I
103D CONGRESS
2D SESSION
H. R. 4432
To provide relief from regulatory requirements inhibiting the effectiveness
and productivity of public housing agencies.
IN THE HOUSE OF REPRESENTATIVES
MAY 17, 1994
Mr. BEREUTER introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
A BILL
To provide relief from regulatory requirements inhibiting the
effectiveness and productivity of public housing agencies.
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
Regulatory Relief Act’’.
SEC. 2. AUTHORITY TO WAIVE PUBLIC HOUSING PROGRAM
REQUIREMENTS.
Title I of the United States Housing Act of 1937 (42
U.S.C. 1437 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 27. WAIVER OF PUBLIC HOUSING PROGRAM RE-
QUIREMENTS.
‘‘(a) AUTHORITY.—Upon the written request of a
public housing agency or resident management corpora-
tion, the Secretary may authorize the agency or corpora-
tion to establish policies for the operation, maintenance,
management, and development (including modernization)
of one or more public housing projects and, in connection
with granting such authority and except as provided in
subsection (b), may waive or modify (with respect to the
project or projects)—
‘‘(1) the requirements of this Act applicable to
public housing; and
‘‘(2) any requirements applicable to the project
or projects under other provisions of law that the
Secretary determines are not consistent with the
policies proposed for the project or projects.
‘‘(b) LIMITATION.—The Secretary may not waive or
modify—
‘‘(1) any provision of this Act or any other pro-
vision of law that limits occupancy of public housing
dwelling units to low-income families;
‘‘(2) under section 18 of this Act that requires
replacement of dwelling units in the case of demoli-
tion or disposition of public housing (except that the
limitation on the use of tenant-based assistance to
applications proposing demolition or disposition of
200 or more units may be waived);
‘‘(3) any provision of the Uniform Relocation
Assistance and Real Property Acquisition Policies
Act of 1970;
‘‘(4) any provision of law that relates to equal
opportunity, nondiscrimination, or the environment;
or
‘‘(5) any provision of this Act or any other pro-
vision of law that relates to labor standards.
‘‘(c) REQUEST FOR WAIVER.—A request under sub-
section (a) shall—
‘‘(1) specify the provision or provisions of law
to be waived or modified and the waivers or modi-
fications proposed;
‘‘(2) identify the public housing projects for
which the waivers or modifications are requested;
‘‘(3) describe the policies to be effective for the
projects for which the waivers or modifications are
requested; and
‘‘(4) describe the costs to the public housing
agency or resident management corporation, and to
the Federal Government, of the waivers or modifica-
tions requested and the change of policies proposed.
management corporation, subject to the requirements of
this section.
‘‘(f) APPLICABILITY OF STATE AND LOCAL LAWS.—
The provisions of any applicable State and local laws shall
apply to any public housing agency, resident management
corporation, and public housing project with respect to
which authority is granted under subsection (a).
‘‘(g) REPORTS.—The Secretary shall require each
public housing agency and resident management corpora-
tion for which a request under subsection (a) is approved
to submit a report to the Secretary annually for each year
during the term for which the authority granted under
subsection (a) is effective. The report shall describe the
activities, operations, and policies of the agency or cor-
poration during the year for which the report is submitted.
‘‘(h) DEFINITION.—For purposes of this section, the
term ‘resident management corporation’ means a resident
management corporation established in accordance with
the requirements of the Secretary under section 20.’’.
SEC. 3. PHA RETENTION OF SAVINGS REALIZED THROUGH
EFFICIENT MANAGEMENT.
Section 6(e) of the United States Housing Act of
1937 (42 U.S.C. 1437d(e)) is amended to read as follows:
‘‘(e) TREATMENT OF SAVINGS.—Each contract for
contributions shall provide that whenever in any year the
receipts of a public housing agency in connection with a
low-income housing project exceed its expenditures (in-
cluding debt service, operation, maintenance, establish-
ment of reserves, and other costs and charges) and the
Secretary determines that such excess resulted from in-
creased efficiency in the operation of the agency—
‘‘(1) an amount equal to one-half of such excess
shall be applied, or set aside for application, to pur-
poses which, in the determination of the Secretary,
will effect a reduction in the amount of subsequent
annual contributions; and
‘‘(2) an amount equal to one-half of such excess
shall be applied to operating reserve established for
the project and shall not be considered in subse-
quent years in calculating the operating subsidies
provided under section 9 to the public housing agen-
cy, except to the extent proposed by the agency in
its operating budget.’’.
SEC. 4. AVAILABILITY OF PUBLIC HOUSING MODERNIZA-
TION FUNDS DURING TERM OF PLAN.
Section 14 of the United States Housing Act of 1937
(42 U.S.C. 1437l) is amended—
(1) in subsection (d)(3)(A), by striking ‘‘within
each 12-month period covered by such plan’’;
(2) in subsection (e)(1)(D), by striking ‘‘at
least a schedule’’ and inserting ‘‘a listing’’;
(3) in subsection (e)(3)(B), by adding at the
end the following new sentence: ‘‘This section may
not be construed to require a public housing agency
to amend its comprehensive plan under paragraph
(1) to be able to (A) use assistance amounts for pur-
poses consistent with the plan but not according to
the schedule of actions to be taken under the plan,
or (B) use assistance amounts provided to an agency
for a fiscal year in another fiscal year covered by the
plan for purposes consistent with the plan, notwith-
standing the annual statement of activities by the
agency under subparagraph (A).’’;
(4) in subsection (f)(1)(A), by striking ‘‘speci-
fied for such year in’’ and inserting ‘‘anticipated to
be conducted during such year under’’;
(5) in subsection (g), by striking ‘‘to meet the
objectives for the preceding year’’ and inserting
‘‘during the preceding year to meet the objectives’’;
and
(6) in subsection (o), by striking ‘‘for the pur-
poses’’ and all that follows through ‘‘appropriate’’
and inserting the following: ‘‘in any year covered by
the plan for the agency under subsection (d)(4) or
(e)(1)(D), as appropriate, that was approved by the
Secretary and for any purpose specified under or
consistent with such plan, notwithstanding the
schedule included in such plan pursuant to sub-
section (d)(3)(A) or (e)(1)(D), as appropriate’’.
