[Congressional Record Volume 143, Number 131 (Friday, September 26, 1997)]
[Senate]
[Pages S10069-S10092]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
THE PUBLIC HOUSING REFORM AND RESPONSIBILITY ACT OF 1997
______
MACK AMENDMENT NO. 1257
Mr. McCONNELL (for Mr. Mack) proposed an amendment to the bill (S.
462). A bill to reform and consolidate the public and assisted housing
programs of the United States, and to redirect primary responsibility
for these programs from the Federal Government to States and
localities, and for other purposes; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Public
Housing Reform and Responsibility Act of 1997''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
[[Page S10070]]
Sec. 4. Effective date.
Sec. 5. Proposed regulations; technical recommendations.
Sec. 6. Elimination of obsolete documents.
Sec. 7. Annual reports.
TITLE I--PUBLIC HOUSING
Sec. 101. Declaration of policy.
Sec. 102. Membership on board of directors.
Sec. 103. Rental payments.
Sec. 104. Definitions.
Sec. 105. Contributions for lower income housing projects.
Sec. 106. Public housing agency plan.
Sec. 107. Contract provisions and requirements.
Sec. 108. Expansion of powers for dealing with public housing agencies
in substantial default.
Sec. 109. Public housing site-based waiting lists.
Sec. 110. Public housing capital and operating funds.
Sec. 111. Community service and self-sufficiency.
Sec. 112. Repeal of energy conservation; consortia and joint ventures.
Sec. 113. Repeal of modernization fund.
Sec. 114. Eligibility for public and assisted housing.
Sec. 115. Demolition and disposition of public housing.
Sec. 116. Repeal of family investment centers; voucher system for
public housing.
Sec. 117. Repeal of family self-sufficiency; homeownership
opportunities.
Sec. 118. Revitalizing severely distressed public housing.
Sec. 119. Mixed-finance and mixed-ownership projects.
Sec. 120. Conversion of distressed public housing to tenant-based
assistance.
Sec. 121. Public housing mortgages and security interests.
Sec. 122. Linking services to public housing residents.
Sec. 123. Prohibition on use of amounts.
Sec. 124. Pet ownership.
Sec. 125. City of Indianapolis flexible grant demonstration.
TITLE II--SECTION 8 RENTAL ASSISTANCE
Sec. 201. Merger of the certificate and voucher programs.
Sec. 202. Repeal of Federal preferences.
Sec. 203. Portability.
Sec. 204. Leasing to voucher holders.
Sec. 205. Homeownership option.
Sec. 206. Law enforcement and security personnel in public housing.
Sec. 207. Technical and conforming amendments.
Sec. 208. Implementation.
Sec. 209. Definition.
Sec. 210. Effective date.
Sec. 211. Recapture and reuse of annual contribution contract project
reserves under the tenant-based assistance program.
TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING
Sec. 301. Screening of applicants.
Sec. 302. Termination of tenancy and assistance.
Sec. 303. Lease requirements.
Sec. 304. Availability of criminal records for public housing resident
screening and eviction.
Sec. 305. Definitions.
Sec. 306. Conforming amendments.
TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Public housing flexibility in the CHAS.
Sec. 402. Determination of income limits.
Sec. 403. Demolition of public housing.
Sec. 404. National Commission on Housing Assistance Program Costs.
Sec. 405. Technical correction of public housing agency opt-out
authority.
Sec. 406. Review of drug elimination program contracts.
Sec. 407. Treatment of public housing agency repayment agreement.
Sec. 408. Ceiling rents for certain section 8 properties.
Sec. 409. Sense of Congress.
Sec. 410. Other repeals.
Sec. 411. Guarantee of loans for acquisition of property.
Sec. 412. Prohibition on use of assistance for employment relocation
activities.
Sec. 413. Use of HOME funds for public housing modernization.
Sec. 414. Report on single family and multifamily homes.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) there exists throughout the Nation a need for decent,
safe, and affordable housing;
(2) the inventory of public housing units owned and
operated by public housing agencies, an asset in which the
Federal Government has invested approximately
$90,000,000,000, has traditionally provided rental housing
that is affordable to low-income persons;
(3) despite serving this critical function, the public
housing system is plagued by a series of problems, including
the concentration of very poor people in very poor
neighborhoods and disincentives for economic self-
sufficiency;
(4) the Federal method of overseeing every aspect of public
housing by detailed and complex statutes and regulations
aggravates the problem and places excessive administrative
burdens on public housing agencies;
(5) the interests of low-income persons, and the public
interest, will best be served by a reformed public housing
program that--
(A) consolidates many public housing programs into programs
for the operation and capital needs of public housing;
(B) streamlines program requirements;
(C) vests in public housing agencies that perform well the
maximum feasible authority, discretion, and control with
appropriate accountability to both public housing residents
and localities; and
(D) rewards employment and economic self-sufficiency of
public housing residents; and
(6) voucher and certificate programs under section 8 of the
United States Housing Act of 1937 are successful for
approximately 80 percent of applicants, and a consolidation
of the voucher and certificate programs into a single,
market-driven program will assist in making section 8 tenant-
based assistance more successful in assisting low-income
families in obtaining affordable housing and will increase
housing choice for low-income families.
(b) Purposes.--The purposes of this Act are--
(1) to consolidate the various programs and activities
under the public housing programs administered by the
Secretary in a manner designed to reduce Federal
overregulation;
(2) to redirect the responsibility for a consolidated
program to States, localities, public housing agencies, and
public housing residents;
(3) to require Federal action to overcome problems of
public housing agencies with severe management deficiencies;
and
(4) to consolidate and streamline tenant-based assistance
programs.
SEC. 3. DEFINITIONS.
In this Act:
(1) Public housing agency.--The term ``public housing
agency'' has the same meaning as in section 3 of the United
States Housing Act of 1937.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 4. EFFECTIVE DATE.
(a) In General.--Except with respect to any provision or
amendment identified by the Secretary under subsection (b)
and as otherwise specifically provided in this Act or the
amendments made by this Act, this Act and the amendments made
by this Act shall take effect on the date of enactment of
this Act.
(b) Exception.--
(1) Determination.--Not later than 2 months after the date
of enactment of this Act, the Secretary shall identify any
provision of this Act, or any amendment made by this Act, the
implementation of which, in the determination of the
Secretary--
(A) requires a substantial exercise of discretion, such
that there exists a significant risk of litigation;
(B) requires a need for uniform interpretation; or
(C) is otherwise problematic, such that immediate
implementation is inappropriate.
(2) Notice.--
(A) In general.--Notwithstanding any other provision of
law, not later than 6 months after the date on which the
Secretary makes any identification under paragraph (1), the
Secretary shall implement each provision or amendment so
identified by notice published in the Federal Register, which
notice shall--
(i) include such requirements as may be necessary to
implement the provision or amendment; and
(ii) invite public comments on those requirements.
(B) Effective date of notice.--The notice published under
paragraph (2) may, in the discretion of the Secretary, take
effect upon publication.
(3) Final regulations.--Not later than 12 months after the
date of enactment of this Act, the Secretary shall issue such
final regulations as may be necessary, taking into account
any comments received under paragraph (2)(A)(ii), to
implement each provision or amendment identified under
paragraph (1).
SEC. 5. PROPOSED REGULATIONS; TECHNICAL RECOMMENDATIONS.
(a) Proposed Regulations.--Not later than 9 months after
the date of enactment of this Act, the Secretary shall submit
to Congress proposed regulations that the Secretary
determines are necessary to carry out the United States
Housing Act of 1937, as amended by this Act.
(b) Technical Recommendations.--Not later than 9 months
after the date of enactment of this Act, the Secretary shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Banking and
Financial Services of the House of Representatives,
recommended technical and conforming legislative changes
necessary to carry out this Act and the amendments made by
this Act.
SEC. 6. ELIMINATION OF OBSOLETE DOCUMENTS.
Effective 1 year after the date of enactment of this Act,
no rule, regulation, or order (including all handbooks,
notices, and related requirements) pertaining to public
housing or section 8 tenant-based programs issued or
promulgated under the United States Housing Act of 1937
before the date of enactment of this Act may be enforced by
the Secretary.
SEC. 7. ANNUAL REPORTS.
Not later than 1 year after the date of enactment of this
Act, and annually thereafter,
[[Page S10071]]
the Secretary shall submit a report to Congress on--
(1) the impact of the amendments made by this Act on--
(A) the demographics of public housing residents and
families receiving tenant-based assistance under the United
States Housing Act of 1937; and
(B) the economic viability of public housing agencies; and
(2) the effectiveness of the rent policies established by
this Act and the amendments made by this Act on the
employment status and earned income of public housing
residents.
TITLE I--PUBLIC HOUSING
SEC. 101. DECLARATION OF POLICY.
Section 2 of the United States Housing Act of 1937 (42
U.S.C. 1437) is amended to read as follows:
``SEC. 2. DECLARATION OF POLICY.
``It is the policy of the United States to promote the
general welfare of the Nation by employing the funds and
credit of the Nation, as provided in this title--
``(1) to assist States and political subdivisions of States
to remedy the unsafe housing conditions and the acute
shortage of decent and safe dwellings for low-income
families;
``(2) to assist States and political subdivisions of States
to address the shortage of housing affordable to low-income
families; and
``(3) consistent with the objectives of this title, to vest
in public housing agencies that perform well, the maximum
amount of responsibility and flexibility in program
administration, with appropriate accountability to both
public housing residents and localities.''.
SEC. 102. MEMBERSHIP ON BOARD OF DIRECTORS.
Title I of the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.) is amended--
(1) by redesignating the second section designated as
section 27 (as added by section 903(b) of Public Law 104-193
(110 Stat. 2348)) as section 28; and
(2) by adding at the end the following:
``SEC. 29. MEMBERSHIP ON BOARD OF DIRECTORS.
``(a) Required Membership.--Except as provided in
subsection (b), the membership of the board of directors of
each public housing agency shall contain not less than 1
member--
``(1) who is a resident who directly receives assistance
from the public housing agency; and
``(2) who may, if provided for in the public housing agency
plan (as developed with appropriate notice and opportunity
for comment by the resident advisory board) be elected by the
residents directly receiving assistance from the public
housing agency.
``(b) Exception.--Subsection (a) shall not apply to any
public housing agency--
``(1) that is located in a State that requires the members
of the board of directors of a public housing agency to be
salaried and to serve on a full-time basis; or
``(2) with less than 300 units, if--
``(A) the public housing agency has provided reasonable
notice to the resident advisory board of the opportunity of
not less than 1 resident described in subsection (a) to serve
on the board of directors of the public housing agency
pursuant to that subsection; and
``(B) within a reasonable time after receipt by the
resident advisory board of notice under subparagraph (A), the
public housing agency has not been notified of the intention
of any resident to participate on the board of directors.
``(c) Nondiscrimination.--No person shall be prohibited
from serving on the board of directors or similar governing
body of a public housing agency because of the residence of
that person in a public housing project.''.
SEC. 103. RENTAL PAYMENTS.
(a) In General.--Section 3(a)(1)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(a)(1)(A)) is amended by
inserting before the semicolon the following: `` or, if the
family resides in public housing, an amount established by
the public housing agency, which shall not exceed 30 percent
of the monthly adjusted income of the family''.
(b) Authority of Public Housing Agencies.--Section 3(a)(2)
of the United States Housing Act of 1937 (42 U.S.C.
1437a(a)(2)) is amended to read as follows:
``(2) Authority of public housing agencies.--
``(A) In general.--Notwithstanding paragraph (1), a public
housing agency may adopt ceiling rents that reflect the
reasonable market value of the housing, but that are not less
than--
``(i) 75 percent of the monthly cost to operate the housing
of the public housing agency; and
``(ii) the monthly cost to make a deposit to a replacement
reserve (in the sole discretion of the public housing
agency).
``(B) Minimum rent.--Notwithstanding paragraph (1), a
public housing agency may provide that each family residing
in a public housing project or receiving tenant-based or
project-based assistance under section 8 shall pay a minimum
monthly rent in an amount not to exceed $25 per month.
``(C) Police officers.--
``(i) In general.--Notwithstanding any other provision of
law and subject to clause (ii), a public housing agency may,
in accordance with the public housing agency plan, allow a
police officer who is not otherwise eligible for residence in
public housing to reside in a public housing unit. The number
and location of units occupied by police officers under this
clause, and the terms and conditions of their tenancies,
shall be determined by the public housing agency.
``(ii) Increased security.--A public housing agency may
take the actions authorized in clause (i) only for the
purpose of increasing security for the residents of a public
housing project.
``(iii) Definition.--In this subparagraph, the term `police
officer' means any person determined by a public housing
agency to be, during the period of residence of that person
in public housing, employed on a full-time basis as a duly
licensed professional police officer by a Federal, State, or
local government or by any agency thereof (including a public
housing agency having an accredited police force).
``(D) Exception to income limitations for certain public
housing agencies.--
``(i) Definition of over-income family.--In this
subparagraph, the term `over-income family' means an
individual or family that is not a low-income family or a
very low-income family.
``(ii) Authorization.--Notwithstanding any other provision
of law, a public housing agency that manages less than 250
units may, on a month-to-month basis, lease a unit in a
public housing project to an over-income family in accordance
with this subparagraph, if there are no eligible families
applying for residence in that public housing project for
that month.
``(iii) Terms and conditions.--The number and location of
units occupied by over-income families under this
subparagraph, and the terms and conditions of those
tenancies, shall be determined by the public housing agency,
except that--
``(I) rent for a unit shall be in an amount that is equal
to not less than the costs to operate the unit;
``(II) if an eligible family applies for residence after an
over-income family moves in to the last available unit, the
over-income family shall vacate the unit not later than the
date on which the month term expires; and
``(III) if a unit is vacant and there is no one on the
waiting list, the public housing agency may allow an over-
income family to gain immediate occupancy in the unit, while
simultaneously providing reasonable public notice of the
availability of the unit.
``(E) Encouragement of self-sufficiency.--Each public
housing agency shall develop a rental policy that encourages
and rewards employment and economic self-sufficiency.''.
(c) Regulations.--
(1) In general.--The Secretary shall, by regulation, after
notice and an opportunity for public comment, establish such
requirements as may be necessary to carry out section
3(a)(2)(A) of the United States Housing Act of 1937, as
amended by this section.
(2) Transition rule.--
(A) In general.--Subject to subparagraph (B), prior to the
issuance of final regulations under paragraph (1), a public
housing agency may implement ceiling rents, which shall be--
(i) determined in accordance with section 3(a)(2)(A) of the
United States Housing Act of 1937 (amended by subsection (b)
of this section);
(ii) equal to the 95th percentile of the rent paid for a
unit of comparable size by residents in the same public
housing project or a group of comparable projects totaling 50
units or more; or
(iii) equal to the fair market rent for the area in which
the unit is located.
(B) Minimum amount.--The amount of any ceiling rent
implemented by a public housing agency under this paragraph
may not be less than 75 percent of the monthly cost to
operate the housing.
SEC. 104. DEFINITIONS.
(a) Definitions.--
(1) Single persons.--Section 3(b)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended--
(A) in subparagraph (A), by striking the third sentence;
and
(B) in subparagraph (B), in the second sentence, by
striking ``regulations of the Secretary'' and inserting
``public housing agency plan''.
(2) Adjusted income.--Section 3(b)(5) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended to
read as follows:
``(5) Adjusted income.--The term `adjusted income' means
the income that remains after excluding--
``(A) $480 for each member of the family residing in the
household (other than the head of the household or the spouse
of the head of the household)--
``(i) who is under 18 years of age; or
``(ii) who is--
``(I) 18 years of age or older; and
``(II) a person with disabilities or a full-time student;
``(B) $400 for an elderly or disabled family;
``(C) the amount by which the aggregate of--
``(i) medical expenses for an elderly or disabled family;
and
``(ii) reasonable attendant care and auxiliary apparatus
expenses for each family member who is a person with
disabilities, to the extent necessary to enable any member of
the family (including a member who is a person with
disabilities) to be employed;
exceeds 3 percent of the annual income of the family;
[[Page S10072]]
``(D) child care expenses, to the extent necessary to
enable another member of the family to be employed or to
further his or her education; and
``(E) any other adjustments to earned income that the
public housing agency determines to be appropriate, as
provided in the public housing agency plan.''.
(b) Disallowance of Earned Income From Public Housing Rent
Determinations.--
(1) In general.--Section 3 of the United States Housing Act
of 1937 (42 U.S.C. 1437a) is amended--
(A) by striking the undesignated paragraph at the end of
subsection (c)(3) (as added by section 515(b) of the
Cranston-Gonzalez National Affordable Housing Act); and
(B) by adding at the end the following:
``(d) Disallowance of Earned Income From Public Housing
Rent Determinations.--
``(1) In general.--Notwithstanding any other provision of
law, the rent payable under subsection (a) by a family--
``(A) that--
``(i) occupies a unit in a public housing project; or
``(ii) receives assistance under section 8; and
``(B) whose income increases as a result of employment of a
member of the family who was previously unemployed for 1 or
more years (including a family whose income increases as a
result of the participation of a family member in any family
self-sufficiency or other job training program);
may not be increased as a result of the increased income due
to such employment during the 18-month period beginning on
the date on which the employment is commenced.
``(2) Phase-in of rate increases.--After the expiration of
the 18-month period referred to in paragraph (1), rent
increases due to the continued employment of the family
member described in paragraph (1)(B) shall be phased in over
a subsequent 3-year period.
``(3) Overall limitation.--Rent payable under subsection
(a) shall not exceed the amount determined under subsection
(a).
``(e) Individual Savings Accounts.--
``(1) In general.--In lieu of a disallowance of earned
income under subsection (d), upon the request of a family
that qualifies under subsection (d), a public housing agency
may establish an individual savings account in accordance
with this subsection for that family.
``(2) Deposits to account.--The public housing agency shall
deposit in any savings account established under this
subsection an amount equal to the total amount that otherwise
would be applied to the family's rent payment under
subsection (a) as a result of employment.
``(3) Withdrawal from account.--Amounts deposited in a
savings account established under this subsection may only be
withdrawn by the family for the purpose of--
``(A) purchasing a home;
``(B) paying education costs of family members;
``(C) moving out of public or assisted housing; or
``(D) paying any other expense authorized by the public
housing agency for the purpose of promoting the economic
self-sufficiency of residents of public and assisted
housing.''.
(2) Applicability of amendment.--
(A) Public housing.--Notwithstanding the amendment made by
paragraph (1), any resident of public housing participating
in the program under the authority contained in the
undesignated paragraph at the end of section 3(c)(3) of the
United States Housing Act of 1937, as that section existed on
the day before the date of enactment of this Act, shall be
governed by that authority after that date.
(B) Section 8.--The amendment made by paragraph (1) shall
apply to tenant-based assistance provided under section 8 of
the United States Housing Act of 1937, with funds
appropriated on or after October 1, 1997.
(c) Definitions of Terms Used in Reference to Public
Housing.--
(1) In general.--Section 3(c) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(c)) is amended--
(A) in paragraph (1), by inserting ``and of the fees and
related costs normally involved in obtaining non-Federal
financing and tax credits with or without private and
nonprofit partners'' after ``carrying charges''; and
(B) in paragraph (2), in the first sentence, by striking
``security personnel),'' and all that follows through the
period and inserting the following: ``security personnel),
service coordinators, drug elimination activities, or
financing in connection with a public housing project,
including projects developed with non-Federal financing and
tax credits, with or without private and nonprofit
partners.''.
(2) Technical correction.--Section 622(c) of the Housing
and Community Development Act of 1992 (Public Law 102-550;
106 Stat. 3817) is amended by striking `` `project.' '' and
inserting ``paragraph (3)''.
(3) New definitions.--Section 3(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(c)) is amended by adding
at the end the following:
``(6) Public housing agency plan.--The term `public housing
agency plan' means the plan of the public housing agency
prepared in accordance with section 5A.
``(7) Disabled housing.--The term `disabled housing' means
any public housing project, building, or portion of a project
or building, that is designated by a public housing agency
for occupancy exclusively by disabled persons or families.
``(8) Elderly housing.--The term `elderly housing' means
any public housing project, building, or portion of a project
or building, that is designated by a public housing agency
exclusively for occupancy exclusively by elderly persons or
families, including elderly disabled persons or families.
``(9) Mixed-finance project.--The term `mixed-finance
project' means a public housing project that meets the
requirements of section 30.
``(10) Capital fund.--The term `Capital Fund' means the
fund established under section 9(c).
``(11) Operating fund.--The term `Operating Fund' means the
fund established under section 9(d).''.
SEC. 105. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.
(a) In General.--Section 5 of the United States Housing Act
of 1937 (42 U.S.C. 1437c) is amended by striking subsections
(h) through (l).
(b) Conforming Amendments.--The United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.) is amended--
(1) in section 21(d), by striking ``section 5(h) or'';
(2) in section 25(l)(1), by striking ``and for sale under
section 5(h)''; and
(3) in section 307, by striking ``section 5(h) and''.
SEC. 106. PUBLIC HOUSING AGENCY PLAN.
(a) In General.--Title I of the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.) is amended by inserting
after section 5 the following:
``SEC. 5A. PUBLIC HOUSING AGENCY PLANS.
``(a) 5-Year Plan.--
``(1) In general.--Subject to paragraph (2), not less than
once every 5 fiscal years, each public housing agency shall
submit to the Secretary a plan that includes, with respect to
the 5 fiscal years immediately following the date on which
the plan is submitted--
``(A) a statement of the mission of the public housing
agency for serving the needs of low-income and very low-
income families in the jurisdiction of the public housing
agency during those fiscal years; and
``(B) a statement of the goals and objectives of the public
housing agency that will enable the public housing agency to
serve the needs identified pursuant to subparagraph (A)
during those fiscal years.
``(2) Initial plan.--The initial 5-year plan submitted by a
public housing agency under this subsection shall be
submitted for the 5-year period beginning with the first
fiscal year following the date of enactment of the Public
Housing Reform and Responsibility Act of 1997 for which the
public housing agency receives assistance under this Act.
``(b) Annual Plan.--
``(1) In general.--Each public housing agency shall submit
to the Secretary a public housing agency plan under this
subsection for each fiscal year for which the public housing
agency receives assistance under sections 8(o) and 9.
``(2) Updates.--For each fiscal year after the initial
submission of a plan under this section by a public housing
agency, the public housing agency may comply with
requirements for submission of a plan under this subsection
by submitting an update of the plan for the fiscal year.
``(c) Procedures.--
``(1) In general.--The Secretary shall establish
requirements and procedures for submission and review of
plans, including requirements for timing and form of
submission, and for the contents of those plans.
