I
103D CONGRESS
2D SESSION
H. R. 4304
To amend the United States Housing Act of 1937 to reform the public
housing program.
IN THE HOUSE OF REPRESENTATIVES
APRIL 28, 1994
Mr. PETERSON of Minnesota introduced the following bill; which was referred
to the Committee on Banking, Finance and Urban Affairs
A BILL
To amend the United States Housing Act of 1937 to reform
the public housing program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Public Housing Im-
provement Act of 1994’’.
SEC. 2. REPEAL OF 1-FOR-1 REPLACEMENT REQUIREMENT.
(a) IN GENERAL.—Section 18 of the United States
Housing Act of 1937 (42 U.S.C. 1437p) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by inserting ‘‘and’’
after the semicolon at the end;
(B) in paragraph (2), by striking ‘‘; and’’
and inserting a period; and
(C) by striking paragraph (3); and
(2) in subsection (c)—
(A) by striking the paragraph designation
for paragraph (1); and
(B) by striking paragraph (2).
(b) EFFECTIVE DATE.—The amendments under sub-
section (a) shall be made and shall take effect on October
1, 1994.
SEC. 3. USE OF MODERNIZATION FUNDS FOR COST-EFFEC-
TIVE NEW CONSTRUCTION.
Section 14 of the United States Housing Act of 1937
(42 U.S.C. 1437l) is amended—
(1) in subsection (a)(1), by inserting before the
semicolon the following: ‘‘or replace existing public
housing projects whose physical condition is such
that replacement units may be newly constructed at
a cost not greater than the cost of improving such
units’’;
(2) in subsection (b)(1), by inserting after
‘‘public housing projects’’ the following: ‘‘(or replac-
ing such projects through new construction pursuant
to subsection (f)(3))’’;
(3) in subsection (d)—
(A) in paragraph (1)—
(i) by striking ‘‘and’’ before ‘‘(B)’’;
and
(ii) by inserting before the semicolon
at the end the following: ‘‘, and (C) for any
project for which replacement through new
construction is proposed under subsection
(f)(3), the estimated cost of the physical
improvements to and replacements for the
project under this paragraph and para-
graph (2) and the estimated cost of the
new construction’’; and
(B) in paragraph (4)(A)—
(i) in clause (i), by striking ‘‘and’’ at
the end; and
(ii) by adding at the end the following
new clause:
‘‘(iii) to replace any projects through
new construction pursuant to subsection
(f)(3); and’’;
(4) in subsection (e)(1)—
(A) in subparagraph (A)—
(i) in clause (ii), by striking ‘‘and’’ at
the end;
(ii) in clause (iii), by inserting ‘‘and’’
after the semicolon at the end; and
(iii) by inserting after clause (iii) the
following new clause:
‘‘(iv) for any project for which re-
placement through new construction is pro-
posed under subsection (f)(3), the esti-
mated cost of the physical improvements to
and replacements for the project under this
subparagraph and the estimated cost of
the new construction’’; and
(B) in subparagraph (D)—
(i) in clause (i), by striking ‘‘and’’ at
the end;
(ii) by redesignating clause (ii) as
clause (iii); and
(iii) by inserting after clause (i) the
following new clause:
‘‘(ii) to replace any projects through
new construction pursuant to subsection
(f)(3); and’’; and
(5) in subsection (f), by adding at the end the
following new paragraph:
‘‘(3) A public housing agency may use financial as-
sistance received under subsection (b) for development
costs of new public housing projects to replace a project
otherwise eligible for assistance under this section and for
costs of demolition or disposition of such projects replaced,
but only if—
‘‘(A) the sum of such development and demoli-
tion or disposition costs does not exceed the sum of
the costs of the physical improvements necessary to
the project replaced to meet the standards estab-
lished by the Secretary under subsection (j) and the
costs of replacement equipment systems and struc-
tural elements that will be required during the ensu-
ing 5-year period; and
‘‘(B) the public housing agency enters into an
agreement with the Secretary providing that the
public housing developed will comply with any re-
quirements pursuant to this Act applicable to public
housing developed under a contract under section 5
for contributions for development costs of public
housing.’’.
SEC. 4. MANDATORY PRIVATE MANAGEMENT OF CHRON-
ICALLY TROUBLED PUBLIC HOUSING AGEN-
CIES.
Section 6(j) of the United States Housing Act of
1937 (42 U.S.C. 1437d(j)) is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and
(2) by inserting after paragraph (3) the follow-
ing new paragraph:
‘‘(4)(A) Notwithstanding any other provision of law
or of any contract for contributions, the Secretary shall
transfer the management of public housing projects owned
or operated by a troubled public housing agency to a pri-
vate management entity selected by the Secretary if, for
any year—
‘‘(i) the public housing is designated pursuant
to paragraph (2) as a troubled public housing agen-
cy: and
‘‘(ii) for the preceding 5 years, the agency was
designated as a troubled public housing agency.
‘‘(B) In selecting a private management entity to
manage public housing pursuant to this paragraph, the
Secretary shall consult with residents of the public housing
(including any resident council for the housing).
‘‘(C) In transferring management of public housing
under this paragraph, the Secretary shall enter into a con-
tract with the private management entity. The contract
shall meet the requirements of section 25(h)(1), shall pro-
vide for the private management entity to periodically con-
sult with residents of the housing (including any resident
council for the housing) regarding management of and liv-
ing conditions in the housing, and may make operating
subsidies and funding for capital improvements available
to the private management entity managing the public
housing pursuant to this paragraph in the manner pro-
vided under section 25 for managers of eligible housing
(as such term is defined in such section).
‘‘(D) The provisions of section 25(j) relating to man-
agers of eligible housing under such section shall apply
with respect to any private management entity managing
public housing pursuant to this paragraph.
‘‘(E) The Secretary shall transfer management of
public housing that was transferred to a private manage-
ment agency under this paragraph back to the public
housing agency immediately upon the removal of the
designation of the agency as a troubled public housing
agency.’’.
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