H. R. 4194—166
(4) LOCAL REVIEW AND MONITORING MODELS.—Various mod-
els providing for local, resident, and community review and
monitoring of such agencies and housing providers, including
systems for review and monitoring by local and State govern-
mental bodies and agencies.
(5) PRIVATE MODELS.—Various models using private con-
tractors for review and monitoring of such agencies and housing
providers.
(6) OTHER MODELS.—Various models of any other systems
that may be more effective and efficient in regulating and
evaluating such agencies and housing providers.
(d) CONSULTATION.—The entity that, pursuant to subsection
(e), carries out the study under this section shall, in carrying
out the study, consult with individuals and organizations experi-
enced in managing public housing, private real estate managers,
representatives from State and local governments, residents of pub-
lic housing, families and individuals receiving tenant-based assist-
ance, the Secretary of Housing and Urban Development, the Inspec-
tor General of the Department of Housing and Urban Development,
and the Comptroller General of the United States.
(e) CONTRACT TO CONDUCT STUDY.—
(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall enter into a contract, within 90 days of the enactment
of this Act, with a public or nonprofit private entity to conduct
the study under this section, using amounts made available
pursuant to subsection (g).
(2) NATIONAL ACADEMY OF PUBLIC ADMINISTRATION.—The
Secretary shall request the National Academy of Public
Administration to enter into the contract under paragraph (1)
to conduct the study under this section. If such Academy
declines to conduct the study, the Secretary shall carry out
such paragraph through other public or nonprofit private enti-
ties, selected through a competitive process.
(f ) REPORT.—
(1) INTERIM REPORT.—The Secretary shall ensure that, not
later than the expiration of the 6-month period beginning on
the date of the execution of the contract under subsection
(e)(1), the entity conducting the study under this section sub-
mits to the Congress an interim report describing the actions
taken to carry out the study, the actions to be taken to complete
the study, and any findings and recommendations available
at the time.
(2) FINAL REPORT.—The Secretary shall ensure that—
(A) not later than the expiration of the 12-month period
beginning on the date of the execution of the contract
under subsection (e)(1), the study required under this sec-
tion is completed and a report describing the findings and
recommendations as a result of the study is submitted
to the Congress; and
(B) before submitting the report under this paragraph
to the Congress, the report is submitted to the Secretary,
national organizations for public housing agencies, and
other appropriate national organizations at such time to
provide the Secretary and such agencies an opportunity
to review the report and provide written comments on
the report, which shall be included together with the report
upon submission to the Congress under subparagraph (A).
H. R. 4194—167
(g) EFFECTIVE DATE.—This section shall take effect on the
date of the enactment of this Act.
SEC. 564. PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM.
Section 6( j) of the United States Housing Act of 1937 (42
U.S.C. 1437d( j)), as amended by the preceding provisions of this
Act, is further amended—
(1) in paragraph (1)—
(A) by striking subparagraph (B) and inserting the
following new subparagraph:
‘‘(B) The amount and percentage of funds provided to the
public housing agency from the Capital Fund under section
9(d) which remain unobligated by the public housing agency
after 3 years.’’;
(B) in subparagraph (D), by striking ‘‘energy’’ and
inserting ‘‘utility’’;
(C) by transferring and inserting subparagraph (E)
after subparagraph (D);
(D) by redesignating subparagraph (H) as subpara-
graph (K); and
(E) by inserting after subparagraph (G) the following
new subparagraphs:
‘‘(H) The extent to which the public housing agency—
‘‘(i) coordinates, promotes, or provides effective pro-
grams and activities to promote the economic self-suffi-
ciency of public housing residents; and
‘‘(ii) provides public housing residents with opportuni-
ties for involvement in the administration of the public
housing.
‘‘(I) The extent to which the public housing agency—
‘‘(i) implements effective screening and eviction policies
and other anticrime strategies; and
‘‘(ii) coordinates with local government officials and
residents in the project and implementation of such strate-
gies.
