174 
should not confer any special status as a tenant or 
lawful occupant of the property; 
(2) local law enforcement should take actions to 
expeditiously remove from a property any persons or 
persons engaging in squatting and should prosecute 
such actions as prescribed by local law; 
(3) Federal Government benefits, including 
loans, loan guarantees, subsidies, and tax credits, 
should not be used to reinforce, condone, or other-
wise incentivize squatting; and 
(4) real estate collateral securing a government 
or government-sponsored enterprise loan, or subject 
to a loan guarantee, mortgage insurance or other 
Federal mortgage support program must be pro-
tected from persons engaging in squatting as it cre-
ates undue risks for the value of such property. 
(b) PROHIBITION ON CDBG FUNDING.—Section 104 
of the Housing and Community Development Act of 1974 
(42 U.S.C. 5304) is amended by adding at the end the 
following: 
‘‘(n) WITHHOLDING OF FUNDS FOR JURISDICTIONS 
THAT PERMIT SQUATTING.— 
‘‘(1) PROHIBITION.—The Secretary shall, by 
regulation— 
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‘‘(A) prohibit the allocation and provision 
of funds under this title for any unit of general 
local government that permits squatting or con-
fers special status for rights of tenancy for a 
person or persons engaging in the practice of 
squatting; and 
‘‘(B) provide for— 
‘‘(i) units of general local government 
to take corrective actions to remedy the 
applicability of the prohibition under sub-
paragraph (A) to such unit of general local 
government; and 
‘‘(ii) certification by the Secretary 
upon a determination that such actions 
taken by a unit of general local govern-
ment are sufficient for the unit of general 
local government to receive funds under 
this title. 
‘‘(2) PUBLIC
NOTICE.—The Secretary shall 
make publicly available for each fiscal year a list of 
all units of general local government that are prohib-
ited by paragraph (1) from receiving funds under 
this title and the justification for inclusion in the list 
of each such unit of general local government. 
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‘‘(3) SQUATTING.—For purposes of this sub-
section, the term ‘squatting’ means the practice of 
entering a property without the permission of the 
property owner and residing in that property for 14 
or more consecutive days without the permission of 
the property owner and without the payment of rent 
or a rental contract agreed to by the property 
owner.’’. 
(c) PROHIBITION
ON FEDERAL MORTGAGE SUP-
PORT.— 
(1) PROHIBITION.—No Federal support may be 
provided for any loan that is secured by a first or 
subordinate lien on residential real property (includ-
ing individual units of condominiums and coopera-
tives) and designed principally for the occupancy of 
from 1- to 4-families if the property securing such 
loan is located in a unit of general local government 
that is, at such time, prohibited from receiving funds 
under title I of the Housing and Community Devel-
opment Act of 1974 by section 104(n)(1)(A) of such 
Act. 
(2) REGULATIONS.—The heads of the covered 
agencies shall jointly develop, by regulations issued 
not later than 90 days after the date of the enact-
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177 
ment of this Act, guidelines for such covered agen-
cies to carry out this subsection. 
(3) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply: 
(A) COVERED AGENCY.—The term ‘‘cov-
ered agency’’ means— 
(i) the Department of Housing and 
Urban Development; 
(ii) the Federal Housing Finance 
Agency; 
(iii) the Department of Veterans Af-
fairs; and 
(iv) the Department of Agriculture. 
(B) FEDERAL SUPPORT.—The term ‘‘Fed-
eral support’’ means, with respect to a loan— 
(i) insurance of the loan by the Fed-
eral Housing Administration under title II 
of the National Housing Act (12 U.S.C. 
1707 et seq.); 
(ii) insurance of the loan under sec-
tion 255 of the National Housing Act (12 
U.S.C. 1715z–20); 
(iii) guarantee of the loan under sec-
tion 184 or 184A of the Housing and 
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178 
Community Development Act of 1992 (12 
U.S.C. 1715z–13a, 1715z–13b); 
(iv) guarantee or insurance of the 
loan by the Department of Veterans Af-
fairs; 
(v) guarantee or insurance of the loan 
by the Department of Agriculture; 
(vi) making of the loan by the Depart-
ment of Agriculture; or 
(vii) purchase or securitization of the 
loan by the Federal Home Loan Mortgage 
Corporation or the Federal National Mort-
gage Association. 
(C) SQUATTING.—The term ‘‘squatting’’ 
means the practice of entering a property with-
out the permission of the property owner and 
residing in that property for 14 or more con-
secutive days without the permission of the 
property owner and without the payment of 
rent or a rental contract agreed to by the prop-
erty owner. 
