‘‘(ii) is a person with disabilities who 
is 18 years of age or older and resides in 
the household, 
$500 for each such member. 
‘‘(D) CHILD CARE.—The amount, if any, 
that exceeds 10 percent of annual family income 
that is used to pay for unreimbursed child care 
expenses, which shall include child care for pre-
school-age children, for before- and after-care for 
children in school, and for other child care nec-
essary to enable a member of the family to be 
employed or further his or her education. 
‘‘(E) HEALTH AND MEDICAL EXPENSES.— 
The amount, if any, by which 10 percent of an-
nual family income is exceeded by the sum of— 
‘‘(i) in the case of any elderly or dis-
abled family, any unreimbursed health and 
medical care expenses; and 
‘‘(ii) any unreimbursed reasonable at-
tendant care and auxiliary apparatus ex-
penses for each handicapped member of the 
family, to the extent necessary to enable any 
member of such family to be employed. 
‘‘(F) PERMISSIVE DEDUCTIONS.—Such ad-
ditional deductions as a public housing agency 
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may, at its discretion, establish, except that the 
Secretary shall establish procedures to ensure 
that such deductions do not materially increase 
Federal expenditures. 
The Secretary shall annually calculate the amounts of 
the deductions under subparagraphs (B) and (C), as 
such amounts may have been previously calculated, 
by applying an inflationary factor as the Secretary 
shall, by regulation, establish, except that the actual 
deduction determined for each year shall be estab-
lished by rounding such amount to the next lowest 
multiple of $25.’’. 
(c) HOUSING CHOICE VOUCHER PROGRAM.—Para-
graph (5) of section 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(5)) is amended— 
(1) in the paragraph heading, by striking ‘‘AN-
NUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 
(2) in subparagraph (A)— 
(A) by striking ‘‘the provisions of’’ and in-
serting ‘‘paragraphs (7) and (8) of section 3(a) 
and to’’; and 
(B) by striking ‘‘and shall be conducted 
upon the initial provision of housing assistance 
for the family and thereafter not less than annu-
ally’’; and 
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(3) in subparagraph (B), by striking the second 
sentence. 
(d) 
ENHANCED
VOUCHER
PROGRAM.—Section 
8(t)(1)(D) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ 
each place such term appears and inserting ‘‘annual ad-
justed income’’. 
(e) PROJECT-BASED HOUSING.—Paragraph (3) of sec-
tion 8(c) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(c)(3)) is amended by striking the last sentence. 
(f) IMPACT ON PUBLIC HOUSING REVENUES.— 
(1) ADJUSTMENTS TO OPERATING FORMULA.—If 
the Secretary of Housing and Urban Development de-
termines that the application of the amendments 
made by this section results in a material and dis-
proportionate reduction in the rental income of cer-
tain public housing agencies during the first year in 
which the amendments made by this section are im-
plemented, the Secretary may make appropriate ad-
justments in the formula income for such year of those 
agencies experiencing such a reduction. 
(2) HUD REPORTS ON REVENUE AND COST IM-
PACT.—In each of the first two years after the first 
year in which the amendments made by this section 
are implemented, the Secretary of Housing and 
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Urban Development shall submit a report to Congress 
identifying and calculating the impact of changes 
made by the amendments made by this section and 
sections 4 and 5 of this Act on the revenues and costs 
of operating public housing units, the voucher pro-
gram for rental assistance under section 8 of the 
United States Housing Act of 1937, and the program 
under such section 8 for project-based rental assist-
ance. If such report identifies a material reduction in 
the net income of public housing agencies nationwide 
or a material increase in the costs of funding the 
voucher program or the project-based assistance pro-
gram, the Secretary shall include in such report rec-
ommendations for legislative changes to reduce or 
eliminate such a reduction. 
(g) EFFECTIVE DATE.—The amendments made by this 
section shall take effect during the first calendar year after 
regulations or notice has been adopted to implement such 
amendments, except that the Secretary may delay such ef-
fective date by one year upon a determination that such 
delay is necessary for public housing agencies and owners 
to make the necessary changes to comply with such amend-
ments. 
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SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS 
AND INCOME. 
(a) ASSETS.—Section 16 of the United States Housing 
Act of 1937 (42 U.S.C. 1437n) is amended by inserting 
after subsection (d) the following new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS-
SETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to para-
graph (3) and notwithstanding any other provision of 
this Act, a dwelling unit assisted under this Act may 
not be rented and assistance under this Act may not 
be provided, either initially or at each recertification 
of family income, to any family— 
‘‘(A) 
whose 
net 
family 
assets 
exceed 
$100,000, as such amount is adjusted annually 
by applying an inflationary factor as the Sec-
retary considers appropriate; or 
‘‘(B) who has a present ownership interest 
in, a legal right to reside in, and the effective 
legal authority to sell, real property that is suit-
able for occupancy as a residence, except that the 
prohibition under this subparagraph shall not 
apply to— 
‘‘(i) any property for which the family 
is receiving assistance under this Act; 
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‘‘(ii) any person that is a victim of do-
mestic violence; or 
‘‘(iii) any family that is offering such 
property for sale. 
‘‘(2) NET FAMILY ASSETS.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘net family assets’ means, 
for all members of the household, the net cash 
value of all assets after deducting reasonable 
costs that would be incurred in disposing of real 
property, savings, stocks, bonds, and other forms 
of capital investment. Such term does not in-
clude interests in Indian trust land, equity ac-
counts in homeownership programs of the De-
partment of Housing and Urban Development, 
or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not in-
clude— 
‘‘(i) the value of personal property, ex-
cept for items of personal property of sig-
nificant value, as the Secretary may estab-
lish or the public housing agency may de-
termine; 
‘‘(ii) the value of any retirement ac-
count; 
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‘‘(iii) real property for which the fam-
ily does not have the effective legal author-
ity necessary to sell such property; 
‘‘(iv) any amounts recovered in any 
civil action or settlement based on a claim 
of malpractice, negligence, or other breach of 
duty owed to a member of the family and 
arising out of law, that resulted in a mem-
ber of the family being disabled; 
‘‘(v) the value of any Coverdell edu-
cation savings account under section 530 of 
the Internal Revenue Code of 1986 or any 
qualified tuition program under section 529 
of such Code; and 
‘‘(vi) such other exclusions as the Sec-
retary may establish. 
‘‘(C) TRUST FUNDS.—In cases in which a 
trust fund has been established and the trust is 
not revocable by, or under the control of, any 
member of the family or household, the value of 
the trust fund shall not be considered an asset of 
a family if the fund continues to be held in trust. 
Any income distributed from the trust fund shall 
be considered income for purposes of section 3(b) 
and any calculations of annual family income, 
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except in the case of medical expenses for a 
minor. 
‘‘(3) SELF-CERTIFICATION.— 
‘‘(A) NET FAMILY ASSETS.—A public hous-
ing agency or owner may determine the net as-
sets of a family, for purposes of this section, 
based on a certification by the family that the 
net assets of such family do not exceed $50,000. 
‘‘(B) NO CURRENT REAL PROPERTY OWNER-
SHIP.—A public housing agency or owner may 
determine compliance with paragraph (1)(B) 
based on a certification by the family that such 
family does not have any current ownership in-
terest in any real property at the time the agen-
cy or owner reviews the family’s income. 
‘‘(C) STANDARDIZED
FORMS.—The Sec-
retary may develop standardized forms for the 
certifications referred to in subparagraphs (A) 
and (B). 
‘‘(4) COMPLIANCE FOR PUBLIC HOUSING DWELL-
ING UNITS.—When recertifying family income with 
respect to families residing in public housing dwelling 
units, a public housing agency may, in the discretion 
of the agency and only pursuant to a policy that is 
set forth in the public housing agency plan under sec-
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tion 5A for the agency, choose not to enforce the limi-
tation under paragraph (1). 
‘‘(5) ELDERLY AND DISABLED FAMILIES.—When 
recertifying the income of an elderly or disabled fam-
ily residing in a dwelling unit assisted under this 
Act, a public housing agency or owner may choose not 
to enforce the limitation under paragraph (1) or may 
establish exceptions to such limitation based on eligi-
bility criteria, but only pursuant to a policy that is 
set forth in the public housing agency plan under sec-
tion 5A for the agency or under a policy adopted by 
the owner. Eligibility criteria for establishing excep-
tions may provide for separate treatment for elderly 
and disabled families and may be based on different 
factors, such as age, income, the ability of the family 
to find suitable alternative housing, and whether sup-
portive services are being provided. 
‘‘(6) AUTHORITY TO DELAY EVICTIONS.—In the 
case of a family residing in a dwelling unit assisted 
under this Act who does not comply with the limita-
tion under paragraph (1), the public housing agency 
or project owner may delay eviction or termination of 
the family based on such noncompliance for a period 
of not more than 6 months.’’. 
