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(2) COLLECTION OF RETROACTIVE CHANGES.—
In the case of any change in the rental contribution
of an assisted family that affects rental payments
previously made, the public housing agency shall col-
lect any additional amounts required to be paid by
the family under such change directly from the fam-
ily and shall refund any excess rental contribution
paid by the family directly to the family.
(d) 
PHASE-IN
OF
RENT
CONTRIBUTION
IN-
CREASES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), for any family that is receiving tenant-
based rental assistance under section 8 of the Unit-
ed States Housing Act of 1937 upon the initial ap-
plicability of the provisions of this title to such fam-
ily, if the monthly contribution for rental of an as-
sisted dwelling unit to be paid by the family upon
such initial applicability is greater than the amount
paid by the family under the provisions of the Unit-
ed States Housing Act of 1937 immediately before
such applicability, any such resulting increase in
rent contribution shall be—
(A) phased in equally over a period of not
less than 3 years, if such increase is 30 percent
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or more of such contribution before initial ap-
plicability; and
(B) limited to not more than 10 percent
per year if such increase is more than 10 per-
cent but less than 30 percent of such contribu-
tion before initial applicability.
(2) EXCEPTION.—The minimum rent contribu-
tion requirement under subsection (b)(1) shall apply
to each family described in paragraph (1) of this
subsection, notwithstanding such paragraph.
SEC. 323. RENTAL INDICATORS.
(a) IN GENERAL.—The Secretary shall establish and
issue rental indicators under this section periodically, but
not less than annually, for existing rental dwelling units
that are eligible dwelling units. The Secretary shall estab-
lish and issue the rental indicators by housing market area
(as the Secretary shall establish) for various sizes and
types of dwelling units.
(b) AMOUNT.—For a market area, the rental indica-
tor established under subsection (a) for a dwelling unit
of a particular size and type in the market area shall be
a dollar amount that reflects the rental amount for a
standard quality rental unit of such size and type in the
market area that is an eligible dwelling unit.
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(c) EFFECTIVE DATE.—The Secretary shall cause
the proposed rental indicators established under sub-
section (a) for each market area to be published in the
Federal Register with reasonable time for public comment,
and such rental indicators shall become effective upon the
date of publication in final form in the Federal Register.
(d) ANNUAL ADJUSTMENT.—Each rental indicator in
effect under this section shall be adjusted to be effective
on October 1 of each year to reflect changes, based on
the most recent available data trended so that the indica-
tors will be current for the year to which they apply, in
rents for existing rental dwelling units of various sizes and
types in the market area suitable for occupancy by families
assisted under this title.
SEC. 324. LEASE TERMS.
Rental assistance may be provided for an eligible
dwelling unit only if the assisted family and the owner of
the dwelling unit enter into a lease for the unit that—
(1) provides for a single lease term of 12
months and continued tenancy after such term
under a periodic tenancy on a month-to-month basis;
(2) contains terms and conditions specifying
that termination of tenancy during the term of a
lease shall be subject to the provisions set forth in
sections 642 and 643; and
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(3) is set forth in the standard form, which is
used in the local housing market area by the owner
and applies generally to any other tenants in the
property who are not assisted families, together with
any addendum necessary to include the many terms
required under this section.
A lease may include any addenda appropriate to set forth
the provisions under this title.
SEC. 325. TERMINATION OF TENANCY.
Each housing assistance payments contract shall pro-
vide that the owner shall conduct the termination of ten-
ancy of any tenant of an assisted dwelling unit under the
contract in accordance with applicable State or local laws,
including providing any notice of termination required
under such laws.
SEC. 326. ELIGIBLE OWNERS.
(a) OWNERSHIP ENTITY.—Rental assistance under
this title may be provided for any eligible dwelling unit
for which the owner is any public agency, private person
or entity (including a cooperative), nonprofit organization,
agency of the Federal Government, or public housing
agency.
(b) INELIGIBLE OWNERS.—
(1) IN GENERAL.—Notwithstanding subsection
(a), a public housing agency—
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(A) may not enter into a housing assist-
ance payments contract (or renew an existing
contract) covering a dwelling unit that is owned
by an owner who is debarred, suspended, or
subject to limited denial of participation under
part 24 of title 24, Code of Federal Regula-
tions;
(B) may prohibit, or authorize the termi-
nation or suspension of, payment of housing as-
sistance under a housing assistance payments
contract in effect at the time such debarment,
suspension, or limited denial of participation
takes effect.
If the public housing agency takes action under sub-
paragraph (B), the agency shall take such actions as
may be necessary to protect assisted families who
are affected by the action, which may include the
provision of additional assistance under this title to
such families.
(2) PROHIBITION OF SALE OR RENTAL TO RE-
LATED
PARTIES.—The Secretary shall establish
guidelines to prevent housing assistance payments
for a dwelling unit that is owned by any spouse,
child, or other party who allows an owner described
in paragraph (1) to maintain control of the unit.
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SEC. 327. SELECTION OF DWELLING UNITS.
(a) FAMILY CHOICE.—The determination of the
dwelling unit in which an assisted family resides and for
which housing assistance is provided under this title shall
be made solely by the assisted family, subject to the provi-
sions of this title and any applicable law.
(b) DEED RESTRICTIONS.—Housing assistance may
not be used in any manner that abrogates any local deed
restriction that applies to any housing consisting of 1 to
4 dwelling units. Nothing in this section may be construed
to affect the provisions or applicability of the Fair Hous-
ing Act.
SEC. 328. ELIGIBLE DWELLING UNITS.
(a) IN GENERAL.—A dwelling unit shall be an eligible
dwelling unit for purposes of this title only if the public
housing agency to provide housing assistance for the
dwelling unit determines that the dwelling unit—
(1) is an existing dwelling unit that is not lo-
cated within a nursing home or the grounds of any
penal, reformatory, medical, mental, or similar pub-
lic or private institution; and
(2) complies—
(A) in the case of a dwelling unit located
in a jurisdiction which has in effect laws, regu-
lations, standards, or codes regarding habit-