Tenant Empowerment Act of 2021
Bill: H.R.4237 | Sponsor: Rep. Pressley, Ayanna (D-MA)
Policy area: Housing and Community Development

Summary:
Tenant Empowerment Act of 2021
This bill generally expands the rights of tenants in federally assisted housing.
Specifically, the bill allows tenants to
The bill also provides for continuing rental assistance payments for tenants if the property is in foreclosure.

To protect and empower residents of certain federally assisted rental 
                    housing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tenant Empowerment Act of 2021''.

SEC. 2. MAINTENANCE OF HOUSING.

    (a) Project-Based Assistance.--Section 8(d) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(d)) is amended by adding at the 
end the following new paragraphs:
            ``(7) Enforcement of housing standards related to physical 
        condition of property.--If the Secretary determines, upon any 
        inspection or management review for any multifamily housing 
        project covered by a housing assistance payments contract under 
        this section, that there are serious violations of housing 
        standards applicable to such project that are not corrected 
        after reasonable notice, or any other substantial or repeated 
        violations of other program requirements, including residents' 
        right to organize, the Secretary may take one or more of the 
        following actions in addition to other remedies allowed under 
        the contract:
                    ``(A) Withhold all or part of the housing 
                assistance payments due under the contract.
                    ``(B) Withhold any rent increases otherwise due.
                    ``(C) Assume possession and management of the 
                project and take any actions necessary to correct the 
                violations, including using such withheld payments to 
                effectuate repairs or to reimburse others who make 
                repairs.
                    ``(D) Use such withheld payments to pay for 
                utilities and other services that are the 
                responsibility of the owner under the lease or 
                applicable law.
            ``(8) Escrow of tenant rents.--
                    ``(A) Withholding of rent.--If the Secretary 
                determines, pursuant to paragraph (7), that there are 
                serious violations of housing standards applicable to 
                any multifamily housing project covered by a housing 
                assistance payments contract under this section, 
                including a failed physical inspection score, an 
                unsatisfactory management and occupancy review score, 
                or a notice of violation of right to organize 
                regulations under subpart B of part 245 of title 24, 
                Code of Federal Regulations, any tenants in assisted 
                units in the project may withhold the tenant 
                contribution toward rent and pay such amount, when due, 
                into an escrow fund in accordance with procedures 
                established by the Secretary. If a tenant withholds the 
                tenant contribution toward rent in accordance with this 
                paragraph, the Secretary shall withhold all or part of 
                the housing assistance payments due under the contract 
                for the unit until the violations are remedied. If an 
                owner has completed a purchase of multifamily housing 
                found in violation under this paragraph and commenced a 
                repair program to remediate these violations, tenants 
                exercising this right may negotiate a staged release of 
                funds held in escrow upon reaching measurable 
                benchmarks as established by the Secretary, including 
                consultation with the tenants of the property and any 
                legitimate tenants' association, as defined in subpart 
                B of part 245 of title 24, Code of Federal Regulations.
                    ``(B) Repair and deduct.--Any tenant of a 
                multifamily housing project covered by a housing 
                assistance payments contract under this section may 
                make payments from the tenant's contribution toward 
                rent, not to exceed the monthly gross rent for the 
                unit, to effectuate the cost of repairs or mitigation 
                to bring their unit into compliance with housing 
                quality standards, and to deduct the documented cost 
                from their rent, in accordance with procedures 
                established by the Secretary.
                    ``(C) Prohibition.--An owner of a project shall not 
                evict tenants for nonpayment of rent for exercising 
                rights under this paragraph.
                    ``(D) Rule of construction.--Nothing in this 
                paragraph shall be construed to limit or pre-empt any 
                stronger protections which may exist under State or 
                local law.
            ``(9) Protection of tenants.--An owner of a multifamily 
        housing project covered by a housing assistance payments 
        contract under this subsection may not terminate the tenancy of 
        any tenant because of the withholding or abatement of 
        assistance pursuant to this subsection. During the period that 
        assistance is abated pursuant to this subsection, the tenant 
        may terminate the tenancy by notifying the owner.
            ``(10) Inspections upon request or petition.--In addition 
        to periodic inspections by the Secretary, the Secretary shall 
        conduct an inspection or management review of any multifamily 
        housing project covered by a housing assistance payments 
        contract under this section when requested by the local 
        government in which the project is located or by a petition 
        signed by not less than 25 percent of the tenants of the 
        occupied units in the project.''.
    (b) PHA Project-Based Assistance.--Paragraph (13) of section 8(o) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is 
amended by adding at the end the following new subparagraph:
                    ``(N) Maintenance of housing.--Paragraphs (7) 
                through (10) of subsection (d) of this section shall 
                apply with respect to a multifamily housing project 
                covered by a housing assistance payments contract under 
                this paragraph, except that in applying such 
                paragraphs--
                            ``(i) the term `public housing agency' 
                        shall be substituted for the term `Secretary'; 
                        and
                            ``(ii) the term `contract under this 
                        paragraph' shall be substituted for the term 
                        `contract under this section'.''.

