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Responsibility Act of 1998 as of 3/2/19991
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Housing Act of 1937 as amended,
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Housing and Work Responsibility
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(F) DISPLACED PERSON.— The term
"displaced person" means a person
displaced by governmental action, or a
person whose dwelling has been
extensively damaged or destroyed as a
result of a disaster declared or
otherwise formally recognized
pursuant to Federal disaster relief
laws.
(5) The term "adjusted income" means
the income which remains after
excluding— (A) $550 for each
member of the family residing in the
household (other than the head of the
household or his spouse) who is under
18 years or age or who is 18 years of
age or older and is disabled or
handicapped or a full-time student;
(a) DECLARATION OF POLICY.— It is the
policy of the United States— (1) to
promote the general welfare of the
Nation by employing the funds and
credit of the Nation, as provided in
this Act—
Table of Contents
Title I— General Program of Assisted Housing ............................................................................ 5
Section 1— Short Title............................................................................................................. 5
Section 2— Declaration of Policy and Public Housing Agency Organization............................. 5
Section 3— Rental Payments; Definitions ................................................................................. 6
Section 4— Loans for Lower Income Housing Projects.......................................................... 19
Section 5— Contributions for Lower Income Housing Projects .............................................. 20
Section 5A— Public Housing Agency Plans ........................................................................... 28
1
This document presents the United States Housing Act of 1937, Pub. L. 93-383, 88 Stat. 653 (codified as amended at 42 U.S.C. 1437 et.
seq.)(hereinafter the 1937 Act) as it was amended by the Quality Housing and Work Responsibility Act of 1998, Pub. L. 105-276, 112 Stat. 2518
(enacted October 21, 1998)(hereinafter QHWRA). This document also reflects amendments made to the 1937 Act by the Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999, Pub. L. 105-276, 112 Stat. 2461 (enacted
October 21, 1998)(hereinafter Appropriations Act, 1999) and the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999,
Pub. L. 105-277 (enacted October 21, 1998)(hereinafter Omnibus Act, 1999).
Section 6— Contract Provisions and Requirements ................................................................ 34
Section 7— Designated Housing for Elderly and Disabled Families......................................... 54
Section 8— Lower Income Housing Assistance...................................................................... 57
Section 9— Public Housing Capital and Operating Funds ....................................................... 91
Section 10— General Provisions .......................................................................................... 104
Section 11— Financing Lower Income Housing Projects...................................................... 104
Section 12— Labor Standards and Community Service Requirement.................................... 104
Section 13— Consortia, Joint Ventures, Affiliates, and Subsidiaries of Public Housing Agencies109
Section 14— Repealed— Public Housing Modernization ..................................................... 110
Section 15— Payment of Nonfederal Share .......................................................................... 125
Section 16— Eligibility for Assisted Housing ....................................................................... 125
Section 17— Rental Rehabilitation and Development Grants ................................................ 131
Section 18— Demolition and Disposition of Public Housing................................................. 142
Section 19— Financing Limitations ...................................................................................... 147
Section 20— Public Housing Resident Management............................................................. 148
Section 21— Public Housing Homeownership and Management Opportunities..................... 153
Section 22— Authority to Convert Public Housing to Vouchers........................................... 157
Section 23— Family Self-Sufficiency Program...................................................................... 163
Section 24— Demolition, Site Revitalization, Replacement Housing, andTenant-Based
Assistance Grants for Projects ............................................................................................. 171
Section 25— Transfer of Management of Certain Housing to Independent Manager at Request
of Residents ........................................................................................................................ 181
Section 26— Environmental Reviews ................................................................................... 190
Section 27— Provision of Information to Law Enforcement and Other Agencies.................. 191
Section 28— Exchange of Information with Law Enforcement Agencies .............................. 191
Section 29— Civil Money Penalties Against Section 8 Owners............................................. 192
Section 30— Public Housing Mortgages and Security Interests ............................................ 194
Section 31— Pet Ownership in Public Housing..................................................................... 195
Section 32— Resident Homeownership Programs ................................................................ 195
Section 33— Required Conversion of Distressed Public Housing to Tenant-Based Assistance198
Section 34— Services for Public Housing Residents............................................................. 201
Section 35— Mixed Finance Public Housing ........................................................................ 203
Title II— Repealed— Assisted Housing for Indians and Alaska Natives.................................... 205
Title III— Hope for Public Housing Homeownership ............................................................... 205
Section 301— Program Authority ........................................................................................ 205
Section 302— Planning Grants............................................................................................. 205
Section 303— Implementation Grants .................................................................................. 207
Section 304— Homeownership Program Requirements ........................................................ 210
Section 305— Other Program Requirements ........................................................................ 212
Section 306— Definitions..................................................................................................... 215
Section 307— Relationship to Other Homeownership Opportunities .................................... 215
Section 308— Limitation on Selection Criteria ..................................................................... 215
Section 309— Annual Report............................................................................................... 216
Title IV— Home Rule Flexible Grant Demonstration ............................................................... 216
Section 401— Purpose......................................................................................................... 216
2
Section 402—
Section 403—
Section 404—
Section 405—
Section 406—
Section 407—
Section 408—
Section 409—
Section 410—
Section 411—
Flexible Grant Program ................................................................................. 217
Program Allocation and Covered Housing Assistance.................................... 218
Applicability of Requirements Under Programs for Covered Housing Assistance218
Program Requirements .................................................................................. 219
Application.................................................................................................... 219
Training ........................................................................................................ 222
Accountability ............................................................................................... 222
Definitions..................................................................................................... 223
Termination and Evaluation........................................................................... 223
Applicability .................................................................................................. 224
3
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2
UNITED STATES HOUSING ACT OF 1937
[Public Law 93-383; 88 Stat. 653; 42 U.S.C. 1437 et seq.]
TITLE I— GENERAL PROGRAM OF ASSISTED HOUSING
SHORT TITLE
Section 1. [42 U.S.C. 1437 note] This Act may be cited as the "United States Housing Act
of 1937".
3
DECLARATION OF POLICY
Sec. 2. [42 U.S.C. 1437] It is the policy of the United States to promote the general
welfare of the Nation by employing its funds and credit, as provided in this Act, to assist the
several States and their political subdivisions to remedy the unsafe and unsanitary housing
conditions and the acute shortage of decent, safe, and sanitary dwellings for families of lower
income and, consistent with the objectives of this Act, to vest in local public housing agencies the
maximum amount of responsibility in the administration of their housing programs. No person
should be barred from serving on the board of directors or similar governing body of a local
public housing agency because of his tenancy in a low-income housing project.
SEC. 2. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY
ORGANIZATION.
(a) DECLARATION OF POLICY.— It is the policy of the United States—
(1) to promote the general welfare of the Nation by employing the funds and
credit of the Nation, as provided in this Act—
(A) 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;
(B) to assist States and political subdivisions of States to address the
shortage of housing affordable to low-income families; and
(C) 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 public housing
residents, localities, and the general public;
(2) that the Federal Government cannot through its direct action alone provide
for the housing of every American citizen, or even a majority of its citizens, but it is the
responsibility of the Government to promote and protect the independent and collective
actions of private citizens to develop housing and strengthen their own neighborhoods;
(3) that the Federal Government should act where there is a serious need that
private citizens or groups cannot or are not addressing responsibly; and
2
Section 226 of the Appropriations Act, 1999 states, "Notwithstanding any other provision of law, no funds in this Act or any other Act may
hereafter be used by the Secretary of Housing and Urban Development to determine allocations or provide assistance for operating subsidies or
modernization for certain State and city funded and locally developed public housing units, as defined for purposes of a statutory paragraph,
notwithstanding the deeming by statute of any units to be public housing units developed under the United States Housing Act of 1937, unless
such unit was so assisted before October 1, 1998."
3
Section 505 of the QHWRA amended section 2 to read as shown.
5
(4) that our Nation should promote the goal of providing decent and affordable
housing for all citizens through the efforts and encouragement of Federal, State, and
local governments, and by the independent and collective actions of private citizens,
organizations, and the private sector.
(b) PUBLIC HOUSING AGENCY ORGANIZATION.—
(1) REQUIRED MEMBERSHIP.— Except as provided in paragraph (2), the
membership of the board of directors or similar governing body of each public housing
agency shall contain not less than 1 member—
(A) who is directly assisted by the public housing agency; and
(B) who may, if provided for in the public housing agency plan, be elected
by the residents directly assisted by the public housing agency.
(2) EXCEPTION.— Paragraph (1) shall not apply to any public housing agency—
(A) that is located in a State that requires the members of the board of
directors or similar governing body of a public housing agency to be salaried and
to serve on a full-time basis; or
(B) with less than 300 public housing units, if—
(i) the agency has provided reasonable notice to the resident
advisory board of the opportunity of not less than 1 resident described in
paragraph (1) to serve on the board of directors or similar governing
body of the public housing agency pursuant to such paragraph; and
(ii) within a reasonable time after receipt by the resident advisory
board established by the agency pursuant to section 5A(e) of notice under
clause (i), the public housing agency has not been notified of the intention
of any resident to participate on the board of directors.
(3) 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 or status as assisted under section 8.
RENTAL PAYMENTS; DEFINITIONS
SEC. 3. [42 U.S.C. 1437a] (a)(1) Dwelling units assisted under this Act shall be rented
only to families who are low-income families at the time of their initial occupancy of such units.
Reviews of family income shall be made at least annually. Except as provided in paragraph (2)
4
and subject to the requirement under paragraph (3), a family shall pay as rent for a dwelling unit
assisted under this Act (other than a family assisted under section 8(o) or (y) or paying rent under
section 8(c)(3)(B)) the highest of the following amounts, rounded to the nearest dollar:
(A) 30 per centum of the family's monthly adjusted income;
(B) 10 per centum of the family's monthly income; or
(C) if the family is receiving payments for welfare assistance from a public agency
and a part of such payments, adjusted in accordance with the family's actual housing costs,
is specifically designated by such agency to meet the family's housing costs, the portion of
such payments which is so designated.
5
(2)6 Notwithstanding paragraph (1), a public housing agency may—
4
Section 507(c) of the QHWRA amended section 3(a)(1). Section 507(d) of the QHWRA made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
5
Section 523 of the QHWRA amended section 3(a)(2) to read as shown.
6
(A) adopt ceiling rents that reflect the reasonable market value of the housing, but
that are not less than the monthly costs—
(i) to operate the housing of the agency; and
(ii) to make a deposit to a replacement reserve (in the sole discretion of the
public housing agency); and
(B) allow families to pay ceiling rents referred to in subparagraph (A), unless, with
respect to any family, the ceiling rent established under this paragraph would exceed the
amount payable as rent by that family under paragraph (1).
(2) RENTAL PAYMENTS FOR PUBLIC HOUSING FAMILIES.—
(A) AUTHORITY FOR FAMILY TO SELECT.—
(i) IN GENERAL.— A family residing in a public housing dwelling shall pay
as monthly rent for the unit the amount determined under clause (i) or (ii) of
subparagraph (B), subject to the requirement under paragraph (3) (relating to
minimum rents). Each public housing agency shall provide for each family
residing in a public housing dwelling unit owned, assisted, or operated by the
agency to elect annually whether the rent paid by such family shall be determined
under clause (i) or (ii) of subparagraph (B). A public housing agency may not at
any time fail to provide both such rent options for any public housing dwelling
unit owned, assisted, or operated by the agency.
(ii) AUTHORITY TO RETAIN FLAT AND CEILING RENTS.— Notwithstanding
clause (i) or any other provision of law, any public housing agency that is
administering flat rents or ceiling rents pursuant to any authority referred to in
section 519(d) of the Quality Housing and Work Responsibility Act of 1998 before
the effective day of such Act may continue to charge rent in accordance with such
rent provisions after such effective date, except that the agency shall provide for
families residing in public housing dwelling units owned or operated by the
agency to elect annually whether to pay rent under such provisions or in
accordance with one of the rent options referred to in subparagraph (A).
(B) ALLOWABLE RENT STRUCTURES.—
(i) FLAT RENTS.— Except as otherwise provided under this clause, each
public housing agency shall establish, for each dwelling unit in public housing
owned or operated by the agency, a flat rental amount for the dwelling unit,
which shall—
(I) be based on the rental value of the unit, as determined by the
public housing agency; and
(II) be designed in accordance with subparagraph (D) so that the
rent structures do not create a disincentive for continued residency in
public housing by families who are attempting to become economically
self-sufficient through employment or who have attained a level of selfsufficiency through their own efforts.
The rental amount for a dwelling unit shall be considered to comply with the
requirements of this clause if such amount does not exceed the actual monthly
6
Indentation so in law.
Section 402(b)(1) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this paragraph to read as
shown. Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
7
costs to the public housing agency attributable to providing and operating the
dwelling unit. The preceding sentence may not be construed to require
establishment of rental amounts equal to or based on operating costs or to
prevent public housing agencies from developing flat rents required under this
clause in any other manner that may comply with this clause.
(ii) INCOME-BASED RENTS.—
(I) IN GENERAL.— The monthly rental amount determined under this
clause for a family shall be an amount, determined by the public housing
agency, that does not exceed the greatest of the amounts (rounded to the
nearest dollar) determined under subparagraphs (A), (B), and (C) of
paragraph (1). This clause may not be construed to require a public
housing agency to charge a monthly rent in the maximum amount
permitted under this clause.
(II) DISCRETION.— Subject to the limitation on monthly rental
amount under subclause (I), a public housing agency may, in its
discretion, implement a rent structure under this clause requiring that a
portion of the rent be deposited to an escrow or savings account, imposing
ceiling rents, or adopting income exclusions (such as those set forth in
section 3(b)(5)(B)), or may establish another reasonable rent structure or
amount.
(C) SWITCHING RENT DETERMINATION METHODS BECAUSE OF HARDSHIP
CIRCUMSTANCES.— Notwithstanding subparagraph (A), in the case of a family that has
elected to pay rent in the amount determined under subparagraph (B)(i), a public
housing agency shall immediately provide for the family to pay rent in the amount
determined under subparagraph (B)(ii) during the period for which such election was
made upon a determination that the family is unable to pay the amount determined under
subparagraph (B)(i) because of financial hardship, including—
(i) situations in which the income of the family has decreased because of
changed circumstances, loss of reduction of employment, death in the family, and
reduction in or loss of income or other assistance;
(ii) an increase, because of changed circumstances, in the family's
expenses for medical costs, child care, transportation, education, or similar
items; and
(iii) such other situations as may be determined by the agency.
(D) ENCOURAGEMENT OF SELF-SUFFICIENCY.— The rental policy developed by each
public housing agency shall encourage and reward employment and economic selfsufficiency.
(E) INCOME REVIEWS.— Notwithstanding the second sentence of paragraph (1), in
the case of families that are paying rent in the amount determined under subparagraph
(B)(i), the agency shall review the income of such family not less than once every 3 years.
7
(3) MINIMUM RENTAL AMOUNT.—
(A) REQUIREMENT.— Notwithstanding paragraph (1) of this subsection, the method
for rent determination elected pursuant to paragraph (2)(A) of this subsection by a family
7
Section 507(a) of the QHWRA amended section 3(a) by adding paragraph (3). Section 507(d) made this amendment effective upon enactment
of the QHWRA (October 21, 1998).
8
residing in public housing, section 8(o)(2) of this Act, or section 206(d) of the Housing
and Urban-Rural Recovery Act of 1983 (including paragraph (5) of such section), the
following entities shall require the following families to pay a minimum monthly rental
amount (which amount shall include any amount allowed for utilities) of not more than
$50 per month, as follows:
(i) Each public housing agency shall require the payment of such
minimum monthly rental amount, which amount shall be determined by the
agency, by—
(I) each family residing in a dwelling unit in public housing by the
agency;
(II) each family who is assisted under the certificate or moderate
rehabilitation program under section 8; and
(III) each family who is assisted under the voucher program under
section 8, and the agency shall reduce the monthly assistance payment on
behalf of such family as may be necessary to ensure payment of such
minimum monthly rental amount.
(ii) The Secretary shall require each family who is assisted under any
other program for rental assistance under section 8 to pay such minimum monthly
rental amount, which amount shall be determined by the Secretary.
(B) EXCEPTION FOR HARDSHIP CIRCUMSTANCES.—
(i) IN GENERAL.— Notwithstanding subparagraph (A), a public housing
agency (or the Secretary, in the case of a family described in subparagraph
(A)(ii)) shall immediately grant an exemption from application of the minimum
monthly rental under such subparagraph to any family unable to pay such amount
because of financial hardship, which shall include situations in which (I) the
family has lost eligibility for or is awaiting an eligibility determination for a
Federal, State, or local assistance program, including a family that includes a
member who is an alien lawfully admitted for permanent residence under the
Immigration and Nationality Act who would be entitled to public benefits but for
title IV of the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996; (II) the family would be evicted as a result of the imposition of the
minimum rent requirement under subparagraph (A); (III) the income of the family
has decreased because of changed circumstance, including loss of employment;
(IV) a death in the family has occurred; and (V) other situations as may be
determined by the agency (or the Secretary, in the case of a family described in
subparagraph (A)(ii)).
(ii) WAITING PERIOD.— If a resident requests a hardship exemption under
this subparagraph and the public housing agency (or the Secretary, in the case of
a family described in subparagraph (A)(ii)) reasonably determines the hardship
to be of a temporary nature, an exemption shall not be granted during the 90-day
period beginning upon the making of a request for the exemption. A resident may
not be evicted during such 90-day period for nonpayment of rent. In such a case,
if the resident thereafter demonstrates that the financial hardship is of a longterm basis, the agency (or the Secretary) shall retroactively exempt the resident
from the applicability of the minimum rent requirement for such 90-day period.
9
8
(4) OCCUPANCY BY POLICE OFFICERS.—
(A) IN GENERAL.— Subject to subparagraph (B) and notwithstanding any other
provision of law, a public housing agency may, in accordance with the public housing
agency plan for the agency, allow a police officer who is not otherwise eligible for
residence in public housing to reside in a public housing dwelling unit. The number and
location of units occupied by police officers under this paragraph and the terms and
conditions of their tenancies shall be determined by the public housing agency.
(B) INCREASED SECURITY.— A public housing agency may take the actions
authorized in subparagraph (A) only for the purpose of increasing security for the
residents of a public housing project.
(C) DEFINITION.— In this paragraph, 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).
(5) OCCUPANCY BY OVER-INCOME FAMILIES IN CERTAIN PUBLIC HOUSING.—
(A) AUTHORITY.— Notwithstanding any other provision of law, a public housing
agency that owns or operates less than 250 units may, on a month-to-month basis, lease a
dwelling unit in a public housing project to an over-income family in accordance with
this paragraph, but only if there are no eligible families applying for housing assistance
from the public housing agency for that month and the agency provides not less than 30day public notice of the availability of such assistance.
(B) TERMS AND CONDITIONS.— The number and location of dwelling units of a
public housing agency occupied under this paragraph by over-income families, and the
terms and conditions of those tenancies, shall be determined by the public housing
agency, except that—
(i) notwithstanding paragraph (2), rent for a unit shall be in an amount
that is 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 in
accordance with notice of termination of tenancy provided by the agency, which
shall be provided not less than 30 days before such termination; 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 and outreach
with regard to availability of the unit.
(C) DEFINITION.— For purposes of this paragraph, the term "over-income family"
means an individual or family that is not a low-income family at the time of initial
occupancy.
(b) When used in this Act:
(1) The term "low-income housing" means decent, safe, and sanitary dwellings assisted
under this Act. The term "public housing" means low-income housing, and all necessary
8
Section 524(a) of the QHWRA amended section (3)(a) by adding paragraphs (4) and (5). Section 524(b) made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
10
appurtenances thereto, assisted under this Act other than under section 8. 9The term "public
housing" includes dwelling units in a mixed finance project that are assisted by a public housing
agency with capital or operating assistance. When used in reference to public housing, the term
"low-income housing project" or "project" means (A) housing developed, acquired, or assisted by
a public housing agency under this Act, and (B) the improvement of any such housing.
(2) The term "low-income families" means those families whose incomes do not exceed 80
per centum of the median income for the area, as determined by the Secretary with adjustments
for smaller and larger families, except that the Secretary may establish income ceilings higher or
lower than 80 per centum of the median for the area on the basis of the Secretary's findings that
such variations are necessary because of prevailing levels of construction costs or unusually high
or low family incomes. The term "very low-income families" means low-income families whose
incomes do not exceed 50 per centum of the median family income for the 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 50 per centum of the median for the area on the
basis of the Secretary's findings that such variations are necessary because of unusually high or
low family incomes. Such ceilings shall be established in consultation with the Secretary of
Agriculture for any rural area, as defined in section 520 of the Housing Act of 1949, taking into
account the subsidy characteristics and types of programs to which such ceilings apply. In
determining median incomes (of persons, families, or households) for an area or establishing any
ceilings or limits based on income under this Act, the Secretary shall determine or establish area
median incomes and income ceilings and limits for Westchester 10Countyand Rockland Counties,
in the State of New York, as if 11each such county were an area not contained within the
metropolitan statistical area in which it is located. In determining such area median incomes or
establishing such income ceilings or limits for the portion of such metropolitan statistical area that
does not include Westchester 12Countyor Rockland Counties, the Secretary shall determine or
establish area median incomes and income ceilings and limits as if such portion included
Westchester 13Countyand Rockland Counties. 14In determining areas that are designated as
difficult development areas for purposes of the low-income housing tax credit, the Secretary
shall include Westchester and Rockland Counties, New York, in the New York City metropolitan
area.
(3) PERSONS AND FAMILIES.—
(A) SINGLE PERSONS.— The term "families" includes families consisting of a single
person in the case of (i) an elderly person, (ii) a disabled person, (iii) a displaced person,
(iv) the remaining member of a tenant family, and (v) any other single persons. In no event
may any single person under clause (v) of the first sentence be provided a housing unit
assisted under this Act of 2 or more bedrooms. 15In determining priority for admission to
9
Section 506(1) of the QHWRA amended section 3(b)(1).
Section 508(c)(1)(A)(i) of the QHWRA amended section 3(b)(2). Section 508(c)(2) made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
11
Section 508(c)(1)(A)(ii) of the QHWRA amended section 3(b)(2). Section 508(c)(2) made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
12
Section 508(c)(1)(B)(i) of the QHWRA amended section 3(b)(2). Section 508(c)(2) made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
13
Section 508(c)(1)(B)(ii) of the QHWRA amended section 3(b)(2). Section 508(c)(2) made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
14
Section 508(c)(1)(C) of the QHWRA amended section 3(b)(2). Section 508(c)(2) made this amendment effective upon enactment of the QHWRA
(October 21, 1998).
15
Section 506(2)(A) of the QHWRA amended section 3(b)(3)(A).
10
11
housing under this Act, the Secretary shall give preference to single persons who are
elderly, disabled, or displaced persons before single persons who are eligible under clause
(v) of the first sentence.
(B) FAMILIES.— The term "families" includes families with children and, in the
cases of elderly families, near-elderly families, and disabled families, means families whose
heads (or their spouses), or whose sole members, are elderly, near-elderly, or persons with
disabilities, respectively. The term includes, in the cases of elderly families, near-elderly
families, and disabled families, 2 or more elderly persons, near-elderly persons, or persons
with disabilities living together, and 1 or more such persons living with 1 or more persons
determined under the 16regulations of the Secretarypublic housing agency plan to be
essential to their care or well-being.
(C) ABSENCE OF CHILDREN.— The temporary absence of a child from the home due
to placement in foster care shall not be considered in determining family composition and
family size.
(D) ELDERLY PERSON.— The term "elderly person" means a person who is at least
62 years of age.
(E) PERSON WITH DISABILITIES.— The term "person with disabilities" means a
person who—
(i) has a disability as defined in section 223 of the Social Security Act,
(ii) is determined, pursuant to regulations issued by the Secretary, to have a
physical, mental, or emotional impairment which (I) is expected to be of longcontinued and indefinite duration, (II) substantially impedes his or her ability to live
independently, and (III) is of such a nature that such ability could be improved by
more suitable housing conditions, or
(iii) has a developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act.
Such term shall not exclude persons who have the disease of acquired immunodeficiency
syndrome or any conditions arising from the etiologic agent for acquired
immunodeficiency syndrome. 17Notwithstanding any other provision of law, no individual
shall be considered a person with disabilities, for purposes of eligibility for low-income
housing under this title, solely on the basis of any drug or alcohol dependence. The
Secretary shall consult with other appropriate Federal agencies to implement the
preceding sentence.
(F) DISPLACED PERSON.— The term "displaced person" means a person displaced
by governmental action, or a person whose dwelling has been extensively damaged or
destroyed as a result of a disaster declared or otherwise formally recognized pursuant to
Federal disaster relief laws.
(G) NEAR-ELDERLY PERSON.— The term "near-elderly person" means a person
who is at least 50 years of age but below the age of 62.
(4) The term "income" means income from all sources of each member of the household,
as determined in accordance with criteria prescribed by the Secretary, in consultation with the
Secretary of Agriculture, except that any amounts not actually received by the family18 and any
16
Section 506(2)(B) of the QHWRA amended section 3(b)(3)(B).
Section 506(3) of the QHWRA amended section 3(b)(3)(E).
18
Section 573(b) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, amended this paragraph to exclude from consideration
as income amounts not received by a family. Section 573(e) of such Act provides as follows:
17
12
amounts which would be eligible for exclusion under section 1613(a)(7) of the Social Security
Act (42 U.S.C. 1382b(a)(7))19 may not be considered as income under this paragraph.20
21
(5) The term "adjusted income" means the income which remains after excluding—
(A) $55022 for each member of the family residing in the household (other than the
head of the household or his spouse) who is under 18 years or age or who is 18 years of
age or older and is disabled or handicapped or a full-time student;
(B) $400 for any elderly or disabled family;
(C) the amount by which the aggregate of the following expenses of the family
exceeds 3 percent of annual family income: (i) medical expenses for any family;23 and (ii)
reasonable attendant care and auxiliary apparatus expenses for each handicapped member
of any family, to the extent necessary to enable any member of such family (including such
handicapped member) to be employed;
(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;24
(E) 10 percent of the earned income of the family;25
(F) any payment made by a member of the family for the support and maintenance
of any child, spouse, or former spouse who does not reside in the household, except that
the amount excluded under this subparagraph shall not exceed the lesser of (i) the amount
that such family member has a legal obligation to pay; or (ii) $550 for each individual for
whom such payment is made; and23
(G)26 for public housing, any other adjustments to earned income established by the
public housing agency. If a public housing agency adopts other adjustments to income
pursuant to subparagraph (H), the Secretary shall not take into account any reduction of
or increase in the public housing agency's per unit dwelling rental income resulting from
those adjustments when calculating the contributions under section 9 for the public
housing agency for the operation of the public housing.
(5) ADJUSTED INCOME.— The term "adjusted income" means, with respect to a family, the
amount (as determined by the public housing agency) of the income of the members of the family
residing in a dwelling unit or the persons on a lease, after any income exclusions as follows:
"(e) Budget Compliance.— The amendments made by subsections (b) and (c) shall apply only to the extent approved in appropriations Acts.".
19
Section 103(a)(1) of the Housing and Community Development Act of 1992, Pub. L. 102-550, amended this paragraph to exclude from
consideration as income the amounts eligible for exclusion under the Social Security Act.
Paragraph (3) of such section 103(a) provides as follows:
"(3) Budget compliance.— To the extent that the amendments made by paragraphs (1) and (2) result in additional costs under this title, such
amendments shall be effective only to the extent that amounts to cover such additional costs are provided in advance in appropriation Acts.".
20
Other Federal laws exclude various amounts from consideration as income for purposes of housing assistance. See, for example, the exclusion
provided by section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g).
21
Section 508(a) of the QHWRA amended section 3(b)(5) to read as shown. Note that section 508(b)(2) of the QHWRA states that section
3(b)(5)(G) shall continue to apply until October 1, 1999.
22
Section 573(c)(1) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, increased the exclusion from income under this
subparagraph from $480 to $550. Subsection (e) of such section 573 provides as shown in footnote 1, on this page. Section 103(b) of the Housing and
Community Development Act of 1992, Public Law 102-550, provides as shown in footnote 1, on this page.
23
Section 573(c)(2) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, amended this subparagraph by expanding the
exclusion from income for medical expenses to nonelderly families, as well as elderly families. Subsection (e) of such section 573 provides as shown in
footnote 1, on this page.
24
Section 103(a)(2) of the Housing and Community Development Act of 1992, Pub. L. 102-550, amended this subparagraph to read as shown.
Paragraph (3) of such section 103(a) provides as shown in footnote 2, on this page.
25
Section 573(c)(3) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, added this subparagraph. Subsection (e) of such
section 573 provides as shown in footnote 1, on the preceding page. Section 103(b) of the Housing and Community Development Act of 1992, Pub. L.
102-550, provides as shown in footnote 1, on the preceding page.
26
Section 402(c) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, added this subparagraph. Section 402(f)
of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
13
(A) MANDATORY EXCLUSIONS.— In determining adjusted income, a public housing
agency shall exclude from the annual income of a family the following amounts:
(i) ELDERLY AND DISABLED FAMILIES.— $400 for any elderly or disabled
family.
(ii) MEDICAL EXPENSES.— The amount by which 3 percent of the annual
family income is exceeded by the sum of—
(I) unreimbursed medical expenses of any elderly family or
disabled family;
(II) unreimbursed medical expenses of any family that is not
covered under subclause (I), except that this subclause shall apply only to
the extent approved in appropriation Acts; and
(III) unreimbursed reasonable attendant care and auxiliary
apparatus expenses for each handicapped member of the family, to the
extent necessary to enable any member of such family (including such
handicapped member) to be employed.
(iii) CHILD CARE EXPENSES.— Any reasonable child care expenses necessary
to enable a member of the family to be employed or to further his or her
education.
(iv) MINORS, STUDENTS, AND PERSONS WITH DISABILITIES.— $480 for each
member of the family residing in the household (other than the head of the
household or his or her spouse) who is less than 18 years of age or is attending
school or vocational training on a full-time basis, or who is 18 years of age or
older and is a person with disabilities.
(v) CHILD SUPPORT PAYMENTS.— Any payment made by a member of the
family for the support and maintenance of any child who does not reside in the
household, except that the amount excluded under this clause may not exceed
$480 for each child for whom such payment is made; except that this clause shall
apply only to the extent approved in appropriations Acts.
(vi) SPOUSAL SUPPORT EXPENSES.— Any payment made by a member of the
family for the support and maintenance of any spouse or former spouse who does
not reside in the household, except that the amount excluded under this clause
shall not exceed the lesser of (I) the amount that such family member has a legal
obligation to pay, or (II) $550 for each individual for whom such payment is
made; except that this clause shall apply only to the extent approved in
appropriations Acts.
(vii) EARNED INCOME OF MINORS.— The amount of any earned income of a
member of the family who is not—
(I) 18 years of age or older; and
(II) the head of the household (or the spouse of the head of the
household).
(B) PERMISSIVE EXCLUSIONS FOR PUBLIC HOUSING.— In determining adjusted
income, a public housing agency may, in the discretion of the agency, establish
exclusions from the annual income of a family residing in a public housing dwelling unit.
Such exclusions may include the following amounts:
14
(i) EXCESSIVE TRAVEL EXPENSES.— Excessive travel expenses in an amount
not to exceed $25 per family per week, for employment- or education-related
travel.
(ii) EARNED INCOME.— An amount of any earned income of the family,
established at the discretion of the public housing agency, which may be based
on—
(I) all earned income of the family,
(II) the amount earned by particular members of the family;
(III) the amount earned by families having certain characteristics;
or
(IV) the amount earned by families or members during certain
periods or from certain sources.
(iii) OTHERS.— Such other amounts for other purposes, as the public
housing agency may establish.
27
(6) The term "public housing agency" means any State, county, municipality, or other
governmental entity or public body (or agency or instrumentality thereof) which is authorized to
engage in or assist in the development or operation of low-income housing.
(6) PUBLIC HOUSING AGENCY.—
(A) IN GENERAL.— Except as provided in subparagraph (B), the term "public housing
agency" means any State, county, municipality, or other governmental entity or public body (or
agency or instrumentality thereof) which is authorized to engage in or assist in the development
or operation of public housing.
(B) SECTION 8 PROGRAM.— For purposes of the program for tenant-based assistance
under section 8, such term includes—
(i) a consortia of public housing agencies that the Secretary determines has the
capacity and capability to administer a program for assistance under such section in an
efficient manner;
(ii) any other public or private nonprofit entity that, upon the effective date under
section 503(a) of the Quality Housing and Work Responsibility Act of 1998, was
administering any program for tenant-based assistance under section 8 of this Act (as in
effect before the effective date of such Act), pursuant to a contract with the Secretary or a
public housing agency; and
(iii) with respect to any area in which no public housing agency has been
organized or where the Secretary determines that a public housing agency is unwilling or
unable to implement a program for tenant-based assistance section 8, or is not
performing effectively—
(I) the Secretary or another public or private nonprofit entity that by
contract agrees to receive assistance amounts under section 8 and enter into
housing assistance payments contracts with owners and perform the other
functions of public housing agency under section 8; or
(II) notwithstanding any provision of State or local law, a public housing
agency for another area that contracts with the Secretary to administer a
program for housing assistance under section 8, without regard to any otherwise
applicable limitations on its area of operation.
27
Section 546 of the QHWRA amended section 3(b)(6) to read as shown.
15
(7) The term "State" includes the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust
Territory of the Pacific Islands.
(8) The term "Secretary" means the Secretary of Housing and Urban Development.
28
(9) 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 such term is defined in section 102 of the
Controlled Substances Act).
(10) MIXED-FINANCE PROJECT.— The term "mixed-finance project" means a public
housing project that meets the requirements of section 35.
(11) PUBLIC HOUSING AGENCY PLAN.— The term "public housing agency plan" means the
plan of a public housing agency prepared in accordance with section 5A.
(12) CAPITAL FUND.— The term "Capital Fund" means the fund established under section
9(d).
(13) OPERATING FUND.— The term "Operating Fund" means the fund established under
section 9(e).
(c) When used in reference to public housing:
(1) The term "development" means any or all undertakings necessary for planning, land
acquisition, demolition, construction, or equipment, in connection with a low-income housing
project. The term "development cost" comprises the costs incurred by a public housing agency in
such undertakings and their necessary financing (including the payment of carrying charges), and
in otherwise carrying out the development of such project, 29but does not include the costs
associated with the demolition of or remediation of environmental hazards associated with
public housing units that will not be replaced on the project site, or other extraordinary site
costs as determined by the Secretary. Construction activity in connection with a low-income
housing project may be confined to the reconstruction, remodeling, or repair of existing buildings.
(2) The term "operation" means any or all undertakings appropriate for management,
operation, services, maintenance, security (including the cost of security personnel), or financing
in connection with a low-income housing project. The term also means the financing of tenant
programs and services for families residing in low-income housing projects, particularly where
there is maximum feasible participation of the tenants in the development and operation of such
tenant programs and services. As used in this paragraph, the term "tenant programs and services"
includes the development and maintenance of tenant organizations which participate in the
management of low-income housing projects; the training of tenants to manage and operate such
projects and the utilization of their services in project management and operation; counseling on
household management, housekeeping, budgeting, money management, child care, and similar
matters; advice as to resources for job training and placement, education, welfare, health, and
other community services; services which are directly related to meeting tenant needs and
providing a wholesome living environment; and referral to appropriate agencies in the community
when necessary for the provision of such services. To the maximum extent available and
appropriate, existing public and private agencies in the community shall be used for the provision
of such services.
28
29
Section 506(4) of the QHWRA amended section 3(b) by adding paragraphs (9)-(13).
Section 520(a) of the QHWRA amended section 3(c)(1).
16
(3) The term "acquisition cost" means the amount prudently required to be expended by a
public housing agency in acquiring property for a low-income housing project.30
3132
The earnings of and benefits to any public housing resident resulting from participation
in a program providing employment training and supportive services in accordance with the
Family Support Act of 1988, section 22 of this Act, or any comparable Federal, State, or local law
shall not be considered as income for the purposes of determining a limitation on the amount of
rent paid by the resident during—
(1) the period that the resident participates in such program; and
(2) the period that—
(A) begins with the commencement of employment of the resident in the
first job acquired by the person after completion of such program that is not
funded by assistance under this Act; and
(B) ends on the earlier of—
(i) the date the resident ceases to continue employment without
good cause as the Secretary shall determine; or
(ii) the expiration of the 18-month period beginning on the date
referred to in subparagraph (A).
33
(d) DISALLOWANCE OF EARNED INCOME FROM RENT DETERMINATIONS.—
(1) IN GENERAL.— Notwithstanding any other provision of law, the rent payable
under subsection (a) by a family described in paragraph (3) of this subsection may not be
increased as a result of the increased income due to such employment during the 12month period beginning on the date on which the employment is commenced.
(2) PHASE-IN OF RENT INCREASES.— Upon the expiration of the 12-month period
referred to in paragraph (1), the rent payable by a family described in paragraph (3)
may be increased due to the continued employment of the family member described in
paragraph (3)(B), except that during the 12-month period beginning upon such
expiration the amount of the increase may not be greater than 50 percent of the amount
of the total rent increase that would be applicable but for this paragraph.
(3) ELIGIBLE FAMILIES.— A family described in this paragraph is a family—
(A) that—
(i) occupies a dwelling unit in a public housing project; or
(ii) receives assistance under section 8; and
(B)(i) whose income increases as a result of employment of a member of
the family who was previously unemployed for 1 or more years;
30
Section 622(c) of the Housing and Community Development Act of 1992, Pub. L. 102-550, amended this subsection by inserting after "project." the
following new paragraphs:
"(4) The term `congregate housing' means low-rent housing with which there is connected a central dining facility where wholesome and economical
meals can be served to occupants. Expenditures incurred by a public housing agency in the operation of a central dining facility in connection with
congregate housing (other than the cost of providing food and service) shall be considered a cost of operation of the project.
"(5) The terms `group home' and `independent living facility' have the meanings given such terms in section 811(k) of the Cranston-Gonzalez
National Affordable Housing Act.".
Because the amendatory instructions did not specify which occurrence of "project" the new paragraphs were to be placed after, the amendment could
not be executed. The new paragraphs were probably intended to be inserted after this paragraph.
31
Section 508(b)(1)(A) of the QHWRA amended section 3(c) by removing this undesignated paragraph. Note that section 508(b)(2) of the
QHWRA states that the undesignated paragraph shall continue to apply until October 1, 1999.
32
So in law. Section 515(a) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, approved November 28, 1990, added
section 22 of this Act (regarding public housing family investment centers). Section 515(b) of such Act added this undesignated paragraph.
33
Section 508(b)(1)(B)of the QHWRA amended section 3 by adding paragraphs (d) and (e) as shown.
17
(ii) whose earned income increases during the participation of a
family member in any family self-sufficiency or other job training
program; or
(iii) who is or was, within 6 months, assisted under any State
program for temporary assistance for needy families funded under part A
of title IV of the Social Security Act and whose earned income increases.
(4) APPLICABILITY.— This subsection and subsection (e) shall apply beginning
upon October 1, 1999, except that this subsection and subsection (e) shall apply with
respect to any family described in paragraph 3(A)(ii) only to the extent provided in
advance in appropriations Acts.
(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.
34
(f) AVAILABILITY OF INCOME MATCHING INFORMATION.—
(1) DISCLOSURE TO PHA.— A public housing agency shall require any family
described in paragraph (2) who receives information regarding income, earnings, wages,
or unemployment compensation from the Department of Housing and Urban
Development pursuant to income verification procedures of the Department to disclose
such information, upon receipt of the information, to the public housing agency that
owns or operates the public housing dwelling unit in which such family resides or that
provides the housing assistance under this Act on behalf of such family, as applicable.
(2) FAMILIES COVERED.— A family described in this paragraph is a family that
resides in a dwelling unit—
(A) that is a public housing dwelling unit; or
(B) for which tenant-based assistance is provided under section 8.
LOANS FOR LOWER INCOME HOUSING PROJECTS
34
Section 508(d)(1) of the QHWRA amended section 3 by adding paragraph (f) as shown.
18
SEC. 4. [42 U.S.C. 1437b] (a) The Secretary may make loans or commitments to make
loans to public housing agencies to help finance or refinance the development, acquisition, or
operation of low-income housing projects by such agencies. Any contract for such loans and any
amendment to a contract for such loans shall provide that such loans shall bear interest at a rate
specified by the Secretary which shall not be less than a rate determined by the Secretary of the
Treasury taking into consideration the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the average
maturities of such loans, plus one-eighth of 1 per centum. Such loans shall be secured in such
manner and shall be repaid within such period not exceeding forty years, or not exceeding forty
years from the date of the bonds evidencing the loan, as the Secretary may determine. The
Secretary may require loans or commitments to make loans under this section to be pledged as
security for obligations issued by a public housing agency in connection with a low-income
housing project.
(b) The Secretary may issue and have outstanding at any one time notes and other
obligations for purchase by the Secretary of the Treasury in an amount which will not, unless
authorized by the President, exceed $1,500,000,000. For the purpose of determining obligations
incurred to make loans pursuant to this Act against any limitation otherwise applicable with
respect to such loans, the Secretary shall estimate the maximum amount to be loaned at any one
time pursuant to loan agreements then outstanding with public housing agencies. Such notes or
other obligations shall be in such forms and
denominations and shall be subject to such terms and conditions as may be prescribed by the
Secretary with the approval of the Secretary of the Treasury. The notes or other obligations
issued under this subsection shall have such maturities and bear such rate or rates of interest as
shall be determined by the Secretary of the Treasury. The Secretary of the Treasury is authorized
and directed to purchase any notes or other obligations of the Secretary issued hereunder and for
such purpose is authorized to use as a public debt transaction the proceeds from the sale of any
securities issued under chapter 31 of title 31, United States Code, and the purposes for which
securities may be issued under such chapter are extended to include any purchases of such
obligations. The Secretary of the Treasury may at any time sell any of the notes or other
obligations acquired by him under this section. All redemptions, purchases, and sales by the
Secretary of the Treasury of such notes or other obligations shall be treated as public debt
transactions of the United States.
(c)(1) At such times as the Secretary may determine, and in accordance with such
accounting and other procedures as the Secretary may prescribe, each loan made by the Secretary
under subsection (a) that has any principal amount outstanding or any interest amount outstanding
or accrued shall be forgiven; and the terms and conditions of any contract, or any amendment to a
contract, for such loan with respect to any promise to repay such principal and interest shall be
canceled. Such cancellation shall not affect any other terms and conditions of such contract, which
shall remain in effect as if the cancellation had not occurred. This paragraph shall not apply to any
loan the repayment of which was not to be made using annual contributions, or to any loan all or
part of the proceeds of which are due a public housing agency from contractors or others.
(2)(A) On the date of the enactment of the Housing and Community Development
Reconciliation Amendments of 1985,35 each note or other obligation issued by the Secretary to the
Secretary of the Treasury pursuant to subsection (b), together with any promise to repay the
35
April 7, 1986.
19
principal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and
any other term or condition specified by each such obligation shall be canceled.
(B) On September 30, 1986, and on any subsequent September 30, each such note or
other obligation issued by the Secretary to the Secretary of the Treasury pursuant to subsection
(b) during the fiscal year ending on such date, together with any promise to repay the principal
and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other
term or condition specified by each such obligation shall be canceled.
(3) Any amount of budget authority (and contract authority) that becomes available during
any fiscal year as a result of the forgiveness of any loan, note, or obligation under this subsection
shall be rescinded.
CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS
SEC. 5. [42 U.S.C. 1437c] (a)(1) The Secretary may make annual contributions to public
housing agencies to assist in achieving and maintaining the lower income character of their
projects. The Secretary shall embody the provisions for such annual contributions in a contract
guaranteeing their payment. The contribution payable annually under this section shall in no case
exceed a sum equal to the annual amount of principal and interest payable on obligations issued by
the public housing agency to finance the development or acquisition cost of the lower income
project involved. Annual contributions payable under this section shall be pledged, if the Secretary
so requires, as security for obligations issued by a public housing agency to assist the development
or acquisition of the project to which annual contributions relate and shall be paid over a period
not to exceed 40 years.
(2) The Secretary may make contributions (in the form of grants) to public housing
agencies to cover the development cost of public housing projects. The contract under which such
contributions shall be made shall specify the amount of capital contributions required for each
project to which the contract pertains, and that the terms and conditions of such contract shall
remain in effect for a 40-year period.
(3) The amount of contributions that would be established for a newly constructed project
by a public housing agency designed to accommodate a number of families of a given size and
kind may be established under this section for a project by such public housing agency that would
provide housing for the comparable number, sizes, and kinds of families through the acquisition
and rehabilitation, or use under lease, of structures that are suitable for low-income housing use
and obtained in the local market.
(b) The Secretary may prescribe regulations fixing the maximum contributions available
under different circumstances, giving consideration to cost, location, size, rent-paying ability of
prospective tenants, or other factors bearing upon the amounts and periods of assistance needed
to achieve and maintain low rentals. Such regulations may provide for rates of contribution based
upon development, acquisition, or operation costs, number of dwelling units, number of persons
housed, interest charges, or other appropriate factors.
(c)(1) The Secretary may enter into contracts for annual contributions aggregating not
more than $7,875,049,000 per annum, which amount shall be increased by $1,494,400,000 on
October 1, 1980, and by $906,985,000 on October 1, 1981. The additional authority to enter into
such contracts provided on or after October 1, 1980, shall be effective only in such amounts as
may be approved in appropriation Acts. In addition, the aggregate amount which may be
20
obligated over the duration of the contracts may not exceed $31,200,000 with respect to the
additional authority provided on October 1, 1980, and $18,087,370,000 with respect to the
additional authority provided on October 1, 1981.
(2) The Secretary shall enter into only such new contracts for preliminary loans as are
consistent with the number of dwelling units for which contracts for annual contributions may be
entered into.
(3) The full faith and credit of the United States is solemnly pledged to the payment of all
annual contributions contracted for pursuant to this section, and there are hereby authorized to be
appropriated in each fiscal year, out of any money in the Treasury not otherwise appropriated, the
amounts necessary to provide for such payments.
(4) All payments of annual contributions pursuant to this section shall be made out of any
funds available for purposes of this Act when such payments are due, except that funds obtained
through the issuance of obligations pursuant to section 4(b) (including repayments or other
realizations of the principal of loans made out of such funds) shall not be available for the payment
of such annual contributions.
(5) During such period as the Secretary may prescribe for starting construction, the
Secretary may approve the conversion of public housing development authority 36for use under
section 14 orfor use under section 9 or for use for the acquisition and rehabilitation of property to
be used in public housing, if the public housing agency, after consultation with the unit of local
government,37 certifies that such assistance would be more effectively used for such purpose, and
if the total number of units assisted will not be less than 90 per centum of the units covered by the
original reservation.
(6) The aggregate amount of budget authority which may be obligated for contracts for
annual contributions and for grants under section 17 is increased by $9,912,928,000 on October
1, 1983, and by such sums as may be approved in appropriation Acts on October 1, 1984. The
aggregate amount of budget authority that may be obligated for contracts for annual contributions
for assistance under section 8, for contracts referred to in paragraphs (7)(A)(iv) and (7)(B)(iv),
for grants for public housing, for comprehensive improvement assistance, and for amendments to
existing contracts, is increased (to the extent approved in appropriation Acts) by $7,167,000,000
on October 1, 1987, and by $7,300,945,000 on October 1, 1988. The aggregate amount of
budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to
the extent approved in appropriation Acts) by $16,194,000,000 on October 1, 1990, and by
$14,709,400,000 on October 1, 1991. The aggregate amount of budget authority that may be
obligated for assistance referred to in paragraph (7) is increased (to the extent approved in
appropriation Acts) by $14,710,990,520 on October 1, 1992, and by $15,328,852,122 on October
1993.
(7)(A) Using the additional budget authority provided under paragraph (6) and the
balances of budget authority that become available during fiscal year 1993, the Secretary shall, to
the extent approved in appropriation Acts, reserve authority to enter into obligations
aggregating—
(i) for public housing grants under subsection (a)(2), not more than $830,900,800,
of which amount not more than $257,320,000 shall be available for Indian housing;
36
37
Section 522(b)(1) of the QHWRA amended section 5(c)(5).
So in law.
21
(ii) for assistance under section 8, not more than $1,977,662,720, of which
$20,000,000 shall be available for 15-year contracts for project-based assistance to be
used for a multicultural tenant empowerment and homeownership project located in the
District of Columbia, except that assistance provided for such project shall not be
considered for purposes of the percentage limitations under section 8(i)(2); except that not
more than 49 percent of any amounts appropriated under this clause may be used for
vouchers under section 8(o);
(iii) for comprehensive improvement assistance grants under section 14(k), not
more than $3,100,000,000;
(iv) for assistance under section 8 for property disposition, not more than
$93,032,000;
(v) for assistance under section 8 for loan management, not more than
$202,000,000;
(vi) for extensions of contracts expiring under section 8, not more than
$6,746,135,000, which shall be for 5-year contracts for assistance under section 8 and for
loan management assistance under such section;
(vii) for amendments to contracts under section 8, not more than $1,350,000,000;
(viii) for public housing lease adjustments and amendments, not more than
$83,055,000;
(ix) for conversions from leased housing contracts under section 23 of this Act (as
in effect immediately before the enactment of the Housing and Community Development
Act of 1974) to assistance under section 8, not more than $12,767,000; and
(x) for grants under section 24 for revitalization of severely distressed public
housing, not more than $300,000,000.
(B) Using the additional budget authority provided under paragraph (6) and the balances
of budget authority that become available during fiscal year 1994, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to enter into obligations aggregating—
(i) for public housing grants under subsection (a)(2), not more than $865,798,634,
of which amount not more than $268,127,440 shall be available for Indian housing;
(ii) for assistance under section 8, not more than $2,060,724,554, of which
$20,000,000 shall be available for 15-year contracts for project-based assistance to be
used for a multicultural tenant empowerment and homeownership project located in the
District of Columbia, except that assistance provided for such project shall not be
considered for purposes of the percentage limitations under section 8(i)(2); except that not
more than 49 percent of any amounts appropriated under this clause may be used for
vouchers under section 8(o);
(iii) for comprehensive improvement assistance grants under section 14(k), not
more than $3,230,200,000;
(iv) for assistance under section 8 for property disposition, not more than
$96,939,344;
(v) for assistance under section 8 for loan management, not more than
$210,484,000;
(vi) for extensions of contracts expiring under section 8, not more than
$7,029,472,670, which shall be for 5-year contracts for assistance under section 8 and for
loan management assistance under such section;
22
(vii) for amendments to contracts under section 8, not more than $1,406,700,000;
(viii) for public housing lease adjustments and amendments, not more than
$86,543,310;
(ix) for conversions from leased housing contracts under section 23 of this Act (as
in effect immediately before the enactment of the Housing and Community Development
Act of 1974) to assistance under section 8, not more than $13,303,214; and
(x) for grants under section 24 for revitalization of severely distressed public
housing, not more than $312,600,000.
(C)(i) Any amount available for the conversion of a project to assistance under section
8(b)(1), if not required for such purpose, shall be used for assistance under section 8(b)(1).
(ii) Any amount available for assistance under section 8 for property disposition, if not
required for such purpose, shall be used for assistance under section 8(b)(1).
(8) Any amount available for Indian housing under subsection (a) that is recaptured shall
be used only for such housing.
(d) Any contract for loans or annual contributions, or both, entered into by the Secretary
with a public housing agency, may cover one or more than one low-income housing project
owned by such public housing agency; in the event the contract covers two or more projects, such
projects may, for any of the purposes of this Act and of such contract (including, but not limited
to, the determination of the amount of the loan, annual contributions, or payments in lieu of taxes,
specified in such contract), be treated collectively as one project.
(e) In recognition that there should be local determination of the need for low-income
housing to meet needs not being adequately met by private enterprise—
(1) the Secretary shall not make any contract with a public housing agency for
preliminary loans (all of which shall be repaid out of any moneys which become available
to such agency for the development of the projects involved) for surveys and planning in
respect to any low-income housing projects (i) unless the governing body of the locality
involved has by resolution approved the application of the public housing agency for such
preliminary loan; and (ii) unless the public housing agency has demonstrated to the
satisfaction of the Secretary that there is need for such low-income housing which is not
being met by private enterprise; and
(2) the Secretary shall not make any contract for loans (other than preliminary
loans) or for contributions pursuant to this Act unless the governing body of the locality
involved has entered into an agreement with the public housing agency providing for the
local cooperation required by the Secretary pursuant to this Act; 38the Secretary shall
require that each such agreement shall provide that, notwithstanding any order,
judgment, or decree of any court (including any settlement order), before making any
amounts that are provided pursuant to any contract for contributions under this title
available for use for the development of any housing or other property not previously
used as public housing, the public housing agency shall (A) notify the chief executive
officer (or other appropriate official) of the unit of general local government in which
the public housing for which such amounts are to be so used is located (or to be located)
of such use, and (B) pursuant to the request of such unit of general local government,
provide such information as may reasonably be requested by such unit of general local
38
Section 518(b) of the QHWRA amended section 5(e)(2).
23
government regarding the public housing to be so assisted (except to the extent otherwise
prohibited by law).
(f) Subject to the specific limitations or standards in this Act governing the terms of sales,
rentals, leases, loans, contracts for annual contributions, or other agreements, the Secretary may,
whenever he deems it necessary or desirable in the fulfillment of the purposes of this Act, consent
to the modification, with respect to rate of interest, time of payment of any installment of principal
or interest, security, amount of annual contribution, or any other term, of any contract or
agreement of any kind to which the Secretary is a party. When the Secretary finds that it would
promote economy or be in the financial interest of the Federal Government or is necessary to
assure or maintain the lower income character of the project or projects involved, any contract
heretofore or hereafter made for annual contributions, loans, or both, may be amended or
superseded by a contract entered into by mutual agreement between the public housing agency
and the Secretary. Contracts may not be amended or superseded in a manner which would impair
the rights of the holders of any outstanding obligations of the public housing agency involved for
which annual contributions have been pledged. Any rule of law contrary to this provision shall be
deemed inapplicable.
(g) In addition to the authority of the Secretary under subsection (a) to pledge annual
contributions as security for obligations issued by a public housing agency, the Secretary is
authorized to pledge annual contributions as a guarantee of payment by a public housing agency
of all principal and interest on obligations issued by it to assist the development or acquisition of
the project to which the annual contributions relate, except that no obligation shall be guaranteed
under this subsection if the income thereon is exempt from Federal taxation.
39
(h) AUDITS.—
(1) BY SECRETARY AND COMPTROLLER GENERAL.— Each contract for contributions for any
assistance under this Act to a public housing agency shall provide that the Secretary, the
Inspector General of the Department of Housing and Urban Development, and the Comptroller
General of the United States, or any of their duly authorized representatives, shall, for the
purpose of audit and examination, have access to any books, documents, papers, and records of
the public housing agency that are pertinent to this Act and to its operations with respect to
financial assistance under the this Act.
(2) WITHHOLDING OF AMOUNTS FOR AUDITS UNDER SINGLE AUDIT ACT.— The Secretary may,
in the sole discretion of the Secretary, arrange for and pay the costs of an audit required under
chapter 75 of title 31, United States Code. In such circumstances, the Secretary may withhold,
from assistance otherwise payable to the agency under this Act, amounts sufficient to pay for the
reasonable costs of conducting an acceptable audit, including, when appropriate, the reasonable
costs of accounting services necessary to place the agency's books and records in auditable
condition. As agreed to by the Secretary and the Inspector General, the Inspector General may
arrange for an audit under this paragraph.
40
(h) Notwithstanding any other provision of law, a public housing agency may sell a lowincome housing project to its lower income tenants, on such terms and conditions as the agency
may determine, without affecting the Secretary's commitment to pay annual contributions with
39
40
Section 566 of the QHWRA amended section 5 by adding a revised paragraph (h) as shown.
Section 518(a)(1)(A) of the QHWRA amended section 5 by deleting paragraphs (h)-(k).
24
respect to that project, but such contribu-tions shall not exceed the maximum contributions
authorized under subsection (a) of this section.41
(i) In entering into contracts for assistance with respect to newly constructed or
substantially rehabilitated projects under this section (other than for projects assisted pursuant to
section 8), the Secretary shall require the installation of a passive or active solar energy system in
any such project where the Secretary determines that such installation would be cost effective
over the estimated life of the system.
(j)(1) After September 30, 1987, in providing assistance under this Act to a public housing
agency for public housing, the Secretary shall reserve funds for the development of public housing
only if—
(A) the Secretary determines that additional amounts are required to complete the
development of dwelling units for which amounts are obligated on or before such date;
(B) the public housing agency certifies to the Secretary that 85 percent of the
public housing dwelling units of the public housing agency—
(i) are maintained in substantial compliance with the housing quality
standards established by the Secretary under section 8(o)(6);
(ii) will be so maintained upon completion of modernization for which
funding has been awarded; or
(iii) will be so maintained upon completion of modernization for which
applications are pending that have been submitted in good faith under section 14
(or a comparable State or local government program) and that there is a
reasonable expectation, as determined by the Secretary in writing, that the
applications would be approved;
(C) the public housing agency certifies that such development—
(i) will replace dwelling units that are disposed of or demolished by the
public housing agency, including dwelling units disposed of or lost through sale to
tenants or through units redesign; or
(ii) is required to comply with court orders or directions of the Secretary;
(D) the public housing agency certifies that it has demands for family housing not
satisfied by the rental assistance programs established in subsection (b) or (o) of section 8
for which it plans to construct or acquire projects of not more than 100 units; or42
(F)40 the Secretary makes such reservation under paragraph (2).
(E)40 in the case of an application for development of projects (or portions of
projects) designated under section 7(a)(1) for occupancy for elderly families, only if the
agency certifies to the Secretary that the use of such assistance will assist in expanding the
housing available for eligible persons with disabilities identified in the allocation plan for
the agency submitted under section 7(f); and40
(2)(A) Notwithstanding any other provision of law, the Secretary may reserve not more
than 20 percent of any amounts appropriated for development of public housing in each fiscal year
for the substantial redesign, reconstruction, or redevelopment of existing obsolete public housing
41
Section 1002(c) of Public Law 104-19, approved July 27, 1995, amended this subsection by striking the last sentece, which read as follows: "Any
such sale shall be subject to the restrictions contained in section 304(g).". Subsection (d) of such section 1002 provides as follows:
"(d) Subsections (a), (b), and (c) shall be effective for applications for the demolition, disposition, or conversion to homeownership of public housing
approved by the Secretary, and other consolidation and relocation activities of public housing agencies undertaken, on, before, or after September 30,
1995 and on or before September 30, 1998.".
42
So in law.
25
projects or buildings and for the costs of improving the management and operation of projects
undergoing redesign, reconstruction, or redevelopment under this paragraph (to the extent that
such improvement is necessary to maintain the physical improvements resulting from such
redesign, reconstruction, or redevelopment).
(B) For purposes of this paragraph, the term "obsolete public housing project or building"
means a public housing project or building (i) having design or marketability problems resulting in
vacancy in more than 25 percent of the units, or (ii)(I) for which the costs for redesign,
reconstruction, or redevelopment (including any costs for lead-based paint abatement activities)
exceed 70 percent of the total development cost limits for new construction of similar units in the
area, and (II) which has an occupancy density or a building height that is significantly in excess of
that which prevails in the neighborhood in which the project is located, a bedroom configuration
that could be altered to better serve the needs of families seeking occupancy to dwellings of the
public housing agency, significant security problems in and around the project, or significant
physical deterioration or inefficient energy and utility systems.
