HR 1447 IH
units, as determined in accordance with guidelines of
the Secretary, for housing purposes, such as funding
resdient organizations and reserves for capital re-
placements.’’.
SEC. 106. PUBLIC HOUSING AGENCY PLAN.
The United States Housing Act of 1937 is amended
by inserting aftre section 5 of following new section:
SEC. 5A. PUBLIC HOUSING AGENCY PLAN.
‘‘(a) CONTENTS
OF PLAN.—(1) Each public
housing agency shall submit to the Secretary a pub-
lic housing agency plan that shall consiste of the fol-
lowing parts, as applicable—
‘‘(A) For assistance under section 14, a 5-year
comprehensive plan, as described in section 14(e)(1).
‘‘(B) For assistance under section 14, the an-
nual statement, as required under section 14(e)(3).
‘‘(C) An annual description of the public hous-
ing agency’s plans for the following activities—
‘‘(i) demolition and disposition under sec-
tion 18;
‘‘(ii) homeownership under section 5(h);
and
(III) designated housing under section 7.
HR 1447 IH
‘‘(D) An annual submission by the public hous-
ing agency consisting of the following informa-
tion——
‘‘(i) tenant selection admission and assign-
ment policies, including any admission pref-
erences;
‘‘(ii) rent policies, including income and
rent calculation methodology, minimum rents,
ceiling rents, and income exclusions, disregards,
or deductions;
‘‘(ii) any cooperation agreements between
the public housing agency and State welfare
and employment agencies to target services to
public housing residents (public housing agen-
cies shall use best efforts to enter into such
agreements); and
‘‘(iv) anti-crime and securities plans, in-
cluding a strategic plan for addressing crime on
or affecting the sites owned by the agency, a
statement of activities in furtherance of the
strategic plan to be carried out Drug Elimi-
nation Act of 1990, performance criteria re-
garding the effective use of such assistance, and
any plans for the provision of anti-crime assist-
ance to be provided by the local governed in ad-
HR 1447 IH
dition to the assistance otherwise required to be
provid3d by the agreement for local cooperation
under section 5(e)(2) or other applicable law.
Where a public housing agency has no changes to
report in any of the information required under this
subparagraph since the previous annual submission,
the public agency shall only state in its annual sub-
mission that it has made no changes.
‘‘(E) Other appropriate information that the
Secretary requires for each public housing agency
that is—
‘‘(i) at risk of being designated as troubled
under section 6(j); or
‘‘(ii) designated as troubled under section
6(j).
‘‘(F) Other information required by the Sec-
retary in connection with the provision of assistance
under section 9.
‘‘(G) An annul certification by the public hous-
ing agency that it has met the citizen participation
requirements under subsection (b).
‘‘(H) An annual certification by the public
housing agency that it will carry out the public
housing agency plan in conformity with title VI of
the Civil Rights Act of 1964, the Fair Housing Act,
HR 1447 IH
section 504 of the Rehabilitation Act of 1973, and
title II of the Americans with Disabilities Act of
1990, and will affirmatively further fair housing.
‘‘I) An annual certification by the public hous-
ing agency that the public housing agency plan is
consistent with the approved Consolidated Plan for
the locality.
(2) The Secretary may provide for more frequent sub-
missions where the public housing agency proposes to
amend any parts of the public housing agency plan.
‘‘(b) CITIZEN PARTICIPATION REQUIREMENTS.—In
developing the public housing agency plan under sub-
section (a), each public housing agency shall consult with
appropriate local government officials an with tenants of
the housing projects, which shall include at least one pub-
lic hearing that shall be held prior to the adoption of the
plan, and afford tenants and interested parties an oppor-
tunity to summarize their priorities and concerns, to en-
sure their due consideration in the planning process of the
public housing agency.
‘‘(c) PERFORMANCE REPORTS.—The Secretary shall
require the public housing agency to submit any informa-
tion that the Secretary determines is appropriate or nec-
essary to assess the management performance of public
housing agencies and resident management corporations
HR 1447 IH
under section 6(j) and to monitor assistance provided
under this Act. To the maximum extent feasible, the Sec-
retary shall require such information in one report, as part
of the annual submission of the agency under subsection
(a).
‘‘D) HUD REVIEW.—After submis-
sion of the public housing agency plan for
under subsection (a), the Secretary shall—
‘‘(1) with respect to the 5-year comprehensive
plan under subsection (a)(1)(A), review the plan
under the standards described in section 14(e)(2);
‘‘(2) with respect to the annual statement under
subsection (a)(1)(B), review the statement as re-
quired under section 14(e)(3);
‘‘(3) with respect to the annual description
under subsection (a)(1)(C), not review the descrip-
tion (the Secretary shall review any application,
which may be submitted with the public housing
agency plan, as provided in sections 18, 5(h), and
7);
+‘‘(4) with respect to the annual submission
under subsection (a)(1)(D), not review the submis-
sion unless the submission has been challenged;
where the submission has been challenged, the Sec-
retary shall review the submission to determine only
HR 1447 IH
whether the submission sets forth the information
required by subsection (a)(1)(D);
‘‘(5) with respect to information from troubled
agencies under subsection (a)(1)(E) and section 9
information under subsection (a)(1)(F), review such
information as necessary or appropriate to carry out
the Secretary’s responsibilities under section 6(j)
and section 9;
‘‘(6) with respect to the certifications under
subsections (a)(1)(G) and (a)(1)(I), not review the
certification unless the certification has been chal-
lenged; and, where the certifications has been chal-
lenged, the Secretary shall review the certification to
determine only whether the certification sets forth
the information required by subsection (a)(1)(G) or
(a)(1)(I), and whether there is any available evi-
dence that tends to challenge in a substantial man-
ner any certification made under those subsections;
and
‘‘(7) with respect to the certification under sub-
section (a)(1)(H), review the certification to deter-
mine only whether the certification sets forth the in-
formation required by such subsection, and whether
there is any available evidence that tends to chal-
HR 1447 IH
lenge in a substantial manner any certification made
under such subsection.
‘‘(e) WAIVER
AUTHORITY.—The Secretary may
waive, or specify alternative requirements for, any require-
ments under this section that the Secretary determines are
burdensome or unnecessary for public housing agencies
that only administer tenant-based assistance and do not
own or operate public housing.’’.
SEC. 107. PHMAP INDICATORS FOR SMALL PHAS.
Section 6(J)(1) of the United States Housing Act of
1937 is amended by—
(1) redesignating subparagraphs (A) through
(I) as clauses (i) through (ix);
(2) redesignating clauses (1), (2), and (3) in
clause (ix), as redesignated by paragraph (1), as
subclauses (I), (II), and (III), respectively;
(3) in the fourth sentence, inserting imme-
diately before clause (i), as redesignated, the follow-
ing new subparagraph:
‘‘(A) For public housing agencies that own
or operate 250 or more public housing dwelling
units—’’; and
(4) adding the following new subparagraph at the
end:
HR 1447 IH
‘‘(B) For public housing agencies that own
and operate fewer than 250 pubic housing
dwelling units—
‘‘(i) The number and percentage of
vacancies within an agency’s inventory, in-
cluding the progress that an agency has
made within the previous 3 years to reduce
such vacancies.
‘‘(ii) The percentage of rents uncol-
lected.
‘‘(iii) The ability of the agency to
produce and use accurate and timely
records of monthly income and expenses
and to maintain at lease a 3-month service.
‘‘(iv) The annual inspection of occu-
pied units and the agency’s ability to re-
spond to maintenance work orders.
‘‘(v) Any one additional factor that
the Secretary may determine to be appro-
priate.’’.
SEC. 108. PHAMP SELF-SUFFICIENCY INDICATOR.
Section 6(j)(1)(A) of the United States Housing Act
of 1937, as amended by section 107 of this Act, is amend-
ed at the end by adding the following new clause:
HR 1447 IH
6‘‘(x) The extent to which the agency coordi-
nates and promotes participation by families in
programs that assist them to achieve self-suffi-
ciency.’’.
SEC. 109. EXPANSION OF POWERS FOR DEALING WITH
PHAS IN SUBSTANTIAL DEFAULT.
(a) IN GENERAL.—Section 6(j)(3) of the United
States Housing Act of 1937 is amended—
(1) in subparagraph (A)—
(A) by amending clause (i) to read as fol-
lows:
‘‘(i) solicit competitive proposals from
other public housing agencies and private
housing management agents which, in the
discretion of the Secretary, may be selected
by 
existing 
public 
housing 
residents
through administrative procedures estab-
lished by the Secretary; if appropriate,
these proposals shall provide for such
agents to manage all, or part, of the hous-
ing administered by the public housing
agency or all or part of the other programs
of the agency;’’;
(B) by redesignating clause (iv) as clause
(v) and amending it to read as follows:
HR 1447 IH
‘‘(v) require the agency to make other
arrangements acceptable to the Secretary
and in the best interests of the public
housing residents and families assisted
under section 8 for managing all, or part,
of the public housing administered by the
agency or of the programs of the agency.’’’
and
(C) by inserting a new clause (iv) after
clause (iii) to read as follows:
‘‘(iv) take possession of all or part of
the public housing agency, including all or
part of any project or program of the
agency, including any project or program
under any other provision of this title;
and’’; and
(2) by striking subparagraphs (B) through (D)
and inserting in lieu thereof the following:
‘‘(B)(i) If a public housing agency is identified
as troubled under this subsection, the Secretary
shall notify the agency of the troubled status of
the agency.
‘‘(ii) Upon the expiration of the 1-year period
beginning on the later of the date on which the
agency receives notice from the Secretary of the
HR 1447 IH
troubled status of the agency under clause (i)
and the date of enactment of the Public Hous-
ing Management Reform Act of 1997, the Sec-
retary shall—
‘‘(I) in the case of a troubled public
housing agency with 1,250 or more units,
petition for the appointment of a receiver
pursuant to subparagraph (A)(ii); or
‘‘(II) in the case of a troubled public
housing agency with fewer than 1,250
units, either—
‘‘(aa) petition for the appointment of
a receiver pursuant to subparagraph
(A)(ii); or
‘‘(bb) appoint, on a competitive or
noncompetitive basis, an individual or en-
tity as an administrative receiver to as-
sume the responsibilities of the Secretary
for the administration of all or part of the
public housing agency (including all or
part of any project or program of the
agency), provided the Secretary has taken
possession of all or part of the public hous-
ing agency (including all or part of any
HR 1447 IH
project or program of the agency) pursu-
ant to subparagraph (A)(iv).
