detailed evalua-
tion.
(b) REVIEW, APPROVAL, AND PERFORMANCE STAND-
ARDS.—
(1) REVIEW.—The Secretary shall review appli-
cations for assistance pursuant to this title. If the
Secretary determines that the application complies
with the requirements of this title, the Secretary
shall offer to enter into an agreement with jurisdic-
tion providing for assistance pursuant to this title
and incorporating a requirement that the jurisdic-
tion achieve a particular level of performance in each
of the areas for which performance standards are es-
tablished under paragraph (2).
209
(2) PERFORMANCE
STANDARDS.—The Sec-
retary shall establish standards for measuring per-
formance of jurisdictions in the following areas:
(A) Success in moving dependent low-in-
come families to economic self-sufficiency.
(B) Success in reducing the numbers of
long-term homeless families.
(C) Decrease in the per-family cost of pro-
viding assistance.
(D) Reduction of excessive geographic con-
centration of assisted families.
(E) Any other performance goals that the
Secretary may prescribe.
(3) APPROVAL.—If the Secretary and a juris-
diction that the Secretary determines has submitted
an application meeting the requirements of this title
enter into an agreement referred to in paragraph
(1), the Secretary shall approve the application and
provide covered housing assistance for the jurisdic-
tion in the manner authorized under this title. The
Secretary may not approve any application for as-
sistance pursuant to this title unless the Secretary
and jurisdiction enter into an agreement referred to
in paragraph (1).
210
SEC. 407. TRAINING.
The Secretary, in consultation with representatives of
public and assisted housing interests, shall provide train-
ing and technical assistance relating to providing assist-
ance under this title and conduct detailed evaluations of
up to 30 jurisdictions for the purpose of identifying
replicable program models that are successful at carrying
out the purposes of this title.
SEC. 408. ACCOUNTABILITY.
(a) PERFORMANCE GOALS.—The Secretary shall
monitor the performance of participating jurisdictions in
providing assistance pursuant to this title based on the
performance standards contained in the agreements en-
tered into pursuant to section 406(b)(1).
(b) KEEPING RECORDS.—Each participating juris-
diction shall keep such records as the Secretary may pre-
scribe as reasonably necessary to disclose the amounts and
the disposition of amounts provided pursuant to this title,
to ensure compliance with the requirements of this title
and to measure performance against the performance
goals under subsection (a).
(c) REPORTS.—Each participating jurisdiction agen-
cy shall submit to the Secretary a report, or series of re-
ports, in a form and at a time specified by the Secretary.
The reports shall—
211
(1) document the use of funds made available
under this title;
(2) provide such information as the Secretary
may request to assist the Secretary in assessing the
program under this title; and
(3) describe and analyze the effect of assisted
activities in addressing the purposes of this title.
(d) ACCESS TO DOCUMENTS BY SECRETARY.—The
Secretary shall have access for the purpose of audit and
examination to any books, documents, papers, and records
that are pertinent to assistance in connection with, and
the requirements of, this title.
(e) ACCESS TO DOCUMENTS BY COMPTROLLER GEN-
ERAL.—The Comptroller General of the United States, or
any of the duly authorized representatives of the Comp-
troller General, shall have access for the purpose of audit
and examination to any books, documents, papers, and
records that are pertinent to assistance in connection with,
and the requirements of, this title.
SEC. 409. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) JURISDICTION.—The term ‘‘jurisdiction’’
means—
212
(A) a unit of general local government (as
such term is defined in section 104 of the Cran-
ston-Gonzalez National Affordable Housing
Act) that has boundaries, for purposes of carry-
ing out this title, that—
(i) wholly contain the area within
which a public housing agency is author-
ized to operate; and
(ii) do not contain any areas con-
tained within the boundaries of any other
participating jurisdiction; and
(B) a consortia of such units of general
local government, organized for purposes of this
title.
(2) PARTICIPATING JURISDICTION.—The term
‘‘participating jurisdiction’’ means, with respect to a
period for which such approval is made, a jurisdic-
tion that has been approved under section 406(b)(3)
to receive assistance pursuant to this title for such
fiscal year.
213
TITLE V—ACCOUNTABILITY AND
OVERSIGHT OF PUBLIC HOUS-
ING AGENCIES
Subtitle A—Study of Alternative
Methods for Evaluating Public
Housing Agencies
SEC. 501. IN GENERAL.
The Secretary of Housing and Urban Development
shall provide under section 505 for a study to be con-
ducted to determine the effectiveness of various alternative
methods of evaluating the performance of public housing
agencies and other providers of federally assisted housing.
SEC. 502. PURPOSES.
The purposes of the study under this subtitle shall
be—
(1) to identify and examine various methods of
evaluating and improving the performance of public
housing agencies in administering public housing
and tenant-based rental assistance programs and of
other providers of federally assisted housing, which
are alternatives to oversight by the Department of
Housing and Urban Development; and
(2) to identify specific monitoring and oversight
activities currently conducted by the Department of
214
Housing and Urban Development that are insuffi-
cient or ineffective in accurately and efficiently as-
sessing the performance of public housing agencies
and other providers of federally assisted housing,
and to evaluate whether such activities should be
eliminated, modified, or transferred to other entities
(including government and private entities) to in-
crease accuracy and effectiveness and improve mon-
itoring.
SEC. 503. EVALUATION OF VARIOUS PERFORMANCE EVAL-
UATION SYSTEMS.
To carry out the purpose under section 502(1), the
study under this subtitle shall identify, and analyze and
assess the costs and benefits of, the following methods of
regulating and evaluating the performance of public hous-
ing agencies and other providers of federally assisted hous-
ing:
(1) CURRENT SYSTEM.—The system pursuant
to the United States Housing Act of 1937 (as in ef-
fect upon the enactment of this Act), including the
methods and requirements under such system for re-
porting, auditing, reviewing, sanctioning, and mon-
itoring of such agencies and housing providers and
the public housing management assessment program
pursuant to subtitle C of this title (and section 6(j)
215
of the United States Housing Act of 1937 (as in ef-
fect upon the enactment of this Act)).
(2) ACCREDITATION MODELS.—Various models
that are based upon accreditation of such agencies
and housing providers, subject to the following re-
quirements:
(A) The study shall identify and analyze
various models used in other industries and
professions for accreditation and determine the
extent of their applicability to the programs for
public housing and federally assisted housing.
(B) If any accreditation models are deter-
mined to be applicable to the public and feder-
ally assisted housing programs, the study shall
identify appropriate goals, objectives, and pro-
cedures for an accreditation program for such
agencies housing providers.
(C) The study shall evaluate the effective-
ness of establishing an independent accredita-
tion and evaluation entity to assist, supplement,
or replace the role of the Department of Hous-
ing and Urban Development in assessing and
monitoring the performance of such agencies
and housing providers.
216
(D) The study shall identify the necessary
and appropriate roles and responsibilities of
various entities that would be involved in an ac-
creditation program, including the Department
of Housing and Urban Development, the In-
spector General of the Department, an accredi-
tation entity, independent auditors and examin-
ers, local entities, and public housing agencies.
(E) The study shall determine the costs in-
volved in developing and maintaining such an
independent accreditation program.
(F) The study shall analyze the need for
technical assistance to assist public housing
agencies in improving performance and identify
the most effective methods to provide such as-
sistance.
(3) PERFORMANCE
BASED
MODELS.—Various
performance-based models, including systems that
establish performance goals or targets, assess the
compliance with such goals or targets, and provide
for incentives or sanctions based on performance rel-
ative to such goals or targets.
(4) LOCAL
REVIEW
AND
MONITORING
MOD-
ELS.—Various models providing for local, resident,
217
and community review and monitoring of such agen-
cies and housing providers, including systems for re-
view and monitoring by local and State govern-
mental bodies and agencies.
(5) PRIVATE MODELS.—Various models using
private contractors for review and monitoring of
such agencies and housing providers.
(6) OTHER MODELS.—Various models of any
other systems that may be more effective and effi-
cient in regulating and evaluating such agencies and
housing providers.
SEC. 504. CONSULTATION.
The entity that, pursuant to section 505, carries out
the study under this subtitle shall, in carrying out the
study, consult with individuals and organization experi-
enced in managing public housing, private real estate
managers, representatives from State and local govern-
ments, residents of public housing, families and individ-
uals receiving choice- or tenant-based assistance, the Sec-
retary of Housing and Urban Development, the Inspector
General of the Department of Housing and Urban Devel-
opment, and the Comptroller General of the United
States.
218
SEC. 505. CONTRACT TO CONDUCT STUDY.
(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary shall enter into a contract with a public or nonprofit
private entity to conduct the study under this subtitle,
using amounts made available pursuant to section 507.
(b) NATIONAL ACADEMY OF PUBLIC ADMINISTRA-
TION.—The Secretary shall request the National Academy
of Public Administration to enter into the contract under
paragraph (1) to conduct the study under this subtitle.
If such Academy declines to conduct the study, the Sec-
retary shall carry out such paragraph through other public
or nonprofit private entities.
SEC. 506. REPORT.
(a) INTERIM REPORT.—The Secretary shall ensure
that not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the
entity conducting the study under this subtitle submits to
the Congress an interim report describing the actions
taken to carry out the study, the actions to be taken to
complete the study, and any findings and recommenda-
tions available at the time.
(b) FINAL REPORT.—The Secretary shall ensure
that—
219
(1) not later than the expiration of the 12-
month period beginning on the date of the enact-
ment of this Act, the study required under this sub-
title is completed and a report describing the find-
ings and recommendations as a result of the study
is submitted to the Congress; and
(2) before submitting the report under this sub-
section to the Congress, the report is submitted to
the Secretary and national organizations for public
housing agencies at such time to provide the Sec-
retary and such agencies an opportunity to review
the report and provide written comments on the re-
port, which shall be included together with the re-
port upon submission to the Congress under para-
graph (1).
SEC. 507. FUNDING.
Of any amounts made available under title V of the
Housing and Urban Development Act of 1970 for policy
development and research for fiscal year 1998, $500,000
shall be available to carry out this subtitle.
SEC. 508. EFFECTIVE DATE.
This subtitle shall take effect on the date of the en-
actment of this Act.
220
Subtitle B—Housing Evaluation
and Accreditation Board
SEC. 521. ESTABLISHMENT.
(a) IN GENERAL.—There is established an independ-
ent agency in the executive branch of the Government to
be known as the Housing Foundation and Accreditation
Board (in this title referred to as the ‘‘Board’’).
(b) REQUIREMENT FOR CONGRESSIONAL REVIEW OF
STUDY.—Notwithstanding any other provision of this Act,
sections 523, 524, and 525 shall not take effect and the
Board shall not have any authority to take any action
under such sections (or otherwise) unless there is enacted
a law specifically providing for the repeal of this sub-
section. This subsection may not be construed to prevent
the appointment of the Board under section 522.
(c) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 522. MEMBERSHIP.
