184
(2) upon the expiration of the 4-year period be-
ginning upon the approval of the plan, the mixed-fi-
nance housing development is not substantially
ready for occupancy and is placed under the block
grant contract for the agency under section 201; or
(3) the number of dwelling units in the mixed-
finance housing development that are made available
for occupancy only by low-income families is sub-
stantially less than the number of such dwelling
units in the public housing demolished, disposed of,
or revitalized.
The Secretary may extend the period under paragraph (1)
or (2) for a public housing agency if the Secretary deter-
mines that circumstances beyond the control of the agency
caused the agency to fail to meet the deadline under such
paragraph.
Subtitle G—General Provisions
SEC. 281. PAYMENT OF NON-FEDERAL SHARE.
Rental or use-value of buildings or facilities paid for,
in whole or in part, from production, modernization, or
operation costs financed under this title may be used as
the non-Federal share required in connection with activi-
ties undertaken under Federal grant-in-aid programs
which provide social, educational, employment, and other
185
services to the residents in a project assisted under this
title.
SEC. 
282. 
AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR
BLOCK GRANTS.
There are authorized to be appropriated for grants
under this title, the following amounts:
(1) CAPITAL FUND.—For the allocations from
the capital fund for grants, $2,500,000,000 for each
of fiscal years 1998, 1999, 2000, 2001, and 2002.
(2) OPERATING
FUND.—For the allocations
from the operating fund for grants, $2,900,000,000
for each of fiscal years 1998, 1999, 2000, 2001, and
2002.
SEC. 283. FUNDING FOR OPERATION SAFE HOME.
Of any amounts made available for fiscal years 1998
and 1999 for carrying out the Community Partnerships
Against Crime Act of 1997 (as so designated pursuant to
section 624(a) of this Act), not more than $20,000,000
shall be available in each such fiscal year, for use under
the Operation Safe Home program administered by the
Office of the Inspector General of the Department of
Housing and Urban Development, for law enforcement ef-
forts to combat violent crime on or near the premises of
public and federally assisted housing.
186
SEC. 284. FUNDING FOR RELOCATION OF VICTIMS OF DO-
MESTIC VIOLENCE.
Of any amounts made available for fiscal years 1998,
1999, 2000, 2001, and 2002 for choice-based housing as-
sistance under title III of this Act, not more than
$700,000 shall be available in each such fiscal year for
relocating residents of public housing (including providing
assistance for costs of relocation and housing assistance
under title III of this Act) who are residing in public hous-
ing, who have been subject to domestic violence, and for
whom provision of assistance is likely to reduce or elimi-
nate the threat of subsequent violence to the members of
the family. The Secretary shall establish procedures for
eligibility and administration of assistance under this sec-
tion.
TITLE III—CHOICE-BASED RENT-
AL 
HOUSING 
AND 
HOME-
OWNERSHIP ASSISTANCE FOR
LOW-INCOME FAMILIES
Subtitle A—Allocation
SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE
AMOUNTS.
To the extent that amounts to carry out this title are
made available, the Secretary may enter into contracts
with public housing agencies for each fiscal year to provide
housing assistance under this title.
188
(2) to establish procedures for assisted families
to notify the agency of any noncompliance with such
provisions.
SEC. 
303. 
ELIGIBILITY 
OF 
PHA’S 
FOR 
ASSISTANCE
AMOUNTS.
The Secretary may provide amounts available for
housing assistance under this title pursuant to the formula
established under section 304(a) to a public housing agen-
cy only if—
(1) the agency has submitted a local housing
management plan to the Secretary for such fiscal
year and applied to the Secretary for such assist-
ance;
(2) the plan has been determined to comply
with the requirements under section 106 and the
Secretary has not notified the agency that the plan
fails to comply with such requirements;
(3) no member of the board of directors or
other governing body of the agency, or the executive
director, has been convicted of a felony; and
(4) the agency has not been disqualified for as-
sistance pursuant to title V.
SEC. 304. ALLOCATION OF AMOUNTS.
(a) FORMULA ALLOCATION.—
189
(1) IN GENERAL.—When amounts for assist-
ance under this title are first made available for res-
ervation, after reserving amounts in accordance with
subsections (b)(3) and (c), the Secretary shall allo-
cate such amounts, only among public housing agen-
cies meeting the requirements under this title to re-
ceive such assistance, on the basis of a formula that
is established in accordance with paragraph (2) and
based upon appropriate criteria to reflect the needs
of different States, areas, and communities, using
the most recent data available from the Bureau of
the Census of the Department of Commerce and the
comprehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National Af-
fordable Housing Act (or any consolidated plan in-
corporating such strategy) for the applicable juris-
diction. The Secretary may establish a minimum al-
location amount, in which case only the public hous-
ing agencies that, pursuant to the formula, are pro-
vided an amount equal to or greater than the mini-
mum allocation amount, shall receive an allocation.
