176
the housing assistance payments contract included
pursuant to section 351(c)(4); and
(2) to establish procedures for assisted families to
notify the agency of any noncompliance with such
provisions.
SEC. 
303. 
ELIGIBILITY 
OF 
PHA’S 
FOR 
ASSISTANCE
AMOUNTS.
The Secretary may provide amounts available for
housing assistance under this title pursuant to the formula
established under section 304(a) to a public housing agency
only if—
(1) the agency has submitted a local housing
management plan to the Secretary for such fiscal year
and applied to the Secretary for such assistance;
(2) the plan has been determined to comply with
the requirements under section 106 and the Secretary
has not notified the agency that the plan fails to com-
ply with such requirements;
(3) no member of the board of directors or other
governing body of the agency, or the executive direc-
tor, has been convicted of a felony; and
(4) the agency has not been disqualified for as-
sistance pursuant to title V.
SEC. 304. ALLOCATION OF AMOUNTS.
(a) FORMULA ALLOCATION.—
177
(1) IN GENERAL.—When amounts for assistance
under this title are first made available for reserva-
tion, after reserving amounts in accordance with sub-
sections (b)(3) and (c), the Secretary shall allocate
such amounts, only among public housing agencies
meeting the requirements under this title to receive
such assistance, on the basis of a formula that is es-
tablished in accordance with paragraph (2) and based
upon appropriate criteria to reflect the needs of dif-
ferent States, areas, and communities, using the most
recent data available from the Bureau of the Census
of the Department of Commerce and the comprehen-
sive housing affordability strategy under section 105
of the Cranston-Gonzalez National Affordable Hous-
ing Act (or any consolidated plan incorporating such
strategy) for the applicable jurisdiction. The Sec-
retary may establish a minimum allocation amount,
in which case only the public housing agencies that,
pursuant to the formula, are provided an amount
equal to or greater than the minimum allocation
amount, shall receive an allocation.
(2) REGULATIONS.—The formula under this sub-
section shall be established by regulation issued by the
Secretary. Notwithstanding sections 563(a) and
565(a) of title 5, United States Code, any proposed
178
regulation containing such formula shall be issued
pursuant to a negotiated rulemaking procedure under
subchapter III of chapter 5 of such title and the Sec-
retary shall establish a negotiated rulemaking com-
mittee for development of any such proposed regula-
tions.
(b) ALLOCATION CONSIDERATIONS.—
(1) LIMITATION
ON
REALLOCATION
FOR
AN-
OTHER STATE.—Any amounts allocated for a State or
areas or communities within a State that are not
likely to be used within the fiscal year for which the
amounts are provided shall not be reallocated for use
in another State, unless the Secretary determines that
other areas or communities within the same State
(that are eligible for amounts under this title) cannot
use the amounts within the same fiscal year.
(2) EFFECT OF RECEIPT OF TENANT-BASED AS-
SISTANCE FOR DISABLED FAMILIES.—The Secretary
may not consider the receipt by a public housing
agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing Act,
or the amount received, in approving amounts under
this title for the agency or in determining the amount
of such assistance to be provided to the agency.
179
(3) EXEMPTION FROM FORMULA ALLOCATION.—
The formula allocation requirements of subsection (a)
shall not apply to any assistance under this title that
is approved in appropriation Acts for uses that the
Secretary determines are incapable of geographic allo-
cation, including amendments of existing housing as-
sistance payments contracts, renewal of such con-
tracts, assistance to families that would otherwise lose
assistance due to the decision of the project owner to
prepay the project mortgage or not to renew the hous-
ing assistance payments contract, assistance to pre-
vent displacement from public or assisted housing or
to provide replacement housing in connection with the
demolition or disposition of public housing, assistance
for relocation from public housing, assistance in con-
nection with protection of crime witnesses, assistance
for conversion from leased housing contracts under
section 23 of the United States Housing Act of 1937
(as in effect before the enactment of the Housing and
Community Development Act of 1974), and assistance
in support of the property disposition and portfolio
management functions of the Secretary.
(c) RECAPTURE OF AMOUNTS.—
(1) AUTHORITY.—In each fiscal year, from any
budget authority made available for assistance under
180
this title or section 8 of the United States Housing
Act of 1937 (as in effect before the effective date of the
repeal under section 601(b) of this Act) that is obli-
gated to a public housing agency but remains unobli-
gated by the agency upon the expiration of the 8-
month period beginning upon the initial availability
of such amounts for obligation by the agency, the Sec-
retary may deobligate an amount, as determined by
the Secretary, not exceeding 50 percent of such unob-
ligated amount.
(2) USE.—The Secretary may reallocate and
transfer any amounts deobligated under paragraph
(1) only to public housing agencies in areas that the
Secretary determines have received less funding than
other areas, based on the relative needs of all areas.
SEC. 305. ADMINISTRATIVE FEES.
(a) FEE FOR ONGOING COSTS OF ADMINISTRATION.—
(1) IN GENERAL.—The Secretary shall establish
fees for the costs of administering the choice-based
housing assistance program under this title.
(2) FISCAL YEAR 1998.—
(A) CALCULATION.—For fiscal year 1998,
the fee for each month for which a dwelling unit
is covered by a contract for assistance under this
title shall be—
181
(i) in the case of a public housing
agency that, on an annual basis, is admin-
istering a program for not more than 600
dwelling units, 7.65 percent of the base
amount; and
(ii) in the case of an agency that, on
an annual basis, is administering a pro-
gram for more than 600 dwelling units—
(I) for the first 600 units, 7.65
percent of the base amount; and
(II) for any additional dwelling
units under the program, 7.0 percent
of the base amount.
(B) BASE AMOUNT.—For purposes of this
paragraph, the base amount shall be the higher
of—
(i) the fair market rental established
under section 8(c) of the United States
Housing Act of 1937 (as in effect imme-
diately before the effective date of the repeal
under section 601(b) of this Act) for fiscal
year 1993 for a 2-bedroom existing rental
dwelling unit in the market area of the
agency, and
183
(1) the costs of preliminary expenses, in the
amount of $500, for a public housing agency, but
only in the first year that the agency administers a
choice-based housing assistance program under this
title, and only if, immediately before the effective date
of this Act, the agency was not administering a ten-
ant-based rental assistance program under the United
States Housing Act of 1937 (as in effect immediately
before such effective date), in connection with its ini-
tial increment of assistance received;
(2) the costs incurred in assisting families who
experience difficulty (as determined by the Secretary)
in obtaining appropriate housing under the pro-
grams; and
(3) extraordinary costs approved by the Sec-
retary.
(c) TRANSFER OF FEES IN CASES OF CONCURRENT
GEOGRAPHICAL JURISDICTION.—In each fiscal year, if any
public housing agency provides tenant-based rental assist-
ance under section 8 of the United States Housing Act of
1937 or housing assistance under this title on behalf of a
family who uses such assistance for a dwelling unit that
is located within the jurisdiction of such agency but is also
within the jurisdiction of another public housing agency,
the Secretary shall take such steps as may be necessary to