(a) IN GENERAL.—The Board shall be composed of
12 members appointed by the President not later than 180
days after the date of the final report regarding the study
required under subtitle A is submitted to the Congress
pursuant to section 506(b), as follows:
221
(1) 4 members shall be appointed from among
10 individuals recommended by the Secretary of
Housing and Urban Development.
(2) 4 members shall be appointed from among
10 individuals recommended by the Chairman and
Ranking Minority Member of the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(3) 4 members appointed from among 10 indi-
viduals recommended by the Chairman and Ranking
Minority Member of the Committee on Banking and
Financial Services of the House of Representatives.
(b) QUALIFICATIONS.—
(1) REQUIRED REPRESENTATION.—The Board
shall at all times have the following members:
(A) 2 members who are residents of public
housing or dwelling units assisted under title
III of this Act or the provisions of section 8 of
the United States Housing Act of 1937 (as in
effect before the effective date of this Act).
(B) At least 2, but not more than 4 mem-
bers who are executive directors of public hous-
ing agencies.
(C) 1 member who is a member of the In-
stitute of Real Estate Managers.
222
(D) 1 member who is the owner of a multi-
family housing project assisted under a pro-
gram administered by the Secretary of Housing
and Urban Development.
(2) REQUIRED EXPERIENCE.—The Board shall
at all times have as members individuals with the
following experience:
(A) At least 1 individual who has extensive
experience in the residential real estate finance
business.
(B) At least 1 individual who has extensive
experience in operating a nonprofit organization
that provides affordable housing.
(C) At least 1 individual who has extensive
experience in construction of multifamily hous-
ing.
(D) At least 1 individual who has extensive
experience in the management of a community
development corporation.
(E) At least 1 individual who has extensive
experience in auditing participants in govern-
ment programs.
A single member of the board with the appropriate
experience may satisfy the requirements of more
than 1 subparagraph of this paragraph. A single
223
member of the board with the appropriate qualifica-
tions and experience may satisfy the requirements of
a subparagraph of paragraph (1) and a subpara-
graph of this paragraph.
(c) POLITICAL AFFILIATION.—Not more than 6
members of the Board may be of the same political party.
(d) TERMS.—
(1) IN GENERAL.—Each member of the Board
shall be appointed for a term of 4 years, except as
provided in paragraphs (2) and (3).
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment,
of the members first appointed—
(A) 3 shall be appointed for terms of 1
year;
(B) 3 shall be appointed for terms of 2
years;
(C) 3 shall be appointed for terms of 3
years; and
(D) 3 shall be appointed for terms of 4
years.
(3) VACANCIES.—Any member appointed to fill
a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
224
that term. A member may serve after the expiration
of that member’s term until a successor has taken
office. A vacancy in the Board shall be filled in the
manner in which the original appointment was
made.
(e) CHAIRPERSON.—The Board shall elect a chair-
person from among members of the Board.
(f) QUORUM.—A majority of the members of the
Board shall constitute a quorum for the transaction of
business.
(g) VOTING.—Each member of the Board shall be en-
titled to 1 vote, which shall be equal to the vote of every
other member of the Board.
(h) PROHIBITION ON ADDITIONAL PAY.—Members of
the Board shall serve without compensation, but shall be
reimbursed for travel, subsistence, and other necessary ex-
penses incurred in the performance of their duties as
members of the Board.
SEC. 523. FUNCTIONS.
The purpose of this subtitle is to establish the Board
as a nonpolitical entity to carry out, not later than the
expiration of the 12-month period beginning upon the ap-
pointment under section 522 of all of the initial members
of the Board (or such other date as may be provided by
law), the following functions:
225
(1) 
ESTABLISHMENT
OF
PERFORMANCE
BENCHMARKS.—The Board shall establish standards
and guidelines for use by the Board in measuring
the performance and efficiency of public housing
agencies and other owners and providers of federally
assisted housing in carrying out operational and fi-
nancial functions. The standards and guidelines
shall be designed to replace the public housing man-
agement assessment program under section 6(j) of
the United States Housing Act of 1937 (as in effect
before the enactment of this Act) and improve the
evaluation of the performance of housing providers
relative to such program. In establishing such stand-
ards and guidelines, the Board shall consult with the
Secretary, the Inspector General of the Department
of Housing and Urban Development, and such other
persons and entities as the Board considers appro-
priate.
(2) ESTABLISHMENT OF ACCREDITATION PRO-
CEDURE AND ACCREDITATION.—The Board shall—
(A) establish a procedure for the Board to
accredit public housing agencies to receive block
grants under title II for the operation, mainte-
nance, and production of public housing and
amounts for housing assistance under title III,
226
based on the performance of agencies, as meas-
ured by the performance benchmarks estab-
lished under paragraph (1) and any audits and
reviews of agencies; and
(B) commence the review and accreditation
of public housing agencies under the procedures
established under subparagraph (A).
In carrying out the functions under this section, the Board
shall take into consideration the findings and rec-
ommendations contained in the report issued under sec-
tion 506(b).
SEC. 524. POWERS.
(a) HEARINGS.—The Board may, for the purpose of
carrying out this subtitle, hold such hearings and sit and
act at such times and places as the Board determines ap-
propriate.
(b) RULES
AND REGULATIONS.—The Board may
adopt such rules and regulations as may be necessary to
establish its procedures and to govern the manner of its
operations, organization, and personnel.
(c) ASSISTANCE FROM FEDERAL AGENCIES.—
(1) INFORMATION.—The Board may secure di-
rectly from any department or agency of the Federal
Government such information as the Board may re-
quire for carrying out its functions, including public
227
housing agency plans submitted to the Secretary by
public housing agencies under title I. Upon request
of the Board, any such department or agency shall
furnish such information.
(2) GENERAL
SERVICES
ADMINISTRATION.—
The Administrator of General Services shall provide
to the Board, on a reimbursable basis, such adminis-
trative support services as the Board may request.
(3) DEPARTMENT OF HOUSING AND URBAN DE-
VELOPMENT.—Upon the request of the chairperson
of the Board, the Secretary of Housing and Urban
Development shall, to the extent possible and subject
to the discretion of the Secretary, detail any of the
personnel of the Department of Housing and Urban
Development, on a nonreimbursable basis, to assist
the Board in carrying out its functions under this
subtitle.
(4) HUD INSPECTOR GENERAL.—The Inspector
General of the Department of Housing and Urban
Development shall serve the Board as a principal ad-
viser with respect to all aspects of audits of public
housing agencies. The Inspector General may advise
the Board with respect to other activities and func-
tions of the Board.
228
(d) MAILS.—The Board may use the United States
mails in the same manner and under the same conditions
as other Federal agencies.
(e) CONTRACTING.—The Board may, to such extent
and in such amounts as are provided in appropriation
Acts, enter into contracts with private firms, institutions,
and individuals for the purpose of conducting evaluations
of public housing agencies, audits of public housing agen-
cies, and research and surveys necessary to enable the
Board to discharge its functions under this subtitle.
(f) STAFF.—
(1) EXECUTIVE
DIRECTOR.—The Board shall
appoint an executive director of the Board, who shall
be compensated at a rate fixed by the Board, but
which shall not exceed the rate established for level
V of the Executive Schedule under title 5, United
States Code.
(2) OTHER PERSONNEL.—In addition to the ex-
ecutive director, the Board may appoint and fix the
compensation of such personnel as the Board consid-
ers necessary, in accordance with the provisions of
title 5, United States Code, governing appointments
to the competitive service, and the provisions of
chapter 51 and subchapter III of chapter 53 of such
229
title, relating to classification and General Schedule
pay rates.
(g) ACCESS TO DOCUMENTS.—The Board shall have
access for the purposes of carrying out its functions under
this subtitle to any books, documents, papers, and records
of a public housing agency to which the Secretary has ac-
cess under this Act.
SEC. 525. FEES.
(a) ACCREDITATION FEES.—The Board may estab-
lish and charge fees for the accreditation of public housing
agencies as the Board considers necessary to cover the
costs of the operations of the Board relating to its func-
tions under section 523.
(b) FUND.—Any fees collected under this section
shall be deposited in an operations fund for the Board,
which is hereby established in the Treasury of the United
States. Amounts in such fund shall be available, to the
extent provided in appropriation Acts, for the expenses of
the Board in carrying out its functions under this subtitle.
SEC. 526. GAO AUDIT.
The activities and transactions of the Board shall be
subject to audit by the Comptroller General of the United
States under such rules and regulations as may be pre-
scribed by the Comptroller General. The representatives
of the General Accounting Office shall have access for the
230
purpose of audit and examination to any books, docu-
ments, papers, and records of the Board that are nec-
essary to facilitate an audit.
Subtitle C—Interim Applicability of
Public Housing Management As-
sessment Program
SEC. 531. INTERIM APPLICABILITY.
This subtitle shall be effective only during the period
that begins on the effective date of this Act and ends upon
the date of the effectiveness of the standards and proce-
dures required under section 523.
SEC. 532. MANAGEMENT ASSESSMENT INDICATORS.
(a) ESTABLISHMENT.—The Secretary shall develop
and publish in the Federal Register indicators to assess
the management performance of public housing agencies
and other entities managing public housing (including
resident management corporations, independent managers
pursuant to section 236, and management entities pursu-
ant to subtitle D). The indicators shall be established by
rule under section 553 of title 5, United States Code. Such
indicators shall enable the Secretary to evaluate the per-
formance of public housing agencies and such other man-
agers of public housing in all major areas of management
operations.
231
(b) CONTENT.—The management assessment indica-
tors shall include the following indicators:
(1) The number and percentage of vacancies
within an agency’s or manager’s inventory, including
the progress that an agency or manager has made
within the previous 3 years to reduce such vacancies.
(2) The amount and percentage of funds obli-
gated to the public housing agency or manager from
the capital fund or under section 14 of the United
States Housing Act of 1937 (as in effect before the
effective date of this Act), which remain unexpended
after 3 years.
(3) The percentage of rents uncollected.
(4) The energy consumption (with appropriate
adjustments to reflect different regions and unit
sizes).
(5) The average period of time that an agency
or manager requires to repair and turn-around va-
cant dwelling units.
(6) The proportion of maintenance work orders
outstanding, including any progress that an agency
or manager has made during the preceding 3 years
to reduce the period of time required to complete
maintenance work orders.
232
(7) The percentage of dwelling units that an
agency or manager fails to inspect to ascertain
maintenance or modernization needs within such pe-
riod of time as the Secretary deems appropriate
(with appropriate adjustments, if any, for large and
small agencies or managers).
(8) The extent to which the rent policies of any
public housing agency establishing rental amounts in
accordance with section 225(b) comply with the re-
quirement under section 225(c).
(9) Any other factors as the Secretary deems
appropriate.
