ceed 24 months, as the Secretary may author-
ize, relocate families lawfully residing in a unit 
on the property and provide such families notice 
and relocation assistance as required by the 
Secretary. A relocated family shall have, upon 
completion of the project and consistent with 
any guidelines issued by the Secretary, the 
right to return if the tenant has not committed 
serious or repeated violations of material terms 
of the lease or occupancy agreement at the time 
of departure from the housing subject to reha-
bilitation or demolition, or during the tem-
porary relocation period. 
‘‘(C) MOVING
EXPENSES.—When assist-
ance is transferred to another property pursu-
ant to this subsection without a period of tem-
porary relocation, the public housing agency or 
owner shall offer each family that chooses to re-
locate from the property from which assistance 
is transferred to the property to which assist-
ance is transferred payment of actual, reason-
able, and necessary moving expenses, including 
utility deposits, and, if the newly assisted units 
are not owned by the public housing agency or 
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owner, payment of security deposits, credit 
checks, and other moving-related expenses. 
‘‘(D) COSTS.—Displacement and relocation 
costs as required by law or as the Secretary 
may direct as authorized by this paragraph 
shall be paid from any rental assistance or 
other funds provided by the Secretary or other-
wise available to a public housing agency or 
owner that may be used for such purpose. A 
displaced family may receive an incremental, 
tenant-based voucher under this section, if such 
a voucher is made available. 
‘‘(10) AMOUNT OF MONTHLY ASSISTANCE PAY-
MENT TO OWNER.—The amount of the monthly as-
sistance payment with respect to any unit upon con-
version shall be the difference between the maximum 
monthly rent that the property-based or project- 
based voucher contract provides the owner is to re-
ceive for the unit plus the allowance for tenant-paid 
utilities and the rent that the family is required to 
pay under section 3 of this Act. 
‘‘(11) 
TENANTS
OVER-INCOME
FOR
CON-
TINUING SUBSIDY.—If the required contribution of a 
family toward rent under section 3 exceeds the rent 
established for the unit and the applicable utility al-
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lowance, the family may continue to reside in the 
unit and pay the established rent. The Secretary or 
the public housing agency shall not reduce the num-
ber of units assisted under the property-based or 
project-based voucher contract due to residency by 
such a family, and may use funds not required for 
assistance under the contract in any year for other 
authorized rental assistance. 
‘‘(12) DESIGNATED
HOUSING.—If the units 
proposed to be converted pursuant to this subsection 
are subject to an approved designation plan under 
section 7 (42 U.S.C. 1437e) or are designed to ac-
commodate tenants with special needs under any 
other authority, the Secretary shall permit the des-
ignation or accommodation to continue to apply to 
the converted units under the same terms and condi-
tions as would otherwise have applied, and may per-
mit additional designations consistent with Federal 
statute or executive order. 
‘‘(13) CONVERSION OF PUBLIC HOUSING.—In 
addition to such other conditions as the Secretary 
may require, the following conditions shall apply to 
a property assisted under section 9 that is con-
verting to rental assistance under this subsection: 
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‘‘(A) 
TREATMENT
OF
CONVERTED 
UNITS.—The conversion of units assisted under 
section 9 to assistance in accordance with this 
subsection shall not be considered a disposition 
under section 18 (42 U.S.C. 1437p). 
‘‘(B) REQUIREMENTS
FOR
PROPERTIES 
WITH HOUSING TAX CREDITS.—Public housing 
agencies that utilize tax credits under section 
42 of the Internal Revenue Code of 1986 for 
rental housing units converted under this sub-
section with respect to such units shall provide 
for— 
‘‘(i) an option for the public housing 
agency to purchase limited partnership in-
terests in a property containing such units 
after the tax compliance period under such 
section 42; 
‘‘(ii) a provision to give a public hous-
ing agency an active role in property man-
agement decisions of such housing; or 
‘‘(iii) such other provision or provi-
sions as the Secretary may establish to en-
sure the preservation of the interest of the 
public housing agency in the property. 
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‘‘(C) 
RESIDENT
MEMBERSHIP
ON 
BOARD.—A public housing agency that converts 
some or all of its units to assistance in accord-
ance with this subsection shall comply with the 
resident board membership requirement of sec-
tion 2(b) (42 U.S.C. 1437(b)), as applicable. 
‘‘(D) EXISTING
CONTRACTS.—The Sec-
retary shall require, following conversion of as-
sistance in accordance with this subsection, that 
the Secretary and the public housing agency 
shall continue to meet obligations associated 
with financing pursuant to section 30 (42 
U.S.C. 1437z–2), including financing obliga-
tions for which capital funds or operating funds 
provided under section 9 are pledged for repay-
ment, if such obligations are not refinanced or 
otherwise paid off, using assistance provided 
under the property-based or project-based 
voucher contract or otherwise, and shall comply 
with the terms and conditions of contracts asso-
ciated with such financings, energy performance 
contracts, and similar contracts, as specified by 
the Secretary, in effect before conversion of as-
sistance in accordance with this subsection. The 
Secretary may require the allocation of an equi-
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table percentage of repayment obligations to be 
repaid from assistance under the property-based 
or project-based voucher contracts or impose 
such other requirements as are necessary to en-
sure that the requirements of the preceding 
sentence are met, without imposing greater re-
strictions on the public housing agency than the 
agency would have had under the original fi-
nancing. 
‘‘(E) USE OF CAPITAL FUNDS.—Notwith-
standing any other provision of law, capital 
funds provided pursuant to section 9(d) (42 
U.S.C. 1437g(d)) may be used for assistance in 
the financing of necessary improvements or 
other capital expenses for any project or units 
assisted under section 9 and to be converted to 
assistance in accordance with this subsection, 
including making a capital contribution to such 
a project where needed to make the financing 
feasible, the purchase or provision of letters of 
credit or other credit enhancements necessary 
to carry out successful conversions, initial con-
tributions to any necessary reserves, and other 
financing expenses approved by the Secretary. 
The Secretary may waive or modify require-
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ments otherwise applicable to such capital 
funds as necessary to facilitate their use in con-
nection with conversions as authorized by this 
subsection. 
‘‘(F) TRANSITION RENTS FOR TENANTS IN 
CONVERTED
PUBLIC
HOUSING
PROPERTIES.— 
The Secretary shall require a public housing 
agency to implement such changes in rental 
payment requirements otherwise applicable to 
tenants at the time of conversion under this 
subsection as are necessary to prevent such ten-
ants from having rents increased solely as a re-
sult of the conversion by more than 10 percent 
per year. The Secretary may require or author-
ize a public housing agency to adopt a specific 
time after which such transitional provisions no 
longer will be effective. 
‘‘(14) TRANSFER AND USE OF FUNDS.— 
‘‘(A) 
TERMINATION
OF
ASSISTANCE 
UNDER PREVIOUS CONTRACT.—Following con-
version under this subsection, additional assist-
ance for a property shall not be provided under 
the previous contract, agreement, or authority. 
‘‘(B) 
UNEXPENDED
ASSISTANCE.—The 
Secretary shall take necessary actions to pro-
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vide that, as a condition of conversion of a 
property, the unexpended assistance, including 
capital funds, made available for such property 
under a previous contract, agreement, or au-
thority (up to and including the Federal fiscal 
year of conversion) shall be transferred to ac-
counts applicable to assistance provided under 
this subsection to pay all or a portion of— 
‘‘(i) the up-front costs of conversion; 
‘‘(ii) the initial contributions to any 
necessary reserves; 
‘‘(iii) the funding of the initial year or 
years of the new property-based or project- 
based voucher contract of assistance en-
tered into pursuant to this subsection; 
‘‘(iv) the financing of necessary ren-
ovations to, or other capital expenses for, 
the property, including the making of cap-
ital contributions and the provision of let-
ters of credit or other credit enhancements 
or financing expenses approved by the Sec-
retary; and 
‘‘(v) contract administration of con-
verted rental assistance properties under 
this subsection. 
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‘‘(C) TRANSFER OF FUNDS.—To the ex-
tent provided in advance in appropriations Acts, 
the Secretary may transfer funds between ac-
counts applicable to assistance provided under 
section 9 and accounts applicable to assistance 
provided under this subsection and subsections 
(n) and (o). 
‘‘(15) RELEASE OF PRIOR REQUIREMENTS.—A 
property assisted under a property-based or project- 
based voucher contract following conversion under 
this section shall not be subject to any terms, condi-
tions, and requirements of the previous assistance 
from which it was converted, except as provided for 
by this subsection and subsections (n) and (o), and 
by such terms, conditions, and requirements as es-
tablished for the new assistance by the Secretary. 
‘‘(16) CONVERSION
FROM
PROPERTY-BASED 
CONTRACT
TO
PROJECT-BASED
VOUCHER
CON-
TRACT.—A property under a property-based contract 
may convert to a project-based voucher contract at 
the request of the owner of the property and at the 
discretion of, and upon approval by, the Secretary if 
the property meets the applicable requirements 
under subsection (o)(13) and a public housing agen-
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cy eligible to administer the contract agrees to such 
administration. 
‘‘(17) NOTICE OF TERMINATION OF AFFORD-
ABILITY RESTRICTIONS.— 
‘‘(A) IN GENERAL.—An owner of a prop-
erty that has been converted to a property- 
based contract pursuant to this subsection 
shall, if the owner intends not to renew or ex-
tend the rental assistance contract at the prop-
erty, provide written notice of such intent at 
least 12 months in advance of the intended ter-
mination date. Notice shall be provided to the 
Secretary, the chief executive officer of the 
State and the unit of general local government 
(as such term is defined in section 4 of the 
Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12704)) in which the prop-
erty is located, and to each tenant of the prop-
erty at such time and in such form as may be 
prescribed by the Secretary through regulation. 