SEC. 407. REALLOCATION OF VOUCHER FUNDING. 
Section 8(o) of the United States Housing Act of 
1937 is amended by adding at the end the following: 
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179 
‘‘(24) REALLOCATION OF AMOUNTS.—The Sec-
retary shall, at the end of each fiscal year— 
‘‘(A) recapture from each public housing 
agency any amounts provided to such public 
housing agency for tenant-based assistance 
under paragraph (1)(A) that such public hous-
ing agency did not obligate during such fiscal 
year; and 
‘‘(B) provide amounts recaptured under 
subparagrah (A) to public housing agencies that 
used all of the amounts provided to them for 
tenant-based 
assistance 
under 
paragraph 
(1)(A).’’. 
TITLE V—REGULATORY 
FLEXIBILITY 
SEC. 501. AUTHORIZATION OF MOVING TO WORK PRO-
GRAM. 
(a) PROGRAM REFORMS.—Section 204 of the Depart-
ments of Veterans Affairs and Housing and Urban Devel-
opment, and Independent Agencies Appropriations Act, 
1996 (42 U.S.C. 1437f note) is amended— 
(1) in the section heading, by striking ‘‘DEM-
ONSTRATION’’ and inserting ‘‘PROGRAM’’; 
(2) by striking subsection (a) and inserting the 
following: 
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‘‘(a) PURPOSES.—The purposes of the program 
under this section are as follows: 
‘‘(1) ECONOMIC
INDEPENDENCE.—To develop 
measures to promote economic independence for 
families with children whose head of household is 
working, seeking work, or preparing for work, for 
able-bodied individuals, and for persons with disabil-
ities who are able to work on a limited basis, to ob-
tain employment and become economically inde-
pendent, by participating in job training, educational 
programs, or other supportive services and programs 
that assist in meeting such goal. 
‘‘(2) 
FLEXIBILITY
AND
COST-EFFECTIVE-
NESS.—To give public housing agencies and the Sec-
retary of Housing and Urban Development the flexi-
bility to design and implement various approaches 
for providing and administering housing assistance 
that reduce cost and achieve greater cost effective-
ness in Federal expenditures. 
‘‘(3) HOUSING CHOICE.—To increase housing 
choices for low-income families.’’; 
(3) in subsection (b)— 
(A) by striking ‘‘(b) PROGRAM AUTHOR-
ITY.—The Secretary’’ and inserting the fol-
lowing: 
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‘‘(b) PROGRAM AUTHORITY.— 
‘‘(1) IN GENERAL.—The Secretary’’; 
(B) in the first sentence, by striking ‘‘con-
duct a demonstration program’’ and all that fol-
lows through ‘‘Indian housing program and’’ 
and inserting ‘‘carry out a program under this 
section under which public housing agencies ad-
ministering the public housing program or’’; 
(C) by inserting after the first sentence the 
following: ‘‘There shall be no limitation on the 
number of public housing agencies that may 
participate in the program under this section.’’; 
(D) by striking ‘‘The Secretary shall’’ and 
all that follows through ‘‘demonstration.’’ and 
inserting the following: 
‘‘(2) IDENTIFICATION
OF
REPLICABLE
MOD-
ELS.—The Secretary shall provide training and tech-
nical assistance under the program and conduct de-
tailed evaluations of various agencies to identify 
replicable program models promoting the purposes 
of the program.’’; 
(E) by striking ‘‘Under the demonstration’’ 
and inserting the following: 
‘‘(3) COMBINATION
OF
ASSISTANCE.—Under 
the program under this section’’; and 
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182 
(F) by striking ‘‘operating assistance pro-
vided under section 9 of the United States 
Housing Act of 1937, modernization assistance 
provided under section 14’’ and inserting 
‘‘amounts provided to the agency from the Op-
erating Fund under section 9(e) of the United 
States Housing Act of 1937, amounts provided 
to the agency from the Capital Fund under sec-
tion 9(d)’’; 
(4) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘demonstration’’ and inserting ‘‘pro-
gram under this section’’; 
(B) in paragraph (1), by striking ‘‘9, and 
14’’ and inserting ‘‘9(d), and 9(e)’’; 
(C) in paragraph (3)— 
(i) in subparagraph (A), by striking 
‘‘demonstration’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘self-sufficiency’’ 
and inserting ‘‘economic independ-
ence’’; and 
(II) by striking ‘‘purpose of this 
demonstration’’ and inserting ‘‘pur-
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183 
pose of the program under subsection 
(a)(1)’’; 
(iii) in subparagraph (D), by striking 
‘‘demonstration’’ and inserting ‘‘program 
under this section;’’; 
(iv) in subparagraph (E), by striking 
‘‘demonstration program’’ and inserting 
‘‘program under this section’’; 
(v) by redesignating subparagraphs 
(A), (B), (C), (D), and (E) as subpara-
graphs (B), (C), (D), (G), and (H), respec-
tively; 
(vi) by inserting before subparagraph 
(B), as so redesignated, the following: 