(c) CONSIDERATIONS
IN EVALUATION.—The Sec-
retary shall—
(1) administer the system of evaluating public
housing agencies and managers flexibly to ensure
that agencies and managers are not penalized as re-
sult of circumstances beyond their control;
(2) reflect in the weights assigned to the var-
ious management assessment indicators the dif-
ferences in the difficulty of managing individual de-
velopments that result from their physical condition
and their neighborhood environment; and
233
(3) determine a public housing agency’s or
manager’s status as ‘‘troubled with respect to mod-
ernization’’ under section 533(b) based upon factors
solely related to its ability to carry out moderniza-
tion activities.
SEC. 533. DESIGNATION OF PHA’S.
(a) TROUBLED PHA’S.—The Secretary shall, under
the rulemaking procedures under section 553 of title 5,
United States Code, establish procedures for designating
troubled public housing agencies and managers, which
procedures shall include identification of serious and sub-
stantial failure to perform as measured by the perform-
ance indicators specified under section 532 and such other
factors as the Secretary may deem to be appropriate.
(b) AGENCIES TROUBLED WITH RESPECT TO CAP-
ITAL ACTIVITIES.—The Secretary shall designate, by rule
under section 553 of title 5, United States Code, agencies
and managers that are troubled with respect to capital ac-
tivities.
(c) AGENCIES AT RISK OF BECOMING TROUBLED.—
The Secretary shall designate, by rule under section 553
of title 5, United States Code, agencies and managers that
are at risk of becoming troubled.
234
(d) EXEMPLARY AGENCIES.—The Secretary may
also, in consultation with national organizations represent-
ing public housing agencies and managers and public offi-
cials (as the Secretary determines appropriate), identify
and commend public housing agencies and managers that
meet the performance standards established under section
532 in an exemplary manner.
(e) APPEAL OF DESIGNATION.—The Secretary shall
establish procedures for public housing agencies and man-
agers to appeal designation as a troubled agency or man-
ager (including designation as a troubled agency or man-
ager for purposes of capital activities), to petition for re-
moval of such designation, and to appeal any refusal to
remove such designation.
SEC. 534. ON-SITE INSPECTION OF TROUBLED PHA’S.
(a) IN GENERAL.—Upon designating a public hous-
ing agency or manager as troubled pursuant to section
533 and determining that an assessment under this sec-
tion will not duplicate any other review previously con-
ducted or required to be conducted of the agency or man-
ager, the Secretary shall provide for an on-site, independ-
ent assessment of the management of the agency or man-
ager.
(b) CONTENT.—To the extent the Secretary deems
appropriate (taking into consideration an agency’s or
235
manager’s performance under the indicators specified
under section 532, the assessment team shall also consider
issues relating to the agency’s or manager’s resident popu-
lation and physical inventory, including the extent to
which—
(1) the public housing agency plan for the agen-
cy or manager adequately and appropriately address-
es the rehabilitation needs of the public housing in-
ventory;
(2) residents of the agency or manager are in-
volved in and informed of significant management
decisions; and
(3) any developments in the agency’s or man-
ager’s inventory are severely distressed (as such
term is defined under section 262.
(c) INDEPENDENT ASSESSMENT TEAM.—An inde-
pendent assessment under this section shall be carried out
by a team of knowledgeable individuals selected by the
Secretary (referred to in this title as the ‘‘assessment
team’’) with expertise in public housing and real estate
management. In conducting an assessment, the assess-
ment team shall consult with the residents and with public
and private entities in the jurisdiction in which the public
housing is located. The assessment team shall provide to
the Secretary and the public housing agency or manager
236
a written report, which shall contain, at a minimum, rec-
ommendations for such management improvements as are
necessary to eliminate or substantially remedy existing de-
ficiencies.
SEC. 535. ADMINISTRATION.
(a) PHA’S.—The Secretary shall carry out this sub-
title with respect to public housing agencies substantially
in the same manner as the public housing management
assessment system under section 6(j) of the United States
Housing Act of 1937 (as in effect immediately before the
effective date of this Act) was required to be carried out
with respect to public housing agencies. The Secretary
may comply with the requirements under this subtitle by
using any regulations issued to carry out such system and
issuing any additional regulations necessary to make such
system comply with the requirements under this subtitle.
(b) OTHER MANAGERS.—The Secretary shall estab-
lish specific standards and procedures for carrying out this
subtitle with respect to managers of public housing that
are not public housing agencies. Such standards and pro-
cedures shall take in consideration special circumstances
relating to entities hired, directed, or appointed to manage
public housing.
237
Subtitle 
D—Accountability 
and
Oversight Standards and Proce-
dures
SEC. 541. AUDITS.
(a) BY SECRETARY AND COMPTROLLER GENERAL.—
Each block grant contract under section 201 and each
contract for housing assistance amounts under section 302
shall provide that the Secretary, the Inspector General of
the Department of Housing and Urban Development, and
the Comptroller General of the United States, or any of
their duly authorized representatives, shall, for the pur-
pose of audit and examination, have access to any books,
documents, papers, and records of the public housing
agency (or other entity) entering into such contract that
are pertinent to this Act and to its operations with respect
to financial assistance under the this Act.
(b) BY PHA.—
(1) REQUIREMENT.—Each public housing agen-
cy that owns or operates 250 or more public housing
dwelling units and receives assistance under this Act
shall have an audit made in accordance with chapter
75 of title 31, United States Code. The Secretary,
the Inspector General of the Department of Housing
and Urban Development, and the Comptroller Gen-
eral of the United States shall have access to all
238
books, documents, papers, or other records that are
pertinent to the activities carried out under this Act
in order to make audit examinations, excerpts, and
transcripts.
(2) WITHHOLDING OF AMOUNTS.—If the Sec-
retary determines that a public housing agency has
failed to take the actions required to submit an ac-
ceptable audit on a timely basis in accordance with
chapter 75 of title 31, United States Code, the Sec-
retary may arrange for, and pay the costs of, the
audit. In such circumstances, the Secretary may
withhold, from assistance otherwise payable to the
agency under this Act, amounts sufficient to pay for
the reasonable costs of conducting an acceptable
audit, including, when appropriate, the reasonable
costs of accounting services necessary to place the
agency’s books and records in auditable condition.
SEC. 542. PERFORMANCE AGREEMENTS FOR AUTHORITIES
AT RISK OF BECOMING TROUBLED.
(a) IN GENERAL.—Upon designation of a public
housing agency as at risk of becoming troubled under sec-
tion 533(c), the Secretary shall seek to enter into an
agreement with the agency providing for improvement of
the elements of the agency that have been identified. An
agreement under this section shall contain such terms and
239
conditions as the Secretary determines are appropriate for
addressing the elements identified, which may include an
on-site, independent assessment of the management of the
agency.
(b) POWERS OF SECRETARY.—If the Secretary deter-
mines that such action is necessary to prevent the public
housing agency from becoming a troubled agency, the Sec-
retary may—
(1) solicit competitive proposals from other pub-
lic housing agencies and private housing manage-
ment agents (which may be selected by existing ten-
ants through administrative procedures established
by the Secretary), for any case in which such agents
may be needed for managing all, or part, of the
housing or functions administered by the agency; or
(2) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management, for any case in
which such authorities or firms may be needed to
oversee implementation of assistance made available
for capital improvement for public housing of the
agency.
240
SEC. 543. PERFORMANCE AGREEMENTS AND CDBG SANC-
TIONS FOR TROUBLED PHA’S.
(a) IN GENERAL.—Upon designation of a public
housing agency as a troubled agency under section 533(a)
and after reviewing the report submitted pursuant to sec-
tion 534(c) and consulting with the assessment team for
the agency under section 534, the Secretary shall seek to
enter into an agreement with the agency providing for im-
proving the management performance of the agency.
(b) CONTENTS.—An agreement under this section be-
tween the Secretary and a public housing agency shall set
forth—
(1) targets for improving performance, as meas-
ured by the guidelines and standards established
under section 532 and other requirements within a
specified period of time, which shall include targets
to be met upon the expiration of the 12-month pe-
riod beginning upon entering into the agreement;
(2) strategies for meeting such targets;
(3) sanctions for failure to implement such
strategies; and
(4) to the extent the Secretary deems appro-
priate, a plan for enhancing resident involvement in
the management of the public housing agency.
241
(c) LOCAL ASSISTANCE IN IMPLEMENTATION.—The
Secretary and the public housing agency shall, to the max-
imum extent practicable, seek the assistance of local public
and private entities in carrying out an agreement under
this section.
(d) 
DEFAULT
UNDER
PERFORMANCE
AGREE-
MENT.—Upon the expiration of the 12-month period be-
ginning upon entering into an agreement under this sec-
tion with a public housing agency, the Secretary shall re-
view the performance of the agency in relation to the per-
formance targets and strategies under the agreement. If
the Secretary determines that the agency has failed to
comply with the performance targets established for such
period, the Secretary shall take the action authorized
under subsection (b)(2) or (b)(5) of section 545.
(e) CDBG SANCTION AGAINST LOCAL GOVERNMENT
CONTRIBUTING TO TROUBLED STATUS OF PHA.—If the
Secretary determines that the actions or inaction of any
unit of general local government within which any portion
of the jurisdiction of a public housing agency is located
has substantially contributed to the conditions resulting
in the agency being designated under section 533(a) as
a troubled agency, the Secretary may redirect or withhold,
from such unit of general local government any amounts
242
allocated for such unit under section 106 of the Housing
and Community Development Act of 1974.
SEC. 544. OPTION TO DEMAND CONVEYANCE OF TITLE TO
OR POSSESSION OF PUBLIC HOUSING.
(a) AUTHORITY
FOR
CONVEYANCE.—A contract
under section 201 for block grants under title II (including
contracts which amend or supersede contracts previously
made (including contracts for contributions)) may provide
that upon the occurrence of a substantial default with re-
spect to the covenants or conditions to which the public
housing agency is subject (as such substantial default
shall be defined in such contract), the public housing agen-
cy shall be obligated, at the option of the Secretary, to—
(1) convey title in any case where, in the deter-
mination of the Secretary (which determination shall
be final and conclusive), such conveyance of title is
necessary to achieve the purposes of this Act; or
(2) deliver to the Secretary possession of the
development, as then constituted, to which such con-
tract relates.
(b) OBLIGATION TO RECONVEY.—Any block grant
contract under title II containing the provisions author-
ized in subsection (a) shall also provide that the Secretary
shall be obligated to reconvey or redeliver possession of
243
the development, as constituted at the time of reconvey-
ance or redelivery, to such public housing agency or to
its successor (if such public housing agency or a successor
exists) upon such terms as shall be prescribed in such con-
tract, and as soon as practicable after—
(1) the Secretary is satisfied that all defaults
with respect to the development have been cured,
and that the development will, in order to fulfill the
purposes of this Act, thereafter be operated in ac-
cordance with the terms of such contract; or
(2) the termination of the obligation to make
annual block grants to the agency, unless there are
any obligations or covenants of the agency to the
Secretary which are then in default.
Any prior conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right to re-
quire a conveyance or delivery of possession of the develop-
ment to the Secretary pursuant to subsection (a) upon the
subsequent occurrence of a substantial default.