``(2) Contents.--The procedures established under paragraph
(1) shall provide that a public housing agency shall--
``(A) consult with the resident advisory board established
under subsection (e) in developing the plan; and
``(B) ensure that the plan under this section is consistent
with the applicable comprehensive housing affordability
strategy (or any consolidated plan incorporating that
strategy) for the jurisdiction in which the public housing
agency is located, in accordance with title I of the
Cranston-Gonzalez National Affordable Housing Act and
contains a certification by the appropriate State or local
official that the plan meets the requirements of this
paragraph and a description of the manner in which the
applicable contents of the public housing agency plan are
consistent with the comprehensive housing affordability
strategy.
``(d) Contents.--An annual public housing agency plan under
this section for a public housing agency shall contain the
following information relating to the upcoming fiscal year
for which the assistance under this Act is to be made
available:
``(1) Needs.--A statement of the housing needs of low-
income and very low-income families residing in the
jurisdiction served by the public housing agency, and of
other low-income and very low-income families on the waiting
list of the agency (including housing needs of elderly
families and disabled families), and the means by which the
public housing agency intends, to the maximum extent
practicable, to address those needs.
``(2) Financial resources.--A statement of financial
resources available to the agency and the planned uses of
those resources.
``(3) Eligibility, selection, and admissions policies.--A
statement of the policies governing eligibility, selection,
admissions (including any preferences), assignment, and
occupancy of families with respect to public
[[Page S10073]]
housing dwelling units and housing assistance under section
8(o).
``(4) Rent determination.--A statement of the policies of
the public housing agency governing rents charged for public
housing dwelling units and rental contributions of assisted
families under section 8(o).
``(5) Operation and management.--A statement of the rules,
standards, and policies of the public housing agency
governing maintenance and management of housing owned and
operated by the public housing agency (which shall include
measures necessary for the prevention or eradication of
infestation by cockroaches), and management of the public
housing agency and programs of the public housing agency.
``(6) Grievance procedure.--A statement of the grievance
procedures of the public housing agency.
``(7) Capital improvements.--With respect to public housing
developments owned or operated by the public housing agency,
a plan describing the capital improvements necessary to
ensure long-term physical and social viability of the
developments.
``(8) Demolition and disposition.--With respect to public
housing developments owned or operated by the public housing
agency--
``(A) a description of any housing to be demolished or
disposed of; and
``(B) a timetable for that demolition or disposition.
``(9) Designation of housing for elderly and disabled
families.--With respect to public housing developments owned
or operated by the public housing agency, a description of
any developments (or portions thereof) that the public
housing agency has designated or will designate for occupancy
by elderly and disabled families in accordance with section
7.
``(10) Conversion of public housing.--With respect to
public housing owned or operated by a public housing agency--
``(A) a description of any building or buildings that the
public housing agency is required to convert to tenant-based
assistance under section 31 or that the public housing agency
voluntarily converts under section 22;
``(B) an analysis of those buildings required under that
section for conversion; and
``(C) a statement of the amount of grant amounts to be used
for rental assistance or other housing assistance.
``(11) Homeownership activities.--A description of any
homeownership programs of the public housing agency and the
requirements for participation in and the assistance
available under those programs.
``(12) Economic self-sufficiency and coordination with
welfare and other appropriate agencies.--A description of--
``(A) any programs relating to services and amenities
provided or offered to assisted families;
``(B) any policies or programs of the public housing agency
for the enhancement of the economic and social self-
sufficiency of assisted families; and
``(C) how the public housing agency will comply with the
requirements of subsections (c) and (d) of section 12.
``(13) Safety and crime prevention.--A description of
policies established by the public housing agency that
increase or maintain the safety of public housing residents.
``(14) Certification.--An annual certification by the
public housing agency that the public housing agency will
carry out the public housing agency plan in conformity with
title VI of the Civil Rights Act of 1964, the Fair Housing
Act, section 504 of the Rehabilitation Act of 1973, and title
II of the Americans with Disabilities Act of 1990, and will
affirmatively further the goal of fair housing.
``(15) Annual audit.--The results of the most recent fiscal
year audit of the public housing agency.
``(e) Resident Advisory Board.--
``(1) In general.--Except as provided in paragraph (3),
each public housing agency shall establish 1 or more resident
advisory boards in accordance with this subsection, the
membership of which shall adequately reflect and represent
the residents of the dwelling units owned, operated, or
assisted by the public housing agency.
``(2) Purpose.--Each resident advisory board established
under this subsection shall assist and make recommendations
regarding the development of the public housing agency plan.
The public housing agency shall consider the recommendations
of the resident advisory boards in preparing the final public
housing agency plan, and shall include a copy of those
recommendations and a description of the manner in which
those recommendations were addressed in the public housing
agency plan submitted to the Secretary under this section.
``(3) Waiver.--The Secretary may waive the requirements of
this subsection with respect to the establishment of resident
advisory boards, if the public housing agency demonstrates to
the satisfaction of the Secretary that there exists a
resident council or other resident organization of the public
housing agency that--
``(A) adequately represents the interests of the residents
of the public housing agency; and
``(B) has the ability to perform the functions described in
paragraph (2).
``(f) Publication of Notice.--
``(1) In general.--Not later than 45 days before the date
of a hearing conducted under paragraph (2) by the governing
body of a public housing agency, the public housing agency
shall publish a notice informing the public that--
``(A) the proposed public housing agency plan and all
relevant information is available for inspection at the
principal office of the public housing agency during normal
business hours; and
``(B) a public hearing will be conducted to discuss the
public housing agency plan and to invite public comment
regarding that plan.
``(2) Public hearing.--Each public housing agency shall, at
a location that is convenient to residents, conduct a public
hearing, as provided in the notice published under paragraph
(1).
``(3) Adoption of plan.--After conducting the public
hearing under paragraph (2), and after considering all public
comments received and, in consultation with the resident
advisory board, making any appropriate changes in the public
housing agency plan, the public housing agency shall--
``(A) adopt the public housing agency plan; and
``(B) submit the plan to the Secretary in accordance with
this section.
``(g) Amendments and Modifications to Plans.--
``(1) In general.--Except as provided in paragraph (2),
nothing in this section shall preclude a public housing
agency, after submitting a plan to the Secretary in
accordance with this section, from amending or modifying any
policy, rule, regulation, or plan of the public housing
agency, except that no such significant amendment or
modification may be adopted or implemented--
``(A) other than at a duly called meeting of commissioners
(or other comparable governing body) of the public housing
agency that is open to the public; and
``(B) until notification of the amendment or modification
is provided to the Secretary and approved in accordance with
subsection (h)(2).
``(2) Consistency.--Each significant amendment or
modification to a public housing agency plan submitted to the
Secretary under this section shall--
``(A) meet the consistency requirement of subsection
(c)(2);
``(B) be subject to the notice and public hearing
requirements of subsection (f); and
``(C) be subject to approval by the Secretary in accordance
with subsection (h)(2).
``(h) Timing of Plans.--
``(1) In general.--
``(A) Initial submission.--Each public housing agency shall
submit the initial plan required by this section, and any
amendment or modification to the initial plan, to the
Secretary at such time and in such form as the Secretary
shall require.
``(B) Annual submission.--Not later than 60 days prior to
the start of the fiscal year of the public housing agency,
after initial submission of the plan required by this section
in accordance with subparagraph (A), each public housing
agency shall annually submit to the Secretary a plan update,
including any amendments or modifications to the public
housing agency plan.
``(2) Review and approval.--
``(A) Review.--Subject to subparagraph (B), after
submission of the public housing agency plan or any amendment
or modification to the plan to the Secretary, to the extent
that the Secretary considers such action to be necessary to
make determinations under this subparagraph, the Secretary
shall review the public housing agency plan (including any
amendments or modifications thereto) to determine whether the
contents of the plan--
``(i) set forth the information required by this section to
be contained in a public housing agency plan;
``(ii) are consistent with information and data available
to the Secretary, including the approved comprehensive
housing affordability strategy under title I of the Cranston-
Gonzalez National Affordable Housing Act of the jurisdiction
in which the public housing agency is located; and
``(iii) are prohibited by or inconsistent with any
provision of this title or other applicable law.
``(B) Exception.--
``(i) In general.--Except as provided in clause (ii), the
Secretary may, by regulation, provide that 1 or more elements
of a public housing agency plan shall be reviewed only if the
element is challenged.
``(ii) Inapplicability to certain provisions.--
Notwithstanding clause (i), the Secretary shall review the
information submitted under paragraphs (7) and (14) of
subsection (d).
``(C) Approval.--
``(i) In general.--Except as provided in paragraph (3)(B),
not later than 60 days after the date on which a public
housing agency plan is submitted in accordance with this
section (or, with respect to the initial provision of notice
under this subparagraph, not later than 75 days after the
date on which the initial public housing agency plan is
submitted in accordance with this section), the Secretary
shall provide written notice to the public housing agency if
the plan has been disapproved, stating with specificity the
reasons for the disapproval.
``(ii) Failure to provide notice of disapproval.--If the
Secretary does not provide notice of disapproval under clause
(i) before the expiration of the period described in clause
(i), the public housing agency plan shall be deemed to be
approved by the Secretary.
[[Page S10074]]
``(D) Public availability.--The public housing agency
shall make the approved plan available to the general public.
``(3) Secretarial discretion.--
``(A) In general.--The Secretary may require such
additional information as the Secretary determines to be
appropriate for each public housing agency that is--
``(i) at risk of being designated as troubled under section
6(j); or
``(ii) designated as troubled under section 6(j).
``(B) Troubled agencies.--The Secretary shall provide
explicit written approval or disapproval, in a timely manner,
for a public housing agency plan submitted by any public
housing agency designated by the Secretary as a troubled
public housing agency under section 6(j).
``(C) Advisory board consultation enforcement.--Following a
written request by the resident advisory board that documents
a failure on the part of the public housing agency to provide
adequate notice and opportunity for comment under subsection
(f), and upon a Secretarial finding of good cause within the
time period provided for in paragraph (2)(B) of this
subsection, the Secretary may require the public housing
agency to adequately remedy that failure prior to a final
approval of the public housing agency plan under this
section.
``(4) Streamlined plan.--In carrying out this section, the
Secretary may establish a streamlined public housing agency
plan for--
``(A) public housing agencies that are determined by the
Secretary to be high performing public housing agencies;
``(B) public housing agencies with less than 250 public
housing units that have not been designated as troubled under
section 6(j); and
``(C) public housing agencies that only administer tenant-
based assistance and that do not own or operate public
housing.
``(5) Compliance with plan.--
``(A) In general.--In providing assistance under this
title, a public housing agency shall comply with the rules,
standards, and policies established in the public housing
agency plan of the public housing agency approved under this
section.
``(B) Investigation and enforcement.--In carrying out this
title, the Secretary shall--
``(i) provide an appropriate response to any complaint
concerning noncompliance by a public housing agency with the
applicable public housing agency plan; and
``(ii) if the Secretary determines, based on a finding of
the Secretary or other information available to the
Secretary, that a public housing agency is not complying with
the applicable public housing agency plan, take such actions
as the Secretary determines to be appropriate to ensure such
compliance.''.
(b) Implementation.--
(1) Interim rule.--Not later than 120 days after the date
of enactment of this Act, the Secretary shall issue an
interim rule to require the submission of an interim public
housing agency plan by each public housing agency, as
required by section 5A of the United States Housing Act of
1937 (as added by subsection (a) of this section).
(2) Final regulations.--Not later than 1 year after the
date of enactment of this Act, in accordance with the
negotiated rulemaking procedures set forth in subchapter III
of chapter 5 of title 5, United States Code, the Secretary
shall promulgate final regulations implementing section 5A of
the United States Housing Act of 1937 (as added by subsection
(a) of this section).
(c) Audit and Review; Report.--
(1) Audit and review.--Not later than 1 year after the
effective date of final regulations promulgated under
subsection (b)(2), in order to determine the degree of
compliance with public housing agency plans approved under
section 5A of the United States Housing Act of 1937 (as added
by subsection (a) of this section) by public housing
agencies, the Comptroller General of the United States shall
conduct--
(A) a review of a representative sample of the public
housing agency plans approved under such section 5A before
that date; and
(B) an audit and review of the public housing agencies
submitting those plans.
(2) Report.--Not later than 2 years after the date on which
public housing agency plans are initially required to be
submitted under section 5A of the United States Housing Act
of 1937 (as added by subsection (a) of this section) the
Comptroller General of the United States shall submit to
Congress a report, which shall include--
(A) a description of the results of each audit and review
under paragraph (1); and
(B) any recommendations for increasing compliance by public
housing agencies with their public housing agency plans
approved under section 5A of the United States Housing Act of
1937 (as added by subsection (a) of this section).
SEC. 107. CONTRACT PROVISIONS AND REQUIREMENTS.
(a) Conditions.--Section 6(a) of the United States Housing
Act of 1937 (42 U.S.C. 1437d(a)) is amended--
(1) in the first sentence, by inserting ``, in a manner
consistent with the public housing agency plan'' before the
period; and
(2) by striking the second sentence.
(b) Repeal of Federal Preferences; Revision of Maximum
Income Limits; Certification of Compliance With Requirements;
Notification of Eligibility.--Section 6(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437d(c)) is amended to
read as follows:
``(c) Accounting System for Rental Collections and Costs.--
``(1) Establishment.--Each public housing agency that
receives grant amounts under this title shall establish and
maintain a system of accounting for rental collections and
costs (including administrative, utility, maintenance,
repair, and other operating costs) for each project.
``(2) Access to records.--Each public housing agency shall
make available to the general public the information required
pursuant to paragraph (1) regarding collections and costs.
``(3) Exemption.--The Secretary may permit authorities
owning or operating fewer than 500 dwelling units to comply
with the requirements of this subsection by accounting on an
agency-wide basis.''.
(c) Excess Funds.--Section 6(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(e)) is amended to read
as follows:
``(e) [Reserved.]''.
(d) Performance Indicators for Public Housing Agencies.--
Section 6(j) of the United States Housing Act of 1937 (42
U.S.C. 1437d(j)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B)--
(i) by striking ``obligated'' and inserting ``provided'';
and
(ii) by striking ``unexpended'' and inserting ``unobligated
by the public housing agency'';
(B) in subparagraph (D), by striking ``energy'' and
inserting ``utility'';
(C) by redesignating subparagraph (H) as subparagraph (L);
and
(D) by inserting after subparagraph (G) the following:
``(H) The extent to which the public housing agency--
``(i) coordinates, promotes, or provides effective programs
and activities to promote the economic self-sufficiency of
public housing residents; and
``(ii) provides public housing residents with opportunities
for involvement in the administration of the public housing.
``(I) The extent to which the public housing agency
implements--
``(i) effective screening and eviction policies; and
``(ii) other anticrime strategies;
including the extent to which the public housing agency
coordinates with local government officials and residents in
the development and implementation of these strategies.
``(J) The extent to which the public housing agency is
providing acceptable basic housing conditions.
``(K) The extent to which the public housing agency
successfully meets the goals and carries out the activities
and programs of the public housing agency plan under section
5(A).'';
(2) in paragraph (2)(A)(i), by inserting after the first
sentence the following: ``The Secretary may use a simplified
set of indicators for public housing agencies with less than
250 public housing units.''; and
(3) by adding at the end the following:
``(5)(A) To the extent that the Secretary determines such
action to be necessary in order to ensure the accuracy of any
certification made under this section, the Secretary shall
require an independent auditor to review documentation or
other information maintained by a public housing agency or
resident management corporation pursuant to this section to
substantiate each certification submitted by the agency or
corporation relating to the performance of that agency or
corporation.
``(B) The Secretary may withhold, from assistance otherwise
payable to the agency or corporation under section 9, amounts
sufficient to pay for the reasonable costs of any review
under this paragraph.''.
(e) Drug-Related and Criminal Activity.--Section 6(k) of
the United States Housing Act of 1937 (42 U.S.C. 1437d(k)) is
amended, in the matter following paragraph (6)--
(1) by striking ``drug-related'' and inserting ``violent or
drug-related''; and
(2) by inserting ``or any activity resulting in a felony
conviction,'' after ``on or off such premises,''.
(f) Leases.--Section 6(l) of the United States Housing Act
of 1937 (42 U.S.C. 1437d(l)) is amended--
(1) in paragraph (3), by striking ``not be less than'' and
all that follows through the end of paragraph (3) and
inserting: ``be the period of time required under State or
local law, except that the public housing agency may provide
such notice within a reasonable time which does not exceed
the lesser of--
``(A) the period provided under applicable State or local
law; or
``(B) 30 days--
``(i) if the health or safety of other tenants, public
housing agency employees, or persons residing in the
immediate vicinity of the premises is threatened; or
``(ii) in the event of any drug-related or violent criminal
activity or any felony conviction;'';
(2) in paragraph (6), by striking ``and'' at the end;
(3) by redesignating paragraph (7) as paragraph (8); and
(4) by inserting after paragraph (6) following:
``(7) provide that any occupancy in violation of section
7(e)(1) or the furnishing of any false or misleading
information pursuant to section 7(e)(2) shall be cause for
termination of tenancy; and''.
(g) Public Housing Assistance to Foster Care Children.--
Section 6(o) of the United States Housing Act of 1937 (42
U.S.C. 1437d(o))
[[Page S10075]]
is amended by striking ``Subject'' and all that follows
through ``, in'' and inserting ``In''.
(h) Preference for Areas With Inadequate Supply of Very
Low-Income Housing.--Section 6(p) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(p)) is amended to read
as follows:
``(p) [Reserved.]''.
(i) Transition Rule Relating to Preferences.--During the
period beginning on the date of enactment of this Act and
ending on the date on which the initial public housing agency
plan of a public housing agency is approved under section 5A
of the United States Housing Act of 1937 (as added by this
Act) the public housing agency may establish local
preferences for making available public housing under the
United States Housing Act of 1937 and for providing tenant-
based assistance under section 8 of that Act.
SEC. 108. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUSING
AGENCIES IN SUBSTANTIAL DEFAULT.
(a) In General.--Section 6(j)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437d) is amended--
(1) in subparagraph (A)--
(A) by striking clause (i) and inserting the following:
``(i) solicit competitive proposals from other public
housing agencies and private housing management agents that,
in the discretion of the Secretary, may be selected by
existing public housing residents through administrative
procedures established by the Secretary; if appropriate,
these proposals shall provide for such agents to manage all,
or part, of the housing administered by the public housing
agency or all or part of the other programs of the agency;'';
(B) by striking clause (iv) and inserting the following:
``(v) require the agency to make other arrangements
acceptable to the Secretary and in the best interests of the
public housing residents and families assisted under section
8 for managing all, or part, of the public housing
administered by the agency or of the programs of the
agency.''; and
(C) by inserting after clause (iii) the following:
``(iv) take possession of all or part of the public housing
agency, including all or part of any project or program of
the agency, including any project or program under any other
provision of this title; and''; and
(2) by striking subparagraphs (B) through (D) and inserting
the following:
``(B)(i) If a public housing agency is identified as
troubled under this subsection, the Secretary shall notify
the agency of the troubled status of the agency.
``(ii)(I) Upon the expiration of the 1-year period
beginning on the later of the date on which the agency
receives notice from the Secretary of the troubled status of
the agency under clause (i) and the date of enactment of the
Public Housing Reform and Responsibility Act of 1997, the
Secretary shall--
``(aa) in the case of a troubled public housing agency with
1,250 or more units, petition for the appointment of a
receiver pursuant to subparagraph (A)(ii); or
``(bb) in the case of a troubled public housing agency with
fewer than 1,250 units, either petition for the appointment
of a receiver pursuant to subparagraph (A)(ii), or take
possession of the public housing agency (including all or
part of any project or program of the agency) pursuant to
subparagraph (A)(iv) and appoint, on a competitive or
noncompetitive basis, an individual or entity as an
administrative receiver to assume the responsibilities of the
Secretary for the administration of all or part of the public
housing agency (including all or part of any project or
program of the agency).
``(II) During the period between the date on which a
petition is filed under item (aa) and the date on which a
receiver assumes responsibility for the management of the
public housing agency under that item, the Secretary may take
possession of the public housing agency (including all or
part of any project or program of the agency) pursuant to
subparagraph (A)(iv) and may appoint, on a competitive or
noncompetitive basis, an individual or entity as an
administrative receiver to assume the responsibilities of the
Secretary for the administration of all or part of the public
housing agency (including all or part of any project or
program of the agency).
``(C) If a receiver is appointed pursuant to subparagraph
(A)(ii), in addition to the powers accorded by the court
appointing the receiver, the receiver--
``(i) may abrogate any contract to which the United States
or an agency of the United States is not a party that, in the
receiver's written determination (which shall include the
basis for such determination), substantially impedes
correction of the substantial default, but only after the
receiver determines that reasonable efforts to renegotiate
such contract have failed;
``(ii) may demolish and dispose of all or part of the
assets of the public housing agency (including all or part of
any project of the agency) in accordance with section 18,
including disposition by transfer of properties to resident-
supported nonprofit entities;
``(iii) if determined to be appropriate by the Secretary,
may seek the establishment, as permitted by applicable State
and local law, of 1 or more new public housing agencies;
``(iv) if determined to be appropriate by the Secretary,
may seek consolidation of all or part of the agency
(including all or part of any project or program of the
agency), as permitted by applicable State and local laws,
into other well-managed public housing agencies with the
consent of such well-managed agencies; and
``(v) shall not be required to comply with any State or
local law relating to civil service requirements, employee
rights (except civil rights), procurement, or financial or
administrative controls that, in the receiver's written
determination (which shall include the basis for such
determination), substantially impedes correction of the
substantial default.
``(D)(i) If the Secretary takes possession of all or part
of the public housing agency, including all or part of any
project or program of the agency, pursuant to subparagraph
(A)(iv), the Secretary--
``(I) may abrogate any contract to which the United States
or an agency of the United States is not a party that, in the
written determination of the Secretary (which shall include
the basis for such determination), substantially impedes
correction of the substantial default, but only after the
Secretary determines that reasonable efforts to renegotiate
such contract have failed;
``(II) may demolish and dispose of all or part of the
assets of the public housing agency (including all or part of
any project of the agency) in accordance with section 18,
including disposition by transfer of properties to resident-
supported nonprofit entities;
``(III) may seek the establishment, as permitted by
applicable State and local law, of 1 or more new public
housing agencies;
``(IV) may seek consolidation of all or part of the agency
(including all or part of any project or program of the
agency), as permitted by applicable State and local laws,
into other well-managed public housing agencies with the
consent of such well-managed agencies;
``(V) shall not be required to comply with any State or
local law relating to civil service requirements, employee
rights (except civil rights), procurement, or financial or
administrative controls that, in the Secretary's written
determination (which shall include the basis for such
determination), substantially impedes correction of the
substantial default; and
``(VI) shall, without any action by a district court of the
United States, have such additional authority as a district
court of the United States would have the authority to confer
upon a receiver to achieve the purposes of the receivership.
