I 
111TH CONGRESS 
1ST SESSION H. R. 3045 
To reform the housing choice voucher program under section 8 of the United 
States Housing Act of 1937. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2009 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mr. BACA, Mr. 
COHEN, and Mrs. BIGGERT) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To reform the housing choice voucher program under section 
8 of the United States Housing Act of 1937. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Section 8 Voucher Reform Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Inspection of dwelling units. 
Sec. 3. Rent reform and income reviews. 
Sec. 4. Eligibility for assistance based on assets and income. 
Sec. 5. Targeting assistance to low-income working families. 
Sec. 6. Voucher renewal funding. 
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Sec. 7. Administrative fees. 
Sec. 8. Homeownership. 
Sec. 9. PHA reporting of rent payments to credit reporting agencies. 
Sec. 10. Performance assessments. 
Sec. 11. PHA project-based assistance. 
Sec. 12. Rent burdens. 
Sec. 13. Establishment of fair market rent. 
Sec. 14. Screening of applicants. 
Sec. 15. Enhanced vouchers. 
Sec. 16. Demonstration program waiver authority. 
Sec. 17. Authorization of appropriations. 
Sec. 18. Agency authority for utility payments in certain circumstances. 
Sec. 19. Project-based preservation vouchers. 
Sec. 20. Effect of foreclosure on section 8 tenancies. 
Sec. 21. Study to identify obstacles to using vouchers in federally subsidized 
housing projects. 
Sec. 22. Interagency Council on Homelessness. 
Sec. 23. Housing innovation program. 
Sec. 24. Effective date. 
SEC. 2. INSPECTION OF DWELLING UNITS. 
Section 8(o)(8) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(8)) is amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling 
unit for which a housing assistance pay-
ment contract is established under this 
subsection, the public housing agency (or 
other entity pursuant to paragraph (11)) 
shall inspect the unit before any assistance 
payment is made to determine whether the 
dwelling unit meets the housing quality 
standards under subparagraph (B), except 
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as provided in clause (ii) or (iii) of this 
subparagraph. 
‘‘(ii) 
CORRECTION
OF
NON-LIFE 
THREATENING CONDITIONS.—In the case 
of any dwelling unit that is determined, 
pursuant to an inspection under clause (i), 
not to meet the housing quality standards 
under subparagraph (B), assistance pay-
ments may be made for the unit notwith-
standing subparagraph (C) if failure to 
meet such standards is a result only of 
non-life threatening conditions. A public 
housing agency making assistance pay-
ments pursuant to this clause for a dwell-
ing unit shall, 30 days after the beginning 
of the period for which such payments are 
made, suspend any assistance payments 
for the unit if any deficiency resulting in 
noncompliance with the housing quality 
standards has not been corrected by such 
time, and may not resume such payments 
until each such deficiency has been cor-
rected. 
‘‘(iii) USE OF ALTERNATIVE INSPEC-
TION METHOD FOR INTERIM PERIOD.—In 
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the case of any property that within the 
previous 12 months has met the require-
ments of an inspection that qualifies as an 
alternative inspection method pursuant to 
subparagraph (E), a public housing agency 
may authorize occupancy before the inspec-
tion under clause (i) has been completed, 
and may make assistance payments retro-
active to the beginning of the lease term 
after the unit has been determined pursu-
ant to an inspection under clause (i) to 
meet the housing quality standards under 
subparagraph (B).’’; 
(2) by redesignating subparagraph (E) as sub-
paragraph (H); and 
(3) by striking subparagraph (D) and inserting 
the following new subparagraphs: 
‘‘(D) BIENNIAL INSPECTIONS.— 
‘‘(i) 
REQUIREMENT.—Each 
public 
housing agency providing assistance under 
this subsection (or other entity, as pro-
vided in paragraph (11)) shall, for each as-
sisted dwelling unit, make inspections not 
less often than biennially during the term 
of the housing assistance payments con-
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tract for the unit to determine whether the 
unit is maintained in accordance with the 
requirements under subparagraph (A). 
‘‘(ii) USE OF ALTERNATIVE INSPEC-
TION
METHOD.—The requirement under 
clause (i) may be complied with by use of 
inspections that qualify as an alternative 
inspection method pursuant to subpara-
graph (E). 
‘‘(iii) 
RECORDS.—The 
agency 
(or 
other entity) 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 Department of Housing and Urban 
Development, and any auditor conducting 
an audit under section 5(h). 
‘‘(E) ALTERNATIVE
INSPECTION
METH-
OD.—An inspection of a property shall qualify 
as an alternative inspection method for pur-
poses of this subparagraph if— 
‘‘(i) the inspection was conducted pur-
suant to requirements under a Federal, 
State, or local housing assistance program 
(including the HOME investment partner-
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ships program under title II of the Cran-
ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12721 et seq.) and the low- 
income housing tax credit program under 
section 42 of the Internal Revenue Code of 
1986); and 
‘‘(ii) pursuant to such inspection, the 
property was determined to meet the 
standards or requirements regarding hous-
ing quality or safety applicable to units as-
sisted under such program, and, if a non- 
Federal standard was used, the public 
housing agency has certified to the Sec-
retary that such standards or requirements 
provide the same protection to occupants 
of dwelling units meeting such standards 
or requirements as, or greater protection 
than, the housing quality standards under 
subparagraph (B). 
‘‘(F) INTERIM INSPECTIONS.—Upon notifi-
cation to the public housing agency, by a family 
on whose behalf tenant-based rental assistance 
is provided under this subsection or by a gov-
ernment official, that the dwelling unit for 
which such assistance is provided does not com-
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ply with the housing quality standards under 
subparagraph (B), the agency shall inspect the 
dwelling unit— 
‘‘(i) in the case of any condition that 
is life-threatening, within 24 hours after 
receipt of such notice; and 
‘‘(ii) in the case of any condition that 
is not life-threatening, within 15 days after 
receipt of such notice. 
‘‘(G) ENFORCEMENT OF HOUSING QUALITY 
STANDARDS.— 
‘‘(i) DETERMINATION OF NONCOMPLI-
ANCE.—A dwelling unit that is covered by 
a housing assistance payments contract 
under this subsection shall be considered, 
for purposes of subparagraphs (D) and 
(F), to be in noncompliance with the hous-
ing quality standards under subparagraph 
(B) if— 
‘‘(I) the public housing agency or 
an inspector authorized by the State 
or unit of local government deter-
mines upon inspection of the unit that 
the unit fails to comply with such 
standards; 
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‘‘(II) the agency or inspector no-
tifies the owner of the unit in writing 
of such failure to comply; and 
‘‘(III) the failure to comply is not 
corrected— 
‘‘(aa) in the case of any 
such failure that is a result of 
life-threatening conditions, within 
24 hours after such notice has 
been provided; and 
‘‘(bb) in the case of any 
such failure that is a result of 
non-life threatening conditions, 
within 30 days after such notice 
has been provided or such other 
reasonable longer period as the 
public housing agency may estab-
lish. 
‘‘(ii) WITHHOLDING
OF
ASSISTANCE 
AMOUNTS
DURING
CORRECTION.—The 
public housing agency may withhold assist-
ance amounts under this subsection with 
respect to a dwelling unit that does not 
comply with housing quality standards 
under subparagraph (B) as determined 
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pursuant to an inspection conducted under 
subparagraph (D) or (F). If the unit is 
brought into compliance with such housing 
quality standards during the periods re-
ferred to in clause (i)(III), the public hous-
ing agency shall recommence assistance 
payments and may use any amounts with-
held during the correction period to make 
assistance payments relating to the period 
during which payments were withheld. 
‘‘(iii) ABATEMENT
OF
ASSISTANCE 
AMOUNTS.—The public housing agency 
shall abate all of the assistance amounts 
under this subsection with respect to a 
dwelling unit that is determined, pursuant 
to subparagraph (G)(i), to be in non-
compliance with housing quality standards 
under subparagraph (B). Upon completion 
of repairs by the public housing agency or 
the owner sufficient so that the dwelling 
unit complies with such housing quality 
standards, the agency shall recommence 
payments under the housing assistance 
payments contract to the owner of the 
dwelling unit. 
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‘‘(iv) USE OF ABATED ASSISTANCE TO 
PAY FOR REPAIRS.— 
‘‘(I) 
AUTHORITY.—The 
public 
housing agency may use such amounts 
abated to make repairs to the dwelling 
unit or to contract to have repairs 
made, except that a contract to make 
repairs may not be entered into with 
the inspector for the dwelling unit re-
ferred to in clause (i)(I). 
‘‘(II) ABATED FUNDS.—For pur-
poses of this clause, abated amounts 
may include an amounts withheld dur-
ing the correction period described in 
clause (ii) of this subparagraph with 
respect to a dwelling unit that is sub-
sequently determined under clause (i) 
to be in noncompliance with housing 
quality standards. 
‘‘(III) LIMITATION OF LIABILITY 
OF
PUBLIC
HOUSING
AGENCIES.—A 
public housing agency that uses its 
authority under this clause shall not, 
if the agency accomplishes the work 
through a contractor that is licensed, 
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bonded, and insured in amounts and 
with coverage as required by the Sec-
retary, be liable for any injury or 
damages that may result to persons or 
to any property owned by the tenant 
or owner. 
‘‘(v) 
NOTIFICATION.—If 
a 
public 
housing agency providing assistance under 
this subsection abates rental assistance 
payments pursuant to clause (iii) with re-
spect to a dwelling unit, the agency shall, 
upon commencement of such abatement— 
‘‘(I) notify the tenant and the 
owner of the dwelling unit that— 
‘‘(aa) such abatement has 
commenced; and 
‘‘(bb) if the dwelling unit is 
not brought into compliance with 
housing quality standards within 
60 days after the effective date of 
the determination of noncompli-
ance under clause (i) or such rea-
sonable longer period as the 
agency may establish, the tenant 
will have to move; and 
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‘‘(II) issue the tenant the nec-
essary forms to allow the tenant to 
move to another dwelling unit and 
transfer the rental assistance to that 
unit. 
‘‘(vi) PROTECTION OF TENANTS.—An 
owner of a dwelling unit may not terminate 
the tenancy of any tenant because of the 
withholding or abatement of assistance 
pursuant to this subparagraph. During the 
period that assistance is abated pursuant 
to this subparagraph, the tenant may ter-
minate the tenancy by notifying the owner. 
‘‘(vii) TERMINATION OF LEASE OR AS-
SISTANCE
PAYMENTS
CONTRACT.—If as-
sistance amounts under this section for a 
dwelling unit are abated pursuant to clause 
(iii) and the owner does not correct the 
noncompliance within 60 days after the ef-
fective date of the determination of non-
compliance under clause (i), or such other 
reasonable longer period as the public 
housing agency may establish, and the 
agency does not use its authority under 
clause (iv), the agency shall terminate the 
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housing assistance payments contract for 
the dwelling unit. 