‘‘(C) If a receiver is appointed pursuant to sub-
paragraph (A)(ii), in addition to the powers ac-
corded by the court appointing the receiver, the
receiver—
‘‘(i) may abrogate any contract to
which the United States or an agency of
the United States is not a party that, in
the receiver’s written determination (which
shall include the basis for such determina-
tion), substantially impedes correction of
the substantial default, but only after the
receiver determines that reasonable efforts
to renegotiate such contract have failed;
‘‘(ii) may demolish and dispose of all
or part of the assets of the public housing
agency (including all or part of any project
of the agency) in accordance with section
18, including disposition by transfer of
properties to resident-supported nonprofit
entities;
‘‘(iii) if determined to be appropriate
by the Secretary, may seek the establish-
ment, as permitted by applicable State and
HR 1447 IH
local law, of one or more new public hous-
ing agencies;
‘‘(iv) if determined to be appropriate
by the Secretary, may seek consolidation of
all or part of the agency (including all or
part of any project or program of the
agency), as permitted by applicable State
and local laws, into other well-managed
public housing agencies with the consent of
such well-managed agencies; and
‘‘(v) shall not be required to comply
with any State or local law relating to civil
service requirements, employee rights (ex-
cept civil rights), procurement, or financial
or administrative controls that, in the re-
ceiver’s written determination (which shall
include the basis for such determination),
substantially impedes correction of the sub-
stantial default.
‘‘(D)(i) If the Secretary takes possession of all
or part of the public housing agency, including
all or part of any project or program of the
agency, pursuant to subparagraph (A)(iv), the
Secretary—
HR 1447 IH
‘‘(I) may abrogate any contract to
which the United States or an agency of
the United States is not a party that, in
the written determination of the Secretary
(which shall include the basis for such de-
termination), substantially impedes correc-
tion of the substantial default, but only
after the Secretary determines that reason-
able efforts to renegotiate such contract
have failed;
‘‘(II) may demolish and dispose of all
or part of the assets of the public housing
agency (including all or part of any project
of the agency) in accordance with section
18, including disposition by transfer of
properties to resident-supported nonprofit
entities;
‘‘(III) may seek the establishment, as
permitted by applicable State and local
law, of one or more new public housing
agencies;
‘‘(IV) may seek consolidation of all or
part of the agency (including all or part of
any project or program of the agency), as
permitted by applicable State and local
HR 1447 IH
laws, into other well-managed public hous-
ing agencies with the consent of such well-
managed agencies;
‘‘(V) shall not be required to comply
with any State or local law relating to civil
service requirements, employee rights (ex-
cept civil rights), procurement, or financial
or administrative controls that, in the Sec-
retary’s written determination (which shall
include the basis for such determination),
substantially impedes correction of the sub-
stantial default; and
‘‘(VI) shall, without any action by a
district court of the United States, have
such additional authority as a district
court of the United States would have the
authority to confer upon a receiver to
achieve the purposes of the receivership.
‘‘(ii) If the Secretary, pursuant to subpara-
graph (B)(ii)(II)(bb), appoints an administra-
tive receiver to assume the responsibilities of
the Secretary for the administration of all or
part of the public housing agency (including all
or part of any project or program of the agen-
cy), the Secretary may delegate to the adminis-
HR 1447 IH
trative receiver any or all of the powers given
the Secretary by this subparagraph, as the Sec-
retary determines to be appropriate.
‘‘(iii) Regardless of any delegation under this
subparagraph, an administrative receiver may
not seek the establishment of one or more new
public housing agencies pursuant to clause
(i)(III) or the consolidation of all or part of an
agency into other well-managed agencies pursu-
ant to clause (i)(IV), unless the Secretary first
approves an application by the administrative
receiver to authorize such action.
‘‘(E) The Secretary may make available to re-
ceivers and other entities selected or appointed
pursuant to this paragraph such assistance as
the Secretary determines in the discretion of
the Secretary is necessary and available to rem-
edy the substantial deterioration of living condi-
tions in individual public housing developments
or other related emergencies that endanger the
health, safety, and welfare of public housing
residents or families assisted under section 8. A
decision made by the Secretary under this para-
graph is not subject to review in any court of
HR 1447 IH
the United States, or in any court of any State,
territory, or possession of the United States.
‘‘(F) In any proceeding under subparagraph
(A)(ii), upon a determination that a substantial
default has occurred, and without regard to the
availability of alternative remedies, the court
shall appoint a receiver to conduct the affairs of
all or part of the public housing agency in a
manner consistent with this Act and in accord-
ance with such further terms and conditions as
the court may provide. The receiver appointed
may be another public housing agency, a pri-
vate management corporation, or any other per-
son or appropriate entity. The court shall have
power to grant appropriate temporary or pre-
liminary relief pending final disposition of the
petition by the Secretary.
‘‘(G) The appointment of a receiver pursuant to
this paragraph may be terminated, upon the pe-
tition of any party, when the court determines
that all defaults have been cured or the public
housing agency is capable again of discharging
its duties.
‘‘(H) If the Secretary (or an administrative re-
ceiver appointed by the Secretary) takes posses-
HR 1447 IH
SEC. 110. PUBLIC HOUSING SITE-BASED WAITING LISTS.
Section 6 of the United States Housing Act of
1937, as amended by section 306(a)(2) of this Act,
is amended by inserting the following new subsection
at the end:
‘‘(q) A public housing agency may establish, in
accordance with guidelines established by the
Secretary, procedures for maintaining waiting
lists for admissions to public housing develop-
ments of the agency, which may include a sys-
tem whereby applicants may apply directly at or
otherwise designate the development or develop-
ments in which they seek to reside. All such
procedures must comply with all provisions of
title VI of the Civil Rights Act of 1964, the
Fair Housing Act, and other applicable civil
rights laws.’’.
SEC. 111. COMMUNITY SERVICE REQUIREMENTS FOR THE
PUBLIC 
HOUSING 
AND 
SECTION 
PRO-
GRAMS.
Section 12 of the United States Housing Act of
1937 is amended by adding at the end the following new
subsection:
‘‘(c) COMMUNITY SERVICE REQUIREMENTS FOR THE
PUBLIC HOUSING AND SECTION1 8 PROGRAMS.—
HR 1447 IH
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, each adult member of each family
residing in public housing or assisted under section
8 shall, without compensation, participate, for not
less than 8 hours per month, in community service
activities (not to include any political activity) within
the community in which that adult resides.
‘‘(2) EXEMPTIONS.—The requirement in para-
graph (1) shall not apply to any adult who is—
‘‘(A) at least 62 years of age;
‘‘(B) a person with disabilities who is un-
able, as determined in accordance with guide-
lines established by the Secretary, to comply
with this subsection;
‘‘(C) working at least 20 hours per week,
a student, receiving vocational training, or oth-
erwise meeting work, training, or educational
requirements of a public assistance program
other than the program specified in subpara-
graph (E);
‘‘(D) a single parent, grandparent, or the
spouse of an otherwise exempt individual, who
is the primary caretaker of one or more—
(i) children who are 6 years of age of
younger;
HR 1447 IH
(ii) persons who are at least 62 years
of age; or
(iii) persons with disabilities; or
‘‘(E) in a family receiving assistance under
the Temporary Assistance for Needy Families
program under part A of title IV of the Social
Security Act.’’.
SEC. 112. COMPREHENSIVE IMPROVEMENT ASSISTANCE
PROGRAM STREAMLINING.
(a) Section 14(d) of the United States Housing Act
of 1937 is amended to read as follows:
‘‘(d) No assistance may be made available under sub-
section (b) to a public housing agency that owns or oper-
ates fewer than 250 public housing units unless the agency
has submitted a comprehensive plan in accordance with
subsection (e)(1) and the Secretary has approved it in ac-
cordance with subsection (e)(2). The assistance shall be
allocated to individual agencies on the agencies on the
basis of a formula established by the Secretary.’’.
(b) Section 14(f)(1) is repealed.
(c) Section 14(g) is amended by striking ‘‘(d)(3)’’ and
inserting ‘‘(d)’’.
(d) Section 14(h) is repealed.
(e) Section 14(i) is repealed.
HR 1447 IH
(f) Section 14(k)(1) is amended by striking
‘‘475,000,000’’ and inserting ‘‘$100,000,000’’.
SEC. 113. FLEXIBILITY FOR PHA FUNDING.
(a) Expansion of Uses of Funding.——Section
14(q)(1) of the United States Housing Act of 1937 is
amended——
(1) in the first sentence, by inserting after ‘‘sec-
tion 5,’’ the following, ‘‘by section 24,’’;
(2)in the first sentence, by inserting after ‘‘pub-
lic housing agency,’’, the following: ‘‘except for the
provision of tenant-based assistance,’’; and
(3) by inserting at the end the following: ‘‘Not-
withstanding the foregoing, (i) a public housing
agency that owns or operates fewer than 250 units
may use modernization assistance provided under
section 14, development assistance provided under
section 5(a), and operating subsidy provided under
section 9, for any eligible activity authorized by this
Act or by applicable appropriations Acts for a public
housing agency, except for assistance under section
8, and (ii) any agency determined to be a troubled
agency under section 6(j) may use amounts not ap-
propriated under section 9 for any operating subsidy
purpose authorized in section 9 only with the ap-
proval of the Secretary.’’.
HR 1447 IH
(b) 
MIXED-FINANCE
DEVELOPMENT.——Section
14(q)(2) of such Act is amended to read as follows:
‘‘(2) A public housing agency may use capital
or operating assistance provided under section 5, 14,
or 9 of this Act, or under applicable Appropriations
Acts for a public housing agency, to assist public
housing units in a development that is owned by the
public housing agency or other legal entity approved
by the Secretary and that may include units other
than public housing units (‘‘mixed-finance develop-
ment’’). The public housing units in a mixed-finance
development shall be developed, operated, and main-
tained as public housing in accordance with the re-
quirements of this Act during the period required by
law. The Secretary may waive regulatory and other
requirements established by the Secretary under this
Act governing the development, management, and
operation of public housing units to the extent nec-
essary to allow a public housing agency to undertake
or permit measures that enhance the viability of the
public housing units included in a mixed-finance de-
velopment. A public housing agency may, in accord-
ance with guidelines established by the Secretary,
provide capital assistance to a mixed-finance devel-
opment in the form of a grant, loan, or other form
HR 1447 IH
of investment in the project, which may involve the
drawdown of funds on a schedule commensurate
with construction draws for deposit into an interest
earning escrow account to serve as collateral or cred-
it enhancement for bonds issued by a public agency
for the construction or rehabilitation of the develop-
ment.’’.