(c) CONTINUED GRANTS FOR REPAYMENT OF BONDS
AND NOTES UNDER 1937 ACT.—If—
(1) a contract for block grants under title II for
an agency includes provisions that expressly state
that the provisions are included pursuant to this
subsection, and
244
(2) the portion of the block grant payable for
debt service requirements pursuant to the contract
has been pledged by the public housing agency as se-
curity for the payment of the principal and interest
on any of its obligations, then—
(A) the Secretary shall (notwithstanding
any other provisions of this Act), continue to
make the block grant payments for the agency
so long as any of such obligations remain out-
standing; and
(B) the Secretary may covenant in such a
contract that in any event such block grant
amounts shall in each year be at least equal to
an amount which, together with such income or
other funds as are actually available from the
development for the purpose at the time such
block grant payments are made, will suffice for
the payment of all installments of principal and
interest on the obligations for which the
amounts provided for in the contract shall have
been pledged as security that fall due within the
next succeeding 12 months.
In no case shall such block grant amounts be in excess
of the maximum sum specified in the contract involved,
245
nor for longer than the remainder of the maximum period
fixed by the contract.
SEC. 545. REMOVAL OF INEFFECTIVE PHA’S.
(a) CONDITIONS OF REMOVAL.—The actions speci-
fied in subsection (b) may be taken only upon—
(1) the occurrence of events or conditions that
constitute a substantial default by a public housing
agency with respect to (A) the covenants or condi-
tions to which the public housing agency is subject,
or (B) an agreement entered into under section 543;
or
(2) submission to the Secretary of a petition by
the residents of the public housing owned or oper-
ated by a public housing agency that is designated
as troubled pursuant to section 533(a).
(b) REMOVAL ACTIONS.—Notwithstanding any other
provision of law or of any block grant contract under title
II or any grant agreement under title III, in accordance
with subsection (a), the Secretary may—
(1) solicit competitive proposals from other pub-
lic housing agencies and private housing manage-
ment agents (which, in the discretion of the Sec-
retary, may be selected by existing public housing
residents through administrative procedures estab-
lished by the Secretary) and, if appropriate, provide
246
for such agents to manage all, or part, of the hous-
ing administered by the public housing agency or all
or part of the other functions of the agency;
(2) take possession of the public housing agen-
cy, including any developments or functions of the
agency under any section of this Act;
(3) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management and, if appro-
priate, provide for such authorities or firms to over-
see implementation of assistance made available for
capital improvements for public housing;
(4) require the agency to make other arrange-
ments acceptable to the Secretary and in the best in-
terests of the public housing residents and assisted
families under title III for managing all, or part of,
the public housing administered by the agency or the
functions of the agency; or
(5) petition for the appointment of a receiver
for the public housing agency to any district court
of the United States or to any court of the State in
which any portion of the jurisdiction of the public
housing agency is located, that is authorized to ap-
point a receiver for the purposes and having the
powers prescribed in this section.
247
(c) EMERGENCY ASSISTANCE.—The Secretary may
make available to receivers and other entities selected or
appointed pursuant to this section such assistance as is
fair and reasonable to remedy the substantial deteriora-
tion of living conditions in individual public housing devel-
opments or other related emergencies that endanger the
health, safety and welfare of public housing residents or
assisted families under title III.
(d) POWERS OF SECRETARY.—If the Secretary takes
possession of an agency, or any developments or functions
of an agency, pursuant to subsection (b)(2), the Sec-
retary—
(1) may abrogate contracts that substantially
impede correction of the substantial default or im-
provement of the classification, but only after efforts
to renegotiate such contracts have failed;
(2) may demolish and dispose of assets of the
agency in accordance with section 261;
(3) where determined appropriate by the Sec-
retary, may require the establishment of one or more
new public housing agencies;
(4) may consolidate the agency into other well-
managed public housing agencies with the consent of
such well-managed authorities;
248
(5) shall not be subject to any State or local
laws relating to civil service requirements, employee
rights, procurement, or financial or administrative
controls that, in the determination of the Secretary,
substantially impede correction of the substantial de-
fault or improvement of the classification; and
(6) shall have such additional authority as a
district court of the United States has the authority
to confer under like circumstances upon a receiver to
achieve the purposes of the receivership.
The Secretary may appoint, on a competitive or non-
competitive basis, an individual or entity as an administra-
tive receiver to assume the Secretary’s responsibility under
this paragraph for the administration of a public housing
agency. The Secretary may delegate to the administrative
receiver any or all of the powers of the Secretary under
this subsection. Regardless of any delegation under this
subsection, an administrative receiver may not require the
establishment of one or more new public housing agencies
pursuant to paragraph (3) unless the Secretary first ap-
proves such establishment. For purposes of this sub-
section, the term ‘‘public housing agency’’ includes any de-
velopments or functions of a public housing agency under
any section of this title.
(e) RECEIVERSHIP.—
249
(1) REQUIRED APPOINTMENT.—In any proceed-
ing under subsection (b)(5), upon a determination
that a substantial default has occurred, and without
regard to the availability of alternative remedies, the
court shall appoint a receiver to conduct the affairs
of the public housing agency in a manner consistent
with this Act and in accordance with such further
terms and conditions as the court may provide. The
receiver appointed may be another public housing
agency, a private management corporation, the Sec-
retary, or any other appropriate entity. The court
shall have power to grant appropriate temporary or
preliminary relief pending final disposition of the pe-
tition by the Secretary.
(2) POWERS OF RECEIVER.—If a receiver is ap-
pointed for a public housing agency pursuant to sub-
section (b)(5), in addition to the powers accorded by
the court appointing the receiver, the receiver—
(A) may abrogate contracts that substan-
tially impede correction of the substantial de-
fault or improvement of the classification;
(B) may demolish and dispose of assets of
the agency in accordance with section 261;
(C) where determined appropriate by the
Secretary, may require the establishment of one
250
or more new public housing agencies, to the ex-
tent permitted by State and local law; and
(D) except as provided in subparagraph
(C), shall not be subject to any State or local
laws relating to civil service requirements, em-
ployee rights, procurement, or financial or ad-
ministrative controls that, in the determination
of the receiver, substantially impede correction
of the substantial default or improvement of the
classification.
For purposes of this paragraph, the term ‘‘public
housing agency’’ includes any developments or func-
tions of a public housing agency under any section
of this title.
(3) TERMINATION.—The appointment of a re-
ceiver pursuant to this subsection may be termi-
nated, upon the petition of any party, when the
court determines that all defaults have been cured or
the public housing agency will be able to make the
same amount of progress in correcting the manage-
ment of the housing as the receiver.
(f) LIABILITY.—If the Secretary takes possession of
an agency pursuant to subsection (b)(2) or a receiver is
appointed pursuant to subsection (b)(5) for a public hous-
ing agency, the Secretary or the receiver shall be deemed
251
to be acting in the capacity of the public housing agency
(and not in the official capacity as Secretary or other offi-
cial) and any liability incurred shall be a liability of the
public housing agency.
(g) EFFECTIVENESS.—The provisions of this section
shall apply with respect to actions taken before, on, or
after the effective date of this Act and shall apply to any
receivers appointed for a public housing agency before the
effective date of this Act.
SEC. 546. MANDATORY TAKEOVER OF CHRONICALLY TROU-
BLED PHA’S.
(a) REMOVAL
OF AGENCY.—Notwithstanding any
other provision of this Act, not later than the expiration
of the 180-day period beginning on the effective date of
this Act, the Secretary shall take one of the following ac-
tions with respect to each chronically troubled public hous-
ing agency:
(1) CONTRACTING FOR MANAGEMENT.—Solicit
competitive proposals for the management of the
agency pursuant to section 545(b)(1) and replace
the management of the agency pursuant to selection
of such a proposal.
(2) TAKEOVER.—Take possession of the agency
pursuant to section 545(b)(2) of such Act.
252
(b) DEFINITION.—For purposes of this section, the
term ‘‘chronically troubled public housing agency’’ means
a public housing agency that, as of the effective date of
this Act, is designated under section 6(j)(2) of the United
States Housing Act of 1937 (as in effect immediately be-
fore the effective date of this Act) as a troubled public
housing agency and has been so designated continuously
for the 3-year period ending upon such effective date; ex-
cept that such term does not include any agency that owns
or operates less than 1250 public housing dwelling units
and that the Secretary determines can, with a reasonable
amount of effort, make such improvements or remedies
as may be necessary to remove its designation as troubled
within 12 months.
SEC. 547. TREATMENT OF TROUBLED PHA’S.
(a) EFFECT OF TROUBLED STATUS ON CHAS.—The
comprehensive housing affordability strategy (or any con-
solidated plan incorporating such strategy) for the State
or unit of general local government in which any troubled
public housing agency is located shall not be considered
to comply with the requirements under section 105 of the
Cranston-Gonzalez National Affordable Housing Act un-
less such plan includes a description of the manner in
which the State or unit will assist such troubled agency
in improving its operations to remove such designation.
253
(b) DEFINITION.—For purposes of this section, the
term ‘‘troubled public housing agency’’ means a public
housing agency that—
(1) upon the effective date of this Act, is des-
ignated under section 6(j)(2) of the United States
Housing Act of 1937 (as in effect immediately be-
fore the effective date of this Act) as a troubled pub-
lic housing agency; and
(2) is not a chronically troubled public housing
agency, as such term is defined in section 546(b) of
this Act.
SEC. 548. MAINTENANCE OF RECORDS.
Each public housing agency shall keep such records
as may be reasonably necessary to disclose the amount
and the disposition by the agency of the proceeds of assist-
ance received pursuant to this Act and to ensure compli-
ance with the requirements of this Act.
SEC. 549. ANNUAL REPORTS REGARDING TROUBLED PHA’S.
The Secretary shall submit a report to the Congress
annually, as a part of the report of the Secretary under
section 8 of the Department of Housing and Urban Devel-
opment Act, that—
(1) identifies the public housing agencies that
are designated under section 533 as troubled or at-
254
risk of becoming troubled and the reasons for such
designation; and
(2) describes any actions that have been taken
in accordance with sections 542, 543, 544, and 545.
SEC. 550. APPLICABILITY TO RESIDENT MANAGEMENT
CORPORATIONS.
The Secretary shall apply the provisions of this sub-
title to resident management corporations in the same
manner as applied to public housing agencies.
TITLE VI—REPEALS AND
RELATED AMENDMENTS
Subtitle A—Repeals, Effective Date,
and Savings Provisions
SEC. 601. EFFECTIVE DATE AND REPEAL OF UNITED
STATES HOUSING ACT OF 1937.
(a) EFFECTIVE DATE.—
(1) IN GENERAL.—This Act and the amend-
ments made by this Act shall take effect upon the
expiration of the 6-month period beginning on the
date of the enactment of this Act, except as other-
wise provided in this section.