(C) The Secretary shall allocate amounts reserved under this section43 to public housing
agencies on the basis of a competition among public housing agencies applying for such amounts.
The competition shall be based on—
(i) the management capability of the public housing agency to carry out the
redesign, reconstruction, or redevelopment;
(ii) the expected term of the useful life of the project or building after redesign,
reconstruction or redevelopment; and
(iii) the likelihood of achieving full occupancy within the projects or buildings of
the agency that are to be assisted under this paragraph.
(D) The Secretary shall establish limitations on the total costs of any project or building
receiving amounts under this paragraph for redesign, reconstruction, and redevelopment. The cost
limitations shall not be related to the total development cost system for new development or to
the cost limits for modernization and shall recognize the higher direct costs of such work.
(E) Assistance may not be provided under this paragraph for any project or building
assisted under section 14.
(F)(i) For each fiscal year for which amounts are reserved or appropriated for the
purposes of this paragraph, the Secretary shall establish performance goals to evaluate the
effectiveness of the use of such amounts. The goals shall—
(I) be designed to maximize the effectiveness of the expenditures in a quantifiable
manner; and
(II) describe the number of units to be redesigned, redeveloped, and reconstructed
with such amounts and improvements in the management of projects so assisted to be
accomplished with such amounts.
(ii) Not later than 60 days after the end of each such fiscal year, the Secretary shall submit
a report to the Congress, which shall describe the performance goals established for the fiscal
year, the activities carried out with such amounts, and a statement of whether the performance
goals were met. If the performance goals were not met, the report shall contain—
(I) an explanation of why the goals were not met and a description of any
managerial deficiencies or legal problems that contributed to not meeting such goals;
43
So in law. Probably intended to refer to this paragraph.
26
(II) plans and a schedule for achieving the level of performance under such
performance goals;
(III) recommendations for legislative or regulatory changes necessary to achieve
the performance goals or improve performance; and
(IV) a statement of whether the performance goals established for the fiscal year
were impractical or infeasible, and, if so, the factors that contributed and resulted in
establishing such impractical or infeasible goals and recommendations of actions to meet
such goals, which may include changing the goals or altering or eliminating the program
under this paragraph for major reconstruction of projects.
(G)(i) In fiscal years 1993 and 1994, the Secretary shall commit for use under clause (ii)
not less than 5 percent of any amounts reserved under subparagraph (A) for each such fiscal year.
(ii) The amounts referred to in clause (i) shall be available to public housing agencies only
for use for projects (or portions of projects) designated for occupancy under section 7(a)(1) and
(e) by disabled families.
(iii) In allocating amounts reserved under this subparagraph among public housing
agencies, the Secretary shall consider the need for any such amounts as identified in the allocation
plans submitted by agencies under section 7(f).
(3)(A) In fiscal years 1993 and 1994, the Secretary shall reserve for use under
subparagraph (B) not less than 5 percent of any amounts approved in appropriation Acts for each
such fiscal year for public housing grants under subsection (a)(2) that are not designated under
such Acts for use under paragraph (2) of this subsection for the substantial redesign,
reconstruction, or redevelopment of existing public housing projects, buildings, or units.
(B) Any amount reserved under subparagraph (A) shall be available only to public housing
agencies that have designated projects (or portions of projects) for occupancy under section
7(a)(1) for use only for the costs of development or acquisition of public housing projects or
buildings designated for occupancy under section 7(a)(1) and (e) by disabled families. A building
so assisted may not contain more than 25 dwelling units, except that the Secretary may (in the
discretion of the Secretary) waive such limitation for a building.
(C) The Secretary shall carry out a competition for budget authority reserved under
subparagraph (A) among eligible public housing agencies and shall allocate such budget authority
to public housing agencies pursuant to the competition, based on (i) the need of the agency for
such assistance (taking into consideration the allocation plans submitted under section 7(f) by
agencies), and (ii) the extent to which the public housing projects and buildings to be developed
or assisted meet the requirements of section 7(e).
(k) After the reservation of public housing development funds to a public housing agency,
the Secretary may not recapture any of the amounts included in such reservation due to the failure
of a public housing agency to begin construction or rehabilitation, or to complete acquisition,
during the 30-month period following the date of such reservation. During such 30-month period,
the public housing agency shall be permitted to change the site of the public housing project or
reformulate the project, if not less than the original number of dwelling units are to be
constructed, rehabilitated, or acquired. There shall be excluded from the computation of such 30month period any delay in the beginning of construction or rehabilitation of such project caused
by (1) the failure of the Secretary to process such project within a reasonable period of time; (2)
any environmental review requirement; (3) any legal action affecting such project; or (4) any other
factor beyond the control of the public housing agency.
27
44
(i) PROHIBITION ON USE OF FUNDS.— None of the funds made available to the
Department of Housing and Urban Development to carry out this Act, which are obligated to
State or local governments, public housing agencies, housing finance agencies, or other public
or quasi-public housing agencies, shall be used to indemnify contractors or subcontractors of
the government or agency against costs associated with judgments of infringement of intellectual
property rights.
45
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 such 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 on October 1,
1999, or the first fiscal year thereafter for which the public housing agency initially
receives assistance under this Act.
(b) ANNUAL PLAN.—
(1) IN GENERAL.— Effective beginning upon October 1, 1999, each public housing
agency shall submit to the Secretary an annual public housing agency plan under this
subsection for each fiscal year for which the public housing agency receives assistance
under section 8(o) or 9.
(2) UPDATES.— For each fiscal year after the initial submission of an annual plan
under this subsection 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 such plans.
(2) CONTENTS.— The procedures established under paragraph (1) shall provide
that a public housing agency shall—
(A) in developing the plan consult with the resident advisory board
established under subsection (e); and
(B) ensure that the plan under this section is consistent with the applicable
comprehensive housing affordability strategy (or any consolidated plan
44
Section 510 of the QHWRA amended section 5 by adding this paragraph as (l). Section 518(a)(1)(B) of the QHWRA changed the designation
from (l) to (i).
45
Section 511(a) of the QHWRA added section 5A. Section 511(e) of the QHWRA made this amendment effective upon enactment of the QHWRA
(October 21, 1998).
28
incorporating such 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 subsection (b) 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 housing dwelling units and housing
assistance under section 8(o), including—
(A) the procedures for maintaining waiting lists for admissions to public
housing projects of the agency, which may include a system of site-based waiting
lists under section 6(r); and
(B) the admissions policy under section 16(a)(3)(B) for deconcentration of
lower-income families.
(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 families assisted 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, assisted, or operated by the public housing agency (which shall include
measures necessary for the prevention or eradication of pest infestation, including 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 projects owned,
assisted, or operated by the public housing agency, a plan describing the capital
improvements necessary to ensure long-term physical and social viability of the projects.
(8) DEMOLITION AND DISPOSITION.— With respect to public housing projects owned
by the public housing agency—
(A) a description of any housing for which the PHA will apply for
demolition or disposition under section 18; and
(B) a timetable for the demolition or disposition.
29
(9) DESIGNATION OF HOUSING FOR ELDERLY AND DISABLED FAMILIES.— With respect
to public housing projects owned, assisted, or operated by the public housing agency, a
description of any projects (or portions thereof) that the public housing agency has
designated or will apply for designation for occupancy by elderly and disabled families
in accordance with section 7.
(10) CONVERSION OF PUBLIC HOUSING.— With respect to public housing owned 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 33 or that
the public housing agency plans to voluntarily convert under section 22;
(B) an analysis of the projects or buildings required to be converted under
section 33; and
(C) a statement of the amount of assistance received under this Act to be
used for rental assistance or other housing assistance in connection with such
conversion.
(11) HOMEOWNERSHIP.— A description of any homeownership programs of the
agency under section 8(y) or for which the public housing agency has applied or will
apply for approval under section 32.
(12) COMMUNITY SERVICE AND SELF-SUFFICIENCY.— 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;
(C) how the public housing agency will comply with the requirements of
subsections (c) and (d) of section 12 (relating to community service and treatment
of income changes resulting from welfare program requirements).
(13) SAFETY AND CRIME PREVENTION.— A plan established by the public housing
agency, which shall be subject to the following requirements:
(A) SAFETY MEASURES.— The plan shall provide, on a project-by-project or
jurisdiction-wide basis, for measures to ensure the safety of public housing
residents.
(B) ESTABLISHMENT.— The plan shall be established in consultation with
the police officer or officers in command for the appropriate precinct or police
department.
(C) CONTENT.— The plan shall describe the need for measures to ensure
the safety of public housing residents and for crime prevention measures,
describe any such activities conducted or to be conducted by the agency, and
provide for coordination between the agency and the appropriate police precincts
for carrying out such measures and activities.
(D) SECRETARIAL ACTION.— If the Secretary determines, at any time, that
the security needs of a project are not being adequately addressed by the plan, or
that the local police precinct is not complying with the plan, the Secretary may
mediate between the public housing agency and the local precinct to resolve any
issues of conflict.
30
(14) PETS.— The requirements of the agency, pursuant to section 31, relating to
pet ownership in public housing.
(15) CIVIL RIGHTS CERTIFICATION.— A 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 fair housing.
(16) ANNUAL AUDIT.— The results of the most recent fiscal year audit of the public
housing agency under section 5(h)(2).
(17) ASSET MANAGEMENT.— A statement of how the agency will carry out its asset
management functions with respect to the public housing
inventory of the agency, including how the agency will plan for the long-term operating, capital
investment, rehabilitation, modernization, disposition, and other needs for such inventory.
(18) OTHER.— Any other information required by law to be included in a public
housing agency plan.
(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
assisted by the public housing agency.
(2) FUNCTIONS.— Each resident advisory board established under this subsection
by a public housing agency shall assist and make recommendations regarding the
development of the public housing agency plan for the agency. The agency shall consider
the recommendations of the resident advisory boards in preparing the final public
housing agency plan, and shall include, in the public housing agency plan submitted to
the Secretary under this section, a copy of the recommendations and a description of the
manner in which the recommendations were addressed.
(3) WAIVER.— The Secretary may waive the requirements of this subsection with
respect to the establishment of resident advisory boards for a public housing agency if
the agency demonstrates to the satisfaction of the Secretary that there exist resident
councils or other resident organizations of the public housing agency that—
(A) adequately represent the interests of the residents of the public
housing agency; and
(B) have the ability to perform the functions described in paragraph (2).
(1) IN GENERAL.— In developing a public housing agency plan under this section,
the board of directors or similar governing body of a public housing agency shall
conduct a public hearing to discuss the public housing agency plan and to invite public
comment regarding that plan. The hearing shall be conducted at a location that is
convenient to residents.
(2) AVAILABILITY OF INFORMATION AND NOTICE.— Not later than 45 days before the
date of a hearing conducted under paragraph (1), the public housing agency shall—
(A) make the proposed public housing agency plan and all information
relevant to the hearing and proposed plan available for inspection by the public
at the principal office of the public housing agency during normal business
hours; and
31
(B) publish a notice informing the public that—
(i) that the information is available as required under
subparagraph (A); and
(ii) that a public hearing under paragraph (1) will be conducted.
(3) ADOPTION OF PLAN.— A public housing agency may adopt a public housing
agency plan and submit the plan to the Secretary in accordance with this section only
after—
(A) conducting a public hearing under paragraph (1);
(B) considering all public comments received; and
(C) making any appropriate changes in the public housing agency plan, in
consultation with the resident advisory board.
(4) ADVISORY BOARD CONSULTATION ENFORCEMENT.— Pursuant to a written request
made by the resident advisory board for a public housing agency that documents a
failure on the part of the agency to provide adequate notice and opportunity for comment
under this subsection and a finding by the Secretary of good cause within the time period
provided for in subsection (i)(4), the Secretary may require the public housing agency to
adequately remedy such failure before final approval of the public housing agency plan
under 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 a significant amendment or modification
may not—
(A) be adopted, other than at a duly called meeting of board of directors
(or similar governing body) of the public housing agency that is open to the
public; and
(B) be implemented, until notification of the amendment or modification is
provided to the Secretary and approved in accordance with subsection (i).
(2) CONSISTENCY AND NOTICE.— Each significant amendment or modification to a
public housing agency plan submitted to the Secretary under this section shall—
(A) meet the requirements under subsection (c)(2) (relating to consultation
with resident advisory board and consistency with comprehensive housing
affordability strategies); and
(B) be subject to the notice and public hearing requirements of subsection
(f).
(h) SUBMISSION OF PLANS.—
(1) 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.
(2) ANNUAL SUBMISSION.— Not later than 75 days before the start of the fiscal year
of the public housing agency, after submission of the initial 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.
32
(i) REVIEW AND DETERMINATION OF COMPLIANCE.—
(1) REVIEW.— Subject to paragraph (2), 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 paragraph, the Secretary shall review the public housing agency plan (including any
amendments or modifications thereto) and determine whether the contents of the plan—
(A) set forth the information required by this section and this Act to be
contained in a public housing agency plan;
(B) 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 for the jurisdiction in
which the public housing agency is located; and
(C) are not prohibited by or inconsistent with any provision of this title or
other applicable law.
(2) ELEMENTS EXEMPTED FROM REVIEW.— The Secretary may, by regulation,
provide that one or more elements of a public housing agency plan shall be reviewed
only if the element is challenged, except that the Secretary shall review the information
submitted in each plan pursuant to paragraphs (3)(B), (8), and (15) of subsection (d).
(3) DISAPPROVAL.— The Secretary may disapprove a public housing agency plan
(or any amendment or modification thereto) only if Secretary determines that the
contents of the plan (or amendment or modification) do not comply with the requirements
under subparagraph (A) through (C) of paragraph (1).
(4) DETERMINATION OF COMPLIANCE.—
(A) IN GENERAL.— Except as provided in subsection (j)(2), not later than 75
days after the date on which a public housing agency plan is submitted in
accordance with this section, the Secretary shall make the determination under
paragraph (1) and provide written notice to the public housing agency if the plan
has been disapproved. If the Secretary disapproves the plan, the notice shall state
with specificity the reasons for the disapproval.
(B) FAILURE TO PROVIDE NOTICE OF DISAPPROVAL.— In the case of a plan
disapproved, if the Secretary does not provide notice of disapproval under
subparagraph (A) before the expiration of the period described in subparagraph
(A), the Secretary shall be considered, for purposes of this Act, to have made a
determination that the plan complies with the requirements under this section and
the agency shall be considered to have been notified of compliance upon the
expiration of such period. The preceding sentence shall not preclude judicial
review regarding such compliance pursuant to chapter 7 of title 5, United States
Code, or an action regarding such compliance under section 1979 of the Revised
Statutes of the United States (42 U.S.C. 1983).
(5) PUBLIC AVAILABILITY.— A public housing agency shall make the approved plan
of the agency available to the general public.
(j) TROUBLED AND AT-RISK PHAS.—
(1) IN GENERAL.— The Secretary may require, for each public housing agency that
is at risk of being designated as troubled under section 6(j)(2) or is designated as
troubled under section 6(j)(2), that the public housing agency plan for such agency
33
include such additional information as the Secretary determines to be appropriate, in
accordance with such standards as the Secretary may establish or in accordance with
such determinations as the Secretary may make on an agency-by-agency basis.
(2) 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)(2).
(k) 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)(2); and
(C) public housing agencies that only administer tenant-based assistance and that
do not own or operate public housing.
(l) COMPLIANCE WITH PLAN.—
(1) 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.
(2) Investigation and enforcement.— In carrying out this title, the Secretary
shall—
(A) provide an appropriate response to any complaint concerning
noncompliance by a public housing agency with the applicable public housing
agency plan; and
(B) 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.
CONTRACT PROVISIONS AND REQUIREMENTS
SEC. 6. [42 U.S.C. 1437d] (a) The Secretary may include in any contract for loans,
contributions, sale, lease, mortgage, or any other agreement or instrument made pursuant to this
Act, such covenants, conditions, or provisions as he may deem necessary in order to insure the
lower income character of the project involved, 46in a manner consistent with the public housing
agency plan. 47 Any such contract may contain a condition requiring the maintenance of an open
space or playground in connection with the housing project involved if deemed necessary by the
Secretary for the safety or health of children. Any such contract shall require that, except in the
case of housing predominantly for elderly or disabled families, high-rise elevator projects shall not
be provided for families with children unless the Secretary makes a determination that there is no
practical alternative.
46
Section 511(d)(1) of the QHWRA amended section 5(a). Section 511(e) of the QHWRA made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
47
Section 511(d)(2) of the QHWRA amended section 5(a). Section 511(e) of the QHWRA made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
34
(b)(1) Each contract for loans (other than preliminary loans) or contributions for the
development, acquisition, or operation of public housing shall provide that the total development
cost of the project on which the computation of any annual contributions under this Act may be
based may not exceed the amount determined under paragraph (2) (for the appropriate structure
type) unless the Secretary provides otherwise, and in any case may not exceed 110 per centum of
such amount unless the Secretary for good cause determines otherwise.
(2) For purposes of paragraph (1), the Secretary shall determine the total development
cost by multiplying the construction cost guideline for the project (which shall be determined by
averaging the current construction costs, as listed by not less than 2 nationally recognized
residential construction cost indices, for publicly bid construction of a good and sound quality)
by—
(A) in the case of elevator type structures, 1.6; and
(B) in the case of nonelevator type structures, 1.75.
48
(3) In calculating the total development cost of a project under paragraph (2), the
Secretary shall consider only capital assistance provided by the Secretary to a public housing
agency that are authorized for use in connection with the development of public housing, and
shall exclude all other amounts, including amounts provided under—
(A) the HOME investment partnerships program authorized under title II of the
Cranston-Gonzalez National Affordable Housing Act; or
(B) the community development block grants program under title I of the Housing
and Community Development Act of 1974.
(4) The Secretary may restrict the amount of capital funds that a public housing agency
may use to pay for housing construction costs. For purposes of this paragraph, housing
construction costs include the actual hard costs for the construction of units, builders' overhead
and profit, utilities from the street, and finish landscaping.
(c) Every contract for contributions shall provide that—
(1) the Secretary may require the public housing agency to review and revise its maximum
income limits if the Secretary determines that changed conditions in the locality make such
revision necessary in achieving the purposes of this Act;
(2) the public housing agency shall determine, and so certify to the Secretary, that each
family in the project was admitted in accordance with duly adopted regulations and approved
income limits; and the public housing agency shall review the incomes of families living in the
project no less frequently than annually;
(3) the public housing agency shall promptly notify (i) any applicant determined to be
ineligible for admission to the project of the basis for such determination and provide the applicant
upon request, within a reasonable time after the determination is made, with an opportunity for an
informal hearing on such determination, and (ii) any applicant determined to be eligible for
admission to the project of the approximate date of occupancy insofar as such date can be
reasonably determined;
(4) the public housing agency shall comply with such procedures and requirements as the
Secretary may prescribe to assure that sound management practices will be followed in the
operation of the project, including requirements pertaining to—
48
Section 520(b) of the QHWRA amended section 6(b) by adding paragraph (3) as shown.
35
(A)49 the establishment, after public notice and an opportunity for public comment,
of a written system of preferences for admission to public housing, if any, that is not
inconsistent with the comprehensive housing affordability strategy under title I of the
Cranston-Gonzalez National Affordable Housing Act;
50
(A) making dwelling units in public housing available for occupancy, which
shall provide that the public housing agency may establish a system for making dwelling
units available that provides preference for such occupancy to families having certain
characteristics; each system of preferences established pursuant to this subparagraph
shall be based upon local housing needs and priorities, as determined by the public
housing agency using generally accepted data sources, including any information
obtained pursuant to an opportunity for public comment as provided under section 5A(f)
and under the requirements applicable to the comprehensive housing affordability
strategy for the relevant jurisdiction;
(B) the establishment of satisfactory procedures designed to assure the prompt
payment and collection of rents and the prompt processing of evictions in the case of
nonpayment of rent;
(C) the establishment of effective tenant-management relationships designated to
assure the satisfactory standards of tenant security and project maintenance are formulated
and that the public housing agency (together with tenant councils where they exist)
enforces those standards fully and effectively;
(D) the development by local housing authority managements of viable
homeownership opportunity programs for low-income families capable of assuming the
responsibilities of homeownership;
(E) 51except in the case of agencies not receiving operating assistance under
section 9for each agency that receives assistance under this title, the establishment and
maintenance of a system of accounting for rental collections and costs (including
administrative, utility, maintenance, repair and other operating costs) for each project or
operating cost center (as determined by the Secretary), which collections and costs shall
be made available to the general public and submitted to the appropriate local public
official (as determined by the Secretary); except that the Secretary may permit agencies
owning or operating less than 500 units to comply with the requirements of this
subparagraph by accounting on an agency-wide basis; and
(F) requiring the public housing agency to ensure and maintain compliance with
subtitle C of title VI of the Housing and Community Development Act of 1992 and any
regulations issued under such subtitle.
(d) Every contract for contributions with respect to a low-income housing project shall
provide that no contributions by the Secretary shall be made available for such project unless such
project (exclusive of any portion thereof which is not assisted by contributions under this Act) is
exempt from all real and personal property taxes levied or imposed by the State, city, county, or
other political subdivision; and such contract shall require the public housing agency to make
49
Section 402(d)(1) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subparagraph to read
as shown. Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
50
Section 514(a)(1) of the QHWRA amended section 6(c)(4)(A) to read as shown. Section 514(g) of the QHWRA made this amendment effective
upon enactment of the QHWRA (October 21, 1998).
51
Section 529(1) of the QHWRA amended section 6(c)(4)(E).
36
payments in lieu of taxes equal to 10 per centum of the sum of the shelter rents charged in such
project, or such lesser amount as (i) is prescribed by State law, or (ii) is agreed to by the local
governing body in its agreement for local cooperation with the public housing agency required
under section 5(e)(2) of this Act, or (iii) is due to failure of a local public body or bodies other
than the public housing agency to perform any obligation under such agreement. If any such
project is not exempt from all real and personal property taxes levied or imposed by the State,
city, county, or other political subdivision, such contract shall provide, in lieu of the requirement
for tax exemption and payments in lieu of taxes, that no contributions by the Secretary shall be
made available for such project unless and until the State, city, county, or other political
subdivision in which such project is situated shall contribute, in the form of cash or tax remission,
the amount by which the taxes paid with respect to the project exceed 10 per centum of the
shelter rents charged in such project.
52
(e) Every contract for contributions shall provide that whenever in any year the receipts
of a public housing agency in connection with a low-income housing project exceed its
expenditures (including debt service, operation, maintenance, establishment of reserves, and other
costs and charges), an amount equal to such excess shall be applied, or set aside for application,
to purposes which, in the determination of the Secretary, will effect a reduction in the amount of
subsequent annual contributions.
53
(f) HOUSING QUALITY REQUIREMENTS.—
(1) IN GENERAL.— Each contract for contributions for a public housing agency
shall require that the agency maintain its public housing in a condition that complies
with standards which meet or exceed the housing quality standards established under
paragraph (2).
(2) FEDERAL STANDARDS.— The Secretary shall establish housing quality standards
under this paragraph that ensure that public housing dwelling units are safe and
habitable. Such standards shall include requirements relating to habitability, including
maintenance, health and sanitation factors, condition, and construction of dwellings, and
shall, to the greatest extent practicable, be consistent with the standards established
under section 8(o)(8)(B)(i). The Secretary may determine whether the laws, regulations,
standards, or codes of any State or local jurisdiction meet or exceed these standards, for
purposes of this subsection.
(3) ANNUAL INSPECTIONS.— Each public housing agency that owns or operates
public housing shall make an annual inspection of each public housing project to
determine whether units in the project are maintained in accordance with the
requirements under paragraph (1). The agency shall retain the results of such inspections
and, upon the request of the Secretary, the Inspector General for the Department of
Housing and Urban Development, or any auditor conducting an audit under section 5(h),
shall make such results available.
[(f) [Repealed.]]
(g) Every contract for contributions (including contracts which amend or supersede
contracts previously made) may provide that—
(1) upon the occurrence of a substantial default in respect to the covenants or
conditions to which the public housing agency is subject (as such substantial default shall
52
53
Section 529(2) of the QHWRA deleted section 6(e).
Section 530 of the QHWRA amended section 6 by adding paragraph (f).
37
be defined in such contract), the public housing agency shall be obligated at the option of
the Secretary either to convey title in any case where, in the determination of the Secretary
(which determination shall be final and conclusive), such conveyance of title is necessary
to achieve the purposes of this Act, or to deliver to the Secretary possession of the
project, as then constituted, to which such contract relates; and
(2) the Secretary shall be obligated to reconvey or redeliver possession of the
project, as constituted at the time of reconveyance or redelivery, to such public housing
agency or to its successor (if such public housing agency or a successor exists) upon such
terms as shall be prescribed in such contract, and as soon as practicable (i) after the
Secretary is satisfied that all defaults with respect to the project have been cured, and that
the project will, in order to fulfill the purposes of this Act, thereafter be operated in
accordance with the terms of such contract; or (ii) after the termination of the obligation
to make annual contributions available unless there are any obligations or covenants of the
public housing agency to the Secretary which are then in default.54 Any prior conveyances
and reconveyances or deliveries and redeliveries of possession shall not exhaust the right
to require a conveyance or delivery of possession of the project to the Secretary pursuant
to subparagraph (1)55 upon the subsequent occurrence of a substantial default.
Whenever such a contract for annual contributions includes provisions which the Secretary in
such contract determines are in accordance with this subsection, and the portion of the annual
contribution payable for debt service requirements pursuant to such contract has been pledged by
the public housing agency as security for the payment of the principal and interest on any of its
obligations, the Secretary (notwithstanding any other provisions of this Act) shall continue to
make such annual contributions available for the project so long as any of such obligations remain
outstanding, and may covenant in such contract that in any event such annual contributions shall
in each year be at least equal to an amount which, together with such income or other funds as are
actually available from the project for the purpose at the time such annual contribution is made,
will suffice for the payment of all installments, falling due within the next succeeding twelve
months, of principal and interest on the obligations for which the annual contributions provided
for in the contract shall have been pledged as security. In no case shall such annual contributions
be in excess of the maximum sum specified in the contract involved, nor for longer than the
remainder of the maximum period fixed by the contract.
(h) On or after October 1, 1983, the Secretary may enter into a contract involving new
construction only if the public housing agency demonstrates to the satisfaction of the Secretary
that the cost of new construction in the neighborhood where the public housing agency
determines the housing is needed is less than the cost of acquisition or acquisition and
rehabilitation in such neighborhood, including any reserve fund under subsection (i), would be.
(i) The Secretary may, upon application by a public housing agency in connection with the
acquisition of housing for use as public housing, establish and set aside a reserve fund in an
amount not to exceed 30 per centum of the acquisition cost which shall be available for use for
major repairs to such housing.
(j)(1) The Secretary shall develop and publish in the Federal Register indicators to assess
the management performance of public housing agencies and resident management corporations.
The indicators shall be established by rule under section 553 of title 5, United States Code. Such
54
55
So in law. Period probably should be semicolon.
So in law. Probably intended to refer to paragraph (1).
38
indicators shall enable the Secretary to evaluate the performance of public housing agencies and
resident management corporations in all major areas of management operations. The Secretary
shall, in particular, use the following indicators:56
(A) The number and percentage of vacancies within an agency's inventory,
including the progress that an agency has made within the previous 3 years to reduce such
vacancies.
57
(B) The amount and percentage of funds obligated to the public housing agency
under section 14 of this Act which remain unexpended after 3 years.(B) The amount and
percentage of funds provided to the public housing agency from the Capital Fund under
section 9(d) which remain unobligated by the public housing agency after 3 years.
(C) The percentage of rents uncollected.
(D) The 58energyutility consumption (with appropriate adjustments to reflect
different regions and unit sizes).
59
(E) The average period of time that an agency requires to repair and turn-around
vacant units.
(F) The proportion of maintenance work orders outstanding, including any
progress that an agency has made during the preceding 3 years to reduce the period of
time required to complete maintenance work orders.
(G) The percentage of units that an agency fails to inspect to ascertain maintenance
or modernization needs within such period of time as the Secretary deems appropriate
(with appropriate adjustments, if any, for large and small agencies).
60
(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—
(i) implements effective screening and eviction policies and other
anticrime strategies; and
(ii) coordinates with local government officials and residents in the
project and implementation of such strategies.
(J) The extent to which the public housing agency is providing acceptable basic
housing conditions.
61
(H)(K) Any other factors as the Secretary deems appropriate.62
56
Section 113(e)(1)(C) of the Housing and Community Development Act of 1992 (Public Law 102-550; 106 Stat. 3691) amended this sentence by
striking "indicators." and inserting "indicators for public housing agencies, to the extent practicable:". Because the matter to be struck by the
amendment does not appear in this sentence, the amendment could not be executed.
57
Section 564(1)(A) of the QHWRA amended section 6(j)(1)(B) to read as shown.
58
Section 564(1)(B) of the QHWRA amended section 6(j)(1)(D).
59
Section 564(1)(C) of the QHWRA directs that subparagraph (E) be placed after subparagraph (D). This is already the case and, therefore,
section 564(1)(C) could not be executed.
60
Section 564(1)(E) of the QHWRA amended section 6(j)(1) by adding subparagraphs (H) - (J).
61
Section 564(1)(D) of the QHWRA amended section 6(j)(1) by redesignating paragraph (H) as paragraph (K).
62
The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992, Pub. L. 102-139,
105 Stat. 757, provides as follows:
"Section 6(j)(1) of the Housing Act of 1937, 42 U.S.C. 1437d(j)(1), section 502(a) of the National Affordable Housing Act, is amended as follows:
"(1) by adding at the end of subparagraph (H) the following language: `which shall not exceed the seven factors in the statute, plus an additional five';
and
"(2) by adding as subparagraph (I) the following:
`(I) The Secretary shall:
39
(2)(A)(i) The Secretary shall, under the rulemaking procedures under section 553 of title
5, United States Code, establish procedures for designating troubled public housing agencies,
which procedures shall include identification of serious and substantial failure to perform as
measured by the performance indicators specified under paragraph (1) and such other factors as
the Secretary may deem to be appropriate. 63Such procedures shall provide that an agency that
fails on a widespread basis to provide acceptable basic housing conditions for its residents shall
be designated as a troubled public housing agency. The Secretary may use a simplified set of
indicators for public housing agencies with less than 250 public housing units. The Secretary
shall also designate, by rule under section 553 of title 5, United States Code, agencies that are
troubled with respect to the program 64under section 14for assistance from the Capital Fund
under section 9(d).
(ii) The Secretary may also, in consultation with national organizations representing public
housing agencies and public officials (as the Secretary determines appropriate), identify and
commend public housing agencies that meet the performance standards established under
paragraph (1) in an exemplary manner.
(iii) The Secretary shall establish procedures for public housing agencies to appeal
designation as a troubled agency (including designation as a troubled agency for purposes of the
program 65under section 14for assistance from the Capital Fund under section 9(d)), to petition
for removal of such designation, and to appeal any refusal to remove such designation.
(B)(i) Upon designating a public housing agency 66with more than 250 units as troubled
pursuant to subparagraph (A) and determining that an assessment under this subparagraph will
not duplicate any 67review conducted under section 14(p)comparable and recent review, the
Secretary shall provide for an on-site, independent assessment of the management of the agency.
(ii) To the extent the Secretary deems appropriate (taking into account an agency's
performance under the indicators specified under paragraph (1)), the assessment team shall also
consider issues relating to the agency's resident population and physical inventory, including the
extent to which (I) the agency's comprehensive plan prepared pursuant to section 14 adequately
and appropriately addresses the rehabilitation needs of the agency's inventory, (II) residents of the
agency are involved in and informed of significant management decisions, and (III) any projects in
the agency's inventory are severely distressed and eligible for assistance pursuant to section 24.
(iii) An independent assessment under this subparagraph shall be carried out by a team of
knowledgeable individuals selected by the Secretary (referred to in this section as the "assessment
team") with expertise in public housing and real estate management. In conducting an assessment,
the assessment team shall consult with the residents and with public and private entities in the
jurisdiction in which the public housing is located. The assessment team shall provide to the
Secretary and the public housing agency a written report, which shall contain, at a minimum,
`(1) administer the system of evaluating public housing agencies flexibly to ensure that such agencies are not penalized as result of circumstances
beyond their control;
`(2) reflect in the weights assigned to the various indicators the differences in the difficulty of managing individual projects that result from their
physical condition and their neighborhood environment; and
`(3) determine a public housing agency's status as `troubled with respect to the program under section 14' based upon factors solely related to its
ability to carry out that program.'.".
The amendments were probably intended to be made to section 6(j)(1) of the United States Housing Act of 1937, as amended by section 502(a) of the
Cranston-Gonzalez National Affordable Housing Act.
63
Section 564(2)(A)(i) of the QHWRA amended section 6(j)(2)(A)(i).
64
Section 564(2)(A)(ii) of the QHWRA amended section 6(j)(2)(A)(i).
65
Section 564(2)(B) of the QHWRA amended section 6(j)(2)(A)(iii).
66
Section 564(2)(C)(i)of the QHWRA amended section 6(j)(2)(B)(i).
67
Section 564(2)(C)(ii) of the QHWRA amended section 6(j)(2)(B)(i).
40
recommendations for such management improvements as are necessary to eliminate or
substantially remedy existing deficiencies.
(C) The Secretary shall seek to enter into an agreement with each troubled public housing
agency, after reviewing the report submitted pursuant to subparagraph (B) 68(if applicable) and
consulting with the agency's assessment team.
To the extent the Secretary deems appropriate (taking into account an agency's performance
under the indicators specified under paragraph (1)), such agreement shall also set forth a plan for
enhancing resident involvement in the management of the public housing agency.69 Such
agreement shall set forth—
(i) targets for improving performance as measured by the performance indicators
specified under paragraph (1) and other requirements within a specified period of time;
(ii) strategies for meeting such targets, including a description of the technical
assistance that the Secretary will make available to the agency; and
(iii) incentives or sanctions for effective implementation of such strategies, which
may include any constraints on the use of funds that the Secretary determines are
appropriate.
The Secretary and the public housing agency shall, to the maximum extent practicable, seek the
assistance of local public and private entities in carrying out the agreement.
(D)70 The Secretary shall apply the provisions of this paragraph to resident
management corporations as well as public housing agencies.
(3)(A) Notwithstanding any other provision of law or of any contract for contributions,
upon the occurrence of events or conditions that constitute a substantial default by a public
housing agency with respect to the covenants or conditions to which the public housing agency is
subject or an agreement entered into under paragraph (2), the Secretary may—
71
(i) solicit competitive proposals from other public housing agencies and private
housing management agents (which may be selected by existing tenants through
administrative procedures established by the Secretary) in the eventuality that these agents
may be needed for managing all, or part, of the housing administered by a public housing
agency;
(i) solicit competitive proposals from other public housing agencies and private
housing management agents which (I) in the discretion of the Secretary, may be selected
by existing public housing residents through administrative procedures established by the
Secretary, and (II) if appropriate, 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;
68
Section 564(2)(D) of the QHWRA amended section 6(j)(2)(C).
So in law. This new flush sentence probably should have been inserted after clause (iii) of this subparagraph. See section 113(a)(3)(B) of the
Housing and Community Development Act of 1992, Pub. L. 102-550.
70
Indented so in law.
71
Section 565(a)(1)(A) of the QHWRA amended section 6(j)(3)(A)(i) to read as shown. Section 565(b) made this amendment applicable as
follows: "(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 the enactment of this Act.
(d) Implementation.— The Secretary may administer the amendments made by subsection (a) as necessary to ensure the efficient and
effective initial implementation of this section.
(e) Applicability.— This section shall take effect on, and the amendments made by this section are made on, and shall apply beginning upon, the
date of the enactment of this Act.".
69
41
(ii) petition for the appointment of a receiver (which may be another public
housing agency or a private management corporation) of the public housing agency to any
district court of the United States or to any court of the State in which the real property of
the public housing agency is situated, that is authorized to appoint a receiver for the
purposes and having the powers prescribed in this subsection;
(iii) solicit competitive proposals from other public housing agencies and private
entities with experience in construction management in the eventuality that such agencies
or firms may be needed to oversee implementation of assistance made available 72under
section 14from the Capital Fund under section 9(d) for the housing; and
73
(iv) require the agency to make other arrangements acceptable to the Secretary
and in the best interests of the public housing residents for managing all, or part of, such
housing.
Residents of a public housing agency designated as troubled pursuant to paragraph (2)(A) may
petition the Secretary in writing to take 1 or more of the actions referred to in this subparagraph.
The Secretary shall respond to such petitions in a timely manner with a written description of the
actions, if any, the Secretary plans to take and, where applicable, the reasons why such actions
differ from the course proposed by the residents.
(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
(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.
74
(B) The Secretary may make available to receivers and other entities selected or
appointed pursuant to this paragraph such assistance as is necessary 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 the residents.
(C) 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 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
court shall have power to grant appropriate temporary or preliminary relief pending final
disposition of the petition by the Secretary.
(D) The appointment of a receiver pursuant to this subsection may be terminated, upon
the petition of any party, when the court determines that all defaults have been cured and the
housing operated by the public housing agency will thereafter be operated in accordance with the
covenants and conditions to which the public housing agency is subject.
(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.
72
Section 565(a)(1)(B) of the QHWRA amended section 6(j)(3)(A)(iii). NOTE: see footnote 69 for applicability of this amendment.
Section 565(a)(1)(C) of the QHWRA amended section 6(j)(3)(A)(iv) to read as shown and added clause (v). NOTE: see footnote 69 for
applicability of this amendment.
74
Section 565(a)(2) of the QHWRA amended sections 6(j)(3)(B) - (D) to read as shown and added sections 6(j)(3)(E) - (H). NOTE: see footnote
69 for applicability of this amendment.
73
42
(ii)(I) Upon the expiration of the 1-year period beginning on the later of the date on
which the agency receives initial notice from the Secretary of the troubled status of the agency
under clause (i) and the date of the enactment of the Quality Housing and Work Responsibility
Act of 1998, the agency shall improve its performance, as measured by the performance
indicators established pursuant to paragraph (1), by at least 50 percent of the difference between
the most recent performance measurement and the measurement necessary to remove that
agency's designation as troubled.
(II) Upon the expiration of the 2-year period beginning on the later of the date on which
the agency receives initial notice from the Secretary of the troubled status of the agency under
clause (i) and the date of the enactment of the Quality Housing and Work Responsibility Act of
1998, the agency shall improve its performance, as measured by the performance indicators
established pursuant to paragraph (1), such that the agency is no longer designated as troubled.
(III) In the event that a public housing agency designated as troubled under this
subsection fails to comply with the requirements set forth in subclause (I) or (II), 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).
This subparagraph shall not be construed to limit the courses of action available to the
Secretary under subparagraph (A).
(IV) During the period between the date on which a petition is filed under subclause
(III)(aa) and the date on which a receiver assumes responsibility for the management of the
public housing agency under such subclause, 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;
43
(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, pursuant to subparagraph (A)(iv), 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, 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, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary 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 and subject to
clause (iii).
44
(iii) An administrative receiver may not take an action described in subclause (III) or
(IV) of clause (i) 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 projects 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 shall not be 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 or program of the agency), shall be the
liability of the public housing agency.
75
(4) SANCTIONS FOR IMPROPER USE OF AMOUNTS.—
(A) IN GENERAL.— In addition to any other actions authorized under this Act, if the
Secretary finds that a public housing agency receiving assistance amounts under section
9 for public housing has failed to comply substantially with any provision of this Act
relating to the public housing program, the Secretary may—
(i) terminate assistance payments under this section 9 to the agency;
(ii) withhold from the agency amounts from the total allocations for the
agency pursuant to section 9;
(iii) reduce the amount of future assistance payments under section 9 to
the agency by an amount equal to the amount of such payments that were not
expended in accordance with this Act;
(iv) limit the availability of assistance amounts provided to the agency
under section 9 to programs, projects, or activities not affected by such failure to
comply;
75
Section 521(2) of the QHWRA added section 6(j)(4) to read as shown.
45
(v) withhold from the agency amounts allocated for the agency under
section 8; or
(vi) order other corrective action with respect to the agency.
(B) TERMINATION OF COMPLIANCE ACTION.— If the Secretary takes action under
subparagraph (A) with respect to a public housing agency, the Secretary shall—
(i) in the case of action under subparagraph (A)(i), resume payments of
assistance amounts under section 9 to the agency in the full amount of the total
allocations under section 9 for the agency at the time that the Secretary first
determines that the agency will comply with the provisions of this Act relating to
the public housing program;
(ii) in the case of action under clause (ii) or (v) of subparagraph (A),
make withheld amounts available as the Secretary considers appropriate to
ensure that the agency complies with the provisions of this Act relating to such
program;
(iii) in the case of action under subparagraph (A)(iv), release such
restrictions at the time that the Secretary first determines that the agency will
comply with the provisions of this Act relating to such program; or
(iv) in the case of action under subparagraph (vi), cease such action at the
time that the Secretary first determines that the agency will comply with the
provisions of this Act relating to such program.
76
(4)(5) The Secretary shall submit to the Congress annually, as a part of the report of the
Secretary under section 8 of the Department of Housing and Urban Development Act, a report
that—
(A) identifies the public housing agencies that have been designated as troubled
under paragraph (2);
(B) describes the grounds on which such public housing agencies were designated
as troubled and continue to be so designated;
(C) describes the agreements that have been entered into with such agencies under
such paragraph;
(D) describes the status of progress under such agreements;
(E) describes any action that has been taken in accordance with paragraph (3)77;
and
(F) describes the status of any public housing agency designated as troubled with
respect to the 78program under section 14 and specifies the amount of assistance the
agency received under section 14 and any credits accumulated by the agency under section
14(k)(5)(D)program for assistance from the Capital Fund under section 9(d) and
specifies the amount of assistance the agency received under such program.
76
Section 521(1) of the QHWRA redesignated section 6(j)(4) as 6(j)(5).
Section 113(d) of the Housing and Community Development Act of 1992, Pub. L. 102-550, provides as follows:
"(d) Annual Reports.— Section 6(j)(5)(E) of the United States Housing Act of 1937 (42 U.S.C. 1437d(j)(4)(E)), as so redesignated by subsection
(d)(1), is amended by inserting before the semicolon the following: `, including an accounting of the authorized funds that have been expended to
support such actions'.".
The amendment could not be executed. The subsection heading and the United States Code citation indicate that the amendment probably was
intended to be made to this subparagraph.
78
Section 564(3) of the QHWRA amended section 6(j)(5)(F).
77
46
79
(6)(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 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.
(7) The Secretary shall apply the provisions of this subsection to resident management
corporations in the same manner as applied to public housing agencies.
(k) The Secretary shall by regulation require each public housing agency receiving
assistance under this Act to establish and implement an administrative grievance procedure under
which tenants will—
(1) be advised of the specific grounds of any proposed adverse public housing
agency action;
(2) have an opportunity for a hearing before an impartial party upon timely request
within any period applicable under subsection (l);
(3) have an opportunity to examine any documents or records or regulations
related to the proposed action;
(4) be entitled to be represented by another person of their choice at any hearing;
(5) be entitled to ask questions of witnesses and have others make statements on
their behalf; and
(6) be entitled to receive a written decision by the public housing agency on the
proposed action.
For any grievance concerning an eviction or termination of tenancy that involves any activity that
threatens the health, safety, or right to peaceful enjoyment of the premises of other tenants or
employees of the public housing agency or any 80violent or drug-related criminal activity on or off
such premises, 81or any activity resulting in a felony conviction, the agency may (A) establish an
expedited grievance procedure as the Secretary shall provide by rule under section 553 of title 5,
United States Code, or (B) exclude from its grievance procedure any such grievance, in any
jurisdiction which requires that prior to eviction, a tenant be given a hearing in court which the
Secretary determines provides the basic elements of due process (which the Secretary shall
establish by rule under section 553 of title 5, United States Code). Such elements of due process
shall not include a requirement that the tenant be provided an opportunity to examine relevant
documents within the possession of the public housing agency. The agency shall provide to the
tenant a reasonable opportunity, prior to hearing or trial, to examine any relevant documents,
records, or regulations directly related to the eviction or termination.
(l) Each public housing agency shall utilize leases which—
82
(1) have a term of 12 months and shall be automatically renewed for all
purposes except for noncompliance with the requirements under section 12(c) (relating to
community service requirements); except that nothing in this title shall prevent a resident
from seeking timely redress in court for failure to renew based on such noncompliance;
79
Section 564(4) of the QHWRA added section 6(j)(6) and (7).
Section 575(a)(1) of the QHWRA amended section 6(k).
81
Section 575(a)(2) of the QHWRA amended section 6(k).
82
Section 512(b)(3) of the QHWRA added section 6(l)(1).
80
47
83
(1)(2) do not contain unreasonable terms and conditions;
(2)(3) obligate the public housing agency to maintain the project in a decent, safe,
and sanitary condition;
85
(3)(4) require the public housing agency to give adequate written notice of
termination of the lease which shall not be less than—
86
(A) a reasonable time, but not to exceed 30 days, when the health or
safety of other tenants or public housing agency employees is threatened;
(A) a reasonable period of time, but not to exceed 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;
(B) 14 days in the case of nonpayment of rent; and
(C) 30 days in any other case, 87except that if a State or local law provides
for a shorter period of time, such shorter period shall apply;
88
(4)(5) require that the public housing agency may not terminate the tenancy
except for serious or repeated violation of the terms or conditions of the lease or for other
good cause;
89
(5)(6) provide that any criminal activity that threatens the health, safety, or right
to peaceful enjoyment of the premises by other tenants or any drug-related criminal
activity on or off such premises, engaged in by a public housing tenant, any member of the
tenant's household, or any guest or other person under the tenant's control, shall be cause
for termination of tenancy;
90
(6)(7) specify that with respect to any notice of eviction or termination,
notwithstanding any State law, a public housing tenant shall be informed of the
opportunity, prior to any hearing or trial, to examine any relevant documents, records or
regulations directly related to the eviction or termination; 91 and
92
(7) provide that any occupancy in violation of section 576(b) of the Quality
Housing and Work Responsibility Act of 1998 (relating to ineligibility of illegal drug
users and alcohol abusers) or the furnishing of any false or misleading information
pursuant to section 577 of such Act (relating to termination of tenancy and assistance for
illegal drug users and alcohol abusers) shall be cause for termination of tenancy;
93
(7)(9) provide that it shall be cause for immediate termination of the tenancy of a
public housing tenant if such tenant—
(A) is fleeing to avoid prosecution, or custody or confinement after
conviction, under the laws of the place from which the individual flees, for a crime,
84
83
Section 512(b)(1) of the QHWRA redesignated section 6(l)(1) as (2).
Section 512(b)(1) of the QHWRA redesignated section 6(l)(2) as (3).
Section 512(b)(1) of the QHWRA redesignated section 6(l)(3) as (4).
86
Section 575(b)(1)(A) of the QHWRA amended section 6(l)(4)(A) to read as shown.
87
Section 575(b)(1)(B) of the QHWRA amended section 6(l)(4)(C).
88
Section 512(b)(1) of the QHWRA redesignated section 6(l)(4) as (5).
89
Section 512(b)(1) of the QHWRA redesignated section 6(l)(5) as (6).
90
Section 512(b)(1) of the QHWRA redesignated section 6(l)(6) as (7).
91
Section 575(b)(2) of the QHWRA amended section 6(l)(7).
92
Section 575(b)(4) of the QHWRA added this section, which should have probably been designated paragraph (8).
93
Section 512(b)(2) of the QHWRA redesignated section 6(l)(7) as (9).
84
85
48
or attempt to commit a crime, which is a felony under the laws of the place from
which the individual flees, or which, in the case of the State of New Jersey, is a
high misdemeanor under the laws of such State; or
(2)94 is violating a condition of probation or parole imposed under Federal or State
law.
For purposes of paragraph (5), 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)).
(m) The Secretary shall not impose any unnecessarily duplicative or burdensome reporting
requirements on tenants or public housing agencies assisted under this Act.
(n) When a public housing agency evicts an individual or family from a dwelling unit for
engaging in criminal activity, including drug-related criminal activity, the public housing agency
shall notify the local post office serving that dwelling unit that such individual or family is no
longer residing in the dwelling unit.
(o)95 96Subject to the written system of preferences for selection established pursuant to
subsection (c)(4)(A), inIn providing housing in low-income housing projects, each public housing
agency may coordinate with any local public agencies involved in providing for the welfare of
children to make available dwelling units to—
(1) families identified by the agencies as having a lack of adequate housing that is a
primary factor—
(A) in the imminent placement of a child in foster care; or
(B) in preventing the discharge of a child from foster care and reunification
with his or her family; and
(2) youth, upon discharge from foster care, in cases in which return to the family
or extended family or adoption is not available.
97
(p) With respect to amounts available for obligation on or after October 1, 1991, the
criteria established under section 213(d)(5)(B) of the Housing and Community Development Act
of 1974 for any competition for assistance for new construction, acquisition, or acquisition and
rehabilitation of public housing shall give preference to applications for housing to be located in a
local market area that has an inadequate supply of housing available for use by very low-income
families. The Secretary shall establish criteria for determining that the housing supply of a local
market area is inadequate, which shall require—
(1)(A) information regarding housing market conditions showing that the supply of
rental housing affordable by very low-income families is inadequate, taking into account
vacancy rates in such housing and other market indicators; and
(B) evidence that significant numbers of families in the local market area holding
certificates and vouchers under section 8 are experiencing significant difficulty in leasing
housing meeting program and family-size requirements; or
94
Indented so in law. Probably should be designated as subparagraph (B).
Section 402(d)(6)(A)(i) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subsection by
striking "preference rules specified in" and inserting "written system of preferences for selection established pursuant to". Section 402(f) of such Act
provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
96
Section 514(a)(2)(A) of the QHWRA amended section 6(o). Section 514(g) made this amendment effective upon enactment of the QHWRA
(October 21, 1998).
97
Section 519(b) of the QHWRA deleted section 6(p).
95
49
(2) evidence that the proposed development would provide increased housing
opportunities for minorities or address special housing needs.
(q) AVAILABILITY OF RECORDS.—
(1) IN GENERAL.—
(A) PROVISION OF INFORMATION.— Notwithstanding any other provision of
law, except as provided in 98subparagraph (B)subparagraph (C), the National
Crime Information Center, police departments, and other law enforcement
agencies shall, upon request, provide information to public housing agencies
regarding the criminal conviction records of adult applicants for, or tenants of,
99
public housingcovered housing assistance for purposes of applicant screening,
lease enforcement, and eviction.
100
(B) REQUESTS BY OWNERS OF PROJECT-BASED SECTION 8 HOUSING.— A
public housing agency may make a request under subparagraph (A) for
information regarding applicants for, or tenants of, housing that is provided
project-based assistance under section 8 only if the housing is located within the
jurisdiction of the agency and the owner of such housing has requested that the
agency obtain such information on behalf of the owner. Upon such a request by
the owner, the agency shall make a request under subparagraph (A) for the
information. The agency may not make such information available to the owner
but shall perform determinations for the owner regarding screening, lease
enforcement, and eviction based on criteria supplied by the owner.
101
(B)(C) EXCEPTION.— A law enforcement agency described in
subparagraph (A) 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.
(2) OPPORTUNITY TO DISPUTE.— Before an adverse action is taken with regard to
assistance under this title on the basis of a criminal record, the public housing agency shall
provide the tenant or applicant with a copy of the criminal record and an opportunity to
dispute the accuracy and relevance of that record.
(3) 102FEEFEES.— A public housing agency may be charged a reasonable fee for
information provided under paragraph (1). 103In the case of a public housing agency
obtaining information pursuant to paragraph (1)(B) for another owner of housing, the
agency may pass such fee on to the owner initiating the request and may charge
additional reasonable fees for making the request on behalf of the owner and taking
other actions for owners under this subsection.
(4) RECORDS MANAGEMENT.— Each public housing agency shall establish and
implement a system of records management that ensures that any criminal record received
by the public housing agency is—
(A) maintained confidentially;
(B) not misused or improperly disseminated; and
98
Section 575(c)(1)(A)(i) of the QHWRA amended section 6(q)(1)(A).
Section 575(c)(1)(A)(ii) of the QHWRA amended section 6(q)(1)(A).
100
Section 575(c)(1)(C) of the QHWRA added section 6(q)(1)(B).
101
Section 575(c)(1)(B) of the QHWRA redesignated section 6(q)(1)(B) as (C).
102
Section 575(c)(2)(A) of the QHWRA amended section 6(q)(3).
103
Section 575(c)(2)(B) of the QHWRA amedned section 6(q)(3).
99
50
(C) destroyed, once the purpose for which the record was requested has
been accomplished.
104
(5) CONFIDENTIALITY.— A public housing agency receiving information under
this subsection may use such information only for the purposes provided in this
subsection and such information may not be disclosed to any person who is not an
officer, employee, or authorized representative of the agency and who has a job-related
need to have access to the information in connection with admission of applicants,
eviction of tenants, or termination of assistance. For judicial eviction proceedings,
disclosures may be made to the extent necessary. The Secretary shall, by regulation,
establish procedures necessary to ensure that information provided under this subsection
to a public housing agency is used, and confidentiality of such information is maintained,
as required under this subsection. The Secretary shall establish standards for
confidentiality of information obtained under this subsection by public housing agencies
on behalf of owners.
(6) PENALTY.— Any person who knowingly and willfully requests or obtains any
information concerning an applicant for, or tenant of, covered housing assistance
pursuant to the authority under this subsection under false pretenses, or any person who
knowingly and willfully discloses any such information in any manner to any individual
not entitled under any law to receive it, shall be guilty of a misdemeanor and fined not
more than $5,000. The term "person" as used in this paragraph include an officer,
employee, or authorized representative of any public housing agency.
(7) CIVIL ACTION.— Any applicant for, or tenant of, covered housing assistance
affected by (A) a negligent or knowing disclosure of information referred to in this
subsection about such person by an officer, employee, or authorized representative of
any public housing agency, which disclosure is not authorized by this subsection, or (B)
any other negligent or knowing action that is inconsistent with this subsection, may bring
a civil action for damages and such other relief as may be appropriate against any public
housing agency responsible for such unauthorized action. The district court of the United
States in the district in which the affected applicant or tenant resides, in which such
unauthorized action occurred, or in which the officer, employee, or representative
alleged to be responsible for any such unauthorized action resides, shall have
jurisdiction in such matters. Appropriate relief that may be ordered by such district
courts shall include reasonable attorney's fees and other litigation costs.
105
(5) DEFINITION.— For purposes of this subsection, 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.
(8) DEFINITIONS.— For purposes of this subsection, the following definitions shall
apply:
(A) ADULT.— 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.
(B) COVERED HOUSING ASSISTANCE.— The term "covered housing
assistance" means—
104
105
Section 575(c)(4) of the QHWRA added sections 6(q)(5) - (7).
Section 575(c)(3) of the QHWRA amended section 6(q)(5) to read as shown and redesignated it as section 6(q)(8).
51
(i) a dwelling unit in public housing;
(ii) a dwelling unit in housing that is provided project-based
assistance under section 8, including new construction and substantial
rehabilitation projects; and
(iii) tenant-based assistance under section 8.
(C) OWNER.— The term "owner" means, with respect to covered housing
assistance described in subparagraph (B)(ii), the entity or private person
(including a cooperative or public housing agency) that has the legal right to
lease or sublease dwelling units in the housing assisted.
106
(r) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG-RELATED ACTIVITY.— Any tenant
evicted from housing assisted under this title by reason of drug-related criminal activity (as that
term is defined in section 8(f)) shall not be eligible for housing assistance under this title during
the 3-year period beginning on the date of such eviction, unless the evicted tenant successfully
completes a rehabilitation program approved by the public housing agency (which shall include a
waiver of this subsection if the circumstances leading to eviction no longer exist).
107
(r) SITE-BASED WAITING LISTS.—
(1) AUTHORITY.— A public housing agency may establish procedures for
maintaining waiting lists for admissions to public housing projects of the agency, which
may include (notwithstanding any other law, regulation, handbook, or notice to the
contrary) a system of site-based waiting lists under which applicants may apply directly
at or otherwise designate the project or projects in which they seek to reside. All such
procedures shall comply with all provisions of title VI of the Civil Rights Act of 1964, the
Fair Housing Act, and other applicable civil rights laws.
(2) NOTICE.— 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 project in which to reside.
108
(s) 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 subsection (q)(1) regarding such member of the household from the
National Crime Information Center, police departments, and other law enforcement agencies.
109
(t) OBTAINING INFORMATION FROM DRUG ABUSE TREATMENT FACILITIES.—
(1) 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 one or more forms of
written consent authorizing the 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.
(2) CONFIDENTIALITY OF APPLICANT'S RECORDS.—
106
Section 576(d)(1)(A) of the QHWRA deleted section 6(r).
Section 525 of the QHWRA added this subsection as section 6(s). Section 576(d)(1)(B) of the QHWRA redesignated this subsection section
6(r).
108
Section 575(d) of the QHWRA added this subsection as section 6(t). Section 576(d)(1)(B) of the QHWRA redesignated this subsection section
6(s).
109
Section 575(e) of the QHWRA added this subsection as section 6(u). Section 576(d)(1)(B) of the QHWRA redesignated this subsection section
6(t).
107
52
(A) LIMITATION ON INFORMATION REQUESTED.— 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.
(3) Prohibition of discriminatory treatment of applicants.—
(A) FORMS SIGNED.— A public housing agency may only require an
applicant for admission to public housing to sign one 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
(cc) interfered with the right of peaceful enjoyment
of the premises of another tenant.
53
(4) FEE PERMITTED.— A drug abuse treatment facility may charge a public housing
agency a reasonable fee for information provided under this subsection.
(5) DISCLOSURE PERMITTED BY 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).
(6) OPTION TO NOT REQUEST INFORMATION.— 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 one or more forms of written consent authorizing the
public housing agency to receive information from a drug abuse treatment facility under
this subsection.
(7) DEFINITIONS.— For purposes of this subsection, the following definitions shall
apply:
(A) DRUG ABUSE TREATMENT FACILITY.— The term "drug abuse treatment
facility" means an entity that—
(i) is—
(I) an identified unit within a general medical care facility;
or
(II) an entity other than a general medical care facility;
and
(ii) 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.
(8) EFFECTIVE DATE.— This subsection shall take effect upon enactment and
without the necessity of guidance from, or any regulation issued by, the Secretary.
DESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES
SEC. 7. [42 U.S.C. 1437e] (a) AUTHORITY TO PROVIDE DESIGNATED HOUSING.—
(1) IN GENERAL.— Subject only to provisions of this section and notwithstanding
any other provision of law, a public housing agency for which a plan under subsection (d)
is in effect may provide public housing projects (or portions of projects) designated for
occupancy by (A) only elderly families, (B) only disabled families, or (C) elderly and
disabled families.
(2) PRIORITY FOR OCCUPANCY.— In determining priority for admission to public
housing projects (or portions of projects) that are designated for occupancy as provided in
54
paragraph (1), the public housing agency may make units in such projects (or portions)
available only to the types of families for whom the project is designated.