‘‘(viii) RELOCATION.— 
‘‘(I) LEASE OF NEW UNIT.—The 
agency shall provide the family resid-
ing in such a dwelling unit a period of 
90 days or such longer period as is 
necessary to lease a new unit, begin-
ning upon termination of the contract, 
to lease a new residence with tenant- 
based rental assistance under this sec-
tion. 
‘‘(II) AVAILABILITY
OF
PUBLIC 
HOUSING UNITS.—If the family is un-
able to lease such a new residence 
during such period, the public housing 
agency shall, at the option of the fam-
ily, provide such family a preference 
for occupancy in a dwelling unit of 
public housing owned or operated by 
the agency that first becomes avail-
able for occupancy after the expiration 
of such period. 
‘‘(III) ASSISTANCE
IN
FINDING 
UNIT.—The public housing agency 
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shall provide reasonable assistance to 
the family in finding a new residence, 
including use of up to two months of 
any assistance amounts abated pursu-
ant to clause (iii) for costs directly as-
sociated with relocation of the family 
to a new residence, which may include 
moving expenses and security depos-
its. The agency may require that a 
family receiving assistance for a secu-
rity deposit shall remit, to the extent 
of such assistance, the amount of any 
security deposit refunds made by the 
owner of the dwelling unit for which 
the lease was terminated. 
‘‘(ix) TENANT-CAUSED DAMAGES.—If 
a public housing agency determines that 
any damage to a dwelling unit that results 
in a failure of the dwelling unit to comply 
with housing quality standards under sub-
paragraph (B), other than any damage re-
sulting from ordinary use, was caused by 
the tenant, any member of the tenant’s 
household, or any guest or other person 
under the tenant’s control, the agency may 
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waive the applicability of this subpara-
graph, except that this clause shall not ex-
onerate a tenant from any liability other-
wise existing under applicable law for dam-
ages to the premises caused by such ten-
ant. 
‘‘(x) APPLICABILITY.—This subpara-
graph shall apply to any dwelling unit for 
which a housing assistance payments con-
tract is entered into or renewed after the 
date of the effectiveness of the regulations 
implementing this subparagraph.’’. 
SEC. 3. RENT REFORM AND INCOME REVIEWS. 
(a) RENT FOR PUBLIC HOUSING AND SECTION 8 
PROGRAMS.—Section 3 of the United States Housing Act 
of 1937 (42 U.S.C. 1437a) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1) by inserting ‘‘LOW- 
INCOME OCCUPANCY REQUIREMENT AND RENT-
AL PAYMENTS.—’’ after ‘‘(1)’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraphs (2) and (3)’’; and 
(ii) by striking ‘‘paragraph (3)’’ and 
inserting ‘‘paragraph (4)’’; 
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(C) in paragraph (2)(A)(i), by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraph 
(4)’’; 
(D) by redesignating paragraphs (3), (4), 
and (5) as paragraphs (4), (5), and (6), respec-
tively; 
(E) by inserting after paragraph (2) the 
following new paragraph: 
‘‘(3) PHA AUTHORITY TO ESTABLISH ALTER-
NATIVE RENTS.— 
‘‘(A) RENT
FLEXIBILITY
FOR
PUBLIC 
HOUSING.—Subject to the requirements under 
subparagraph (B), a public housing agency may 
establish for public housing— 
‘‘(i) a tenant rent structure in 
which— 
‘‘(I) the public housing agency 
establishes, based on the rental value 
of the unit, as determined by the pub-
lic housing agency, a ceiling rent for 
each dwelling unit that it owns and 
operates; and 
‘‘(II) such ceiling rent is adjusted 
periodically on the basis of an infla-
tion index or a recalculation of the 
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rental value of the unit (which may be 
recalculated by unit or by building); 
‘‘(ii) an income-tiered tenant rent 
structure in which the amount of rent a 
family shall pay is set and distributed on 
the basis of broad tiers of income and such 
tiers and rents are adjusted on the basis of 
an annual cost index except that families 
shall not be offered a rent lower than the 
rent corresponding to their income tier; or 
‘‘(iii) a tenant rent structure in which 
the amount of rent a family shall pay is 
based on a percentage of family income, 
except that lower percentages may apply 
only with respect to earned income; such a 
rent structure may provide for an amount 
of rent based on a calculation of earned in-
come that provides for disregard of a high-
er percentage or higher dollar amount, or 
both, than provided for in paragraph 
(8)(B). 
‘‘(B) LIMITATION.—Notwithstanding the 
authority provided under subparagraph (A), the 
amount paid for rent (including the amount al-
lowed for tenant-paid utilities) by any family 
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for a dwelling unit in public housing may not 
exceed the amount determined under subsection 
(a)(1) of this section. The Secretary shall issue 
regulations and establish procedures for public 
housing agency calculations and documentation 
as are necessary to ensure compliance with this 
subparagraph. 
‘‘(C) ELDERLY FAMILIES AND DISABLED 
FAMILIES.—Notwithstanding any other provi-
sion of this Act, this paragraph shall not apply 
to elderly families and disabled families.’’; and 
(F) by adding at the end the following new 
paragraphs: 
‘‘(7) REVIEWS OF FAMILY INCOME.— 
‘‘(A) FREQUENCY.—Reviews of family in-
come for purposes of this section shall be 
made— 
‘‘(i) in the case of all families, upon 
the initial provision of housing assistance 
for the family; 
‘‘(ii) annually thereafter, except as 
provided in subparagraph (B)(i); 
‘‘(iii) upon the request of the family, 
at any time the income or deductions 
(under subsection (b)(5)) of the family 
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change by an amount that is estimated to 
result in a decrease of $1,200 (or such 
lower amount as the public housing agency 
or owner may, at the option of the agency 
or owner, establish) or more in annual ad-
justed income; and 
‘‘(iv) at any time the income or deduc-
tions (under subsection (b)(5)) of the fam-
ily change by an amount that is estimated 
to result in an increase of $1,200 or more 
in annual adjusted income, except that any 
increase in the earned income of a family 
shall not be considered for purposes of this 
clause (except that earned income may be 
considered if the increase corresponds to 
previous decreases under clause (iii)), ex-
cept that a public housing agency or owner 
may elect not to conduct such review in the 
last three months of a certification period. 
‘‘(B) FIXED-INCOME FAMILIES.— 
‘‘(i) SELF CERTIFICATION AND 3-YEAR 
REVIEW.—In the case of any family de-
scribed in clause (ii), after the initial re-
view of the family’s income pursuant to 
subparagraph (A)(i), the public housing 
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agency or owner shall not be required to 
conduct a review of the family’s income 
pursuant to subparagraph (A)(ii) for any 
year for which such family certifies, in ac-
cordance with such requirements as the 
Secretary shall establish, that the income 
of the family meets the requirements of 
clause (ii) of this subparagraph and that 
the sources of such income have not 
changed since the previous year, except 
that the public housing agency or owner 
shall conduct a review of each such fam-
ily’s income not less than once every 3 
years. 
‘‘(ii) ELIGIBLE FAMILIES.—A family 
described in this clause is a family who has 
an income, as of the most recent review 
pursuant to subparagraph (A) or clause (i) 
of this subparagraph, of which 90 percent 
or more consists of fixed income, as such 
term is defined in clause (iii). 
‘‘(iii) FIXED INCOME.—For purposes 
of this subparagraph, the term ‘fixed in-
come’ includes income from— 
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‘‘(I) the supplemental security in-
come program under title XVI of the 
Social Security Act, including supple-
mentary payments pursuant to an 
agreement for Federal administration 
under section 1616(a) of the Social 
Security Act and payments pursuant 
to an agreement entered into under 
section 212(b) of Public Law 93–66; 
‘‘(II) Social Security payments; 
‘‘(III) Federal, State, local and 
private pension plans; and 
‘‘(IV) other periodic payments re-
ceived from annuities, insurance poli-
cies, retirement funds, disability or 
death benefits, and other similar types 
of periodic receipts that are of sub-
stantially the same amounts from year 
to year. 
‘‘(C) IN GENERAL.—Reviews of family in-
come for purposes of this section shall be sub-
ject to the provisions of section 904 of the 
Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988. 
‘‘(8) CALCULATION OF INCOME.— 
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‘‘(A) USE OF CURRENT YEAR INCOME.—In 
determining family income for initial occupancy 
or provision of housing assistance pursuant to 
clause (i) of paragraph (7)(A) or pursuant to 
reviews pursuant to clause (iii) or (iv) of such 
paragraph, a public housing agency or owner 
shall use the income of the family as estimated 
by the agency or owner for the upcoming year. 
‘‘(B) USE
OF
PRIOR
YEAR
INCOME.—In 
determining family income for annual reviews 
pursuant to paragraph (7)(A)(ii), a public hous-
ing agency or owner shall, except as otherwise 
provided in this paragraph, use the income of 
the family as determined by the agency or 
owner for the preceding year, taking into con-
sideration any redetermination of income during 
such prior year pursuant to clause (iii) or (iv) 
of paragraph (7)(A). 
‘‘(C) INFLATIONARY
ADJUSTMENT
FOR 
FIXED INCOME FAMILIES.— 
‘‘(i) IN
GENERAL.—In any year in 
which a public housing agency or owner 
does not conduct a review of income for 
any family described in clause (ii) of para-
graph (7)(B) pursuant to the authority 
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under clause (i) of such paragraph to 
waive such a review, such family’s prior 
year’s income determination shall, subject 
to clauses (ii) and (iii), be adjusted by ap-
plying an inflationary factor as the Sec-
retary shall, by regulation, establish. 
‘‘(ii) 
EXEMPTION
FROM
ADJUST-
MENT.—A public housing agency or owner 
may exempt from an adjustment pursuant 
to clause (i) any income source for which 
income does not increase from year to 
year. 
‘‘(iii) 
APPLICABILITY
OF
INFLA-
TIONARY FACTOR.—The inflationary factor 
adjustment referred to in clause (i) shall 
not be made with respect to the first year 
after the year in which housing is occupied 
or housing assistance is initially provided 
for a family. 
‘‘(D) OTHER INCOME.—In determining the 
income for any family based on the prior year’s 
income, with respect to prior year calculations 
of income not subject to subparagraph (B), a 
public housing agency or owner may make other 
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adjustments as it considers appropriate to re-
flect current income. 