(2) EXCEPTION.—If the Secretary determines
that action under this paragraph is necessary for
program administration or to avoid hardship, the
255
Secretary may, by notice in accordance with sub-
section (d), delay the effective date of any provision
of this Act until a date not later than October 1,
1998.
(3) SPECIFIC EFFECTIVE DATES.—Any provi-
sion of this Act that specifically provides for the ef-
fective date of such provision shall take effect in ac-
cordance with the terms of the provision.
(b) REPEAL OF UNITED STATES HOUSING ACT OF
1937.—Effective upon the effective date under subsection
(a)(1), the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is repealed, subject to the conditions under
subsection (c). Subsection (a)(2) shall not apply to this
subsection.
(c) SAVINGS PROVISIONS.—
(1) OBLIGATIONS UNDER 1937 ACT.—Any obli-
gation of the Secretary made under authority of the
United States Housing Act of 1937 shall continue to
be governed by the provisions of such Act, except
that—
(A) notwithstanding the repeal of such
Act, the Secretary may make a new obligation
under such Act upon finding that such obliga-
tion is required—
256
(i) to protect the financial interests of
the United States or the Department of
Housing and Urban Development; or
(ii) for the amendment, extension, or
renewal of existing obligations; and
(B) notwithstanding the repeal of such
Act, the Secretary may, in accordance with sub-
section (d), issue regulations and other guid-
ance and directives as if such Act were in effect
if the Secretary finds that such action is nec-
essary to facilitate the administration of obliga-
tions under such Act.
(2) TRANSITION
OF
FUNDING.—Amounts ap-
propriated under the United States Housing Act of
1937 shall, upon repeal of such Act, remain avail-
able for obligation under such Act in accordance
with the terms under which amounts were made
available.
(3) CROSS
REFERENCES.—The provisions of
the United States Housing Act of 1937 shall remain
in effect for purposes of the validity of any reference
to a provision of such Act in any statute (other than
such Act) until such reference is modified by law or
repealed.
257
(d) PUBLICATION AND EFFECTIVE DATE OF NO-
TICES OF DELAY.—
(1) SUBMISSION TO CONGRESS.—The Secretary
shall submit to the Committee on Banking and Fi-
nancial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate a copy of any proposed notice
under subsection (a)(2) or any proposed regulation,
guidance, or directive under subsection (c)(1)(B).
(2) OPPORTUNITY TO REVIEW.—Such a regula-
tion, notice, guidance, or directive may not be pub-
lished for comment or for final effectiveness before
or during the 15-calendar day period beginning on
the day after the date on which such regulation, no-
tice, guidance, or directive was submitted to the
Congress.
(3) EFFECTIVE DATE.—No regulation, notice,
guideline, or directive may become effective until
after the expiration of the 30-calendar day period
beginning on the day after the day on which such
rule or regulation is published as final.
(4) WAIVER.—The provisions of paragraphs (2)
and (3) may be waived upon the written request of
the Secretary, if agreed to by the Chairmen and
Ranking Minority Members of both Committees.
258
(e) MODIFICATIONS.—Notwithstanding any provision
of this Act or any annual contributions contract or other
agreement entered into by the Secretary and a public
housing agency pursuant to the provisions of the United
States Housing Act of 1937 (as in effect before the effec-
tive date of this Act), the Secretary and the agency may
by mutual consent amend, supersede, or modify any such
agreement as appropriate to provide for assistance under
this Act, except that the Secretary and the agency may
not consent to any such amendment, supersession, or
modification that substantially alters any outstanding obli-
gations requiring continued maintenance of the low-in-
come character of any public housing development and any
such amendment, supersession, or modification shall not
be given effect.
(f) SECTION 8 PROJECT-BASED ASSISTANCE.—
(1) IN GENERAL.—The provisions of the United
States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) shall remain in effect after the effectiveness of
the repeal under subsection (b) with respect to all
section 8 project-based assistance, pursuant to exist-
ing and future contracts, except as otherwise pro-
vided by this section.
(2) TENANT
SELECTION
PREFERENCES.—An
owner of housing assisted with section 8 project-
259
based assistance shall give preference, in the selec-
tion of tenants for units of such projects that be-
come available, according to any system of local
preferences established pursuant to section 223 by
the public housing agency having jurisdiction for the
area in which such projects are located.
(3) 1-YEAR
NOTIFICATION.—Paragraphs (9)
and (10) of section 8(c) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(c)) shall not be
applicable to section 8 project-based assistance.
(4) LEASE TERMS.—Leases for dwelling units
assisted with section 8 project-based assistance shall
comply with the provisions of paragraphs (1) and
(3) of section 324 of this Act and shall not be sub-
ject to the provisions of 8(d)(1)(B) of the United
States Housing Act of 1937.
(5) TERMINATION
OF
TENANCY.—Any termi-
nation of tenancy of a resident of a dwelling unit as-
sisted with section 8 project-based assistance shall
comply with the provisions of section 324(2) and
section 325 of this Act and shall not be subject to
the provisions of section 8(d)(1)(B) of the United
States Housing Act of 1937.
260
(6) DEFINITION.—For purposes of this sub-
section, the term ‘‘section 8 project-based assist-
ance’’ means assistance under any of the following
programs:
(A) The new construction or substantial
rehabilitation program under section 8(b)(2) of
the United States Housing Act of 1937 (as in
effect before October 1, 1983).
(B) The property disposition program
under section 8(b) of the United States Hous-
ing Act of 1937 (as in effect before the effective
date of this Act).
(C) The loan management set-aside pro-
gram under subsections (b) and (v) of section
8 of such Act.
(D) The project-based certificate program
under section 8(d)(2) of such Act.
(E) The moderate rehabilitation program
under section 8(e)(2) of the United States
Housing Act of 1937 (as in effect before Octo-
ber 1, 1991).
(F) The low-income housing preservation
program under Low-Income Housing Preserva-
tion and Resident Homeownership Act of 1990
or the provisions of the Emergency Low Income
261
Housing Preservation Act of 1987 (as in effect
before November 28, 1990).
(G) Section 8 of the United States Hous-
ing Act of 1937 (as in effect before the effective
date of this Act), following conversion from as-
sistance under section 101 of the Housing and
Urban Development Act of 1965 or section
236(f)(2) of the National Housing Act.
(g) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 602. OTHER REPEALS.
(a) IN GENERAL.—The following provisions of law
are hereby repealed:
(1) ASSISTED HOUSING ALLOCATION.—Section
213 of the Housing and Community Development
Act of 1974 (42 U.S.C. 1439).
(2) PUBLIC HOUSING RENT WAIVERS FOR PO-
LICE.—Section 519 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437a–1).
(3) TREATMENT OF CERTIFICATE AND VOUCH-
ER HOLDERS.—Subsection (c) of section 183 of the
Housing and Community Development Act of 1987
(42 U.S.C. 1437f note).
(4) EXCESSIVE
RENT
BURDEN
DATA.—Sub-
section (b) of section 550 of the Cranston-Gonzalez
262
National Affordable Housing Act (42 U.S.C. 1437f
note).
(5) MOVING TO OPPORTUNITY FOR FAIR HOUS-
ING.—Section 152 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).
(6) REPORT REGARDING FAIR HOUSING OBJEC-
TIVES.—Section 153 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).
(7) SPECIAL
PROJECTS
FOR
ELDERLY
OR
HANDICAPPED FAMILIES.—Section 209 of the Hous-
ing and Community Development Act of 1974 (42
U.S.C. 1438).
(8) ACCESS TO PHA BOOKS.—Section 816 of
the Housing Act of 1954 (42 U.S.C. 1435).
(9) MISCELLANEOUS PROVISIONS.—Subsections
(b)(1), (c), and (d) of section 326 of the Housing
and Community Development Amendments of 1981
(Public Law 97–35, 95 Stat. 406; 42 U.S.C. 1437f
note).
(10) 
PAYMENT
FOR
DEVELOPMENT
MAN-
AGERS.—Section 329A of the Housing and Commu-
nity Development Amendments of 1981 (42 U.S.C.
1437j–1).
(11) 
PROCUREMENT
OF
INSURANCE
BY
PHA’S.—In the item relating to ‘‘ADMINISTRATIVE
263
PROVISIONS’’ under the heading ‘‘MANAGEMENT
AND ADMINISTRATION’’ in title II of the Depart-
ments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropria-
tions Act, 1991, the penultimate undesignated para-
graph of such item (Public Law 101–507; 104 Stat.
1369).
(12) PUBLIC HOUSING CHILDHOOD DEVELOP-
MENT.—Section 222 of the Housing and Urban-
Rural Recovery Act of 1983 (12 U.S.C. 1701z–6
note).
(13) INDIAN HOUSING CHILDHOOD DEVELOP-
MENT.—Section 518 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (12 U.S.C. 1701z–6
note).
(14) PUBLIC HOUSING COMPREHENSIVE TRAN-
SITION DEMONSTRATION.—Section 126 of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 1437f note).
(15) PUBLIC
HOUSING
ONE-STOP
PERINATAL
SERVICES
DEMONSTRATION.—Section 521 of the
Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437t note).
264
(16) PUBLIC
HOUSING
MINCS
DEMONSTRA-
TION.—Section 522 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437f
note).
(17) PUBLIC
HOUSING
ENERGY
EFFICIENCY
DEMONSTRATION.—Section 523 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 1437g note).
(18) OMAHA
HOMEOWNERSHIP
DEMONSTRA-
TION.—Section 132 of the Housing and Community
Development Act of 1992 (Public Law 102–550;
106 Stat. 3712).
(19) PUBLIC AND ASSISTED HOUSING YOUTH
SPORTS PROGRAMS.—Section 520 of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 11903a).
(20) FROST-LELAND PROVISIONS.—Section 415
of the Department of Housing and Urban Develop-
ment—Independent Agencies Appropriations Act,
1988 (Public Law 100–202; 101 Stat. 1329–213);
except that, notwithstanding any other provision of
law, beginning on the date of enactment of this Act,
the public housing projects described in section 415
of such Appropriations Act (as such section existed
265
immediately before the date of enactment of this
Act) shall be eligible for demolition—
(A) under section 14 of the United States
Housing Act of 1937 (as such section existed
upon the enactment of this Act); and
(B) under section 9 of the United States
Housing Act of 1937.
(21) CONFLICTS OF INTEREST.—Subsection (c)
of section 326 of the Housing and Community De-
velopment Amendments of 1981 (42 U.S.C. 1437f
note).
(22) CONVERSION OF PUBLIC HOUSING.—Sec-
tion 202 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l
note) (enacted as section 101(e) of Omnibus Con-
solidated Rescissions and Appropriations Act of
1996 (Public Law 104–134; 110 Stat. 1321–279)).
(b) SAVINGS PROVISION.—Except to the extent oth-
erwise provided in this Act—
(1) the repeals made by subsection (a) shall not
affect any legally binding obligations entered into be-
fore the effective date of this Act; and
(2) any funds or activities subject to a provision
of law repealed by subsection (a) shall continue to
266
be governed by the provision as in effect immediately
before such repeal.