(3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES.— If a public housing agency
determines that there are insufficient numbers of elderly families to fill all the units in a
project (or portion of a project) designated under paragraph (1) for occupancy by only
elderly families, the agency may provide that near-elderly families may occupy dwelling
units in the project (or portion).
(b) STANDARDS REGARDING EVICTIONS.— Except as provided in section 16(e)(1)(B), any
tenant who is lawfully residing in a dwelling unit in a public housing project may not be evicted or
otherwise required to vacate such unit because of the designation of the project (or portion of a
project) pursuant to this section or because of any action taken by the Secretary or any public
housing agency pursuant to this section.
(c) RELOCATION ASSISTANCE.— A public housing agency that designates any existing
project or building, or portion thereof, for occupancy as provided under subsection (a)(1) shall
provide, to each person and family who agrees to be relocated in connection with such
designation—
(1) notice of the designation and an explanation of available relocation benefits, as
soon as is practicable for the agency and the person or family;
(2) access to comparable housing (including appropriate services and design
features), which may include tenant-based rental assistance under section 8, at a rental rate
paid by the tenant that is comparable to that applicable to the unit from which the person
or family has vacated; and
(3) payment of actual, reasonable moving expenses.
(d) REQUIRED PLAN.— A plan under this subsection for designating a project (or portion
of a project) for occupancy under subsection (a)(1) is a plan, prepared by the public housing
agency for the project and submitted to the Secretary, that—
(1) establishes that the designation of the project is necessary—
(A) to achieve the housing goals for the jurisdiction under the
comprehensive housing affordability strategy under section 105 of the CranstonGonzalez National Affordable Housing Act; and
(B) to meet the housing needs of the low-income population of the
jurisdiction; and
(2) includes a description of—
(A) the project (or portion of a project) to be designated;
(B) the types of tenants for which the project is to be designated;
(C) any supportive services to be provided to tenants of the designated
project (or portion);
(D) how the design and related facilities (as such term is defined in section
202(d)(8)1101 of the Housing Act of 1959) of the project accommodate the special
environmental needs of the intended occupants; and
(E) any plans to secure additional resources or housing assistance to
provide assistance to families that may have been housed if occupancy in the
project were not restricted pursuant to this section.
110
Refers to section 202(d)(8) as in effect before Oct. 1, 1991.
55
For purposes of this subsection, the term "supportive services" means services designed to meet
the special needs of residents.
(e) REVIEW OF PLANS.—
(1) REVIEW AND NOTIFICATION.— The Secretary shall conduct a limited review of
each plan under subsection (d) that is submitted to the Secretary to ensure that the plan is
complete and complies with the requirements of subsection (d). The Secretary shall notify
each public housing agency submitting a plan whether the plan complies with such
requirements not later than 60 days after receiving the plan. If the Secretary does not
notify the public housing agency, as required under this paragraph or paragraph (2), the
plan shall be considered, for purposes of this section, to comply with the requirements
under subsection (d) and the Secretary shall be considered to have notified the agency of
such compliance upon the expiration of such 60-day period.
(2) NOTICE OF REASONS FOR DETERMINATION OF NONCOMPLIANCE.— If the
Secretary determines that a plan, as submitted, does not comply with the requirements
under subsection (d), the Secretary shall specify in the notice under paragraph (1) the
reasons for the noncompliance and any modifications necessary for the plan to meet such
requirements.
(3) STANDARDS FOR DETERMINATION OF NONCOMPLIANCE.— The Secretary may
determine that a plan does not comply with the requirements under subsection (d) only
if—
(A) the plan is incomplete in significant matters required under such
subsection; or
(B) there is evidence available to the Secretary that challenges, in a
substantial manner, any information provided in the plan.
(4) TREATMENT OF EXISTING PLANS.— Notwithstanding any other provision of this
section, a public housing agency shall be considered to have submitted a plan under this
subsection if the agency has submitted to the Secretary an application and allocation plan
under this section (as in effect before the date of the enactment of the Housing
Opportunity Program Extension Act of 1996111) that have not been approved or
disapproved before such date of enactment.
(f) EFFECTIVENESS.—
(1) 5-YEAR EFFECTIVENESS OF ORIGINAL PLAN.— A plan under subsection (d) shall
be in effect for purposes of this section during the 5-year period that begins upon
notification under subsection (e)(1) of the public housing agency that the plan complies
with the requirements under subsection (d).
(2) RENEWAL OF PLAN.— Upon the expiration of the 5-year period under
paragraph (1) or any 2-year period under this paragraph, an agency may extend the
effectiveness of the designation and plan for an additional 2-year period (that begins upon
such expiration) by submitting to the Secretary any information needed to update the plan.
The Secretary may not limit the number of times a public housing agency extends the
effectiveness of a designation and plan under this paragraph.
(3) TRANSITION PROVISION.— Any application and allocation plan approved under
this section (as in effect before the date of the enactment of the Housing Opportunity
Program Extension Act of 19961) before such date of enactment shall be considered to be
111
March 28, 1996.
56
a plan under subsection (d) that is in effect for purposes of this section for the 5-year
period beginning upon such approval.
(g) INAPPLICABILITY OF UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITIONS POLICY ACT OF 1970.— No tenant of a public housing project shall be considered
to be displaced for purposes of the Uniform Relocation Assistance and Real Property
Acquisitions112 Policy Act of 1970 because of the designation of any existing project or building,
or portion thereof, for occupancy as provided under subsection (a) of this section.
113
(h) INAPPLICABILITY TO INDIAN HOUSING.— The provisions of this section shall not
apply with respect to low-income housing developed or operated pursuant to a contract between
the Secretary and an Indian housing authority.
LOWER INCOME HOUSING ASSISTANCE
SEC. 8. [42 U.S.C. 1437f] (a) For the purpose of aiding lower-income families in obtaining
a decent place to live and of promoting economically mixed housing, assistance payments may be
made with respect to existing housing in accordance with the provisions of this section.114 A
public housing agency may contract to make assistance payments to itself (or any agency or
instrumentality thereof) as the owner of dwelling units if such agency is subject to the same
program requirements as are applied to other owners. In such cases, the Secretary may establish
initial rents within applicable limits.115
(b) 116RENTAL CERTIFICATES AND OTHER EXISTING HOUSING PROGRAMS.— 117118The
Secretary(1) IN GENERAL.— The Secretary is authorized to enter into annual contributions
contracts with public housing agenices pursuant to which such agencies may enter into contracts
to make assistance payments to owners of existing dwelling units in accordance with this section.
119
The Secretary shall enter into a separate annual contributions contract with each public housing
agency to obligate the authority approved each year, beginning with the authority approved in
appropriations Acts for fiscal year 1988 (other than amendment authority to increase assistance
payments being made using authority approved prior to the appropriations Acts for fiscal year
1988), and such annual contributions contract (other than for annual contributions under
subsection (o)) shall bind the Secretary to make such authority, and any amendments increasing
such authority, available to the public housing agency for a specified period.
In areas where no public housing agency has been organized or where the Secretary determines
that a public housing agency is unable to implement the provisions of this section, the Secretary is
authorized to enter into such contracts and to perform the other functions assigned to a public
housing agency by this section.
112
So in original. Should be "Acquisition".
Section 595(d) of the QHWRA deleted section 7(h). Section 595(f) of the QHWRA made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
114
Section 550(a)(1) of the QHWRA amended section 8(a).
115
Section 548 of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, added the last two sentences of this subsection and made
a related amended to subsection (f)(1) of this section.
Section 150 of the Housing and Community Development Act of 1992, Pub. L. 102-550, approved October 28, 1992, provides as follows:
"SEC. 150. EFFECTIVENESS OF SECTION 8 ASSISTANCE FOR PHA-OWNED UNITS.
"The amendments made by section 548 of the Cranston-Gonzalez National Affordable Housing Act shall be effective notwithstanding the absence of
any regulations issued by the Secretary of Housing and Urban Development.".
116
Section 550(a)(2)(A) of the QHWRA amended section 8(b).
117
Section 550(a)(2)(B)(i) of the QHWRA amended section 8(b)(1).
118
So in law. There is no paragraph designation.
119
Section 550(a)(2)(B)(ii) of the QHWRA amended section 8(b)(1).
113
57
(2) The Secretary is authorized to enter into annual contributions contracts with public
housing agencies for the purpose of replacing public housing transferred in accordance with title
III of this Act. Each contract entered into under this subsection shall be for a term of not more
than 60 months.
(c)(1) An assistance contract entered into pursuant to this section shall establish the
maximum monthly rent (including utilities and all maintenance and management charges) which
the owner is entitled to receive for each dwelling unit with respect to which such assistance
payments are to be made. The maximum monthly rent shall not exceed by more than 10 per
centum the fair market rental established by the Secretary periodically but not less than annually
for existing or newly constructed rental dwelling units of various sizes and types in the market
area suitable for occupancy by persons assisted under this section, except that the maximum
monthly rent may exceed the fair market rental (A) by more than 10 but not more than 20 per
centum where the Secretary determines that special circumstances warrant such higher maximum
rent or that such higher rent is necessary to the implementation of a housing strategy as defined in
section 105 of the Cranston-Gonzalez National Affordable Housing Act, or (B) by such higher
amount as may be requested by a tenant and approved by the public housing agency in accordance
with paragraph (3)(B). In the case of newly constructed and substantially rehabilitated units, the
exception in the preceding sentence shall not apply to more than 20 per centum of the total
amount of authority to enter into annual contributions contracts for such units which is allocated
to an area and obligated with respect to any fiscal year beginning on or after October 1, 1980.
Proposed fair market rentals for an area shall be published in the Federal Register with reasonable
time for public comment, and shall become effective upon the date of publication in final form in
the Federal Register. Each fair market rental in effect under this subsection shall be adjusted to be
effective on October 1 of each year to reflect changes, based on the most recent available data
trended so the rentals will be current for the year to which they apply, of rents for existing or
newly constructed rental dwelling units, as the case may be, of various sizes and types in the
market area suitable for occupancy by persons assisted under this section. Notwithstanding any
other provision of this section, after the date of enactment of the Housing and Community
Development Act of 1977, the Secretary shall prohibit high-rise elevator projects for families with
children unless there is no practical alternative. The Secretary shall establish separate fair market
rentals under this paragraph for Westchester County in the State of New York. The Secretary
shall also establish separate fair market rentals under this paragraph for Monroe County in the
Commonwealth of Pennsylvania. In establishing fair market rentals for the remaining portion of
the market area in which Monroe County is located, the Secretary shall establish the fair market
rentals as if such portion included Monroe County. If units assisted under this section are exempt
from local rent control while they are so assisted or otherwise, the maximum monthly rent for
such units shall be reasonable in comparison with other units in the market area that are exempt
from local rent control.
(2)(A) The assistance contract shall provide for adjustment annually or more frequently in
the maximum monthly rents for units covered by the contract to reflect changes in the fair market
rentals established in the housing area for similar types and sizes of dwelling units or, if the
Secretary determines, on the basis of a reasonable formula. However, where the maximum
monthly rent, for a unit in a new construction, substantial rehabilitation, or moderate rehabilitation
project, to be adjusted using an annual adjustment factor exceeds the fair market rental for an
existing dwelling unit in the market area, the Secretary shall adjust the rent only to the extent that
58
the owner demonstrates that the adjusted rent would not exceed the rent for an unassisted unit of
similar quality, type, and age in the same market area, as determined by the Secretary.120 The
immediately foregoing sentence shall be effective only during fiscal year 1995, fiscal year 1996
prior to April 26, 1996, and fiscal years 1997 and 1998, and during fiscal year 1999 and
thereafter. Except for assistance under the certificate program, for any unit occupied by the same
family at the time of the last annual rental adjustment, where the assistance contract provides for
the adjustment of the maximum monthly rent by applying an annual adjustment factor and where
the rent for a unit is otherwise eligible for an adjustment based on the full amount of the factor,
0.01 shall be subtracted from the amount of the factor, except that the factor shall not be reduced
to less than 1.0. In the case of assistance under the certificate program, 0.01 shall be subtracted
from the amount of the annual adjustment factor (except that the factor shall not be reduced to
less than 1.0), and the adjusted rent shall not exceed the rent for a comparable unassisted unit of
similar quality, type, and age in the market area.121 The immediately foregoing two sentences shall
be effective only during fiscal year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal years
1997 and 1998, and during fiscal year 1999 and thereafter. In establishing annual adjustment
factors for units in new construction and substantial rehabilitation projects, the Secretary shall
take into account the fact that debt service is a fixed expense. The immediately foregoing sentence
shall be effective only during fiscal year 1998.
(B) The contract shall further provide for the Secretary to make additional adjustments in
the maximum monthly rent for units under contract to the extent he determines such adjustments
are necessary to reflect increases in the actual and necessary expenses of owning and maintaining
the units which have resulted from substantial general increases in real property taxes, utility rates,
or similar costs which are not adequately compensated for by the adjustment in the maximum
monthly rent authorized by subparagraph (A). The Secretary shall make additional adjustments in
the maximum monthly rent for units under contract (subject to the availability of appropriations
for contract amendments) to the extent the Secretary determines such adjustments are necessary
to reflect increases in the actual and necessary expenses of owning and maintaining the units that
have resulted from the expiration of a real property tax exemption. Where the Secretary
determines that a project assisted under this section is located in a community where drug-related
criminal activity is generally prevalent and the project's operating, maintenance, and capital repair
expenses have been substantially increased primarily as a result of the prevalence of such drugrelated activity, the Secretary may (at the discretion of the Secretary and subject to the availability
of appropriations for contract amendments for this purpose), on a project by project basis,
provide adjustments to the maximum monthly rents, to a level no greater than 120 percent of the
project rents, to cover the costs of maintenance, security, capital repairs, and reserves required for
the owner to carry out a strategy acceptable to the Secretary for addressing the problem of drugrelated criminal activity. Any rent comparability standard required under this paragraph may be
waived by the Secretary to so implement the preceding sentence. The Secretary may (at the
120
The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995, Pub. L. 103327, 108 Stat. 2315, approved September 28, 1994, amended this subsection by inserting this sentence and the sentence that follows. Such Act
provides that "[such] amendment shall apply to all contracts for new construction, substantial rehabilitation, and moderate rehabilitation projects under
which rents are adjusted under section 8(c)(2)(A) of [the United States Housing Act of 1937] by applying an annual adjustment factor.".
121
The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995, Pub. L. 103327, 108 Stat. 2315, approved September 28, 1994, amended this subsection by inserting this sentence and the sentence that follows. Such Act
provides that such amendment "shall hereafter apply to all contracts
that are subject to section 8(c)(2)(A) of [the United States Housing Act of 1937] and that provide for rent adjustments using an annual adjustment
factor.".
59
discretion of the Secretary and subject to the availability of appropriations for contract
amendments), on a project by project basis for projects receiving project-based assistance, provide
adjustments to the maximum monthly rents to cover the costs of evaluating and reducing leadbased paint hazards, as defined in section 1004 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992.
(C) Adjustments in the maximum rents under subparagraphs (A) and (B) shall not result in
material differences between the rents charged for assisted units and unassisted units of similar
quality, type, and age in the same market area, as determined by the Secretary. In implementing
the limitation established under the preceding sentence, the Secretary shall establish regulations
for conducting comparability studies for projects where the Secretary has reason to believe that
the application of the formula adjustments under subparagraph (A) would result in such material
differences. The Secretary shall conduct such studies upon the request of any owner of any
project, or as the Secretary determines to be appropriate by establishing, to the extent practicable,
a modified annual adjustment factor for such market area, as the Secretary shall designate, that is
geographically smaller than the applicable housing area used for the establishment of the annual
adjustment factor under subparagraph (A). The Secretary shall establish such modified annual
adjustment factor on the basis of the results of a study conducted by the Secretary of the rents
charged, and any change in such rents over the previous year, for assisted units and unassisted
units of similar quality, type, and age in the smaller market area. Where the Secretary determines
that such modified annual adjustment factor cannot be established or that such factor when
applied to a particular project would result in material differences between the rents charged for
assisted units and unassisted units of similar quality, type, and age in the same market area, the
Secretary may apply an alternative methodology for conducting comparability studies in order to
establish rents that are not materially different from rents charged for comparable unassisted units.
If the Secretary or appropriate State agency does not complete and submit to the project owner a
comparability study not later than 60 days before the anniversary date of the assistance contract
under this section, the automatic annual adjustment factor shall be applied. The Secretary may not
reduce the contract rents in effect on or after April 15, 1987, for newly constructed, substantially
rehabilitated, or moderately rehabilitated projects assisted under this section (including projects
assisted under this section as in effect prior to November 30, 1983), unless the project has been
refinanced in a manner that reduces the periodic payments of the owner. Any maximum monthly
rent that has been reduced by the Secretary after April 14, 1987, and prior to the enactment of
this sentence shall be restored to the maximum monthly rent in effect on April 15, 1987. For any
project which has had its maximum monthly rents reduced after April 14, 1987, the Secretary shall
make assistance payments (from amounts reserved for the original contract) to the owner of such
project in an amount equal to the difference between the maximum monthly rents in effect on
April 15, 1987, and the reduced maximum monthly rents, multiplied by the number of months that
the reduced maximum monthly rents were in effect.122
(3) 123(A) The amount of the monthly assistance payment with respect to any dwelling unit
shall be the difference between the maximum monthly rent which the contract provides that the
122
Section 1004(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, Pub. L. 100-628, added this sentence and the
preceding sentence. Section 1004(b) of such Act provides as follows:
"(b) Budget Compliance.— During fiscal year 1989, the amendment made by subsection (a)(2) shall be effective only to such extent or in such
amounts as are provided in appropriation Acts. For purposes of section 202 of the Balanced Budget and Emergency Deficit Control Reaffirmation Act
of 1987 (Pub. L. 100-119), to the extent that this section has the effect of transferring an outlay of the United States from one fiscal year to an adjacent
fiscal year, the transfer is a necessary (but secondary) result of a significant policy change.".
123
Section 550(a)(3)(A)(i) of the QHWRA redesignated section 8(c)(3)(A) as section 8(c)(3).
60
owner is to receive for the unit and the rent the family is required to pay under section 3(a) of this
Act. Reviews of family income shall be made no less frequently than annually.
124
(B)(i) A family receiving tenant-based rental assistance under subsection (b)(1) may pay
a higher percentage of income than that specified under section 3(a) of this Act if—
(I) the family notifies the local public housing agency of its interest in a unit renting
for an amount which exceeds the permissible maximum monthly rent established for the
market area under paragraph (1), and
(II) such agency determines that the rent for the unit and the rental payments of the
family are reasonable, after taking into account other family expenses (including child care,
unreimbursed medical expenses, and other appropriate family expenses).
(ii) A public housing agency shall not approve such excess rentals for more than 10
percent of its annual allocation of incremental rental assistance under subsection (b)(1). A public
housing agency that approves such excess rentals for more than 5 percent of its annual allocation
shall submit a report to the Secretary not later than 30 days following the end of the fiscal year.
The report shall be submitted in such form and in accordance with such procedures as the
Secretary shall establish and shall describe the public housing agency's reasons for making the
exceptions, including any available evidence that the exceptions were made necessary by problems
with the fair market rent established for the area. The Secretary shall ensure that each report
submitted in accordance with this clause is readily available for public inspection for a period of
not less than 3 years, beginning not less than 30 days following the date on which the report is
submitted to the Secretary.
(iii) The Secretary shall, not later than 3 months following the end of each fiscal year,
submit a report to Congress that identifies the public housing agencies that have submitted reports
for such fiscal year under clause (ii), summarizes and assesses such reports, and includes
recommendations for such legislative or administrative actions that the Secretary deems
appropriate to correct problems identified in such reports.
(4) The assistance contract shall provide that assistance payments may be made only with
respect to a dwelling unit under lease for occupancy by a family determined to be a lower income
family at the time it initially occupied such dwelling unit125 or by a family that qualifies to receive
assistance under subsection (b) pursuant to section 223 or 226 of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990, except that such payments may be made
with respect to unoccupied units for a period not exceeding sixty days (A) in the event that a
family vacates a dwelling unit before the expiration date of the lease for occupancy or (B) where a
good faith effort is being made to fill an unoccupied unit, and, subject to the provisions of the
following sentence, such payments may be made, in the case of a newly constructed or
substantially rehabilitated project, after such sixty-day period in an amount equal to the debt
service attributable to such an unoccupied dwelling unit for a period not to exceed one year, if a
good faith effort is being made to fill the unit and the unit provides decent, safe, and sanitary
housing. No such payment may be made after such sixty-day period if the Secretary determines
that the dwelling unit is in a project which provides the owner with revenues exceeding the costs
incurred by such owner with respect to such project.
124
125
Section 550(a)(3)(A)(ii) of the QHWRA deleted section 8(c)(3)(B).
Section 550(a)(3)(B) of the QHWRA amended section 8(c)(4).
61
126
(5) Assistance payments may be made with respect to up to 100 per centum of the
dwelling units in any structure upon the application of the owner or prospective owner. Within the
category of projects containing more than fifty units and designed for use primarily for nonelderly
and nonhandicapped persons which are not subject to mortgages purchased under section 305 of
the National Housing Act, the Secretary may give preference to applications for assistance
involving not more than 20 per centum of the dwelling units in a project. In according any such
preference, the Secretary shall compare applications received during distinct time periods not
exceeding sixty days in duration.
127
(6)(5) The Secretary shall take such steps as may be necessary, including the making of
contracts for assistance payments in amounts in excess of the amounts required at the time of the
initial renting of dwelling units, the reservation of annual contributions authority for the purpose
of amending housing assistance contracts, or the allocation of a portion of new authorizations for
the purpose of amending housing assistance contracts, to assure that assistance payments are
increased on a timely basis to cover increases in maximum monthly rents or decreases in family
incomes.
128
(7) To the extent authorized in contracts entered into by the Secretary with a public
housing agency, such agency may purchase any structure containing one or more dwelling units
assisted under this section for the purpose of reselling the structure to the tenant or tenants
occupying units aggregating in value at least 80 per centum of the structure's total value. Any
such resale may be made on the terms and conditions prescribed under section 5(h) and subject to
the limitation contained in such section.
129
(8) Each contract under this section (other than a contract for assistance under the
certificate or voucher program)130 shall provide that the owner will notify tenants at least 90 days
prior to the expiration of the contract of any rent increase which may occur as a result of the
expiration of such contract.
131
(9)(8)(A) 132Not less than 180 days prior to terminating any contract under which
assistance payments are received under this section, other than a contract under the certificate or
voucher program,133 an owner shall provide written notice to the Secretary and the tenants
involved of the proposed termination, specifying the reasons for the termination with sufficient
detail to enable the Secretary to evaluate whether the termination is lawful and whether there are
additional actions that can be taken by the Secretary to avoid the termination. Not less than one
126
Section 550(a)(3)(C) of the QHWRA deleted section 8(c)(5).
Section 550(a)(3)(D) of the QHWRA redesignated section 8(c)(6) to section 8(c)(5).
128
Section 550(a)(3)(C) of the QHWRA deleted section 8(c)(7).
129
Section 549(a)(1)(A) of the QHWRA deleted section 8(c)(8). Section 549(a)(3) of the QHWRA made this amendment effective upon the
enactment of the QHWRA (October 21, 1998), notwithstanding section 203 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) or any other provision of law (including the expiration
of the applicability of such section 203 or any repeal of such section 203).
130
Section 203(b)(1) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1996 (as
contained in section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. 104-134) amended this paragraph by
adding this parenthetical phrase. Section 203(d) of such Act provides as follows:
"(d) Applicability.— The provisions of this section shall be effective for fiscal years 1996, 1997, and 1998 only.".
131
Section 549(b)(1) of the QHWRA redesignated section 8(c)(8) to section 8(c)(8)(A).
132
Section 549(a)(1)(B) of the QHWRA amended section 8(c)(8)(A) to read as shown. Section 549(a)(3) of the QHWRA made this amendment
effective upon the enactment of the QHWRA (October 21, 1998), notwithstanding section 203 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) or any other provision of law (including
the expiration of the applicability of such section 203 or any repeal of such section 203).
133
Section 203(b)(2) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1996 (as
contained in section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. 104-134) amended this sentence by
striking "(but not less than 90 days in the case of housing certificates or vouchers under subsection (b) or (o))" and inserting ", other than a contract
under the certificate or voucher program". Section 203(d) of such Act provides as follows:
"(d) Applicability.— The provisions of this section shall be effective for fiscal years 1996, 1997, and 1998 only.".
127
62
year before terminating any contract under which assistance payments are received under this
section, other than a contract for tenant-based assistance under this section, an owner shall
provide written notice to the Secretary and the tenants involved of the proposed termination,
specifying the reasons for the termination with sufficient detail to enable the Secretary to
evaluate whether the termination is lawful and whether there are additional actions that can be
taken by the Secretary to avoid the termination. The owner's notice shall include a statement that
the owner and the Secretary may agree to a renewal of the contract, thus avoiding the
termination. 134 The Secretary shall review the owner's notice, shall consider whether there are
additional actions that can be taken by the Secretary to avoid the termination, and shall ensure a
proper adjustment of the contract rents for the project in conformity with the requirements of
paragraph (2). The Secretary shall issue a written finding of the legality of the termination and the
reasons for the termination, including the actions considered or taken to avoid the termination.
Within 30 days of the Secretary's finding, the owner shall provide written notice to each tenant of
the Secretary's decision. For purposes of this paragraph, the term "termination" means the
expiration of the assistance contract or an owner's refusal to renew the assistance contract, and
such term shall include termination of the contract for business reasons.
135
(B) In the case of owner who has requested that the Secretary renew the contract, the
owner's notice under subparagraph (A) to the tenants shall include statements that—
(i) the owner currently has a contract with the Department of Housing and Urban
Development that pays the Government's share of the tenant's rent and the date on which
the contract will expire;
(ii) the owner intends to renew the contract for another year;
(iii) renewal of the contract may depend upon the Congress making funds
available for such renewal;
(iv) the owner is required by law to notify tenants of the possibility that the
contract may not be renewed if Congress does not provide funding for such renewals;
(v) in the event of nonrenewal, the Department of Housing and Urban
Development will provide tenant-based rental assistance to all eligible residents,
enabling them to choose the place they wish to rent; and
(vi) the notice itself does not indicate an intent to terminate the contract by either
the owner or the Department of Housing and Urban Development, provided there is
Congressional approval of funding availability.
(C) Notwithstanding the preceding provisions of this paragraph, if the owner agrees to a
5-year contract renewal offered by the Secretary, payments under which shall be subject to the
availability of appropriations for any year, the owner shall provide a written notice to the
Secretary and the tenants not less than 180 days before the termination of such contract. In the
event the owner does not provide the 180-day notice required in the immediately preceding
sentence, the owner may not evict the tenants or increase the tenants' rent payment until such
time as the owner has provided the 180-day notice and such period has elapsed. The Secretary
may allow the owner to renew the terminating contract for a period of time sufficient to give
tenants 180 days of advance notice under such terms and conditions as the Secretary may
require.
134
135
Section 549(b)(2) of the QHRWA amended section 8(c)(8)(A).
Section 549(b)(2) of the QHRWA added sections 8(c)(8)(B)-(E).
63
(D) Any notice under this paragraph shall also comply with any additional requirements
established by the Secretary.
(E) For purposes of this paragraph, the term "termination" means the expiration of the
assistance contract or an owner's refusal to renew the assistance contract, and such term shall
include termination of the contract for business reasons.
136
(10) If an owner provides notice of proposed termination under paragraph (9) and the
contract rent is lower than the maximum monthly rent for units assisted under subsection (b)(1),
the Secretary shall adjust the contract rent based on the maximum monthly rent for units assisted
under subsection (b)(1) and the value of the low-income housing after rehabilitation.
(d)(1) Contracts to make assistance payments entered into by a public housing agency
with an owner of existing housing units shall provide (with respect to any unit) that—
137
(A)138 the selection of tenants shall be the function of the owner, subject
to the provisions of the annual contributions contract between the Secretary and
the agency, except that for the certificate and moderate rehabilitation programs
only, for the purpose of selecting families to be assisted, the public housing agency
may establish, after public notice and an opportunity for public comment, a written
system of preferences for selection that is not inconsistent with the comprehensive
housing affordability strategy under title I of the Cranston-Gonzalez National
Affordable Housing Act;
(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 under section 5A
by the public housing agency;
(B)(i) the lease between the tenant and the owner shall be for at least one year or
the term of such contract, whichever is shorter, and shall contain other terms and
conditions specified by the Secretary;
139
(ii) during the term of the lease140, the owner(ii) during the term of the lease, the
owner shall not terminate the tenancy except for serious or repeated violation of the terms
and conditions of the lease, for violation of applicable Federal, State, or local law, or for
other good cause;
136
Section 549(a)(1)(A) deleted section 8(c)(10). Section 549(a)(3) of the QHWRA made this amendment effective upon the enactment of the
QHWRA (October 21, 1998), notwithstanding section 203 of the Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) or any other provision of law (including the expiration of the
applicability of such section 203 or any repeal of such section 203).
137
Section 514(b)(1) of the QHWRA amended section 8(d)(1)(A) to read as shown. Section 514(g) made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
138
Indented so in law.
Section 402(d)(2) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subparagraph to read as
shown. Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
139
Section 549(a)(2)(A) of the QHWRA amended section 8(d)(1)(B)(ii). Section 549(a)(3) of the QHWRA made this amendment effective upon the
enactment of the QHWRA (October 21, 1998), notwithstanding section 203 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) or any other provision of law (including the expiration
of the applicability of such section 203 or any repeal of such section 203).
140
Section 203(c) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1996 (as contained in
section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. 104-134) amended this subparagraph by adding the
phrase "during the term of the lease" each place it appears. Section 203(d) of such Act provides as follows:
"(d) Applicability.— The provisions of this section shall be effective for fiscal years 1996, 1997, and 1998 only.".
64
(iii) during the term of the lease138, any criminal activity(iii) during the term of
the lease, any criminal activity that threatens the health, safety, or right to peaceful
enjoyment of the premises by other tenants, any criminal activity that threatens the health,
safety, or right to peaceful enjoyment of their residences by persons residing in the
immediate vicinity of the premises, or any drug-related criminal activity on or near such
premises, engaged in by a tenant of any unit, any member of the tenant's household, or any
guest or other person under the tenant's control, shall be cause for termination of tenancy;
(iv) any termination of tenancy shall be preceded by the owner's provision of
written notice to the tenant specifying the grounds for such action; and
(v)142 it shall be cause for termination of the tenancy of a tenant if such
tenant—
(I) is fleeing to avoid prosecution, or custody or confinement after
conviction, under the laws of the place from which the individual flees, for
a crime, or attempt to commit a crime, which is a felony under the laws of
the place from which the individual flees, or which, in the case of the State
of New Jersey, is a high misdemeanor under the laws of such State; or
(II) is violating a condition of probation or parole imposed under
Federal or State law;
(C) maintenance and replacement (including redecoration) shall be in accordance
with the standard practice for the building concerned as established by the owner and
agreed to by the agency; and
(D) the agency and the owner shall carry out such other appropriate terms and
conditions as may be mutually agreed to by them.
(2)(A) Each contract for an existing structure entered into under this section shall be for a
term of not less than one month nor more than one hundred and eighty months. The Secretary
shall permit public housing agencies to enter into contracts for assistance payments of less than 12
months duration in order to avoid disruption in assistance to eligible families if the annual
contributions contract is within 1 year of its expiration date.143 Where the Secretary enters into an
annual contributions contract with a public housing agency pursuant to which the agency will
enter into a contract for assistance payments with respect to an existing structure, the contract for
assistance payments may not be attached to the structure unless (i) the Secretary and the public
housing agency approve such action, and (ii) the owner agrees to rehabilitate the structure other
than with assistance under this Act and otherwise complies with the requirements of this section,
except that the Secretary shall permit the public housing agency to approve such attachment with
respect to not more than 15 percent of the assistance provided by the public housing agency if the
requirements of clause (ii) are met. Notwithstanding any other provision of this section, a public
housing agency and an applicable State agency may, on a priority basis, attach to structures not
more than an additional 15 percent of the assistance provided by the public housing agency or the
applicable State agency only with respect to projects assisted under a State program that permits
the owner of the projects to prepay a State assisted or subsidized mortgage on the structure,
141
141
Section 549(a)(2)(B) of the QHWRA amended section 8(d)(1)(B)(iii). Section 549(a)(3) of the QHWRA made this amendment effective upon
the enactment of the QHWRA (October 21, 1998), notwithstanding section 203 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) or any other provision of law (including the expiration
of the applicability of such section 203 or any repeal of such section 203).
142
Indented so in law.
143
Section 550(a)(4)(A) of the QHWRA amended section 8(d)(2)(A).
65
except that attachment of assistance under this sentence shall be for the purpose of (i) providing
incentives to owners to preserve such projects for occupancy by lower and moderate income
families (for the period that assistance under this sentence is available), and (ii) to assist lower
income tenants to afford any increases in rent that may be required to induce the owner to
maintain occupancy in the project by lower and moderate income tenants.144
145
(B) The Secretary shall permit any public housing agency to approve the attachment of
assistance under subsection (b)(1) with respect to any newly constructed structure if—
(i) the owner or prospective owner agrees to construct the structure other than
with assistance under this Act and otherwise complies with the requirements of this
section; and
(ii) the aggregate assistance provided by the public housing agency pursuant to this
subparagraph and the last sentence of subparagraph (A) does not exceed 15 percent of the
assistance provided by the public housing agency.
(C) In the case of a contract for assistance payments that is attached to a structure under
this paragraph, a public housing agency shall enter into a contract with an owner, contingent upon
the future availability of appropriations for the purpose of renewing expiring contracts for
assistance payments as provided in appropriations Acts, to extend the term of the underlying
contract for assistance payments for such period or periods 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 contract for assistance payments accepted by the
owner and the owner's successors in interest. To the extent assistance is used as provided in the
penultimate sentence of subparagraph (A), the contract for assistance may, at the option of the
public housing agency, have an initial term not exceeding 15 years.
(D) Where a contract for assistance payments is attached to a structure, the owner shall
adopt written tenant selection procedures that are satisfactory to the Secretary as (i) consistent
with the purpose of improving housing opportunities for very low-income families; and (ii)
reasonably related to program eligibility and an applicant's ability to perform the obligations of the
lease. An owner shall promptly notify in writing any rejected applicant of the grounds for any
rejection.
(E) The Secretary shall annually survey public housing agencies to determine which public
housing agencies have, in providing assistance in such year, reached the 15 percent limitations
contained in subparagraphs (A) and (B), and shall report to the Congress on the results of such
survey.
146
(F)(B)(i) In determining the amount of assistance provided under an assistance contract
for project-based assistance under this paragraph or a contract for assistance for housing
constructed or substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of
this Act (as such section existed immediately before October 1, 1983), the Secretary may consider
and annually adjust, with respect to such project, for the cost of employing or otherwise retaining
the services of one or more service coordinators under section 661147 of the Housing and
144
Section 402(d)(6)(A)(iii) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subparagraph
by striking the last sentence, which read as follows: "Any assistance provided to lower income tenants under the preceding sentance shall not be
considered for purposes of the limitation under paragraph (1)(A) regarding the precentage of families that may receive assistance under this section
who do not qualify for preferences under such paragraph.". Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
145
Section 550(a)(4)(C) of the QHWRA deleted sections 8(d)(2)(B) - (E).
146
Section 550(a)(4)(C) of the QHWRA redesignated section 8(d)(2)(F) to section 8(d)(2)(B).
147
So in law. Probably intended to refer to section 671 of such Act.
66
Community Development Act of 1992 to coordinate the provision of any services within the
project for residents of the project who are elderly or disabled families.
(ii) The budget authority available under section 5(c) for assistance under this section is
authorized to be increased by $15,000,000 on or after October 1, 1992, and by $15,000,000 on or
after October 1, 1993. Amounts made available under this subparagraph shall be used to provide
additional amounts under annual contributions contracts for assistance under this section which
shall be made available through assistance contracts only for the purpose of providing service
coordinators under clause (i) for projects receiving project-based assistance under this paragraph
and to provide additional amounts under contracts for assistance for projects constructed or
substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of this Act (as
such section existed immediately before October 1, 1983) only for such purpose.
148
(G)149(C) An assistance contract for project-based assistance under this
paragraph shall provide that the owner shall ensure and maintain compliance with subtitle
C of title VI of the Housing and Community Development Act of 1992 and any
regulations issued under such subtitle.
150
(H)151 An152 owner(D) An owner of a covered section 8 housing project (as such
term is defined in section 659 of the Housing and Community Development Act of 1992)
may give preference for occupancy of dwelling units in the project, and reserve units for
occupancy, in accordance with subtitle D of title VI of the Housing and Community
Development Act of 1992.
(3) Notwithstanding any other provision of law, with the approval of the Secretary the
public housing agency administering a contract under this section with respect to existing housing
units may exercise all management and maintenance responsibilities with respect to those units
pursuant to a contract between such agency and the owner of such units.
(4) A public housing agency that serves more than one unit of general local government
may, at the discretion of the agency, in allocating assistance under this section, give priority to
disabled families that are not elderly families.
(5)149 CALCULATION OF LIMIT.— Any contract entered into under section 514 of
the Multifamily Assisted Housing Reform and Affordability Act of 1997 shall be excluded
in computing the limit on project-based assistance under this subsection.
153
(6) TREATMENT OF COMMON AREAS.— The Secretary may not provide any assistance
amounts pursuant to an existing contract for project-based assistance under this section for a
housing project and may not enter into a new or renewal contract for such assistance for a
project unless the owner of the project provides consent, to such local law enforcement agencies
as the Secretary determines appropriate, for law enforcement officers of such agencies to enter
common areas of the project at any time and without advance notice upon a determination of
probable cause by such officers that criminal activity is taking place in such areas.
148
Section 550(a)(4)(C) of the QHWRA redesignated section 8(d)(2)(G) to section 8(d)(2)(C).
Indented so in law.
Section 550(a)(4)(B) of the QHWRA amended section 8(d)(2)(H) to read as shown. Section 550(a)(4)(C) of the QHWRA redesignated section
8(d)(2)(H) to section 8(d)(2)(D).
151
Indented so in law.
152
Section 402(d)(6)(A)(iv) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subparagraph
by striking "Notwithstanding subsection (d)(1)(A)(i), an" and inserting "An". Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
153
Section 552 of the QHWRA added section 8(d)(6).
149
150
67
(e)(1) Nothing in this Act shall be deemed to prohibit an owner from pledging, or offering
as security for any loan or obligation, a contract for assistance payments entered into pursuant to
this section: Provided, That such security is in connection with a project constructed or
rehabilitated pursuant to authority granted in this section, and the terms of the financing or any
refinancing have been approved by the Secretary.
[(2) [Repealed.]]154
(f) As used in this section—
(1) the term "owner" means any private person or entity, including a cooperative,
an agency of the Federal Government, or a public housing agency, having the legal right to
lease or sublease dwelling units;
(2) the terms "rent" or "rental" mean, with respect to members of a cooperative,
the charges under the occupancy agreements between such members and the cooperative;
(3) the term "debt service" means the required payments for principal and interest
made with respect to a mortgage secured by housing assisted under this Act;
(4) the term "participating jurisdiction" means a State or unit of general local
government designated by the Secretary to be a participating jurisdiction under title II of
the Cranston-Gonzalez National Affordable Housing Act;
(5) 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));
(6) the term "project-based assistance" means rental assistance under subsection
(b) that is attached to the structure pursuant to subsection (d)(2) 155or (o)(13); and
(7) the term "tenant-based assistance" means rental assistance under subsection
156
(b) or (o) that is not project-based assistance 157and that provides for the eligible family
to select suitable housing and to move to other suitable housing.
(g) Notwithstanding any other provision of this Act, assistance payments under this
section may be provided, in accordance with regulations prescribed by the Secretary, with respect
to some or all of the units in any project approved pursuant to section 202 of the Housing Act of
1959.
(h) Sections 5(e) and 6158 and any other provisions of this Act which are inconsistent with
the provisions of this section shall not apply to contracts for assistance entered into under this
section.
(i) The Secretary may not consider the receipt by a public housing agency of assistance
under section 811(b)(1) of the Cranston-Gonzalez National Affordable Housing Act, or the
amount received, in approving assistance for the agency under this section or determining the
amount of such assistance to be provided.
154
Section 289(a) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, provides that no new grants shall be made under this
paragraph after October 1, 1991, except for funds allocated for single room occupancy dwellings as authorized by title IV of the Stewart B. McKinney
Homeless Assistance Act. Section 289(b) of such Act repealed this paragraph, effective on October 1, 1991, except with respect to single-room
occupancy dwellings under title IV of the Stewart B. McKinney Homeless Assistance Act.
The provisions of this paragraph, as in effect on the date of such repeal, are set forth in the footnote to section 441 of the Stewart B. McKinney
Homeless Assistance Act, found in part VI of this compilation.
155
Section 545(b) of the QHWRA amended section 8(f)(6).
156
Section 550(a)(5)(A) of the QHWRA amended section 8(f)(7).
157
Section 550(a)(5)(B) of the QHWRA amended section section 8(f)(7).
158
Section 565(c) of the QHWRA amended section 8(h) by inserting the language "(except as provided in section 6(j)(3))" after the words "section
6". This amendment could not be executed because the words "section 6" do not appear in section 8(h).
68
159
(j)(1) The Secretary may enter into contracts to make assistance payments under this
subsection to assist low-income families by making rental assistance payments on behalf of any
such family which utilizes a manufactured home as its principal place of residence. Such payments
may be made with respect to the rental of the real property on which there is located a
manufactured home which is owned by any such family or with respect to the rental by such
family of a manufactured home and the real property on which it is located. In carrying out this
subsection, the Secretary may—
(A) enter into annual contributions contracts with public housing agencies pursuant
to which such agencies may enter into contracts to make such assistance payments to the
owners of such real property, or
(B) enter into such contracts directly with the owners of such real property.
(2)(A) A contract entered into pursuant to this paragraph shall establish the maximum
monthly rent (including maintenance and management charges) which the owner is entitled to
receive for the space on which a manufactured home is located and with respect to which
assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10
per centum the fair market rental established by the Secretary periodically (but not less than
annually) with respect to the market area for the rental of real property suitable for occupancy by
families assisted under this paragraph.
(B) The amount of any monthly assistance payment with respect to any family which rents
real property which is assisted under this paragraph, and on which is located a manufactured
home which is owned by such family shall be the difference between the rent the family is required
to pay under section 3(a) of this Act and the sum of—
(i) the monthly payment made by such family to amortize the cost of purchasing
the manufactured home;
(ii) the monthly utility payments made by such family, subject to reasonable
limitations prescribed by the Secretary; and
(iii) the maximum monthly rent permitted with respect to the real property which is
rented by such family for the purpose of locating its manufactured home;
except that in no case may such assistance exceed the total amount of such maximum monthly
rent.
(3)(A) Contracts entered into pursuant to this paragraph shall establish the maximum
monthly rent permitted with respect to the manufactured home and the real property on which it is
located and with respect to which assistance payments are to be made. The maximum monthly
rent shall not exceed by more than 10 per centum the fair market rental established by the
Secretary periodically (but not less than annually) with respect to the market area for the rental of
a manufactured home and the real property on which it is located suitable for occupancy by
families assisted under this paragraph, except that the maximum monthly rent may exceed the fair
market rental by more than 10 but not more than 20 per centum where the Secretary determines
that special circumstances warrant such higher maximum rent.
(B) The amount of any monthly assistance payment with respect to any family which rents
a manufactured home and the real property on which it is located and which is assisted under this
paragraph shall be the difference between the rent the family is required to pay under section 3(a)
of this Act and the sum of—
159
Section 550(a)(6) of the QHWRA deleted section 8(j).
69
(i) the monthly utility payments made by such family, subject to reasonable
limitations prescribed by the Secretary; and
(ii) the maximum monthly rent permitted with respect to the manufactured home
and real property on which it is located.
(4) The provisions of subsection (c)(2) of this section shall apply to the adjustments of
maximum monthly rents under the subsection.
(5) Each contract entered into under the subsection shall be for a term of not less than one
month and not more than 180 months, except that in any case in which the manufactured home
park is substantially rehabilitated or newly constructed, such term may not be less than 240
months, nor more than the maximum term for a manufactured home loan permitted under section
2(b) of the National Housing Act.
(6) The Secretary may carry out this subsection without regard to whether the
manufactured home park is existing, substantially rehabilitated, or newly constructed.
(7) In the case of any substantially rehabilitated or newly constructed manufactured home
park containing spaces with respect to which assistance is made under this subsection, the
principal amount of the mortgage attributable to the rental spaces within the park may not exceed
an amount established by the Secretary which is equal to or less than the limitation for
manufactured home parks described in section 207(c)(3) of the National Housing Act, and the
Secretary may increase such limitation in high cost areas in the manner described in such section.
(8) The Secretary may prescribe other terms and conditions which are necessary for the
purpose of carrying out the provisions of this subsection and which are consistent with the
purposes of this subsection.
(k) The Secretary shall establish procedures which are appropriate and necessary to assure
that income data provided to public housing agencies and owners by families applying for or
receiving assistance under this section is complete and accurate. In establishing such procedures,
the Secretary shall randomly, regularly, and periodically select a sample of families to authorize
the Secretary to obtain information on these families for the purpose of income verification, or to
allow those families to provide such information themselves. Such information may include, but is
not limited to, data concerning unemployment compensation and Federal income taxation and
data relating to benefits made available under the Social Security Act, the Food Stamp Act of
1977, or title 38, United States Code. Any such information received pursuant to this subsection
shall remain confidential and shall be used only for the purpose of verifying incomes in order to
determine eligibility of families for benefits (and the amount of such benefits, if any) under this
section.
[(l) [Repealed.]]
[(m) [Repealed.]]
160
(n) In making assistance available under subsections (b)(1) and (e)(2), the Secretary may
provide assistance with respect to residential properties in which some or all of the dwelling units
do not contain bathroom or kitchen facilities, if—
(1) the property is located in an area in which there is a significant demand for such
units, as determined by the Secretary;
(2) the unit of general local government in which the property is located and the
local public housing agency approve of such units being utilized for such purpose; and
160
Section 550(a)(7) of the QHWRA deleted section 8(n).
70
(3) in the case of assistance under subsection (b)(1), the unit of general local
government in which the property is located and the local public housing agency certify to
the Secretary that the property complies with local health and safety standards.
The Secretary may waive, in appropriate cases, the limitation and preference described in the
second and third sentences of section 3(b)(3) with respect to the assistance made available under
this subsection.
161
(o) RENTAL VOUCHERS.— (1) The Secretary may provide assistance using a payment
standard in accordance with this subsection. The payment standard shall be used to determine the
monthly assistance which may be paid for any family, as provided in paragraph (2) of this
subsection, and shall be based on the fair market rental established under subsection (c).
(2) The monthly assistance payment for any family shall be the amount by which the
payment standard for the area exceeds 30 per centum of the family's monthly adjusted income,
except that such monthly assistance payment shall not exceed the amount by which the rent for
the dwelling unit (including the amount allowed for utilities in the case of a unit with separate
utility metering) exceeds 10 per centum of the family's monthly income. 162Notwithstanding the
preceding sentence, for families being admitted to the voucher program who remain in the same
unit or complex, where the rent (including the amount allowed for utilities) does not exceed the
payment standard, the monthly assistance payment for any family shall be the amount by which
such rent exceeds the greater of 30 percent of the family's monthly adjusted income or 10
percent of the family's monthly income.
(3)(A) Assistance payments may be made only for (i) a family determined to be a very
low-income family at the time it initially receives assistance, (ii) a family previously assisted under
this Act, (iii) a family that is determined to be a low-income family at the time it initially receives
assistance and that is displaced by activities under section 17(c), (iv) 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 (v) 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.
(B)163 For the purpose of selecting families to be assisted under this
subsection, the public housing agency may establish, after public notice and an
opportunity for public comment, a written system of preferences for selection that
is not inconsistent with the comprehensive housing affordability strategy under title
I of the Cranston-Gonzalez National Affordable Housing Act.
(4) If a family vacates a dwelling unit before the expiration of a lease term, no assistance
payment may be made with respect to the unit after the month during which the unit was vacated.
(5) A contract with a public housing agency for annual contributions under this subsection
shall be for an initial term of sixty months. The Secretary shall require (with respect to any unit)
that (A) the public housing agency inspect the unit before any assistance payment may be made to
161
Section 545(a) of the QHWRA amended section 8(o) to read as shown. Section 545(c) of the QHWRA provides that notwithstanding the
amendment made by section 545(a), any amendments to section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) that are
contained in title II of this Act shall apply with respect to the provision of assistance under such section during the period before implementation
(pursuant to section 559 of this title) of such section 8(o) as amended by section 545(a) of this section.
162
Section 209 of the Appropriation Act, 1999 amended section 8(o)(2).
163
Indented so in law.
Section 402(d)(3) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subparagraph to read as
shown. Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
71
determine that it meets housing quality standards for decent, safe, and sanitary housing established
by the Secretary for the purpose of this section, and (B) the public housing agency make annual or
more frequent inspections during the contract term. No assistance payment may be made for a
dwelling unit which fails to meet such quality standards, unless any such failure is promptly
corrected by the owner and the correction verified by the public housing agency.
(6)(A) The amount of assistance payments under this subsection may, in the discretion of
the public housing agency, be adjusted annually where necessary to assure continued affordability.
The aggregate amount of adjustments pursuant to the preceding sentence may not exceed the
amount of any excess of the annual contributions provided for in the contract over the amount of
assistance payments actually paid (including amounts which otherwise become available during
the contract period).
(B) For the purpose of subparagraph (A), each contract with a public housing agency for
annual contributions under this subsection shall provide annual contributions equal to 115 per
centum of the estimated aggregate amount of assistance required during the first year of the
contract.
(C) Any amounts not needed for adjustments under subparagraph (A) may be used to
provide assistance payments for additional families.
(7) A public housing agency may utilize authority available under this subsection to
provide assistance with respect to cooperative or mutual housing which has a resale structure
which maintains affordability for low-income families where the agency determines such action
will assist in maintaining the affordability of such housing for such families.
(8) The Secretary may set aside up to 5 percent of the budget authority available under
this subsection as an adjustment pool. The Secretary shall use amounts in the adjustment pool for
adjustments pursuant to paragraph (6)(A) to ensure continued affordability where the Secretary
determines additional assistance for this purpose is necessary, based on documentation submitted
by a public housing agency.
(9) The Secretary is authorized to enter into contracts with public housing agencies to
provide rental vouchers for the purpose of replacing public housing transferred in accordance with
title III of this Act. Each contract entered into under this paragraph shall be for a term of not
more than 60 months.
(10)(A)164 The rent for units assisted under this subsection shall be reasonable in
comparison with rents charged for comparable units in the private unassisted market or assisted
under section (b). A public housing agency shall, at the request of a family assisted under this
subsection, assist such family in negotiating a reasonable rent with an owner. A public housing
agency shall review all rents for units under consideration by families assisted under this
subsection (and all rent increases for units under lease by families assisted under this subsection)
to determine whether the rent (or rent increase) requested by an owner is reasonable. If a public
housing agency determines that the rent (or rent increase) for a unit is not reasonable, the agency
may disapprove a lease for such unit.
(11)(A) The Secretary may enter into contracts to make assistance payments under this
paragraph to assist low-income families by making rental assistance payments on behalf of any
such family which utilizes a manufactured home as its principal place of residence. Such payments
may be made with respect to the rental of the real property on which there is located a
manufactured home which is owned by any such family. In carrying out this paragraph the
164
So in law. There is no subparagraph (B).
72
Secretary shall enter into annual contributions contracts with public housing agencies pursuant to
which such agencies may enter into contracts to make such assistance payments to the owners of
such real property.
(B)(i) A contract entered into pursuant to this subparagraph shall establish the rent
(including maintenance and management charges) for the space on which a manufactured home is
located and with respect to which assistance payments are to be made. The public housing agency
shall establish a payment standard based on the fair market rental established by the Secretary
periodically (but not less than annually) with respect to the market area for the rental of real
property suitable for occupancy by families assisted under this subparagraph.
(ii) The amount of any monthly assistance payment with respect to any family which rents
real property which is assisted under this subparagraph and on which is located a manufactured
home which is owned by such family shall be the amount by which 30 percent of the family's
monthly adjusted income is exceeded by the sum of—
(I) the monthly payment made by such family to amortize the cost of purchasing
the manufactured home;
(II) the monthly utility payments made by such family, subject to reasonable
limitations prescribed by the Secretary; and
(III) the payment standard with respect to the real property which is rented by such
family for the purpose of locating its manufactured home;
except that in no case may such assistance exceed the amount by which the rent for the property
exceeds 10 percent of the family's monthly income.
(C) The provisions of paragraph (6)(A) shall apply to the adjustments of maximum
monthly rents under this paragraph.
(D) The Secretary may carry out this paragraph without regard to whether the
manufactured home park is existing, substantially rehabilitated, or newly constructed.
(E) In the case of any substantially rehabilitated or newly constructed manufactured home
park containing spaces with respect to which assistance is made under this paragraph, the
principal amount of the mortgage attributable to the rental spaces within the park may not exceed
an amount established by the Secretary which is equal to or less than the limitation for
manufactured home parks described in section 207(c)(3) of the National Housing Act, and the
Secretary may increase such limitation in high cost areas in the manner described in such section.
(F) The Secretary may prescribe other terms and conditions which are necessary for the
purpose of carrying out the provisions of this paragraph and which are consistent with the
purposes of this paragraph.
(o) VOUCHER PROGRAM.—
(1) AUTHORITY.—
(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 for each size of dwelling unit in a market area
shall not exceed 110 percent of the fair market rental established under subsection (c) for
the same size of dwelling unit in the same market area and shall be not less than 90
percent of that fair market rental.
73
(C) SET-ASIDE.— The Secretary may set aside not more than 5 percent of the
budget authority made available for assistance 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 rental or exceeds 110 percent
of the fair market rental.
(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.— Subject to the requirement under section
3(a)(3) (relating to minimum rental amount), the monthly assistance payment for a family
receiving assistance under this subsection shall be determined as follows:
(A) TENANT-BASED ASSISTANCE; RENT NOT EXCEEDING PAYMENT STANDARD.— For a
family receiving tenant-based assistance, if the rent for the family (including the amount
allowed for tenant-paid utilities) does not exceed the applicable payment standard
established under paragraph (1), the monthly assistance payment for the family shall be
equal to the amount by which the rent (including the amount allowed for tenant-paid
utilities) exceeds the greatest of the following amounts, rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted income of the family.
(ii) 10 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) TENANT-BASED ASSISTANCE; RENT EXCEEDING PAYMENT STANDARD.— For a
family receiving tenant-based assistance, if the rent for the family (including the amount
allowed for tenant-paid utilities) exceeds the applicable payment standard established
under paragraph (1), the monthly assistance payment for the family shall be equal to the
amount by which the applicable payment standard exceeds the greatest of amounts under
clauses (i), (ii), and (iii) of subparagraph (A).
(C) FAMILIES RECEIVING PROJECT-BASED ASSISTANCE.— For a family receiving
project-based assistance, 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) 40 PERCENT LIMIT.— At the time a family initially receives tenant-based assistance
under this section 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.
74
(4) ELIGIBLE FAMILIES.— To be eligible to receive assistance under this subsection, a
family shall, at the time a family initially receives assistance under this subsection, be a lowincome family that is—
(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.—
(A) IN GENERAL.— Reviews of family incomes for purposes of this section shall be
subject to the provisions of section 904 of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 and shall be conducted upon the initial provision of housing
assistance for the family and thereafter not less than annually.
(B) PROCEDURES.— Each public housing agency administering assistance under
this subsection shall establish procedures that are appropriate and necessary to ensure
that income data provided to the agency and owners by families applying for or receiving
assistance from the agency is complete and accurate. 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 AND DISAPPROVAL OF OWNERS.—
(A) PREFERENCES.—
(i) AUTHORITY TO ESTABLISH.— Each public housing agency may establish a
system for making tenant-based assistance under this subsection available on
behalf of eligible families that provides preference for such assistance to eligible
families having certain characteristics, which may include a preference for
families residing in public housing who are victims of a crime of violence (as such
term is defined in section 16 of title 18, United States Code) that has been
reported to an appropriate law enforcement agency.
(ii) CONTENT.— Each system of preferences established pursuant to this
subparagraph shall be based upon local housing needs and priorities, as
determined by the public housing agency using generally accepted data sources,
including any information obtained pursuant to an opportunity for public
comment as provided under section 5A(f) and under the requirements applicable
to the comprehensive housing affordability strategy for the relevant jurisdiction.
(B) SELECTION OF TENANTS.— Each housing assistance payment contract entered
into by the public housing agency and the owner of a dwelling unit) shall provide that the
screening and selection of families for those units shall be the function of the owner. In
addition, the public housing agency may elect to screen applicants for the program in
accordance with such requirements as the Secretary may establish.
(C) PHA DISAPPROVAL OF OWNERS.— In addition to other grounds authorized by
the Secretary, a public housing agency may elect not to enter into a housing assistance
75
payments contract under this subsection with an owner who refuses, or has a history of
refusing, to take action to terminate tenancy for activity engaged in by the tenant, any
member of the tenant's household, any guest, or any other person under the control of
any member of the household that—
(i) threatens the health or safety of, or right to peaceful enjoyment of the
premises by, other tenants or employees of the public housing agency, owner, or
other manager of the housing;
(ii) threatens the health or safety of, or right to peaceful enjoyment of the
residences by, persons residing in the immediate vicinity of the premises; or
(iii) is drug-related or violent criminal activity.
(7) LEASES AND TENANCY.— Each housing assistance payment contract entered into by the
public housing agency and the owner of a dwelling unit—
(A) 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 a prevailing local market
practice;
(B) 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;
(C) shall provide that during the term of the lease, the owner shall not terminate
the tenancy except for serious or repeated violation of the terms and conditions of the
lease, for violation of applicable Federal, State, or local law, or for other good cause;
(D) shall provide that during the term of the lease, any criminal activity that
threatens the health, safety, or right to peaceful enjoyment of the premises by other
tenants, any criminal activity that threatens the health, safety, or right to peaceful
enjoyment of their residences by persons residing in the immediate vicinity of the
premises, or any violent or drug-related criminal activity on or near such premises,
engaged in by a tenant of any unit, any member of the tenant's household, or any guest or
other person under the tenant's control, shall be cause for termination of tenancy;
(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 required by the Secretary to set forth the provisions
of this subsection.
(8) INSPECTION OF UNITS BY PHA'S.—
(A) IN GENERAL.— Except as provided in paragraph (11), for each dwelling unit
for which a housing assistance payment contract is established under this subsection, the
76
public housing agency shall inspect the unit before any assistance payment is made to
determine whether the dwelling unit meets the housing quality standards under
subparagraph (B).
(B) HOUSING QUALITY STANDARDS.— The housing quality standards under this
subparagraph are standards for safe and habitable 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—
(I) meet or exceed housing quality standards, except that the
Secretary may waive the requirement under this subclause to significantly
increase access to affordable housing and to expand housing
opportunities for families assisted under this subsection, except where
such waiver could adversely affect the health or safety of families assisted
under this subsection; and
(II) do not severely restrict housing choice
(C) INSPECTION.— The determination required under subparagraph (A) shall be
made by the public housing agency (or other entity, as provided in paragraph (11))
pursuant to an inspection of the dwelling unit conducted before any assistance payment is
made for the unit. Inspections of dwelling units under this subparagraph shall be made
before the expiration of the 15-day period beginning upon a request by the resident or
landlord to the public housing agency or, in the case of any public housing agency that
provides assistance under this subsection on behalf of more than 1250 families, before
the expiration of a reasonable period beginning upon such request. The performance of
the agency in meeting the 15-day inspection deadline shall be taken into consideration in
assessing the performance of the agency.
