H. R. 4194—100
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of this section—
‘‘(i) for purposes of determining the allocations
from the Operating and Capital Funds pursuant to
the formulas under subsections (d)(2) and (e)(2) and
determining assistance pursuant to section 519(e) of
the Quality Housing and Work Responsibility Act of
1998 and under section 9 or 14 of the United States
Housing Act of 1937 (as in effect before the date of
the enactment of this Act), for any period before the
implementation of such formulas, the Secretary shall
deem any covered locally developed public housing
units as public housing units developed under this
title and such units shall be eligible for such assistance;
and
‘‘(ii) assistance provided under this section, under
such section 518(d)(3), or under such section 9 or 14
to any public housing agency may be used with respect
to any covered locally developed public housing units.
‘‘(B) COVERED UNITS.—For purposes of this paragraph,
the term ‘covered locally developed public housing units’
means—
‘‘(i) not more than 7,000 public housing units devel-
oped pursuant to laws of the State of New York and
that received debt service and operating subsidies
pursuant to such laws; and
‘‘(ii) not more than 5,000 dwelling units developed
pursuant to section 34 of chapter 121B of the General
Laws of the State of Massachusetts.
‘‘(2) REDUCTION OF ASTHMA INCIDENCE.—Notwithstanding
any other provision of this section, the New York City Housing
Authority may, in its sole discretion, from amounts provided
from the Operating and Capital Funds, or from amounts pro-
vided for public housing before amounts are made available
from such Funds, use not more than exceeding $500,000 per
year for the purpose of initiating, expanding or continuing
a program for the reduction of the incidence of asthma among
residents. The Secretary shall consult with the Administrator
of the Environmental Protection Agency and the Secretary of
Health and Human Services to identify and consider sources
of funding for the reduction of the incidence of asthma among
recipients of assistance under this title.
‘‘(3) SERVICES FOR ELDERLY RESIDENTS.—Notwithstanding
any other provision of this section, the New York City Housing
Authority may, in its sole discretion, from amounts provided
from the Operating and Capital Funds, or from amounts pro-
vided for public housing before the amounts are made available
from such Funds, use not more than $600,000 per year for
the purpose of developing a comprehensive plan to address
the need for services for elderly residents. Such plan may
be developed by a partnership created by such Housing Author-
ity and may include the creation of a model project for assisted
living at one or more developments. The model project may
provide for contracting with private parties for the delivery
of services.
‘‘(4) EFFECTIVE DATE.—This subsection shall apply to fiscal
year 1999 and each fiscal year thereafter.’’.
H. R. 4194—101
(b) ALLOCATION OF ASSISTANCE.—Section 6 of the United States
Housing Act of 1937 (42 U.S.C. 1437d) is amended by striking
subsection (p).
(c) CONFORMING AMENDMENTS.—The United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) is amended—
(1) in section 303(b)(10) (42 U.S.C. 1437aaa–2(b)(10)), by
striking ‘‘under section 9’’ the first place it appears and insert-
ing ‘‘from the Operating Fund’’; and
(2) in section 305(e) (42 U.S.C. 1437aaa–4(e)), by striking
‘‘Operating subsidies’’ and inserting ‘‘Amounts from an alloca-
tion from the Operating Fund’’.
(d) TRANSITIONAL CEILING RENTS.—Notwithstanding section
3(a)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437a(1)), during the period ending upon the later of the
implementation of the formulas established pursuant to subsections
(d)(2) and (e)(2) of such Act (as amended by this section) and
October 1, 1999, a public housing agency may take any of the
following actions with respect to public housing:
(1) NEW PROVISIONS.—An agency may—
(A) adopt and apply ceiling rents that reflect the
reasonable market value of the housing, but that are not
less than—
(i) for housing other than housing predominantly
for elderly or disabled families (or both), 75 percent
of the monthly cost to operate the housing of the
agency;
(ii) for housing predominantly for elderly or dis-
abled families (or both), 100 percent of the monthly
cost to operate the housing of the agency; and
(iii) the monthly cost to make a deposit to a
replacement reserve (in the sole discretion of the public
housing agency); and
(B) allow families to pay ceiling rents referred to in
subparagraph (A), unless, with respect to any family, the
ceiling rent established under this paragraph would exceed
the amount payable as rent by that family under paragraph
(1).
