H. R. 4194—135
resources, which may include low-income housing tax credits,
in addition to amounts provided under this Act.
‘‘(2) TYPES OF PROJECTS.—The term includes a project that
is developed—
‘‘(A) by a public housing agency or by an entity affili-
ated with a public housing agency;
‘‘(B) by a partnership, a limited liability company, or
other entity in which the public housing agency (or an
entity affiliated with a public housing agency) is a general
partner, managing member, or otherwise participates in
the activities of that entity;
‘‘(C) by any entity that grants to the public housing
agency the right of first refusal and first option to purchase,
after the close of the compliance period, of the qualified
low-income building in which the public housing units exist
in accordance with section 42(i)(7) of the Internal Revenue
Code of 1986; or
‘‘(D) in accordance with such other terms and condi-
tions as the Secretary may prescribe by regulation.
‘‘(e) STRUCTURE OF PROJECTS.—Each mixed-finance project shall
be developed—
‘‘(1) in a manner that ensures that public housing units
are made available in the project, by regulatory and operating
agreement, master contract, individual lease, condominium or
cooperative agreement, or equity interest;
‘‘(2) in a manner that ensures that the number of public
housing units bears approximately the same proportion to the
total number of units in the mixed-finance project as the value
of the total financial commitment provided by the public hous-
ing agency bears to the value of the total financial commitment
in the project, or shall not be less than the number of units
that could have been developed under the conventional public
housing program with the assistance, or as may otherwise
be approved by the Secretary; and
‘‘(3) in accordance with such other requirements as the
Secretary may prescribe by regulation.
‘‘(f ) TAXATION.—
‘‘(1) IN GENERAL.—A public housing agency may elect to
exempt all public housing units in a mixed-finance project—
‘‘(A) from the provisions of section 6(d), and instead
subject such units to local real estate taxes; and
‘‘(B) from the finding of need and cooperative agree-
ment provisions under section 5(e)(1)(ii) and 5(e)(2), but
only if the development of the units is not inconsistent
with the jurisdiction’s comprehensive housing affordability
strategy.
‘‘(2) LOW-INCOME HOUSING TAX CREDIT.—With respect to
any unit in a mixed-finance project that is assisted pursuant
to the low-income housing tax credit under section 42 of the
Internal Revenue Code of 1986, the rents charged to the resi-
dents may be set at levels not to exceed the amounts allowable
under that section, provided that such levels for public housing
residents do not exceed the amounts allowable under section
3.
‘‘(g) USE OF SAVINGS.—Notwithstanding any other provision
of this Act, to the extent deemed appropriate by the Secretary,
H. R. 4194—136
to facilitate the establishment of socioeconomically mixed commu-
nities, a public housing agency that uses assistance from the Capital
Fund for a mixed-finance project, to the extent that income from
such a project reduces the amount of assistance used for operating
or other costs relating to public housing, may use such resulting
savings to rent privately developed dwelling units in the neighbor-
hood of the mixed-finance project. Such units shall be made avail-
able for occupancy only by low-income families eligible for residency
in public housing.
‘‘(h) EFFECT OF CERTAIN CONTRACT TERMS.—If an entity that
owns or operates a mixed-finance project, that includes a significant
number of units other than public housing units enters into a
contract with a public housing agency, the terms of which obligate
the entity to operate and maintain a specified number of units
in the project as public housing units in accordance with the require-
ments of this Act for the period required by law, such contractual
terms may provide that, if, as a result of a reduction in appropria-
tions under section 9 or any other change in applicable law, the
public housing agency is unable to fulfill its contractual obligations
with respect to those public housing units, that entity may deviate,
under procedures and requirements developed through regulations
by the Secretary, from otherwise applicable restrictions under this
Act regarding rents, income eligibility, and other areas of public
housing management with respect to a portion or all of those
public housing units, to the extent necessary to preserve the
viability of those units while maintaining the low-income character
of the units to the maximum extent practicable.’’.
(b) REGULATIONS.—The Secretary shall issue such regulations
as may be necessary to promote the development of mixed-finance
projects, as that term is defined in section 3(b) of the United
States Housing Act of 1937 (as amended by this Act).
Subtitle C—Section 8 Rental and
Homeownership Assistance
SEC. 545. MERGER OF CERTIFICATE AND VOUCHER PROGRAMS.
(a) IN GENERAL.—Section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)) is amended to read as follows:
‘‘(o) VOUCHER PROGRAM.—
‘‘(1) AUTHORITY.—
‘‘(A) IN GENERAL.—The Secretary may provide assist-
ance to public housing agencies for tenant-based assistance
using a payment standard established in accordance with
subparagraph (B). The payment standard shall be used
to determine the monthly assistance that may be paid
for any family, as provided in paragraph (2).