SEC. 5. RECAPTURE OF PUBLIC HOUSING MODERNIZATION
FUNDS.
Section 14(g) of the United States Housing Act of
1937 (42 U.S.C. 1437(l)(g)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) The Secretary may establish a system for recap-
turing and redistributing amounts provided to public
housing agencies under this subsection, which shall—
‘‘(A) provide for the recapture of such amounts
only from an agency that, in the determination of
the Secretary pursuant to a review under subsection
(e)(4)(B) or an audit under subsection (e)(4)(C),
has not made reasonable progress in carrying out
modernization projects approved by the Secretary
under the comprehensive plan for the agency under
subsection (d)(4) or (e);
‘‘(B) provide for the redistribution of such re-
captured amounts for use by other public housing
agencies that, in the determination of the Secretary,
need such amounts to carry out the comprehensive
plans for such agencies and are capable of using
such amounts in a timely manner;
‘‘(C) provide for redistribution to the agencies
referred to in subparagraph (B) based on an alloca-
tion system that takes into consideration the for-
mula established pursuant to subsection (k)(2)(A);
and
‘‘(D) establish an annual schedule for redis-
tribution of amounts recaptured.’’.
SEC. 6. AUTHORITY FOR PHA’S TO BORROW AGAINST FU-
TURE 
PUBLIC 
HOUSING 
MODERNIZATION
FUNDS.
Section 14 of the United States Housing Act of 1937
(42 U.S.C. 1437l) is amended by adding at the end the
following new subsection:
‘‘(q) AUTHORITY TO BORROW AGAINST FUTURE AS-
SISTANCE.—
‘‘(1) IN GENERAL.—A public housing agency
may, with the approval of the Secretary, enter into
an agreement to pay any assistance for which the
agency may become eligible under this section to en-
sure the repayment of notes or other obligations is-
sued by the agency for the purpose of financing de-
velopment, rehabilitation, or modernization of public
housing.
‘‘(2) TERMS.—Notes or other obligations for
which assistance under this section is pledged shall
be in such form and denominations, have such matu-
rities not exceeding 30 years, and be subject to such
other conditions as the Secretary may prescribe. The
Secretary may not deny a guarantee under this sub-
section on the basis of the proposed repayment pe-
riod for the obligation, unless the period exceeds 30
years or the Secretary determines that the period
causes the obligation to constitute an unacceptable
financial risk.
‘‘(3) LIMITATION ON AMOUNT OF OUTSTANDING
OBLIGATIONS.—Assistance under this section may
not be pledged for the repayment of any obligation
if the total outstanding principal of all obligations
for which such assistance is pledged would thereby
exceed an amount equal to 5 times the amount of
assistance provided under this section during the
most recently completed fiscal year to the agency is-
suing the obligation.
‘‘(4) REPAYMENT.—Notwithstanding any other
provision of this section, assistance provided to an
agency under this section may be used in the pay-
ment of principal and interest due (including such
servicing, underwriting, and other costs as the Sec-
retary may prescribe) on the notes or other obliga-
tions issued by the public housing agency pursuant
to this subsection.’’.
SEC. 7. STUDY OF ACQUISITION AND LABOR REQUIRE-
MENTS FOR PUBLIC HOUSING AGENCIES.
(a) STUDY.—The Secretary of Housing and Urban
Development shall conduct a study to determine the effi-
ciency of the procedures and requirements applicable to
procurement by public housing agencies of materials, sup-
plies, systems, appliances, labor, and services used in
maintaining, operating, and modernizing public housing
projects. Under the study, the Secretary shall—
(1) compare the existing procurement system
for public housing agencies to—
(A) a system of procurement under which
public housing agencies procure materials, sup-
plies, systems, appliances, labor, and services
for use in maintaining, operating, and mod-
ernizing public housing projects without being
subject to any requirements established by the
Secretary or any other Federal laws or regula-
tions regarding procurement; and
(B) a system of procurement that operates
in the manner described under subparagraph
(A), except that under such system the Sec-
retary would annually review the procurement
policies and actions of each public housing
agency for the preceding year and would have
the authority to establish limitations on pro-
curement policies and activities determined by
the Secretary to have instituted inappropriate
procurement policies or engaged in inappropri-
ate procurement activities;
(2) determine the advantages and disadvan-
tages of procurement pursuant to the existing pro-
curement system for public housing agencies and the
systems referred to in subparagraphs (A) and (B) of
paragraph (1); and
(3) determine the effect of the requirements
under section 12 of the United States Housing Act
of 1937 (relating to labor standards) on the afford-
ability of dwelling units in public housing.
(b) REPORT.—The Secretary of Housing and Urban
Development shall submit a report to the Congress de-
scribing the study, the findings of the study, and any rec-
ommendations resulting from the study, not later than the
expiration of the 2-year period beginning on the date of
the enactment of this Act.
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