(2) REGULATIONS.—The formula under this
subsection shall be established by regulation issued
by the Secretary. Notwithstanding sections 563(a)
and 565(a) of title 5, United States Code, any pro-
190
posed regulation containing such formula shall be is-
sued pursuant to a negotiated rulemaking procedure
under subchapter III of chapter 5 of such title and
the Secretary shall establish a negotiated rulemaking
committee for development of any such proposed
regulations.
(b) ALLOCATION CONSIDERATIONS.—
(1) LIMITATION
ON
REALLOCATION
FOR
AN-
OTHER STATE.—Any amounts allocated for a State
or areas or communities within a State that are not
likely to be used within the fiscal year for which the
amounts are provided shall not be reallocated for use
in another State, unless the Secretary determines
that other areas or communities within the same
State (that are eligible for amounts under this title)
cannot use the amounts within the same fiscal year.
(2) EFFECT OF RECEIPT OF TENANT-BASED AS-
SISTANCE FOR DISABLED FAMILIES.—The Secretary
may not consider the receipt by a public housing
agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing
Act, or the amount received, in approving amounts
under this title for the agency or in determining the
amount of such assistance to be provided to the
agency.
191
(3) EXEMPTION
FROM
FORMULA
ALLOCA-
TION.—The formula allocation requirements of sub-
section (a) shall not apply to any assistance under
this title that is approved in appropriation Acts for
uses that the Secretary determines are incapable of
geographic allocation, including amendments of ex-
isting housing assistance payments contracts, re-
newal of such contracts, assistance to families that
would otherwise lose assistance due to the decision
of the project owner to prepay the project mortgage
or not to renew the housing assistance payments
contract, assistance to prevent displacement from
public or assisted housing or to provide replacement
housing in connection with the demolition or disposi-
tion of public housing, assistance for relocation from
public housing, assistance in connection with protec-
tion of crime witnesses, assistance for conversion
from leased housing contracts under section 23 of
the United States Housing Act of 1937 (as in effect
before the enactment of the Housing and Commu-
nity Development Act of 1974), and assistance in
support of the property disposition and portfolio
management functions of the Secretary.
(c) RECAPTURE OF AMOUNTS.—
192
(1) AUTHORITY.—In each fiscal year, from any
budget authority made available for assistance under
this title or section 8 of the United States Housing
Act of 1937 (as in effect before the effective date of
the repeal under section 601(b) of this Act) that is
obligated to a public housing agency but remains un-
obligated by the agency upon the expiration of the
8-month period beginning upon the initial availabil-
ity of such amounts for obligation by the agency, the
Secretary may deobligate an amount, as determined
by the Secretary, not exceeding 50 percent of such
unobligated amount.
(2) USE.—The Secretary may reallocate and
transfer any amounts deobligated under paragraph
(1) only to public housing agencies in areas that the
Secretary determines have received less funding than
other areas, based on the relative needs of all areas.
SEC. 305. ADMINISTRATIVE FEES.
(a) FEE
FOR ONGOING COSTS
OF ADMINISTRA-
TION.—
(1) IN GENERAL.—The Secretary shall establish
fees for the costs of administering the choice-based
housing assistance program under this title.
(2) FISCAL YEAR 1998.—
193
(A) CALCULATION.—For fiscal year 1998,
the fee for each month for which a dwelling
unit is covered by a contract for assistance
under this title shall be—
(i) in the case of a public housing
agency that, on an annual basis, is admin-
istering a program for not more than 600
dwelling units, 7.65 percent of the base
amount; and
(ii) in the case of an agency that, on
an annual basis, is administering a pro-
gram for more than 600 dwelling units—
(I) for the first 600 units, 7.65
percent of the base amount; and
(II) for any additional dwelling
units under the program, 7.0 percent
of the base amount.
(B) BASE AMOUNT.—For purposes of this
paragraph, the base amount shall be the higher
of—
(i) the fair market rental established
under section 8(c) of the United States
Housing Act of 1937 (as in effect imme-
diately before the effective date of the re-
peal under section 601(b) of this Act) for
194
fiscal year 1993 for a 2-bedroom existing
rental dwelling unit in the market area of
the agency, and
(ii) the amount that is the lesser of
(I) such fair market rental for fiscal year
1994 or (II) 103.5 percent of the amount
determined under clause (i),
adjusted based on changes in wage data or
other objectively measurable data that reflect
the costs of administering the program, as de-
termined by the Secretary. The Secretary may
require that the base amount be not less than
a minimum amount and not more than a maxi-
mum amount.