‘‘(B) ESTABLISHMENT OF PAYMENT STANDARD.—Except
as provided under subparagraph (D), the payment standard
for each size of dwelling unit in a market area shall not
exceed 110 percent of the fair market rental established
under subsection (c) for the same size of dwelling unit
in the same market area and shall be not less than 90
percent of that fair market rental.
‘‘(C) SET-ASIDE.—The Secretary may set aside not more
than 5 percent of the budget authority made available
for assistance under this subsection as an adjustment pool.
H. R. 4194—137
The Secretary shall use amounts in the adjustment pool
to make adjusted payments to public housing agencies
under subparagraph (A), to ensure continued affordability,
if the Secretary determines that additional assistance for
such purpose is necessary, based on documentation submit-
ted by a public housing agency.
‘‘(D) APPROVAL.—The Secretary may require a public
housing agency to submit the payment standard of the
public housing agency to the Secretary for approval, if
the payment standard is less than 90 percent of the fair
market rental or exceeds 110 percent of the fair market
rental.
‘‘(E) REVIEW.—The Secretary—
‘‘(i) shall monitor rent burdens and review any
payment standard that results in a significant percent-
age of the families occupying units of any size paying
more than 30 percent of adjusted income for rent;
and
‘‘(ii) may require a public housing agency to modify
the payment standard of the public housing agency
based on the results of that review.
‘‘(2) AMOUNT OF MONTHLY ASSISTANCE PAYMENT.—Subject
to the requirement under section 3(a)(3) (relating to minimum
rental amount), the monthly assistance payment for a family
receiving assistance under this subsection shall be determined
as follows:
‘‘(A) TENANT-BASED ASSISTANCE; RENT NOT EXCEEDING
PAYMENT STANDARD.—For a family receiving tenant-based
assistance, if the rent for the family (including the amount
allowed for tenant-paid utilities) does not exceed the
applicable payment standard established under paragraph
(1), the monthly assistance payment for the family shall
be equal to the amount by which the rent (including the
amount allowed for tenant-paid utilities) exceeds the great-
est of the following amounts, rounded to the nearest dollar:
‘‘(i) 30 percent of the monthly adjusted income
of the family.
‘‘(ii) 10 percent of the monthly income of the family.
‘‘(iii) If the family is receiving payments for welfare
assistance from a public agency and a part of those
payments, adjusted in accordance with the actual hous-
ing costs of the family, is specifically designated by
that agency to meet the housing costs of the family,
the portion of those payments that is so designated.
‘‘(B) TENANT-BASED ASSISTANCE; RENT EXCEEDING PAY-
MENT
STANDARD.—For a family receiving tenant-based
assistance, if the rent for the family (including the amount
allowed for tenant-paid utilities) exceeds the applicable
payment standard established under paragraph (1), the
monthly assistance payment for the family shall be equal
to the amount by which the applicable payment standard
exceeds the greatest of amounts under clauses (i), (ii),
and (iii) of subparagraph (A).
‘‘(C) FAMILIES RECEIVING PROJECT-BASED ASSISTANCE.—
For a family receiving project-based assistance, the rent
that the family is required to pay shall be determined
in accordance with section 3(a)(1), and the amount of the
H. R. 4194—138
housing assistance payment shall be determined in accord-
ance with subsection (c)(3) of this section.
‘‘(3) 40 PERCENT
LIMIT.—At the time a family initially
receives tenant-based assistance under this section with respect
to any dwelling unit, the total amount that a family may
be required to pay for rent may not exceed 40 percent of
the monthly adjusted income of the family.
‘‘(4) ELIGIBLE FAMILIES.—To be eligible to receive assistance
under this subsection, a family shall, at the time a family
initially receives assistance under this subsection, be a low-
income family that is—
‘‘(A) a very low-income family;
‘‘(B) a family previously assisted under this title;
‘‘(C) a low-income family that meets eligibility criteria
specified by the public housing agency;
‘‘(D) a family that qualifies to receive a voucher in
connection with a homeownership program approved under
title IV of the Cranston-Gonzalez National Affordable Hous-
ing Act; or
‘‘(E) a family that qualifies to receive a voucher under
section 223 or 226 of the Low-Income Housing Preservation
and Resident Homeownership Act of 1990.
‘‘(5) ANNUAL REVIEW OF FAMILY INCOME.—
‘‘(A) IN GENERAL.—Reviews of family incomes for pur-
poses of this section shall be subject to the provisions
of section 904 of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 and shall be conducted
upon the initial provision of housing assistance for the
family and thereafter not less than annually.