``(ii) If the Secretary, pursuant to subparagraph
(B)(ii)(II), appoints an administrative receiver to assume
the responsibilities of the Secretary for the administration
of all or part of the public housing agency (including all or
part of any project or program of the agency), the Secretary
may delegate to the administrative receiver any or all of the
powers given the Secretary by this subparagraph, as the
Secretary determines to be appropriate.
``(iii) Regardless of any delegation under this
subparagraph, an administrative receiver may not seek the
establishment of 1 or more new public housing agencies
pursuant to clause (i)(III) or the consolidation of all or
part of an agency into other well-managed agencies pursuant
to clause (i)(IV), unless the Secretary first approves an
application by the administrative receiver to authorize such
action.
``(E) The Secretary may make available to receivers and
other entities selected or appointed pursuant to this
paragraph such assistance as the Secretary determines in the
discretion of the Secretary is necessary and available to
remedy the substantial deterioration of living conditions in
individual public housing developments or other related
emergencies that endanger the health, safety, and welfare of
public housing residents or families assisted under section
8. A decision made by the Secretary under this paragraph is
not subject to review in any court of the United States, or
in any court of any State, territory, or possession of the
United States.
``(F) In any proceeding under subparagraph (A)(ii), upon a
determination that a substantial default has occurred, and
without regard to the availability of alternative remedies,
the court shall appoint a receiver to conduct the affairs of
all or part of the public housing agency in a manner
consistent with this Act and in accordance with such further
terms and conditions as the court may provide. The receiver
appointed may be another public housing agency, a private
management corporation, or any other person or appropriate
entity. The court shall have power to grant appropriate
temporary or preliminary relief pending final disposition of
the petition by the Secretary.
``(G) The appointment of a receiver pursuant to this
paragraph may be terminated, upon the petition of any party,
when the court determines that all defaults have been cured
or the public housing agency is capable again of discharging
its duties.
``(H) If the Secretary (or an administrative receiver
appointed by the Secretary) takes possession of a public
housing agency (including all or part of any project or
program of the agency), or if a receiver is appointed by a
court, the Secretary or receiver shall be deemed to be acting
not in the official capacity of that person or entity, but
rather in the capacity of the public housing agency, and any
liability incurred, regardless of whether the incident giving
rise to that liability occurred while the Secretary or
receiver was in possession of all or part of the public
housing agency (including all or part of any project
[[Page S10076]]
or program of the agency), shall be the liability of the
public housing agency.''.
(b) Applicability.--The provisions of, and duties and
authorities conferred or confirmed by, the amendments made by
subsection (a) shall apply with respect to any action taken
before, on, or after the effective date of this Act and shall
apply to any receiver appointed for a public housing agency
before the date of enactment of this Act.
(c) Technical Correction Regarding Applicability to Section
8.--Section 8(h) of the United States Housing Act of 1937 is
amended by inserting ``(except as provided in section
6(j)(3))'' after ``6''.
SEC. 109. PUBLIC HOUSING SITE-BASED WAITING LISTS.
Section 6 of the United States Housing Act of 1937 is
amended by adding at the end the following:
``(s) Site-Based Waiting Lists.--
``(1) In general.--A public housing agency may establish,
in accordance with guidelines established by the Secretary,
procedures for maintaining waiting lists for admissions to
public housing developments of the agency, which may include
a system under which applicants may apply directly at or
otherwise designate the development or developments in which
they seek to reside.
``(2) Civil rights.--Any procedures established under
paragraph (1) shall comply with title VI of the Civil Rights
Act of 1964, the Fair Housing Act, and other applicable civil
rights laws.
``(3) Notice required.--Any system described in paragraph
(1) shall provide for the full disclosure by the public
housing agency to each applicant of any option available to
the applicant in the selection of the development in which to
reside.''.
SEC. 110. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) In General.--Section 9 of the United States Housing Act
of 1937 (42 U.S.C. 1437g) is amended to read as follows:
``SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
``(a) In General.--Except for assistance provided under
section 8 of this Act or as otherwise provided in the Public
Housing Reform and Responsibility Act of 1997, all programs
under which assistance is provided for public housing under
this Act on the day before October 1, 1998, shall be merged,
as appropriate, into either--
``(1) the Capital Fund established under subsection (c); or
``(2) the Operating Fund established under subsection (d).
``(b) Use of Existing Funds.--With the exception of funds
made available pursuant to section 8 or section 20(f) and
funds made available for the urban revitalization
demonstration program authorized under the Department of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Acts--
``(1) funds made available to the Secretary for public
housing purposes that have not been obligated by the
Secretary to a public housing agency as of October 1, 1998,
shall be made available, for the period originally provided
in law, for use in either the Capital Fund or the Operating
Fund, as appropriate; and
``(2) funds made available to the Secretary for public
housing purposes that have been obligated by the Secretary to
a public housing agency but that, as of October 1, 1998, have
not been obligated by the public housing agency, may be made
available by that public housing agency, for the period
originally provided in law, for use in either the Capital
Fund or the Operating Fund, as appropriate.
``(c) Capital Fund.--
``(1) In general.--The Secretary shall establish a Capital
Fund for the purpose of making assistance available to public
housing agencies to carry out capital and management
activities, including--
``(A) the development and modernization of public housing
projects, including the redesign, reconstruction, and
reconfiguration of public housing sites and buildings and the
development of mixed-finance projects;
``(B) vacancy reduction;
``(C) addressing deferred maintenance needs and the
replacement of dwelling equipment;
``(D) planned code compliance;
``(E) management improvements;
``(F) demolition and replacement;
``(G) resident relocation;
``(H) capital expenditures to facilitate programs to
improve the empowerment and economic self-sufficiency of
public housing residents and to improve resident
participation;
``(I) capital expenditures to improve the security and
safety of residents; and
``(J) homeownership activities.
``(2) Establishment of capital fund formula.--The Secretary
shall develop a formula for providing assistance under the
Capital Fund, which may take into account--
``(A) the number of public housing dwelling units owned or
operated by the public housing agency and the percentage of
those units that are occupied by very low-income families;
``(B) if applicable, the reduction in the number of public
housing units owned or operated by the public housing agency
as a result of any conversion to a system of tenant-based
assistance;
``(C) the costs to the public housing agency of meeting the
rehabilitation and modernization needs, and meeting the
reconstruction, development, replacement housing, and
demolition needs of public housing dwelling units owned and
operated by the public housing agency;
``(D) the degree of household poverty served by the public
housing agency;
``(E) the costs to the public housing agency of providing a
safe and secure environment in public housing units owned and
operated by the public housing agency;
``(F) the ability of the public housing agency to
effectively administer the Capital Fund distribution of the
public housing agency; and
``(G) any other factors that the Secretary determines to be
appropriate.
``(3) Condition on use of the capital fund for development
and modernization.--
``(A) Development.--Any public housing developed using
amounts provided under this subsection shall be operated for
a 40-year period under the terms and conditions applicable to
public housing during that period, beginning on the date on
which the development (or stage of development) becomes
available for occupancy.
``(B) Modernization.--Any public housing, or portion
thereof, that is modernized using amounts provided under this
subsection shall be maintained and operated for a 20-year
period under the terms and conditions applicable to public
housing during that period, beginning on the latest date on
which modernization is completed.
``(C) Applicability of latest expiration date.--Public
housing subject to this paragraph or to any other provision
of law mandating the operation of the housing as public
housing or under the terms and conditions applicable to
public housing for a specified length of time shall be
maintained and operated as required until the latest
expiration date.
``(d) Operating Fund.--
``(1) In general.--The Secretary shall establish an
Operating Fund for the purpose of making assistance available
to public housing agencies for the operation and management
of public housing, including--
``(A) procedures and systems to maintain and ensure the
efficient management and operation of public housing units
(including amounts sufficient to pay for the reasonable costs
of review by an independent auditor of the documentation or
other information maintained pursuant to section 6(j)(5) by a
public housing agency or resident management corporation to
substantiate the performance of that agency or corporation);
``(B) activities to ensure a program of routine
preventative maintenance;
``(C) anticrime and antidrug activities, including the
costs of providing adequate security for public housing
residents;
``(D) activities related to the provision of services,
including service coordinators for elderly persons or persons
with disabilities;
``(E) activities to provide for management and
participation in the management and policymaking of public
housing by public housing residents;
``(F) the costs associated with the operation and
management of mixed-finance projects, to the extent
appropriate (including the funding of an operating reserve to
ensure affordability for low-income and very low-income
families in lieu of the availability of operating funds for
public housing units in a mixed-finance project);
``(G) the reasonable costs of insurance;
``(H) the reasonable energy costs associated with public
housing units, with an emphasis on energy conservation; and
``(I) the costs of administering a public housing work
program under section 12, including the costs of any related
insurance needs.
``(2) Establishment of operating fund formula.--The
Secretary shall establish a formula for providing assistance
under the Operating Fund, which may take into account--
``(A) standards for the costs of operation and reasonable
projections of income, taking into account the character and
location of the public housing project and characteristics of
the families served, or the costs of providing comparable
services as determined with criteria or a formula
representing the operations of a prototype well-managed
public housing project;
``(B) the number of public housing dwelling units owned and
operated by the public housing agency, the percentage of
those units that are occupied by very low-income families,
and, if applicable, the reduction in the number of public
housing units as a result of any conversion to a system of
tenant-based assistance;
``(C) the degree of household poverty served by a public
housing agency;
``(D) the extent to which the public housing agency
provides programs and activities designed to promote the
economic self-sufficiency and management skills of public
housing residents;
``(E) the number of dwelling units owned and operated by
the public housing agency that are chronically vacant and the
amount of assistance appropriate for those units;
``(F) the costs of the public housing agency associated
with anticrime and antidrug activities, including the costs
of providing adequate security for public housing residents;
``(G) the ability of the public housing agency to
effectively administer the Operating Fund distribution of the
public housing agency; and
``(H) any other factors that the Secretary determines to be
appropriate.
``(e) Limitations on Use of Funds.--
``(1) In general.--Each public housing agency may use not
more than 20 percent of the Capital Fund distribution of the
public
[[Page S10077]]
housing agency for activities that are eligible for
assistance under the Operating Fund under subsection (d), if
the public housing agency plan provides for such use.
``(2) New construction.--
``(A) In general.--A public housing agency may not use any
of the Capital Fund or Operating Fund distributions of the
public housing agency for the purpose of constructing any
public housing unit, if such construction would result in a
net increase in the number of public housing units owned or
operated by the public housing agency on the date of
enactment of the Public Housing Reform and Responsibility Act
of 1997, including any public housing units demolished as
part of any revitalization effort.
``(B) Exception.--
``(i) In general.--Notwithstanding subparagraph (A), a
public housing agency may use the Capital Fund or Operating
Fund distributions of the public housing agency for the
construction and operation of housing units that are
available and affordable to low-income families in excess of
the limitations on new construction set forth in subparagraph
(A), except that the formulas established under subsections
(c)(2) and (d)(2) shall not provide additional funding for
the specific purpose of allowing construction and operation
of housing in excess of those limitations.
``(ii) Exception.--Notwithstanding clause (i), subject to
reasonable limitations set by the Secretary, the formulae
established under subsections (c)(2) and (d)(2) may provide
additional funding for the operation and modernization costs
(but not the initial development costs) of housing in excess
of amounts otherwise permitted under this paragraph if--
``(I) those units are part of a mixed-finance project or
otherwise leverage significant additional private or public
investment; and
``(II) the estimated cost of the useful life of the project
is less than the estimated cost of providing tenant-based
assistance under section 8(o) for the same period of time.
``(f) Direct Provision of Operating and Capital
Assistance.--
``(1) In general.--The Secretary shall directly provide
operating and capital assistance under this section to a
resident management corporation managing a public housing
development pursuant to a contract under this section, but
only if--
``(A) the resident management corporation petitions the
Secretary for the release of the funds
``(B) the contract provides for the resident management
corporation to assume the primary management responsibilities
of the public housing agency; and
``(C) the Secretary determines that the corporation has the
capability to effectively discharge such responsibilities.
``(2) Use of assistance.--Any operating and capital
assistance provided to a resident management corporation
pursuant to this subsection shall be used for purposes of
operating the public housing developments of the agency and
performing such other eligible activities with respect to
public housing as may be provided under the contract.
``(3) Responsibility of public housing agency.--If the
Secretary provides direct funding to a resident management
corporation under this subsection, the public housing agency
shall not be responsible for the actions of the resident
management corporation.
``(g) Technical Assistance.--To the extent approved in
advance in appropriations Acts, the Secretary may make grants
or enter into contracts in accordance with this subsection
for purposes of providing, either directly or indirectly--
``(1) technical assistance to public housing agencies,
resident councils, resident organizations, and resident
management corporations, including assistance relating to
monitoring and inspections;
``(2) training for public housing agency employees and
residents;
``(3) data collection and analysis; and
``(4) training, technical assistance, and education to
assist public housing agencies that are--
``(A) at risk of being designated as troubled under section
6(j) from being so designated; and
``(B) designated as troubled under section 6(j) in
achieving the removal of that designation.
``(h) Emergency Reserve.--
``(1) In general.--
``(A) Set-aside.--In each fiscal year, the Secretary shall
set aside not more than 2 percent of the amount made
available for use under the capital fund to carry out this
section for that fiscal year for use in accordance with this
subsection.
``(B) Use of funds.--Amounts set aside under this paragraph
shall be available to the Secretary for use in connection
with--
``(i) emergencies and other disasters;
``(ii) housing needs resulting from any settlement of
litigation; and
``(iii) the Operation Safe Home program, except that
amounts set aside under this clause may not exceed
$10,000,000 in any fiscal year.
``(2) Limitation.--With respect to any fiscal year, the
Secretary may carry over not more than a total of $25,000,000
in unobligated amounts set aside under this subsection for
use in connection with the activities described in paragraph
(1)(B) during the succeeding fiscal year.
``(3) Reports.--The Secretary and the Office of Inspector
General shall report to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Banking
and Financial Services of the House of Representatives
regarding the feasibility of transferring the authority to
administer the program functions implemented to reduce
violent crime in public housing under Operation Safe Home to
the Office of Public and Indian Housing or to the Department
of Justice.
``(4) Publication.--The Secretary shall publish the use of
any amounts allocated under this subsection relating to
emergencies (other disasters and housing needs resulting from
any settlement of litigation) in the Federal Register.
``(5) Eligible uses.--In carrying out this subsection, the
Secretary may use amounts set aside under this subsection
for--
``(A) any eligible use under the Operating Fund or the
Capital Fund established by this section; or
``(B) the provision of tenant-based assistance in
accordance with section 8.
``(i) Penalty for Slow Expenditure of Capital Funds.--
``(1) In general.--
``(A) Time period.--Except as provided in paragraph (2),
and subject to subparagraph (B) of this paragraph, a public
housing agency shall obligate any assistance received under
this section not later than 24 months after, as applicable--
``(i) the date on which the funds become available to the
agency for obligation in the case of modernization; or
``(ii) the date on which the agency accumulates adequate
funds to undertake comprehensive modernization, substantial
rehabilitation, or new construction of units.
``(B) Extension of time period.--The Secretary--
``(i) may, extend the time period described in subparagraph
(A) , for such period of time as the Secretary determines to
be necessary, if the Secretary determines that the failure of
the public housing agency to obligate assistance in a timely
manner is attributable to--
``(I) litigation;
``(II) obtaining approvals of a Federal, State, or local
government;
``(III) complying with environmental assessment and
abatement requirements;
``(IV) relocating residents;
``(V) an event beyond the control of the public housing
agency; or
``(VI) any other reason established by the Secretary by
notice published in the Federal Register;
``(ii) shall disregard the requirements of subparagraph (A)
with respect to any unobligated amounts made available to a
public housing agency, to the extent that the total of those
amounts does not exceed 10 percent of the original amount
made available to the public housing agency; and
``(iii) may, with the prior approval of the Secretary,
extend the period of time described in subparagraph (A), for
an additional period not to exceed 12 months, based on--
``(I) the size of the public housing agency;
``(II) the complexity of capital program of the public
housing agency;
``(III) any limitation on the ability of the public housing
agency to obligate the Capital Fund distributions of the
public housing agency in a timely manner as a result of State
or local law; or
``(IV) such other factors as the Secretary determines to be
relevant.
``(C) Effect of failure to comply.--
``(i) In general.--A public housing agency shall not be
awarded assistance under this section for any month during
any fiscal year in which the public housing agency has funds
unobligated in violation of subparagraph (A) or (B).
``(ii) Effect of failure to comply.--During any fiscal year
described in clause (i), the Secretary shall withhold all
assistance that would otherwise be provided to the public
housing agency. If the public housing agency cures its
default during the year, it shall be provided with the share
attributable to the months remaining in the year.
``(iii) Redistribution.--The total amount of any funds not
provided public housing agencies by operation of this
subparagraph shall be distributed to high-performing
agencies, as determined under section 6(j).
``(2) Exception.--
``(A) In general.--Subject to subparagraph (B), if the
Secretary has consented, before the date of enactment of the
Public Housing Reform and Responsibility Act of 1997, to an
obligation period for any agency longer than provided under
paragraph (1)(A), a public housing agency that obligates its
funds before the expiration of that period shall not be
considered to be in violation of paragraph (1)(A).
``(B) Fiscal year 1995.--Notwithstanding subparagraph (A)--
``(i) any funds appropriated to a public housing agency for
fiscal year 1995, or for any preceding fiscal year, shall be
fully obligated by the public housing agency not later than
September 30, 1998; and
``(ii) any funds appropriated to a public housing agency
for fiscal year 1996 or 1997 shall be fully obligated by the
public housing agency not later than September 30, 1999.
``(3) Expenditure of amounts.--
``(A) In general.--A public housing agency shall spend any
assistance received under this section not later than 4 years
(plus the period of any extension approved by the Secretary
under paragraph (1)(B)) after the date on which funds become
available to the agency for obligation.
[[Page S10078]]
``(B) Enforcement.--The Secretary shall enforce the
requirement of subparagraph (A) through default remedies up
to and including withdrawal of the funding.
``(4) Right of recapture.--Any obligation entered into by a
public housing agency shall be subject to the right of the
Secretary to recapture the obligated amounts for violation by
the public housing agency of the requirements of this
subsection.''.
(b) Implementation; Effective Date; Transition Period.--
(1) Implementation.--Not later than 1 year after the date
of enactment of this Act, in accordance with the negotiated
rulemaking procedures set forth in subchapter III of chapter
5 of title 5, United States Code, the Secretary shall
establish the formulas described in subsections (c)(3) and
(d)(2) of section 9 of the United States Housing Act of 1937,
as amended by this section.
(2) Effective date.--The formulas established under
paragraph (1) shall be effective only with respect to amounts
made available under section 9 of the United States Housing
Act of 1937, as amended by this section, in fiscal year 1999
or in any succeeding fiscal year.
(3) Transition period.--
(A) In general.--Subject to subparagraph (B), prior to the
effective date described in paragraph (2), the Secretary
shall provide that each public housing agency shall receive
funding under sections 9 and 14 of the United States Housing
Act of 1937, as those sections existed on the day before the
date of enactment of this Act.
(B) Qualification.--If a public housing agency establishes
a rental amount that is less than 30 percent of the monthly
adjusted income of the family under section 3(a)(1)(A) of the
United States Housing Act of 1937 (as amended by section
103(a) of this Act), or a rental amount that is based on an
adjustment to income under section 3(b)(5)(E) (as amended by
section 104(a)(2) of this Act), the Secretary shall not take
into account any reduction of or increase in the per unit
dwelling rental income of the public housing agency resulting
from the use of that rental amount in calculating the
contributions for the public housing agency for the operation
of the public housing under section 9 of the United States
Housing Act of 1937 (as in existence on the day before the
date of enactment of this Act).
SEC. 111. COMMUNITY SERVICE AND SELF-SUFFICIENCY.
Section 12 of the United States Housing Act of 1937 (42
U.S.C. 1437j) is amended by adding at the end the following:
``(c) Community Service and Self-Sufficiency Requirement.--
``(1) Minimum requirement.--Notwithstanding any other
provision of law, each adult resident of a public housing
project shall--
``(A) contribute not less than 8 hours per month of
community service (not to include any political activity)
within the community in which that adult resides; or
``(B) participate in a self-sufficiency program (as that
term is defined in subsection (d)(1)) for not less than 8
hours per month.
``(2) Inclusion in plan.--Each public housing agency shall
include in the public housing agency plan a detailed
description of the manner in which the public housing agency
intends to implement and administer paragraph (1).
``(3) Exemptions.--The Secretary may provide an exemption
from paragraph (1) for any adult who--
``(A) has attained age 62;
``(B) is a blind or disabled individual, as defined under
section 216(i)(1) or 1614 of the Social Security Act (42
U.S.C. 416(i)(1); 1382c) and who is unable to comply with
this section, or a primary caretaker of that individual;
``(C) is engaged in a work activity (as that term is
defined in subsection (d)(1)(C)); or
``(D) meets the requirements for being exempted from having
to engage in a work activity under the State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) or under any other welfare program of the
State in which the public housing agency is located.
``(4) Geographic location; prohibition against replacement
of employees.--
``(A) Geographic location.--The requirement described in
paragraph (1) may include community service or participation
in a self-sufficiency program performed at a location not
owned by the public housing agency.
``(B) Prohibition against replacement of employees.--In
carrying out this subsection, a public housing agency may
not--
``(i) substitute community service or participation in a
self-sufficiency program, as described in paragraph (1), for
work performed by a public housing employee; or
``(ii) supplant a job at any location at which community
work requirements under section 111 are fulfilled.
``(d) Self-Sufficiency.--
``(1) Definitions.--In this section--
``(A) the term `covered family' means a family that--
``(i) receives benefits for welfare or public assistance
from a State or other public agency under a program for which
the Federal, State, or local law relating to the program
requires, as a condition of eligibility for assistance under
the program, participation of a member of the family in a
self-sufficiency program; and
``(ii) resides in a public housing dwelling unit or is
provided tenant-based assistance;
``(B) the term `self-sufficiency program' means any program
designed to encourage, assist, train, or facilitate the
economic independence of participants and their families or
to provide work for participants, including programs for job
training, employment counseling, work placement, basic skills
training, education, workfare and apprenticeship; and
``(C) the term `work activities' has the meaning given that
term in section 407(d) of the Social Security Act (42 U.S.C.
