‘‘(B) AMOUNT OF MONTHLY ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents real property that is assisted under this
paragraph, and on which is located a manufac-
tured home that is owned by such family shall
be the difference between the rent the family is
required to pay under section 3(a) and the sum
of—
‘‘(i) the monthly payment made by
such family to amortize the cost of pur-
chasing the manufactured home;
‘‘(ii) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary;
and
‘‘(iii) the maximum monthly rent per-
mitted with respect to the real property
which is rented by such family for the pur-
pose of locating its manufactured home;
except that in no case may such assistance ex-
ceed the total amount of such maximum month-
ly rent.
‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC-
TURED HOME AND SITE.—
‘‘(A) MAXIMUM
MONTHLY
RENT.—Con-
tracts entered into pursuant to this paragraph
shall establish the maximum monthly rent per-
mitted with respect to the manufactured home
and the real property on which it is located and
with respect to which assistance payments are
to be made. The maximum monthly rent shall
not exceed by more than 10 percent the fair
market rental established by the Secretary peri-
odically (but not less than annually) with re-
spect to the market area for the rental of a
manufactured home and the real property on
which it is located suitable for occupancy by
families assisted under this paragraph; except
that the maximum monthly rent may exceed the
fair market rental by more than 10 but not
more than 20 percent if the Secretary deter-
mines that special circumstances warrant such
higher maximum rent.
‘‘(B) AMOUNT OF MONTHLY ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents a manufactured home and the real prop-
erty on which it is located and that is assisted
under this paragraph shall be the difference be-
tween the rent the family is required to pay
under section 3(a) and the sum of—
‘‘(i) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary;
and
‘‘(ii) the maximum monthly rent per-
mitted with respect to the manufactured
home and real property on which it is lo-
cated.
‘‘(5) ADJUSTMENT
OF
MAXIMUM
MONTHLY
RENTS.—The provisions of paragraphs (3) through
(7) of subsection (d) shall apply to the adjustments
of maximum monthly rents under this subsection.
‘‘(6) CONTRACT TERM.—Each contract entered
into under the subsection shall be for a term of not
less than one month and not more than 180 months;
except that in any case in which the manufactured
home park is substantially rehabilitated or newly
constructed, such term may not be less than 240
months, nor more than the maximum term for a
manufactured home loan permitted under section
2(b) of the National Housing Act.
‘‘(7) APPLICABILITY.—The Secretary may carry
out this subsection without regard to whether the
manufactured home park is existing, substantially
rehabilitated, or newly constructed.
‘‘(8) LIMITATION
ON
SUBSTANTIALLY
REHA-
BILITATED
AND
NEWLY
CONSTRUCTED
MANUFAC-
TURED HOME PARKS.—In the case of any substan-
tially rehabilitated or newly constructed manufac-
tured home park containing spaces with respect to
which assistance is made under this subsection, the
principal amount of the mortgage attributable to the
rental spaces within the park may not exceed an
amount established by the Secretary which is equal
to or less than the limitation for manufactured home
parks described in section 207(c)(3) of the National
Housing Act, and the Secretary may increase such
limitation in high cost areas in the manner described
in such section.
‘‘(9) OTHER
REQUIREMENTS.—The Secretary
may prescribe other terms and conditions necessary
for the purpose of carrying out this subsection and
that are consistent with the purposes of this sub-
section.
‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—
‘‘(1) AUTHORITY.—In making assistance avail-
able under this section and assistance under section
441 and part V of subtitle F of title IV of the Stew-
art B. McKinney Homeless Assistance Act, the Sec-
retary may provide assistance with respect to resi-
dential properties in which some or all of the dwell-
ing units do not contain bathroom or kitchen facili-
ties, if—
‘‘(A) the property is located in an area in
which there is a significant demand for such
units, as determined by the Secretary;
‘‘(B) the unit of general local government
in which the property is located and the local
public housing agency approve of such units
being utilized for such purpose; and
‘‘(C) the unit of general local government
in which the property is located and the local
public housing agency certify to the Secretary
that the property complies with local health and
safety standards.
‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE
FOR SINGLE PERSONS.—The Secretary may waive,
in appropriate cases, the limitation and preference in
section 3(b)(3)(A) with respect to the assistance
made available under this subsection.
‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI-
LIES.—
‘‘(1) SHARED HOUSING.—To assist elderly fam-
ilies and disabled families (as defined in section
3(b)) who elect to live in a shared housing arrange-
ment in which they benefit as a result of sharing the
facilities of a dwelling with others in a manner that
effectively and efficiently meets their housing needs
and thereby reduces their costs of housing, the Sec-
retary shall permit assistance provided under this
section to be used by such families in such arrange-
ments. In carrying out this subsection, the Secretary
shall issue minimum habitability standards for the
purpose of ensuring decent, safe, and sanitary hous-
ing for such families while taking into account the
special circumstances of shared housing.
‘‘(2) PRIORITY
FOR
NONELDERLY
DISABLED
FAMILIES.—In allocating assistance under this sec-
tion, a public housing agency that serves more than
one unit of general local government may, at the dis-
cretion of the agency, give priority to disabled fami-
lies that are not elderly families.
‘‘(3) AUTHORITY
TO
PROVIDE
PREFERENCES
FOR THE ELDERLY AND RESERVE UNITS FOR THE
DISABLED.—Notwithstanding subsection (h)(2) or
(3), an owner of a covered section 8 housing project
(as such term is defined in section 659 of the Hous-
ing and Community Development Act of 1992) may
give preference for occupancy of dwelling units in
the project, and reserve units for occupancy, in ac-
cordance with subtitle D of title VI of the Housing
and Community Development Act of 1992.
‘‘(n) ADMINISTRATIVE FEES.—
‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL
PROGRAM.—The Secretary shall establish a fee for
the costs incurred by a public housing agency in ad-
ministering the program for rental assistance under
this section, which shall be, together with other fees
authorized under this subsection, included in any
amounts provided to the public housing agency
under the annual contributions contract for the
agency. The amount of the fee for each month for
which a dwelling unit is covered by an assistance
contract shall be 8.2 percent of the fair market rent-
al established under subsection (e) for a 2-bedroom
existing rental dwelling unit in the market area of
the public housing agency. The Secretary may in-
crease the fee if necessary to reflect the higher costs
of administering small programs and programs oper-
ating over large geographic areas.
‘‘(2) OTHER FEES.—The Secretary shall also
establish reasonable fees (as determined by the Sec-
retary) for—
‘‘(A) the costs of preliminary expenses that
a public housing agency documents it has in-
curred in connection with new allocations of as-
sistance under the program for rental assist-
ance under this section, which shall not exceed
$275 per unit assisted;
‘‘(B) the costs incurred in assisting fami-
lies who experience difficulty (as determined by
the Secretary) in obtaining appropriate housing
under the program;
‘‘(C) the costs incurred in administering
the provision of rental assistance under this
section through the self-sufficiency program
under section 23; and
‘‘(D) extraordinary costs approved by the
Secretary.
‘‘(3) AUTHORITY TO INCLUDE COSTS OF SERV-
ICE COORDINATORS IN FEES.—
‘‘(A) IN GENERAL.—Fees under this sub-
section may be used for the costs of employing
or otherwise retaining the services of one or
more service coordinators under section 671 of
the Housing and Community Development Act
of 1992 to coordinate the provision of support-
ive services for elderly families and disabled
families on whose behalf tenant-based assist-
ance is provided under this section or section
811(b)(1). Such service coordinators shall have
the same responsibilities with respect to such
families as service coordinators of covered fed-
erally assisted housing projects have under sec-
tion 671 of such Act with respect to residents
of such projects.
‘‘(B) 
REQUIREMENT.—To 
the 
extent
amounts are provided in appropriation Acts
under section 5(c) for use under this para-
graph, the Secretary shall increase fees under
this subsection to provide for the costs of such
service coordinators for public housing agencies.
‘‘(4) BUDGET
COMPLIANCE.—The Secretary
may establish or increase a fee in accordance with
this subsection only to such extent or in such
amounts as are provided in appropriation Acts.
