Rental Assistance Demonstration (RAD): Supporting Contracts and Processing Requirements

H. R. 2112—122
of the managers accompanying this Act: Provided further, That
the Secretary shall provide the Committees on Appropriations quarterly written notification regarding the status of pending congressional reports: Provided further, That the Secretary shall provide
all signed reports required by Congress electronically: Provided
further, That not to exceed $25,000 of the amount made available
under this paragraph for the immediate Office of the Secretary
shall be available for official reception and representation expenses
as the Secretary may determine.
PROGRAM OFFICE SALARIES

AND

EXPENSES

PUBLIC AND INDIAN HOUSING

For necessary salaries and expenses of the Office of Public
and Indian Housing, $200,000,000.
COMMUNITY PLANNING AND DEVELOPMENT

For necessary salaries and expenses of the Office of Community
Planning and Development mission area, $100,000,000.
HOUSING

For necessary salaries and expenses of the Office of Housing,
$391,500,000, of which at least $8,200,000 shall be for the Office
of Risk and Regulatory Affairs.
POLICY DEVELOPMENT AND RESEARCH

For necessary salaries and expenses of the Office of Policy
Development and Research, $22,211,000.
FAIR HOUSING AND EQUAL OPPORTUNITY

For necessary salaries and expenses of the Office of Fair
Housing and Equal Opportunity, $72,600,000.
OFFICE OF HEALTHY HOMES AND LEAD HAZARD CONTROL

For necessary salaries and expenses of the Office of Healthy
Homes and Lead Hazard Control, $7,400,000.
RENTAL ASSISTANCE DEMONSTRATION
To conduct a demonstration designed to preserve and improve
public housing and certain other multifamily housing through the
voluntary conversion of properties with assistance under section
9 of the United States Housing Act of 1937, (hereinafter, ‘‘the
Act’’), or the moderate rehabilitation program under section 8(e)(2)
of the Act (except for funds allocated under such section for single
room occupancy dwellings as authorized by title IV of the McKinneyVento Homeless Assistance Act), to properties with assistance under
a project-based subsidy contract under section 8 of the Act, which
shall be eligible for renewal under section 524 of the Multifamily
Assisted Housing Reform and Affordability Act of 1997, or assistance under section 8(o)(13) of the Act, the Secretary may transfer
amounts provided through contracts under section 8(e)(2) of the
Act or under the headings ‘‘Public Housing Capital Fund’’ and

H. R. 2112—123
‘‘Public Housing Operating Fund’’ to the headings ‘‘Tenant-Based
Rental Assistance’’ or ‘‘Project-Based Rental Assistance’’: Provided,
That the initial long-term contract under which converted assistance
is made available may allow for rental adjustments only by an
operating cost factor established by the Secretary, and shall be
subject to the availability of appropriations for each year of such
term: Provided further, That project applications may be received
under this demonstration until September 30, 2015: Provided further, That any increase in cost for ‘‘Tenant-Based Rental Assistance’’
or ‘‘Project-Based Rental Assistance’’ associated with such conversion shall be equal to amounts transferred from ‘‘Public Housing
Capital Fund’’ and ‘‘Public Housing Operating Fund’’ or other
account from which it was transferred: Provided further, That not
more than 60,000 units currently receiving assistance under section
9 or section 8(e)(2) of the Act shall be converted under the authority
provided under this heading: Provided further, That tenants of
such properties with assistance converted from assistance under
section 9 shall, at a minimum, maintain the same rights under
such conversion as those provided under sections 6 and 9 of the
Act: Provided further, That the Secretary shall select properties
from applications for conversion as part of this demonstration
through a competitive process: Provided further, That in establishing criteria for such competition, the Secretary shall seek to
demonstrate the feasibility of this conversion model to recapitalize
and operate public housing properties (1) in different markets and
geographic areas, (2) within portfolios managed by public housing
agencies of varying sizes, and (3) by leveraging other sources of
funding to recapitalize properties: Provided further, That the Secretary shall provide an opportunity for public comment on draft
eligibility and selection criteria and procedures that will apply
to the selection of properties that will participate in the demonstration: Provided further, That the Secretary shall provide an opportunity for comment from residents of properties to be proposed
for participation in the demonstration to the owners or public
housing agencies responsible for such properties: Provided further,
That the Secretary may waive or specify alternative requirements
for (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment) any provision of section
8(o)(13) or any provision that governs the use of assistance from
which a property is converted under the demonstration or funds
made available under the headings of ‘‘Public Housing Capital
Fund’’, ‘‘Public Housing Operating Fund’’, and ‘‘Project-Based Rental
Assistance’’, under this Act or any prior Act or any Act enacted
during the period of conversion of assistance under the demonstration for properties with assistance converted under the demonstration, upon a finding by the Secretary that any such waivers or
alternative requirements are necessary for the effective conversion
of assistance under the demonstration: Provided further, That the
Secretary shall publish by notice in the Federal Register any
waivers or alternative requirements pursuant to the previous proviso no later than 10 days before the effective date of such notice:
Provided further, That the demonstration may proceed after the
Secretary publishes notice of its terms in the Federal Register:
Provided further, That notwithstanding sections 3 and 16 of the
Act, the conversion of assistance under the demonstration shall
not be the basis for re-screening or termination of assistance or
eviction of any tenant family in a property participating in the