‘‘(A) actions to be taken under the pro-
posed program to achieve the purposes of the 
program under paragraphs (1), (2), and (3) of 
subsection (a);’’; and 
(vii) by inserting after subparagraph 
(D), as so redesignated, the following: 
‘‘(E) hardship exceptions consistent with 
the purposes under subsection (a) under which 
tenants may be temporarily exempted from 
compliance with the program operated by the 
agency in the event of extenuating cir-
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184 
cumstances preventing such compliance and a 
process that provides tenants with recourse to 
a speedy determination regarding such an ex-
ception and makes available the contents and 
results of such a determination available to the 
public and the board of directors or other gov-
erning body on request of the tenant concerned 
or the director or other head official of the 
agency; 
‘‘(F) providing assisted families and par-
ticipants in the program operated by the agency 
with an informal administrative hearing or 
grievance process, prior to any eviction or ter-
mination of assistance, which process shall 
make the content and determination of the 
hearing available to the public and the board of 
directors or other governing body on request of 
the tenant concerned or the director or other 
head official of the agency;’’; and 
(D) in paragraph (4), by striking ‘‘dem-
onstration’’ and inserting ‘‘proposed program’’; 
(5) in subsection (d)— 
(A) by striking ‘‘(d) SELECTION.—In se-
lecting among applications, the Secretary shall 
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take into account the’’ and inserting the fol-
lowing: 
‘‘(d) APPLICATIONS FOR PARTICIPATION.— 
‘‘(1) SUBMISSION; STANDARDS FOR PARTICIPA-
TION.—The Secretary shall provide for public hous-
ing agencies to submit applications for participation 
in the program under this section and shall estab-
lish, and make public, standards and requirements 
for participation that further the purposes of this 
program set forth in subsection (a), which shall— 
‘‘(A) provide that all public housing agen-
cies not designated as troubled pursuant to part 
902 or subpart B of part 985, Code of Federal 
Regulations, at any time during the most recent 
2 fiscal years are invited to submit applications 
for consideration; 
‘‘(B) provide that participation of a public 
housing agency, upon approval, shall be for a 
period not shorter than 10 years; 
‘‘(C) include a common set of budget 
metrics for use under the program that allow 
for comparison of the performance of different 
public housing agencies under the program; 
‘‘(D) require that each public housing 
agency include in its application— 
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‘‘(i) a list of innovative proposals to 
be carried out under the program that are 
designed to reduce the cost of, and in-
crease the cost-efficiency of, housing pro-
vided in connection with the program and 
metrics to assess the progress of the agen-
cy toward such goals; and 
‘‘(ii) a list of innovative manners in 
which the public housing agency will use 
the authorities under the program to assist 
families, goals regarding such activities to 
accomplish on an annual basis, and metrics 
to assess the progress of the agency toward 
such goals; and 
‘‘(E) include a plan for using, to the great-
est extent feasible, electronic data-matching for 
income verification services. 
‘‘(2) DETERMINATION AND NOTIFICATION.— 
‘‘(A) REVIEW
AND
DETERMINATION.— 
Upon receipt of an application for participation 
in the program under this section, the Secretary 
shall provide for review such application by a 
selection panel comprised of Federal officials 
and employees and established by the Secretary 
for such purpose. Based on such review, such 
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187 
selection panel shall make a determination of 
whether to approve such agency for participa-
tion in the program under this section, based 
on the criteria under paragraph (4). 
‘‘(B) NOTIFICATION.—Upon making a de-
termination pursuant to subparagraph (A), the 
selection panel shall notify the public housing 
agency, the Secretary, and the governments for 
any counties and municipalities in which the ju-
risdiction of the public housing agency is lo-
cated of such determination. In the case of dis-
approval of an application, such notice shall in-
clude a statement specifying the reasons for 
such disapproval. 
‘‘(3) TRANSITION.— 
‘‘(A) NUMERICAL LIMITATION.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall review and process such applications 
as to enable the transition of not less than 
25 public housing agencies per year to the 
program under this section (subject to ap-
provable applications), until such time as 
there are not 25 public housing agencies 
whose applications merit approval. 