‘‘(5) FEES FOR 1995 AND 1996.—Notwithstand-
ing any other provision of this subsection, the fee for
the costs incurred by a public housing agency in ad-
ministering the program for rental assistance under
this section during fiscal years 1995 and 1996 shall
be equal to the fee determined for fiscal year 1994
under section 11(a) of the HUD Demonstration Act
of 1993.
‘‘(o) PORTABILITY OF ASSISTANCE.—
‘‘(1) AUTHORITY.—Except as provided in para-
graph (3), any family on behalf of whom is provided
tenant-based rental assistance under this section and
who moves to an eligible dwelling unit located within
the same State, or the same or a contiguous metro-
politan statistical area, as the metropolitan statis-
tical area within which is located the area of juris-
diction of the public housing agency approving the
assistance for the family, may use such assistance to
rent such eligible dwelling unit.
‘‘(2) ADMINISTRATION.—The public housing
agency having authority with respect to the dwelling
unit to which a family moves under this subsection
shall have the responsibility of carrying out the pro-
visions of this section with respect to the family. If
no public housing agency has authority with respect
to the dwelling unit to which a family moves under
this subsection, the public housing agency approving
the assistance shall have such responsibility.
‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA
RESIDENCY.—
‘‘(A) AUTHORITY.—At the discretion of a
public housing agency and to the extent pro-
vided in subparagraph (B), the agency may pro-
vide that a family may use tenant-based rental
assistance under this section to rent an eligible
dwelling unit that is not located within the area
of jurisdiction of the agency approving the as-
sistance only if, before such use, the family has
rented and occupied an eligible dwelling unit
within such jurisdiction for not less than 12
consecutive months using assistance provided
by such agency.
‘‘(B) LIMITATION.—If a public housing
agency elects to restrict the use of tenant-based
rental assistance pursuant to subparagraph (A)
and provides such assistance on behalf of more
than 300 families, the agency may not restrict
the use of such assistance with respect to as-
sistance provided on behalf of 10 percent of the
number of families receiving such assistance
that exceeds 300.
‘‘(4) PROVISION OF RENTAL ASSISTANCE FOR
PORTABILITY PURPOSES.—
‘‘(A) AMOUNT.—To the extent budget au-
thority for use under this paragraph is made
available in appropriation Acts, the Secretary
shall provide rental assistance under this sec-
tion in accordance with this paragraph.
‘‘(B) USE.—Amounts provided for use
under this paragraph shall be used only to pro-
vide a public housing agency with additional
amounts (as determined under subparagraph
(D)) to provide assistance for families on behalf
of whom assistance is provided under this sec-
tion by another public housing agency and who
move into an eligible dwelling unit located with-
in the area of jurisdiction of the agency to re-
ceive assistance under this paragraph.
‘‘(C) REQUIREMENT.—Amounts provided
for use under this paragraph may be made
available to a public housing agency only if the
agency has provided assistance pursuant to the
first sentence of paragraph (2) on behalf of
families who have moved into eligible dwelling
units located within the area of jurisdiction of
the agency in an amount not less than the less-
er of (i) 5 percent of the total amount received
by the agency for assistance under this section
for the fiscal year, or (ii) the amount necessary
to assist 25 percent of average annual number
of families previously assisted by the agency
who relinquish such assistance in a year (based
on the preceding 3 calendar years).
‘‘(p) PROHIBITION OF DISCRIMINATION.—
‘‘(1) BASED ON RESIDENCY IN PUBLIC HOUS-
ING.—In selecting families for the provision of as-
sistance under this section, a public housing agency
may not exclude or penalize a family solely because
the family resides in a public housing project.
‘‘(2) BASED ON RECEIPT OF ASSISTANCE.—An
owner who has entered into an assistance contract
under this section on behalf of any tenant in a mul-
tifamily housing project shall not refuse to lease any
available dwelling unit in any multifamily housing
project of such owner that rents for an amount not
greater than the fair market rental for a comparable
unit (as determined by the Secretary under sub-
section (e)) to a family who has been approved by
a public housing agency for rental assistance under
this section and is in possession of evidence of such
approval, a proximate cause of which is the status
of such prospective tenant as such an assisted fam-
ily, and to enter into an assistance contract respect-
ing such unit.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘multifamily housing project’
means a residential building containing more than 4
dwelling units.
‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—
‘‘(1) ASSISTANCE
FOR
RESIDENTS
OF
REHA-
BILITATED PROJECTS.—In the case of low-income
families living in rental projects rehabilitated under
section 17 of this Act or section 533 of the Housing
Act of 1949 before rehabilitation—
‘‘(A) tenant-based rental assistance under
this section shall be provided for families who
are required to move out of their dwelling units
because of the physical rehabilitation activities
or because of overcrowding;
‘‘(B) at the discretion of each public hous-
ing agency, tenant-based rental assistance
under this section may be provided for families
who would have to pay more than 30 percent of
their adjusted income for rent after rehabilita-
tion whether they choose to remain in, or to
move from, the project; and
‘‘(C) the Secretary shall allocate tenant-
based rental assistance provided under this sec-
tion to ensure that sufficient resources are
available to address the physical or economic
displacement, or potential economic displace-
ment, of existing tenants pursuant to subpara-
graphs (A) and (B).
‘‘(2) LOAN MANAGEMENT ASSISTANCE.—
‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section through a
loan management program to assist financially
troubled 
multifamily 
residential 
housing
projects (i) subject to mortgages that are in-
sured under the National Housing Act or mort-
gages that have been assigned to the Secretary,
(ii) that were held by the Secretary and have
been sold, and (iii) that were assisted under
section 202 of the Housing Act of 1959.
‘‘(B) ELIGIBILITY.—The eligibility of a
multifamily residential project for loan manage-
ment assistance under this paragraph shall be
determined without regard to whether the
project is subsidized or unsubsidized.
‘‘(C) EXTENSION
OF
CONTRACT.—The
Secretary shall extend any expiring contract en-
tered into under this section for loan manage-
ment assistance or execute a new contract for
project-based loan management assistance, if
the owner agrees to continue providing housing
for low-income families during the term of the
contract.
‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—
‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section to be used
only in connection with tenant-based assistance
under this section on behalf of any family (i)
who is otherwise eligible for such assistance,
and (ii) who the public child welfare agency for
the jurisdiction has certified is a family for
whom the lack of adequate housing is a primary
factor in the imminent placement of the fami-
ly’s child or children in out-of-home care or the
delayed discharge of a child or children to the
family from out-of-home care.
‘‘(B) ALLOCATION.—Any amounts made
available under this paragraph shall be allo-
cated by the Secretary through a national com-
petition among applicants based on dem-
onstrated need for assistance under this para-
graph. To be considered for assistance, an ap-
plicant shall submit to the Secretary a written
proposal containing a report from the public
child welfare agency serving the jurisdiction of
the applicant that describes how a lack of ade-
quate housing in the jurisdiction is resulting in
the initial or prolonged separation of children
from their families, and how the applicant will
coordinate with the public child welfare agency
to identify eligible families and provide the fam-
ilies with assistance under this paragraph.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) APPLICANT.—The term ‘appli-
cant’ means a public housing agency.
‘‘(ii) PUBLIC CHILD WELFARE AGEN-
CY.—The term ‘public child welfare agen-
cy’ means the public agency responsible
under applicable State law for determining
that a child is at imminent risk of place-
ment in out-of-home care or that a child in
out-of-home care under the supervision of
the public agency may be returned to his
or her family.
‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—Not later
than 30 days after the beginning of each fiscal year, the
Secretary shall publish in the Federal Register a plan for
reducing, to the extent feasible, year-to-year fluctuations
in the levels of budget authority that will be required over
the succeeding 5-year period to renew expiring assistance
contracts entered into under this section after the enact-
ment of the Housing and Community Development Act
of 1974. To the extent necessary to carry out such plan
and to the extent approved in appropriations Acts, the
Secretary is authorized to enter into annual contributions
contracts with terms of less than 60 months.
‘‘(s) GENERAL PROVISIONS.—
‘‘(1) PROHIBITION
OF
HIGH-RISE
PROJECTS
FOR
FAMILIES
WITH
CHILDREN.—Notwithstanding
any other provision of this section, after the date of
enactment of the Housing and Community Develop-
ment Act of 1977, the Secretary shall prohibit high-
rise elevator projects for families with children un-
less the Secretary determines that there is no prac-
tical alternative.
