Union Calendar No. 222
104TH CONGRESS
2D SESSION
H. R. 2406
[Report No. 104–461]
A BILL
To repeal the United States Housing Act of 1937,
deregulate the public housing program and the
program for rental housing assistance for low-in-
come families, and increase community control
over such programs, and for other purposes.
FEBRUARY 1, 1996
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 222
104TH CONGRESS
2D SESSION
H. R. 2406
[Report No. 104–461]
To repeal the United States Housing Act of 1937, deregulate the public
housing program and the program for rental housing assistance for
low-income families, and increase community control over such programs,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 27, 1995
Mr. LAZIO of New York (for himself, Mr. LEACH, Mr. MCCOLLUM, Mr.
BAKER of Louisiana, Mr. CASTLE, Mr. WELLER, Mr. BONO, Mr. EHR-
LICH, Mr. CREMEANS, Mr. FOX of Pennsylvania, Mr. HEINEMAN, and
Mrs. KELLY) introduced the following bill; which was referred to the
Committee on Banking and Financial Services
FEBRUARY 1, 1996
Additional sponsors: Mr. BACHUS, Mr. KING, Mr. HAYWORTH, Mr. NEY, Mr.
CHRYSLER, Mr. STOCKMAN, and Mr. SHAYS
FEBRUARY 1, 1996
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on September 27, 1995]
A BILL
To repeal the United States Housing Act of 1937, deregulate
the public housing program and the program for rental
housing assistance for low-income families, and increase
community control over such programs, and for other
purposes.
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
‘‘United States Housing Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of policy to renew American neighborhoods.
TITLE I—GENERAL PROVISIONS
Sec. 101. Statement of purpose.
Sec. 102. Definitions.
Sec. 103. Organization of local housing and management authorities.
Sec. 104. Determination of adjusted income.
Sec. 105. Limitation on admission of drug or alcohol abusers to assisted housing.
Sec. 106. Community work and family self-sufficiency requirement.
Sec. 107. Local housing management plans.
Sec. 108. Review of plans.
Sec. 109. Pet ownership.
Sec. 110. Administrative grievance procedure.
Sec. 111. Headquarters reserve fund.
Sec. 112. Labor standards.
Sec. 113. Nondiscrimination.
Sec. 114. Effective date and regulations.
TITLE II—PUBLIC HOUSING
Subtitle A—Block Grants
Sec. 201. Block grant contracts.
Sec. 202. Block grant authority and amount.
Sec. 203. Eligible and required activities.
Sec. 204. Determination of block grant allocation.
Sec. 205. Sanctions for improper use of amounts.
Subtitle B—Admissions and Occupancy Requirements
Sec. 221. Low-income housing requirement.
Sec. 222. Family eligibility.
Sec. 223. Preferences for occupancy.
Sec. 224. Admission procedures.
Sec. 225. Family rental payment.
Sec. 226. Lease requirements.
Sec. 227. Designated housing for elderly and disabled families.
Subtitle C—Management
Sec. 231. Management procedures.
Sec. 232. Housing quality requirements.
Sec. 233. Employment of residents.
Sec. 234. Resident councils and resident management corporations.
Sec. 235. Management by resident management corporation.
Sec. 236. Transfer of management of certain housing to independent manager at
request of residents.
Sec. 237. Resident opportunity program.
Subtitle D—Homeownership
Sec. 251. Resident homeownership programs.
Subtitle E—Disposition, Demolition, and Revitalization of Developments
Sec. 261. Requirements for demolition and disposition of developments.
Sec. 262. Demolition, site revitalization, replacement housing, and choice-based
assistance grants for developments.
Subtitle F—General Provisions
Sec. 271. Conversion to block grant assistance.
Sec. 272. Payment of non-Federal share.
Sec. 273. Definitions.
Sec. 274. Authorization of appropriations for block grants.
Sec. 275. Authorization of appropriations for operation safe home.
