A bill to authorize the Moving to Work Charter program to enable public housing agencies to improve the effectiveness of Federal housing assistance, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Moving to Work Charter Program Act 
of 2006''.

SEC. 2. MOVING TO WORK CHARTER PROGRAM AUTHORIZATION.

    (a) Purpose.--The purpose of this Act is--
            (1) to give public housing agencies and the Secretary of 
        Housing and Urban Development (in this Act referred to as the 
        ``Secretary'') the flexibility to design and implement various 
        approaches for providing and administering housing assistance 
        that achieves greater cost effectiveness in using Federal 
        housing assistance to address local housing needs for low-
        income families;
            (2) to reduce administrative burdens on public housing 
        agencies providing such assistance;
            (3) to give incentives to assisted families to work and 
        become economically self-sufficient;
            (4) to increase housing choices for low-income families; 
        and
            (5) to enhance the ability of low-income elderly residents 
        and persons with disabilities to live independently.
    (b) Moving to Work Charter Program Authority.--
            (1) Contract authority.--
                    (A) In general.--Subject to the phase-in 
                requirements under subparagraph (B), the Secretary 
                shall enter into charter contracts, beginning in fiscal 
                year 2007, with up to 250 public housing agencies 
                administering the public housing program or the section 
                8 housing assistance program under the United States 
                Housing Act of 1937 (42 U.S.C. 1437 et seq.).
                    (B) Phase-in.--The phase-in requirements under this 
                subparagraph are as follows:
                            (i) By the end of fiscal year 2007, the 
                        Secretary shall have entered into charter 
                        contracts with at least 80 public housing 
                        agencies described in subparagraph (A).
                            (ii) By the end of fiscal year 2008, the 
                        Secretary shall have entered into charter 
                        contracts with at least 160 public housing 
                        agencies described in subparagraph (A).
                            (iii) By the end of fiscal year 2009, the 
                        Secretary shall have entered into charter 
                        contracts with at least 250 public housing 
                        agencies described in subparagraph (A).
            (2) Charter contracts.--A charter contract shall--
                    (A) supersede and have a term commensurate with any 
                annual contributions contract between a public housing 
                agency and the Secretary; and
                    (B) provide that a participating public housing 
                agency shall receive--
                            (i) capital and operating assistance 
                        allocated to such agency under section 9 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437g); and
                            (ii) assistance provided under section 8 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437f).
            (3) Use of assistance.--Any assistance provided under 
        paragraph (2)(B)--
                    (A) may be combined; and
                    (B) shall be used to provide locally designed 
                housing assistance for low-income families, as such 
                term is defined in section 3(b)(2) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437a(b)(2)), 
                including--
                            (i) services to facilitate the transition 
                        to work and self-sufficiency; and
                            (ii) any other activity which a public 
                        housing agency is authorized to undertake 
                        pursuant to State or local law.
    (c) Terms and Conditions of Assistance.--
            (1) Applicability of united states housing act of 1937.--
        Except as provided in this section, the United States Housing 
        Act of 1937 (42 U.S.C. 1437 et seq.) shall not be applicable to 
        any public housing agency participating in the Moving to Work 
        Charter program established under this section.
            (2) Applicable 1937 act provisions.--The following 
        provisions of the United States Housing Act of 1937 (42 U.S.C. 
        1437 et seq.) are applicable to any public housing agency 
        participating in the Moving to Work Charter program established 
        under this section:
                    (A) Subsections (a) and (b) of section 12 (42 
                U.S.C. 1437j(a) and (b)) shall apply to housing 
                assisted under a charter contract, other than housing 
                assisted solely due to occupancy by families receiving 
                tenant based rental assistance.
                    (B) Section 18 (42 U.S.C. 1437p) shall continue to 
                apply to public housing developed under such Act 
                notwithstanding any use of the housing under a charter 
                contract.
            (3) Charter contract terms.--A charter contract shall 
        provide that a public housing agency--
                    (A) may--
                            (i) combine assistance received under 
                        sections 8 and 9 of the United States Housing 
                        Act of 1937 (42 U.S.C. 1437f and 1437g), as 
                        described in subsection (b)(3); and
                            (ii) use such assistance to provide housing 
                        assistance and related services for activities 
                        authorized by this section, including those 
                        activities authorized by sections 8 and 9 of 
                        such Act;
                    (B) certify that in preparing its application for 
                participation in the Moving to Work Charter program 
                established under this section, such agency has--
                            (i) provided for citizen participation 
                        through a public hearing and, if appropriate, 
                        other means; and
                            (ii) taken into account comments from the 
                        public hearing and any other public comments on 
                        the proposed activities under this Act, 
                        including comments from current and prospective 
