public comment as provided under section 107(e) or under
the requirements applicable to comprehensive housing af-
fordability strategy for the relevant jurisdiction.
SEC. 224. ADMISSION PROCEDURES.
(a) ADMISSION REQUIREMENTS.—A local housing and
management authority shall ensure that each family resid-
ing in a public housing development owned or administered
by the authority is admitted in accordance with the proce-
dures established under this title by the authority and the
income limits under section 222.
(b) AVAILABILITY OF CRIMINAL RECORDS.—
(1) AVAILABILITY.—Notwithstanding any other
provision of Federal, State, or local law, upon the re-
quest of any local housing and management author-
ity, the National Crime Information Center, police
departments, and any other law enforcement entities
shall provide information to the authority regarding
the criminal convictions of applicants for, or resi-
dents of, public housing for the purpose of applicant
screening, lease enforcement, and eviction.
(2) CONTENT.—The information provided under
paragraph (1) may not include information regard-
ing any criminal conviction of such an applicant or
resident for any act (or failure to act) occurring be-
fore the applicant or resident reached 18 years of age.
(3) CONFIDENTIALITY.—A local housing and
management authority receiving information under
this subsection may use such information only for the
purposes provided in this subsection and such infor-
mation may not be disclosed to any person who is not
an officer or employee of the authority. The Secretary
shall, by regulation, establish procedures necessary to
ensure that information provided to a local housing
and management authority under this subsection is
used, and confidentiality of such information is
maintained, as required under this subsection.
(4) PENALTY.—Any person who knowingly and
willfully requests or obtains any information concern-
ing an applicant for, or resident of, public housing
pursuant to the authority under this subsection under
false pretenses, or any person who knowingly and
willfully discloses any such information in any man-
ner to any individual not entitled under any law to
receive it, shall be guilty of a misdemeanor and fined
not more than $5,000. The term ‘‘person’’ as used in
this paragraph shall include an officer or employee of
any local housing and management authority.
(5) CIVIL ACTION.—Any applicant for, or resi-
dent of, public housing affected by (A) a negligent or
knowing disclosure of information referred to in this
section about such person by an officer or employee
of any local housing and management authority,
which disclosure is not authorized by this subsection,
or (B) any other negligent or knowing action that is
inconsistent with this subsection, may bring a civil
action for damages and such other relief as may be
appropriate against any officer or employee of any
local housing and management authority responsible
for such unauthorized action. The district court of the
United States in the district in which the affected ap-
plicant or resident resides, in which such unauthor-
ized action occurred, or in which the officer or em-
ployee alleged to be responsible for any such unau-
thorized action resides, shall have jurisdiction in such
matters. Appropriate relief that may be ordered by
such district courts shall include reasonable attorney’s
fees and other litigation costs.
(6) FEES.—A local housing and management
authority may pay a reasonable fee to obtain infor-
mation under this subsection.
(c) NOTIFICATION
OF APPLICATION DECISIONS.—A
local housing and management authority shall establish
procedures designed to provide for notification to an appli-
cant for admission to public housing of the determination
with respect to such application, the basis for the deter-
mination, and, if the applicant is determined to be eligible
for admission, the projected date of occupancy (to the extent
such date can reasonably be determined). If an authority
denies an applicant admission to public housing, the au-
thority shall notify the applicant that the applicant may
request an informal hearing on the denial within a reason-
able time of such notification.
(d) CONFIDENTIALITY FOR VICTIMS OF DOMESTIC VIO-
LENCE.—A local housing and management authority shall
be subject to the restrictions regarding release of informa-
tion relating to the identity and new residence of any fam-
ily in public housing that was a victim of domestic violence
that are applicable to shelters pursuant to the Family Vio-
lence Prevention and Services Act. The authority shall work
with the United States Postal Service to establish proce-
dures consistent with the confidentiality provisions in the
Violence Against Women Act of 1994.
(e) TRANSFERS.—A local housing and management
authority may apply, to each public housing resident seek-
ing to transfer from one development to another develop-
ment owned or operated by the authority, the screening pro-
cedures applicable at such time to new applicants for public
housing.