(D) ANNUAL INSPECTIONS.— Each public housing agency providing assistance
under this subsection (or other entity, as provided in paragraph (11)) shall make an
annual inspection of each assisted dwelling unit during the term of the housing assistance
payments contract for the unit to determine whether the unit is maintained in accordance
with the requirements under subparagraph (A). The agency (or other entity) shall retain
the records of the inspection for a reasonable time and shall make the records available
upon request to the Secretary, the Inspector General for the Department of Housing and
Urban Development, and any auditor conducting an audit under section 5(h).
(E) INSPECTION GUIDELINES.— The Secretary shall establish procedural guidelines
and performance standards to facilitate inspections of dwelling units and conform such
inspections with practices utilized in the private housing market. Such guidelines and
standards shall take into consideration variations in local laws and practices of public
housing agencies and shall provide flexibility to authorities appropriate to facilitate
efficient provision of assistance under this subsection.
(9) VACATED UNITS.— If an assisted family vacates a dwelling unit for which rental
assistance is provided under a housing assistance payment 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.—
77
(A) REASONABLENESS.— 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.
(B) NEGOTIATIONS.— A public housing agency (or other entity, as provided in
paragraph (11)) 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 (or such other entity) 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 (or other such entity) determines that the rent (or
rent increase) for a dwelling unit is not reasonable, the public housing agency (or other
such entity) 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) LEASING OF UNITS OWNED BY PHA.— If an eligible family assisted under this subsection
leases a dwelling unit (other than a public housing dwelling unit) 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 required under paragraph (8) and rent determinations required under paragraph
(10). The agency shall be responsible for any expenses of such inspections and determinations.
(12) ASSISTANCE FOR RENTAL OF 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 only 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.
78
(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 for
a family assisted under this paragraph shall be determined in accordance with
paragraph (2).
(13) PHA PROJECT-BASED ASSISTANCE.—
(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 structures for not more than 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; and
(ii) the provisions of subsection (c)(2)(C) shall not apply.
(14) INAPPLICABILITY TO TENANT-BASED ASSISTANCE.— Subsection (c) shall not apply to
tenant-based assistance under this subsection.
(15) 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).
79
(16) RENTAL VOUCHERS FOR RELOCATION OF WITNESSES AND VICTIMS OF CRIME.—
(A) WITNESSES.— 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.
(17) DEED RESTRICTIONS.— Assistance under this subsection may not be used in any
manner that abrogates any local deed restriction that applies to any housing consisting of 1 to 4
dwelling units. This paragraph may not be construed to affect the provisions or applicability of
the Fair Housing Act.
(p) In order to assist elderly families (as defined in section 3(b)(3)) who elect to live in a
shared housing arrangement in which they benefit as a result of sharing the facilities of a dwelling
with others in a manner that effectively and efficiently meets their housing
needs and thereby reduces their costs of housing, the Secretary shall permit assistance provided
under the existing housing and moderate rehabilitation programs to be used by such families in
such arrangements. In carrying out this subsection, the Secretary shall issue minimum habitability
standards for the purpose of assuring decent, safe, and sanitary housing for such families while
taking into account the special circumstances of shared housing.
165
(q)(1) The Secretary shall establish a fee for the costs incurred in administering the
certificate and housing voucher programs under subsections (b) and (o). The amount of the fee
for each month for which a dwelling unit is covered by an assistance contract shall be 8.2 percent
of the fair market rental established under subsection (c)(1) for a 2-bedroom existing rental
dwelling unit in the market area of the public housing agency. The Secretary may increase the fee
if necessary to reflect the higher costs of administering small programs and programs operating
over large geographic areas.
(2)(A) The Secretary shall also establish reasonable fees (as determined by the Secretary)
for—
(i) the costs of preliminary expenses (not to exceed $275) that the public housing
agency documents it has incurred in connection with new allocations of assistance under
the certificate and housing voucher programs under subsections (b) and (o);
(ii) the costs incurred in assisting families who experience difficulty (as determined
by the Secretary) in obtaining appropriate housing under the programs; and
(iii) extraordinary costs approved by the Secretary.
165
Section 547 of the QHWRA amended section 8(q) to read as shown.
80
(B) The method used to calculate fees under subparagraph (A) shall be the same for the
certificate and housing voucher programs under subsections (b) and (o) and shall take into
account local cost differences.
(3)(A) Fees under this subsection may be used for the costs of employing or otherwise
retaining the services of one or more service coordinators under section 661166 of the Housing and
Community Development Act of 1992 to coordinate the provision of supportive services for
elderly families and disabled families on whose behalf tenant-based assistance is provided under
this section or section 811(b)(1).167 Such service coordinators shall have the same responsibilities
with respect to such families as service coordinators of covered federally assisted housing projects
have under section 6611 of such Act with respect to residents of such projects.
(B) To the extent amounts are provided in appropriation Acts under subparagraph (C), the
Secretary shall increase fees under this subsection to provide for the costs of such service
coordinators for public housing agencies.
(C) The budget authority available under section 5(c) for assistance under this section is
authorized to be increased by $5,000,000 on or after October 1, 1992, and by $5,000,000 on or
after October 1, 1993. Amounts made available under this subparagraph shall be used to provide
additional amounts under annual contributions contracts for increased fees under this subsection,
which shall be used only for the purpose of providing service coordinators for public housing
agencies described in subparagraph (A).
(4) The Secretary may establish or increase a fee in accordance with this subsection only
to such extent or in such amounts as are provided in appropriation Acts.
(q) ADMINISTRATIVE FEES.—
(1) FEE FOR ONGOING COSTS OF ADMINISTRATION.—
(A) IN GENERAL.— The Secretary shall establish fees for the costs of
administering the tenant-based assistance, certificate, voucher, and moderate
rehabilitation programs under this section.
(B) FISCAL YEAR 1999.—
(i) CALCULATION.— For fiscal year 1999, the fee for each month for
which a dwelling unit is covered by an assistance contract shall be—
(I) in the case of a public housing agency that, on an
annual basis, is administering a program for not more than 600
dwelling units, 7.65 percent of the base amount; and
(II) in the case of an agency that, on an annual basis, is
administering a program for more than 600 dwelling units (aa) for
the first 600 units, 7.65 percent of the base amount, and (bb) for
any additional dwelling units under the program, 7.0 percent of
the base amount.
(ii) BASE AMOUNT.— For purposes of this subparagraph, the base
amount shall be the higher of—
(I) the fair market rental established under section 8(c) of
this Act (as in effect immediately before the effective date under
section 503(a) of the Quality Housing and Work Responsibility Act
166
167
So in law. Probably intended to refer to section 671 of such Act.
So in law. Probably intended to refer to section 811(b)(1) of the Cranston-Gonzalez National Affordable Housing Act.
81
of 1998) for fiscal year 1993 for a 2-bedroom existing rental
dwelling unit in the market area of the agency, and
(II) the amount that is the lesser of (aa) such fair market
rental for fiscal year 1994, or (bb) 103.5 percent of the amount
determined under clause (i),
adjusted based on changes in wage data or other objectively measurable
data that reflect the costs of administering the program, as determined by
the Secretary. The Secretary may require that the base amount be not less
than a minimum amount and not more than a maximum amount.
(C) SUBSEQUENT FISCAL YEARS.— For subsequent fiscal years, the Secretary
shall publish a notice in the Federal Register, for each geographic area,
establishing the amount of the fee that would apply for public housing agencies
administering the program, based on changes in wage data or other objectively
measurable data that reflect the costs of administering the program, as
determined by the Secretary.
(D) INCREASE.— The Secretary may increase the fee if necessary to reflect
the higher costs of administering small programs and programs operating over
large geographic areas.
(E) DECREASE.— The Secretary may decrease the fee for units owned by a
public housing agency to reflect reasonable costs of administration.
(2) FEE FOR PRELIMINARY EXPENSES.— The Secretary shall also establish reasonable fees
(as determined by the Secretary) for—
(A) the costs of preliminary expenses, in the amount of $500, for a public housing
agency, except that such fee shall apply to an agency only in the first year that the
agency administers a tenant-based assistance program under this section, and only if,
immediately before the effective date under section 503(a) of the Quality Housing and
Work Responsibility Act of 1998, the agency was not administering a tenant-based
assistance program under the United States Housing Act of 1937 (as in effect
immediately before such effective date), in connection with its initial increment of
assistance received;
(B) the costs incurred in assisting families who experience difficulty (as
determined by the Secretary) in obtaining appropriate housing under the programs; and
(C) extraordinary costs approved by the Secretary.
(3) TRANSFER OF FEES IN CASES OF CONCURRENT GEOGRAPHICAL JURISDICTION.— In each
fiscal year, if any public housing agency provides tenant-based assistance under this section on
behalf of a family who uses such assistance for a dwelling unit that is located within the
jurisdiction of such agency but is also within the jurisdiction of another public housing agency,
the Secretary shall take such steps as may be necessary to ensure that the public housing agency
that provides the services for a family receives all or part of the administrative fee under this
section (as appropriate).
(4) APPLICABILITY.— This subsection shall apply to fiscal year 1999 and fiscal years
thereafter.
168
(r)(1) Any family assisted under subsection (b) or (o) may receive such assistance to rent
an eligible dwelling unit if the dwelling unit to which the family moves is within the same State, or
168
Section 553(3) of the QHWRA amended section 8(r)(1) to read as shown.
82
the same or a contiguous metropolitan statistical area as the metropolitan statistical area within
which is located the area of jurisdiction of the public housing agency approving such assistance;
except that any family not living within the jurisdiction of a public housing agency at the time that
such family applies for assistance from such agency shall, during the 12-month period beginning
upon the receipt of any tenant-based rental assistance made available on behalf of the family, use
such assistance to rent an eligible dwelling unit located within the jurisdiction served by such
public housing agency.
(r) PORTABILITY.— (1) IN GENERAL.— (A) Any family receiving tenant-based assistance
under subsection (o) may receive such assistance to rent an eligible dwelling unit if the dwelling
unit to which the family moves is within any area in which a program is being administered
under this section.
(B)(i) Notwithstanding subparagraph (A) and subject to any exceptions established under
clause (ii) of this subparagraph, a public housing agency may require that any family not living
within the jurisdiction of the public housing agency at the time the family applies for assistance
from the agency shall, during the 12-month period beginning on the date of initial receipt of
housing assistance made available on behalf of the family from such agency, lease and occupy
an eligible dwelling unit located within the jurisdiction served by the agency.
(ii) The Secretary may establish such exceptions to the authority of public housing
agencies established under clause (i).
(2) The public housing agency having authority with respect to the dwelling unit to which
a family moves under this subsection shall have the responsibility of carrying out the provisions of
this subsection with respect to the family. 169 If no public housing agency has authority with
respect to the dwelling unit to which a family moves under this subsection, the public housing
agency approving the assistance shall have such responsibility.
(3) In providing assistance under subsection 170(b) or (o) for any fiscal year, the Secretary
shall give consideration to any reduction in the number of resident families incurred by a public
housing agency in the preceding fiscal year as a result of the provisions of this subsection. 171The
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.
(4) The provisions of this subsection may not be construed to restrict any authority of the
Secretary under any other provision of law to provide for the portability of assistance under this
section.
172
(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.
(s) In selecting families for the provision of assistance under this section (including
subsection (o)), a public housing agency may not exclude or penalize a family solely because the
family resides in a public housing project.
173
[(t)174 [Repealed.]]
169
Section 553(1) of the QHWRA amended section 8(r)(2).
Section 553(2)(A) of the QHWRA amended section 8(r)(3).
171
Section 553(2)(B) of the QHWRA amended section 8(r)(3).
172
Section 553(5) of the QHWRA added section 8(r)(5).
170
83
(u) In the case of low-income families living in rental projects rehabilitated under section
17 of this Act or section 533 of the Housing Act of 1949 before rehabilitation—
(1) 175certificates or vouchers under this section shall be made for families who are
required to move out of their units because of the physical rehabilitation activities or
because of overcrowding;
(2) at the discretion of each public housing agency or other agency administering
the allocation of assistance176, certificates or vouchers under this section may be made for
families who would have to pay more than 30 percent of their adjusted income for rent
after rehabilitation whether they choose to remain in, or to move from, the project; and
(3) the Secretary shall allocate assistance for 177certificates or vouchers under this
section to ensure that sufficient resources are available to address the physical or
economic displacement, or potential economic displacement, of existing tenants pursuant
to paragraphs (1) and (2).
178
The Secretary may extend expiring contracts entered into under this section for projectbased loan management assistance to the extent necessary to prevent displacement of low-income
families receiving such assistance as of September 30, 1996.
(w) RENEWAL OF EXPIRING CONTRACTS.— Not later than 30 days after the beginning of
each fiscal year, the Secretary shall publish in the Federal Register a plan for reducing, to the
extent feasible, year-to-year fluctuations in the levels of budget authority that will be required
over the succeeding 5-year period to renew expiring rental assistance contracts entered into under
this section since the enactment of the Housing and Community Development Act of 1974. To the
extent necessary to carry out such plan and to the extent approved in appropriations Acts, the
Secretary is authorized to enter into annual contributions contracts with terms of less than 60
months.
(x) FAMILY UNIFICATION.—
(1) INCREASE IN BUDGET AUTHORITY.— The budget authority available under
section 5(c) for assistance under section 8(b) is authorized to be increased by
$100,000,000 on or after October 1, 1992, and by $104,200,000 on or after October 1,
1993.
(2) USE OF FUNDS.— The amounts made available under this subsection shall be
used only in connection with 179housing certificate assistancetenant-based assistance under
section 8 on behalf of any family (A) who is otherwise eligible for such assistance, and (B)
who the public child welfare agency for the jurisdiction has certified is a family for whom
the lack of adequate housing is a primary factor in the imminent placement of the family's
173
Section 554 of the QHWRA made the following amendment: "Notwithstanding section 203(d) of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (as contained in section 101(e) of the Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134; 42 U.S.C. 1437f note)), section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f) is amended by striking subsection (t). This section shall apply beginning upon, and the amendment made by this
section is made on, and shall apply beginning upon, the date of the enactment of this Act."
174
Section 203(a) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1996 (as contained in
section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. 104-134) repealed this subsection (relating to the
"take-one, take-all" requirement for leasing of units in multifamily housing projects to certificate or voucher holders). Section 203(d) of such Act
provides as follows:
"(d) Applicability.— The provisions of this section shall be effective for fiscal years 1996, 1997, and 1998 only.".
175
Section 550(a)(8)(B) of the QHWRA amended section 8(u)(1).
176
Section 550(a)(8)(A) of the QHWRA amended section 8(u)(2).
177
Section 550(a)(8)(B) of the QHWRA amended section 8(u)(3).
178
So in law. There is no subsection designation.
179
Section 550(a)(9) of the QHWRA amended section 8(x)(2).
84
child or children in out-of-home care or the delayed discharge of a child or children to the
family from out-of-home care.
(3) ALLOCATION.— The amounts made available under this subsection shall be
allocated by the Secretary through a national competition among applicants based on
demonstrated need for assistance under this subsection. To be considered for assistance,
an applicant shall submit to the Secretary a written proposal containing a report from the
public child welfare agency serving the jurisdiction of the applicant that describes how a
lack of adequate housing in the jurisdiction is resulting in the initial or prolonged
separation of children from their families, and how the applicant will coordinate with the
public child welfare agency to identify eligible families and provide the families with
assistance under this subsection.
(4) DEFINITIONS.— For purposes of this subsection:
(A) APPLICANT.— The term "applicant" means a public housing agency or
any other agency responsible for administering assistance under section 8.
(B) PUBLIC CHILD WELFARE AGENCY.— The term "public child welfare
agency" means the public agency responsible under applicable State law for
determining that a child is at imminent risk of placement in out-of-home care or
that a child in out-of-home care under the supervision of the public agency may be
returned to his or her family.
180
(y) HOMEOWNERSHIP OPTION.—
(1) USE OF ASSISTANCE FOR HOMEOWNERSHIP. 181— A family receiving tenant-based
assistance under this section may receive assistance for occupancy of a dwelling owned by
one or more members of the family if the familyA public housing agency providing tenantbased 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 leasepurchase agreement) that will be owned by 1 or more members of the family, and will be
occupied by the family, if the family—
(A) is a first-time homeowner182, or owns or is acquiring shares in a
cooperative;
(B) 183(i) participates in the family self-sufficiency program under section 23
of the public housing agency providing the assistance; or
(ii) demonstratesdemonstrates that the family has income from employment
or other sources (other than public assistance, 184except that the Secretary may
provide for the consideration of public assistance in the case of an elderly family
or a disabled family), as determined in accordance with requirements of the
180
Section 555(b) of the QHWRA established a demonstration program for section 8(y): "Demonstration Program.—
(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."
181
Section 555(a)(1)(A) of the QHWRA amended section 8(y)(1). Section 555(c) of the QHWRA made this amendment effective upon enactment
of the QHWRA (October 21, 1998).
182
Section 555(a)(1)(B) of the QHWRA amended section 8(y)(1)(A). Section 555(c) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
183
Section 555(a)(1)(C)(i) of the QHWRA amended section 8(y)(1)(B). Section 555(c) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
184
Section 555(a)(1)(C)(ii) of the QHWRA amended section 8(y)(1)(B). Section 555(c) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
85
Secretary, that is not less than twice the payment standard established by the public
housing agency (or such other amount as may be established by the Secretary);
(C) except as provided by the Secretary, demonstrates at the time the
family initially receives tenant-based assistance under this subsection that one or
more adult members of the family have achieved employment for the period as the
Secretary shall require;
(D) participates in a homeownership and housing counseling program
provided by the agency; and
(E) meets any other initial or continuing requirements established by the
public housing agency in accordance with requirements established by the
Secretary.
185
(2) MONTHLY ASSISTANCE PAYMENT.—
(A) IN GENERAL.— Notwithstanding any other provisions of this section
governing determination of the amount of assistance payments under this section
on behalf of a family, the monthly assistance payment for any family assisted under
this subsection shall be the amount by which the fair market rental for the area
established under subsection (c)(1) exceeds 30 percent of the family's monthly
adjusted income; except that the monthly assistance payment shall not exceed the
amount by which the monthly homeownership expenses, as determined in
accordance with requirements established by the Secretary, exceeds 10 percent of
the family's monthly income.
(B) EXCLUSION OF EQUITY FROM INCOME.— For purposes of determining
the monthly assistance payment for a family, the Secretary shall not include in
family income an amount imputed from the equity of the family in a dwelling
occupied by the family with assistance under this subsection.
(2) DETERMINATION OF AMOUNT OF ASSISTANCE.—
(A) MONTHLY EXPENSES NOT EXCEEDING 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
expenses exceed the highest of the following amounts, rounded to the nearest
dollar:
(i) 30 percent of the monthly adjusted income of the family.
(ii) 10 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
185
Section 555(a)(2) of the QHWRA amended section 8(y)(2) to read as shown. Section 555(c) of the QHWRA made this amendment effective
upon enactment of the QHWRA (October 21, 1998).
86
payment shall be the amount by which the applicable payment standard exceeds
the highest of the amounts under clauses (i), (ii), and (iii) of subparagraph (A).
186
(3) RECAPTURE OF CERTAIN AMOUNTS.— Upon sale of the dwelling by the
family, the Secretary shall recapture from any net proceeds the amount of additional
assistance (as determined in accordance with requirements established by the Secretary)
paid to or on behalf of the eligible family as a result of paragraph (2)(B).
(4) DOWNPAYMENT REQUIREMENT.— Each public housing agency providing
assistance under this subsection shall ensure that each family assisted shall provide from its
own resources not less than 80 percent of any downpayment in connection with a loan
made for the purchase of a dwelling. Such resources may include amounts from any
escrow account for the family established under section 23(d). Not more than 20 percent
of the downpayment may be provided from other sources, such as from nonprofit entities
and programs of States and units of general local government.
(5) INELIGIBILITY UNDER OTHER PROGRAMS.— A family may not receive assistance
under this subsection during any period when assistance is being provided for the family
under other Federal homeownership assistance programs, as determined by the Secretary,
including assistance under the HOME Investment Partnerships Act, the Homeownership
and Opportunity Through HOPE Act, title II of the Housing and Community
Development Act of 1987, and section 502 of the Housing Act of 1949.
(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.
187
(6)(5) INAPPLICABILITY OF CERTAIN PROVISIONS.— Assistance under this
subsection shall not be subject to the requirements of the following provisions:
(A) Subsection (c)(3)(B) of this section.
(B) Subsection (d)(1)(B)(i) of this section.
(C) Any other provisions of this section governing maximum amounts
payable to owners and amounts payable by assisted families.
(D) Any other provisions of this section concerning contracts between
public housing agencies and owners.
186
Section 555(a)(3) of the QHWRA amended sections 8(y)(3) and (4) to read as shown and deleted section 8(y)(5). Section 555(c) of the
QHWRA made this amendment effective upon enactment of the QHWRA (October 21, 1998).
187
Section 555(a)(4) of the QHWRA redesignated section 8(y)(6) to 8(y)(5). Section 555(c) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
87
(E) Any other provisions of this Act that are inconsistent with the
provisions of this subsection.
188
(7)(6) REVERSION TO RENTAL STATUS.—
(A) FHA-INSURED MORTGAGES.— If a family receiving assistance under
this subsection for occupancy of a dwelling defaults under a mortgage for the
dwelling insured by the Secretary under the National Housing Act, the family may
not continue to receive rental assistance under this section unless the family (i)
transfers to the Secretary marketable title to the dwelling, (ii) moves from the
dwelling within the period established or approved by the Secretary, and (iii)
agrees that any amounts the family is required to pay to reimburse the escrow
account under section 23(d)(3) may be deducted by the public housing agency
from the assistance payment otherwise payable on behalf of the family.
(B) OTHER MORTGAGES.— If a family receiving assistance under this
subsection defaults under a mortgage not insured under the National Housing Act,
the family may not continue to receive rental assistance under this section unless it
complies with requirements established by the Secretary.
(C) ALL MORTGAGES.— A family receiving assistance under this subsection
that defaults under a mortgage may not receive assistance under this subsection for
occupancy of another dwelling owned by one or more members of the family.
(8)(7)189 DEFINITION OF FIRST-TIME HOMEOWNER.— For purposes of this
subsection, the term "first-time homeowner" means—
(A) a family, no member of which has had a present ownership interest in a
principal residence during the 3 years preceding the date on which the family
initially receives assistance for homeownership under this subsection; and
(B) any other family, as the Secretary may prescribe.
190
(z) TERMINATION OF SECTION 8 CONTRACTS AND REUSE OF RECAPTURED BUDGET
AUTHORITY.—
(1) GENERAL AUTHORITY.— The Secretary may reuse any budget authority, in
whole or part, that is recaptured on account of termination of a housing assistance
payments contract (other than a contract for tenant-based assistance) only for one or
more of the following:
(A) TENANT-BASED ASSISTANCE.— Pursuant to a contract with a public
housing agency, to provide tenant-based assistance under this section to families
occupying units formerly assisted under the terminated contract.
(B) PROJECT-BASED ASSISTANCE.— Pursuant to a contract with an owner, to
attach assistance to one or more structures under this section, for relocation of
families occupying units formerly assisted under the terminated contract.
(2) FAMILIES OCCUPYING UNITS FORMERLY ASSISTED UNDER TERMINATED
CONTRACT.— Pursuant to paragraph (1), the Secretary shall first make available tenantor project-based assistance to families occupying units formerly assisted under the
terminated contract. The Secretary shall provide project-based assistance in instances
188
Section 555(a)(4) of the QHWRA redesignated section 8(y)(7) to 8(y)(6). Section 555(c) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
189
Section 555(a)(4) of the QHWRA redesignated section 8(y)(8) to 8(y)(7). Section 555(c) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
190
Section 548(1) of the QHWRA moved section 8(z). There was no change to the text.
88
only where the use of tenant-based assistance is determined to be infeasible by the
Secretary.
(3) EFFECTIVE DATE.— This subsection shall be effective for actions initiated by
the Secretary on or before September 30, 1995.
(aa)191 REFINANCING INCENTIVE.—
(1) IN GENERAL.— The Secretary may pay all or a part of the up front costs of
refinancing for each project that—
(A) is constructed, substantially rehabilitated, or moderately rehabilitated
under this section;
(B) is subject to an assistance contract under this section; and
(C) was subject to a mortgage that has been refinanced under section
223(a)(7) or section 223(f) of the National Housing Act to lower the periodic debt
service payments of the owner.
(2) SHARE FROM REDUCED ASSISTANCE PAYMENTS.— The Secretary may pay the
up front cost of refinancing only—
(A) to the extent that funds accrue to the Secretary from the reduced
assistance payments that results from the refinancing; and
(B) after the application of amounts in accordance with section 1012 of the
Stewart B. McKinney Homeless Assistance Amendments Act of 1988.
192
(z) TERMINATION OF SECTION 8 CONTRACTS AND REUSE OF RECAPTURED BUDGET
AUTHORITY.—
(1) GENERAL AUTHORITY.— The Secretary may reuse any budget authority, in
whole or part, that is recaptured on account of termination of a housing assistance
payments contract (other than a contract for tenant-based assistance) only for one or more
of the following:
(A) TENANT-BASED ASSISTANCE.— Pursuant to a contract with a public
housing agency, to provide tenant-based assistance under this section to families
occupying units formerly assisted under the terminated contract.
(B) PROJECT-BASED ASSISTANCE.— Pursuant to a contract with an owner,
to attach assistance to one or more structures under this section, for relocation of
families occupying units formerly assisted under the terminated contract.
(2) FAMILIES OCCUPYING UNITS FORMERLY ASSISTED UNDER TERMINATED
CONTRACT.— Pursuant to paragraph (1), the Secretary shall first make available tenant- or
project-based assistance to families occupying units formerly assisted under the terminated
contract. The Secretary shall provide project-based assistance in instances only where the
use of tenant-based assistance is determined to be infeasible by the Secretary.
(3) EFFECTIVE DATE.— This subsection shall be effective for actions initiated by the
Secretary on or before September 30, 1995.
(bb) TRANSFER, REUSE, AND RESCISSION OF BUDGET AUTHORITY.—
(1) TRANSFER OF BUDGET AUTHORITY193.— If an assistance contract under this
section, other than a contract for tenant-based assistance, is terminated or is not renewed,
191
So in law. There is no subsection (z). The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1995, Pub. L. 103-327, 108 Stat. 2316, approved September 28, 1994, amended this section by adding this subsection. Such Act
also provides that such amendment "shall be effective only during fiscal year 1995.".
192
Section 548(1) of the QHWRA moved section 8(z). There was no change to the text. See footnote 187.
193
So in law.
89
or if the contract expires, the Secretary shall, in order to provide continued assistance to
eligible families, including eligible families receiving the benefit of the project-based
assistance at the time of the termination, transfer any budget authority remaining in the
contract to another contract. The transfer shall be under such terms as the Secretary may
prescribe.
(2) REUSE AND RESCISSION OF CERTAIN RECAPTURED BUDGET AUTHORITY.—
Notwithstanding paragraph (1), if a project-based assistance contract for an eligible
multifamily housing project subject to actions authorized under title I is terminated or
amended as part of restructuring under section 517 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997, the Secretary shall recapture the budget authority
not required for the terminated or amended contract and use such amounts as are
necessary to provide housing assistance for the same number of families covered by such
contract for the remaining term of such contract, under a contract providing for projectbased or tenant-based assistance. The amount of budget authority saved as a result of the
shift to project-based or tenant-based assistance shall be rescinded.
194
(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 project, an owner may admit, and assistance under this section 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.
(3) APPLICABILITY.— This subsection shall apply to fiscal year 1999 and fiscal
years thereafter.
195
(dd) TENANT-BASED CONTRACT RENEWALS.— Subject to amounts provided in
appropriation Acts, starting in fiscal year 1999, the Secretary shall renew all expiring tenantbased annual contribution contracts under this section by applying an inflation factor based on
local or regional factors to an allocation baseline. The allocation baseline shall be calculated by
including, at a minimum, amounts sufficient to ensure continued assistance for the actual
number of families assisted as of October 1, 1997, with appropriate upward adjustments for
incremental assistance and additional families authorized subsequent to that date.
196
ANNUAL CONTRIBUTIONS FOR OPERATION OF LOWER INCOME HOUSING PROJECTS
194
Section 548(2) of the QHWRA added section 8(cc).
Section 556(a) of the QHWRA added section 8(dd). Section 556(b) provided additional implementation information: "Implementation.— The
Secretary of Housing and Urban Development shall implement the provision added by the amendment made by subsection (a) through notice,
not later than December 31, 1998, and shall issue final regulations which shall be developed pursuant to the procedures for issuance of
regulations under the negotiated rulemaking procedure under subchapter III of chapter 5 of title 5, United States Code, not later than one year
after the date of the enactment of this Act."
196
Section 519(a) of the QHWRA amended section 9 to read as shown. Section 519(e) of the QHWRA states "(e) TRANSITIONAL PROVISION OF
ASSISTANCE.-195
90
SEC. 9. [42 U.S.C. 1437g] (a)(1)(A) In addition to the contributions authorized to be
made for the purposes specified in section 5 of this Act, the Secretary may make annual
contributions to public housing agencies for the operation of low-income housing projects. The
contributions payable annually under this section shall not exceed the amounts which the
Secretary determines are required (i) to assure the lower income character of the projects
involved, and (ii) to achieve and maintain adequate operating services and reserve funds. The
Secretary shall embody the provisions for such annual contributions in a contract guaranteeing
their payment subject to the availability of funds, and such contract shall provide that no
disposition of the low-income housing project, with respect to which the contract is entered into,
shall occur during and for ten years after the period when contributions were made pursuant to
such contract unless approved by the Secretary. If the Secretary determines that a public housing
agency has failed to take the actions required to submit an acceptable audit on a timely basis in
accordance with chapter 75 of title 31, United States Code, the Sec-retary may arrange for, and
pay the costs of, the audit. In such circumstances, the Secretary may withhold, from assistance
otherwise payable to the agency under this section, amounts sufficient to pay for the reasonable
costs of conducting an acceptable audit, including, when appropriate, the reasonable costs of
accounting services necessary to place the agency's books and records in auditable condition.
(B)(i) Annual contributions under this section to any public
housing agency for any project with a sufficient number of residents who are frail elderly or
persons with disabilities may be used, with respect to such project, for (I) the cost of a
management staff member to coordinate the provision of any services within the project provided
through any agency of the Federal Government or any other public or private department, agency,
or organization to residents of the project who are frail elderly or persons with disabilities to
enable such residents to live independently and prevent placement in nursing homes or
institutions; and (II) expenses for the provision of services for such residents of the project to
enable such residents to live independently and prevent placement in nursing homes or
institutions, which may include meal services, housekeeping and chore assistance, personal care,
laundry assistance, transportation services, and health-related services, except that not more than
15 percent of the cost of the provision of such services may be provided under this section. For
(1) IN GENERAl.--Subject to paragraph (2), before the implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) of the United States
Housing Act of 1937 (as amended by subsection (a) of this section), 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 immediately before the enactment of this Act
(except that such sections shall be subject to any amendments to such sections that may be contained in title II of this Act).
(2) QUALIFICATIONS.--Before the implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) of the United States Housing Act of 1937
(as amended by subsection (a) of this section)-(A) if a public housing agency establishes a rental amount that is based on a ceiling rent established pursuant to subsection (d)(1) of this
section, the Secretary shall take into account any reduction of 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;
(B) if a public housing agency establishes a rental amount that is based on an adjustment to income under section 3(b)(5)(G) of the United
States Housing Act of 1937 (as in effect immediately before the enactment of this Act), the Secretary shall not take into account any reduction of
or any 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; and
(C) if a public housing agency establishes a rental amount other than as provided under subparagraph (A) or (B) that is less than the greatest
of the amounts determined under subparagraphs (A), (B), and (C) of section 3(a)(1) of the United States Housing Act of 1937, the Secretary shall
not take into account any reduction of 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.".
Section 519(f) of the QHWRA states "(f) EFFECTIVE DATE OF OPERATING FORMULA.--Notwithstanding the effective date under section 503(a), the
Secretary may extend the effective date of the formula under section 9(e)(2) of the United States Housing Act of 1937 (as amended by subsection
(a) of this section) for up to 6 months if such additional time is necessary to implement such formula.".
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purposes of this clause, the term "frail elderly" shall have the meaning given the term under
section 202(d) of the Housing Act of 1959, except that such term does not include any person
receiving assistance provided under the Congregate Housing Services Act of 1978 or section 802
of the Cranston-Gonzalez National Affordable Housing Act, and the term "persons with
disabilities" shall have the meaning given the term under section 811 of the Cranston-Gonzalez
National Affordable Housing Act.
(ii) Annual contributions under this section to any public housing agency for any project
may be used, with respect to such project, for (I) the cost of employing or otherwise retaining the
services of one or more service coordinators under section 661197 of the Housing and Community
Development Act of 1992 to coordinate the provision of any supportive services within the
project for residents of the project who are elderly families and disabled families, and (II)
expenses for the provision of such services for such residents of the project. Not more than 15
percent of the cost of the provision of such services may be provided under this section. Services
may not be provided under this clause for any person receiving assistance under the Congregate
Housing Services Act of 1978 or section 802 of the Cranston-Gonzalez National Affordable
Housing Act. The budget authority available under section 5(c) for assistance under this section is
authorized to be increased by $30,000,000 on or after October 1, 1992, and by $30,000,000 on or
after October 1, 1993. Amounts made available under this clause shall be used to provide
additional annual contributions to public housing agencies only for the purpose of providing
service coordinators and services under this clause for public housing projects.
(2) The Secretary may not make assistance available under this section for any low-income
housing project unless such project is one developed pursuant to a contributions contract
authorized by section 5 but not subject to section 8, except that after the duration of any such
contributions contract with respect to a low-income housing project, the Secretary may provide
assistance under this section with respect to such project as long as the lower income nature of
such project is maintained.
(3)(A) For purposes of making payments under this section (except for payments under
paragraph (1)(B)), the Secretary shall utilize a performance funding system that is substantially
based on the system defined in regulations and in effect on the date of the enactment of the
Housing and Community Development Act of 1987198 (as modified by this paragraph), and that
establishes standards for costs of operation and reasonable projections of income, taking into
account the character and location of the project and the characteristics of the families served, in
accordance with a formula representing the operations of a prototype well-managed project. Such
performance funding system shall be established in consultation with public housing agencies and
their associations, be contained in a regulation promulgated by the Secretary prior to the start of
any fiscal year to which it applies, and remain in effect for the duration of such fiscal year without
change. Notwithstanding the preceding sentences, the Secretary shall revise the performance
funding system by June 15, 1988, to accurately reflect the increase in insurance costs incurred by
public housing agencies. 199Notwithstanding the preceding sentences, the Secretary may revise the
performance funding system in a manner that takes into account equity among public housing
agencies and that includes appropriate incentives for sound management. Notwithstanding
sections 583(a) and 585(a) of title 5, United States Code (as added by section 3(a) of the
197
So in law. Probably intended to refer to section 671 of such Act.
February 5, 1988.
199
Section 210(1) of the Appropriations Act, 1999 amended section 9(a)(3)(A).
198
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Negotiated Rulemaking Act of 1990), any proposed regulation providing for amendment,
alteration, adjustment, or other change to the performance funding system relating to vacant
public housing units200, or any substantial change under the preceding sentence, shall be issued
pursuant to a negotiated rulemaking procedure under subchapter IV of chapter 5 of such title (as
added by section 3(a) of the Negotiated Rulemaking Act of 1990), and the Secretary shall
establish a negotiated rulemaking committee for development of any such proposed regulations.
(B) Under the performance funding system established under this paragraph—
(i) in the first year that the reductions occur, any public housing agency shall share
equally with the Secretary any cost reductions due to the differences between projected
and actual utility rates attributable to actions taken by the agency which lead to such
reductions, and in subsequent years, if the energy savings are cost-effective, the Secretary
may continue the sharing arrangement with the public housing agency;
(ii) in the case of any public housing agency that receives financing (from a person
other than the Secretary) or enters into a performance contract to undertake energy
conservation improvements in a public housing project, under which payment does not
exceed the cost of the energy saved as a result of the improvements during a negotiated
contract period of not more than 12 years that is approved by the Secretary—
(I) the public housing agency shall retain 100 percent of any cost avoidance
due to differences between projected and actual utility consumption (adjusted for
heating degree days)201 attributable to the improvements, until the term of the
financing agreement is completed, at which time the annual utility expense level 3year rolling base procedures shall be applied using—
(a) in the first year following the end of the contract period, the
energy use during the 2 years prior to installation of the energy
conservation improvements and the last contract year;
(b) in the second year following the end of the contract period, the
energy use during the 1 year prior to installation of the energy conservation
improvements and the 2 years following the end of the contract period; and
(c) in the third year following the end of the contract period, the
energy use in the 3 years following the end of the contract period; or
(II) the Secretary shall provide an additional operating subsidy above the
current allowable utility expense level equivalent to the cost of the energy saved as
a result of the improvements and sufficient to cover payments for the
improvements through the term of the contract or agreement;
(iii) there shall be a formal review process for the purpose of providing such
revisions (either increases or reductions) to the allowable expense level of a public housing
agency as necessary—
(I) to correct inequities and abnormalities that exist in the base year
expense level of such public housing agency;
200
Section 210(2) of the Appropriations Act, 1999 amended section 9(a)(3)(A).
Section 508 of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, provides as follows:
"SEC. 508. COOLING DEGREE DAY ADJUSTMENT UNDER PERFORMANCE FUNDING SYSTEM.
"In determining the Performance Funding System utility subsidy for public housing agencies pursuant to section 9 of the United States Housing Act of
1937, the Secretary of Housing and Urban Development shall include a cooling degree day adjustment factor. The method by which a cooling degree
day adjustment factor is included shall be identical to the method by which the heating degree day adjustment factor is included.".
201
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(II) to accurately reflect changes in operating circumstances since the initial
determination of such base year expense level; and
(III) to ensure that the allowable expense limit accurately reflects the higher
cost of operating the project in an economically distressed unit of local
government and the lower cost of operating the project in an economically
prosperous unit of local government;
(iv) if a public housing agency redesigns or substantially rehabilitates a public
housing project so that 2 or more dwelling units are combined to create a single larger
dwelling unit, the payments received under this section shall not be reduced solely because
of the resulting reduction in the number of dwelling units if not less than the same number
of individuals will reside in the new larger dwelling unit as resided in the dwelling units
that were combined to form such larger dwelling unit; and
(v) if a public housing agency renovates, converts, or combines one or more
dwelling units in a public housing project to create congregate space to accommodate the
provision of supportive services in accordance with section 22 of this Act and section 802
of the Cranston-Gonzalez National Affordable Housing Act, the payments received under
this section shall not be reduced because of the resulting reduction in the number of
dwelling units.
(4) Adjustments to a public housing agency's operating subsidy made by the Secretary
under this section shall reflect actual changes in rental income collections resulting from the
application of section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of
1988.
(b) The aggregate rentals required to be paid in any year by families residing in the
dwelling units administered by a public housing agency receiving annual contributions under this
section shall not be less than an amount equal to one-fifth of the sum of the incomes of all such
families.
(c)(1) There are authorized to be appropriated for purposes of providing annual
contributions under this section $2,282,436,000 for fiscal year 1993 and $2,378,298,312 for fiscal
year 1994.
(2) There are also authorized to be appropriated to provide annual contributions under this
section, in addition to amounts under paragraph (1), such sums as may be necessary for each of
fiscal years 1993 and 1994, to provide each public housing agency with the difference between
(A) the amount provided to the agency from amounts appropriated pursuant to paragraph (1), and
(B) all funds for which the agency is eligible under the performance funding system without
adjustments for estimated or unrealized savings.
(3) In addition to amounts under paragraphs (1) and (2), there are authorized to be
appropriated for annual contributions under this section to provide for the costs of the
adjustments to income and adjusted income under the amendments made by sections 573(b) and
(c) of the Cranston-Gonzalez National Affordable Housing Act such sums as may be necessary
for fiscal years 1993 and 1994.
(d) If, in any fiscal year beginning after September 30, 1979, any funds which have been
appropriated for such year remain after applying the provisions of the second and fourth sentences
of subsection (a)(1), the Secretary shall distribute such funds to low-income housing projects
which incurred excessive costs which were beyond their control and the full extent of which was
not taken into account in the original distribution of funds for such fiscal year.
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(e) In the case of any public housing agency that submits its budget for any fiscal year of
such agency to the Secretary in a timely manner in accordance with the regulations issued by the
Secretary under this section, assistance to be provided to such agency under this section for such
fiscal year shall commence not later than the 1st month of such fiscal year, and shall be paid in
accordance with such payment schedule as may be agreed upon by the Secretary and such agency.
SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) MERGER INTO CAPITAL FUND.— Except as otherwise provided in the Quality Housing
and Work Responsibility Act of 1998, any assistance made available for public housing under
section 14 of this Act before October 1, 1999, shall be merged into the Capital Fund established
under subsection (d).
(b) MERGER INTO OPERATING FUND.— Except as otherwise provided in the Quality
Housing and Work Responsibility Act of 1998, any assistance made available for public housing
under section 9 of this Act before October 1, 1999, shall be merged into the Operating Fund
established under subsection (e).
(c) ALLOCATION AMOUNT.—
(1) IN GENERAL.— For fiscal year 2000 and each fiscal year thereafter, the
Secretary shall allocate amounts in the Capital Fund and Operating Funds for assistance
for public housing agencies eligible for such assistance. The Secretary shall determine
the amount of the allocation for each eligible agency, which shall be, for any fiscal year
beginning after the effective date of the formulas described in subsections (d)(2) and
(e)(2)—
(A) for assistance from the Capital Fund, the amount determined for the
agency under the formula under subsection (d)(2); and
(B) for assistance from the Operating Fund, the amount determined for
the agency under the formula under subsection (e)(2).
(2) FUNDING.— There are authorized to be appropriated for assistance for public
housing agencies under this section the following amounts:
(A) CAPITAL FUND.— For allocations of assistance from the Capital Fund,
$3,000,000,000 for fiscal year 1999, and such sums as may be necessary for
fiscal years 2000, 2001, 2002, and 2003.
(B) OPERATING FUND.— For allocations of assistance from the Operating
Fund, $2,900,000,000 for fiscal year 1999, and such sums as may be necessary
for each of fiscal years 2000, 2001, 2002, and 2003.
(d) 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, financing, and modernization of public housing
projects, including the redesign, reconstruction, and reconfiguration of public
housing sites and buildings (including accessibility improvements) and the
development of mixed-finance projects;
(B) vacancy reduction;
(C) addressing deferred maintenance needs and the replacement of
obsolete utility systems and dwelling equipment;
(D) planned code compliance;
95
(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, including programs under section 32.
(2) FORMULA.— The Secretary shall develop a formula for determining the amount
of assistance provided to public housing agencies from the Capital Fund for a fiscal
year, which shall include a mechanism to reward performance. The formula may take
into account such factors as—
(A) the number of public housing dwelling units owned, assisted, or
operated by the public housing agency, the characteristics and locations of the
projects, and the characteristics of the families served and to be served (including
the incomes of the families);
(B) the need of the public housing agency to carry out rehabilitation and
modernization activities, replacement housing, and reconstruction, construction,
and demolition activities related to public housing dwelling units owned, assisted,
or operated by the public housing agency, including backlog and projected future
needs of the agency;
(C) the cost of constructing and rehabilitating property in the area;
(D) the need of the public housing agency to carry out activities that
provide a safe and secure environment in public housing units owned, assisted, or
operated by the public housing agency;
(E) any record by the public housing agency of exemplary performance in
the operation of public housing, as indicated by the system of performance
indicators established pursuant to section 6(j); and
(F) any other factors that the Secretary determines to be appropriate.
(3) CONDITIONS ON USE FOR DEVELOPMENT AND MODERNIZATION.—
(A) DEVELOPMENT.— Except as otherwise provided in this Act, any public
housing developed using amounts provided under this subsection, or under
section 14 as in effect before the effective date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998, shall be operated under the terms
and conditions applicable to public housing during the 40-year period that begins
on the date on which the project (or stage of the project) becomes available for
occupancy.
(B) MODERNIZATION.— Except as otherwise provided in this Act, any public
housing or portion thereof that is modernized using amounts provided under this
subsection or under section 14 (as in effect before the effective date under
section 503(a) of the Quality Housing and Work Responsibility Act of 1998) shall
be maintained and operated under the terms and conditions applicable to public
housing during the 20-year period that begins on the latest date on which
modernization is completed.
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(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 such expiration date.
(e) 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)(6) 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, including above-baseline police
service agreements;
(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 policy making of public housing by public housing residents;
(F) the costs of insurance;
(G) the energy costs associated with public housing units, with an
emphasis on energy conservation;
(H) the costs of administering a public housing work program under
section 12, including the costs of any related insurance needs;
(I) the costs of repaying, together with rent contributions, debt incurred to
finance the rehabilitation and development of public housing units, which shall be
subject to such reasonable requirements as the Secretary may establish; and
(J) the costs associated with the operation and management of mixed
finance projects, to the extent appropriate.
(2) FORMULA.—
(A) IN GENERAL.— The Secretary shall establish a formula for determining
the amount of assistance provided to public housing agencies from the Operating
Fund for a fiscal year. The formula may take into account—
(i) standards for the costs of operating and reasonable projections
of income, taking into account the characteristics and locations of the
public housing projects and characteristics of the families served and to
be served (including the incomes of the families), or the costs of providing
comparable services as determined in accordance with criteria or a
formula representing the operations of a prototype well-managed public
housing project;
97
(ii) the number of public housing dwelling units owned, assisted, or
operated by the public housing agency;
(iii) the number of public housing dwelling units owned, assisted,
or operated by the public housing agency that are chronically vacant and
the amount of assistance appropriate for those units;
(iv) to the extent quantifiable, 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;
(v) the need of the public housing agency to carry out anti-crime
and anti-drug activities, including providing adequate security for public
housing residents;
(vi) the amount of public housing rental income foregone by the
public housing agency as a result of escrow savings accounts under
section 23(d)(2) for families participating in a family self-sufficiency
program of the agency under such section 23; and
(vii) any other factors that the Secretary determines to be
appropriate.
(B) INCENTIVE TO INCREASE CERTAIN RENTAL INCOME.— The formula shall
provide an incentive to encourage public housing agencies to facilitate increases
in earned income by families in occupancy. Any such incentive shall provide that
the agency shall benefit from increases in such rental income and that such
amounts accruing to the agency pursuant to such benefit may be used only for
low-income housing or to benefit the residents of the public housing agency.
(C) TREATMENT OF SAVINGS.— The treatment of utility and waste
management costs under the formula shall provide that a public housing agency
shall receive the full financial benefit from any reduction in the cost of utilities or
waste management resulting from any contract with a third party to undertake
energy conservation improvements in one or more of its public housing projects.
(3) CONDITION ON USE.— No portion of any public housing project operated using
amounts provided under this subsection, or under this section as in effect before the
effective date under section 503(a) of the Quality Housing and Work Responsibility Act
of 1998, may be disposed of before the expiration of the 10-year period beginning upon
the conclusion of the fiscal year for which such amounts were provided, except as
otherwise provided in this Act.
(f) NEGOTIATED RULEMAKING PROCEDURE.— The formulas under subsections (d)(2) and
(e)(2) shall be developed according to procedures for issuance of regulations under the
negotiated rulemaking procedure under subchapter III of chapter 5 of title 5, United States
Code.
(g) LIMITATIONS ON USE OF FUNDS.—
(1) FLEXIBILITY FOR CAPITAL FUND AMOUNTS.— Of any amounts appropriated for
fiscal year 2000 or any fiscal year thereafter that are allocated for fiscal year 2000 or
any fiscal year thereafter from the Capital Fund for any public housing agency, the
agency may use not more than 20 percent for activities that are eligible under subsection
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(e) for assistance with amounts from the Operating Fund, but only if the public housing
agency plan for the agency provides for such use.
(2) FULL FLEXIBILITY FOR SMALL PHA'S.— Of any amounts allocated for any fiscal
year for any public housing agency that owns or operates less than 250 public housing
dwelling units, is not designated pursuant to section 6(j)(2) as a troubled public housing
agency, and (in the determination of the Secretary) is operating and maintaining its
public housing in a safe, clean, and healthy condition, the agency may use any such
amounts for any eligible activities under subsections (d)(1) and (e)(1), regardless of the
fund from which the amounts were allocated and provided. This subsection shall take
effect on the date of the enactment of the Quality Housing and Work Responsibility Act of
1998.
(3) LIMITATION ON NEW CONSTRUCTION.—
(A) IN GENERAL.— Except as provided in subparagraphs (B) and (C), a
public housing agency may not use any of the amounts allocated for the agency
from the Capital Fund or Operating Fund for the purpose of constructing any
public housing unit, if such construction would result in a net increase from the
number of public housing units owned, assisted, or operated by the public
housing agency on October 1, 1999, including any public housing units
demolished as part of any revitalization effort.
(B) EXCEPTION REGARDING USE OF ASSISTANCE.— A public housing agency
may use amounts allocated for the agency from the Capital Fund or Operating
Fund 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), but the formulas established under subsections
(d)(2) and (e)(2) shall not provide additional funding for the specific purpose of
allowing construction and operation of housing in excess of those limitations
(except to the extent provided in subparagraph (C)).
(C) EXCEPTION REGARDING FORMULAS.— Subject to reasonable limitations
set by the Secretary, the formulas established under subsections (d)(2) and (e)(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, and such amounts may be so used, if—
(i) such 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.
(h) TECHNICAL ASSISTANCE.— To the extent amounts are provided in advance in
appropriations Acts, the Secretary may make grants or enter into contracts or cooperative
agreements 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;
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(3) data collection and analysis;
(4) training, technical assistance, and education to public housing agencies that
are—
(A) at risk of being designated as troubled under section 6(j), to assist
such agencies from being so designated; and
(B) designated as troubled under section 6(j), to assist such agencies in
achieving the removal of that designation;
(5) contract expertise;
(6) training and technical assistance to assist in the oversight and management of
public housing or tenant-based assistance; and
(7) clearinghouse services in furtherance of the goals and activities of this
subsection.
As used in this subsection, the terms `training' and `technical assistance' shall include training
or technical assistance and the cost of necessary travel for participants in such training or
technical assistance, by or to officials and employees of the Department and of public housing
agencies, and to residents and to other eligible grantees.
(i) ELIGIBILITY OF UNITS ACQUIRED FROM PROCEEDS OF SALES UNDER DEMOLITION OR
DISPOSITION PLAN.— If a public housing agency uses proceeds from the sale of units under a
homeownership program in accordance with section 32 to acquire additional units to be sold to
low-income families, the additional units shall be counted as public housing for purposes of
determining the amount of the allocation to the agency under this section until sale by the
agency, but in no case longer than 5 years.
(j) PENALTY FOR SLOW EXPENDITURE OF CAPITAL FUNDS.—
(1) OBLIGATION OF AMOUNTS.— Except as provided in paragraph (4) and subject to
paragraph (2), a public housing agency shall obligate any assistance received under this
section not later than 24 months after, as applicable—
(A) the date on which the funds become available to the agency for
obligation in the case of modernization; or
(B) the date on which the agency accumulates adequate funds to
undertake modernization, substantial rehabilitation, or new construction of units.
(2) EXTENSION OF TIME PERIOD FOR OBLIGATION.— The Secretary—
(A) may, extend the time period under paragraph (1) for a public housing
agency, for such period as the Secretary determines to be necessary, if the
Secretary determines that the failure of the agency to obligate assistance in a
timely manner is attributable to—
(i) litigation;
(ii) obtaining approvals of the Federal Government or a 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;
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(B) shall disregard the requirements of paragraph (1) with respect to any
unobligated amounts made available to a public housing agency, to the extent
that the total of such amounts does not exceed 10 percent of the original amount
made available to the public housing agency; and
(C) may, with the prior approval of the Secretary, extend the time period
under paragraph (1), 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 amounts allocated for the agency from the Capital Fund in a
timely manner as a result of State or local law; or
(iv) such other factors as the Secretary determines to be relevant.
(3) EFFECT OF FAILURE TO COMPLY.—
(A) PROHIBITION OF NEW ASSISTANCE.— 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 paragraph
(1) or (2).
(B) WITHHOLDING OF ASSISTANCE.— During any fiscal year described in
subparagraph (A), the Secretary shall withhold all assistance that would
otherwise be provided to the public housing agency. If the public housing agency
cures its failure to comply during the year, it shall be provided with the share
attributable to the months remaining in the year.
(C) REDISTRIBUTION.— The total amount of any funds not provided public
housing agencies by operation of this paragraph shall be allocated for agencies
determined under section 6(j) to be high-performing.
(4) EXCEPTION TO OBLIGATION REQUIREMENTS.—
(A) IN GENERAL.— Subject to subparagraph (B), if the Secretary has
consented, before the effective date under section 503(a) of the Quality Housing
and Work Responsibility Act of 1998, to an obligation period for any agency
longer than provided under paragraph (1), 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).
(B) PRIOR FISCAL YEARS.— Notwithstanding subparagraph (A), any funds
appropriated to a public housing agency for fiscal year 1997 or prior fiscal years
shall be fully obligated by the public housing agency not later than September 30,
1999.
(5) 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 (2)) after the date on which funds
become available to the agency for obligation.
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(B) ENFORCEMENT.— The Secretary shall enforce the requirement of
subparagraph (A) through default remedies up to and including withdrawal of the
funding.
(6) 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.
(k) EMERGENCY RESERVE AND USE OF AMOUNTS.—
(1) SET-ASIDES.— In each fiscal year after fiscal year 1999, the Secretary shall set
aside, for use in accordance with this subsection, not more than 2 percent of the total
amount made available to carry out this section for such fiscal year. In addition to
amounts set aside under the preceding sentence, in each fiscal year the Secretary may set
from the total amount made available to carry out this section for such fiscal year not
more than $20,000,000 for the Operation Safe Home program administered by the Office
of the Inspector General of the Department of Housing and Urban Development, for law
enforcement efforts to combat violent crime on or near the premises of public and
federally assisted housing.
(2) USE OF FUNDS.— Amounts set aside under paragraph (1) shall be available to
the Secretary for use for assistance, as provided in paragraph (3), in connection with—
(A) emergencies and other disasters; and
(C) housing needs resulting from any settlement of litigation; and
(3) ELIGIBLE USES.— In carrying out this subsection, the Secretary may use
amounts set aside under this subsection to provide—
(A) assistance for any eligible use under the Operating Fund or the
Capital Fund established by this section; or
(B) tenant-based assistance in accordance with section 8.
(4) 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 (2) during the succeeding
fiscal year.
(5) PUBLICATION.— The Secretary shall publish the use of any amounts allocated
under this subsection relating to emergencies (other than disasters and housing needs
resulting from any settlement of litigation) in the Federal Register.
(l) TREATMENT OF NONRENTAL INCOME.— A public housing agency that receives income
from nonrental sources (as determined by the Secretary) may retain and use such amounts
without any decrease in the amounts received under this section from the Capital or Operating
Fund. Any such nonrental amounts retained shall be used only for low-income housing or to
benefit the residents assisted by the public housing agency.
(m) PROVISION OF ONLY CAPITAL OR OPERATING ASSISTANCE.—
(1) AUTHORITY.— In appropriate circumstances, as determined by the Secretary, a
public housing agency may commit capital assistance only, or operating assistance only,
for public housing units, which assistance shall be subject to all of the requirements
applicable to public housing except as otherwise provided in this subsection.
(2) Exemptions.— In the case of any public housing unit assisted pursuant to the
authority under paragraph (1), the Secretary may, by regulation, reduce the period under
subsection (d)(3) or (e)(3), as applicable, during which such units must be operated
102
under requirements applicable to public housing. In cases in which there is commitment
of operating assistance but no commitment of capital assistance, the Secretary may make
section 8 requirements applicable, as appropriate, by regulation.
(n) TREATMENT OF PUBLIC HOUSING.—
(1) CERTAIN STATE AND CITY FUNDED HOUSING.—
(A) IN GENERAL.— Notwithstanding any other provision of this section—
(i) for purposes of determining the allocations from the Operating
and Capital Funds pursuant to the formulas under subsections (d)(2) and
(e)(2) and determining assistance pursuant to section 519(e) of the
Quality Housing and Work Responsibility Act of 1998 and under section 9
or 14 of the United States Housing Act of 1937 (as in effect before the
date of the enactment of this Act), for any period before the
implementation of such formulas, the Secretary shall deem any covered
locally developed public housing units as public housing units developed
under this title and such units shall be eligible for such assistance; and
(ii) assistance provided under this section, under such section
518(d)(3), or under such section 9 or 14 to any public housing agency
may be used with respect to any covered locally developed public housing
units.
(B) COVERED UNITS.— For purposes of this paragraph, the term "covered
locally developed public housing units" means—
(i) not more than 7,000 public housing units developed pursuant to
laws of the State of New York and that received debt service and operating
subsidies pursuant to such laws; and
(ii) not more than 5,000 dwelling units developed pursuant to
section 34 of chapter 121B of the General Laws of the State of
Massachusetts.
(2) REDUCTION OF ASTHMA INCIDENCE.— Notwithstanding any other provision of
this section, the New York City Housing Authority may, in its sole discretion, from
amounts provided from the Operating and Capital Funds, or from amounts provided for
public housing before amounts are made available from such Funds, use not more than
exceeding $500,000 per year for the purpose of initiating, expanding or continuing a
program for the reduction of the incidence of asthma among residents. The Secretary
shall consult with the Administrator of the Environmental Protection Agency and the
Secretary of Health and Human Services to identify and consider sources of funding for
the reduction of the incidence of asthma among recipients of assistance under this title.
(3) SERVICES FOR ELDERLY RESIDENTS.— Notwithstanding any other provision of
this section, the New York City Housing Authority may, in its sole discretion, from
amounts provided from the Operating and Capital Funds, or from amounts provided for
public housing before the amounts are made available from such Funds, use not more
than $600,000 per year for the purpose of developing a comprehensive plan to address
the need for services for elderly residents. Such plan may be developed by a partnership
created by such Housing Authority and may include the creation of a model project for
assisted living at one or more developments. The model project may provide for
contracting with private parties for the delivery of services.
103
(4) EFFECTIVE DATE.— This subsection shall apply to fiscal year 1999 and each
fiscal year thereafter.
GENERAL PROVISIONS
SEC. 10. [42 U.S.C. 1437h] (a) In the performance of, and with respect to, the functions,
powers, and duties vested in him by this Act, the Secretary, notwithstanding the provisions of any
other law, shall—
(1) prepare annually and submit a budget program as provided for wholly owned
Government corporations by chapter 91 of title 31, United States Code; and
(2) maintain an integral set of accounts which may be audited by the General
Accounting Office as provided by chapter 91 of title 31, United States Code.