TITLE III—CHOICE-BASED RENTAL HOUSING AND
HOMEOWNERSHIP ASSISTANCE FOR LOW-INCOME FAMILIES
Subtitle A—Allocation
Sec. 301. Authority to provide housing assistance amounts.
Sec. 302. Contracts with LHMA’s.
Sec. 303. Eligibility of LHMA’s for assistance amounts.
Sec. 304. Allocation of amounts.
Sec. 305. Administrative fees.
Sec. 306. Authorizations of appropriations.
Sec. 307. Conversion of section 8 assistance.
Subtitle B—Choice-Based Housing Assistance for Eligible Families
Sec. 321. Eligible families and preferences for assistance.
Sec. 322. Resident contribution.
Sec. 323. Rental indicators.
Sec. 324. Lease terms.
Sec. 325. Termination of tenancy.
Sec. 326. Eligible owners.
Sec. 327. Selection of dwelling units.
Sec. 328. Eligible dwelling units.
Sec. 329. Homeownership option.
Subtitle C—Payment of Housing Assistance on Behalf of Assisted Families
Sec. 351. Housing assistance payments contracts.
Sec. 352. Amount of monthly assistance payment.
Sec. 353. Payment standards.
Sec. 354. Reasonable rents.
Sec. 355. Prohibition of assistance for vacant rental units.
Subtitle D—General and Miscellaneous Provisions
Sec. 371. Definitions.
Sec. 372. Rental assistance fraud recoveries.
Sec. 373. Study regarding geographic concentration of assisted families.
TITLE IV—ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING
AND MANAGEMENT AUTHORITIES
Subtitle A—Housing Foundation and Accreditation Board
Sec. 401. Establishment.
Sec. 402. Membership.
Sec. 403. Functions.
Sec. 404. Initial establishment of standards and procedures for LHMA compli-
ance.
Sec. 405. Powers.
Sec. 406. Fees.
Sec. 407. Reports.
Subtitle B—Accreditation and Oversight Standards and Procedures
Sec. 431. Establishment of performance benchmarks and accreditation procedures.
Sec. 432. Annual financial and performance audit.
Sec. 433. Accreditation.
Sec. 434. Classification by performance category.
Sec. 435. Performance agreements for authorities at risk of becoming troubled.
Sec. 436. Performance agreements and CDBG sanctions for troubled LHMA’s.
Sec. 437. Option to demand conveyance of title to or possession of public housing.
Sec. 438. Removal of ineffective LHMA’s.
Sec. 439. Mandatory takeover of chronically troubled PHA’s.
Sec. 440. Treatment of troubled PHA’s.
Sec. 441. Maintenance of and access to records.
Sec. 442. Annual reports regarding troubled LHMA’s.
Sec. 443. Applicability to resident management corporations.
Sec. 444. Inapplicability to Indian housing.
TITLE V—REPEALS AND CONFORMING AMENDMENTS
Sec. 501. Repeals.
Sec. 502. Conforming and technical provisions.
Sec. 503. Amendments to Public and Assisted Housing Drug Elimination Act of
1990.
SEC. 2. DECLARATION OF POLICY TO RENEW AMERICAN
NEIGHBORHOODS.
The Congress hereby declares that—
(1) the Federal Government has a responsibility
to promote the general welfare of the Nation—
(A) by using Federal resources to aid fami-
lies and individuals seeking affordable homes
that are safe, clean, and healthy and, in particu-
lar, assisting responsible, deserving citizens who
cannot provide fully for themselves because of
temporary circumstances or factors beyond their
control;
(B) by working to ensure a thriving na-
tional economy and a strong private housing
market; and
(C) by developing effective partnerships
among the Federal Government, State and local
governments, and private entities that allow gov-
ernment to accept responsibility for fostering the
development of a healthy marketplace and allow
families to prosper without government involve-
ment in their day-to-day activities;
(2) the Federal Government cannot through its
direct action or involvement provide for the housing
of every American citizen, or even a majority of its
citizens, but it is the responsibility of the Government
to promote and protect the independent and collective
actions of private citizens to develop housing and
strengthen their own neighborhoods;
(3) the Federal Government should act only
where there is a serious need that private citizens or
groups cannot or are not addressing responsibly; and
(4) housing is a fundamental and necessary com-
ponent of bringing true opportunity to people and
communities in need, but providing physical struc-
tures to house low-income families will not by itself
pull generations up from poverty.