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(b) INCOME.—The United States Housing Act of 1937 
is amended— 
(1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), 
by striking the first sentence and inserting the fol-
lowing: ‘‘Dwelling units assisted under this Act may 
be rented, and assistance under this Act may be pro-
vided, whether initially or at time of recertification, 
only to families who are low-income families at the 
time such initial or continued assistance, respectively, 
is provided, except that families residing in dwelling 
units as of the date of the enactment of the Section 
8 Voucher Reform Act of 2009 that, under agreements 
in effect on such date of enactment, may have incomes 
up to 95 percent of local area median income shall 
continue to be eligible for assistance at recertification 
as long as they continue to comply with such income 
restrictions. When recertifying family income with re-
spect to families residing in public housing dwelling 
units, a public housing agency may, in the discretion 
of the agency and only pursuant to a policy that is 
set forth in the public housing agency plan under sec-
tion 5A for the agency, choose not to enforce the pro-
hibition under the preceding sentence. When recerti-
fying family income with respect to families residing 
in dwelling units for which project-based assistance is 
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provided, a project owner may, in the owner’s discre-
tion and only pursuant to a policy adopted by such 
owner, choose not to enforce such prohibition. In the 
case of a family residing in a dwelling unit assisted 
under this Act who does not meet the requirements 
under the first sentence of this paragraph or the re-
quirements under section 8(o)(4), the public housing 
agency or project owner may delay eviction or termi-
nation of the family based on such noncompliance for 
a period of not more than 6 months.’’; 
(2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by 
striking the matter preceding subparagraph (A) and 
inserting the following: 
‘‘(4) ELIGIBLE FAMILIES.—Assistance under this 
subsection may be provided, whether initially or at 
each recertification, only pursuant to subsection (t) to 
a family eligible for assistance under such subsection 
or to a family who at the time of such initial or con-
tinued assistance, respectively, is a low-income family 
that is—’’; and 
(3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by 
striking ‘‘at the time it initially occupied such dwell-
ing unit’’ and inserting ‘‘according to the restrictions 
under section 3(a)(1)’’. 
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SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORKING 
FAMILIES. 
(a) VOUCHERS.—Section 16(b)(1) of the United States 
Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (A) the poverty line (as such 
term is defined in section 673 of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9902), includ-
ing any revision required by such section) applicable 
to a family of the size involved, or (B)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (A) of this sen-
tence shall not apply in the case of public housing 
agencies located in Puerto Rico or any other territory 
or possession of the United States’’. 
(b) PUBLIC HOUSING.—Section 16(a)(2)(A) of the 
United 
States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437n(a)(2)(A)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (i) the poverty line (as such 
term is defined in section 673 of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9902), includ-
ing any revision required by such section) applicable 
to a family of the size involved, or (ii)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (i) of this sentence 
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shall not apply in the case of projects located in Puer-
to Rico or any other territory or possession of the 
United States’’. 
(c) PROJECT-BASED SECTION 8 ASSISTANCE.—Section 
16(c)(3) of the United States Housing Act of 1937 (42 
U.S.C. 1437n(c)(3)) is amended— 
(1) by inserting after ‘‘do not exceed’’ the fol-
lowing: ‘‘the higher of (A) the poverty line (as such 
term is defined in section 673 of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9902), includ-
ing any revision required by such section) applicable 
to a family of the size involved, or (B)’’; and 
(2) by inserting before the period at the end the 
following: ‘‘; and except that clause (A) of this sen-
tence shall not apply in the case of projects located in 
Puerto Rico or any other territory or possession of the 
United States’’. 
SEC. 6. VOUCHER RENEWAL FUNDING. 
(a) IN GENERAL.—Section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) is amended by strik-
ing subsection (dd) and inserting the following new sub-
section: 
‘‘(dd) TENANT-BASED VOUCHERS.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated, for each of 
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fiscal years 2010 through 2014, such sums as may be 
necessary for tenant-based assistance under subsection 
(o) for the following purposes: 
‘‘(A) To renew all expiring annual con-
tributions contracts for tenant-based rental as-
sistance. 
‘‘(B) To provide tenant-based rental assist-
ance for— 
‘‘(i) conversion of section 23 projects to 
assistance under this section; 
‘‘(ii) the family unification program 
under subsection (x) of this section; 
‘‘(iii) relocation of witnesses in connec-
tion with efforts to combat crime in public 
and assisted housing pursuant to a request 
from a law enforcement or prosecution 
agency; 
‘‘(iv) enhanced vouchers authorized 
under subsection (t) of this section; 
‘‘(v) relocation or replacement in con-
nection with the HOPE VI program under 
section 24; 
‘‘(vi) demolition or disposition of pub-
lic housing units pursuant to section 18 of 
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the United States Housing Act of 1937 (42 
U.S.C. 1437p); 
‘‘(vii) mandatory conversions of public 
housing to vouchers, pursuant to section 33 
of the United States Housing Act of 1937, 
respectively (42 U.S.C. 1437z–5); 
‘‘(viii) voluntary conversions of public 
housing to vouchers, pursuant to section 22 
of the United States Housing Act of 1937, 
respectively (42 U.S.C. 1437t); 
‘‘(ix) vouchers necessary to comply 
with a consent decree or court order; 
‘‘(x) tenant protection vouchers in con-
nection with dwelling units that cease to re-
ceive project-based assistance under sub-
section (b), (c), (d), (e), or (v) of this sec-
tion; 
‘‘(xi) 
relocation 
and 
replacement 
vouchers in connection with public housing 
units that are demolished or disposed of 
pursuant to eminent domain, pursuant to a 
homeownership program, or in connection 
with a mixed finance development method 
under section 35 or otherwise; 
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‘‘(xii) vouchers used for the preserva-
tion of public housing units not included in 
the operating formula under section 9(e)(2) 
of the United States Housing Act of 1937 
(42 U.S.C. 1437g(e)(2)); 
‘‘(xiii) emergency voucher assistance 
for the protection of victims of domestic vio-
lence, dating violence, sexual assault, or 
stalking; 
‘‘(xiv) tenant protection vouchers in 
connection with the foreclosure or disposi-
tion of multifamily housing subject to a 
mortgage insured and subsidized under the 
National Housing Act; and 
‘‘(xv) tenant protection assistance, in-
cluding replacement and relocation assist-
ance. 
Subject only to the availability of sufficient 
amounts provided in appropriation Acts, the 
Secretary shall provide tenant-based rental as-
sistance in connection with all dwelling units 
that cease to be available as assisted housing as 
a result of clauses (i), (iv), (v), (vi), (vii), (x), 
(xi), and (xiv). 
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‘‘(2) ALLOCATION OF RENEWAL FUNDING AMONG 
PUBLIC HOUSING AGENCIES.— 
‘‘(A) From amounts appropriated for each 
year pursuant to paragraph (1)(A), the Sec-
retary shall provide renewal funding for each 
public housing agency— 
‘‘(i) based on leasing and cost data 
from the preceding calendar year, as ad-
justed by an annual adjustment factor to be 
established by the Secretary, which shall be 
established using the smallest geographical 
areas for which data on changes in rental 
costs are annually available; 
‘‘(ii) by making any adjustments nec-
essary to provide for the first-time renewal 
of vouchers funded under paragraph (1)(B) 
and of any incremental vouchers funded in 
previous years; 
‘‘(iii) by making any adjustments nec-
essary for full year funding of vouchers 
moved into and out of the jurisdiction of the 
public housing agency in the prior calendar 
year pursuant to portability procedures 
under subsection (r)(2); and 
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‘‘(iv) by making such other adjust-
ments as the Secretary considers appro-
priate, including adjustments necessary to 
address changes in voucher utilization rates 
and voucher costs related to natural and 
other major disasters. 
‘‘(B) LEASING AND COST DATA.—For pur-
poses of subparagraph (A)(i), leasing and cost 
data shall be calculated annually by using the 
average for the preceding calendar year. Such 
leasing and cost data shall be adjusted to include 
vouchers that were set aside under a commitment 
to provide project-based assistance under sub-
section (o)(13) and to exclude amounts funded 
through advances under paragraph (3). Such 
leasing and cost data shall not include funds not 
appropriated for tenant-based assistance under 
section 8(o), unless the agency’s funding was 
prorated in the prior year and the agency used 
other funds to maintain vouchers in use. 
‘‘(C) OVERLEASING.—For the purpose of de-
termining allocations under subsection (A)(i), 
the leasing rate calculated for the prior calendar 
year may exceed an agency’s authorized voucher 
level, except that such calculation shall not uti-
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lize a leasing rate in excess of 103 percent of the 
leasing rate in the year preceding such prior 
year (after making appropriate adjustments for 
incremental and new enhanced vouchers) which 
results from the use of accumulated amounts, as 
referred to in the last sentence of paragraph 
(4)(A). 