(2) CEILING RENTS FROM BALANCED BUDGET ACT, I.—An
agency may utilize the authority under section 3(a)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)),
as in effect immediately before the enactment of this Act,
notwithstanding any amendment to such section made by this
Act.
(3) TRANSITIONAL CEILING RENTS FOR BALANCED BUDGET
ACT, I.—An agency may utilize the authority with respect to
ceiling rents under section 402(b)(2) of The Balanced Budget
Downpayment Act, I (42 U.S.C. 1437a note), notwithstanding
any other provision of law (including the expiration of the
applicability of such section or the repeal of such section).
(e) TRANSITIONAL PROVISION OF ASSISTANCE.—
(1) IN
GENERAL.—Subject to paragraph (2), before the
implementation of formulas pursuant to sections 9(d)(2) and
9(e)(2) of the United States Housing Act of 1937 (as amended
by subsection (a) of this section), the Secretary shall provide
that each public housing agency shall receive funding under
sections 9 and 14 of the United States Housing Act of 1937,
as those sections existed immediately before the enactment
H. R. 4194—102
of this Act (except that such sections shall be subject to any
amendments to such sections that may be contained in title
II of this Act).
(2) QUALIFICATIONS.—Before the implementation of for-
mulas pursuant to sections 9(d)(2) and 9(e)(2) of the United
States Housing Act of 1937 (as amended by subsection (a)
of this section)—
(A) if a public housing agency establishes a rental
amount that is based on a ceiling rent established pursuant
to subsection (d)(1) of this section, the Secretary shall take
into account any reduction of the per unit dwelling rental
income of the public housing agency resulting from the
use of that rental amount in calculating the contributions
for the public housing agency for the operation of the
public housing under section 9 of the United States Housing
Act of 1937;
(B) if a public housing agency establishes a rental
amount that is based on an adjustment to income under
section 3(b)(5)(G) of the United States Housing Act of 1937
(as in effect immediately before the enactment of this Act),
the Secretary shall not take into account any reduction
of or any increase in the per unit dwelling rental income
of the public housing agency resulting from the use of
that rental amount in calculating the contributions for
the public housing agency for the operation of the public
housing under section 9 of the United States Housing Act
of 1937; and
(C) if a public housing agency establishes a rental
amount other than as provided under subparagraph (A)
or (B) that is less than the greatest of the amounts deter-
mined under subparagraphs (A), (B), and (C) of section
3(a)(1) of the United States Housing Act of 1937, the Sec-
retary shall not take into account any reduction of the
per unit dwelling rental income of the public housing
agency resulting from the use of that rental amount in
calculating the contributions for the public housing agency
for the operation of the public housing under section 9
of the United States Housing Act of 1937.
(f ) EFFECTIVE DATE OF OPERATING FORMULA.—Notwithstand-
ing the effective date under section 503(a), the Secretary may
extend the effective date of the formula under section 9(e)(2) of
the United States Housing Act of 1937 (as amended by subsection
(a) of this section) for up to 6 months if such additional time
is necessary to implement such formula.
(g) EFFECTIVE DATE.—Subsections (d), (e), and (f ) shall take
effect upon the date of the enactment of this Act.
SEC. 520. TOTAL DEVELOPMENT COSTS.
(a) DEFINITION.—Section 3(c)(1) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(c)(1)) is amended by inserting before
the period at the end of the second sentence the following: ‘, but
does not include the costs associated with the demolition of or
remediation of environmental hazards associated with public hous-
ing units that will not be replaced on the project site, or other
extraordinary site costs as determined by the Secretary’’.