Subtitle B—Other Provisions Relat-
ing to Public Housing and Rent-
al Assistance Programs
SEC. 621. ALLOCATION OF ELDERLY HOUSING AMOUNTS.
Section 202(l) of the Housing Act of 1959 (12 U.S.C.
1701q(l)) is amended by adding at the end the following
new paragraph:
‘‘(4) CONSIDERATION IN ALLOCATING ASSIST-
ANCE.—Assistance under this section shall be allo-
cated in a manner that ensures that the awards of
the assistance are made for projects of sufficient size
to accommodate facilities for supportive services ap-
propriate to the needs of frail elderly residents.’’.
SEC. 622. PET OWNERSHIP.
Section 227 of the Housing and Urban-Rural Recov-
ery Act of 1983 (12 U.S.C. 1701r–1) is amended to read
as follows:
‘‘SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENT-
AL HOUSING.
‘‘(a) RIGHT OF OWNERSHIP.—A resident of a dwell-
ing unit in federally assisted rental housing may own com-
mon household pets or have common household pets
present in the dwelling unit of such resident, subject to
267
the reasonable requirements of the owner of the federally
assisted rental housing. Such reasonable requirements
may include requiring payment of a nominal fee and secu-
rity deposit by residents owning or having pets present,
to cover the operating costs to the project relating to the
presence of pets and to establish an escrow account for
additional such costs not otherwise covered, respectively.
Notwithstanding section 225(d) of the Housing Oppor-
tunity and Responsibility Act of 1997, a public housing
agency may not grant any exemption under such section
from payment, in whole or in part, of any fee or deposit
required pursuant to the preceding sentence.
‘‘(b) PROHIBITION AGAINST DISCRIMINATION.—No
owner of federally assisted rental housing may restrict or
discriminate against any person in connection with admis-
sion to, or continued occupancy of, such housing by reason
of the ownership of common household pets by, or the
presence of such pets in the dwelling unit of, such person.
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) FEDERALLY
ASSISTED
RENTAL
HOUS-
ING.—The term ‘federally assisted rental housing’
means any multifamily rental housing project that
is—
268
‘‘(A) public housing (as such term is de-
fined in section 103 of the Housing Oppor-
tunity and Responsibility Act of 1997);
‘‘(B) assisted with project-based assistance
pursuant to section 601(f) of the Housing Op-
portunity and Responsibility Act of 1997 or
under section 8 of the United States Housing
Act of 1937 (as in effect before the effective
date of this Act);
‘‘(C) assisted under section 202 of the
Housing Act of 1959 (as amended by section
801 of the Cranston-Gonzalez National Afford-
able Housing Act);
‘‘(D) assisted under section 202 of the
Housing Act of 1959 (as in effect before the en-
actment of the Cranston-Gonzalez National Af-
fordable Housing Act);
‘‘(E) assisted under title V of the Housing
Act of 1949; or
‘‘(F) insured, assisted, or held by the Sec-
retary or a State or State agency under section
236 of the National Housing Act.
‘‘(2) OWNER.—The term ‘owner’ means, with
respect to federally assisted rental housing, the en-
tity or private person, including a cooperative or
269
public housing agency, that has the legal right to
lease or sublease dwelling units in such housing (in-
cluding a manager of such housing having such
right).
‘‘(d) REGULATIONS.—This section shall take effect
upon the date of the effectiveness of regulations issued by
the Secretary to carry out this section. Such regulations
shall be issued after notice and opportunity for public
comment in accordance with the procedure under section
553 of title 5, United States Code, applicable to sub-
stantive rules (notwithstanding subsections (a)(2), (b)(B),
and (d)(3) of such section).’’.
SEC. 623. REVIEW OF DRUG ELIMINATION PROGRAM CON-
TRACTS.
(a) REQUIREMENT.—The Secretary of Housing and
Urban Development shall investigate all security contracts
awarded by grantees under the Public and Assisted Hous-
ing Drug Elimination Act of 1990 (42 U.S.C. 11901 et
seq.) that are public housing agencies that own or operate
more than 4,500 public housing dwelling units—
(1) to determine whether the contractors under
such contracts have complied with all laws and regu-
lations regarding prohibition of discrimination in
hiring practices;
270
(2) to determine whether such contracts were
awarded in accordance with the applicable laws and
regulations regarding the award of such contracts;
(3) to determine how many such contracts were
awarded under emergency contracting procedures;
(4) to evaluate the effectiveness of the con-
tracts; and
(5) to provide a full accounting of all expenses
under the contracts.
(b) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Secretary shall complete
the investigation required under subsection (a) and submit
a report to the Congress regarding the findings under the
investigation. With respect to each such contract, the re-
port shall (1) state whether the contract was made and
is operating, or was not made or is not operating, in full
compliance with applicable laws and regulations, and (2)
for each contract that the Secretary determines is in such
compliance issue a personal certification of such compli-
ance by the Secretary of Housing and Urban Develop-
ment.
(c) ACTIONS.—For each contract that is described in
the report under subsection (b) as not made or not operat-
ing in full compliance with applicable laws and regulations,
the Secretary of Housing and Urban Development shall
271
promptly take any actions available under law or regula-
tion that are necessary—
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 624. AMENDMENTS TO PUBLIC AND ASSISTED HOUS-
ING DRUG ELIMINATION ACT OF 1990.
(a) SHORT TITLE, PURPOSES, AND AUTHORITY TO
MAKE GRANTS.—Chapter 2 of subtitle C of title V of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.)
is amended by striking the chapter heading and all that
follows through section 5123 and inserting the following:
‘‘CHAPTER 2—COMMUNITY
PARTNERSHIPS AGAINST CRIME
‘‘SEC. 5121. SHORT TITLE.
‘‘This chapter may be cited as the ‘Community Part-
nerships Against Crime Act of 1997’.
‘‘SEC. 5122. PURPOSES.
‘‘The purposes of this chapter are to—
‘‘(1) improve the quality of life for the vast ma-
jority of law-abiding public housing residents by re-
ducing the levels of fear, violence, and crime in their
communities;
272
‘‘(2) broaden the scope of the Public and As-
sisted Housing Drug Elimination Act of 1990 to
apply to all types of crime, and not simply crime
that is drug-related; and
‘‘(3) reduce crime and disorder in and around
public housing through the expansion of community-
oriented policing activities and problem solving.
‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.
‘‘The Secretary of Housing and Urban Development
may make grants in accordance with the provisions of this
chapter for use in eliminating crime in and around public
housing and other federally assisted low-income housing
projects to (1) public housing agencies, and (2) private,
for-profit and nonprofit owners of federally assisted low-
income housing.’’.
(b) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.—Section 5124(a) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is
amended—
(A) in the matter preceding paragraph (1),
by inserting ‘‘and around’’ after ‘‘used in’’;
(B) in paragraph (3), by inserting before
the semicolon the following: ‘‘, including fenc-
ing, lighting, locking, and surveillance systems’’;
273
(C) in paragraph (4), by striking subpara-
graph (A) and inserting the following new sub-
paragraph:
‘‘(A) to investigate crime; and’’;
(D) in paragraph (6)—
(i) by striking ‘‘in and around public
or other federally assisted low-income
housing projects’’; and
(ii) by striking ‘‘and’’ after the semi-
colon; and
(E) by striking paragraph (7) and insert-
ing the following new paragraphs:
‘‘(7) providing funding to nonprofit public hous-
ing resident management corporations and resident
councils to develop security and crime prevention
programs involving site residents;
‘‘(8) the employment or utilization of one or
more individuals, including law enforcement officers,
made available by contract or other cooperative ar-
rangement with State or local law enforcement agen-
cies, to engage in community- and problem-oriented
policing involving interaction with members of the
community in proactive crime control and prevention
activities;
274
‘‘(9) programs and activities for or involving
youth, including training, education, recreation and
sports, career planning, and entrepreneurship and
employment activities and after school and cultural
programs; and
‘‘(10) service programs for residents that ad-
dress the contributing factors of crime, including
programs for job training, education, drug and alco-
hol treatment, and other appropriate social serv-
ices.’’.
(2) OTHER
PHA-OWNED
HOUSING.—Section
5124(b) of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11903(b)) is amended—
(A) in the matter preceding paragraph
(1)—
(i) by striking ‘‘drug-related crime in’’
and inserting ‘‘crime in and around’’; and
(ii) 
by 
striking 
‘‘paragraphs 
(1)
through (7)’’ and inserting ‘‘paragraphs
(1) through (10)’’; and
(B) in paragraph (2), by striking ‘‘drug-re-
lated’’ and inserting ‘‘criminal’’.
(c) GRANT PROCEDURES.—Section 5125 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended
to read as follows:
275
‘‘SEC. 5125. GRANT PROCEDURES.
‘‘(a) PHA’S WITH 250 OR MORE UNITS.—
‘‘(1) GRANTS.—In each fiscal year, the Sec-
retary shall make a grant under this chapter from
any amounts available under section 5131(b)(1) for
the fiscal year to each of the following public hous-
ing agencies:
‘‘(A) 
NEW
APPLICANTS.—Each 
public
housing agency that owns or operates 250 or
more public housing dwelling units and has—
‘‘(i) submitted an application to the
Secretary for a grant for such fiscal year,
which includes a 5-year crime deterrence
and reduction plan under paragraph (2);
and
‘‘(ii) had such application and plan
approved by the Secretary.
‘‘(B) RENEWALS.—Each public housing
agency that owns or operates 250 or more pub-
lic housing dwelling units and for which—
‘‘(i) a grant was made under this
chapter for the preceding Federal fiscal
year;
‘‘(ii) the term of the 5-year crime de-
terrence and reduction plan applicable to
such grant includes the fiscal year for
276
which the grant under this subsection is to
be made; and
‘‘(iii) the Secretary has determined,
pursuant to a performance review under
paragraph (4), that during the preceding
fiscal year the agency has substantially ful-
filled the requirements under subpara-
graphs (A) and (B) of paragraph (4).
‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC-
TION
PLAN.—Each application for a grant under
this subsection shall contain a 5-year crime deter-
rence and reduction plan. The plan shall be devel-
oped with the participation of residents and appro-
priate law enforcement officials. The plan shall de-
scribe, for the public housing agency submitting the
plan—
‘‘(A) the nature of the crime problem in
public housing owned or operated by the public
housing agency;
‘‘(B) the building or buildings of the public
housing agency affected by the crime problem;
‘‘(C) the impact of the crime problem on
residents of such building or buildings; and
‘‘(D) the actions to be taken during the
term of the plan to reduce and deter such
277
crime, which shall include actions involving resi-
dents, law enforcement, and service providers.
The term of a plan shall be the period consisting of
5 consecutive fiscal years, which begins with the first
fiscal year for which funding under this chapter is
provided to carry out the plan.
