IB 
Union Calendar No. 132 
110TH CONGRESS 
1ST SESSION H. R. 1851 
[Report No. 110–216] 
To reform the housing choice voucher program under section 8 of the United 
States Housing Act of 1937. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mrs. BIGGERT, and 
Mr. SHAYS) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
JUNE 28, 2007 
Additional sponsors: Mr. DELAHUNT, Mr. PAYNE, and Mr. DAVIS of Illinois 
JUNE 28, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on March 29, 2007] 
A BILL 
To reform the housing choice voucher program under section 
8 of the United States Housing Act of 1937. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Section 8 Voucher Re-
form Act of 2007’’. 
SEC. 2. INSPECTION OF DWELLING UNITS. 
(a) IN GENERAL.—Section 8(o)(8) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling 
unit for which a housing assistance pay-
ment contract is established under this sub-
section, the public housing agency (or other 
entity pursuant to paragraph (11)) shall 
inspect the unit before any assistance pay-
ment is made to determine whether the 
dwelling unit meets the housing quality 
standards under subparagraph (B), except 
as provided in clause (ii) or (iii) of this 
subparagraph. 
‘‘(ii) 
CORRECTION
OF
NON-LIFE 
THREATENING CONDITIONS.—In the case of 
any dwelling unit that is determined, pur-
suant to an inspection under clause (i), not 
to meet the housing quality standards under 
subparagraph (B), assistance payments 
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may be made for the unit notwithstanding 
subparagraph (C) if failure to meet such 
standards is a result only of non-life threat-
ening conditions. A public housing agency 
making assistance payments pursuant to 
this clause for a dwelling unit shall, 30 
days after the beginning of the period for 
which such payments are made, suspend 
any assistance payments for the unit if any 
deficiency resulting in noncompliance with 
the housing quality standards has not been 
corrected by such time, and may not resume 
such payments until each such deficiency 
has been corrected. 
‘‘(iii) PROJECTS
RECEIVING
CERTAIN 
FEDERAL HOUSING SUBSIDIES.—In the case 
of any property that within the previous 12 
months has been determined to meet housing 
quality and safety standards under any 
Federal housing program inspection stand-
ard, including the program under section 
42 of the Internal Revenue Code of 1986 or 
under subtitle A of title II of the Cranston 
Gonzalez National Affordable Housing Act 
of 1990, a public housing agency may au-
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thorize occupancy before the inspection 
under clause (i) has been completed, and 
may make assistance payments retroactive 
to the beginning of the lease term after the 
unit has been determined pursuant to an 
inspection under clause (i) to meet the hous-
ing quality standards under subparagraph 
(B).’’; 
(2) by striking subparagraph (D) and inserting 
the following new subparagraph: 
‘‘(D) BIENNIAL INSPECTIONS.— 
‘‘(i) 
REQUIREMENT.—Each 
public 
housing agency providing assistance under 
this subsection (or other entity, as provided 
in paragraph (11)) shall, for each assisted 
dwelling unit, make biennial inspections 
during the term of the housing assistance 
payments contract for the unit to determine 
whether the unit is maintained in accord-
ance with the requirements under subpara-
graph (A). The agency (or other entity) 
shall retain the records of the inspection for 
a reasonable time and shall make the 
records available upon request to the Sec-
retary, the Inspector General for the De-
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partment of Housing and Urban Develop-
ment, and any auditor conducting an audit 
under section 5(h). 
‘‘(ii) SUFFICIENT INSPECTION.—An in-
spection of a property shall be sufficient to 
comply with the inspection requirement 
under clause (i) if— 
‘‘(I) the inspection was conducted 
pursuant to requirements under a Fed-
eral, State, or local housing assistance 
program (including the HOME invest-
ment partnerships program under title 
II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 
12721 et seq.)); and 
‘‘(II) pursuant to such inspection, 
the property was determined to meet 
the standards or requirements regard-
ing housing quality or safety applica-
ble to units assisted under such pro-
gram, and, if a non-Federal standard 
was used, the public housing agency 
has certified to the Secretary that such 
standards or requirements provide the 
same protection to occupants of dwell-
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ing units meeting such standards or 
requirements as, or greater protection 
than, the housing quality standards 
under subparagraph (B).’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) ENFORCEMENT OF HOUSING QUALITY 
STANDARDS.— 
‘‘(i) DETERMINATION OF NONCOMPLI-
ANCE.—A dwelling unit that is covered by 
a housing assistance payments contract 
under this subsection shall be considered, for 
purposes of this subparagraph, to be in non-
compliance with the housing quality stand-
ards under subparagraph (B) if— 
‘‘(I) the public housing agency or 
an inspector authorized by the State or 
unit of local government determines 
upon inspection of the unit that the 
unit fails to comply with such stand-
ards; 
‘‘(II) the agency or inspector noti-
fies the owner of the unit in writing of 
such failure to comply; and 
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‘‘(III) the failure to comply is not 
corrected within 90 days after receipt 
of such notice. 
