IIB 
114TH CONGRESS 
2D SESSION 
H. R. 3700 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 3, 2016 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To provide housing opportunities in the United States 
through modernization of various housing programs, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Housing Opportunity Through Modernization Act of 
2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING 
Sec. 101. Inspection of dwelling units. 
Sec. 102. Income reviews. 
Sec. 103. Limitation on public housing tenancy for over-income families. 
Sec. 104. Limitation on eligibility for assistance based on assets. 
Sec. 105. Units owned by public housing agencies. 
Sec. 106. PHA project-based assistance. 
Sec. 107. Establishment of fair market rent. 
Sec. 108. Collection of utility data. 
Sec. 109. Public housing Capital and Operating Funds. 
Sec. 110. Family unification program for children aging out of foster care. 
Sec. 111. Public housing heating guidelines. 
Sec. 112. Use of vouchers for manufactured housing. 
Sec. 113. Preference for United States citizens or nationals. 
Sec. 114. Exception to public housing agency resident board member require-
ment. 
TITLE II—RURAL HOUSING 
Sec. 201. Delegation of guaranteed rural housing loan approval. 
Sec. 202. Guaranteed underwriting user fee. 
TITLE III—FHA MORTGAGE INSURANCE FOR CONDOMINIUMS 
Sec. 301. Modification of FHA requirements for mortgage insurance for con-
dominiums. 
TITLE IV—HOUSING REFORMS FOR THE HOMELESS AND FOR 
VETERANS 
Sec. 401. Definition of geographic area for Continuum of Care Program. 
Sec. 402. Inclusion of public housing agencies and local redevelopment authori-
ties in emergency solutions grants. 
Sec. 403. Special assistant for Veterans Affairs in the Department of Housing 
and Urban Development. 
Sec. 404. Annual supplemental report on veterans homelessness. 
Sec. 405. Reopening of public comment period for continuum of care program 
regulations. 
TITLE V—MISCELLANEOUS 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain fraud 
and abuse prevention measures. 
Sec. 502. Energy efficiency requirements under Self-Help Homeownership Op-
portunity program. 
Sec. 503. Data exchange standardization for improved interoperability. 
TITLE VI—REPORTS 
Sec. 601. Report on interagency family economic empowerment strategies. 
TITLE VII—HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS 
Sec. 701. Formula and terms for allocations to prevent homelessness for indi-
viduals living with HIV or AIDS. 
TITLE I—SECTION 8 RENTAL AS-
SISTANCE AND PUBLIC HOUS-
ING 
SEC. 101. INSPECTION OF DWELLING UNITS. 
(a) IN GENERAL.—Section 8(o)(8) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is 
amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling 
unit for which a housing assistance pay-
ment contract is established under this 
subsection, the public housing agency (or 
other entity pursuant to paragraph (11)) 
shall inspect the unit before any assistance 
payment is made to determine whether the 
dwelling unit meets the housing quality 
standards under subparagraph (B), except 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
as provided in clause (ii) or (iii) of this 
subparagraph. 
‘‘(ii) 
CORRECTION
OF
NON-LIFE- 
THREATENING CONDITIONS.—In the case 
of any dwelling unit that is determined, 
pursuant to an inspection under clause (i), 
not to meet the housing quality standards 
under subparagraph (B), assistance pay-
ments may be made for the unit notwith-
standing subparagraph (C) if failure to 
meet such standards is a result only of 
non-life-threatening conditions, as such 
conditions are established by the Secretary. 
A public housing agency making assistance 
payments pursuant to this clause for a 
dwelling unit shall, 30 days after the be-
ginning of the period for which such pay-
ments are made, withhold any assistance 
payments for the unit if any deficiency re-
sulting in noncompliance with the housing 
quality standards has not been corrected 
by such time. The public housing agency 
shall recommence assistance payments 
when such deficiency has been corrected, 
and may use any payments withheld to 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
make assistance payments relating to the 
period during which payments were with-
held. 