‘‘(B) FAILURE
TO
PROVIDE
NOTICE.—If 
an owner fails to provide notice as required in 
subparagraph (A), the owner may not evict the 
tenants or increase the tenants’ rent payments 
based upon the change in subsidy status of the 
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property until such time as the owner has pro-
vided the notice and the 12-month period begin-
ning upon the provision of such notice has 
elapsed. 
‘‘(18) 
PROPERTIES
IN
DEFAULT, 
FORE-
CLOSURE, OR BANKRUPTCY.— 
‘‘(A) PROPERTIES IN DEFAULT.— 
‘‘(i) MORTGAGE REQUIREMENT.—Any 
mortgage made on, or security interest 
otherwise granted in, any property with a 
rental assistance contract or agreement 
converted pursuant to this subsection shall 
include a provision for simultaneous notifi-
cation to the owner of the property and the 
Secretary of any default under the mort-
gage or other security agreement. 
‘‘(ii) CONVERSION
CONTRACT
RE-
QUIREMENT.—Any contract or agreement 
to convert assistance pursuant to this sub-
section shall include a provision requiring 
the owner to notify the Secretary of any 
default under a mortgage made on, or se-
curity interest otherwise granted in, any 
property with a rental assistance contract 
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or agreement converted pursuant to this 
subsection. 
‘‘(iii) AUTHORITY TO SUSPEND RENT-
AL ASSISTANCE.—After receiving notifica-
tion of a default as provided in clause (i), 
the Secretary may suspend all or a portion 
of any rental assistance payments funded 
by the Secretary under any contract on be-
half of the property in default and use 
amounts from such suspended payments to 
cure the default. Such suspension shall not 
be cause for eviction of any tenant assisted 
under this section. 
‘‘(iv) AUDIT.—The Secretary may 
conduct an audit of any property that has 
had rental assistance payments suspended 
under clause (i). The owner of such prop-
erty shall make available all records of the 
property to the Secretary, including books 
of account, bank statements, and contracts 
for purposes of the audit. 
‘‘(v) RESUMPTION OF RENTAL ASSIST-
ANCE.—Following cure of the default and 
subject to the results of any audit con-
ducted under clause (iv), the Secretary 
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may terminate, in whole or in part, the 
suspension of payments and resume pay-
ment in accordance with the contract. The 
Secretary may require the payee under the 
contract to take such corrective actions as 
the Secretary determines to be appropriate 
as a condition of resuming payments under 
the contract. 
‘‘(B) PROPERTIES
IN
FORECLOSURE
OR 
BANKRUPTCY.—Notwithstanding any provision 
of Federal or State law, in the event of a fore-
closure, or the bankruptcy of an owner, of a 
property converted under this subsection, such 
property shall remain subject to— 
‘‘(i) such rental assistance contract 
and any extensions or renewal agreements 
thereof; 
‘‘(ii) all leases between the prior 
owner and tenants assisted under such 
contract; and 
‘‘(iii) any use agreement related to 
such contract in effect immediately before 
the foreclosure or bankruptcy filing. 
Any and all successors in interest in such prop-
erty shall assume such contract, extensions or 
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renewal agreements, leases, and related use 
agreement obligations. In the case of a property 
converted from assistance under section 9, prior 
to the sale or other transfer of any ownership 
interest in such property pursuant to a fore-
closure or bankruptcy, the Secretary shall have 
a first option to purchase, and the Secretary 
shall exercise such option or may assign such 
option to a public entity purchaser that exer-
cises such option in accordance with imple-
menting regulations pursuant to this subpara-
graph and paragraph (19)(A)(iv). If the Sec-
retary determines the property is not physically 
viable, the Secretary may require the transfer 
of the contract for assistance, including month-
ly assistance payments, and use agreement to 
one or more other properties in accordance with 
the procedures and requirements of subsection 
(m)(F)(ii). 
‘‘(19) FEDERAL OPTION TO PURCHASE.— 
‘‘(A) IN GENERAL.— 
‘‘(i) OPPORTUNITY FOR PURCHASE BY 
SECRETARY.—Except as provided in clause 
(vi), an owner of a covered property, as de-
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fined in clause (v), shall not sell the cov-
ered property at any time before— 
‘‘(I) providing notice within the 
time periods and to the parties de-
scribed in paragraph (17) of the own-
er’s intent to sell the property; and 
‘‘(II) offering the Secretary the 
opportunity to purchase the property 
pursuant to clause (ii) of this sub-
paragraph. 
‘‘(ii) RIGHT OF SECRETARY TO MAKE 
OFFER.—Upon receipt of the notice re-
quired in clause (i)(I), the Secretary shall 
have the right either to purchase the prop-
erty subject to terms and conditions estab-
lished through regulation or to select an 
assignee to act on behalf of the Secretary 
as the purchaser before the owner enters 
into any agreement to sell to a third party. 
Failure by the Secretary or the Secretary’s 
assignee to submit an offer to purchase the 
property in compliance with the conditions 
specified in regulation shall constitute an 
irrevocable waiver of the Secretary’s right 
under this paragraph. 
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‘‘(iii) RELATIONSHIP
WITH
OTHER 
LAWS.—The requirements of this para-
graph are in addition to, and not in lieu of, 
any State or local law that has established 
a right of first refusal to preserve afford-
able housing. 
‘‘(iv) REGULATIONS.—The Secretary 
shall issue regulations to carry out this 
paragraph, which may— 
‘‘(I) define such terms as the 
Secretary determines necessary to fa-
cilitate the understanding of the 
rights and obligations of the owner of 
the property, the Secretary, the Sec-
retary’s assignee, or tenants; 
‘‘(II) address any agreement that 
may be appropriate between the Sec-
retary and the Secretary’s assignee; 
‘‘(III) provide for the timing of 
any offer made by the Secretary to 
purchase the owner’s property and the 
acceptance or refusal of the Sec-
retary’s purchase offer; and 
‘‘(IV) establish the conditions for 
sale of a property to the Secretary. 
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‘‘(v) COVERED
PROPERTIES.—Prop-
erties covered by this paragraph include 
properties with assistance converted pursu-
ant to this subsection after receiving as-
sistance under subsection (e)(2) or section 
9 of this Act, section 236(f)(2) of the Na-
tional Housing Act (12 U.S.C. 1715z– 
1(f)(2)), or section 101 of the Housing and 
Urban Development Act of 1965 (12 
U.S.C. 1701s). For other converted prop-
erties, the Secretary and owner may agree 
to be bound by this paragraph. 
‘‘(vi) 
INAPPLICABILITY
OF
SEC-
RETARY’S RIGHT TO PURCHASE.—Clauses 
(i) through (v) of this subparagraph shall 
not apply to any of the following actions: 
‘‘(I) A government taking of cov-
ered housing by eminent domain or a 
negotiated purchase in lieu of eminent 
domain. 
‘‘(II) A proposed transfer of as-
sistance from the property to another, 
subject to terms and conditions estab-
lished by the Secretary. 
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‘‘(B) PUBLIC
HOUSING.—For properties 
converted from assistance under section 9, the 
Secretary shall provide a priority, first, to a 
public entity, and next to a non-profit entity, 
including a tenant organization, in selecting an 
assignee under this paragraph. 
‘‘(C) OTHER
HOUSING.—For properties 
other than properties converted from assistance 
under section 9, clauses (i) through (v) of sub-
paragraph (A) shall not apply to a proposed 
sale pursuant to terms and conditions that pre-
serve affordability, as determined by the Sec-
retary. 
‘‘(20) FINANCING OF PROPERTIES WITH CON-
VERTED ASSISTANCE.—The Secretary shall establish 
policies and procedures governing the use of sound 
financing and underwriting standards for properties 
with assistance converted under this subsection, to 
ensure that such properties are financially sustain-
able for the term of the assistance contract. 
‘‘(21) RECOVERIES.—To the extent provided in 
advance in appropriations Acts, amounts obligated 
with respect to a property under a rental assistance 
program, for years beyond the fiscal year in which 
conversion of rental assistance under this subsection 
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takes place, shall be deobligated and collected by the 
Secretary. 
‘‘(22) RENTAL ASSISTANCE CONVERSION TRUST 
FUND.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Treasury of the United States a 
fund to be known as the ‘Rental Assistance 
Conversion Trust Fund’ (in this paragraph re-
ferred to as the ‘Fund’) for deposit of amounts, 
to be used for the costs of the resident choice 
option under subsection (m)(1), of conversions 
under this subsection, including the actions 
under paragraph (14)(B), and of the exercise of 
the Secretary’s first option to purchase under 
paragraphs (18)(B) and (19) of this subsection, 
from— 
‘‘(i) to the extent provided in advance 
in appropriations Acts, the collection of 
costs as authorized by this subsection, 
which shall not exceed $100,000 per prop-
erty (or such other higher limit as the Sec-
retary may establish after providing public 
notice and an opportunity to comment), as 
may be necessary for payment of expenses 
incurred by the Secretary in connection 
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with assessing such properties for conver-
sion, including the costs of rental com-
parability studies and physical needs and 
financial assessments, as the Secretary 
may require; and 
‘‘(ii) the amounts deobligated and col-
lected under paragraph (21). 
‘‘(B) 
AVAILABILITY.—Amounts 
in 
the 
Fund shall be available only to the extent pro-
vided in advance in appropriations Acts.’’. 
SEC. 4. TRANSFORMATION AUTHORITY. 
Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f), as amended by the preceding provi-
sions of this Act, is further amended by inserting after 
subsection (l) the following new subsection: 
‘‘(m) TRANSFORMATION AUTHORITY.— 
‘‘(1) RESIDENT CHOICE.—The Secretary shall 
promote informed choice regarding housing opportu-
nities for families in dwelling units with rental as-
sistance converted under subsection (l) of this sec-
tion by establishing procedures to implement a resi-
dent choice option as follows: 
‘‘(A) RIGHT TO MOVE.—To extent of avail-
able resources, each low-income family lawfully 
residing in a unit converted under subsection (l) 
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may move at any time after residing in the 
property for a period of not less than 24 
months (which period shall run from the date 
of the tenant’s initial occupancy or, if the prop-
erty is rehabilitated in conjunction with the 
conversion, from the date of conversion or the 
tenant’s initial occupancy, whichever is later), 
or such other period as provided in subsection 
(o)(13) or as determined by the Secretary, and 
may continue to receive rental assistance that is 
subject to policies comparable to those that 
apply to assistance under subsection (o) con-
cerning income, assistance, rent contribution, 
affordability, and other policies as the Secretary 
may specify by regulation. 
‘‘(B) PROVISION OF VOUCHERS.—A public 
housing agency administering a tenant-based 
voucher program under subsection (o) whose 
property is selected for conversion or that is se-
lected to administer a rental assistance contract 
pursuant to subsection (l) shall provide vouch-
ers to low-income families lawfully residing in 
units converted under subsection (l) who exer-
cise their rights under the resident choice op-
tion provided under subparagraph (A) as re-
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quired by the Secretary, but not more than one- 
third of the vouchers that become available each 
year as a result of turnover may be used for 
such purpose. 
‘‘(C) SEPARATE WAITING LIST.—A public 
housing agency may establish a separate wait-
ing list for families eligible to exercise such resi-
dent choice option if demand for vouchers ex-
ceeds one-third of turnover vouchers. 
‘‘(2) STREAMLINING RENTAL ASSISTANCE PRO-
GRAMS.—In addition to the authority of the Sec-
retary under any other provision of law or as speci-
fied in this paragraph, the Secretary may establish 
uniform policies and procedures governing properties 
with rental assistance converted under subsection 
(l), including policies and procedures with respect to 
the following: 
‘‘(A) TENANT ORGANIZATION RIGHTS.—In 
implementing the authority under this para-
graph with respect to tenants’ rights to orga-
nize, the Secretary shall provide that— 
‘‘(i) owners of properties funded 
under a rental assistance program and 
public housing agencies administering rent-
al assistance shall not impede the reason-
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housing agency, owners, management, and 
their representatives, and has been estab-
lished— 
‘‘(I) by the tenants in a property 
funded under a rental assistance pro-
gram administered by the Secretary 
for purposes of addressing issues re-
lated to the tenants’ living environ-
ment, which shall include the terms 
and conditions of their tenancy and 
other issues as determined by the Sec-
retary; 
‘‘(II) by the participants in a 
rental assistance program under sub-
section (o), for purposes of addressing 
issues related to policies governing 
payment standards, conditions of oc-
cupied units, or other discretionary 
policies and program implementation 
issues; or 
‘‘(III) through a combination of 
tenant organizations, including juris-
diction-wide or area-wide organiza-
tions; and 
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‘‘(vi) a portion of funds made avail-
able for renewal of rental assistance shall 
be allocated to tenant groups, non-profit 
organizations, or public entities to facili-
tate tenants’ rights to organize; such 
amounts, which shall not be less than the 
amount that would have been provided for 
such purposes under previously applicable 
funding formulas if the properties had not 
converted pursuant to subsection (l), may 
fund technical assistance and organizing 
activities that empower residents to partici-
pate meaningfully in planning processes 
and other activities related to improving or 
preserving the quality of their housing, 
subject to such terms and conditions as the 
Secretary may establish; allocation of 
funds to legitimate tenant organizations 
meeting the requirements of clause (v) 
shall not require a competitive process. 
‘‘(B) APPLICANT
AND
TENANT
PROCE-
DURAL RIGHTS.— 
‘‘(i) IN
GENERAL.—Applicants for, 
and tenants of, units with assistance con-
verted under subsection (l) or with assist-
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ance under subsection (o) shall be timely 
notified of and provided the rights speci-
fied in this subparagraph upon receiving 
notification of, including a statement of 
the specific grounds for— 
‘‘(I) ineligibility for assistance or 
for admission to a unit assisted under 
this subsection; 
‘‘(II) adverse actions involving in-
come determinations, tenant contribu-
tions, unit size, other conditions of 
continuing eligibility, or such other 
issues as determined by the Secretary; 
and 
‘‘(III) eviction or termination of 
assistance. 
‘‘(ii) PROCEDURES REQUIRED.— 
‘‘(I) An applicant for, and a ten-
ant of, a unit with assistance con-
verted under subsection (l) or with as-
sistance under subsection (o) may re-
quest a review of an action for which 
the applicant or tenant receives notifi-
cation pursuant to this subparagraph. 
Such request for a review must be 
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made within 30 days of receipt of any 
notice concerning ineligibility for as-
sistance or for admission to a unit as-
sisted under this section, or termi-
nation of assistance or eviction. For 
notices concerning any other matter, 
such request for a review must be 
made within 10 days of receipt of the 
notice or such longer time as the 
owner or agency, consistent with its 
written administrative policies, may 
permit, and before the action may be 
initiated or carried out. 
‘‘(II) An applicant for, and a ten-
ant of, a unit with assistance con-
verted under subsection (l) or with as-
sistance under subsection (o) may re-
quest a review within a reasonable pe-
riod of time of any agency or owner 
failure to act that has had a direct 
adverse impact on the applicant or 
tenant. 
‘‘(III) For any review concerning 
an eviction or termination of tenancy 
that involves any activity that threat-
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ens the health, safety, or right to 
peaceful enjoyment of the premises of 
other tenants or employees of the 
owner or agency or any violent or 
drug-related criminal activity on or off 
such premises, or any activity result-
ing in a felony conviction, the agency 
or owner may establish an expedited 
review procedure as the Secretary 
shall provide, or exclude from its re-
view procedure any such matter, in 
any jurisdiction which requires that 
prior to eviction, a tenant be given a 
hearing in court, which the Secretary 
determines provides the basic ele-
ments of due process. Such elements 
of due process shall not include a re-
quirement that the tenant be provided 
an opportunity to examine relevant 
documents within the possession of 
the agency or owner. The agency or 
owner shall provide to the tenant a 
reasonable opportunity, prior to hear-
ing or trial, to examine and obtain 
copies of any relevant documents, 
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records, or regulations directly related 
to the eviction or termination. 
‘‘(IV) The review shall be con-
ducted by a person or panel with au-
thority to approve, amend, or with-
draw the action, but not the person, 
or a subordinate of the person, that 
made the initial decision to take the 
action. 
‘‘(V) The entity that made the 
decision for the action or that failed 
to take an action for which a review 
is requested shall permit a reasonable 
opportunity in advance of the review 
for the applicant or tenant to inspect 
and 
obtain 
copies 
of 
documents 
claimed to support the action or fail-
ure to act. 
‘‘(VI) The applicant’s or tenant’s 
entire file shall be made available for 
review by the applicant or tenant 
upon request. 
‘‘(VII) The applicant or tenant 
may bring a representative to the re-
view and such person may make state-
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ments on the applicant’s or tenant’s 
behalf. The applicant or tenant shall 
have the right to present evidence and 
arguments, to controvert evidence re-
lied on by the entity, and to confront 
and cross-examine any witness who 
testifies at the review on behalf of the 
entity. The applicant or tenant may 
present arguments as to why the 
agency or owner should not exercise 
discretionary authority to undertake 
the action being challenged. 
‘‘(VIII) A written notice of the 
outcome of the review and the reasons 
in support of the outcome shall be 
provided to the applicant or tenant 
and representative, if any. The deci-
sion shall be based solely on the facts 
presented at the review. 
‘‘(iii) COSTS.—The reasonable costs, 
which shall not include attorney’s fees, of 
providing the applicant and tenant rights 
under this subparagraph shall be consid-
ered operating costs of a property. 
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‘‘(C) NONDISCRIMINATION AND AFFIRMA-
TIVELY FURTHERING FAIR HOUSING.— 
‘‘(i) NONDISCRIMINATION.—All pro-
grams and activities related to providing or 
administering rental housing assistance, 
including admissions, demolition or disposi-
tion, relocation, replacement, re-occupancy 
of housing units, and transfer of any con-
tracts for rental assistance, shall be con-
ducted in compliance with the civil rights 
laws and their implementing regulations, 
including the Fair Housing Act (42 U.S.C. 
3601 et seq.), title VI of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d et seq.), 
section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794), and Executive Or-
ders 11063 and 13166, and shall not have 
the purpose or effect of discriminating 
against a tenant or prospective tenant as-
sisted under this subsection because of 
such person’s receipt of a voucher under 
this section. 
‘‘(ii) AFFIRMATIVELY
FURTHERING 
FAIR HOUSING.—Owners and public hous-
ing agencies shall conduct all rental hous-
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emcdonald on DSK2BSOYB1PROD with BILLS
ing assistance programs and activities 
funded by the Secretary authorized under 
this Act, including admissions, demolition 
or disposition, relocation, replacement, re- 
occupancy of housing units, and transfer of 
any contracts for rental assistance, in a 
manner that affirmatively furthers fair 
housing as required by section 808(e)(5) of 
the 
Fair 
Housing 
Act 
(42 
U.S.C. 
3608(e)(5)). 