607(d)) (as in effect on and after July 1, 1997).
``(2) Compliance.--
``(A) Sanctions.--Notwithstanding any other provision of
law, if the welfare or public assistance benefits of a
covered family are reduced under a Federal, State, or local
law regarding such an assistance program because of any
failure of any member of the family to comply with the
conditions under the assistance program requiring
participation in a self-sufficiency program or a work
activities requirement, or because of an act of fraud by any
member of the family under the law or program, the amount
required to be paid by the family as a monthly contribution
toward rent may not be decreased, during the period of the
reduction, as a result of any decrease in the income of the
family (to the extent that the decrease in income is a result
of the benefits reduction).
``(B) Review.--Any covered family that is affected by the
operation of this paragraph shall have the right to review
the determination under this paragraph through the
administrative grievance procedure for the public housing
agency.
``(C) Notice.--Subparagraph (A) shall not apply to any
covered family before the public housing agency providing
assistance under this Act on behalf of the family obtains
written notification from the relevant welfare or public
assistance agency specifying that the family's benefits have
been reduced because of noncompliance with self-sufficiency
program or an applicable work activities requirement and the
level of such reduction.
``(D) No application of reductions based on time limit for
assistance.--For purposes of this paragraph, a reduction in
benefits as a result of the expiration of a lifetime time
limit for a family receiving welfare or public assistance
benefits shall not be considered to be a failure to comply
with the conditions under the assistance program requiring
participation in a self-sufficiency program or a work
activities requirement.
``(3) Occupancy rights.--This subsection may not be
construed to authorize any public housing agency to limit the
duration of tenancy in a public housing dwelling unit or of
tenant-based assistance.
``(4) Cooperation agreements for self-sufficiency
activities.--
``(A) Requirement.--To the maximum extent practicable, a
public housing agency providing public housing dwelling units
or tenant-based assistance for covered families shall enter
into such cooperation agreements, with State, local, and
other agencies providing assistance to covered families under
welfare or public assistance programs, as may be necessary,
to provide for such agencies to transfer information to
facilitate administration of subsection (c) or paragraph (2)
of this subsection, and other information regarding rents,
income, and assistance that may assist a public housing
agency or welfare or public assistance agency in carrying out
its functions.
``(B) Contents.--A public housing agency shall seek to
include in a cooperation agreement under this paragraph
requirements and provisions designed to target assistance
under welfare and public assistance programs to families
residing in public and other assisted housing developments,
which may include providing for self-sufficiency services
within such housing, providing for services designed to meet
the unique employment-related needs of residents of such
housing, providing for placement of workfare positions on-
site in such housing, and such other elements as may be
appropriate.
``(C) Confidentiality.--This paragraph may not be construed
to authorize any release of information that is prohibited
by, or in contravention of, any other provision of Federal,
State, or local law.''.
SEC. 112. REPEAL OF ENERGY CONSERVATION; CONSORTIA AND JOINT
VENTURES.
Section 13 of the United States Housing Act of 1937 (42
U.S.C. 1437k) is amended to read as follows:
``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND
SUBSIDIARIES OF PUBLIC HOUSING AGENCIES.
``(a) Consortia.--
``(1) In general.--Any 2 or more public housing agencies
may participate in a consortium for the purpose of
administering any or all of the housing programs of those
public housing agencies in accordance with this section.
``(2) Effect.--With respect to any consortium described in
paragraph (1)--
``(A) any assistance made available under this title to
each of the public housing agencies participating in the
consortium shall be paid to the consortium; and
``(B) all planning and reporting requirements imposed upon
each public housing agency participating in the consortium
with respect to the programs operated by the consortium shall
be consolidated.
``(3) Restrictions.--
``(A) Agreement.--Each consortium described in paragraph
(1) shall be formed and operated in accordance with a
consortium agreement, and shall be subject to the
requirements of a joint public housing agency
[[Page S10079]]
plan, which shall be submitted by the consortium in
accordance with section 5A.
``(B) Minimum requirements.--The Secretary shall specify
minimum requirements relating to the formation and operation
of consortia and the minimum contents of consortium
agreements under this paragraph.
``(b) Joint Ventures.--
``(1) In general.--Notwithstanding any other provision of
law, a public housing agency, in accordance with the public
housing agency plan, may--
``(A) form and operate wholly owned or controlled
subsidiaries (which may be nonprofit corporations) and other
affiliates, any of which may be directed, managed, or
controlled by the same persons who constitute the board of
commissioners or other similar governing body of the public
housing agency, or who serve as employees or staff of the
public housing agency; or
``(B) enter into joint ventures, partnerships, or other
business arrangements with, or contract with, any person,
organization, entity, or governmental unit--
``(i) with respect to the administration of the programs of
the public housing agency, including any program that is
subject to this title; or
``(ii) for the purpose of providing or arranging for the
provision of supportive or social services.
``(2) Use of and treatment income.--Any income generated
under paragraph (1)--
``(A) shall be used for low-income housing or to benefit
the residents of the public housing agency; and
``(B) shall not result in any decrease in any amount
provided to the public housing agency under this title.
``(3) Audits.--The Comptroller General of the United
States, the Secretary, and the Inspector General of the
Department of Housing and Urban Development may conduct an
audit of any activity undertaken under paragraph (1) at any
time.''.
SEC. 113. REPEAL OF MODERNIZATION FUND.
(a) In General.--Section 14 of the United States Housing
Act of 1937 (42 U.S.C. 1437l) is repealed.
(b) Conforming Amendments.--The United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.) is amended--
(1) in section 5(c)(5), by striking ``for use under section
14 or'';
(2) in section 5(c)(7)--
(A) in subparagraph (A)--
(i) by striking clause (iii); and
(ii) by redesignating clauses (iv) through (x) as clauses
(iii) through (ix), respectively; and
(B) in subparagraph (B)--
(i) by striking clause (iii); and
(ii) by redesignating clauses (iv) through (x) as clauses
(iii) through (ix), respectively;
(3) in section 6(j)(1)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C) through (H) as
subparagraphs (B) through (G), respectively;
(4) in section 6(j)(2)(A)--
(A) in clause (i), by striking ``The Secretary shall also
designate,'' and all that follows through the period at the
end; and
(B) in clause (iii), by striking ``(including designation
as a troubled agency for purposes of the program under
section 14)'';
(5) in section 6(j)(2)(B)--
(A) in clause (i), by striking ``and determining that an
assessment under this subparagraph will not duplicate any
review conducted under section 14(p)''; and
(B) in clause (ii)--
(i) by striking ``(I) the agency's comprehensive plan
prepared pursuant to section 14 adequately and appropriately
addresses the rehabilitation needs of the agency's inventory,
(II)'' and inserting ``(I)''; and
(ii) by striking ``(III)'' and inserting ``(II)'';
(6) in section 6(j)(3)--
(A) in clause (ii), by adding ``and'' at the end;
(B) by striking clause (iii); and
(C) by redesignating clause (iv) as clause (iii);
(7) in section 6(j)(4)--
(A) in subparagraph (D), by adding ``and'' at the end;
(B) in subparagraph (E), by striking ``; and'' at the end
and inserting a period; and
(C) by striking subparagraph (F);
(8) in section 20--
(A) by striking subsection (c) and inserting the following:
``(c) [Reserved.]''; and
(B) by striking subsection (f) and inserting the following:
``(f) [Reserved.]'';
(9) in section 21(a)(2)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(10) in section 21(a)(3)(A)(v), by striking ``the building
or buildings meet the minimum safety and livability standards
applicable under section 14, and'';
(11) in section 25(b)(1), by striking ``From amounts
reserved'' and all that follows through ``the Secretary may''
and inserting the following: ``To the extent approved in
appropriations Acts, the Secretary may'';
(12) in section 25(e)(2)--
(A) by striking ``The Secretary'' and inserting ``To the
extent approved in appropriations Acts, the Secretary''; and
(B) by striking ``available annually from amounts under
section 14'';
(13) in section 25(e), by striking paragraph (3);
(14) in section 25(f)(2)(G)(i), by striking ``including--''
and all that follows through ``an explanation'' and inserting
``including an explanation'';
(15) in section 25(i)(1), by striking the second sentence;
and
(16) in section 202(b)(2)--
(A) by striking ``(b) Financial Assistance.--'' and all
that follows through ``The Secretary may,'' and inserting the
following:
``(b) Financial Assistance.--The Secretary may''; and
(B) by striking paragraph (2).
SEC. 114. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.
Section 16 of the United States Housing Act of 1937 (42
U.S.C. 1437n) is amended to read as follows:
``SEC. 16. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.
``(a) Income Eligibility for Public Housing.--
``(1) In general.--Of the dwelling units of a public
housing agency, including public housing units in a
designated mixed-finance project, made available for
occupancy in any fiscal year of the public housing agency--
``(A) not less than 40 percent shall be occupied by
families whose incomes do not exceed 30 percent of the area
median income for those families;
``(B) not less than 70 percent shall be occupied by
families whose incomes do not exceed 60 percent of the area
median income for those families; and
``(C) any remaining dwelling units may be made available
for families whose incomes do not exceed 80 percent of the
area median income for those families.
``(2) Establishment of different standards.--
Notwithstanding paragraph (1), if approved by the Secretary,
a public housing agency, in accordance with the public
housing agency plan, may for good cause establish and
implement an admission standard other than the standard
described in paragraph (1).
``(3) Prohibition of concentration of low-income
families.--A public housing agency may not, in complying with
the requirements under paragraph (1), concentrate very low-
income families (or other families with relatively low
incomes) in public housing dwelling units in certain public
housing developments or certain buildings within
developments.
``(4) Mixed-income housing standard.--Each public housing
agency plan submitted by a public housing agency shall
include a plan for achieving a diverse income mix among
residents in each public housing project of the public
housing agency and among the scattered site public housing of
the public housing agency.
``(b) Income Eligibility for Certain Assisted Housing.--
``(1) Tenant-based assistance.--Of the dwelling units
receiving tenant-based assistance under section 8 made
available for occupancy in any fiscal year of the public
housing agency--
``(A) not less than 65 percent shall be occupied by
families whose incomes do not exceed 30 percent of the area
median income for those families;
``(B) not less than 90 percent shall be occupied by
families whose incomes do not exceed 60 percent of the area
median income for those families; and
``(C) any remaining dwelling units may be made available
for families whose incomes do not exceed 80 percent of the
area median income for those families.
``(2) Establishment of different standards.--
Notwithstanding paragraph (1), if approved by the Secretary,
a public housing agency, in accordance with the public
housing agency plan, may for good cause establish and
implement an admission standard other than the standard
described in paragraph (1).
``(3) Project-based assistance.--Of the total number of
dwelling units in a project receiving assistance under
section 8, other than assistance described in paragraph (1),
that are made available for occupancy by eligible families in
any year (as determined by the Secretary)--
``(A) not less than 40 percent shall be occupied by
families whose incomes do not exceed 30 percent of the area
median income;
``(B) not less than 70 percent shall be occupied by
families whose incomes do not exceed 60 percent of the area
median income; and
``(C) any remaining dwelling units may be made available
for families whose incomes do not exceed 80 percent of the
area median income for those families.
``(c) Definition of Area Median Income.--In this section,
the term `area median income' means the median income of an
area, as determined by the Secretary, with adjustments for
smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than the
percentages specified in subsections (a) and (b) if the
Secretary determines that such variations are necessary
because of unusually high or low family incomes.''.
SEC. 115. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
(a) In General.--Section 18 of the United States Housing
Act of 1937 (42 U.S.C. 1437p) is amended to read as follows:
``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
``(a) Applications for Demolition and Disposition.--Except
as provided in subsection (b), not later than 60 days after
receiving an application by a public housing
[[Page S10080]]
agency for authorization, with or without financial
assistance under this title, to demolish or dispose of a
public housing project or a portion of a public housing
project (including any transfer to a resident-supported
nonprofit entity), the Secretary shall approve the
application, if the public housing agency certifies--
``(1) in the case of--
``(A) an application proposing demolition of a public
housing project or a portion of a public housing project,
that--
``(i) the project or portion of the public housing project
is obsolete as to physical condition, location, or other
factors, making it unsuitable for housing purposes; and
``(ii) no reasonable program of modifications is cost-
effective to return the public housing project or portion of
the project to useful life; and
``(B) an application proposing the demolition of only a
portion of a public housing project, that the demolition will
help to assure the viability of the remaining portion of the
project;
``(2) in the case of an application proposing disposition
of a public housing project or other real property subject to
this title by sale or other transfer, that--
``(A) the retention of the property is not in the best
interests of the residents or the public housing agency
because--
``(i) conditions in the area surrounding the public housing
project adversely affect the health or safety of the
residents or the feasible operation of the project by the
public housing agency; or
``(ii) disposition allows the acquisition, development, or
rehabilitation of other properties that will be more
efficiently or effectively operated as low-income housing;
``(B) the public housing agency has otherwise determined
the disposition to be appropriate for reasons that are--
``(i) in the best interests of the residents and the public
housing agency;
``(ii) consistent with the goals of the public housing
agency and the public housing agency plan; and
``(iii) otherwise consistent with this title; or
``(C) for property other than dwelling units, the property
is excess to the needs of a public housing project or the
disposition is incidental to, or does not interfere with,
continued operation of a public housing project;
``(3) that the public housing agency has specifically
authorized the demolition or disposition in the public
housing agency plan, and has certified that the actions
contemplated in the public housing agency plan comply with
this section;
``(4) that the public housing agency--
``(A) will notify residents in a project subject to
demolition or disposition 90 days prior to the displacement
date except in cases of imminent threat to health or safety;
``(B) will provide for the payment of the actual and
reasonable relocation expenses of each resident to be
displaced;
``(C) will ensure that each displaced resident is offered
comparable housing--
``(i) that meets housing quality standards;
``(ii) which may include--
``(I) tenant-based assistance;
``(II) project-based assistance; or
``(III) occupancy in a unit operated or assisted by the
public housing agency;
``(iii) that is at a rental rate paid by the resident
that is comparable to the rental rate applicable to the unit
from which the resident is vacated; and
``(iv) that is located in an area that is generally not
less desirable than the location of the displaced person's
housing;
``(D) will provide any necessary counseling for residents
who are displaced; and
``(E) will not commence demolition or complete disposition
until all residents residing in the unit are relocated;
``(5) that the net proceeds of any disposition will be
used--
``(A) unless waived by the Secretary, for the retirement of
outstanding obligations issued to finance the original public
housing project or modernization of the project; and
``(B) to the extent that any proceeds remain after the
application of proceeds in accordance with subparagraph (A),
for the provision of low-income housing or to benefit the
residents of the public housing agency; and
``(6) that the public housing agency has complied with
subsection (c).
``(b) Disapproval of Applications.--The Secretary shall
disapprove an application submitted under subsection (a) if
the Secretary determines that--
``(1) any certification made by the public housing agency
under that subsection is clearly inconsistent with
information and data available to the Secretary or
information or data requested by the Secretary; or
``(2) the application was not developed in consultation
with--
``(A) residents who will be affected by the proposed
demolition or disposition; and
``(B) each resident advisory board and resident council, if
any, that will be affected by the proposed demolition or
disposition.
``(c) Resident Opportunity To Purchase in Case of Proposed
Disposition.--
``(1) In general.--In the case of a proposed disposition of
a public housing project or portion of a project, the public
housing agency shall, in appropriate circumstances, as
determined by the Secretary, initially offer the property to
any eligible resident organization, eligible resident
management corporation, or nonprofit organization acting on
behalf of the residents, if that entity has expressed an
interest, in writing, to the public housing agency in a
timely manner, in purchasing the property for continued use
as low-income housing.
``(2) Timing.--
``(A) Thirty-day notice.--A resident organization, resident
management corporation, or other resident-supported nonprofit
entity referred to in paragraph (1) may express interest in
purchasing property that is the subject of a disposition, as
described in paragraph (1), during the 30-day period
beginning on the date of notification of a proposed sale of
the property.
``(B) Sixty-day notice.--If an entity expresses written
interest in purchasing a property, as provided in
subparagraph (A), no disposition of the property shall occur
during the 60-day period beginning on the date of receipt of
that written notice, during which time that entity shall be
given the opportunity to obtain a firm commitment for
financing the purchase of the property.
``(d) Replacement Units.--Notwithstanding any other
provision of law, replacement housing units for public
housing units demolished in accordance with this section may
be built on the original public housing location or in the
same neighborhood as the original public housing location if
the number of those replacement units is fewer than the
number of units demolished.''.
(b) Homeownership Replacement Plan.--
(1) In general.--Section 304(g) of the United States
Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)), as amended by
section 1002(b) of the Emergency Supplemental Appropriations
for Additional Disaster Assistance, for Anti-terrorism
Initiatives, for Assistance in the Recovery from the Tragedy
that Occurred At Oklahoma City, and Rescissions Act, 1995
(Public Law 104-19; 109 Stat. 236), is amended to read as
follows:
``(g) [Reserved.]''.
(2) Effective date.--The amendment made by paragraph (1)
shall be effective with respect to any plan for the
demolition, disposition, or conversion to homeownership of
public housing that is approved by the Secretary after
September 30, 1995.
(c) Uniform Relocation and Real Property Acquisition Act.--
The Uniform Relocation and Real Property Acquisition Act
shall not apply to activities under section 18 of the United
States Housing Act of 1937, as amended by this section.
SEC. 116. REPEAL OF FAMILY INVESTMENT CENTERS; VOUCHER SYSTEM
FOR PUBLIC HOUSING.
(a) In General.--Section 22 of the United States Housing
Act of 1937 (42 U.S.C. 1437t) is amended to read as follows:
``SEC. 22. VOUCHER SYSTEM FOR PUBLIC HOUSING.
``(a) In General.--
``(1) Authorization.--A public housing agency may convert
any public housing project (or portion thereof) owned and
operated by the public housing agency to a system of tenant-
based assistance in accordance with this section.
``(2) Requirements.--In converting to a tenant-based system
of assistance under this section, the public housing agency
shall develop a conversion assessment and plan under
subsection (b) in consultation with the appropriate public
officials, with significant participation by the residents of
the project (or portion thereof), which assessment and plan
shall--
``(A) be consistent with and part of the public housing
agency plan; and
``(B) describe the conversion and future use or disposition
of the public housing project, including an impact analysis
on the affected community.
``(b) Conversion Assessment and Plan.--
``(1) In general.--Not later than 2 years after the date of
enactment of the Public Housing Reform and Responsibility Act
of 1997, each public housing agency shall assess the status
of each public housing project owned and operated by that
public housing agency, and shall submit to the Secretary an
assessment that includes--
``(A) a cost analysis that demonstrates whether or not the
cost (both on a net present value basis and in terms of new
budget authority requirements) of providing tenant-based
assistance under section 8 for the same families in
substantially similar dwellings over the same period of time
is less expensive than continuing public housing assistance
in the public housing project proposed for conversion for the
remaining useful life of the project;
``(B) an analysis of the market value of the public housing
project proposed for conversion both before and after
rehabilitation, and before and after conversion;
``(C) an analysis of the rental market conditions with
respect to the likely success of tenant-based assistance
under section 8 in that market for the specific residents of
the public housing project proposed for conversion, including
an assessment of the availability of decent and safe
dwellings renting at or below the payment standard
established for tenant-based assistance under section 8 by
the public housing agency;
``(D) the impact of the conversion to a system of tenant-
based assistance under this section on the neighborhood in
which the public housing project is located; and
``(E) a plan that identifies actions, if any, that the
public housing agency would take with regard to converting
any public housing project or projects (or portions thereof)
of the public housing agency to a system of tenant-based
assistance.
``(2) Streamlined assessment.--At the discretion of the
Secretary or at the request of
[[Page S10081]]
a public housing agency, the Secretary may waive any or all
of the requirements of paragraph (1) or otherwise require a
streamlined assessment with respect to any public housing
project or class of public housing projects.
``(3) Implementation of conversion plan.--
``(A) In general.--A public housing agency may implement a
conversion plan only if the conversion assessment under this
section demonstrates that the conversion--
``(i) will not be more expensive than continuing to operate
the public housing project (or portion thereof) as public
housing; and
``(ii) will principally benefit the residents of the public
housing project (or portion thereof) to be converted, the
public housing agency, and the community.
``(B) Disapproval.--The Secretary shall disapprove a
conversion plan only if--
``(i) the plan is plainly inconsistent with the conversion
assessment under subsection (b);
``(ii) there is reliable information and data available to
the Secretary that contradicts that conversion assessment; or
``(iii) the plan otherwise fails to meet the requirements
of this subsection.
``(c) Other Requirements.--To the extent approved by the
Secretary, the funds used by the public housing agency to
provide tenant-based assistance under section 8 shall be
added to the annual contribution contract administered by the
public housing agency.''.
(b) Savings Provision.--The amendment made by subsection
(a) does not affect any contract or other agreement entered
into under section 22 of the United States Housing Act of
1937, as that section existed on the day before the date of
enactment of this Act.
SEC. 117. REPEAL OF FAMILY SELF-SUFFICIENCY; HOMEOWNERSHIP
OPPORTUNITIES.
(a) In General.--Section 23 of the United States Housing
Act of 1937 (42 U.S.C. 1437u) is amended to read as follows:
``SEC. 23. PUBLIC HOUSING HOMEOWNERSHIP OPPORTUNITIES.
``(a) In General.--Notwithstanding any other provision of
law, a public housing agency may, in accordance with this
section--
``(1) sell any public housing unit in any public housing
project of the public housing agency to--
``(A) the low-income residents of the public housing
agency; or
``(B) any organization serving as a conduit for sales to
those persons; and
``(2) provide assistance to public housing residents to
facilitate the ability of those residents to purchase a
principal residence.
``(b) Right of First Refusal.--In making any sale under
this section, the public housing agency shall initially offer
the public housing unit at issue to the resident or residents
occupying that unit, if any, or to an organization serving as
a conduit for sales to any such resident.
``(c) Sale Prices, Terms, and Conditions.--Any sale under
this section may involve such prices, terms, and conditions
as the public housing agency may determine in accordance with
procedures set forth in the public housing agency plan.
``(d) Purchase Requirements.--
``(1) In general.--Each resident that purchases a dwelling
unit under subsection (a) shall, as of the date on which the
purchase is made--
``(A) intend to occupy the property as a principal
residence; and
``(B) submit a written certification to the public housing
agency that such resident will occupy the property as a
principal residence for a period of not less than 12 months
beginning on that date.