SEC. 225. FAMILY RENTAL PAYMENT.
(a) RENTAL CONTRIBUTION BY RESIDENT.—A family
shall pay as monthly rent for a dwelling unit in public
housing the amount that the local housing and management
authority determines is appropriate with respect to the fam-
ily and the unit, which shall be—
(1) based upon factors determined by the author-
ity, which may include the adjusted income of the
resident, type and size of dwelling unit, operating
and other expenses of the authority, or any other fac-
tors that the authority considers appropriate; and
(2) an amount that is not less than the mini-
mum monthly rental amount under subsection (b)(1)
nor more than any maximum monthly rental amount
established for the dwelling unit pursuant to sub-
section (b)(2).
In determining the amount of the rent charged for a dwell-
ing unit, a local housing and management authority shall
take into consideration the characteristics of the population
served by the authority, the goals of the local housing man-
agement plan for the authority, and the goals under the
comprehensive housing affordability strategy under section
105 of the Cranston-Gonzalez National Affordable Housing
Act (or any consolidated plan incorporating such strategy)
for the applicable jurisdiction.
(b) ALLOWABLE RENTS.—
(1) MINIMUM RENTAL.—Each local housing and
management authority shall establish, for each dwell-
ing unit in public housing owned or administered by
the authority, a minimum monthly rental contribu-
tion, which—
(A) may not be less than $25;
(B) shall include any portion of the cost of
utilities for the unit for which the resident is re-
sponsible; and
(C) may be increased annually by the au-
thority, except that no such annual increase may
exceed 10 percent of the amount of the minimum
monthly rental contribution in effect for the pre-
ceding year.
(2) MAXIMUM RENTAL.—Each local housing and
management authority may establish, for each dwell-
ing unit in public housing owned or administered by
the authority, a maximum monthly rental amount,
which shall be an amount determined by the author-
ity which is based on, but does not exceed—
(A) the average, for dwelling units of simi-
lar size in public housing developments owned
and operated by such authority, of operating ex-
penses attributable to such units;
30 percent of the area median income, the Secretary
shall review the maximum and minimum monthly
rental amounts established by the authority.
(3) MODIFICATION OF MAXIMUM AND MINIMUM
RENTAL AMOUNTS.—If, pursuant to review under this
subsection, the Secretary determines that the maxi-
mum and minimum rental amounts for a large local
housing and management authority are not appro-
priate to serve the needs of the low-income population
of the jurisdiction served by the authority (taking into
consideration the financial resources and costs of the
authority), as identified in the approved local housing
management plan of the authority, the Secretary may
require the authority to modify the maximum and
minimum monthly rental amounts.
(4) LARGE
LHMA.—For purposes of this sub-
section, the term ‘‘large local housing and manage-
ment authority’’ means a local housing and manage-
ment authority that owns or operates 1250 or more
public housing dwelling units.
(e) PHASE-IN OF RENT CONTRIBUTION INCREASES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), for any family residing in a dwelling unit
in public housing upon the date of the enactment of
this Act, if the monthly contribution for rental of an
assisted dwelling unit to be paid by the family upon
initial applicability of this title is greater than the
amount paid by the family under the provisions of
the United States Housing Act of 1937 immediately
before such applicability, any such resulting increase
in rent contribution shall be—
(A) phased in equally over a period of not
less than 3 years, if such increase is 30 percent
or more of such contribution before initial appli-
cability; and
(B) limited to not more than 10 percent per
year if such increase is more than 10 percent but
less than 30 percent of such contribution before
initial applicability.
(2) EXCEPTION.—The minimum rent contribu-
tion requirement under subsection (b)(1)(A) shall
apply to each family described in paragraph (1) of
this subsection, notwithstanding such paragraph.
SEC. 226. LEASE REQUIREMENTS.