(c) CONFORMING AMENDMENTS.——Section 14(q) of
such Act is amended——
(1) in paragraph (3), by striking ‘‘mixed in-
come’’ and inserting ‘‘mixed-finance’’: and
(2) in paragraph (4), by striking ‘‘mixed-income
project’’ and inserting ‘‘mixed-finance development‘‘.
(d) APPLICABILITY.——Section 14(q) of the United
States Housing Act of 1937, as amended by this section,
shall be effective with respect to any assistance provided
to the public housing agency under sections 5 and 14 of
the United States Housing Act of 1937 and applicable ap-
propriations Acts for a public housing agency.
SEC. 114. REPLACEMENT HOUSING RESOURCES.
(a) OPERATING FUND.——Section 9(a)(3)(B) of the
United States Housing Act of 1937 is amended——
(1) at the end of clause (iv), by striking ‘‘and
’’;
HR 1447 IH
(2) at the end of clause (v), by striking the pe-
riod and inserting’’; and ’’; and
(3) by inserting at the end the following:
‘‘(vi) where an existing unit under a
contract is demolished or disposed of, the
Secretary shall adjust the amount the pub-
lic housing agency receives under this sec-
tion; notwithstanding this requirement, the
Secretary shall provide assistance under
this section for any replacement housing
that is available for occupancy within five
years of the demolition or disposition, is
public housing developed under this Act or
is developed without assistance under this
Act but is operated as public housing, and
meets other requirements established by
the Secretary.’’.
(b) COMPREHENSIVE GRANT PROGRAM.——Section
14(k)(2)(D)(ii) of such Act is amended to read as follows:
‘‘(ii) When an existing unit under a contract is demol-
ished or disposed of, the Secretary shall adjust the amount
the agency receives under the formula. Notwithstanding
the preceding sentence, for the five-year period after dem-
olition or disposition, the Secretary may provide for no
adjustment, or a partial adjustment, of the amount the
HR 1447 IH
agency receives under the formula and shall require the
agency to use any additional amount received as a result
of this sentence for replacement housing or physical im-
provements necessary to preserve viable public housing.’’.
SEC. 115. REPEAL OR ONE-FOR-ONE REPLACEMENT HOUS-
ING REQUIREMENT.
Section 1002(d) of Public Law 104–19 is amended
by striking ‘‘and on or before September 30, 1997’’.
SEC. 116. DEMOLITION, SITE REVITALIZATION, REPLACE-
MENT HOUSING, AND TENANT-BASED ASSIST-
ANCE GRANTS FOR DEVELOPMENTS.
Section 24 of the United States Housing Act of 1937
is amended—
(1) by amending the heading to read as follows:
‘‘DEMOLITION, SITE REVITALIZATION,
REPLACEMENT HOUSING, AND TEN-
ANT-BASED ASSISTANCE GRANTS FOR
DEVELOPMENT’’;
(2) by amending subsections (a) and (c) to read
as follows:
‘‘(a) PURPOSE.—The purpose of this section is to
provide assistance to public housing agencies for the pur-
poses of—
‘‘(1) reducing the density and improving the liv-
ing environment for public housing residents of se-
HR 1447 IH
verely distressed public housing through the demoli-
tion of obsolete public housing developments (or por-
tions thereof);
‘‘(2) revitalizing sites (including remaining pub-
lic housing dwelling units) on which such public
housing developments are located and contributing
to the improvement of the surrounding neighbor-
hood;
‘‘(3) providing housing that will avoid or de-
crease the concentration of very low-income families;
and
‘‘(4) providing tenant-based assistance in ac-
cordance with the provisions of section 8 for the pur-
pose of providing replacement housing and assisting
residents to be displaced by the demolition.
‘‘(b) GRANT AUTHORITY.—The Secretary may make
grants available to public housing agencies as provided in
this section.
‘‘(c) CONTRIBUTION REQUIREMENT.—The Secretary
may not make any grant under this section to any appli-
cant unless the applicant supplements the amount of as-
sistance provided under this section (other than amounts
provided for demolition or tenant-based assistance) with
an amount of funds from sources other than this Act equal
to not less than 5 percent of the amount provided under
HR 1447 IH
this section, including amounts from other Federal
sources, any State or local government sources, any pri-
vate contributions, and the value of any in-kind services
or administrative costs provided.’’;
(3) by amending subsection (d)(1) to read as
follows:
‘‘(1) IN GENERAL.—The Secretary may make
grants under this subsection to applicants for the
purpose of carrying out demolition, revitalization,
and replacement programs for severely distressed
public housing under this section. The Secretary
may make a grant for the revitalization or replace-
ment of public housing only if the agency dem-
onstrates that the neighborhood is or will be a viable
residential community, as defined by the Secretary,
after completion of the work assisted under this sec-
tion and any other neighborhood improvements
planned by the State or local government or other-
wise to be provided. The Secretary may approve
grants providing assistance for one eligible activity
or a combination of eligible activities under this sec-
tion, including assistance only for demolition and as-
sistance only for tenant-based assistance in accord-
ance with the provisions of section 8.’’;
(4) in subsection (d)(2)(B)—
HR 1447 IH
(A) by striking ‘‘the redesign’’ and insert-
ing ‘‘the abatement of environmental hazards,
demolition, redesign’’; and
(B) by striking ‘‘is located’’ and inserting
‘‘is or was located’’;
(5) in subsection (d)(2), by redesignating sub-
paragraphs (C) through (I) as subparagraphs (D)
through (J), respectively, and inserting the following
new subparagraph after subparagraph (B):
‘‘(C) replacement housing, which shall con-
sist of public housing, homeownership units as
permitted under the HOPE VI program (as
previously authorized in appropriations Acts),
tenant-based assistance in accordance with the
provisions of section 8, or a combination;’’;
(6)(A) in subsection (G), as redesignated by
paragraph (5), by inserting before the semicolon the
following: ‘‘and any necessary supportive services,
except that not more than 15 percent of any grant
under this subsection may be used for such pur-
poses.’’;
(B) by inserting ‘‘and’’ at the end of subsection
(H), as redesignated by paragraph (4); and
HR 1447 IH
(C) by striking the semicolon at the end of sub-
section (I), as redesignated by paragraph (4), and
all that follows up to the period;
(7) in paragraph (3), by striking the second
sentence;
(8) by amending subsection (d)(4) to read as
follows:
‘‘(4) SELECTION CRITERIA.—
‘‘(A) APPLICATIONS
FOR
DEMOLITION.—
The Secretary shall establish selection criteria
for applications that request assistance only for
demolition, which shall include—
(i) the need for demolition, taking into
account the effect of the distressed devel-
opment on the public housing agency and
the community;
‘‘(ii) the extent to which the public
housing agency is not able to undertake
such activities without a grant under this
section; and
‘‘(iii) such other factors as the Sec-
retary determines appropriate.
‘‘(B) APPLICATIONS FOR DEMOLITION, RE-
VITALIZATION, AND REPLACEMENT.—The Sec-
retary shall establish selection criteria for appli-
HR 1447 IH
cations that request assistance for a combina-
tion of eligible activities, which shall include—
‘‘(i) the relationship of the grant to
the comprehensive plan for the locality;
‘‘(ii) the extent to which the grant will
result in a viable development which will
foster the economic and social integration
of public housing residents and the extent
to which the development will enhance the
community;
‘‘(iii) the capability and record of the
applicant public housing agency, its devel-
opment team, or any alternative manage-
ment agency for the agency, for managing
large-scale redevelopment or modernization
projects, meeting construction timetables,
and obligating amounts in a timely man-
ner;
‘‘(iv) the extent to which the public
housing agency is not able to undertake
such activities without a grant under this
section;
‘‘(v) the extent of involvement of resi-
dents, State and local governments, private
service providers, financing entities, and
HR 1447 IH
developers, in the development of a revital-
ization program for the development;
‘‘(vi) the amount of funds and other
resources to be leveraged by the grant; and
‘‘(vii) such other factors as the Sec-
retary determines appropriate.’’
‘‘(C) APPLICATIONS
FOR
TENANT-BASED
AS-
SISTANCE.—Notwithstanding any other provi-
sion of this subsection, the Secretary may allo-
cate tenant-based assistance under this section
on a non-competitive basis in connection with
the demolition or disposition of public hous-
ing.’’;
(9) by amending subsection (e) to read as fol-
lows:
‘‘(e) LONG
TERM
VIABILITY.—The
Secretary may waive or revise rules estab-
lished under this Act governing the devel-
opment, management, and operation of
public housing units, to permit a public
housing agency to undertake measures
that enhance the long-term viability of a
severely distressed public housing project
revitalized under this section.’’;
(10) in subsection (f)—
HR 1447 IH
(A) by striking ‘‘OTHER’’ and all that fol-
lows through ‘‘(1)’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A)
and (B) as paragraphs (1) and (2);
(11) by striking subsections (g) and (i) and re-
designating subsection (h) as subsection (j);
(12) by inserting the following new subsections
after subsection (f):
‘‘(g) ADMINISTRATION BY OTHER ENTITIES.—The
Secretary may require a grantee under this section to
make arrangements satisfactory to the Secretary for use
of an entity other than the public housing agency to carry
out activities assisted under the revitalization plan, if the
Secretary determines that such action will help to effec-
tuate the purposes of this section.
‘‘(h) TIMELY EXPENDITURES.—
‘‘(1) WITHDRAWAL OF FUNDING.—If a grantee
under this section or under the HOPE VI program
does not sign the primary construction contract for
the work included in the grant agreement within 18
months from the date of the grant agreement, the
Secretary shall withdraw any grant amounts under
the grant agreement which have not been obligated
by the grantee. The Secretary shall redistribute any
HR 1447 IH
withdrawn amounts to one or more applicants eligi-
ble for assistance under this section. The Secretary
may grant an extension of up to one additional year
from the date of enactment of this Act if the 18-
month period has expired as of the date of enact-
ment, for delays caused by factors beyond the con-
trol of the grantee.
‘‘(2) COMPLETION.—A grant agreement under
this section shall provide for interim checkpoints and
for completion of physical activities within four years
of execution, and the Secretary shall enforce these
requirements through default remedies up to and in-
cluding withdrawal of funding. The Secretary may,
however, provide for a longer timeframe, but only
when necessary due to factors beyond the control of
the grantee.