``(2) Recapture.--Except for good cause, as determined by a
public housing agency in the public housing agency plan, if,
during the 1-year period beginning on the date on which any
resident acquires a public housing unit under this section,
that public housing unit is resold, the public housing agency
shall recapture 75 percent of the amount of any proceeds from
that resale that exceed the sum of--
``(A) the original sale price for the acquisition of the
property by the qualifying resident;
``(B) the costs of any improvements made to the property
after the date on which the acquisition occurs; and
``(C) any closing costs incurred in connection with the
acquisition.
``(e) Protection of Nonpurchasing Residents.--If a public
housing resident does not exercise the right of first refusal
under subsection (b) with respect to the public housing unit
in which the resident resides, the public housing agency
shall--
``(1) ensure that either another public housing unit or
rental assistance under section 8 is made available to the
resident; and
``(2) provide for the payment of the actual and reasonable
relocation expenses of the resident.
``(f) Net Proceeds.--The net proceeds of any sales under
this section remaining after payment of all costs of the sale
and any unassumed, unpaid indebtedness owed in connection
with the dwelling units sold under this section unless waived
by the Secretary, shall be used for purposes relating to low-
income housing and in accordance with the public housing
agency plan.
``(g) Homeownership Assistance.--From amounts distributed
to a public housing agency under section 9, or from other
income earned by the public housing agency, the public
housing agency may provide assistance to public housing
residents to facilitate the ability of those residents to
purchase a principal residence, including a residence other
than a residence located in a public housing project.''.
(b) Conforming Amendments.--The United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.) is amended--
(1) in section 8(y)(7)(A)--
(A) by striking ``, (ii)'' and inserting ``, and (ii)'';
and
(B) by striking ``, and (iii)'' and all that follows before
the period at the end; and
(2) in section 25(l)(2)--
(A) in the first sentence, by striking ``, consistent with
the objectives of the program under section 23,''; and
(B) by striking the second sentence.
(c) Savings Provision.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section do not affect any contract or
other agreement entered into under section 23 of the United
States Housing Act of 1937, as that section existed on the
day before the date of enactment of this Act.
(2) Exception.--Section 23(d)(3) of the United States
Housing Act of 1937, as in existence on the day before the
date of enactment of this Act, shall not apply to any
contract or other agreement after the date of enactment of
this Act.
SEC. 118. REVITALIZING SEVERELY DISTRESSED PUBLIC HOUSING.
Section 24 of the United States Housing Act of 1937 (42
U.S.C. 1437v) is amended to read as follows:
``SEC. 24. REVITALIZING SEVERELY DISTRESSED PUBLIC HOUSING.
``(a) In General.--To the extent provided in advance in
appropriations Acts, the Secretary may make grants to public
housing agencies for the purposes of--
``(1) enabling the demolition of obsolete public housing
projects or portions thereof;
``(2) revitalizing sites (including remaining public
housing units) on which such public housing projects are
located;
``(3) the provision of replacement housing, which will
avoid or lessen concentrations of very low-income families;
and
``(4) the provision of tenant-based assistance under
section 8 for use as replacement housing.
``(b) Competition.--The Secretary shall make grants under
this section on the basis of a competition, which shall be
based on such factors as--
``(1) the need for additional resources for addressing a
severely distressed public housing project;
``(2) the need for affordable housing in the community;
``(3) the supply of other housing available and affordable
to a family receiving tenant-based assistance under section
8; and
``(4) the local impact of the proposed revitalization
program.
``(c) Terms and Conditions.--The Secretary may impose such
terms and conditions on recipients of grants under this
section as the Secretary determines to be appropriate to
carry out the purposes of this section, except that such
terms and conditions shall be similar to the terms and
conditions of either--
``(1) the urban revitalization demonstration program
authorized under the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Acts; or
``(2) section 24 of the United States Housing Act of 1937,
as such section existed before the date of enactment of the
Public Housing Reform and Responsibility Act of 1997.
``(d) Alternative Management.--The Secretary may require
any recipient of a grant under this section to make
arrangements with an entity other than the public housing
agency to carry out the purposes for which the grant was
awarded, if the Secretary determines that such action is
necessary for the timely and effective achievement of the
purposes for which the grant was awarded.
``(e) Sunset.--No grant may be made under this section on
or after October 1, 2000.''.
SEC. 119. MIXED-FINANCE AND MIXED-OWNERSHIP PROJECTS.
(a) In General.--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:
``SEC. 30. MIXED-FINANCE AND MIXED-OWNERSHIP PROJECTS.
``(a) In General.--A public housing agency may own,
operate, assist, or otherwise participate in 1 or more mixed-
finance projects in accordance with this section.
``(b) Requirements.--
``(1) Mixed-finance project.--In this section, the term
`mixed-finance project' means a project that meets the
requirements of paragraph (2) and that is occupied both by 1
or more very low-income families and by 1 or more families
that are not very low-income families.
``(2) Structure of projects.--Each mixed-finance project
shall be developed--
``(A) in a manner that ensures that units are made
available in the project, by master contract, individual
lease, or equity interest for occupancy by eligible families
identified by the public housing agency for a period of not
less than 20 years;
``(B) in a manner that ensures that the number of public
housing units bears approximately the same proportion to the
total number of units in the mixed-finance project as the
value of the total financial commitment provided by the
public housing agency
[[Page S10082]]
bears to the value of the total financial commitment in the
project, or shall not be less than the number of units that
could have been developed under the conventional public
housing program with the assistance; and
``(C) in accordance with such other requirements as the
Secretary may prescribe by regulation.
``(3) Types of projects.--The term `mixed-finance project'
includes a project that is developed--
``(A) by a public housing agency or by an entity affiliated
with a public housing agency;
``(B) by a partnership, a limited liability company, or
other entity in which the public housing agency (or an entity
affiliated with a public housing agency) is a general
partner, managing member, or otherwise participates in the
activities of that entity;
``(C) by any entity that grants to the public housing
agency a right of first refusal to acquire the public housing
project within the applicable period of time after initial
occupancy of the public housing project in accordance with
section 42(i)(7) of the Internal Revenue Code of 1986; or
``(D) in accordance with such other terms and conditions as
the Secretary may prescribe by regulation.
``(c) Taxation.--
``(1) In general.--A public housing agency may elect to
have all public housing units in a mixed-finance project
subject to local real estate taxes, except that such units
shall be eligible at the discretion of the public housing
agency for the taxing requirements under section 6(d).
``(2) Low-income housing tax credit.--With respect to any
unit in a mixed-finance project that is assisted pursuant to
the low-income housing tax credit under section 42 of the
Internal Revenue Code of 1986, the rents charged to the
residents may be set at levels not to exceed the amounts
allowable under that section.
``(d) Restriction.--No assistance provided under section 9
shall be used by a public housing agency in direct support of
any unit rented to a family that is not a low-income family.
``(e) Effect of Certain Contract Terms.--If an entity that
owns or operates a mixed-finance project under this section
enters into a contract with a public housing agency, the
terms of which obligate the entity to operate and maintain a
specified number of units in the project as public housing
units in accordance with the requirements of this Act for the
period required by law, such contractual terms may provide
that, if, as a result of a reduction in appropriations under
section 9, or any other change in applicable law, the public
housing agency is unable to fulfill its contractual
obligations with respect to those public housing units, that
entity may deviate, under procedures and requirements
developed through regulations by the Secretary, from
otherwise applicable restrictions under this Act regarding
rents, income eligibility, and other areas of public housing
management with respect to a portion or all of those public
housing units, to the extent necessary to preserve the
viability of those units while maintaining the low-income
character of the units to the maximum extent practicable.''.
(b) Regulations.--The Secretary shall issue such
regulations as may be necessary to promote the development of
mixed-finance projects, as that term is defined in section 30
of the United States Housing Act of 1937 (as added by this
Act).
SEC. 120. CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
BASED ASSISTANCE.
(a) In General.--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:
``SEC. 31. CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
BASED ASSISTANCE.
``(a) Identification of Units.--Each public housing agency
shall identify all public housing projects of the public
housing agency--
``(1) that are on the same or contiguous sites;
``(2) that the public housing agency determines to be
distressed, which determination shall be made in accordance
with guidelines established by the Secretary, which
guidelines shall take into account the criteria established
in the Final Report of the National Commission on Severely
Distressed Public Housing (August 1992);
``(3) identified as distressed housing under paragraph (2)
for which the public housing agency cannot assure the long-
term viability as public housing through reasonable
modernization expenses, density reduction, achievement of a
broader range of family income, or other measures; and
``(4) for which the estimated cost, during the remaining
useful life of the project, of continued operation and
modernization as public housing exceeds the estimated cost,
during the remaining useful life of the project, of providing
tenant-based assistance under section 8 for all families in
occupancy, based on appropriate indicators of cost (such as
the percentage of total development costs required for
modernization).
``(b) Consultation.--Each public housing agency shall
consult with the appropriate public housing residents and the
appropriate unit of general local government in identifying
any public housing projects under subsection (a).
``(c) Removal of Units From the Inventories of Public
Housing Agencies.--
``(1) In general.--
``(A) Development of plan.--Each public housing agency
shall develop and, to the extent provided in advance in
appropriations Acts, carry out a 5-year plan in conjunction
with the Secretary for the removal of public housing units
identified under subsection (a) from the inventory of the
public housing agency and the annual contributions contract.
``(B) Approval of plan.--The plan required under
subparagraph (A) shall--
``(i) be included as part of the public housing agency
plan;
``(ii) be certified by the relevant local official to be in
accordance with the comprehensive housing affordability
strategy under title I of the Housing and Community
Development Act of 1992; and
``(iii) include a description of any disposition and
demolition plan for the public housing units.
``(2) Extensions.--The Secretary may extend the 5-year
deadline described in paragraph (1) by not more than an
additional 5 years if the Secretary makes a determination
that the deadline is impracticable.
``(3) Determination of secretary.--
``(A) Failure to identify projects.--If the Secretary
determines, based on a plan submitted under this subsection,
that a public housing agency has failed to identify 1 or more
public housing projects that the Secretary determines should
have been identified under subsection (a), the Secretary may
designate the public housing projects to be removed from the
inventory of the public housing agency pursuant to this
section.
``(B) Erroneous identification of projects.--If the
Secretary determines, based on a plan submitted under this
subsection, that a public housing agency has identified 1 or
more public housing projects that should not have been
identified pursuant to subsection (a), the Secretary shall--
``(i) require the public housing agency to revise the plan
of the public housing agency under this subsection; and
``(ii) prohibit the removal of any such public housing
project from the inventory of the public housing agency under
this section.
``(d) Conversion to Tenant-Based Assistance.--
``(1) In general.--To the extent approved in advance in
appropriations Acts, the Secretary shall make authority
available to a public housing agency to provide assistance
under this Act to families residing in any public housing
project that is removed from the inventory of the public
housing agency and the annual contributions contract pursuant
to this section.
``(2) Plan requirements.--Each plan under subsection (c)
shall require the agency--
``(A) to notify each family residing in the public housing
project, consistent with any guidelines issued by the
Secretary governing such notifications, that--
``(i) the public housing project will be removed from the
inventory of the public housing agency;
``(ii) the demolition will not commence until each resident
residing in the public housing project is relocated; and
``(iii) each family displaced by such action will be
offered comparable housing--
``(I) that meets housing quality standards; and
``(II) which may include--
``(aa) tenant-based assistance;
``(bb) project-based assistance; or
``(cc) occupancy in a unit operated or assisted by the
public housing agency at a rental rate paid by the family
that is comparable to the rental rate applicable to the unit
from which the family is vacated;
``(B) to provide any necessary counseling for families
displaced by such action; and
``(C) to provide any actual and reasonable relocation
expenses for families displaced by such action.
``(e) Removal by Secretary.--The Secretary shall take
appropriate actions to ensure removal of any public housing
project identified under subsection (a) from the inventory of
a public housing agency, if the public housing agency fails
to adequately develop a plan under subsection (c) with
respect to that project, or fails to adequately implement
such plan in accordance with the terms of the plan.
``(f) Administration.--
``(1) In general.--The Secretary may require a public
housing agency to provide to the Secretary or to public
housing residents such information as the Secretary considers
to be necessary for the administration of this section.
``(2) Applicability of section 18.--Section 18 does not
apply to the demolition of public housing projects removed
from the inventory of the public housing agency under this
section.''.
(b) Conforming Amendment.--Section 202 of the Departments
of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C.
1437l note) is repealed.
SEC. 121. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.
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:
``SEC. 32. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.
``(a) General Authorization.--The Secretary may, upon such
terms and conditions as the Secretary may prescribe,
authorize a public housing agency to mortgage or otherwise
grant a security interest in any public
[[Page S10083]]
housing project or other property of the public housing
agency.
``(b) Terms and Conditions.--
``(1) Criteria for approval.--In making any authorization
under subsection (a), the Secretary may consider--
``(A) the ability of the public housing agency to use the
proceeds of the mortgage or security interest for low-income
housing uses;
``(B) the ability of the public housing agency to make
payments on the mortgage or security interest; and
``(C) such other criteria as the Secretary may specify.
``(2) Terms and conditions of mortgages and security
interests obtained.--Each mortgage or security interest
granted under this section shall be--
``(A) for a term that--
``(i) is consistent with the terms of private loans in the
market area in which the public housing project or property
at issue is located; and
``(ii) does not exceed 30 years; and
``(B) subject to conditions that are consistent with the
conditions to which private loans in the market area in which
the subject project or other property is located are subject.
``(3) No federal liability.--No action taken under this
section shall result in any liability to the Federal
Government.''.
SEC. 122. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.
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:
``SEC. 33. SERVICES FOR PUBLIC HOUSING RESIDENTS.
``(a) In General.--To the extent provided in advance in
appropriations Acts, the Secretary may make grants to public
housing agencies on behalf of public housing residents, or
directly to resident management corporations, resident
councils, or resident organizations (including nonprofit
entities supported by residents), for the purposes of
providing a program of supportive services and resident
empowerment activities to assist public housing residents in
becoming economically self-sufficient.
``(b) Eligible Activities.--Grantees under this section may
use such amounts only for activities on or near the property
of the public housing agency or public housing project that
are designed to promote the self-sufficiency of public
housing residents, including activities relating to--
``(1) physical improvements to a public housing project in
order to provide space for supportive services for residents;
``(2) the provision of service coordinators or a congregate
housing services program for elderly disabled individuals,
nonelderly disabled individuals, or temporarily disabled
individuals;
``(3) the provision of services related to work readiness,
including education, job training and counseling, job search
skills, business development training and planning, tutoring,
mentoring, adult literacy, computer access, personal and
family counseling, health screening, work readiness health
services, transportation, and child care;
``(4) economic and job development, including employer
linkages and job placement, and the start-up of resident
microenterprises, community credit unions, and revolving loan
funds, including the licensing, bonding, and insurance needed
to operate such enterprises;
``(5) resident management activities and resident
participation activities; and
``(6) other activities designed to improve the economic
self-sufficiency of residents.
``(c) Funding Distribution.--
``(1) In general.--Except for amounts provided under
subsection (d), the Secretary may distribute amounts made
available under this section on the basis of a competition or
a formula, as appropriate.
``(2) Factors for distribution.--Factors for distribution
under paragraph (1) shall include--
``(A) the demonstrated capacity of the applicant to carry
out a program of supportive services or resident empowerment
activities;
``(B) the ability of the applicant to leverage additional
resources for the provision of services; and
``(C) the extent to which the grant will result in a high
quality program of supportive services or resident
empowerment activities.
``(d) Matching Requirement.--The Secretary may not make any
grant under this section to any applicant unless the
applicant supplements each dollar made available under this
section with funds from sources other than this section, in
an amount equal to not less than 25 percent of the grant
amount, including--
``(1) funds from other Federal sources;
``(2) funds from any State or local government sources;
``(3) funds from private contributions; and
``(4) the value of any in-kind services or administrative
costs provided to the applicant.
``(e) Funding for Resident Councils.--Of amounts
appropriated for activities under this section, not less than
25 percent shall be provided directly to resident councils,
resident organizations, and resident management
corporations.''.
SEC. 123. PROHIBITION ON USE OF AMOUNTS.
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:
``SEC. 34. PROHIBITION ON USE OF AMOUNTS.
``None of the amounts made available to the Department of
Housing and Urban Development to carry out this Act, that are
obligated to State or local governments, public housing
agencies, housing finance agencies, or other public or quasi-
public housing agencies, may be used to indemnify contractors
or subcontractors of the government or agency against costs
associated with judgments of infringement of intellectual
property rights.''.
SEC. 124. PET OWNERSHIP.
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:
``SEC. 35. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL
HOUSING.
``(a) Ownership Conditions.--
``(1) In general.--A resident of a dwelling unit in
federally assisted rental housing may own 1 or more common
household pets or have 1 or more common household pets
present in the dwelling unit of such resident, subject to the
reasonable requirements of the owner of the federally
assisted rental housing, if the resident maintains each pet
responsibly and in accordance with applicable State and local
public health, animal control, and animal anti-cruelty laws
and regulations.
``(2) Requirements.--The reasonable requirements described
in paragraph (1) may include--
``(A) requiring payment of a nominal fee, a pet deposit, or
both, by residents owning or having pets present, to cover
the reasonable operating costs to the project relating to the
presence of pets and to establish an escrow account for
additional costs not otherwise covered, respectively;
``(B) limitations on the number of animals in a unit, based
on unit size; and
``(C) prohibitions on--
``(i) certains breeds or types of animals that are
determined to be dangerous; and
``(ii) individual animals, based on certain factors,
including the size and weight of the animal.
``(b) Prohibition Against Discrimination.--No owner of
federally assisted rental housing may restrict or
discriminate against any person in connection with admission
to, or continued occupancy of, such housing by reason of the
ownership of common household pets by, or the presence of
such pets in the dwelling unit of, such person.
``(c) Definitions.--In this section:
``(1) Federally assisted rental housing.--The term
`federally assisted rental housing' means any public housing
project or any rental housing receiving project-based
assistance under--
``(A) the new construction and substantial rehabilitation
program under section 8(b)(2) of this Act (as in effect
before October 1, 1983);
``(B) the property disposition program under section 8(b);
``(C) the moderate rehabilitation program under section
8(e)(2) of this Act (as it existed prior to October 1, 1991);
``(D) section 23 of this Act (as in effect before January
1, 1975);
``(E) the rent supplement program under section 101 of the
Housing and Urban Development Act of 1965;
``(F) section 8 of this Act, following conversion from
assistance under section 101 of the Housing and Urban
Development Act of 1965; or
``(G) loan management assistance under section 8 of this
Act.
``(2) Owner.--The term `owner' means, with respect to
federally assisted rental housing, the entity or private
person, including a cooperative or public housing agency,
that has the legal right to lease or sublease dwelling units
in such housing (including a manager of such housing having
such right).
``(d) Regulations.--This section shall take effect upon the
date of the effectiveness of regulations issued by the
Secretary to carry out this section. Such regulations shall
be issued after notice and opportunity for public comment in
accordance with the procedure under section 553 of title 5,
United States Code, applicable to substantive rules
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of
such section).''.
SEC. 125. CITY OF INDIANAPOLIS FLEXIBLE GRANT DEMONSTRATION.
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:
``SEC. 36. CITY OF INDIANAPOLIS FLEXIBLE GRANT DEMONSTRATION.
``(a) Definitions.--In this section:
``(1) Covered housing assistance.--The term `covered
housing assistance' means--
``(A)(i) operating assistance under section 9 of the United
States Housing Act of 1937 (as in existence on the day before
the effective date of the Public Housing Reform and
Responsibility Act of 1997), modernization assistance under
section 14 of the United States Housing Act of 1937 (as in
existence on the day before the effective date of the Public
Housing Reform and Responsibility Act of 1997); and
``(ii) assistance for the certificate and voucher programs
under section 8 of the United States Housing Act of 1937 (as
in existence on the day before the effective date of the
Public Housing Reform and Responsibility Act of 1997);
``(B) assistance for public housing under the Capital and
Operating Funds established under section 9; and
``(C) tenant-based rental assistance under section 8.
``(2) City.--The term `City' means the city of
Indianapolis, Indiana.
``(b) Purpose.--The Secretary shall carry out a
demonstration program in accordance with this section under
which the City, in
[[Page S10084]]
coordination with the public housing agency of the City--
``(1) may receive and combine program allocations of
covered housing assistance; and
``(2) shall have the flexibility to design creative
approaches for providing and administering Federal housing
assistance that--
``(A) provide incentives to low-income families with
children whose head of the household is employed, seeking
employment, or preparing for employment by participating in a
job training or educational program, or any program that
otherwise assists individuals in obtaining employment and
attaining economic self-sufficiency;
``(B) reduce costs of Federal housing assistance and
achieve greater cost-effectiveness in Federal housing
assistance expenditures;
``(C) increase the stock of affordable housing and housing
choices for low-income families;
``(D) increase homeownership among low-income families; and
``(E) achieve such other purposes with respect to low-
income families, as determined by the City in coordination
with the public housing agency.
``(c) Program Allocation.--In each fiscal year, the amount
made available to the City under this section shall be equal
to the sum of the amounts that would otherwise be made
available to the public housing agency of the City under the
provisions of this Act described in subparagraphs (A) through
(C) of subsection (a)(1).
``(d) Applicability of Program Requirements.--
``(1) In general.--In each fiscal year of the demonstration
program under this section, amounts made available to the
City under this section shall be subject to the same terms
and conditions as those amounts would be subject if made
available under the provisions of this Act pursuant to which
covered housing assistance is otherwise made available to the
public housing agency of the City under this Act, except
that--
``(A) the Secretary may waive any such term or condition to
the extent that the Secretary determines such action to be
appropriate to carry out the demonstration program under this
section; and
``(B) the City may combine the amounts made available and
use the amounts for any activity eligible under each such
program under section 8 or 9.
``(2) Number of families assisted.--In carrying out the
demonstration program under this section, the City shall
assist substantially the same total number of eligible low-
income families as would have otherwise been served by the
public housing agency of the City.
``(3) Protection of recipients.--Nothing is this section
shall be construed to authorize the termination of assistance
to any recipient of assistance under this Act before the date
of enactment of this section, as a result of the
implementation of the demonstration program under this
section.
``(e) Plan Requirement.--In carrying out this section, the
Secretary may establish a streamlined public housing agency
plan and planning process for the City in accordance with
section 5A.
``(f) Effect on Ability To Compete for Other Categorical
Programs.--Nothing in this section shall be construed to
affect the ability of the City (or the public housing agency
of the City) to compete or otherwise apply for or receive
assistance under any other housing assistance program
administered by the Secretary.