                        residents who would be affected by such 
                        contract;
                    (C) shall ensure that at least 75 percent of the 
                families assisted under a charter contract shall be, at 
                the time of such families entry into the Moving to Work 
                Charter program, very low-income families, as such term 
                is defined in section 3(b)(2) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437a(b)(2));
                    (D) shall establish a reasonable rent policy, which 
                shall--
                            (i) be designed to encourage employment, 
                        self-sufficiency, and homeownership by 
                        participating families, consistent with the 
                        purpose of this Act;
                            (ii) include transition and hardship 
                        provisions;
                            (iii) be included in the annual plan of 
                        such agency; and
                            (iv) be subject to the opportunities for 
                        public participation described in subsection 
                        (e)(1)(D);
                    (E) shall continue to assist not less than 
                substantially the same total number of low-income 
                families as would have been served had such agency not 
                entered into a such contract;
                    (F) shall maintain a comparable mix of families (by 
                family size) as would have been provided had the agency 
                not entered into such contract;
                    (G) shall ensure that housing assisted under such 
                contract meets housing quality standards established or 
                approved by the Secretary;
                    (H) shall receive training and technical 
                assistance, upon request by such agency, to assist with 
                the design and implementation of the activities 
                described under this Act;
                    (I) shall receive an amount of assistance under 
                sections 8 and 9 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f and 1437g), that is not 
                diminished by the participation of such agency in the 
                Moving to Work Charter program established under this 
                section; and
                    (J) shall be subject to the procurement procedures 
                described in such contract.
    (d) Selection.--In selecting among applications to participate in 
the Moving to Work Charter program established under this section, the 
Secretary shall consider--
            (1) the potential of each agency to plan and carry out 
        activities under such program;
            (2) the relative performance by an agency under section 
        6(j) of the United States Housing Act of 1937 (42 U.S.C. 
        1437d(j));
            (3) the need for a diversity of participants in terms of 
        size, location, and type of agency; and
            (4) any other appropriate factor as determined by the 
        Secretary.
    (e) Charter Report.--
            (1) Contents.--
                    (A) In general.--Notwithstanding any other 
                provision of law, and in place of all other planning 
                and reporting requirements otherwise required, each 
                public housing agency that is a party to a charter 
                contract shall submit to the Secretary, on an annual 
                basis, a single charter report, in a form and at a time 
                specified by the Secretary.
                    (B) Sole means of reporting.--A charter report 
                submitted under subparagraph (A) shall be the sole 
                means by which a public housing agency shall be 
                required to provide information to the Secretary on the 
                activities assisted under this section during a fiscal 
                year, unless the Secretary has reason to believe that 
                such agency has violated the charter contract between 
                the Secretary and such agency.
                    (C) Requirements.--Each charter report required 
                under subparagraph (A) shall--
                            (i) document the use by a public housing 
                        agency of any assistance provided under a 
                        charter contract, including appropriate 
                        financial statements;
                            (ii) describe and analyze the effect of 
                        assisted activities in addressing the 
                        objectives of this section;
                            (iii) include a certification by such 
                        agency that such agency has prepared an annual 
                        plan which--
                                    (I) states the goals and objectives 
                                of that agency under the charter 
                                contract for the past fiscal year;
                                    (II) describes the proposed use of 
                                assistance by that agency for 
                                activities under the charter contract 
                                for the past fiscal year;
                                    (III) explains how the proposed 
                                activities of that agency will meet the 
                                goals and objectives of that agency;
                                    (IV) includes appropriate budget 
                                and financial statements of that 
                                agency; and
                                    (V) was prepared in accordance with 
                                a public process as described in 
                                subparagraph (D);
                    (D) describe and document how a public housing 
                agency has provided residents assisted under a charter 
                contract and the wider community with opportunities to 
                participate in the development of and comment on the 
                annual plan, which shall include at least 1 public 
                hearing; and
                    (E) include such other information as may be 
                required by the Secretary pursuant to subsection 
                (f)(2).
            (2) Review.--Any charter report submitted pursuant to 
        paragraph (1) shall be deemed approved unless the Secretary, 
        not later than 45 days after the date of submission of such 
