Housing Opportunity Through Modernization Act of 2016
PL 114-201 (H.R.3700), enacted 07/29/2016

130 STAT. 782 
PUBLIC LAW 114–201—JULY 29, 2016 
Public Law 114–201 
114th Congress 
An Act 
To provide housing opportunities in the United States through modernization of 
various housing programs, 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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Housing Oppor-
tunity Through Modernization Act of 2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING 
Sec. 101. Inspection of dwelling units. 
Sec. 102. Income reviews. 
Sec. 103. Limitation on public housing tenancy for over-income families. 
Sec. 104. Limitation on eligibility for assistance based on assets. 
Sec. 105. Units owned by public housing agencies. 
Sec. 106. PHA project-based assistance. 
Sec. 107. Establishment of fair market rent. 
Sec. 108. Collection of utility data. 
Sec. 109. Public housing Capital and Operating Funds. 
Sec. 110. Family unification program for children aging out of foster care. 
Sec. 111. Public housing heating guidelines. 
Sec. 112. Use of vouchers for manufactured housing. 
Sec. 113. Preference for United States citizens or nationals. 
Sec. 114. Exception to public housing agency resident board member requirement. 
TITLE II—RURAL HOUSING 
Sec. 201. Delegation of guaranteed rural housing loan approval. 
Sec. 202. Guaranteed underwriting user fee. 
TITLE III—FHA MORTGAGE INSURANCE FOR CONDOMINIUMS 
Sec. 301. Modification of FHA requirements for mortgage insurance for condomin-
iums. 
TITLE IV—HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS 
Sec. 401. Definition of geographic area for Continuum of Care Program. 
Sec. 402. Inclusion of public housing agencies and local redevelopment authorities 
in emergency solutions grants. 
Sec. 403. Special assistant for Veterans Affairs in the Department of Housing and 
Urban Development. 
Sec. 404. Annual supplemental report on veterans homelessness. 
Sec. 405. Reopening of public comment period for continuum of care program regu-
lations. 
TITLE V—MISCELLANEOUS 
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain fraud and 
abuse prevention measures. 
Sec. 502. Energy efficiency requirements under Self-Help Homeownership Oppor-
tunity program. 
Housing 
Opportunity 
Through 
Modernization 
Act of 2016. 
42 USC 1437 
note. 
July 29, 2016 
[H.R. 3700] 
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130 STAT. 783 
PUBLIC LAW 114–201—JULY 29, 2016 
Sec. 503. Data exchange standardization for improved interoperability. 
TITLE VI—REPORTS 
Sec. 601. Report on interagency family economic empowerment strategies. 
TITLE VII—HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS 
Sec. 701. Formula and terms for allocations to prevent homelessness for individuals 
living with HIV or AIDS. 
TITLE I—SECTION 8 RENTAL 
ASSISTANCE AND PUBLIC HOUSING 
SEC. 101. INSPECTION OF DWELLING UNITS. 
(a) IN GENERAL.—Section 8(o)(8) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended— 
(1) by striking subparagraph (A) and inserting the following 
new subparagraph: 
‘‘(A) INITIAL INSPECTION.— 
‘‘(i) IN GENERAL.—For each dwelling unit for which 
a housing assistance payment contract is established 
under this subsection, the public housing agency (or 
other entity pursuant to paragraph (11)) shall inspect 
the unit before any assistance payment is made to 
determine whether the dwelling unit meets the housing 
quality standards under subparagraph (B), except as 
provided in clause (ii) or (iii) of this subparagraph. 
‘‘(ii) CORRECTION OF NON-LIFE-THREATENING CONDI-
TIONS.—In the case of any dwelling unit that is deter-
mined, pursuant to an inspection under clause (i), not 
to meet the housing quality standards under subpara-
graph (B), assistance payments may be made for the 
unit notwithstanding subparagraph (C) if failure to 
meet such standards is a result only of non-life-threat-
ening conditions, as such conditions are established 
by the Secretary. A public housing agency making 
assistance payments pursuant to this clause for a 
dwelling unit shall, 30 days after the beginning of 
the period for which such payments are made, withhold 
any assistance payments for the unit if any deficiency 
resulting in noncompliance with the housing quality 
standards has not been corrected by such time. The 
public housing agency shall recommence assistance 
payments when such deficiency has been corrected, 
and may use any payments withheld to make assist-
ance payments relating to the period during which 
payments were withheld. 
‘‘(iii) USE OF ALTERNATIVE INSPECTION METHOD FOR 
INTERIM
PERIOD.—In the case of any property that 
within the previous 24 months has met the require-
ments of an inspection that qualifies as an alternative 
inspection method pursuant to subparagraph (E), a 
public housing agency may authorize occupancy before 
the inspection under clause (i) has been completed, 
and may make assistance payments retroactive to the 
beginning of the lease term after the unit has been 
determined pursuant to an inspection under clause 
(i) to meet the housing quality standards under 
Time period. 
Determination. 
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130 STAT. 784 
PUBLIC LAW 114–201—JULY 29, 2016 
subparagraph (B). This clause may not be construed 
to exempt any dwelling unit from compliance with 
the requirements of subparagraph (D).’’; 
(2) by redesignating subparagraph (G) as subparagraph 
(H); and 
(3) by inserting after subparagraph (F) the following new 
subparagraph: 
‘‘(G) ENFORCEMENT OF HOUSING QUALITY STANDARDS.— 
‘‘(i) 
DETERMINATION
OF
NONCOMPLIANCE.—A 
dwelling unit that is covered by a housing assistance 
payments contract under this subsection shall be 
considered, for purposes of subparagraphs (D) and (F), 
to be in noncompliance with the housing quality stand-
ards under subparagraph (B) if— 
‘‘(I) the public housing agency or an inspector 
authorized by the State or unit of local government 
determines upon inspection of the unit that the 
unit fails to comply with such standards; 
‘‘(II) the agency or inspector notifies the owner 
of the unit in writing of such failure to comply; 
and 
‘‘(III) the failure to comply is not corrected— 
‘‘(aa) in the case of any such failure that 
is a result of life-threatening conditions, 
within 24 hours after such notice has been 
provided; and 
‘‘(bb) in the case of any such failure that 
is a result of non-life-threatening conditions, 
within 30 days after such notice has been pro-
vided or such other reasonable longer period 
as the public housing agency may establish. 
‘‘(ii) 
WITHHOLDING
OF
ASSISTANCE
AMOUNTS 
DURING CORRECTION.—The public housing agency may 
withhold assistance amounts under this subsection 
with respect to a dwelling unit for which a notice 
pursuant to clause (i)(II), of failure to comply with 
housing quality standards under subparagraph (B) as 
determined pursuant to an inspection conducted under 
subparagraph (D) or (F), has been provided. If the 
unit is brought into compliance with such housing 
quality standards during the periods referred to in 
clause (i)(III), the public housing agency shall recom-
mence assistance payments and may use any amounts 
withheld during the correction period to make assist-
ance payments relating to the period during which 
payments were withheld. 
‘‘(iii) ABATEMENT OF ASSISTANCE AMOUNTS.—The 
public housing agency shall abate all of the assistance 
amounts under this subsection with respect to a 
dwelling unit that is determined, pursuant to clause 
(i) of this subparagraph, to be in noncompliance with 
housing quality standards under subparagraph (B). 
Upon completion of repairs by the public housing 
agency or the owner sufficient so that the dwelling 
unit complies with such housing quality standards, 
the agency shall recommence payments under the 
Time periods. 
Contracts. 
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130 STAT. 785 
PUBLIC LAW 114–201—JULY 29, 2016 
housing assistance payments contract to the owner 
of the dwelling unit. 
‘‘(iv) NOTIFICATION.—If a public housing agency 
providing assistance under this subsection abates 
rental assistance payments pursuant to clause (iii) with 
respect to a dwelling unit, the agency shall, upon 
commencement of such abatement— 
‘‘(I) notify the tenant and the owner of the 
dwelling unit that— 
‘‘(aa) such abatement has commenced; and 
‘‘(bb) if the dwelling unit is not brought 
into compliance with housing quality stand-
ards within 60 days after the effective date 
of the determination of noncompliance under 
clause (i) or such reasonable longer period as 
the agency may establish, the tenant will have 
to move; and 
‘‘(II) issue the tenant the necessary forms to 
allow the tenant to move to another dwelling unit 
and transfer the rental assistance to that unit. 
‘‘(v) PROTECTION
OF
TENANTS.—An owner of a 
dwelling unit may not terminate the tenancy of any 
tenant because of the withholding or abatement of 
assistance pursuant to this subparagraph. During the 
period that assistance is abated pursuant to this 
subparagraph, the tenant may terminate the tenancy 
by notifying the owner. 
‘‘(vi) TERMINATION OF LEASE OR ASSISTANCE PAY-
MENTS CONTRACT.—If assistance amounts under this 
section for a dwelling unit are abated pursuant to 
clause (iii) and the owner does not correct the non-
compliance within 60 days after the effective date of 
the determination of noncompliance under clause (i), 
or such other reasonable longer period as the public 
housing agency may establish, the agency shall termi-
nate the housing assistance payments contract for the 
dwelling unit. 
‘‘(vii) RELOCATION.— 
‘‘(I) LEASE OF NEW UNIT.—The agency shall 
provide the family residing in such a dwelling 
unit a period of 90 days or such longer period 
as the public housing agency determines is reason-
ably necessary to lease a new unit, beginning upon 
termination of the contract, to lease a new resi-
dence with tenant-based rental assistance under 
this section. 
‘‘(II) AVAILABILITY OF PUBLIC HOUSING UNITS.— 
If the family is unable to lease such a new resi-
dence during such period, the public housing 
agency shall, at the option of the family, provide 
such family a preference for occupancy in a 
dwelling unit of public housing that is owned or 
operated by the agency that first becomes available 
for occupancy after the expiration of such period. 
‘‘(III) ASSISTANCE
IN
FINDING
UNIT.—The 
public housing agency may provide assistance to 
the family in finding a new residence, including 
Time period. 
Time period. 
Time period. 
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130 STAT. 786 
PUBLIC LAW 114–201—JULY 29, 2016 
use of up to two months of any assistance amounts 
withheld or abated pursuant to clause (ii) or (iii), 
respectively, for costs directly associated with 
relocation of the family to a new residence, which 
shall include security deposits as necessary and 
may 
include 
reimbursements 
for 
reasonable 
moving expenses incurred by the household, as 
established by the Secretary. The agency may 
require that a family receiving assistance for a 
security deposit shall remit, to the extent of such 
assistance, the amount of any security deposit 
refunds made by the owner of the dwelling unit 
for which the lease was terminated. 
‘‘(viii) TENANT-CAUSED
DAMAGES.—If a public 
housing agency determines that any damage to a 
dwelling unit that results in a failure of the dwelling 
unit to comply with housing quality standards under 
subparagraph (B), other than any damage resulting 
from ordinary use, was caused by the tenant, any 
member of the tenant’s household, or any guest or 
other person under the tenant’s control, the agency 
may waive the applicability of this subparagraph, 
except that this clause shall not exonerate a tenant 
from any liability otherwise existing under applicable 
law for damages to the premises caused by such tenant. 