(b) All receipts and assets of the Secretary under this Act shall be available for the
purposes of this Act until expended.
(c) The Federal Reserve banks are authorized and directed to act as depositories,
custodians, and fiscal agents for the Secretary in the general exercise of his powers under this Act,
and the Secretary may reimburse any such bank for its services in such manner as may be agreed
upon.
FINANCING LOWER INCOME HOUSING PROJECTS
SEC. 11. [42 U.S.C. 1437i] (a) Obligations issued by a public housing agency in
connection with low-income housing projects which (1) are secured (A) by a pledge of a loan
under any agreement between such public housing agency and the Secretary, or (B) by a pledge of
annual contributions under an annual contributions contract between such public housing agency
and the Secretary, or (C) by a pledge of both annual contributions under an annual contributions
contract and a loan under an agreement between such public housing agency and the Secretary,
and (2) bear, or are accompanied by, a certificate of the Secretary that such obligations are so
secured, shall be incontestable in the hands of a bearer and the full faith and credit of the United
States is pledged to the payment of all amounts agreed to be paid by the Secretary as security for
such obligations.
(b) Except as provided in section 5(g), obligations, including interest thereon, issued by
public housing agencies in connection with low-income housing projects shall be exempt from all
taxation now or hereafter imposed by the United States whether paid by such agencies or by the
Secretary. The income derived by such agencies from such projects shall be exempt from all
taxation now or hereafter imposed by the United States.
LABOR STANDARDS 202AND COMMUNITY SERVICE REQUIREMENT
SEC. 12. [42 U.S.C. 1437j] (a) Any contract for loans, contributions, sale, or lease
pursuant to this Act shall contain a provision requiring that not less than the wages prevailing in
the locality, as determined or adopted (subsequent to a determination under applicable State or
local law) by the Secretary, shall be paid to all architects, technical engineers, draftsmen, and
technicians employed in the development, and all maintenance laborers and mechanics employed
in the operation, of the low-income housing project involved; and shall also contain a provision
202
Section 512(a)(1) of the QHWRA amended the heading for section 12.
104
that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor
pursuant to the Davis-Bacon Act (49 Stat. 1011), shall be paid to all laborers and mechanics
employed in the development of the project involved (including a project with nine or more units
assisted under section 8 of this Act, where the public housing agency or the Secretary and the
builder or sponsor enter into an agreement for such use before construction or rehabilitation is
commenced), and the Secretary shall require certification as to compliance with the provisions of
this section prior to making any payment under such contract.
(b) Subsection (a) and the provisions relating to wages (pursuant to subsection (a)) in any
contract for loans, annual contributions, sale, or lease pursuant to this Act, shall not apply to any
individual that—
(1) performs services for which the individual volunteered;
(2)(A) does not receive compensation for such services; or
(B) is paid expenses, reasonable benefits, or a nominal fee for such services; and
(3) is not otherwise employed at any time in the construction work.
203
(c) COMMUNITY SERVICE REQUIREMENT.—
(1) IN GENERAL.— Except as provided in paragraph (2) and notwithstanding any
other provision of law, each adult resident of a public housing project shall—
(A) contribute 8 hours per month of community service (not including
political activities) within the community in which that adult resides; or
(B) participate in an economic self-sufficiency program (as that term is
defined in subsection (g)) for 8 hours per month.
(2) EXEMPTIONS.— The Secretary shall provide an exemption from the
applicability of paragraph (1) for any individual who—
(A) is 62 years of age or older;
(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 is a primary caretaker of such individual;
(C) is engaged in a work activity (as such term is defined in section 407(d)
of the Social Security Act (42 U.S.C. 607(d)), as in effect on and after July 1,
1997));
(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, including a Stateadministered welfare-to-work program; or
(E) is in a family receiving assistance under a 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,
including a State-administered welfare-to-work program, and has not been found
by the State or other administering entity to be in noncompliance with such
program.
(3) ANNUAL DETERMINATIONS.—
(A) REQUIREMENT.— For each public housing resident subject to the
requirement under paragraph (1), the public housing agency shall, 30 days before
203
Section 512(a)(2) of the QHWRA added sections 12(c)-(g).
105
the expiration of each lease term of the resident under section 6(l)(1), review and
determine the compliance of the resident with the requirement under paragraph
(1) of this subsection.
(B) DUE PROCESS.— Such determinations shall be made in accordance with
the principles of due process and on a nondiscriminatory basis.
(C) NONCOMPLIANCE.— If an agency determines that a resident subject to
the requirement under paragraph (1) has not complied with the requirement, the
agency—
(i) shall notify the resident—
(I) of such noncompliance;
(II) that the determination of noncompliance is subject to
the administrative grievance procedure under subsection (k); and
(III) that, unless the resident enters into an agreement
under clause (ii) of this subparagraph, the resident's lease will not
be renewed; and
(ii) may not renew or extend the resident's lease upon expiration of
the lease term and shall take such action as is necessary to terminate the
tenancy of the household, unless the agency enters into an agreement,
before the expiration of the lease term, with the resident providing for the
resident to cure any noncompliance with the requirement under paragraph
(1), by participating in an economic self-sufficiency program for or
contributing to community service as many additional hours as the
resident needs to comply in the aggregate with such requirement over the
12-month term of the lease.
(4) INELIGIBILITY FOR OCCUPANCY FOR NONCOMPLIANCE.— A public housing agency
may not renew or extend any lease, or provide any new lease, for a dwelling unit in
public housing for any household that includes an adult member who was subject to the
requirement under paragraph (1) and failed to comply with the requirement.
(5) INCLUSION IN PLAN.— Each public housing agency shall include in its public
housing agency plan a detailed description of the manner in which the agency intends to
implement and administer this subsection.
(6) GEOGRAPHIC LOCATION.— The requirement under paragraph (1) may include
community service or participation in an economic self-sufficiency program performed at
a location not owned by the public housing agency.
(7) PROHIBITION AGAINST REPLACEMENT OF EMPLOYEES.— In carrying out this
subsection, a public housing agency may not—
(A) substitute community service or participation in an economic selfsufficiency program, as described in paragraph (1), for work performed by a
public housing employee; or
(B) supplant a job at any location at which community work requirements
are fulfilled.
(8) THIRD-PARTY COORDINATING.— A public housing agency may administer the
community service requirement under this subsection directly, through a resident
organization, or through a contractor having experience in administering volunteer-
106
based community service programs within the service area of the public housing agency.
The Secretary may establish qualifications for such organizations and contractors.
(d) TREATMENT OF INCOME CHANGES RESULTING FROM WELFARE PROGRAM
REQUIREMENTS.—
(1) COVERED FAMILY.— For purposes of this subsection, the term "covered family"
means a family that (A) 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 an economic self-sufficiency program, and (B)
resides in a public housing dwelling unit or is provided tenant-based assistance under
section 8.
(2) DECREASES IN INCOME FOR FAILURE TO COMPLY.—
(A) IN GENERAL.— Notwithstanding the provisions of section 3(a) (relating
to family rental contributions) or paragraph (4) or (5) of section 3(b) (relating to
definition of income and adjusted income), 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 an economic self-sufficiency program or imposing a work
activities requirement, 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) NO REDUCTION 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 an economic self-sufficiency program or
imposing a work activities requirement. This paragraph shall apply beginning
upon the date of the enactment of the Quality Housing and Work Responsibility
Act of 1998.
(3) EFFECT OF FRAUD.— Notwithstanding the provisions of section 3(a) (relating to
family rental contributions) or paragraph (4) or (5) of section 3(b) (relating to definition
of income and adjusted income), if the welfare or public assistance benefits of a covered
family are reduced because of an act of fraud by a member of the family under the law or
program, the amount required to be paid by the covered 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). This paragraph shall apply beginning upon the date of the
enactment of the Quality Housing and Work Responsibility Act of 1998.
(4) NOTICE.— Paragraphs (2) and (3) 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
107
economic self-sufficiency program or work activities requirements or fraud, and the level
of such reduction.
(5) OCCUPANCY RIGHTS.— This subsection may not be construed to authorize any
public housing agency to establish any time limit on tenancy in a public housing dwelling
unit or on receipt of tenant-based assistance under section 8.
(6) REVIEW.— Any covered family residing in public housing that is affected by the
operation of this subsection shall have the right to review the determination under this
subsection through the administrative grievance procedure established pursuant to
section 6(k) for the public housing agency.
(7) COOPERATION AGREEMENTS FOR ECONOMIC SELF-SUFFICIENCY ACTIVITIES.—
(A) REQUIREMENT.— A public housing agency providing public housing
dwelling units or tenant-based assistance under section 8 for covered families
shall make its best efforts to 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) and
paragraphs (2), (3), and (4) 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 housing projects and families receiving tenant-based
assistance under section 8, which may include providing for economic selfsufficiency services within such housing, providing for services designed to meet
the unique employment-related needs of residents of such housing and recipients
of such assistance, 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 prohibited by, or in contravention of, any other
provision of Federal, State, or local law.
(e) LEASE PROVISIONS.— A public housing agency shall incorporate into leases under
section 6(l) and into agreements for the provision of tenant-based assistance under section 8,
provisions incorporating the conditions under subsection (d).
(f) TREATMENT OF INCOME.— Notwithstanding any other provision of this section, in
determining the income of a family who resides in public housing or receives tenant-based
assistance under section 8, a public housing agency shall consider any decrease in the income of
a family that results from the reduction of any welfare or public assistance benefits received by
the family under any Federal, State, or local law regarding a program for such assistance if the
family (or a member thereof, as applicable) has complied with the conditions for receiving such
assistance and is unable to obtain employment notwithstanding such compliance.
(g) DEFINITION.— For purposes of this section, the term "economic 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,
108
education, workfare, financial or household management, apprenticeship, or other activities as
the Secretary may provide.
204
ENERGY CONSERVATION
SEC. 13. [42 U.S.C. 1437k] The Secretary shall, to the maximum extent practicable,
require that newly constructed and substantially rehabilitated projects assisted under this Act with
authority provided on or after October 1, 1979, shall be equipped with heating and cooling
systems selected on the basis of criteria which include a life-cycle cost analysis of such systems.
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 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 directors
or 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.
204
Section 515 of the QHWRA amended section 13 to read as shown.
109
(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
assisted by the public housing agency; and
(B) shall not result in any decrease in any amount provided to the public
housing agency under this title, except as otherwise provided under the formulas
established under section 9(d)(2) and 9(e)(2).
(3) AUDITS.— The Comptroller General of the United States, the Secretary, or 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.
205
PUBLIC HOUSING MODERNIZATION
SEC. 14. [42 U.S.C. 1437l] (a) It is the purpose of this section to provide assistance—
(1) to improve the physical condition of existing public housing projects; and
(2) to upgrade the management and operation of such projects;
in order to assure that such projects continue to be available to serve low-income families.206
(b)(1) The Secretary may make available and contract to make available financial
assistance (in such amounts as are authorized pursuant to section 5(c) and as may be approved in
appropriations Acts) to public housing agencies for the purpose of improving the physical
205
Section 522(a) of the QHWRA repealed section 14. However, Section 522(c)(1) of the QHWRA states: "In general.— Section 14 of the United
States Housing Act of 1937 shall apply as provided in section 519(e) of this Act." Section 519(e) of the QHWRA states: "(e) Transitional
Provision of Assistance.— (1) In general.— Subject to paragraph (2), before the implementation of formulas pursuant to sections 9(d)(2) and
9(e)(2) of the United States Housing Act of 1937 (as amended by subsection (a) of this section), 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 immediately
before the enactment of this Act (except that such sections shall be subject to any amendments to such sections that may be contained in title II of
this Act).
(2) Qualifications.— Before the implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) of the United States Housing Act
of 1937 (as amended by subsection (a) of this section)—
(A) if a public housing agency establishes a rental amount that is based on a ceiling rent established pursuant to subsection (d)(1) of
this section, the Secretary shall take into account any reduction of 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;
(B) if a public housing agency establishes a rental amount that is based on an adjustment to income under section 3(b)(5)(G) of the
United States Housing Act of 1937 (as in effect immediately before the enactment of this Act), the Secretary shall not take into account any
reduction of or any 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; and
(C) if a public housing agency establishes a rental amount other than as provided under subparagraph (A) or (B) that is less than the
greatest of the amounts determined under subparagraphs (A), (B), and (C) of section 3(a)(1) of the United States Housing Act of 1937, the
Secretary shall not take into account any reduction of 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." Section 519(g) of the QHWRA made section 519(e) effective upon the enactment of the QHWRA (October
21, 1998).
206
The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1992, Pub. L. 102139, 105 Stat. 759, provides as follows:
"Section 14(a) of the Housing Act of 1937, as amended (42 U.S.C. 1437l(a)) is amended by—
"(1) striking `and' at the end of clause (1); and
"(2) adding clauses (3), (4), and (5) as follows:
`(3) to assess the risks of lead-based paint poisoning through the use of professional risk assessments that include dust and soil sampling and
laboratory analysis in all projects constructed before 1980 that are, or will be, occupied by families;
`(4) to take effective interim measures to reduce and contain the risks of lead-based paint poisoning recommended in such professional risk
assessments; and
`(5) the costs of testing, interim containment, professional risk assesments and abatement of lead are eligible modernization expenses. The costs of
professional risk assessment are eligible modernization expenses whether or not they are incurred in connection with insurance and costs for such
assessments that were incurred or disbursed in fiscal year 1991 from other accounts shall be paid or reimbursed from modernization funds in fiscal
year 1992.'.".
The amendments could not be executed and were probably intended to be made to the United States Housing Act of 1937.
110
condition of existing low-rent public housing projects and for upgrading the management and
operation of such projects to the extent necessary to maintain such physical improvements.
(2) The Secretary may make contributions (in the form of grants) to public housing
agencies under this section. The contract under which the contributions shall be made shall specify
that the terms and conditions of the contract shall remain in effect for a 20-year period for any
project receiving the benefit of a grant under the contract.
(c) Assistance under subsection (b) may be made available only for buildings of low-rent
housing projects—
(1) which projects are owned by public housing agencies;
(2) which projects are operated as rental housing projects and assisted under
section 5 or section 9 of this Act;
(3) which projects are not assisted under section 8 of this Act;
(4) which buildings are not assisted under section 5(j)(2); and
(5) which projects meet such other requirements consistent with the purposes of
this section as the Secretary may prescribe.
(d) Except as provided in subsection (f)(4), no assistance may be made available under
subsection (b) to a public housing agency that owns or operates less than 250 public housing
dwelling units unless the Secretary has approved an application from the public housing agency
which has been developed in consultation with appropriate local officials and with tenants of the
housing projects for which assistance is requested. Such application shall contain at least—
(1) a comprehensive assessment of (A) the current physical condition of each
project for which assistance is requested, and (B) the physical improvements necessary for
each such project to meet the standards established by the Secretary pursuant to
subsection (j);
(2) a comprehensive assessment of the improvements needed to upgrade the
management and operation of each such project so that decent, safe, and sanitary living
conditions will be provided in such projects; such assessment shall include at least an
identification of needs related to—
(A) the management, financial, and accounting control systems of the
public housing agency which are related to each project eligible for assistance
under this section;
(B) the adequacy and qualifications of personnel employed by such public
housing agency (in the management and operation of such projects) for each
category of employment; and
(C) the adequacy and efficacy of—
(i) tenant programs and services in such projects;
(ii) the security of each such project and its tenants;
(iii) policies and procedures of the public housing agency for the
selection and eviction of tenants in such projects; and
(iv) other policies and procedures of such agency relating to such
projects, as specified by the Secretary; and
(3) a plan for making the improvements and for meeting the needs, described in
paragraphs (1) and (2); such plan shall include at least—
(A) a schedule of those actions which are to be completed, over a period of
not greater than 5 years from the date of approval of such application by the
111
Secretary, within each 12-month period covered by such plan and which are
necessary—
(i) to make the improvements, described in paragraph (1)(B), for
each project for which assistance is requested, and
(ii) to upgrade the management and operation of such projects as
described in paragraph (3); and
(B) the estimated cost of each of the actions described in subparagraph
(A).
(e)(1) No financial assistance may be made available under this section to a public housing
agency that owns or operates 250 or more public housing dwelling units unless the Secretary
approves (or has approved before the effective date of this subsection207) a 5-year comprehensive
plan submitted by the public housing agency, except that the Secretary may provide such
assistance if it is necessary to correct conditions that constitute an immediate threat to the health
or safety of tenants. The comprehensive plan shall contain—
(A) a comprehensive assessment of—
(i) the current physical condition of each public housing project owned or
operated by the public housing agency;
(ii) the physical improvements necessary for each such project to permit the
project—
(I) to be rehabilitated to a level at least equal to the modernization
standards specified in the Modernization Handbook of the Department of
Housing and Urban Development in effect on the date of the enactment of
the Housing and Community Development Act of 1987,1 as well as the
modernization standards established by the Secretary and in effect at the
time of the preparation of the comprehensive plan; and
(II) to comply with life-cycle cost-effective energy conservation
performance standards established by the Secretary to reduce operating
costs over the estimated life of the building; and
(iii) the replacement needs of equipment systems and structural elements
that will be required to be met (as-suming routine and timely maintenance is
performed) during the 5-year period covered by the comprehensive plan;
(B) a comprehensive assessment of the improvements needed to upgrade the
management and operation of the public housing agency and of each such project so that
decent, safe, and sanitary living conditions will be provided such projects, which
assessment shall include at least an identification of needs related to—
(i) the management, financial, and accounting control systems of the public
housing agency that are related to such projects;
(ii) the adequacy and qualifications of personnel appropriate to be
employed by the public housing agency (in the management and operation of such
projects) for each significant category of employment; and
(iii) the improvement of the efficacy of—
(I) tenant programs and services in such projects;
(II) the security of each such project and its tenants;
207
February 5, 1988.
112
(III) policies and procedures of the public housing agency for the
selection and eviction of tenants in such projects; and
(IV) other policies and procedures of the public housing agency
relating to such projects, as specified by the Secretary;
(C) an analysis, made on a project-by-project basis in accordance with standards
and criteria prescribed by the Secretary, demonstrating that completion of the
improvements and replacements identified under subparagraphs (A) and (B) will
reasonably ensure the long-term physical and social viability of each such project at a
reasonable cost;
(D) an action plan for making the improvements and replacements identified under
subparagraphs (A) and (B) that are determined under the analysis described in
subparagraph (C) to reasonably ensure long-term viability of each such project at a
reasonable cost, which action plan shall include at least a schedule, in order of priority
established by the public housing agency, of the actions that are to be completed over a
period of 5 years from the date of approval of the comprehensive plan by the Secretary (or
any longer period reasonably needed to make the improvements and replacements,
considering the scope of the improvements and replacements and the amount of funding
provided) and that are necessary—
(i) to make the improvements and replacements identified under
subparagraph (A) for each project expected to receive capital improvements or
replacements (with priority to improvements and replacements required to correct
any life threatening condition); and
(ii) to upgrade the management and operation of the public housing agency
and its public housing projects as described in subparagraph (B);
(E) a statement, to be signed by the chief local government official, certifying
that—
(i) the comprehensive plan was developed by the public housing agency in
consultation with appropriate local government officials and with tenants of the
housing projects eligible for assistance under this section, which shall include at
least one public hearing that shall be held prior to the initial adoption of any plan
by the public housing agency for use of such assistance, and afford tenants and
interested parties an opportunity to summarize their priorities and concerns, to
ensure their due consideration in the planning process of the public housing
agency; and
(ii) the comprehensive plan is consistent with the assessment of the
community of its low-income housing needs and that the unit of general local
government will cooperate in the provision of tenant programs and services (as
defined in section 3(c)(2));
(F) a statement, to be signed by the chief public housing official, certifying that the
public housing agency will carry out the comprehensive plan in conformity with title VI of
the Civil Rights Act of 1964, title VIII of the Act of April 11, 1968 (commonly known as
the Civil Rights Act of 1968), and section 504 of the Rehabilitation Act of 1973;
(G) a preliminary estimate of the total cost of the items identified in subparagraphs
(A) and (B), including a preliminary estimate of the funds that will be required during each
113
year covered by the comprehensive plan to accomplish the work pursuant to the action
plan; and
(H) such other information as the Secretary may require.
(2)(A) The Secretary shall approve a comprehensive plan unless—
(i) the comprehensive plan is incomplete in significant matters;
(ii) on the basis of available significant facts and data pertaining to the physical and
operational condition of the public housing projects of the public housing agency or the
management and operations of the public housing agency, the Secretary determines that
the identification by the public housing agency of needs is plainly inconsistent with such
facts and data;
(iii) on the basis of the comprehensive plan, the Secretary determines that the
action plan described in paragraph (1)(D) is plainly inappropriate to meeting the needs
identified in the comprehensive plan, or that the public housing agency has failed to
demonstrate that completion of improvements and replacements identified under
subparagraphs (A) and (B) of paragraph (1) will reasonably ensure long-term viability of
one or more public housing projects to which they relate at a reasonable cost; or
(iv) there is evidence available to the Secretary that tends to challenge in a
substantial manner any certification contained in the comprehensive plan.
(B) The comprehensive plan shall be considered to be approved, unless the Secretary
notifies the public housing agency in writing within 75 calendar days of submission that the
Secretary has disapproved the comprehensive plan as submitted, indicating the rea-sons for
disapproval and modifications required to make the comprehensive plan approvable.
(3)(A) Each public housing agency that owns or operates 250 or more public housing
dwelling units shall, after being advised by the Secretary of the estimated assistance it will receive
under this section in any fiscal year, submit to the Secretary, at a date determined by the
Secretary, an annual statement of the activities and expenditures projected to be undertaken, in
whole or in part, by such assistance during the 12-month period immediately following the
execution of the contract for such assistance. As long as the activities and expenditures are
consistent with the approved plan, the public housing agency shall have total discretion in
expending assistance for any activity or work set forth in the plan. The annual statement shall
include a certification by the public housing agency that the proposed activities and expenditures
are consistent with the approved comprehensive plan of the public housing agency. The annual
statement also shall include a certification that the public housing agency has provided the tenants
of the public housing affected by the planned activities the opportunity to review the annual
statement and comment on it, and that such comments have been taken into account in
formulating the annual statement as submitted to the Secretary.
(B) A public housing agency may propose an amendment to its comprehensive plan under
paragraph (1) in any annual statement. Any such proposed amendment shall be reviewed in
accordance with paragraph (2), and shall include a certification that (i) the proposed amendment
has been made publicly available for comment prior to its submission; (ii) affected tenants have
been given sufficient time to review and comment on it; and (iii) such comments have been taken
into consideration in the preparation and submission of the amendment. A public housing agency
shall have a right to amend its comprehensive plan and related statements to extend the time for
performance whenever the Secretary has not provided the amount of assistance set forth in the
plan or has not provided the assistance in a timely manner.
114
(C) The Secretary shall approve the annual statement and any amendment to it or the
comprehensive plan unless the Secretary determines that the statement or amendment is plainly
inconsistent with the activities specified in the comprehensive plan. The statement or amendment
shall be considered to be approved, unless the Secretary notifies the public housing agency in
writing before the expiration of the 75-day period following its submission that the Secretary has
disapproved it as submitted, indicating the reasons for disapproval and the modifications required
to make it approvable.
(4)(A) Each public housing agency that owns or operates 250 or more public housing
dwelling units shall submit to the Secretary, on a date determined by the Secretary, a performance
and evaluation report concerning the use of funds made available under this section. The report of
the public housing agency shall include an assessment by the public housing agency of the
relationship of such use of funds made available under this section, as well as the use of other
funds, to the needs identified in the comprehensive plan of the public housing agency and to the
purposes of this sec-tion. The public housing agency shall certify that the report has been made
available for review and comment by affected tenants prior to its submission to the Secretary.
(B) The Secretary shall, at least on an annual basis, make such reviews as may be
necessary or appropriate to determine whether each public housing agency receiving assistance
under this section—
(i) has carried out its activities under this section in a timely manner and in
accordance with its comprehensive plan;
(ii) has a continuing capacity to carry out its comprehensive plan in a timely
manner;
(iii) has satisfied, or has made reasonable progress towards satisfying, such
performance standards as shall be prescribed by the Secretary, and has made reasonable
progress in carrying out modernization projects approved under this section.
(C) Each public housing agency that owns or operates 250 or more public housing
dwelling units and receives assistance under this section shall have an audit made in accordance
with chapter 75 of title 31, United States Code. The Secretary, the Inspector General of the
Department of Housing and Urban Development, and the Comptroller General of the United
States shall have access to all books, documents, papers, or other records that are pertinent to the
activities carried out under this section in order to make audit examinations, excerpts, and
transcripts.
(D) The comprehensive plan, any amendments to the comprehensive plan, and the annual
statement shall, once approved by the Secretary, be binding upon the Secretary and the public
housing agency. The Secretary may order corrective action only if the public housing agency does
not comply with subparagraph (A) or (B) or if an audit under subparagraph (C) reveals findings
that the Secretary reasonably believes require such corrective action. The Secretary may withhold
funds under this section only if the public housing agency fails to take such corrective action after
notice and a reasonable opportunity to do so. In administering this section, the Secretary shall, to
the greatest extent possible, respect the professional judgment of the administrators of the public
housing agency.
(f)(1) The amount of financial assistance made available under subsection (b) to any public
housing agency that owns or operates less than 250 public housing dwelling units with respect to
any year may not exceed the sum of—
115
(A) an amount determined by the Secretary to be necessary to undertake the
actions specified for such year in the schedule submitted pursuant to subsection (d)(3)(A);
(B) the amount determined necessary by the Secretary to reimburse the public
housing agency for the cost of developing the plan described pursuant to subsection
(d)(3), less any amount which has been provided such public housing agency with respect
to such year under paragraph (4); and
(C) in the case of a public housing agency which meets such criteria of financial
distress as are established by the Secretary and which has submitted the information
described in paragraphs (1) and (2) of subsection (d), the amount determined necessary by
the Secretary to enable such agency to develop the plan described pursuant to subsection
(d)(3);
except that not more than 5 per centum of the total amount utilized for contributions contracts
under subsection (b) in any year shall be made available for the purposes described in paragraphs
(3) and (4).
(2) A public housing agency that owns or operates 250 or more public housing dwelling
units may use financial assistance received under subsection (b) only—
(A) to undertake activities described in its approved comprehensive plan under
subsection (e)(1) or its annual statement under subsection (e)(3);
(B) to correct conditions that constitute an immediate threat to the health or safety
of tenants, whether or not the need for such correction is indicated in its comprehensive
plan or annual statement; and
(C) to prepare a comprehensive plan under subsection (e)(1), including reasonable
costs that may be necessary to assist tenants in participating in the planning process in a
meaningful way, an annual statement under subsection (e)(3), an annual performance and
evaluation report under subsection (e)(4)(A), and an audit under subsection (e)(4)(C).
(g) No assistance shall be made available to a public housing agency pursuant to
subsection (b) for any year subsequent to the first year for which such assistance is made available
to such agency unless the Secretary has determined that such agency has made substantial efforts
to meet the objectives for the preceding year under the plan described in subsection (d)(3) or (e)
and approved by the Secretary.
(h) In making assistance available under subsection (b) to a public housing agency that
owns or operates fewer than 250 public housing dwelling units, the Secretary shall give preference
to public housing agencies—
(1) which request assistance for projects (A) having conditions which threaten the
health or safety of the tenants, or (B) having a significant number of vacant, substandard
units; and
(2) which have demonstrated a capability of carrying out the activities proposed in
the plan submitted by the agency pursuant to subsection (d)(3) and approved by the
Secretary.
(i)(1) In addition to assistance made available under subsection (b) to a public housing
agency that owns or operates fewer than 250 public housing dwelling units, the Secretary may,
without regard to the requirements of subsection (c), (d), (f), (g), or (h), make available and
contract to make available financial assistance (in such amounts as are authorized pursuant to
section 5(c) and as approved in appropriation Acts) to any public housing agency in an amount
which the Secretary determines is necessary to meet emergency or special purpose needs,
116
especially emergency and special purpose needs which relate to fire safety standards. Such needs
shall be limited to—
(A) correcting conditions which threaten the health or safety of the tenants of any
project (i) which is described in subsection (c), and (ii) with respect to which an
application for as-sistance pursuant to subsection (d) has not been approved by the
Secretary;
(B) correcting conditions (i) which threaten the health or safety of the tenants of
any project with respect to which an application for assistance pursuant to subsection (d)
has been approved, and (ii) which were unanticipated at the time of the development of
such application;
(C) correcting conditions which threaten the health or safety of the occupants of
any low-income housing project not described in subsection (c) and not assisted pursuant
to section 8;
(D)(i) physical improvements needs which (I) would not otherwise be eligible for
assistance under this section, and (II) pertain to any low-income housing project other
than a project assisted under section 8; and
(ii) physical improvement needs eligible under this subparagraph shall include
replacing or repairing major equipment systems or structural elements, upgrading security,
increasing accessibility for elderly and disabled families (as such terms are defined in
section 3(b)(3)), reducing the number of vacant substandard units, and increasing the
energy efficiency of the units, except that the Secretary may make financial assistance
available under this clause only if the Secretary determines that the physical improvements
are necessary and sufficient to extend substantially the useful life of the project; or
(E) management improvement needs which (i) would not otherwise be eligible for
assistance under this section, and (ii) pertain to any low-income housing project other than
a project assisted under section 8.
(2) The Secretary may issue such rules and regulations as may be necessary to carry out
this subsection.
(j)(1) The Secretary may issue such rules and regulations as may be necessary to carry out
the provisions and purposes of this section.
(2) The Secretary shall issue rules and regulations establishing standards which provide for
decent, safe, and sanitary living conditions in low-rent public housing projects and for energy
conserving improvements in such projects and which, to the extent practicable, are consistent with
the Minimum Property Standards for Multi-Family Housing as they reasonably would be applied
to existing housing, except that the Secretary may establish higher standards on a project-byproject basis in such cases where the Secretary deems such higher standards appropriate for
furthering the purposes of this section.
(k)(1) From amounts approved in appropriation Acts for grants under this section for
fiscal year 1992 and each fiscal year thereafter, and to the extent provided by such Acts, the
Secretary shall reserve not more than $75,000,000 (including unused amounts reserved during
previous fiscal years), which shall be available for modernization needs resulting from natural and
other disasters and from emergencies. Amounts provided for emergencies shall be repaid by public
housing agencies from future allocations of assistance under paragraph (2), where available.
(2)(A) After determining the amounts to be reserved under paragraphs (1) and (5)(D)(iv),
the Secretary shall allocate the amount remaining pursuant to a formula contained in a regulation
117
prescribed by the Secretary, which shall be designed to measure the relative needs of public
housing agencies. The formula shall take into account amounts previously made available by the
Secretary for modernization under this section and for major reconstruction of obsolete projects,
to the extent determined appropriate by the Secretary.208
(B) The Secretary shall allocate half of the amount allocated under this paragraph based
on the relative backlog needs of public housing agencies, determined—
(i) for individual public housing agencies with 250 or more units and for the
aggregate of agencies with fewer than 250 units, where the data are statistically reliable,
on the basis of the most recently available, statistically reliable data regarding the (I)
backlog of needed repairs and replacements of existing physical systems in public housing
projects, (II) items that must be added to projects to meet the modernization standards of
the Secretary (referred to in subsection (e)(1)(A)(ii)(I)) and State and local codes, and
(III) items that are necessary or highly desirable for the long-term viability of a project; or
(ii) for individual public housing agencies with 250 or more units, where such data
are not statistically reliable, on the basis of estimates of the categories of backlog specified
in clause (i) using the most recently available data on the backlog, and objectively
measurable data on public housing agency, community, and project characteristics
regarding—
(I) the average number of bedrooms in the units in a project;
(II) the proportion of units in a project available for occupancy by very
large families;
(III) the extent to which units for families are in high-rise elevator projects;
(IV) the age of the projects;
(V) in the case of a large agency, as determined by the Secretary, the
number of units with 2 or more bedrooms;
(VI) the cost of rehabilitating property in the area;
(VII) for family projects, the extent of population decline in the unit of
general local government determined on the basis of the 1970 and 1980 censuses;
and
(VIII) any other factors the Secretary determines are appropriate.
The Secretary may not establish or amend any criteria regarding the backlog needs of
public housing agencies under this subparagraph, except by rule as provided under section
553 of title 5, United States Code.
208
Section 509(h) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, approved November 28, 1990, provides in part as
follows:
"(h) Regulations.—
"(1) In general.— * * *
"(2) Allocation formula.— The Secretary of Housing and Urban Development shall establish the allocation formula under section 14(k)(2)(A) of the
United States Housing Act of 1937, as amended by subsection (a) of this section, by rule under section 553 of title 5, United States Code. In publishing
a proposed rule regarding the formula pursuant to such section 553, the Secretary shall describe—
"(A) the analytic basis for the formula;
"(B) the weight assigned to the various criteria contained in the formula pursuant to such section 14(k)(2);
"(C) deductions from the formula share for amounts received for modernization activities under section 14 and major reconstruction of obsolete
projects; and
"(D) any other information the Secretary determines is appropriate.
"(3) Alternative formulas.— When publishing the proposed rule required under paragraph (2), the Secretary of Housing and Urban Development
may, at the discretion of the Secretary, publish alternative formulas, identifying the weights assigned to the various criteria under the formulas, and
explaining the differences in operation and objectives of the alternative formulas."
118
(C) The Secretary shall allocate the other half of the amount allocated under this
paragraph based on the relative accrued needs of public housing agencies for the categories of
need specified in subparagraphs (B)(i) (I) and (II), determined—
(i) for individual public housing agencies with 250 or more units and for the
aggregate of agencies with fewer than 250 units, where the data are statistically reliable,
on the basis of the needs that are estimated to have accrued since the date of the last
objective measurement of backlog needs under subparagraph (B); or
(ii) for individual public housing agencies with 250 or more units, where the
estimates under clause (i) are not statistically reliable, on the basis of estimates of accrued
need using the most recently available data on the backlog, and objectively measurable
data on public housing agency, community, and project characteristics regarding—
(I) the average number of bedrooms of the units in a project;
(II) the proportion of units in a project available for occupancy by very
large families;
(III) the age of the projects;
(IV) the extent to which the buildings in projects of an agency average
fewer than 5 units;
(V) the cost of rehabilitating property in the area;
(VI) the total number of units of each agency that owns or operates 250 or
more units; and
(VII) any other factors the Secretary determines are appropriate.
The Secretary may not establish or amend any criteria regarding the accrual needs of
public housing agencies under this subparagraph, except by rule as provided under section
553 of title 5, United States Code.
(D)(i) In determining how many units an agency owns or operates and the relative
modernization needs of agencies, the Secretary shall, except as otherwise agreed by the Secretary
and the agency, count each existing unit under the annual contributions contract, except that an
existing unit under the turnkey III and the mutual help programs may be counted as less than one
unit, to take into account the responsibility of families for the costs of certain maintenance and
repair. For purposes of this section, an agency that qualifies to receive a formula grant under
paragraph (4) may elect to continue to qualify to receive a formula grant if it owns or operates at
least 200 public housing units.
(ii) Where an existing unit under a contract is demolished or disposed of, the Secretary
shall not adjust the amount the agency receives under the formula unless more than one percent of
the units are affected on a cumulative basis. Where more than one percent of the units are
demolished or disposed of, the Secretary shall reduce the formula amount for the agency over a 3year period to reflect removal of the units from the contract.
(iii) The Secretary shall determine whether the data under subparagraphs (B) and (C) are
statistically reliable.
(3) The amount determined under the formula for agencies with fewer than 250 units shall
be allocated in accordance with subsection (d).
(4) The amount determined under the formula for each agency that owns or operates 250
or more units shall be allocated to each qualifying agency in accordance with subsection (e).
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(5)(A) With respect to any agency that is designated as a troubled agency with respect to
the program under this section upon the initial209 designation of such troubled agencies under
section 6(j)(2)(A)(i), the Secretary shall limit the total amount of funding under this section for
the agency for fiscal year 1992 and any fiscal year thereafter, if the agency remains designated as a
troubled agency, to the sum of—
(i) the average of the amount that the troubled agency received for modernization
activities under this section and for major reconstruction of obsolete projects for each of
fiscal years 1989, 1990, and 19911, which average shall be adjusted to take into account
changes in the cost of rehabilitating property; plus
(ii) 25 percent of the difference between the amount determined under clause (i)
and the amount that would be allocated to the agency in such fiscal year if the agency
were not designated as a troubled agency.1
(B) In any fiscal year the Secretary may, pursuant to the request of a troubled agency,
increase the amount allocated to the agency under subparagraph (A) to an amount not exceeding
the amount that would be allocated to the agency in such fiscal year if the agency were not a
troubled agency. An increase under this subparagraph shall be based on the agency's progress
toward meeting the performance indicators under section 6(j)(1). The Secretary shall render a
decision in writing on each such request not later than 75 days after receipt of the request and any
necessary supporting documentation.
(C) For any fiscal year, any amounts that would have been allocated to an agency under
the formula under paragraph (2) that are not allocated to the agency because the agency receives
the amount provided under subparagraph (A) of this paragraph, shall be allocated in such year
pursuant to the formula to other agencies with 500 or more units.210
(D) The Secretary shall carry out a credit system under this subparagraph to provide
agencies that receive allocations under subparagraph (A) with additional assistance under this
section after the agency is determined not to be a troubled agency, to compensate for amounts not
received because of the troubled agency designation. The credit system shall be subject to the
following requirements:
(i) Any agency that receives assistance pursuant to subparagraph (A) for any fiscal
year shall receive credits for the difference between the amount that the agency would
have been allocated in such year if it were not designated a troubled agency and the
amount allocated for the agency for such year under subparagraph (A).
(ii) An agency may not receive credits under this subparagraph for more than 3
consecutive fiscal years.
209
The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1992, Pub. L. 102-139, 105 Stat. 757,
provides as follows:
"Section 14(k)(5)(A) of the Housing Act of 1937, as amended, is hereby amended as follows:
"(1) by striking in the first sentence thereof the word `initial';
"(2) in subsection (i) thereof by substituting the phrase `for each of the preceding three fiscal years' for the phrase `for each of fiscal
years of 1989, 1990 and 1991'; and
"(3) by adding a new subsection (iii) as follows:
`(iii) In determining whether an agency is "troubled with respect to the modernization program", the Department shall consider only the agency's
ability to carry out that program effectively based upon the agency's capacity to accomplish the physical work: (a) with decent quality; (b) in a timely
manner; (c) under competent contract administration; and (d) with adequate budget controls. No other criteria shall be applied in the determination.'.".
The amendments could not be executed and were probably intended to be made to the United States Housing Act of 1937.
210
Section 509(e)(1)(F) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, provides that subparagraph (B) of this
paragraph is amended, effective October 1, 1992, by striking "500" and inserting "250". The amendment could not be executed and was probably
intended to be made to this subparagraph.
120
(iii) After a 3-year period during which an agency has accrued credits, the credits
accrued by the agency shall be—
(I) decreased by 10 percent of the total credits accumulated if the
designation as a troubled agency is not removed before the conclusion of the first
fiscal year after such 3-year period of accrual of credits;
(II) decreased by an additional 20 percent of the original total accumulated
credits if the designation as a troubled agency is not removed before the conclusion
of the second fiscal year after such 3-year accrual period;
(III) decreased by an additional 30 percent of the original total accumulated
credits if the designation as a troubled agency is not removed before the conclusion
of the third fiscal year after such 3-year accrual period; and
(IV) eliminated if the designation as a troubled agency is not removed
before the conclusion of the fourth fiscal year after such 3-year accrual period.
(iv) After a determination by the Secretary that an agency is not a troubled agency,
the Secretary shall provide the agency with amounts made available under this clause in
accordance with the amount of credits accumulated by the agency (subject to the
reductions under clause (iii)). Such amounts shall be provided in addition to the amounts
allocated to the agency pursuant to the formula under paragraph (2). In each fiscal year,
the Secretary shall reserve from amounts available for allocation under paragraph (2)(A)
the amount necessary to provide assistance pursuant to such credits, except that the
reserved amount may not exceed 5 percent of the total amount available for allocation
under such paragraph.
(v) In making payments for accrued credits in accordance with clause (iv), the
Secretary may take into account the abil-ity of the agency to expeditiously expend
amounts received for credits.
(E) The Secretary shall, by regulation, establish special rules for limiting the amount of
assistance provided under this section to agencies that become troubled after the date of the initial
designation of troubled agencies under section 6(j)(2)(A)(i). The rules may provide for a credit
system based on the system established under this paragraph.211
(6) Any amounts (A) allocated under paragraph (4) that become available for reallocation
because an agency does not qualify to receive all or a part of its formula allocation due to failure
to comply with the requirements of this section (other than because of designation as a troubled
agency), and (B) recaptured by the Secretary for good cause, shall (subject to approval in
appropriations Acts) be reallocated by the Secretary in the next fiscal year to other housing
agencies that own or operate 250 or more units, based on their relative needs. The relative needs
of agencies shall be measured by the formula established pursuant to paragraph (2)(A).
(7) A public housing agency may appeal the amount of its allocation determined under the
formula on the basis of unique circumstances or on the basis that the objectively measurable data
regarding the agency, community, and project characteristics used for determining the formula
amount were not correct.
(8) Amounts allocated to a public housing agency under paragraph (3) or (4) may be used
for any eligible activity in accordance with this section, notwithstanding that the allocation amount
211
The Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1992, Pub. L. 102-139, 105 Stat. 757,
provides as follows:
"Section 14(k)(5)(E) of [the Housing Act of 1937, as amended] is repealed.".
The repeal could not be executed and was probably intended to be made to such section of the United States Housing Act of 1937.
121
is determined by allocating half based on relative backlog needs and half based on relative accrued
needs of agencies.
(l) The Secretary shall include in the annual report under section 8 of the Department of
Housing and Urban Development Act—
(1) a description of the allocation, distribution, and use of assistance under this
section on a regional basis and on the basis of public housing agency size; and
(2) a national compilation of the total funds requested in comprehensive plans for
all public housing agencies owning or operating 250 or more public housing dwelling
units.
(m) Subject to subsection (k)(1), the Secretary may issue any regulations that are
necessary to carry out this section.
(n) LIMITATION.— The Secretary shall not make assistance under this section available
with respect to a property transferred under title III.
(o) Any amount that the Secretary has obligated to a public housing agency under this
section other than pursuant to the program established under subsection (e), shall be used for the
purposes for which such amount was provided, or for purposes consistent with an action plan
submitted by the agency under subsection (e) and approved by the Secretary, as the agency
determines to be appropriate.
(p)(1) The Secretary shall require any public housing agency that has a vacancy rate
among dwelling units owned or operated by the agency that exceeds twice the average vacancy
rate among all agencies, that is designated as a troubled agency under section 6(j), or for which a
receiver has been appointed pursuant to section 6(j)(3), to participate in the vacancy reduction
program under this subsection.
(2) Each public housing agency participating in the program under this subsection shall
develop and submit to the Secretary a vacancy reduction plan regarding vacancies in units owned
or operated by the agency. The plan shall include statements (A) identifying vacant dwelling units
administered by the agency and explaining the reasons for the vacancies, (B) describing the
actions to be taken by the agency during the following 5 years to eliminate the vacancies, (C)
identifying any impediments that will prevent elimination of the vacancies within the 5-year
period, (D) identifying any vacant units subject to comprehensive modernization, major
reconstruction, demolition, and disposition activities that have been funded or approved, (E)
identifying any vacant dwelling units that are eligible for comprehensive modernization, major
reconstruction, demolition, or disposition but have not been funded or approved for such
activities and are not likely to be funded or approved for at least 3 years and estimating the
amount of assistance necessary to complete the comprehensive modernization, major
reconstruction, demolition, or disposition of such units, (F) identifying any vacant units not
identified under subparagraphs (E) and (F) and describing any appropriate activities relating to
elimination of the vacancies in such units and estimating the amount of assistance necessary to
carry out the activities, and (G) setting forth an agenda for implementation of management
improvements (including, as appropriate, improvements recommended by the assessment team
pursuant to paragraph (3)(C)) during the first fiscal year beginning after submission of the plan
and including an estimate of the amount of assistance necessary to implement the improvements.
(3)(A) Upon the expiration of the 24-month period beginning upon the receipt of
assistance under paragraph (5) by a public housing agency, the Secretary shall, after reviewing the
progress made in complying with the plan, reserve from the annual contribution attributable to
122
each unit vacant for the 24-month period an amount determined by the Secretary but not
exceeding 80 percent of such contribution. The Secretary may not reserve any amounts under this
subparagraph for any vacant dwelling unit that is vacant because of modernization,
reconstruction, or lead-based paint reduction activities.
(B) The Secretary shall deposit any amounts reserved under subparagraph (A) in a
separate account established on behalf of the public housing agency, and such amounts shall be
available to the agency only for the purpose of carrying out activities in compliance with the
vacancy reduction plan of the agency.
(C) If, after the expiration of the 24-month period beginning upon the reservation under
subparagraph (A) of amounts for a public housing agency, the Secretary determines that the
agency has not made significant progress to comply with the provisions of the vacancy reduction
plan of the agency, the amount remaining in the account for the agency established under
subparagraph (B) shall be recaptured by the Secretary.
(4)(A) In cooperation with each agency participating in the program under this subsection,
the Secretary shall provide for onsite assessment of the vacancy situation of the agency by a team
of knowledgeable observers. The assessment team shall include representatives of the Department
of Housing and Urban Development, an equal number of independent experts knowledgeable with
respect to vacancy problems and management issues relating to public housing, and officials of the
public housing agency, all of whom shall be selected by the Secretary. The assessment team shall
assess the vacancy situation of the agency to determine the causes of the vacancies, including any
management deficiencies or modernization activities.
(B) The assessment team shall also examine indicators of the management performance of
the agency relating to vacancy, which shall include consideration of the performance of the agency
as measured by the indicators under subparagraphs (A) and (E) of section 6(j)(1).
(C) The assessment team shall submit to the agency and the Secretary written
recommendations for management improvements to eliminate or alleviate management
deficiencies, and may assist the agency in preparing the vacancy reduction plan under paragraph
(2), including determining appropriate actions to eliminate vacancies.
(D) The Secretary may use amounts made available under paragraph (6) for any travel and
administrative expenses of assessment teams under this paragraph.
(5) The Secretary shall, subject to the availability of amounts under paragraph (6), provide
assistance under this subsection to public housing agencies submitting vacancy reduction plans for
reasonable costs of—
(A) implementing management improvements;
(B) rehabilitating vacant dwelling units identified in the statement under paragraph
(2), except that the Secretary may provide assistance to a public housing agency
designated as a troubled agency for the purposes under this subparagraph only if the
Secretary determines that the agency is making substantial progress in remedying
management deficiencies, if any, or that the agency has provided reasonable assurances
that such progress will be made; and
(C) carrying out vacancy reduction activities described in the statement under
paragraph (2)212
212
Section 115(c)(2) of the Housing and Community Development Act of 1992, Pub. L. 102-550, provides that this subparagraph is amended "by
inserting before the semicolon the following: `, except that the Secretary may provide assistance to a public housing agency designated as a troubled
agency for the purposes under this subparagraph only if the Secretary determines that the agency is making substantial progress in remedying
management deficiencies, if any, or that the agency has provided reasonable assurances that such progress will be made'.".
123
(6)(A) Of any amounts available under this section in each of fiscal years 1993 and 1994
(after amounts are reserved pursuant to subsection (k)(1)), an amount equal to 4 percent of such
remain-ing funds shall be available in each such fiscal year for the purposes under subparagraph
(B).
(B) Of such amounts available under subparagraph (A) in each such fiscal year—
(i) 20 percent shall be available only for carrying out activities under section 6(j);
and
(ii) 80 percent shall be available for carrying out this subsection.
213
(q) (1) In addition to the purposes enumerated in subsections (a) and (b), a public
housing agency may use modernization assistance provided under section 14, and development
assistance provided under section 5(a) that was not allocated, as determined by the Secretary, for
priority replacement housing, for any eligible activity authorized by this section, by section 5, or
by applicable Appropriations Acts for a public housing agency, including the demolition,
rehabilitation, revitalization, and replacement of existing units and projects and, for up to 10
percent of its allocation of such funds in any fiscal year, for any operating subsidy purpose
authorized in section 9. 214Such assistance may involve the drawdown of funds on a schedule
commensurate with construction draws for deposit into an interest earning escrow account to
serve as collateral or credit enhancement for bonds issued by a public agency for the
construction or rehabilitation of the development. Except for assistance used for operating
subsidy purposes under the preceding sentence, assistance provided to a public housing agency
under this section shall principally be used for the physical improvement, replacement of public
housing, other capital purposes, and for associated management improvements, and such other
extraordinary purposes as may be approved by the Secretary. Low-income and very low-income
units assisted under this paragraph shall be eligible for operating subsidies, unless the Secretary
determines that such units or projects do not meet other requirements of this Act.
(2) A public housing agency may provide assistance to developments that include units,
other than units assisted under this Act (except for units assisted under section 8 hereof) ("mixed
income developments"), in the form of a grant, loan, operating assistance, or other form of
investment which may be made to—
(A) a partnership, a limited liability company, or other legal entity in which the
public housing agency or its affiliate is a general partner, managing member, or otherwise
participates in the activities of such entity; or
(B) any entity which grants to the public housing agency the option to purchase
the development within 20 years after initial occupancy in accordance with section 42(i)(7)
of the Internal Revenue Code of 1986, as amended.
Units shall be made available in such developments for periods of not less than 20
years, by master contract or by individual lease, for occupancy by low-income and very
The amendment could not be executed and the material to be inserted by the amendment was probably intended to be inserted before the period at the
end of this subparagraph.
213
Section 1001(a) of Public Law 104-19, approved July 27, 1995, added this subsection.
Section 201(a)(1) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Act, 1996 (as contained in
section 101(e) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. 104-134), approved April 26, 1996, amended this
subsection (as amended by Public Law 104-19) to read as shown. Paragraph (2) of such section 201(a) (as amended by Public Law 104-204) provides
as follows:
"(2) Applicability.— Section 14(q) of the United States Housing Act of 1937, as amended by subsection (a) of this section, shall be effective only with
respect to assistance provided from funds made available for fiscal year 1997 or any preceding fiscal year.".
214
Section 208 of the Appropriations Act, 1999 amended section 14(q)(1) by adding this sentence.
124
low-income families referred from time to time by the public housing agency. The number
of such units shall be:
(i) in the same proportion to the total number of units in such development
that the total financial commitment provided by the public housing agency bears to
the value of the total financial commitment in the development, or
(ii) not be less than the number of units that could have been developed
under the conventional public housing program with the assistance involved, or
(iii) as may otherwise be approved by the Secretary.
(3) A mixed income development may elect to have all units subject only to the applicable
local real estate taxes, notwithstanding that the low-income units assisted by public housing funds
would otherwise be subject to section 6(d) of the Housing Act of 1937.
(4) If an entity that owns or operates a mixed-income project under this subsection 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.
PAYMENT OF NONFEDERAL SHARE
SEC. 15. [42 U.S.C. 1437m] Any of the following may be used as the non-Federal share
required in connection with activities undertaken under Federal grant-in-aid programs which
provide social, educational, employment, and other services to the tenants in a project assisted
under this Act, other than under section 8:
(1) annual contributions under this Act for operation of the project; or
(2) rental or use-value of buildings or facilities paid for, in whole or in part, from
development, modernization, or operation cost financed under this Act.
ELIGIBILITY FOR ASSISTED HOUSING
215
SEC. 16. [42 U.S.C. 1437n] (a) Not more than 25 per centum of the dwelling units
which were available for occupancy under public housing annual contributions contracts and
section 8 housing assistance payments contracts under this Act before the effective date of the
Housing and Community Development Amendments of 1981,216 and which will be leased on or
after such effective date shall be available for leasing by low-income families other than very lowincome families.
215
Section 513(a) of the QHWRA amended section 16 through section 16(d) to read as shown. Section 513(b) made this amendment effective
upon enactment of the QHWRA (October 21, 1998).
216
October 1, 1981.
125
(b)(1) Not more than 15 percent of the dwelling units which become available for
occupancy under public housing contributions contracts and section 8 housing assistance
payments contracts under this Act on or after the effective date of the Housing and Community
Development Amendments of 1981217 shall be available for leasing by low-income families other
than very low-income families.
(2) Not more than 25 percent of the dwelling units in any project of any agency shall be
available for occupancy by low-income families other than very low-income families. The
limitation shall not apply in the case of any project in which, before the date of the enactment of
the Cranston-Gonzalez National Affordable Housing Act,218 such low-income families occupy
more than 25 percent of the dwelling units.
(c) In developing admission procedures implementing subsection (b), the Secretary may
not totally prohibit admission of low-income families other than very low-income families and
shall establish an appropriate specific percentage of low-income families other than very-lowincome families that may be assisted in each assisted housing program that, when aggregated, will
achieve the overall percentage limitation contained in subsection (b). In developing such
admission procedures, the Secretary shall prohibit project owners from selecting families for
residence in an order different from the order on the waiting list for the purpose of selecting
relatively higher income families for residence; except that such prohibition shall not apply with
respect to families selected for occupancy in public housing under the written system of
preferences for selection established by the public housing agency pursuant to section
6(c)(4)(A)219. The Secretary shall issue regulations to carry out this subsection not later than 60
days after the date of the enactment of the Housing and Community Development Act of 1987.220
(d) The limitations established in subsection (b) shall not apply to dwelling units made
available under section 8 housing assistance contracts for the purpose of preventing displacement,
or ameliorating the effects of displacement, including displacement caused by rents exceeding 30
percent of monthly adjusted family income, of low-income families from projects being
rehabilitated with assistance from rehabilitation grants under section 17 and the Secretary shall not
otherwise unduly restrict the use of payments under section 8 housing assistance contracts for this
purpose.
SEC. 16. (a) INCOME ELIGIBILITY FOR PUBLIC HOUSING.—
(1) INCOME MIX WITHIN PROJECTS.— A public housing agency may establish and
utilize income-mix criteria for the selection of residents for dwelling units in public
housing projects, subject to the requirements of this section.
(2) PHA INCOME MIX.—
(A) TARGETING.— Except as provided in paragraph (4), of the public
housing dwelling units of a public housing agency made available for occupancy
in any fiscal year by eligible families, not less than 40 percent shall be occupied
by families whose incomes at the time of commencement of occupancy do not
exceed 30 percent of the area median income, as determined by the Secretary with
adjustments for smaller and larger families.
217
October 1, 1981.
November 28, 1990.
219
Section 402(d)(6)(A)(v) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this sentence by
striking "the system of preferences established by the agency pursuant to section 6(c)(4)(A)(ii)" and inserting "the written system of preferences for
selection established by the public housing agency pursuant to section 6(c)(4)(A)". Section 402(f) of such Act provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
220
The date of enactment was February 5, 1988.
218
126
(3) PROHIBITION OF CONCENTRATION OF LOW-INCOME FAMILIES.—
(A) PROHIBITION.— A public housing agency may not, in complying with
the requirements under paragraph (2), concentrate very low-income families (or
other families with relatively low incomes) in public housing dwelling units in
certain public housing projects or certain buildings within projects. The Secretary
shall review the income and occupancy characteristics of the public housing
projects and the buildings of such projects of such agencies to ensure compliance
with the provisions of this paragraph and paragraph (2).
(B) DECONCENTRATION.—
(i) IN GENERAL.— A public housing agency shall submit with its
annual public housing agency plan under section 5A an admissions policy
designed to provide for deconcentration of poverty and income-mixing by
bringing higher income tenants into lower income projects and lower
income tenants into higher income projects. This clause may not be
construed to impose or require any specific income or racial quotas for
any project or projects.
(ii) INCENTIVES.— In implementing the policy under clause (i), a
public housing agency may offer incentives for eligible families having
higher incomes to occupy dwelling unit in projects predominantly
occupied by eligible families having lower incomes, and provide for
occupancy of eligible families having lower incomes in projects
predominantly occupied by eligible families having higher incomes.
(iii) FAMILY CHOICE.— Incentives referred to in clause (ii) may be
made available by a public housing agency only in a manner that allows
for the eligible family to have the sole discretion in determining whether
to accept the incentive and an agency may not take any adverse action
toward any eligible family for choosing not to accept an incentive and
occupancy of a project described in clause (i)(II), Provided, That the
skipping of a family on a waiting list to reach another family to implement
the policy under clause (i) shall not be considered an adverse action. An
agency implementing an admissions policy under this subparagraph shall
implement the policy in a manner that does not prevent or interfere with
the use of site-based waiting lists authorized under section 6(s).
(4) FUNGIBILITY WITH TENANT-BASED ASSISTANCE.—
(A) AUTHORITY.— Except as provided under subparagraph (D), the number
of public housing dwelling units that a public housing agency shall otherwise
make available in accordance with paragraph (2)(A) to comply with the
percentage requirement under such paragraph for a fiscal year shall be reduced
by the credit number for the agency under subparagraph (B).
(B) CREDIT FOR EXCEEDING TENANT-BASED ASSISTANCE TARGETING
REQUIREMENT.— Subject to subparagraph (C), the credit number under this
subparagraph for a public housing agency for a fiscal year shall be the number
by which—
127
(i) the aggregate number of qualified families who, in such fiscal
year, are initially provided tenant-based assistance under section 8 by the
agency; exceeds
(ii) the number of qualified families that is required for the agency
to comply with the percentage requirement under subsection (b)(1) for
such fiscal year.
(C) LIMITATIONS ON CREDIT NUMBER.— The credit number under
subparagraph (B) for a public housing agency for a fiscal year may not in any
case exceed the lesser of—
(i) the number of dwelling units that is equivalent to 10 percent of
the aggregate number of families initially provided tenant-based
assistance under section 8 by the agency in such fiscal year; or
(ii) the number of public housing dwelling units of the agency
that—
(I) are in projects that are located in census tracts having a
poverty rate of 30 percent or more; and
(II) are made available for occupancy during such fiscal
year and are actually filled only by families whose incomes at the
time of commencement of such occupancy exceed 30 percent of the
area median income, as determined by the Secretary with
adjustments for smaller and larger families.
(D) FUNGIBILITY FLOOR.— Notwithstanding any authority under subparagraph (A),
of the public housing dwelling units of a public housing agency made available for
occupancy in any fiscal year by eligible families, not less than 30 percent shall be
occupied by families whose incomes at the time of commencement of occupancy do not
exceed 30 percent of the area median income, as determined by the Secretary with
adjustments for smaller and larger families.
(E) QUALIFIED FAMILY.— For purposes of this paragraph, the term "qualified
family" means a family having an income described in subsection (b)(1).
(b) INCOME ELIGIBILITY FOR TENANT-BASED SECTION 8 ASSISTANCE.—
(1) IN GENERAL.— Of the families initially provided tenant-based assistance under
section 8 by a public housing agency in any fiscal year, not less than 75 percent shall be
families whose incomes do not exceed 30 percent of the area median income, as
determined by the Secretary with adjustments for smaller and larger families; except that
the Secretary may establish income ceilings higher or lower than 30 percent of the area
median income on the basis of the Secretary's findings that such variations are necessary
because of unusually high or low family incomes.
(2) JURISDICTIONS SERVED BY MULTIPLE PHA'S.— In the case of any 2 or more public
housing agencies that administer tenant-based assistance under section 8 with respect
solely to identical geographical areas, such agencies shall be treated as a single public
housing agency for purposes of paragraph (1).