H. R. 2112—124
demonstration, and such a family shall not be considered a new
admission for any purpose, including compliance with income targeting requirements: Provided further, That in the case of a property
with assistance converted under the demonstration from assistance
under section 9 of the Act, section 18 of the Act shall not apply
to a property converting assistance under the demonstration for
all or substantially all of its units, the Secretary shall require
ownership or control of assisted units by a public or nonprofit
entity except as determined by the Secretary to be necessary pursuant to foreclosure, bankruptcy, or termination and transfer of assistance for material violations or substantial default, in which case
the priority for ownership or control shall be provided to a capable
public entity, then a capable entity, as determined by the Secretary,
shall require long-term renewable use and affordability restrictions
for assisted units, and may allow ownership to be transferred to
a for-profit entity to facilitate the use of tax credits only if the
public housing agency preserves its interest in the property in
a manner approved by the Secretary, and upon expiration of the
initial contract and each renewal contract, the Secretary shall offer
and the owner of the property shall accept renewal of the contract
subject to the terms and conditions applicable at the time of renewal
and the availability of appropriations each year of such renewal:
Provided further, That the Secretary may permit transfer of assistance at or after conversion under the demonstration to replacement
units subject to the requirements in the previous proviso: Provided
further, That the Secretary may establish the requirements for
converted assistance under the demonstration through contracts,
use agreements, regulations, or other means: Provided further, That
the Secretary shall assess and publish findings regarding the impact
of the conversion of assistance under the demonstration on the
preservation and improvement of public housing, the amount of
private sector leveraging as a result of such conversion, and the
effect of such conversion on tenants: Provided further, That for
fiscal years 2012 and 2013, owners of properties assisted under
section 101 of the Housing and Urban Development Act of 1965,
section 236(f)(2) of the National Housing Act, or section 8(e)(2)
(except for funds allocated under such section for single room occupancy dwellings as authorized by title IV of the McKinney-Vento
Homeless Assistance Act) of the United States Housing Act of
1937, for which an event after October 1, 2006 has caused or
results in the termination of rental assistance or affordability
restrictions and the issuance of tenant protection vouchers under
section 8(o) of the Act, shall be eligible, subject to requirements
established by the Secretary, including but not limited to tenant
consultation procedures and agreement of the administering public
housing agency, for conversion of assistance available for such
vouchers to assistance under section 8(o)(13) of the Act, to which
the limitation under subsection (B) of section 8(o)(13) of the Act
shall not apply and for which the Secretary of Housing and Urban
Development may waive or alter the provisions of subparagraphs
(C) and (D) of section 8(o)(13) of the Act: Provided further, That
with respect to the previous proviso, the Comptroller General of
the United States shall conduct a study of the long-term impact
of the previous proviso on the ratio of tenant-based vouchers to
project-based vouchers.