Protect Our Schools from Tax Delinquents Act of 2016

Bill: 114-hr-5769
Sponsor: full_name: Rep. Meehan, Patrick [R-PA-7]
Introduced: 2016-07-13
Policy area: Housing and Community Development
Subjects: Elementary and secondary education

Government information and archives

Housing and community development funding

Low- and moderate-income housing

Property tax

State and local taxation

Tax administration and collection, taxpayers
Latest action: action_date: 2016-07-13
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2016-07-13
action_desc: Introduced in House
text: <p><b>Protect Our Schools from Tax Delinquents Act of 2016</b></p> <p>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. </p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5769 IN THE HOUSE OF REPRESENTATIVES July 13, 2016 Mr. Meehan (for himself, Mr. Tiberi , Mr. Costello of Pennsylvania , and Mr. Barletta ) 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.

1. Short title This Act may be cited as the Protect Our Schools from Tax Delinquents Act of 2016 . 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: (20) Obligation for owners To remain current on local property and school taxes (1) 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. (2) 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— (A) 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 (B) 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). (3) Requirements and procedures The Secretary shall establish such requirements as may be necessary to provide for the housing assistance payments contract provisions under paragraphs (1) and (2), including, in the case of provisions authorized by paragraph (2), such requirements regarding notifications and transfer of amounts pursuant to paragraph (2)(B) 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 that no amounts are transferred in excess of the amount of such taxes owed, and to ensure the timely commencement and termination of such transfers. (4) Treatment of tenants Nothing in this section 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. (5) Database (A) 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 the provision required under paragraph (1); and (ii) owners of such dwelling units with respect to whom assistance amounts have been abated and transferred to a taxing authority pursuant to paragraph (2). (B) 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. (C) 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 paragraph (2) sufficient for the Secretary to maintain such database. (6) Definitions For purposes of this paragraph, the following definitions shall apply: (A) 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. (B) 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 section 8(o)(20) of the United States Housing Act of 1937, as added by the amendment made by subsection (a).