‘‘(D) ADMINISTRATION OF RENTAL ASSIST-
ANCE.—In implementing the authority under 
this subsection with respect to the administra-
tion of rental assistance, the Secretary may— 
‘‘(i) facilitate the implementation, by 
public housing agencies that administer 
tenant-based voucher programs under sub-
section (o), of regional portability agree-
ments, consortia, and such other or addi-
tional methods of streamlining administra-
tion of vouchers and other rental assist-
ance on an area-wide basis as the Sec-
retary determines appropriate to promote 
greater efficiency in the use of resources 
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and to increase informed resident choice 
and mobility; 
‘‘(ii) allocate funds to administer con-
tracts for properties converted under sub-
section (l) to entities authorized to admin-
ister 
rental 
assistance 
under 
section 
3(b)(6)(B) pursuant to such conditions 
and procedures as the Secretary may es-
tablish by notice, following an opportunity 
for comment. In awarding such funding, 
the Secretary shall promote administrative 
efficiency and advance the policy of resi-
dent choice as specified in paragraph (1) 
of this subsection; and 
‘‘(iii) establish mechanisms, proce-
dures, and policies to initiate in a single lo-
cation the application process for all wait-
ing lists for rental assistance programs ad-
ministered by the Secretary in a metropoli-
tan or rural area and to minimize the bur-
dens on owners, public housing agencies, 
and applicants, including through provision 
of technical assistance. 
‘‘(E) PHYSICAL CONDITION STANDARDS.— 
In implementing the authority under this sub-
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section with respect to the inspection of prop-
erties, the Secretary may establish or provide 
for the use of uniform physical condition stand-
ards. 
‘‘(F) ENFORCEMENT.— 
‘‘(i) AUTHORITY TO BRING ACTION.— 
The Secretary may commence any action 
in an appropriate United States district 
court to obtain a monetary judgment or 
such other relief, or both, as may be avail-
able with respect to a rental assistance 
contract, an annual contributions contract, 
a use agreement, or any statute other than 
the Fair Housing Act (42 U.S.C. 3601 et 
seq.), or regulation applicable to any rental 
assistance program under the authority of 
the Secretary or the property assisted 
under such program, or to protect or en-
force any obligation to, or right or require-
ment of, the Secretary under any such con-
tract, agreement, or law. The monetary 
judgment or other relief may, in the 
court’s discretion, include the attorneys’ 
fees and other expenses incurred by the 
Secretary in connection with the action. 
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‘‘(ii) TERMINATION
AND
TRANSFER 
OF ASSISTANCE.—Upon repeated or con-
tinued violation of applicable requirements, 
or upon substantial default of any cov-
enants or conditions of a use agreement or 
rental assistance contract by the owner of 
a property with rental assistance, and fol-
lowing consultation with the primary and 
subordinate mortgages of the property, if 
any, the Secretary may terminate the rent-
al assistance contract with such owner and, 
through a selection process established by 
regulation, transfer the rental assistance 
by entering into a new contract with the 
owner or owners of a property or prop-
erties that have the capacity to accept all 
assisted tenants who choose to move to 
such properties from the property that has 
had its assistance terminated. Assisted ten-
ants that do not choose to move to the re-
placement properties, or if replacement 
properties are not available, shall be pro-
vided voucher assistance under subsection 
(o), which may be funded initially by the 
remaining funds on the terminated con-
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emcdonald on DSK2BSOYB1PROD with BILLS
tract. No additional units of assistance 
under this section are authorized to be cre-
ated as a result of such termination and 
transfer. 
‘‘(iii) ADDITIONAL
EQUITABLE
REM-
EDIES.—Notwithstanding any other provi-
sion of law or of any contract for contribu-
tions, upon the occurrence of events or 
conditions that constitute a default by a 
public housing agency with which the Sec-
retary contracts for administration of rent-
al assistance under this section with re-
spect to the covenants or conditions to 
which the public housing agency is subject, 
the Secretary may— 
‘‘(I) take possession of properties 
solely owned by a public housing au-
thority, rights or interests held in con-
nection with the program for rental 
assistance under this section, includ-
ing funds held by a depository, pro-
gram receipts, and rights or interests 
under a housing assistance payments 
contract with an owner; 
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‘‘(II) appoint a receiver, which 
may be another public housing agency 
or other entity at the Secretary’s dis-
cretion regardless of jurisdictional 
limitations; 
‘‘(III) transfer the program to 
another public housing agency or 
other entity at the discretion of the 
Secretary regardless of jurisdictional 
limitations; 
‘‘(IV) seek the establishment of 
one or more new public housing agen-
cies; or 
‘‘(V) require the agency to make 
other arrangements acceptable to the 
Secretary for managing all or part of 
the programs administered by the 
agency or other programs of the agen-
cy under this section. 
‘‘(iv) DEPOSIT OF PENALTIES.—Not-
withstanding any other provision of law, 
the Secretary shall apply amounts collected 
under this subparagraph to the Rental As-
sistance Conversion Trust Fund estab-
lished under subsection (l)(22) or shall au-
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thorize the owner of the property or 
project at issue in the action to use the 
amounts, in accordance with the require-
ments of the Secretary, for the improve-
ment of such property or project. 
‘‘(G) RESIDENT ACCESS TO BUILDING IN-
FORMATION.— 
‘‘(i) IN
GENERAL.—Upon a written 
request by a legitimate tenants’ organiza-
tion meeting the requirements of subpara-
graph (A)(v) of this paragraph, established 
with respect to a multifamily housing prop-
erty covered under part 245 of the Sec-
retary’s regulations (24 C.F.R. part 245) 
or assisted by a contract that has been 
converted pursuant to subsection (l), by or 
through its duly appointed designee or rep-
resentative, the Secretary shall make avail-
able to that organization designee or rep-
resentative— 
‘‘(I) information identifying the 
legal entities that own and manage 
the property, including identification 
of general partners and other prin-
cipals; 
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‘‘(II) an annual operating state-
ment of profit and loss of the owner-
ship and management entities identi-
fied in subclause (I); 
‘‘(III) any subsidy contracts be-
tween the ownership entities and the 
Secretary, and related, non-privileged 
correspondence between those owner-
ship entities and the Department of 
Housing and Urban Development; 
‘‘(IV) any management reviews 
of entities identified in subclause (I) 
that are conducted by the Department 
of Housing and Urban Development 
and which may, pursuant to the regu-
lations of the Department of Housing 
and Urban Development, be publicly 
disclosed; and 
‘‘(V) an annual statement, pre-
pared by the Department’s contract 
administrator for the subject property, 
of the balances of, and expenditures 
from, any replacement reserves and 
other escrow funds for the property. 
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‘‘(ii) 
PROTECTION
OF
INFORMA-
TION.—Such a request shall be subject to 
the applicability of all laws and regulations 
governing proprietary information, privacy 
rights, privileges and other established 
legal protections for individuals and enti-
ties, and shall not be construed to limit or 
otherwise alter such laws, regulations, 
rights, privileges, and protections, or to re-
quire disclosure of Social Security num-
bers, personal tax returns, or any other 
personal financial information of or con-
cerning individuals who have an interest in 
the ownership or management entities re-
ferred to in subclause (I) of clause (i). 
‘‘(H) STREAMLINED
REGULATIONS.—The 
Secretary may establish streamlined review and 
compliance requirements for small or partially 
assisted properties, or both, regardless of the 
form of assistance provided such properties 
under this section. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated for the trans-
formation of rental assistance, including conversions 
under subsection (l), $350,000,000 for fiscal year 
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emcdonald on DSK2BSOYB1PROD with BILLS
2011 and such sums as may be necessary for each 
of fiscal years 2012, 2013, 2014, and 2015. 
‘‘(4) ALLOCATION.—The Secretary may allocate 
amounts for the transformation of rental assistance 
under this subsection, including for a portion of the 
funding of property-based and project-based voucher 
contracts, the costs of administration of a property- 
based or project-based voucher contract for a par-
ticular property, promotion of tenant organizing 
rights and resident mobility (including of partici-
pants in the tenant-based voucher program under 
subsection (o)), relocation assistance pursuant to 
subsection (l)(9), efforts to affirmatively further fair 
housing, and expenses of combining administrative 
components of local programs under subsection (o) 
by competition or such other procedure the Sec-
retary determines appropriate, upon publication of 
notice in the Federal Register notice not later than 
30 days before such allocation is made. Except in 
the case of a competitive allocation, if the method of 
allocation from year to year does not change, publi-
cation of a new notice shall not be required.’’. 
SEC. 5. PROPERTY-BASED CONTRACTS. 
Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f), as amended by the preceding provi-
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emcdonald on DSK2BSOYB1PROD with BILLS
sions of this Act, is further amended by inserting after 
subsection (m) the following new subsection: 
‘‘(n) PROPERTY-BASED CONTRACTS.— 
‘‘(1) AUTHORITY.—Subject to the availability of 
amounts provided in appropriations Acts and that 
otherwise become available, and to the control of the 
Secretary of applicable accounts in the Treasury of 
the United States, the Secretary may enter into a 
property-based housing assistance payment contract 
with respect to a property converted pursuant to 
subsection (l) or a replacement property, and may 
provide funds pursuant to such conditions and pro-
cedures as the Secretary may establish for a public 
housing agency to administer or assist in the admin-
istration of such property-based contract. 
‘‘(2) CONTRACT
TERM.—The Secretary may 
enter into a multi-year property-based contract for 
assistance pursuant to this subsection, subject to the 
availability of appropriations for each year of such 
contract, for the following terms: 
‘‘(A) INITIAL TERM.— 
‘‘(i) PUBLIC
HOUSING.—A property- 
based contract between the Secretary and 
the owner of a property assisted, prior to 
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conversion, under section 9 shall have an 
initial term of not fewer than 20 years. 
‘‘(ii) OTHER HOUSING.—A property- 
based contract between the Secretary and 
the owner of any other property shall have 
a term at least equal to the term remain-
ing on the contract being converted to a 
contract for rental assistance under this 
subsection, or may have a term of up to 20 
years, as determined by the Secretary. 