‘‘(J) The extent to which the public housing agency is
providing acceptable basic housing conditions.’’;
(2) in paragraph (2)—
(A) in subparagraph (A)(i)—
(i) by inserting after the first sentence the follow-
ing: ‘‘Such procedures shall provide that an agency
that fails on a widespread basis to provide acceptable
basic housing conditions for its residents shall be des-
ignated as a troubled public housing agency. The Sec-
retary may use a simplified set of indicators for public
housing agencies with less than 250 public housing
units.’’; and
(ii) by striking ‘‘under section 14’’ and inserting
‘‘for assistance from the Capital Fund under section
9(d);
(B) in subparagraph (A)(iii), by striking ‘‘under section
14’’ and inserting‘‘for assistance from the Capital Fund
under section 9(d)’’;
(C) in subparagraph (B)(i)—
(i) by inserting ‘‘with more than 250 units’’ after
‘‘public housing agency’’; and
H. R. 4194—168
(ii) by striking ‘‘review conducted under section
14(p)’’ and inserting ‘‘comparable and recent review’’;
and
(D) in the first sentence of subparagraph (C), by insert-
ing ‘‘(if applicable)’’ after ‘‘subparagraph (B)’’;
(3) in paragraph (5)(F), as so redesignated by the preceding
provisions of this Act, by striking ‘‘program under section 14’’
and all that follows and inserting ‘‘program for assistance from
the Capital Fund under section 9(d) and specifies the amount
of assistance the agency received under such program.’’; and
(4) by adding at the end the following new paragraphs:
‘‘(6)(A) To the extent that the Secretary determines such action
to be necessary in order to ensure the accuracy of any certification
made under this section, the Secretary shall require an independent
auditor to review documentation or other information maintained
by a public housing agency pursuant to this section to substantiate
each certification submitted by the agency or corporation relating
to the performance of that agency or corporation.
‘‘(B) The Secretary may withhold, from assistance otherwise
payable to the agency or corporation under section 9, amounts
sufficient to pay for the reasonable costs of any review under
this paragraph.
‘‘(7) The Secretary shall apply the provisions of this subsection
to resident management corporations in the same manner as applied
to public housing agencies.’’.
SEC. 565. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUS-
ING AGENCIES IN SUBSTANTIAL DEFAULT.
(a) IN GENERAL.—Section 6( j)(3) of the United States Housing
Act of 1937 (42 U.S.C. 1437d( j)(3)) is amended—
(1) in subparagraph (A)—
(A) by striking clause (i) and inserting the following
new clause:
‘‘(i) solicit competitive proposals from other public housing
agencies and private housing management agents which (I)
in the discretion of the Secretary, may be selected by existing
public housing residents through administrative procedures
established by the Secretary, and (II) if appropriate, shall pro-
vide for such agents to manage all, or part, of the housing
administered by the public housing agency or all or part of
the other programs of the agency;’’;
(B) in clause (iii), by striking ‘‘under section 14’’ and
inserting ‘‘from the Capital Fund under section 9(d)’’; and
(C) by striking clause (iv) and inserting the following
new clauses:
‘‘(iv) take possession of all or part of the public housing
agency, including all or part of any project or program of
the agency, including any project or program under any other
provision of this title; and
‘‘(v) require the agency to make other arrangements accept-
able to the Secretary and in the best interests of the public
housing residents and families assisted under section 8 for
managing all, or part, of the public housing administered by
the agency or of the programs of the agency.’’; and
(2) by striking subparagraphs (B) through (D) and inserting
the following new subparagraphs:
H. R. 4194—169
‘‘(B)(i) If a public housing agency is identified as troubled under
this subsection, the Secretary shall notify the agency of the troubled
status of the agency.