``(g) Performance Standards.--The Secretary and the City
shall collectively establish standards for evaluating the
performance of the City in meeting the goals set forth in
subsection (b) including--
``(1) moving dependent low-income families to economic
self-sufficiency;
``(2) reducing the per-family cost of providing housing
assistance;
``(3) expanding the stock of affordable housing and housing
choices of low-income families;
``(4) increasing the number of homeownership opportunities
for low-income families; and
``(5) any other performance goals established by the
Secretary and the City.
``(h) Records and Reports.--
``(1) Records.--The City shall maintain such records as the
Secretary may require in order to--
``(A) document the amounts received by the City under this
Act, and the disposition of those amounts under the
demonstration program under this section;
``(B) ensure compliance by the City with this section; and
``(C) evaluate the performance of the City under the
demonstration program under this section.
``(2) Reports.--
``(A) In general.--The City shall annually submit to the
Secretary a report in a form and at a time specified by the
Secretary.
``(B) Contents.--Each report under this paragraph shall
include--
``(i) documentation of the use of funds made available to
the City under this section;
``(ii) such data as the Secretary may request to assist the
Secretary in evaluating the demonstration program under this
section; and
``(iii) a description and analysis of the effect of
assisted activities in addressing the objectives of the
demonstration program under this section.
``(3) Access to documents by the secretary and comptroller
general.--The Secretary and the Comptroller General of the
United States, or any duly authorized representative of the
Secretary or the Comptroller General, shall have access for
the purpose of audit and examination to any books, documents,
papers, and records maintained by the City that relate to the
demonstration program under this section.
``(i) Performance Review and Evaluation.--
``(1) Performance review.--Based on the performance
standards established under subsection (g), the Secretary
shall monitor the performance of the City in providing
assistance under this section.
``(2) Status report.--Not later than 60 days after the last
day of the second year of the demonstration program under
this section, the Secretary shall submit to Congress an
interim report on the status of the demonstration program and
the progress of the City in achieving the purposes of the
demonstration program under subsection (b).
``(3) Termination and Evaluation.--
``(A) Termination.--The demonstration program under this
section shall terminate not less than 2 and not more than 5
years after the date on which the program is commenced under
this section.
``(B) Evaluation.--Not later than 6 months after the
termination of the demonstration program under this section,
the Secretary shall submit to Congress a final report, which
shall include--
``(i) an evaluation the effectiveness of the activities
carried out under the demonstration program under this
section; and
``(ii) any findings and recommendations of the Secretary
for any appropriate legislative action.''.
TITLE II--SECTION 8 RENTAL ASSISTANCE
SEC. 201. MERGER OF THE CERTIFICATE AND VOUCHER PROGRAMS.
(a) In General.--Section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)) is amended to read as
follows:
``(o) Voucher Program.--
``(1) Payment standard.--
``(A) In general.--The Secretary may provide assistance to
public housing agencies for tenant-based assistance using a
payment standard established in accordance with subparagraph
(B). The payment standard shall be used to determine the
monthly assistance that may be paid for any family, as
provided in paragraph (2).
``(B) Establishment of payment standard.--Except as
provided under subparagraph (D), the payment standard shall
not exceed 110 percent of the fair market rental established
under subsection (c) and shall be not less than 90 percent of
that fair market rental.
``(C) Set-aside.--The Secretary may set aside not more than
5 percent of the budget authority available under this
subsection as an adjustment pool. The Secretary shall use
amounts in the adjustment pool to make adjusted payments to
public housing agencies under subparagraph (A), to ensure
continued affordability, if the Secretary determines that
additional assistance for such purpose is necessary, based on
documentation submitted by a public housing agency.
``(D) Approval.--The Secretary may require a public housing
agency to submit the payment standard of the public housing
agency to the Secretary for approval, if the payment standard
is less than 90 percent of the fair market rent or exceeds
110 percent of the fair market rent.
``(E) Review.--The Secretary--
``(i) shall monitor rent burdens and review any payment
standard that results in a significant percentage of the
families occupying units of any size paying more than 30
percent of adjusted income for rent; and
``(ii) may require a public housing agency to modify the
payment standard of the public housing agency based on the
results of that review.
``(2) Amount of monthly assistance payment.--
``(A) Families receiving tenant-based assistance; rent does
not exceed payment standard.--For a family receiving tenant-
based assistance under this title, if the rent for that
family (including the amount allowed for tenant-paid
utilities) does not exceed the payment standard established
under paragraph (1), the monthly assistance payment to that
family shall be equal to the amount by which the rent exceeds
the greatest of the following amounts, rounded to the nearest
dollar:
``(i) Thirty percent of the monthly adjusted income of the
family.
``(ii) Ten percent of the monthly income of the family.
``(iii) If the family is receiving payments for welfare
assistance from a public agency and a part of those payments,
adjusted in accordance with the actual housing costs of the
family, is specifically designated by that agency to meet the
housing costs of the family, the portion of those payments
that is so designated.
``(B) Families receiving tenant-based assistance; rent
exceeds payment standard.--For a family receiving tenant-
based assistance under this title, if the rent for that
family (including the amount allowed for tenant-paid
utilities) exceeds the payment standard established under
paragraph (1), the monthly assistance payment to that family
shall be equal to the amount by
[[Page S10085]]
which the applicable payment standard exceeds the greatest of
the following amounts, rounded to the nearest dollar:
``(i) Thirty percent of the monthly adjusted income of the
family.
``(ii) Ten percent of the monthly income of the family.
``(iii) If the family is receiving payments for welfare
assistance from a public agency and a part of those payments,
adjusted in accordance with the actual housing costs of the
family, is specifically designated by that agency to meet the
housing costs of the family, the portion of those payments
that is so designated.
``(C) Families receiving project-based assistance.--For a
family receiving project-based assistance under this title,
the rent that the family is required to pay shall be
determined in accordance with section 3(a)(1), and the amount
of the housing assistance payment shall be determined in
accordance with subsection (c)(3) of this section.
``(3) Forty percent limit.--At the time a family initially
receives tenant-based assistance under this title with
respect to any dwelling unit, the total amount that a family
may be required to pay for rent may not exceed 40 percent of
the monthly adjusted income of the family.
``(4) Eligible families.--At the time a family initially
receives assistance under this subsection, a family shall
qualify as--
``(A) a very low-income family;
``(B) a family previously assisted under this title;
``(C) a low-income family that meets eligibility criteria
specified by the public housing agency;
``(D) a family that qualifies to receive a voucher in
connection with a homeownership program approved under title
IV of the Cranston-Gonzalez National Affordable Housing Act;
or
``(E) a family that qualifies to receive a voucher under
section 223 or 226 of the Low-Income Housing Preservation and
Resident Homeownership Act of 1990.
``(5) Annual review of family income.--Each public housing
agency shall, not less frequently than annually, conduct a
review of the family income of each family receiving
assistance under this subsection.
``(6) Selection of families.--
``(A) In general.--Each public housing agency may establish
local preferences consistent with the public housing agency
plan submitted by the public housing agency under section 5A,
including a preference for families residing in public
housing who are victims of a crime of violence (as that term
is defined in section 16 of title 18, United States Code)
that has been reported to an appropriate law enforcement
agency.
``(B) Selection of tenants.--The selection of tenants shall
be made by the owner of the dwelling unit, subject to the
annual contributions contract between the Secretary and the
public housing agency.
``(7) Lease.--Each housing assistance payment contract
entered into by the public housing agency and the owner of a
dwelling unit--
``(A) shall provide that the screening and selection of
families for those units shall be the function of the owner;
``(B) shall provide that the lease between the tenant and
the owner shall be for a term of not less than 1 year, except
that the public housing agency may approve a shorter term for
an initial lease between the tenant and the dwelling unit
owner if the public housing agency determines that such
shorter term would improve housing opportunities for the
tenant and if such shorter term is considered to be an
acceptable local market practice;
``(C) shall provide that the dwelling unit owner shall
offer leases to tenants assisted under this subsection that--
``(i) are in a standard form used in the locality by the
dwelling unit owner; and
``(ii) contain terms and conditions that--
``(I) are consistent with State and local law; and
``(II) apply generally to tenants in the property who are
not assisted under this section;
``(D) shall provide that the dwelling unit owner may not
terminate the tenancy of any person assisted under this
subsection during the term of a lease that meets the
requirements of this section unless the owner determines, on
the same basis and in the same manner as would apply to a
tenant in the property who does not receive assistance under
this subsection, that--
``(i) the tenant has committed a serious or repeated
violation of the terms and conditions of the lease;
``(ii) the tenant has violated applicable Federal, State,
or local law; or
``(iii) other good cause for termination of the tenancy
exists;
``(E) shall provide that any termination of tenancy under
this subsection shall be preceded by the provision of written
notice by the owner to the tenant specifying the grounds for
that action, and any relief shall be consistent with
applicable State and local law; and
``(F) may include any addenda appropriate to set forth the
provisions of this title.
``(8) Inspection of units by public housing agencies.--
``(A) In general.--Except as provided in subparagraph (B),
for each dwelling unit for which a housing assistance payment
contract is established under this subsection, the public
housing agency shall--
``(i) inspect the unit before any assistance payment is
made to determine whether the dwelling unit meets housing
quality standards for decent safe housing established--
``(I) by the Secretary for purposes of this subsection; or
``(II) by local housing codes or by codes adopted by public
housing agencies that--
``(aa) meet or exceed housing quality standards; and
``(bb) do not severely restrict housing choice; and
``(ii) make not less than annual inspections during the
contract term.
``(B) Leasing of units owned by public housing agency.--If
an eligible family assisted under this subsection leases a
dwelling unit (other than public housing) that is owned by a
public housing agency administering assistance under this
subsection, the Secretary shall require the unit of general
local government, or another entity approved by the
Secretary, to make inspections and rent determinations as
required by this paragraph.
``(9) Vacated units.--If an assisted family vacates a
dwelling unit for which rental assistance is provided under a
housing assistance contract before the expiration of the term
of the lease for the unit, rental assistance pursuant to such
contract may not be provided for the unit after the month
during which the unit was vacated.
``(10) Rent.--
``(A) Reasonable market rent.--The rent for dwelling units
for which a housing assistance payment contract is
established under this subsection shall be reasonable in
comparison with rents charged for comparable dwelling units
in the private, unassisted, local market, or for comparable
dwelling units that are in the assisted, local market.
``(B) Negotiated rent.--A public housing agency shall, at
the request of a family receiving tenant-based assistance
under this subsection, assist that family in negotiating a
reasonable rent with a dwelling unit owner. A public housing
agency shall review the rent for a unit under consideration
by the family (and all rent increases for units under lease
by the family) to determine whether the rent (or rent
increase) requested by the owner is reasonable. If a public
housing agency determines that the rent (or rent increase)
for a dwelling unit is not reasonable, the public housing
agency shall not make housing assistance payments to the
owner under this subsection with respect to that unit.
``(C) Units exempt from local rent control.--If a dwelling
unit for which a housing assistance payment contract is
established under this subsection is exempt from local rent
control provisions during the term of that contract, the rent
for that unit shall be reasonable in comparison with other
units in the market area that are exempt from local rent
control provisions.
``(D) Timely payments.--Each public housing agency shall
make timely payment of any amounts due to a dwelling unit
owner under this subsection. The housing assistance payment
contract between the owner and the public housing agency may
provide for penalties for the late payment of amounts due
under the contract, which shall be imposed on the public
housing agency in accordance with generally accepted
practices in the local housing market.
``(E) Penalties.--Unless otherwise authorized by the
Secretary, each public housing agency shall pay any penalties
from administrative fees collected by the public housing
agency, except that no penalty shall be imposed if the late
payment is due to factors that the Secretary determines are
beyond the control of the public housing agency.
``(11) Manufactured housing.--
``(A) In general.--A public housing agency may make
assistance payments in accordance with this subsection on
behalf of a family that utilizes a manufactured home as a
principal place of residence. Such payments may be made for
the rental of the real property on which the manufactured
home owned by any such family is located.
``(B) Rent calculation.--
``(i) Charges included.--For assistance pursuant to this
paragraph, the rent for the space on which a manufactured
home is located and with respect to which assistance payments
are to be made shall include maintenance and management
charges and tenant-paid utilities.
``(ii) Payment standard.--The public housing agency shall
establish a payment standard for the purpose of determining
the monthly assistance that may be paid for any family under
this paragraph. The payment standard may not exceed an amount
approved or established by the Secretary.
``(iii) Monthly assistance payment.--The monthly assistance
payment under this paragraph shall be determined in
accordance with paragraph (2).
``(12) Contract for assistance payments.--
``(A) In general.--If the Secretary enters into an annual
contributions contract under this subsection with a public
housing agency pursuant to which the public housing agency
will enter into a housing assistance payment contract with
respect to an existing structure under this subsection--
``(i) the housing assistance payment contract may not be
attached to the structure unless the owner agrees to
rehabilitate or newly construct the structure other than with
assistance under this Act, and otherwise complies with this
section; and
``(ii) the public housing agency may approve a housing
assistance payment contract for such existing structure for
not more than
[[Page S10086]]
15 percent of the funding available for tenant-based
assistance administered by the public housing agency under
this section.
``(B) Extension of contract term.--In the case of a housing
assistance payment contract that applies to a structure under
this paragraph, a public housing agency may enter into a
contract with the owner, contingent upon the future
availability of appropriated funds for the purpose of
renewing expiring contracts for assistance payments, as
provided in appropriations Acts, to extend the term of the
underlying housing assistance payment contract for such
period as the Secretary determines to be appropriate to
achieve long-term affordability of the housing. The contract
shall obligate the owner to have such extensions of the
underlying housing assistance payment contract accepted by
the owner and the successors in interest of the owner.
``(C) Rent calculation.--For project-based assistance under
this paragraph, housing assistance payment contracts shall
establish rents and provide for rent adjustments in
accordance with subsection (c).
``(D) Adjusted rents.--With respect to rents adjusted under
this paragraph--
``(i) the adjusted rent for any unit shall be reasonable in
comparison with rents charged for comparable dwelling units
in the private, unassisted, local market, or for comparable
dwelling units that are in the assisted local market; and
``(ii) the provisions of subsection (c)(2)(C) do not apply.
``(13) Inapplicability to tenant-based assistance.--
Subsection (c) does not apply to tenant-based assistance
under this subsection.
``(14) Homeownership option.--
``(A) In general.--A public housing agency providing
assistance under this subsection may, at the option of the
agency, provide assistance for homeownership under subsection
(y).
``(B) Alternative administration.--A public housing agency
may contract with a nonprofit organization to administer a
homeownership program under subsection (y).
``(15) Rental vouchers for relocation of witnesses and
victims of crime.--
``(A) In general.--Of amounts made available for assistance
under this subsection in each fiscal year, the Secretary, in
consultation with the Inspector General, shall make available
such sums as may be necessary for the relocation of witnesses
in connection with efforts to combat crime in public and
assisted housing pursuant to requests from law enforcement or
prosecution agencies.
``(B) Victims of crime.--
``(i) In general.--Of amounts made available for assistance
under this section in each fiscal year, the Secretary shall
make available such sums as may be necessary for the
relocation of families residing in public housing who are
victims of a crime of violence (as that term is defined in
section 16 of title 18, United States Code) that has been
reported to an appropriate law enforcement agency.
``(ii) Notice.--A public housing agency that receives
amounts under this subparagraph shall establish procedures
for providing notice of the availability of that assistance
to families that may be eligible for that assistance.''.
(b) Conforming Amendment.--Section 8(f)(6) of the United
States Housing Act (42 U.S.C. 1437f(f)(6)) is amended by
striking ``(d)(2)'' and inserting ``(o)(12)''.
SEC. 202. REPEAL OF FEDERAL PREFERENCES.
(a) Section 8 Existing and Moderate Rehabilitation.--
Section 8(d)(1)(A) of the United States Housing Act of 1937
(42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows:
``(A) the selection of tenants shall be the function of the
owner, subject to the annual contributions contract between
the Secretary and the agency, except that with respect to the
certificate and moderate rehabilitation programs only, for
the purpose of selecting families to be assisted, the public
housing agency may establish local preferences, consistent
with the public housing agency plan submitted by the public
housing agency under section 5A;''.
(b) Section 8 New Construction and Substantial
Rehabilitation.--
(1) Repeal.--Section 545(c) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f note) is
amended to read as follows:
``(c) [Reserved.]''.
(2) Prohibition.--The provisions of section 8(e)(2) of the
United States Housing Act of 1937, as in existence on the day
before October 1, 1983, that require tenant selection
preferences shall not apply with respect to--
(A) housing constructed or substantially rehabilitated
pursuant to assistance provided under section 8(b)(2) of the
United States Housing Act of 1937, as in existence on the day
before October 1, 1983; or
(B) projects financed under section 202 of the Housing Act
of 1959, as in existence on the day before the date of
enactment of the Cranston-Gonzalez National Affordable
Housing Act.
(c) Rent Supplements.--Section 101(k) of the Housing and
Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is amended
to read as follows:
``(k) [Reserved.]''.
(d) Conforming Amendments.--
(1) United states housing act of 1937.--The United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
(A) in section 6(o), by striking ``preference rules
specified in'' and inserting ``written selection criteria
established pursuant to'';
(B) in section 8(d)(2)(A), by striking the last sentence;
and
(C) in section 8(d)(2)(H), by striking ``Notwithstanding
subsection (d)(1)(A)(i), an'' and inserting ``An''.
(2) Cranston-gonzalez national affordable housing act.--The
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704 et seq.) is amended--
(A) in section 455(a)(2)(D)(iii), by striking ``would
qualify for a preference under'' and inserting ``meet the
written selection criteria established pursuant to''; and
(B) in section 522(f)(6)(B), by striking ``any preferences
for such assistance under section 8(d)(1)(A)(i)'' and
inserting ``the written selection criteria established
pursuant to section 8(d)(1)(A)''.
(3) Low-income housing preservation and resident
homeownership act of 1990.--The second sentence of section
226(b)(6)(B) of the Low-Income Housing Preservation and
Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B))
is amended by striking ``requirement for giving preferences
to certain categories of eligible families under'' and
inserting ``written selection criteria established pursuant
to''.
(4) Housing and community development act of 1992.--Section
655 of the Housing and Community Development Act of 1992 (42
U.S.C. 13615) is amended by striking ``preferences for
occupancy'' and all that follows before the period at the end
and inserting ``selection criteria established by the owner
to elderly families according to such written selection
criteria, and to near-elderly families according to such
written selection criteria, respectively''.
(5) References in other law.--Any reference in any Federal
law other than any provision of any law amended by paragraphs
(1) through (5) of this subsection or section 201 to the
preferences for assistance under section 8(d)(1)(A)(i) or
8(o)(3)(B) of the United States Housing Act of 1937, as those
sections existed on the day before the effective date of this
title, shall be considered to refer to the written selection
criteria established pursuant to section 8(d)(1)(A) or
8(o)(6)(A), respectively, of the United States Housing Act of
1937, as amended by this subsection and section 201 of this
Act.
SEC. 203. PORTABILITY.
Section 8(r) of the United States Housing Act of 1937 (42
U.S.C. 1437f(r)) is amended--
(1) in paragraph (1)--
(A) by striking ``assisted under subsection (b) or (o)''
and inserting ``receiving tenant-based assistance under
subsection (o)''; and
(B) by striking ``the same State'' and all that follows
before the semicolon and inserting ``any area in which a
program is being administered under this section'';
(2) in paragraph (2), by striking the last sentence;
(3) in paragraph (3)--
(A) by striking ``(b) or''; and
(B) by adding at the end the following: ``The Secretary
shall establish procedures for the compensation of public
housing agencies that issue vouchers to families that move
into or out of the jurisdiction of the public housing agency
under portability procedures. The Secretary may reserve
amounts available for assistance under subsection (o) to
compensate those public housing agencies.''; and
(4) by adding at the end the following:
``(5) Lease violations.--A family may not receive a voucher
from a public housing agency and move to another jurisdiction
under the tenant-based assistance program if the family has
moved out of the assisted dwelling unit of the family in
violation of a lease.''.
SEC. 204. LEASING TO VOUCHER HOLDERS.
Section 8(t) of the United States Housing Act of 1937 (42
U.S.C. 1437f(t)) is amended to read as follows:
``(t) [Reserved.]''.
SEC. 205. HOMEOWNERSHIP OPTION.
(a) In general.--Section 8(y) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(y)) is amended--
(1) in paragraph (1)--
(A) by striking ``A family receiving'' and all that follows
through ``if the family'' and inserting the following: ``A
public housing agency providing tenant-based assistance on
behalf of an eligible family under this section may provide
assistance for an eligible family that purchases a dwelling
unit (including a unit under a lease-purchase agreement) that
will be owned by 1 or more members of the family, and will be
occupied by the family, if the family'';
(B) in subparagraph (A), by inserting before the semicolon
``, or owns or is acquiring shares in a cooperative''; and
(C) in subparagraph (B)--
(i) by striking ``(i) participates'' and all that follows
through ``(ii) demonstrates'' and inserting ``demonstrates'';
and
(ii) by inserting ``, except that the Secretary may provide
for the consideration of public assistance in the case of an
elderly family or a disabled family'' after ``other than
public assistance'';
(2) by striking paragraph (2) and inserting the following:
``(2) Determination of amount of assistance.--
``(A) Monthly expenses do not exceed payment standard.--If
the monthly homeownership expenses, as determined in
accordance with requirements established by the Secretary, do
not exceed the payment standard, the monthly assistance
payment shall be the amount by which the homeownership
[[Page S10087]]
expenses exceed the highest of the following amounts, rounded
to the nearest dollar:
``(i) Thirty percent of the monthly adjusted income of the
family.
``(ii) Ten percent of the monthly income of the family.
``(iii) If the family is receiving payments for welfare
assistance from a public agency, and a portion of those
payments, adjusted in accordance with the actual housing
costs of the family, is specifically designated by that
agency to meet the housing costs of the family, the portion
of those payments that is so designated.
``(B) Monthly expenses exceed payment standard.--If the
monthly homeownership expenses, as determined in accordance
with requirements established by the Secretary, exceed the
payment standard, the monthly assistance payment shall be the
amount by which the applicable payment standard exceeds the
highest of the following amounts, rounded to the nearest
dollar:
``(i) Thirty percent of the monthly adjusted income of the
family.
``(ii) Ten percent of the monthly income of the family.