‘‘(D) MOVING TO WORK; HOUSING INNOVA-
TION
PROGRAM.—Notwithstanding 
subpara-
graphs (A) and (B), each public housing agency 
participating in any year in the moving to work 
program or the housing innovation program 
under section 37 of this Act shall be funded pur-
suant to its agreement under such program and 
shall be subject to any pro rata adjustment made 
under subparagraph (F)(i). 
‘‘(E) 
UNREIMBURSED
PORTABILITY 
COSTS.—The Secretary may reimburse public 
housing agencies for increased costs related to 
portability incurred during the prior year that 
were not reimbursed pursuant to paragraph 
(4)(B)(i). 
‘‘(F) PRO RATA ALLOCATION.— 
‘‘(i) INSUFFICIENT FUNDS.—To the ex-
tent that amounts made available for a fis-
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cal year are not sufficient to provide each 
public housing agency with the full alloca-
tion for the agency determined pursuant to 
subparagraphs (A) and (D), the Secretary 
shall reduce such allocation for each agency 
on a pro rata basis, except that renewal 
funding of enhanced vouchers under section 
8(t) shall not be subject to such proration. 
‘‘(ii) EXCESS
FUNDS.—To the extent 
that amounts made available for a fiscal 
year exceed the amount necessary to provide 
each housing agency with the full allocation 
for the agency determined pursuant to sub-
paragraphs (A) and (D), such excess 
amounts shall be used for the purposes spec-
ified in paragraph (4)(B). 
‘‘(G) PROMPT FUNDING ALLOCATION.—The 
Secretary shall allocate all funds under this sub-
section for each year before the latter of (i) Feb-
ruary 15, or (ii) the expiration of the 45-day pe-
riod beginning upon the enactment of the appro-
priations Act funding such renewals. 
‘‘(3) ADVANCES.— 
‘‘(A) 
AUTHORITY.—During 
the 
last 
months of each calendar year, the Secretary shall 
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provide amounts out of any appropriations 
made pursuant to paragraph (1) for the fiscal 
year beginning on October 1 of that calendar 
year to any public housing agency, at the request 
of the agency, in an amount up to two percent 
of the allocation for the agency for such calendar 
year, subject to subparagraph (C). 
‘‘(B) USE.—Amounts advanced under sub-
paragraph (A) may be used to pay for addi-
tional voucher costs, including costs related to 
temporary overleasing. 
‘‘(C) USE OF PRIOR YEAR AMOUNTS.—Dur-
ing the last 3 months of a calendar year, if 
amounts previously provided to a public housing 
agency for tenant-based assistance for such year 
or for previous years remain unobligated and 
available to the agency— 
‘‘(i) the agency shall exhaust such 
amounts to cover any additional voucher 
costs 
under 
subparagraph 
(B) 
before 
amounts advanced under subparagraph (A) 
may be so used; and 
‘‘(ii) the amount that may be advanced 
under subparagraph (A) to the agency shall 
be reduced by an amount equal to the total 
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of such previously provided and unobligated 
amounts. 
‘‘(D) 
REPAYMENT.—Amounts 
advanced 
under subparagraph (A) in a calendar year shall 
be repaid to the Secretary in the subsequent cal-
endar year by offsetting the amounts made avail-
able for such agency for such subsequent calendar 
year pursuant to allocation under paragraph (2) 
by an amount equal to the amount so advanced 
to the agency. 
‘‘(4) OFFSET.— 
‘‘(A) IN GENERAL.—The Secretary shall off-
set, from amounts provided under the annual 
contributions contract for a public housing agen-
cy for a calendar year, all accumulated amounts 
allocated under paragraph (2) and from previous 
years that are unused by the agency at the end 
of each calendar year, except for an amount not 
less than 6 percent of such amount allocated to 
the agency pursuant to paragraph (2) for the 
preceding calendar year. Notwithstanding any 
other provision of law, each public housing agen-
cy may retain all amounts not offset under this 
subparagraph, and may use such amounts for all 
authorized purposes. 
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‘‘(B) REALLOCATION.—Not later than the 
latter of April 1 of each calendar year or 75 
days after the enactment of an appropriations 
Act providing funding for voucher renewal costs, 
the Secretary shall, from amounts available pur-
suant to paragraph (2)(E) and from any other 
available amounts appropriated for such pur-
pose— 
‘‘(i) set aside and subsequently make 
available such amounts as the Secretary 
considers likely to be needed, when combined 
with funds from a central fund or any other 
source of funds appropriated or made avail-
able for such purpose, to reimburse public 
housing agencies for increased costs related 
to portability and family self-sufficiency ac-
tivities pursuant to section 23(h) during 
such year; and 
‘‘(ii) reallocate all remaining amounts 
among public housing agencies, with pri-
ority given based on the extent to which an 
agency has utilized the amount allocated 
under paragraph (2) for the agency to serve 
eligible families and the relative need for 
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additional voucher assistance for use only to 
increase voucher leasing rates.’’. 
(b) PORTABILITY.—The Secretary of Housing and 
Urban Development shall, not later than the expiration of 
the 6-month period beginning on the date of the enactment 
of this Act, issue a proposed rule for comment to modify 
the regulations governing the responsibilities of public hous-
ing agencies in cases in which families assisted with tenant- 
based assistance under section 8 of the United States Hous-
ing Act of 1937 exercise their right to move to a different 
jurisdiction under the Secretary’s regulations regarding 
portability procedures (24 C.F.R. 982.355), to eliminate, or 
minimize to the greatest extent feasible consistent with 
available funding, billing between agencies and administra-
tive barriers to families’ choices of where to reside, without 
undermining the ability of public housing agencies to serve 
their waiting lists. The Secretary shall finalize regulations 
modifying such portability procedures in accordance with 
this subsection not later than the expiration of the 12-month 
period beginning upon the date of the enactment of this Act. 
(c) VOUCHERS FOR PERSONS WITH DISABILITIES AND 
HOMELESS VETERANS.—The Secretary of Housing and 
Urban Development shall develop and issue, to public hous-
ing agencies that have received voucher assistance under 
section 8(o) for non-elderly disabled families, or under sec-
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tion 8(o)(19) for homeless veterans, pursuant to appropria-
tions Acts for fiscal year 1997 and fiscal years thereafter, 
guidance to ensure that, to the maximum extent practicable, 
such vouchers continue to be provided upon turnover to 
qualified non-elderly disabled families or homeless veterans, 
respectively. 
SEC. 7. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—Section 8(q) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended— 
(1) in paragraph (1)— 
(A) by striking subparagraphs (B) and (C) 
and inserting the following new subparagraphs: 
‘‘(B) CALCULATION.—The fee under this 
subsection shall— 
‘‘(i) be payable to each public housing 
agency for each month for which a dwelling 
unit is covered by an assistance contract; 
‘‘(ii) be based on a per-unit fee, which 
shall be based on the per-unit fee payable to 
the agency in fiscal year 2003 and updated 
for each subsequent year as specified in sub-
section (iv), or on such formula which the 
Secretary may, by regulation, establish 
using a per-unit fee structure which shall 
provide for the payment of the full cost of 
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administering vouchers, and which may in-
clude performance incentives consistent with 
subsection (o)(21); 
‘‘(iii) include an amount for the cost of 
issuing a voucher to new participants; 
‘‘(iv) be updated each year using an 
index of changes in wage and benefit data 
or other objectively measurable data that re-
flect the costs of administering the program 
for such assistance, as determined by the 
Secretary; and 
‘‘(v) include an amount for the cost of 
family self-sufficiency coordinators, as pro-
vided in section 23(h)(1). 
‘‘(C) PUBLICATION.—The Secretary shall 
cause to be published in the Federal Register the 
fee rate for each geographic area.’’; and 
(B) by striking subparagraph (E) and in-
serting the following new subparagraph; 
‘‘(E) FEE FOR AGENCY-OWNED UNITS.—The 
Secretary shall establish a fee for dwelling units 
owned by a public housing agency that reflects 
reasonable costs of administration, which shall 
take into consideration the third-party inspec-
tion and rent determination expenses incurred 
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in compliance with the requirements of sub-
section (o)(11).’’; and 
(2) in paragraph (4), by striking ‘‘1999’’ and in-
serting ‘‘2010’’. 
(b) ADMINISTRATIVE FEES FOR FAMILY SELF-SUFFI-
CIENCY PROGRAM COSTS.—Subsection (h) of section 23 of 
the United States Housing Act of 1937 (42 U.S.C. 