In renting dwelling units in a public housing develop-
ment, each local housing and management authority shall
utilize leases that—
(1) do not contain unreasonable terms and con-
ditions;
(2) obligate the local housing and management
authority to maintain the development in compliance
with the housing quality requirements under section
232;
(3) require the local housing and management
authority to give adequate written notice of termi-
nation of the lease, which shall not be less than—
(A) the period provided under the applica-
ble law of the jurisdiction or 14 days, whichever
is less, in the case of nonpayment of rent;
(B) a reasonable period of time, but not to
exceed 14 days, when the health or safety of other
residents or local housing and management au-
thority employees is threatened; and
(C) the period of time provided under the
applicable law of the jurisdiction, in any other
case;
(4) require that the local housing and manage-
ment authority may not terminate the tenancy except
for violation of the terms or conditions of the lease,
violation of applicable Federal, State, or local law, or
for other good cause;
(5) provide that the local housing and manage-
ment authority may terminate the tenancy of a pub-
lic housing resident for any activity, engaged in by
a public housing resident, any member of the resi-
dent’s household, or any guest or other person under
the resident’s control, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other residents or employees of the local housing
and management authority or other manager of
the housing;
(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises by,
persons residing in the immediate vicinity of the
premises; or
(C) is criminal activity (including drug-re-
lated criminal activity);
(6) provide that any occupancy in violation of
the provisions of section 227(a)(4) shall be cause for
termination of tenancy; and
(7) specify that, with respect to any notice of
eviction or termination, notwithstanding any State
law, a public housing resident shall be informed of the
opportunity, prior to any hearing or trial, to exam-
ine any relevant documents, records or regulations di-
rectly related to the eviction or termination.
SEC. 227. DESIGNATED HOUSING FOR ELDERLY AND DIS-
ABLED FAMILIES.
(a) AUTHORITY TO PROVIDE DESIGNATED HOUS-
ING.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law, a local housing and management
authority for which the information required under
subsection (c) is in effect may provide public housing
developments (or portions of developments) designated
for occupancy by (A) only elderly families, (B) only
disabled families, or (C) elderly and disabled families.
(2) PRIORITY FOR OCCUPANCY.—In determining
priority for admission to public housing developments
(or portions of developments) that are designated for
occupancy as provided in paragraph (1), the local
housing and management authority may make units
in such developments (or portions) available only to
the types of families for whom the development is des-
ignated.
(3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES.—
If a local housing and management authority deter-
mines that there are insufficient numbers of elderly
families to fill all the units in a development (or por-
tion of a development) designated under paragraph
(1) for occupancy by only elderly families, the author-
ity may provide that near-elderly families may oc-
cupy dwelling units in the development (or portion).
(4) LIMITATION
ON
OCCUPANCY
IN
DEVELOP-
MENTS FOR ELDERLY FAMILIES.—
(A) IN GENERAL.—Subject only to the pro-
visions of subsection (b) and notwithstanding
any other provision of law, a dwelling unit in
a development (or portion of a development) that
is designated under paragraph (1) for occupancy
by only elderly families or by only elderly and
disabled families shall not be occupied by any
individual who is not an elderly person and—
(i) who currently illegally uses a con-
trolled substance; or
(ii) whose history of illegal use of a
controlled substance or use of alcohol, or
current use of alcohol, provides reasonable
cause for the local housing and management
authority to believe that the occupancy by
such individual may interfere with the
health, safety, or right to peaceful enjoyment
of the premises by other residents.
(B) CONSIDERATION OF REHABILITATION.—
In determining whether, pursuant to subpara-
graph (A), to deny occupancy to any individual
based on a history of use of a controlled sub-
stance or alcohol, a local housing and manage-
ment authority may consider the factors under
section 105(b).
(b) STANDARDS REGARDING EVICTIONS.—
(1) LIMITATION.—Except as provided in para-
graph (2), any resident who is lawfully residing in
a dwelling unit in a development designated for occu-
pancy under subsection (a)(1) may not be evicted or
otherwise required to vacate such unit because of the
designation of the development (or portion of a devel-
opment) or because of any action taken by the Sec-
retary or any local housing and management author-
ity to carry out this section.