SEC. 3. RESIDENT ENFORCEMENT OF PROJECT OWNER AGREEMENTS WITH HUD AND 
              USDA.

    (a) In General.--In each covered agreement, as such term is defined 
in subsection (c), any resident, or resident association, of an 
affected project shall be permitted to petition the appropriate 
Secretary requesting enforcement of alleged serious violations of 
housing standards that are not corrected after reasonable notice, or 
any other substantial or repeated violations of other program 
requirements, including the right of residents to organize.
    (b) Judicial Relief.--If the appropriate Secretary, or the designee 
of the appropriate Secretary, fails to issue a determination regarding 
an enforcement request made pursuant to subsection (a), or if the 
determination fails to provide the enforcement action requested within 
90 days after receipt of the petition, the resident, or resident or 
tenant association, may seek appropriate judicial relief in connection 
with the alleged violation and enforcement of the covered agreement in 
any forum of competent jurisdiction. In the case of any alleged 
violation that threatens the health or safety of tenants, the time 
period for making such a determination shall not exceed 15 days.
    (c) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Appropriate secretary.--The term ``appropriate 
        Secretary'' means, with respect to a covered agreement, the 
        Secretary identified in paragraph (2).
            (2) Covered agreement.--The term ``covered agreement'' 
        means any--
                    (A) a contract between the Secretary of Housing and 
                Urban Development, a contract administrator, or any 
                public housing agency and an owner for project-based 
                housing assistance payments under section 8 of the 
                United States Housing Act of 1937 (42 U.S.C. 1437f);
                    (B) agreement under the Multifamily Assisted 
                Housing Reform and Affordability Act of 1997 (42 U.S.C. 
                1437f note) for--
                            (i) Mark-to-Market Restructuring 
                        Commitments, section 8 rental assistance for a 
                        project involving any action under section 
                        517(b) or section 519 of such Act; or
                            (ii) Rehabilitation Escrow Deposit 
                        Agreements for Mark-to-Market;
                    (C) contract for mortgage insurance executed by the 
                Secretary of Housing and Urban Development and any 
                owner or purchaser of a multifamily housing project;
                    (D) agreement with the Secretary of Agriculture in 
                connection with a loan for rural rental housing under 
                section 515 of the Housing Act of 1949 (42 U.S. C. 
                1485); or
                    (E) other Regulatory Agreements, Compliance 
                Agreements, Use Agreements, or similar contracts 
                between the appropriate Secretary and the owner that 
                establish housing quality requirements or affordability 
                restrictions.
    (d) Regulations.--Within 180 days after the date of the enactment 
of this Act, the each appropriate Secretary shall issue regulations 
providing procedures for--
            (1) receiving tenant petitions to enforce the terms of a 
        covered agreement;
            (2) evaluating alleged violations of a covered agreement; 
        and
            (3) providing notice to residents and resident 
        associations.
    (e) Protection of Other Tenant Rights.--This section shall not be 
construed to limit or replace the rights of residents to raise 
grievances, appeal decisions, or make other claims provided under any 
other provision of law.

SEC. 4. RESIDENT ACCESS TO BUILDING INFORMATION.

    (a) Access to Information.--Upon a written request by a legitimate 
residents association established with respect to a multifamily housing 
property to which section 202 of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1715z-1b) applies, by or through its duly 
appointed designee or representative, the Secretary of Housing and 
Urban Development shall make available to such association, designee, 
or representative, for the property represented by the association--
            (1) information identifying the legal entities that own or 
        manage the subject property, including identification of 
        general partners and other principals;
            (2) an annual operating statement of profit and loss of the 
        ownership and management entities identified in paragraph (1), 
        and their other current or former properties assisted by the 
        Department, including the history and current status of 
        mortgage assignments, defaults, foreclosures, or departmental 
        sanctions;
            (3) any subsidy contracts and regulatory agreements, use 
        agreements, or other contracts referred to in section 3(c)(2) 
        of this Act between the ownership entities and the Department 
        of Housing and Urban Development, including correspondence 
        between such ownership entities and the Department for the 
        subject property;
            (4) any management reviews, physical inspection reports, 
        and capital needs assessments of the subject property or 
        entities identified in paragraph (1) that are conducted by the 
        Department or a contractor of the Department; and
            (5) an annual statement, prepared by the Department or a 
        contract administrator for the subject property, of the 
        balances of, and expenditures from, any replacement reserves 
        and other escrow funds for the property.
    (b) Protection of Personal Information.--Subsection (a) shall not 
be construed to require disclosure of Social Security numbers, personal 
tax returns, or any other personal financial information of or 
concerning individuals who have an interest in the ownership or 
management entities referred to in subsection (a), including salaries 
or wages of employees of such entities. In complying with the 
requirements of subsection (a), the Secretary shall not disclose, and 
shall redact, any information that identifies, or may be used to 
identify, a resident of the multifamily housing property.

SEC. 5. FUNDING FOR TENANT AND OTHER PARTICIPATION AND CAPACITY 
              BUILDING.

    Paragraph (3) of section 514(f) of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence--
                            (i) by striking ``not more than'' and 
                        inserting ``not less than'';
                            (ii) by striking ``of low-income housing 
                        for which project-based rental assistance is 
                        provided at below market rent levels and may 
                        not be renewed, (including transfer of 
                        developments to tenant groups, nonprofit 
                        organizations, and public entities), for tenant 
                        services'' and inserting the following: ``and 
                        improvement of low-income housing for which 
                        project-based rental assistance, public housing 
                        subsidies, low-income housing tax credits, 
                        Federal or State subsidized loans, enhanced 
                        vouchers under section 8(t), or project-based 
                        vouchers under section 8(o) are provided or 
                        proposed''; and
                            (iii) in the second parenthetical clause, 
                        by inserting before the closing parenthesis the 
                        following: ``, and predevelopment assistance to 
                        enable such transfers''; and
                    (B) by inserting after the period at the end the 
                following: ``For outreach and training of tenants and 
                technical assistance, the Secretary shall implement a 
                grant program utilizing performance-based outcome 
                measures for eligible costs incurred. Recipients 
                providing capacity building or technical assistance 
                services to tenant groups shall be qualified nonprofit 
                State-wide, countywide, area-wide, or city-wide 
                organizations with demonstrated experience including at 
                least a two-year recent track record of organizing and 
                providing assistance to tenants, and independence from 
                the owner, a prospective purchaser, or their managing 
                agents. The Secretary may provide assistance and 
                training to grantees in administrative and fiscal 
                management to ensure compliance with applicable Federal 
                requirements. The Secretary shall expedite the 
                provision of funding for the fiscal year in which the 
                date of the enactment of this Act occurs and by 
                entering into an interagency agreement for not less 
                than $1,000,000 with the Corporation for National and 
                Community Service to conduct a tenant outreach and 
                training program to eligible housing under this 
                subsection. The Secretary shall also make available 
                flexible grants to qualified nonprofit organizations 
                that do not own eligible multifamily properties, for 
                tenant outreach in underserved areas, and to 
                experienced national or regional nonprofit 
                organizations to provide specialized training or 
                support to grantees assisted under this section. 
                Notwithstanding any other provision of law, funds 
                authorized under this paragraph for any fiscal year 
                shall be available for obligation in subsequent fiscal 
                years. The Secretary shall require each recipient of 
                amounts made available pursuant to this subparagraph to 
                submit to the Secretary reports, on a quarterly basis, 
                detailing the use of such funds and including such 
                information as the Secretary shall require.''

SEC. 6. TENANT PARTICIPATION IN PHYSICAL INSPECTION AND MANAGEMENT 
              REVIEW PROCESSES.