1437u(h)) is amended by striking paragraph (1) and insert-
ing the following new paragraph: 
‘‘(1) SECTION 8 FEES.— 
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish a fee under section 8(q) for the costs in-
curred in administering the self-sufficiency pro-
gram under this section to assist families receiv-
ing voucher assistance through section 8(o). 
‘‘(B) ELIGIBILITY FOR FEE.—The fee shall 
provide funding for family self-sufficiency coor-
dinators as follows: 
‘‘(i) BASE
FEE.—A public housing 
agency serving 25 or more participants in 
the family self-sufficiency program under 
this section shall receive a fee equal to the 
costs of employing one full-time family self- 
sufficiency coordinator. An agency serving 
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fewer than 25 such participants shall re-
ceive a prorated fee. 
‘‘(ii) ADDITIONAL
FEE.—An agency 
that meets minimum performance standards 
shall receive an additional fee sufficient to 
cover the costs of employing a second family 
self-sufficiency coordinator if the agency has 
75 or more participating families, and a 
third such coordinator if it has 125 or more 
participating families. 
‘‘(iii) PREVIOUSLY
FUNDED
AGEN-
CIES.—An agency that received funding 
from the Department of Housing and 
Urban Development for more than three 
such coordinators in any of fiscal years 
1998 through 2009 shall receive funding for 
the highest number of coordinators funded 
in a single fiscal year during that period, 
provided they meet applicable size and per-
formance standards. 
‘‘(iv) INITIAL YEAR.—For the first year 
in which a public housing agency exercises 
its right to develop an family self-suffi-
ciency program for its residents, it shall be 
entitled to funding to cover the costs of up 
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to one family self-sufficiency coordinator, 
based on the size specified in its action plan 
for such program. 
‘‘(v) STATE
AND
REGIONAL
AGEN-
CIES.—For purposes of calculating the fam-
ily self-sufficiency portion of the adminis-
trative fee under this subparagraph, each 
administratively distinct part of a State or 
regional public housing agency shall be 
treated as a separate agency. 
‘‘(vi) DETERMINATION OF NUMBER OF 
COORDINATORS.—In determining whether a 
public housing agency meets a specific 
threshold for funding pursuant to this para-
graph, the number of participants being 
served by the agency in its family self-suffi-
ciency program shall be considered to be the 
average number of families enrolled in such 
agency’s program during the course of the 
most recent fiscal year for which the De-
partment of Housing and Urban Develop-
ment has data. 
‘‘(C) PRORATION.—If insufficient funds are 
available in any fiscal year to fund all of the co-
ordinators authorized under this section, the first 
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priority shall be given to funding one coordi-
nator at each agency with an existing family 
self-sufficiency program. The remaining funds 
shall be prorated based on the number of remain-
ing coordinators to which each agency is entitled 
under this subparagraph. 
‘‘(D) 
RECAPTURE.—Any 
fees 
allocated 
under this subparagraph by the Secretary in a 
fiscal year that have not been spent by the end 
of the subsequent fiscal year shall be recaptured 
by the Secretary and shall be available for pro-
viding additional fees pursuant to subparagraph 
(B)(ii). 
‘‘(E) PERFORMANCE
STANDARDS.—Within 
six months after the date of the enactment of this 
paragraph, the Secretary shall publish a pro-
posed rule specifying the performance standards 
applicable to funding under clauses (ii) and (iii) 
of subparagraph (B). Such standards shall in-
clude requirements applicable to the leveraging of 
in-kind services and other resources to support 
the goals of the family self-sufficiency program. 
‘‘(F) DATA
COLLECTION.—Public housing 
agencies receiving funding under this paragraph 
shall collect and report to the Secretary, in such 
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manner as the Secretary shall require, informa-
tion on the performance of their family self-suffi-
ciency programs. 
‘‘(G) EVALUATION.—The Secretary shall 
conduct a formal and scientific evaluation of the 
effectiveness of well-run family self-sufficiency 
programs, comparing outcomes of families par-
ticipating in such programs with families who 
are not, using random assignment of partici-
pants to the extent practicable. Not later than 
the expiration of the 4-year period beginning 
upon the enactment of this paragraph, the Sec-
retary shall submit an interim evaluation report 
to the Congress. Not later than the expiration of 
the 8-year period beginning upon such enact-
ment, the Secretary shall submit a final evalua-
tion report to the Congress. There is authorized 
to be appropriated $10,000,000 to carry out the 
evaluation under this subparagraph. 
‘‘(H) INCENTIVES
FOR
INNOVATION
AND 
HIGH
PERFORMANCE.—The Secretary may re-
serve up to 10 percent of the amounts made 
available for administrative fees under this 
paragraph to provide support to or reward fam-
ily self-sufficiency programs that are particu-
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larly innovative or highly successful in achieving 
the goals of the program.’’. 
(c) REPEAL.—Section 202 of the Departments of Vet-
erans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997 (42 U.S.C. 
1437f note; Public Law 104–204; 110 Stat. 2893) is hereby 
repealed. 
SEC. 8. HOMEOWNERSHIP. 
(a) SECTION 8 HOMEOWNERSHIP DOWNPAYMENT PRO-
GRAM.—Section 8(y)(7) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(y)(7)) is amended by striking sub-
paragraphs (A) and (B) and inserting the following new 
subparagraphs: 
‘‘(A) IN GENERAL.—Subject to the provi-
sions of this paragraph, in the case of a family 
on whose behalf rental assistance under section 
8(o) has been provided for a period of not less 
than 12 months prior to the date of receipt of 
downpayment assistance under this paragraph, 
a public housing agency may, in lieu of pro-
viding monthly assistance payments under this 
subsection on behalf of a family eligible for such 
assistance and at the discretion of the agency, 
provide a downpayment assistance grant in ac-
cordance with subparagraph (B). 
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‘‘(B) GRANT REQUIREMENTS.—A downpay-
ment assistance grant under this paragraph— 
‘‘(i) shall be used by the family only as 
a contribution toward the downpayment 
and reasonable and customary closing costs 
required in connection with the purchase of 
a home; 
‘‘(ii) shall be in the form of a single 
one-time grant; and 
‘‘(iii) may not exceed $10,000. 
‘‘(C) NO EFFECT ON OBTAINING OUTSIDE 
SOURCES FOR DOWNPAYMENT ASSISTANCE.—This 
Act may not be construed to prohibit a public 
housing agency from providing downpayment 
assistance to families from sources other than a 
grant provided under this Act, or as determined 
by the public housing agency. 
‘‘(D) COUNSELING AND SELF-SUFFICIENCY 
PROGRAMS.—A public housing agency may re-
quire prepurchase housing counseling or partici-
pation in a self-sufficiency program as a condi-
tion of a family receiving downpayment assist-
ance under this paragraph.’’. 
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(b) USE OF VOUCHERS FOR MANUFACTURED HOUS-
ING.—Section 8(o)(12) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(12)) is amended— 
(1) in subparagraph (A), by striking the period 
at the end of the first sentence and all that follows 
through ‘‘of’’ in the second sentence and inserting 
‘‘and rents’’; and 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘the rent’’ and 
all that follows and inserting the following: ‘‘rent 
shall mean the sum of the monthly payments 
made by a family assisted under this paragraph 
to amortize the cost of purchasing the manufac-
tured home, including any required insurance 
and property taxes, the monthly amount allowed 
for tenant-paid utilities, and the monthly rent 
charged for the real property on which the man-
ufactured home is located, including monthly 
management and maintenance charges.’’; 
(B) by striking clause (ii); and 
(C) in clause (iii)— 
(i) by inserting after the period at the 
end the following: ‘‘If the amount of the 
monthly assistance payment for a family 
exceeds the monthly rent charged for the 
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real property on which the manufactured 
home is located, including monthly manage-
ment and maintenance charges, a public 
housing agency may pay the remainder to 
the family, lender or utility company, or 
may choose to make a single payment to the 
family for the entire monthly assistance 
amount.’’; and 
(ii) by redesignating such clause as 
clause (ii). 
SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT 
REPORTING AGENCIES. 
Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a), as amended by the preceding provisions 
of this Act, is further amended by adding at the end the 
following new subsection: 
‘‘(e) PHA REPORTING OF RENT PAYMENTS TO CREDIT 
REPORTING AGENCIES.— 
‘‘(1) AUTHORITY.—To the extent that an indi-
vidual receiving tenant-based housing choice vouchers 
under section 8 by a public housing agency agrees in 
writing to reporting under this subsection, the public 
housing agency may submit to consumer reporting 
agencies described in section 603(p) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a) information regard-
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ing the past rent payment history of the individual 
with respect to the dwelling unit for which such as-
sistance is provided. 