(2) REQUIREMENT TO EVICT NONELDERLY TEN-
ANTS IN HOUSING DESIGNATED FOR ELDERLY FAMI-
LIES WHO HAVE CURRENT DRUG OR ALCOHOL ABUSE
PROBLEMS.—The local housing and management au-
thority administering a development (or portion of a
development) described in subsection (a)(4)(A) shall
evict any individual who occupies a dwelling unit in
such a development and who currently illegally uses
a controlled substance or whose current use of alcohol
provides a reasonable cause for the authority to be-
lieve that the occupancy by such individual may
interfere with the health, safety, or right to peaceful
enjoyment of the premises by other residents. This
paragraph may not be construed to require a local
housing and management authority to evict any other
individual who occupies the same dwelling unit as the
individual required to be evicted.
(c) REQUIRED INCLUSIONS IN LOCAL HOUSING MAN-
AGEMENT PLAN.—
(1) IN GENERAL.—A local housing and manage-
ment authority may designate a development (or por-
tion of a development) for occupancy under subsection
(a)(1) only if the authority, as part of the authority’s
local housing management plan—
(A) establishes that the designation of the
development is necessary—
(i) to achieve the housing goals for the
jurisdiction under the comprehensive hous-
ing affordability strategy under section 105
of the Cranston-Gonzalez National Afford-
able Housing Act (or any consolidated plan
incorporating such strategy); and
(ii) to meet the housing needs of the
low-income population jurisdiction; and
(B) submits a description of—
(i) the development (or portion of a de-
velopment) to be designated;
(ii) the types of residents for which the
development is to be designated;
(iii) any services designed to meet the
special needs of residents to be provided to
residents of the designated development (or
portion);
(iv) how the design and related facili-
ties (as such term is defined in section
202(d)(8) of the Housing Act of 1959) of the
development accommodate the special envi-
ronmental needs of the intended occupants.
(2) 5-YEAR
EFFECTIVENESS.—The information
required under paragraph (1) shall be effective for
purposes of designation of a public housing develop-
ment (or portion thereof) under this section only for
the 5-year period that begins upon notification under
section 108(a) of the local housing and management
authority that the information complies with the re-
quirements under section 107 and this subsection. A
local housing and management authority may extend
the effectiveness of the designation and information
for an additional 2-year period beginning upon the
expiration of such period (or the expiration of any
previous extension period under this sentence) by up-
dating such information in the local housing manage-
ment plan for the authority.
(3) TREATMENT OF EXISTING PLANS.—Notwith-
standing any other provision of this section, a local
housing and management authority shall be consid-
ered to have submitted the information required
under this subsection if the authority has submitted
to the Secretary an application and allocation plan
under this section (as in effect before the date of the
enactment of this Act) that have not been approved or
disapproved before such date of enactment.
(4) SAVINGS PROVISION.—Any application and
allocation plan approved under section 7 of the Unit-
ed States Housing Act of 1937 (as in effect before the
date of the enactment of this Act) before such date of
enactment shall be considered to be information re-
quired under this subsection that is in effect for pur-
poses of this section for the 5-year period beginning
upon such approval.
(d) RELOCATION ASSISTANCE.—A local housing and
management authority that designates any existing devel-
opment or building, or portion thereof, for occupancy as
provided under subsection (a) shall provide, to each person
and family relocated in connection with such designation—
(1) notice of the designation and relocation, as
soon as is practicable for the authority and the person
or family;
(2) comparable housing (including appropriate
services and design features), which may include rent-
al assistance under title III, at a rental rate that is
comparable to that applicable to the unit from which
the person or family has vacated; and
(3) payment of actual, reasonable moving ex-
penses.
(e) INAPPLICABILITY TO INDIAN HOUSING.—The pro-
visions of this section shall not apply with respect to low-
income housing developed or operated pursuant to a con-
tract between the Secretary and an Indian housing author-
ity.
Subtitle C—Management
SEC. 231. MANAGEMENT PROCEDURES.