‘‘(B) PROCEDURES.—Each public housing agency admin-
istering assistance under this subsection shall establish
procedures that are appropriate and necessary to ensure
that income data provided to the agency and owners by
families applying for or receiving assistance from the
agency is complete and accurate. Each public housing
agency shall, not less frequently than annually, conduct
a review of the family income of each family receiving
assistance under this subsection.
‘‘(6) 
SELECTION
OF
FAMILIES
AND
DISAPPROVAL
OF
OWNERS.—
‘‘(A) PREFERENCES.—
‘‘(i) AUTHORITY TO ESTABLISH.—Each public hous-
ing agency may establish a system for making tenant-
based assistance under this subsection available on
behalf of eligible families that provides preference for
such assistance to eligible families having certain
characteristics, which may include a preference for
families residing in public housing who are victims
of a crime of violence (as such term is defined in
section 16 of title 18, United States Code) that has
been reported to an appropriate law enforcement
agency.
‘‘(ii) CONTENT.—Each system of preferences estab-
lished pursuant to this subparagraph shall be based
upon local housing needs and priorities, as determined
by the public housing agency using generally accepted
data sources, including any information obtained
H. R. 4194—139
pursuant to an opportunity for public comment as pro-
vided under section 5A(f ) and under the requirements
applicable to the comprehensive housing affordability
strategy for the relevant jurisdiction.
‘‘(B) SELECTION OF TENANTS.—Each housing assistance
payment contract entered into by the public housing agency
and the owner of a dwelling unit) shall provide that the
screening and selection of families for those units shall
be the function of the owner. In addition, the public housing
agency may elect to screen applicants for the program
in accordance with such requirements as the Secretary
may establish.
‘‘(C) PHA DISAPPROVAL
OF
OWNERS.—In addition to
other grounds authorized by the Secretary, a public housing
agency may elect not to enter into a housing assistance
payments contract under this subsection with an owner
who refuses, or has a history of refusing, to take action
to terminate tenancy for activity engaged in by the tenant,
any member of the tenant’s household, any guest, or any
other person under the control of any member of the house-
hold that—
‘‘(i) threatens the health or safety of, or right to
peaceful enjoyment of the premises by, other tenants
or employees of the public housing agency, owner, or
other manager of the housing;
‘‘(ii) threatens the health or safety of, or right
to peaceful enjoyment of the residences by, persons
residing in the immediate vicinity of the premises;
or
‘‘(iii) is drug-related or violent criminal activity.
‘‘(7) LEASES AND TENANCY.—Each housing assistance pay-
ment contract entered into by the public housing agency and
the owner of a dwelling unit—
‘‘(A) shall provide that the lease between the tenant
and the owner shall be for a term of not less than 1
year, except that the public housing agency may approve
a shorter term for an initial lease between the tenant
and the dwelling unit owner if the public housing agency
determines that such shorter term would improve housing
opportunities for the tenant and if such shorter term is
considered to be a prevailing local market practice;
‘‘(B) shall provide that the dwelling unit owner shall
offer leases to tenants assisted under this subsection that—
‘‘(i) are in a standard form used in the locality
by the dwelling unit owner; and
‘‘(ii) contain terms and conditions that—
‘‘(I) are consistent with State and local law;
and
‘‘(II) apply generally to tenants in the property
who are not assisted under this section;
‘‘(C) shall provide that during the term of the lease,
the owner shall not terminate the tenancy except for seri-
ous or repeated violation of the terms and conditions of
the lease, for violation of applicable Federal, State, or local
law, or for other good cause;
‘‘(D) shall provide that during the term of the lease,
any criminal activity that threatens the health, safety,
H. R. 4194—140
or right to peaceful enjoyment of the premises by other
tenants, any criminal activity that threatens the health,
safety, or right to peaceful enjoyment of their residences
by persons residing in the immediate vicinity of the prem-
ises, or any violent or drug-related criminal activity on
or near such premises, engaged in by a tenant of any
unit, any member of the tenant’s household, or any guest
or other person under the tenant’s control, shall be cause
for termination of tenancy;
‘‘(E) shall provide that any termination of tenancy
under this subsection shall be preceded by the provision
of written notice by the owner to the tenant specifying
the grounds for that action, and any relief shall be consist-
ent with applicable State and local law; and
‘‘(F) may include any addenda required by the Sec-
retary to set forth the provisions of this subsection.