‘‘(ii)(I) Upon the expiration of the 1-year period beginning on
the later of the date on which the agency receives initial notice
from the Secretary of the troubled status of the agency under
clause (i) and the date of the enactment of the Quality Housing
and Work Responsibility Act of 1998, the agency shall improve
its performance, as measured by the performance indicators estab-
lished pursuant to paragraph (1), by at least 50 percent of the
difference between the most recent performance measurement and
the measurement necessary to remove that agency’s designation
as troubled.
‘‘(II) Upon the expiration of the 2-year period beginning on
the later of the date on which the agency receives initial notice
from the Secretary of the troubled status of the agency under
clause (i) and the date of the enactment of the Quality Housing
and Work Responsibility Act of 1998, the agency shall improve
its performance, as measured by the performance indicators estab-
lished pursuant to paragraph (1), such that the agency is no longer
designated as troubled.
‘‘(III) In the event that a public housing agency designated
as troubled under this subsection fails to comply with the require-
ments set forth in subclause (I) or (II), the Secretary shall—
‘‘(aa) in the case of a troubled public housing agency with
1,250 or more units, petition for the appointment of a receiver
pursuant to subparagraph (A)(ii); or
‘‘(bb) in the case of a troubled public housing agency with
fewer than 1,250 units, either petition for the appointment
of a receiver pursuant to subparagraph (A)(ii), or take posses-
sion of the public housing agency (including all or part of
any project or program of the agency) pursuant to subparagraph
(A)(iv) and appoint, on a competitive or noncompetitive basis,
an individual or entity as an administrative receiver to assume
the responsibilities of the Secretary for the administration of
all or part of the public housing agency (including all or part
of any project or program of the agency).
This subparagraph shall not be construed to limit the courses
of action available to the Secretary under subparagraph (A).
‘‘(IV) During the period between the date on which a petition
is filed under subclause (III)(aa) and the date on which a receiver
assumes responsibility for the management of the public housing
agency under such subclause, the Secretary may take possession
of the public housing agency (including all or part of any project
or program of the agency) pursuant to subparagraph (A)(iv) and
may appoint, on a competitive or noncompetitive basis, an individual
or entity as an administrative receiver to assume the responsibilities
of the Secretary for the administration of all or part of the public
housing agency (including all or part of any project or program
of the agency).
‘‘(C) If a receiver is appointed pursuant to subparagraph (A)(ii),
in addition to the powers accorded by the court appointing the
receiver, the receiver—
‘‘(i) may abrogate any contract to which the United States
or an agency of the United States is not a party that, in
the receiver’s written determination (which shall include the
basis for such determination), substantially impedes correction
H. R. 4194—170
of the substantial default, but only after the receiver determines
that reasonable efforts to renegotiate such contract have failed;
‘‘(ii) may demolish and dispose of all or part of the assets
of the public housing agency (including all or part of any
project of the agency) in accordance with section 18, including
disposition by transfer of properties to resident-supported non-
profit entities;
‘‘(iii) if determined to be appropriate by the Secretary,
may seek the establishment, as permitted by applicable State
and local law, of 1 or more new public housing agencies;
‘‘(iv) if determined to be appropriate by the Secretary,
may seek consolidation of all or part of the agency (including
all or part of any project or program of the agency), as permitted
by applicable State and local laws, into other well-managed
public housing agencies with the consent of such well-managed
agencies; and
‘‘(v) shall not be required to comply with any State or
local law relating to civil service requirements, employee rights
(except civil rights), procurement, or financial or administrative
controls that, in the receiver’s written determination (which
shall include the basis for such determination), substantially
impedes correction of the substantial default.