``(iii) If the family is receiving payments for welfare
assistance from a public agency and a part of those payments,
adjusted in accordance with the actual housing costs of the
family, is specifically designated by that agency to meet the
housing costs of the family, the portion of those payments
that is so designated.'';
(3) by striking paragraphs (3) and (4) and inserting the
following:
``(3) Inspections and contract conditions.--
``(A) In general.--Each contract for the purchase of a unit
to be assisted under this section shall--
``(i) provide for pre-purchase inspection of the unit by an
independent professional; and
``(ii) require that any cost of necessary repairs be paid
by the seller.
``(B) Annual inspections not required.--The requirement
under subsection (o)(8)(A)(ii) for annual inspections shall
not apply to units assisted under this section.
``(4) Other authority of the secretary.--The Secretary
may--
``(A) limit the term of assistance for a family assisted
under this subsection; and
``(B) modify the requirements of this subsection as the
Secretary determines to be necessary to make appropriate
adaptations for lease-purchase agreements.'';
(4) by striking paragraph (5); and
(5) by redesignating paragraphs (6) through (8) as
paragraphs (5) through (7), respectively.
(b) Demonstration.--
(1) In general.--With the consent of the affected public
housing agencies, the Secretary may carry out (or contract
with 1 or more entities to carry out) a demonstration program
under section 8(y) of the United States Housing Act of 1937
(42 U.S.C. 1437f(y)) to expand homeownership opportunities
for low-income families.
(2) Report.--The Secretary shall report annually to
Congress on activities conducted under this subsection.
SEC. 206. LAW ENFORCEMENT AND SECURITY PERSONNEL IN PUBLIC
HOUSING.
Section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f) is amended by adding at the end the following:
``(cc) Law Enforcement and Security Personnel.--
``(1) In general.--Notwithstanding any other provision of
this Act, in the case of assistance attached to a structure,
for the purpose of increasing security for the residents of a
public housing project, an owner may admit, and assistance
may be provided to, police officers and other security
personnel who are not otherwise eligible for assistance under
the Act).
``(2) Rent requirements.--With respect to any assistance
provided by an owner under this subsection, the Secretary
may--
``(A) permit the owner to establish such rent requirements
and other terms and conditions of occupancy that the
Secretary considers to be appropriate; and
``(B) require the owner to submit an application for those
rent requirements, which application shall include such
information as the Secretary, in the discretion of the
Secretary, determines to be necessary.''.
SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Lower Income Housing Assistance.--Section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) is
amended--
(1) in subsection (a), by striking the second and third
sentences;
(2) in subsection (b)--
(A) in the subsection heading, by striking ``Rental
Certificates and''; and
(B) in the first undesignated paragraph--
(i) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(ii) by striking the second sentence;
(3) in subsection (c)--
(A) in paragraph (3)--
(i) by striking ``(A)''; and
(ii) by striking subparagraph (B);
(B) in the first sentence of paragraph (4), by striking
``or by a family that qualifies to receive'' and all that
follows through ``1990'';
(C) by striking paragraph (5) and redesignating paragraph
(6) as paragraph (5);
(D) by striking paragraph (7) and redesignating paragraphs
(8) through (10) as paragraphs (6) through (8), respectively;
(E) effective on October 1, 1997, in paragraph (7), as
redesignated, by striking ``housing certificates or vouchers
under subsection (b) or'' and inserting ``a voucher under
subsection''; and
(F) in paragraph (8), as redesignated, by striking ``(9)''
and inserting ``(7)'';
(4) in subsection (d)--
(A) in paragraph (1)(B)(iii), by striking ``drug-related
criminal activity on or near such premises'' and inserting
``violent or drug-related criminal activity on or off such
premises, or any activity resulting in a felony conviction'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking the third sentence and
all that follows through the end of the subparagraph; and
(ii) by striking subparagraphs (B) through (E) and
redesignating subparagraphs (F) through (H) as subparagraphs
(B) through (D), respectively;
(5) in subsection (f)--
(A) in paragraph (6), by striking ``(d)(2)'' and inserting
``(o)(11)''; and
(B) in paragraph (7)--
(i) by striking ``(b) or''; and
(ii) by inserting before the period the following: ``and
that provides for the eligible family to select suitable
housing and to move to other suitable housing'';
(6) by striking subsection (j) and inserting the following:
``(j) [Reserved.]'';
(7) by striking subsection (n) and inserting the following:
``(n) [Reserved.]'';
(8) in subsection (q)--
(A) in the first sentence of paragraph (1), by striking
``certificate and housing voucher programs under subsections
(b) and (o)'' and inserting ``voucher program under this
section'';
(B) in paragraph (2)(A)(i), by striking ``certificate and
housing voucher programs under subsections (b) and (o)'' and
inserting ``voucher program under this section''; and
(C) in paragraph (2)(B), by striking ``certificate and
housing voucher programs under subsections (b) and (o)'' and
inserting ``voucher program under this section'';
(9) in subsection (u)--
(A) in paragraph (2), by striking ``, certificates''; and
(B) by striking ``certificates or'' each place that term
appears; and
(10) in subsection (x)(2), by striking ``housing
certificate assistance'' and inserting ``tenant-based
assistance''.
(b) Public Housing Homeownership and Management
Opportunities.--Section 21(b)(3) of the United States Housing
Act of 1937 (42 U.S.C. 1437s(b)(3)) is amended--
(1) in the first sentence, by striking ``(at the option of
the family) a certificate under section 8(b)(1) or a housing
voucher under section 8(o)'' and inserting ``tenant-based
assistance under section 8''; and
(2) by striking the second sentence.
(c) Documentation of Excessive Rent Burdens.--Section
550(b) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 1437f note) is amended--
(1) in paragraph (1), by striking ``assisted under the
certificate and voucher programs established'' and inserting
``receiving tenant-based assistance'';
(2) in the first sentence of paragraph (2)--
(A) by striking ``, for each of the certificate program and
the voucher program'' and inserting ``for the tenant-based
assistance under section 8''; and
(B) by striking ``participating in the program'' and
inserting ``receiving tenant-based assistance''; and
(3) in paragraph (3), by striking ``assistance under the
certificate or voucher program'' and inserting ``tenant-based
assistance under section 8 of the United States Housing Act
of 1937''.
(d) Grants for Community Residences and Services.--Section
861(b)(1)(D) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12910(b)(1)(D)) is amended by striking
``certificates or vouchers'' and inserting ``assistance''.
(e) Section 8 Certificates and Vouchers.--Section 931 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437c note) is amended by striking ``assistance under
the certificate and voucher programs under sections 8(b) and
(o) of such Act'' and inserting ``tenant-based assistance
under section 8 of the United States Housing Act of 1937''.
(f) Assistance for Displaced Residents.--Section 223(a) of
the Housing and Community Development Act of 1987 (12 U.S.C.
4113(a)) is amended by striking ``assistance under the
certificate and voucher programs under sections 8(b) and
8(o)'' and inserting ``tenant-based assistance under section
8''.
(g) Rural Housing Preservation Grants.--Section 533(a) of
the Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in
the second sentence by striking ``assistance payments as
provided by section 8(o)'' and inserting ``tenant-based
assistance as provided under section 8''.
(h) Repeal of Moving to Opportunities for Fair Housing
Demonstration.--Section 152 of the Housing and Community
Development Act of 1992 (42 U.S.C. 1437f note) is repealed.
(i) Preferences for Elderly Families and Persons.--Section
655 of the Housing and Community Development Act of 1992 (42
U.S.C. 13615) is amended by striking ``the first sentence of
section 8(o)(3)(B)'' and inserting ``section 8(o)(6)(A)''.
(j) Assistance for Troubled Multifamily Housing Projects.--
Section 201(m)(2)(A) of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended
by striking ``section 8(b)(1)'' and inserting ``section 8''.
[[Page S10088]]
(k) Management and Disposition of Multifamily Housing
Projects.--Section 203(g)(2) of the Housing and Community
Development Amendments of 1978 (12 U.S.C. 1701z-11(g)(2)) is
amended by striking ``8(o)(3)(B)'' and inserting
``8(o)(6)(A)''.
SEC. 208. IMPLEMENTATION.
In accordance with the negotiated rulemaking procedures set
forth in subchapter III of chapter 5 of title 5, United
States Code, the Secretary shall issue such regulations as
may be necessary to implement the amendments made by this
title after notice and opportunity for public comment.
SEC. 209. DEFINITION.
In this title, the term ``public housing agency'' has the
same meaning as section 3 of the United States Housing Act of
1937, except that such term shall also include any other
nonprofit entity serving more than 1 local government
jurisdiction that was administering the section 8 tenant-
based assistance program pursuant to a contract with the
Secretary or a public housing agency prior to the date of
enactment of this Act.
SEC. 210. EFFECTIVE DATE.
(a) In General.--The amendments made by this title shall
become effective not later than 1 year after the date of
enactment of this Act.
(b) Conversion Assistance.--
(1) In general.--The Secretary may provide for the
conversion of assistance under the certificate and voucher
programs under subsections (b) and (o) of section 8 of the
United States Housing Act of 1937, as those sections existed
on the day before the effective date of the amendments made
by this title, to the voucher program established by the
amendments made by this title.
(2) Continued applicability.--The Secretary may apply the
provisions of the United States Housing Act of 1937, or any
other provision of law amended by this title, as those
provisions existed on the day before the effective date of
the amendments made by this title, to assistance obligated by
the Secretary before that effective date for the certificate
or voucher program under section 8 of the United States
Housing Act of 1937, if the Secretary determines that such
action is necessary for simplification of program
administration, avoidance of hardship, or other good cause.
SEC. 211. RECAPTURE AND REUSE OF ANNUAL CONTRIBUTION CONTRACT
PROJECT RESERVES UNDER THE TENANT-BASED
ASSISTANCE PROGRAM.
Section 8(d) of the United States Housing Act of 1937 is
amended by adding at the end the following:
``(5) Recapture and reuse of annual contribution contract
project reserves.--
``(A) Recapture.--To the extent that the Secretary
determines that the amount in the annual contribution
contract reserve account under a contract with a public
housing agency for tenant-based assistance under this section
is in excess of the amount needed by the public housing
agency, the Secretary shall recapture such excess amount.
``(B) Reuse.--The Secretary may hold any amounts under this
paragraph in reserve until needed to amend or renew an annual
contributions contract with any public housing agency.''.
TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING
SEC. 301. SCREENING OF APPLICANTS.
(a) Ineligibility Because of Past Evictions.--
(1) In general.--Any household or member of a household
evicted from federally assisted housing (as that term is
defined in section 305(1)) by reason of drug-related criminal
activity (as that term is defined in section 305(3)) or for
other serious violations of the terms or conditions of the
lease shall not be eligible for federally assisted housing--
(A) in the case of eviction by reason of drug-related
criminal activity, for a period of not less than 3 years from
the date of the eviction unless the evicted member of the
household successfully completes a rehabilitation program;
and
(B) for other evictions, for a reasonable period of time as
determined by the public housing agency or owner of the
federally assisted housing, as applicable.
(2) Waiver.--The requirements of subparagraphs (A) and (B)
of paragraph (1) may be waived if the circumstances leading
to eviction no longer exist.
(b) Ineligibility of Illegal Drug Users and Alcohol
Abusers.--
(1) In general.--Notwithstanding any other provision of
law, a public housing agency shall establish standards that
prohibit admission to the program or admission to federally
assisted housing for any household with a member--
(A) who the public housing agency determines is engaging in
the illegal use of a controlled substance; or
(B) with respect to whom the public housing agency
determines that it has reasonable cause to believe that such
household member's illegal use (or pattern of illegal use) of
a controlled substance, or abuse (or pattern of abuse) of
alcohol would interfere with the health, safety, or right to
peaceful enjoyment of the premises by other residents.
(2) Owners of federally assisted housing.--The Secretary
may require any owner of federally assisted housing to
establish admission standards under this subsection.
(3) Consideration of rehabilitation.--In determining
whether, pursuant to paragraph (1)(B), to deny admission to
the program or to federally assisted housing to any household
based on a pattern of illegal use of a controlled substance
or a pattern of abuse of alcohol by a household member, a
public housing agency may consider whether such household
member--
(A) has successfully completed a supervised drug or alcohol
rehabilitation program (as applicable) and is no longer
engaging in the illegal use of a controlled substance or
abuse of alcohol (as applicable);
(B) has otherwise been rehabilitated successfully and is no
longer engaging in the illegal use of a controlled substance
or abuse of alcohol (as applicable); or
(C) is participating in a supervised drug or alcohol
rehabilitation program (as applicable) and is no longer
engaging in the illegal use of a controlled substance or
abuse of alcohol (as applicable).
(c) Procedure for Receipt of Information From a Drug Abuse
Treatment Facility About the Current Illegal Use of a
Controlled Substance.--
(1) Definitions.--In this subsection:
(A) Drug abuse treatment facility.--The term ``drug abuse
treatment facility'' means--
(i) an entity other than a general medical care facility;
or
(ii) an identified unit within a general medical care
facility which holds itself out as providing, and provides,
diagnosis, treatment, or referral for treatment with respect
to the illegal use of a controlled substance.
(B) Controlled substance.--The term ``controlled
substance'' has the meaning given the term in section 102 of
the Controlled Substances Act (21 U.S.C. 802).
(C) Currently engaging in the illegal use of a controlled
substance.--The term ``currently engaging in the illegal use
of a controlled substance'' means the illegal use of a
controlled substance that occurred recently enough to justify
a reasonable belief that an applicant's illegal use of a
controlled substance is current or that continuing illegal
use of a controlled substance by the applicant is a real and
ongoing problem.
(2) Authority.--Notwithstanding any other provision of law
other than the Public Health Service Act (42 U.S.C. 201 et
seq.), a public housing agency may require each person who
applies for admission to public housing to sign 1 or more
forms of written consent authorizing the public housing
agency to receive information from a drug abuse treatment
facility that is solely related to whether the applicant is
currently engaging in the illegal use of a controlled
substance.
(3) Restrictions to protect the confidentiality of an
applicant's records.--
(A) Limitation on the kind and amount of information
requested on form of written consent.--In a form of written
consent, a public housing agency may request only whether the
drug abuse treatment facility has reasonable cause to believe
that the applicant is currently engaging in the illegal use
of a controlled substance.
(B) Records management.--Each public housing agency that
receives information under this subsection from a drug abuse
treatment facility shall establish and implement a system of
records management that ensures that any information received
by the public housing agency under this subsection--
(i) is maintained confidentially in accordance with section
543 of the Public Health Service Act (12 U.S.C. 290dd-2);
(ii) is not misused or improperly disseminated; and
(iii) is destroyed, as applicable--
(I) not later than 5 business days after the date on which
the public housing agency gives final approval for an
application for admission; or
(II) if the public housing agency denies the application
for admission, in a timely manner after the date on which the
statute of limitations for the commencement of a civil action
from the applicant based upon that denial of admission has
expired.
(C) Expiration of written consent.--In addition to the
requirements of subparagraph (B), an applicant's signed
written consent shall expire automatically after the public
housing agency has made a final decision to either approve or
deny the applicant's application for admittance to public
housing.
(4) Restrictions to prohibit the discriminatory treatment
of applicants.--
(A) Forms signed.--A public housing agency may only require
an applicant for admission to public housing to sign 1 or
more forms of written consent under this subsection if the
public housing agency requires all such applicants to sign
the same form or forms of written consent.
(B) Circumstances of inquiry.--A public housing agency may
only make an inquiry to a drug abuse treatment facility under
this subsection if--
(i) the public housing agency makes the same inquiry with
respect to all applicants; or
(ii) the public housing agency only makes the same inquiry
with respect to each and every applicant with respect to
whom--
(I) the public housing agency receives information from the
criminal record of the applicant that indicates evidence of a
prior arrest or conviction; or
(II) the public housing agency receives information from
the records of prior tenancy of the applicant that
demonstrates that the applicant--
(aa) engaged in the destruction of property;
(bb) engaged in violent activity against another person; or
[[Page S10089]]
(cc) interfered with the right of peaceful enjoyment of the
premises of another tenant.
(5) Fee permitted.--A drug abuse treatment facility may
charge a public housing agency a reasonable fee for
information provided under this subsection.
(6) Disclosure permitted by drug abuse treatment
facilities.--A drug abuse treatment facility shall not be
liable for damages based on any information required to be
disclosed pursuant to this subsection if such disclosure is
consistent with section 543 of the Public Health Service Act
(42 U.S.C. 290dd-2).
(7) Public housing agencies not required to make inquiries
to drug abuse treatment facilities.--A public housing agency
shall not be liable for damages based on its decision not to
require each person who applies for admission to public
housing to sign 1 or more forms of written consent
authorizing the public housing agency to receive information
from a drug abuse treatment facility under this subsection.
(8) Effective date.--This subsection shall take effect upon
enactment and without the necessity of guidance from, or any
regulation issued by, the Secretary.
(d) Study and Report.--Not later than 1 year after the date
of enactment of this Act, the Comptroller General of the
United States shall conduct a study, and submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate a report that includes information relating to--
(1) the proportion of United States public housing agencies
that screen applicants for drug and alcohol addiction;
(2) the extent, if any, to which the screening described in
paragraph (1), alone or in combination with other
initiatives, has reduced crime in public housing; and
(3) the relative value of different types of information
used by public housing agencies in the screening process
described in paragraph (1), including criminal records,
credit histories, tenancy records, and information from drug
abuse treatment facilities on current illegal drug use of
applicants (as that term is defined in subsection (c)(1)).
(e) Authority To Require Access to Criminal Records.--A
public housing agency may require, as a condition of
providing admission to the public housing program or assisted
housing program under the jurisdiction of the public housing
agency, that each adult member of the household provide a
signed, written authorization for the public housing agency
to obtain records described in section 304 regarding such
member of the household from the National Crime Information
Center, police departments, and other law enforcement
agencies.
(f) Ineligibility of Sexually Violent Predators for
Admission to Public Housing.--
(1) In general.--Notwithstanding any other provision of
law, a public housing agency shall prohibit admission to
public or assisted housing of any family that includes any
individual who is a sexually violent predator.
(2) Definition.--In this subsection, the term ``sexually
violent predator'' means an individual who--
(A) is a sexually violent predator (as that term is defined
in section 170101(a)(3) of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 14071(a)(3))); and
(B) is subject to a registration requirement under section
170101(a)(1)(B) or 170102(c) of the Violent Crime Control and
Law Enforcement Act of 1994 (42 U.S.C. 14071(a)(1)(B),
14072(c)), as provided under section 170101(b)(6)(B) or
170102(d)(2), respectively, of that Act.
SEC. 302. TERMINATION OF TENANCY AND ASSISTANCE.
(a) Termination of Tenancy and Assistance for Illegal Drug
Users and Alcohol Abusers.--Notwithstanding any other
provision of law, a public housing agency or an owner of
federally assisted housing, as applicable, shall establish
standards or lease provisions for continued assistance or
occupancy in federally assisted housing that allow a public
housing agency or the owner, as applicable, to terminate the
tenancy or assistance for any household with a member--
(1) who the public housing agency or owner determines is
engaging in the illegal use of a controlled substance; or
(2) whose illegal use of a controlled substance, or whose
abuse of alcohol, is determined by the public housing agency
or owner to interfere with the health, safety, or right to
peaceful enjoyment of the premises by other residents.
(b) Termination of Assistance for Serious or Repeated Lease
Violation.--Notwithstanding any other provision of law, the
public housing agency must terminate tenant-based assistance
for all household members if the household is evicted from
assisted housing for serious or repeated violation of the
lease.
SEC. 303. LEASE REQUIREMENTS.
In addition to any other applicable lease requirements,
each lease for a dwelling unit in federally assisted housing
shall provide that, during the term of the lease--
(1) the owner may not terminate the tenancy except for
serious or repeated violation of the terms and conditions of
the lease, violation of applicable Federal, State, or local
law, or other good cause; and
(2) grounds for termination of tenancy shall include any
activity, engaged in by the resident, any member of the
resident's household, any guest, or any other person under
the control of any member of the household, that--
(A) threatens the health or safety of, or right to peaceful
enjoyment of the premises by, other residents or employees of
the public housing agency, owner, or other manager of the
housing;
(B) threatens the health or safety of, or right to peaceful
enjoyment of their residences by, persons residing in the
immediate vicinity of the premises; or
(C) is drug-related or violent criminal activity on or off
the premises, or any activity resulting in a felony
conviction.
SEC. 304. AVAILABILITY OF CRIMINAL RECORDS FOR PUBLIC HOUSING
RESIDENT SCREENING AND EVICTION.
(a) In General.--
(1) Provision of information.--Notwithstanding any other
provision of law other than paragraph (2), upon the request
of a public housing agency, the National Crime Information
Center, a police department, and any other law enforcement
agency shall provide to the public housing agency information
regarding the criminal conviction records of an adult
applicant for, or residents of, the public housing program or
assisted housing program under the jurisdiction of the public
housing agency for purposes of applicant screening, lease
enforcement, and eviction, but only if the public housing
agency requests such information and presents to such Center,
department, or agency a written authorization, signed by such
applicant, for the release of such information to such public
housing agency.
(2) Exception.--A law enforcement agency described in
paragraph (1) shall provide information under this paragraph
relating to any criminal conviction of a juvenile only to the
extent that the release of such information is authorized
under the law of the applicable State, tribe, or locality.
(b) Information Regarding Crimes Committed By Sexually
Violent Predators and Crimes Against Children.--
(1) Definition of appropriate law enforcement agency.--In
this subsection, the term ``appropriate law enforcement
agency'' means--
(A) the Federal Bureau of Investigation;
(B) a State law enforcement agency designated as a
registration agency under a State registration program under
subtitle A of title XVII of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 14071 et seq.); or
(C) any local law enforcement agency authorized by a State
law enforcement agency described in subparagraph (B).
(2) Provision of information.--Notwithstanding any other
provision of law other than subsection (a)(2), the
appropriate law enforcement agency shall provide to a public
housing agency any information collected under the national
database established pursuant to section 170102 of the
Violent Crime Control and Law Enforcement Act of 1994 (42
U.S.C. 14072), or under a State registration program under
subtitle A of title XVII of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 14071 et seq.), as
applicable, regarding an adult who is an applicant for, or a
resident of, federally assisted housing, for purposes of
applicant screening, lease enforcement, or eviction, if the
public housing agency--
(A) requests the information; and
(B) presents to the appropriate law enforcement agency a
written authorization, signed by the adult at issue, for the
release of that information to the public housing agency or
other owner of the federally assisted housing.
(c) Opportunity To Dispute.--Before an adverse action is
taken with regard to assistance for public housing on the
basis of a criminal record, the public housing agency shall
provide the resident or applicant with a copy of the criminal
record and an opportunity to dispute the accuracy and
relevance of that record.
