I
103D CONGRESS
1ST SESSION
H. R. 1002
To amend the United States Housing Act of 1937 to revise the method
of calculating the amounts paid by public housing agencies in lieu of
State, city, county, and local taxes, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 18, 1993
Mr. SHAYS (for himself, Mr. MFUME, and Mrs. JOHNSON of Connecticut) in-
troduced the following bill; which was referred to the Committee on
Banking, Finance and Urban Affairs
A BILL
To amend the United States Housing Act of 1937 to revise
the method of calculating the amounts paid by public
housing agencies in lieu of State, city, county, and local
taxes, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Public Housing Fair
Compensation Act of 1993’’.
SEC. 2. AUTHORITY AND AMOUNT.
Section 6(d) of the United States Housing Act of
1937 (42 U.S.C. 1437d(d)) is amended to read as follows:
‘‘(d) PAYMENTS
IN LIEU
OF STATE
AND LOCAL
TAXES.—
‘‘(1) IN GENERAL.—Each contract for contribu-
tions with respect to a low-income housing project
shall provide that contributions by the Secretary
may not be made available for the project unless the
project (exclusive of any portion of the project that
is not assisted by contributions under this Act) is
exempt from all real and personal property taxes lev-
ied or imposed by the State, city, county, or other
political subdivision. Each such contract shall re-
quire the public housing agency to make payments
in lieu of taxes, from amounts provided to the agen-
cy pursuant to paragraph (5), in the amount deter-
mined under paragraphs (2) and (3). If any low-in-
come housing project is not exempt from all real and
personal property taxes levied or imposed by the
State, city, county, or other political subdivision,
such contract shall provide, in lieu of the require-
ment for tax exemption and payment in lieu of
taxes, that contributions by the Secretary may not
be made available for the project unless and until
the State, city, county, or other political subdivision
in which the project is situated shall contribute, in
the form of cash or tax remission, the amount by
which the taxes paid with respect to the project ex-
ceed the amount determined under paragraph (2)(A)
for the project.
‘‘(2) DETERMINATION OF AMOUNT.—Subject to
the limitations under paragraph (4), the amount in
lieu of taxes to be paid under paragraph (1) by a
public housing agency for a year for any low-income
housing project shall be—
‘‘(A) the sum of the amounts determined,
for units of each size, by multiplying (i) the
number of dwelling units in the project of such
size, by (ii) the applicable adjusted per unit
payment amount determined under paragraph
(3) for units of such size; or
‘‘(B) such lesser amount that is—
‘‘(i) prescribed by State law;
‘‘(ii) agreed to by the local governing
body in its agreement for local cooperation
with the public housing agency required
under section 5(e)(2); or
‘‘(iii) due to the failure of a local pub-
lic body or bodies other than the public
housing agency to perform any obligation
under such agreement.
‘‘(3) 
ADJUSTED
PER
UNIT
PAYMENT
AMOUNTS.—
‘‘(A) IN GENERAL.—For purposes of this
subsection, the Secretary shall determine the
adjusted per unit payment amounts for each
fiscal year for dwelling units of various sizes in
low-income housing projects, as determined by
the Secretary. The per unit payment amount
for a dwelling unit for any fiscal year shall be
the pro rata share of the total amount available
for the fiscal year for all payments under this
subsection for all dwelling units, taking into
consideration the size of the dwelling unit (sub-
ject to subparagraph (B)) and the cost of hous-
ing in the area in which the project containing
the dwelling unit is located (based on the me-
dian family income and fair market rentals as
established under section 8(c), for such area).
‘‘(B) DWELLING
SIZE.—The Secretary
shall provide that (not taking into consideration
any adjustment due to area housing costs) the
adjusted per unit payment amount under this
paragraph for single-room dwelling units (not
containing bathroom or kitchen facilities) and
units of 2 or more bedrooms is greater than
such amount for units of 1 bedroom that con-
tain bathrooms and kitchen facilities.
‘‘(4) LIMITATIONS ON AMOUNT.—Notwithstand-
ing any other provision of this subsection, the
amount in lieu of taxes to be paid under this sub-
section by a public housing agency in any year may
not exceed—
‘‘(A) for any single dwelling unit, $1,400;
and
‘‘(B) for any project, the amount equal to
the sum of all real and personal property taxes
that would be levied or imposed with respect to
the project by the State, city, county, and other
political subdivisions were the project not ex-
empt from all real and personal property taxes.
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for provid-
ing amounts to public housing agencies for making
payments in lieu of taxes under this subsection the
following amounts for the following fiscal years:
‘‘(A) $500,000,000 for fiscal year 1994.
‘‘(B) $1,000,000,000 for fiscal year 1995.
‘‘(C) $2,000,000,000 for fiscal year 1996.
‘‘(D) $2,000,000,000 for fiscal year 1997.
‘‘(E) 
$2,000,000,000 
for 
fiscal 
year
1998.’’.
SEC. 3. APPLICABILITY.
The amendment made by section 2 shall apply only
with respect to fiscal year 1994 and fiscal years thereafter,
and the provisions of section 6(d) of the United States
Housing Act of 1937, as in effect immediately before the
enactment of this section, shall apply with respect to fiscal
years preceding fiscal year 1994.
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