‘‘(2) FORMAT.—The Secretary, after consultation 
with consumer reporting agencies referred in para-
graph (1), shall establish a system and format to be 
used by public housing agencies for reporting of infor-
mation under such paragraph that provides such in-
formation in a format and manner that is similar to 
other credit information submitted to such consumer 
reporting agencies and is usable by such agencies.’’. 
SEC. 10. PERFORMANCE ASSESSMENTS. 
Section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)) is amended by adding at the end the 
following new paragraph: 
‘‘(21) PERFORMANCE ASSESSMENTS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Secretary 
shall, by regulation, establish standards and pro-
cedures for assessing the performance of public 
housing agencies in carrying out the programs 
for tenant-based rental assistance under this sub-
section and for homeownership assistance under 
subsection (y). 
‘‘(B) CONTENTS.—The standards and proce-
dures under this paragraph shall provide for as-
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sessment of the performance of public housing 
agencies in the following areas: 
‘‘(i) Extent to which dwelling units 
comply with housing quality standards, in-
cluding compliance with inspection require-
ments. 
‘‘(ii) Extent of utilization of assistance 
amounts provided to the agency and of au-
thorized vouchers, using appropriate adjust-
ments for vouchers set aside to meet com-
mitments under paragraph (13). 
‘‘(iii) Timeliness and accuracy of re-
porting by the agency to the Secretary. 
‘‘(iv) Effectiveness in carrying out 
policies that result in deconcentration of 
poverty and reduction of racial segregation. 
‘‘(v) Reasonableness of rent burdens, 
consistent with public housing agency re-
sponsibilities under section 8(o)(1)(E)(iii). 
‘‘(vi) Accurate calculations of rent, 
utility allowances, and subsidy payments. 
‘‘(vii) Effectiveness in carrying out 
family self-sufficiency activities. 
‘‘(viii) Timeliness of actions related to 
landlord participation. 
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‘‘(ix) Compliance with targeting re-
quirements under section 16(b). 
‘‘(x) Such other areas as the Secretary 
considers appropriate, which may only be 
established by regulation. 
‘‘(C) BIENNIAL
ASSESSMENT.—Not later 
than 2 years after the date of enactment of this 
paragraph, and at least every 2 years thereafter, 
the Secretary, using the standards and proce-
dures established under this paragraph, shall— 
‘‘(i) conduct an assessment of the per-
formance of each public housing agency car-
rying out a program referred to in subpara-
graph (A); 
‘‘(ii) make such assessment available to 
the public housing agency and to the public 
via the website of the Department of Hous-
ing and Urban Development; and 
‘‘(iii) submit a report to Congress re-
garding the results of each such assessment. 
‘‘(D) APPLICABILITY.—When implemented, 
the performance assessment standards and proce-
dures under this paragraph shall supercede the 
Section 8 Management Assessment Program of 
the Secretary then in effect.’’. 
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SEC. 11. PHA PROJECT-BASED ASSISTANCE. 
Section 8(o)(13) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(13)) is amended— 
(1) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), not more than 25 percent of the fund-
ing available for tenant-based assistance 
under this section that is administered by 
the agency may be attached to structures 
pursuant to this paragraph. 
‘‘(ii) EXCEPTION.—An agency may at-
tach up to an additional 5 percent of the 
funding available for tenant-based assist-
ance under this section to structures pursu-
ant to this paragraph for dwelling units 
that house individuals and families that 
meet the definition of homeless under section 
103 of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11302), that provide 
supportive housing to persons with disabil-
ities, 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 regula-
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tion, establish additional categories for the 
exception under this clause.’’; 
(2) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) INCOME MIXING REQUIREMENT.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), not more than the greater of 
25 dwelling units or 25 percent of the dwell-
ing units in any project may be assisted 
under a housing assistance payment con-
tract for project-based assistance pursuant 
to this paragraph. For purposes of this sub-
paragraph, the term ‘project’ means a single 
building, multiple contiguous buildings, or 
multiple buildings on contiguous parcels of 
land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) 
CERTAIN
HOUSING.—The 
limitation under clause (i) shall not 
apply in the case of assistance under a 
contract for housing consisting of sin-
gle family properties, or for dwelling 
units that are exclusively made avail-
able for households comprised of elderly 
families, disabled families, and fami-
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lies receiving supportive services for 
special needs populations, such as in-
dividuals who were formerly homeless. 
For purposes of the preceding sentence, 
the term ‘single family properties’ 
means buildings with no more than 
four dwelling units. 
‘‘(II) CERTAIN AREAS.— 
‘‘(aa) With respect to areas 
in which fewer than 75 percent of 
families issued vouchers become 
participants in the program, the 
public housing agency has estab-
lished the payment standard at 
110 percent of the fair market 
rent for all census tracts in the 
area for the previous six months, 
the public housing agency has re-
quested a higher payment stand-
ard, and the public housing agen-
cy grants an automatic extension 
of 90 days (or longer) to families 
with vouchers who are attempting 
to find housing, clause (i) shall be 
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applied by substituting ‘40 per-
cent’ for ‘25 percent’; and 
‘‘(bb) With respect to census 
tracts with a poverty rate of 20 
percent or less, clause (i) shall be 
applied by substituting ‘50 per-
cent’ for ‘25 percent’ and the Sec-
retary may, by regulation, estab-
lish additional conditions.’’; 
(3) in subparagraph (J)— 
(A) by striking the fifth and sixth sentences 
and inserting the following: ‘‘A public housing 
agency may establish and utilize procedures for 
maintaining site-based waiting lists under which 
applicants may apply directly at, or otherwise 
designate 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 sub-
section shall be permitted to place their names 
on such separate list. All such procedures shall 
comply with title VI of the Civil Rights Act of 
1964, the Fair Housing Act, and other applica-
ble civil rights laws. The owner or manager of a 
structure assisted under this paragraph shall not 
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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 family on 
a site-based waiting list that complies with the 
requirements of this subparagraph. A public 
housing agency shall disclose to each applicant 
all other options in the selection of a project in 
which to reside that are provided by the public 
housing agency and are available to the appli-
cant.’’; and 
(B) by inserting after the third sentence the 
following new sentence: ‘‘Any family who resides 
in a dwelling unit proposed to be assisted under 
this paragraph, or in a unit to be replaced by 
a proposed unit to be assisted under this para-
graph shall be given an absolute preference for 
selection for placement in the proposed unit, if 
the family is otherwise eligible for assistance 
under this subsection.’’; and 
(4) by adding at the end the following new sub-
paragraphs: 
‘‘(N) STRUCTURE OWNED BY AGENCY.—Not-
withstanding any other provision of law, as part 
of an initiative to improve, develop, or replace a 
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public housing site, a public housing agency may 
attach assistance to an existing, newly con-
structed, or rehabilitated structure in which the 
agency has an ownership interest or which the 
agency has control of without following a com-
petitive process, but only if the agency includes 
such initiative in its public housing agency plan 
approved under section 5A and the units that re-
ceive such assistance will not receive assistance 
under section 9. The preceding sentence may not 
be construed to limit the ability of a public hous-
ing agency to attach assistance to structures 
under other applicable law. 
‘‘(O) LEASES
AND
TENANCY.—Assistance 
provided under this paragraph shall be subject to 
the provisions of paragraph (7), except that sub-
paragraph (A) of such paragraph shall not 
apply. Notwithstanding any other provision of 
law, for the term of the contract under this para-
graph, the owner may terminate tenancy only 
for serious or repeated violations of the terms 
and conditions of the lease or for violation of ap-
plicable law. 
‘‘(P) ALLOWABLE
TRANSFERS.—A public 
housing agency may, subject to the agreement of 
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the receiving agency, transfer a portion of its 
vouchers and related budget authority to a public 
housing agency that administers a program 
under this subsection in another jurisdiction lo-
cated in the same or a contiguous metropolitan 
area or county. 
‘‘(Q) RENT
FLEXIBILITY.—If a dwelling 
unit assisted under this paragraph also receives 
funding from either of the funds established 
under section 1138 or 1339 of the Federal Hous-
ing Enterprises Financial Safety and Soundness 
Act of 1992 (12 U.S.C. 4568, 4569), the rent for 
the unit, if agreed upon by both the public hous-
ing agency and the owner, may be established at 
an amount that is less than would otherwise be 
permitted under paragraphs (1)(B) or (10)(A) of 
this section.’’. 
SEC. 12. RENT BURDENS. 