‘‘(B) CONTRACT RENEWALS AND EXTEN-
SIONS.— 
‘‘(i) AGREEMENT
TO
EXTEND
OR 
RENEW.—At any time during the term of 
a property-based contract, the Secretary 
may, at the request of the owner, agree to 
extend or renew the property-based con-
tract for up to a 20-year period beyond the 
initial contract term or the term of any re-
newal contract subject to the availability of 
appropriations for each year of such exten-
sion or renewal. In the initial contract or 
any renewal contract, the Secretary and 
the owner may agree to have such exten-
sions or renewals of the property-based 
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contract accepted by the owner and by the 
successors in interest of the owner. 
‘‘(ii) RENEWAL CONTRACT.— 
‘‘(I) RENEWAL.—During the 2- 
year period before the expiration of a 
property-based contract, the Secretary 
shall offer, and at the request of the 
owner shall agree to, a renewal con-
tract for a term of up to 20 years, 
subject to the requirements of sub-
clause (II) and the availability of ap-
propriations for each year of such re-
newal. 
‘‘(II) 
PROHIBITION
ON
RE-
NEWAL.—The Secretary shall not 
offer or agree to renew a contract for 
the subject property— 
‘‘(aa) if the Secretary deter-
mines, in consultation with the 
tenants and the local govern-
ment, that the property is obso-
lete as to physical condition, loca-
tion, or other factors that cannot 
be remedied with available Fed-
eral, State, and local resources, 
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making it unsuitable as low-in-
come housing; or 
‘‘(bb) with an owner that is 
debarred or suspended, or found 
to be in serious and repeated 
noncompliance with applicable re-
quirements established by the 
Secretary. 
‘‘(III) 
CONVERTED
PUBLIC 
HOUSING.—An owner of a property 
converted from assistance under sec-
tion 9 shall accept all renewal con-
tracts offered by the Secretary in ac-
cordance with this subparagraph. 
‘‘(C) RENEWALS UPON EXPIRATION.— 
‘‘(i) IN GENERAL.—At the request of 
an owner of a property with a property- 
based contract that expires or otherwise 
terminates to renew such expired or termi-
nated contract in whole or in part, the Sec-
retary shall, subject to the requirements of 
subparagraph (B)(ii)(II), renew such con-
tract if eligible tenants in the property 
have not yet been issued tenant protection 
vouchers and if the rental assistance for-
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merly provided to the property has not 
been transferred to another property or 
properties. 
‘‘(ii) PARTIAL RENEWAL.—In the case 
of a partial renewal, the assistance not re-
newed may be transferred to another prop-
erty or properties or vouchers shall be pro-
vided in accordance with subsection (k). 
‘‘(3) CALCULATION OF RENT TO OWNER.— 
‘‘(A) INITIAL CALCULATION.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall establish rents for each unit assisted 
under a property-based contract at the 
level requested by the owner but not to ex-
ceed the rents derived from comparable un-
assisted properties in the area, up to 110 
percent of the applicable area rental estab-
lished by the Secretary or such higher 
amount approved by the Secretary based 
on a determination by the Secretary that 
such higher amount is cost-effective con-
sidering the need for affordable housing by 
the types of households served by the prop-
erty and the quality and location of the 
property. For a property for which the 
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Secretary has approved under the Multi-
family Assisted Housing Reform and Af-
fordability Act of 1997 (42 U.S.C. 1437f 
note) a rent not in excess of the com-
parable rent at the time of such approval, 
the Secretary shall establish rents for each 
unit assisted under a property-based con-
tract at the higher of the level most re-
cently approved or the rent established 
under the preceding sentence. Prior to the 
agreement to enter into a contract under 
this subsection, the Secretary may approve 
upon an owner’s request a lower rent than 
that permitted under this clause if such 
lower rent is sufficient to meet the finan-
cial and physical sustainability needs of the 
property. 
‘‘(ii) EXCEPTION PROPERTIES.— 
‘‘(I) 
PROPERTY
REQUIRE-
MENTS.—The maximum monthly rent 
may exceed the rents derived from 
comparable unassisted properties in 
the area upon a determination by the 
Secretary that such exception rents 
are necessary to meet the financial 
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and physical sustainability needs of 
the property, and that— 
‘‘(aa) the property is not, or 
after planned rehabilitation will 
not be, obsolete as to physical 
condition, location, or other fac-
tors, making it unsuitable for 
housing purposes; and 
‘‘(bb) a reasonable program 
of property modifications in com-
bination with rents determined 
under this clause will be cost-ef-
fective to extend the useful life of 
the property. 
‘‘(II) RENT
LIMITATION.—The 
Secretary may not approve an excep-
tion above the higher of 110 percent 
of the applicable area rental or 120 
percent of the rent for comparable un-
assisted properties in the area. The 
limitations of this subclause shall not 
apply if the property was, prior to 
conversion of assistance, subject to a 
rental assistance contract that has 
been renewed under section 515 of the 
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Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 
U.S.C. 1437f note) with rents estab-
lished under section 514(g)(2) of such 
Act that, at the time of conversion of 
assistance, exceed the limit established 
in the preceding sentence. 
‘‘(III) 
CONSIDERATION
OF 
OTHER
FUNDS.—In 
determining 
whether to allow an exception rent, 
the Secretary shall consider the avail-
ability of unexpended funds that may 
be used to reduce or eliminate the 
need for an exception rent. 
‘‘(iii) UNITS
EXEMPT
FROM
RENT 
CONTROL.—If a unit for which a property- 
based contract is established is exempt 
from local rent control provisions during 
the term of such contract, the rent for that 
unit shall be reasonable in comparison with 
other units in the area that are exempt 
from local rent control provisions. 
‘‘(B) RENT
ADJUSTMENTS.—A property- 
based contract pursuant to this subsection shall 
provide for annual rent adjustments using one 
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or more indices established by the Secretary 
(which shall not result in a negative adjust-
ment) by notice published in the Federal Reg-
ister to reflect the change in the rents and costs 
of multifamily rental housing, except that— 
‘‘(i) the contract may provide that the 
maximum rent permitted for a unit shall 
not be less than the initial rent for the unit 
under the initial property-based contract 
under this subsection; 
‘‘(ii) an owner may request a rent in-
crease above the index based on significant 
improvements to the property, subject to 
limitations in subparagraph (A) and any 
additional standards issued by the Sec-
retary; and 
‘‘(iii) the Secretary may at any time, 
and at least every 5 years, compare the 
maximum rent to the level of rents charged 
for comparable units in the private, unas-
sisted local market, and shall, if appro-
priate, decrease the contract rent, subject 
to the limitations in clause (i) or any ex-
ception approved by the Secretary, and 
may, if appropriate, increase the contract 
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rent, subject to the limitations in subpara-
graph (A) and clause (ii) of this subpara-
graph. 
‘‘(C) TAX CREDIT OR HOME PROJECTS.— 
In the case of a unit receiving tax credits pur-
suant to section 42 of the Internal Revenue 
Code of 1986 or for which assistance is pro-
vided under subtitle A of title II of the Cran-
ston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12741 et seq.) for which a property- 
based contract is established under this sub-
section, rent reasonableness shall be determined 
as otherwise provided by this paragraph, except 
that comparison with rents for units in the pri-
vate, unassisted local market shall not be re-
quired if the rent is equal to or less than the 
rent for other comparable units receiving such 
tax credits or assistance in the project that are 
not occupied by families assisted under a prop-
erty-based contract. 
‘‘(4) TENANT CONTRIBUTION.—A family shall 
pay as rent for a unit assisted under this subsection 
the amount determined in accordance with section 3 
(42 U.S.C. 1437a). 
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‘‘(5) ELIGIBLE TENANTS.—To be eligible to be 
a tenant for a unit assisted under this subsection, a 
family shall, at the time a family initially receives 
assistance under this subsection, be— 
‘‘(A) a family lawfully residing in a unit at 
the time of a conversion of assistance under 
subsection (l); or 
‘‘(B) a low-income family meeting eligi-
bility criteria specified by the Secretary that 
fulfill the requirements under paragraphs (3) 
and (4) of section 16(c) (42 U.S.C. 1437n(c)). 
‘‘(6) SELECTION OF TENANTS.— 
‘‘(A) WAITING
LISTS.—Subject to such 
conditions as may be established by the Sec-
retary, selection of tenants for units assisted 
under a property-based contract under this sub-
section shall be subject to the following: 
‘‘(i) 
REQUIRED
USE.—The 
owner 
shall select families for units assisted 
under such a contract from a waiting list 
for applicants for housing assistance under 
this subsection. If a property has rental as-
sistance that has been converted under 
subsection (l), any waiting list for the 
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property prior to conversion shall continue 
to apply after the conversion. 
‘‘(ii) 
DELAY
DUE
TO
RESIDENT 
CHOICE
OPTION.—Notwithstanding clause 
(i), the Secretary may establish policies to 
permit applicants on a tenant-based vouch-
er waiting list whose receipt of assistance 
is delayed due to the resident choice option 
under subsection (m)(1) to exercise the op-
tion to be placed on a waiting list for ap-
plicants for housing assistance under this 
subsection or subsection (o)(13). 
‘‘(iii) 
MAINTENANCE
OF
WAITING 
LIST.—An owner may maintain a waiting 
list or may use a waiting list maintained 
by a public housing agency on such terms 
and conditions as agreed to by the owner 
and public housing agency and permitted 
by the Secretary. 
‘‘(iv) SINGLE AND SITE-BASED WAIT-
ING LISTS.—An owner of more than one 
property, or a public housing agency ad-
ministering waiting lists for properties as-
sisted under this subsection, may maintain 
a single waiting list for all or some of such 
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properties or may establish a site-based 
waiting list for individual properties. An 
owner or public housing agency shall dis-
close to each applicant all other options in 
the selection of a property in which to re-
side that are provided by the owner or ad-
ministered by the public housing agency 
and are available to the applicant. If a 
public housing agency administers site- 
based waiting lists for more than one prop-
erty assisted under this subsection, an ap-
plicant may apply in a single location to all 
site-based waiting lists maintained by such 
an entity. 