(3) SUBSEQUENT FISCAL YEARS.—For subse-
quent fiscal years, the Secretary shall publish a no-
tice in the Federal Register, for each geographic
area, establishing the amount of the fee that would
apply for public housing agencies administering the
program, based on changes in wage data or other
objectively measurable data that reflect the costs of
administering the program, as determined by the
Secretary.
(4) INCREASE.—The Secretary may increase
the fee if necessary to reflect the higher costs of ad-
195
ministering small programs and programs operating
over large geographic areas.
(b) FEE FOR PRELIMINARY EXPENSES.—The Sec-
retary shall also establish reasonable fees (as determined
by the Secretary) for—
(1) the costs of preliminary expenses, in the
amount of $500, for a public housing agency, but
only in the first year that the agency administers a
choice-based housing assistance program under this
title, and only if, immediately before the effective
date of this Act, the agency was not administering
a tenant-based rental assistance program under the
United States Housing Act of 1937 (as in effect im-
mediately before such effective date), in connection
with its initial increment of assistance received;
(2) the costs incurred in assisting families who
experience difficulty (as determined by the Sec-
retary) in obtaining appropriate housing under the
programs; and
(3) extraordinary costs approved by the Sec-
retary.
(c) TRANSFER OF FEES IN CASES OF CONCURRENT
GEOGRAPHICAL JURISDICTION.—In each fiscal year, if
any public housing agency provides tenant-based rental as-
sistance under section 8 of the United States Housing Act
196
of 1937 or housing assistance under this title on behalf
of a family who uses such assistance for a dwelling unit
that is located within the jurisdiction of such agency but
is also within the jurisdiction of another public housing
agency, the Secretary shall take such steps as may be nec-
essary to ensure that the public housing agency that pro-
vides the services for a family receives all or part of the
administrative fee under this section (as appropriate).
SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated for providing public housing agencies with housing
assistance under this title, such sums as may be necessary
for each of fiscal years 1998, 1999, 2000, 2001, and 2002
to provide amounts for incremental assistance under this
title, for renewal of expiring contracts under section 302
of this Act and renewal under this title of expiring con-
tracts for tenant-based rental assistance under section 8
of the United States Housing Act of 1937 (as in effect
before the effective date of the repeal under section 601(b)
of this Act), and for replacement needs for public housing
under title II.
(b) ASSISTANCE FOR DISABLED FAMILIES.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated, for choice-
based housing assistance under this title to be used
197
in accordance with paragraph (2), $50,000,000 for
fiscal year 1998, and such sums as may be nec-
essary for each subsequent fiscal year.
(2) USE.—The Secretary shall provide amounts
made available under paragraph (1) to public hous-
ing agencies only for use to provide housing assist-
ance under this title for nonelderly disabled families
(including such families relocating pursuant to des-
ignation of a public housing development under sec-
tion 227 or the establishment of occupancy restric-
tions in accordance with section 658 of the Housing
and Community Development Act of 1992 and other
nonelderly disabled families who have applied to the
agency for housing assistance under this title).
(3) ALLOCATION OF AMOUNTS.—The Secretary
shall allocate and provide amounts made available
under paragraph (1) to public housing agencies as
the Secretary determines appropriate based on the
relative levels of need among the authorities for as-
sistance for families described in paragraph (1).
(c) ASSISTANCE FOR WITNESS RELOCATION.—Of the
amounts made available for choice-based housing assist-
ance under this title for each fiscal year, the Secretary,
in consultation with the Inspector General, shall make
available such sums as may be necessary for such housing
198
assistance for the relocation of witnesses in connection
with efforts to combat crime in public and assisted hous-
ing pursuant to requests from law enforcement and prose-
cutive agencies.
SEC. 307. CONVERSION OF SECTION 8 ASSISTANCE.
(a) IN GENERAL.—Any amounts made available to
a public housing agency under a contract for annual con-
tributions for assistance under section 8 of the United
States Housing Act of 1937 (as in effect before the effec-
tive date of the repeal under section 601(b) of this Act)
that have not been obligated for such assistance by such
agency before such effective date shall be used to provide
assistance under this title, except to the extent the Sec-
retary determines such use is inconsistent with existing
commitments.