‘‘(ix) APPLICABILITY.—This subparagraph shall 
apply to any dwelling unit for which a housing assist-
ance payments contract is entered into or renewed 
after the date of the effectiveness of the regulations 
implementing this subparagraph.’’. 
(b) EFFECTIVE DATE.—The Secretary of Housing and Urban 
Development shall issue notice or regulations to implement sub-
section (a) of this section and such subsection shall take effect 
upon such issuance. 
SEC. 102. INCOME REVIEWS. 
(a) INCOME REVIEWS FOR PUBLIC HOUSING AND SECTION 8 PRO-
GRAMS.—Section 3 of the United States Housing Act of 1937 (42 
U.S.C. 1437a) is amended— 
(1) in subsection (a)— 
(A) in the second sentence of paragraph (1), by striking 
‘‘at least annually’’ and inserting ‘‘pursuant to paragraph 
(6)’’; and 
(B) by adding at the end the following new paragraphs: 
‘‘(6) REVIEWS OF FAMILY INCOME.— 
‘‘(A) FREQUENCY.—Reviews of family income for pur-
poses of this section shall be made— 
‘‘(i) in the case of all families, upon the initial 
provision of housing assistance for the family; 
‘‘(ii) annually thereafter, except as provided in 
paragraph (1) with respect to fixed-income families; 
‘‘(iii) upon the request of the family, at any time 
the income or deductions (under subsection (b)(5)) of 
the family change by an amount that is estimated 
to result in a decrease of 10 percent (or such lower 
amount as the Secretary may, by notice, establish, 
Notice. 
Regulations. 
42 USC 1437f 
note. 
Contracts. 
Determination. 
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130 STAT. 787 
PUBLIC LAW 114–201—JULY 29, 2016 
or permit the public housing agency or owner to estab-
lish) or more in annual adjusted income; and 
‘‘(iv) at any time the income or deductions (under 
subsection (b)(5)) of the family change by an amount 
that is estimated to result in an increase of 10 percent 
or more in annual adjusted income, or such other 
amount as the Secretary may by notice establish, 
except that any increase in the earned income of a 
family shall not be considered for purposes of this 
clause (except that earned income may be considered 
if the increase corresponds to previous decreases under 
clause (iii)), except that a public housing agency or 
owner may elect not to conduct such review in the 
last three months of a certification period. 
‘‘(B) IN GENERAL.—Reviews of family income for pur-
poses of this section shall be subject to the provisions 
of section 904 of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 (42 U.S.C. 3544). 
‘‘(7) CALCULATION OF INCOME.— 
‘‘(A) USE OF CURRENT YEAR INCOME.—In determining 
family income for initial occupancy or provision of housing 
assistance pursuant to clause (i) of paragraph (6)(A) or 
pursuant to reviews pursuant to clause (iii) or (iv) of such 
paragraph, a public housing agency or owner shall use 
the income of the family as estimated by the agency or 
owner for the upcoming year. 
‘‘(B) USE
OF
PRIOR
YEAR
INCOME.—In determining 
family income for annual reviews pursuant to paragraph 
(6)(A)(ii), a public housing agency or owner shall, except 
as otherwise provided in this paragraph and paragraph 
(1), use the income of the family as determined by the 
agency or owner for the preceding year, taking into consid-
eration any redetermination of income during such prior 
year pursuant to clause (iii) or (iv) of paragraph (6)(A). 
‘‘(C) OTHER INCOME.—In determining the income for 
any family based on the prior year’s income, with respect 
to prior year calculations of income not subject to subpara-
graph (B), a public housing agency or owner may make 
other adjustments as it considers appropriate to reflect 
current income. 
‘‘(D) SAFE HARBOR.—A public housing agency or owner 
may, to the extent such information is available to the 
public housing agency or owner, determine the family’s 
income prior to the application of any deductions based 
on timely income determinations made for purposes of other 
means-tested Federal public assistance programs (including 
the program for block grants to States for temporary assist-
ance for needy families under part A of title IV of the 
Social Security Act, a program for Medicaid assistance 
under a State plan approved under title XIX of the Social 
Security Act, and the supplemental nutrition assistance 
program (as such term is defined in section 3 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2012))). The Secretary 
shall, in consultation with other appropriate Federal agen-
cies, develop electronic procedures to enable public housing 
agencies and owners to have access to such benefit deter-
minations made by other means-tested Federal programs 
Consultation. 
Procedures. 
Time period. 
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130 STAT. 788 
PUBLIC LAW 114–201—JULY 29, 2016 
that the Secretary determines to have comparable reli-
ability. Exchanges of such information shall be subject 
to the same limitations and tenant protections provided 
under section 904 of the Stewart B. McKinney Homeless 
Assistance Act Amendments of 1988 (42 U.S.C. 3544) with 
respect to information obtained under the requirements 
of section 303(i) of the Social Security Act (42 U.S.C. 503(i)). 
‘‘(E) ELECTRONIC
INCOME
VERIFICATION.—The Sec-
retary shall develop a mechanism for disclosing information 
to a public housing agency for the purpose of verifying 
the employment and income of individuals and families 
in accordance with section 453(j)(7)(E) of the Social Security 
Act (42 U.S.C. 653(j)(7)(E)), and shall ensure public housing 
agencies have access to information contained in the ‘Do 
Not Pay’ system established by section 5 of the Improper 
Payments Elimination and Recovery Improvement Act of 
2012 (Public Law 112–248; 126 Stat. 2392). 
‘‘(F) PHA AND OWNER COMPLIANCE.—A public housing 
agency or owner may not be considered to fail to comply 
with this paragraph or paragraph (6) due solely to any 
de minimis errors made by the agency or owner in calcu-
lating family incomes.’’; 
(2) by striking subsections (d) and (e); and 
(3) by redesignating subsection (f) as subsection (d). 
(b) CERTIFICATION REGARDING HARDSHIP EXCEPTION TO MIN-
IMUM MONTHLY RENT.—Not later than the expiration of the 6- 
month period beginning on the date of the enactment of this Act, 
the Secretary of Housing and Urban Development shall submit 
to the Congress a certification that the hardship and tenant protec-
tion provisions in clause (i) of section 3(a)(3)(B) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(a)(3)(B)(i)) are being 
enforced at such time and that the Secretary will continue to 
provide due consideration to the hardship circumstances of persons 
assisted under relevant programs of this Act. 
(c) INCOME; ADJUSTED INCOME.—Section 3(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by 
striking paragraphs (4) and (5) and inserting the following new 
paragraphs: 
‘‘(4) INCOME.—The term ‘income’ means, with respect to 
a family, income received from all sources by each member 
of the household who is 18 years of age or older or is the 
head of household or spouse of the head of the household, 
plus unearned income by or on behalf of each dependent who 
is less than 18 years of age, as determined in accordance 
with criteria prescribed by the Secretary, in consultation with 
the Secretary of Agriculture, subject to the following require-
ments: 
‘‘(A) INCLUDED AMOUNTS.—Such term includes recur-
ring gifts and receipts, actual income from assets, and 
profit or loss from a business. 
‘‘(B) 
EXCLUDED
AMOUNTS.—Such 
term 
does 
not 
include— 
‘‘(i) any imputed return on assets, except to the 
extent that net family assets exceed $50,000, except 
that such amount (as it may have been previously 
adjusted) shall be adjusted for inflation annually by 
Definition. 
Criteria. 
Consultation. 
Deadline. 
Time period. 
Effective date. 
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130 STAT. 789 
PUBLIC LAW 114–201—JULY 29, 2016 
the Secretary in accordance with an inflationary index 
selected by the Secretary; 
‘‘(ii) any amounts that would be eligible for exclu-
sion under section 1613(a)(7) of the Social Security 
Act (42 U.S.C. 1382b(a)(7)); 
‘‘(iii) deferred disability benefits from the Depart-
ment of Veterans Affairs that are received in a lump 
sum amount or in prospective monthly amounts; 
‘‘(iv) any expenses related to aid and attendance 
under section 1521 of title 38, United States Code, 
to veterans who are in need of regular aid and attend-
ance; and 
‘‘(v) exclusions from income as established by the 
Secretary by regulation or notice, or any amount 
required by Federal law to be excluded from consider-
ation as income. 
‘‘(C) EARNED INCOME OF STUDENTS.—Such term does 
not include— 
‘‘(i) earned income, up to an amount as the Sec-
retary may by regulation establish, of any dependent 
earned during any period that such dependent is 
attending school or vocational training on a full-time 
basis; or 
‘‘(ii) any grant-in-aid or scholarship amounts 
related to such attendance used— 
‘‘(I) for the cost of tuition or books; or 
‘‘(II) in such amounts as the Secretary may 
allow, for the cost of room and board. 
‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.—Income shall 
be determined without regard to any amounts in or from, 
or any benefits from, any Coverdell education savings 
account under section 530 of the Internal Revenue Code 
of 1986 or any qualified tuition program under section 
529 of such Code. 
‘‘(E) RECORDKEEPING.—The Secretary may not require 
a public housing agency or owner to maintain records of 
any amounts excluded from income pursuant to this 
subparagraph. 
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted income’ means, 
with respect to a family, the amount (as determined by the 
public housing agency or owner) of the income of the members 
of the family residing in a dwelling unit or the persons on 
a lease, after any deductions from income as follows: 
‘‘(A) ELDERLY AND DISABLED FAMILIES.—$525 in the 
case of any family that is an elderly family or a disabled 
family. 
‘‘(B) MINORS, STUDENTS, AND PERSONS WITH DISABIL-
ITIES.—$480 for each member of the family residing in 
the household (other than the head of the household or 
his or her spouse) who is less than 18 years of age or 
is attending school or vocational training on a full-time 
basis, or who is 18 years of age or older and is a person 
with disabilities. 
‘‘(C) CHILD CARE.—Any reasonable child care expenses 
necessary to enable a member of the family to be employed 
or to further his or her education. 
Definition. 
Determination. 
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130 STAT. 790 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(D) HEALTH AND MEDICAL EXPENSES.—The amount, 
if any, by which 10 percent of annual family income is 
exceeded by the sum of— 
‘‘(i) in the case of any elderly or disabled family, 
any unreimbursed health and medical care expenses; 
and 
‘‘(ii) any unreimbursed reasonable attendant care 
and auxiliary apparatus expenses for each handicapped 
member of the family, if determined necessary by the 
public housing agency or owner to enable any member 
of such family to be employed. 
The Secretary shall, by regulation, provide hardship exemp-
tions to the requirements of this subparagraph and 
subparagraph (C) for impacted families who demonstrate 
an inability to pay calculated rents because of financial 
hardship. Such regulations shall include a requirement 
to notify tenants regarding any changes to the determina-
tion of adjusted income pursuant to such subparagraphs 
based on the determination of the family’s claim of financial 
hardship exemptions required by the preceding sentence. 
Such regulations shall be promulgated in consultation with 
tenant organizations, industry participants, and the Sec-
retary of Health and Human Services, with an adequate 
comment period provided for interested parties. 