‘‘(2) PLEDGING ASSISTANCE CONTRACTS AS SE-
CURITY.—An owner may pledge, or offer as security
for any loan or obligation, an assistance contract en-
tered into pursuant to this section, but only if such
security is in connection with a project constructed
or rehabilitated pursuant to authority under this
section and the terms of the financing or any refi-
nancing have been approved by the Secretary.
‘‘(3) ASSISTANCE
IN
FINDING
UNITS.—Each
public housing agency that provides rental housing
assistance under this section on behalf of low-income
families shall make available, to such families, coun-
seling and assistance regarding housing opportuni-
ties in the area of jurisdiction of the agency, includ-
ing assistance in obtaining new rental residences.
‘‘(t) HOMEOWNERSHIP OPTION.—
‘‘(1) USE OF ASSISTANCE FOR HOMEOWNER-
SHIP.—A family receiving tenant-based assistance
under this section may receive assistance for occu-
pancy of a dwelling owned by one or more members
of the family if the family—
‘‘(A) is a first-time homeowner;
‘‘(B)(i) participates in the family self-suffi-
ciency program under section 23 of the public
housing agency providing the assistance; or
‘‘(ii) demonstrates that the family has in-
come from employment or other sources (other
than public assistance), as determined in ac-
cordance with requirements of the Secretary,
that is not less than twice the payment stand-
ard established by the public housing agency
(or such other amount as may be established by
the Secretary);
‘‘(C) except as provided by the Secretary,
demonstrates at the time the family initially re-
ceives tenant-based assistance under this sub-
section that one or more adult members of the
family have achieved employment for the period
as the Secretary shall require;
‘‘(D) participates in a homeownership and
housing counseling program provided by the
agency; and
‘‘(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements estab-
lished by the Secretary.
‘‘(2) MONTHLY ASSISTANCE PAYMENT.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provisions of this section governing deter-
mination of the amount of assistance payments
under this section on behalf of a family, the
monthly assistance payment for any family as-
sisted under this subsection shall be the amount
by which the fair market rental for the area es-
tablished under subsection (e)(1) exceeds 30
percent of the family’s monthly adjusted in-
come; except that the monthly assistance pay-
ment shall not exceed the amount by which the
monthly homeownership expenses, as deter-
mined in accordance with requirements estab-
lished by the Secretary, exceeds 10 percent of
the family’s monthly income.
‘‘(B) EXCLUSION
OF
EQUITY
FROM
IN-
COME.—For 
purposes 
of 
determining 
the
monthly assistance payment for a family, the
Secretary shall not include in family income an
amount imputed from the equity of the family
in a dwelling occupied by the family with assist-
ance under this subsection.
‘‘(3) RECAPTURE
OF
CERTAIN
AMOUNTS.—
Upon sale of the dwelling by the family, the Sec-
retary shall recapture from any net proceeds the
amount of additional assistance (as determined in
accordance with requirements established by the
Secretary) paid to or on behalf of the eligible family
as a result of paragraph (2)(B).
‘‘(4) 
DOWNPAYMENT
REQUIREMENT.—Each
public housing agency providing assistance under
this subsection shall ensure that each family assisted
shall provide from its own resources not less than 80
percent of any downpayment in connection with a
loan made for the purchase of a dwelling. Such re-
sources may include amounts from any escrow ac-
count for the family established under section 23(d).
Not more than 20 percent of the downpayment may
be provided from other sources, such as from non-
profit entities and programs of States and units of
general local government.
‘‘(5) 
INELIGIBILITY
UNDER
OTHER
PRO-
GRAMS.—A family may not receive assistance under
this subsection during any period when assistance is
being provided for the family under other Federal
homeownership assistance programs, as determined
by the Secretary, which shall include assistance
under the HOME Investment Partnerships Act, the
Homeownership and Opportunity Through HOPE
Act, title II of the Housing and Community Devel-
opment Act of 1987, and section 502 of the Housing
Act of 1949.
‘‘(6) INAPPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—Assistance under this subsection shall not
be subject to the requirements of the following provi-
sions:
‘‘(A) Subsection (h)(3) of this section.