(c) INCOME ELIGIBILITY FOR PROJECT-BASED SECTION 8 ASSISTANCE.—
(1) PRE-1981 ACT PROJECTS.— Not more than 25 percent of the dwelling units that
were available for occupancy under section 8 housing assistance payments contracts
under this Act before the effective date of the Housing and Community Development
128
Amendments of 1981, and which will be leased on or after such effective date shall be
available for leasing by low-income families other than very low-income families.
(2) POST-1981 ACT PROJECTS.— Not more than 15 percent of the dwelling units
which become available for occupancy under section 8 housing assistance payments
contracts under this Act on or after the effective date of the Housing and Community
Development Amendments of 1981 shall be available for leasing by low-income families
other than very low-income families.
(3) TARGETING.— For each project assisted under a contract for project-based
assistance, of the dwelling units that become available for occupancy in any fiscal year
that are assisted under the contract, not less than 40 percent 221shall be available for
leasing only by families whose incomes at the time of commencement of occupancy do
not exceed 30 percent of the area median income, as determined by the Secretary with
adjustments for smaller and larger families.
(4) PROHIBITION OF SKIPPING.— In developing admission procedures implementing
paragraphs (1), (2), and (3), the Secretary shall prohibit project owners from selecting
families for residence in an order different from the order on the waiting list for the
purpose of selecting relatively higher income families for residence. Nothing in this
paragraph or this subsection may be construed to prevent an owner of housing assisted
under a contract for project-based assistance from establishing a preference for
occupancy in such housing for families containing a member who is employed.
(5) EXCEPTION.— The limitations established in paragraphs (1), (2), and (3) shall
not apply to dwelling units made available under project-based contracts under section 8
for the purpose of preventing displacement, or ameliorating the effects of displacement.
(6) DEFINITION.— For purposes of this subsection, the term "project-based
assistance" means assistance under any of the following programs:
(A) The new construction or substantial rehabilitation program under
section 8(b)(2) (as in effect before October 1, 1983).
(B) The property disposition program under section 8(b) (as in effect
before the effective date under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998).
(C) The loan management set-aside program under subsections (b) and (v)
of section 8.
(D) The project-based certificate program under section 8(d)(2).
(E) The moderate rehabilitation program under section 8(e)(2) (as in
effect before October 1, 1991).
(F) The low-income housing preservation program under Low-Income
Housing Preservation and Resident Homeownership Act of 1990 or the provisions
of the Emergency Low Income Housing Preservation Act of 1987 (as in effect
before November 28, 1990).
(G) Section 8 (as in effect before the effective date under section 503(a) of
the Quality Housing and Work Responsibility Act of 1998), following conversion
from assistance under section 101 of the Housing and Urban Development Act of
1965 or section 236(f)(2) of the National Housing Act.
221
Section 123 of the Omnibus Act, 1999, Division A, amended section 513(a) of the QHWRA..
129
(d) ESTABLISHMENT OF DIFFERENT STANDARDS.— Notwithstanding subsection (a)(2) or
(b)(1), if approved by the Secretary, a public housing agency may for good cause establish and
implement, in accordance with the public housing agency plan, an admission standard other
than the standard under such subsection.
222
(e) INELIGIBILITY OF ILLEGAL DRUG USERS AND ALCOHOL ABUSERS.—
(1) IN GENERAL.— Notwithstanding any other provision of law, a public housing
agency shall establish standards for occu-pancy in public housing dwelling units and
assistance under section 8—
(A) that prohibit occupancy in any public housing dwelling unit by, and
assistance under section 8 for, any person—
(i) who the public housing agency determines is illegally using a
controlled substance; or
(ii) if the public housing agency determines that it has reasonable
cause to believe that such person's illegal use (or pattern of illegal use) of a
controlled substance, or abuse (or pattern of abuse) of alcohol, may
interfere with the health, safety, or right to peaceful enjoyment of the
premises by other residents of the project; and
(B) that allow the public housing agency to terminate the tenancy in any
public housing unit of, and the assistance under section 8 for, any person—
(i) who the public housing agency determines is illegally using a
controlled substance; or
(ii) whose illegal use of a controlled substance, or whose abuse of
alcohol, is determined by the public housing agency to interfere with the
health, safety, or right to peaceful enjoyment of the premises by other
residents of the project.
(2) CONSIDERATION OF REHABILITATION.— In determining whether, pursuant to
paragraph (1), to deny occupancy or assistance to any person based on a pattern of use of
a controlled substance or a pattern of abuse of alcohol, a public housing agency may
consider whether such person—
(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).
223
(f) INELIGIBILITY OF INDIVIDUALS CONVICTED OF MANUFACTURING OR PRODUCING
METHAMPHETAMINE ON THE PREMISES.— Notwithstanding any other provision of law, a public
housing agency shall establish standards for occupancy in public housing dwelling units and
assistance under section 8 that—
(1) permanently prohibit occupancy in any public housing dwelling unit by, and
assistance under section 8 for, any person who has been convicted of
222
223
Section 576(d)(2) of the QHWRA deleted section 16(e).
Section 428 of the Appropriations Act, 1999 added section 16(f).
130
manufacturing or otherwise producing methamphetamine on the premises in
violation of any Federal or State law; and
(2) immediately and permanently terminate the tenancy in any public housing unit
of, and the assistance under section 8 for, any person who is convicted of
manufacturing or otherwise producing methamphetamine on the premises in
violation of any Federal or State law.
RENTAL REHABILITATION AND DEVELOPMENT GRANTS
SEC. 17.224 [42 U.S.C. 1437o] (a) PROGRAM AUTHORITY.— (1) REHABILITATION AND
DEVELOPMENT GRANTS.— The Secretary is authorized—
(A) to make rental rehabilitation grants to help support the rehabilitation of
privately owned real property, or of real property that will be privately owned upon the
completion of rehabilitation, to be used for primarily residential rental purposes in
accordance with subsection (c); and
(B) to make development grants for new construction or substantial rehabilitation
in accordance with subsection (d).
(2) AUTHORITY TO RESERVE HOUSING ASSISTANCE.— In connection with a grant under
this section, the Secretary may reserve authority to provide housing assistance under section 8(o)
to the extent necessary—
(A) to provide housing assistance to persons displaced by activities under this
section; or
(B) to support the grantee's program.
(3) AUTHORIZATION.— There are authorized to be appropriated for rental rehabilitation
under this section $125,000,000 for each of the fiscal years 1988 and 1989, of which $1,500,000
shall be available each fiscal year for technical assistance, including the collection, processing, and
dissemination of program information useful for local and national program management. There
are authorized to be appropriated for development grants under this section $75,000,000 for fiscal
year 1988 and $75,000,000 for fiscal year 1989.
(b) DISTRIBUTION OF RENTAL REHABILITATION GRANT FUNDS.— (1) FORMULA
ALLOCATION.— Of the amount available in any fiscal year for rehabilitation grants under this
section, the Secretary shall allocate amounts for rehabilitation grants under subsection (c) to cities
having populations of fifty thousand or more, urban counties, and States for use as provided in
subsection (e), on the basis of a formula which shall be contained in a regulation proposed by the
Secretary not later than sixty days after the effective date of this section.225 Such regulation shall
be accompanied by the specific fund allocation for fiscal year 1984 for individual cities, urban
counties, and States which would result from the proposed formula and any adjustments under
paragraph (2). The formula contained in the regulation shall take into account objectively
measurable conditions, including such factors as low income renter population, overcrowding of
rental housing, the
extent of physically inadequate housing stock, and such other objectively measurable conditions as
the Secretary deems appropriate to reflect the need for assistance under this section, but excluding
224
Section 289(a) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, provides that no new grants or loans may be made
under this section after October 1, 1991. Subsection (b) of such section repealed this section effective on October 1, 1991.
225
The effective date was November 30, 1983.
131
data relating to such factors which pertain to areas eligible for assistance under title V of the
Housing Act of 1949.
(2) ADJUSTMENTS.— Before an allocation determined under paragraph (1) for any fiscal
year is made available for use, the Secretary may adjust the allocation as follows:
(A) The Secretary is authorized to establish minimum allocation amounts for cities
and urban counties, representing program levels below which, in the Secretary's
determination, conduct of a rental rehabilitation program would not be feasible. The
amount of any allocation which is below this minimum shall be added to the allocation for
the State in which the city or county is located and shall be available in accordance with
subsection (e).
(B) Beginning with fiscal years after fiscal year 1984, the Secretary is authorized to
adjust the allocation for a city, urban county, or State administering a rental rehabilitation
program as provided in subsection (e), by up to 15 per centum above or below the amount
of such allocation, based on an annual review of performance in carrying out activities
under this section in a timely manner and in achieving the result that at least 80 per centum
of the units rehabilitated with assistance under this section in all program years have rents
which are and remain at a level which would be affordable by low-income families. The
last sentence of subparagraph (A) shall not apply to an allocation which is below the
minimum amount described therein by reason of an adjustment under this subparagraph.
The Secretary shall establish by regulation performance criteria for purposes of this
subparagraph.
(3) REALLOCATION.— After the allocation of rehabilitation grant amounts, the Secretary is
authorized to reallocate such amounts among grantees on the basis of the Secretary's assessment
of the progress of grantees in carrying out activities under this section in accordance with their
specified schedules. Reallocations under this paragraph shall be designed to encourage use of
these resources expeditiously, consistent with the sound development and administration of the
grantees' rental rehabilitation programs.
(4) RECAPTURE.— Any rental rehabilitation grant amounts which are not obligated at the
end of any fiscal year shall be added to the amount available for allocation for such grants for the
succeeding fiscal year.
(c) GRANTS FOR MODERATE REHABILITATION.— (1) Program Description.— A
rehabilitation grant may be made under this section on the basis of satisfactory information
provided in a program description which shall be submitted by the grantee at such time and in
such manner as the Secretary may prescribe and which shall contain—
(A) a description of the grantee's proposed rental rehabilitation program, which
shall consist of the activities each grantee proposes to undertake for the fiscal year,
including the grantee's anticipated schedule in carrying out those activities, or, in case of a
State distributing resources as provided in subsection (e), its proposed method of
distributing the resources, which shall have been made available to the public;
(B) a certification that the grantee's program was developed after consultation with
the public;
(C) a statement of the procedures and standards which will govern selection of
proposals by the grantee, which procedures and standards shall take into account the
extent to which the proposal represents the efficient use of Federal resources and the
132
extent to which the housing units involved will be adequately maintained and operated
with rents at the levels proposed;
(D) an estimate of the effect of the proposed program on neighborhood
preservation;
(E) evidence demonstrating the financial feasibility of the proposed program,
including the availability of non-Federal and private resources and including evidence that
the projects to be selected for rehabilitation will be located in neighborhoods where rents
are generally affordable to low-income families and that the character of the neighborhood
indicates that such rents will not materially change over an extended period; and
(F) such other information as the Secretary shall prescribe.
(2) PROGRAM REQUIREMENTS.— A rental rehabilitation program assisted under this
section shall provide that—
(A) grant assistance shall only be used to rehabilitate real property to be used for
primarily residential rental purposes;
(B) grants shall only be used to assist the rehabilitation of real property located in
neighborhoods where the median income does not exceed 80 per centum of the median
income for the area;
(C) grant assistance for any structure shall not exceed 50 per centum of the total
costs associated with the rehabilitation of that structure, as determined by the Secretary,
except that where the Secretary determines that refinancing costs and the special nature of
the project require a greater amount of assistance, the grant amount shall be limited to not
to exceed 50 per centum of the development cost including acquisition;
(D) rehabilitation assisted under this section shall only be that which is necessary to
correct substandard conditions, to make essential improvements, and to repair major
systems in danger of failure;
(E) the amount of rental rehabilitation assistance provided under this section for
any structure shall not exceed $5,000 per unit for a unit with no bedrooms, $6,500 per
unit for a unit with 1 bedroom, $7,500 per unit for a unit with 2 bedrooms, and $8,500 per
unit for a unit with 3 or more bedrooms, except as otherwise determined by the Secretary
in areas of high material and labor costs where the grantee demonstrates that every
appropriate step has been taken by the grantee to contain the amount of assistance within
the limit set by this paragraph and that an exception is necessary to conduct a
rehabilitation program while not exceeding the rehabilitation standards of subparagraph
(D);
(F) a structure may be assisted under this section only if the rehabilitation of such
structure will not cause the involuntary displacement of very low-income families by
families who are not very low-income families;
(G) the owner of each assisted structure agrees—
(i) not to discriminate against prospective tenants on the basis of their
receipt of or eligibility for housing assistance under any Federal, State, or local
housing assistance program or, except for a structure for housing for elderly
families, on the basis that the tenants have a minor child or children who will be
residing with them; and
133
(ii) not to convert the units to condominium ownership (or in the case of a
cooperative, to condominium ownership or any form of cooperative ownership not
eligible for assistance under this section);
for at least 10 years beginning on the date on which the units in the project are completed;
(H) the grantee certifies to the satisfaction of the Secretary that the assistance will
be made available in conformity with Public Law 88-352 and Public Law 90-284; and
(I) 100 per centum of the amount of assistance provided under this section shall be
used by the grantee for the benefit of low-income families, except that such requirement
shall be reduced to (i) 70 per centum if the grantee certifies in accordance with standards
prescribed by the Secretary that such reduction is necessary, and that the grantee cannot
develop a proposed program which complies with such requirement, after consultation
with the public regarding the inability to develop a program which complies with such
requirement, and (ii) to not less than 50 per centum where the Secretary determines that
such further reduction is necessary.
(3) SECRETARIAL RESPONSIBILITY.— The Secretary shall assure that—
(A) an equitable share of the rehabilitation grants under this section is used to
assist in the provision of housing for families with children, particularly families requiring
three or more bedrooms; and
(B) a priority shall be given to projects containing units in substandard condition
which are occupied by very low-income families.
(4) USE OF FUNDS TO COMPLY WITH SEISMIC STANDARDS.— If a unit of general local
government has a local ordinance that requires rehabilitation to meet seismic standards, the unit of
local government may use all rehabilitation assistance received under this section to rehabilitate
units with no bedroom or 1 bedroom, if the occupants of the units will have incomes that do not
exceed 50 percent of the median income of the area.
(d)226 GRANTS FOR NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION.—
(1) TYPES OF ASSISTANCE.— Development grant funds may be used by the grantee to
make grants or loans, provide interest reduction payments, or furnish other comparable assistance
to support the new construction or substantial rehabilitation of real property to be used primarily
for residential rental purposes.
(2) AREA ELIGIBILITY.— To be eligible for development grants under this subsection, a
project must be located in an area that is experiencing a severe shortage of decent rental housing
opportunities for families and individuals without other reasonable and affordable housing
alternatives in the private market. The Secretary shall issue regulations, consistent with the
preceding sentence, that set forth minimum standards for determining areas eligible for assistance.
Such standards shall be based on objectively measurable conditions, and shall take into account
the extent of poverty, the extent of occupancy of physically inadequate housing by low-income
families, the extent of housing overcrowding experienced by low-in-come families, the level and
duration of rental housing vacancies, the extent of the lag between the estimated need for and
production of rental housing, and other objectively measurable conditions specified by the
226
Section 152 of the Housing and Community Development Act of 1987, Pub. L. 100-242, provides as follows:
"SEC. 152. TERMINATION OF RENTAL DEVELOPMENT GRANT PROGRAM.
"(a) In General.— Effective on October 1, 1989, the rental development grant program under section 17(d) of the United States Housing Act of 1937
shall terminate.
"(b) Savings Provision.— The provisions of subsection (a) shall not apply with respect to any housing development grant under section 17(d) of the
United States Housing Act of 1937 made pursuant to a reservation of funds made by the Secretary of Housing and Urban Development before October
1, 1989.".
134
Secretary consistent with the first sentence of this subsection. The Secretary shall propose
regulations under this paragraph not later than 60 days after the date of enactment of this
section227 and shall promptly transmit to the Congress such proposed regulations accompanied by
a list of those areas which meet the minimum standards contained in such regulations. Any unit of
general local government located in an area which meets such minimum standards is eligible to
submit an application for a rental housing development grant under this section. Notwithstanding
such minimum standards, a city shall also be eligible to submit such an application if (A) according
to the most recent data compiled by the United States Bureau of the Census, such city has a
population of not less than 450,000; and (B) the percentage of the total rental units in such city
that are vacant and available for rent is less than 10 percent. The Secretary may also consider an
application for a project to be located in an area which is not eligible under such standards where
the Secretary determines that a project involving assistance for other than moderate rehabilitation
is necessary in order to meet special housing needs or to advance a particular neighborhood
preservation purpose. Notwithstanding any other provision of law, the eligibility requirements for
development grants under this section shall be the requirements in effect under this subsection on
October 17, 1986.
(3) APPLICATION.— A development grant may be made under this section on the basis of
information provided in an application which shall be submitted by the grantee at such time and in
such manner as the Secretary may prescribe. In addition to information relating to the selection
criteria set forth in paragraph (5), the application shall contain—
(A) a description of the grantee's proposed rental development program, which
shall consist of the activities the grantee proposes to undertake for the fiscal year,
including a specification of the grantee's anticipated schedule in carrying out those
activities;
(B) a certification that the grantee's program was developed after consultation with
the public;
(C) a statement of the procedures and standards which will govern selection of
proposals by the grantee, which procedures and standards shall take into account the
extent to which the proposal represents the efficient use of Federal resources and the
extent to which the housing units involved will be adequately maintained and operated
with rents maintained at the levels proposed;
(D) an estimate of the effect of the proposed program on neighborhood
preservation; and
(E) such other information as the Secretary shall prescribe.
(4) PROGRAM REQUIREMENTS.— A rental development program assisted under this section
shall provide that—
(A) grant assistance shall be used to develop real property to be used for
residential rental purposes only;
(B) grant assistance for any structure shall not exceed 50 per centum of the total
costs associated with the rehabilitation or development of that structure, as determined by
the Secretary, except that where the Secretary determines that the special nature of the
project require a greater amount of assistance, the grant amount shall be limited to not to
exceed 50 per centum of the development cost including acquisition;
227
The date of enactment was November 30, 1983.
135
(C) a structure may be assisted under this section only if the development of such
structure will not cause the involuntary displacement of very low-income families by
families who are not very low-income families;
(D) the owner of each assisted structure agrees—
(i) not to discriminate against prospective tenants on the basis of their
receipt of or eligibility for housing assistance under any Federal, State, or local
housing assistance program or, except for a structure for housing for the elderly,
on the basis that the tenants have a minor child or children who will be residing
with them; and
(ii) not to convert the units to condominium ownership (or in the case of a
cooperative, to condominium ownership or any form of cooperative ownership not
eligible for assistance under this section);
during the 20-year period beginning on the date on which the units in the project are
available for occupancy;
(E) the owner of each assisted structure agrees that, during the 20-year period
beginning on the date on which 50 per centum of the units in the structure are occupied or
completed, at least 20 per centum of the units the construction or substantial rehabilitation
of which is provided for under the application shall be occupied, or available for
occupancy by, low-income families;
(F) the structure—
(i) will have a value after rehabilitation or construction that is not more
than the amount of a mortgage on the structure that could be insured under section
207 of the National Housing Act; and
(ii) is secured by a mortgage which bears a rate of interest and contains
such other terms and conditions as the Secretary determines are reasonable;
(G) the grantee must commence construction or substantial rehabilitation activities
not later than 24 months after notice of project selection (48 months after notice in the
case of projects for which funding notices were issued prior to July 23, 1985), except that
the Secretary may extend such period by not more than 6 months if the commencement of
such activities is delayed due to judicial or administrative proceedings;
(H) the State or unit of general local government that receives the assistance
certifies to the satisfaction of the Secretary that the assistance will be made available in
conformity with Public Law 88-352 and Public Law 90-284; and
(I) the owner of each assisted structure agrees to comply with the provisions of
paragraph (8) until the 20-year period specified in paragraph (7) has ended.
(5) PROJECT SELECTION.— In selecting projects to receive development grants, the
Secretary shall make such selection on the basis of the extent—
(A) of the severity of the shortage of decent rental housing opportunities in the
area in which the project or projects are to be located for families and individuals without
other reasonable and affordable housing alternatives in the private market;
(B) of non-Federal public and private financial or other contributions that reduce
the amount of assistance necessary under this section;
(C) to which the project or projects contribute to neighborhood development and
mitigate displacement;
136
(D) to which the applicant has established a satisfactory record of performance in
meeting assisted housing needs and has the capacity to undertake the program in a timely
manner;
(E) to which the assistance requested will provide the maximum number of units
for the least cost to the Federal Government, taking into consideration the extent to which
assistance provided will be recaptured and cost differences among different areas, among
financing alternatives, and among the types of projects and tenants being served;
(F) to which the grantee will establish a mechanism to assure the maintenance of
affordable rentals for low-income families;
(G) to which the applicant has demonstrated the financial feasibility of the
proposed program, including the availability of non-Federal and private resources; and
(H) to which an equitable share of the development grant funds under this section
will be used to assist in the provision of housing for families with children, particularly
families requiring three or more bedrooms.
(6) PRIORITIES.— In selecting projects for grants under this subsection, the Secretary shall
give a priority to proposals involving projects—
(A) which exceed the minimum requirements of paragraph (4)(E); and
(B) in areas where the waiting lists for housing assistance are relatively long and
where families holding certificates under section 8 require an excessive length of time to
find housing.
(7) ENFORCEMENT OF PROGRAM REQUIREMENTS.— (A) The grantee shall take appropriate
legal action to enforce compliance with the requirements of this subsection by the owner of any
assisted property or his or her successors in interest during the 20-year period beginning on the
date on which 50 per centum of the units are occupied or are completed. For any violation of such
agreements, the owner or his or her successors in interest shall make a payment to the grantee of
an amount that equals the total amount of assistance provided under this subsection with respect
to such project, plus interest thereon (without compounding), for each year and any fraction
thereof that the assistance was outstanding, at a rate determined by the Secretary taking into
account the average yield on outstanding marketable long-term obligations of the United States
during the month preceding the date on which the assistance was made available. The amount of
such assistance (and accrued interest) which is required to be repaid shall be reduced by 10 per
centum for each full year in excess of 10 years which intervened between the commencement of
the period and the violation. Any amounts recovered by the grantee shall be used to furnish
assistance under this section.
(B) Notwithstanding any other provision of law, any assistance provided under this
subsection shall constitute a debt, which is payable in the case of any failure to carry out the
agreements, and shall be secured by the security instruments provided by the owner to the
grantee.
(8)(A) RENT PROVISIONS.— Rents charged for units available for occupancy by lowincome families in any project assisted under this subsection shall be approved by the grantee. In
approving such rents, the grantee shall provide that the rents of such units are not more than 30
per centum of the adjusted income of a family whose income equals 50 per centum of the median
income for the area, as determined by the Secretary with adjustments for smaller and larger
families. Not less than 30 days prior written notice of any increase in rents shall be provided to
such tenants.
137
(B) Any schedule of rents submitted by an owner to the grantee for approval shall be
deemed to be approved unless the grantee informs the owner, within 60 days after receiving such
schedule, that such schedule is disapproved.
(9) GRANT AMOUNT.— The amount of a development grant provided under this subsection
shall not be more than that amount which will provide decent rental or cooperative housing of
modest design which is affordable for families and individuals without other reasonable and
affordable housing alternatives in the private market, including an amount necessary to achieve
compliance with paragraph (8)(A).
(10) DEVELOPMENT COST.—
(A) The Secretary shall include in the development cost of a project assisted under
this subsection any developer's fee if such fee—
(i) is included in a mortgage secured by the project; and
(ii) the lender is a State housing finance agency or the project is financed by
bonds issued by a State housing finance agency or similar local entity.
(B) The amount of any developer's fee shall not be counted in calculating the
maximum grant amount pursuant to paragraph (4)(B).
(C) This paragraph shall only be applicable to projects with respect to which a
notice of project selection is received before the date of the enactment of the Housing and
Community Development Act of 1987.228
(e) STATE PROGRAM.— (1) Except as provided in paragraph (2), the State shall administer
resources made available under subsection (b) for any fiscal year. These resources shall only be
used to carry out activities under this section in units of general local government and areas of the
State that do not receive allocations under subsection (b) and in urban counties and cities whose
allocations are less than the minimum allocation amount established under subsection (b)(2), but
may not be used in areas which are eligible for assistance under title V of the Housing Act of
1949. The State may use all or part of these resources (A) to carry out its own rental
228
The date of enactment was February 5, 1988. Section 304 of the Department of Housing and Urban Development Reform Act of 1989, Pub. L.
101-235, provides that section 17(d) of the "United States Housing Act of 1987 is amended as follows:
"(11) Sale of units.—
"(A) In general.— Notwithstanding any other provision of law, in the case of a project assisted by a development grant awarded pursuant to this
section where (i) the grant was originally approved for a nonprofit cooperative, and (ii) a majority of the units in the approved project have 3 or more
bedrooms, the nonprofit owner of such project may sell such units for fee simple or condominium ownership if the requirements of subparagraph (B)
are met.
"(B) Requirements.— The requirements of this subparagraph are that—
"(i) at least 80 percent of the units in the project are initially sold to households with incomes that do not exceed 80 percent of the median income of
the area;
"(ii) housing cost to such households shall be initially calculated at not to exceed 30 percent of actual household income;
"(iii) each purchaser agrees that, during the 20-year period following the initial sale, any subsequent resale of the unit shall be to a purchaser whose
income does not exceed 80 percent of the median income for the area; and
"(iv) after the 20-year period described in clause (iii), the pro rata grant attributable to a unit, which shall be secured by a deed of trust on the unit,
shall be repaid upon any sale, lease, or transfer of any interest in the unit except for a sale of the unit to a purchaser whose income does not exceed 80
percent of the median income of the area.
"(C) Refinancing.— A refinancing of the unit involving an equity withdrawal shall require a repayment to the extent of the withdrawal not to exceed
the pro rata amount of the grant attributable to the unit. A refinancing unrelated to a sale, equity withdrawal, lease, or transfer of interest shall not
require repayment.
"(D) Administration.— A homeowner may request grantee approval of a sale, equity withdrawal, or other transfer with postponement of the
repayment or without full or partial repayment and grantee may approve if the grantee determines that—
"(i) an undue hardship will result from the application of the repayment requirement, such as where the proceeds are insufficient to repay the loan in
full; or
"(ii) postponing repayment is in the interest of neighborhood growth and stability.
"(E) Effect of repayment.— Upon repayment of the grant, any program requirements affecting the unit shall terminate. The grantee shall use
repayments of the grant for low and moderate income housing as prescribed by the Secretary. Notwithstanding any existing project convenants or
inconsistencies with this section, the Secretary shall take all action necessary to implement this paragraph.".
The amendatory instructions in such section 304 were insufficient to execute the amendment. The amendment probably intended to add the new
paragraph (11) at the end of section 17(d) of the United States Housing Act of 1937.
138
rehabilitation program, or (B) to distribute them to units of general local government. A city with
a population over fifty thousand may, with the agreement of the State government, elect to
contract with the State to administer the grant program under this section in any fiscal year.
(2) States may elect not to administer resources made available under subsection (b). This
election shall be made in such manner and before such time as the Secretary may prescribe. The
Secretary shall administer the resources available to any State exercising such an election in
accordance with regulations and procedures prescribed by the Secretary, including the
administration of grant programs of cities with populations over fifty thousand which elect not to
administer their own program. Such regulations shall, to the maximum extent practicable, be
comparable to those for cities and urban counties receiving resources under subsection (b).
(3) A State may apply for and receive, on behalf of a unit of local government located in
that State and with the concurrence of that unit of general local government, a rental development
grant to be used in accordance with the provisions of subsection (d).
(4) In any case in which the State is a grantee under any provision of this section, the
Secretary shall require that the State take such actions as may be appropriate to assure
compliance with the program requirements, owner agreements, and other provisions of this
section.
(f) APPLICABILITY OF REQUIREMENTS OR AGREEMENTS.— Requirements imposed by or
agreements made with States and units of general local government regarding rents in structures
assisted under this section (including requirements relating to the rents which may be charged
after rehabilitation) shall not apply to a structure assisted under this section unless (1) such
requirements are imposed or agreements are entered into pursuant to a State229 law or local
ordinance of general applicability which was enacted and in effect in that jurisdiction prior to the
date of enactment of this section, and (2) such requirements or agreements would apply generally
to structures not assisted under this section. This subsection shall not apply to requirements
relating to rents imposed on a structure as a condition of receiving financial assistance under a
program of the State of New York or City of New York or State of Vermont or State of
Maryland for the rehabilitation of the structure if (1) the dollar amount of the State financial
assistance (including the principal amount of loans) exceeds the dollar amount of financial
assistance provided for the structure under this section, and (2) the structure is privately owned by
(A) a person or family whose income does not exceed 80 percent of the median income for the
metropolitan statistical area where the structure is located (or the country, if located outside such
an area), or (B) a not-for-profit corporation or charitable organization which has as one of its
primary purposes the improvement of housing for such persons, or by a wholly owned subsidiary
of such a corporation or organization. This subsection shall also not apply to requirements
relating to rents imposed on a structure by the City of West Hollywood, California.
(g) RELOCATION.— The Secretary shall by regulation establish such standards governing
reasonable relocation payments and other related assistance as the Secretary determines to be
appropriate.
(h) ADMINISTRATIVE EXPENSES.— (1) Except as provided in paragraph (2), grantees
receiving assistance under this section may not deduct therefrom any amounts to cover
administrative expenses in carrying out their responsibilities under this section.
229
The Dire Emergency Supplemental Appropriations and Transfers, Urgent Supplementals, and Correcting Enrollment Errors Act of 1989, Pub. L.
101-45, 103 Stat. 112, amended this subsection "in clause (1), by inserting `or municipal' after `State'.". The amendment could not be executed and
was probably intended to be made to clause (1) of the second sentence.
139
(2) A grantee may use not more than 10 percent of its initial rental rehabilitation grant
under subsection (c) for each year to cover administrative expenses in carrying out its
responsibilities under this section. Any State shall share the amount provided pursuant to the
preceding sentence with units of general local government administering the program with the
State.
(i) PRESERVATION, ENVIRONMENTAL POLICY, AND LABOR STANDARDS.— (1) The
Secretary shall establish procedures which support national historic preservation objectives and
which assure that, if any rehabilitation or development proposed to be assisted under this section
would affect property which is included on the National Register of Historic Places or which is
eligible for inclusion on the National Register of Historic Places, such activity shall not be
undertaken unless (A) it will reasonably meet the standards issued by the Secretary of the Interior
and the appropriate State historic preservation officer is afforded the opportunity to comment on
the specific rehabilitation or development program, or (B) the Advisory Council on Historic
Preservation is afforded an opportunity to comment on cases for which the grantee of assistance,
in consultation with the State historic preservation officer, determines that the proposed activity
cannot reasonably meet such standards or would adversely affect historic property as defined
therein.
(2) The Secretary's award and grantee's use of resources made available under this section
shall be subject to section 104(g) of the Housing and Community Development Act of 1974.
(3) A project assisted under this section shall be treated as a project subject to a mortgage
insured under section 220 of the National Housing Act for the purpose of section 212 of such
Act.
(j) FINANCING.— Subject to terms and conditions that are prescribed by the Secretary and
are consistent with the purpose and other provisions of this section, any obligation issued by a
State or local housing agency for the purpose of financing the development of a project or
projects assisted under this section is hereby deemed an obligation that meets the requirements of,
and has the benefits (including the benefit of interest earned with respect to the obligation being
exempt from Federal taxation) associated with, an obligation described in section 11(b).
(k) DEFINITIONS.— For the purpose of this section—
(1) the term "rehabilitation grant" means a grant to finance moderate rehabilitation;
(2) the term "development grant" means a grant to finance new construction or
substantial rehabilitation;
(3) the Secretary shall use the same population data and rules for designating cities
and urban counties as apply under title I of the Housing and Community Development Act
of 1974;
(4) the term "privately owned real property to be used primarily for residential
rental purposes" includes (A) cooperative or mutual housing which has a resale structure
which enables the cooperative to maintain affordability for low-income families, and (B)
housing that is owned by a State or locally chartered, neighborhood based, nonprofit
organization the primary purpose of which is the provision and improvement of housing;
(5) the term "grantee" means—
(A) any city or urban county receiving resources under subsection (b), and
any unit of general local government receiving resources under subsection (d);
(B) any State administering a rental rehabilitation or development program
as provided in subsection (e); and
140
(C) any unit of general local government which receives assistance from the
Secretary as provided in subsection (e);
(6) the term "State" means each of the several States and the Commonwealth of
Puerto Rico; and
(7) the term "unit of general local government" means (A) any city, county, town,
township, parish, village, or other general purpose political subdivision of a State; (B) any
Indian tribe (as defined in section 102(a)(17) of the Housing and Community
Development Act of 1974); and (C) the District of Columbia, the Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands,
and any other territory or possession of the United States.
The Secretary shall encourage cooperation by units of general local government in the
administration of grants under this section by permitting consortia of geographically proximate
units of general local government to apply for assistance on behalf of their members, including
establishment of eligibility under subsection (b) for consortia whose combined populations exceed
fifty thousand and which can otherwise meet the requirements of such subsection. Any amounts
made available to such a consortium shall be deducted from the allocation to the State in which
the units of general local government are located.
(l) REVIEW AND AUDIT.— The Secretary shall, at least on an annual basis, make such
reviews and audits as may be necessary or appropriate to determine—
(1) where the grantee is a unit of general local government, or a State carrying out
its own program as provided in subsection (e)(1), whether the grantee has carried out its
activities in a timely manner and in accordance with the requirements of this section, and
has a continuing capacity to carry out those activities in a timely manner; and
(2) where the grantee is a State distributing resources made available under this
section to units of general local government as provided in subsection (e)(1), whether the
State (A) has distributed such resources in a timely manner and in accordance with the
requirements of this section, and (B) has made such reviews and audits of the units of
general local government as may be necessary or appropriate to determine whether they
have satisfied the performance criteria described in paragraph (1).
In addition to the adjustments based on performance authorized by subsection (b)(2), the
Secretary may adjust, reduce, or withdraw resources made available to States and units of general
local government receiving assistance under this section, or take other action as appropriate in
accordance with the findings of these reviews and audits, except that resources already expended
on eligible activities shall not be recaptured or deducted from future resources made available to
the grantee. Any amounts which become available as a result of actions under this paragraph shall
be reallocated in the year in which they become available to such grantee or grantees as the
Secretary may determine.
(m) PERFORMANCE REPORT.— Prior to the beginning of fiscal year 1985 and each fiscal
year thereafter, each grantee shall submit to the Secretary a performance report concerning the
activities carried out pursuant to this section, together with an assessment by the grantee of the
relationship of these activities to the objectives of this section. Such report shall contain an
analysis of the program's cost effectiveness, the type and income levels of tenants who benefit
from the rehabilitation program, any tenant displacement resulting from the program, and any
other information the Secretary may require. To facilitate this reporting requirement, each grantee
shall require owners of property rehabilitated under this section to provide verified income data
141
and other pertinent tenant demographic information as prescribed by the Secretary (to include
household size and race) or to otherwise arrange for the collection of such information on an
annual basis. The Secretary shall stipulate the format for such data collection to assure that such
information can be aggregated at the national level to allow congressional oversight.
(n) REPORT TO CONGRESS.— Prior to the beginning of fiscal year 1985 and each fiscal year
thereafter, the Secretary shall provide a report to the Congress as to the overall progress of
grantees in meeting the objectives of this section. Such report shall include an analysis of program
costs, services delivered, beneficiaries, and the extent to which lower income tenants have been
displaced as a result of rehabilitation assisted under this section.
(o) INAPPLICABILITY OF CERTAIN PROVISIONS.— Unless otherwise specifically provided in
this section, the following provisions of this Act shall not apply to grants provided under this
section: section 3(a), section 3(b)(1), the third sentence of section 3(b)(3), section 3(b)(7), the last
sentence of section 6(a), and any other provision of this Act that is inconsistent with the
provisions of this section.
230
DEMOLITION AND DISPOSITION OF PUBLIC HOUSING
SEC. 18.231 [42 U.S.C. 1437p] (a) The Secretary may not approve an application by a
public housing agency for permission, with or without financial assistance under this Act, to
demolish or dispose of a public housing project or a portion of a public housing project unless the
Secretary has determined that—
(1) in the case of an application proposing demolition of a public housing project
or a portion of a public housing project, the project or portion of the project is obsolete as
to physical condition, location, or other factors, making it unusable for housing purposes,
and no reasonable program of modifications is feasible to return the project or portion of
the project to useful life; or in the case of an application proposing the demolition of only
a portion of a project, the demolition will help to assure the useful life of the remaining
portion of the project;
(2) in the case of an application proposing disposition of real property of a public
housing agency by sale or other transfer—
(A)(i) the property's retention is not in the best interests of the tenants or
the public housing agency because developmental changes in the area surrounding
the project adversely affect the health or safety of the tenants or the feasible
operation of the project by the public housing agency, because disposition allows
the acquisition, development, or rehabilitation of other properties which will be
230
Section 531(a) of the QHWRA amended section 18 to read as shown. Section 531(c) of the QHWRA states "(c) Treatment of Frost-Leland
Provisions.— Notwithstanding any other provision of law, on and after the date of the 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 (Public Law 100-202;
101 Stat. 1329-213), as in effect 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 the enactment of this Act.
(c) Applicability.— This section shall take effect on, and the amendments made by this section are made on, and shall apply beginning
upon, the date of the enactment of this Act."
231
Section 1002(a) of Public Law 104-19, approved July 27, 1995, made numerous amendments to this section repealing the requirement that each
public housing dwelling unit demolished or disposed be replaced with an additional dwelling unit. Subsection (d) of such section 1002 provides as
follows:
"(d) Subsections (a), (b), and (c) shall be effective for applications for the demolition, disposition, or conversion to homeownership of public housing
approved by the Secretary, and other consolidation and relocation activities of public housing agencies undertaken, on, before, or after September 30,
1995 and on or before September 30, 1998.".
142
more efficiently or effectively operated as low-income housing projects and which
will preserve the total amount of low-income housing stock available in the
community, or because of other factors which the Secretary determines are
consistent with the best interests of the tenants and public housing agency and
which are not inconsistent with other provisions of this Act; and
(ii) for property other than dwelling units, the property is excess to the
needs of a project or the disposition is incidental to, or does not interfere with,
continued operation of a project; and
(B) the net proceeds of the disposition will be used for (i) the payment of
development cost for the project and for the retirement of outstanding obligations
issued to finance original development or modernization of the project, which, in
the case of scattered-site housing of a public housing agency, shall be in an amount
that bears the same ratio to the total of such costs and obligations as the number of
units disposed of bears to the total number of units of the project at the time of
disposition, and (ii) to the extent that any proceeds remain after the application of
proceeds in accordance with clause (i), the provision of housing assistance for lowincome families through such measures as modernization of low-income housing,
or the acquisition, development, or rehabilitation of other properties to operate as
low-income housing; or
(3) in the case of an application proposing demolition or disposition of any portion
of a public housing project, assisted at any time under section 5(j)(2)—
(A) such assistance has not been provided for the portion of the project to
be demolished or disposed within the 10-year period ending upon submission of
the application; or
(B) the property's retention is not in the best interest of the tenants or the
public housing agency because of extraordinary changes in the area surrounding
the project or other extraordinary circumstances of the project.
(b) The Secretary may not approve an application or furnish assistance under this section
or under this Act unless—
(1) the application from the public housing agency has been developed in
consultation with tenants and tenant councils, if any, who will be affected by the
demolition or disposition, and the tenant councils, resident management corporation, and
tenant cooperative of the project or portion of the project covered by the application, if
any, have been given appropriate opportunities to purchase the project or portion of the
project covered by the application, and contains a certification by appropriate local
government officials that the proposed activity is consistent with the applicable housing
assistance plan; and
(2) all tenants to be displaced as a result of the demolition or disposition will be
given assistance by the public housing agency and are relocated to other decent, safe,
sanitary, and affordable housing, which is, to the maximum extent practicable, housing of
their choice, including housing assisted under section 8 of this Act, and the public housing
agency provides for the payment of the relocation expenses of each tenant to be
displaced, ensures that the rent paid by the tenant following relocation will not exceed the
amount permitted under this Act and shall not commence demolition or disposition of any
unit until the tenant of the unit is relocated.
143
(c) Notwithstanding any other provision of law, the Secretary is authorized to make
available financial assistance for applications approved under this section using available
contributions authorized under section 5.
(d) A public housing agency shall not take any action to demolish or dispose of a public
housing project or a portion of a public housing project without obtaining the approval of the
Secretary and satisfying the conditions specified in subsections (a) and (b): Provided, That nothing
in this section shall prevent a public housing agency from consolidating occupancy within or
among buildings of a public housing project, or among projects, or with other housing for the
purpose of improving the living conditions of or providing more efficient services to its tenants.
(e)(1) In each of fiscal years 1993 and 1994, the Secretary may reserve from any budget
authority appropriated for such year for assistance under section 8 that is available for families not
currently receiving such assistance not more than 10 percent of such budget authority for
providing replacement housing under subsection (b)(3)(A)232 for units demolished or disposed of
pursuant to this section.
(2) In each of fiscal years 1993 and 1994, the Secretary may reserve from any budget
authority appropriated for such year for development of public housing under section 5(a)(2) not
more than the lesser of 30 percent of such budget authorization or $150,000,000, for providing
replacement housing under subsection (b)(3)(A)1 for units demolished or disposed of pursuant to
this section.
(f) Notwithstanding any other provision of law, replacement housing units for public
housing units demolished may be built on the original public housing site or in the same
neighborhood if the number of such replacement units is significantly fewer than the number of
units demolished. No one may rely on the preceding sentence as the basis for reconsidering a final
order of a court issued, or a settlement approved, by a court.
(g) The provisions of this section shall not apply to the disposition of a public housing
project in accordance with an approved homeownership program under title III of this Act.
SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
(a) APPLICATIONS FOR DEMOLITION AND DISPOSITION.— Except as provided in subsection
(b), upon receiving an application by a public housing 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
232
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, Pub. L. 104-19, 109 Stat. 236, amended this subsection by "striking `under
section (b)(3)(A)' in each place it occurs". The amendment could not be executed.
144
(B) an application proposing the demolition of only a portion of a public
housing project, that the demolition will help to ensure the viability of the
remaining portion of the project;
(2) in the case of an application proposing disposition by sale or other transfer of
a public housing project or other real property subject to this title—
(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 each family residing 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, consistent with any guidelines issued by the Secretary
governing such notifications, that—
(i) the public housing project will be demolished or disposed of;
(ii) the demolition of the building in which the family resides will
not commence until each resident of the building is relocated; and
(iii) each family displaced by such action will be offered
comparable housing—
(I) that meets housing quality standards;
(II) that is located in an area that is generally not less
desirable than the location of the displaced person's housing; and
(III) which may include—
(aa) tenant-based assistance, except that the
requirement under this clause regarding offering of
comparable housing shall be fulfilled by use of tenantbased assistance only upon the relocation of such family
into such housing;
145
(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) 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
in accordance with the notice under subparagraph (A); and
(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 building 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—
(i) the provision of low-income housing or to benefit the residents
of the public housing agency; or
(ii) leveraging amounts for securing commercial enterprises, onsite in public housing projects of the public housing agency, appropriate
to serve the needs of the residents; 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;
(B) each resident advisory board and resident council, if any, of the
project (or portion thereof) that will be affected by the proposed demolition or
disposition; and
(C) appropriate government officials.
(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 lowincome housing.
146
(2) TIMING.—
(A) EXPRESSION OF INTEREST.— 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) OPPORTUNITY TO ARRANGE PURCHASE.— 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 (other than to the entity providing the
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
public 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 the replacement public housing units is significantly fewer
than the number of units demolished.
(e) CONSOLIDATION OF OCCUPANCY WITHIN OR AMONG BUILDINGS.— Nothing in this
section may be construed to prevent a public housing agency from consolidating occupancy
within or among buildings of a public housing project, or among projects, or with other housing
for the purpose of improving living conditions of, or providing more efficient services to,
residents.
(f) DE MINIMIS EXCEPTION TO DEMOLITION REQUIREMENTS.— Notwithstanding any other
provision of this section, in any 5-year period a public housing agency may demolish not more
than the lesser of 5 dwelling units or 5 percent of the total dwelling units owned by the public
housing agency, but only if the space occupied by the demolished unit is used for meeting the
service or other needs of public housing residents or the demolished unit was beyond repair.
(g) UNIFORM RELOCATION AND REAL PROPERTY ACQUISITION ACT.— The Uniform
Relocation and Real Property Acquisition Policies Act of 1970 shall not apply to activities under
this section.
(h) RELOCATION AND REPLACEMENT.— Of the amounts appropriated for tenant-based
assistance under section 8 in any fiscal year, the Secretary may use such sums as are necessary
for relocation and replacement housing for dwelling units that are demolished and disposed of
from the public housing inventory (in addition to other amounts that may be available for such
purposes).
FINANCING LIMITATIONS
SEC. 19. [42 U.S.C. 1437q] On and after October 1, 1983, the Secretary—
(1) may only enter into contracts for annual contributions regarding obligations
financing public housing projects authorized by section 5(c) if such obligations are exempt
from taxation under section 11(b), or if such obligations are issued under section 4 and
such obligations are exempt from taxation; and
(2) may not enter into contracts for periodic payments to the Federal Financing
Bank to offset the costs to the Bank of purchasing obligations (as described in the first
147
sentence of section 16(b) of the Federal Financing Bank Act of 1973) issued by local
public housing agencies for purposes of financing public housing projects authorized by
section 5(c) of this Act.
PUBLIC HOUSING RESIDENT MANAGEMENT
SEC. 20. [42 U.S.C. 1437r] (a) PURPOSE.— The purpose of this section is to encourage
increased resident management of public housing projects, as a means of improving existing living
conditions in public housing projects, by providing increased flexibility for public housing projects
that are managed by residents by—
(1) permitting the retention, and use for certain purposes, of any revenues
exceeding operating and project costs; and
(2) providing funding, from amounts otherwise available, for technical assistance
to promote formation and development of resident management entities.
For purposes of this section, the term "public housing project" includes one or more contiguous
buildings or an area of contiguous row houses the elected resident councils of which approve the
establishment of a resident management corporation and otherwise meet the requirements of this
section.
(b) PROGRAM REQUIREMENTS.—
(1) RESIDENT COUNCIL.— As a condition of entering into a resident management
program, the elected resident council of a public housing project shall approve the
establishment of a resident management corporation. When such approval is made by the
elected resident council of a building or row house area, the resident management program
shall not interfere with the rights of other families residing in the project or harm the
efficient operation of the project. The resident management corporation and the resident
council may be the same organization, if the organization complies with the requirements
applicable to both the corporation and council. The corporation shall be a nonprofit
corporation organized under the laws of the State in which the project is located, and the
tenants of the project shall be the sole voting members of the corporation. If there is no
elected resident council, a majority of the households of the public housing project shall
approve the establishment of a resident council to determine the feasibility of establishing a
resident management corporation to manage the project.
(2) PUBLIC HOUSING MANAGEMENT SPECIALIST.— The resident council of a public
housing project, in cooperation with the public housing agency, shall select a qualified
public housing management specialist to assist in determining the feasibility of, and to help
establish, a resident management corporation and to provide training and other duties
agreed to in the daily operations of the project.
(3) BONDING AND INSURANCE.— Before assuming any management responsibility
for a public housing project, the resident management corporation shall provide fidelity
bonding and insurance, or equivalent protection, in accordance with regulations and
requirements of the Secretary and the public housing agency. Such bonding and insurance,
or its equivalent, shall be adequate to protect the Secretary and the public housing agency
against loss, theft, embezzlement, or fraudulent acts on the part of the resident
management corporation or its employees.
148
(4) MANAGEMENT RESPONSIBILITIES.— A resident management corporation that
qualifies under this section, and that supplies insurance and bonding or equivalent
protection sufficient to the Secretary and the public housing agency, shall enter into a
contract with the public housing agency establishing the respective management rights and
responsibilities of the corporation and the public housing agency. Such contract shall be
consistent with the requirements of this Act applicable to public housing projects and may
include specific terms governing management personnel and compensation, access to
public housing project records, submission of and adherence to budgets, rent collection
procedures, tenant income verification, tenant eligibility determinations, tenant eviction,
the acquisition of supplies and materials, 233rent determination, community service
requirements, and such other matters as may be appropriate. The contract shall be treated
as a contracting out of services and shall be subject to any provision of a collective
bargaining agreement regarding contracting out to which the public housing agency is
subject.
(5) ANNUAL AUDIT.— The books and records of a resident management
corporation operating a public housing project shall be audited annually by a certified
public accountant. A written report of each audit shall be forwarded to the public housing
agency and the Secretary.
234
(c) COMPREHENSIVE IMPROVEMENT ASSISTANCE.— Public housing projects managed by
resident management corporations may be provided with comprehensive improvement assistance
under section 14 for purposes of renovating such projects in accordance with such section. If such
renovation activities (including the planning and architectural design of the rehabilitation) are
administered by a resident management corporation, the public housing agency involved may not
retain, for any administrative or other reason, any portion of the assistance provided pursuant to
this subsection unless otherwise provided by contract.
(c) ASSISTANCE AMOUNTS.— A contract under this section for management of a public
housing project by a resident management corporation shall provide for—
(1) the public housing agency to provide a portion of the assistance to agency
from the Capital and Operating Funds to the resident management corporation in
accordance with subsection (e) for purposes of operating the public housing project
covered by the contract and performing such other eligible activities with respect to the
project as may be provided under the contract;
(2) the amount of income expected to be derived from the project itself (from
sources such as rents and charges);
(3) the amount of income to be provided to the project from the other sources of
income of the public housing agency (such as interest income, administrative fees, and
rents); and
(4) any income generated by a resident management corporation of a public
housing project that exceeds the income estimated under the contract shall be used for
eligible activities under subsections (d)(1) and (e)(1) of section 9.
(d) WAIVER OF FEDERAL REQUIREMENTS.—
(1) WAIVER OF REGULATORY REQUIREMENTS.— Upon the request of any resident
management corporation and public housing agency, and after notice and an opportunity
233
234
Section 532(a)(1) of the QHWRA amended section 20(b)(4).
Section 532(a)(2) of the QHWRA amended section 20(c) to read as shown.
149
to comment is afforded to the affected tenants, the Secretary may waive (for both the
resident management corporation and the public housing agency) any requirement
established by the Secretary (and not specified in any statute) that the Secretary
determines to unnecessarily increase the costs or restrict the income of a public housing
project.
(2) WAIVER TO PERMIT EMPLOYMENT.— Upon the request of any resident
management corporation, the Secretary may, subject to applicable collective bargaining
agreements, permit residents of such project to volunteer a portion of their labor.
235
(3) REPORT ON ADDITIONAL WAIVERS.— Not later than 6 months after the date
of the enactment of the Housing and Community Development Act of 1987,236 the
Secretary shall submit to the Congress a report setting forth any additional waivers of
Federal law that the Secretary determines are necessary or appropriate to carry out the
provisions of this section. In preparing the report, the Secretary shall consult with resident
management corporations and public housing agencies.
237
(4)(3) EXCEPTIONS.— The Secretary may not waive under this subsection any
requirement with respect to income eligibility for purposes of section 16, rental payments
under section 3(a), tenant or applicant protections, employee organizing rights, or rights
of employees under collective bargaining agreements.
238
(e) OPERATING SUBSIDY AND PROJECT INCOME.—
(1) CALCULATION OF OPERATING SUBSIDY.— Notwithstanding any provision of
section 9 or any regulation under such section, and subject to the exception provided in
paragraph (3), the portion of the operating subsidy received by a public housing agency
under section 9 that is allocated to a public housing project managed by a resident
management corporation shall not be less than the public housing agency per unit monthly
amount provided in the previous year as determined on an individual project basis.
(2) CONTRACT REQUIREMENTS.— Any contract for management of a public
housing project entered into by a public housing agency and a resident management
corporation shall specify the amount of income expected to be derived from the project
itself (from sources such as rents and charges) and the amount of income funds to be
provided to the project from the other sources of income of the public housing agency
(such as operating subsidy under section 9, interest income, administrative fees, and rents).
(3) CALCULATION OF TOTAL INCOME.—
(A) Subject to subparagraph (B), the amount of funds provided by a public
housing agency to a public housing project managed by a resident management
corporation may not be reduced during the 3-year period beginning on the date of
enactment of the Housing and Community Development Act of 1987 or on any
later date on which a resident management corporation is first established for the
project.
(B) If the total income of a public housing agency (including the operating
subsidy provided to the public housing agency under section 9) is reduced or
increased, the income provided by the public housing agency to a public housing
project managed by a resident management corporation shall be reduced or
235
Section 532(a)(3) of the QHWRA deleted section 20(d)(3).
The date of enactment was February 5, 1988.
237
Section 532(a)(3) of the QHWRA redesignated section 20(d)(4) to 20(d)(3).
238
Section 532(a)(4)(B) of the QHWRA amended to read as shown.
236
150
increased in proportion to the reduction or increase in the total income of the
public housing agency, except that any reduction in operating subsidy that occurs
as a result of fraud, waste, or mismanagement by the public housing agency shall
not affect the funds provided to the resident management corporation.
(e) DIRECT PROVISION OF OPERATING AND CAPITAL ASSISTANCE.—
(1) IN GENERAL.— The Secretary shall directly provide assistance from the
Operating and Capital Funds 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 assistance from the Operating and Capital Funds
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.
(4) CALCULATION OF OPERATING FUND ALLOCATION.— Notwithstanding any
provision of section 9 or any regulation under such section, and subject to the exception
provided in paragraph (3), the portion of the amount received by a public housing
agency under section 9 that is due to an allocation from the Operating Fund and that is
allocated to a public housing project managed by a resident management corporation
shall not be less than the public housing agency per unit monthly amount provided in the
previous year as determined on an individual project basis.
(5) CALCULATION OF TOTAL INCOME.—
(A) Subject to subparagraph (B), the amount of funds provided by a public
housing agency to a public housing project managed by a resident management
corporation may not be reduced during the 3-year period beginning on the date
of the enactment of the Housing and Community Development Act of 1987 or on
any later date on which a resident management corporation is first established for
the project.
(B) If the total income of a public housing agency (including any amounts
from the Capital or Operating Funds provided to the public housing agency
under section 9) is reduced or increased, the income provided by the public
housing agency to a public housing project managed by a resident management
corporation shall be reduced or increased in proportion to the reduction or
increase in the total income of the public housing agency, except that any
reduction in amounts from the Operating Fund that occurs as a result of fraud,
151
waste, or mismanagement by the public housing agency shall not affect the funds
provided to the resident management corporation.
239
(4)(6) RETENTION OF EXCESS REVENUES.—
(A) Any income generated by a resident management corporation of a
public housing project that exceeds the income estimated for purposes of this
subsection shall be excluded in subsequent years in calculating (i) 240the operating
subsidies provided tothe allocations from the Operating Fund for the public
housing agency under section 9; and (ii) the funds provided by the public housing
agency to the resident management corporation.
(B) Any revenues retained by a resident management corporation under
subparagraph (A) shall be used for purposes of improving the maintenance and
operation of the public housing project, for establishing business enterprises that
employ residents of public housing, or for acquiring additional dwelling units for
low-income families.
241
(f) RESIDENT MANAGEMENT TECHNICAL ASSISTANCE AND TRAINING.—
(1) FINANCIAL ASSISTANCE.— To the extent budget authority is available for
section 14, the Secretary shall provide financial assistance to resident management
corporations or resident councils that obtain, by contract or otherwise, technical assistance
for the development of resident management entities, including the formation of such
entities, the development of the management capability of newly formed or existing
entities, the identification of the social support needs of residents of public housing
projects, and the securing of such support.
(2) Limitation on assistance.— The financial assistance provided under this
subsection with respect to any public housing project may not exceed $100,000.
(3) Authorization of appropriations.— There are authorized to be appropriated to
carry out this subsection $4,750,000 for fiscal year 1993 and $4,949,500 for fiscal year
1994.
(4) Limitation regarding assistance under hope grant program.— The Secretary
may not provide financial assistance under this subsection to any resident management
corporation or resident council with respect to which assistance for the development or
formation of such entity is provided under title III.
(g) ASSESSMENT AND REPORT BY THE SECRETARY.— Not later than 3 years after the date
of the enactment of the Housing and Community Development Act of 1987,242 the Secretary
shall—
(1) conduct an evaluation and assessment of resident management, and particularly
of the effect of resident management on living conditions in public housing; and
(2) submit to the Congress a report setting forth the findings of the Secretary as a
result of the evaluation and assessment and including any recommendations the Secretary
determines to be appropriate.
(h) APPLICABILITY.— Any management contract between a public housing agency and a
resident management corporation that is entered into after the date of the enactment of the
239
Section 532(a)(4)(A) of the QHWRA redesignated section 20(e)(4) to 20(e)(6).
Section 532(a)(4)(C) of the QHWRA amended section 20(e)(6)(A).
241
Section 532(a)(5) of the QHWRA deleted section 20(f) and (g).
242
The date of enactment was February 5, 1988.
240
152
Stewart B. McKinney Homeless Assistance Amendments Act of 1988243 shall be subject to this
section and the regulations issued to carry out this section.
PUBLIC HOUSING HOMEOWNERSHIP AND MANAGEMENT OPPORTUNITIES
SEC. 21. [42 U.S.C. 1437s] (a) HOMEOWNERSHIP OPPORTUNITIES IN GENERAL.— Lower
income families residing in a public housing project shall be provided with the opportunity to
purchase the dwelling units in the project through a qualifying resident management corporation
as follows:
(1) FORMATION OF RESIDENT MANAGEMENT CORPORATION.— As a condition for
public housing homeownership—
(A) the adult residents of a public housing project shall have formed a
resident management corporation in accordance with regulations and requirements
of the Secretary prescribed under this section and section 20;
(B) the resident management corporation shall have entered into a contract
with the public housing agency establishing the respective management rights and
responsibilities of the resident management corporation and the public housing
agency; and
(C) the resident management corporation shall have demonstrated its ability
to manage public housing effectively and efficiently for a period of not less than 3
years.
(2) HOMEOWNERSHIP ASSISTANCE.—
(A) The Secretary may provide 244comprehensive improvement assistance
under section 14assistance from the Capital Fund to a public housing project in
which homeownership activities under this section are conducted.
(B) The Secretary may provide financial assistance to public housing
agencies, resident management corporations, or resident councils that obtain, by
contract or otherwise, training, technical assistance, and educational assistance as
the Secretary determines to be necessary to promote homeownership opportunities
under this section.
(C) This paragraph shall not have effect after February 4, 1991. The
Secretary may not provide financial assistance under subparagraph (B), after such
date, unless the Secretary determines that such assistance is necessary for the
development of a homeownership program that was initiated, as determined by the
Secretary, before the date of the enactment of the Cranston-Gonzalez National
Affordable Housing Act.245
(3) CONDITIONS OF PURCHASE BY A RESIDENT MANAGEMENT CORPORATION.—
(A) A resident management corporation may purchase from a public
housing agency one or more multifamily buildings in a public housing project
following a determination by the Secretary that—
(i) the resident management corporation has met the conditions of
paragraph (1);
243
November 7, 1988.
Section 532(b)(1)(A) of the QHWRA amended section 21(a)(2)(A).