‘‘(E) PERMISSIVE DEDUCTIONS.—Such additional deduc-
tions as a public housing agency may, at its discretion, 
establish, except that the Secretary shall establish proce-
dures to ensure that such deductions do not materially 
increase Federal expenditures. 
The Secretary shall annually calculate the amounts of the 
deductions under subparagraphs (A) and (B), as such amounts 
may have been previously calculated, by applying an infla-
tionary factor as the Secretary shall, by regulation, establish, 
except that the actual deduction determined for each year shall 
be established by rounding such amount to the next lowest 
multiple of $25.’’. 
(d) HOUSING CHOICE VOUCHER PROGRAM.—Section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is 
amended— 
(1) in paragraph (1)(D), by inserting before the period at 
the end the following: ‘‘, except that a public housing agency 
may establish a payment standard of not more than 120 percent 
of the fair market rent where necessary as a reasonable 
accommodation for a person with a disability, without approval 
of the Secretary. A public housing agency may use a payment 
standard that is greater than 120 percent of the fair market 
rent as a reasonable accommodation for a person with a dis-
ability, but only with the approval of the Secretary. In connec-
tion with the use of any increased payment standard estab-
lished or approved pursuant to either of the preceding two 
sentences as a reasonable accommodation for a person with 
a disability, the Secretary may not establish additional require-
ments regarding the amount of adjusted income paid by such 
person for rent’’; and 
(2) in paragraph (5)— 
(A) in the paragraph heading, by striking ‘‘ANNUAL 
REVIEW’’ and inserting ‘‘REVIEWS’’; 
Determination. 
Applicability. 
Regulation. 
Procedures. 
Consultation. 
Comment period. 
Notification. 
Regulation. 
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130 STAT. 791 
PUBLIC LAW 114–201—JULY 29, 2016 
(B) in subparagraph (A)— 
(i) by striking ‘‘the provisions of’’ and inserting 
‘‘paragraphs (1), (6), and (7) of section 3(a) and to’’; 
and 
(ii) by striking ‘‘and shall be conducted’’ and all 
that follows through the end of the subparagraph and 
inserting a period; and 
(C) in subparagraph (B), by striking the second sen-
tence. 
(e) ENHANCED VOUCHER PROGRAM.—Section 8(t)(1)(D) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is 
amended by striking ‘‘income’’ each place such term appears and 
inserting ‘‘annual adjusted income’’. 
(f) PROJECT-BASED HOUSING.—Paragraph (3) of section 8(c) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is 
amended by striking the last sentence. 
(g) IMPACT ON PUBLIC HOUSING REVENUES.— 
(1) ADJUSTMENTS TO OPERATING FORMULA.—If the Secretary 
of Housing and Urban Development determines that the 
application of subsections (a) through (e) of this section results 
in a material and disproportionate reduction in the rental 
income of certain public housing agencies during the first year 
in which such subsections are implemented, the Secretary may 
make appropriate adjustments in the formula income for such 
year of those agencies experiencing such a reduction. 
(2) HUD REPORTS ON REVENUE AND COST IMPACT.—In each 
of the first two years after the first year in which subsections 
(a) through (e) are implemented, the Secretary of Housing 
and Urban Development shall submit a report to Congress 
identifying and calculating the impact of changes made by 
such subsections and section 104 of this Act on the revenues 
and costs of operating public housing units, the voucher pro-
gram for rental assistance under section 8 of the United States 
Housing Act of 1937, and the program under such section 
8 for project-based rental assistance. If such report identifies 
a material reduction in the net income of public housing agen-
cies nationwide or a material increase in the costs of funding 
the voucher program or the project-based assistance program, 
the Secretary shall include in such report recommendations 
for legislative changes to reduce or eliminate such a reduction. 
(h) EFFECTIVE DATE.—The Secretary of Housing and Urban 
Development shall issue notice or regulations to implement this 
section and this section shall take effect after such issuance, except 
that this section may only take effect upon the commencement 
of a calendar year. 
(i) STUDY
ON IMPACT
ON ELDERLY
AND DISABLED FAMILIES 
OF DECREASED DEDUCTIONS IN INCOME.— 
(1) STUDY.—The Secretary of Housing and Urban Develop-
ment shall conduct a study to determine the impacts, on rents 
paid by elderly and disabled individuals and families assisted 
under the section 8 rental assistance and public housing pro-
grams under the United States Housing Act of 1937 (42 U.S.C. 
1437 et seq.), of any decreases in the amounts of any deductions 
from income (for purposes of section 3(b) of such Act (42 U.S.C. 
1437a(b))), as compared to such deductions under such section 
3(b) as in effect before the effectiveness of this section, resulting 
from the amendments made by this section. 
Determination. 
Notice. 
Regulations. 
42 USC 1437a 
note. 
Recommenda- 
tions. 
Time periods. 
42 USC 1437a 
note. 
Determination. 
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130 STAT. 792 
PUBLIC LAW 114–201—JULY 29, 2016 
(2) REPORT.—The Secretary shall submit to the Congress 
a report setting forth the results of the study conducted pursu-
ant to paragraph (1) not later than the expiration of the 12- 
month period beginning on the date of the enactment of this 
Act. 
(3) EFFECTIVE
DATE.—Notwithstanding subsection (h) of 
this section, this subsection shall take effect on the date of 
the enactment of this Act. 
SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER- 
INCOME FAMILIES. 
Subsection (a) of section 16 of the United States Housing Act 
of 1937 (42 U.S.C. 1437n(a)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) LIMITATIONS
ON
TENANCY
FOR
OVER-INCOME
FAMI-
LIES.— 
‘‘(A) LIMITATIONS.—Except as provided in subpara-
graph (D), in the case of any family residing in a dwelling 
unit of public housing whose income for the most recent 
two consecutive years, as determined pursuant to income 
reviews conducted pursuant to section 3(a)(6), has exceeded 
the applicable income limitation under subparagraph (C), 
the public housing agency shall— 
‘‘(i) notwithstanding any other provision of this 
Act, charge such family as monthly rent for the unit 
occupied by such family an amount equal to the greater 
of— 
‘‘(I) the applicable fair market rental estab-
lished under section 8(c) for a dwelling unit in 
the same market area of the same size; or 
‘‘(II) the amount of the monthly subsidy pro-
vided under this Act for the dwelling unit, which 
shall include any amounts from the Operating 
Fund and Capital Fund under section 9 used for 
the unit, as determined by the agency in accord-
ance with regulations that the Secretary shall 
issue to carry out this subclause; or 
‘‘(ii) terminate the tenancy of such family in public 
housing not later than 6 months after the income deter-
mination described in subparagraph (A). 
‘‘(B) NOTICE.—In the case of any family residing in 
a dwelling unit of public housing whose income for a year 
has exceeded the applicable income limitation under 
subparagraph (C), upon the conclusion of such year the 
public housing agency shall provide written notice to such 
family of the requirements under subparagraph (A). 
‘‘(C) INCOME LIMITATION.—The income limitation under 
this subparagraph shall be 120 percent of the median 
income for the area, as determined by the Secretary with 
adjustments for smaller and larger families, except that 
the Secretary may establish income limitations higher or 
lower than 120 percent of such median income on the 
basis of the Secretary’s findings that such variations are 
necessary because of prevailing levels of construction costs, 
or unusually high or low family incomes, vacancy rates, 
or rental costs. 
Determination. 
Deadline. 
Regulations. 
Time period. 
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130 STAT. 793 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(D) EXCEPTION.—Subparagraph (A) shall not apply 
to a family occupying a dwelling unit in public housing 
pursuant to paragraph (5) of section 3(a) (42 U.S.C. 
1437a(a)(5)). 
‘‘(E) REPORTS ON OVER-INCOME FAMILIES AND WAITING 
LISTS.—The Secretary shall require that each public 
housing agency shall— 
‘‘(i) submit a report annually, in a format required 
by the Secretary, that specifies— 
‘‘(I) the number of families residing, as of the 
end of the year for which the report is submitted, 
in public housing administered by the agency who 
had incomes exceeding the applicable income 
limitation under subparagraph (C); and 
‘‘(II) the number of families, as of the end 
of such year, on the waiting lists for admission 
to public housing projects of the agency; and 
‘‘(ii) make the information reported pursuant to 
clause (i) publicly available.’’. 
SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON 
ASSETS. 
Section 16 of the United States Housing Act of 1937 (42 U.S.C. 
1437n) is amended by inserting after subsection (d) the following 
new subsection: 
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.— 
‘‘(1) LIMITATION ON ASSETS.—Subject to paragraph (3) and 
notwithstanding any other provision of this Act, a dwelling 
unit assisted under this Act may not be rented and assistance 
under this Act may not be provided, either initially or at 
each recertification of family income, to any family— 
‘‘(A) whose net family assets exceed $100,000, as such 
amount is adjusted annually by applying an inflationary 
factor as the Secretary considers appropriate; or 
‘‘(B) who has a present ownership interest in, a legal 
right to reside in, and the effective legal authority to sell, 
real property that is suitable for occupancy by the family 
as a residence, except that the prohibition under this 
subparagraph shall not apply to— 
‘‘(i) any property for which the family is receiving 
assistance under subsection (y) or (o)(12) of section 
8 of this Act; 
‘‘(ii) any person that is a victim of domestic 
violence; or 
‘‘(iii) any family that is offering such property for 
sale. 
‘‘(2) NET FAMILY ASSETS.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
term ‘net family assets’ means, for all members of the 
household, the net cash value of all assets after deducting 
reasonable costs that would be incurred in disposing of 
real property, savings, stocks, bonds, and other forms of 
capital investment. Such term does not include interests 
in Indian trust land, equity in property for which the 
family is receiving assistance under subsection (y) or (o)(12) 
of section 8, equity accounts in homeownership programs 
Definition. 
Public 
information. 
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130 STAT. 794 
PUBLIC LAW 114–201—JULY 29, 2016 
of the Department of Housing and Urban Development, 
or Family Self Sufficiency accounts. 
‘‘(B) EXCLUSIONS.—Such term does not include— 
‘‘(i) the value of personal property, except for items 
of personal property of significant value, as the Sec-
retary may establish or the public housing agency may 
determine; 
‘‘(ii) the value of any retirement account; 
‘‘(iii) real property for which the family does not 
have the effective legal authority necessary to sell such 
property; 
‘‘(iv) any amounts recovered in any civil action 
or settlement based on a claim of malpractice, neg-
ligence, or other breach of duty owed to a member 
of the family and arising out of law, that resulted 
in a member of the family being disabled; 
‘‘(v) the value of any Coverdell education savings 
account under section 530 of the Internal Revenue 
Code of 1986 or any qualified tuition program under 
section 529 of such Code; and 
‘‘(vi) such other exclusions as the Secretary may 
establish. 
‘‘(C) TRUST FUNDS.—In cases in which a trust fund 
has been established and the trust is not revocable by, 
or under the control of, any member of the family or house-
hold, the value of the trust fund shall not be considered 
an asset of a family if the fund continues to be held in 
trust. Any income distributed from the trust fund shall 
be considered income for purposes of section 3(b) and any 
calculations of annual family income, except in the case 
of medical expenses for a minor. 
