I
103D CONGRESS
1ST SESSION
H. R. 2957
To authorize public housing agencies to establish policies regarding the
amount of rent paid by tenants of public housing units and units assisted
under section 8 of the United States Housing Act of 1937 that create
incentives for family self-sufficiency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 6, 1993
Mr. KNOLLENBERG introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
A BILL
To authorize public housing agencies to establish policies
regarding the amount of rent paid by tenants of public
housing units and units assisted under section 8 of the
United States Housing Act of 1937 that create incentives
for family self-sufficiency, 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.
This Act may be cited as the ‘‘Rent Reform and
Empowerment Act’’.
SEC. 2. DETERMINATION OF INCOME AND RENT CHARGES
FOR SECTION 8 AND PUBLIC HOUSING PRO-
GRAMS.
(a) EXCLUSION OF INCOME TAXES AND FICA TAX
FROM INCOME.—Section 3(b)(5) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amend-
ed—
(1) by redesignating subparagraphs (A) through
(G) as subparagraphs (B) through (H), respectively;
and
(2) by inserting before subparagraph (B) (as so
redesignated by paragraph (1) of this section) the
following new subparagraph:
‘‘(A) the amount of any Federal, State,
and local income taxes paid by members of the
family and the amount paid by members of the
family for the taxes imposed under section 3101
and 3201(a) of the Internal Revenue Code of
1986;’’.
(b) OPTION TO EXCLUDE EARNED INCOME.—Section
3(b)(5) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(5)) is amended by adding at the end the
following new flush sentence:
‘‘At the option of a public housing agency, the agency may
(for all families residing in housing assisted by the agency
under this Act) exclude from consideration as income for
purposes of determining any limitation on the amount of
rent paid by a family, all or part of any increases in the
earned income of a family that results from the employ-
ment of a previously unemployed family member; except
that such increases in earned income may be excluded only
during the 5-year period beginning on the employment of
the family member.’’.
(c) OPTION TO ESTABLISH CEILING RENTS.—Sec-
tion 3(a) of the United States Housing Act of 1937 (42
U.S.C. 1437a(a)) is amended by adding at the end the
following new paragraph:
‘‘(3) CEILING RENT OPTION.—At the option of a
public housing agency, the agency may provide that rental
charges be determined as follows:
‘‘(A) PUBLIC HOUSING AND CERTIFICATES.—
Notwithstanding paragraph (1), each family residing
in housing assisted by the agency under this Act
(other than units assisted under section 8(o) or (y))
shall pay as monthly rent for the dwelling unit the
lesser of—
‘‘(i) the amount determined under para-
graph (1); or
‘‘(ii) 75 percent of—
‘‘(I) the fair market rental for the
unit, in the case of units assisted under
section 8(b); and
‘‘(II) the fair market rental estab-
lished for comparable units in the market
area in which the dwelling unit is located,
in the case of public housing dwelling
units.
‘‘(B) 
VOUCHERS.—Notwithstanding 
section
8(o)(2), for each family residing in housing assisted
by the agency under section 8(o), the monthly assist-
ance payment for the family shall be the amount by
which the payment standard for the area exceeds the
lesser of—
‘‘(i) 30 percent of the family’s monthly ad-
justed income; or
‘‘(ii) 75 percent of the monthly payment
standard.’’.
(d) OPTION TO FREEZE RENTAL PAYMENTS.—Sec-
tion 3(a) of the United States Housing Act of 1937 (42
U.S.C. 1437a(a)), as amended by subsection (b), is fur-
ther amended by adding at the end the following new para-
graph:
‘‘(4) OPTION TO FREEZE RENTAL PAYMENTS.—At
the option of a public housing agency, the agency may pro-
vide that, with respect only to families that the agency
has determined are engaged in activities that promote eco-
nomic independence and self-sufficiency—
‘‘(A) notwithstanding paragraph (1), each such
family shall pay as rent for a dwelling unit assisted
by the agency under section 8(b) and for a public
housing dwelling unit of the agency, during the pe-
riod in which the family continuously occupies any
units assisted under this Act, the sum of—
‘‘(i) the amount payable as rent by such
family under paragraph (1) upon initial occu-
pancy 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; and
‘‘(B) notwithstanding section 8(o)(2), for each
such family residing in housing assisted by the agen-
cy under section 8(o), the monthly assistance pay-
ment for the family during the period in which the