H. R. 4194—103
(b) DETERMINATION.—Section 6(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437d(b)) is amended by adding at the
end the following new paragraphs:
‘‘(3) In calculating the total development cost of a project under
paragraph (2), the Secretary shall consider only capital assistance
provided by the Secretary to a public housing agency that are
authorized for use in connection with the development of public
housing, and shall exclude all other amounts, including amounts
provided under—
‘‘(A) the HOME investment partnerships program author-
ized under title II of the Cranston-Gonzalez National Affordable
Housing Act; or
‘‘(B) the community development block grants program
under title I of the Housing and Community Development
Act of 1974.
‘‘(4) The Secretary may restrict the amount of capital funds
that a public housing agency may use to pay for housing construc-
tion costs. For purposes of this paragraph, housing construction
costs include the actual hard costs for the construction of units,
builders’ overhead and profit, utilities from the street, and finish
landscaping.’’.
SEC. 521. SANCTIONS FOR IMPROPER USE OF AMOUNTS.
Section 6( j) of the United States Housing Act of 1937 (42
U.S.C. 1437d( j)) is amended—
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new para-
graph:
‘‘(4) SANCTIONS FOR IMPROPER USE OF AMOUNTS.—
‘‘(A) IN GENERAL.—In addition to any other actions author-
ized under this Act, if the Secretary finds that a public housing
agency receiving assistance amounts under section 9 for public
housing has failed to comply substantially with any provision
of this Act relating to the public housing program, the Secretary
may—
‘‘(i) terminate assistance payments under this section
9 to the agency;
‘‘(ii) withhold from the agency amounts from the total
allocations for the agency pursuant to section 9;
‘‘(iii) reduce the amount of future assistance payments
under section 9 to the agency by an amount equal to
the amount of such payments that were not expended
in accordance with this Act;
‘‘(iv) limit the availability of assistance amounts pro-
vided to the agency under section 9 to programs, projects,
or activities not affected by such failure to comply;
‘‘(v) withhold from the agency amounts allocated for
the agency under section 8; or
‘‘(vi) order other corrective action with respect to the
agency.
‘‘(B) TERMINATION
OF
COMPLIANCE
ACTION.—If the Sec-
retary takes action under subparagraph (A) with respect to
a public housing agency, the Secretary shall—
‘‘(i) in the case of action under subparagraph (A)(i),
resume payments of assistance amounts under section 9
to the agency in the full amount of the total allocations
H. R. 4194—104
under section 9 for the agency at the time that the Sec-
retary first determines that the agency will comply with
the provisions of this Act relating to the public housing
program;
‘‘(ii) in the case of action under clause (ii) or (v) of
subparagraph (A), make withheld amounts available as
the Secretary considers appropriate to ensure that the
agency complies with the provisions of this Act relating
to such program;
‘‘(iii) in the case of action under subparagraph (A)(iv),
release such restrictions at the time that the Secretary
first determines that the agency will comply with the provi-
sions of this Act relating to such program; or
‘‘(iv) in the case of action under subparagraph (vi),
cease such action at the time that the Secretary first deter-
mines that the agency will comply with the provisions
of this Act relating to such program.’’.
SEC. 522. REPEAL OF MODERNIZATION FUND.
(a) IN GENERAL.—Section 14 of the United States Housing
Act of 1937 (42 U.S.C. 1437l) is hereby repealed.
(b) CONFORMING AMENDMENTS.—
(1) FUNDS
FOR
PUBLIC
HOUSING
DEVELOPMENT.—Section
5(c)(5) of the United States Housing Act of 1937 (42 U.S.C.
1437c(c)(5)) is amended by striking ‘‘for use under section 14
or’’ and inserting ‘‘for use under section 9 or’’.
(2) ALLOCATION OF ASSISTANCE.—Section 213(d)(1)(B)(ii) of
the Housing and Community Development Act of 1974 (42
U.S.C. 1439(d)(1)(B)(i)) is amended by striking ‘‘or 14’’.