(a) REVIEWS.—Section 8(o)(1) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended 
by striking subparagraph (E) and inserting the following 
new subparagraph: 
‘‘(E) REVIEWS.— 
‘‘(i) RENT
BURDENS.—The Secretary 
shall monitor rent burdens and submit a re-
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port to the Congress annually on the per-
centage of families assisted under this sub-
section, occupying dwelling units of any 
size, that pay more than 30 percent of their 
adjusted incomes for rent and such percent-
age that pay more than 40 percent of their 
adjusted incomes for rent. Using informa-
tion regularly reported by public housing 
agencies, the Secretary shall provide public 
housing agencies, on an annual basis, a re-
port with the information described in the 
first sentence of this clause, and may re-
quire a public housing agency to modify a 
payment standard that results in a signifi-
cant percentage of families assisted under 
this subsection, occupying dwelling units of 
any size, paying more than 30 percent of 
their adjusted incomes for rent. In imple-
menting the requirements of this clause, the 
Secretary shall separate out calculations 
and consideration of families whose rent 
contributions are calculated under section 
3(a)(3) and clauses (ii) and (iii) of para-
graph (2)(A) of this subsection. 
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‘‘(ii) CONCENTRATION OF POVERTY.— 
The Secretary shall submit a report to the 
Congress annually on the degree to which 
families assisted under this subsection in 
each metropolitan area are clustered in 
lower rent, higher poverty areas, which shall 
include reporting of data by race and eth-
nicity, and how, and the extent to which, 
greater geographic distribution of such as-
sisted families could be achieved, including 
by increasing payment standards for par-
ticular communities within such metropoli-
tan areas. 
‘‘(iii) PUBLIC
HOUSING
AGENCY
RE-
SPONSIBILITIES.—Each 
public 
housing 
agency shall make publicly available the in-
formation on rent burdens provided by the 
Secretary pursuant to clause (i), and, for 
agencies located in metropolitan areas, the 
information on concentration provided by 
the Secretary pursuant to clause (ii). If a 
public housing agency has a high degree of 
concentration of poverty, as determined 
under a standard to be developed by the 
Secretary in accordance with clause (ii), or 
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if the percentage of families paying more 
than 40 percent of their adjusted net income 
exceeds a percentage level, to be established 
by the Secretary, the public housing agency 
shall adjust the payment standard to elimi-
nate excessive rent burdens within a reason-
able time period or explain its reasons for 
not making such adjustment. The Secretary 
may not deny the request of a public hous-
ing agency to set a payment standard up to 
120 percent of the fair market rent to elimi-
nate excessive rent burdens in accordance 
with the preceding sentence, except on the 
basis that an agency has not demonstrated 
that its request meets these criteria. If a re-
quest of a public housing agency has not 
been denied or approved with 45 days after 
the request is made, the request shall be con-
sidered to have been approved.’’. 
(b) 
PUBLIC
HOUSING
AGENCY
PLAN.—Section 
5A(d)(4) of the United States Housing Act of 1937 (42 
U.S.C. 1437c–1(d)(4)) is amended by inserting before the 
period at the end the following: ‘‘, including the report with 
respect to the agency furnished by the Secretary pursuant 
to section 8(o)(1)(E) concerning rent burdens and, if appli-
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cable, geographic concentration of voucher holders, any 
changes in rent or other policies the public housing agency 
is making to address excessive rent burdens or concentra-
tion, and if the public housing agency is not adjusting its 
payment standard, its reasons for not doing so’’. 
(c) RENT BURDENS FOR PERSONS WITH DISABIL-
ITIES.—Subparagraph (D) of section 8(o)(1) is amended by 
inserting before the period at the end the following: ‘‘, except 
that a public housing agency may establish a payment 
standard of not more than 120 percent of the fair market 
rent where necessary as a reasonable accommodation for a 
person with a disability, without approval of the Secretary. 
A public housing agency may seek approval of the Secretary 
to use a payment standard greater than 120 percent of the 
fair market rent as a reasonable accommodation for a per-
son with a disability. In connection with the use of any 
increased payment standard established or approved pursu-
ant to either of the preceding two sentences as a reasonable 
accommodation for a person with a disability, the Secretary 
may not establish additional requirements regarding the 
amount of adjusted income paid by such person for rent’’. 
SEC. 13. ESTABLISHMENT OF FAIR MARKET RENT. 
(a) IN GENERAL.—Paragraph (1) of section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) 
is amended— 
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(1) by inserting ‘‘(A)’’ after the paragraph des-
ignation; 
(2) by striking the seventh, eighth, and ninth 
sentences; and 
(3) by adding at the end the following: 
‘‘(B)(i) The Secretary shall define market areas for 
purposes of this paragraph in areas sufficiently distinct as 
is necessary— 
‘‘(I) to establish fair market rentals that accu-
rately reflect typical rental costs of units suitable for 
occupancy by persons assisted under this section in 
communities in metropolitan and non-metropolitan 
areas (including low poverty areas); and 
‘‘(II) to avoid concentration of voucher holders; 
while taking into consideration the factors specified in 
clause (ii). 
‘‘(ii) The factors specified in this clause are— 
‘‘(I) the efficient administration of the program 
by public housing agencies and the administrative 
costs of the Secretary of establishing additional areas; 
‘‘(II) the availability of data for a sufficient 
number of dwelling units to establish accurate fair 
market rentals; and 
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‘‘(III) the ability of public housing agencies to 
adjust the payment standard to more accurately re-
flect typical rental costs. 
‘‘(iii) The Secretary shall establish procedures to per-
mit a public housing agency to request the establishment 
of a separate market areas for either all or contiguous parts 
of the areas under the jurisdiction of such agency. The Sec-
retary shall consider and approve any such request using 
the criteria established in clause (i) and the considerations 
under clause (ii). 
‘‘(iv) The Secretary shall not reduce the fair market 
rental in a market area as a result of a change in the per-
centile of the distribution of market rents used to establish 
the fair market rental. 
‘‘(v) The Secretary shall phase in large increases or 
decreases in the fair market rentals that result from changes 
in market area boundaries or other methodological changes 
that do not reflect actual year-to-year trends in rents by 
limiting such increases or decreases to not more than 5 per-
cent each year.’’. 
(b) PAYMENT STANDARD.—Subparagraph (B) of sec-
tion 8(o)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(1)(B)) is amended by inserting before the 
period at the end the following: ‘‘, except that no public 
housing agency shall be required as a result of a reduction 
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in the fair market rental to reduce the payment standard 
applied to a family continuing to reside in a unit for which 
the family was receiving assistance under this section at 
the time the fair market rental was reduced’’. 
SEC. 14. SCREENING OF APPLICANTS. 
(a) IN
GENERAL.—Subparagraph (B) of section 
8(o)(6) of the United States Housing Act of 1937 
(1437f(o)(6)(B)) is amended— 
(1) by striking ‘‘(B) SELECTION OF TENANTS.— 
Each’’ and inserting the following: 
‘‘(B) SELECTION OF TENANTS.— 
‘‘(i) FUNCTION OF OWNER.—Each’’; 
(2) in the first sentence, by striking ‘‘unit)’’ and 
inserting ‘‘unit’’; 
(3) by striking ‘‘In addition’’ and inserting the 
following: 
‘‘(ii) SCREENING.—In addition’’; 
(4) by inserting after ‘‘establish.’’ the following: 
‘‘A public housing agency’s elective screening shall be 
limited to criteria that are directly related to an ap-
plicant’s ability to fulfill the obligations of an as-
sisted lease and shall consider mitigating cir-
cumstances related to such applicant. The require-
ments of the preceding sentence shall not limit the 
ability of a public housing agency to deny assistance 
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based on an applicant’s criminal background or any 
other permissible grounds for denial under subtitle F 
of title V of the Quality Housing and Work Responsi-
bility Act of 1998 (42 U.S.C. 13661 et seq.; relating 
to safety and security in public and assisted housing), 
subject to the procedural requirements of this section. 
Any applicant or participant determined to be ineli-
gible for admission or continued participation to the 
program shall be notified of the basis for such deter-
mination and provided, within a reasonable time 
after the determination, an opportunity for an infor-
mal hearing on such determination at which miti-
gating circumstances, including remedial conduct 
subsequent to the conduct that is the basis of such de-
termination, shall be considered.’’; and 
(5) by adding at the end the following: 
‘‘(iii) EXISTING ASSISTED FAMILIES.— 
Families being provided enhanced vouchers 
pursuant to subsection (t), families receiv-
ing assistance under this Act that are subse-
quently provided tenant-based assistance 
pursuant to subsection (dd)(1)(B), and fam-
ilies residing in multifamily housing subject 
to a mortgage insured under the National 
Housing Act that are provided tenant-based 
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assistance 
pursuant 
to 
subsection 
(dd)(1)(B)(xiv) of this section shall not be 
considered new applicants under this para-
graph and shall not be subject to elective re- 
screening by a public housing agency.’’. 
(b) LEASES AND TENANCY.—Subparagraph (E) of sec-
tion 8(o)(7) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(7)(E)) is amended by inserting ‘‘termi-
nation or’’ after ‘‘any’’ the last place such term appears. 