‘‘(E) SAFE
HARBOR.—A public housing 
agency or owner may, to the extent such infor-
mation is available to the public housing agency 
or owner, determine the family’s income prior 
to the application of any deductions based on 
timely income determinations made for pur-
poses of other means-tested Federal public as-
sistance programs (including the program for 
block grants to States for temporary assistance 
for needy families under part A of title IV of 
the Social Security Act, a program for Medicaid 
assistance under a State plan approved under 
title XIX of the Social Security Act, and the 
food stamp program as defined in section 3(h) 
of the Food Stamp Act of 1977). The Secretary 
shall, in consultation with other appropriate 
Federal agencies, develop procedures to enable 
public housing agencies and owners to have ac-
cess to such income determinations made by 
other means-tested Federal programs that the 
Secretary determines to have comparable reli-
ability. Exchanges of such information shall be 
subject to the same limitations and tenant pro-
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tections provided under section 904 of the 
Stewart B. McKinney Homeless Assistance Act 
Amendments of 1988 (42 U.S.C. 3544) with re-
spect to information obtained under the require-
ments of section 303(i) of the Social Security 
Act (42 U.S.C. 503(i)). 
‘‘(F) PHA AND OWNER COMPLIANCE.—A 
public housing agency or owner may not be con-
sidered to fail to comply with this paragraph or 
paragraph (7) due solely to any de minimus er-
rors made by the agency or owner in calculating 
family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as sub-
section (d). 
(b) INCOME.—Section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended— 
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) INCOME.—The term ‘income’ means, with 
respect to a family, income received from all sources 
by each member of the household who is 18 years 
of age or older or is the head of household or spouse 
of the head of the household, plus unearned income 
by or on behalf of each dependent who is less than 
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18 years of age, as determined in accordance with 
criteria prescribed by the Secretary, in consultation 
with the Secretary of Agriculture, subject to the fol-
lowing requirements: 
‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual in-
come from assets, and profit or loss from a 
business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include— 
‘‘(i) any imputed return on assets; 
‘‘(ii) any amounts that would be eligi-
ble for exclusion under section 1613(a)(7) 
of the Social Security Act (42 U.S.C. 
1382b(a)(7)); and 
‘‘(iii) deferred disability benefits from 
the Department of Veterans Affairs that 
are received in a lump sum amount or in 
prospective monthly amounts. 
‘‘(C) EARNED
INCOME
OF
STUDENTS.— 
Such term does not include earned income of 
any dependent earned during any period that 
such dependent is attending school on a full- 
time basis or any grant-in-aid or scholarship 
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amounts related to such attendance used for 
the cost of tuition or books. 
‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 
Income shall be determined without regard to 
any amounts in or from, or any benefits from, 
any Coverdell education savings account under 
section 530 of the Internal Revenue Code of 
1986 or any qualified tuition program under 
section 529 of such Code. 
‘‘(E) OTHER
EXCLUSIONS.—Such term 
shall not include other exclusions from income 
as are established by the Secretary or any 
amount required by Federal law to be excluded 
from consideration as income. The Secretary 
may not require a public housing agency or 
owner to maintain records of any amounts ex-
cluded from income pursuant to this subpara-
graph.’’; and 
(2) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted 
income’ means, with respect to a family, the amount 
(as determined by the public housing agency or 
owner) of the income of the members of the family 
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residing in a dwelling unit or the persons on a lease, 
after any deductions from income as follows: 
‘‘(A) EARNED
INCOME
DISREGARD.—An 
amount equal to 10 percent of the lesser of— 
‘‘(i) the family’s earned income; or 
‘‘(ii) $9,000, except that such amount 
shall be adjusted annually by applying to 
such amount (as it may have been pre-
viously adjusted) an inflationary factor as 
the Secretary shall, by regulation, establish 
and except that for purposes of adjusted 
income determinations each year such 
amount shall be established by rounding 
the amount calculated down to the next 
lowest multiple of $1,000. 
The deduction under this subparagraph shall 
not be considered in determining adjusted in-
come for the purposes of section 16 (relating to 
eligibility for assisted housing and income mix). 
‘‘(B) ELDERLY
AND
DISABLED
FAMI-
LIES.—$725 in the case of any family that is 
an elderly family or a disabled family. 
‘‘(C) DEPENDENTS.—In the case of any 
family that includes a member or members 
who— 
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‘‘(i) are less than 18 years of age or 
attending school or vocational training on 
a full-time basis; or 
‘‘(ii) is a person with disabilities who 
is 18 years of age or older and resides in 
the household, 
$500 for each such member. 
‘‘(D) CHILD CARE.—The amount, if any, 
that exceeds 10 percent of annual family in-
come that is used to pay for unreimbursed child 
care expenses, which shall include child care for 
preschool-age children, for before- and after- 
care for children in school, and for other child 
care necessary to enable a member of the family 
to be employed or further his or her education. 
‘‘(E) HEALTH AND MEDICAL EXPENSES.— 
The amount, if any, by which 10 percent of an-
nual family income is exceeded by the sum of— 
‘‘(i) in the case of any elderly or dis-
abled family, any unreimbursed health and 
medical care expenses; and 
‘‘(ii) any unreimbursed reasonable at-
tendant care and auxiliary apparatus ex-
penses for each handicapped member of 
the family, to the extent necessary to en-
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able any member of such family to be em-
ployed. 
‘‘(F) PERMISSIVE DEDUCTIONS.—Such ad-
ditional deductions as a public housing agency 
may, at its discretion, establish, except that the 
Secretary shall establish procedures to ensure 
that such deductions do not materially increase 
Federal expenditures. 
The Secretary shall annually calculate the amounts 
of the deductions under subparagraphs (B) and (C), 
as such amounts may have been previously cal-
culated, by applying an inflationary factor as the 
Secretary shall, by regulation, establish, except that 
the actual deduction determined for each year shall 
be established by rounding such amount to the next 
lowest multiple of $25.’’. 
(c) HOUSING CHOICE VOUCHER PROGRAM.—Para-
graph (5) of section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended— 
(1) in the paragraph heading, by striking ‘‘AN-
NUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 
(2) in subparagraph (A)— 
(A) by striking ‘‘the provisions of’’ and in-
serting ‘‘paragraphs (7) and (8) of section 3(a) 
and to’’; and 
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(B) by striking ‘‘and shall be conducted 
upon the initial provision of housing assistance 
for the family and thereafter not less than an-
nually’’; and 
(3) in subparagraph (B), by striking the second 
sentence. 
(d) 
ENHANCED
VOUCHER
PROGRAM.—Section 
8(t)(1)(D) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ 
each place such term appears and inserting ‘‘annual ad-
justed income’’. 
(e) PROJECT-BASED HOUSING.—Paragraph (3) of 
section 8(c) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(c)(3)) is amended by striking the last 
sentence. 
(f) IMPACT ON PUBLIC HOUSING REVENUES.— 
(1) ADJUSTMENTS TO OPERATING FORMULA.— 
If the Secretary of Housing and Urban Development 
determines that the application of the amendments 
made by this section results in a material and dis-
proportionate reduction in the rental income of cer-
tain public housing agencies during the first year in 
which the amendments made by this section are im-
plemented, the Secretary may make appropriate ad-
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justments in the formula income for such year of 
those agencies experiencing such a reduction. 
(2) HUD REPORTS ON REVENUE AND COST IM-
PACT.—In each of the first two years after the first 
year in which the amendments made by this section 
are implemented, the Secretary of Housing and 
Urban Development shall submit a report to Con-
gress identifying and calculating the impact of 
changes made by the amendments made by this sec-
tion and sections 4 and 5 of this Act on the revenues 
and costs of operating public housing units, the 
voucher program for rental assistance under section 
8 of the United States Housing Act of 1937, and 
the program under such section 8 for project-based 
rental assistance. If such report identifies a material 
reduction in the net income of public housing agen-
cies nationwide or a material increase in the costs of 
funding the voucher program or the project-based 
assistance program, the Secretary may include in 
such report recommendations for legislative changes 
to reduce or eliminate such a reduction. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall take effect during the first calendar year 
after regulations or notice has been adopted to implement 
such amendments, except that the Secretary may delay 
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such effective date by one year upon a determination that 
such delay is necessary for public housing agencies and 
owners to make the necessary changes to comply with such 
amendments. 
SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS 
AND INCOME. 
(a) ASSETS.—Section 16 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437n) is amended by insert-
ing after subsection (d) the following new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS-
SETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to para-
graph (3) and notwithstanding any other provision 
of this Act, a dwelling unit assisted under this Act 
may not be rented and assistance under this Act 
may not be provided, either initially or at each recer-
tification of family income, to any family— 
‘‘(A) whose net family assets exceed 
$100,000, as such amount is adjusted annually 
by applying an inflationary factor as the Sec-
retary considers appropriate; or 
‘‘(B) who has a present ownership interest 
in, a legal right to reside in, and the effective 
legal authority to sell, real property that is suit-
able for occupancy as a residence, except that 
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the prohibition under this subparagraph shall 
not apply to— 
‘‘(i) any property for which the family 
is receiving assistance under this Act; 
‘‘(ii) any person that is a victim of do-
mestic violence; or 
‘‘(iii) any family that is making a 
good faith effort to sell such property. 
‘‘(2) NET FAMILY ASSETS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘net family assets’ means, 
for all members of the household, the net cash 
value of all assets after deducting reasonable 
costs that would be incurred in disposing of real 
property, savings, stocks, bonds, and other 
forms of capital investment. Such term does not 
include interests in Indian trust land, equity ac-
counts in homeownership programs of the De-
partment of Housing and Urban Development, 
or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not 
include— 
‘‘(i) the value of personal property, ex-
cept for items of personal property of sig-
nificant value, as the Secretary may estab-
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lish or the public housing agency may de-
termine; 
‘‘(ii) the value of any retirement ac-
count; 
‘‘(iii) real property for which the fam-
ily does not have the effective legal author-
ity necessary to sell such property; 
‘‘(iv) any amounts recovered in any 
civil action or settlement based on a claim 
of malpractice, negligence, or other breach 
of duty owed to a member of the family 
and arising out of law, that resulted in a 
member of the family being disabled; 
‘‘(v) the value of any Coverdell edu-
cation savings account under section 530 
of the Internal Revenue Code of 1986 or 
any qualified tuition program under sec-
tion 529 of such Code; and 
‘‘(vi) such other exclusions as the Sec-
retary may establish. 
‘‘(C) TRUST FUNDS.—In cases in which a 
trust fund has been established and the trust is 
not revocable by, or under the control of, any 
member of the family or household, the value of 
the trust fund shall not be considered an asset 
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of a family if the fund continues to be held in 
trust. Any income distributed from the trust 
fund shall be considered income for purposes of 
section 3(b) and any calculations of annual 
family income, except in the case of medical ex-
penses for a minor. 
‘‘(3) SELF-CERTIFICATION.— 
‘‘(A) NET
FAMILY
ASSETS.—A public 
housing agency or owner may determine the net 
assets of a family, for purposes of this section, 
based on a certification by the family— 
‘‘(i) that the net assets of such family 
do not exceed $50,000; or 
‘‘(ii) of the amounts reported by the 
family at the time the agency or owner re-
views the family’s income. 
