family continuously occupies any units assisted
under this Act shall be the amount by which the
payment standard for the area exceeds the sum of—
‘‘(i) 30 percent of the family’s monthly ad-
justed income upon initial occupancy during
such period in an assisted unit; and
‘‘(ii) the amount determined by the public
housing agency to be attributable to any in-
crease in the cost of the dwelling unit for such
family that occurs after such initial occupancy,
including any increases in the cost of the unit
resulting from inflation, increased maintenance
or operating costs, and occupancy of a more ex-
pensive assisted unit.’’.
(e) APPLICABILITY TO INDIAN HOUSING.—In accord-
ance with section 201(b)(2) of the United States Housing
Act of 1937, the provisions of this section shall apply to
public housing developed or operated pursuant to a con-
tract between the Secretary and an Indian housing author-
ity.
SEC. 3. PUBLIC HOUSING AUTHORITY MARKET RENT DEM-
ONSTRATION.
(a) AUTHORITY.—At the request of a public housing
agency or resident management corporation, the Secretary
of Housing and Urban Development may authorize the
agency or corporation to carry out a demonstration pro-
gram under this section to determine the feasibility and
desirability of providing public housing agencies and resi-
dent management corporations the authority to establish
policies for the operation, maintenance, management, and
development (including modernization) of public housing
projects administered by the agency, without regard to the
requirements under the United States Housing Act of
1937 applicable to public housing. In establishing such
policies, public housing agencies and resident management
corporations shall be subject to the provisions of any appli-
cable State and local laws.
(b) REQUIRED FINDINGS.—The Secretary may au-
thorize a public housing agency or resident management
corporation to carry out a demonstration program under
this section only if the Secretary determines, with respect
to the particular demonstration program, that—
(1) the program is likely to assist in promoting
the objectives of the United States Housing Act of
1937, encourage resident empowerment, and reduce
poverty in public housing by improving the means by
which economic self-sufficiency may be achieved;
(2) the program, taken as a whole, will not re-
sult in higher costs to the Federal Government than
would be incurred absent the program;
(3) the results of the program will be evaluated
and reported to the Secretary by independent enti-
ties;
(4) no fewer very low-income families will be as-
sisted under the program than would otherwise have
been assisted; and
(5) the program is consistent with the Fair
Housing Act, title VI of the Civil Rights Act of
1964, section 504 of the Rehabilitation Act of 1973,
and the Age Discrimination Act of 1975.
(c) EXCEPTIONS TO PROVISIONS OF UNITED STATES
HOUSING ACT OF 1937.—
(1) MANDATORY.—Notwithstanding any other
provision of law, during the period of the demonstra-
tion program (pursuant to subsection (i)) section
3(a) of the United States Housing Act of 1937 (re-
lating to rental amounts for dwelling units in public
housing projects), sections 3(b)(4) and (5) of such
Act (relating to determination of income and ad-
justed income), and section 16 of such Act (relating
to income eligibility) shall not apply to any public
housing projects involved in a demonstration pro-
gram under this section or any families residing in
such projects. Each public housing authority and
resident management corporation carrying out a
demonstration program under this section shall es-
tablish rents for dwelling units in projects involved
in the demonstration program at the discretion of
the agency or corporation.
(2) DISCRETIONARY.—The Secretary may ex-
empt a public housing agency or resident manage-
ment corporation carrying out a demonstration pro-
gram under this section from any other require-
ments of the United States Housing Act of 1937,
and modify the requirements of such sections and
other provisions with respect to such agencies, that
the Secretary determines are not consistent with the
purposes of a demonstration program.
(d) INCOME ELIGIBILITY.—Not less than 30 percent
of the total number of dwelling units in public housing
projects involved in a demonstration program carried out
under this section by a public housing agency or resident
management corporation shall be available for leasing only
to very low-income families.
(e) EFFECT ON OPERATING SUBSIDIES.—Notwith-
standing any requirement pursuant to section 9 of the
United States Housing Act of 1937, the amount of annual
contributions provided for a fiscal year under such section
to any public housing agency or resident management cor-
poration carrying out a demonstration program in such
fiscal year may not exceed the amount of such annual con-
tributions provided under such section to the agency or
corporation for the last fiscal year concluding before the
commencement of the demonstration program by the
agency or corporation, as adjusted for inflation (as deter-
mined by the Secretary).