(b) EXCEPTION.—Subsection (a) shall not apply to
any amounts made available under a contract for housing
constructed or substantially rehabilitated pursuant to sec-
tion 8(b)(2) of the United States Housing Act of 1937,
as in effect before October 1, 1983.
199
SEC. 308. RECAPTURE AND REUSE OF ANNUAL CONTRACT
PROJECT RESERVES UNDER CHOICE-BASED
HOUSING ASSISTANCE AND SECTION 8 TEN-
ANT-BASED ASSISTANCE PROGRAMS.
To the extent that the Secretary determines that the
amount in the reserve account for annual contributions
contracts (for housing assistance under this title or ten-
ant-based assistance under section 8 of the United States
Housing Act of 1937) that is under contract with a public
housing agency for such assistance is in excess of the
amounts needed by the agency, the Secretary shall recap-
ture such excess amount. The Secretary may hold recap-
tured amounts in reserve until needed to enter into,
amend, or renew contracts under this title or to amend
or renew contracts under section 8 of such Act for tenant-
based assistance with any agency.
Subtitle B—Choice-Based Housing
Assistance for Eligible Families
SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR AS-
SISTANCE.
(a) LOW-INCOME REQUIREMENT.—Housing assist-
ance under this title may be provided only on behalf of
a family that—
(1) at the time that such assistance is initially
provided on behalf of the family, is determined by
200
the public housing agency to be a low-income family;
or
(2) qualifies to receive such assistance under
any other provision of Federal law.
(b) INCOME TARGETING.—Of the families initially as-
sisted under this title by a public housing agency in any
year, not less than 40 percent shall be families whose in-
comes do not exceed 30 percent of the area median in-
come, as determined by the Secretary with adjustments
for smaller and larger families. The Secretary may estab-
lish income ceiling higher or lower than 30 percent of the
area median income on the basis of the Secretary’s find-
ings that such variations are necessary because of unusu-
ally high or low family incomes.
(c) REVIEWS OF FAMILY INCOMES.—
(1) IN GENERAL.—Reviews of family incomes
for purposes of this title shall be subject to the pro-
visions of section 904 of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 and
shall be conducted upon the initial provision of hous-
ing assistance for the family and thereafter not less
than annually.
(2) PROCEDURES.—Each public housing agency
administering housing assistance under this title
shall establish procedures that are appropriate and
201
necessary to ensure that income data provided to the
agency and owners by families applying for or re-
ceiving housing assistance from the agency is com-
plete and accurate.
(d) PREFERENCES FOR ASSISTANCE.—
(1) AUTHORITY
TO
ESTABLISH.—Any public
housing agency that receives amounts under this
title may establish a system for making housing as-
sistance available on behalf of eligible families that
provides preference for such assistance to eligible
families having certain characteristics.
(2) CONTENT.—Each system of preferences es-
tablished pursuant to this subsection shall be based
upon local housing needs and priorities, as deter-
mined by the public housing agency using generally
accepted data sources, including any information ob-
tained pursuant to an opportunity for public com-
ment as provided under section 106(e) and under
the requirements applicable to the comprehensive
housing affordability strategy for the relevant juris-
diction.
(3) SENSE OF THE CONGRESS.—It is the sense
of the Congress that, to the greatest extent prac-
ticable, public housing agencies involved in the selec-
tion of tenants under the provisions of this title
202
should adopt preferences for individuals who are vic-
tims of domestic violence.
(e) PORTABILITY OF HOUSING ASSISTANCE.—
(1) NATIONAL PORTABILITY.—An eligible fam-
ily that is selected to receive or is receiving assist-
ance under this title may rent any eligible dwelling
unit in any area where a program is being adminis-
tered under this title. Notwithstanding the preceding
sentence, a public housing agency may require that
any family not living within the jurisdiction of the
public housing agency at the time the family applies
for assistance from the agency shall, during the 12-
month period beginning on the date of initial receipt
of housing assistance made available on behalf of the
family from such agency, lease and occupy an eligi-
ble dwelling unit located within the jurisdiction
served by the agency. The agency for the jurisdiction
into which the family moves shall have the respon-
sibility for administering assistance for the family.
(2) SOURCE OF FUNDING FOR A FAMILY THAT
MOVES.—For a family that has moved into the juris-
diction of a public housing agency and that, at the
time of the move, has been selected to receive, or is
receiving, assistance provided by another agency, the
agency for the jurisdiction into which the family has
203
moved may, in its discretion, cover the cost of assist-
ing the family under its contract with the Secretary
or through reimbursement from the other agency
under that agency’s contract.