245
November 28, 1990.
244
153
(ii) the resident management corporation has applied for and is
prepared to undertake the ownership, management, and maintenance of the
building or buildings with continued assistance from the Secretary;
(iii) the public housing agency has held one or more public hearings
to obtain the views of citizens regarding the proposed purchase and, in
consultation with the Secretary, has certified that the purchase will not
interfere with the rights of other families residing in public housing, will not
harm the efficient operation of other public housing, and is in the interest of
the community;
(iv) the public housing agency has certified that it has and will
implement a plan to replace public housing units sold under this section
within 30 months of the sale, which plan shall provide for replacement of
100 percent of the units sold under this section by—
(I) production, acquisition, or rehabilitation of vacant public
housing units by the public housing agency; and
(II) acquisition by the resident management corporation of
nonpublicly owned, decent, and affordable housing units, which the
resident management corporation shall operate as rental housing
subject to tenant income and rent limitations comparable to the
limitations applicable to public housing; and
(v) the building or buildings meet the 246minimum safety and
livability standards applicable under section 14housing quality standards
applicable under section 6(f), and the physical condition, management, and
operation of the building or buildings are sufficient to permit affordable
homeownership by the families residing in the project.
(B) The price of a building purchased under the preceding sentence shall be
approved by the Secretary, in consultation with the public housing agency and
resident management corporation, taking into account the fair market value of the
property, the ability of resident families to afford and maintain the property, and
such other factors as the Secretary determines to be consistent with increasing the
supply of dwelling units affordable to very low income families.
(C) This paragraph shall not have effect after February 4, 1991. The
authority for a resident management corporation to purchase 1 or more multifamily
buildings in a public housing project from a public housing agency shall terminate
after such date, unless the Secretary determines that such purchase is necessary for
the development of a homeownership program that was initiated, as determined by
the Secretary, before the date of the enactment of the Cranston-Gonzalez National
Affordable Housing Act.247
(4) CONDITIONS OF RESALE.—
(A)(i) A resident management corporation may sell a dwelling unit or
ownership rights in a dwelling unit only to a lower income family residing in, or
eligible to reside in, public housing and only if the Secretary determines that the
purchase will not interfere with the rights of other families residing in the housing
246
247
Section 532(b)(1)(B) of the QHWRA amended section 21(a)(3)(A)(v).
November 28, 1990.
154
project or harm the efficient operation of the project, and the family will be able to
purchase and maintain the property.
(ii) The sale of dwelling units or ownership rights in dwelling units under
clause (i) shall be made to families in the following order of priority:
(I) a lower income family residing in the public housing project in
which the dwelling unit is located;
(II) a lower income family residing in any public housing project
within the jurisdiction of the public housing agency having jurisdiction with
respect to the project in which the dwelling unit is located;
(III) a lower income family receiving Federal housing assistance and
residing in the jurisdiction of such public housing agency; and
(IV) a lower income family on the waiting list of such public
housing agency for public housing or assistance under section 8, with
priority given in the order in which the family appears on the waiting list.
(iii) Each resident management corporation shall provide each family
described in clause (ii) with a notice of the eligibility of the family to purchase a
dwelling unit under this paragraph.
(B) A purchase under subparagraph (A) may be made under any of the
following arrangements:
(i) Limited dividend cooperative ownership.
(ii) Condominium ownership.
(iii) Fee simple ownership.
(iv) Shared appreciation with a public housing agency providing
financing under paragraph (6).
(v) Any other arrangement determined by the Secretary to be
appropriate.
(C) Property purchased under this section shall be resold only to the
resident management corporation, a lower income family residing in or eligible to
reside in public housing or housing assisted under section 8, or to the public
housing agency.
(D) In no case may the owner receive consideration for his or her interest
in the property that exceeds the total of—
(i) the contribution to equity paid by the owner;
(ii) the value, as determined by such means as the Secretary shall
determine through regulation, of any improvements installed at the expense
of the owner during the owner's tenure as owner; and
(iii) the appreciated value determined by an inflation allowance at a
rate which may be based on a cost of living index, an income index, or
market index as determined by the Secretary through regulation and agreed
to by the purchaser and the resident management corporation or the public
housing agency, whichever is appropriate, at the time of initial sale, and
applied against the contribution to equity; the resident management
corporation or the public housing agency may, at the time of initial sale,
enter into an agreement with the owner to set a maximum amount which
this appreciation may not exceed.
155
(E) Upon sale, the resident management corporation or the public housing
agency, whichever is appropriate, shall ensure that subsequent owners are bound
by the same limitations on resale and further restrictions on equity appreciation.
(5) USE OF PROCEEDS.— Notwithstanding any other provision of this Act or other
law to the contrary, proceeds from the sale of a building or buildings under paragraph (3)
and amounts recaptured under paragraph (4) shall be paid to the public housing agency
and shall be retained and used by the public housing agency only to increase the number of
public housing units available for occupancy. The resident management corporation shall
keep and make available to the public housing agency and the Secretary all records
necessary to calculate accurately payments due the local housing agency under this
section. The Secretary shall not reduce or delay payments under other provisions of law as
a result of amounts made available to the local housing agency under this section.
(6) FINANCING.— When financing for the purchase of the property is not otherwise
available for purposes of assisting any purchase by a family or resident management
corporation under this section, the public housing agency involved may make a loan on the
security of the property involved to the family or resident management corporation at a
rate of interest that shall not be lower than 70 percent of the market interest rate for
conventional mortgages on the date on which the loan is made.
(7) 248ANNUAL CONTRIBUTIONSCAPITAL AND OPERATING ASSISTANCE.—
Notwithstanding the purchase of a building in a public housing project under this section,
the Secretary shall continue to 249pay annual contributionsprovide assistance under section
9 with respect to the project. 250Such contributions may not exceed the maximum
contributions authorized in section 5(a).Such assistance may not exceed the allocation for
the project under section 9.
(8) 251OPERATING SUBSIDIES.— Operating subsidiesOPERATING FUND
ALLOCATION.— Amounts from the Operating Fund shall not be available with respect to a
building after the date of its sale by the public housing agency.
(b) PROTECTION OF NONPURCHASING FAMILIES.—
(1) EVICTION PROHIBITION.— No family residing in a dwelling unit in a public
housing project may be evicted by reason of the sale of the project to a resident
management corporation under this section.
(2) TENANTS RIGHTS.— Families renting a dwelling unit purchased by a resident
management corporation shall have all rights provided to tenants of public housing under
this Act.
(3) RENTAL ASSISTANCE.— If any family resides in a dwelling unit in a building
purchased by a resident management corporation, and the family decides not to purchase
the dwelling unit, the Secretary shall offer to provide to the family (at the option of the
family) 252a certificate under section 8(b)(1) or a housing vouchertenant-based assistance
under section 8(o) for as long as the family continues to reside in the building. The
248
Section 532(b)(1)(C)(i) of the QHWRA amended section 21(a)(7).
Section 532(b)(1)(C)(ii) of the QHWRA amended section 21(a)(7).
250
Section 532(b)(1)(C)(iii) of the QHWRA amended section 21(a)(7).
251
Section 532(b)(1)(D) of the QHWRA amended section 21(a)(8).
252
Section 532(b)(2)(A) of the QHWRA amended section 21(b)(3).
249
156
Secretary may adjust the 253fair market rent for such certificatepayment standard for such
assistance to take into account conditions under which the building was purchased.
(4) RENTAL AND RELOCATION ASSISTANCE.— If any family resides in a dwelling
unit in a public housing project in which other dwelling units are purchased under this
section, and the family decides not to purchase the dwelling unit, the Secretary shall offer
(to be selected by the family, at its option)—
(A) to assist the family in relocating to a comparable appropriate sized
dwelling unit in another public housing project, and to reimburse the family for
their cost of relocation; and
(B) to provide to the family the financial assistance necessary to permit the
family to stay in the dwelling unit or to move to another comparable dwelling unit
and to pay no more for rent than required under subparagraph (A), (B), or (C) of
section 3(a)(1).
(c) FINANCIAL ASSISTANCE FOR PUBLIC HOUSING AGENCIES.— The Secretary shall
provide to public housing agencies such financial assistance as is necessary to permit such
agencies to carry out the provisions of this section.
(d) ADDITIONAL HOMEOWNERSHIP AND MANAGEMENT OPPORTUNITIES.— This section
shall not apply to the turnkey III, the mutual help, or any other homeownership program
established under 254section 5(h) or section 6(c)(4)(D), 255as in effect before the effective date
under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, and in
existence before the date of the enactment of the Housing and Community Development Act of
1987.
(e) REGULATIONS.— The Secretary shall issue such regulations as may be necessary to
carry out the provisions of this section. Such regulations may establish any additional terms and
conditions for homeownership or resident management under this section that are determined by
the Secretary to be appropriate.
[(f) [Repealed.]]
(g) LIMITATION.— Any authority of the Secretary under this section to provide financial
assistance, or to enter into contracts to provide financial assistance, shall be effective only to such
extent or in such amounts as are or have been provided in advance in an appropriation Act. [42
U.S.C. 1437s]
256
FAMILY INVESTMENT CENTERS
SEC. 22. [42 U.S.C. 1437t] (a) PURPOSE.— The purpose of this section is to provide
families living in public housing with better access to educational and employment opportunities
to achieve self-sufficiency and independence by—
(1) developing facilities in or near public housing for training and support services;
(2) mobilizing public and private resources to expand and improve the delivery of
such services;
253
Section 532(b)(2)(B) of the QHWRA amended section 21(b)(3).
Section 518(a)(2)(A) of the QHWRA amended section 21(d).
255
Section 532(b)(3) of the QHWRA amended section 21(d).
256
Section 533(a) of the QHWRA amended section 22 to read as shown.Entire section 22 amended by Section 533(a). NOTE: section 533(b) of
the QHWRA contains "Savings Provision.— The amendment made by subsection (a) shall not affect any contract or other agreement entered into
under section 22 of the United States Housing Act of 1937, as such section existed immediately before the effective date under section 503(a) of
the Quality Housing and Work Responsibility Act of 1998."
254
157
(3) providing funding for such essential training and support services that cannot
otherwise be funded; and
(4) improving the capacity of management to assess the training and service needs
of families with children, coordinate the provision of training and services that meet such
needs, and ensure the longterm provision of such training and services.
(b) GRANT AUTHORITY.—
(1) IN GENERAL.— The Secretary may make grants to public housing agencies to
adapt public housing to help families living in the public housing gain better access to
educational and job opportunities to achieve self-sufficiency and independence. Assistance
under this section may be made available only to public housing agencies that demonstrate
to the satisfaction of the Secretary that supportive services (as such term is defined under
subsection (j)) will be made available. Facilities assisted under this section shall be in or
near the premises of public housing.
(2) SUPPLEMENTAL GRANT SET-ASIDE.— The Secretary may reserve not more than
5 percent of the amounts available in each fiscal year under this section to supplement
grants awarded to public housing agencies under this section when, in the determination of
the Secretary, such supplemental adjustments are required to maintain adequate levels of
services to eligible residents.
(c) USE OF AMOUNTS.— Amounts received from a grant under this section may only be
used for—
(1) the renovation, conversion, or combination of vacant dwelling units in a public
housing project to create common areas to accommodate the provision of supportive
services;
(2) the renovation of existing common areas in a public housing project to
accommodate the provision of supportive services;
(3) the renovation of facilities located near the premises of 1 or more public
housing projects to accommodate the provision of supportive services;
(4) the provision of not more than 15 percent of the cost of any supportive
services (which may be provided directly to eligible residents by the public housing agency
or by contract or lease through other appropriate agencies or providers) only if the public
housing agency demonstrates to the satisfaction of the Secretary that—
(A) the supportive services are appropriate to improve the access of
eligible residents to employment and educational opportunities; and
(B) the public housing agency has made diligent efforts to use or obtain
other available resources to fund or provide such services; and
(5) the employment of service coordinators subject to such minimum qualifications
and standards that the Secretary may establish to ensure sound management, who may be
responsible for—
(A) assessing the training and service needs of eligible residents;
(B) working with service providers to coordinate the provision of services
and tailor such services to the needs and characteristics of eligible residents;
(C) mobilizing public and private resources to ensure that the supportive
services identified pursuant to subsection (e)(1) can be funded over the time period
identified under such subsection;
158
(B)257 monitoring and evaluating the impact and effectiveness of any
supportive service program receiving capital or operating assistance under this
section; and
(V)1 performing such other duties and functions that the Secretary
determines are appropriate to provide families living in public housing with better
access to educational and employment opportunities.
(d) ALLOCATION OF GRANT AMOUNTS.— Assistance under this section shall be allocated
by the Secretary among approvable applications submitted by public housing agencies.
(e) APPLICATIONS.— Applications for assistance under this section shall be submitted in
such form and in accordance with such procedures as the Secretary shall establish. Each
application for assistance shall contain—
(1) a description of the supportive services that are to be provided over a 5-year
period (or such longer period that the Secretary determines to be appropriate if assistance
is provided for activities under subsection (c) that involve substantial rehabilitation);
(2) a firm commitment of assistance from 1 or more sources ensuring that the
supportive services will be provided for not less than 1 year following the completion of
activities assisted under subsection (c);
(3) a description of public or private sources of assistance that can reasonably be
expected to fund or provide supportive services for the entire period specified under
paragraph (1), including evidence of any intention to provide assistance expressed by State
and local governments, private foundations, and other organizations (including profit and
nonprofit organizations);
(4) certification from the appropriate State or local agency (as determined by the
Secretary) that—
(A) the provision of supportive services described in paragraph (1) is well
designed to provide resident families better access to educational and employment
opportunities; and
(B) there is a reasonable likelihood that such services will be funded or
provided for the entire period specified in paragraph (1);
(5) a description of assistance for which the public housing agency is applying
under this section; and
(6) any other information or certifications that the Secretary determines are
necessary or appropriate to achieve the purposes of this section.
(f) SELECTION.— The Secretary shall establish selection criteria for grants under this
section, which shall take into account—
(1) the ability of the public housing agency or a designated service provider to
provide the supportive services identified under subsection (e)(1);
(2) the need for such services in the public housing project;
(3) the extent to which the envisioned renovation, conversion, and combination
activities are appropriate to facilitate the provision of such services;
(4) the extent to which the public housing agency has demonstrated that such
services will be provided for the period identified under subsection (e)(1);
(5) the extent to which the public housing agency has a good record of maintaining
and operating public housing; and
257
So in law.
159
(6) any other factors that the Secretary determines to be appropriate to ensure that
amounts made available under this section are used effectively.
(g) REPORTS.—
(1) TO SECRETARY.— Each public housing agency receiving a grant under this
section shall submit to the Secretary, in such form and at such time as the Secretary shall
prescribe, an annual progress report describing and evaluating the use of grant amounts
received under this section.
(2) TO CONGRESS.— The Secretary shall submit to the Congress annually, as a part
of the report of the Secretary under section 8 of the Department of Housing and Urban
Development Act, an evaluation of the effectiveness of activities carried out with grants
under this section in such fiscal year. Such report shall summarize the progress reports
submitted pursuant to paragraph (1).
(h) EMPLOYMENT OF PUBLIC HOUSING RESIDENTS.— Each public housing agency shall, to
the maximum extent practicable, employ public housing residents to provide the services assisted
under this section or from other sources. Such persons shall be paid at a rate not less than the
highest of—
(1) the minimum wage that would be applicable to the employee under the Fair
Labor Standards Act of 1938, if section 6(a)(1) of such Act applied to the resident and if
the resident were not exempt under section 13 of such Act;
(2) the State or local minimum wage for the most nearly comparable covered
employment; or
(3) the prevailing rates of pay for persons employed in similar public occupations
by the same employer.
(i) TREATMENT OF INCOME.— No service provided to a public housing resident under this
section may be treated as income for the purpose of any other program or provision of State or
Federal law.
(j) DEFINITION OF SUPPORTIVE SERVICES.— For purpose of this section, the term
"supportive services" means new or significantly expanded services that the Secretary determines
are essential to providing families living with children in public housing with better access to
educational and employment opportunities. Such services may include—
(1) child care;
(2) employment training and counseling;
(3) literacy training;
(4) computer skills training;
(5) assistance in the attainment of certificates of high school equivalency; and
(6) other appropriate services.
(k) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to
carry out this section $25,000,000 for fiscal year 1993 and $26,050,000 for fiscal year 1994.
SEC. 22. AUTHORITY TO CONVERT PUBLIC HOUSING TO VOUCHERS.
(a) AUTHORITY.— A public housing agency may convert any public housing project (or
portion thereof) owned by the public housing agency to tenant-based assistance, but only in
accordance with the requirements of this section.
(b) CONVERSION ASSESSMENT.—
(1) IN GENERAL.— To convert public housing under this section, a public housing
agency shall conduct an assessment of the public housing that includes—
160
(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 for the
remaining useful life of the project;
(B) an analysis of the market value of the public housing project 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 the use of tenant-based assistance under section 8 in that market for
the specific residents of the public housing project, 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 agency;
(D) the impact of the conversion to 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 tenant-based assistance.
(2) TIMING.— Not later than 2 years after the effective date under section 503(a)
of the Quality Housing and Work Responsibility Act of 1998, each public housing agency
shall conduct an assessment under paragraph (1) or (3) of the status of each public
housing project owned by such agency and shall submit to the Secretary such assessment.
A public housing agency may otherwise undertake an assessment under this subsection at
any time and for any public housing project (or portion thereof) owned by the agency. A
public housing agency may update a previously conducted assessment for a project (or
portion thereof) for purposes of compliance with the one-year limitation under subsection
(c).
(3) STREAMLINED ASSESSMENT.— At the discretion of the Secretary or at the request
of a public housing agency, the Secretary may waive any or all of the requirements of
paragraph (1) or (3) or otherwise require a streamlined assessment with respect to any
public housing project or class of public housing projects.
(c) CRITERIA FOR IMPLEMENTATION OF CONVERSION PLAN.— A public housing agency may
convert a public housing project (or portion thereof) owned by the agency to tenant-based
assistance only pursuant to a conversion assessment under subsection (b) that one year and that
demonstrates that the conversion—
(1) will not be more expensive than continuing to operate the public housing
project (or portion thereof) as public housing;
(2) will principally benefit the residents of the public housing project (or portion
thereof) to be converted, the public housing agency, and the community; and
(3) will not adversely affect the availability of affordable housing in such
community.
(d) CONVERSION PLAN REQUIREMENT.— A public housing project may be converted under
this section to tenant-based assistance only as provided in a conversion plan under this
subsection, which has not been disapproved by the Secretary pursuant to subsection (e). Each
conversion plan shall—
161
(1) be developed by the public housing agency, in consultation with the
appropriate public officials, with significant participation by the residents of the project
(or portion thereof) to be converted;
(2) be consistent with and part of the public housing agency plan;
(3) describe the conversion and future use or disposition of the project (or portion
thereof) and include an impact analysis on the affected community;
(4) provide that the public housing agency shall—
(A) notify each family residing in a public housing project (or portion) to
be converted under the plan 90 days prior to the displacement date except in
cases of imminent threat to health or safety, consistent with any guidelines issued
by the Secretary governing such notifications, that—
(i) the public housing project (or portion) will be removed from the
inventory of the public housing agency; and
(ii) each family displaced by such action will be offered
comparable housing—
(I) that meets housing quality standards;
(II) that is located in an area that is generally not less
desirable than the location of the displaced person's housing; and
(III) which may include—
(aa) tenant-based assistance, except that the
requirement under this clause regarding offering of
comparable housing shall be fulfilled by use of tenantbased assistance only upon the relocation of such family
into such housing;
(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) provide any necessary counseling for families displaced by such
action;
(C) ensure that, if the project (or portion) converted is used as housing
after such conversion, each resident may choose to remain in their dwelling unit
in the project and use the tenant-based assistance toward rent for that unit; and
(D) provide any actual and reasonable relocation expenses for families
displaced by the conversion; and
(5) provide that any proceeds to the agency from the conversion will be used
subject to the limitations that are applicable under section 18(a)(5) to proceeds resulting
from the disposition or demolition of public housing.
(e) REVIEW AND APPROVAL OF CONVERSION PLANS.— The Secretary shall disapprove a
conversion plan only if—
(1) the plan is plainly inconsistent with the conversion assessment for the agency
developed under subsection (b);
(2) there is reliable information and data available to the Secretary that
contradicts that conversion assessment; or
162
(3) the plan otherwise fails to meet the requirements of this section.
(f) TENANT-BASED ASSISTANCE.— 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.
SEC. 23. [42 U.S.C. 1437u] FAMILY SELF-SUFFICIENCY PROGRAM.
(a) PURPOSE.— The purpose of the Family Self-Sufficiency program established under this
section is to promote the development of local strategies to coordinate use of public housing and
assistance under the certificate and voucher programs under section 8 with public and private
resources, to enable eligible families to achieve economic independence and self-sufficiency.
(b) ESTABLISHMENT OF PROGRAM.—
(1) REQUIRED PROGRAMS.— Except as provided in paragraph (2), the Secretary
shall carry out a program under which each public housing agency that administers
assistance under subsection (b) or (o) of section 8 or makes available new public housing
dwelling units—
(A) may, during fiscal years 1991 and 1992, carry out a local Family SelfSufficiency program under this section; 258and
(B) effective on October 1, 1992, the Secretary shall require each such
agency to carry out a local Family Self-Sufficiency program under this section.
Each local program shall, subject to availability of supportive services, include an action
plan under subsection (g) and shall provide comprehensive supportive services for families
electing to participate in the program. In carrying out the self-sufficiency program under
this section, the Secretary shall consult with the heads of other appropriate Federal
agencies and provide for cooperative actions and funding agreements with such agencies.
Each public housing agency administering an approved local program may employ a
service coordinator to administer the local program., 259subject to the limitations in
paragraph (4); and
260
(C) effective on the date of the enactment of the Quality Housing and
Work Responsibility Act of 1998, to the extent an agency is not required to carry
out a program pursuant to subparagraph (B) of this paragraph and paragraph
(4), may carry out a local Family Self-Sufficiency program under this section.
(2) EXCEPTION.— The Secretary shall not require a public housing agency to carry
out a local program under subsection (a) if the public housing agency provides
certification (as such term is defined under title I of the Cranston-Gonzalez National
Affordable Housing Act) to the Secretary, that the establishment and operation of the
program is not feasible because of local circumstances, which may include—
(A) lack of supportive services accessible to eligible families, which shall
include insufficient availability of resources for programs under 261the Job Training
Partnerships Act or the title I of the Workforce Investment Act of 1988 or the Job
258
Section 509(a)(1)(A)(i) of the QHWRA amended section 23(b)(1)(A). Section 509(b) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
259
Section 509(a)(1)(A)(ii) of the QHWRA amended section 23(b)(1)(B). Section 509(b) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
260
Section 509(a)(1)(A)(iii) of the QHWRA added section 23(b)(1)(C). Section 509(b) of the QHWRA made this amendment effective upon
enactment of the QHWRA (October 21, 1998).
261
Section 405(d)(31)(A) and section 405(f)(23)(A) of the Omnibus Act, 1999, amended section 23(b)(2)(A) of the United States Housing Act of
1937.
163
Opportunities and Basic Skills Training Program under part F of title IV of the
Social Security Act;
(B) lack of funding for reasonable administrative costs;
(C) lack of cooperation by other units of State or local government; or
(D) any other circumstances that the Secretary may consider appropriate.
In allocating assistance available for reservation under this Act, the Secretary may not
refuse to provide assistance or decrease the amount of assistance that would otherwise be
provided to any public housing agency because the agency has provided a certification
under this paragraph or because, pursuant to a certification, the agency has failed to carry
out a self-sufficiency program.
(3) SCOPE.— EachSubject to paragraph (4), each262 public housing agency
required to carry out a local program under this section shall make the following housing
assistance available under the program in each fiscal year:
(A) Certificate and voucher assistance under section 8(b) and (o), in an
amount equivalent to the increase for such year in the number of families so
assisted by the agency (as compared to the preceding year).
(B) Public housing dwelling units, in the number equal to the increase for
such year in units made available by the agency (as compared to the preceding
year).
Each such public housing agency shall continue to operate a local program for the
number of families determined under this paragraph subject only to the availability under
appropriations Acts of sufficient amounts for assistance.
263
(4) TERMINATION OF REQUIREMENT TO EXPAND PROGRAM.—
(A) In general.— Notwithstanding any other provision of law, a public
housing agency that receives incremental assistance under subsection (b) or (o) of
section 8 or that makes available new public housing dwelling units shall not be
required, after the enactment of the Quality Housing and Work Responsibility Act
of 1998, to provide assistance under a local Family Self-Sufficiency program
under this section to any families not required to be assisted under subparagraph
(B) of this paragraph.
(B) CONTINUATION OF EXISTING OBLIGATIONS.—
(i) IN GENERAL.— Each public housing agency that, before the
enactment of the Quality Housing and Work Responsibility Act of 1998,
was required under this section to carry out a local Family SelfSufficiency program shall continue to operate such local program for the
number of families determined under paragraph (3), subject only to the
availability under appropriations Acts of sufficient amounts for housing
assistance.
(ii) REDUCTION.— The number of families for which an agency is
required under clause (i) to operate such local program shall be
decreased by one for each family that, after enactment of the Quality
262
Section 509(a)(1)(B) of the QHWRA amended section 23(b)(3). Section 509(b) of the QHWRA made this amendment effective upon enactment
of the QHWRA (October 21, 1998).
263
Section 509(a)(1)(D) of the QHWRA added section 23(b)(4). Section 509(b) of the QHWRA made this amendment effective upon enactment of
the QHWRA (October 21, 1998).
164
Housing and Work Responsibility Act of 1998, fulfills its obligations
under the contract of participation.
264
(4)(5) NONPARTICIPATION.— Assistance under the certificate or voucher
programs under section 8 for a family that elects not to participate in a local program shall
not be delayed by reason of such election.
(c) CONTRACT OF PARTICIPATION.—
(1) IN GENERAL.— Each public housing agency carrying out a local program under
this section shall enter into a contract with each leaseholder receiving assistance under the
certificate and voucher programs of the public housing agency under section 8 or residing
in public housing administered by the agency, that elects to participate in the selfsufficiency program under this section. The contract shall set forth the provisions of the
local program, shall establish specific interim and final goals by which compliance with and
performance of the contract may be measured, and shall specify the resources and
supportive services to be made available to the participating family pursuant to paragraph
(2) and the responsibilities of the participating family. The contract shall provide that the
public housing agency may terminate or withhold assistance under section 8 and services
under paragraph (2) of this subsection if the public housing agency determines, through an
administrative grievance procedure in accordance with the requirements of section 6(k),
that the family has failed to comply with the requirements of the contract without good
cause (which may include a loss or reduction in access to supportive services, or a change
in circumstances that makes the family or individual unsuitable for participation).
(2) SUPPORTIVE SERVICES.— A local program under this section shall provide
appropriate supportive services under this paragraph to each participating family entering
into a contract of participation under paragraph (1). The supportive services shall be
provided during the period the family is receiving assistance under section 8 or residing in
public housing, and may include—
(A) child care;
(B) transportation necessary to receive services;
(C) remedial education;
(D) education for completion of high school;
(E) job training and preparation;
(F) substance abuse treatment and counseling;
(G) training in homemaking and parenting skills;
(H) training in money management;
(I) training in household management; and
(J) any other services and resources appropriate to assist eligible families to
achieve economic independence and self-sufficiency.
(3) TERM AND EXTENSION.— Each family participating in a local program shall be
required to fulfill its obligations under the contract of participation not later than 5 years
after entering into the contract. The public housing agency shall extend the term of the
contract for any family that requests an extension, upon a finding of the agency of good
cause.
264
Section 509(a)(1)(C) of the QHWRA redesignated section 23(b)(4) to 23(b)(5). Section 509(b) of the QHWRA made this amendment effective
upon enactment of the QHWRA (October 21, 1998).
165
(4) EMPLOYMENT AND COUNSELING.— The contract of participation shall require
the head of the participating family to seek suitable employment during the term of the
contract. The public housing agency may, during such period, provide counseling for the
family with respect to affordable rental and homeownership opportunities in the private
housing market and money management counseling.
(d) INCENTIVES FOR PARTICIPATION.—
(1) MAXIMUM RENTS.— During the term of the contract of participation, the
amount of rent paid by any participating family whose monthly adjusted income does not
exceed 50 percent of the area median income for occupancy in the public housing unit or
dwelling unit assisted under section 8 may not be increased on the basis of any increase in
the earned income of the family, unless the increase results in an income exceeding 50
percent of the area median income. The Secretary shall provide for increased rents for
participating families whose in-comes are between 50 and 80 percent of the area median
income, so that any family whose income increases to 80 percent or more of the area
median income pays 30 percent of the family's monthly adjusted income for rent. Upon
completion of the contract of participation, if the participating family continues to qualify
for and reside in a dwelling unit in public housing or housing assisted under section 8, the
rent charged the participating family shall be increased (if applicable) to 30 percent of the
monthly adjusted income of the family.
(2) ESCROW SAVINGS ACCOUNTS.— For each participating family whose monthly
adjusted income is less than 50 percent of the area median income, the difference between
30 percent of the adjusted income of the participating family and the amount of rent paid
by a participating family shall be placed in an interest-bearing escrow account established
by the public housing agency on behalf of the participating family. For families with
incomes between 50 and 80 percent of the area median income, the Secretary shall provide
for escrow of the difference between 30 percent of the family income and the amount paid
by the family for rent as determined by the Secretary under paragraph (1). The Secretary
shall not escrow any amounts for any family whose adjusted income exceeds 80 percent of
the area median income. Amounts in the escrow account may be withdrawn by the
participating family after the family ceases to receive income assistance under Federal or
State welfare programs, upon successful performance of the obligations of the family
under the contract of participation entered into by the family under subsection (c), as
determined according to the specific goals and terms included in the contract, and under
other circumstances in which the Secretary determines an exception for good cause is
warranted. A public housing agency establishing such escrow accounts may make certain
amounts in the accounts available to the participating families before full performance of
the contract obligations based on compliance with, and completion of, specific interim
goals included in the contract; except that any such amounts shall be used by the
participating families for purposes consistent with the contracts of participation, as
determined by the public housing agency.
(3) PLAN.— Each public housing agency carrying out a local program under this
section shall establish a plan to offer incentives to families to encourage families to
participate in the program. The plan shall require the establishment of escrow savings
accounts under paragraph (2) and may include any other incentives designed by the public
housing agency.
166
265
(3)266 USE OF ESCROW SAVINGS ACCOUNTS FOR SECTION 8 HOMEOWNERSHIP.—
Notwithstanding paragraph (3)267, a family that uses assistance under section 8(y) to
purchase a dwelling may use up to 50 percent of the amount in its escrow account
established under paragraph (3)260 for a downpayment on the dwelling. In addition, after
the family purchases the dwelling, the family may use any amounts remaining in the
escrow account to cover the costs of major repair and replacement needs of the dwelling.
If a family defaults in connection with the loan to purchase a dwelling and the mortgage is
foreclosed, the remaining amounts in the escrow account shall be recaptured by the
Secretary.
(e) EFFECT OF INCREASES IN FAMILY INCOME.— Any increase in the earned income of a
family during the participation of the family in a local program established under this section may
not be considered as income or a resource for purposes of eligibility of the family for other
benefits, or amount of benefits payable to the family, under any program administered by the
Secretary, unless the income of the family equals or exceeds 80 percent of the median income of
the area (as determined by the Secretary with adjustments for smaller and larger families).
(f) PROGRAM COORDINATING COMMITTEE.—
(1) FUNCTIONS.— Each public housing agency 268carrying out a local program
under this section shall, in consultation with the chief executive officer of the unit of
general local government, develop an action plan under subsection (g), carry out activities
under the local program, and secure commitments of public and private resources through
a program coordinating committee established by the public housing agency under this
subsection.
(2) MEMBERSHIP.— The program coordinating committee may consist of
representatives of the public housing agency, the unit of general local government, the
local agencies (if any) responsible for carrying out 269programs under the Job Training
Partnership Act and the programs under title I of the Workforce Investment Act of 1998
or the Job Opportunities and Basic Skills Training Program under part F of title IV of the
Social Security Act, and other organizations, such as other State and local welfare and
employment agencies, public and private education or training institutions, nonprofit
service providers, and private businesses. The public housing agency may, in consultation
with the chief executive officer of the unit of general local government, utilize an existing
entity as the program coordinating committee if it meets the requirements of this
subsection.
(g) ACTION PLAN.—
(1) REQUIRED SUBMISSION.— The Secretary shall require each public housing
agency participating in the self-sufficiency program under this section to submit to the
Secretary, for approval by the Secretary, an action plan under this subsection in such form
and in accordance with such procedures as the Secretary shall require.
(2) DEVELOPMENT OF PLAN.— In developing the plan, the public housing agency
shall consult with the chief executive officer of the applicable unit of general local
265
Section 509(a)(2) of the QHWRA deleted section 23(d)(3). Section 509(b) of the QHWRA made this amendment effective upon enactment of
the QHWRA (October 21, 1998).
266
So in law. See section 185(b) of the Housing and Community Development Act of 1992, Pub. L. 102-550.
267
So in law. Probably intended to refer to paragraph (2).
268
Section 509(a)(3) of the QHWRA amended section 23(f)(1). Section 509(b) of the QHWRA made this amendment effective upon enactment of
the QHWRA (October 21, 1998).
269
Section 405(d)(31)(B) and section 405(f)(23)(B) of the Omnibus Act, 1999, amended section 23(f)(2) of the United States Housing Act of 1937.
167
government, the program coordinating committee established under subsection (f),
representatives of residents of the public housing, any local agencies responsible for
270
programs under the Job Training Partnership Act and the programs under title I of the
Workforce Investment Act of 1998 or the Job Opportunities and Basic Skills Training
Program under part F of title IV of the Social Security Act, other appropriate
organizations (such as other State and local welfare and employment or training
institutions, child care providers, nonprofit service providers, and private businesses), and
any other public and private service providers affected by the operation of the local
program.
(3) CONTENTS OF PLAN.— The Secretary shall require that the action plan contain
at a minimum—
(A) a description of the size, characteristics, and needs of the population of
the families expected to participate in the local self-sufficiency program;
(B) a description of the number of eligible participating families who can
reasonably be expected to receive supportive services under the program, based on
available and anticipated Federal, State, local, and private resources;
(C) a description of the services and activities under subsection (c)(2) to be
provided to families receiving assistance under this section through the section 8
and public housing programs, which shall be provided by both public and private
resources;
(D) a description of the incentives pursuant to subsection (d) offered by the
public housing agency to families to encourage participation in the program;
(E) a description of how the local program will deliver services and
activities according to the needs of the families participating in the program;
(F) a description of both the public and private resources that are expected
to be made available to provide the activities and services under the local program;
(G) a timetable for implementation of the local program;
(H) assurances satisfactory to the Secretary that development of the
services and activities under the local program has been coordinated with the Job
Opportunities and Basic Skills Training Program under part F of title IV of the
Social Security Act and 271program under the Job Training Partnership Act and any
other programs under title I of the Workforce Investment Act of 1998 and any
other relevant employment, child care, transportation, training, and education
programs in the applicable area, and that implementation will continue to be
coordinated, in order to avoid duplication of services and activities; and
(I) assurances satisfactory to the Secretary that nonparticipating families
will retain their rights to public housing or section 8 assistance notwithstanding the
provisions of this section.
(h) ALLOWABLE PUBLIC HOUSING AGENCY ADMINISTRATIVE FEES AND COSTS.—
(1) SECTION 8 FEES.— The Secretary shall establish a fee under section 8(q) for the
costs incurred in administering the provision of certificate and voucher assistance under
section 8 through the self-sufficiency program under this section. The fee shall be the fee
270
Section 405(d)(31)(C)(i) and section 405(f)(23)(C)(i) of the Omnibus Act, 1999, amended section 23(g)(2) of the United States Housing Act of
1937.
271
Section 405(d)(31)(C)(ii) and section 405(f)(23)(C)(ii) of the Omnibus Act, 1999, amended section 23(g)(3)(H) of the United States Housing
Act of 1937.
168
in effect under such section on June 1, 1990, except that for purposes of the fee under this
paragraph the applicable dollar amount for preliminary expenses under section
8(q)(2)(A)(i) shall, subject to approval in appropriations Acts, be $300. Upon the
submission by the Comptroller General of the United States of the report required under
section 554(b) of the Cranston-Gonzalez National Affordable Housing Act, the Secretary
shall revise the fee under this paragraph, taking into consideration the report of the
Comptroller General.
(2) PERFORMANCE FUNDING SYSTEM.— Notwithstanding any provision of section
9, the Secretary shall provide for inclusion under the performance funding system under
section 9 of reasonable and eligible administrative costs (including the costs of employing
a full-time service coordinator) incurred by public housing agencies carrying out local
programs under this section. The Secretary shall include an estimate of the administrative
costs likely to be incurred by participating public housing agencies in the annual budget
request for the Department of Housing and Urban Development for public housing
operating assistance under section 9 and shall include a request for such amounts in the
budget request. Of any amounts appropriated under section 9(c) for fiscal year 1993,
$25,000,000 is authorized to be used for costs under this paragraph, and of any amounts
appropriated under such section for fiscal year 1994, $25,900,000 is authorized to be used
for costs under this paragraph.
(i) PUBLIC HOUSING AGENCY INCENTIVE AWARD ALLOCATION.—
(1) IN GENERAL.— The Secretary shall carry out a competition for budget authority
for certificate and voucher assistance under section 8 and public housing development
assistance under section 5(a)(2) reserved under paragraph (4) and shall allocate such
budget authority to public housing agencies pursuant to the competition.
(2) CRITERIA.— The competition shall be based on successful and outstanding
implementation by public housing agencies of a local self-sufficiency program under this
section. The Secretary shall establish perfomance272 criteria for public housing agencies
carrying out such local programs and the Secretary shall cause such criteria to be
published in the Federal Register.
(3) USE.— Each public housing agency that receives an allocation of budget
authority under this subsection shall use such authority to provide assistance under the
local self-sufficiency program established by the public housing agency under this section.
(4) RESERVATION OF BUDGET AUTHORITY.— Notwithstanding section 213(d) of the
Housing and Community Development Act of 1974, the Secretary shall reserve for
allocation under this subsection not less than 10 percent of the portion of budget authority
appropriated in each of fiscal years 1991 and 1992 for section 8 that is available for
purposes of providing assistance under the existing housing certificate and housing
voucher programs for families not currently receiving assistance, and not less than 10
percent of the public housing development assistance available in such fiscal years for the
purpose under section 5(a)(2) (excluding amounts for major reconstruction of obsolete
projects).
(j) ON-SITE FACILITIES.— Each public housing agency carrying out a local program may,
subject to the approval of the Secretary, make available and utilize common areas or unoccupied
public housing units in public housing projects administered by the agency for the provision of
272
So in law.
169
supportive services under the local program. The use of the facilities of a public housing agency
under this subsection shall not affect the amount of assistance provided to the agency under
section 9.
(k) FLEXIBILITY.— In establishing and carrying out the self-sufficiency program under this
section, the Secretary shall allow public housing agencies, units of general local government, and
other organizations discretion and flexibility, to the extent practicable, in developing and carrying
out local programs.
(l) REPORTS.—
(1) TO SECRETARY.— Each public housing agency that carries out a local selfsufficiency program approved by the Secretary under this section shall submit to the
Secretary, not less than annually a report regarding the program. The report shall
include—
(A) a description of the activities carried out under the program;
(B) a description of the effectiveness of the program in assisting families to
achieve economic independence and self-sufficiency;
(C) a description of the effectiveness of the program in coordinating
resources of communities to assist families to achieve economic independence and
self-sufficiency; and
(D) any recommendations of the public housing agency or the appropriate
local program coordinating committee for legislative or administrative action that
would improve the self-sufficiency program carried out by the Secretary and
ensure the effectiveness of the program.
(2) HUD ANNUAL REPORT.— The Secretary shall submit to the Congress annually,
as a part of the report of the Secretary under section 8 of the Department of Housing and
Urban Development Act, a report summarizing the information submitted by public
housing agencies under paragraph (1). The report under this paragraph shall also include
any recommendations of the Secretary for improving the effectiveness of the selfsufficiency program under this section.
(m) GAO REPORT.— The Comptroller General of the United States may submit to the
Congress reports under this subsection evaluating and describing the Family Self-Sufficiency
program carried out by the Secretary under this section.
(n) DEFINITIONS.— As used in this section:
(1) The term "contract of participation" means a contract under subsection (c)
entered into by a public housing agency carrying out a local program under this section
and a participating family.
(2) The term "earned income" means income from wages, tips, salaries, and other
employee compensation, and any earnings from self-employment. The term does not
include any pension or annuity, transfer payments, or any cash or in-kind benefits.
(3) The term "eligible family" means a family whose head of household is not
elderly, disabled, pregnant, a primary caregiver for children under the age of 3, or for
whom the family self-sufficiency program would otherwise be unsuitable. Notwithstanding
the preceding sentence, a public housing agency may enroll such families if they choose to
participate in the program.
170
(4) The term "local program" means a program for providing supportive services
to participating families carried out by a public housing agency within the jurisdiction of
the public housing agency.
(5) The term "participating family" means a family that resides in public housing or
housing assisted under section 8 and elects to participate in a local self-sufficiency
program under this section.
(6) The term "vacant unit" means a dwelling unit that has been vacant for not less
than 9 consecutive months.
(o) EFFECTIVE DATE AND REGULATIONS.—
(1) REGULATIONS.— Not later than the expiration of the 180-day period beginning
on the date of the enactment of the Cranston-Gonzalez National Affordable Housing
Act,273 the Secretary shall by notice establish any requirements necessary to carry out this
section. Such requirements shall be subject to section 553 of title 5, United States Code.
The Secretary shall issue final regulations based on the notice not later than the expiration
of the 8-month period beginning on the date of the notice. Such regulations shall become
effective upon the expiration of the 1-year period beginning on the date of the publication
of the final regulations.
[(2) [Repealed.]]
274
SEC. 24. [42 U.S.C. 1437v] REVITALIZATION OF SEVERELY DISTRESSED
PUBLIC HOUSING.
(a) PROGRAM AUTHORITY.— The Secretary may make—
(1) planning grants under subsection (c) to enable applicants to develop
revitalization programs for severely distressed public housing in accordance with this
section; and
(2) implementation grants under subsection (d) to carry out revitalization programs
for severely distressed public housing in accordance with this section.
(b) DESIGNATION OF ELIGIBLE PROJECTS.—
(1) IDENTIFICATION.— Not later than 90 days after the date of enactment of the
Housing and Community Development Act of 1992275, public housing agencies shall
identify, in such form and manner as the Secretary may prescribe, any public housing
projects that they consider to be severely distressed public housing for purposes of
receiving assistance under this section.
(2) REVIEW BY SECRETARY.— The Secretary shall review the projects identified
pursuant to paragraph (1) to ascertain whether the projects are severely distressed housing
(as such item is defined in subsection (h)). Not later than 180 days after the date of
enactment of this section276, the Secretary shall publish a list of those projects that the
Secretary determines are severely distressed public housing.
(3) APPEAL OF SECRETARY'S DETERMINATION.— The Secretary shall establish
procedures for public housing agencies to appeal the Secretary's determination that a
project identified by a public housing agency is not severely distressed.
273
The date of enactment was november 28, 1990.
Section 535(a) amended section 24 to read as shown. Section 535(b) of the QHWRA made this amendment effective upon enactment of the
QHWRA (October 21, 1998).
275
The date of the enactment was October 28, 1992.
276
The date of the enactment was October 28, 1992.
274
171
(c) PLANNING GRANTS.—
(1) IN GENERAL.— The Secretary may make planning grants under this subsection
to applicants for the purpose of developing revitalization programs for severely distressed
public housing under this section.
(2) AMOUNT.— The amount of a planning grant under this subsection may not
exceed $200,000 per project, except that the Secretary may for good cause approve a
grant in a higher amount.
(3) ELIGIBLE ACTIVITIES.— A planning grant may be used for activities to develop
revitalization programs for severely distressed public housing, including—
(A) studies of the different options for revitalization, including the
feasibility, costs and neighborhood impact of such options;
(B) providing technical or organizational support to ensure resident
involvement in all phases of the planning and implementation processes;
(C) improvements to stabilize the development, including security
investments;
(D) conducting workshops to ascertain the attitudes and concerns of the
neighboring community;
(E) preliminary architectural and engineering work;
(F) planning for economic development, job training and self-sufficiency
activities that promote the economic self-sufficiency of residents under the
revitalization program;
(G) designing a suitable replacement housing plan, in situations where
partial or total demolition is considered;
(H) planning for necessary management improvements; and
(I) preparation of an application for an implementation grant under this
section.
(4) APPLICATIONS.— An application for a planning grant shall be submitted in such
form and in accordance with such procedures as the Secretary shall establish. The
Secretary shall require that an application contain at a minimum—
(A) a request for a planning grant, specifying the activities proposed, the
schedule for completing the activities, the personnel necessary to complete the
activities and the amount of the grant requested;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the project involved, and a description
of the composition of the tenants, including family size and income;
(D) a certification by the public official responsible for submitting the
comprehensive housing affordability strategy under section 105 of the CranstonGonzalez National Affordable Housing Act that the proposed activities are
consistent with the approved housing strategy of the State or unit of general local
government within which the project is located; and
(E) a certification that the applicant will comply with the requirements of
the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will
affirmatively further fair housing.
172
(5) SELECTION CRITERIA.— The Secretary shall, by regulation, establish selection
criteria for a national competition for assistance under this subsection, which shall
include—
(A) the qualities or potential capabilities of the applicant;
(B) the extent of resident interest and involvement in the development of a
revitalization program for the project;
(C) the extent of involvement of local public and private entities in the
development of a revitalization program for the project and in the provision of
supportive services to project residents;
(D) the potential of the applicant for developing a successful and affordable
revitalization program and the suitability of the project for such a program;
(E) national geographic diversity among housing for which applicants are
selected to receive assistance;
(F) the extent of the need for and potential impact of the revitalization
program; and
(G) such other factors that the Secretary determines are appropriate for
purposes of carrying out the program established by this section in an effective and
efficient manner.
(6) NOTIFICATION.— The Secretary shall notify each applicant, not later than 6
months after the date of the submission of the application, whether the application is
approved or disapproved.
(d) IMPLEMENTATION GRANTS.—
(1) IN GENERAL.— The Secretary may make implementation grants under this
subsection to applicants for the purpose of carrying out revitalization programs for
severely distressed public housing under this section.
(2) ELIGIBLE ACTIVITIES.— Implementation grants may be used for activities to
carry out revitalization programs for severely distressed public housing, including—
(A) architectural and engineering work;
(B) the redesign, reconstruction, or redevelopment of the severely
distressed public housing development, including the site on which the
development is located;
(C) covering the administrative costs of the applicant, which may not
exceed such portion of the assistance provided under this subsection as the
Secretary may prescribe;
(D) any necessary temporary relocation of tenants during the activity
specified under subparagraph (B);
(E) payment of legal fees;
(F) economic development activities that promote the economic selfsufficiency of residents under the revitalization program;
(G) necessary management improvements;
(H) transitional security activities; and
(I) any necessary support services, except that not more than 15 percent of
any grant under this subsection may be used for such purpose.
173
(3) APPLICATION.— An application for a implementation grant shall be submitted
by an applicant in such form and in accordance with such procedures as the Secretary shall
establish. The Secretary shall require that an application contain at a minimum—
(A) a request for an implementation grant, specifying the amount of the
grant requested and its proposed uses;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the project involved, and a description
of the composition of the tenants, including family size and income;
(D) a certification by the public official responsible for submitting the
comprehensive housing affordability strategy under section 105 of the CranstonGonzalez National Affordable Housing Act that the proposed activities are
consistent with the approved housing strategy of the State or unit of general local
government within which the project is located; and
(E) a certification that the applicant will comply with the requirements of
the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will
affirmatively further fair housing.
(4) SELECTION CRITERIA.— The Secretary shall, by regulation, establish selection
criteria for a national competition for assistance under this subsection, which shall
include—
(A) the qualities or potential capabilities of the applicant;
(B) the extent of resident involvement in the development of a
revitalization program for the project;
(C) the extent of involvement of local public and private entities in the
development of a revitalization program for the project and in the provision of
supportive services to project residents;
(D) the potential of the applicant for developing a successful and affordable
revitalization program and the suitability of the project for such a program;
(E) national geographic diversity among housing for which applicants are
selected to receive assistance;
(F) the extent of the need for and potential impact of the revitalization
program; and
(G) such other factors that the Secretary determines are appropriate for
purposes of carrying out the program established by this subtitle277 in an effective
and efficient manner.
(5) NOTIFICATION.— The Secretary shall notify each applicant, not later than 6
months after the date of the submission of the application, whether the application is
approved or disapproved.
(e)278 EXCEPTION TO GENERAL PROGRAM REQUIREMENTS.— The Secretary may waive or
revise rules established under this title governing rents, income eligibility, and other areas of
public housing management, to permit a public housing agency to undertake measures that
277
So in law. Probably intended to refer to this section.
Section 402(d)(6)(A)(vi) of The Balanced Budget Downpayment Act, I, Pub. L. 104-99, approved January 26, 1996, amended this subsection by
striking paragraph (2) (relating to selection of tenants for revitalization projects in accordance with the Federal preferences). Section 402(f) of such Act
provides as follows:
"(f) This section shall be effective upon the enactment of this Act and only for fiscal years 1996, 1997, and 1998.".
278
174
enhance the long-term viability of a severely distressed public housing project revitalized under
this section.
(f) OTHER PROGRAM REQUIREMENTS.—
(1) COST LIMITATIONS.— Subject to the provisions of this section, the Secretary—
(A) shall establish cost limitations on eligible activities under this section
sufficient to provide for effective revitalization programs; and
(B) may establish other cost limitations on eligible activities under this
section.
(2) Economic development.— Not more than an aggregate of $250,000 from
amounts made available under subsections (c) and (d) may be used for economic
development activities under subsections (c) and (d) for any project, except that the
Secretary may for good cause waive the applicability of this paragraph for a project.
(g) ADMINISTRATION.— For the purpose of carrying out the revitalization of severely
distressed public housing in accordance with this section, the Secretary shall establish within the
Department of Housing and Urban Development an Office of Severely Distressed Public Housing
Revitalization.
(h) DEFINITIONS.— For the purposes of this section:
(1) APPLICANT.— The term "applicant" means—
(A) any public housing agency that is not designated as troubled pursuant
to section 6(j)(2);
(B) any public housing agency or private housing management agent
selected, or receiver appointed pursuant, to section 6(j)(3);
(C) any public housing agency that is designated as troubled pursuant to
section 6(j)(2), if such agency acts in concert with a private nonprofit organization,
another public housing agency that is not designated as a troubled agency, resident
management corporation or other entity approved by the Secretary; and
(D) any public housing agency that is designated as troubled pursuant to
section 6(j)(2) that—
(i) is so designated principally for reasons that will not affect the
capacity of the agency to carry out a revitalization program;
(ii) is making substantial progress toward eliminating the
deficiencies of the agency; or
(iii) is otherwise determined by the Secretary to be capable of
carrying out a revitalization program.
(2) PRIVATE NONPROFIT CORPORATION.— The term "private nonprofit
organization" means any private nonprofit organization (including a State or locally
chartered nonprofit organization) that—
(A) is incorporated under State or local law;
(B) has no part of its net earnings inuring to the benefit of any member,
founder, contributor, or individual;
(C) complies with standards of financial accountability acceptable to the
Secretary; and
(D) has among its purposes significant activities related to the provision of
decent housing that is affordable to very low-income families.
175
(3) PUBLIC HOUSING AGENCY.— The term "public housing agency" has the meaning
given the term in section 3(b).
(4) RESIDENT MANAGEMENT CORPORATION.— The term "resident management
corporation" means a resident management corporation established in accordance with the
requirements of the Secretary under section 20.
(5) SEVERELY DISTRESSED PUBLIC HOUSING.— The term "severely distressed public
housing" means a public housing project—
(A) that—
(i) requires major redesign, reconstruction or redevelopment, or
partial or total demolition, to correct serious deficiencies in the original
design (including appropriately high population density), deferred
maintenance, physical deterioration or obsolescence of major systems and
other deficiencies in the physical plant of the project;
(ii) is occupied predominantly by families with children who are in a
severe state of distress, characterized by such factors as high rates of
unemployment, teenage pregnancy, single-parent households, long-term
dependency on public assistance and minimal educational achievement;
(iii) is in a location for recurrent vandalism and criminal activity
(including drug-related criminal activity); and
(iv) cannot remedy the elements of distress specified in clauses (i)
through (iii) through assistance under other programs, such as the
programs under section 9 or 14, or through other administrative means; or
(B) that—
(i) is owned by a public housing agency designated as troubled
pursuant to section 6(j)(2);
(ii) has a vacancy rate, as determined by the Secretary, of 50
percent or more, unless the project or building is vacant because it is
awaiting rehabilitation under a modernization program under section 14
that—
(I) has been approved and funded; and
(II) as determined by the Secretary, is on schedule and is
expected to result in full occupancy of the project or building upon
completion of the program; and
(iii) in the case of individual buildings, the building is, in the
Secretary's determination, sufficiently separable from the remainder of the
project to make use of the building feasible for purposes of this subtitle.279
(i) ANNUAL REPORT.— The Secretary shall submit to the Congress an annual report setting
forth—
(1) the number, type, and cost of public housing units revitalized pursuant to this
section;
(2) the status of projects identified as severely distressed public housing pursuant
to subsection (b);
(3) the amount and type of financial assistance provided under and in conjunction
with this section; and
279
So in law. Probably intended to refer to this section.
176
(4) the recommendations of the Secretary for statutory and regulatory
improvements to the program established by this section.
SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND
TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.
(a) PURPOSES.— The purpose of this section is to provide assistance to public housing
agencies for the purposes of—
(1) improving the living environment for public housing residents of severely
distressed public housing projects through the demolition, rehabilitation,
reconfiguration, or replacement of obsolete public housing projects (or portions thereof);
(2) revitalizing sites (including remaining public housing dwelling units) on which
such public housing projects are located and contributing to the improvement of the
surrounding neighborhood;
(3) providing housing that will avoid or decrease the concentration of very lowincome families; and
(4) building sustainable communities.
(b) GRANT AUTHORITY.— The Secretary may make grants as provided in this section to
applicants whose applications for such grants are approved by the Secretary under this section.
(c) CONTRIBUTION REQUIREMENT.—
(1) IN GENERAL.— The Secretary may not make any grant under this section to any
applicant unless the applicant certifies to the Secretary that the applicant will—
(A) supplement the aggregate amount of assistance provided under this
section with an amount of funds from sources other than this section equal to not
less than 5 percent of the amount provided under this section; and
(B) in addition to supplemental amounts provided in accordance with
subparagraph (A), if the applicant uses more than 5 percent of the amount of
assistance provided under this section for services under subsection (d)(1)(L),
provide supplemental funds from sources other than this section in an amount
equal to the amount so used in excess of 5 percent.
(2) SUPPLEMENTAL FUNDS.— In calculating the amount of supplemental funds
provided by a grantee for purposes of paragraph (1), the grantee may include amounts
from other Federal sources, any State or local government sources, any private
contributions, the value of any donated material or building, the value of any lease on a
building, the value of the time and services contributed by volunteers, and the value of
any other in-kind services or administrative costs provided.
(3) EXEMPTION.— If assistance provided under this title will be used only for
providing tenant-based assistance under section 8 or demolition of public housing
(without replacement), the Secretary may exempt the applicant from the requirements
under paragraph (1)(A).
(d) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.— Grants under this section may be used for activities to carry out
revitalization programs for severely distressed public housing, including—
(A) architectural and engineering work;
(B) redesign, rehabilitation, or reconfiguration of a severely distressed
public housing project, including the site on which the project is located;
(C) the demolition, sale, or lease of the site, in whole or in part;
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(D) covering the administrative costs of the applicant, which may not
exceed such portion of the assistance provided under this section as the Secretary
may prescribe;
(E) payment of reasonable legal fees;
(F) providing reasonable moving expenses for residents displaced as a
result of the revitalization of the project;
(G) economic development activities that promote the economic selfsufficiency of residents under the revitalization program;
(H) necessary management improvements;
(I) leveraging other resources, including additional housing resources,
retail supportive services, jobs, and other economic development uses on or near
the project that will benefit future residents of the site;
(J) replacement housing (including appropriate homeownership
downpayment assistance for displaced residents or other appropriate replacement
homeownership activities) and rental assistance under section 8;
(K) transitional security activities; and
(L) necessary supportive services, except that not more than 15 percent of
the amount of any grant may be used for activities under this paragraph.
(2) ENDOWMENT TRUST FOR SUPPORTIVE SERVICES.— In using grant amounts under
this section made available in fiscal year 2000 or thereafter for supportive services under
paragraph (1)(L), a public housing agency may deposit such amounts in an endowment
trust to provide supportive services over such period of time as the agency determines.
Such amounts shall be provided to the agency by the Secretary in a lump sum when
requested by the agency, shall be invested in a wise and prudent manner, and shall be
used (together with any interest thereon earned) only for eligible uses pursuant to
paragraph (1)(L). A public housing agency may use amounts in an endowment trust
under this paragraph in conjunction with other amounts donated or otherwise made
available to the trust for similar purposes.
(e) APPLICATION AND SELECTION.—
(1) APPLICATION.— An application for a grant under this section shall demonstrate
the appropriateness of the proposal in the context of the local housing market relative to
other alternatives, and shall include such other information and be submitted at such
time and in accordance with such procedures, as the Secretary shall prescribe.
(2) SELECTION CRITERIA.— The Secretary shall establish selection criteria for the
award of grants under this section and shall include such factors as—
(A) the relationship of the grant to the public housing agency plan for the
applicant and how the grant will result in a revitalized site that will enhance the
neighborhood in which the project is located and enhance economic opportunities
for residents;
(B) the capability and record of the applicant public housing agency, or
any alternative management entity for the agency, for managing large-scale
redevelopment or modernization projects, meeting construction timetables, and
obligating amounts in a timely manner;
(C) the extent to which the applicant could undertake such activities
without a grant under this section;
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(D) the extent of involvement of residents, State and local governments,
private service providers, financing entities, and developers, in the development
of a revitalization program for the project;
(E) the need for affordable housing in the community;
(F) the supply of other housing available and affordable to families
receiving tenant-based assistance under section 8;
(G) the amount of funds and other resources to be leveraged by the grant;
(H) the extent of the need for, and the potential impact of, the
revitalization program; and
(I) such other factors as the Secretary considers appropriate.
(3) APPLICABILITY OF SELECTION CRITERIA.— The Secretary may determine not to
apply certain of the selection criteria established pursuant to paragraph (2) when
awarding grants for demolition only, tenant-based assistance only, or other specific
categories of revitalization activities. This section may not be construed to require any
application for a grant under this section to include demolition of public housing or to
preclude use of grant amounts for rehabilitation or rebuilding of any housing on an
existing site.
(f) COST LIMITS.— Subject to the provisions of this section, the Secretary—
(1) shall establish cost limits on eligible activities under this section sufficient to
provide for effective revitalization programs; and
(2) may establish other cost limits on eligible activities under this section.
