(c) EXCLUSION OF EARNED INCOME OF RESIDENTS
WHO OBTAIN EMPLOYMENT FROM RENT DETERMINA-
TIONS.—
(1) IN GENERAL.—Section 3(a) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)) is
amended—
(A) in the third sentence of paragraph (1),
by striking ‘‘paragraph (2)’’ and inserting
‘‘paragraphs (2) and (3)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) EXCLUSION OF EARNED INCOME FROM RENT
DETERMINATION
FOR FAMILIES PREVIOUSLY UNEM-
PLOYED.—Notwithstanding any other provision of law, a
public housing agency shall provide that, for all units in
public housing administered by the agency, the rent pay-
able under subsection (b) for any such unit occupied by
a family whose income increases as a result of employment
of a member of the family who was previously unemployed
for 1 or more years, may not—
‘‘(A) be increased as a result of the increased
income due to such employment during the period
that begins upon the commencement of such employ-
ment and ends upon the second annual redetermina-
tion of the rent for and family composition of the
family occurring thereafter;
‘‘(B) during any 12-month period occurring
during the 36 months succeeding the expiration of
the period under subparagraph (A) for the family,
be increased due to the continued employment of
such family member by more than one-third of the
difference between (i) the rent being paid by the
family upon expiration of such period, and (ii) the
amount of rent that the family would pay but for
the applicability of this paragraph; and
‘‘(C) in any case, exceed the amount determined
under paragraph (1) or (2).’’.
(d) EXCLUSION FROM INCOME OF EARNINGS FROM
JOB TRAINING
AND SELF-SUFFICIENCY PROGRAMS.—
Section 3 of the United States Housing Act of 1937 (42
U.S.C. 1437a) is amended—
(1) in subsection (b)(4), by inserting before the
period at the end the following: ‘‘, and except that
the earnings of and benefits to any resident of public
housing or any unit assisted under section 8 result-
ing from enrollment and participation in a program
providing employment training and supportive serv-
ices in accordance with the Family Support Act of
1988, section 22 of this Act, the Job Training Part-
nership Act, Subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act, part F
of title IV of the Social Security Act, or any com-
parable Federal, State, or local law shall not be con-
sidered as income for the purposes of determining a
limitation on the amount of rent paid by the resi-
dent during the period that the resident enrolls and
participates in such program’’; and
(2) by striking the undesignated paragraph at
the end of subsection (c)(3) (as added by section
515(b) of the Cranston-Gonzalez National Afford-
able Housing Act).
(3) Section 957 of the Cranston-Gonzalez Na-
tional Affordable Housing Act is hereby repealed.
(e) APPLICABILITY.—Notwithstanding the amend-
ments made by this section, any resident of public housing
participating in the program under the authority con-
tained in the undesignated paragraph at the end of section
3(c)(3) of the United States Housing Act of 1937 (as
added by section 515(b) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (Public Law 101–625; 104
Stat. 4199)), as such paragraph existed before the date
of enactment of this Act, shall continue to be governed
by such authority.
(f) 
PERFORMANCE
FUNDING
SYSTEM.—Section
9(a)(3)(B) of the United States Housing Act of 1937 (42
U.S.C. 1437g(a)(3)(B)) is amended—
(1) in clause (iv), by striking ‘‘and’’ at the end;
(2) in (v), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new
clause:
‘‘(vi) the amount of any reduced revenue result-
ing from the exclusion of income of public housing
residents pursuant to section 3(b)(5)(E) shall be cal-
culated and included in the amount of the payment
received under this section by the public housing
agency administering the public housing in which
such residents reside;’’.
(g) EFFECTIVE DATE.—The amendments under this
section shall take effect on October 1, 1995.
(h) REGULATIONS.—The Secretary shall issue any
final regulations necessary to implement the amendments
made by this section, which shall take effect on October
1, 1995. The regulations shall be issued after notice and
opportunity for public comment in accordance with the
procedures under section 553 of title 5, United States
Code, applicable to substantive rules (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).
SEC. 104. SALE OF PUBLIC HOUSING TO NON-PROFIT
INTERMEDIARIES.
The first sentence of section 5(h) of the United
States Housing Act of 1937 (42 U.S.C. 1437c(h)) is
amended by striking ‘‘its lower income tenants’’ and in-
serting: ‘‘low-income families residing in public housing or
to non-profit organizations for resale to low-income fami-
lies residing in public housing’’.
SEC. 105. REPEAL OF LEAST-COST LIMITATION ON PUBLIC
HOUSING NEW CONSTRUCTION.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended by striking subsection (h).
SEC. 106. REGULATORY RELIEF AND PAPERWORK REDUC-
TION FOR HIGH-PERFORMING PUBLIC HOUS-
ING AGENCIES.
(a) WAIVER OF RULES AND REPORTS.—Section 6(j)
of the United States Housing Act of 1937 (42 U.S.C.
1437d(j)) is amended by adding at the end the following
new paragraph:
‘‘(5)(A) Except as provided in subparagraph (B), the
Secretary may, for public housing agencies designated
pursuant to this subsection as high performing public
housing agencies with respect to a fiscal year, waive (by
regulation issued under subparagraph (C)) the applicabil-
ity for the ensuing fiscal year of regulatory requirements
otherwise applicable to public housing agencies to the ex-
tent appropriate, as determined by the Secretary, to facili-
tate more efficient operation of such agencies.
‘‘(B) The Secretary may not waive the applicability
of any provision—
‘‘(i) limiting occupancy of public housing to
low-income families;
‘‘(ii) under section 18 requiring replacement of
units in the case of demolition or disposition;
‘‘(iii) under the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970;
‘‘(iv) that prohibits, or the purpose of which is
to protect persons against, discrimination on the
basis of race, color, religion, sex, marital status, na-
tional origin, age, or handicap, or that relates to fair
housing or equal opportunity; or
‘‘(v) under chapter 75 of title 31, United States
Code.
‘‘(C) During fiscal year 1995, the Secretary shall
publish in the Federal Register a proposed rule providing
for the waiver of the regulations to be waived pursuant
to this paragraph and identifying such regulations. The
Secretary shall publish such proposed rule at a time deter-
mined by the Secretary to be sufficient to provide notice
and an opportunity for public comment before issuance of