‘‘(ii) WITHHOLDING AND RELEASE OF 
ASSISTANCE AMOUNTS.—The public housing 
agency shall withhold all of the assistance 
amounts under this subsection with respect 
to a dwelling unit that is in noncompliance 
with housing quality standards under sub-
paragraph (B). Subject to clause (iii), the 
agency shall promptly release any withheld 
amounts to the owner of the dwelling unit 
upon completion of repairs that remedy 
such noncompliance. 
‘‘(iii) USE OF WITHHELD ASSISTANCE 
TO PAY FOR REPAIRS.—The public housing 
agency may use such amounts withheld to 
make repairs to the dwelling unit or to con-
tract to have repairs made (or to contract 
with an inspector referred to in clause (i)(I) 
to make or contract for such repairs), and 
shall subtract the cost of such repairs from 
any amounts released to the owner of the 
unit upon remedying such noncompliance. 
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‘‘(iv) PROTECTION
OF
TENANTS.—An 
owner of a dwelling unit may not terminate 
the tenancy of any tenant or refuse to renew 
a lease for such unit because of the with-
holding of assistance pursuant to this sub-
paragraph. 
‘‘(v) TERMINATION OF LEASE OR AS-
SISTANCE PAYMENTS CONTRACT.—If assist-
ance amounts under this section for a dwell-
ing unit are withheld pursuant to clause 
(ii) and the owner does not correct the non-
compliance before the expiration of the lease 
for the dwelling unit and such lease is not 
renewed, the Secretary shall recapture any 
such amounts from the public housing agen-
cy. 
‘‘(vi) APPLICABILITY.—This subpara-
graph shall apply to any dwelling unit for 
which a housing assistance payments con-
tract is entered into or renewed after the 
date of the effectiveness of the regulations 
implementing this subparagraph.’’. 
(b) REGULATIONS.—The Secretary of Housing and 
Urban Development shall issue any regulations necessary 
to carry out the amendment made by subsection (a)(3) not 
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later than the expiration of the 12-month period beginning 
upon the date of the enactment of this Act. Such regulations 
shall take effect not later than the expiration of the 90-day 
period beginning upon such issuance. This subsection shall 
take effect upon enactment of this Act. 
SEC. 3. RENT REFORM AND INCOME REVIEWS. 
(a) RENT FOR PUBLIC HOUSING AND SECTION 8 PRO-
GRAMS.—Section 3 of the United States Housing Act of 
1937 (42 U.S.C. 1437a(a)) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1) by inserting ‘‘LOW-IN-
COME
OCCUPANCY
REQUIREMENT
AND
RENTAL 
PAYMENTS.—’’ after ‘‘(1)’’; and 
(B) by adding at the end the following new 
paragraphs: 
‘‘(6) REVIEWS OF FAMILY INCOME.— 
‘‘(A) FREQUENCY.—Reviews of family in-
come for purposes of this section shall be made— 
‘‘(i) in the case of all families, upon 
the initial provision of housing assistance 
for the family; 
‘‘(ii) annually thereafter, except as 
provided in subparagraph (B)(i); 
‘‘(iii) upon the request of the family, at 
any time the income or deductions (under 
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subsection (b)(5)) of the family change by 
an amount that is estimated to result in a 
decrease of $1,500 (or such lower amount as 
the public housing agency may, at the op-
tion of the agency or owner, establish) or 
more in annual adjusted income; and 
‘‘(iv) at any time the income or deduc-
tions (under subsection (b)(5)) of the family 
change by an amount that is estimated to 
result in an increase of $1,500 or more in 
annual adjusted income, except that any in-
crease in the earned income of a family 
shall not be considered for purposes of this 
clause (except that earned income may be 
considered if the increase corresponds to 
previous decreases under clause (iii)), except 
that a public housing agency or owner may 
elect not to conduct such review in the last 
three months of a certification period. 