(3) AUTHORITY TO DENY ASSISTANCE TO CER-
TAIN FAMILIES WHO MOVE.—A family may not re-
ceive housing assistance as provided under this sub-
section if the family has moved from a dwelling unit
in violation of the lease for the dwelling unit.
(4) FUNDING ALLOCATIONS.—In providing as-
sistance amounts under this title for public housing
agencies for any fiscal year, the Secretary may give
consideration to any reduction or increase in the
number of resident families under the program of an
agency in the preceding fiscal year as a result of this
subsection.
(f) CONFIDENTIALITY FOR VICTIMS OF DOMESTIC
VIOLENCE.—A public housing agency shall be subject to
the restrictions regarding release of information relating
to the identity and new residence of any family receiving
housing assistance who was a victim of domestic violence
that are applicable to shelters pursuant to the Family Vio-
lence Prevention and Services Act. The agency shall work
with the United States Postal Service to establish proce-
204
dures consistent with the confidentiality provisions in the
Violence Against Women Act of 1994.
SEC. 322. RESIDENT CONTRIBUTION.
(a) AMOUNT.—
(1) MONTHLY
RENT
CONTRIBUTION.—An as-
sisted family shall contribute on a monthly basis for
the rental of an assisted dwelling unit an amount
that the public housing agency determines is appro-
priate with respect to the family and the unit, but
which—
(A) shall not be less than the minimum
monthly rental contribution determined under
subsection (b); and
(B) shall not exceed the greatest of—
(i) 30 percent of the monthly adjusted
income of the family;
(ii) 10 percent of the monthly income
of the family; and
(iii) if the family is receiving pay-
ments for welfare assistance from a public
agency and a part of such payments, ad-
justed in accordance with the actual hous-
ing costs of the family, is specifically des-
ignated by such agency to meet the hous-
205
ing costs of the family, the portion of such
payments that is so designated.
(2) EXCESS RENTAL AMOUNT.—In any case in
which the monthly rent charged for a dwelling unit
pursuant to the housing assistance payments con-
tract exceeds the applicable payment standard (es-
tablished under section 353) for the dwelling unit,
the assisted family residing in the unit shall contrib-
ute (in addition to the amount of the monthly rent
contribution otherwise determined under paragraph
(1) for such family) such entire excess rental
amount.
(b) MINIMUM MONTHLY RENTAL CONTRIBUTION.—
(1) IN GENERAL.—The public housing agency
shall determine the amount of the minimum monthly
rental contribution of an assisted family (which rent
shall include any amount allowed for utilities),
which—
(A) shall be based upon factors including
the adjusted income of the family and any other
factors that the agency considers appropriate;
(B) shall be not less than $25, nor more
than $50; and
(C) may be increased annually by the
agency, except that no such annual increase
206
may exceed 10 percent of the amount of the
minimum monthly contribution in effect for the
preceding year.
(2) HARDSHIP PROVISIONS.—
(A) IN GENERAL.—Notwithstanding para-
graph (1), a public housing agency shall grant
an exemption in whole or in part from payment
of the minimum monthly rental contribution es-
tablished under this paragraph to any assisted
family unable to pay such amount because of fi-
nancial hardship, which shall include situations
in which (i) the family has lost eligibility for or
is awaiting an eligibility determination for a
Federal, State, or local assistance program, in-
cluding a family that includes a member who is
an alien lawfully admitted for permanent resi-
dence under the Immigration and Nationality
Act who would be entitled to public benefits but
for title IV of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996;
(ii) the family would be evicted as a result of
imposition of the minimum rent; (iii) the in-
come of the family has decreased because of
changed circumstance, including loss of employ-
ment; and (iv) a death in the family has oc-
207
curred; and other situations as may be deter-
mined by the agency.
(B) WAITING PERIOD.—If an assisted fam-
ily requests a hardship exemption under this
paragraph and the public housing agency rea-
sonably determines the hardship to be of a tem-
porary nature, an exemption shall not be grant-
ed during the 90-day period beginning upon the
making of a request for the exemption. An as-
sisted family may not be evicted during such
90-day period for nonpayment of rent. In such
a case, if the assisted family thereafter dem-
onstrates that the financial hardship is of a
long-term basis, the agency shall retroactively
exempt the family from the applicability of the
minimum rent requirement for such 90-day pe-
riod.
(c) TREATMENT
OF CHANGES
IN RENTAL CON-
TRIBUTION.—
(1) NOTIFICATION
OF
CHANGES.—A public
housing agency shall promptly notify the owner of
an assisted dwelling unit of any change in the resi-
dent contribution by the assisted family residing in
the unit that takes effect immediately or at a later
date.