‘‘(3) INAPPLICABILITY.—This subsection shall
not apply to grants for tenant-based assistance
under section 8.
‘‘(i) INAPPLICABILITY OF SECTION 18.—Section 18
shall not apply to the demolition of development removed
from the inventory of the public housing agency under this
section.’’;
(13) by amending subsection (j)(1), as redesig-
nated by paragraph (11)—
HR 1447 IH
(A) in subparagraph (C), by inserting after
‘‘nonprofit organization,’’ the following: ‘‘pri-
vate program manager, a partner in a mixed-fi-
nance development,’’;
(B) at the end of subparagraph (B), after
the semicolon, by inserting ‘‘and’’; and
(C) at the end of subparagraph (C), by
striking ‘‘; and’’ and all that follows up to the
period;
(14) by amending subsection (j)(5), as redesig-
nated by paragraph (11)—
(A) in subparagraph (A)—
(i) by striking ‘‘(i)’’;
(ii) by striking clauses (ii) through
(iv); and
(iii) by inserting after ‘‘physical plant
of the project’’ of the following: ‘‘, where
such distress cannot be remedied through
assistance under section 14 because of in-
adequacy of available funding’’;
(B) by amending subparagraph (A), as
amended by subparagraph (A) of this para-
graph (14), by striking ‘‘appropriately’’ and in-
serting ‘‘inappropriately’’; and
HR 1447 IH
(C) by amending subparagraph (B) to read
as follows:
‘‘(B) that was a project as described in
subparagraph (A0 that has been demolished,
but for which the Secretary has not provided
replacement housing assistance (other than ten-
ant-based assistance).’’;
(15) by inserting at the end of subsection (j) as
redesignated by paragraph (11), the following new
paragraph:
‘‘(6) SUPPORTIVE SERVICES.—The term ‘sup-
portive services’ includes all activities that will pro-
mote upward mobility, self-sufficiency, and improved
quality of life for the residents of the public housing
development involved, including literacy training, job
training, day care, and economic development activi-
ties.’’; and
(16) by inserting the following new subsection
at the end:
‘‘(k) FUNDING.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for grants
under this section $524,000,000 for fiscal year 1998
and such sums as may be necessary for each of fis-
cal years 1999 through 2002.
HR 1447 IH
‘‘(2) TECHNICAL
ASSISTANCE
AND
PROGRAM
OVERSIGHT.—Of the amount appropriated pursuant
to paragraph (1) for any fiscal year, the Secretary
may use up to 2.5 percent for technical assistance,
program oversight, and fellowships for on-site public
housing agency assistance and supplemental edu-
cation. Technical assistance may be provided directly
or indirectly by grants, contracts, or cooperative
agreements, and may include training, and the cost
of necessary travel for participants in such training,
by or to officials of the Department of Housing and
urban Development, of public housing agencies, and
of residents. The Secretary may use amounts under
this paragraph for program oversight to contract
with private program and construction management
entities to assure that development activities are car-
ried out in a timely and cost-effective manner.’’.
SEC. 117. PERFORMANCE EVALUATION BOARD.
‘‘(a) ESTABLISHMENT.—There is hereby established
a performance evaluation board to assist the Secretary of
Housing and Urban Development in improving and mon-
itoring the systems for evaluation of public housing au-
thority performance, including by studying and making
recommendations to the Secretary on the most effective,
efficient and productive method or methods of evaluating
HR 1447 IH
the performance of public housing agencies, consistent
with the overall goal of improving management of the pub-
lic housing program.
‘‘(b)MEMBERSHIP.—
(1) IN GENERAL.—The broad shall be composed
of at least seven members with relevant experience
who shall be appointed by the Secretary as soon as
practicable, but not later than 90 days after enact-
ment of this Act.
(2) APPOINTMENTS.—In appointing members
of the board, the Secretary shall assure that each of
the background areas set forth in paragraph (3) are
represented.
(3) BACKGROUNDS.—Background areas to be
represented are—
(A) major public housing organizations;
(B) public housing resident organizations;
(C) real estate management, finance, or
development entities; and
(D) units of general local government.
(c) BOARD PROCEDURES.—
(1) CHAIRPERSON.—The Secretary shall ap-
point a chairperson from among members of the
board.
HR 1447 IH
(2) QUORUM.—A majority of the members of
the board shall constitute a quorum for the trans-
action of business.
(3) VOTING.—Each member of the board shall
be entitled to one vote, which shall be equal to the
vote of each other member of the board.
(4) PROHIBITION OF ADDITIONAL PAY.—Mem-
bers of the board shall serve without compensation,
but shall be reimbursed for travel, subsistence, and
other necessary expenses incurred in the perform-
ance of their duties as members of the board.
(d) POWERS.—
(1) HEARINGS.—The board may, for the pur-
pose of carrying out this section, hold such hearings
and sit and act at such times and places as the
board determines appropriate.
(2) ASSISTANCE FROM FEDERAL AGENCIES.—
(A) INFORMATION.—The board may re-
quest from any agency of the United States,
and such agency is authorized to provide, such
data and information as the board may require
for carrying out it functions.
(B) STAFF
SUPPORT.—Upon request of
the chairperson of the board, to assist the board
HR 1447 IH
in carrying out its duties under this section, the
Secretary may—
(i) provide an executive secretariat;
(ii) assign by detail or otherwise any
of the personnel of the Department of
Housing and Urban Development; and
(iii) obtain by personnel services con-
tracts or otherwise any technical or other
assistance needed to carry out this section.
(e) ADVISORY COMMITTEE.—THE BOARD SHALL BE
CONSIDERED
AN
ADVISORY
COMMITTEE
WITHIN
THE
MEANING OF THE FEDERAL ADVISORY COMMITTEE ACT
(5 U.S.C. APP.).
(f) FUNCTIONS.—THE BOARD SHALL, AS NEEDED—
(1) examine and assess the need for further
modifications to or replacement of the Public Hous-
ing Management Assessment program, established
by the Secretary under section 6(j) of the United
States Housing Act of 1937;
(2) examine and assess models used in other in-
dustries or public programs to assess the perform-
ance of recipients of assistance, including accredita-
tion systems, and the applicability of those models to
public housing;
HR 1447 IH
(3) develop (either itself, or through another
body) standards for professional competency for the
public housing industry, including methods of as-
sessing the qualifications of employees of public
housing authorities, such as systems for certifying
the qualifications of employees;
(4) develop a system for increasing the use of
on-site physical inspections of public housing devel-
opments; and
(5) develop a system for increasing the use of
independent audits, as part of the overall system for
evaluating the performance of public housing agen-
cies.
(g) REPORTS.—(1) Not later than the expiration of
the three-month period beginning upon the appointment
of the seventh member of the board, and one year from
such appointment, the board shall issue interim reports
to the Secretary on its activities. The board shall make
its final report and recommendations one year after its
second interim report is issued. The final report shall in-
clude findings and recommendations of the board based
upon the functions carried out under this section.
(2) After the board issues its final report, it may be
convened by its chair, upon the request of the Secretary,
HR 1447 IH
to review implementation of the performance evaluation
system and for other purposes.
(h) TERM.—The duration of the board shall be seven
years.
(i) FUNDING.—The Secretary is authorized to use
any amounts appropriated under the head Preserving Ex-
isting Housing Investment, or predecessor or successor ap-
propriation accounts, without regard to any earmarks of
funding, to carry out this section.
SEC. 118. ECONOMIC DEVELOPMENT AND SUPPORTIVE
SERVICES FOR PUBLIC HOUSING RESIDENTS.
The United States Housing Act of 1937 is amended
by adding the following new section after section 27:
‘‘SEC. 29. ECONOMIC DEVELOPMENT AND SUPPORTIVE
SERVICES FOR PUBLIC HOUSING RESIDENTS.
‘‘(a) IN GENERAL.—To the extent
provided in advance in appropriations Acts,
the Secretary shall make grants for the
purposes of providing a program of sup-
portive services and resident self-suffi-
ciency activities to enable residents of pub-
lic housing to become economically self-suf-
ficient and to assist elderly persons and
persons with disabilities to maintain inde-
HR 1447 IH
pendent living, to the following eligible ap-
plicants:
‘‘(1) public housing agencies;
‘‘(2) resident councils;
‘‘(3) resident management corporations or other
eligible resident entities defined by the Secretary;
‘‘(4) other applicants, as determined by the
Secretary; and
‘‘(5) any partnership of eligible applicants.
B‘‘(b) ELIGIBLE ACTIVITIES.—Grantees under this sec-
tion may use grants for the provision of supportive service,
economic development, and self-sufficiency activities con-
ducted primarily for public housing residents in a manner
that is easily accessible to those residents. Such activities
shall include—
‘‘(1) the provision of service coordinators and
case managers;
‘‘(2) the provision of services related to work
readiness, including education, job training and
counseling, job search skills, business development
training and planning, tutoring, mentoring, adult lit-
eracy, computer access, personal and family counsel-
ing, health screening, work readiness health services,
transportation, and child care;
HR 1447 IH
‘‘(3) economic and job development, including
employer linkages and job placement, and the start-
up of resident microenterprises, community credit
unions, and revolving loan funds, including the li-
censing, bonding and insurance needed to operate
such enterprises;
‘‘(4) resident management activities, including
related training and technical assistance; and
‘‘(5) other activities designed to improve the
self-sufficiency of residents, as may be determined in
the sole discretion of the Secretary.
‘‘(c) FUNDING DISTRIBUTION.—
‘‘‘‘(1) IN
GENERAL.—After reserving such
amounts as the Secretary determines to be necessary
for technical assistance and clearinghouse services
under subsection (d), the Secretary shall distribute
any remaining amounts made available under this
section on a competitive basis. The Secretary may
set a cap on the maximum grant amount permitted
under this section, and may limit applications for
grants under this section to selected applicants or
categories of applicants.
‘‘(2) SELECTION
CRITERIA.—The Secretary
shall establish selection criteria for applications that
HR 1447 IH
request assistance for one or more eligible activities
under this section, which shall include—
‘‘(A) the demonstrated capacity of the ap-
plicant to carry out a program of supportive
services or resident empowerment activities;
‘‘(B) the amount of funds and other re-
sources to be leveraged by the grant;
‘‘(C) the extent to which the grant will re-
sult in a quality program of supportive services
or resident empowerment activities;
‘‘(D) the extent to which any job training and
placement services to be provided are coordinated
with the provision of such services under the Job
Training Partnership Act and the Wagner-Peyser
Act; and
‘‘(E) such other factors as the Secretary
determines appropriate.