‘‘(B) NO CURRENT REAL PROPERTY OWN-
ERSHIP.—A public housing agency or owner 
may determine compliance with paragraph 
(1)(B) based on a certification by the family 
that such family does not have any current 
ownership interest in any real property at the 
time the agency or owner reviews the family’s 
income. 
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come, the ability of the family to find suitable alter-
native housing, and whether supportive services are 
being provided. 
‘‘(6) AUTHORITY TO DELAY EVICTIONS.—In the 
case of a family residing in a dwelling unit assisted 
under this Act who does not comply with the limita-
tion under paragraph (1), the public housing agency 
or project owner may delay eviction or termination 
of the family based on such noncompliance for a pe-
riod of not more than 6 months.’’. 
(b) INCOME.—The United States Housing Act of 
1937 is amended— 
(1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), 
by striking the first sentence and inserting the fol-
lowing: ‘‘Dwelling units assisted under this Act may 
be rented, and assistance under this Act may be pro-
vided, whether initially or at time of recertification, 
only to families who are low-income families at the 
time such initial or continued assistance, respec-
tively, is provided, except that families residing in 
dwelling units as of the date of the enactment of the 
Section 8 Voucher Reform Act of 2009 that, under 
agreements in effect on such date of enactment, may 
have incomes up to 95 percent of local area median 
income shall continue to be eligible for assistance at 
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recertification as long as they continue to comply 
with such income restrictions. When recertifying 
family income with respect to families residing in 
public housing dwelling units, a public housing agen-
cy may, in the discretion of the agency and only pur-
suant to a policy that is set forth in the public hous-
ing agency plan under section 5A for the agency, 
choose not to enforce the prohibition under the pre-
ceding sentence. When recertifying family income 
with respect to families residing in dwelling units for 
which project-based assistance is provided, a project 
owner may, in the owner’s discretion and only pur-
suant to a policy adopted by such owner, choose not 
to enforce such prohibition. In the case of a family 
residing in a dwelling unit assisted under this Act 
who does not meet the requirements under the first 
sentence of this paragraph or the requirements 
under section 8(o)(4), the public housing agency or 
project owner may delay eviction or termination of 
the family based on such noncompliance for a period 
of not more than 6 months.’’; 
(2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), 
by striking the matter preceding subparagraph (A) 
and inserting the following: 
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‘‘(4) ELIGIBLE
FAMILIES.—Assistance under 
this subsection may be provided, whether initially or 
at each recertification, only pursuant to subsection 
(t) to a family eligible for assistance under such sub-
section or to a family who at the time of such initial 
or continued assistance, respectively, is a low-income 
family that is—’’; and 
(3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), 
by striking ‘‘at the time it initially occupied such 
dwelling unit’’ and inserting ‘‘according to the re-
strictions under section 3(a)(1)’’. 
SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORK-
ING FAMILIES. 
(a) VOUCHERS.—Section 16(b)(1) of the United 
States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is 
amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (A) the poverty line (as such 
term is defined in section 673 of the Omnibus Budg-
et Reconciliation Act of 1981 (42 U.S.C. 9902), in-
cluding any revision required by such section) appli-
cable to a family of the size involved, or (B)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (A) of this sen-
tence shall not apply in the case of public housing 
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agencies located in Puerto Rico or any other terri-
tory or possession of the United States’’. 
(b) PUBLIC HOUSING.—Section 16(a)(2)(A) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437n(a)(2)(A)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (i) the poverty line (as such 
term is defined in section 673 of the Omnibus Budg-
et Reconciliation Act of 1981 (42 U.S.C. 9902), in-
cluding any revision required by such section) appli-
cable to a family of the size involved, or (ii)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (i) of this sen-
tence shall not apply in the case of projects located 
in Puerto Rico or any other territory or possession 
of the United States’’. 
(c) PROJECT-BASED SECTION 8 ASSISTANCE.—Sec-
tion 16(c)(3) of the United States Housing Act of 1937 
(42 U.S.C. 1437n(c)(3)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (A) the poverty line (as such 
term is defined in section 673 of the Omnibus Budg-
et Reconciliation Act of 1981 (42 U.S.C. 9902), in-
cluding any revision required by such section) appli-
cable to a family of the size involved, or (B)’’; and 
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(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (A) of this sen-
tence shall not apply in the case of projects located 
in Puerto Rico or any other territory or possession 
of the United States’’. 
SEC. 6. VOUCHER RENEWAL FUNDING. 
(a) IN GENERAL.—Section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) is amended by 
striking subsection (dd) and inserting the following new 
subsection: 
‘‘(dd) TENANT-BASED VOUCHERS.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated, for each of 
fiscal years 2010 through 2014, such sums as may 
be necessary for tenant-based assistance under sub-
section (o) for the following purposes: 
‘‘(A) To renew all expiring annual con-
tributions contracts for tenant-based rental as-
sistance. 
‘‘(B) To provide tenant-based rental assist-
ance for— 
‘‘(i) conversion of section 23 projects 
to assistance under this section; 
‘‘(ii) the family unification program 
under subsection (x) of this section; 
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‘‘(iii) relocation of witnesses in con-
nection with efforts to combat crime in 
public and assisted housing pursuant to a 
request from a law enforcement or pros-
ecution agency; 
‘‘(iv) enhanced vouchers authorized 
under subsection (t) of this section; 
‘‘(v) relocation or replacement in con-
nection with the HOPE VI program under 
section 24; 
‘‘(vi) demolition or disposition of pub-
lic housing units pursuant to section 18 of 
the United States Housing Act of 1937 
(42 U.S.C. 1437p); 
‘‘(vii) mandatory conversions of public 
housing to vouchers, pursuant to section 
33 of the United States Housing Act of 
1937, respectively (42 U.S.C. 1437z–5); 
‘‘(viii) voluntary conversions of public 
housing to vouchers, pursuant to section 
22 of the United States Housing Act of 
1937, respectively (42 U.S.C. 1437t); 
‘‘(ix) vouchers necessary to comply 
with a consent decree or court order; 
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‘‘(x) tenant protection vouchers in 
connection with dwelling units that cease 
to receive project-based assistance under 
subsection (b), (c), (d), (e), or (v) of this 
section; 
‘‘(xi) 
relocation 
and 
replacement 
vouchers in connection with public housing 
units that are demolished or disposed of 
pursuant to eminent domain, pursuant to a 
homeownership program, or in connection 
with a mixed finance development method 
under section 35 or otherwise; 
‘‘(xii) vouchers used for the preserva-
tion of public housing units not included in 
the 
operating 
formula 
under 
section 
9(e)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437g(e)(2)); 
‘‘(xiii) emergency voucher assistance 
for the protection of victims of domestic vi-
olence, dating violence, sexual assault, or 
stalking; 
‘‘(xiv) tenant protection vouchers in 
connection with the foreclosure or disposi-
tion of multifamily housing subject to a 
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mortgage insured and subsidized under the 
National Housing Act; and 
‘‘(xv) tenant protection assistance, in-
cluding replacement and relocation assist-
ance. 
Subject only to the availability of sufficient 
amounts provided in appropriation Acts, the 
Secretary shall provide tenant-based rental as-
sistance in connection with all dwelling units 
that cease to be available as assisted housing as 
a result of clauses (i), (iv), (v), (vi), (vii), (x), 
(xi), and (xiv). 
‘‘(2) ALLOCATION
OF
RENEWAL
FUNDING 
AMONG PUBLIC HOUSING AGENCIES.— 
‘‘(A) From amounts appropriated for each 
year pursuant to paragraph (1)(A), the Sec-
retary shall provide renewal funding for each 
public housing agency— 
‘‘(i) based on leasing and cost data 
from the preceding calendar year, as ad-
justed by an annual adjustment factor to 
be established by the Secretary, which shall 
be established using the smallest geo-
graphical areas for which data on changes 
in rental costs are annually available; 
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‘‘(ii) by making any adjustments nec-
essary to provide for the first-time renewal 
of 
vouchers 
funded 
under 
paragraph 
(1)(B) and of any incremental vouchers 
funded in previous years; 
‘‘(iii) by making any adjustments nec-
essary for full year funding of vouchers 
moved into and out of the jurisdiction of 
the public housing agency in the prior cal-
endar year pursuant to portability proce-
dures under subsection (r)(2); and 
‘‘(iv) by making such other adjust-
ments as the Secretary considers appro-
priate, including adjustments necessary to 
address changes in voucher utilization 
rates and voucher costs related to natural 
and other major disasters. 
‘‘(B) LEASING AND COST DATA.—For pur-
poses of subparagraph (A)(i), leasing and cost 
data shall be calculated annually by using the 
average for the preceding calendar year. Such 
leasing and cost data shall be adjusted to in-
clude vouchers that were set aside under a com-
mitment to provide project-based assistance 
under subsection (o)(13) and to exclude 
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amounts funded through advances under para-
graph (3). Such leasing and cost data shall not 
include funds not appropriated for tenant-based 
assistance under section 8(o), unless the agen-
cy’s funding was prorated in the prior year and 
the agency used other funds to maintain vouch-
ers in use. 
‘‘(C) OVERLEASING.—For the purpose of 
determining allocations under subsection (A)(i), 
the leasing rate calculated for the prior cal-
endar year may exceed an agency’s authorized 
voucher level, except that such calculation shall 
not utilize a leasing rate in excess of 103 per-
cent of the leasing rate in the year preceding 
such prior year (after making appropriate ad-
justments for incremental and new enhanced 
vouchers) which results from the use of accu-
mulated amounts, as referred to in the last sen-
tence of paragraph (4)(A). 
‘‘(D) MOVING TO WORK; HOUSING INNOVA-
TION
PROGRAM.—Notwithstanding 
subpara-
graphs (A) and (B), each public housing agency 
participating in any year in the moving to work 
program or the housing innovation program 
under section 37 of this Act shall be funded 
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pursuant to its agreement under such program 
and shall be subject to any pro rata adjustment 
made under subparagraph (F)(i). 
‘‘(E) 
UNREIMBURSED
PORTABILITY 
COSTS.—The Secretary may reimburse public 
housing agencies for increased costs related to 
portability incurred during the prior year that 
were not reimbursed pursuant to paragraph 
(4)(B)(i). 
‘‘(F) PRO RATA ALLOCATION.— 
‘‘(i) INSUFFICIENT
FUNDS.—To the 
extent that amounts made available for a 
fiscal year are not sufficient to provide 
each public housing agency with the full al-
location for the agency determined pursu-
ant to subparagraphs (A) and (D), the 
Secretary shall reduce such allocation for 
each agency on a pro rata basis, except 
that renewal funding of enhanced vouchers 
under section 8(t) shall not be subject to 
such proration. 
‘‘(ii) EXCESS FUNDS.—To the extent 
that amounts made available for a fiscal 
year exceed the amount necessary to pro-
vide each housing agency with the full allo-
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cation for the agency determined pursuant 
to subparagraphs (A) and (D), such excess 
amounts shall be used for the purposes 
specified in paragraph (4)(B). 