‘‘(D)(i) If, pursuant to subparagraph (A)(iv), the Secretary takes
possession of all or part of the public housing agency, including
all or part of any project or program of the agency, the Secretary—
‘‘(I) may abrogate any contract to which the United States
or an agency of the United States is not a party that, in
the written determination of the Secretary (which shall include
the basis for such determination), substantially impedes correc-
tion of the substantial default, but only after the Secretary
determines that reasonable efforts to renegotiate such contract
have failed;
‘‘(II) may demolish and dispose of all or part of the assets
of the public housing agency (including all or part of any
project of the agency) in accordance with section 18, including
disposition by transfer of properties to resident-supported non-
profit entities;
‘‘(III) may seek the establishment, as permitted by
applicable State and local law, of 1 or more new public housing
agencies;
‘‘(IV) may seek consolidation of all or part of the agency
(including all or part of any project or program of the agency),
as permitted by applicable State and local laws, into other
well-managed public housing agencies with the consent of such
well-managed agencies;
‘‘(V) shall not be required to comply with any State or
local law relating to civil service requirements, employee rights
(except civil rights), procurement, or financial or administrative
controls that, in the Secretary’s written determination (which
shall include the basis for such determination), substantially
impedes correction of the substantial default; and
‘‘(VI) shall, without any action by a district court of the
United States, have such additional authority as a district
court of the United States would have the authority to confer
upon a receiver to achieve the purposes of the receivership.
‘‘(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary
appoints an administrative receiver to assume the responsibilities
H. R. 4194—171
of the Secretary for the administration of all or part of the public
housing agency (including all or part of any project or program
of the agency), the Secretary may delegate to the administrative
receiver any or all of the powers given the Secretary by this
subparagraph, as the Secretary determines to be appropriate and
subject to clause (iii).
‘‘(iii) An administrative receiver may not take an action
described in subclause (III) or (IV) of clause (i) unless the Secretary
first approves an application by the administrative receiver to
authorize such action.
‘‘(E) The Secretary may make available to receivers and other
entities selected or appointed pursuant to this paragraph such
assistance as the Secretary determines in the discretion of the
Secretary is necessary and available to remedy the substantial
deterioration of living conditions in individual public housing
projects or other related emergencies that endanger the health,
safety, and welfare of public housing residents or families assisted
under section 8. A decision made by the Secretary under this
paragraph shall not be subject to review in any court of the United
States, or in any court of any State, territory, or possession of
the United States.
‘‘(F) In any proceeding under subparagraph (A)(ii), upon a deter-
mination that a substantial default has occurred and without regard
to the availability of alternative remedies, the court shall appoint
a receiver to conduct the affairs of all or part of the public housing
agency in a manner consistent with this Act and in accordance
with such further terms and conditions as the court may provide.
The receiver appointed may be another public housing agency,
a private management corporation, or any other person or appro-
priate entity. The court shall have power to grant appropriate
temporary or preliminary relief pending final disposition of the
petition by the Secretary.
‘‘(G) The appointment of a receiver pursuant to this paragraph
may be terminated, upon the petition of any party, when the court
determines that all defaults have been cured or the public housing
agency is capable again of discharging its duties.
‘‘(H) If the Secretary (or an administrative receiver appointed
by the Secretary) takes possession of a public housing agency
(including all or part of any project or program of the agency),
or if a receiver is appointed by a court, the Secretary or receiver
shall be deemed to be acting not in the official capacity of that
person or entity, but rather in the capacity of the public housing
agency, and any liability incurred, regardless of whether the
incident giving rise to that liability occurred while the Secretary
or receiver was in possession of all or part of the public housing
agency (including all or part of any project or program of the
agency), shall be the liability of the public housing agency.’’.
(b) APPLICABILITY.—The provisions of, and duties and authori-
ties conferred or confirmed by, the amendments made by subsection
(a) shall apply with respect to any action taken before, on, or
after the effective date of this Act and shall apply to any receiver
appointed for a public housing agency before the date of the enact-
ment of this Act.
(c) TECHNICAL CORRECTION REGARDING APPLICABILITY TO SEC-
TION 8.—Section 8(h) of the United States Housing Act of 1937
is amended by inserting ‘‘(except as provided in section 6( j)(3))’’
after ‘‘section 6’’.
H. R. 4194—172
(d) IMPLEMENTATION.—The Secretary may administer the
amendments made by subsection (a) as necessary to ensure the
efficient and effective initial implementation of this section.