(3) MOVING TO WORK DEMONSTRATION.—Section 204 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
1996 (as contained in section 101(e) of the Omnibus Consoli-
dated Rescissions and Appropriations Act of 1996; 42 U.S.C.
1437f) is amended by adding at the end the following new
subsection:
‘‘( j) CAPITAL AND OPERATING FUND ASSISTANCE.—With respect
to any public housing agency participating in the demonstration
under this section that receives assistance from the Capital or
Operating Fund under section 9 of the United States Housing
Act of 1937 (as amended by the Quality Housing and Work Respon-
sibility Act of 1998), for purposes of this section—
‘‘(1) any reference to assistance under section 9 of the
United States Housing Act of 1937 shall be considered to refer
also to assistance provided from the Operating Fund under
section 9(e) of such Act (as so amended); and
‘‘(2) any reference to assistance under section 14 of the
United States Housing Act of 1937 shall be considered to refer
also to assistance provided from the Capital Fund under section
9(d) of such Act (as so amended).’’.
(4) LEAD-BASED PAINT POISONING PREVENTION ACT.—Section
302 of the Lead-Based Paint Poisoning Prevention Act (42
U.S.C. 4822) is amended—
(A) in subsection (d)(1)—
(i) by striking ‘‘assisted under section 14’’ and
inserting ‘‘assisted with capital assistance provided
under section 9’’; and
H. R. 4194—105
(ii) by striking ‘‘assistance under section 14’’ and
inserting ‘‘capital assistance provided under section 9’’;
and
(B) in subsection (f ), by striking ‘‘for comprehensive
improvement assistance under section 14’’ and inserting
‘‘under the Capital Fund under section 9’’.
(5) HOME PROGRAM ASSISTANCE.—Section 212(d)(5) of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742(d)(5)) is amended by striking ‘‘section 14’’ and inserting
‘‘section 9(d)(1)’’.
(c) SAVINGS PROVISIONS.—
(1) IN GENERAL.—Section 14 of the United States Housing
Act of 1937 shall apply as provided in section 519(e) of this
Act.
(2) EXPANSION OF USE OF MODERNIZATION FUNDING.—Before
the implementation of formulas pursuant to sections 9(d)(2)
and 9(e)(2) of the United States Housing Act of 1937 (as amend-
ed by section 519(a) of this Act) an agency may utilize any
authority provided under or pursuant to section 14(q) of such
Act (including the authority under section 201(a) of the Depart-
ments of Veterans Affairs and Housing and Urban Develop-
ment, and Independent Agencies Appropriations Act, 1996 (Pub-
lic Law 104–134; 110 Stat. 1321–277)), as such provisions
(including such section 201(a)) may be amended thereafter,
including any amendment made by title II of this Act), notwith-
standing any other provision of law (including the repeal made
under this section, the expiration of the applicability of such
section 201, or any repeal of such section 201).
(3) EFFECTIVE DATE.—This subsection shall take effect on
the date of the enactment of this Act.
PART 2—ADMISSIONS AND OCCUPANCY
REQUIREMENTS
SEC. 523. FAMILY CHOICE OF RENTAL PAYMENT.
Paragraph (2) of section 3(a) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended to read as follows:
‘‘(2) RENTAL PAYMENTS FOR PUBLIC HOUSING FAMILIES.—
‘‘(A) AUTHORITY FOR FAMILY TO SELECT.—
‘‘(i) IN GENERAL.—A family residing in a public housing
dwelling shall pay as monthly rent for the unit the amount
determined under clause (i) or (ii) of subparagraph (B),
subject to the requirement under paragraph (3) (relating
to minimum rents). Each public housing agency shall pro-
vide for each family residing in a public housing dwelling
unit owned, assisted, or operated by the agency to elect
annually whether the rent paid by such family shall be
determined under clause (i) or (ii) of subparagraph (B).
A public housing agency may not at any time fail to provide
both such rent options for any public housing dwelling
unit owned, assisted, or operated by the agency.