‘‘(3) MATCHING
REQUIREMENT.—The Sec-
retary may not make any grant under this section
to any applicant unless the applicant supplements
every dollar provided under this subsection with an
amount of funds from sources other than this sec-
tion equal to at least twice the amount provided
under this subsection, including amounts from other
Federal sources, any State or local government
HR 1447 IH
sources, any private contributions, an the value of
any in-kind services or administrative costs provided.
Of the supplemental funds furnished by the appli-
cant, not more than 50 percent may be in the form
of in-kind services or administrative costs provided.
Of the supplemental funds furnished by the appli-
cant, not more than 50 percent may be in the form
of in-kind services or administrative costs provided.
‘‘(d) FUNDING
FOR TECHNICAL ASSISTANCE.——
The Secretary may set aside a portion of the amounts ap-
propriated under this section, to be provided directly or
indirectly by grants, contracts, or cooperative agreements,
for technical assistance, which may include training and
cost of necessary travel for participants in such training,
by or to officials and employees of the Department and
of public housing agencies, and to residents and to other
eligible grantees, and for clearinghouse services in further-
ance of the goals and activities of this section.
‘‘(e) CONTRACT ADMINISTRATORS.——The Secretary
may require resident councils, resident management cor-
porations, or other eligible entities defined by the Sec-
retary to utilize public housing agencies or other qualified
organizations as contract administrators with respect to
grants provided under this section.’’.
HR 1447 IH
SEC. 119. PENALTY FOR SLOW EXPENDITURE OF MOD-
ERNIZATION FUNDS.
Section 14(k)(5) of the United Stated Housing Act
of 1937 is amended to read as follows:
‘‘(5)(A) A public housing agency shall obligate
any assistance received under this section within 18
months of the date funds become available to the
agency for obligation. The Secretary may extend this
time period by no more than one year if an agency’s
failure to obligate such assistance in a timely man-
ner is attributable to events beyond the control of
the agency. The Secretary may also provide an ex-
ception for deminimis amounts to be obligated with
the next year’s funding; an agency that owns or ad-
ministers fewer than 250 public housing units, to
the extent necessary to permit the agency to accu-
mulate sufficient funding to undertake activities;
and any agency, to the extent necessary to permit
the agency to accumulate sufficient funding to pro-
vide replacement housing.
‘‘(B) A public housing agency shall not be
awarded assistance under this section for any month
in a year in which it has funds unobligated, in viola-
tion of subparagraph (A). During such a year, the
Secretary shall withhold all assistance which would
otherwise be provided to the agency. If the agency
HR 1447 IH
cures its default during the year, it shall be provided
with the share attributable to the months remaining
in the year. Any funds not so provided to the agency
shall be provided to high-performing agencies as de-
termined under section 6(j).
‘‘(C) If the Secretary has consented, before the
date of enactment of the Public Housing Manage-
ment Reform Act of 1997, to an obligation period
for any agency longer than provided under this para-
graph, an agency which obligates its funds within
such extended period shall not be considered to be
in violation of subparagraph (A). Notwithstanding
any prior consent of the Secretary, however, all
funds appropriated in fiscal year 1995 and prior
years shall be fully obligated by the end of fiscal
year 1998, and all funds appropriated in fiscal years
1996 and 1997 shall be fully obligated by the end
of fiscal year 1999.
‘‘(D) A public housing agency shall spend any
assistance received under this section within four
years (plus the period of any extension approved by
the Secretary under subparagraph (A)) of the date
funds become available to the agency for obligation.
The Secretary shall enforce this requirement
through default remedies up to and including with-
HR 1447 IH
drawal of the funding. Any obligation entered into
by an agency shall be subject to the right of the Sec-
retary to recapture the amounts for violation by the
agency of the requirements of this subparagraph.’’.
SEC. 120. DESIGNATION OF PHAS AS TROUBLED.
(a) Section 6(j)(10(A) of the United States Housing
Act of 1937, as amended by sections 107 and 108, is fur-
ther amended——
(1) in subparagraph (A), by inserting the fol-
lowing after clause (x):
‘‘(xi) Whether the agency is providing
acceptable basic housing conditions, as de-
termined by the Secretary.’’; and
(2) in subparagraph (B)——
(A) by redesignating clause (v) as clause
(vi); and
(B) by inserting the following after clause
(iv):
‘‘(v) Whether the agency is providing
acceptable basic housing conditions, as de-
termined by the Secretary.’’.
(b) Section 6(j)(2)(A)(i) of such Act is amended by
inserting the following after the first sentence: ‘‘Such pro-
cedures shall provide that an agency that does not provide
HR 1447 IH
acceptable basic housing conditions shall be designated a
troubled public housing agency.’’.
(c) Section 6(j)(2)(A)(i) of such Act is amended in
the first sentence——
(1) by inserting before ‘‘the performance indica-
tors’’ the subclause designation ‘‘(I)’’; and
(2) by inserting before the period the follow-
ing:’’; or (II) such other evaluation system as is de-
termined by the Secretary to assess the condition of
the public housing agency or resident management
corporation, which system may be in addition to or
in lieu of the performance indicators established
under paragraph (1)’’.
SEC. 121. VOLUNTEER SERVICES UNDER THE 1937 ACT.
(a) IN GENERAL.——Section 12(b) of the United
States Housing Act of 1937 is amended by striking
‘‘that——’’ and all that follows up to the period and in-
serting ‘‘who performs volunteer services in accordance
with the requirements of the Community Improvement
Volunteer Act of 1994’’.
(b) CIVA AMENDMENT.——Section 7305 of the
Community Improvement Volunteer Act of 1994 is
amended——
(1) in paragraph (5), by striking ‘‘and’’ after
the semicolon;
HR 1447 IH
(2) in paragraph (6), by striking the period and
inserting’’; and ’’; and
(3) by inserting the following paragraph after
paragraph (6):
‘‘(7) the United States Housing Act of 1937.’’.
SEC. 122. AUTHORIZATION OF APPROPRIATIONS FOR OP-
ERATION SAFE HOME PROGRAM.
There are authorized to be appropriated to carry out
the Operation Safe Home program $20,000,000 for fiscal
year 1998 and such sums as may be necessary for fiscal
years 1999, 2000, 2001, and 2002.
TITLE II—SECTION 8 STREAM-
LINING 
AND 
OTHER 
PRO-
GRAM IMPROVEMENTS
SEC. 
201. 
PERMANENT 
REPEAL 
OF 
FEDERAL 
PREF-
ERENCES.
(a) Notwithstanding section 402(f) of The Balanced
Budget Downpayment Act, I, the amendments made by
section 402(d) of that Act shall remain in effect after fis-
cal year 1997, except that the amendments made by sec-
tions 402(d)(3) and 402(d)(6)(A)(iii), (iv), and (vi) of
such Act shall remain in effect as amended by sections
203 and 116 of this Act, and section 402(d)(6)(v) shall
be repealed by the amendments made to section 16 of the
HR 1447 IH
United States Housing Act of 1937 by section 202 of this
Act.
(b) Section 6(c)(4)(A) of the United States Housing
Act of 1937, as amended by section 402(d)(1) of The Bal-
anced Budget Downpayment Act, I, is amended by strik-
ing ‘‘is’’ and all that follows through ‘‘Act’’ and inserting
the following: ‘‘shall be based upon local housing needs
and priorities, as determined by the public housing agency
using general accepted data sources, including any infor-
mation obtained pursuant to an opportunity for public
comment under this subparagraph, under section 5A(b),
and under the requirements of the approved Consolidated
Plan for the locality’’.
(c) Section 8(d)(1)(A) of the United States Housing
Act of 1937, as amended by section 402(d)(2) of The Bal-
anced Budget Downpayment Act, I, is amended by strik-
ing ‘‘is’’ and all that follows through ‘‘Act’’ and inserting
the following: ‘‘shall be based upon local housing needs
and priorities, as determined by the public housing agency
using generally accepted data sources, including any infor-
mation obtained pursuant to an opportunity for public
comment under this subparagraph, under section 5A(b),
and under the requirements of the approved Consolidated
Plan for the locality’’.
HR 1447 IH
SEC. 202. INCOME TARGETING FOR PUBLIC PUBLIC HOUS-
ING AND SECTION 8 PROGRAMS.
(a) Section 16 of the United States Housing Act of
1937 is amended by revising the heading and subsections
(a) through (c) to read as follows:
‘‘SEC. 16. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUS-
ING.
‘‘(a) PUBLIC HOUSING.—
‘‘(1) PROGRAM REQUIREMENT.—Of the public
housing units of a public housing agency made avail-
able for occupancy by eligible families in any fiscal
year of the agency—
‘‘(A) at least 40 percent shall be occupied
by families whose incomes do not exceed 30
percent of the median income for the area; and
‘‘(B) at least 90 percent shall be occupied
by families whose incomes do not exceed 60
percent of the median income for the area.
‘‘(2) DEVELOPMENT REQUIREMENT.—At least
40 percent of the units in each public housing devel-
opment shall be occupied by families with incomes
which are less than 30 percent of the median income
for the area, except that no family may be required
to move to achieve compliance with this requirement.
‘‘(b) SECTION 8 ASSISTANCE.—
HR 1447 IH
‘‘(1) TENANT-BASED, MODERATE REHABILITA-
TION, AND
PROJECT-BASED
CERTIFICATE
ASSIST-
ANCE.—In any fiscal year of a public housing agen-
cy, at least 75 percent of all families who initially re-
ceive tenant-based assistance from the agency, as-
sistance under the moderate rehabilitation program
of the agency, or assistance under the project-based
certificate program of the agency shall be families
whose incomes do not exceed 30 percent of the me-
dian income for the area.
‘‘(2) PROJECT-BASED
ASSISTANCE.—Of the
dwelling units in a project receiving section 8 assist-
ance, other than assistance described in paragraph
(1), that are made available for occupancy by eligible
families in any year (as determined by the Sec-
retary)—
‘‘(A) at least 40 percent shall be occupied
by families whose incomes do not exceed 30
percent of the median income for the area; and
‘‘(B) at least 90 percent shall be occupied
by families whose incomes do not exceed 60
percent of the median income for the area.
‘‘(c) DEFINITION OF AREA MEDIAN INCOME.—The
term ‘area median income’, as used in subsections (a) and
(b), refers to the median income of an area, as determined
HR 1447 IH
by the Secretary, with adjustments for smaller and larger
families, except that the Secretary may establish income
ceilings higher or lower than the percentages specified in
subsections (a) and (b) if the Secretary determines that
such variations are necessary because of unusually high
or low family incomes.’’.