        report, issues a written disapproval because--
                    (A) the Secretary reasonably determines, based on 
                information contained in the report that a public 
                housing agency is not in compliance with the provisions 
                of this section or other applicable law; or
                    (B) such report is inconsistent with other reliable 
                information available to the Secretary.
    (f) Records and Audits.--
            (1) Keeping of records.--Each public housing agency shall 
        keep such records as the Secretary may prescribe as reasonably 
        necessary--
                    (A) to disclose the amounts and the disposition of 
                amounts under the Moving to Work Charter program 
                established under this section;
                    (B) to ensure compliance with the requirements of 
                this section; and
                    (C) to measure performance.
            (2) Access to documents by the secretary.--
                    (A) In general.--The Secretary shall have access 
                for the purpose of audit and examination to any books, 
                documents, papers, and records that are pertinent to 
                assistance in connection with, and the requirements of, 
                this section.
                    (B) Limitation.--Access by the Secretary described 
                under subparagraph (A) shall be limited to information 
                obtained solely through the annual charter report 
                submitted by a public housing agency under subsection 
                (e), unless the Secretary has reason to believe that 
                such agency is not in compliance with the charter 
                contract between the Secretary and such agency.
            (3) Access to documents by the comptroller general.--The 
        Comptroller General of the United States, or any duly 
        authorized representative of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of the 
        Moving to Work Charter program established under this section.
    (g) Procurement Preemption.--
            (1) In general.--Any State or local law which imposes 
        procedures or standards for procurement which conflict with or 
        are more burdensome than applicable Federal procurement 
        requirements shall not apply to any public housing agency under 
        the Moving to Work Charter program established under this 
        section.
            (2) Reduction of administrative burdens.--The Secretary may 
        approve procurement procedures for public housing agencies 
        participating in the Moving to Work Charter program established 
        under this section that reduce administrative burdens of 
        procurement requirements imposed by Federal law.
    (h) Subsequent Laws Preempted.--A public housing agency 
participating in the Moving to Work Charter program established under 
this section shall not be subject to any provision of law which 
conflicts with the provisions of this section and which is enacted 
subsequent to the date of execution of such agency's charter contract 
or Moving to Work program agreement, as described in subsection (i), 
unless such law expressly provides for such laws application to public 
housing agencies subject to this section.
    (i) Existing Agreements.--Notwithstanding anything in this section 
or any other provision of law, any public housing agency which has an 
existing Moving to Work program agreement with the Secretary pursuant 
to section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1996 
(Public Law 104-134; 110 Stat. 1321-281) and which is not in default 
thereof, may, at the option of such agency--
            (1) continue to operate under the terms and conditions of 
        such agreement notwithstanding any limitation on the terms 
        contained in such contract; or
            (2) at any time, enter into a charter contract with the 
        Secretary on terms and conditions which are not less favorable 
        to the agency than such existing agreement.
    (j) Public Housing Agency Evaluation.--
            (1) In general.--By the end of fiscal year 2007, the 
        Secretary shall appoint a Federal advisory committee consisting 
        of public housing agencies with charter contracts, public 
        housing industry organizations, resident organizations, other 
        public housing and section 8 voucher stakeholders, and experts 
        on accreditation systems in similar fields, to assess and 
        develop a demonstration program to test standards, criteria, 
        and practices for a national public housing agency 
        accreditation system or other evaluation system.
            (2) Report.--Not later than the end of fiscal year 2009, 
        the committee established under paragraph (1) and the Secretary 
        shall provide a report and recommendations to Congress with 
        respect to the establishment of a national public housing 
        agency accreditation system.

Summary: Moving to Work Charter Program Act of 2006 - Directs the Secretary of Housing and Urban Development to enter into charter contracts, beginning in FY2007, with up to 250 public housing agencies administering the public housing program or the section 8 housing assistance program under the United States Housing Act of 1937.

States that such charter contracts shall: (1) supersede and have a term commensurate with any annual contributions contract between a public housing agency and the Secretary; and (2) provide that a participating public housing agency shall receive capital and operating assistance allocated to it under specified laws.

Exempts charter contracts from the requirements of the United States Housing Act of 1937, except those for payment of wages prevailing in the community and the demolition and disposition of public housing.

Requires a charter contract to provide that a public housing agency: (1) may combine section 8 low-income assistance and Public Housing Capital and Operating Fund assistance and use it for housing assistance and related services for activities under this Act; (2) shall ensure that at least 75% of the families assisted are very low-income families; (3) shall establish a reasonable rent policy designed to encourage employment, self-sufficiency, and home ownership by participating families; and (4) meet specified additional requirements.

Directs the Secretary to appoint a federal advisory committee to assess and develop a demonstration program to test standards, criteria, and practices for a national public housing agency accreditation system or other evaluation system.