(c) DENIALS OF ADMISSION.—Section 576 of the Qual-
ity Housing and Work Responsibility Act of 1998 (42 
U.S.C. 13661) is amended— 
(1) in subsection (b)— 
(A) by striking paragraph (2); 
(B) in paragraph (1)— 
(i) in subparagraph (A), by inserting 
‘‘, based on documented evidence that is 
credible and objective,’’ after ‘‘determines’’; 
(ii) in subparagraph (B), by striking 
‘‘that it has reasonable’’ and all that follows 
through ‘‘by other residents’’ and inserting 
‘‘, based on documented evidence that is 
credible and objective, is a chronic abuser of 
alcohol, and who is not currently partici-
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pating in a supervised alcohol rehabilita-
tion program’’; and 
(iii) by redesignating subparagraphs 
(A) and (B) (as so amended) as paragraphs 
(1) and (2) and realigning such para-
graphs, as so redesignated, so as to be in-
dented 2 ems from the left margin; and 
(C) by striking the subsection designation 
and all that follows through ‘‘Notwithstanding’’ 
in paragraph (1) and inserting the following: 
‘‘(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND AL-
COHOL ABUSERS.—Notwithstanding’’; and 
(2) in subsection (c)— 
(A) in the section heading, by inserting 
‘‘CERTAIN’’ before ‘‘CRIMINAL’’; 
(B) in the matter that precedes paragraph 
(1)— 
(i) by inserting ‘‘, based on docu-
mented evidence that is credible and objec-
tive,’’ after ‘‘determines’’; 
(ii) by striking ‘‘a reasonable time’’ 
and inserting ‘‘the 5-year period’’; and 
(iii) by striking ‘‘or other criminal ac-
tivity’’; 
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(C) in paragraph (2), by striking ‘‘reason-
able’’ each place such term appears and inserting 
‘‘5-year’’; and 
(D) by adding after and below paragraph 
(2) the following: 
‘‘No denial of admission may be made pursuant to this sub-
section based on a misdemeanor charge and conviction un-
less such denial is based on a pattern of activity, the com-
mission of any offense against a child (including child por-
nography offenses), the commission of any offense involving 
a child victim, the commission of a sexual assault, the com-
mission of an assault, or the commission of violent, disrup-
tive (as such term is defined by the Secretary), or illegal 
behavior that interferes with the right to peaceful enjoyment 
of the premises by other residents.’’. 
SEC. 15. PROHIBITION ON FIREARMS RESTRICTIONS IN 
FEDERALLY ASSISTED HOUSING. 
Subtitle F of the Quality Housing and Work Responsi-
bility Act of 1998 is amended by inserting after section 578 
(42 U.S.C. 13663) the following new section:. 
‘‘SEC. 578A. PROHIBITION ON FIREARMS RESTRICTIONS IN 
FEDERALLY ASSISTED HOUSING. 
‘‘Neither the Secretary of Housing and Urban Develop-
ment, nor any public housing agency, nor any owner of 
federally assisted housing may establish any prohibition or 
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restriction on the otherwise lawful possession or use of fire-
arms in federally assisted housing.’’. 
SEC. 16. ENHANCED VOUCHERS. 
(a) QUALIFICATION; ELECTION TO REMAIN IN UNIT.— 
Section 8(t)(1) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(t)(1)(B)) is amended— 
(1) in the matter preceding subparagraph (A), 
by inserting ‘‘and shall not require that the family re-
qualify under the selection standards for a public 
housing agency in order to be eligible for such assist-
ance’’ before the comma; and 
(2) by striking subparagraph (B) and inserting 
the following new subparagraph: 
‘‘(B)(i) the assisted family may elect to re-
main in the same project in which the family 
was residing on the date of the eligibility event 
for the project regardless of unit and family size 
standards normally used by the administering 
public housing agency (except that tenants may 
be required to move to units of appropriate size 
if available on the premises), and the owner of 
the unit shall accept the enhanced voucher and 
terminate the tenancy only for serious or re-
peated violation of the terms and conditions of 
the lease or for violation of applicable law; and 
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‘‘(ii) if, during any period the family makes 
such an election and continues to so reside, the 
rent for the dwelling unit of the family in such 
project exceeds the applicable payment standard 
established pursuant to subsection (o) for the 
unit, the amount of rental assistance provided on 
behalf of the family shall be determined using a 
payment standard that is equal to the rent for 
the dwelling unit (as such rent may be increased 
from time-to-time), subject to paragraph (10)(A) 
of subsection (o) and any other reasonable limit 
prescribed by the Secretary, except that a limit 
shall not be considered reasonable for purposes of 
this subparagraph if it adversely affects such as-
sisted families;’’. 
(b) PROVISION TO RESIDENTS OF ASSISTED MULTI-
FAMILY PROJECTS UPON TERMINATION DATE.— 
(1) REQUIREMENT.—Upon the termination date 
for each assisted multifamily housing project, to the 
extent that amounts for assistance under this para-
graph are provided in advance in appropriation Acts, 
the Secretary of Housing and Urban Development 
shall make enhanced voucher assistance under section 
8(t) of the United States Housing Act of 1937 (42 
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U.S.C. 1437f(t)) available on behalf of each family de-
scribed in paragraph (2). 
(2) ELIGIBILITY.—A family described in this 
paragraph is a family who— 
(A)(i) is a low-income family; or 
(ii) is a moderate-income family that is— 
(I) an elderly family (as such term is 
used in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)); 
(II) a disabled family (as such term is 
used in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)); 
or 
(III) residing in a low-vacancy area 
(as determined by the Secretary); and 
(B) on such termination date, is residing in 
a dwelling unit of the project that— 
(i) immediately before such termi-
nation date was assisted under the multi-
family housing subsidy program for the 
project; and 
(ii) is not assisted after such termi-
nation date under section 8 of such Act. 
(3) ELIGIBILITY EVENT.—Section 8(t)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 
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1437f(t)(2)) is amended by adding after the period at 
the end the following new sentence: ‘‘Such term in-
cludes, with respect to an assisted multifamily hous-
ing project (as such term is defined in section 16(b) 
of the Section 8 Voucher Reform Act of 2009), the oc-
currence of the termination date for the project.’’. 
(4) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
(A) 
ASSISTED
MULTIFAMILY
HOUSING 
PROPERTY.—The term ‘‘assisted multifamily 
housing property’’ means a multifamily housing 
project for which assistance is provided under a 
multifamily housing subsidy program. 
(B) LOW-INCOME FAMILY.—The term ‘‘low- 
income family’’ has the meaning given such term 
in section 3(b) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b)). 
(C) MODERATE-INCOME FAMILY.—The term 
‘‘moderate-income family’’ has the meaning 
given such term in section 229 of the Low-In-
come Housing Preservation and Resident Home-
ownership Act of 1992 (12 U.S.C. 4119). 
(D) MULTIFAMILY HOUSING SUBSIDY PRO-
GRAM.—The term ‘‘multifamily housing subsidy 
program’’ means— 
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(i) the below-market interest rate mort-
gage insurance program under section 
221(d)(3) of the National Housing Act (12 
U.S.C. 1715l(d)(3)); and 
(ii) the program for interest reduction 
payments under section 236 of the National 
Housing Act (12 U.S.C. 1715z–1). 
(E) TERMINATION DATE.—The term ‘‘termi-
nation date’’ means, with respect to an assisted 
multifamily housing property, the date that— 
(i) the mortgage for the property that 
is insured under the below-market interest 
rate program under section 221(d)(3) of the 
National Housing Act, or for which interest 
reduction payments are made under section 
236 of such Act, matures; and 
(ii) the affordability restrictions appli-
cable to the property because of assistance 
for the property pursuant to a multifamily 
housing subsidy program terminate with re-
spect to the property. 
(5) REGULATIONS.—The Secretary may issue 
any regulations necessary to carry out this subsection. 