(a) SOUND MANAGEMENT.—A local housing and man-
agement authority that receives grant amounts under this
title shall establish and comply with procedures and prac-
tices sufficient to ensure that the public housing develop-
ments owned or administered by the authority are operated
in a sound manner.
(b) MANAGEMENT BY OTHER ENTITIES.—Except as
otherwise provided under this Act, a local housing and
management authority may contract with any other entity
to perform any of the management functions for public
housing owned or operated by the local housing and man-
agement authority.
SEC. 232. HOUSING QUALITY REQUIREMENTS.
(a) IN GENERAL.—Each local housing and manage-
ment authority that receives grant amounts under this Act
shall maintain its public housing in a condition that com-
plies—
(1) in the case of public housing located in a ju-
risdiction which has in effect laws, regulations, stand-
ards, or codes regarding habitability of residential
dwellings that provide protection to residents of the
dwellings that is equal to or greater than the protec-
tion provided under the housing quality standards es-
tablished under subsection (b), with such applicable
laws, regulations, standards, or codes; or
(2) in the case of public housing located in a ju-
risdiction which does not have in effect laws, regula-
tions, standards, or codes described in subparagraph
(A), with the housing quality standards established
under subsection (b).
(b) FEDERAL HOUSING QUALITY STANDARDS.—The
Secretary shall establish housing quality standards under
this subsection that ensure that public housing dwelling
units are safe, clean, and healthy. Such standards shall in-
clude requirements relating to habitability, including main-
tenance, health and sanitation factors, condition, and con-
struction of dwellings, and shall, to the greatest extent prac-
ticable, be consistent with the standards established under
section 328(b). The Secretary shall differentiate between
major and minor violations of such standards.
(c) DETERMINATIONS.—Each local housing and man-
agement authority providing housing assistance shall iden-
tify, in the local housing management plan of the authority,
whether the authority is utilizing the standard under para-
graph (1) or (2) of subsection (a) and, if the authority uti-
lizes the standard under paragraph (1), shall certify in such
plan that the applicable State or local laws, regulations,
standards, or codes comply with the requirements under
such paragraph.
(d) ANNUAL INSPECTIONS.—Each local housing and
management authority that owns or operates public housing
shall make an annual inspection of each public housing de-
velopment to determine whether units in the development
are maintained in accordance with the requirements under
subsection (a). The authority shall submit the results of such
inspections to the Secretary and the Inspector General for
the Department of Housing and Urban Development and
such results shall be available to the Housing Foundation
and Accreditation Board established under title IV and any
auditor conducting an audit under section 432.
SEC. 233. EMPLOYMENT OF RESIDENTS.
A local housing and management authority may em-
ploy public housing residents in any activities engaged in
by the authority. The Secretary shall require local housing
and management authorities, in using grant amounts pro-
vided under this title, to make their best efforts to enter
into agreements with contractors and subcontractors of the
authority to provide residents of public housing with em-
ployment opportunities, job training, and internships.
SEC. 234. RESIDENT COUNCILS AND RESIDENT MANAGE-
MENT CORPORATIONS.
(a) RESIDENT COUNCILS.—The residents of a public
housing development may establish a resident council for
the development for purposes of consideration of issues re-
lating to residents, representation of resident interests, and
coordination and consultation with a local housing and
management authority. A resident council shall be an orga-
nization or association that—
(1) is nonprofit in character;
(2) is representative of the residents of the eligi-
ble housing;
(3) adopts written procedures providing for the
election of officers on a regular basis; and
(4) has a democratically elected governing board,
which is elected by the residents of the eligible hous-
ing.
(b) RESIDENT MANAGEMENT CORPORATIONS.—
(1) ESTABLISHMENT.—The residents of a public
housing development may establish a resident man-
agement corporation for the purpose of assuming the
responsibility for the management of the development
under section 235 or purchasing a development.
(2) REQUIREMENTS.—A resident management
corporation shall be a corporation that—
(A) is nonprofit in character;
(B) is organized under the laws of the State
in which the development is located;
(C) has as its sole voting members the resi-
dents of the development; and
(D) is established by the resident council for
the development or, if there is not a resident
council, by a majority of the households of the
development.
