193
(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 agen-
cy, except that no such annual increase may ex-
ceed 10 percent of the amount of the minimum
monthly contribution in effect for the preceding
year.
(2) HARDSHIP PROVISIONS.—
(A) IN
GENERAL.—Notwithstanding para-
graph (1), a public housing agency shall grant
an exemption in whole or in part from payment
of the minimum monthly rental contribution es-
tablished under this paragraph to any assisted
family unable to pay such amount because of fi-
nancial hardship, which shall include situations
in which (i) the family has lost eligibility for or
is awaiting an eligibility determination for a
Federal, State, or local assistance program; (ii)
the family would be evicted as a result of imposi-
tion of the minimum rent; (iii) the income of the
family has decreased because of changed cir-
cumstance, including loss of employment; and
194
(iv) a death in the family has occurred; and
other situations as may be determined by the
agency.
(B) WAITING PERIOD.—If an assisted fam-
ily requests a hardship exemption under this
paragraph and the public housing agency rea-
sonably determines the hardship to be of a tem-
porary nature, an exemption shall not be grant-
ed during the 90-day period beginning upon the
making of a request for the exemption. An as-
sisted family may not be evicted during such 90-
day period for nonpayment of rent. In such a
case, if the assisted family thereafter dem-
onstrates that the financial hardship is of a
long-term basis, the agency shall retroactively ex-
empt the family from the applicability of the
minimum rent requirement for such 90-day pe-
riod.
(c) TREATMENT OF CHANGES IN RENTAL CONTRIBU-
TION.—
(1) NOTIFICATION OF CHANGES.—A public hous-
ing agency shall promptly notify the owner of an as-
sisted dwelling unit of any change in the resident
contribution by the assisted family residing in the
unit that takes effect immediately or at a later date.
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(2) COLLECTION OF RETROACTIVE CHANGES.—In
the case of any change in the rental contribution of
an assisted family that affects rental payments pre-
viously made, the public housing agency shall collect
any additional amounts required to be paid by the
family under such change directly from the family
and shall refund any excess rental contribution paid
by the family directly to the family.
(d) PHASE-IN OF RENT CONTRIBUTION INCREASES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), for any family that is receiving tenant-
based rental assistance under section 8 of the United
States Housing Act of 1937 upon the initial applica-
bility of the provisions of this title to such family, if
the monthly contribution for rental of an assisted
dwelling unit to be paid by the family upon such ini-
tial applicability is greater than the amount paid by
the family under the provisions of the United States
Housing Act of 1937 immediately before such applica-
bility, any such resulting increase in rent contribu-
tion 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 appli-
cability; and
196
(B) limited to not more than 10 percent per
year if such increase is more than 10 percent but
less than 30 percent of such contribution 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 sub-
section, notwithstanding such paragraph.
SEC. 323. RENTAL INDICATORS.
(a) IN GENERAL.—The Secretary shall establish and
issue rental indicators under this section periodically, but
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 indicator
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 qual-
ity 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 subsection (a)
for each market area to be published in the Federal Register
197
with reasonable time for public comment, and such rental
indicators shall become effective upon the date of publica-
tion 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 indicators will be
current for the year to which they apply, in rents for exist-
ing rental dwelling units of various sizes and types in the
market area suitable for occupancy by families assisted
under this title.
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 peri-
odic 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 sec-
tions 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
198
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.
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 agen-
cy.
(b) INELIGIBLE OWNERS.—
(1) IN
GENERAL.—Notwithstanding subsection
(a), a public housing agency—
(A) may not enter into a housing assistance
payments contract (or renew an existing con-
tract) covering a dwelling unit that is owned by