    In implementing any inspection requirements for ensuring decent, 
safe, and sanitary conditions and any Management and Occupancy Reviews 
in multifamily housing receiving project-based assistance under a 
program administered by the Secretary of Housing and Urban Development, 
the Secretary shall--
            (1) encourage tenant participation--
                    (A) by requiring that the owner shall post notice 
                of any Department of Housing and Urban Development (in 
                this section referred to as ``HUD'') inspection, 
                including information about the inspection process, 
                contact information, and appeals to HUD, both before 
                and after the inspection, in common areas of the 
                property;
                    (B) by requiring that, after any inspection, the 
                owner shall post the property score in common areas of 
                the property and ensure that the full HUD inspection 
                report (but not including any personally identifiable 
                information for owners or residents) and related 
                correspondence is made available for inspection by 
                tenants and their representatives at the property where 
                they reside;
                    (C) by allowing any legitimate tenant organization, 
                prior to an inspection, to submit a report regarding 
                the property to the inspector and to HUD;
                    (D) by notifying and allowing any legitimate tenant 
                organization, upon request, to meet with and to 
                designate a representative to accompany the inspector 
                during the on-site inspection of common areas, 
                including grounds, hallways, lobbies, community, mail 
                and laundry rooms, and other common spaces accessible 
                to residents;
                    (E) by including in any HUD physical inspection up 
                to five additional units suggested by tenants or any 
                legitimate tenant organization;
                    (F) by providing notice, comment, and appeal rights 
                for tenants and any legitimate tenant organization 
                parallel to the notice, comment, and appeal rights 
                provided to owners; and
                    (G) by conducting a full or partial Management and 
                Occupancy Review upon the written request by at least 
                25 percent of residents or by any legitimate tenant 
                association at the property, for the issues identified 
                by residents;
            (2) require inspectors to notate in their report potential 
        environmental hazards and unseen health and safety conditions 
        described by residents, management staff, or local agencies, or 
        as observed by the inspector;
            (3) require HUD to provide for independent testing of 
        potential environmental hazards identified by HUD inspectors;
            (4) require the Secretary to develop a remedial plan if 
        environmental hazards or health and safety conditions are 
        documented and to monitor the implementation of the remedial 
        plan;
            (5) require HUD contract inspectors to review records and 
        consult with local code enforcement agencies regarding physical 
        conditions of a property prior to inspections, if the 
        locality's databases are accessible;
            (6) review work order records in the management office of 
        the property to assess for response time and tenant 
        satisfaction; and
            (7) require the Secretary to inspect for compliance with 
        any findings of exigent health and safety violations resulting 
        from HUD inspections.

SEC. 7. DUTY TO MAINTAIN HOUSING ASSISTANCE PAYMENTS DURING 
              FORECLOSURE.

    (a) In General.--Notwithstanding any other provision of law, in 
managing and disposing of any multifamily property that is owned or has 
a mortgage held by the Secretary of Housing and Urban Development, and 
during the process of foreclosure on any property with a contract for 
rental assistance payments under section 8 of the United States Housing 
Act of 1937 or any other program administered by the Secretary, the 
Secretary shall maintain any rental assistance payments under section 8 
of the United States Housing Act of 1937, and any other programs, that 
are attached to any dwelling units in the property.
    (b) Other Rental Assistance.-- To the extent the Secretary 
determines, in consultation with the tenants and the local government, 
that such a multifamily property owned or having a mortgage held by the 
Secretary is not feasible for continued rental assistance payments 
under such section 8 or other programs, based on consideration of (1) 
the costs of rehabilitating and operating the property and all 
available Federal, State, and local resources, including rent 
adjustments under section 524 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), and (2) 
environmental conditions that cannot be remedied in a cost-effective 
fashion, the Secretary may, in consultation with the tenants of that 
property, contract for project-based rental assistance payments with an 
owner or owners of other existing housing properties, or provide other 
rental assistance.
    (c) Project-Based Contracts.-- The Secretary shall take appropriate 
steps to ensure that project-based contracts remain in effect prior to 
foreclosure, subject to the exercise of contractual abatement remedies 
to assist relocation of tenants for imminent major threats to health 
and safety after written notice to and informed consent of the affected 
tenants and use of other available remedies, such as partial abatements 
or receivership.
    (d) Rent Levels.--After disposition of any multifamily property 
described under this section, the contract and allowable rent levels on 
such properties shall be subject to the requirements under section 524 
of the Multifamily Assisted Housing Reform and Affordability Act of 
1997.

SEC. 8. CLARIFICATION OF TENANT PARTICIPATION IN MULTIFAMILY PROJECTS.

    The last sentence of section 202(a) of the Housing and Community 
Development Amendments of 1978 (12 U.S.C. 1715z-1b(a)) is amended by 
inserting after ``(42 U.S.C. 1437f),'' the following: ``including a 
project assisted under section 8(o)(13) (42 U.S.C. 1437f(o)(13)),''.
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