‘‘(B) FIXED-INCOME FAMILIES.— 
‘‘(i) SELF CERTIFICATION AND 3-YEAR 
REVIEW.—In the case of any family de-
scribed in clause (ii), after the initial re-
view of the family’s income pursuant to 
subparagraph (A)(i), the public housing 
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agency or owner shall not be required to 
conduct a review of the family’s income 
pursuant to subparagraph (A)(ii) for any 
year for which such family certifies, in ac-
cordance with such requirements as the Sec-
retary shall establish, that the income of the 
family meets the requirements of clause (ii) 
of this subparagraph, except that the public 
housing agency or owner shall conduct a re-
view of each such family’s income not less 
than once every 3 years. 
‘‘(ii) ELIGIBLE
FAMILIES.—A family 
described in this clause is a family who has 
an income, as of the most recent review pur-
suant to subparagraph (A) or clause (i) of 
this subparagraph, of which 90 percent or 
more consists of fixed income, as such term 
is defined in clause (iii). 
‘‘(iii) FIXED INCOME.—For purposes of 
this subparagraph, the term ‘fixed income’ 
includes income from— 
‘‘(I) the supplemental security in-
come program under title XVI of the 
Social Security Act, including supple-
mentary payments pursuant to an 
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agreement for Federal administration 
under section 1616(a) of the Social Se-
curity Act and payments pursuant to 
an agreement entered into under sec-
tion 212(b) of Public Law 93–66; 
‘‘(II) Social Security payments; 
‘‘(III) Federal, State, local and 
private pension plans; and 
‘‘(IV) other periodic payments re-
ceived from annuities, insurance poli-
cies, retirement funds, disability or 
death benefits, and other similar types 
of periodic receipts. 
‘‘(C) IN GENERAL.—Reviews of family in-
come for purposes of this section shall be subject 
to the provisions of section 904 of the Stewart B. 
McKinney Homeless Assistance Amendments Act 
of 1988. 
‘‘(7) CALCULATION OF INCOME.— 
‘‘(A) USE OF PRIOR YEAR’S INCOME.—Ex-
cept as otherwise provided in this paragraph, in 
determining the income of a family for a year, 
a public housing agency or owner may use the 
income of the family as determined by the agen-
cy or owner for the preceding year, taking into 
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consideration any redetermination of income 
during such prior year pursuant to clause (iii) 
or (iv) of paragraph (6)(A). 
‘‘(B) EARNED
INCOME.—For purposes of 
this section, the earned income of a family for a 
year shall be the amount of earned income by the 
family in the prior year minus an amount equal 
to 10 percent of the lesser of such prior year’s 
earned income or $10,000, except that the income 
of a family for purposes of section 16 (relating 
to eligibility for assisted housing and income 
mix) shall be determined without regard to any 
reduction under this subparagraph. 
‘‘(C) 
INFLATIONARY
ADJUSTMENT
FOR 
FIXED INCOME FAMILIES.—If, for any year, a 
public housing agency or owner determines the 
income for any family described in paragraph 
(6)(B)(ii), or the amount of fixed income of any 
other family, based on the prior year’s income or 
fixed income, respectively, pursuant to subpara-
graph (A), such prior year’s income or fixed in-
come, respectively, shall be adjusted by applying 
an inflationary factor as the Secretary shall, by 
regulation, establish. 
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‘‘(D) OTHER INCOME.—If, for any year, a 
public housing agency or owner determines the 
income for any family based on the prior year’s 
income, with respect to prior year calculations of 
types of income not subject to subparagraph (B), 
a public housing agency or owner may make 
other adjustments as it considers appropriate to 
reflect current income. 
‘‘(E) SAFE
HARBOR.—A public housing 
agency or owner may, to the extent such infor-
mation is available to the public housing agency 
or owner, determine the family’s income for pur-
poses of this section based on timely income de-
terminations made for purposes of other means- 
tested Federal public assistance programs (in-
cluding the program for block grants to States 
for temporary assistance for needy families 
under part A of title IV of the Social Security 
Act, a program for medicaid assistance under a 
State plan approved under title XIX of the So-
cial Security Act, and the food stamp program 
as defined in section 3(h) of the Food Stamp Act 
of 1977). The Secretary shall, in consultation 
with other appropriate Federal agencies, develop 
procedures to enable public housing agencies and 
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owners to have access to such income determina-
tions made by other Federal programs. 