‘‘(G) PROMPT
FUNDING
ALLOCATION.— 
The Secretary shall allocate all funds under this 
subsection for each year before the latter of (i) 
February 15, or (ii) the expiration of the 45- 
day period beginning upon the enactment of the 
appropriations Act funding such renewals. 
‘‘(3) ADVANCES.— 
‘‘(A) AUTHORITY.—During the last 3 
months of each calendar year, the Secretary 
shall provide amounts out of any appropriations 
made pursuant to paragraph (1) for the fiscal 
year beginning on October 1 of that calendar 
year to any public housing agency, at the re-
quest of the agency, in an amount up to two 
percent of the allocation for the agency for such 
calendar year, subject to subparagraph (C). 
‘‘(B) USE.—Amounts advanced under sub-
paragraph (A) may be used to pay for addi-
tional voucher costs, including costs related to 
temporary overleasing. 
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‘‘(C) USE
OF
PRIOR
YEAR
AMOUNTS.— 
During the last 3 months of a calendar year, if 
amounts previously provided to a public housing 
agency for tenant-based assistance for such 
year or for previous years remain unobligated 
and available to the agency— 
‘‘(i) the agency shall exhaust such 
amounts to cover any additional voucher 
costs under subparagraph (B) before 
amounts advanced under subparagraph (A) 
may be so used; and 
‘‘(ii) the amount that may be ad-
vanced under subparagraph (A) to the 
agency shall be reduced by an amount 
equal to the total of such previously pro-
vided and unobligated amounts. 
‘‘(D) 
REPAYMENT.—Amounts 
advanced 
under subparagraph (A) in a calendar year 
shall be repaid to the Secretary in the subse-
quent calendar year by offsetting the amounts 
made available for such agency for such subse-
quent calendar year pursuant to allocation 
under paragraph (2) by an amount equal to the 
amount so advanced to the agency. 
‘‘(4) OFFSET.— 
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‘‘(A) IN
GENERAL.—The Secretary shall 
offset, from amounts provided under the annual 
contributions contract for a public housing 
agency for a calendar year, all accumulated 
amounts allocated under paragraph (2) and 
from previous years that are unused by the 
agency at the end of each calendar year, except 
for an amount not less than 6 percent of such 
amount allocated to the agency pursuant to 
paragraph (2) for the preceding calendar year. 
Notwithstanding any other provision of law, 
each public housing agency may retain all 
amounts not offset under this subparagraph, 
and may use such amounts for all authorized 
purposes. 
‘‘(B) REALLOCATION.—Not later than the 
latter of April 1 of each calendar year or 75 
days after the enactment of an appropriations 
Act providing funding for voucher renewal 
costs, the Secretary shall, from amounts avail-
able pursuant to paragraph (2)(E) and from 
any other available amounts appropriated for 
such purpose— 
‘‘(i) set aside and subsequently make 
available such amounts as the Secretary 
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considers likely to be needed, when com-
bined with funds from a central fund or 
any other source of funds appropriated or 
made available for such purpose, to reim-
burse public housing agencies for increased 
costs related to portability and family self- 
sufficiency activities pursuant to section 
23(h) during such year; and 
‘‘(ii) reallocate all remaining amounts 
among public housing agencies, with pri-
ority given based on the extent to which an 
agency has utilized the amount allocated 
under paragraph (2) for the agency to 
serve eligible families and the relative need 
for additional voucher assistance for use 
only to increase voucher leasing rates.’’. 
(b) PORTABILITY.—The Secretary of Housing and 
Urban Development shall, not later than the expiration 
of the 6-month period beginning on the date of the enact-
ment of this Act, issue a proposed rule for comment to 
modify the regulations governing the responsibilities of 
public housing agencies in cases in which families assisted 
with tenant-based assistance under section 8 of the United 
States Housing Act of 1937 exercise their right to move 
to a different jurisdiction under the Secretary’s regula-
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tions regarding portability procedures (24 C.F.R. 
982.355), to eliminate, or minimize to the greatest extent 
feasible consistent with available funding, billing between 
agencies and administrative barriers to families’ choices 
of where to reside, without undermining the ability of pub-
lic housing agencies to serve their waiting lists. The Sec-
retary shall finalize regulations modifying such portability 
procedures in accordance with this subsection not later 
than the expiration of the 12-month period beginning 
upon the date of the enactment of this Act. 
(c) VOUCHERS FOR PERSONS WITH DISABILITIES.— 
The Secretary of Housing and Urban Development shall 
develop and issue, to public housing agencies that have 
received voucher assistance under section 8(o) for non-el-
derly disabled families pursuant to appropriations Acts for 
fiscal year 1997 and fiscal years thereafter, guidance to 
ensure that, to the maximum extent practicable, such 
vouchers continue to be provided upon turnover to quali-
fied non-elderly disabled families. 
SEC. 7. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—Section 8(q) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended— 
(1) in paragraph (1)— 
(A) by striking subparagraphs (B) and (C) 
and inserting the following new subparagraphs: 
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‘‘(B) CALCULATION.—The fee under this 
subsection shall— 
‘‘(i) be payable to each public housing 
agency for each month for which a dwell-
ing unit is covered by an assistance con-
tract; 
‘‘(ii) be based on a per-unit fee, which 
shall be based on the per-unit fee payable 
to the agency in fiscal year 2003 and up-
dated for each subsequent year as specified 
in subsection (iv), or on such formula 
which the Secretary may, by regulation, es-
tablish using a per-unit fee structure which 
shall provide for the payment of the full 
cost of administering vouchers, and which 
may include performance incentives con-
sistent with subsection (o)(21); 
‘‘(iii) include an amount for the cost 
of issuing a voucher to new participants; 
‘‘(iv) be updated each year using an 
index of changes in wage and benefit data 
or other objectively measurable data that 
reflect the costs of administering the pro-
gram for such assistance, as determined by 
the Secretary; and 
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‘‘(v) include an amount for the cost of 
family self-sufficiency coordinators, as pro-
vided in section 23(h)(1). 
‘‘(C) PUBLICATION.—The Secretary shall 
cause to be published in the Federal Register 
the fee rate for each geographic area.’’; and 
(B) by striking subparagraph (E) and in-
serting the following new subparagraph; 
‘‘(E) FEE FOR AGENCY-OWNED UNITS.— 
The Secretary shall establish a fee for dwelling 
units owned by a public housing agency that re-
flects reasonable costs of administration, which 
shall take into consideration the third-party in-
spection and rent determination expenses in-
curred in compliance with the requirements of 
subsection (o)(11).’’; and 
(2) in paragraph (4), by striking ‘‘1999’’ and 
inserting ‘‘2010’’. 
(b) ADMINISTRATIVE FEES FOR FAMILY SELF-SUF-
FICIENCY PROGRAM COSTS.—Subsection (h) of section 23 
of the United States Housing Act of 1937 (42 U.S.C. 
1437u(h)) is amended by striking paragraph (1) and in-
serting the following new paragraph: 
‘‘(1) SECTION 8 FEES.— 
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‘‘(A) IN
GENERAL.—The Secretary shall 
establish a fee under section 8(q) for the costs 
incurred in administering the self-sufficiency 
program under this section to assist families re-
ceiving voucher assistance through section 8(o). 
‘‘(B) ELIGIBILITY FOR FEE.—The fee shall 
provide funding for family self-sufficiency coor-
dinators as follows: 
‘‘(i) BASE
FEE.—A public housing 
agency serving 25 or more participants in 
the family self-sufficiency program under 
this section shall receive a fee equal to the 
costs of employing one full-time family 
self-sufficiency coordinator. An agency 
serving fewer than 25 such participants 
shall receive a prorated fee. 
‘‘(ii) ADDITIONAL
FEE.—An agency 
that meets minimum performance stand-
ards shall receive an additional fee suffi-
cient to cover the costs of employing a sec-
ond family self-sufficiency coordinator if 
the agency has 75 or more participating 
families, and a third such coordinator if it 
has 125 or more participating families. 
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‘‘(iii) PREVIOUSLY
FUNDED
AGEN-
CIES.—An agency that received funding 
from the Department of Housing and 
Urban Development for more than three 
such coordinators in any of fiscal years 
1998 through 2009 shall receive funding 
for the highest number of coordinators 
funded in a single fiscal year during that 
period, provided they meet applicable size 
and performance standards. 
‘‘(iv) INITIAL
YEAR.—For the first 
year in which a public housing agency ex-
ercises its right to develop an family self- 
sufficiency program for its residents, it 
shall be entitled to funding to cover the 
costs of up to one family self-sufficiency 
coordinator, based on the size specified in 
its action plan for such program. 
‘‘(v) STATE
AND
REGIONAL
AGEN-
CIES.—For purposes of calculating the 
family self-sufficiency portion of the ad-
ministrative fee under this subparagraph, 
each administratively distinct part of a 
State or regional public housing agency 
shall be treated as a separate agency. 
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‘‘(vi) DETERMINATION
OF
NUMBER 
OF
COORDINATORS.—In 
determining 
whether a public housing agency meets a 
specific threshold for funding pursuant to 
this paragraph, the number of participants 
being served by the agency in its family 
self-sufficiency program shall be considered 
to be the average number of families en-
rolled in such agency’s program during the 
course of the most recent fiscal year for 
which the Department of Housing and 
Urban Development has data. 
‘‘(C) PRORATION.—If insufficient funds 
are available in any fiscal year to fund all of the 
coordinators authorized under this section, the 
first priority shall be given to funding one coor-
dinator at each agency with an existing family 
self-sufficiency program. The remaining funds 
shall be prorated based on the number of re-
maining coordinators to which each agency is 
entitled under this subparagraph. 
‘‘(D) RECAPTURE.—Any fees allocated 
under this subparagraph by the Secretary in a 
fiscal year that have not been spent by the end 
of the subsequent fiscal year shall be recaptured 
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by the Secretary and shall be available for pro-
viding additional fees pursuant to subparagraph 
(B)(ii). 
‘‘(E) PERFORMANCE STANDARDS.—Within 
six months after the date of the enactment of 
this paragraph, the Secretary shall publish a 
proposed rule specifying the performance stand-
ards applicable to funding under clauses (ii) 
and (iii) of subparagraph (B). Such standards 
shall include requirements applicable to the 
leveraging of in-kind services and other re-
sources to support the goals of the family self- 
sufficiency program. 
‘‘(F) DATA COLLECTION.—Public housing 
agencies receiving funding under this paragraph 
shall collect and report to the Secretary, in such 
manner as the Secretary shall require, informa-
tion on the performance of their family self-suf-
ficiency programs. 