‘‘(ii) AUTHORITY TO RETAIN FLAT AND CEILING RENTS.—
Notwithstanding clause (i) or any other provision of law,
any public housing agency that is administering flat rents
or ceiling rents pursuant to any authority referred to in
section 519(d) of the Quality Housing and Work Respon-
sibility Act of 1998 before the effective day of such Act
H. R. 4194—106
may continue to charge rent in accordance with such rent
provisions after such effective date, except that the agency
shall provide for families residing in public housing dwell-
ing units owned or operated by the agency to elect annually
whether to pay rent under such provisions or in accordance
with one of the rent options referred to in subparagraph
(A).
‘‘(B) ALLOWABLE RENT STRUCTURES.—
‘‘(i) FLAT RENTS.—Except as otherwise provided under
this clause, each public housing agency shall establish,
for each dwelling unit in public housing owned or operated
by the agency, a flat rental amount for the dwelling unit,
which shall—
‘‘(I) be based on the rental value of the unit, as
determined by the public housing agency; and
‘‘(II) be designed in accordance with subparagraph
(D) so that the rent structures do not create a disincen-
tive for continued residency in public housing by fami-
lies who are attempting to become economically self-
sufficient through employment or who have attained
a level of self-sufficiency through their own efforts.
The rental amount for a dwelling unit shall be considered
to comply with the requirements of this clause if such
amount does not exceed the actual monthly costs to the
public housing agency attributable to providing and operat-
ing the dwelling unit. The preceding sentence may not
be construed to require establishment of rental amounts
equal to or based on operating costs or to prevent public
housing agencies from developing flat rents required under
this clause in any other manner that may comply with
this clause.
‘‘(ii) INCOME-BASED RENTS.—
‘‘(I) IN
GENERAL.—The monthly rental amount
determined under this clause for a family shall be
an amount, determined by the public housing agency,
that does not exceed the greatest of the amounts
(rounded to the nearest dollar) determined under sub-
paragraphs (A), (B), and (C) of paragraph (1). This
clause may not be construed to require a public housing
agency to charge a monthly rent in the maximum
amount permitted under this clause.
‘‘(II) DISCRETION.—Subject to the limitation on
monthly rental amount under subclause (I), a public
housing agency may, in its discretion, implement a
rent structure under this clause requiring that a por-
tion of the rent be deposited to an escrow or savings
account, imposing ceiling rents, or adopting income
exclusions (such as those set forth in section 3(b)(5)(B)),
or may establish another reasonable rent structure
or amount.
‘‘(C) SWITCHING RENT DETERMINATION METHODS BECAUSE
OF HARDSHIP CIRCUMSTANCES.—Notwithstanding subparagraph
(A), in the case of a family that has elected to pay rent in
the amount determined under subparagraph (B)(i), a public
housing agency shall immediately provide for the family to
pay rent in the amount determined under subparagraph (B)(ii)
during the period for which such election was made upon a
H. R. 4194—107
determination that the family is unable to pay the amount
determined under subparagraph (B)(i) because of financial
hardship, including—
‘‘(i) situations in which the income of the family has
decreased because of changed circumstances, loss of reduc-
tion of employment, death in the family, and reduction
in or loss of income or other assistance;
‘‘(ii) an increase, because of changed circumstances,
in the family’s expenses for medical costs, child care,
transportation, education, or similar items; and
‘‘(iii) such other situations as may be determined by
the agency.
‘‘(D) ENCOURAGEMENT
OF
SELF-SUFFICIENCY.—The rental
policy developed by each public housing agency shall encourage
and reward employment and economic self-sufficiency.
‘‘(E) INCOME REVIEWS.—Notwithstanding the second sen-
tence of paragraph (1), in the case of families that are paying
rent in the amount determined under subparagraph (B)(i), the
agency shall review the income of such family not less than
once every 3 years.’’.
SEC. 524. OCCUPANCY BY POLICE OFFICERS AND OVER-INCOME FAMI-
LIES.