‘‘(B) Any other provisions of this section
governing maximum amounts payable to owners
and amounts payable by assisted families.
‘‘(C) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
‘‘(D) Any other provisions of this Act
that are inconsistent with the provisions of this
subsection.
‘‘(7) REVERSION TO RENTAL STATUS.—
‘‘(A) FHA-INSURED
MORTGAGES.—If a
family receiving assistance under this sub-
section for occupancy of a dwelling defaults
under a mortgage for the dwelling insured by
the Secretary under the National Housing Act,
the family may not continue to receive rental
assistance under this section unless the family
(i) transfers to the Secretary marketable title to
the dwelling, (ii) moves from the dwelling with-
in the period established or approved by the
Secretary, and (iii) agrees that any amounts
the family is required to pay to reimburse the
escrow account under section 23(d)(3) may be
deducted by the public housing agency from the
assistance payment otherwise payable on behalf
of the family.
‘‘(B) OTHER MORTGAGES.—If a family re-
ceiving assistance under this subsection defaults
under a mortgage not insured under the Na-
tional Housing Act, the family may not con-
tinue to receive rental assistance under this sec-
tion unless it complies with requirements estab-
lished by the Secretary.
‘‘(C) ALL MORTGAGES.—A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
‘‘(8) 
DEFINITION
OF
FIRST-TIME
HOME-
OWNER.—For purposes of this subsection, the term
‘first-time homeowner’ means—
‘‘(A) a family, no member of which has
had a present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives assistance
for homeownership under this subsection; and
‘‘(B) any other family, as the Secretary
may prescribe.
‘‘(u) DEFINITIONS.—For purposes of this section:
‘‘(1) ANNUAL
CONTRIBUTIONS
CONTRACT.—
The term ‘annual contributions contract’ means a
contract under subsection (b) between the Secretary
and a public housing agency to provide amounts for
rental assistance payments under this section to the
public housing agency.
‘‘(2) ASSISTANCE
CONTRACT.—The term ‘as-
sistance contract’ means a contract under subsection
(c) between a public housing agency (or the Sec-
retary) and an owner to make rental assistance pay-
ments under this section to the owner.
‘‘(3) DEBT SERVICE.—The term ‘debt service’
means the required payments for principal and in-
terest made with respect to a mortgage secured by
housing assisted under this Act.
‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The
term ‘drug-related criminal activity’ means the ille-
gal manufacture, sale, distribution, use, or posses-
sion with intent to manufacture, sell, distribute, or
use, of a controlled substance (as such term is de-
fined in section 102 of the Controlled Substances
Act).
‘‘(5) OWNER.—The term ‘owner’ means any
private person or entity, including a cooperative, an
agency of the Federal Government, or a public hous-
ing agency, having the legal right to lease or sub-
lease dwelling units, and such term shall include any
principals, general partners, primary shareholders,
and other similar participants in any entity owning
a multifamily housing project (as such term is de-
fined in subsection (p)(3)), as well as the entity it-
self.
‘‘(6) PARTICIPATING JURISDICTION.—The term
‘participating jurisdiction’ means a State or unit of
general local government designated by the Sec-
retary to be a participating jurisdiction under title
II of the Cranston-Gonzalez National Affordable
Housing Act.
‘‘(7) PROJECT-BASED ASSISTANCE.—The term
‘project-based assistance’ means rental assistance
under this section that is attached to a structure
pursuant to subsection (i).
‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in-
clude, with respect to members of a cooperative, the
charges under the occupancy agreements between
such members and the cooperative.
‘‘(9) RENTAL ASSISTANCE.—The term ‘rental
assistance’ means assistance provided under this sec-
tion on behalf of low-income families for the rental
of a dwelling unit.
‘‘(10) TENANT-BASED ASSISTANCE.—The term
‘tenant-based assistance’ means rental assistance
under this section that is not project-based assist-
ance.’’.
(b) TRANSITION.—
(1) APPLICABILITY.—The amendment made by
subsection (a) shall apply only to assistance under
section 8 of the United States Housing Act of 1937
provided pursuant to an assistance contract entered
into or renewed during fiscal year 1995 or there-
after. Any such assistance provided pursuant to an
assistance contract entered into before the com-
mencement of fiscal year 1995 shall be subject to
the provisions of such section 8 as in effect imme-
diately before the enactment of this Act or otherwise
applicable to such assistance.
