I
105TH CONGRESS
2D SESSION
H. R. 3545
To amend section 8 of the United States Housing Act of 1937 to ensure
that the tenant-based rental assistance program under such section is
carried out in an efficient and fair manner.
IN THE HOUSE OF REPRESENTATIVES
MARCH 25, 1998
Mr. BORSKI introduced the following bill; which was referred to the Committee
on Banking and Financial Services
A BILL
To amend section 8 of the United States Housing Act of
1937 to ensure that the tenant-based rental assistance
program under such section is carried out in an efficient
and fair manner.
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 ‘‘Neighborhood Integ-
rity and Responsibility Act’’.
SEC. 2. RENT REASONABLENESS TEST.
(a) HOUSING
CERTIFICATE
PROGRAM.—Section
8(c)(2) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)(2)) is amended by adding at the end the
following new subparagraph:
‘‘(D)(i) Each public housing agency administering as-
sistance provided under the housing certificate program
under this section shall ensure that the rent charged for
each dwelling unit assisted by the agency is reasonable in
comparison with rents charged for comparable unassisted
units available in the private residential rental market,
by—
‘‘(I) reviewing all rents for units under consid-
eration by families assisted under the certificate pro-
gram; and
‘‘(II) reviewing all rent increases for units
under lease by families assisted under such program.
If an agency determines that the rent (or rent increase)
for a unit is not reasonable, the agency shall disapprove
a lease for such unit.
‘‘(ii) For purposes of this subparagraph, rent com-
parisons shall be conducted by comparing the rent of the
assisted dwelling unit with the rent of comparable unas-
sisted units that are located in a geographical area, deter-
mined by the agency and approved by the Secretary that—
‘‘(I) is geographically smaller than the applica-
ble housing area used for the establishment of fair
market rentals under paragraph (1);
‘‘(II) has a continuous boundary; and
‘‘(III) exhibits a commonality of geographic, de-
mographic, housing, or other characteristics that
make it appropriate for use under this subpara-
graph, including characteristics such as consisting of
a recognized or identifiable neighborhood or geo-
graphic area, proximity to or identification with a
particular location, structure, or feature, having a
population with similar incomes, or containing hous-
ing a significant portion of which is similar in age,
cost, type, or design.’’.
(b) HOUSING VOUCHER PROGRAM.—The last sen-
tence of paragraph (10) of section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(10)) is
amended by striking ‘‘may’’ and inserting ‘‘shall’’.
(c) CONDITION
ON RECEIPT
OF ADMINISTRATIVE
FEES.—Section 8(q) of the United States Housing Act of
1937 (42 U.S.C. 1437f(q)) is amended by adding at the
end the following new paragraph:
‘‘(5) Notwithstanding any other provision of this sub-
section, the fee under this subsection attributable to any
dwelling unit for any fiscal year may be paid to the public
housing agency only if the agency has complied, during
the preceding fiscal year, with the requirement under sub-
section (c)(2)(D) or (o)(10), as applicable, to such dwell-
ing unit.’’.
SEC. 3. LIMITATION ON ASSISTED UNITS OWNED BY SINGLE
OWNER.
Section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) is amended by inserting after sub-
section (k) the following new subsection:
‘‘(l) OWNERSHIP LIMITATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), a single public housing agency
may not provide tenant-based assistance under this
section for more than 5 dwelling units that are
owned by any single owner.
‘‘(2) WAIVER.—A public housing agency may
waive the applicability of the limitation under para-
graph (1) with respect to an owner if the agency de-
termines that all dwelling units owned by such
owner and assisted or to be assisted with tenant-
based assistance under this section are, at that time,
in compliance with housing quality standards estab-
lished by the Secretary for purposes of this section
and any applicable State or local laws relating to
housing 
habitability, 
construction, 
maintenance,
safety, health, and sanitation.
‘‘(3) PROTECTION OF CURRENT OWNERS.—
‘‘(A) IN GENERAL.—If, at any time, a sin-
gle owner owns more than 5 protected dwelling
units, such protected dwelling units in excess of
5 shall not be considered at such time for pur-
poses of applying the numerical limitation
under paragraph (1) to such owner.
