Title: Protect Our Schools from Tax Delinquents Act of 2017
Policy area: Housing and Community Development

Summary:
Protect Our Schools from Tax Delinquents Act of 2017
This bill amends the United States Housing Act of 1937 to require that each housing assistance payments contract entered into under the Section 8 rental assistance voucher program by a public housing agency (PHA) and the owner of a dwelling unit provide that such owner pay, on a timely basis, all covered taxes validly assessed against the property in which the unit is located.
A "covered tax" is any tax under state or local law assessed upon real property or the revenue of which is dedicated for use only for schools or for costs of education.
The bill allows a contract to provide that, upon notification and identification of a tax delinquency by a taxing authority, the PHA shall abate all of the rental assistance amounts for the property, transferring them monthly to the taxing authority, until the delinquency is eliminated.
The bill does not authorize or establish any cause or grounds for the termination of the tenancy of any tenant from any dwelling unit assisted under the rental assistance voucher program.
The Department of Housing and Urban Development must maintain a database of information regarding owners of dwelling units: (1) assisted under the program whose housing assistance payments contracts have been terminated for noncompliance with the requirements of this bill, and (2) with respect to whom assistance amounts have been abated and transferred to a taxing authority.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 614 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 614

 To require each owner of a dwelling unit assisted under the section 8 
  rental assistance voucher program to remain current with respect to 
   local property and school taxes and to authorize a public housing 
 agency to use such rental assistance amounts to pay such tax debt of 
                 such an owner, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 23, 2017

Mr. Meehan (for himself, Mr. Tiberi, Mr. Barletta, and Mr. Costello of 
Pennsylvania) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To require each owner of a dwelling unit assisted under the section 8 
  rental assistance voucher program to remain current with respect to 
   local property and school taxes and to authorize a public housing 
 agency to use such rental assistance amounts to pay such tax debt of 
                 such an owner, 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 ``Protect Our Schools from Tax 
Delinquents Act of 2017''.

SEC. 2. OBLIGATION FOR OWNERS OF ASSISTED UNITS TO REMAIN CURRENT ON 
              LOCAL PROPERTY AND SCHOOL TAXES.

    (a) In General.--Subsection (o) of section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following new paragraph:
            ``(21) Obligation for owners to remain current on local 
        property and school taxes.--
                    ``(A) Obligation.--Each housing assistance payments 
                contract entered into by a public housing agency and 
                the owner of a dwelling unit shall provide that the 
                owner of the dwelling unit assisted under the contract 
                shall pay, on a timely basis, all covered taxes validly 
                assessed against the property in which such dwelling 
                unit is located.
                    ``(B) Authority to provide for use of assistance 
                amounts to pay delinquent taxes.--A housing assistance 
                payments contract entered into by a public housing 
                agency and the owner of a dwelling unit may provide 
                that, upon notification by a taxing authority that the 
                owner of a dwelling unit assisted under this subsection 
                is delinquent with respect to payment of any covered 
                taxes assessed by such taxing authority against the 
                property in which such dwelling unit is located and 
                identification of the amount of such delinquency--
                            ``(i) the public housing agency shall abate 
                        all of the assistance amounts under this 
                        subsection with respect to such property until 
                        the transfer of amounts pursuant to 
                        subparagraph (B) is completed; and
                            ``(ii) the agency shall transfer to such 
                        taxing authority, on a monthly basis, an amount 
                        equal to the monthly assistance amounts under 
                        this subsection with respect to such dwelling 
                        unit (or such lesser amount as may be agreed to 
                        by the agency and such authority) until the 
                        delinquency identified in such notification is 
                        eliminated (or for such shorter period, as may 
                        be agreed to by the agency and such authority).
                    ``(C) Requirements and procedures.--The Secretary 
                shall establish such requirements as may be necessary 
                to implement the requirements of subparagraphs (A) and 
                (B), including, with respect to subparagraph (B), such 
                requirements regarding any notification and transfer of 
                amounts as may be necessary to ensure that amounts are 
                not so transferred except for actual and confirmed 
                taxes assessed to and owed by an owner of a dwelling 
                unit to ensure--
                            ``(i) that no amounts are transferred in 
                        excess of the amount of such taxes owed; and
                            ``(ii) the timely commencement and 
                        termination of such transfer.
                    ``(D) Treatment of tenants.--Nothing in this 
                paragraph may be construed to authorize, or establish 
                any cause or grounds for, the termination of the 
                tenancy of any tenant from any dwelling unit assisted 
                under this subsection.
                    ``(E) Database.--
                            ``(i) In general.--The Secretary shall 
                        maintain a database of information regarding--
                                    ``(I) owners of dwelling units 
                                assisted under this subsection whose 
                                housing assistance payments contracts 
                                have been terminated for failure to 
                                comply with subparagraph (A); and
                                    ``(II) owners of such dwelling 
                                units with respect to whom assistance 
                                amounts have been abated and 
                                transferred to a taxing authority 
                                pursuant to subparagraph (B).
                            ``(ii) Contents.--Such database shall 
                        include information that identifies the owner, 
                        the property for which such assistance was 
                        provided, the amount transferred, and the 
                        period over which such abatement and transfer 
                        occurred.
                            ``(iii) Information from public housing 
                        agencies.--The Secretary shall require public 
                        housing agencies to submit information 
                        regarding the abatement and transfer of 
                        assistance amounts pursuant to subparagraph (B) 
                        sufficient for the Secretary to maintain such 
                        database.
                    ``(F) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                            ``(i) Covered taxes.--The term `covered 
                        taxes' means any tax under the law of a State 
                        or any political subdivision of a State that is 
                        assessed upon real property or the revenue of 
                        which is dedicated for use only for schools or 
                        for costs of education.
                            ``(ii) Taxing authority.--The term `taxing 
                        authority' means any State or political 
                        subdivision of a State, including any agency or 
                        authority thereof, having authority to assess 
                        and collect covered taxes.''.
    (b) Regulations.--The Secretary of Housing and Urban Development 
shall issue any regulations necessary to carry out this Act.
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