‘‘(3) SELF-CERTIFICATION.— 
‘‘(A) NET
FAMILY
ASSETS.—A public housing agency 
or owner may determine the net assets of a family, for 
purposes of this section, based on a certification by the 
family that the net assets of such family do not exceed 
$50,000, as such amount is adjusted annually by applying 
an inflationary factor as the Secretary considers appro-
priate. 
‘‘(B) NO
CURRENT
REAL
PROPERTY
OWNERSHIP.—A 
public housing agency or owner may determine compliance 
with paragraph (1)(B) based on a certification by the family 
that such family does not have any current ownership 
interest in any real property at the time the agency or 
owner reviews the family’s income. 
‘‘(C) 
STANDARDIZED
FORMS.—The 
Secretary 
may 
develop standardized forms for the certifications referred 
to in subparagraphs (A) and (B). 
‘‘(4) COMPLIANCE FOR PUBLIC HOUSING DWELLING UNITS.— 
When recertifying family income with respect to families 
residing in public housing dwelling units, a public housing 
agency may, in the discretion of the agency and only pursuant 
to a policy that is set forth in the public housing agency 
plan under section 5A for the agency, choose not to enforce 
the limitation under paragraph (1). 
‘‘(5) ENFORCEMENT.—When recertifying the income of a 
family residing in a dwelling unit assisted under this Act, 
Determination. 
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130 STAT. 795 
PUBLIC LAW 114–201—JULY 29, 2016 
a public housing agency or owner may choose not to enforce 
the limitation under paragraph (1) or may establish exceptions 
to such limitation based on eligibility criteria, but only pursuant 
to a policy that is set forth in the public housing agency 
plan under section 5A for the agency or under a policy adopted 
by the owner. Eligibility criteria for establishing exceptions 
may provide for separate treatment based on family type and 
may be based on different factors, such as age, disability, 
income, the ability of the family to find suitable alternative 
housing, and whether supportive services are being provided. 
‘‘(6) AUTHORITY
TO
DELAY
EVICTIONS.—In the case of a 
family residing in a dwelling unit assisted under this Act who 
does not comply with the limitation under paragraph (1), the 
public housing agency or project owner may delay eviction 
or termination of the family based on such noncompliance for 
a period of not more than 6 months. 
‘‘(7) VERIFYING INCOME.— 
‘‘(A) Beginning in fiscal year 2018, the Secretary shall 
require public housing agencies to require each applicant 
for, or recipient of, benefits under this Act to provide 
authorization by the applicant or recipient (or by any other 
person whose income or resources are material to the deter-
mination of the eligibility of the applicant or recipient 
for such benefits) for the public housing agency to obtain 
(subject to the cost reimbursement requirements of section 
1115(a) of the Right to Financial Privacy Act) from any 
financial institution (within the meaning of section 1101(1) 
of such Act) any financial record (within the meaning of 
section 1101(2) of such Act) held by the institution with 
respect to the applicant or recipient (or any such other 
person) whenever the public housing agency determines 
the record is needed in connection with a determination 
with respect to such eligibility or the amount of such bene-
fits. 
‘‘(B) Notwithstanding section 1104(a)(1) of the Right 
to Financial Privacy Act, an authorization provided by an 
applicant or recipient (or any other person whose income 
or resources are material to the determination of the eligi-
bility of the applicant or recipient) pursuant to subpara-
graph (A) of this paragraph shall remain effective until 
the earliest of— 
‘‘(i) the rendering of a final adverse decision on 
the applicant’s application for eligibility for benefits 
under this Act; 
‘‘(ii) the cessation of the recipient’s eligibility for 
benefits under this Act; or 
‘‘(iii) the express revocation by the applicant or 
recipient (or such other person referred to in subpara-
graph (A)) of the authorization, in a written notification 
to the Secretary. 
‘‘(C)(i) An authorization obtained by the public housing 
agency pursuant to this paragraph shall be considered 
to meet the requirements of the Right to Financial Privacy 
Act for purposes of section 1103(a) of such Act, and need 
not be furnished to the financial institution, notwith-
standing section 1104(a) of such Act. 
Notification. 
Effective date. 
Records. 
Determination. 
Time period. 
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130 STAT. 796 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(ii) The certification requirements of section 1103(b) 
of the Right to Financial Privacy Act shall not apply to 
requests by the public housing agency pursuant to an 
authorization provided under this clause. 
‘‘(iii) A request by the public housing agency pursuant 
to an authorization provided under this clause is deemed 
to meet the requirements of section 1104(a)(3) of the Right 
to Financial Privacy Act and the flush language of section 
1102 of such Act. 
‘‘(iv) The public housing agency shall inform any person 
who provides authorization pursuant to this paragraph 
of the duration and scope of the authorization. 
‘‘(D) If an applicant for, or recipient of, benefits under 
this Act (or any such other person referred to in subpara-
graph (A)) refuses to provide, or revokes, any authorization 
made by the applicant or recipient for the public housing 
agency to obtain from any financial institution any financial 
record, the public housing agency may, on that basis, deter-
mine that the applicant or recipient is ineligible for benefits 
under this title.’’. 
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES. 
Paragraph (11) of section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(11)) is amended— 
(1) by striking ‘‘(11) LEASING OF UNITS OWNED BY PHA.— 
If’’ and inserting the following: 
‘‘(11) LEASING OF UNITS OWNED BY PHA.— 
‘‘(A) INSPECTIONS AND RENT DETERMINATIONS.—If’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(B) UNITS OWNED BY PHA.—For purposes of this sub-
section, the term ‘owned by a public housing agency’ means, 
with respect to a dwelling unit, that the dwelling unit 
is in a project that is owned by such agency, by an entity 
wholly controlled by such agency, or by a limited liability 
company or limited partnership in which such agency (or 
an entity wholly controlled by such agency) holds a control-
ling interest in the managing member or general partner. 
A dwelling unit shall not be deemed to be owned by a 
public housing agency for purposes of this subsection 
because the agency holds a fee interest as ground lessor 
in the property on which the unit is situated, holds a 
security interest under a mortgage or deed of trust on 
the unit, or holds a non-controlling interest in an entity 
which owns the unit or in the managing member or general 
partner of an entity which owns the unit.’’. 
SEC. 106. PHA PROJECT-BASED ASSISTANCE. 
(a) IN GENERAL.—Paragraph (13) of section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended— 
(1) by striking ‘‘structure’’ each place such term appears 
and inserting ‘‘project’’; 
(2) by striking subparagraph (B) and inserting the following 
new subparagraph: 
‘‘(B) PERCENTAGE LIMITATION.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), a public 
housing agency may use for project-based assistance 
under this paragraph not more than 20 percent of 
the authorized units for the agency. 
Definition. 
Notification. 
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130 STAT. 797 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(ii) EXCEPTION.—A public housing agency may use 
up to an additional 10 percent of the authorized units 
for the agency for project-based assistance under this 
paragraph, to provide units that house individuals and 
families that meet the definition of homeless under 
section 103 of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11302), that house families with 
veterans, that provide supportive housing to persons 
with disabilities or elderly persons, or that are located 
in areas where vouchers under this subsection are 
difficult to use, as specified in subparagraph (D)(ii)(II). 
Any units of project-based assistance that are attached 
to units previously subject to federally required rent 
restrictions or receiving another type of long-term 
housing subsidy provided by the Secretary shall not 
count toward the percentage limitation under clause 
(i) of this subparagraph. The Secretary may, by regula-
tion, establish additional categories for the exception 
under this clause.’’; 
(3) by striking subparagraph (D) and inserting the following 
new subparagraph: 
‘‘(D) INCOME-MIXING REQUIREMENT.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), not more than the greater of 25 dwelling units 
or 25 percent of the dwelling units in any project 
may be assisted under a housing assistance payment 
contract for project-based assistance pursuant to this 
paragraph. For purposes of this subparagraph, the 
term ‘project’ means a single building, multiple contig-
uous buildings, or multiple buildings on contiguous 
parcels of land. 
‘‘(ii) EXCEPTIONS.— 
‘‘(I) CERTAIN FAMILIES.—The limitation under 
clause (i) shall not apply to dwelling units assisted 
under a contract that are exclusively made avail-
able to elderly families or to households eligible 
for supportive services that are made available 
to the assisted residents of the project, according 
to standards for such services the Secretary may 
establish. 
‘‘(II) CERTAIN AREAS.—With respect to areas 
in which tenant-based vouchers for assistance 
under this subsection are difficult to use, as deter-
mined by the Secretary, and with respect to census 
tracts with a poverty rate of 20 percent or less, 
clause (i) shall be applied by substituting ‘40 per-
cent’ for ‘25 percent’, and the Secretary may, by 
regulation, establish additional conditions. 
‘‘(III) CERTAIN
CONTRACTS.—The limitation 
under clause (i) shall not apply with respect to 
contracts or renewal of contracts under which a 
greater percentage of the dwelling units in a 
project were assisted under a housing assistance 
payment contract for project-based assistance 
pursuant to this paragraph on the date of the 
enactment of the Housing Opportunity Through 
Modernization Act of 2016. 
Determination. 
Applicability. 
Regulations. 
Definition. 
Regulations. 
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130 STAT. 798 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(IV) CERTAIN
PROPERTIES.—Any units of 
project-based assistance under this paragraph that 
are attached to units previously subject to federally 
required rent restrictions or receiving other 
project-based assistance provided by the Secretary 
shall not count toward the percentage limitation 
imposed by this subparagraph (D). 
‘‘(iii) ADDITIONAL
MONITORING
AND
OVERSIGHT 
REQUIREMENTS.—The Secretary may establish addi-
tional requirements for monitoring and oversight of 
projects in which more than 40 percent of the dwelling 
units are assisted under a housing assistance payment 
contract for project-based assistance pursuant to this 
paragraph.’’; 
(4) by striking subparagraph (F) and inserting the following 
new subparagraph: 
‘‘(F) CONTRACT TERM.— 
‘‘(i) TERM.—A housing assistance payment contract 
pursuant to this paragraph between a public housing 
agency and the owner of a project may have a term 
of up to 20 years, subject to— 
‘‘(I) the availability of sufficient appropriated 
funds for the purpose of renewing expiring con-
tracts for assistance payments, as provided in 
appropriation Acts and in the agency’s annual con-
tributions contract with the Secretary, provided 
that in the event of insufficient appropriated funds, 
payments due under contracts under this para-
graph shall take priority if other cost-saving meas-
ures that do not require the termination of an 
existing contract are available to the agency; and 
‘‘(II) compliance with the inspection require-
ments under paragraph (8), except that the agency 
shall not be required to make biennial inspections 
of each assisted unit in the development. 
‘‘(ii) ADDITION OF ELIGIBLE UNITS.—Subject to the 
limitations of subparagraphs (B) and (D), the agency 
and the owner may add eligible units within the same 
project to a housing assistance payments contract at 
any time during the term thereof without being subject 
to any additional competitive selection procedures. 