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188 
‘‘(ii) RESERVED
SPOTS
FOR
SMALL 
AND RURAL PHAS.—Of the applications of 
public housing agencies approved in each 
year pursuant to clause (i), not less than 
10 shall be applications of public housing 
agencies that administer, in the aggregate, 
fewer than 6,000 vouchers for rental as-
sistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f) and public housing dwelling units, 
except that if for any year the Secretary 
receives fewer than 10 applications by pub-
lic housing agencies described in this 
clause that merit approval, the require-
ment under this clause shall apply for such 
year only to the extent of the number of 
such approvable applications received. 
‘‘(iii) TREATMENT
OF
NEW
MTW 
AGENCIES.—Any agency that is newly 
transitioned under this subparagraph to 
participation in the program as in effect 
pursuant to the amendments made by this 
Act shall count toward fulfillment of the 
numerical limitation in clause (i), notwith-
standing the authority under section 239 
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189 
of the Transportation, Housing and Urban 
Development, and Related Agencies Appro-
priations Act, 2016 (division L of Public 
Law 114–113) or any other provision of 
law other than this section authorizing 
participation of new agencies. 
‘‘(B) CONTRACT
REVISIONS.—The Sec-
retary shall, from time to time and in consulta-
tion with public housing agencies, amend con-
tracts for participation by agencies in the pro-
gram under this section as may be necessary, 
based on experiences of agencies that have par-
ticipated in the program, to correct mistakes 
and better achieve the goals of this program set 
forth in subsection (a). 
‘‘(C) RENEWAL OF CERTIFICATION.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall provide that upon expiration of a con-
tract for participation by a public housing 
agency in the program under this section, 
to continue participating in the program 
the agency shall be required to recertify 
with the Secretary for such renewed par-
ticipation. The standards and requirements 
applicable to applications for initial partici-
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190 
pation in the program shall also apply to 
applications for renewed participation in 
the program. 
‘‘(ii) TREATMENT OF NUMERICAL LIM-
ITATION.—An agency approved for contin-
ued participation in the program pursuant 
to recertification under this subparagraph 
shall not count toward fulfillment of the 
numerical 
limitation 
in 
subparagraph 
(A)(i). 
‘‘(4) CRITERIA.—The Secretary shall establish 
criteria for approval of applications of public housing 
agencies for participation in the program under this 
section, which shall provide for approval of applica-
tions that are reasonably designed to carry out the 
purposes of the program under subsection (a). Such 
criteria shall take into consideration the capacity 
and’’; 
(B) by striking ‘‘each’’ and inserting 
‘‘the’’; 
(C) by striking ‘‘a program under the dem-
onstration’’ and inserting ‘‘the proposed pro-
gram in the application’’; and 
(D) by striking ‘‘an agency’’ and inserting 
‘‘the agency’’; 
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(6) in subsection (e)— 
(A) in paragraph (1), by striking ‘‘this 
demonstration’’ and inserting ‘‘the program 
under this section’’; and 
(B) in paragraph (2), by striking ‘‘dem-
onstration’’ and inserting ‘‘program under this 
section’’; 
(7) in subsection (f), by striking ‘‘section 9, or 
pursuant to section 14 by a public housing agency 
participating in the demonstration under this part’’ 
and inserting ‘‘of the United States Housing Act of 
1937, or provided from the Operating Fund under 
section 9(e) or from the Capital Fund under section 
9(d) of such Act, by a public housing agency partici-
pating in the program under this section’’; 
(8) in subsection (g)— 
(A) in paragraph (1), by inserting ‘‘, in-
cluding performance in achieving each of the 
purposes of the program specified in subsection 
(a)’’; 
(B) in paragraph (2)— 
(i) in the first sentence— 
(I) by inserting ‘‘, and including 
such content, as shall be’’ before 
‘‘specified by the Secretary’’; and 
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(II) by inserting ‘‘, but not less 
often than annually’’ before the period 
at the end; and 
(ii) by striking subparagraph (C) and 
inserting the following: 
‘‘(C) describe and analyze the effects of 
the program of the agency and the assisted ac-
tivities under such program in addressing and 
achieving the objectives of the program under 
this section and each of the purposes specified 
in subsection (a), including the effects of the 
program on— 
‘‘(i) the number of new families the 
agency has been able to assist from the 
waiting lists for housing assistance that is 
administered by the agency, including 
vouchers for rental assistance under sec-
tion 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)) and dwelling 
units in public housing and in housing as-
sisted with project-based section 8 assist-
ance, as a result of the flexibility of funds 
and achievement of economic independ-
ence; 
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