TITLE I—GENERAL PROVISIONS
SEC. 101. STATEMENT OF PURPOSE.
The purpose of this Act is to promote safe, clean, and
healthy housing that is affordable to low-income families,
and thereby contribute to the supply of affordable housing,
by—
(1) deregulating and decontrolling public hous-
ing agencies, which in this Act are referred to as
‘‘local housing and management authorities’’, and
thereby enable them to perform as property and asset
managers;
(2) providing for more flexible use of Federal as-
sistance to local housing and management authorities,
allowing the authorities to leverage and combine as-
sistance amounts with amounts obtained from other
sources;
(3) facilitating mixed income communities;
(4) increasing accountability and rewarding ef-
fective management of local housing and management
authorities;
(5) creating incentives and economic opportuni-
ties for residents of dwelling units assisted by local
housing and management authorities to work and be-
come self-sufficient; and
(6) recreating the existing rental assistance
voucher program so that the use of vouchers and rela-
tionships between landlords and tenants under the
program operate in a manner that more closely re-
sembles the private housing market.
SEC. 102. DEFINITIONS.
For purposes of this Act, the following definitions shall
apply:
(1) DISABLED
FAMILY.—The term ‘‘disabled
family’’ means a family whose head (or his or her
spouse), or whose sole member, is a person with dis-
abilities. Such term includes 2 or more persons with
disabilities living together, and 1 or more such per-
sons living with 1 or more persons determined under
the regulations of the Secretary to be essential to their
care or well-being.
(2) DRUG-RELATED
CRIMINAL
ACTIVITY.—The
term ‘‘drug-related criminal activity’’ means the ille-
gal manufacture, sale, distribution, use, or possession
with intent to manufacture, sell, distribute, or use, of
a controlled substance (as such term is defined in sec-
tion 102 of the Controlled Substances Act).
(3) ELDERLY
FAMILIES
AND
NEAR
ELDERLY
FAMILIES.—The terms ‘‘elderly family’’ and ‘‘near-el-
derly family’’ mean a family whose head (or his or
her spouse), or whose sole member, is an elderly per-
son or a near-elderly person, respectively. Such terms
include 2 or more elderly persons or near-elderly per-
sons living together, and 1 or more such persons liv-
ing with 1 or more persons determined under the reg-
ulations of the Secretary to be essential to their care
or well-being.
(4) ELDERLY PERSON.—The term ‘‘elderly per-
son’’ means a person who is at least 62 years of age.
(5) FAMILY.—The term ‘‘family’’ includes a fam-
ily with or without children, an elderly family, a
near-elderly family, a disabled family, and a single
person.
(6) INCOME.—The term ‘‘income’’ means, with
respect to a family, income from all sources of each
member of the household, as determined in accordance
with criteria prescribed by the applicable local hous-
ing and management authority and the Secretary, ex-
cept that the following amounts shall be excluded:
(A) Any amounts not actually received by
the family.
(B) Any amounts that would be eligible for
exclusion under section 1613(a)(7) of the Social
Security Act.
(7) INDIAN.—The term ‘‘Indian’’ means any per-
son recognized as being an Indian, Alaska Native, or
Native Hawaiian by an Indian tribe, the Federal
Government, or any State.
(8) INDIAN
AREA.—The term ‘‘Indian area’’
means the area within which an Indian housing au-
thority is authorized to provide low-income housing
assistance under this Act.