‘‘(iii) HOUSING UNDER CONSTRUCTION OR RECENTLY 
CONSTRUCTED.—An agency may enter into a housing 
assistance payments contract with an owner for any 
unit that does not qualify as existing housing and 
is under construction or recently has been constructed 
whether or not the agency has executed an agreement 
to enter into a contract with the owner, provided that 
the owner demonstrates compliance with applicable 
requirements prior to execution of the housing assist-
ance payments contract. This clause shall not subject 
a housing assistance payments contract for existing 
housing under this paragraph to such requirements 
or otherwise limit the extent to which a unit may 
be assisted as existing housing. 
‘‘(iv) ADDITIONAL CONDITIONS.—The contract may 
specify additional conditions, including with respect 
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130 STAT. 799 
PUBLIC LAW 114–201—JULY 29, 2016 
to continuation, termination, or expiration, and shall 
specify that upon termination or expiration of the con-
tract without extension, each assisted family may elect 
to use its assistance under this subsection to remain 
in the same project if its unit complies with the inspec-
tion requirements under paragraph (8), the rent for 
the unit is reasonable as required by paragraph (10)(A), 
and the family pays its required share of the rent 
and the amount, if any, by which the unit rent 
(including the amount allowed for tenant-based utili-
ties) exceeds the applicable payment standard.’’; 
(5) in subparagraph (G), by striking ‘‘15 years’’ and 
inserting ‘‘20 years’’; 
(6) by striking subparagraph (I) and inserting the following 
new subparagraph: 
‘‘(I) RENT ADJUSTMENTS.—A housing assistance pay-
ments contract pursuant to this paragraph entered into 
after the date of the enactment of the Housing Opportunity 
Through Modernization Act of 2016 shall provide for annual 
rent adjustments upon the request of the owner, except 
that— 
‘‘(i) by agreement of the parties, a contract may 
allow a public housing agency to adjust the rent for 
covered units using an operating cost adjustment factor 
established by the Secretary pursuant to section 524(c) 
of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (which shall not result in 
a negative adjustment), in which case the contract 
may require an additional adjustment, if requested, 
up to the reasonable rent periodically during the term 
of the contract, and shall require such an adjustment, 
if requested, upon extension pursuant to subparagraph 
(G); 
‘‘(ii) the adjusted rent shall not exceed the max-
imum rent permitted under subparagraph (H); 
‘‘(iii) the contract may provide that the maximum 
rent permitted for a dwelling unit shall not be less 
than the initial rent for the dwelling unit under the 
initial housing assistance payments contract covering 
the units; and 
‘‘(iv) the provisions of subsection (c)(2)(C) shall not 
apply.’’; 
(7) in subparagraph (J)— 
(A) in the first sentence— 
(i) by striking ‘‘shall’’ and inserting ‘‘may’’; and 
(ii) by inserting before the period the following: 
‘‘or may permit owners to select applicants from site- 
based waiting lists as specified in this subparagraph’’; 
(B) by striking the third sentence and inserting the 
following: ‘‘The agency or owner may establish preferences 
or criteria for selection for a unit assisted under this para-
graph that are consistent with the public housing agency 
plan for the agency approved under section 5A and that 
give preference to families who qualify for voluntary serv-
ices, including disability-specific services, offered in 
conjunction with assisted units.’’; and 
Contracts. 
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130 STAT. 800 
PUBLIC LAW 114–201—JULY 29, 2016 
(C) by striking the fifth and sixth sentences and 
inserting the following: ‘‘A public housing agency may 
establish and utilize procedures for owner-maintained site- 
based waiting lists, under which applicants may apply 
at, or otherwise designate to the public housing agency, 
the project or projects in which they seek to reside, except 
that all eligible applicants on the waiting list of an agency 
for assistance under this subsection shall be permitted 
to place their names on such separate list, subject to poli-
cies and procedures established by the Secretary. All such 
procedures shall comply with title VI of the Civil Rights 
Act of 1964, the Fair Housing Act, section 504 of the 
Rehabilitation Act of 1973, and other applicable civil rights 
laws. The owner or manager of a project assisted under 
this paragraph shall not admit any family to a dwelling 
unit assisted under a contract pursuant to this paragraph 
other than a family referred by the public housing agency 
from its waiting list, or a family on a site-based waiting 
list that complies with the requirements of this subpara-
graph. A public housing agency shall disclose to each 
applicant all other options in the selection of a project 
in which to reside that are provided by the public housing 
agency and are available to the applicant.’’; 
(8) in subparagraph (M)(ii), by inserting before the period 
at the end the following: ‘‘relating to funding other than housing 
assistance payments’’; and 
(9) by adding at the end the following new subparagraphs: 
‘‘(N) STRUCTURE OWNED BY AGENCY.—A public housing 
agency engaged in an initiative to improve, develop, or 
replace a public housing property or site may attach assist-
ance to an existing, newly constructed, or rehabilitated 
structure in which the agency has an ownership interest 
or which the agency has control of without following a 
competitive process, provided that the agency has notified 
the public of its intent through its public housing agency 
plan and subject to the limitations and requirements of 
this paragraph. 
‘‘(O) SPECIAL PURPOSE VOUCHERS.—A public housing 
agency that administers vouchers authorized under sub-
section (o)(19) or (x) of this section may provide such assist-
ance in accordance with the limitations and requirements 
of this paragraph, without additional requirements for 
approval by the Secretary.’’. 
(b) EFFECTIVE DATE.—The Secretary of Housing and Urban 
Development shall issue notice or regulations to implement sub-
section (a) of this section and such subsection shall take effect 
upon such issuance. 
SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT. 
(a) IN GENERAL.—Paragraph (1) of section 8(c) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended— 
(1) by inserting ‘‘(A)’’ after the paragraph designation; 
(2) by striking the fourth, seventh, eighth, and ninth sen-
tences; and 
(3) by adding at the end the following: 
‘‘(B) Fair market rentals for an area shall be published not 
less than annually by the Secretary on the site of the Department 
Web posting. 
Notice. 
Regulations. 
42 USC 1437f 
note. 
Notification. 
Public 
information. 
Disclosure. 
Procedures. 
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130 STAT. 801 
PUBLIC LAW 114–201—JULY 29, 2016 
on the World Wide Web and in any other manner specified by 
the Secretary. Notice that such fair market rentals are being pub-
lished shall be published in the Federal Register, and such fair 
market rentals shall become effective no earlier than 30 days after 
the date of such publication. The Secretary shall establish a proce-
dure for public housing agencies and other interested parties to 
comment on such fair market rentals and to request, within a 
time specified by the Secretary, reevaluation of the fair market 
rentals in a jurisdiction before such rentals become effective. The 
Secretary shall cause to be published for comment in the Federal 
Register notices of proposed material changes in the methodology 
for estimating fair market rentals and notices specifying the final 
decisions regarding such proposed substantial methodological 
changes and responses to public comments.’’. 
(b) PAYMENT STANDARD.—Subparagraph (B) of section 8(o)(1) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) 
is amended by inserting before the period at the end the following: 
‘‘, except that no public housing agency shall be required as a 
result of a reduction in the fair market rental to reduce the payment 
standard applied to a family continuing to reside in a unit for 
which the family was receiving assistance under this section at 
the time the fair market rental was reduced. The Secretary shall 
allow public housing agencies to request exception payment stand-
ards within fair market rental areas subject to criteria and proce-
dures established by the Secretary’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect upon the date of the enactment of this Act. 
SEC. 108. COLLECTION OF UTILITY DATA. 
Section 8(o) 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) COLLECTION OF UTILITY DATA.— 
‘‘(A) PUBLICATION.—The Secretary shall, to the extent 
that data can be collected cost effectively, regularly publish 
such data regarding utility consumption and costs in local 
areas as the Secretary determines will be useful for the 
establishment of allowances for tenant-paid utilities for 
families assisted under this subsection. 
‘‘(B) USE OF DATA.—The Secretary shall provide such 
data in a manner that— 
‘‘(i) avoids unnecessary administrative burdens for 
public housing agencies and owners; and 
‘‘(ii) protects families in various unit sizes and 
building types, and using various utilities, from high 
rent and utility cost burdens relative to income.’’. 
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS. 
(a) CAPITAL FUND REPLACEMENT RESERVES.—Section 9 of the 
United States Housing Act of 1937 (42 U.S.C. 1437g) is amended— 
(1) in subsection (j), by adding at the end the following 
new paragraph: 
‘‘(7) TREATMENT OF REPLACEMENT RESERVE.—The require-
ments of this subsection shall not apply to funds held in replace-
ment reserves established pursuant to subsection (n).’’; and 
(2) by adding at the end the following new subsection: 
‘‘(n) ESTABLISHMENT OF REPLACEMENT RESERVES.— 
Determination. 
42 USC 1437f 
note. 
Criteria. 
Procedures. 
Notice. 
Federal Register, 
publication. 
Effective date. 
Time period. 
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130 STAT. 802 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(1) IN GENERAL.—Public housing agencies shall be per-
mitted to establish a replacement reserve to fund any of the 
capital activities listed in subsection (d)(1). 
‘‘(2) SOURCE
AND
AMOUNT
OF
FUNDS
FOR
REPLACEMENT 
RESERVE.—At any time, a public housing agency may deposit 
funds from such agency’s Capital Fund into a replacement 
reserve, subject to the following: 
‘‘(A) At the discretion of the Secretary, public housing 
agencies may transfer and hold in a replacement reserve 
funds originating from additional sources. 
‘‘(B) No minimum transfer of funds to a replacement 
reserve shall be required. 
‘‘(C) At any time, a public housing agency may not 
hold in a replacement reserve more than the amount the 
public housing authority has determined necessary to sat-
isfy the anticipated capital needs of properties in its port-
folio assisted under this section, as outlined in its Capital 
Fund 5-Year Action Plan, or a comparable plan, as deter-
mined by the Secretary. 
‘‘(D) The Secretary may establish, by regulation, a 
maximum replacement reserve level or levels that are 
below amounts determined under subparagraph (C), which 
may be based upon the size of the portfolio assisted under 
this section or other factors. 
‘‘(3) TRANSFER OF OPERATING FUNDS.—In first establishing 
a replacement reserve, the Secretary may allow public housing 
agencies to transfer more than 20 percent of its operating 
funds into its replacement reserve. 
‘‘(4) EXPENDITURE.—Funds in a replacement reserve may 
be used for purposes authorized by subsection (d)(1) and con-
tained in its Capital Fund 5-Year Action Plan. 
‘‘(5) MANAGEMENT AND REPORT.—The Secretary shall estab-
lish appropriate accounting and reporting requirements to 
ensure that public housing agencies are spending funds on 
eligible projects and that funds in the replacement reserve 
are connected to capital needs.’’. 