‘‘(v) PREFERENCES.—The owner or 
the public housing agency administering 
the waiting list for the property may estab-
lish preferences or criteria for tenant selec-
tion for a unit that are consistent with the 
affordable housing needs established for 
the area in which a property is located in 
the consolidated plan prepared pursuant to 
part 91 of the Secretary’s regulations (24 
C.F.R. part 91), or successor regulations. 
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‘‘(vi) OUTREACH.—The owner or the 
public housing agency administering the 
waiting list for the property shall adopt af-
firmative marketing procedures and under-
take affirmative marketing activities. Such 
special outreach efforts shall be targeted to 
those who are least likely to apply for the 
housing to ensure that all persons, regard-
less of their race, color, national origin, re-
ligion, sex, disability, or familial status, are 
aware of the housing opportunities in each 
of the owner’s properties with rental assist-
ance. 
‘‘(vii) 
COMPLIANCE
WITH
CIVIL 
RIGHTS
LAWS.—All 
procedures, 
pref-
erences, and criteria for waiting lists shall 
comply with title VI of the Civil Rights Act 
of 1964 (42 U.S.C. 2000d et seq.), the 
Fair Housing Act (42 U.S.C. 3601 et 
seq.), section 504 of the Rehabilitation Act 
of 1973 (29 U.S.C. 794), and other appli-
cable civil rights laws. 
‘‘(B) SELECTION BY OWNER.—Each prop-
erty-based contract entered into by the Sec-
retary and an owner shall provide that the 
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screening and selection of families shall be the 
function of the owner. 
‘‘(C) PREVENTION
OF
DISPLACEMENT.— 
Any family who resides in a unit proposed to be 
assisted under this subsection, or in a unit to 
be replaced by a unit proposed to be assisted 
under this subsection, shall be given an absolute 
preference for selection for placement in the 
unit proposed to be assisted, if the family is 
otherwise eligible for assistance under this sub-
section. 
‘‘(7) LEASES AND TENANCY.—Each property- 
based contract for a property converted under sub-
section (l) shall provide that the lease between the 
tenant and the owner— 
‘‘(A) shall be for an initial term of 1 year, 
automatically renewable at the expiration of 
each term, and that the owner may terminate 
a tenancy only for serious or repeated violations 
of the terms and conditions of the lease or for 
a violation of applicable law; 
‘‘(B) shall comply with subsection (c)(9); 
and 
‘‘(C) shall contain provisions required by 
the Secretary and State and local law. 
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‘‘(8) VACANCY PAYMENTS.— 
‘‘(A) IN
GENERAL.—For each property 
with assistance converted under this subsection, 
the owner may receive, as permitted by the Sec-
retary, for a reasonable period not exceeding 60 
days, vacancy payments for a unit that becomes 
vacant, but only if— 
‘‘(i) the vacancy was not the fault of 
the owner of the dwelling unit; and 
‘‘(ii) the owner has taken and con-
tinues to take every reasonable action to 
minimize the likelihood and extent of any 
such vacancy. 
‘‘(B) LIMITATION.—Rental assistance may 
not be provided for a vacant unit after the expi-
ration of the 60-day period specified in sub-
paragraph (A). 
‘‘(C) PROHIBITION OF DOUBLE COMPENSA-
TION
FOR
VACANCIES.—If the owner collects 
payments for vacancies from other sources, the 
owner shall not be entitled to collect vacancy 
payments to the extent these collections from 
other sources plus the vacancy payment exceed 
contract rent. 
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‘‘(9) 
PHYSICAL
INSPECTIONS
OF
PROP-
ERTIES.— 
‘‘(A) REQUIREMENT.—The Secretary shall, 
for each property receiving assistance under 
this subsection, provide for inspections during 
the term of the property-based contract to de-
termine whether the property is maintained in 
accordance with the physical condition stand-
ards established or provided by the Secretary 
under subsection (m)(2)(E). The schedule of 
the inspections shall be determined by the Sec-
retary. 
‘‘(B) FAILURE OF INSPECTION.—The Sec-
retary may take such actions as provided by law 
or contract to enforce and maintain compliance 
with applicable inspection standards. 
‘‘(C) RECORDS.—The owner shall retain 
the records of the inspection for a reasonable 
time and shall make the records available upon 
request to the Secretary, the Inspector General 
of the Department of Housing and Urban De-
velopment, and any auditor conducting an audit 
under section 5(h) (42. U.S.C. 1437c(h)). 
‘‘(D) STATE AND LOCAL INSPECTIONS.— 
For purposes of meeting the requirement under 
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subparagraph (A), the Secretary may accept in-
spection results from inspections conducted by 
a State or locality or a program funded or ad-
ministered by a State or locality if such inspec-
tion employs standards equivalent to or exceed-
ing the physical condition standards established 
by the Secretary. Such reserve requirements 
shall vary based on the anticipated physical 
needs of the property. 
‘‘(10) USE OF RENTAL AMOUNTS.— 
‘‘(A) 
RESERVE
REQUIREMENTS.—An 
owner of a property with rental assistance 
under this subsection shall comply with oper-
ating and replacement reserve requirements es-
tablished by the Secretary. 
‘‘(B) CASH FLOW LIMITATION.—The Sec-
retary may establish standards for the cash 
flow of a property, including standards applica-
ble upon suspension, expiration, or termination 
of rental assistance, with assistance under this 
subsection. Any access to cash flow shall not be 
limited based on the tax status of the property 
owner or project sponsor or whether the prop-
erty was formerly assisted under section 9. 
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‘‘(11) EXPIRATION OR TERMINATION OF CON-
TRACT OR USE AGREEMENT.— 
‘‘(A) VOUCHER ASSISTANCE.—In the case 
of a property-based contract that is no longer 
in effect and the property is no longer subject 
to a use agreement, in whole or in part, to the 
extent that amounts are provided in advance in 
appropriation Acts, upon the date of expiration 
of such contract or use agreement, whichever is 
later, the Secretary shall make voucher assist-
ance under subsection (t), or in the case of a 
contract that expires or is terminated because it 
does not meet the requirements of paragraph 
(2)(B)(ii)(II) of this subsection, voucher assist-
ance under subsection (o), available on behalf of 
each low-income family who, upon the date of 
such expiration, is residing in an assisted dwell-
ing unit in the property, and shall, subject to 
the availability of appropriations, provide re-
placement vouchers under subsection (o) for 
any vacant units subject to the contract at the 
time of expiration or termination. 
‘‘(B) TRANSFER OF ASSISTANCE.—In lieu 
of providing vouchers pursuant to subparagraph 
(A) when a contract expires or is terminated, 
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the Secretary may, following notice and con-
sultation by the Secretary with tenants as pro-
vided in subsection (l)(3)(E)(i), transfer assist-
ance from a contract that is not renewed in 
whole or in part to a new contract with another 
property or properties, and in the case of a 
property converted from assistance under sec-
tion 9, shall transfer such assistance to a new 
contract with another property or properties 
with priority for a public entity owner, followed 
by a priority for a non-profit entity owner. 
‘‘(12) FINANCIAL REVIEWS.—The owner of a 
property assisted under this subsection shall provide 
the Secretary an annual financial report of the prop-
erty, prepared and submitted in accordance with the 
requirements of the Secretary, which may include 
certification by the owner, a certified public account-
ant, or other person acceptable to the Secretary.’’. 
SEC. 6. PROJECT-BASED VOUCHER CONTRACTS. 
Paragraph (13) of section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amend-
ed— 
(1) by striking ‘‘structure’’ each place such 
term appears and inserting ‘‘project’’; 
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(2) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
‘‘(i) IN GENERAL.—Subject to clauses 
(ii) and (iii), not more than 20 percent of 
the dwelling units assisted by the agency 
under this subsection may be assisted with 
project-based assistance under this para-
graph. 
‘‘(ii) EXCEPTION.—Up to an addi-
tional 5 percent of the dwelling units as-
sisted by an agency under this subsection 
may be assisted with project-based assist-
ance under this paragraph to provide 
dwelling units that house individuals and 
families that meet the definition of home-
less under section 103 of the McKinney- 
Vento Homeless Assistance Act (42 U.S.C. 
11302), that provide supportive housing to 
elderly persons or persons with disabilities, 
or that are located in areas where vouchers 
under this subsection are difficult to use, 
as specified in subparagraph (D)(ii)(II). 
The Secretary may, by regulation, estab-
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lish additional categories for the exception 
under this clause. 
‘‘(iii) EXCEPTION FOR PROJECTS CON-
VERTED
UNDER
SUBSECTION
(l).—An 
agency administering project-based assist-
ance under this paragraph pursuant to a 
conversion under subsection (l) may attach 
project-based assistance under this para-
graph to up to 40 percent of the dwelling 
units assisted by the agency under this 
subsection, but in no event may an agency 
attach project-based assistance through 
means other than conversion to more than 
the share of units permitted by clauses (i) 
and (ii) of this subparagraph.’’; 
(3) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) INCOME MIXING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), of the dwelling units in 
any project, not more than the greater of 
25 units or 25 percent of the units may be 
assisted under a housing assistance pay-
ment contract for project-based assistance 
pursuant to this paragraph. For purposes 
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of this subparagraph, the term ‘project’ 
means a single building, multiple contig-
uous buildings, or multiple buildings on 
contiguous parcels of land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) CERTAIN
HOUSEHOLDS.— 
The limitation under clause (i) shall 
not apply to dwelling units assisted 
under a contract that are exclusively 
made available to elderly families or 
to households eligible for comprehen-
sive social services that are made 
available to residents of the property. 
The Secretary may establish addi-
tional requirements for the monitoring 
and oversight of projects in which 
more than 40 percent of the dwelling 
units are assisted. 