‘‘(8) INSPECTION OF UNITS BY PHA’S.—
‘‘(A) IN GENERAL.—Except as provided in paragraph
(11), for each dwelling unit for which a housing assistance
payment contract is established under this subsection, the
public housing agency shall inspect the unit before any
assistance payment is made to determine whether the
dwelling unit meets the housing quality standards under
subparagraph (B).
‘‘(B) HOUSING QUALITY STANDARDS.—The housing qual-
ity standards under this subparagraph are standards for
safe and habitable housing established—
‘‘(i) by the Secretary for purposes of this subsection;
or
‘‘(ii) by local housing codes or by codes adopted
by public housing agencies that—
‘‘(I) meet or exceed housing quality standards,
except that the Secretary may waive the require-
ment under this subclause to significantly increase
access to affordable housing and to expand housing
opportunities for families assisted under this sub-
section, except where such waiver could adversely
affect the health or safety of families assisted
under this subsection; and
‘‘(II) do not severely restrict housing choice
‘‘(C) INSPECTION.—The determination required under
subparagraph (A) shall be made by the public housing
agency (or other entity, as provided in paragraph (11))
pursuant to an inspection of the dwelling unit conducted
before any assistance payment is made for the unit. Inspec-
tions of dwelling units under this subparagraph shall be
made before the expiration of the 15-day period beginning
upon a request by the resident or landlord to the public
housing agency or, in the case of any public housing agency
that provides assistance under this subsection on behalf
of more than 1250 families, before the expiration of a
reasonable period beginning upon such request. The
performance of the agency in meeting the 15-day inspection
deadline shall be taken into consideration in assessing
the performance of the agency.
‘‘(D) ANNUAL
INSPECTIONS.—Each public housing
agency providing assistance under this subsection (or other
H. R. 4194—141
entity, as provided in paragraph (11)) shall make an annual
inspection of each assisted dwelling unit during the term
of the housing assistance payments contract for the unit
to determine whether the unit is maintained in accordance
with the requirements under subparagraph (A). 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) INSPECTION
GUIDELINES.—The Secretary shall
establish procedural guidelines and performance standards
to facilitate inspections of dwelling units and conform such
inspections with practices utilized in the private housing
market. Such guidelines and standards shall take into
consideration variations in local laws and practices of public
housing agencies and shall provide flexibility to authorities
appropriate to facilitate efficient provision of assistance
under this subsection.
‘‘(9) VACATED UNITS.—If an assisted family vacates a dwell-
ing unit for which rental assistance is provided under a housing
assistance payment contract before the expiration of the term
of the lease for the unit, rental assistance pursuant to such
contract may not be provided for the unit after the month
during which the unit was vacated.
‘‘(10) RENT.—
‘‘(A) REASONABLENESS.—The rent for dwelling units
for which a housing assistance payment contract is estab-
lished under this subsection shall be reasonable in compari-
son with rents charged for comparable dwelling units in
the private, unassisted local market.
‘‘(B) NEGOTIATIONS.—A public housing agency (or other
entity, as provided in paragraph (11)) shall, at the request
of a family receiving tenant-based assistance under this
subsection, assist that family in negotiating a reasonable
rent with a dwelling unit owner. A public housing agency
(or such other entity) shall review the rent for a unit
under consideration by the family (and all rent increases
for units under lease by the family) to determine whether
the rent (or rent increase) requested by the owner is reason-
able. If a public housing agency (or other such entity)
determines that the rent (or rent increase) for a dwelling
unit is not reasonable, the public housing agency (or other
such entity) shall not make housing assistance payments
to the owner under this subsection with respect to that
unit.
‘‘(C) UNITS
EXEMPT
FROM
LOCAL
RENT
CONTROL.—If
a dwelling unit for which a housing assistance payment
contract is established under this subsection is exempt
from local rent control provisions during the term of that
contract, the rent for that unit shall be reasonable in
comparison with other units in the market area that are
exempt from local rent control provisions.
‘‘(D) TIMELY PAYMENTS.—Each public housing agency
shall make timely payment of any amounts due to a dwell-
ing unit owner under this subsection. The housing assist-
ance payment contract between the owner and the public
H. R. 4194—142
housing agency may provide for penalties for the late pay-
ment of amounts due under the contract, which shall be
imposed on the public housing agency in accordance with
generally accepted practices in the local housing market.
‘‘(E) PENALTIES.—Unless otherwise authorized by the
Secretary, each public housing agency shall pay any pen-
alties from administrative fees collected by the public hous-
ing agency, except that no penalty shall be imposed if
the late payment is due to factors that the Secretary deter-
mines are beyond the control of the public housing agency.