‘‘(iii) USE OF ALTERNATIVE INSPEC-
TION METHOD FOR INTERIM PERIOD.—In 
the case of any property that within the 
previous 24 months has met the require-
ments of an inspection that qualifies as an 
alternative inspection method pursuant to 
subparagraph (E), a public housing agency 
may authorize occupancy before the inspec-
tion under clause (i) has been completed, 
and may make assistance payments retro-
active to the beginning of the lease term 
after the unit has been determined pursu-
ant to an inspection under clause (i) to 
meet the housing quality standards under 
subparagraph (B). This clause may not be 
construed to exempt any dwelling unit 
from compliance with the requirements of 
subparagraph (D).’’; 
(2) by redesignating subparagraph (G) as sub-
paragraph (H); and 
(3) by inserting after subparagraph (F) the fol-
lowing new subparagraph: 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
‘‘(G) ENFORCEMENT OF HOUSING QUALITY 
STANDARDS.— 
‘‘(i) DETERMINATION OF NONCOMPLI-
ANCE.—A dwelling unit that is covered by 
a housing assistance payments contract 
under this subsection shall be considered, 
for purposes of subparagraphs (D) and 
(F), to be in noncompliance with the hous-
ing quality standards under subparagraph 
(B) if— 
‘‘(I) the public housing agency or 
an inspector authorized by the State 
or unit of local government deter-
mines upon inspection of the unit that 
the unit fails to comply with such 
standards; 
‘‘(II) the agency or inspector no-
tifies the owner of the unit in writing 
of such failure to comply; and 
‘‘(III) the failure to comply is not 
corrected— 
‘‘(aa) in the case of any 
such failure that is a result of 
life-threatening conditions, within 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
24 hours after such notice has 
been provided; and 
‘‘(bb) in the case of any 
such failure that is a result of 
non-life-threatening 
conditions, 
within 30 days after such notice 
has been provided or such other 
reasonable longer period as the 
public housing agency may estab-
lish. 
‘‘(ii) WITHHOLDING
OF
ASSISTANCE 
AMOUNTS
DURING
CORRECTION.—The 
public housing agency may withhold assist-
ance amounts under this subsection with 
respect to a dwelling unit for which a no-
tice pursuant to clause (i)(II), of failure to 
comply with housing quality standards 
under subparagraph (B) as determined 
pursuant to an inspection conducted under 
subparagraph (D) or (F), has been pro-
vided. If the unit is brought into compli-
ance with such housing quality standards 
during the periods referred to in clause 
(i)(III), the public housing agency shall re-
commence assistance payments and may 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
use any amounts withheld during the cor-
rection period to make assistance payments 
relating to the period during which pay-
ments were withheld. 
‘‘(iii) ABATEMENT
OF
ASSISTANCE 
AMOUNTS.—The public housing agency 
shall abate all of the assistance amounts 
under this subsection with respect to a 
dwelling unit that is determined, pursuant 
to clause (i) of this subparagraph, to be in 
noncompliance with housing quality stand-
ards under subparagraph (B). Upon com-
pletion of repairs by the public housing 
agency or the owner sufficient so that the 
dwelling unit complies with such housing 
quality standards, the agency shall recom-
mence payments under the housing assist-
ance payments contract to the owner of the 
dwelling unit. 
‘‘(iv) NOTIFICATION.—If a public 
housing agency providing assistance under 
this subsection abates rental assistance 
payments pursuant to clause (iii) with re-
spect to a dwelling unit, the agency shall, 
upon commencement of such abatement— 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS
HR 3700 RFS
‘‘(I) notify the tenant and the 
owner of the dwelling unit that— 
‘‘(aa) such abatement has 
commenced; and 
‘‘(bb) if the dwelling unit is 
not brought into compliance with 
housing quality standards within 
60 days after the effective date of 
the determination of noncompli-
ance under clause (i) or such rea-
sonable longer period as the 
agency may establish, the tenant 
will have to move; and 
‘‘(II) issue the tenant the nec-
essary forms to allow the tenant to 
move to another dwelling unit and 
transfer the rental assistance to that 
unit. 
‘‘(v) PROTECTION OF TENANTS.—An 
owner of a dwelling unit may not terminate 
the tenancy of any tenant because of the 
withholding or abatement of assistance 
pursuant to this subparagraph. During the 
period that assistance is abated pursuant 
VerDate Sep 11 2014 
22:08 Feb 03, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3700.RFS
H3700
mstockstill on DSK4VPTVN1PROD with BILLS