(b) Section 16 of the United States Housing Act of
1937, as amended by this section, is further amended by
inserting the following new heading after subsection des-
ignation (d): ‘‘APPLICABILITY.—’’.
SEC. 203. MERGER OR TENANT-BASED ASSISTANCE PRO-
GRAMS.
(a) Section 8(o) of the United States Housing Act
of 1937 is amended to read as follow:
‘‘(o) RENTAL CERTIFICATE.—(1) A public housing
agency may only enter into contracts for tenant-based
rental assistance under this Act pursuant to this sub-
section. The Secretary may provide rental assistance using
a payment standard in accordance with this subsection.
The payment standard shall be used to determine the
monthly assistance which may be paid for any family.
‘‘(2)(A) The payment standards may not exceed
the FMR/exception rent limit. The payment stand-
ards may not be less than 80 percent of the FMR/
exception rent limit.
HR 1447 IH
‘‘B) The term ‘FMR/exception rent limit’
means the section 8 existing housing fair market
rent published by HUD in accordance with sub-
section (c)(1) or any exception rent approved by
HUD for a designated part of the fair market rent
area. HUD may approve an exception rent of up to
120 percent of the published fair market rent.
‘‘(3)(A) For assistance under this subsection
provided by a public housing agency on and after
October 1, 1998, to the extent approved in appro-
priations Acts, the monthly assistance payment for
any family that moves to another unit in another
complex or moves to a single family dwelling shall be
the amount determined by subtracting the family
contribution as determined in accordance with sec-
tion 3(a) from the applicable payment standard, ex-
cept that such monthly assistance payment shall not
exceed the amount by which the rent for the dwell-
ing unit (including the amount allowed for utilities
in the case of a unit with separate utility metering)
exceeds 10 percent of the family’s monthly income.
(B) For any family not covered by subpara-
graph (A), the monthly assistance payment for the
family shall be determined by subtracting the family
contribution as determined in accordance with sec-
HR 1447 IH
tion 3(a) from the lower of the applicable payment
standard and the rent for the dwelling unit (includ-
ing the amount allowed for utilities in the case of
a unit with separate utility metering).
‘‘(4) Assistance payments may be made only
for:
‘‘(A) a family determined to be a very low-
income family at the time the family initially re-
ceives assistance, or
‘‘(B) another low-income family in cir-
cumstances determined by the Secretary.
‘‘(5) If a family vacates a dwelling unit before
the expiration of a lease term, no assistance pay-
ment may be made with respect to the unit after the
month during which the unit was vacated.
‘‘(6) The Secretary shall require that:
‘‘(A) the public housing agency shall in-
spect the unit before any assistance payment
may be made to determine that the unit meets
housing quality standards for decent, safe, and
sanitary housing established by the Secretary
for the purpose of this section, and
‘‘(B) the public housing agency shall make
annual or more frequent inspections during the
contract term. No assistance payment may be
HR 1447 IH
made for a dwelling unit which fails to meet
such quality standards.
‘‘(7) The rent for units assisted under this sub-
section shall be reasonable in comparison with rents
charged for comparable units in the private unas-
sisted market. A public housing agency shall review
all rents for units under consideration by families
assisted under this subsection (and all rent increases
for units under lease by families assisted under this
subsection) to determine whether the rent (or rent
increase) requested by an owner is reasonable. If a
public housing agency determines that the rent (or
rent increase) for a unit is not reasonable, the agen-
cy may not approve a lease for such unit.
‘‘(8) Except as provided in paragraph (2) of
this subsection, section 8(c) of this Act does not
apply to assistance under this subsection.’’.
(b) In Section 3(a)(1) of the United States Housing
Act of 1937, the second sentence is revised as follows:
(1) by striking ‘‘or paying rent under section
8(c)(3)(B)’’; and
(2) by striking ‘‘the highest of the following
amounts, rounded to the nearest dollars:’’ and in-
serting ‘‘and the family contribution for a family as-
sisted under section 8(o) or 8(y) shall be the highest
HR 1447 IH
(2) striking ‘‘a program of’’ and inserting ‘‘one
or more such programs totaling’’; and
(3) inserting before the final period, ‘‘of such
total units’’.
(b) The amendments made by this section shall be
effective as of October 1, 1997.
SEC. 205. SECTION 8 HOMEOWNERSHIP.
(a) AMENDMENTS TO SECTION 8(y).—Section 8(y) of
the United States Housing Act of 1937 is amended—
(1) in paragraph (1), by striking ‘‘A family re-
ceiving’’ through ‘‘if the family’’ and inserting the
following: ‘‘A public housing agency providing ten-
ant-based assistance on behalf of an eligible family
under this section may provide assistance for an eli-
gible family that purchases a dwelling unit (includ-
ing a unit under a lease-purchase agreement) that
will be owned by one or more members of the family,
and will be occupied by the family, if the family’’;
(2) in paragraph (1)(A), by inserting before the
semicolon the following: ‘‘, or owns or is acquiring
shares in a cooperative’’;
(3) in paragraph (1), by amending paragraph
(B) to read as follows:
‘‘(B)(i) in the case of disabled families and el-
derly families, demonstrates that the family has in-
HR 1447 IH
come from employment or other sources, as deter-
mined in accordance with requirements of the Sec-
retary, in such amount as may be established by the
Secretary; and
‘‘(ii) in the case of other families, demonstrates
that the family has income from employment, as de-
termined in accordance with requirements of the
Secretary, in such amount as may be established by
the Secretary;’’;
(4) in paragraph (1)(C), by striking ‘‘except
as’’ and inserting ‘‘except in the case of disabled
families and elderly families and as otherwise’’;
(5) in paragraph (1), by inserting at the end
the following: ‘‘The Secretary or the public housing
agency may target assistance under this subsection
for program purposes, such as to families assisted in
connection with the FHA multifamily demonstration
under section 212 of the Departments of Veterans
Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997.’’;
(6) by amending (2) to read as follows:
‘‘(2) DETERMINATION OF AMOUNT OF ASSIST-
ANCE.—The monthly assistance payment for any
family shall be the amount determined by subtract-
HR 1447 IH
ing the family contribution as determined under sec-
tion 3(a) of this Act from the lower of:
‘‘(A) the applicable payment standard, or
‘‘(B) the monthly homeownership expenses,
as determined in accordance with requirements
established by the Secretary, of the family.’’;
(7) by resdesignating paragraphs (6), (7), and
(8), as paragraphs (9), (10), and (11), respectively;
(8) by striking paragraphs (3), (4), and (5) and
inserting the following after paragraph (2):
‘‘(3) INSPECTIONS
AND
CONTRACT
CONDI-
TIONS.—Each contract for the purchase of a unit to
be assisted under this section shall provide for pre-
purchase inspection of the unit by an independent
professional and shall require that any cost of nec-
essary repairs shall be paid by the seller. The re-
quirement under section 8(o)(5)(B) for annual in-
spections of the unit shall not apply to units assisted
under this section.
‘‘(4) 
DOWNPAYMENT
REQUIREMENT.—Each
public housing agency providing assistance under
this subsection shall require that each assisted fam-
ily make a significant contribution, form its own re-
sources, determined in accordance with guidelines
established by the Secretary, to cover all or a portion
HR 1447 IH
of the downpayment required in connection within
the purchase, which may include credit for work by
one or more family members to improve the dwelling
(‘‘sweat equity’’).
‘‘(5) RESERVE FOR REPLACEMENTS.—The Sec-
retary shall require each family to pay an amount
equal to one percent of the monthly amount payable
by the family for principal and interest on its acqui-
sition loan into a reserve for repairs and replace-
ments for five years after the date of purchase. Any
amounts remaining in the reserve after five years
shall be paid to the family.
‘‘(6) APPLICATION
OF
NEW
PROCEEDS
UPON
SALE.—The Secretary shall require that the net pro-
ceeds upon sale by a family of a unit owned by the
family while it received assistance under this sub-
section shall be divided between the public housing
agency and the family. The Secretary shall establish
guidelines for determining the amount to be received
by the family and the amount to be received by the
agency, which shall take into account the relative
amount of assistance provided on behalf of the fam-
ily in comparison with the amount paid by the fam-
ily form its own resources. The secretary shall re-
quire the agency to use any amounts received under
HR 1447 IH
this paragraph to provide assistance under sub-
section (o) or this subsection.
‘‘(7) LIMITATION
ON
SIZE
OF
PROGRAM.—A
public housing agency may permit no more than 10
percent of the families receiving tenant-based assist-
ance provided by the agency to use the assistance
for homeownership under this subsection. The Sec-
retary may permit no more than 5 percent of all
families receiving tenant-based assistance to use the
assistance for homeownership under this subsection.
‘‘(8) OTHER
PROGRAM
REQUIREMENTS.—The
Secretary may establish such other requirements and
limitations the Secretary determines to be appro-
priate in connection with the provision of assistance
under this section, which may include limiting the
term of assistance for a family. The Secretary may
modify the requirements of this subsection where
necessary to make appropriate adaptations for lease-
purchase agreements. The Secretary shall establish
performance measures and procedures to monitor
the provision of assistance under this subsection in
relation to the purposes of providing homeownership
opportunities for eligible families.’’;
(9) paragraph (10)(A), as redesignated by para-
graph (7) of this section, is amended—
HR 1447 IH
(A) by striking ‘‘dwelling, (ii)’’ and insert-
ing ‘‘dwelling, and (ii)’’; and
(b) striking ‘‘, (iii)’’ and all that follows up to
the period; and
(10) by inserting after paragraph (11), as re-
designated by paragraph (7) of this section, the fol-
lowing:
‘‘(12) SUNSET.—The authority to provide as-
sistance to additional families under this subsection
shall terminate on September 30, 2022. The Sec-
retary shall then prepare a report evaluating the ef-
fectiveness of homeownership assistance under this
subsection.’’.
(b) FAMILY SELF-SUFFICIENCY ESCROW.—Section
23(d)(3) of the United States Housing Act of 1937 is re-
pealed.
SEC. 206. WELFARE TO WORK CERTIFICATES.
(a) To the extent of amounts approved in appropria-
tions Acts, the Secretary may provide funding for welfare
to work certificates in accordance with this section. ‘‘Cer-
tificates’’ means tenant-based rental assistance in accord-
ance with section 8(o) of the United States Housing Act
of 1937.