‘‘(11) LEASING
OF
UNITS
OWNED
BY
PHA.—If an eligible
family assisted under this subsection leases a dwelling unit
(other than a public housing dwelling unit) that is owned by
a public housing agency administering assistance under this
subsection, the Secretary shall require the unit of general local
government or another entity approved by the Secretary, to
make inspections required under paragraph (8) and rent deter-
minations required under paragraph (10). The agency shall
be responsible for any expenses of such inspections and deter-
minations.
‘‘(12) 
ASSISTANCE
FOR
RENTAL
OF
MANUFACTURED
HOUSING.—
‘‘(A) IN GENERAL.—A public housing agency may make
assistance payments in accordance with this subsection
on behalf of a family that utilizes a manufactured home
as a principal place of residence. Such payments may be
made only for the rental of the real property on which
the manufactured home owned by any such family is
located.
‘‘(B) RENT CALCULATION.—
‘‘(i) CHARGES INCLUDED.—For assistance pursuant
to this paragraph, the rent for the space on which
a manufactured home is located and with respect to
which assistance payments are to be made shall
include maintenance and management charges and
tenant-paid utilities.
‘‘(ii) PAYMENT
STANDARD.—The public housing
agency shall establish a payment standard for the pur-
pose of determining the monthly assistance that may
be paid for any family under this paragraph. The pay-
ment standard may not exceed an amount approved
or established by the Secretary.
‘‘(iii) 
MONTHLY
ASSISTANCE
PAYMENT.—The
monthly assistance payment for a family assisted
under this paragraph shall be determined in accord-
ance with paragraph (2).
‘‘(13) PHA PROJECT-BASED ASSISTANCE.—
‘‘(A) IN
GENERAL.—If the Secretary enters into an
annual contributions contract under this subsection with
a public housing agency pursuant to which the public hous-
ing agency will enter into a housing assistance payment
contract with respect to an existing structure under this
subsection—
‘‘(i) the housing assistance payment contract may
not be attached to the structure unless the owner
agrees to rehabilitate or newly construct the structure
H. R. 4194—143
other than with assistance under this Act, and other-
wise complies with this section; and
‘‘(ii) the public housing agency may approve a hous-
ing assistance payment contract for such existing struc-
tures for not more than 15 percent of the funding
available for tenant-based assistance administered by
the public housing agency under this section.
‘‘(B) EXTENSION OF CONTRACT TERM.—In the case of
a housing assistance payment contract that applies to a
structure under this paragraph, a public housing agency
may enter into a contract with the owner, contingent upon
the future availability of appropriated funds for the purpose
of renewing expiring contracts for assistance payments,
as provided in appropriations Acts, to extend the term
of the underlying housing assistance payment contract for
such period as the Secretary determines to be appropriate
to achieve long-term affordability of the housing. The con-
tract shall obligate the owner to have such extensions
of the underlying housing assistance payment contract
accepted by the owner and the successors in interest of
the owner.
‘‘(C) RENT CALCULATION.—For project-based assistance
under this paragraph, housing assistance payment con-
tracts shall establish rents and provide for rent adjust-
ments in accordance with subsection (c).
‘‘(D) ADJUSTED RENTS.—With respect to rents adjusted
under this paragraph—
‘‘(i) the adjusted rent for any unit shall be reason-
able in comparison with rents charged for comparable
dwelling units in the private, unassisted, local market;
and
‘‘(ii) the provisions of subsection (c)(2)(C) shall not
apply.
‘‘(14) INAPPLICABILITY TO TENANT-BASED ASSISTANCE.—Sub-
section (c) shall not apply to tenant-based assistance under
this subsection.
‘‘(15) HOMEOWNERSHIP OPTION.—
‘‘(A) IN GENERAL.—A public housing agency providing
assistance under this subsection may, at the option of
the agency, provide assistance for homeownership under
subsection (y).
‘‘(B) ALTERNATIVE ADMINISTRATION.—A public housing
agency may contract with a nonprofit organization to
administer a homeownership program under subsection (y).
‘‘(16) RENTAL
VOUCHERS
FOR
RELOCATION
OF
WITNESSES
AND VICTIMS OF CRIME.—
‘‘(A) WITNESSES.—Of amounts made available for
assistance under this subsection in each fiscal year, the
Secretary, in consultation with the Inspector General, shall
make available such sums as may be necessary for the
relocation of witnesses in connection with efforts to combat
crime in public and assisted housing pursuant to requests
from law enforcement or prosecution agencies.
‘‘(B) VICTIMS OF CRIME.—
‘‘(i) IN GENERAL.—Of amounts made available for
assistance under this section in each fiscal year, the
Secretary shall make available such sums as may be