‘‘(3) AMOUNT.—In any fiscal year, the amount
of the grant for a public housing agency receiving a
grant pursuant to paragraph (1) shall be the
amount that bears the same ratio to the total
amount made available under section 5131(b)(1) as
the total number of public dwelling units owned or
operated by such agency bears to the total number
of dwelling units owned or operated by all public
housing agencies that own or operate 250 or more
public housing dwelling units that are approved for
such fiscal year.
‘‘(4) PERFORMANCE REVIEW.—For each fiscal
year, the Secretary shall conduct a performance re-
view of the activities carried out by each public
housing agency receiving a grant pursuant to this
subsection to determine whether the agency—
‘‘(A) has carried out such activities in a
timely manner and in accordance with its 5-
year crime deterrence and reduction plan; and
278
‘‘(B) has a continuing capacity to carry
out such plan in a timely manner.
‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec-
retary shall establish such deadlines and require-
ments for submission of applications under this sub-
section.
‘‘(6) REVIEW AND DETERMINATION.—The Sec-
retary shall review each application submitted under
this subsection upon submission and shall approve
the application unless the application and the 5-year
crime deterrence and reduction plan are inconsistent
with the purposes of this chapter or any require-
ments established by the Secretary or the informa-
tion in the application or plan is not substantially
complete. Upon approving or determining not to ap-
prove an application and plan submitted under this
subsection, the Secretary shall notify the public
housing agency submitting the application and plan
of such approval or disapproval.
‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the
Secretary notifies an agency that the application and
plan of the agency is not approved, not later than
the expiration of the 15-day period beginning upon
such notice of disapproval, the Secretary shall also
notify the agency, in writing, of the reasons for the
279
disapproval, the actions that the agency could take
to comply with the criteria for approval, and the
deadlines for such actions.
‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—
If the Secretary fails to notify an agency of approval
or disapproval of an application and plan submitted
under this subsection before the expiration of the
60-day period beginning upon the submission of the
plan or fails to provide notice under paragraph (7)
within the 15-day period under such paragraph to
an agency whose application has been disapproved,
the application and plan shall be considered to have
been approved for purposes of this section.
‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND
OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS-
ING.—
‘‘(1) APPLICATIONS AND PLANS.—To be eligible
to receive a grant under this chapter, a public hous-
ing agency that owns or operates fewer than 250
public housing dwelling units or an owner of feder-
ally assisted low-income housing shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and accompanied by such additional information
as the Secretary may require. The application shall
include a plan for addressing the problem of crime
280
in and around the housing for which the application
is submitted, describing in detail activities to be con-
ducted during the fiscal year for which the grant is
requested.
‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN
250 UNITS.—In each fiscal year the Secretary may,
to the extent amounts are available under section
5131(b)(2), make grants under this chapter to pub-
lic housing agencies that own or operate fewer than
250 public housing dwelling units and have submit-
ted applications under paragraph (1) that the Sec-
retary has approved pursuant to the criteria under
paragraph (4).
‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW-
INCOME HOUSING.—In each fiscal year the Secretary
may, to the extent amounts are available under sec-
tion 5131(b)(3), make grants under this chapter to
owners of federally assisted low-income housing that
have submitted applications under paragraph (1)
that the Secretary has approved pursuant to the cri-
teria under paragraphs (4) and (5).
‘‘(4) CRITERIA
FOR
APPROVAL
OF
APPLICA-
TIONS.—The Secretary shall determine whether to
approve each application under this subsection on
the basis of—
281
‘‘(A) the extent of the crime problem in
and around the housing for which the applica-
tion is made;
‘‘(B) the quality of the plan to address the
crime problem in the housing for which the ap-
plication is made;
‘‘(C) the capability of the applicant to
carry out the plan; and
‘‘(D) the extent to which the tenants of the
housing, the local government, local community-
based nonprofit organizations, local tenant or-
ganizations representing residents of neighbor-
ing projects that are owned or assisted by the
Secretary, and the local community support and
participate in the design and implementation of
the activities proposed to be funded under the
application.
In each fiscal year, the Secretary may give pref-
erence to applications under this subsection for
housing made by applicants who received a grant for
such housing for the preceding fiscal year under this
subsection or under the provisions of this chapter as
in effect immediately before the date of the enact-
ment of the Housing Opportunity and Responsibility
Act of 1997.
282
‘‘(5) ADDITIONAL
CRITERIA
FOR
FEDERALLY
ASSISTED
LOW-INCOME
HOUSING.—In addition to
the selection criteria under paragraph (4), the Sec-
retary may establish other criteria for evaluating ap-
plications submitted by owners of federally assisted
low-income housing, except that such additional cri-
teria shall be designed only to reflect—
‘‘(A) relevant differences between the fi-
nancial resources and other characteristics of
public housing agencies and owners of federally
assisted low-income housing; or
‘‘(B) relevant differences between the prob-
lem of crime in public housing administered by
such authorities and the problem of crime in
federally assisted low-income housing.’’.
(d) DEFINITIONS.—Section 5126 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11905) is amended—
(1) by striking paragraphs (1) and (2);
(2) in paragraph (4)(A), by striking ‘‘section’’
before ‘‘221(d)(4)’’;
(3) by redesignating paragraphs (3) and (4) (as
so amended) as paragraphs (1) and (2), respectively;
and
(4) by adding at the end the following new
paragraph:
283
‘‘(3) PUBLIC
HOUSING
AGENCY.—The term
‘public housing agency’ has the meaning given the
term in section 103 of the Housing Opportunity and
Responsibility Act of 1997.’’.
(e) IMPLEMENTATION.—Section 5127 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended
by striking ‘‘Cranston-Gonzalez National Affordable
Housing Act’’ and inserting ‘‘Housing Opportunity and
Responsibility Act of 1997’’.
(f) REPORTS.—Section 5128 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11907) is amended—
(1) by striking ‘‘drug-related crime in’’ and in-
serting ‘‘crime in and around’’; and
(2) by striking ‘‘described in section 5125(a)’’
and inserting ‘‘for the grantee submitted under sub-
section (a) or (b) of section 5125, as applicable’’.
(g) FUNDING AND PROGRAM SUNSET.—Chapter 2 of
subtitle C of title V of the Anti-Drug Abuse Act of 1988
is amended by striking section 5130 (42 U.S.C. 11909)
and inserting the following new section:
‘‘SEC. 5130. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this chapter
$290,000,000 for each of fiscal years 1998 and 1999.
284
‘‘(b) ALLOCATION.—Of any amounts available, or
that the Secretary is authorized to use, to carry out this
chapter in any fiscal year—
‘‘(1) 85 percent shall be available only for as-
sistance pursuant to section 5125(a) to public hous-
ing agencies that own or operate 250 or more public
housing dwelling units;
‘‘(2) 10 percent shall be available only for as-
sistance pursuant to section 5125(b)(2) to public
housing agencies that own or operate fewer than 250
public housing dwelling units; and
‘‘(3) 5 percent shall be available only for assist-
ance to federally assisted low-income housing pursu-
ant to section 5125(b)(3).’’.
(h) CONFORMING AMENDMENTS.—The table of con-
tents in section 5001 of the Anti-Drug Abuse Act of 1988
(Public Law 100–690; 102 Stat. 4295) is amended—
(1) by striking the item relating to the heading
for chapter 2 of subtitle C of title V and inserting
the following:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;
(2) by striking the item relating to section 5122
and inserting the following new item:
‘‘Sec. 5122. Purposes.’’;
285
(3) by striking the item relating to section 5125
and inserting the following new item:
‘‘Sec. 5125. Grant procedures.’’;
and
(4) by striking the item relating to section 5130
and inserting the following new item:
‘‘Sec. 5130. Funding.’’.
(i) TREATMENT OF NOFA.—The cap limiting assist-
ance under the Notice of Funding Availability issued by
the Department of Housing and Urban Development in
the Federal Register of April 8, 1996, shall not apply to
a public housing agency within an area designated as a
high intensity drug trafficking area under section 1005(c)
of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1504(c)).
(j) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date
of the enactment of this Act.
Subtitle C—Limitations Relating to
Occupancy in Federally Assisted
Housing
SEC. 641. SCREENING OF APPLICANTS.
(a) INELIGIBILITY BECAUSE
OF EVICTION.—Any
household or member of a household evicted from federally
assisted housing (as such term is defined in section 645)
shall not be eligible for federally assisted housing—
286
(1) in the case of eviction by reason of drug-re-
lated criminal activity, for a period of not less than
3 years that begins on the date of such eviction, un-
less the evicted member of the household successfully
completes a rehabilitation program; and
(2) in the case of an eviction for other serious
violations of the terms or conditions of the lease, for
a reasonable period of time, as determined by the
public housing agency or owner of the federally as-
sisted housing, as applicable.
The requirements of paragraphs (1) and (2) may be
waived if the circumstances leading to eviction no longer
exist.
(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND
ALCOHOL USERS.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, a public housing agency or an
owner of federally assisted housing, or both, as de-
termined by the Secretary, shall establish standards
that prohibit admission to the program or admission
to federally assisted housing for any household with
a member—
(A) who the public housing agency or
owner determines is engaging in the illegal use
of a controlled substance; or
287
(B) with respect to whom the public hous-
ing agency or owner determines that it has rea-
sonable cause to believe that such household
member’s illegal use (or pattern of illegal use)
of a controlled substance, or abuse (or pattern
of abuse) of alcohol, would interfere with the
health, safety, or right to peaceful enjoyment of
the premises by other residents.
(2) CONSIDERATION OF REHABILITATION.—In
determining whether, pursuant to paragraph (1)(B),
to deny admission to the program or to federally as-
sisted housing to any household based on a pattern
of illegal use of a controlled substance or a pattern
of abuse of alcohol by a household member, a public
housing agency or an owner may consider whether
such household member—
(A) has successfully completed an accred-
ited drug or alcohol rehabilitation program (as
applicable) and is no longer engaging in the ille-
gal use of a controlled substance or abuse of al-
cohol (as applicable);
(B) has otherwise been rehabilitated suc-
cessfully and is no longer engaging in the illegal
use of a controlled substance or abuse of alco-
hol (as applicable); or
288
(C) is participating in an accredited drug
or alcohol rehabilitation program (as applicable)
and is no longer engaging in the illegal use of
a controlled substance or abuse of alcohol (as
applicable).
(c) AUTHORITY TO DENY ADMISSION TO CRIMINAL
OFFENDERS.—Except as provided in subsections (a) and
(b) and in addition to any other authority to screen appli-
cants, in selecting among applicants for admission to the
program or to federally assisted housing, if the public
housing agency or owner of such housing (as applicable)
determines that an applicant or any member of the appli-
cant’s household is or was, during a reasonable time pre-
ceding the date when the applicant household would other-
wise be selected for admission, engaged in any criminal
activity (including drug-related criminal activity), the pub-
lic housing agency or owner may—
(1) deny such applicant admission to the pro-
gram or to federally assisted housing;
(2) consider the applicant (for purposes of any
waiting list) as not having applied for the program
or such housing; and
(3) after the expiration of the reasonable period
beginning upon such activity, require the applicant,
as a condition of admission to the program or to
289
federally assisted housing, to submit to the public
housing agency or owner evidence sufficient (as the
Secretary shall by regulation provide) to ensure that
the individual or individuals in the applicant’s house-
hold who engaged in criminal activity for which de-
nial was made under paragraph (1) have not en-
gaged in any criminal activity during such reason-
able period.