(c) PROVISION TO CERTAIN ASSISTED HOUSING RESI-
DENTS.— 
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(1) ENHANCED
VOUCHER
ASSISTANCE.—Not-
withstanding any other provision of law, contract, or 
covenant, and subject only to the availability of 
amounts provided in advance in appropriation 
Acts— 
(A) upon the expiration, pursuant to sub-
paragraph (B), of the use restrictions applicable 
to the covered properties pursuant to the Emer-
gency Low Income Housing Preservation Act of 
1987 (12 U.S.C. 1715l note), each family who is 
an eligible low-income or moderate income fam-
ily, as such terms are used for purposes of sec-
tion 223(f)(2)(A) of the Low-Income Housing 
Preservation and Resident Homeownership Act 
of 1990 (12 U.S.C. 4113(f)(2)(A)), and, as of 
such expiration, is residing in a dwelling unit in 
the covered properties not covered by project- 
based rental assistance, shall be offered enhanced 
voucher assistance under section 8(t) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(t)), and each such family who chooses to 
remain in the covered properties shall have three 
years from the date of the issuance of such en-
hanced voucher to commence use of the voucher; 
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(B) such use restrictions applicable to the 
covered properties shall be deemed to expire on 
March 1, 2010, but only if the owner of the cov-
ered properties enters into agreements with the 
Secretary to maintain the project-based rental 
assistance for the properties for a period begin-
ning upon such expiration of not fewer than 20 
years; and 
(C) the contract rents for dwelling units in 
the covered properties covered by project-based 
rental assistance shall be determined during the 
period ending upon the expiration of such use re-
strictions pursuant to subparagraph (B) based 
upon the rents for comparable unassisted and 
unrestricted units in the area in which the cov-
ered properties are located; except that before 
May 1, 2012, the rental assistance payments for 
such project-based units in the covered property 
known as Georgetowne Houses II shall be re-
stricted to the rent levels provided under the 
Emergency Low Income Housing Preservation 
Act of 1987. 
(2) COVERED PROPERTIES.—For purposes of this 
subsection, the term ‘‘covered properties’’ means the 
housing developments known as Georgetowne Houses 
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I and II (formerly identified by FHA project nos. 
023-55058 and 023-55179), located in Boston, Massa-
chusetts. 
(3) FUNDING.—Amounts for the enhanced vouch-
ers pursuant to this subsection shall be provided 
under amounts appropriated for tenant-based rental 
assistance otherwise authorized under section 8(t) of 
the United States Housing Act of 1937. 
(4) APPLICABILITY.—This subsection shall take 
effect upon enactment and nothing in this subsection 
may be construed to require any administrative guid-
ance. 
SEC. 17. DEMONSTRATION PROGRAM WAIVER AUTHORITY. 
(a) AUTHORITY TO ENTER INTO AGREEMENTS.—Not-
withstanding any other provision of law, the Secretary of 
Housing and Urban Development may enter into such 
agreements as may be necessary with the Social Security 
Administration and the Secretary of Health and Human 
Services to allow for the participation, in any demonstra-
tion program described in subsection (c), by the Department 
of Housing and Urban Development and the use under such 
program of housing choice vouchers under section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)). 
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(b) WAIVER OF INCOME REQUIREMENTS.—The Sec-
retary of Housing and Urban Development may, to extent 
necessary to allow rental assistance under section 8(o) of 
the United States Housing Act of 1937 to be provided on 
behalf of persons described in subsection (c) who participate 
in a demonstration program described in such subsection, 
and to allow such persons to be placed on a waiting list 
for such assistance, partially or wholly disregard increases 
in earned income for the purpose of rent calculations under 
section 3 for such persons. 
(c) DEMONSTRATION PROGRAMS.—A demonstration 
program described in this subsection is a demonstration 
program of a State that provides for persons with signifi-
cant disabilities to be employed and continue to receive ben-
efits under programs of the Department of Health and 
Human Services and the Social Security Administration, 
including the program of supplemental security income 
benefits under title XVI of the Social Security Act, dis-
ability insurance benefits under title II of such Act, and 
the State program for medical assistance (Medicaid) under 
title XIX of such Act. 
SEC. 18. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated for fiscal year 
2010 the amount necessary to provide public housing agen-
cies with incremental assistance under section 8(o) of the 
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United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 
sufficient to assist 150,000 incremental dwelling units in 
such fiscal year, for— 
(1) tenant-based assistance; and 
(2) project-based voucher assistance for extremely 
low-income families, in conjunction with— 
(A) funding from either of the funds estab-
lished under section 1138 or 1339 of the Federal 
Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4568, 4569); 
(B) low-income housing tax credits provided 
under section 42 of the Internal Revenue Code of 
1986; 
(C) amounts provided under the community 
development block grant program under title I of 
the Housing and Community Development Act of 
1974 (42 U.S.C. 5301 et seq.) and the HOME 
investment partnerships program under title II 
of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12721 et seq.); and 
(D) State and local affordable housing 
funds and programs. 
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SEC. 19. AGENCY AUTHORITY FOR UTILITY PAYMENTS IN 
CERTAIN CIRCUMSTANCES. 
Section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end 
the following new paragraph: 
‘‘(22) AUTHORITY OF PUBLIC HOUSING AGENCIES 
TO MAKE DIRECT PAYMENTS FOR UTILITIES WHEN 
OWNER FAILS TO PAY.— 
‘‘(A) IN GENERAL.—If the owner has failed 
to pay for utilities that are the responsibility of 
the owner under the lease or applicable law, the 
public housing agency is authorized to utilize 
subsidy payments otherwise due the owner to 
pay for continued utility service to avoid hard-
ship to program participants. 
‘‘(B) NOTICE.—Before making utility pay-
ments as described in subparagraph (A), the 
public housing agency shall take reasonable steps 
to notify the owner that it intends to make pay-
ments to a utility provider in lieu of payments 
to the owner, except prior notification shall not 
be required in any case in which the unit will 
be or has been rendered uninhabitable due to the 
termination or threat of termination of service, 
in which case the public housing agency shall 
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notify the owner within a reasonable time after 
making such payment.’’. 
SEC. 20. UTILITY DATA. 
Section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end 
the following new paragraph: 
‘‘(23) UTILITY DATA.— 
‘‘(A) PUBLICATION.—The Secretary shall 
regularly publish such data regarding utility 
consumption and costs in local areas as the Sec-
retary determines will be useful for the establish-
ment of allowances for tenant-paid utilities for 
families assisted under this subsection. 
‘‘(B) GUIDELINES FOR USE.—The Secretary 
shall establish guidelines providing for the use of 
such data in a manner that— 
‘‘(i) avoids unnecessary administrative 
burdens for public housing agencies; and 
‘‘(ii) protects families in various unit 
sizes and building types, and using various 
utilities, from high rent and utility cost 
burdens relative to income.’’. 
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SEC. 21. PROJECT-BASED PRESERVATION VOUCHERS. 
(a) ENHANCED
VOUCHERS.—Section 8(t) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(t)) 
is amended— 
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) PRESERVATION
PROJECT-BASED
VOUCHER 
ASSISTANCE.—Notwithstanding any other provision 
of law, in the case of a multifamily housing project 
with respect to which an eligibility event occurs or 
has occurred, project-based voucher assistance may be 
provided in accordance with subsection (o)(13)(R) in 
lieu of enhanced voucher assistance under this sub-
section. Such project-based voucher assistance shall 
not be subject to the provisions of this subsection, ex-
cept as otherwise specifically provided in subsection 
(o)(13)(R).’’. 
(b) PHA PROJECT-BASED VOUCHER ASSISTANCE.— 
Paragraph (13) of section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended by the 
preceding provisions of this Act, is further amended by add-
ing at the end the following new subparagraph: 
‘‘(R) PRESERVATION ASSISTANCE.— 
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‘‘(i) AUTHORITY.—Project-based vouch-
er assistance under this paragraph shall be 
made available in accordance with this sub-
paragraph for multifamily housing projects 
for which an eligibility event (as such term 
is defined in subsection (t)) occurs or has 
occurred and for which enhanced voucher 
assistance would otherwise be, or has been, 
provided under subsection (t). Any such as-
sistance shall be in lieu of enhanced voucher 
assistance under subsection (t) for tenants 
residing in the project and shall be provided 
by the Secretary to a public housing agency. 
‘‘(ii) REQUEST AND PROVISION.—If the 
owner of a multifamily housing project 
makes a request for project-based voucher 
assistance pursuant to this subparagraph 
for the project to a public housing agency 
that administers a program for assistance 
under subsection (o) for a jurisdiction with-
in which the project is located, a contract 
for assistance under this subparagraph shall 
be provided with respect to the project, sub-
ject to clause (v). 
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100 
‘‘(iii) TIMING, COVERAGE, AND
UNIT 
RENTS.— 
‘‘(I) REQUEST MADE BEFORE ELI-
GIBILITY EVENT.—In the case of a con-
tract for assistance under this subpara-
graph with respect to a project that is 
requested prior to the occurrence of the 
eligibility event, the contract for assist-
ance shall be provided, subject to clause 
(v), upon the occurrence of the eligi-
bility event. Such contract shall cover 
all dwelling units in the project for 
which enhanced voucher assistance 
under subsection (t) would otherwise be 
provided. 
‘‘(II) 
REQUEST
MADE
AFTER 
ISSUANCE OF ENHANCED VOUCHERS.— 
In the case of a contract for assistance 
under this subparagraph with respect 
to a project that is requested after the 
issuance of enhanced vouchers under 
subsection (t) for the project, the con-
tract shall be provided, subject to 
clause (v), as soon as possible. Such 
contract shall cover all dwelling units 
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