‘‘(II) CERTAIN AREAS.—With re-
spect to areas in which tenant-based 
vouchers are difficult to use, as deter-
mined by the Secretary, and with re-
spect to census tracts with a poverty 
rate of 20 percent or less, clause (i) 
shall be applied by substituting ‘40 
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percent’ for ‘25 percent’ and the Sec-
retary may, by regulation, establish 
additional conditions. 
‘‘(III) EXCEPTION FOR PROJECTS 
CONVERTED
UNDER
SUBSECTION 
(l).—In the case of a project assisted 
under this paragraph pursuant to a 
conversion under subsection (l), the 
exception in subclause (I) shall apply 
to not more than 40 percent of the 
dwelling units.’’; 
(4) by striking subparagraph (F) and inserting 
the following new subparagraph: 
‘‘(F) CONTRACT TERM.—A housing assist-
ance payment contract pursuant to this para-
graph between a public housing agency and the 
owner of a project may have a term of up to 
20 years, subject to— 
‘‘(i) the availability of sufficient ap-
propriated funds for the purpose of renew-
ing expiring contracts for assistance pay-
ments, as provided in appropriations Acts 
and in the agency’s annual contributions 
contract with the Secretary: Provided, 
That in the event of insufficient appro-
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priated funds, payments due under con-
tracts under this paragraph shall take pri-
ority if other cost-saving measures that do 
not require the termination of an existing 
contract are available to the agency; and 
‘‘(ii) compliance with the inspection 
requirements under paragraph (8), except 
that the Secretary may modify the applica-
tion of paragraph (8) to properties assisted 
under this paragraph, through actions in-
cluding permitting inspection of a sample 
of dwelling units in a project, avoiding du-
plicative requirements, and incentivizing 
high performance. 
The contract may specify additional conditions, 
including with respect to continuation, termi-
nation, or expiration.’’; 
(5) in subparagraph (G)— 
(A) in the second sentence, by striking 
‘‘15’’ and inserting ‘‘20’’; 
(B) in the last sentence, by inserting ‘‘ex-
tension’’ after ‘‘enter into such a contract’’; 
(C) by striking the ‘‘(G) EXTENSION OF 
CONTRACT
TERM.—A public housing agency 
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may enter into a contract’’ and inserting the 
following: 
‘‘(G) EXTENSION OF CONTRACT TERM.— 
‘‘(i) IN GENERAL.—A public housing 
agency may enter into a contract exten-
sion’’; and 
(D) by adding at the end the following new 
clause: 
‘‘(ii) CONVERTED
PROPERTIES.—In 
the case of projects converted from other 
forms of rental assistance pursuant to sub-
section (l), a public housing agency may 
decline to offer to extend the term of the 
underlying housing assistance payment 
contract for the maximum period per-
mitted under clause (i) of this subpara-
graph only with the advance approval of 
the Secretary. The Secretary may grant 
approval to not extend a contract only— 
‘‘(I) if the property is obsolete as 
to physical condition, location, or 
other factors which cannot be rem-
edied with available Federal, State, 
and local resources, making it unsuit-
able as low-income housing; 
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‘‘(II) with an owner that is 
debarred or suspended, or found in to 
be in serious and repeated noncompli-
ance with applicable requirements es-
tablished by the Secretary; or 
‘‘(III) if no funding is available 
that can be used for such exten-
sions.’’; 
(6) in subparagraph (H)— 
(A) in the first sentence, by striking ‘‘(or 
any exception payment standard approved by 
the Secretary pursuant to paragraph (1)(D)),’’ 
and inserting ‘‘(or any exception payment 
standard approved by the Secretary for the area 
pursuant to paragraph (1)(D) or for the 
project),’’; 
(B) by striking ‘‘(H) RENT
CALCULA-
TION.—A housing’’ and inserting the following: 
‘‘(H) RENT CALCULATION.— 
‘‘(i) IN GENERAL.—A housing’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) TENANTS
OVER-INCOME
FOR 
CONTINUING SUBSIDY.—Subsection (l)(11) 
shall apply to all contracts under this para-
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graph, except that the public housing agen-
cy and the owner may agree to retain the 
number of dwelling units subject to a con-
tract for assistance under this subpara-
graph, subject to policies issued by the 
Secretary.’’; 
(7) by striking subparagraph (I) and inserting 
the following new subparagraph: 
‘‘(I) RENT ADJUSTMENTS.— 
‘‘(i) IN GENERAL.—A housing assist-
ance payment contract pursuant to this 
paragraph shall provide for reasonable rent 
adjustments if requested by the owner, ex-
cept that— 
‘‘(I) the adjusted rent for any 
unit assisted shall be reasonable in 
comparison with rents charged for 
comparable dwelling units in the pri-
vate, unassisted, local market and 
may not exceed the maximum rent 
permitted under subparagraph (H); 
and 
‘‘(II) the contract may provide 
that the maximum rent permitted for 
a dwelling unit shall not be less than 
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the initial rent for the dwelling unit 
under the initial housing assistance 
payments contract covering the unit. 
‘‘(ii) 
SCHEDULED
RENT
ADJUST-
MENTS.—A housing assistance payment 
contract pursuant to this paragraph may, 
at the discretion of the Secretary, provide 
for annual rent adjustments using an index 
determined by the Secretary for adjust-
ment of contracts under subsection (n). 
Such a contract shall provide that— 
‘‘(I) an owner may request a rent 
increase above the index based on sig-
nificant improvements to the project, 
subject to limitations in subparagraph 
(H) of this paragraph and any addi-
tional standards issued by the Sec-
retary; and 
‘‘(II) the public housing agency 
shall, at least every 5 years, compare 
the maximum rent to the level of 
rents charged for comparable dwelling 
units in the private, unassisted local 
market, and shall, if appropriate, de-
crease the contract rent, subject to 
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the limitations in clause (i) or any ex-
ception approved by the Secretary, 
and may, if appropriate, increase the 
contract rent, subject to the limita-
tions in subparagraph (H).’’; 
(8) in subparagraph (J)— 
(A) by striking the last two sentences; 
(B) by inserting after the third sentence 
the following new sentence: ‘‘Any family who re-
sides in a dwelling unit proposed to be assisted 
under this paragraph, or in a unit to be re-
placed by a unit proposed to be assisted under 
this paragraph, shall be given an absolute pref-
erence for selection for placement in the pro-
posed unit, if the family is otherwise eligible for 
assistance under this subsection.’’; 
(C) by striking ‘‘(J) TENANT
SELEC-
TION.—A public housing agency’’ and inserting 
the following: 
‘‘(J) TENANT SELECTION.— 
‘‘(i) IN GENERAL.—A public housing 
agency’’; and 
(D) by adding at the end the following new 
clause: 
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‘‘(ii) SITE-BASED WAITING LISTS.—A 
public housing agency may establish and 
utilize procedures for maintaining site- 
based waiting lists under which applicants 
may apply directly at, or otherwise des-
ignate to the public housing agency, the 
project or projects in which they seek to 
reside, except that all eligible applicants on 
the waiting list of an agency for assistance 
under this subsection shall be permitted to 
place their names on such separate lists, 
subject to policies and procedures specified 
by the Secretary. All such procedures shall 
comply with title VI of the Civil Rights Act 
of 1964 (42 U.S.C. 42 U.S.C. 2000d et 
seq.), the Fair Housing Act (42 U.S.C. 
3601 et seq.), section 504 of the Rehabili-
tation Act of 1973 (29 U.S.C. 794), and 
other applicable civil rights laws. The 
owner or manager of a project assisted 
under this paragraph shall not admit any 
family to a dwelling unit assisted under a 
contract pursuant to this paragraph other 
than a family referred by the public hous-
ing agency from its waiting list, or a fam-
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ily on a site-based waiting list that com-
plies with the requirements of this sub-
paragraph. A public housing agency shall 
disclose to each applicant all other options 
in the selection of a project in which to re-
side that are provided by the public hous-
ing agency and are available to the appli-
cant.’’; 
(9) in subparagraph (K)(ii) by striking ‘‘the 
owner has notified the agency of the vacancy’’ and 
inserting ‘‘the unit has become vacant’’; and 
(10) by adding at the end the following new 
subparagraphs: 
‘‘(N) LEASES
AND
TENANCY.—Notwith-
standing any other provision of law, for the 
term of the contract under this paragraph, the 
owner may terminate a tenancy only for serious 
or repeated violations of the terms and condi-
tions of the lease or for violation of applicable 
law. 
‘‘(O) PROPERTIES
IN
FORECLOSURE
OR 
BANKRUPTCY.—Notwithstanding any provision 
of Federal or State law, for all properties as-
sisted under this paragraph on or after May 20, 
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emcdonald on DSK2BSOYB1PROD with BILLS
2009, the provision of subsection (l)(18)(B) 
shall apply. 
‘‘(P) CONVERSION FROM PROJECT-BASED 
VOUCHER CONTRACT TO PROPERTY-BASED CON-
TRACT.—A property assisted under this para-
graph (in this subparagraph referred to as a 
‘project-based voucher contract’) may convert to 
a property-based housing assistance payment 
contract under subsection (n) (in this subpara-
graph referred to as a ‘property-based con-
tract’) at the request of the owner of the prop-
erty and at the discretion of, and upon approval 
by, the Secretary if the property meets the ap-
plicable requirements under subsection (n), sub-
ject to the following requirements: 
‘‘(i) CONTRACTS
RESULTING
FROM 
CONVERSION.—If the project-based vouch-
er contract resulted from a conversion 
under subsection (l), the Secretary, upon 
approval of the request to convert to a 
property-based contract, shall reduce the 
annual contributions contract under this 
subsection of the public housing agency ad-
ministering the project-based voucher con-
tract by the appropriate number of units 
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and related funding, and transfer the fund-
ing to the entity administering the project- 
based contract. 