‘‘(F) PHA AND
OWNER
COMPLIANCE.—A 
public housing agency or owner may not be con-
sidered to fail to comply with this paragraph or 
paragraph (6) due solely to any de minimus er-
rors made by the agency or owner in calculating 
family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as subsection 
(d). 
(b) INCOME.—Section 3(b) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437a(b)) is amended— 
(1) by striking paragraph (4) and inserting the 
following new paragraph: 
‘‘(4) INCOME.—The term ‘income’ means, with 
respect to a family, income received from all sources 
by each member of the household who is 18 years of 
age or older or is the head of household or spouse of 
the head of the household, plus unearned income by 
or on behalf of each dependent who is less than 18 
years of age, as determined in accordance with cri-
teria prescribed by the Secretary, in consultation with 
the Secretary of Agriculture, subject to the following 
requirements: 
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‘‘(A) INCLUDED AMOUNTS.—Such term in-
cludes recurring gifts and receipts, actual income 
from assets, and profit or loss from a business. 
‘‘(B) EXCLUDED
AMOUNTS.—Such term 
does not include— 
‘‘(i) any imputed return on assets; and 
‘‘(ii) any amounts that would be eligi-
ble for exclusion under section 1613(a)(7) of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1382b(a)(7)). 
‘‘(C) EARNED INCOME OF STUDENTS.—Such 
term does not include earned income of any de-
pendent earned during any period that such de-
pendent is attending school on a full-time basis 
or any grant-in-aid or scholarship amounts re-
lated to such attendance used for the cost of tui-
tion or books. 
‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.— 
Income shall be determined without regard to 
any amounts in or from, or any benefits from, 
any Coverdell education savings account under 
section 530 of the Internal Revenue Code of 1986 
or any qualified tuition program under section 
529 of such Code. 
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‘‘(E) OTHER EXCLUSIONS.—Such term shall 
not include other exclusions from income as are 
established by the Secretary or any amount re-
quired by Federal law to be excluded from con-
sideration as income. The Secretary may not re-
quire a public housing agency or owner to main-
tain records of any amounts excluded from in-
come pursuant to this subparagraph.’’; and 
(2) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted in-
come’ means, with respect to a family, the amount (as 
determined by the public housing agency or owner) of 
the income of the members of the family residing in 
a dwelling unit or the persons on a lease, after any 
deductions from income as follows: 
‘‘(A) ELDERLY AND DISABLED FAMILIES.— 
$725 in the case of any family that is an elderly 
family or a disabled family. 
‘‘(B) DEPENDENTS.—In the case of any 
family that includes a member or members 
who— 
‘‘(i) are less than 18 years of age or at-
tending school or vocational training on a 
full-time basis; or 
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‘‘(ii) is a person with disabilities who 
is 18 years of age or older and resides in 
the household, 
$500 for each such member. 
‘‘(C) HEALTH AND MEDICAL EXPENSES.— 
The amount, if any, by which 10 percent of an-
nual family income is exceeded by the sum of— 
‘‘(i) in the case of any elderly or dis-
abled family, any unreimbursed health and 
medical care expenses; and 
‘‘(ii) any unreimbursed reasonable at-
tendant care and auxiliary apparatus ex-
penses for each handicapped member of the 
family, to the extent necessary to enable any 
member of such family to be employed. 
‘‘(D) PERMISSIVE DEDUCTIONS.—Such ad-
ditional deductions as a public housing agency 
may, at its discretion, establish, except that the 
Secretary shall establish procedures to ensure 
that such deductions do not increase Federal ex-
penditures. 
The Secretary shall annually adjust the amounts of 
the exclusions under subparagraphs (A) and (B), as 
such amounts may have been previously adjusted, by 
applying an inflationary factor as the Secretary 
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shall, by regulation, establish. If the dollar amount of 
any such exclusion determined for any year by apply-
ing such inflationary factor is not a multiple of $25, 
the Secretary shall round such amount to the next 
lowest multiple of $25.’’. 
(c) HOUSING CHOICE VOUCHER PROGRAM.—Para-
graph (5) of section 8(o) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(5)) is amended— 
(1) in the paragraph heading, by striking ‘‘AN-
NUAL REVIEW’’ and inserting ‘‘REVIEWS’’; 
(2) in subparagraph (A)— 
(A) by striking ‘‘the provisions of’’ and in-
serting ‘‘paragraphs (6) and (7) of section 3(a) 
and to’’; and 
(B) by striking ‘‘and shall be conducted 
upon the initial provision of housing assistance 
for the family and thereafter not less than annu-
ally’’; and 
(3) in subparagraph (B), by striking the second 
sentence. 