(e) APPLICABILITY.—This section shall take effect on, and the
amendments made by this section are made on, and shall apply
beginning upon, the date of the enactment of this Act.
SEC. 566. AUDITS.
Section 5 of the United States Housing Act of 1937 (42 U.S.C.
1437d), as amended by the preceding provisions of this Act, is
further amended by inserting after subsection (g) the following
new subsection:
‘‘(h) AUDITS.—
‘‘(1) BY SECRETARY AND COMPTROLLER GENERAL.—Each con-
tract for contributions for any assistance under this Act to
a public housing agency shall provide that the Secretary, the
Inspector General of the Department of Housing and Urban
Development, and the Comptroller General of the United
States, or any of their duly authorized representatives, shall,
for the purpose of audit and examination, have access to any
books, documents, papers, and records of the public housing
agency that are pertinent to this Act and to its operations
with respect to financial assistance under the this Act.
‘‘(2) WITHHOLDING OF AMOUNTS FOR AUDITS UNDER SINGLE
AUDIT ACT.—The Secretary may, in the sole discretion of the
Secretary, arrange for and pay the costs of an audit required
under chapter 75 of title 31, United States Code. In such
circumstances, the Secretary may withhold, from assistance
otherwise payable to the agency under this Act, amounts suffi-
cient to pay for the reasonable costs of conducting an acceptable
audit, including, when appropriate, the reasonable costs of
accounting services necessary to place the agency’s books and
records in auditable condition. As agreed to by the Secretary
and the Inspector General, the Inspector General may arrange
for an audit under this paragraph.’’.
SEC. 567. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW
ORLEANS.
(a) ESTABLISHMENT.—The Secretary and the Housing Authority
of New Orleans (in this section referred to as the ‘‘Housing Author-
ity’’) shall, pursuant to the cooperative endeavor agreement in effect
between the Secretary and the Housing Authority, establish an
advisory council for the Housing Authority of New Orleans (in
this section referred to as the ‘‘advisory council’’) that complies
with the requirements of this section.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The advisory council shall be appointed
by the Secretary, not later than 90 days after the date of
the enactment of this Act, and shall be composed of the follow-
ing members:
(A) The Inspector General of the Department of Hous-
ing and Urban Development (or the Inspector General’s
designee).
(B) Not more than 7 other members, who shall be
selected for appointment based on their experience in
successfully reforming troubled public housing agencies or
in providing affordable housing in coordination with State
H. R. 4194—173
and local governments, the private sector, affordable hous-
ing residents, or local nonprofit organizations.
(2) PROHIBITION
ON
ADDITIONAL
PAY.—Members of the
advisory council shall serve without compensation, but shall
be reimbursed for travel, subsistence, and other necessary
expenses incurred in the performance of their duties as mem-
bers of the Board using amounts made available for technical
assistance under section 9(h) of the United States Housing
Act of 1937 (as amended by this Act).
(c) FUNCTIONS.—The advisory council shall—
(1) establish standards and guidelines for assessing the
performance of the Housing Authority in carrying out oper-
ational, asset management, and financial functions for purposes
of the reports and finding under subsections (d) and (e), respec-
tively;
(2) provide advice, expertise, and recommendations to the
Housing Authority regarding the management, operation,
repair, redevelopment, revitalization, demolition, and disposi-
tion of public housing projects of the Housing Authority;
(3) report to the Congress under subsection (d) regarding
any progress of the Housing Authority in improving the
performance of its functions; and
(4) make a final finding to the Congress under subsection
(e) regarding the future of the Housing Authority.
(d) QUARTERLY REPORTS.—The advisory council shall report
to the Congress and the Secretary not less than every 3 months
regarding the performance of the Housing Authority and any
progress of the authority in improving its performance and carrying
out its functions.