SEC. 235. MANAGEMENT BY RESIDENT MANAGEMENT COR-
PORATION.
(a) AUTHORITY.—A local housing and management
authority may enter into a contract under this section with
a resident management corporation to provide for the man-
agement of public housing developments by the corporation.
(b) CONTRACT.—A contract under this section for
management of public housing developments by a resident
management corporation shall establish the respective man-
agement rights and responsibilities of the corporation and
the local housing and management authority. The contract
shall be consistent with the requirements of this Act appli-
cable to public housing development and may include spe-
cific terms governing management personnel and com-
pensation, access to public housing records, submission of
and adherence to budgets, rent collection procedures, resi-
dent income verification, resident eligibility determina-
tions, resident eviction, the acquisition of supplies and ma-
terials and such other matters as may be appropriate. The
contract shall be treated as a contracting out of services.
(c) BONDING AND INSURANCE.—Before assuming any
management responsibility for a public housing develop-
ment, the resident management corporation shall provide
fidelity bonding and insurance, or equivalent protection.
Such bonding and insurance, or its equivalent, shall be ade-
quate to protect the Secretary and the local housing and
management authority against loss, theft, embezzlement, or
fraudulent acts on the part of the resident management cor-
poration or its employees.
(d) BLOCK GRANT ASSISTANCE AND INCOME.—A con-
tract under this section shall provide for—
(1) the local housing and management authority
to provide a portion of the block grant assistance
under this title to the resident management corpora-
tion for purposes of operating the public housing de-
velopment covered by the contract and performing
such other eligible activities with respect to the devel-
opment as may be provided under the contract;
(2) the amount of income expected to be derived
from the development itself (from sources such as
rents and charges);
(3) the amount of income to be provided to the
development from the other sources of income of the
local housing and management authority (such as in-
terest income, administrative fees, and rents); and
(4) any income generated by a resident manage-
ment corporation of a public housing development
that exceeds the income estimated under the contract
shall be used for eligible activities under section
203(a).
(e) CALCULATION OF TOTAL INCOME.—
(1) MAINTENANCE
OF
SUPPORT.—Subject to
paragraph (2), the amount of assistance provided by
a local housing and management authority to a pub-
lic housing development managed by a resident man-
agement corporation may not be reduced during the
3-year period beginning on the date on which the
resident management corporation is first established
for the development.
(2) REDUCTIONS AND INCREASES IN SUPPORT.—
If the total income of a local housing and manage-
ment authority is reduced or increased, the income
provided by the local housing and management au-
thority to a public housing development managed by
a resident management corporation shall be reduced
or increased in proportion to the reduction or in-
crease in the total income of the authority, except that
any reduction in block grant amounts under this title
to the authority that occurs as a result of fraud,
waste, or mismanagement by the authority shall not
affect the amount provided to the resident manage-
ment corporation.
SEC. 236. TRANSFER OF MANAGEMENT OF CERTAIN HOUS-
ING TO INDEPENDENT MANAGER AT RE-
QUEST OF RESIDENTS.
(a) AUTHORITY.—The Secretary may transfer the re-
sponsibility and authority for management of specified
housing (as such term is defined in subsection (h)) from
a local housing and management authority to an eligible
management entity, in accordance with the requirements
of this section, if—
(1) such housing is owned or operated by a local
housing and management authority that is—
(A) not accredited under section 433 by the
Housing Foundation and Accreditation Board;
or
(B) is designated as a troubled authority
under section 431(a)(2); and
(2) the Secretary determines that—
(A) such housing has deferred maintenance,
physical deterioration, or obsolescence of major
systems and other deficiencies in the physical
plant of the project;
(B) such housing is occupied predominantly
by families with children who are in a severe
state of distress, characterized by such factors as
high rates of unemployment, teenage pregnancy,
single-parent households, long-term dependency
on public assistance and minimal educational
achievement;
(C) such housing is located in an area such
that the housing is subject to recurrent vandal-
ism and criminal activity (including drug-relat-
ed criminal activity); and
(D) the residents can demonstrate that the
elements of distress for such housing specified in
subparagraphs (A) through (C) can be remedied
by an entity that has a demonstrated capacity to
manage, with reasonable expenses for moderniza-
tion.