(2) CONTINUATION OF ASSISTANCE.—The Sec-
retary of Housing and Urban Development shall
take any action necessary to ensure that the provi-
sion of assistance under section 8 of the United
States Housing Act of 1937 to families receiving as-
sistance under such section on the date of the enact-
ment of this Act is not interrupted because of the
amendment made by subsection (a).
(c) CONFORMING AMENDMENTS.—
(1) UNITED STATES HOUSING ACT OF 1937.—
The United States Housing Act of 1937 is amend-
ed—
(A) 
in 
section 
3(a)(1) 
(42 
U.S.C.
1437a(a)(1)), by striking ‘‘(other than a family
assisted under section 8(o) or (y) or paying rent
under 
section 
8(c)(3)(B))’’ 
and 
inserting
‘‘(other than a family assisted under section
8(t))’’;
(B) in section 5 (42 U.S.C. 1737c)—
(i) in subsection (c)(7)(C), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’;
(ii) in subsection (j)(1)(B)(i), by strik-
ing ‘‘section 8(o)(6)’’ and inserting ‘‘sec-
tion 8’’; and
(iii) in subsection (j)(1)(D), by strik-
ing ‘‘subsection (b) or (o) of’’;
(C) in section 6(p)(1)(B) (42 U.S.C.
1437d(p)(1)(B)), by striking ‘‘holding certifi-
cates and vouchers’’ and inserting ‘‘eligible and
approved for assistance’’;
(D) 
in 
section 
18(b)(3) 
(42 
U.S.C.
1437p(b)(3))—
(i) in subparagraph (A)(iv), by strik-
ing ‘‘section 8(b)(1)’’ and inserting ‘‘sec-
tion 8’’;
(ii) in subparagraph (A)(v), by strik-
ing ‘‘(excluding vouchers under section
8(o))’’ each place it appears;
(iii) in subparagraph (B)—
(I) in the matter preceding clause
(i), by striking ‘‘(notwithstanding the
limitation under section 8(d)(2)(A) on
the amount of project-based assist-
ance provided by an agency)’’; and
(II) in clause (ii), by striking
‘‘(excluding vouchers under section
8(o))’’; and
(iv) in subparagraph (C), by striking
‘‘certificates and vouchers available’’ and
inserting ‘‘families receiving tenant-based
assistance’’;
(E) in section 21(b)(3)—
(i) by striking ‘‘a certificate under
section 8(b)(1) or a housing voucher under
section 8(o)’’ and inserting ‘‘tenant-based
assistance under section 8’’; and
(ii) by striking ‘‘such certificate’’ and
inserting ‘‘such assistance’’;
(F) in section 23—
(i) in subsection (a), by striking ‘‘as-
sistance under the certificate and voucher
programs’’ and inserting ‘‘tenant-based as-
sistance’’;
(ii) in subsection (b)—
(I) in paragraph (1), by striking
‘‘assistance under subsection (b) or
(o) of’’ and inserting ‘‘tenant-based
assistance under’’;
(II) in paragraph (3)(A), by
striking ‘‘Certificate and voucher as-
sistance under section 8(b) and (o)’’
and inserting ‘‘Tenant-based assist-
ance under section 8’’; and
(III) in paragraph (4), by strik-
ing ‘‘Assistance under the certificate
or voucher programs’’ and inserting
‘‘Tenant-based assistance’’;
(iii) in subsection (c)(1), by striking
‘‘assistance under the certificate and
voucher programs of’’ and inserting ‘‘ten-
ant-based assistance from’’;
(iv) in subsection (d)(3) (as added by
section 185(b) of the Housing and Com-
munity Development Act of 1992 (Public
Law 102–550; 106 Stat. 3747)), by strik-
ing ‘‘section 8(y)’’ and inserting ‘‘section
8(t)’’; and
(v) in subsection (h)(1)—
(I) by striking ‘‘section 8(q) for
the costs incurred in administering
the provision of certificate and vouch-
er’’ and inserting ‘‘section 8(n) for the
costs incurred in administering the
provision of tenant-based’’; and
(II) 
by 
striking 
‘‘section
8(q)(2)(A)(i)’’ and inserting ‘‘section
8(n)(2)(A)’’; and
(G) in section 304(g)(3) (42 U.S.C.