(e) FINAL FINDING.—Upon the expiration of the 18-month period
that begins upon the appointment under subsection (b)(1) of all
members of the advisory council, the advisory council shall make
and submit to the Congress and the Secretary a finding of whether
the Housing Authority has substantially improved its performance,
the performance of its functions, and the overall condition of the
Authority such that the Authority should be allowed to continue
to operate as the manager of the public housing of the Authority.
In making the finding under this subsection, the advisory council
shall consider whether the Housing Authority has made sufficient
progress in the demolition and revitalization of the Desire Homes
project, the revitalization of the St. Thomas Homes project, the
appropriate allocation of operating subsidy amounts, and the appro-
priate expending of modernization amounts.
(f ) RECEIVERSHIP.—If the advisory council finds under sub-
section (e) that the Housing Authority has not substantially
improved its performance in a manner sufficient that the Authority
should be allowed to continue to operate as the manager of the
public housing of the Authority, the Secretary shall (notwithstand-
ing the conditions required under section 6( j)(3)(A) of the United
States Housing Act of 1937 for action under such section) petition
under clause (ii) of section 6( j)(3)(A) for the appointment of a
receiver for the Housing Authority, which receivership shall be
subject to the provisions of such section.
(g) REGULAR REMEDIES.—Nothing in this section, or in the
cooperative endeavor agreement in effect between the Secretary
and the Housing Authority, may be construed to prevent the Sec-
retary from taking any action with respect to the Housing Authority,
H. R. 4194—174
in accordance with such section 6( j)(3) of the United States Housing
Act of 1937 (42 U.S.C. 1437d( j)(3)), as amended by this Act, that
is authorized under section.
(f ) EFFECTIVE DATE.—This section shall take effect on the
date of the enactment of this Act.
SEC. 568. TREATMENT OF TROUBLED PHA’S.
Section 105 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12705) is amended by adding at the end the
following new subsection:
‘‘(g) TREATMENT OF TROUBLED PUBLIC HOUSING AGENCIES.—
‘‘(1) EFFECT
OF
TROUBLED
STATUS
ON
CHAS.—The com-
prehensive housing affordability strategy (or any consolidated
plan incorporating such strategy) for the State or unit of general
local government in which any troubled public housing agency
is located shall not be considered to comply with the require-
ments under this section unless such plan includes a description
of the manner in which the State or unit will provide financial
or other assistance to such troubled agency in improving its
operations to remove such designation.
‘‘(2) DEFINITION.—For purposes of this subsection, the term
‘troubled public housing agency’ means a public housing agency
that, upon the effective date of the Quality Housing and Work
Responsibility Act of 1998, is designated under section 6( j)(2)
of the United States Housing Act of 1937 as a troubled public
housing agency.’’.
Subtitle F—Safety and Security in Public
and Assisted Housing
SEC. 575. PROVISIONS APPLICABLE ONLY TO PUBLIC HOUSING AND
SECTION 8 ASSISTANCE.
(a) DRUG-RELATED
AND CRIMINAL ACTIVITY UNDER PUBLIC
HOUSING GRIEVANCE PROCEDURE.—Section 6(k) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(k)) is amended, in the matter
following paragraph (6)—
(1) by inserting ‘‘violent or’’ before ‘‘drug-related’’; and
(2) by inserting ‘‘or any activity resulting in a felony convic-
tion,’’ after ‘‘on or off such premises,’’.
(b) TERMINATION OF TENANCY IN PUBLIC HOUSING.—Section
6(l) of the United States Housing Act of 1937 (42 U.S.C. 1437d(l))
is amended—
(1) in paragraph (4) (as so redesignated by the preceding
provisions of this Act)—
(A) by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) a reasonable period of time, but not to exceed
30 days—
‘‘(i) if the health or safety of other tenants, public
housing agency employees, or persons residing in the
immediate vicinity of the premises is threatened; or
‘‘(ii) in the event of any drug-related or violent
criminal activity or any felony conviction;’’; and
(B) in subparagraph (C), by inserting before the semi-
colon at the end the following: ‘‘, except that if a State