(d) 
ENHANCED
VOUCHER
PROGRAM.—Section 
8(t)(1)(D) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(t)(1)(D)) is amended by striking ‘‘income’’ 
each place such term appears and inserting ‘‘annual ad-
justed income’’. 
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(e) PROJECT-BASED HOUSING.—Paragraph (3) of sec-
tion 8(c) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(c)(3)) is amended by striking the last sentence. 
(f) IMPACT ON PUBLIC HOUSING REVENUES.— 
(1) INTERACTION
WITH
ASSET
MANAGEMENT 
RULE.—If the Secretary of Housing and Urban De-
velopment determines that the application of the 
amendments made by this section results in a reduc-
tion in the rental income of a public housing agency 
that is not de minimus during the period that the op-
erating formula income is frozen at a level that does 
not fully reflect the changes made by such amend-
ments, the Secretary shall make appropriate adjust-
ments in the formula income of the agency. 
(2) HUD REPORTS ON PUBLIC HOUSING REV-
ENUE IMPACT.—For each of fiscal years 2008 and 
2009, the Secretary of Housing and Urban Develop-
ment shall submit a report to Congress identifying 
and calculating the impact of changes made by the 
amendments made by this section on the revenues and 
costs of operating public housing units. 
(g) EFFECTIVE DATE AND TRANSITION.—The amend-
ments made by this section shall apply with respect to fiscal 
year 2008 and fiscal years thereafter. 
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SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS 
AND INCOME. 
(a) ASSETS.—Section 16 of the United States Housing 
Act of 1937 (42 U.S.C. 1437n) is amended by inserting 
after subsection (d) the following new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON AS-
SETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to para-
graph (3) and notwithstanding any other provision of 
this Act, a dwelling unit assisted under this Act may 
not be rented and assistance under this Act may not 
be provided, either initially or at each recertification 
of family income, to any family— 
‘‘(A) 
whose 
net 
family 
assets 
exceed 
$100,000, as such amount is adjusted annually 
by applying an inflationary factor as the Sec-
retary considers appropriate; or 
‘‘(B) who has a present ownership interest 
in, and a legal right to reside in, real property 
that is suitable for occupancy as a residence, ex-
cept that the prohibition under this subpara-
graph shall not apply to— 
‘‘(i) any property for which the family 
is receiving assistance under this Act; 
‘‘(ii) any person that is a victim of do-
mestic violence; or 
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‘‘(iii) any family that is making a 
good faith effort to sell such property. 
‘‘(2) NET FAMILY ASSETS.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, the term ‘net family assets’ means, 
for all members of the household, the net cash 
value of all assets after deducting reasonable 
costs that would be incurred in disposing of real 
property, savings, stocks, bonds, and other forms 
of capital investment. Such term does not in-
clude interests in Indian trust land, equity ac-
counts in homeownership programs of the De-
partment of Housing and Urban Development, 
or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not in-
clude— 
‘‘(i) the value of personal property, ex-
cept for items of personal property of sig-
nificant value, as the public housing agency 
may determine; 
‘‘(ii) the value of any retirement ac-
count; 
‘‘(iii) any amounts recovered in any 
civil action or settlement based on a claim 
of malpractice, negligence, or other breach of 
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duty owed to a member of the family and 
arising out of law, that resulted in a mem-
ber of the family being disabled (under the 
meaning given such term in section 1614 of 
the Social Security Act (42 U.S.C. 1382c)); 
and 
‘‘(iv) the value of any Coverdell edu-
cation savings account under section 530 of 
the Internal Revenue Code of 1986 or any 
qualified tuition program under section 529 
of such Code. 
‘‘(C) TRUST FUNDS.—In cases where a trust 
fund has been established and the trust is not 
revocable by, or under the control of, any mem-
ber of the family or household, the value of the 
trust fund shall not be considered an asset of a 
family if the fund continues to be held in trust. 
Any income distributed from the trust fund shall 
be considered income for purposes of section 3(b) 
and any calculations of annual family income, 
except in the case of medical expenses for a 
minor. 
‘‘(D) SELF-CERTIFICATION.—A public hous-
ing agency or owner may determine the net as-
sets of a family, for purposes of this section, 
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