(b) FLEXIBILITY OF OPERATING FUND AMOUNTS.—Paragraph (1) 
of section 9(g) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(g)(1)) is amended— 
(1) by striking ‘‘(1)’’ and all that follows through ‘‘—Of’’ 
and inserting the following: 
‘‘(1) FLEXIBILITY IN USE OF FUNDS.— 
‘‘(A) FLEXIBILITY
FOR
CAPITAL
FUND
AMOUNTS.—Of’’; 
and 
(2) by adding at the end the following new subparagraph: 
‘‘(B) FLEXIBILITY FOR OPERATING FUND AMOUNTS.—Of 
any amounts appropriated for fiscal year 2016 or any fiscal 
year thereafter that are allocated for fiscal year 2016 or 
any fiscal year thereafter from the Operating Fund for 
any public housing agency, the agency may use not more 
than 20 percent for activities that are eligible under sub-
section (d) for assistance with amounts from the Capital 
Fund, but only if the public housing plan under section 
5A for the agency provides for such use.’’. 
Regulations. 
Determination. 
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130 STAT. 803 
PUBLIC LAW 114–201—JULY 29, 2016 
SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT 
OF FOSTER CARE. 
Section 8(x) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(x)) is amended— 
(1) in paragraph (2)(B)— 
(A) by striking ‘‘18 months’’ and inserting ‘‘36 months’’; 
(B) by striking ‘‘21 years of age’’ and inserting ‘‘24 
years of age’’; and 
(C) by inserting after ‘‘have left foster care’’ the fol-
lowing: ‘‘, or will leave foster care within 90 days, in accord-
ance with a transition plan described in section 475(5)(H) 
of the Social Security Act, and is homeless or is at risk 
of becoming homeless’’; 
(2) by redesignating paragraph (4) as paragraph (5); and 
(3) by inserting after paragraph (3) the following new para-
graph: 
‘‘(4) COORDINATION
BETWEEN
PUBLIC
HOUSING
AGENCIES 
AND PUBLIC CHILD WELFARE AGENCIES.—The Secretary shall, 
not later than the expiration of the 180-day period beginning 
on the date of the enactment of the Housing Opportunity 
Through Modernization Act of 2016 and after consultation with 
other appropriate Federal agencies, issue guidance to improve 
coordination between public housing agencies and public child 
welfare agencies in carrying out the program under this sub-
section, which shall provide guidance on— 
‘‘(A) identifying eligible recipients for assistance under 
this subsection; 
‘‘(B) coordinating with other local youth and family 
providers in the community and participating in the Con-
tinuum of Care program established under subtitle C of 
title IV of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11381 et seq.); 
‘‘(C) implementing housing strategies to assist eligible 
families and youth; 
‘‘(D) aligning system goals to improve outcomes for 
families and youth and reducing lapses in housing for 
families and youth; and 
‘‘(E) identifying resources that are available to eligible 
families and youth to provide supportive services available 
through parts B and E of title IV of the Social Security 
Act (42 U.S.C. 621 et seq.; 670 et seq.) or that the head 
of household of a family or youth may be entitled to receive 
under section 477 of the Social Security Act (42 U.S.C. 
677).’’. 
SEC. 111. PUBLIC HOUSING HEATING GUIDELINES. 
Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new subsection: 
‘‘(o) PUBLIC HOUSING HEATING GUIDELINES.—The Secretary 
shall publish model guidelines for minimum heating requirements 
for public housing dwelling units operated by public housing agen-
cies receiving assistance under this section.’’. 
SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING. 
(a) IN GENERAL.—Section 8(o)(12) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(12)) is amended— 
Publication. 
Deadline. 
Time period. 
Effective date. 
Consultation. 
Guidance. 
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130 STAT. 804 
PUBLIC LAW 114–201—JULY 29, 2016 
(1) in subparagraph (A), by striking the period at the 
end of the first sentence and all that follows through ‘‘of’’ 
in the second sentence and inserting ‘‘and rents’’; and 
(2) in subparagraph (B)— 
(A) in clause (i), by striking ‘‘the rent’’ and all that 
follows and inserting the following: ‘‘rent shall mean the 
sum of the monthly payments made by a family assisted 
under this paragraph to amortize the cost of purchasing 
the manufactured home, including any required insurance 
and property taxes, the monthly amount allowed for tenant- 
paid utilities, and the monthly rent charged for the real 
property on which the manufactured home is located, 
including 
monthly 
management 
and 
maintenance 
charges.’’; 
(B) by striking clause (ii); and 
(C) in clause (iii)— 
(i) by inserting after the period at the end the 
following: ‘‘If the amount of the monthly assistance 
payment for a family exceeds the monthly rent charged 
for the real property on which the manufactured home 
is located, including monthly management and mainte-
nance charges, a public housing agency may pay the 
remainder to the family, lender or utility company, 
or may choose to make a single payment to the family 
for the entire monthly assistance amount.’’; and 
(ii) by redesignating such clause as clause (ii). 
(b) EFFECTIVE DATE.—The Secretary of Housing and Urban 
Development shall issue notice to implement the amendments made 
by subsection (a) and such amendments shall take effect upon 
such issuance. 
SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS. 
Section 214(a)(7) of the Housing and Community Development 
Act of 1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ‘‘such 
alien’’ and all that follows through the period at the end and 
inserting ‘‘any citizen or national of the United States shall be 
entitled to a preference or priority in receiving financial assistance 
before any such alien who is otherwise eligible for assistance.’’. 
SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD 
MEMBER REQUIREMENT. 
Subsection (b) of section 2 of the United States Housing Act 
of 1937 (42 U.S.C. 1437(b)) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph (2)’’ and 
inserting ‘‘paragraphs (2) and (3)’’; 
(2) by redesignating paragraph (3) as paragraph (4); and 
(3) by inserting after paragraph (2) the following new para-
graph: 
‘‘(3) EXCEPTION FOR CERTAIN JURISDICTIONS.— 
‘‘(A) EXCEPTION.—A covered agency (as such term is 
defined in subparagraph (C) of this paragraph) shall not 
be required to include on the board of directors or a similar 
governing board of such agency a member described in 
paragraph (1). 
‘‘(B) ADVISORY
BOARD
REQUIREMENT.—Each covered 
agency that administers Federal housing assistance under 
section 8 (42 U.S.C. 1437f) that chooses not to include 
Establishment. 
Notice. 
42 USC 1437f 
note. 
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130 STAT. 805 
PUBLIC LAW 114–201—JULY 29, 2016 
a member described in paragraph (1) on the board of direc-
tors or a similar governing board of the agency shall estab-
lish an advisory board of not less than 6 residents of 
public housing or recipients of assistance under section 
8 (42 U.S.C. 1437f) to provide advice and comment to 
the agency or other administering entity on issues related 
to public housing and section 8. Such advisory board shall 
meet not less than quarterly. 
‘‘(C) COVERED
AGENCY
OR
ENTITY.—For purposes of 
this paragraph, the term ‘covered agency’ means a public 
housing agency or such other entity that administers Fed-
eral housing assistance for— 
‘‘(I) the Housing Authority of the county of Los 
Angeles, California; or 
‘‘(ii) any of the States of Alaska, Iowa, and Mis-
sissippi.’’. 
TITLE II—RURAL HOUSING 
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN 
APPROVAL. 
Subsection (h) of section 502 of the Housing Act of 1949 (42 
U.S.C. 1472(h)) is amended by adding at the end the following 
new paragraph: 
‘‘(18) DELEGATION OF APPROVAL.—The Secretary may dele-
gate, in part or in full, the Secretary’s authority to approve 
and execute binding Rural Housing Service loan guarantees 
pursuant to this subsection to certain preferred lenders, in 
accordance with standards established by the Secretary.’’. 
SEC. 202. GUARANTEED UNDERWRITING USER FEE. 
Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is 
amended by adding at the end the following new subsection: 
‘‘(i) GUARANTEED UNDERWRITING USER FEE.— 
‘‘(1) AUTHORITY; MAXIMUM AMOUNT.—The Secretary may 
assess and collect a fee for a lender to access the automated 
underwriting systems of the Department in connection with 
such lender’s participation in the single family loan program 
under this section and only in an amount necessary to cover 
the costs of information technology enhancements, improve-
ments, maintenance, and development for automated under-
writing systems used in connection with the single family loan 
program under this section, except that such fee shall not 
exceed $50 per loan. 
‘‘(2) CREDITING; AVAILABILITY.—Any amounts collected from 
such fees shall be credited to the Rural Development Expense 
Account as offsetting collections and shall remain available 
until expended, in the amounts provided in appropriation Acts, 
solely for expenses described in paragraph (1).’’. 
Standards. 
Definition. 
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130 STAT. 806 
PUBLIC LAW 114–201—JULY 29, 2016 
TITLE III—FHA MORTGAGE INSURANCE 
FOR CONDOMINIUMS 
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE 
INSURANCE FOR CONDOMINIUMS. 
Section 203 of the National Housing Act (12 U.S.C. 1709) 
is amended by adding at the end the following new subsection: 
‘‘(y) REQUIREMENTS FOR MORTGAGES FOR CONDOMINIUMS.— 
‘‘(1) PROJECT
RECERTIFICATION
REQUIREMENTS.—Notwith-
standing any other law, regulation, or guideline of the Sec-
retary, including chapter 2.4 of the Condominium Project 
Approval and Processing Guide of the FHA, the Secretary shall 
streamline the project certification requirements that are 
applicable to the insurance under this section for mortgages 
for condominium projects so that recertifications are substan-
tially less burdensome than certifications. The Secretary shall 
consider lengthening the time between certifications for 
approved properties, and allowing updating of information 
rather than resubmission. 
‘‘(2) COMMERCIAL SPACE REQUIREMENTS.—Notwithstanding 
any other law, regulation, or guideline of the Secretary, 
including chapter 2.1.3 of the Condominium Project Approval 
and Processing Guide of the FHA, in providing for exceptions 
to the requirement for the insurance of a mortgage on a condo-
minium property under this section regarding the percentage 
of the floor space of a condominium property that may be 
used for nonresidential or commercial purposes, the Secretary 
shall provide that— 
‘‘(A) any request for such an exception and the deter-
mination of the disposition of such request may be made, 
at the option of the requester, under the direct endorsement 
lender review and approval process or under the HUD 
review and approval process through the applicable field 
office of the Department; and 
‘‘(B) in determining whether to allow such an exception 
for a condominium property, factors relating to the economy 
for the locality in which such project is located or specific 
to project, including the total number of family units in 
the project, shall be considered. 
Not later than the expiration of the 90-day period beginning 
on the date of the enactment of this paragraph, the Secretary 
shall issue regulations to implement this paragraph, which 
shall include any standards, training requirements, and rem-
edies and penalties that the Secretary considers appropriate. 
‘‘(3) TRANSFER FEES.—Notwithstanding any other law, regu-
lation, or guideline of the Secretary, including chapter 1.8.8 
of the Condominium Project Approval and Processing Guide 
of the FHA and section 203.41 of the Secretary’s regulations 
(24 CFR 203.41), existing standards of the Federal Housing 
Finance Agency relating to encumbrances under private 
transfer fee covenants shall apply to the insurance of mortgages 
by the Secretary under this section to the same extent and 
in the same manner that such standards apply to the pur-
chasing, investing in, and otherwise dealing in mortgages by 
the Federal National Mortgage Association and the Federal 
Home Loan Mortgage Corporation. If the provisions of part 
Federal Register, 
publication. 