(9) INDIAN
HOUSING
AUTHORITY.—The term
‘‘Indian housing authority’’ means any entity that—
(A) is authorized to engage in or assist in
the production or operation of low-income hous-
ing for Indians that is assisted under this Act;
and
(B) is established—
(i) by exercise of the power of self-gov-
ernment of an Indian tribe independent of
State law; or
(ii) by operation of State law provid-
ing specifically for housing authorities for
Indians, including regional housing au-
thorities in the State of Alaska.
(10) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means any tribe, band, pueblo, group, community, or
nation of Indians, Alaska Natives, or Native Hawai-
ians.
(11) LOCAL
HOUSING
AND
MANAGEMENT
AU-
THORITY.—The term ‘‘local housing and management
authority’’ is defined in section 103.
(12) LOCAL HOUSING MANAGEMENT PLAN.—The
term ‘‘local housing management plan’’ means, with
respect to any fiscal year, the plan under section 107
of a local housing and management authority for such
fiscal year.
(13) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ means a family whose income does not
exceed 80 percent of the median income for the area,
except that the Secretary may, for purposes of this
paragraph, establish income ceilings higher or lower
than 80 percent of the median for the area on the
basis of the authority’s findings that such variations
are necessary because of unusually high or low family
incomes.
(14) LOW-INCOME HOUSING.—The term ‘‘low-in-
come housing’’ means dwellings that comply with the
requirements—
(A) under subtitle B of title II for assist-
ance under such title for the dwellings; or
(B) under title III for rental assistance
payments under such title for the dwellings.
(15) NEAR-ELDERLY PERSON.—The term ‘‘near-
elderly person’’ means a person who is at least 55
years of age.
(16) PERSON
WITH
DISABILITIES.—The term
‘‘person with disabilities’’ means a person who—
(A) has a disability as defined in section
223 of the Social Security Act; or
(B) has a developmental disability as de-
fined in section 102 of the Developmental Dis-
abilities Assistance and Bill of Rights Act.
Such term shall not exclude persons who have the dis-
ease of acquired immunodeficiency syndrome or any
conditions arising from the etiologic agent for ac-
quired immunodeficiency syndrome. Notwithstanding
any other provision of law, no individual shall be
considered a person with disabilities, for purposes of
eligibility for public housing under title II of this Act,
solely on the basis of any drug or alcohol dependence.
The Secretary shall consult with other appropriate
Federal agencies to implement the preceding sentence.
(17) PUBLIC HOUSING.—The term ‘‘public hous-
ing’’ means housing, and all necessary appurtenances
thereto, that—
(A) is low-income housing or low-income
dwelling units in mixed income housing (as pro-
vided in section 221(c)(2)); and
(B)(i) is subject to an annual block grant
contract under title II; or
(ii) was subject to an annual block grant
contract under title II (or an annual contribu-
tions contract under the United States Housing
Act of 1937) which is not in effect, but for which
occupancy is limited in accordance with the re-
quirements under section 222(a).
(18) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(19) STATE.—The term ‘‘State’’ means the States
of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, Guam, the Virgin Is-
lands, American Samoa, any other territory or pos-
session of the United States, and Indian tribes.
(20) VERY
LOW-INCOME
FAMILY.—The term
‘‘very low-income family’’ means a low-income family
whose income does not exceed 50 percent of the me-
dian family income for the area, except that the Sec-
retary may, for purposes of this paragraph, establish
income ceilings higher or lower than 50 percent of the
median for the area on the basis of the authority’s
findings that such variations are necessary because of
unusually high or low family incomes.
SEC. 103. ORGANIZATION OF LOCAL HOUSING AND MAN-
AGEMENT AUTHORITIES.
(a) REQUIREMENTS.—For purposes of this Act, the
terms ‘‘local housing and management authority’’ and ‘‘au-
thority’’ mean any entity that—
(1) is—
(A) a public housing agency or Indian
housing authority that was authorized under the
United States Housing Act of 1937 to engage in
or assist in the development or operation of low-
income housing;
(B) authorized under this Act to engage in
or assist in the development or operation of low-