‘‘(ii) CONTRACTS
NOT
RESULTING 
FROM CONVERSION.—If the project-based 
voucher contract did not result from a con-
version under subsection (l), and the public 
housing agency has not breached its con-
tractual obligations concerning the prop-
erty, the Secretary may approve the re-
quest only with the agreement of the public 
housing agency administering the project- 
based voucher contract to the reduction of 
its annual contributions contract under 
this subsection by the appropriate number 
of units and related funding. 
‘‘(Q) CONVERSION
FROM
TENANT-BASED 
VOUCHERS TO PROPERTY-BASED CONTRACT.—A 
property with units assisted under this sub-
section or subsection (t) may convert to a prop-
erty-based housing assistance payment contract 
under subsection (n) (in this subparagraph re-
ferred to as a ‘property-based contract’), rather 
than to assistance under this paragraph, at the 
request of the owner of the property and agree-
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emcdonald on DSK2BSOYB1PROD with BILLS
ment of the public housing agency and at the 
discretion of, and upon approval by, the Sec-
retary if the property meets the applicable re-
quirements under subsection (n), subject to the 
following requirements: 
‘‘(i) REDUCTION
OF
ANNUAL
CON-
TRIBUTIONS
CONTRACT.—The Secretary, 
upon approval of the request to convert to 
a property-based contract, shall reduce the 
annual contributions contract of the public 
housing agency administering the tenant- 
based vouchers by the appropriate number 
of units and related funding, and transfer 
the funding to the entity administering the 
project-based contract. 
‘‘(ii) RESIDENT CHOICE.—Tenants in 
units with assistance converted under this 
subparagraph shall be provided with a resi-
dent choice option as provided for in sub-
section (m)(1). 
‘‘(iii) TREATMENT OF LIMITATION ON 
TENANT-BASED VOUCHERS.—The percent-
age limitation on a public housing agency’s 
tenant-based vouchers converted to prop-
erty-based assistance under subparagraph 
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emcdonald on DSK2BSOYB1PROD with BILLS
(B)(iii) shall include vouchers converted 
under this subparagraph. 
‘‘(iv) SUBSTANTIAL
AMENDMENT.— 
Conversion under this subparagraph shall 
be considered a substantial amendment to 
the public housing agency’s plan under sec-
tion 5A(g). 
‘‘(v) 
CONSULTATION
WITH
RESI-
DENTS.—The owner of the property shall 
comply with the requirements established 
by the Secretary pursuant to subsection 
(l)(2)(E)(i) for consultation with residents 
about the owner’s intention to apply for 
conversion under this subparagraph.’’. 
SEC. 7. CONFORMING AMENDMENTS. 
(a) DEFINITION.—Subparagraph (B) of section 
3(b)(6) of the United States Housing Act of 1937 (42 
U.S.C. 1437a(b)(6)(B)) is amended— 
(1) by striking ‘‘tenant-based’’ each place such 
term appears; 
(2) in the subparagraph heading, by striking 
‘‘PROGRAM’’ and inserting ‘‘PROGRAMS’’; 
(3) and in the matter preceding clause (i), by 
striking ‘‘program’’ and inserting ‘‘programs’’; and 
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emcdonald on DSK2BSOYB1PROD with BILLS
(4) by striking clauses (i) and (ii) and inserting 
the following: 
‘‘(i) any State, county, municipality, 
or other governmental entity or public 
body, or an agency or instrumentality of 
such an entity, and a non-profit entity, 
that has the capability to administer a pro-
gram for assistance under such section in 
an efficient manner and, notwithstanding 
any provision of State or local law, without 
regard to any otherwise applicable limita-
tions on its area of operation, as deter-
mined by the Secretary; 
‘‘(ii) a consortium of public housing 
agencies, which shall have a legal entity or 
entities authorized to act as the legal rep-
resentative of the consortium members; 
and’’. 
(b) ADMINISTRATIVE FEE.—Paragraph (1) of section 
8(q) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(q)(1)) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) CONVERSION
RENTAL
ASSISTANCE 
ADMINISTRATOR.—The Secretary may establish 
and allocate a fee, as determined by the Sec-
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emcdonald on DSK2BSOYB1PROD with BILLS
retary, for the administration of the rental as-
sistance for properties converted to a project- 
based voucher contract under subsection (l).’’. 
(c) RENEWAL
OF
MAINSTREAM
TENANT-BASED 
RENTAL ASSISTANCE PROGRAM THROUGH SECTION 8 
VOUCHER PROGRAM.— 
(1) RENTAL
ASSISTANCE.—Subsection (d) of 
section 811 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 8013(d)) is amend-
ed by striking paragraph (4) and inserting the fol-
lowing new paragraph: 
‘‘(4) TENANT-BASED RENTAL ASSISTANCE.— 
‘‘(A) IN
GENERAL.—Tenant-based rental 
assistance provided under subsection (b)(1) 
shall be provided under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(o)). 
‘‘(B) CONVERSION
OF
EXISTING
ASSIST-
ANCE.—There is authorized to be appropriated 
for tenant-based rental assistance under section 
8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)) for persons with disabil-
ities, an amount not less than the amount nec-
essary to convert the number of authorized 
vouchers and funding under an annual con-
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tributions contract in effect on the date of en-
actment of the Rental Housing Revitalization 
Act of 2010. Such converted vouchers may be 
administered by the entity administering the 
vouchers prior to conversion. Such entities shall 
be considered a public housing agency author-
ized to engage in the operation of tenant-based 
assistance under such section 8(o). 
‘‘(C) REQUIREMENTS UPON TURNOVER.— 
The Secretary shall develop and issue, to public 
housing agencies that receive voucher assistance 
made available under this subsection and to 
public housing agencies that received voucher 
assistance under section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f(o)) for non-elderly disabled families pur-
suant to appropriation Acts for fiscal years 
1997 through 2002 or any other subsequent ap-
propriations for incremental vouchers for non- 
elderly disabled families, guidance to ensure 
that such vouchers continue to be provided 
upon turnover to qualified persons with disabil-
ities or to qualified non-elderly disabled fami-
lies, respectively.’’. 
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(2) 
UNEXPENDED
AMOUNTS.—Unexpended 
amounts made available in prior year appropriations 
Acts for the Department of Housing and Urban De-
velopment under the heading ‘‘Housing for Persons 
with Disabilities’’ or the heading ‘‘Housing for Spe-
cial Populations’’ for contracts under section 811 of 
the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 8013) shall be available until ex-
pended for renewal of vouchers converted under sec-
tion 811(d)(4)(B) of the Cranston-Gonzalez Na-
tional 
Affordable 
Housing 
Act 
(42 
U.S.C. 
8013(d)(4)(B)), as amended by paragraph (1) of 
this subsection, notwithstanding the period of avail-
ability for such amounts established in such prior 
appropriations Acts. The Secretary may reallocate 
such amounts to administering entities for the pur-
pose of establishing a reserve in an amount deter-
mined by the Secretary up to the amount as may be 
otherwise established by law. 
(3) TECHNICAL ASSISTANCE.—The Secretary of 
Housing and Urban Development may, to the extent 
amounts are made available in appropriations Acts, 
provide technical assistance to public housing agen-
cies and other administering entities to facilitate 
using vouchers to provide permanent supportive 
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100 
housing for persons with disabilities, to assist States 
to reduce reliance on segregated restrictive settings 
for people with disabilities to meet community care 
requirements, to end chronic homelessness (as 
‘‘chronically homeless’’ is defined in section 401 of 
the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11361)), and for other related purposes. 
(d) INCOME ELIGIBILITY.—Paragraph (6) of section 
16(c) (42 U.S.C. 1437n(c)(6)) is amended by adding at 
the end the following new subparagraph: 
‘‘(H) The property-based contract program 
under section 8(n).’’. 
(e) ENFORCEMENT PROVISIONS.—Section 29 of the 
United States Housing Act of 1937 (42 U.S.C. 1437z– 
1) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (B), by striking 
‘‘and’’ after the semicolon; 
(ii) in subparagraph (C) by striking 
‘‘that has an identity of interest with the 
owner or the general partner of a partner-
ship owner of the property;’’ and inserting 
‘‘; and’’; and 
VerDate Mar 15 2010 
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101 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(D) any member of a limited liability 
company that is the owner of such property or 
is the general partner of a limited partnership 
owner or is a partner of a general partnership 
owner.’’; 
(B) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A) by inserting ‘‘or use agree-
ment,’’ before the comma; 
(ii) in subparagraph (A), by striking 
‘‘or’’ at the end; 
(iii) in subparagraph (B), by striking 
the period at the end and inserting a semi-
colon; and 
(iv) by adding at the end the following 
new subparagraphs: 
‘‘(C) failure of an owner of a property re-
ceiving project-based assistance under section 8 
to submit an annual audited financial statement 
to the Secretary in the form and manner estab-
lished by the Secretary; 
‘‘(D) failure of an owner of a property re-
ceiving project-based assistance under section 8 
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102 
to provide management for the property that is 
acceptable to the Secretary pursuant to regula-
tions and requirements of the Secretary, includ-
ing— 
‘‘(i) proper fiscal management; 
‘‘(ii) proper handling of vacancies and 
tenanting in accordance with regulations 
set forth by the Secretary; 
‘‘(iii) appropriate handling of rent col-
lection; 
‘‘(iv) proper property maintenance; 
and 
‘‘(v) compliance with regulations set 
forth by the Secretary on tenant organiza-
tion; 
‘‘(E) failure to provide access to the books, 
records, and accounts related to the operations 
of the project; or 
‘‘(F) failure to permit physical access to 
the property or any unit of the property.’’; and 
(C) 
in 
paragraph 
(3), 
by 
striking 
‘‘$25,000’’ and inserting ‘‘$37,500’’; and 
(2) in subsection (c)(1)— 
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