Notice. 
Deadline. 
Applicability. 
Deadline. 
Time period. 
Effective date. 
Regulations. 
Standards. 
Penalties. 
Determination. 
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130 STAT. 807 
PUBLIC LAW 114–201—JULY 29, 2016 
1228 of the Director of the Federal Housing Finance Agency’s 
regulations (12 CFR part 1228) are amended or otherwise 
changed after the date of the enactment of this paragraph, 
the Secretary of Housing and Urban Development shall adopt 
any such amendments or changes for purposes of this para-
graph, unless the Secretary causes to be published in the Fed-
eral Register a notice explaining why the Secretary will dis-
regard such amendments or changes within 90 days after the 
effective date of such amendments or changes. 
‘‘(4) OWNER-OCCUPANCY REQUIREMENT.— 
‘‘(A) ESTABLISHMENT OF PERCENTAGE REQUIREMENT.— 
Not later than the expiration of the 90-day period beginning 
on the date of the enactment of this paragraph, the Sec-
retary shall, by rule, notice, or mortgagee letter, issue 
guidance regarding the percentage of units that must be 
occupied by the owners as a principal residence or a sec-
ondary residence (as such terms are defined by the Sec-
retary), or must have been sold to owners who intend 
to meet such occupancy requirements, including justifica-
tions for the percentage requirements, in order for a condo-
minium project to be acceptable to the Secretary for insur-
ance under this section of a mortgage within such condo-
minium property. 
‘‘(B) FAILURE TO ACT.—If the Secretary fails to issue 
the guidance required under subparagraph (A) before the 
expiration of the 90-day period specified in such clause, 
the following provisions shall apply: 
‘‘(i) 35 PERCENT REQUIREMENT.—In order for a con-
dominium project to be acceptable to the Secretary 
for insurance under this section, at least 35 percent 
of all family units (including units not covered by FHA- 
insured mortgages) must be occupied by the owners 
as a principal residence or a secondary residence (as 
such terms are defined by the Secretary), or must 
have been sold to owners who intend to meet such 
occupancy requirement. 
‘‘(ii) OTHER CONSIDERATIONS.—The Secretary may 
increase the percentage applicable pursuant to clause 
(i) to a condominium project on a project-by-project 
or regional basis, and in determining such percentage 
for a project shall consider factors relating to the 
economy for the locality in which such project is located 
or specific to project, including the total number of 
family units in the project.’’. 
TITLE IV—HOUSING REFORMS FOR THE 
HOMELESS AND FOR VETERANS 
SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF 
CARE PROGRAM. 
(a) DEFINITION.—Subtitle C of the McKinney-Vento Homeless 
Assistance Act is amended— 
(1) by redesignating sections 432 and 433 (42 U.S.C. 11387, 
11388) as sections 433 and 434, respectively; and 
(2) by inserting after section 431 (42 U.S.C. 11386e) the 
following new section: 
Applicability. 
Deadline. 
Time period. 
Effective date. 
Regulations. 
Notice. 
Guidance. 
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130 STAT. 808 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘SEC. 432. GEOGRAPHIC AREAS. 
‘‘(a) REQUIREMENT TO DEFINE.—For purposes of this subtitle, 
the term ‘geographic area’ shall have such meaning as the Secretary 
shall by notice provide. 
‘‘(b) ISSUANCE OF NOTICE.—Not later than the expiration of 
the 90-day period beginning on the date of the enactment of the 
Housing Opportunity Through Modernization Act of 2016, the Sec-
retary shall issue a notice setting forth the definition required 
by subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents in section 
101(b) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11301 note) is amended by striking the items relating to sections 
432 and 433 and inserting the following new items: 
‘‘Sec. 432. Geographic areas. 
‘‘Sec. 433. Regulations. 
‘‘Sec. 434. Reports to Congress.’’. 
SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL 
REDEVELOPMENT AUTHORITIES IN EMERGENCY SOLU-
TIONS GRANTS. 
Section 414(c) of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11373(c)) is amended— 
(1) in the subsection heading, by inserting ‘‘, PUBLIC 
HOUSING AGENCIES, AND LOCAL REDEVELOPMENT AUTHORITIES’’ 
after ‘‘ORGANIZATIONS’’; and 
(2) in the first sentence, by inserting before the period 
at the end the following: ‘‘, to public housing agencies (as 
defined under section 3(b)(6) of the United States Housing 
Act of 1937), or to local redevelopment authorities (as defined 
under State law)’’. 
SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE 
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. 
(a) TRANSFER OF POSITION TO OFFICE OF THE SECRETARY.— 
Section 4 of the Department of Housing and Urban Development 
Act (42 U.S.C. 3533) is amended by adding at the end the following 
new subsection: 
‘‘(h) SPECIAL ASSISTANT FOR VETERANS AFFAIRS.— 
‘‘(1) POSITION.—There shall be in the Office of the Secretary 
a Special Assistant for Veterans Affairs, who shall report 
directly to the Secretary. 
‘‘(2) APPOINTMENT.—The Special Assistant for Veterans 
Affairs shall be appointed based solely on merit and shall 
be covered under the provisions of title 5, United States Code, 
governing appointments in the competitive service. 
‘‘(3) RESPONSIBILITIES.—The Special Assistant for Veterans 
Affairs shall be responsible for— 
‘‘(A) ensuring veterans have fair access to housing and 
homeless assistance under each program of the Department 
providing either such assistance; 
‘‘(B) coordinating all programs and activities of the 
Department relating to veterans; 
‘‘(C) serving as a liaison for the Department with the 
Department of Veterans Affairs, including establishing and 
maintaining relationships with the Secretary of Veterans 
Affairs; 
Deadline. 
Time period. 
Effective date. 
Notice. 
42 USC 11386f. 
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130 STAT. 809 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(D) serving as a liaison for the Department, and estab-
lishing and maintaining relationships with the United 
States Interagency Council on Homelessness and officials 
of State, local, regional, and nongovernmental organiza-
tions concerned with veterans; 
‘‘(E) providing information and advice regarding— 
‘‘(i) sponsoring housing projects for veterans 
assisted under programs administered by the Depart-
ment; or 
‘‘(ii) assisting veterans in obtaining housing or 
homeless assistance under programs administered by 
the Department; 
‘‘(F) coordinating with the Secretary of Housing and 
Urban Development and the Secretary of Veterans Affairs 
in carrying out section 404 of the Housing Opportunity 
Through Modernization Act of 2016; 
‘‘(G) collaborating with the Department of Veterans 
Affairs on making joint recommendations to the Congress, 
the Secretary of Housing and Urban Development, and 
the Secretary of Veterans Affairs on how to better coordi-
nate and improve services to veterans under both Depart-
ment of Housing and Urban Development and Department 
of Veteran Affairs veterans housing programs, including 
ways to improve the Independent Living Program of the 
Department of Veteran Affairs; and 
‘‘(H) carrying out such other duties as may be assigned 
to the Special Assistant by the Secretary or by law.’’. 
(b) TRANSFER OF POSITION IN OFFICE OF DEPUTY ASSISTANT 
SECRETARY FOR SPECIAL NEEDS.—On the date that the initial Spe-
cial Assistant for Veterans Affairs is appointed pursuant to section 
4(h)(2) of the Department of Housing and Urban Development 
Act, as added by subsection (a) of this section, the position of 
Special Assistant for Veterans Programs in the Office of the Deputy 
Assistant Secretary for Special Needs of the Department of Housing 
and Urban Development shall be terminated. 
SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESS-
NESS. 
(a) IN GENERAL.—The Secretary of Housing and Urban Develop-
ment and the Secretary of Veterans Affairs, in coordination with 
the United States Interagency Council on Homelessness, shall 
submit annually to the Committees of the Congress specified in 
subsection (b), together with the annual reports required by such 
Secretaries under section 203(c)(1) of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11313(c)(1)), a supplemental report that 
includes the following information with respect to the preceding 
year: 
(1) The same information, for such preceding year, that 
was included with respect to 2010 in the report by the Secretary 
of Housing and Urban Development and the Secretary of Vet-
erans Affairs entitled ‘‘Veterans Homelessness: A Supplemental 
Report to the 2010 Annual Homeless Assessment Report to 
Congress’’. 
(2) Information regarding the activities of the Department 
of Housing and Urban Development relating to veterans during 
such preceding year, as follows: 
Coordination. 
42 USC 11313 
note. 
42 USC 3533 
note. 
Termination. 
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130 STAT. 810 
PUBLIC LAW 114–201—JULY 29, 2016 
(A) The number of veterans provided assistance under 
the housing choice voucher program for Veterans Affairs 
supported housing under section 8(o)(19) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), the 
socioeconomic characteristics of such homeless veterans, 
and the number, types, and locations of entities contracted 
under such section to administer the vouchers. 
(B) A summary description of the special considerations 
made for veterans under public housing agency plans sub-
mitted pursuant to section 5A of the United States Housing 
Act of 1937 (42 U.S.C. 1437c–1) and under comprehensive 
housing affordability strategies submitted pursuant to sec-
tion 105 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12705). 
(C) A description of the activities of the Special Assist-
ant for Veterans Affairs of the Department of Housing 
and Urban Development. 
(D) A description of the efforts of the Department 
of Housing and Urban Development and the other members 
of the United States Interagency Council on Homelessness 
to coordinate the delivery of housing and services to vet-
erans. 
(E) The cost to the Department of Housing and Urban 
Development of administering the programs and activities 
relating to veterans. 
(F) Any other information that the Secretary of 
Housing and Urban Development and the Secretary of 
Veterans Affairs consider relevant in assessing the pro-
grams and activities of the Department of Housing and 
Urban Development relating to veterans. 
(b) COMMITTEES.—The Committees of the Congress specified 
in this subsection are as follows: 
(1) The Committee on Banking, Housing, and Urban Affairs 
of the Senate. 
(2) The Committee on Veterans’ Affairs of the Senate. 
(3) The Committee on Appropriations of the Senate. 
(4) The Committee on Financial Services of the House 
of Representatives. 
(5) The Committee on Veterans’ Affairs of the House of 
Representatives. 
(6) The Committee on Appropriations of the House of Rep-
resentatives. 
SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM 
OF CARE PROGRAM REGULATIONS. 
Not later than the expiration of the 30-day period beginning 
on the date of the enactment of this Act, the Secretary of Housing 
and Urban Development shall re-open the period for public comment 
regarding the Secretary’s interim rule entitled ‘‘Homeless Emer-
gency Assistance and Rapid Transition to Housing: Continuum 
of Care Program’’, published in the Federal Register on July 31, 
2012 (77 Fed. Reg. 45422; Docket No. FR–5476–I–01). Upon re- 
opening, such comment period shall remain open for a period of 
not fewer than 60 days. 
Deadline. 
Time period. 
Effective date. 
Summary. 