(f) TREATMENT
OF FAMILIES UNABLE
TO PAY
RENTAL CHARGES IN PUBLIC HOUSING.—
(1) AUTHORITY TO PROVIDE SECTION 8 ASSIST-
ANCE.—Notwithstanding any other provision of law,
in connection with carrying out a demonstration pro-
gram under this section a public housing agency
may provide assistance under section 8 of the United
States Housing Act of 1937 (to the extent sufficient
amounts for such assistance are available to such
agency) on behalf of any family that (A) resides in
a dwelling unit in a public housing project involved
in the demonstration program upon the commence-
ment of the demonstration, (B) is otherwise eligible
for such assistance, and (C) under section 3(a)(1) of
such Act would pay as rent for a dwelling unit as-
sisted under such section an amount that is less
than the rental charge for the public housing dwell-
ing unit under the demonstration program. Any such
assistance provided for such family shall be subject
to the provisions of section 3(a)(1) or 8(o) of such
Act, as applicable.
(2) USE.—Such assistance may be used in con-
nection with the rental of a public housing dwelling
unit or any other dwelling unit eligible for rental
using such assistance.
(3) PREFERENCE.—Notwithstanding any other
provision of law, a public housing agency carrying
out a demonstration program under this section may
give preference in providing assistance under such
section 8 to families described in paragraph (1) of
this subsection.
(g) SCOPE
OF DEMONSTRATIONS.—In authorizing
public housing agencies and resident management cor-
porations to carry out demonstration programs under this
section, the Secretary shall provide that the demonstration
is carried out with respect to one or more specific public
housing projects.
(h) NUMBER OF DEMONSTRATIONS.—The Secretary
may authorize not more than 50 public housing agencies
or resident management corporations to carry out dem-
onstration programs under this section.
(i) DURATION.—A public housing agency or resident
management corporation authorized to carry out a dem-
onstration program under this section may carry out the
demonstration for a period, determined by the agency or
corporation, of not more than 5 years.
(j) LIMITATION.—The number and duration of dem-
onstration programs authorized by the Secretary may not
exceed the number and duration necessary to achieve the
objectives of this section.
(k) ADDITIONAL REQUIREMENTS.—In authorizing a
demonstration program under this section, the Secretary
may impose such requirements on the program as the Sec-
retary considers to be appropriate to further its purposes.
(l) REPORTS.—
(1) TO
SECRETARY.—Each public housing
agency and resident management corporation carry-
ing out a demonstration program under this section
shall submit a report to the Secretary regarding the
demonstration for each year in which the demonstra-
tion is carried out, as shall be required by the Sec-
retary.
(2) TO
CONGRESS.—Not later than 6 years
after the date of the enactment of this Act, the Sec-
retary shall submit a report to the Congress describ-
ing and evaluating the demonstration programs car-
ried out under this section.
(m) DEFINITIONS.—For purposes of this section:
(1) PUBLIC
HOUSING.—The terms ‘‘public
housing’’ and ‘‘project’’ have the meanings given
such terms in section 3(b) of the United States
Housing Act of 1937.
(2) PUBLIC
HOUSING
AGENCY.—The terms
‘‘public housing agency’’ and ‘‘agency’’ have the
meanings given the term ‘‘public housing agency’’ in
section 3(b) of the United States Housing Act of
1937.
(3) RESIDENT MANAGEMENT CORPORATION.—
The terms ‘‘resident management corporation’’ and
‘‘corporation’’ mean a resident management corpora-
tion established in accordance with requirements of
the Secretary under section 20 of the United States
Housing Act of 1937.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(5) VERY
LOW-INCOME
FAMILIES.—The term
‘‘very low-income families’’ has the meaning given
the term in section 3(b) of the United States Hous-
ing Act of 1937.
(n) APPLICABILITY
TO INDIAN HOUSING.—In ac-
cordance with section 201(b)(2) of the United States
Housing Act of 1937, the provisions of this section shall
apply to public housing developed or operated pursuant
to a contract between the Secretary and an Indian housing
authority.
SEC. 4. REGULATIONS.
The Secretary may issue any regulations necessary
to carry out this Act and the amendments made by this
Act.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on October 1, 1993.
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