(d) Records Management.--Each public housing agency that
receives criminal record information under this section shall
establish and implement a system of records management that
ensures that any criminal record received by the agency is--
(1) maintained confidentially;
(2) not misused or improperly disseminated; and
(3) destroyed in a timely fashion, once the purpose for
which the record was requested has been accomplished.
(e) Fee.--A public housing agency may be charged a
reasonable fee for information provided under this section.
(f) Definition of Adult.--In this section, the term
``adult'' means a person who is 18 years of age or older, or
who has been convicted of a crime as an adult under any
Federal, State, or tribal law.
SEC. 305. DEFINITIONS.
In this title:
(1) Federally assisted housing.--The term ``federally
assisted housing'' means a unit in--
(A) public housing under the United States Housing Act of
1937;
(B) housing assisted under section 8 of the United States
Housing Act of 1937 including both tenant-based assistance
and project-based assistance;
(C) housing that is assisted under section 202 of the
Housing Act of 1959 (as amended by section 801 of the
Cranston-Gonzalez National Affordable Housing Act);
(D) housing that is assisted under section 202 of the
Housing Act of 1959 (as in existence immediately before the
date of enactment of
[[Page S10090]]
the Cranston-Gonzalez National Affordable Housing Act); and
(E) housing that is assisted under section 811 of the
Cranston-Gonzalez National Affordable Housing Act.
(2) Drug-related criminal activity.--The term ``drug-
related criminal activity'' means the illegal manufacture,
sale, distribution, use, or possession with intent to
manufacture, sell, distribute, or use, of a controlled
substance (as defined in section 102 of the Controlled
Substances Act (21 U.S.C. 802)).
(3) Owner.--The term ``owner'' means, with respect to
federally assisted housing, the entity or private person,
including a cooperative or public housing agency, that has
the legal right to lease or sublease dwelling units in such
housing.
SEC. 306. CONFORMING AMENDMENTS.
Section 6 of the United States Housing Act of 1937 (42
U.S.C. 1437d) is amended--
(1) in subsection (l) (as amended by section 107(f) of this
Act)--
(A) by striking paragraphs (4) and (5);
(B) by striking the last sentence; and
(C) by redesignating paragraphs (6) through (8) as
paragraphs (4) through (6), respectively;
(2) by striking subsections (q) and (r); and
(3) by redesignating subsection (s) (as added by section
109 of this Act) as subsection (q).
TITLE IV--MISCELLANEOUS PROVISIONS
SEC. 401. PUBLIC HOUSING FLEXIBILITY IN THE CHAS.
Section 105(b) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12705(b)) is amended--
(1) by redesignating the second paragraph designated as
paragraph (17) (as added by section 681(2) of the Housing and
Community Development Act of 1992) as paragraph (20);
(2) by redesignating paragraph (17) (as added by section
220(b)(3) of the Housing and Community Development Act of
1992) as paragraph (19);
(3) by redesignating the second paragraph designated as
paragraph (16) (as added by section 220(c)(1) of the Housing
and Community Development Act of 1992) as paragraph (18);
(4) in paragraph (16)--
(A) by striking the period at the end and inserting a
semicolon; and
(B) by striking ``(16)'' and inserting ``(17)'';
(5) by redesignating paragraphs (11) through (15) as
paragraphs (12) through (16), respectively; and
(6) by inserting after paragraph (10) the following:
``(11) describe the manner in which the plan of the
jurisdiction will help address the needs of public housing
and is consistent with the local public housing agency plan
under section 5A of the United States Housing Act of 1937;''.
SEC. 402. DETERMINATION OF INCOME LIMITS.
(a) In General.--Section 3(b)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
(1) in the fourth sentence--
(A) by striking ``County,'' and inserting ``and Rockland
Counties''; and
(B) by inserting ``each'' before ``such county''; and
(2) in the fifth sentence, by striking ``County'' each
place that term appears and inserting ``and Rockland
Counties''.
(b) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall issue regulations
implementing the amendments made by subsection (a).
SEC. 403. DEMOLITION OF PUBLIC HOUSING.
Notwithstanding any other provision of law, beginning on
the date of enactment of this Act, the public housing
projects described in section 415 of the Department of
Housing and Urban Development--Independent Agencies
Appropriations Act, 1988 (as in existence on April 25, 1996)
shall be eligible for demolition under--
(1) section 9 of the United States Housing Act of 1937, as
amended by this Act; and
(2) section 14 of the United States Housing Act of 1937, as
that section existed on the day before the date of enactment
of this Act.
SEC. 404. NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAM
COSTS.
(a) Definitions.--In this section--
(1) the term ``Commission'' means the National Commission
on Housing Assistance Program Costs established in subsection
(b);
(2) the term ``Federal assisted housing programs'' means--
(A) the public housing program under the United States
Housing Act of 1937;
(B) the certificate program for rental assistance under
section 8(b)(1) of the United States Housing Act of 1937;
(C) the voucher program for rental assistance under section
8(o) of the United States Housing Act of 1937;
(D) the programs for project-based assistance under section
8 of the United States Housing Act of 1937;
(E) the rental assistance payments program under section
521(a)(2)(A) of the Housing Act of 1949;
(F) the program for housing for the elderly under section
202 of the Housing Act of 1959;
(G) the program for housing for persons with disabilities
under section 811 of the Cranston-Gonzalez National
Affordable Housing Act;
(H) the program for financing housing by a loan or mortgage
insured under section 221(d)(3) of the National Housing Act
that bears interest at a rate determined under the proviso of
section 221(d)(5) of such Act;
(I) the program under section 236 of the National Housing
Act;
(J) the program for constructed or substantial
rehabilitation under section 8(b)(2) of the United States
Housing Act of 1937, as in effect before October 1, 1983; and
(K) any other program for housing assistance administered
by the Secretary of Housing and Urban Development or the
Secretary of Agriculture, under which occupancy in the
housing assisted or housing assistance provided is based on
income, as the Commission may determine; and
(3) the term ``Secretary'' means the Secretary of Housing
and Urban Development.
(b) Establishment; Purpose.--
(1) Establishment.--There is established a commission to be
known as the ``National Commission on Housing Assistance
Program Costs''.
(2) Purpose.--The purpose of the Commission shall be to
provide an objective and independent accounting and analysis
of the full cost to the Federal Government, public housing
agencies, State and local governments, and other entities,
per assisted household, of the Federal assisted housing
programs, taking into account the qualitative differences
among Federal assisted housing programs in accordance with
applicable standards of the Department of Housing and Urban
Development.
(c) Membership.--
(1) Appointment.--The Commission shall be composed of 12
members, of whom--
(A) 1 member shall be the Inspector General of the
Department of Housing and Urban Development;
(B) 2 members shall be appointed by the Secretary;
(C) 2 members shall be appointed by the Chairman and
Ranking Minority Member of the Subcommittee on Housing
Opportunity and Community Development of the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Chairman and Ranking Minority Member of the Subcommittee on
VA, HUD, and Independent Agencies of the Committee on
Appropriations of the Senate;
(D) 2 members shall be appointed by the Chairman and
Ranking Minority Member of the Subcommittee on Housing and
Community Opportunity of the Committee on Banking and
Financial Services of the House of Representatives and the
Chairman and Ranking Minority Member of the Subcommittee on
VA, HUD, and Independent Agencies of the Committee on
Appropriations of the House of Representatives;
(E) 1 member shall be appointed by the Majority Leader of
the Senate;
(F) 1 member shall be appointed by the Majority Leader of
the House of Representatives;
(G) 1 member shall be appointed by the Minority Leader of
the Senate;
(H) 1 member shall be appointed by the Minority Leader of
the House of Representatives; and
(I) 1 member shall be an ex-officio member appointed by the
Comptroller General of the United States, from among officers
and employees of the General Accounting Office.
(2) Initial appointments.--The initial members of the
Commission shall be appointed not later than 90 days after
the date of enactment of this Act.
(3) Qualifications.--The members of the Commission
appointed under paragraph (1)--
(A) shall all be experts in the field of accounting,
economics, cost analysis, finance, or management; and
(B) shall include--
(i) 1 individual who is a distinguished academic engaged in
teaching or research;
(ii) 1 individual who is a business leader, financial
officer, or management expert; and
(iii) 1 individual who is--
(I) a financial expert employed in the private sector; and
(II) knowledgeable about housing and real estate issues.
(4) Additional qualifications.--In selecting members of the
Commission for appointment, the individual making the
appointment shall ensure that each member selected is able to
analyze the Federal assisted housing programs on an objective
basis, and that no individual is appointed to the Commission
if that individual has a personal financial interest,
professional association, or business interest in any Federal
assisted housing program, such that it would pose a conflict
of interest if that individual were appointed to the
Commission.
(d) Organization.--
(1) Chairperson.--The Commission shall elect a chairperson
from among members of the Commission.
(2) Quorum.--A majority of the members of the Commission
shall constitute a quorum for the transaction of business,
but a lesser number may hold hearings.
(3) Voting.--
(A) In general.--Except as provided in subparagraph (B),
each member of the Commission shall be entitled to 1 vote,
which shall be equal to the vote of every other member of the
Commission.
(B) Exception.--The member of the Commission appointed
pursuant to subsection (c)(1)(I) shall be a nonvoting member
of the Commission.
(4) Vacancies.--Any vacancy on the Commission shall not
affect its powers, but shall be filled in the manner in which
the original appointment was made.
(5) Prohibition on additional pay.--Members of the
Commission shall serve without compensation.
(6) Travel expenses.--Each member shall receive travel
expenses, including per diem
[[Page S10091]]
in lieu of subsistence, in accordance with sections 5702 and
5703 of title 5, United States Code.
(e) Functions.--
(1) In general.--The Commission shall--
(A) analyze the full cost to the Federal Government, public
housing agencies, State and local governments, and other
parties, per assisted household, of the Federal assisted
housing programs, and shall conduct the analysis on a
nationwide and regional basis and in a manner such that
accurate per unit cost comparisons may be made between
Federal assisted housing programs, including grants, direct
subsidies, tax concessions, Federal mortgage insurance
liability, periodic renovation and rehabilitation, and
modernization costs, demolition costs, and other ancillary
costs such as security; and
(B) measure and evaluate qualitative differences among
Federal assisted housing programs in accordance with
applicable standards of the Department of Housing and Urban
Development.
(2) Final report.--Not later than 24 months after the
initial members of the Commission are appointed pursuant to
subsection (c)(2), the Commission shall submit to the
Secretary and to the Congress a final report which shall
contain the results of the analysis and estimates required
under paragraph (1).
(3) Limitation.--The Commission may not make any
recommendations regarding Federal housing policy.
(f) Powers.--
(1) Hearings.--The Commission may, for the purpose of
carrying out this section, hold such hearings and sit and act
at such times and places as the Commission may find
advisable.
(2) Rules and regulations.--The Commission may adopt such
rules and regulations as may be necessary to establish its
procedures and to govern the manner of its operations,
organization, and personnel.
(3) Assistance from federal agencies.--
(A) Information.--The Commission may request from any
department or agency of the United States, and such
department or agency shall provide to the Commission in a
timely fashion, such data and information as the Commission
may require to carry out this section.
(B) Administrative support.--The General Services
Administration shall provide to the Commission, on a
reimbursable basis, such administrative support services as
the Commission may request.
(C) Personnel details and technical assistance.--Upon the
request of the chairperson of the Commission, the Secretary
shall, to the extent possible and subject to the discretion
of the Secretary--
(i) detail any of the personnel of the Department of
Housing and Urban Development, on a nonreimbursable basis, to
assist the Commission in carrying out its duties under this
section; and
(ii) provide the Commission with technical assistance in
carrying out its duties under this section.
(4) Information from local housing and management
authorities.--The Commission shall have access, for the
purpose of carrying out its functions under this section, to
any books, documents, papers, and records of a local housing
and management authority that are pertinent to this section
and assistance received pursuant to this section.
(5) Mails.--The Commission may use the United States mails
in the same manner and under the same conditions as other
Federal agencies.
(6) Contracting.--The Commission may, to the extent and in
such amounts as are provided in appropriations Acts, enter
into contracts necessary to carry out its duties under this
section.
(7) Staff.--
(A) Executive director.--The Commission shall appoint an
executive director of the Commission who shall be compensated
at a rate fixed by the Commission, not to exceed the rate
established for level V of the Executive Schedule under title
5, United States Code.
(B) Personnel.--In addition to the executive director, the
Commission may appoint and fix the compensation of such
personnel as it deems advisable, in accordance with the
provisions of title 5, United States Code, governing
appointments to the competitive service, and the provisions
of chapter 51 and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay rates.
(C) Limitation.--Subparagraphs (A) and (B) shall be
effective only to the extent and in such amounts as are
provided in appropriations Acts.
(D) Selection criteria.--In appointing an executive
director and staff, the Commission shall ensure that the
individuals appointed can conduct any functions they may have
regarding the Federal assisted housing programs on an
objective basis and that no such individual has a personal
financial or business interest in any such program.
(8) Advisory committee.--The Commission shall be considered
an advisory committee within the meaning of the Federal
Advisory Committee Act (5 U.S.C. App.).
(g) Funding.--Of any amounts made available to the
Department of Housing and Urban Development for each of
fiscal years 1998 and 1999, there shall be available
$4,500,000 to carry out this section.
(h) Sunset.--The Commission shall terminate upon the
expiration of the 24-month period beginning on the date on
which the initial members of the Commission are appointed
pursuant to subsection (c)(2).
SEC. 405. TECHNICAL CORRECTION OF PUBLIC HOUSING AGENCY OPT-
OUT AUTHORITY.
Section 214(h)(2)(A) of the Housing and Community
Development Act of 1980 (42 U.S.C. 1436(h)(2)(A)) is amended
by striking ``this section'' and inserting ``paragraph (1) of
this subsection''.
SEC. 406. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.
(a) Requirement.--The Secretary shall investigate all
security contracts awarded by grantees under the Public and
Assisted Housing Drug Elimination Act of 1990 (42 U.S.C.
11901 et seq.) that are public housing agencies that own or
operate more than 4,500 public housing dwelling units--
(1) to determine whether the contractors under such
contracts have complied with all laws and regulations
regarding prohibition of discrimination in hiring practices;
(2) to determine whether such contracts were awarded in
accordance with the applicable laws and regulations regarding
the award of such contracts;
(3) to determine how many such contracts were awarded under
emergency contracting procedures;
(4) to evaluate the effectiveness of the contracts; and
(5) to provide a full accounting of all expenses under the
contracts.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall complete the
investigation required under subsection (a) and submit a
report to Congress regarding the findings under the
investigation. With respect to each such contract, the report
shall--
(1) state whether the contract was made and is operating,
or was not made or is not operating, in full compliance with
applicable laws and regulations; and
(2) for each contract that the Secretary determines is in
such compliance issue a personal certification of such
compliance by the Secretary.
(c) Actions.--For each contract that is described in the
report under subsection (b) as not made or not operating in
full compliance with applicable laws and regulations, the
Secretary shall promptly take any actions available under law
or regulation that are necessary--
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) Effective Date.--This section shall take effect on the
date of the enactment of this Act.
SEC. 407. TREATMENT OF PUBLIC HOUSING AGENCY REPAYMENT
AGREEMENT.
(a) Limitation on Secretary.--During the 2-year period
beginning on the date of the enactment of this Act, if the
Housing Authority of the City of Las Vegas, Nevada, is
otherwise in compliance with the Repayment Lien Agreement and
Repayment Plan approved by the Secretary on February 12,
1997, the Secretary of Housing and Urban Development shall
not take any action that has the effect of reducing the
inventory of senior citizen housing owned by such housing
authority that does not receive assistance from the
Department of Housing and Urban Development.
(b) Alternative Repayment Options.--During the period
referred to in subsection (a), the Secretary shall assist the
housing authority referred to in such subsection to identify
alternative repayment options to the plan referred to in such
subsection and to execute an amended repayment plan that will
not adversely affect the housing referred to in such
subsection.
(c) Rule of Construction.--This section may not be
construed to alter--
(1) any lien held by the Secretary pursuant to the
agreement referred to in subsection (a); or
(2) the obligation of the housing authority referred to in
subsection (a) to close all remaining items contained in the
Inspector General audits numbered 89 SF 1004 (issued January
20, 1989), 93 SF 1801 (issued October 30, 1993), and 96 SF
1002 (issued February 23, 1996).
SEC. 408. CEILING RENTS FOR CERTAIN SECTION 8 PROPERTIES.
Notwithstanding any other provision of law, upon the
request of the owner of the project, the Secretary may
establish ceiling rents for the Marshall Field Garden
Apartments Homes in Chicago, Illinois, if the ceiling rents
are, in the determination of the Secretary, equivalent to
rents for comparable properties.
SEC. 409. SENSE OF CONGRESS.
It is the sense of Congress that, each public housing
agency involved in the selection of residents under the
United States Housing Act of 1937 (including section 8 of
that Act) should, consistent with the public housing agency
plan of the public housing agency, consider preferences for
individuals who are victims of domestic violence.
SEC. 410. OTHER REPEALS.
The following provisions of law are repealed:
(1) Report regarding fair housing objectives.--Section 153
of the Housing and Community Development Act of 1992 (42
U.S.C. 1437f note).
(2) Special projects for elderly or handicapped families.--
Section 209 of the Housing and Community Development Act of
1974 (42 U.S.C. 1438).
(3) Local housing assistance plans.--Subsection (c) of
section 213 of the Housing and Community Development Act of
1974 (42 U.S.C. 1439(c)).
[[Page S10092]]
(4) Miscellaneous provisions.--Subsections (b)(1), (c), and
(d) of section 326 of the Housing and Community Development
Amendments of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C.
1437f note).
(5) Public housing childhood development.--Section 222 of
the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
1701z-6 note).
(6) Indian housing childhood development.--Section 518 of
the Cranston-Gonzalez National Affordable Housing Act (12
U.S.C. 1701z-6 note).
(7) Public housing one-stop perinatal services
demonstration.--Section 521 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437t note).
(8) Public housing mincs demonstration.--Section 522 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437f note).
(9) Public housing energy efficiency demonstration.--
Section 523 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 1437g note).
(10) Public and assisted housing youth sports programs.--
Section 520 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 11903a).
SEC. 411. GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY.
Notwithstanding section 108(b) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308(b)), with respect to
any eligible public entity (or any public agency designated
by an eligible public entity) receiving assistance under that
section (in this section referred to as the ``issuer''), a
guarantee or commitment to guarantee may be made with respect
to any note or other obligation under such section 108 if the
issuer's total outstanding notes or obligations guaranteed
under that section (excluding any amount defeased under the
contract entered into under section 108(d)(1)(A) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5308(d)(1)(A))) would thereby exceed an amount equal to 5
times the amount of the grant approval for the issuer
pursuant to section 106 or 107 of the Housing and Community
Development Act of 1974, if the issuer's total outstanding
notes or obligations guaranteed under that section (excluding
any amount defeased under the contract entered into under
section 108(d)(1)(A) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5308(d)(1)(A))) would not thereby
exceed an amount equal to 6 times the amount of the grant
approval for the issuer pursuant to section 106 or 107 of the
Housing and Community Development Act of 1974, if the
additional grant amount is used only for the purpose of
acquiring or transferring the ownership of the production
facility located at the following address in order to
maintain production: One Prince Avenue, Lowell, Massachusetts
01852.
SEC. 412. PROHIBITION ON USE OF ASSISTANCE FOR EMPLOYMENT
RELOCATION ACTIVITIES.
Section 105 of the Housing and Community Development Act of
1974 (42 U.S.C. 5305) is amended by adding at the end the
following:
``(h) Prohibition on Use of Assistance for Employment
Relocation Activities.--Notwithstanding any other provision
of law, no amount from a grant under section 106 made in
fiscal year 1997 or any succeeding fiscal year may be used to
directly assist in the relocation of any industrial or
commercial plant, facility, or operation, from 1 area to
another area, if the relocation is likely to result in an
increase in the unemployment rate in the labor market area
from which the relocation occurs.''.
SEC. 413. USE OF HOME FUNDS FOR PUBLIC HOUSING MODERNIZATION.
Notwithstanding section 212(d)(5) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(d)(5)),
amounts made available to the City of Bismarck, North Dakota
or the State of North Dakota, under subtitle A of title II of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12741 et seq.) for fiscal year 1998, 1999, 2000, 2001,
or 2002, may be used to carry out activities authorized under
section 14 of the United States Housing Act of 1937 (42
U.S.C. 1437l) for the purpose of modernizing the Crescent
Manor public housing project located at 107 East Bowen
Avenue, in Bismarck, North Dakota, if--
(1) the Burleigh County Housing Authority (or any successor
public housing agency that owns or operates the Crescent
Manor public housing project) has obligated all other Federal
assistance made available to that public housing agency for
that fiscal year; or
(2) the Secretary of Housing and Urban Development
authorizes the use of those amounts for the purpose of
modernizing that public housing project, which authorization
may be made with respect to 1 or more of those fiscal years.
SEC. 414. REPORT ON SINGLE FAMILY AND MULTIFAMILY HOMES.
Not later than March 1, 1998, the Inspector General of the
Department of Housing and Urban Development shall submit to
Congress a report, which shall include information relating
to--
(1) with respect to 1- to 4-family dwellings owned by the
Department of Housing and Urban Development as of November 1,
1997--
(A) the total number of units in those dwellings;
(B) the number and percentage of units in those dwellings
that are unoccupied, and their average period of vacancy, as
of that date; and
(C) the number and percentage of units in those dwellings
that have been unoccupied for more than 1 year, as of that
date;
(2) with respect to multifamily housing projects (as that
term is defined in section 203 of the Housing and Community
Development Amendments of 1978) owned by the Department of
Housing and Urban Development as of November 1, 1997--
(A) the total number of units in those projects;
(B) the number and percentage of units in those projects
that are unoccupied, and their average period of vacancy, as
of that date;
(C) the number and percentage of units in those projects
that have been unoccupied for more than 1 year, as of that
date; and
(D) the number and percentage of units in those projects
that are determined by the Inspector General to be
substandard, based on any--
(i) lack of hot or cold piped water;
(ii) lack of working toilets;
(iii) regular and prolonged breakdowns in heating;
(iv) dangerous electrical problems;
(v) unsafe hallways or stairways;
(vi) leaking roofs, windows, or pipes;
(vii) open holes in walls and ceilings; and
(viii) indications of rodent infestation;
(3) the causes of the vacancies described in subparagraphs
(B) and (C) of paragraph (1), and subparagraphs (B) and (C)
of paragraph (2), and the programs of the Department of
Housing and Urban Development that are, as of November 1,
1997, targeted to rectifying those causes; and
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