(a) IN GENERAL.—Section 3(a) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(a), as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new paragraphs:
‘‘(4) OCCUPANCY BY POLICE OFFICERS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B) and
notwithstanding any other provision of law, a public hous-
ing agency may, in accordance with the public housing
agency plan for the agency, allow a police officer who
is not otherwise eligible for residence in public housing
to reside in a public housing dwelling unit. The number
and location of units occupied by police officers under this
paragraph and the terms and conditions of their tenancies
shall be determined by the public housing agency.
‘‘(B) INCREASED SECURITY.—A public housing agency
may take the actions authorized in subparagraph (A) only
for the purpose of increasing security for the residents
of a public housing project.
‘‘(C) DEFINITION.—In this paragraph, the term ‘police
officer’ means any person determined by a public housing
agency to be, during the period of residence of that person
in public housing, employed on a full-time basis as a duly
licensed professional police officer by a Federal, State, or
local government or by any agency thereof (including a
public housing agency having an accredited police force).
‘‘(5) OCCUPANCY BY OVER-INCOME FAMILIES IN CERTAIN PUB-
LIC HOUSING.—
‘‘(A) AUTHORITY.—Notwithstanding any other provision
of law, a public housing agency that owns or operates
less than 250 units may, on a month-to-month basis, lease
a dwelling unit in a public housing project to an over-
income family in accordance with this paragraph, but only
if there are no eligible families applying for housing assist-
ance from the public housing agency for that month and
H. R. 4194—108
the agency provides not less than 30-day public notice
of the availability of such assistance.
‘‘(B) TERMS AND CONDITIONS.—The number and loca-
tion of dwelling units of a public housing agency occupied
under this paragraph by over-income families, and the
terms and conditions of those tenancies, shall be deter-
mined by the public housing agency, except that—
‘‘(i) notwithstanding paragraph (2), rent for a unit
shall be in an amount that is not less than the costs
to operate the unit;
‘‘(ii) if an eligible family applies for residence after
an over-income family moves in to the last available
unit, the over-income family shall vacate the unit in
accordance with notice of termination of tenancy pro-
vided by the agency, which shall be provided not less
than 30 days before such termination; and
‘‘(iii) if a unit is vacant and there is no one on
the waiting list, the public housing agency may allow
an over-income family to gain immediate occupancy
in the unit, while simultaneously providing reasonable
public notice and outreach with regard to availability
of the unit.
‘‘(C) DEFINITION.—For purposes of this paragraph, the
term ‘over-income family’ means an individual or family
that is not a low-income family at the time of initial occu-
pancy.’’.
(b) APPLICABILITY.—The amendment made by this paragraph
is made on, and shall apply beginning upon, the date of the enact-
ment of this Act.
SEC. 525. SITE-BASED WAITING LISTS.
Section 6 of the United States Housing Act of 1937 (42 U.S.C.
1437d) is amended by adding at the end the following new sub-
section:
‘‘(s) SITE-BASED WAITING LISTS.—
‘‘(1) AUTHORITY.—A public housing agency may establish
procedures for maintaining waiting lists for admissions to public
housing projects of the agency, which may include (notwith-
standing any other law, regulation, handbook, or notice to
the contrary) a system of site-based waiting lists under which
applicants may apply directly at or otherwise designate the
project or projects in which they seek to reside. All such proce-
dures shall comply with all provisions of title VI of the Civil
Rights Act of 1964, the Fair Housing Act, and other applicable
civil rights laws.
‘‘(2) NOTICE.—Any system described in paragraph (1) shall
provide for the full disclosure by the public housing agency
to each applicant of any option available to the applicant in
the selection of the project in which to reside.’’.
SEC. 526. PET OWNERSHIP.
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new section:
‘‘SEC. 31. PET OWNERSHIP IN PUBLIC HOUSING.
‘‘(a) OWNERSHIP CONDITIONS.—A resident of a dwelling unit
in public housing (as such term is defined in subsection (c)) may