‘‘(G) EVALUATION.—The Secretary shall 
conduct a formal and scientific evaluation of 
the effectiveness of well-run family self-suffi-
ciency programs, comparing outcomes of fami-
lies participating in such programs with fami-
lies who are not, using random assignment of 
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participants to the extent practicable. Not later 
than the expiration of the 4-year period begin-
ning upon the enactment of this paragraph, the 
Secretary shall submit an interim evaluation re-
port to the Congress. Not later than the expira-
tion of the 8-year period beginning upon such 
enactment, the Secretary shall submit a final 
evaluation report to the Congress. There is au-
thorized to be appropriated $10,000,000 to 
carry out the evaluation under this subpara-
graph. 
‘‘(H) INCENTIVES FOR INNOVATION AND 
HIGH PERFORMANCE.—The Secretary may re-
serve up to 10 percent of the amounts made 
available for administrative fees under this 
paragraph to provide support to or reward fam-
ily self-sufficiency programs that are particu-
larly innovative or highly successful in achieving 
the goals of the program.’’. 
(c) REPEAL.—Section 202 of the Departments of 
Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997 (42 
U.S.C. 1437f note; Public Law 104–204; 110 Stat. 2893) 
is hereby repealed. 
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SEC. 8. HOMEOWNERSHIP. 
(a) SECTION 8 HOMEOWNERSHIP DOWNPAYMENT 
PROGRAM.—Section 8(y)(7) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(y)(7)) is amended by strik-
ing subparagraphs (A) and (B) and inserting the following 
new subparagraphs: 
‘‘(A) IN GENERAL.—Subject to the provi-
sions of this paragraph, in the case of a family 
on whose behalf rental assistance under section 
8(o) has been provided for a period of not less 
than 12 months prior to the date of receipt of 
downpayment assistance under this paragraph, 
a public housing agency may, in lieu of pro-
viding monthly assistance payments under this 
subsection on behalf of a family eligible for 
such assistance and at the discretion of the 
agency, provide a downpayment assistance 
grant in accordance with subparagraph (B). 
‘‘(B) GRANT
REQUIREMENTS.—A down-
payment assistance grant under this para-
graph— 
‘‘(i) shall be used by the family only 
as a contribution toward the downpayment 
and reasonable and customary closing 
costs required in connection with the pur-
chase of a home; 
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‘‘(ii) shall be in the form of a single 
one-time grant; and 
‘‘(iii) may not exceed $10,000. 
‘‘(C) NO EFFECT ON OBTAINING OUTSIDE 
SOURCES
FOR
DOWNPAYMENT
ASSISTANCE.— 
This Act may not be construed to prohibit a 
public housing agency from providing downpay-
ment assistance to families from sources other 
than a grant provided under this Act, or as de-
termined by the public housing agency.’’. 
(b) USE OF VOUCHERS FOR MANUFACTURED HOUS-
ING.—Section 8(o)(12) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(12)) is amended— 
(1) in subparagraph (A), by striking the period 
at the end of the first sentence and all that follows 
through ‘‘of’’ in the second sentence and inserting 
‘‘and rents’’; and 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘the rent’’ 
and all that follows and inserting the following: 
‘‘rent shall mean the sum of the monthly pay-
ments made by a family assisted under this 
paragraph to amortize the cost of purchasing 
the manufactured home, including any required 
insurance and property taxes, the monthly 
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amount allowed for tenant-paid utilities, and 
the monthly rent charged for the real property 
on which the manufactured home is located, in-
cluding monthly management and maintenance 
charges.’’; 
(B) by striking clause (ii); and 
(C) in clause (iii)— 
(i) by inserting after the period at the 
end the following: ‘‘If the amount of the 
monthly assistance payment for a family 
exceeds the monthly rent charged for the 
real property on which the manufactured 
home is located, including monthly man-
agement and maintenance charges, a pub-
lic housing agency may pay the remainder 
to the family, lender or utility company, or 
may choose to make a single payment to 
the family for the entire monthly assist-
ance amount.’’; and 
(ii) by redesignating such clause as 
clause (ii). 
SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT 
REPORTING AGENCIES. 
Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a), as amended by the preceding provi-
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sions of this Act, is further amended by adding at the end 
the following new subsection: 
‘‘(e) PHA REPORTING
OF RENT PAYMENTS
TO 
CREDIT REPORTING AGENCIES.— 
‘‘(1) AUTHORITY.—To the extent that a family 
receiving tenant-based housing choice vouchers 
under section 8 by a public housing agency agrees 
in writing to reporting under this subsection, the 
public housing agency may submit to consumer re-
porting agencies described in section 603(p) of the 
Fair Credit Reporting Act (15 U.S.C. 1681a) infor-
mation regarding the past rent payment history of 
the family with respect to the dwelling unit for 
which such assistance is provided. 
‘‘(2) FORMAT.—The Secretary, after consulta-
tion with consumer reporting agencies referred in 
paragraph (1), shall establish a system and format 
to be used by public housing agencies for reporting 
of information under such paragraph that provides 
such information in a format and manner that is 
similar to other credit information submitted to such 
consumer reporting agencies and is usable by such 
agencies.’’. 
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SEC. 10. PERFORMANCE ASSESSMENTS. 
Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following new paragraph: 
‘‘(21) PERFORMANCE ASSESSMENTS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Secretary 
shall, by regulation, establish standards and 
procedures for assessing the performance of 
public housing agencies in carrying out the pro-
grams for tenant-based rental assistance under 
this subsection and for homeownership assist-
ance under subsection (y). 
‘‘(B) CONTENTS.—The standards and pro-
cedures under this paragraph shall provide for 
assessment of the performance of public hous-
ing agencies in the following areas: 
‘‘(i) Extent to which dwelling units 
comply with housing quality standards, in-
cluding compliance with inspection require-
ments. 
‘‘(ii) Extent of utilization of assist-
ance amounts provided to the agency and 
of authorized vouchers, using appropriate 
adjustments for vouchers set aside to meet 
commitments under paragraph (13). 
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‘‘(iii) Timeliness and accuracy of re-
porting by the agency to the Secretary. 
‘‘(iv) Effectiveness in carrying out 
policies that result in deconcentration of 
poverty. 
‘‘(v) Reasonableness of rent burdens, 
consistent with public housing agency re-
sponsibilities under section 8(o)(1)(E)(iii). 
‘‘(vi) Accurate calculations of rent, 
utility allowances, and subsidy payments. 
‘‘(vii) Effectiveness in carrying out 
family self-sufficiency activities. 
‘‘(viii) Timeliness of actions related to 
landlord participation. 
‘‘(ix) Compliance with targeting re-
quirements under section 16(b). 
‘‘(x) Such other areas as the Sec-
retary considers appropriate. 
‘‘(C) BIENNIAL
ASSESSMENT.—Not later 
than 2 years after the date of enactment of this 
paragraph, and at least every 2 years there-
after, the Secretary, using the standards and 
procedures established under this paragraph, 
shall— 
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‘‘(i) conduct an assessment of the per-
formance of each public housing agency 
carrying out a program referred to in sub-
paragraph (A); 
‘‘(ii) make such assessment available 
to the public housing agency and to the 
public via the website of the Department of 
Housing and Urban Development; and 
‘‘(iii) submit a report to Congress re-
garding the results of each such assess-
ment. 
‘‘(D) 
APPLICABILITY.—When 
imple-
mented, the performance assessment standards 
and procedures under this paragraph shall 
supercede the Section 8 Management Assess-
ment Program of the Secretary then in effect.’’. 
SEC. 11. PHA PROJECT-BASED ASSISTANCE. 
Section 8(o)(13) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(13)) is amended— 
(1) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), not more than 25 percent of the fund-
ing available for tenant-based assistance 
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under this section that is administered by 
the agency may be attached to structures 
pursuant to this paragraph. 
‘‘(ii) EXCEPTION.—An agency may at-
tach up to an additional 5 percent of the 
funding available for tenant-based assist-
ance under this section to structures pur-
suant to this paragraph for dwelling units 
that house individuals and families that 
meet the definition of homeless under sec-
tion 103 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11302), that 
provide supportive housing to persons with 
disabilities, or that are located in areas 
where vouchers under this subsection are 
difficult to use, as specified in subpara-
graph (D)(ii)(II). The Secretary may, by 
regulation, establish additional categories 
for the exception under this clause.’’; 
(2) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) INCOME MIXING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), not more than the 
greater of 25 dwelling units or 25 percent 
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of the dwelling units in any project may be 
assisted under a housing assistance pay-
ment contract for project-based assistance 
pursuant to this paragraph. For purposes 
of this subparagraph, the term ‘project’ 
means a single building, multiple contig-
uous buildings, or multiple buildings on 
contiguous parcels of land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) CERTAIN
HOUSING.—The 
limitation under clause (i) shall not 
apply in the case of assistance under 
a contract for housing consisting of 
single family properties, or for dwell-
ing units that are specifically made 
available for households comprised of 
elderly families, disabled families, and 
families receiving comprehensive sup-
portive services for special needs pop-
ulations, such as individuals who were 
formerly homeless. For purposes of 
the preceding sentence, the term ‘sin-
gle family properties’ means buildings 
with no more than four dwelling units. 
‘‘(II) CERTAIN AREAS.— 
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‘‘(aa) With respect to areas 
in which fewer than 75 percent 
of families issued vouchers be-
come participants in the pro-
gram, the public housing agency 
has 
established 
the 
payment 
standard at 110 percent of the 
fair market rent for all census 
tracts in the area for the pre-
vious six months, the public 
housing agency has requested a 
higher payment standard, and 
the public housing agency grants 
an automatic extension of 90 
days (or longer) to families with 
vouchers who are attempting to 
find housing, clause (i) shall be 
applied by substituting ‘40 per-
cent’ for ‘25 percent’; and 
‘‘(bb) With respect to census 
tracts with a poverty rate of 20 
percent or less, clause (i) shall be 
applied by substituting ‘50 per-
cent’ for ‘25 percent’ and the 
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Secretary may, by regulation, es-
tablish additional conditions.’’; 
(3) in subparagraph (J)— 
(A) by striking the fifth and sixth sen-
tences and inserting the following: ‘‘A public 
housing agency may establish and utilize proce-
dures for maintaining site-based waiting lists 
under which applicants may apply directly at, 
or otherwise designate to the public housing 
agency, the project or projects in which they 
seek to reside, except that all applicants on the 
waiting list of an agency for assistance under 
this subsection shall be permitted to place their 
names on such separate list. All such proce-
dures shall comply with title VI of the Civil 
Rights Act of 1964, the Fair Housing Act, and 
other applicable civil rights laws. The owner or 
manager of a structure assisted under this 
paragraph shall not admit any family to a 
dwelling unit assisted under a contract pursu-
ant to this paragraph other than a family re-
ferred by the public housing agency from its 
waiting list, or a family on a site-based waiting 
list that complies with the requirements of this 
subparagraph. A public housing agency shall 
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disclose to each applicant all other options in 
the selection of a project in which to reside that 
are provided by the public housing agency and 
are available to the applicant.’’; and 
(B) by inserting after the third sentence 
the following new sentence: ‘‘Any family who re-
sides in a dwelling unit proposed to be assisted 
under this paragraph, or in a unit to be re-
placed by a proposed unit to be assisted under 
this paragraph shall be given an absolute pref-
erence for selection for placement in the pro-
posed unit, if the family is otherwise eligible for 
assistance under this subsection.’’; and 
(4) by adding at the end the following new sub-
paragraphs: 
‘‘(N) STRUCTURE OWNED BY AGENCY.— 
Notwithstanding any other provision of law, as 
part of an initiative to improve, develop, or re-
place a public housing site, a public housing 
agency may attach assistance to an existing, 
newly constructed, or rehabilitated structure in 
which the agency has an ownership interest 
without following a competitive process, but 
only if the agency includes such initiative in its 
public housing agency plan approved under sec-
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tion 5A and the units that receive such assist-
ance will not receive assistance under section 9. 