‘‘(B) PROTECTED
DWELLING
UNITS.—A
dwelling unit shall be considered to be a pro-
tected dwelling unit at any time for purposes of
this paragraph only if the dwelling unit, at that
time, is occupied by a tenant who—
‘‘(i) is an assisted family on whose be-
half tenant-based assistance under this
section is provided;
‘‘(ii) on the date of the enactment of
the Neighborhood Integrity and Respon-
sibility Act occupied such unit and, at such
time, was assisted with tenant-based as-
sistance under this section; and
‘‘(iii) has, without interruption since
such date of enactment, continued to oc-
cupy such unit and continued to be as-
sisted with such assistance.
‘‘(4) OWNER.—The Secretary shall issue regu-
lations defining the term ‘single owner’ for purposes
of this subsection. The regulations shall provide
that, with respect to any person or entity, any other
person or entity owned or controlled by such person
or entity (including any such affiliate or subsidiary
of such person or entity) shall be considered a single
owner for purposes of this subsection.’’.
SEC. 4. RENT PAID BY ASSISTED FAMILIES.
(a) EXCEPTIONS TO GENERAL RENT RULE.—Section
3(a)(1) of the United States Housing Act of 1937 (42
U.S.C. 1437a(1)) is amended in the matter preceding sub-
paragraph (A) by striking ‘‘section 8(c)(3)(B)’’ and insert-
ing ‘‘subparagraph (B) or (C) of section 8(c)(3)’’.
(b) TENANT RENT PAYMENT UNDER CERTIFICATE
PROGRAM.—Section 8(c)(3) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended—
(1) in the first sentence of subparagraph (A),
by inserting before the period at the end the follow-
ing: ‘‘or subparagraph (B) or (C) of this paragraph,
as applicable’’; and
(2) in subparagraph (B)(i), by striking the mat-
ter that precedes clause I and inserting the follow-
ing:
‘‘(B)(i) Notwithstanding section 3(a)(1) and subpara-
graph (B) of this paragraph, a family receiving tenant-
based assistance under subsection (b) may pay for rent
more than the amount determined under such provisions
if—’’;
(3) by redesignating subparagraph (B) (as so
amended) as subparagraph (C); and
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) A family on whose behalf tenant-based assist-
ance under subsection (b) is provided for a dwelling unit
having a maximum monthly rent under the contract equal
to or exceeding 50 percent of the applicable fair market
rental for the area shall pay as rent for the dwelling unit
the greater of the following two amounts:
‘‘(i) The amount determined for the family
under section 3(a)(1).
‘‘(ii) For a dwelling unit having a maximum
monthly rent under the contract—
‘‘(I) that is equal to or exceeds 75 percent
of the applicable fair market rental for the
area, the amount that is equal to 50 percent of
the contract rent for the unit.
‘‘(II) that is equal to or exceeds 50 percent
of the applicable fair market rental for the area
but is less than 75 percent of such fair market
rental, the amount that is equal to 30 percent
of the contract rent for the unit.’’.
(c) 
MONTHLY
ASSISTANCE
PAYMENT
UNDER
VOUCHER PROGRAM.—Section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘The’’ and inserting ‘‘(A)
Except as provided in paragraph (2), the’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(B) The monthly assistance payment under this
subsection for any family renting a dwelling unit having
a rent equal to or exceeding 50 percent of the applicable
payment standard for the area shall be the amount by
which the payment standard exceeds the greater of the
following two amounts:
‘‘(i) The amount determined for the family pur-
suant to subparagraph (A).
‘‘(ii) For a dwelling unit having a rent—
‘‘(I) that is equal to or exceeds 75 percent
of the applicable payment standard for the
area, the amount that is equal to 50 percent of
the rent for the unit.
‘‘(II) that is equal to or exceeds 50 percent
of the applicable payment standard for the area
but is less than 75 percent of such payment
standard, the amount that is equal to 30 per-
cent of the rent for the unit.’’.
(d) CONFORMING AMENDMENTS.—Section 8 of the
United States Housing Act of 1937 (42 U.S.C.
1437f(c)(1)(B)) is amended—
(1) in clause (b) of the second sentence of sub-
section (c)(1), by striking ‘‘paragraph (3)(B)’’ and
inserting ‘‘paragraph (3)(C)’’; and
(2) in subsection (y)(6)(A), by striking ‘‘Sub-
section 
(c)(3)(B)’’ 
and 
inserting 
‘‘Subsection
(c)(3)(C)’’.
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