(b) Funding under this section shall be used for a
demonstration linking use of such certificate assistance
HR 1447 IH
with welfare reform initiatives to help families make the
transition from welfare to work, and for technical assist-
ance in connection with such demonstration.
(c) Funding may only be awarded upon joint applica-
tion by a public housing agency and a State or local wel-
fare agency. Allocation of demonstration funding is not
subject to section 213 of the Housing and Community De-
velopment Act of 1974.
(d) Assistance provided under this section shall not
be taken into account in determining the size of the family
self-sufficiency program of a public housing agency under
section 23 of the United States Housing Act of 1937.
(e) For purposes of the demonstration, the Secretary
may waive, or specify alternative requirements for, re-
quirements established by or under this Act concerning
the certificate program, including requirements concerning
the amount of assistance, the family contribution, and the
rent payable by the family.
SEC. 207. EFFECT OF FAILURE TO COMPLY WITH PUBLIC
ASSISTANCE REQUIREMENTS.
Section 3(a) of the United States Housing Act of
1937, as amended by section 102, is amended by inserting
the following after paragraph (3):
‘‘(4) If the welfare or public assistance benefits
of a covered family, as defined in subparagraph
HR 1447 IH
ration of tenancy in a public housing dwelling unit
or of tenant-based assistance.
‘‘(G) For purposes of this section—
‘‘(i) The term ‘covered family’ means a family
that—
‘‘(I) receives benefits for welfare or
public assistance from a State or other
public agency under a program for which
the Federal, State, or local law relating to
the program requires, as a condition of eli-
gibility for assistance under the program,
participation of a member of the family in
a self-sufficiency program or work activi-
ties; and
‘‘(II) resides in a public housing
dwelling unit or receives assistance under
section 8.
‘‘(ii) The term ‘self-sufficiency program’
means any program designed to encourage, as-
sist, train, or facilitate the economic independ-
ence of participants, including programs for job
training, employment counseling, work place-
ment, basic skills training, education, workfare,
money or household management, apprentice-
ship, or other activities.
HR 1447 IH
‘‘(iii) The term ‘work activities’ means—
‘‘(I) unsubsidized employment;
‘‘(II) subsidized private sector employ-
ment;
‘‘(III) subsidized public sector employ-
ment;
‘‘(IV) work experience (including work
associated with the refurbishing of publicly
assisted housing) if sufficient private sec-
tor employment is not available;
‘‘(V) on-the job training;
‘‘(VI) job search and job readiness as-
sistance;
‘‘(VII) community service programs;
‘‘(VIII) vocational education training
(not to exceed 12 months with respect to
any individual;
‘‘(IX) job skills training directly relat-
ed to employment;
‘‘(X) education directly related to em-
ployment, in the case of a recipient who
has not received a high school diploma or
certificate of high school equivalency;
‘‘(XI) satisfactory attendance at sec-
ondary school or in a course of study lead-
HR 1447 IH
ing to a certificate of general equivalence,
in the case of a recipient who has not com-
pleted secondary school or received such a
certificate; and
‘‘(XII) the provision of child care
services to an individual who is participat-
ing in a community service program.’’.
SEC. 208. STREAMLINING SECTION 8 TENANT-BASED AS-
SISTANCE.
(a) ‘‘TAKE-ONE, TAKE-ALL.’’—Section 8(t) of the
United States Housing Act of 1937 is hereby repealed.
(b) EXEMPTION FROM NOTICE REQUIREMENTS FOR
THE CERTIFICATE AND VOUCHER PROGRAMS.—Section
8(c) of such Act is amended—
(1) in paragraph (8), by inserting after ‘‘sec-
tion’’ the following: ‘‘(other than a contract for ten-
ant-based assistance)’’; and
(2) in the first sentence of paragraph (9), by
striking ‘‘(but not less than 90 days in the case of
housing certificates or vouchers under subsection (b)
or (o))’’ and inserting ‘‘, other than a contract for
tenant-based assistance under this section’’.
(c) ENDLESS LEASE.—Section 8(d)(1)(B) of such
Act is amended—
HR 1447 IH
(1) in clause (ii), by inserting ‘‘during the term
of the lease,’’ after ‘‘(ii)’’; and
(2) in clause (iii), by striking ‘‘provide that’’
and inserting ‘‘during the term of the lease,’’.
(d) REPEAL.—Section 203 of the Departments of
Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1996 is
hereby repealed.
SEC. 209. INCOME VERIFICATION.
(a) REINSTITUTION OF REQUIREMENTS REGARDING
HUD ACCESS
TO CERTAIN INFORMATION
OF STATE
AGENCIES.—
(1) IN GENERAL.—Subsection (i) of section 303
of the Social Security Act is amended by striking
paragraph (5).
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply to requests for infor-
mation made after the date of the enactment of this
Act.
(b) REPEAL OF TERMINATION REGARDING HOUSING
ASSISTANCE PROGRAMS.—Subparagraph (D) of section
6103(1)(7) of the Internal Revenue Code of 1986 is
amended by striking the last sentence.
HR 1447 IH
SEC. 210. NONDISCRIMINATION AGAINST CERTIFICATE
AND VOUCHER HOLDERS.
In the case of any multifamily rental housing that
is receiving, or (except for insurance referred to in para-
graph (4)) has received within two years before the effec-
tive date of this section, the benefit of Federal assistance
from an agency of the United States, the owner shall not
refuse to lease a reasonable number of units to families
under the tenant-based assistance program under section
8 of the United States Housing Act of 1937 because of
the status of the prospective tenants as families under that
program. The Secretary shall establish reasonable time pe-
riods for applying the requirement of this section, taking
into account the total amount of the assistance and the
relative share of the assistance compared to the total cost
of financing, developing, rehabilitating, or otherwise as-
sisting a project. Federal assistance for purposes of this
subsection shall mean—
(1) project-based assistance under the United
States Housing Act of 1937;
(2) assistance under title I of the Housing and
Community Development Act of 1974;
(3) assistance under title II of the Cranston-
Gonzalez National Affordable Housing Act;
(4) mortgage insurance under the National
Housing Act;
HR 1447 IH
(5) low-income housing tax credits under sec-
tion 42 of the Internal Revenue Code of 1986;
(6) assistance under title IV of the Stewart B.
McKinney Homeless Assistance Act; and
(7) assistance under any other programs des-
ignated by the Secretary of Housing and Urban De-
velopment.
SEC. 211. RECAPTURE AND REUSE OF ACC PROJECT RE-
SERVES UNDER THE TENANT-BASED ASSIST-
ANCE PROGRAM.
Section 8(d) of the United States Housing Act of
1937 is amended by inserting at the end the following new
paragraph:
‘‘(5) To the extent that the Secretary deter-
mines that the amount in the ACC reserve account
under a contract with a public housing agency for
tenant-based assistance under this section is in ex-
cess of the amount needed by the agency, the Sec-
retary shall recapture such excess amount. The Sec-
retary may hold recaptured amounts in reserve until
needed to amend or renew such contracts with any
agency.’’.
HR 1447 IH
SEC. 212. EXPANDING THE COVERAGE OF THE PUBLIC AND
ASSISTED HOUSING DRUG ELIMINATION ACT
OF 1990 TO INCLUDE OTHER TYPES OF CRIME
AND TO PROVIDE FORMULA FUNDING.
(a) The Public and Assisted Housing Drug Elimi-
nation Act of 1990 is amended—
(1) in section 5126(2)—
(A) in the heading, by inserting ‘‘AND
OTHER’’ after ‘‘RELATED’’;
(B) by striking ‘‘drug-related crime’’ and
inserting ‘‘drug-related and other crime’’; and
(C) by inserting before the period the fol-
lowing: ‘‘and, as determined by the Secretary,
other types of crime’’; and
(2) in sections 5122(2), 5122(4), 5123,
5124(a)(4)(A), 
5124(b), 
5125(a), 
5125(b)(1),
5125(c)(2), 5125(d), and 5128, by striking ‘‘drug-
related crime’’ and inserting ‘‘drug-related and other
crime’’.
(b) Section 5125 of such Act is amended—
(1) in the heading (and in the table of contents
in section 5001 of the Anti-Drug Abuse Act of 1988
accordingly), by inserting after ‘‘APPLICATIONS’’
the following: ‘‘AND FORMULA ALLOCATION’’;
(2) by striking ‘‘(a) IN GENERAL’’ and in-
serting ‘‘(a)(1) APPLICATIONS’’;
HR 1447 IH
(3) by redesignating subsections (b), (b)(1),
(b)(2), (b)(3), and (b)(4) as subsections (b)(2),
(a)(2)(A), (a)(2)(B), (a)(2)(C), and (a)(2)(D);
(4) by redesignating subsections (c), (c)(1), and
(c)(2) 
as 
subsections 
(a)(3), 
(a)(3)(A), 
and
(a)(3)(B);
(5) by redesignating subsection (d) as sub-
section (a)(4);
(6) in subsection (a)(1), as redesignated, by
striking ‘‘a public housing agency, a public housing
resident management corporation, or’’;
(7) in subsection (a)(2), as redesignated—
(A) by striking ‘‘subsections (c) and (d)’’
and inserting ‘‘paragraphs (3) and (4)’’; and
(B) in subparagraphs (A) and (B), by
striking ‘‘public or’’ the two places it appears;
(8) in subsection (a)(3), as redesignated, by
striking ‘‘subsection (b)’’ and inserting ‘‘paragraph
(2)’’;
(9) in subsection (a)(4), as redesignated, by
striking ‘‘subsection (b)’’ and inserting ‘‘paragraph
(2)’’; and
(10) by adding the following new subsection at
the end:
HR 1447 IH
‘‘(b) FORMULA ALLOCATION.—After setting aside
amounts as provided in section 5130, the Secretary shall
make grants to eligible recipients, except for owners of
federally assisted low-income housing, in accordance with
a formula established by the Secretary, which shall—
‘‘(1) take into account the needs of the eligible
recipient for anti-drug and anti-crime funding, and
the amount of funding that the eligible recipient has
received under this chapter during fiscal years 1995,
1996, and 1997; and
‘‘(2) not exclude an eligible recipient that has
not received funding during such fiscal years.
The Secretary may withhold, withdraw, or deny funds to
a grantee if the Secretary determines that the grantee has
not demonstrated satisfactory performance under a secu-
rity indicator established by the Secretary.’’.