The preceding sentence may not be construed 
to limit the ability of a public housing agency 
to attach assistance to structures under other 
applicable law. 
‘‘(O) LEASES AND TENANCY.—Assistance 
provided under this paragraph shall be subject 
to the provisions of paragraph (7), except that 
subparagraph (A) of such paragraph shall not 
apply. Notwithstanding any other provision of 
law, for the term of the contract under this 
paragraph, the owner may terminate tenancy 
only for serious or repeated violations of the 
terms and conditions of the lease or for viola-
tion of applicable law. 
‘‘(P) ALLOWABLE TRANSFERS.—A public 
housing agency may transfer a portion of its 
vouchers and related budget authority to a pub-
lic housing agency that administers a program 
under this subsection in another jurisdiction lo-
cated in the same or a contiguous metropolitan 
area or county. 
‘‘(Q) RENT
FLEXIBILITY.—If a dwelling 
unit assisted under this paragraph also receives 
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funding from either of the funds established 
under section 1138 or 1339 of the Federal 
Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4568, 
4569), the rent for the unit, if agreed upon by 
both the public housing agency and the owner, 
may be established at an amount that is less 
than would otherwise be permitted under para-
graphs (1)(B) or (10)(A) of this section.’’. 
SEC. 12. RENT BURDENS. 
(a) REVIEWS.—Section 8(o)(1) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended 
by striking subparagraph (E) and inserting the following 
new subparagraph: 
‘‘(E) REVIEWS.— 
‘‘(i) RENT BURDENS.—The Secretary 
shall monitor rent burdens and submit a 
report to the Congress annually on the 
percentage of families assisted under this 
subsection, occupying dwelling units of any 
size, that pay more than 30 percent of 
their adjusted incomes for rent and such 
percentage that pay more than 40 percent 
of their adjusted incomes for rent. Using 
information regularly reported by public 
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housing agencies, the Secretary shall pro-
vide public housing agencies, on an annual 
basis, a report with the information de-
scribed in the first sentence of this clause, 
and may require a public housing agency 
to modify a payment standard that results 
in a significant percentage of families as-
sisted under this subsection, occupying 
dwelling units of any size, paying more 
than 30 percent of their adjusted incomes 
for rent. In implementing the requirements 
of this clause, the Secretary shall separate 
out calculations and consideration of fami-
lies whose rent contributions are calculated 
under section 3(a)(3) and clauses (ii) and 
(iii) of paragraph (2)(A) of this subsection. 
‘‘(ii) CONCENTRATION OF POVERTY.— 
The Secretary shall submit a report to the 
Congress annually on the degree to which 
families assisted under this subsection in 
each metropolitan area are clustered in 
lower rent, higher poverty areas, which 
shall include reporting of data by race and 
ethnicity, and how, and the extent to 
which, greater geographic distribution of 
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such assisted families could be achieved, 
including by increasing payment standards 
for particular communities within such 
metropolitan areas. 
‘‘(iii) PUBLIC HOUSING AGENCY RE-
SPONSIBILITIES.—Each 
public 
housing 
agency shall make publicly available the in-
formation on rent burdens provided by the 
Secretary pursuant to clause (i), and, for 
agencies located in metropolitan areas, the 
information on concentration provided by 
the Secretary pursuant to clause (ii). If a 
public housing agency has a high degree of 
concentration of poverty, as determined 
under a standard to be developed by the 
Secretary in accordance with clause (ii), or 
if the percentage of families paying more 
than 40 percent of their adjusted net in-
come exceeds a percentage level, to be es-
tablished by the Secretary, the public hous-
ing agency shall adjust the payment stand-
ard to eliminate excessive rent burdens 
within a reasonable time period or explain 
its reasons for not making such adjust-
ment. The Secretary may not deny the re-
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quest of a public housing agency to set a 
payment standard up to 120 percent of the 
fair market rent to eliminate excessive rent 
burdens in accordance with the preceding 
sentence, except on the basis that an agen-
cy has not demonstrated that its request 
meets these criteria. If a request of a pub-
lic housing agency has not been denied or 
approved with 45 days after the request is 
made, the request shall be considered to 
have been approved.’’. 
(b) PUBLIC
HOUSING
AGENCY
PLAN.—Section 
5A(d)(4) of the United States Housing Act of 1937 (42 
U.S.C. 1437c–1(d)(4)) is amended by inserting before the 
period at the end the following: ‘‘, including the report 
with respect to the agency furnished by the Secretary pur-
suant to section 8(o)(1)(E) concerning rent burdens and, 
if applicable, geographic concentration of voucher holders, 
any changes in rent or other policies the public housing 
agency is making to address excessive rent burdens or con-
centration, and if the public housing agency is not adjust-
ing its payment standard, its reasons for not doing so’’. 
(c) RENT BURDENS FOR PERSONS WITH DISABIL-
ITIES.—Subparagraph (D) of section 8(o)(1) is amended 
by inserting before the period at the end the following: 
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‘‘, except that a public housing agency may establish a 
payment standard of not more than 120 percent of the 
fair market rent where necessary as a reasonable accom-
modation for a person with a disability, without approval 
of the Secretary. A public housing agency may seek ap-
proval of the Secretary to use a payment standard greater 
than 120 percent of the fair market rent as a reasonable 
accommodation for a person with a disability’’. 
SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT. 
(a) IN GENERAL.—Paragraph (1) of section 8(c) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(c)(1)) is amended— 
(1) by inserting ‘‘(A)’’ after the paragraph des-
ignation; 
(2) by striking the seventh, eighth, and ninth 
sentences; and 
(3) by adding at the end the following: 
‘‘(B)(i) The Secretary shall define market areas for 
purposes of this paragraph in areas sufficiently distinct 
as is necessary— 
‘‘(I) to establish fair market rentals that accu-
rately reflect typical rental costs of units suitable for 
occupancy by persons assisted under this section in 
communities in metropolitan and non-metropolitan 
areas (including low poverty areas); and 
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‘‘(II) to avoid concentration of voucher holders; 
while taking into consideration the factors specified 
in clause (ii). 
‘‘(ii) The factors specified in this clause are— 
‘‘(I) the efficient administration of the program 
by public housing agencies and the administrative 
costs of the Secretary of establishing additional 
areas; 
‘‘(II) the availability of data for a sufficient 
number of dwelling units to establish accurate fair 
market rentals; and 
‘‘(III) the ability of public housing agencies to 
adjust the payment standard to more accurately re-
flect typical rental costs. 
‘‘(iii) The Secretary shall establish procedures to per-
mit a public housing agency to request the establishment 
of a separate market areas for either all or contiguous 
parts of the areas under the jurisdiction of such agency. 
The Secretary shall consider and approve any such request 
using the criteria established in clause (i) and the consid-
erations under clause (ii). 
‘‘(iv) The Secretary shall not reduce the fair market 
rental in a market area as a result of a change in the 
percentile of the distribution of market rents used to es-
tablish the fair market rental. 
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‘‘(v) The Secretary shall phase in large increases or 
decreases in the fair market rentals that result from 
changes in market area boundaries or other methodo-
logical changes that do not reflect actual year-to-year 
trends in rents by limiting such increases or decreases to 
not more than 5 percent each year.’’. 
(b) PAYMENT STANDARD.—Subparagraph (B) of sec-
tion 8(o)(1) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)(1)(B)) is amended by inserting be-
fore the period at the end the following: ‘‘, except that 
no public housing agency shall be required as a result of 
a reduction in the fair market rental to reduce the pay-
ment standard applied to a family continuing to reside in 
a unit for which the family was receiving assistance under 
this section at the time the fair market rental was re-
duced’’. 
SEC. 14. SCREENING OF APPLICANTS. 
(a) IN GENERAL.—Subparagraph (B) of section 
8(o)(6) of the United States Housing Act of 1937 
(1437f(o)(6)(B)) is amended— 
(1) by striking ‘‘(B) SELECTION
OF
TEN-
ANTS.—Each’’ and inserting the following: 
‘‘(B) SELECTION OF TENANTS.— 
‘‘(i) FUNCTION OF OWNER.—Each’’; 
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(2) in the first sentence, by striking ‘‘unit)’’ 
and inserting ‘‘unit’’; 
(3) by striking ‘‘In addition’’ and inserting the 
following: 
‘‘(ii) SCREENING.—In addition’’; 
(4) by inserting after ‘‘establish.’’ the following: 
‘‘A public housing agency’s elective screening shall 
be limited to criteria that are directly related to an 
applicant’s ability to fulfill the obligations of an as-
sisted lease and shall consider mitigating cir-
cumstances related to such applicant. The require-
ments of the preceding sentence shall not limit the 
ability of a public housing agency to deny assistance 
based on an applicant’s criminal background or any 
other permissible grounds for denial under subtitle F 
of title V of the Quality Housing and Work Respon-
sibility Act of 1998 (42 U.S.C. 13661 et seq.; relat-
ing to safety and security in public and assisted 
housing), subject to the procedural requirements of 
this section. Any applicant or participant determined 
to be ineligible for admission or continued participa-
tion to the program shall be notified of the basis for 
such determination and provided, within a reason-
able time after the determination, an opportunity for 
an informal hearing on such determination at which 
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mitigating circumstances, including remedial conduct 
subsequent to the conduct that is the basis of such 
determination, shall be considered.’’; and 
(5) by adding at the end the following: 
‘‘(iii) 
EXISTING
ASSISTED
FAMI-
LIES.—Families being provided enhanced 
vouchers pursuant to subsection (t), fami-
lies receiving assistance under this Act 
that are subsequently provided tenant- 
based assistance pursuant to subsection 
(dd)(1)(B), and families residing in multi-
family housing subject to a mortgage in-
sured under the National Housing Act that 
are provided tenant-based assistance pur-
suant to subsection (dd)(1)(B)(xiv) of this 
section shall not be considered new appli-
cants under this paragraph and shall not 
be subject to elective re-screening by a 
public housing agency.’’. 
