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tracts which amend or supersede contracts previously made
(including contracts for contributions)) may provide that
upon the occurrence of a substantial default with respect
to the covenants or conditions to which the public housing
agency is subject (as such substantial default shall be de-
fined in such contract), the public housing agency shall be
obligated, at the option of the Secretary, to—
(1) convey title in any case where, in the deter-
mination of the Secretary (which determination shall
be final and conclusive), such conveyance of title is
necessary to achieve the purposes of this Act; or
(2) deliver to the Secretary possession of the de-
velopment, as then constituted, to which such contract
relates.
(b) OBLIGATION TO RECONVEY.—Any block grant con-
tract under title II containing the provisions authorized in
subsection (a) shall also provide that the Secretary shall
be obligated to reconvey or redeliver possession of the devel-
opment, as constituted at the time of reconveyance or rede-
livery, to such public housing agency or to its successor (if
such public housing agency or a successor exists) upon such
terms as shall be prescribed in such contract, and as soon
as practicable after—
(1) the Secretary is satisfied that all defaults
with respect to the development have been cured, and
267
that the development will, in order to fulfill the pur-
poses of this Act, thereafter be operated in accordance
with the terms of such contract; or
(2) the termination of the obligation to make an-
nual block grants to the agency, unless there are any
obligations or covenants of the agency to the Secretary
which are then in default.
Any prior conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right to re-
quire a conveyance or delivery of possession of the develop-
ment to the Secretary pursuant to subsection (a) upon the
subsequent occurrence of a substantial default.
(c) CONTINUED GRANTS FOR REPAYMENT OF BONDS
AND NOTES UNDER 1937 ACT.—If—
(1) a contract for block grants under title II for
an agency includes provisions that expressly state
that the provisions are included pursuant to this sub-
section, and
(2) the portion of the block grant payable for
debt service requirements pursuant to the contract has
been pledged by the public housing agency as security
for the payment of the principal and interest on any
of its obligations, then—
(A) the Secretary shall (notwithstanding
any other provisions of this Act), continue to
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make the block grant payments for the agency so
long as any of such obligations remain outstand-
ing; and
(B) the Secretary may covenant in such a
contract that in any event such block grant
amounts shall in each year be at least equal to
an amount which, together with such income or
other funds as are actually available from the de-
velopment for the purpose at the time such block
grant payments are made, will suffice for the
payment of all installments of principal and in-
terest on the obligations for which the amounts
provided for in the contract shall have been
pledged as security that fall due within the next
succeeding 12 months.
In no case shall such block grant amounts be in excess of
the maximum sum specified in the contract involved, nor
for longer than the remainder of the maximum period fixed
by the contract.
SEC. 545. REMOVAL OF INEFFECTIVE PHA’S.
(a) CONDITIONS OF REMOVAL.—The actions specified
in subsection (b) may be taken only upon—
(1) the occurrence of events or conditions that
constitute a substantial default by a public housing
agency with respect to (A) the covenants or conditions
269
to which the public housing agency is subject, or (B)
an agreement entered into under section 543; or
(2) submission to the Secretary of a petition by
the residents of the public housing owned or operated
by a public housing agency that is designated as trou-
bled pursuant to section 533(a).
(b) REMOVAL ACTIONS.—Notwithstanding any other
provision of law or of any block grant contract under title
II or any grant agreement under title III, in accordance
with subsection (a), the Secretary may—
(1) solicit competitive proposals from other pub-
lic 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 established by the
Secretary) and, if appropriate, provide for such
agents to manage all, or part, of the housing adminis-
tered by the public housing agency or all or part of
the other functions of the agency;
(2) take possession of the public housing agency,
including any developments or functions of the agency
under any section of this Act;
(3) solicit competitive proposals from other pub-
lic housing agencies and private entities with experi-
ence in construction management and, if appropriate,
270
provide for such authorities or firms to oversee imple-
mentation of assistance made available for capital
improvements for public housing;
(4) require the agency to make other arrange-
ments acceptable to the Secretary and in the best in-
terests of the public housing residents and assisted
families under title III for managing all, or part of,
the public housing administered by the agency or the
functions of the agency; or
(5) petition for the appointment of a receiver for
the public housing agency to any district court of the
United States or to any court of the State in which
any portion of the jurisdiction of the public housing
agency is located, that is authorized to appoint a re-
ceiver for the purposes and having the powers pre-
scribed in this section.
(c) EMERGENCY ASSISTANCE.—The Secretary may
make available to receivers and other entities selected or ap-
pointed pursuant to this section such assistance as is fair
and reasonable to remedy the substantial deterioration of
living conditions in individual public housing developments
or other related emergencies that endanger the health, safety
and welfare of public housing residents or assisted families
under title III.
271
(d) POWERS OF SECRETARY.—If the Secretary takes
possession of an agency, or any developments or functions
of an agency, pursuant to subsection (b)(2), the Secretary—
(1) may abrogate contracts that substantially
impede correction of the substantial default or im-
provement of the classification, but only after efforts
to renegotiate such contracts have failed and the Sec-
retary has made a written determination regarding
such abrogation, which shall be available to the public
upon request, identify such contracts, and explain the
determination that such contracts may be abrogated;
(2) may demolish and dispose of assets of the
agency in accordance with section 261;
(3) where determined appropriate by the Sec-
retary, may require the establishment of one or more
new public housing agencies;
(4) may consolidate the agency into other well-
managed public housing agencies with the consent of
such well-managed authorities;
(5) shall not be subject to any State or local laws
relating to civil service requirements, employee rights,
procurement, or financial or administrative controls
that, in the determination of the Secretary, substan-
tially impede correction of the substantial default or
improvement of the classification, but only if the Sec-
272
retary has made a written determination regarding
such inapplicability, which shall be available to the
public upon request, identify such inapplicable laws,
and explain the determination that such laws impede
such correction; and
(6) shall have such additional authority as a dis-
trict court of the United States has the authority to
confer under like circumstances upon a receiver to
achieve the purposes of the receivership.
The Secretary may appoint, on a competitive or non-
competitive basis, an individual or entity as an adminis-
trative receiver to assume the Secretary’s responsibility
under this paragraph for the administration of a public
housing agency. The Secretary may delegate to the adminis-
trative receiver any or all of the powers of the Secretary
under this subsection. Regardless of any delegation under
this subsection, an administrative receiver may not require
the establishment of one or more new public housing agen-
cies pursuant to paragraph (3) unless the Secretary first
approves such establishment. For purposes of this sub-
section, the term ‘‘public housing agency’’ includes any de-
velopments or functions of a public housing agency under
any section of this title.
(e) RECEIVERSHIP.—
289
(g) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 602. OTHER REPEALS.
(a) IN GENERAL.—The following provisions of law are
hereby repealed:
(1) ASSISTED
HOUSING
ALLOCATION.—Section
213 of the Housing and Community Development Act
of 1974 (42 U.S.C. 1439).
(2) PUBLIC HOUSING RENT WAIVERS FOR PO-
LICE.—Section 519 of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437a–1).
(3) TREATMENT OF CERTIFICATE AND VOUCHER
HOLDERS.—Subsection (c) of section 183 of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 1437f note).
(4) EXCESSIVE RENT BURDEN DATA.—Subsection
(b) of section 550 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437f note).
(5) MOVING TO OPPORTUNITY FOR FAIR HOUS-
ING.—Section 152 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).
(6) REPORT REGARDING FAIR HOUSING OBJEC-
TIVES.—Section 153 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note).