(c) Section 5128 of such Act is amended by striking
‘‘section 5125(a)’’ and inserting ‘‘section 5125(a)(1), sec-
tion 5A(a)(1)(D)(iv) of the United States Housing Act of
1937, or section 102(c)(4)(J) of the Native American
Housing Assistance and Self-Determination Act of 1996’’.
(d) Section 5130 of such Act is amended—
(1) by amending the first sentence of subsection
(a) to read as follows:
HR 1447 IH
‘‘There are authorized to be appropriated to carry out
this chapter $290,000,000 for fiscal year 1998 and such
sums as may be necessary for fiscal years 1999, 2000,
2001, 2002.’’;
(2) in subsection (b)—
(A) by striking ‘‘SET-ASIDES’’ and insert-
ing ‘‘SET-ASIDE
FOR
FEDERALLY ASSISTED
LOW-INCOME HOUSING’’; and
(B) by striking the second sentence; and
(3) by amending subsection (c) to read as fol-
lows:
‘‘(c) SET-ASIDE FOR TECHNICAL ASSISTANCE.—Of
any amount made available in any fiscal year to carry out
this chapter, the Secretary shall set aside amounts, to be
provided directly or indirectly by grants, contracts, or co-
operative agreements, for training, technical assistance,
program assessment, execution, and other assistance for
or on behalf of public housing agencies, tribally, des-
ignated housing entities, resident organizations, and offi-
cials and employees of the Department (including training
and the cost of necessary travel for participants in such
training, by or to officials and employees of the Depart-
ment and of public housing agencies, and to residents and
other eligible grantees.’’.
HR 1447 IH
TITLE 
III—‘‘ONE 
STRIKE 
AND
YOU’RE 
OUT’’ 
OCCUPANCY
PROVISIONS
SEC. 301. SCREENING OF APPLICANTS.
(a) INELIGIBILITY BECAUSE OF PAST EVICTIONS.—
Any household or member of a household evicted from fed-
erally assisted housing (as defined in section 305(a)) by
reason of drug-related criminal activity (as defined in sec-
tion 305(c)) or for other serious violations of the terms
or conditions of he lease shall not be eligible for federally
assisted housing—
(1) in the case of eviction by reason of drug-re-
lated criminal activity, for a period of not less than
three years from the date of the eviction unless the
evicted member of the household successfully com-
pletes a rehabilitation program; and
(2) for other evictions, for a reasonable period
of time as determined by the public housing agency
or owner of the federally assisted housing, as appli-
cable.
The requirements of paragraphs (1) and (2) may be
waived if the circumstances leading to eviction no longer
exists.
(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND
ALCOHOL ABUSERS.—Notwithstanding any other provi-
HR 1447 IH
sion of law, a public housing agency or an owner of feder-
ally assisted housing, or both, as determined by the Sec-
retary, shall establish standards that prohibit admission
to the program or admission to federally assisted housing
for any household with a member—
(1) who the public housing agency or the owner
determines is engaging in the illegal use of a con-
trolled substance; or
(2) with respect to whom the public housing
agency or the owner determines that it has reason-
able cause to believe that such household member’s
illegal use (or pattern of illegal use) of a controlled
substance, or abuse (or pattern of abuse) of alcohol
would interfere with the health, safety, or right to
peaceful enjoyment of the premises by other resi-
dents.
(c) CONSIDERATION OF REHABILITATION.—In deter-
mining whether, pursuant to subsection (b)(2), to deny ad-
mission to the program or to federally assisted housing
to any household based on a pattern of illegal use of a
controlled substance or a pattern of abuse of alcohol by
a household member, a public housing agency or an owner
may consider whether such household member—
(1) has successfully completed an accredited
drug or alcohol rehabilitation program (as applica-
HR 1447 IH
ble) and is no longer engaging in the illegal use of
a controlled substance or abuse of alcohol (as appli-
cable);
(2) has otherwise been rehabilitated successfully
and is no longer engaging in the illegal use of a con-
trolled substance or abuse of alcohol (as applicable);
or
(3) is participating in an accredited drug or al-
cohol rehabilitation program (as applicable) and is
no longer engaging in the illegal use of a controlled
substance or abuse of alcohol (as applicable).
(d) AUTHORITY TO DENY ADMISSION TO THE PRO-
GRAM OR TO FEDERALLY ASSISTED HOUSING FOR CER-
TAIN CRIMINAL OFFENDERS.—In addition to the provi-
sions of subsections (a) and (b) and in addition to any
other authority to screen applicants, in selecting among
applicants for admission to the program or to federally
assisted housing, if the public housing agency or owner
of such housing, as applicable, determines that an appli-
cant or any member of the applicant’s household is or was,
during a reasonable time preceding the date when the ap-
plicant household would otherwise be selected for admis-
sion, engaged in any drug-related or violent criminal activ-
ity or other criminal activity which would adversely affect
the health, safety, or right to peaceful enjoyment of the
HR 1447 IH
premises by other residents, the owner or public housing
agency may—
(1) deny such applicant admission to the pro-
gram or to federally assisted housing; and
(2) after expiration of the reasonable period be-
ginning upon such activity, require the applicant, as
a condition of admission to the program or to feder-
ally assisted housing, to submit to the owner or pub-
lic housing agency housing, to submit to the owner
or public housing agency evidence sufficient (as the
Secretary shall by regulation provide) to ensure that
the individual or individuals in the applicant’s house-
hold who engaged in such criminal activity for which
denial was made under this subsection have not en-
gaged in any such criminal activity during such rea-
sonable time.
(e) AUTHORITY TO REQUIRE ACCESS TO CRIMINAL
RECORDS.—A public housing agency may require, as a
condition of providing admission to the public housing pro-
gram, that each adult member of the household provide
a signed, written authorization for the public housing pro-
vide a signed, written authorization for the public housing
agency to obtain records described in section 304 regard-
ing such member of the household from the National
100
HR 1447 IH
household is evicted from assisted housing for serious vio-
lation of the lease.
SEC. 303. LEASE REQUIREMENTS.
In addition to any other applicable lease require-
ments, each lease for a dwelling unit in federally assisted
housing shall provide that—
(1) the owner may not terminate the tenancy
except for serious or repeated violation of the terms
and conditions of the lease, violation of applicable
Federal, State, or local law, or other good cause;
and
(2) grounds for termination of tenancy shall in-
clude any activity, engaged in by the tenant, any
member of the tenant’s household, any quest, or any
other person under the control of any member of the
household, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other tenants or employees of the public hous-
ing agency, owner or other manager of the
housing,
(B) threatens the health or safety of, or
right to peaceful enjoyment of their residences
by, persons residing in the immediate vicinity of
the premises, or
101
HR 1447 IH
(C) is drug-related or violent criminal activity
on or off the premises.
SEC. 304. AVAILABILITY OF CRIMINAL RECORDS FOR PUB-
LIC HOUSING TENANT SCREENING AND EVIC-
TION.
(a) IN GENERAL.—
(1) PROVISION
OF
INFORMATION.—Notwith-
standing any other provision of law other than para-
graphs (2) and (3), upon the request of a public
housing agency, the National Crime Information
Center, a police department, and any other law en-
forcement agency shall provide to the public housing
agency information regarding the criminal conviction
records of an adult applicant for, or tenants of, the
public housing for purposes of applicant screening,
lease enforcement, and eviction, but only if the pub-
lic housing agency requests such information and
presents to such Center, department, or agency a
written authorization, signed by such applicant, for
the release of such information to such public hous-
ing agency.
(2) EXCEPTION.—A law enforcement agency
described in paragraph (1) shall provide information
under this paragraph relating to any criminal con-
viction of a juvenile only to the extent that the re-
102
HR 1447 IH
lease of such information is authorized under the
law of the applicable State, tribe, or locality.
(b) CONFIDENTIALITY.—A public housing agency re-
ceiving information under this section may use such infor-
mation only for the purposes provided in this section and
such information may not be disclosed to any person who
is not an officer, employee, or authorized representatives
of the public housing agency and who has a job-related
need to have access to the information in connection with
admission of applicants, eviction of tenants, or termination
of assistance. However, for judicial eviction proceedings,
disclosures may be made to the extent necessary. The Sec-
retary shall, by regulation, establish procedures necessary
to ensure that information provided under this section to
any public housing agency is used, and confidentiality of
such information is maintained, as required under this
section.
(c) OPPORTUNITY TO DISPUTE.—Before an adverse
action is taken with regard to assistance for public hous-
ing on the basis of a criminal record, the public housing
agency shall provide the tenant or applicant with a copy
of the criminal record and an opportunity to dispute the
accuracy and relevance of that record.
103
HR 1447 IH
(d) FEE.—A public housing agency may be charged
a reasonable fee for information provided under subsection
(a).
(e) RECORDS MANAGEMENT.—Each public housing
agency that receives criminal record information under
this section shall establish and implement a system of
records management that ensures that any criminal record
received by the agency is—
(1) maintained confidentially;
(2) not misused or improperly disseminated;
and
(3) destroyed in a timely fashion, once the pur-
pose for which the record was requested has been
accomplished.
(f) PENALTY.—Any person who knowingly and will-
fully requests or obtains any information concerning an
applicant for, or resident of, public housing pursuant to
the authority under this section under false pretenses, or
any person who knowingly or willfully discloses any such
information in any manner to any individual not entitled
under any law to receive it, shall be guilty of a mis-
demeanor and fined not more than $5,000. The term
‘‘person’’ as used in this subsection shall include an offi-
cer, employee, or authorized representative of any public
housing agency.
104
HR 1447 IH
(g) CIVIL ACTION.—Any applicant for, or resident of,
public housing affected by (1) a negligent or knowing dis-
closure of information referred to in this section about
such person by an officer or employee of any public hous-
ing agency, which disclosure is not authorized by this sec-
tion, or (2) any other negligent or knowing action that
is inconsistent with this section, may bring a civil action
for damages and such other relief as may be appropriate
against any public housing agency responsible for such un-
authorized action. The district court of the United States
in the district in which the affected applicant or resident
resides, in which such unauthorized action occurred, or in
which the officer or employee alleged to be responsible for
any such unauthorized action resides, shall have jurisdic-
tion in such matters. Appropriate relief that may be or-
dered by such district courts shall include reasonable at-
torney’s fees and other litigation costs.
(h) DEFINITION OF ADULT.—For purposes of this
section, the term ‘‘adult’’ means a person who is 18 years
of age or older, or who has been convicted of a crime as
an adult under any Federal, State, or tribal law.
SEC. 305. DEFINITIONS.
For purposes of this title, the following definitions
shall apply: