II 114th CONGRESS 2d Session S. 3219 IN THE SENATE OF THE UNITED STATES July 14, 2016 Mr. Nelson (for himself and Mr. Rubio ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To provide standards for physical condition and management of housing receiving assistance payments under section 8 of the United States Housing Act of 1937.

1. Short title This Act may be cited as the Housing Accountability Act of 2016 . 2. Standards for physical condition and management of housing receiving assistance payments Section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ) is amended by inserting after subsection (v) the following: (w) Standards for physical condition and management of housing receiving assistance payments (1) Standards for physical condition and management of housing Any entity receiving assistance payments under this section shall maintain decent, safe, and sanitary conditions, as determined by the Secretary, for any structure covered under a housing assistance payment contract. (2) Survey of tenants The Secretary shall develop a process by which a Performance-Based Contract Administrator shall, on a semiannual basis, conduct a survey of the tenants of each structure covered under a housing assistance payment contract for the purpose of identifying consistent or persistent problems with the physical condition of the structure or performance of the manager of the structure. (3) Remediation A structure covered under a housing assistance payment contract shall be referred to the Secretary for remediation if a Performance-Based Contract Administrator identifies a consistent or persistent problem with the structure or the management of the structure based on— (A) a survey conducted under paragraph (2); or (B) any other observation made by the Performance-Based Contract Administrator during the normal course of business. (4) Penalty for failure to uphold standards (A) In general The Secretary may impose a penalty on any owner of a structure covered under a housing assistance payment contract if the Secretary finds that the structure or manager of the structure— (i) did not satisfactorily meet the requirements under paragraph (1); or (ii) is repeatedly referred to the Secretary for remediation by a Performance Based Contract Administrator through the process established under paragraph (3). (B) Amount A penalty imposed under subparagraph (A) shall be in an amount equal to not less than 1 percent of the annual budget authority the owner is allocated under a housing assistance payment contract. (C) Use of amounts Any amounts collected under this paragraph shall be used solely for the purpose of supporting safe and sanitary conditions at applicable structures or for tenant relocation, as designated by the Secretary, with priority given to the tenants of the structure that led to the penalty. (5) Applicability This subsection shall not apply to any property assisted under subsection (o). . 3. Issuance of report Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall submit to Congress a report that— (1) examines the adequacy of capital reserves for each structure covered under a housing assistance payment contract under section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ); (2) examines the use of funds derived from a housing assistance payment contract for purposes unrelated to the maintenance and capitalization of the structure covered under the contract; and (3) includes any administrative or legislative recommendations to further improve the living conditions at those structures.