Such a transfer may be made only as provided in this sec-
tion, pursuant to the approval by the Secretary of a request
for the transfer made by a majority vote of the residents
for the specified housing, after consultation with the local
housing and management authority for the specified hous-
ing.
(b) BLOCK GRANT ASSISTANCE.—Pursuant to a con-
tract under subsection (c), the Secretary shall require the
local housing and management authority for specified hous-
ing to provide to the manager for the housing, from any
block grant amounts under this title for the authority, fair
and reasonable amounts for operating costs for the housing.
The amount made available under this subsection to a man-
ager shall be determined by the Secretary based on the share
for the specified housing of the total block grant amounts
for the local housing and management authority transfer-
ring the housing, taking into consideration the operating
and capital improvement needs of the specified housing, the
operating and capital improvement needs of the remaining
public housing units managed by the local housing and
management authority, and the local housing management
plan of such authority.
(c) CONTRACT
BETWEEN
SECRETARY
AND
MAN-
AGER.—
(1) REQUIREMENTS.—Pursuant to the approval
of a request under this section for transfer of the man-
agement of specified housing, the Secretary shall enter
into a contract with the eligible management entity.
(2) TERMS.— A contract under this subsection
shall contain provisions establishing the rights and
responsibilities of the manager with respect to the
specified housing and the Secretary and shall be con-
sistent with the requirements of this Act applicable to
public housing developments.
(d) COMPLIANCE WITH LOCAL HOUSING MANAGE-
MENT PLAN.—A manager of specified housing under this
section shall comply with the approved local housing man-
agement plan applicable to the housing and shall submit
such information to the local housing and management au-
thority from which management was transferred as may
be necessary for such authority to prepare and update its
local housing management plan.
(e) DEMOLITION AND DISPOSITION BY MANAGER.—A
manager under this section may demolish or dispose of spec-
100
ified housing only if, and in the manner, provided for in
the local housing management plan for the authority trans-
ferring management of the housing.
(f) LIMITATION ON LHMA LIABILITY.—A local hous-
ing and management authority that is not a manager for
specified housing shall not be liable for any act or failure
to act by a manager or resident council for the specified
housing.
(g) TREATMENT OF MANAGER.—To the extent not in-
consistent with this section and to the extent the Secretary
determines not inconsistent with the purposes of this Act,
a manager of specified housing under this section shall be
considered to be a local housing and management authority
for purposes of this title.
(h) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) ELIGIBLE MANAGEMENT ENTITY.—The term
‘‘eligible management entity’’ means, with respect to
any public housing development, any of the following
entities that has been accredited in accordance with
section 433:
(A) NONPROFIT ORGANIZATION.—A public
or private nonprofit organization, which shall—
(i) include a resident management cor-
poration or resident management organiza-
101
tion and, as determined by the Secretary, a
public or private nonprofit organization
sponsored by the local housing and manage-
ment authority that owns the development;
and
(ii) not include the local housing and
management authority that owns the devel-
opment.
(B) FOR-PROFIT ENTITY.—A for-profit en-
tity that has demonstrated experience in provid-
ing low-income housing.
(C) STATE
OR
LOCAL
GOVERNMENT.—A
State or local government, including an agency
or instrumentality thereof.
(D) LOCAL HOUSING AND MANAGEMENT AU-
THORITY.—A local housing and management au-
thority (other than the local housing and man-
agement authority that owns the development).
The term does not include a resident council.
(2) MANAGER.—The term ‘‘manager’’ means any
eligible management entity that has entered into a
contract under this section with the Secretary for the
management of specified housing.
(3) NONPROFIT.—The term ‘‘nonprofit’’ means,
with respect to an organization, association, corpora-
102
tion, or other entity, that no part of the net earnings
of the entity inures to the benefit of any member,
founder, contributor, or individual.
(4) PRIVATE
NONPROFIT
ORGANIZATION.—The
term ‘‘private nonprofit organization’’ means any
private organization (including a State or locally
chartered organization) that—
(A) is incorporated under State or local
law;
(B) is nonprofit in character;
(C) complies with standards of financial ac-
countability acceptable to the Secretary; and
(D) has among its purposes significant ac-
tivities related to the provision of decent housing
that is affordable to low-income families.
(5) LOCAL HOUSING AND MANAGEMENT AUTHOR-
ITY.—The term ‘‘local housing and management au-
thority’’ has the meaning given such term in section
103(a), except that it does not include Indian housing
authorities.
(6) PUBLIC
NONPROFIT
ORGANIZATION.—The
term ‘‘public nonprofit organization’’ means any pub-
lic entity that is nonprofit in character.
(7) SPECIFIED HOUSING.—The term ‘‘specified
housing’’ means a public housing development or de-
103
velopments, or a portion of a development or develop-
ments, for which the transfer of management is re-
quested under this section. The term includes one or
more contiguous buildings and an area of contiguous
row houses, but in the case of a single building, the
building shall be sufficiently separable from the re-
mainder of the development of which it is part to
make transfer of the management of the building fea-
sible for purposes of this section.
SEC. 237. RESIDENT OPPORTUNITY PROGRAM.
(a) PURPOSE.—The purpose of this section is to en-
courage increased resident management of public housing
developments, as a means of improving existing living con-
ditions in public housing developments, by providing in-
creased flexibility for public housing developments that are
managed by residents by—
(1) permitting the retention, and use for certain
purposes, of any revenues exceeding operating and
project costs; and
(2) providing funding, from amounts otherwise
available, for technical assistance to promote forma-
tion and development of resident management enti-
ties.
For purposes of this section, the term ‘‘public housing devel-
opment’’ includes one or more contiguous buildings or an
104
area of contiguous row houses the elected resident councils
of which approve the establishment of a resident manage-
ment corporation and otherwise meet the requirements of
this section.
(b) PROGRAM REQUIREMENTS.—
(1) RESIDENT COUNCIL.—As a condition of en-
tering into a resident opportunity program, the elect-
ed resident council of a public housing development
shall approve the establishment of a resident manage-
ment corporation that complies with the requirements
of section 234(b)(2). When such approval is made by
the elected resident council of a building or row house
area, the resident opportunity program shall not
interfere with the rights of other families residing in
the development or harm the efficient operation of the
development. The resident management corporation
and the resident council may be the same organiza-
tion, if the organization complies with the require-
ments applicable to both the corporation and council.
(2) PUBLIC
HOUSING
MANAGEMENT
SPECIAL-
IST.—The resident council of a public housing devel-
opment, in cooperation with the local housing and
management authority, shall select a qualified public
housing management specialist to assist in determin-
ing the feasibility of, and to help establish, a resident
105
management corporation and to provide training and
other duties agreed to in the daily operations of the
development.
(3) MANAGEMENT
RESPONSIBILITIES.—A resi-
dent management corporation that qualifies under
this section, and that supplies insurance and bonding
or equivalent protection sufficient to the Secretary
and the local housing and management authority,
shall enter into a contract with the authority estab-
lishing the respective management rights and respon-
sibilities of the corporation and the authority. The
contract shall be treated as a contracting out of serv-
ices and shall be subject to the requirements under
section 234 for such contracts.
(4) ANNUAL AUDIT.—The books and records of a
resident management corporation operating a public
housing development shall be audited annually by a
certified public accountant. A written report of each
such audit shall be forwarded to the local housing and
management authority and the Secretary.
(c) COMPREHENSIVE IMPROVEMENT ASSISTANCE.—
Public housing developments managed by resident manage-
ment corporations may be provided with modernization as-
sistance from grant amounts under this title for purposes
of renovating such developments. If such renovation activi-