1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)
and section 8(o)(9)’’ and inserting ‘‘section 8’’.
(2) ELDERLY INDEPENDENCE.—Section 803 of
the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8012) is amended—
(A) in subsection (a), by striking ‘‘housing
certificates and vouchers’’ and inserting ‘‘assist-
ance under section 8 of the United States
Housing Act of 1937’’; and
(B) in subsection (b)—
(i) in the 1st sentence, by striking
‘‘not more than 1500 incremental vouchers
and certificates under sections 8(b) and
8(o) of the United States Housing Act of
1937’’ and inserting ‘‘incremental assist-
ance under section 8 of the United States
Housing Act of 1937 on behalf of not more
than 1,500 frail elderly persons’’;
(ii) in the 3rd sentence, by striking
‘‘the housing certificate or voucher pro-
gram of the agency’’ and inserting ‘‘the
agency’s program for assistance under
such section 8’’; and
(iii) in the last sentence, by striking
‘‘sections 8(b) and 8(o)’’ and inserting
‘‘section 8’’.
(3) MCKINNEY
ACT.—Section 441(b) of the
Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11401(b)) is amended—
(A) by striking ‘‘section 8(n)’’ and insert-
ing ‘‘section 8(l)’’; and
(B) by adding at the end the following new
sentence: ‘‘Moderate rehabilitation under this
section shall be carried out in the manner pro-
vided under the provisions of section 8(e) of the
United States Housing Act of 1937, as such
section was in effect immediately before the en-
actment of the Housing and Community Devel-
opment Act of 1994.’’.
(4) NATIONAL HOUSING ACT.—Section 203(v)
of the National Housing Act (12 U.S.C. 1709(v)), as
added by section 185(c)(1)(B) of the Housing and
Community Development Act of 1992, is amended
by striking ‘‘section 8(y)’’ and inserting ‘‘section
8(t)’’.
SEC. 5. PUBLIC HOUSING RENT AND INCOME ELIGIBILITY
REFORM.
(a) EXCLUSION FROM ADJUSTED INCOME FOR RENT
CALCULATION.—Section 3(b)(5) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amend-
ed—
(1) in subparagraph (F), by striking ‘‘and’’ at
the end;
(2) by redesignating subparagraph (G) as sub-
paragraph (H); and
(3) by inserting after subparagraph (F) the fol-
lowing new subparagraphs:
‘‘(G) the amount of any increase in the earned
income of the family that results from the employ-
ment of a previously unemployed member of the
family, except that such increase in earned income
may be excluded only during the 18-month period
beginning upon the employment of the family mem-
ber; and’’.
(b) INCOME ELIGIBILITY.—Section 3(b)(4) of the
United States Housing Act of 1937 (42 U.S.C.
1437a(b)(2)) is amended by inserting at the end the fol-
lowing new sentence: ‘‘For purposes of eligibility of a fam-
ily for residence in public housing, income of the family
shall not include (A) only in the case of a family that has
more than 2 members contributing to the earned income
of the family and has an income (as determined under the
preceding sentence) not exceeding 65 percent of the me-
dian income for the area, 50 percent of the amount of
any earned income of the family contributed by members
of the family who are not the 2 members of the family
contributing the greatest amounts to the family’s earned
income, and (B) the amount of any increase in the earned
income of the family that results from the employment of
a previously unemployed member of the family, except that
such increase in earned income may be excluded only dur-
ing the 18-month period beginning upon the employment
of the family member .’’.
(c) BUDGET COMPLIANCE.—To the extent that the
amendments made by subsections (a) and (b) result in ad-
ditional costs under the United States Housing Act of
1937, the provisions inserted by such amendments shall
be effective only to the extent that amounts to cover such
additional costs are provided in advance in appropriations
Acts.
Æ
HR 4218 IH——2
HR 4218 IH——3
HR 4218 IH——4
HR 4218 IH——5
HR 4218 IH——6
HR 4218 IH——7