(b) LEASES AND TENANCY.—Subparagraph (E) of 
section 8(o)(7) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)(7)(E)) is amended by inserting ‘‘ter-
mination or’’ after ‘‘any’’ the last place such term appears. 
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(c) DENIALS OF ADMISSION.—Section 576 of the 
Quality Housing and Work Responsibility Act of 1998 (42 
U.S.C. 13661) is amended— 
(1) in subsection (b)— 
(A) by striking paragraph (2); 
(B) in paragraph (1)— 
(i) in subparagraph (A), by inserting 
‘‘, based on documented evidence that is 
credible and objective,’’ after ‘‘deter-
mines’’; 
(ii) in subparagraph (B), by striking 
‘‘that it has reasonable’’ and all that fol-
lows through ‘‘by other residents’’ and in-
serting ‘‘, based on documented evidence 
that is credible and objective, is a chronic 
abuser of alcohol, and who is not currently 
participating in a supervised alcohol reha-
bilitation program’’; and 
(iii) by redesignating subparagraphs 
(A) and (B) (as so amended) as para-
graphs (1) and (2) and realigning such 
paragraphs, as so redesignated, so as to be 
indented 2 ems from the left margin; and 
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(C) by striking the subsection designation 
and all that follows through ‘‘Notwithstanding’’ 
in paragraph (1) and inserting the following: 
‘‘(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND 
ALCOHOL ABUSERS.—Notwithstanding’’; and 
(2) in subsection (c)— 
(A) in the section heading, by inserting 
‘‘CERTAIN’’ before ‘‘CRIMINAL’’; 
(B) in the matter that precedes paragraph 
(1)— 
(i) by inserting ‘‘, based on docu-
mented evidence that is credible and objec-
tive,’’ after ‘‘determines’’; 
(ii) by striking ‘‘a reasonable time’’ 
and inserting ‘‘the 5-year period’’; and 
(iii) by striking ‘‘or other criminal ac-
tivity’’; 
(C) in paragraph (2), by striking ‘‘reason-
able’’ each place such term appears and insert-
ing ‘‘5-year’’; and 
(D) by adding after and below paragraph 
(2) the following: 
‘‘No denial of admission may be made pursuant to this 
subsection based on a misdemeanor conviction or activity 
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which is of a misdemeanor nature unless such denial is 
based on a pattern of activity.’’. 
SEC. 15. ENHANCED VOUCHERS. 
(a) QUALIFICATION; ELECTION
TO
REMAIN
IN 
UNIT.—Section 8(t)(1) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amended— 
(1) in the matter preceding subparagraph (A), 
by inserting ‘‘and shall not require that the family 
requalify under the selection standards for a public 
housing agency in order to be eligible for such as-
sistance’’ before the comma; and 
(2) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B)(i) the assisted family may elect to re-
main in the same project in which the family 
was residing on the date of the eligibility event 
for the project regardless of unit and family 
size standards normally used by the admin-
istering public housing agency (except that ten-
ants may be required to move to units of appro-
priate size if available on the premises), and the 
owner of the unit shall accept the enhanced 
voucher and terminate the tenancy only for se-
rious or repeated violation of the terms and 
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conditions of the lease or for violation of appli-
cable law; and 
‘‘(ii) if, during any period the family 
makes such an election and continues to so re-
side, the rent for the dwelling unit of the family 
in such project exceeds the applicable payment 
standard established pursuant to subsection (o) 
for the unit, the amount of rental assistance 
provided on behalf of the family shall be deter-
mined using a payment standard that is equal 
to the rent for the dwelling unit (as such rent 
may be increased from time-to-time), subject to 
paragraph (10)(A) of subsection (o) and any 
other reasonable limit prescribed by the Sec-
retary, except that a limit shall not be consid-
ered reasonable for purposes of this subpara-
graph if it adversely affects such assisted fami-
lies;’’. 
(b) PROVISION TO RESIDENTS OF ASSISTED MULTI-
FAMILY PROJECTS UPON TERMINATION DATE.— 
(1) REQUIREMENT.—Upon the termination 
date for each assisted multifamily housing project, 
to the extent that amounts for assistance under this 
paragraph are provided in advance in appropriation 
Acts, the Secretary of Housing and Urban Develop-
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ment shall make enhanced voucher assistance under 
section 8(t) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(t)) available on behalf of 
each family described in paragraph (2). 
(2) ELIGIBILITY.—A family described in this 
paragraph is a family who— 
(A)(i) is a low-income family; or 
(ii) is a moderate-income family that is— 
(I) an elderly family (as such term is 
used in section 3(b) of the United States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(b)); 
(II) a disabled family (as such term is 
used in section 3(b) of the United States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(b)); or 
(III) residing in a low-vacancy area 
(as determined by the Secretary); and 
(B) on such termination date, is residing 
in a dwelling unit of the project that— 
(i) immediately before such termi-
nation date was assisted under the multi-
family housing subsidy program for the 
project; and 
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(ii) is not assisted after such termi-
nation date under section 8 of such Act. 
(3) ELIGIBILITY EVENT.—Section 8(t)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(2)) is amended by adding after the period 
at the end the following new sentence: ‘‘Such term 
includes, with respect to an assisted multifamily 
housing project (as such term is defined in section 
15(b) of the Section 8 Voucher Reform Act of 
2009), the occurrence of the termination date for 
the project. 
(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
(A) ASSISTED
MULTIFAMILY
HOUSING 
PROPERTY.—The term ‘‘assisted multifamily 
housing property’’ means a multifamily housing 
project for which assistance is provided under a 
multifamily housing subsidy program. 
(B) 
LOW-INCOME
FAMILY.—The 
term 
‘‘low-income family’’ has the meaning given 
such term in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)). 
(C) 
MODERATE-INCOME
FAMILY.—The 
term ‘‘moderate-income family’’ has the mean-
ing given such term in section 229 of the Low- 
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Income Housing Preservation and Resident 
Homeownership Act of 1992 (12 U.S.C. 4119). 
(D) MULTIFAMILY HOUSING SUBSIDY PRO-
GRAM.—The term ‘‘multifamily housing subsidy 
program’’ means— 
(i) the below-market interest rate 
mortgage insurance program under section 
221(d)(3) of the National Housing Act (12 
U.S.C. 1715l(d)(3)); and 
(ii) the program for interest reduction 
payments under section 236 of the Na-
tional Housing Act (12 U.S.C. 1715z–1). 
(E) TERMINATION DATE.—The term ‘‘ter-
mination date’’ means, with respect to an as-
sisted multifamily housing property, the date 
that— 
(i) the mortgage for the property that 
is insured under the below-market interest 
rate program under section 221(d)(3) of 
the National Housing Act, or for which in-
terest reduction payments are made under 
section 236 of such Act, matures; and 
(ii) the affordability restrictions appli-
cable to the property because of assistance 
for the property pursuant to a multifamily 
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housing subsidy program terminate with 
respect to the property. 
(5) REGULATIONS.—The Secretary may issue 
any regulations necessary to carry out this sub-
section. 
SEC. 16. DEMONSTRATION PROGRAM WAIVER AUTHORITY. 
(a) AUTHORITY TO ENTER INTO AGREEMENTS.— 
Notwithstanding any other provision of law, the Secretary 
of Housing and Urban Development may enter into such 
agreements as may be necessary with the Social Security 
Administration and the Secretary of Health and Human 
Services to allow for the participation, in any demonstra-
tion program described in subsection (c), by the Depart-
ment of Housing and Urban Development and the use 
under such program of housing choice vouchers under sec-
tion 8(o) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)). 
(b) WAIVER OF INCOME REQUIREMENTS.—The Sec-
retary of Housing and Urban Development may, to extent 
necessary to allow rental assistance under section 8(o) of 
the United States Housing Act of 1937 to be provided 
on behalf of persons described in subsection (c) who par-
ticipate in a demonstration program described in such 
subsection, and to allow such persons to be placed on a 
waiting list for such assistance, partially or wholly dis-
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regard increases in earned income for the purpose of rent 
calculations under section 3 for such persons. 
(c) DEMONSTRATION PROGRAMS.—A demonstration 
program described in this subsection is a demonstration 
program of a State that provides for persons with signifi-
cant disabilities to be employed and continue to receive 
benefits under programs of the Department of Health and 
Human Services and the Social Security Administration, 
including the program of supplemental security income 
benefits under title XVI of the Social Security Act, dis-
ability insurance benefits under title II of such Act, and 
the State program for medical assistance (Medicaid) under 
title XIX of such Act. 
SEC. 17. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated for fiscal year 
2010 the amount necessary to provide public housing 
agencies with incremental assistance under section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) sufficient to assist 150,000 incremental dwelling 
units in such fiscal year, for— 
(1) tenant-based assistance; and 
(2) project-based voucher assistance for ex-
tremely low-income families, in conjunction with— 
(A) funding from either of the funds estab-
lished under section 1138 or 1339 of the Fed-
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awarded pursuant to this subpara-
graph, would not exceed 50 percent of 
the total number of all vouchers to be 
administered by the agency after such 
award. 
‘‘(v) REQUIRED
DETERMINATIONS.— 
As a condition of entering into a contract 
pursuant to this subparagraph, the public 
housing agency shall have determined, be-
fore entering into such contract that— 
‘‘(I) the housing to be assisted 
under the contract is economically via-
ble; and 
‘‘(II)(aa) there is a significant 
demand for the housing; 
‘‘(bb) the housing will contribute 
to a community revitalization plan or 
to deconcentrating poverty and ex-
panding housing and economic oppor-
tunities; or 
‘‘(cc) the continued affordability 
of the housing otherwise is an impor-
tant asset to the community. 
‘‘(vi) INAPPLICABILITY
OF
GOALS.— 
Subparagraph (C) shall not apply to a 
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125 
‘‘(iii) not more than 10 percent of the 
vouchers available to the participating 
agency upon entering the housing innova-
tion program under this section; and 
‘‘(iv) any project-based voucher pro-
gram that is subject to evaluation under 
subsection (f). 
Notwithstanding the exceptions under this sub-
paragraph, an agency may not eliminate resi-
dent choice under section 8(o)(13)(E) for more 
than 25 percent of its authorized vouchers. 
‘‘(M) Section 8(r) (relating to portability 
of voucher assistance), except that a partici-
pating agency may receive funding for port-
ability obligations under section 8(dd) in the 
same manner as other public housing agencies. 
‘‘(N) Sections 8(ee) and 6(u) (relating to 
records, certification and confidentiality regard-
ing domestic violence). 
‘‘(O) Subsections (a) and (b) of section 12 
(relating to payment of prevailing wages). 
‘‘(P) Section 18 (relating to demolition and 
disposition of public housing). 
‘‘(Q) Part 964 of title 24 of the Code of 
Federal Regulations (relating to tenant partici-
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