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130 STAT. 811 
PUBLIC LAW 114–201—JULY 29, 2016 
TITLE V—MISCELLANEOUS 
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM 
IN CERTAIN FRAUD AND ABUSE PREVENTION MEASURES. 
The Disaster Housing Assistance Program administered by the 
Department of Housing and Urban Development shall be considered 
a ‘‘program of the Department of Housing and Urban Development’’ 
under section 904 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 3544) for the purpose of income 
verifications. 
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP 
HOMEOWNERSHIP OPPORTUNITY PROGRAM. 
Section 11 of the Housing Opportunity Program Extension Act 
of 1996 (42 U.S.C. 12805 note) is amended by inserting after sub-
section (f) the following new subsection: 
‘‘(g) ENERGY EFFICIENCY REQUIREMENTS.—The Secretary may 
not require any dwelling developed using amounts from a grant 
made under this section to meet any energy efficiency standards 
other than the standards applicable at such time pursuant to section 
109 of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12709) to housing specified in subsection (a) of such section.’’. 
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTER-
OPERABILITY. 
(a) DATA EXCHANGE STANDARDIZATION.—Title I of the United 
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended 
by adding at the end the following new section: 
‘‘SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPER-
ABILITY. 
‘‘(a) DESIGNATION.—The Secretary shall, in consultation with 
an interagency work group established by the Office of Management 
and Budget, and considering State government perspectives, des-
ignate data exchange standards to govern, under this Act— 
‘‘(1) necessary categories of information that State agencies 
operating related programs are required under applicable law 
to electronically exchange with another State agency; and 
‘‘(2) Federal reporting and data exchange required under 
applicable law. 
‘‘(b) REQUIREMENTS.—The data exchange standards required 
by subsection (a) shall, to the maximum extent practicable— 
‘‘(1) incorporate a widely accepted, nonproprietary, search-
able, computer-readable format, such as the eXtensible Markup 
Language; 
‘‘(2) contain interoperable standards developed and main-
tained by intergovernmental partnerships, such as the National 
Information Exchange Model; 
‘‘(3) incorporate interoperable standards developed and 
maintained by Federal entities with authority over contracting 
and financial assistance; 
‘‘(4) 
be 
consistent 
with 
and 
implement 
applicable 
accounting principles; 
‘‘(5) be implemented in a manner that is cost- effective 
and improves program efficiency and effectiveness; and 
‘‘(6) be capable of being continually upgraded as necessary. 
Consultation. 
42 USC 1437z–9. 
42 USC 3544 
note. 
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130 STAT. 812 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(c) RULES OF CONSTRUCTION.—Nothing in this section requires 
a change to existing data exchange standards for Federal reporting 
found to be effective and efficient.’’. 
(b) APPLICABILITY.— 
(1) IN GENERAL.—Not later than 2 years after the date 
of the enactment of this Act, the Secretary of Housing and 
Urban Development shall issue a proposed rule to carry out 
the amendments made by subsection (a). 
(2) REQUIREMENTS.—The rule shall— 
(A) identify federally required data exchanges; 
(B) include specification and timing of exchanges to 
be standardized; 
(C) address the factors used in determining whether 
and when to standardize data exchanges; 
(D) specify State implementation options; and 
(E) describe future milestones. 
TITLE VI—REPORTS 
SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC EMPOWER-
MENT STRATEGIES. 
The Secretary of Housing and Urban Development, in consulta-
tion with the Secretary of Labor, shall submit a report to the 
Congress annually that describes— 
(1) any interagency strategies of such Departments that 
are designed to improve family economic empowerment by 
linking housing assistance with essential supportive services, 
such as employment counseling and training, financial edu-
cation and growth, childcare, transportation, meals, youth rec-
reational activities, and other supportive services; and 
(2) any actions taken in the preceding year to carry out 
such strategies and the extent of progress achieved by such 
actions. 
TITLE VII—HOUSING OPPORTUNITIES 
FOR PERSONS WITH AIDS 
SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT 
HOMELESSNESS FOR INDIVIDUALS LIVING WITH HIV OR 
AIDS. 
(a) IN GENERAL.—Subsection (c) of section 854 of the AIDS 
Housing Opportunity Act (42 U.S.C. 12903(c)) is amended by— 
(1) redesignating paragraph (3) as paragraph (5); and 
(2) striking paragraphs (1) and (2) and inserting the fol-
lowing: 
‘‘(1) ALLOCATION OF RESOURCES.— 
‘‘(A) ALLOCATION FORMULA.—The Secretary shall allo-
cate 90 percent of the amount approved in appropriations 
Acts under section 863 among States and metropolitan 
statistical areas as follows: 
‘‘(I) 75 percent of such amounts among— 
‘‘(I) cities that are the most populous unit of 
general local government in a metropolitan statis-
tical area with a population greater than 500,000, 
as determined on the basis of the most recent 
Consultation. 
42 USC 3536a 
note. 
42 USC 1437z–9 
note. 
Deadline. 
Regulations. 
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130 STAT. 813 
PUBLIC LAW 114–201—JULY 29, 2016 
census, and with more than 2,000 individuals 
living with HIV or AIDS, using the data specified 
in subparagraph (B); and 
‘‘(II) States with more than 2,000 individuals 
living with HIV or AIDS outside of metropolitan 
statistical areas. 
‘‘(ii) 25 percent of such amounts among States 
and metropolitan statistical areas based on the method 
described in subparagraph (C). 
‘‘(B) SOURCE
OF
DATA.—For purposes of allocating 
amounts under this paragraph for any fiscal year, the 
number of individuals living with HIV or AIDS shall be 
the number of such individuals as confirmed by the Director 
of the Centers for Disease Control and Prevention, as of 
December 31 of the most recent calendar year for which 
such data is available. 
‘‘(C) ALLOCATION
UNDER
SUBPARAGRAPH (A)(ii).—For 
purposes of allocating amounts under subparagraph (A)(ii), 
the Secretary shall develop a method that accounts for— 
‘‘(I) differences in housing costs among States and 
metropolitan statistical areas based on the fair market 
rental established pursuant to section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)) 
or another methodology established by the Secretary 
through regulation; and 
‘‘(ii) differences in poverty rates among States and 
metropolitan statistical areas based on area poverty 
indexes or another methodology established by the Sec-
retary through regulation. 
‘‘(2) MAINTAINING GRANTS.— 
‘‘(A) CONTINUED
ELIGIBILITY
OF
FISCAL
YEAR
2016 
GRANTEES.—A grantee that received an allocation in fiscal 
year 2016 shall continue to be eligible for allocations under 
paragraph (1) in subsequent fiscal years, subject to— 
‘‘(I) the amounts available from appropriations 
Acts under section 863; 
‘‘(ii) approval by the Secretary of the most recent 
comprehensive housing affordability strategy for the 
grantee approved under section 105; and 
‘‘(iii) the requirements of subparagraph (C). 
‘‘(B) ADJUSTMENTS.—Allocations to grantees described 
in subparagraph (A) shall be adjusted annually based on 
the administrative provisions included in fiscal year 2016 
appropriations Acts. 
‘‘(C) REDETERMINATION OF CONTINUED ELIGIBILITY.— 
The Secretary shall redetermine the continued eligibility 
of a grantee that received an allocation in fiscal year 2016 
at least once during the 10-year period following fiscal 
year 2016. 
‘‘(D) ADJUSTMENT TO GRANTS.—For each of fiscal years 
2017, 2018, 2019, 2020, and 2021, the Secretary shall 
ensure that a grantee that received an allocation in the 
prior fiscal year does not receive an allocation that is 
5 percent less than or 10 percent greater than the amount 
allocated to such grantee in the preceding fiscal year. 
‘‘(3) ALTERNATIVE GRANTEES.— 
Contracts. 
Time period. 
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130 STAT. 814 
PUBLIC LAW 114–201—JULY 29, 2016 
‘‘(A) REQUIREMENTS.—The Secretary may award funds 
reserved for a grantee eligible under paragraph (1) to an 
alternative grantee if— 
‘‘(I) the grantee submits to the Secretary a written 
agreement between the grantee and the alternative 
grantee that describes how the alternative grantee will 
take actions consistent with the applicable comprehen-
sive housing affordability strategy approved under sec-
tion 105 of this Act; 
‘‘(ii) the Secretary approves the written agreement 
described in clause (I) and agrees to award funds to 
the alternative grantee; and 
‘‘(iii) the written agreement does not exceed a term 
of 10 years. 
‘‘(B) RENEWAL.—An agreement approved pursuant to 
subparagraph (A) may be renewed by the parties with 
the approval of the Secretary. 
‘‘(C) DEFINITION.—In this paragraph, the term ‘alter-
native grantee’ means a public housing agency (as defined 
in section 3(b) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b))), a unified funding agency (as defined 
in section 401 of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11360)), a State, a unit of general local 
government, or an instrumentality of State or local govern-
ment. 
‘‘(4) REALLOCATIONS.—If a State or metropolitan statistical 
area declines an allocation under paragraph (1)(A), or the Sec-
retary determines, in accordance with criteria specified in regu-
lation, that a State or metropolitan statistical area that is 
eligible for an allocation under paragraph (1)(A) is unable to 
properly administer such allocation, the Secretary shall reallo-
cate any funds reserved for such State or metropolitan statis-
tical area as follows: 
‘‘(A) For funds reserved for a State— 
‘‘(I) to eligible metropolitan statistical areas within 
the State on a pro rata basis; or 
‘‘(ii) if there is no eligible metropolitan statistical 
areas within a State, to metropolitan cities and urban 
counties within the State that are eligible for grant 
under section 106 of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5306), on a pro 
rata basis. 
‘‘(B) For funds reserved for a metropolitan statistical 
area, to the State in which the metropolitan statistical 
area is located. 
‘‘(C) If the Secretary is unable to make a reallocation 
under subparagraph (A) or (B), the Secretary shall make 
such funds available on a pro rata basis under the formula 
in paragraph (1)(A).’’. 
(b) AMENDMENT
TO DEFINITIONS.—Section 853 of the AIDS 
Housing Opportunity Act (42 U.S.C. 12902) is amended— 
(1) in paragraph (1), by inserting ‘‘or ‘AIDS’ ’’ before 
‘‘means’’; and 
(2) by inserting at the end the following new paragraphs: 
‘‘(15) The term ‘HIV’ means infection with the human 
immunodeficiency virus. 
Determination. 
Contracts. 
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130 STAT. 815 
PUBLIC LAW 114–201—JULY 29, 2016 
LEGISLATIVE HISTORY—H.R. 3700: 
HOUSE REPORTS: No. 114–397 (Comm. on Financial Services). 
CONGRESSIONAL RECORD, Vol. 162 (2016): 
Feb. 2, considered and passed House. 
July 14, considered and passed Senate. 
‘‘(16) The term ‘individuals living with HIV or AIDS’ means, 
with respect to the counting of cases in a geographic area 
during a period of time, the sum of— 
‘‘(A) the number of living non-AIDS cases of HIV in 
the area; and 
‘‘(B) the number of living cases of AIDS in the area.’’. 
Approved July 29, 2016. 
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