(d) AUTHORITY TO REQUIRE ACCESS TO CRIMINAL
RECORDS.—A public housing agency and an owner of fed-
erally assisted housing may require, as a condition of pro-
viding admission to the program or admission to or occu-
pancy in federally assisted housing, that each adult mem-
ber of the household provide a signed, written authoriza-
tion for the public housing agency to obtain the records
described in section 644(a) regarding such member of the
household from the National Crime Information Center,
police departments, and other law enforcement agencies.
In the case of an owner of federally assisted housing that
is not a public housing agency, the owner shall request
the public housing agency having jurisdiction over the area
within which the housing is located to obtain the records
pursuant to section 644.
(e) ADMISSION BASED ON DISABILITY.—
290
(1) IN GENERAL.—Notwithstanding any other
provision of law, for purposes of determining eligi-
bility for admission to federally assisted housing, a
person shall not be considered to have a disability or
a handicap solely because of the prior or current ille-
gal use of a controlled substance (as defined in sec-
tion 102 of the Controlled Substances Act) or solely
by reason of the prior or current use of alcohol.
(2) CONTINUED OCCUPANCY.—This subsection
may not be construed to prohibit the continued occu-
pancy of any person who is a resident in assisted
housing on the effective date of this Act.
SEC. 642. TERMINATION OF TENANCY AND ASSISTANCE
FOR ILLEGAL DRUG USERS AND ALCOHOL
ABUSERS.
Notwithstanding any other provision of law, a public
housing agency or an owner of federally assisted housing
(as applicable), shall establish standards or lease provi-
sions for continued assistance or occupancy in federally
assisted housing that allow the agency or owner (as appli-
cable) to terminate the tenancy or assistance for any
household with a member—
(1) who the public housing agency or owner de-
termines is engaging in the illegal use of a controlled
substance; or
291
(2) whose illegal use of a controlled substance,
or whose abuse of alcohol, is determined by the pub-
lic housing agency or owner to interfere with the
health, safety, or right to peaceful enjoyment of the
premises by other residents.
SEC. 643. LEASE REQUIREMENTS.
In addition to any other applicable lease require-
ments, each lease for a dwelling unit in federally assisted
housing shall provide that—
(1) the owner may not terminate the tenancy
except for violation of the terms or conditions of the
lease, violation of applicable Federal, State, or local
law, or for other good cause; and
(2) grounds for termination of tenancy shall in-
clude any activity, engaged in by the tenant, any
member of the tenant’s household, any guest, or any
other person under the control of any member of the
household, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other tenant or employees of the owner or other
manager of the housing;
(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises
292
by, persons residing in the immediate vicinity of
the premises; or
(C) is criminal activity (including drug-re-
lated criminal activity) on or off the premises.
SEC. 644. AVAILABILITY OF CRIMINAL RECORDS FOR TEN-
ANT SCREENING AND EVICTION.
(a) IN GENERAL.—
(1) PROVISION
OF
INFORMATION.—Notwith-
standing any other provision of law other than para-
graphs (2) and (3), upon the request of a public
housing agency, the National Crime Information
Center, a police department, and any other law en-
forcement agency shall provide to the public housing
agency information regarding the criminal conviction
records of an adult applicant for, or tenants of, the
federally assisted housing for purposes of applicant
screening, lease enforcement, and eviction, but only
if the public housing agency requests such informa-
tion and presents to such Center, department, or
agency a written authorization, signed by such appli-
cant, for the release of such information to the pub-
lic housing agency or another owner of federally as-
sisted housing.
(2) DELAYED EFFECTIVE DATE FOR OWNERS
OTHER THAN PHA’S.—The provisions of paragraph
293
(1) authorizing obtaining information for owners of
federally assisted housing other than public housing
agencies shall not take effect before—
(A) the expiration of the 1-year period be-
ginning on the date of enactment of this Act;
and
(B) the Secretary and the Attorney Gen-
eral of the United States have determined that
access to such information is feasible for such
owners and have provided for the terms of re-
lease of such information to owners.
(3) EXCEPTION.—The information provided
under paragraphs (1) and (2) shall include informa-
tion regarding any criminal conviction of a juvenile
only to the extent that the release of such informa-
tion is authorized under the law of the applicable
State, tribe, or locality.
(b) CONFIDENTIALITY.—A public housing agency or
owner receiving information under this section may use
such information only for the purposes provided in this
section and such information may not be disclosed to any
person who is not an officer, employee, or authorized rep-
resentative of the agency or owner and who has a job-
related need to have access to the information in connec-
tion with admission of applicants, eviction of tenants, or
294
termination of assistance. For judicial eviction proceed-
ings, disclosures may be made to the extent necessary. The
Secretary shall, by regulation, establish procedures nec-
essary to ensure that information provided under this sec-
tion to a public housing agency or owner is used, and con-
fidentiality of such information is maintained, as required
under this section.
(c) OPPORTUNITY TO DISPUTE.—Before an adverse
action is taken with regard to assistance under for feder-
ally assisted housing on the basis of a criminal record, the
public housing agency or owner shall provide the tenant
or applicant with a copy of the criminal record and an
opportunity to dispute the accuracy and relevance of that
record.
(d) FEE.—A public housing agency may be charged
a reasonable fee for information provided under subsection
(a). A public housing agency may require an owner of fed-
erally assisted housing (that is not a public housing agen-
cy) to pay such fee for any information that the agency
acquires for the owner pursuant to section 641(d) and
subsection (a) of this section.
(e) RECORDS MANAGEMENT.—Each public housing
agency and owner of federally assisted housing that re-
ceives criminal record information pursuant to this section
295
shall establish and implement a system of records manage-
ment that ensures that any criminal record received by
the agency or owner is—
(1) maintained confidentially;
(2) not misused or improperly disseminated;
and
(3) destroyed in a timely fashion, once the pur-
pose for which the record was requested has been
accomplished.
(f) PENALTY.—Any person who knowingly and will-
fully requests or obtains any information concerning an
applicant for, or tenant of, federally assisted housing pur-
suant to the authority under this section under false pre-
tenses, or any person who knowingly and willfully discloses
any such information in any manner to any individual not
entitled under any law to receive it, shall be guilty of a
misdemeanor and fined not more than $5,000. The term
‘person’ as used in this subsection shall include an officer,
employee, or authorized representative of any public hous-
ing agency or owner.
(g) CIVIL ACTION.—Any applicant for, or tenant of,
federally assisted housing affected by (1) a negligent or
knowing disclosure of information referred to in this sec-
tion about such person by an officer, employee, or author-
ized representative of any public housing agency or owner
296
of federally assisted housing, which disclosure is not au-
thorized by this section, or (2) any other negligent or
knowing action that is inconsistent with this section, may
bring a civil action for damages and such other relief as
may be appropriate against any public housing agency or
owner responsible for such unauthorized action. The dis-
trict court of the United States in the district in which
the affected applicant or tenant resides, in which such un-
authorized action occurred, or in which the officer, em-
ployee, or representative alleged to be responsible for any
such unauthorized action resides, shall have jurisdiction
in such matters. Appropriate relief that may be ordered
by such district courts shall include reasonable attorney’s
fees and other litigation costs.
(h) DEFINITION.—For purposes of this section, the
term ‘‘adult’’ means a person who is 18 years of age or
older, or who has been convicted of a crime as an adult
under any Federal, State, or tribal law.
SEC. 645. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) 
FEDERALLY
ASSISTED
HOUSING.—The
term ‘‘federally assisted housing’’ means a dwelling
unit—
297
(A) in public housing (as such term is de-
fined in section 102);
(B) assisted with choice-based housing as-
sistance under title III;
(C) in housing that is provided project-
based assistance under section 8 of the United
States Housing Act of 1937 (as in effect before
the effective date of this Act) or pursuant to
section 601(f) of this Act, including new con-
struction and substantial rehabilitation projects;
(D) in housing that is assisted under sec-
tion 202 of the Housing Act of 1959 (as
amended by section 801 of the Cranston-Gon-
zalez National Affordable Housing Act);
(E) in housing that is assisted under sec-
tion 202 of the Housing Act of 1959, as such
section existed before the enactment of the
Cranston-Gonzalez National Affordable Hous-
ing Act;
(F) in housing that is assisted under sec-
tion 811 of the Cranston-Gonzalez National Af-
fordable Housing Act;
(G) in housing financed by a loan or mort-
gage insured under section 221(d)(3) of the
National Housing Act that bears interest at a
298
rate determined under the proviso of section
221(d)(5) of such Act;
(H) in housing insured, assisted, or held
by the Secretary or a State or State agency
under section 236 of the National Housing Act;
(I) for purposes only of subsections 641(c),
641(d), 643, and 644, in housing assisted
under section 515 of the Housing Act of 1949.
(2) OWNER.—The term ‘‘owner’’ means, with
respect to federally assisted housing, the entity or
private person (including a cooperative or public
housing agency) that has the legal right to lease or
sublease dwelling units in such housing.
TITLE VII—AFFORDABLE HOUS-
ING 
AND 
MISCELLANEOUS
PROVISIONS
SEC. 701. RURAL HOUSING ASSISTANCE.
The last sentence of section 520 of the Housing Act
of 1949 (42 U.S.C. 1490) is amended by inserting before
the period the following: ‘‘, and the city of Altus, Okla-
homa, shall be considered a rural area for purposes of this
title until the receipt of data from the decennial census
in the year 2000’’.
299
SEC. 702. TREATMENT OF OCCUPANCY STANDARDS.
(a) NATIONAL STANDARD PROHIBITED.—The Sec-
retary shall not directly or indirectly establish a national
occupancy standard.
(b) STATE STANDARD.—If a State establishes an oc-
cupancy standard, such standard shall be presumed rea-
sonable for the purpose of determining familial status dis-
crimination in residential rental dwellings.
(c) ABSENCE OF STATE STANDARD.—If a State fails
to establish an occupancy standard, an occupancy stand-
ard of 2 persons per bedroom plus infants that is estab-
lished by a housing provider shall be presumed reasonable
for the purpose of determining familial status discrimina-
tion in residential rental dwellings.
(d) DEFINITIONS.—
(1) OCCUPANCY STANDARD.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘‘occupancy stand-
ard’’ means a law, regulation, or housing pro-
vider policy that establishes a limit on the num-
ber of residents a housing provider can manage
in a dwelling for any 1 or more of the following
purposes:
(i) Providing a decent home and serv-
ices for each resident.