(g) DISPOSITION AND REPLACEMENT.— Any severely distressed public housing disposed of
pursuant to a revitalization plan and any public housing developed in lieu of such severely
distressed housing, shall be subject to the provisions of section 18. Severely distressed public
housing demolished pursuant to a revitalization plan shall not be subject to the provisions of
section 18.
(h) ADMINISTRATION BY OTHER ENTITIES.— The Secretary may require a grantee under this
section to make arrangements satisfactory to the Secretary for use of an entity other than the
public housing agency to carry out activities assisted under the revitalization plan, if the
Secretary determines that such action will help to effectuate the purposes of this section.
(i) WITHDRAWAL OF FUNDING.— If a grantee under this section does not proceed within a
reasonable timeframe, in the determination of the Secretary, the Secretary shall withdraw any
grant amounts under this section that have not been obligated by the public housing agency. The
Secretary shall redistribute any withdrawn amounts to one or more other applicants eligible for
assistance under this section or to one or more other entities capable of proceeding expeditiously
in the same locality in carrying out the revitalization plan of the original grantee.
(j) DEFINITIONS.— For purposes of this section, the following definitions shall apply:
(1) APPLICANT.— The term "applicant" means—
(A) any public housing agency that is not designated as troubled pursuant
to section 6(j)(2);
(B) any public housing agency for which a private housing management
agent has been selected, or a receiver has been appointed, pursuant to section
6(j)(3); and
(C) any public housing agency that is designated as troubled pursuant to
section 6(j)(2) and that—
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(i) is so designated principally for reasons that will not affect the
capacity of the agency to carry out a revitalization program;
(ii) is making substantial progress toward eliminating the
deficiencies of the agency; or
(iii) is otherwise determined by the Secretary to be capable of
carrying out a revitalization program.
(2) SEVERELY DISTRESSED PUBLIC HOUSING.— The term "severely distressed public
housing" means a public housing project (or building in a project)—
(A) that—
(i) requires major redesign, reconstruction or redevelopment, or
partial or total demolition, to correct serious deficiencies in the original
design (including inappropriately high population density), deferred
maintenance, physical deterioration or obsolescence of major systems and
other deficiencies in the physical plant of the project;
(ii) is a significant contributing factor to the physical decline of
and disinvestment by public and private entities in the surrounding
neighborhood;
(iii)(I) is occupied predominantly by families who are very lowincome families with children, are unemployed, and dependent on various
forms of public assistance; or
(II) has high rates of vandalism and criminal activity
(including drug-related criminal activity) in comparison to other
housing in the area;
(iv) cannot be revitalized through assistance under other
programs, such as the program for capital and operating assistance for
public housing under this Act, or the programs under sections 9 and 14 of
the United States Housing Act of 1937 (as in effect before the effective
date under under section 503(a) the Quality Housing and Work
Responsibility Act of 1998), because of cost constraints and inadequacy of
available amounts; and
(v) in the case of individual buildings, is, in the Secretary's
determination, sufficiently separable from the remainder of the project of
which the building is part to make use of the building feasible for
purposes of this section; or
(B) that was a project described in subparagraph (A) that has been legally
vacated or demolished, but for which the Secretary has not yet provided
replacement housing assistance (other than tenant-based assistance).
(3) SUPPORTIVE SERVICES.— The term "supportive services" includes all activities
that will promote upward mobility, self-sufficiency, and improved quality of life for the
residents of the public housing project involved, including literacy training, job training,
day care, transportation, and economic development activities.
(k) GRANTEE REPORTING.— The Secretary shall require grantees of assistance under this
section to report the sources and uses of all amounts expended for revitalization plans.
(l) ANNUAL REPORT.— The Secretary shall submit to the Congress an annual report setting
forth—
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(1) the number, type, and cost of public housing units revitalized pursuant to this
section;
(2) the status of projects identified as severely distressed public housing;
(3) the amount and type of financial assistance provided under and in conjunction
with this section; and
(4) the recommendations of the Secretary for statutory and regulatory
improvements to the program established by this section.
(m) FUNDING.—
(1) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated
for grants under this section $600,000,000 for fiscal year 1999 and such sums as may be
necessary for each of fiscal years 2000, 2001, and 2002.
(2) TECHNICAL ASSISTANCE AND PROGRAM OVERSIGHT.— Of the amount
appropriated pursuant to paragraph (1) for any fiscal year, the Secretary may use up to 2
percent for technical assistance or contract expertise. Such assistance or contract
expertise may be provided directly or indirectly by grants, contracts, or cooperative
agreements, and shall include training, and the cost of necessary travel for participants
in such training, by or to officials of the Department of Housing and Urban
Development, of public housing agencies, and of residents.
(n) SUNSET.— No assistance may be provided under this section after September 30, 2002.
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SEC. 25. [42 U.S.C. 1437w] CHOICE IN PUBLIC HOUSING MANAGEMENT.
(a) SHORT TITLE.— This section may be cited as the "Choice in Public Housing
Management Act of 1992".
(b) FUNDING.—
(1) REHABILITATION AND REDEVELOPMENT GRANTS.— From amounts reserved
under section 14(k)(2) for each of fiscal years 1993 and 1994, the Secretary may reserve
not more than $50,000,000 in each such fiscal year for activities under this section (which
may include funding operating reserves for eligible housing transferred under this section).
The Secretary may make grants to managers and ownership entities to rehabilitate eligible
housing in accordance with this section, as appropriate.
(2) TECHNICAL ASSISTANCE.— The Secretary may use up to 5 percent of the total
amount reserved under paragraph (1) for any fiscal year to provide, by contract, technical
assistance to residents of public housing and resident councils to help such residents and
councils make informed choices about options for alternative management under this
section.
(c) PROGRAM AUTHORITY.—
(1) TRANSFER OF MANAGEMENT.—
(A) IN GENERAL.— The Secretary may approve not more than 25
applications submitted for fiscal years 1993 and 1994 by resident councils for the
transfer of the management of distressed public housing projects, or one or more
buildings within projects, that are owned or operated by troubled public housing
agencies, from public housing agencies to alternative managers.
(B) REQUIRED VOTES.— An application for such transfer may be submitted
and approved only if a majority of the members of the board of the resident council
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Section 534 of the QHWRA amended section 25 to read as shown.
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has voted in favor of the proposed transfer of management responsibilities, and a
majority of the residents has also voted in favor of the transfer in an election
supervised by a disinterested third party.
(C) ASSISTANCE OF MANAGEMENT SPECIALIST.— Any resident council
seeking to transfer management of distressed public housing under this section
shall, in cooperation with the public housing agency for such housing, select a
qualified public housing management specialist to assist in identifying and
acquiring a capable manager for the housing.
(2) REHABILITATION AND CAPITAL IMPROVEMENTS.— The Secretary may make
rehabilitation grants and provide capital improvement funding under subsection (e) in
connection with the transfer of eligible housing to a manager under this section.
(d) OPERATING SUBSIDIES.—
(1) AUTHORITY TO PROVIDE.— The Secretary may make operating subsidies under
section 9 available to managers under this section.
(2) AMOUNT OF SUBSIDY.— The Secretary shall establish the amount of the
operating subsidies made available to a manager based on the share for the housing under
section 9 as determined by the Secretary.
(3) EFFECT ON PHA GRANT.— Operating subsidies for any public housing agency
transferring management under this section shall be reduced in accordance with the
requirements of section 9.
(e) REHABILITATION GRANTS AND CAPITAL IMPROVEMENT FUNDING.—
(1) REHABILITATION GRANTS.— An application under subsection (f) may request
approval of amounts set aside under subsection (b) for the rehabilitation of eligible
housing. The manager and the Secretary shall enter into a contract governing the use of
any such assistance provided.
(2) ANNUAL CAPITAL IMPROVEMENT FUNDING.—
(A) AUTHORITY TO PROVIDE.— The Secretary may make funding for capital
improvements available annually from amounts under section 14 to managers of
eligible housing. In accordance with the contract entered into pursuant to
subsection (h), each manager receiving such funding shall establish a capital
improvements reserve account and deposit in the account each year an amount not
less than the annual amount of comprehensive grant funds it receives. Amounts in
the reserve account may be used only for capital improvements and replacements.
(B) AMOUNT OF SUBSIDY.— The Secretary shall establish the amount made
available to a manager under paragraph (1) for capital improvements based on the
share for the housing under the comprehensive grant formula and, to the extent
practicable, the public housing agency's comprehensive grant plan, in accordance
with section 14, as determined by the Secretary.
(C) LIMITATION IN THE CASE OF RECENT REHABILITATION.— Where eligible
housing has received rehabilitation funding under paragraph (1) or has otherwise
been comprehensively modernized within 3 years before the effective date of the
contract between the Secretary and the manager for management of the eligible
housing, only the accrual portion of the comprehensive grant formula amount shall
be available for payment to the manager.
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(D) EFFECT ON PHA GRANT.— The formula amount of a comprehensive
grant for a public housing agency transferring the housing under this section shall
be reduced in accordance with the requirements of section 14.
(3) RELATIONSHIP TO SECTION 14.— The provisions of section 14 shall apply with
respect to rehabilitation grants under paragraph (1) or capital improvement funding under
paragraph (2); except that the Secretary may waive the applicability of any of the
provisions of such section where such provisions are not appropriate to the assistance
under this subsection.
(f) APPLICATION.—
(1) FORM AND PROCEDURES.—
(A) IN GENERAL.— To be eligible for approval for transfer of management
from a public housing agency to a manager and for a grant under subsection (e), a
resident council shall submit an application to the Secretary in such form and in
accordance with such procedures as the Secretary shall establish.
(B) PHA COMMENT ON APPLICATION.— A resident council submitting an
application shall provide the public housing agency that owns or operates the
housing involved a reasonable opportunity to comment on the application, as the
Secretary shall prescribe.
(C) PHA PROPOSAL.— The public housing agency may present to the
resident council a proposal for the continued management of the housing by the
agency, and the resident council shall give reasonable consideration to any such
proposal.
(2) MINIMUM REQUIREMENTS.— The Secretary shall require that an application
contain—
(A) a description of the resident council and documentation of its authority;
(B) documentation of the votes required under subsection (c)(1)(B);
(C) a description of the proposed manager selected by the applicant (in
accordance with procedures established or approved by the Secretary) and
documentation of its capacity to manage the eligible housing;
(D) a plan for carrying out the manager's responsibilities for managing the
eligible housing;
(E) documentation that the project (or building or buildings) for which
management transfer is proposed is eligible housing;
(F) documentation that each of the requirements under paragraph (1)(B)
have been fulfilled;
(G)(i) if the application includes a request for a rehabilitation grant under
subsection (e) (which shall be included in any application involving eligible housing
that is 50 percent or more vacant), the basis for the estimate of the amount
requested, including—
(I) the estimate of the eligible housing's need under the public
housing agency's comprehensive plan (under section 14(e)(1)); and
(II) an explanation, where appropriate, if an amount higher than the
amount planned by the agency is being requested; or
(ii) if the application does not include a request for a rehabilitation grant
under subsection (e), a demonstration that needs for capital improvements and
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replacement for the housing can reasonably be expected to be funded from funding
for capital improvements under subsection (e);
(H) if the manager proposes to administer a program to enable residents to
achieve economic independence and self-sufficiency, a description of the program
and evidence of commitment of resources to the program;
(I) an analysis showing that the planned rehabilitation will result in the
long-term viability of the housing at a reasonable cost;
(J) a certification that the manager will comply with the requirements of the
Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will
affirmatively further fair housing; and
(K) such other information that the Secretary considers appropriate.
(g) REVIEW AND APPROVAL BY THE SECRETARY.—
(1) APPLICATIONS NOT REQUESTING REHABILITATION ASSISTANCE.— In the case of
applications for the transfer of management of public housing that do not include a request
for rehabilitation assistance under subsection (e), the Secretary may approve an
application that meets the requirements of subsection (f)(2) and this section.
(2) APPLICATIONS REQUESTING REHABILITATION GRANTS.— In the case of
applications that include a request for rehabilitation assistance under subsection (e), the
Secretary shall select applicants for approval based on a national competition. The
Secretary shall, by regulation, establish selection criteria for the competition which provide
for separate rating of applicants under this paragraph and of applicants under this section,
and for selections from a single list of all applicants. The criteria shall include—
(A) the quality of the plan for rehabilitating the eligible housing;
(B) the extent of the capacity or potential capacity of the proposed
manager to manage the housing and to carry out the rehabilitation program;
(C) the extent to which a program is proposed to enable residents to
achieve economic independence and self-sufficiency;
(D) the extent to which the planned rehabilitation will result in the longterm viability of the housing at a reasonable cost; and
(E) such other criteria as the Secretary may require.
(h) CONTRACT BETWEEN SECRETARY AND MANAGER.—
(1) TERMS.— After the Secretary approves an application, the Secretary shall enter
into a contract with the manager for transfer of management of the eligible housing. In
addition to other contract provisions required under this section, the contract shall—
(A) give the manager the right to receive operating subsidies under
subsection (d) and capital improvement funding under subsection (e);
(B) require the manager to carry out all management responsibilities for the
eligible housing, as provided in or required by the contract;
(C) require the manager to carry out, for the eligible housing, all
management responsibilities applicable to public housing agencies owning or
operating public housing projects, including (i) maintaining the units in decent,
safe, and sanitary condition in accordance with any standards for public housing
established or adopted by the Secretary, (ii) determining eligibility of applicants for
occupancy of units subject to the requirements of this Act, (iii) terminating tenancy
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in accordance with the procedures applicable to the section 8 new construction
program, and (iv) determining the amount of rent paid for units in accordance with
this Act; and
(D) permit, but not require, the manager to select applicants from the
public housing waiting list maintained by the public housing agency.
(2) EXTENSION, EXPIRATION, AND TERMINATION.—
(A) IN GENERAL.— The Secretary shall provide for a resident council that
has entered into a contract under this subsection to—
(i) approve the renewal of the contract between the Secretary and
the manager; or
(ii) disapprove renewal and submit an application to the Secretary,
in accordance with subsection (f), proposing another manager, which may
be the public housing agency.
(B) DEFAULT.— If the Secretary determines that a manager is in default of
its responsibilities under the contract, the Secretary may require the resident
council to submit another application proposing a different manager, which may be
the public housing agency.
(i) OTHER PROGRAM REQUIREMENTS.—
(1) COST LIMITATIONS.— The Secretary may establish cost limitations on activities
under this section. The amount of rehabilitation funds under subsection (e)(1) that may be
approved may not exceed the per unit cost limit applicable to the comprehensive grant
program under section 14.
(2) DEMOLITION AND DISPOSITION NOT PERMITTED.— A manager may not demolish
or dispose of eligible housing under this section.
(3) CAPABILITY OF RESIDENT MANAGEMENT CORPORATIONS.— To be eligible to
become a manager under this section, a resident management corporation—
(A) shall demonstrate to the Secretary its ability to manage public housing
effectively and efficiently, as determined by the Secretary, which shall include
evidence of its most recent financial audit; or
(B) shall arrange for operation of the housing by a qualified management
entity.
(4) LIMITATIONS ON PHA LIABILITY.— A public housing agency shall not be liable
for any act or failure to act by the manager or resident council.
(5) BONDING AND INSURANCE.— Before assuming any management responsibility
for eligible housing, a manager shall obtain fidelity bonding and insurance, or equivalent
protection, in accordance with regulations and requirements established by the Secretary.
Such bonding and insurance, or its equivalent, shall be adequate to protect the Secretary
and the public housing agency against loss, theft, embezzlement, or fraudulent acts on the
part of the manager or its employees.
(6) RESTRICTION ON DISPLACEMENT BEFORE TRANSFER.— A public housing agency
may not involuntarily displace, as determined by the Secretary, any resident of eligible
housing during the period beginning on the date that an application under subsection (f) is
submitted by a resident council, and ending upon transfer of management of the housing
or, if the application is disapproved, the date of the disapproval.
(j) PERFORMANCE REVIEW AND COMPLIANCE.—
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(1) MONITORING.— The Secretary shall monitor the performance of managers
under this section and shall assess their management performance using the performance
indicators established under section 6(j)(1).
(2) RECORDS, REPORTS, AND AUDITS OF MANAGERS.—
(A) KEEPING OF RECORDS.— Each manager and resident council under this
subtitle281 shall keep such records as may be reasonably necessary to disclose the
amount and the disposition by the manager of the proceeds of assistance received
under this section and to ensure compliance with the requirements of this section.
(B) ACCESS TO DOCUMENTS.—
(i) SECRETARY.— The Secretary shall have access for the purpose
of audit and examination to any books, documents, papers, and records of
a manager, resident council, and public housing agency that are pertinent to
assistance received under, and to the requirements of, this section.
(ii) GAO.— The Comptroller General of the United States, and any
duly authorized representatives of the Comptroller General, shall have
access for the purpose of audit and examination to any books, documents,
papers, and records of a manager and resident council that are pertinent to
assistance received under, and to the requirements of, this section.
(C) REPORTING REQUIREMENTS.— Each manager shall submit to the
Secretary such reports as the Secretary determines appropriate to carry out the
Secretary's responsibilities under this section, including an annual financial audit.
(D) ANNUAL REPORT.— The Secretary shall submit an annual report to the
Congress evaluating management transfers under this section compared to other
methods of dealing with severely distressed public housing.
(k) NONDISCRIMINATION.— No person in the United States shall, on the grounds of race,
color, national origin, religion, or sex, be excluded from participation in, be denied the benefits of,
or be subjected to discrimination under, any program or activity funded in whole or in part with
funds made available under this section. Any prohibition against discrimination on the basis of age
under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped
individual as provided in section 504 of the Rehabilitation Act of 1973 shall also apply to any such
program or activity.
(l) RELATIONSHIP TO OTHER PROGRAMS.—
(1) HOMEOWNERSHIP.— After a transfer of management in accordance with this
section, the eligible housing shall remain eligible for assistance under title III and for sale
under section 5(h). Participation in a homeownership program shall be consistent with a
contract between the Secretary and a manager.
(2) SELF-SUFFICIENCY.— Where an application under subsection (f) proposes a
program to enable residents to achieve economic independence and self-sufficiency,
consistent with the objectives of the program under section 23, and demonstrates that the
manager has the capacity to carry out a self-sufficiency program, the Secretary may
approve such a program. Where such a program is approved, the Secretary shall authorize
the manager to adopt policies consistent with section 23(d) (relating to maximum rents
and escrow savings accounts) and section 23(e) (relating to effect of increases in family
income).
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So in law. Probably intended to refer to this section.
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(m) DEFINITIONS.— For purposes of this section:
(1) The term "eligible housing" means a public housing project, or one or more
buildings within a project, that—
(A) is owned or operated by a troubled public housing agency; and
(B) has been identified as severely distressed under section 24 of this Act.
In the case of an individual building, the building shall, in the determination of the Secretary, be
sufficiently separable from the remainder of the project to make use of the building feasible for
purposes of this section.
(2) The term "manager" means one of the following entities that has entered into a
contract with the Secretary for the management of eligible housing under this section:
(A) A public or private nonprofit organization (including, as determined by
the Secretary, such an organization sponsored by the public housing agency).
(B) A for-profit entity, if it has (i) demonstrated experience in providing
low-income housing, and (ii) is participating in joint venture with an organization
described in paragraph (3).
(C) A State or local government, including an agency or instrumentality
thereof.
(D) A public housing agency (other than the public housing agency that
owns the project).
The term does not include a resident council.
(3) The term "private nonprofit organization" means any private nonprofit
organization (including a State or locally chartered nonprofit organization) that—
(A) is incorporated under State or local law;
(B) has no part of its net earnings inuring to the benefit of any member,
founder, contributor, or individual;
(C) complies with standards of financial accountability acceptable to the
Secretary; and
(D) has among its purposes significant activities related to the provision of
decent housing that is affordable to low-income families.
The term includes resident management corporations.
(4) The term "public housing agency" has the meaning given such term in section
3(b).
(5) The term "public nonprofit organization" means any public nonprofit entity,
except the public housing agency that owns the eligible housing.
(6) The term "resident council" means any nonprofit organization or association
that—
(A) is representative of the residents of the eligible housing;
(B) adopts written procedures providing for the election of officers on a
regular basis; and
(C) has a democratically elected governing board, elected by the residents
of the eligible housing.
(7) The term "resident management corporation" means a resident management
corporation established in accordance with the requirements of the Secretary under section
20.
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(8) The term "troubled public housing agency" means a public housing agency with
250 or more units that—
(A) has been designated as a troubled public housing agency for the current
Federal fiscal year, and for the 2 preceding Federal fiscal years—
(i) under section 6(j)(2)(A)(i); or
(ii) before the implementation of such authority, under any other
procedure for designating troubled public housing agencies that was used
by the Sec-retary and is determined by the Secretary to be appropriate for
purposes of this section; and
(B) has not met targets for improved performance under section 6(j)(2)(C).
SEC. 25. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT
MANAGER AT REQUEST OF RESIDENTS.
(a) AUTHORITY.— The Secretary may transfer the responsibility and authority for
management of specified housing (as such term is defined in subsection (h)) from a public
housing agency to an eligible management entity, in accordance with the requirements of this
section, if—
(1) a request for transfer of management of such housing is made and approved
in accordance with subsection (b); and
(2) the Secretary or the public housing agency, as appropriate pursuant to
subsection (b), determines that—
(A) due to the mismanagement of the agency, such housing has deferred
maintenance, physical deterioration, or obsolescence of major systems and other
deficiencies in the physical plant of the project;
(B) such housing is located in an area such that the housing is subject to
recurrent vandalism and criminal activity (including drug-related criminal
activity); and
(C) the residents can demonstrate that the elements of distress for such
housing specified in subparagraphs (A) and (B) can be remedied by an entity or
entities, identified by the residents, that has or have a demonstrated capacity to
manage, with reasonable expenses for modernization.
(b) REQUEST FOR TRANSFER.— The responsibility and authority for managing specified
housing may be transferred only pursuant to a request made by a majority vote of the residents
for the specified housing that—
(1) in the case of specified housing that is owned by a public housing agency that
is designated as a troubled agency under section 6(j)(2)—
(A) is made to the public housing agency or the Secretary; and
(B) is approved by the agency or the Secretary; or
(2) in the case of specified housing that is owned by a public housing agency that
is not designated as a troubled agency under section 6(j)(2)—
(A) is made to and approved by the public housing agency; or
(B) if a request is made to the agency pursuant to subparagraph (A) and is
not approved, is subsequently made to and approved by the Secretary.
(c) CAPITAL AND OPERATING ASSISTANCE.— Pursuant to a contract under subsection (d),
the Secretary shall require the public housing agency for specified housing to provide to the
manager for the housing, from any assistance from the Capital and Operating Funds under
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section 9 for the agency, fair and reasonable amounts for the housing for eligible capital and
operating activities under subsection (d)(1) and (e)(1) of section 9. The amount made available
under this subsection to a manager shall be determined by the Secretary based on the share for
the specified housing of the aggregate amount of assistance from such Funds for the public
housing agency transferring the housing, taking into consideration the operating and capital
improvement needs of the specified housing, the operating and capital improvement needs of the
remaining public housing units managed by the public housing agency, and the public housing
agency plan of such agency.
(d) CONTRACT BETWEEN SECRETARY AND MANAGER.—
(1) REQUIREMENTS.— Pursuant to the approval of a request under this section for
transfer of the management of specified housing, the Secretary shall enter into a contract
with the eligible management entity.
(2) TERMS.— A contract under this subsection shall contain provisions
establishing the rights and responsibilities of the manager with respect to the specified
housing and the Secretary and shall be consistent with the requirements of this Act
applicable to public housing projects.
(e) COMPLIANCE WITH PUBLIC HOUSING AGENCY PLAN.— A manager of specified housing
under this section shall comply with the approved public housing agency plan applicable to the
housing and shall submit such information to the public housing agency from which
management was transferred as may be necessary for such agency to prepare and update its
public housing agency plan.
(f) DEMOLITION AND DISPOSITION BY MANAGER.— A manager under this section may
demolish or dispose of specified housing only if, and in the manner, provided for in the public
housing agency plan for the agency transferring management of the housing.
(g) LIMITATION ON PHA LIABILITY.— A public housing agency that is not a manager for
specified housing shall not be liable for any act or failure to act by a manager or resident
council for the specified housing.
(h) DEFINITIONS.— For purposes of this section, the following definitions shall apply:
(1) ELIGIBLE MANAGEMENT ENTITY.— The term "eligible management entity"
means, with respect to any public housing project, any of the following entities:
(A) NONPROFIT ORGANIZATION.— A public or private nonprofit
organization, which may—
(i) include a resident management corporation; and
(ii) not include the public housing agency that owns or operates
the project.
(B) FOR-PROFIT ENTITY.— A for-profit entity that has demonstrated
experience in providing low-income housing.
(C) STATE OR LOCAL GOVERNMENT.— A State or local government, including
an agency or instrumentality thereof.
(D) PUBLIC HOUSING AGENCY.— A public housing agency (other than the
public housing agency that owns or operates the project).
The term does not include a resident council.
(2) MANAGER.— The term "manager" means any eligible management entity that
has entered into a contract under this section with the Secretary for the management of
specified housing.
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(3) NONPROFIT.— The term "nonprofit" means, with respect to an organization,
association, corporation, or other entity, that no part of the net earnings of the entity
inures to the benefit of any member, founder, contributor, or individual.
(4) PRIVATE NONPROFIT ORGANIZATION.— The term "private nonprofit
organization" means any private organization (including a State or locally chartered
organization) that—
(A) is incorporated under State or local law;
(B) is nonprofit in character;
(C) complies with standards of financial accountability acceptable to the
Secretary; and
(D) has among its purposes significant activities related to the provision
of decent housing that is affordable to low-income families.
(5) PUBLIC NONPROFIT ORGANIZATION.— The term "public nonprofit organization"
means any public entity that is nonprofit in character.
(6) SPECIFIED HOUSING.— The term "specified housing" means a public housing
project or projects, or a portion of a project or projects, for which the transfer of
management is requested under this section. The term includes one or more contiguous
buildings and an area of contiguous row houses, but in the case of a single building, the
building shall be sufficiently separable from the remainder of the project of which it is
part to make transfer of the management of the building feasible for purposes of this
section.
SEC. 26. [42 U.S.C. 1437x] ENVIRONMENTAL REVIEWS.
(a) IN GENERAL.—
(1) RELEASE OF FUNDS.— In order to assure that the policies of the National
Environmental Policy Act of 1969 and other provisions of law which further the purposes
of such Act (as specified in regulations issued by the Secretary) are most effectively
implemented in connection with the expenditure of funds under this title, and to assure to
the public undiminished protection of the environment, the Secretary may, under such
regulations, in lieu of the environmental protection procedures otherwise applicable,
provide for the release of funds for projects or activities under this title, as specified by the
Secretary upon the request of a public housing agency under this section, if the State or
unit of general local government, as designated by the Secretary in accordance with
regulations, assumes all of the responsibilities for environmental review, decisionmaking,
and action pursuant to such Act, and such other provisions of law as the regulations of the
Secretary may specify, which would otherwise apply to the Secretary with respect to the
release of funds.
(2) IMPLEMENTATION.— The Secretary, after consultation with the Council on
Environmental Quality, shall issue such regulations as may be necessary to carry out this
section. Such regulations shall specify the programs to be covered.
(b) PROCEDURE.— The Secretary shall approve the release of funds subject to the
procedures authorized by this section only if, not less than 15 days prior to such approval and
prior to any commitment of funds to such projects or activities, the public housing agency has
submitted to the Secretary a request for such release accompanied by a certification of the State
or unit of general local government which meets the requirements of subsection (c). The
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Secretary's approval of any such certification shall be deemed to satisfy the Secretary's
responsibilities under the National Environmental Policy Act of 1969 and such other provisions of
law as the regulations of the Secretary specify insofar as those responsibilities relate to the release
of funds which are covered by such certification.
(c) CERTIFICATION.— A certification under the procedures authorized by this section
shall—
(1) be in a form acceptable to the Secretary;
(2) be executed by the chief executive officer or other officer of the State or unit of
general local government who qualifies under regulations of the Secretary;
(3) specify that the State or unit of general local government under this section has
fully carried out its responsibilities as described under subsection (a); and
(4) specify that the certifying officer—
(A) consents to assume the status of a responsible Federal official under the
National Environmental Policy Act of 1969 and each provision of law specified in
regulations issued by the Secretary insofar as the provisions of such Act or other
such provision of law apply pursuant to subsection (a); and
(B) is authorized and consents on behalf of the State or unit of general
local government and himself or herself to accept the jurisdiction of the Federal
courts for the purpose of enforcement of his or her responsibilities as such an
official.
(d) APPROVAL BY STATES.— In cases in which a unit of general local government carries
out the responsibilities described in subsection (c), the Secretary may permit the State to perform
those actions of the Secretary described in subsection (b) and the performance of such actions by
the State, where permitted by the Secretary, shall be deemed to satisfy the Secretary's
responsibilities referred to in the second sentence of subsection (b).
SEC. 27. [42 U.S.C. 1437y] PROVISION OF INFORMATION TO LAW
ENFORCEMENT AND OTHER AGENCIES.
Notwithstanding any other provision of law, the Secretary shall, at least 4 times annually
and upon request of the Immigration and Naturalization Service (hereafter in this section referred
to as the "Service"), furnish the Service with the name and address of, and other identifying
information on, any individual who the Secretary knows is not lawfully present in the United
States, and shall ensure that each contract for assistance entered into under section 6 or 8 of this
Act with a public housing agency provides that the public housing agency shall furnish such
information at such times with respect to any individual who the public housing agency knows is
not lawfully present in the United States.
SEC. 28. [42 U.S.C. 1437z] EXCHANGE OF INFORMATION WITH LAW
ENFORCEMENT AGENCIES.
Notwithstanding any other provision of law, each public housing agency that enters into a
contract for assistance under section 6 or 8 of this Act with the Secretary shall furnish any
Federal, State, or local law enforcement officer, upon the request of the officer, with the current
address, Social Security number, and photograph (if applicable) of any recipient of assistance
under this Act, if the officer—
(1) furnishes the public housing agency with the name of the recipient; and
191
(2) notifies the agency that—
(A) such recipient—
(i) is fleeing to avoid prosecution, or custody or confinement after
conviction, under the laws of the place from which the individual flees, for
a crime, or attempt to commit a crime, which is a felony under the laws of
the place from which the individual flees, or which, in the case of the State
of New Jersey, is a high misdemeanor under the laws of such State; or
(ii) is violating a condition of probation or parole imposed under
Federal or State law; or
(iii) has information that is necessary for the officer to conduct the
officer's official duties;
(B) the location or apprehension of the recipient is within such officer's
official duties; and
(C) the request is made in the proper exercise of the officer's official duties.
SEC. 29. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.
(a) IN GENERAL.—
(1) EFFECT ON OTHER REMEDIES.— The penalties set forth in this section shall be in
addition to any other available civil remedy or any available criminal penalty, and may be
imposed regardless of whether the Secretary imposes other administrative sanctions.
(2) FAILURE OF SECRETARY.— The Secretary may not impose penalties under this
section for a violation, if a material cause of the violation is the failure of the Secretary, an
agent of the Secretary, or a public housing agency to comply with an existing agreement.
(b) VIOLATIONS OF HOUSING ASSISTANCE PAYMENT CONTRACTS FOR WHICH PENALTY
MAY BE IMPOSED.—
(1) LIABLE PARTIES.— The Secretary may impose a civil money penalty under this
section on—
(A) any owner of a property receiving project-based assistance under
section 8;
(B) any general partner of a partnership owner of that property; and
(C) any agent employed to manage the property that has an identity of
interest with the owner or the general partner of a partnership owner of the
property.
(2) VIOLATIONS.— A penalty may be imposed under this section for a knowing and
material breach of a housing assistance payments contract, including the following—
(A) failure to provide decent, safe, and sanitary housing pursuant to section
8; or
(B) knowing or willful submission of false, fictitious, or fraudulent
statements or requests for housing assistance payments to the Secretary or to any
department or agency of the United States.
(3) AMOUNT OF PENALTY.— The amount of a penalty imposed for a violation under
this subsection, as determined by the Secretary, may not exceed $25,000 per violation.
(c) AGENCY PROCEDURES.—
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(1) ESTABLISHMENT.— The Secretary shall issue regulations establishing standards
and procedures governing the imposition of civil money penalties under subsection (b).
These standards and procedures—
(A) shall provide for the Secretary or other department official to make the
determination to impose the penalty;
(B) shall provide for the imposition of a penalty only after the liable party
has received notice and the opportunity for a hearing on the record; and
(C) may provide for review by the Secretary of any determination or order,
or interlocutory ruling, arising from a hearing and judicial review, as provided
under subsection (d).
(2) FINAL ORDERS.—
(A) IN GENERAL.— If a hearing is not requested before the expiration of the
15-day period beginning on the date on which the notice of opportunity for hearing
is received, the imposition of a penalty under subsection (b) shall constitute a final
and unappealable determination.
(B) EFFECT OF REVIEW.— If the Secretary reviews the determination or
order, the Secretary may affirm, modify, or reverse that determination or order.
(C) FAILURE TO REVIEW.— If the Secretary does not review that
determination or order before the expiration of the 90-day period beginning on the date on which
the determination or order is issued, the determination or order shall be final.
(3) FACTORS IN DETERMINING AMOUNT OF PENALTY.— In determining the amount
of a penalty under subsection (b), the Secretary shall take into consideration—
(A) the gravity of the offense;
(B) any history of prior offenses by the violator (including offenses
occurring before the enactment of this section);
(C) the ability of the violator to pay the penalty;
(D) any injury to tenants;
(E) any injury to the public;
(F) any benefits received by the violator as a result of the violation;
(G) deterrence of future violations; and
(H) such other factors as the Secretary may establish by regulation.
(4) PAYMENT OF PENALTY.— No payment of a civil money penalty levied under this
section shall be payable out of project income.
(d) JUDICIAL REVIEW OF AGENCY DETERMINATION.— Judicial review of determinations
made under this section shall be carried out in accordance with section 537(e) of the National
Housing Act.
(e) REMEDIES FOR NONCOMPLIANCE.—
(1) JUDICIAL INTERVENTION.—
(A) IN GENERAL.— If a person or entity fails to comply with the
determination or order of the Secretary imposing a civil money penalty under
subsection (b), after the determination or order is no longer subject to review as
provided by subsections (c) and (d), the Secretary may request the Attorney
General of the United States to bring an action in an appropriate United States
district court to obtain a monetary judgment against that person or entity and such
other relief as may be available.
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(B) FEES AND EXPENSES.— Any monetary judgment awarded in an action
brought under this paragraph may, in the discretion of the court, include the
attorney's fees and other expenses incurred by the United States in connection with
the action.
(2) NONREVIEWABILITY OF DETERMINATION OR ORDER.— In an action under this
subsection, the validity and appropriateness of the determination or order of the Secretary
imposing the penalty shall not be subject to review.
(f) SETTLEMENT BY SECRETARY.— The Secretary may compromise, modify, or remit any
civil money penalty which may be, or has been, imposed under this section.
(g) DEPOSIT OF PENALTIES.—
(1) IN GENERAL.— Notwithstanding any other provision of law, if the mortgage
covering the property receiving assistance under section 8 is insured or was formerly
insured by the Secretary, the Secretary shall apply all civil money penalties collected under
this section to the appropriate insurance fund or funds established under this Act, as
determined by the Secretary.
(2) EXCEPTION.— Notwithstanding any other provision of law, if the mortgage
covering the property receiving assistance under section 8 is neither insured nor formerly
insured by the Secretary, the Secretary shall make all civil money penalties collected under
this section available for use by the appropriate office within the Department for
administrative costs related to enforcement of the requirements of the various programs
administered by the Secretary.
(h) DEFINITIONS.— In this section—
(1) the term "agent employed to manage the property that has an identity of
interest" means an entity—
(A) that has management responsibility for a project;
(B) in which the ownership entity, including its general partner or partners
(if applicable), has an ownership interest; and
(C) over which such ownership entity exerts effective control; and
(2) the term "knowing" means having actual knowledge of or acting with
deliberate ignorance of or reckless disregard for the prohibitions under this section.
SEC. 30.282 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 housing project or other property of the public housing agency.
(b) TERMS AND CONDITIONS.— In making any authorization under subsection (a), the
Secretary may consider—
(1) the ability of the public housing agency to use the proceeds of the mortgage or
security interest for low-income housing uses;
(2) the ability of the public housing agency to make payments on the mortgage or
security interest; and
(3) such other criteria as the Secretary may specify.
(c) NO FEDERAL LIABILITY.— No action taken under this section shall result in any liability
to the Federal Government.
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Section 516 of the QHWRA added section 30.
194
SEC. 31.283 PET OWNERSHIP IN PUBLIC HOUSING.
(a) OWNERSHIP CONDITIONS.— A resident of a dwelling unit in public housing (as such
term is defined in subsection (c)) 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 public housing agency, if the resident maintains each pet responsibly and in
accordance with applicable State and local public health, animal control, and animal anticruelty laws and regulations and with the policies established in the public housing agency plan
for the agency.
(b) REASONABLE REQUIREMENTS.— The reasonable requirements referred to in subsection
(a) may include—
(1) 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;
(2) limitations on the number of animals in a unit, based on unit size;
(3) prohibitions on—
(A) types of animals that are classified as dangerous; and
(B) individual animals, based on certain factors, including the size and
weight of the animal; and
(4) restrictions or prohibitions based on size and type of building or project, or
other relevant conditions.
(c) PET OWNERSHIP IN PUBLIC HOUSING DESIGNATED FOR OCCUPANCY BY ELDERLY OR
HANDICAPPED FAMILIES.— For purposes of this section, the term "public housing" has the
meaning given the term in section 3(b), except that such term does not include any public
housing that is federally assisted rental housing for the elderly or handicapped, as such term is
defined in section 227(d) of the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
1701r-1(d)).
(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. 32284. RESIDENT HOMEOWNERSHIP PROGRAMS.
(a) IN GENERAL.— A public housing agency may carry out a homeownership program in
accordance with this section and the public housing agency plan of the agency to make public
housing dwelling units, public housing projects, and other housing projects available for
purchase by low-income families for use only as principal residences for such families. An
agency may transfer a unit pursuant to a homeownership program only if the program is
authorized under this section and approved by the Secretary.
(b) PARTICIPATING UNITS.— A program under this section may cover any existing public
housing dwelling units or projects, and may include other dwelling units and housing owned,
283
284
Section 526 of the QHWRA added section 31.
Section 536 of the QHWRA added section 32.
195
assisted, or operated, or otherwise acquired for use under such program, by the public housing
agency.
(c) ELIGIBLE PURCHASERS.—
(1) LOW-INCOME REQUIREMENT.— Only low-income families assisted by a public
housing agency, other low-income families, and entities formed to facilitate such sales by
purchasing units for resale to low-income families shall be eligible to purchase housing
under a homeownership program under this section.
(2) OTHER REQUIREMENTS.— A public housing agency may establish other
requirements or limitations for families to purchase housing under a homeownership
program under this section, including requirements or limitations regarding employment
or participation in employment counseling or training activities, criminal activity,
participation in homeownership counseling programs, evidence of regular income, and
other requirements. In the case of purchase by an entity for resale to low-income
families, the entity shall sell the units to low-income families within 5 years from the date
of its acquisition of the units. The entity shall use any net proceeds from the resale and
from managing the units, as determined in accordance with guidelines of the Secretary,
for housing purposes, such as funding resident organizations and reserves for capital
replacements.
(d) 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.
(e) PROTECTION OF NONPURCHASING RESIDENTS.— If a public housing resident does not
exercise the right of first refusal under subsection (d) with respect to the public housing unit in
which the resident resides, the public housing agency—
(1) shall notify the resident residing in the unit 90 days prior to the displacement
date except in cases of imminent threat to health or safety, consistent with any guidelines
issued by the Secretary governing such notifications, that—
(A) the public housing unit will be sold;
(B) the transfer of possession of the unit will occur until the resident is
relocated; and
(C) each resident displaced by such action will be offered comparable
housing—
(i) that meets housing quality standards;
(ii) that is located in an area that is generally not less desirable
than the location of the displaced resident's housing; and
(iii) which may include—
(I) tenant-based assistance, except that the requirement
under this subclause regarding offering of comparable housing
shall be fulfilled by use of tenant-based assistance only upon the
relocation of such resident into such housing;
(II) project-based assistance; or
(III) occupancy in a unit owned, operated, or assisted by
the public housing agency 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;
196
(2) shall provide for the payment of the actual and reasonable relocation
expenses of the resident to be displaced;
(3) shall ensure that the displaced resident is offered comparable housing in
accordance with the notice under paragraph (1);
(4) shall provide any necessary counseling for the displaced resident; and
(5) shall not transfer possession of the unit until the resident is relocated.
(f) FINANCING AND ASSISTANCE.— A homeownership program under this section may
provide financing for acquisition of housing by families purchasing under the program, or for
acquisition of housing by the public housing agency for sale under the program, in any manner
considered appropriate by the agency (including sale to a resident management corporation).
(g) DOWNPAYMENT REQUIREMENT.—
(1) IN GENERAL.— Each family purchasing housing under a homeownership
program under this section shall be required to provide from its own resources a
downpayment in connection with any loan for acquisition of the housing, in an amount
determined by the public housing agency. Except as provided in paragraph (2), the
agency shall permit the family to use grant amounts, gifts from relatives, contributions
from private sources, and similar amounts as downpayment amounts in such purchase.
(2) DIRECT FAMILY CONTRIBUTION.— In purchasing housing pursuant to this
section, each family shall contribute an amount of the downpayment, from resources of
the family other than grants, gifts, contributions, or other similar amounts referred to in
paragraph (1), that is not less than 1 percent of the purchase price.
(h) OWNERSHIP INTERESTS.— A homeownership program under this section may provide
for sale to the purchasing family of any ownership interest that the public housing agency
considers appropriate under the program, including ownership in fee simple, a condominium
interest, an interest in a limited dividend cooperative, a shared appreciation interest with a
public housing agency providing financing.
(i) RESALE.—
(1) AUTHORITY AND LIMITATION.— A homeownership program under this section
shall permit the resale of a dwelling unit purchased under the program by an eligible
family, but shall provide such limitations on resale as the agency considers appropriate
(whether the family purchases directly from the agency or from another entity) for the
agency to recapture—
(A) some or all of the economic gain derived from any such resale
occurring during the 5-year period beginning upon purchase of the dwelling unit
by the eligible family; and
(B) after the expiration of such 5-year period, only such amounts as are
equivalent to the assistance provided under this section by the agency to the
purchaser.
(2) CONSIDERATIONS.— The limitations referred to in paragraph (1)(A) may
provide for consideration of the aggregate amount of assistance provided under the
program to the family, the contribution to equity provided by the purchasing eligible
family, the period of time elapsed between purchase under the homeownership program
and resale, the reason for resale, any improvements to the property made by the eligible
family, any appreciation in the value of the property, and any other factors that the
agency considers appropriate.
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(j) NET PROCEEDS.— The net proceeds of any sales under a homeownership program
under this section remaining after payment of all costs of the sale shall be used for purposes
relating to low-income housing and in accordance with the public housing agency plan of the
agency carrying out the program.
(k) HOMEOWNERSHIP ASSISTANCE.— From amounts distributed to a public housing agency
under the Capital Fund under section 9(d), 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.
(l) INAPPLICABILITY OF DISPOSITION REQUIREMENTS.— The provisions of section 18 shall
not apply to disposition of public housing dwelling units under a homeownership program under
this section.
SEC. 33285. REQUIRED 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 that meet all of the following requirements:
(1) The project is on the same or contiguous sites.
(2) The project is determined by the public housing agency 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) The project—
(A) is 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; or
(B) has an estimated cost, during the remaining useful life of the project,
of continued operation and modernization as public housing that 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).
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Section 537(a) of the QHWRA added section 33. Additional information from section 537 of the QHWRA: "(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.
(c) Transition.—
(1) Use of amounts.— Any amounts made available to a public housing agency to carry out section 202 of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (enacted as section 101(e) of the
Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104-134; 110 Stat. 1321-279)) may be used, to the extent or in
such amounts as are or have been provided in advance in appropriation Acts, to carry out section 33 of the United States Housing Act of 1937
(as added by subsection (a) of this section).
(2) Savings provision.— Notwithstanding the amendments made by this section, section 202 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 14371 note) and any regulations
implementing such section, as in effect immediately before the enactment of this Act, shall continue to apply to public housing developments
identified by the Secretary or a public housing agency for conversion pursuant to that section or for assessment of whether such conversion is
required prior to enactment of this Act."
198
(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) PLAN FOR REMOVAL OF UNITS FROM INVENTORIES OF PHA'S.—
(1) DEVELOPMENT.— Each public housing agency shall develop and carry out a 5year 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.
(2) APPROVAL.— Each plan required under paragraph (1) shall—
(A) be included as part of the public housing agency plan;
(B) 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
(C) include a description of any disposition and demolition plan for the
public housing units.
(3) 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.
(4) REVIEW BY 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 budget authority available to a public housing agency to provide
assistance under this Act to families residing in any public housing project that, pursuant
to this section, is removed from the inventory of the agency and the annual contributions
contract of the agency.
(2) CONVERSION REQUIREMENTS.— Each agency carrying out a plan under
subsection (c) for removal of public housing dwelling units from the inventory of the
agency shall—
(A) notify each family residing in a public housing project to be converted
under the plan 90 days prior to the displacement date, except in cases of
199
imminent threat to health or safety, 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; and
(ii) 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, except that the
requirement under this clause regarding offering of
comparable housing shall be fulfilled by use of tenantbased assistance only upon the relocation of such family
into such housing;
(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) provide any necessary counseling for families displaced by such action;
(C) ensure that, if the project (or portion) converted is used as housing after such
conversion, each resident may choose to remain in their dwelling unit in the project and
use the tenant-based assistance toward rent for that unit;
(D) ensure that each displaced resident is offered comparable housing in
accordance with the notice under subparagraph (A); and
(E) provide any actual and reasonable relocation expenses for families displaced
by such action.
(e) CESSATION OF UNNECESSARY SPENDING.— Notwithstanding any other provision of law,
if, in the determination of the Secretary, a project or projects of a public housing agency meet or
are likely to meet the criteria set forth in subsection (a), the Secretary may direct the agency to
cease additional spending in connection with such project or projects until the Secretary
determines or approves an appropriate course of action with respect to such project or projects
under this section, except to the extent that failure to expend such amounts would endanger the
health or safety of residents in the project or projects.
(f) USE OF BUDGET AUTHORITY.— Notwithstanding any other provision of law, if a project
or projects are identified pursuant to subsection (a), the Secretary may authorize or direct the
transfer, to the tenant-based assistance program of such agency or to appropriate site
revitalization or other capital improvements approved by the Secretary, of—
(1) in the case of an agency receiving assistance under the comprehensive
improvement assistance program, any amounts obligated by the Secretary for the
modernization of such project or projects pursuant to section 14 of the United States
Housing Act of 1937 (as in effect immediately before the effective date under section
503(a) of the Quality Housing and Work Responsibility Act of 1998);
(2) in the case of an agency receiving public housing modernization assistance by
formula pursuant to such section 14, any amounts provided to the agency which are
200
attributable pursuant to the formula for allocating such assistance to such project or
projects;
(3) in the case of an agency receiving assistance for the major reconstruction of
obsolete projects, any amounts obligated by the Secretary for the major reconstruction of
such project or projects pursuant to section 5(j)(2) of the United States Housing Act of
1937, as in effect immediately before the effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of 1998; and
(4) in the case of an agency receiving assistance pursuant to the formulas under
section 9, any amounts provided to the agency which are attributable pursuant to the
formulas for allocating such assistance to such project or projects.
(g) 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.
(h) 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 shall not apply to the demolition of
public housing projects removed from the inventory of the public housing agency under
this section.
SEC. 34286. SERVICES FOR PUBLIC HOUSING RESIDENTS.
(a) IN GENERAL.— To the extent that amounts are 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 provide supportive
services to public housing residents or assist such residents in becoming economically selfsufficient.
(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 or provide supportive
services for such residents, including activities relating to—
(1) physical improvements to a public housing project in order to provide space
for supportive services for residents;
286
Section 538(a) of the QHWRA added section 34. Additional information from section 538: "(b) Assessment and Report by Secretary.— Not
later than 3 years after the date of the enactment of the Quality Housing and Work Responsibility Act of 1998, the Secretary of Housing and
Urban Development shall—
(1) conduct an evaluation and assessment of grants carried out by resident organizations, and particularly of the effect of the grants
on living conditions in public housing; and
(2) submit to the Congress a report setting forth the findings of the Secretary as a result of the evaluation and assessment and
including any recommendations the Secretary determines to be appropriate.
This subsection shall take effect on the date of the enactment of this Act."
201
(2) the provision of service coordinators or a congregate housing services
program for elderly individuals, 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 amounts 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. Such supplemental amounts may include—
(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 ORGANIZATIONS.— To the extent that there are a sufficient
number of qualified applications for assistance under this section, not less than 25 percent of
any amounts appropriated to carry out this section shall be provided directly to resident
councils, resident organizations, and resident management corporations. In any case in which a
resident council, resident organization, or resident management corporation lacks adequate
expertise, the Secretary may require the council, organization, or corporation to utilize other
qualified organizations as contract administrators with respect to financial assistance provided
under this section.
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SEC. 35287. MIXED FINANCE PUBLIC HOUSING.
(a) AUTHORITY.— A public housing agency may own, operate, assist, or otherwise
participate in 1 or more mixed-finance projects in accordance with this section.
(b) ASSISTANCE.—
(1) FORMS.— A public housing agency may provide to a mixed-finance project
assistance from the Operating Fund under section 9, assistance from the Capital Fund
under such section, or both forms of assistance. A public housing agency may, in
accordance with regulations established by the Secretary, provide capital assistance to a
mixed-finance project in the form of a grant, loan, guarantee, or other form of
investment in the project, which may involve drawdown of funds on a schedule
commensurate with construction draws for deposit into an interest-bearing escrow
account to serve as collateral or credit enhancement for bonds issued by a public agency,
or for other forms of public or private borrowings, for the construction or rehabilitation
of the development.
(2) USE.— To the extent deemed appropriate by the Secretary, assistance used in
connection with the costs associated with the operation and management of mixedfinance projects may be used for 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.
(c) COMPLIANCE WITH PUBLIC HOUSING REQUIREMENTS.— The units assisted with capital
or operating assistance in a mixed-finance project shall be developed, operated, and maintained
in accordance with the requirements of this Act relating to public housing during the period
required by under this Act, unless otherwise specified in this section. For purposes of this Act,
any reference to public housing owned or operated by a public housing agency shall include
dwelling units in a mixed finance project that are assisted by the agency with capital or
operating assistance.
(d) MIXED-FINANCE PROJECTS.—
(1) IN GENERAL.— For purposes of this section, the term "mixed-finance project"
means a project that meets the requirements of paragraph (2) and is financially assisted
by private resources, which may include low-income housing tax credits, in addition to
amounts provided under this Act.
(2) TYPES OF PROJECTS.— The term 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 the right of first
refusal and first option to purchase, after the close of the compliance period, of
the qualified low-income building in which the public housing units exist in
accordance with section 42(i)(7) of the Internal Revenue Code of 1986; or
287
Section 539 of the QHWRA added section 35. Additional information from section 539: "(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 3(b) of the United States
Housing Act of 1937 (as amended by this Act)."
203
(D) in accordance with such other terms and conditions as the Secretary
may prescribe by regulation.
(e) STRUCTURE OF PROJECTS.— Each mixed-finance project shall be developed—
(1) in a manner that ensures that public housing units are made available in the
project, by regulatory and operating agreement, master contract, individual lease,
condominium or cooperative agreement, or equity interest;
(2) 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 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, or as may otherwise be approved by the
Secretary; and
(3) in accordance with such other requirements as the Secretary may prescribe by
regulation.
(f) TAXATION.—
(1) IN GENERAL.— A public housing agency may elect to exempt all public housing
units in a mixed-finance project—
(A) from the provisions of section 6(d), and instead subject such units to
local real estate taxes; and
(B) from the finding of need and cooperative agreement provisions under
section 5(e)(1)(ii) and 5(e)(2), but only if the development of the units is not
inconsistent with the jurisdiction's comprehensive housing affordability strategy.
(2) LOW-INCOME HOUSING TAX CREDIT.— With respect to any unit in a mixedfinance 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, provided that
such levels for public housing residents do not exceed the amounts allowable under
section 3.
(g) USE OF SAVINGS.— Notwithstanding any other provision of this Act, to the extent
deemed appropriate by the Secretary, to facilitate the establishment of socioeconomically mixed
communities, a public housing agency that uses assistance from the Capital Fund for a mixedfinance project, to the extent that income from such a project reduces the amount of assistance
used for operating or other costs relating to public housing, may use such resulting savings to
rent privately developed dwelling units in the neighborhood of the mixed-finance project. Such
units shall be made available for occupancy only by low-income families eligible for residency in
public housing.
(h) EFFECT OF CERTAIN CONTRACT TERMS.— If an entity that owns or operates a mixedfinance project, that includes a significant number of units other than public housing units 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
204
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.
[TITLE II— ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES]
[Note.— Title II of the United States Housing Act of 1937 established low-income
housing programs for Indians and Alaska Natives. Title II was repealed by section 501(a) of the
Native American Housing Assistance and Self-Determination Act of 1996 (Public Law 104-330).
For provisions regarding termination of assistance under such programs see sections 502, 503,
and 507 of such Act, set forth in Part VII of this compilation.]
TITLE III288— HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP
SEC. 301. [42 U.S.C. 1437aaa] PROGRAM AUTHORITY.
(a) IN GENERAL.— The Secretary is authorized to make—
(1) planning grants to help applicants to develop homeownership programs in
accordance with this title; and
(2) implementation grants to carry out homeownership programs in accordance
with this title.
(b) AUTHORITY TO RESERVE HOUSING ASSISTANCE.— In connection with a grant under
this title, the Secretary may reserve authority to provide assistance under section 8 of this Act to
the extent necessary to provide replacement housing and rental assistance for a nonpurchasing
tenant who resides in the project on the date the Secretary approves the application for an
implementation grant, for use by the tenant in another project.
SEC. 302. [42 U.S.C. 1437aaa-1] PLANNING GRANTS.
(a) GRANTS.— The Secretary is authorized to make planning grants to applicants for the
purpose of developing homeownership programs under this title. The amount of a planning grant
under this section may not exceed $200,000, except that the Secretary may for good cause
approve a grant in a higher amount.
(b) ELIGIBLE ACTIVITIES.— Planning grants may be used for activities to develop
homeownership programs (which may include programs for cooperative ownership), including—
(1) development of resident management corporations and resident councils;
(2) training and technical assistance for applicants related to development of a
specific homeownership program;
(3) studies of the feasibility of a homeownership program;
288
Subtitle A of title IV of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, amended the United States Housing Act of
1937 by adding this title and making various related amendments. Section 419 of such Act provides as follows:
"SEC. 419. APPLICABILITY TO INDIAN PUBLIC HOUSING.
"In accordance with section 201(b)(2) of the United States Housing Act of 1937, the amendments made by this subtitle shall also apply to public
housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority,
except that nothing in this title affects the program under section 202 of such Act.".
205
(4) inspection for lead-based paint hazards, as required by section 302(a) of the
Lead-Based Paint Poisoning Prevention Act;
(5) preliminary architectural and engineering work;
(6) tenant and homebuyer counseling and training;
(7) planning for economic development, job training, and self-sufficiency activities
that promote economic self-sufficiency of homebuyers and homeowners under the
homeownership program;
(8) development of security plans; and
(9) preparation of an application for an implementation grant under this title.
(c) APPLICATION.—
(1) FORM AND PROCEDURES.— An application for a planning grant shall be
submitted by an applicant in such form and in accordance with such procedures as the
Secretary shall establish.
(2) MINIMUM REQUIREMENTS.— The Secretary shall require that an application
contain at a minimum—
(A) a request for a planning grant, specifying the activities proposed to be
carried out, the schedule for completing the activities, the personnel necessary to
complete the activities, and the amount of the grant requested;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the public housing project or projects
involved, and a description of the composition of the tenants, including family size
and income;
(D) a certification by the public official responsible for submitting the
comprehensive housing affordability strategy under section 105 of the CranstonGonzalez National Affordable Housing Act that the proposed activities are
consistent with the approved housing strategy of the State or unit of general local
government within which the project is located (or, during the first 12 months after
enactment of the Cranston-Gonzalez National Affordable Housing Act,289 that the
application is consistent with such other existing State or local housing plan or
strategy that the Secretary shall determine to be appropriate); and
(E) a certification that the applicant will comply with the requirements of
the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will
affirmatively further fair housing.
(d) SELECTION CRITERIA.— The Secretary shall, by regulation, establish selection criteria
for a national competition for assistance under this section, which shall include—
(1) the qualifications or potential capabilities of the applicant;
(2) the extent of tenant interest in the development of a homeownership program
for the project;
(3) the potential of the applicant for developing a successful and affordable
homeownership program and the suitability of the project for homeownership;
(4) national geographic diversity among projects for which applicants are selected
to receive assistance; and
289
The date of enactment was November 28, 1990.
206
(5) such other factors that the Secretary shall require that (in the determination of
the Secretary) are appropriate for purposes of carrying out the program established by this
title in an effective and efficient manner.
SEC. 303. [42 U.S.C. 1437aaa-2] IMPLEMENTATION GRANTS.
(a) GRANTS.— The Secretary is authorized to make implementation grants to applicants
for the purpose of carrying out homeownership programs approved under this title.
(b) ELIGIBLE ACTIVITIES.— Implementation grants may be used for activities to carry out
homeownership programs (including pro-grams for cooperative ownership) that meet the
requirements under this subtitle, including the following activities:
(1) Architectural and engineering work.
(2) Implementation of the homeownership program, including acquisition of the
public housing project from a public housing agency for the purpose of transferring
ownership to eligible families in accordance with a homeownership program that meets the
requirements under this title.
(3) Rehabilitation of any public housing project covered by the homeownership
program, in accordance with standards established by the Secretary.
(4) Abatement of lead-based paint hazards, as required by section 302(a) of the
Lead-Based Paint Poisoning Prevention Act.
(5) Administrative costs of the applicant, which may not exceed 15 percent of the
amount of assistance provided under this section.
(6) Development of resident management corporations and resident management
councils, but only if the applicant has not received assistance under section 302 for such
activities.
(7) Counseling and training of homebuyers and homeowners under the
homeownership program.
(8) Relocation of tenants who elect to move.
(9) Any necessary temporary relocation of tenants during rehabilitation.
(10) Funding of operating expenses and replacement reserves of the project
covered by the homeownership program, except that the amount of assistance for
operating expenses shall not exceed the amount the project would have received if it had
continued to receive such assistance 290under section 9from the Operating Fund, with
adjustments comparable to those that would have been made under section 9.291
(11) Implementation of a replacement housing plan.
(12) Legal fees.
(13) Defraying costs for the ongoing training needs of the recipient that are related
to developing and carrying out the homeownership program.
(14) Economic development activities that promote economic self-sufficiency of
homebuyers, residents, and homeowners under the homeownership program.
(c) MATCHING FUNDING.—
290
Section 519(c)(1) of the QHWRA amended section 303(b)(10).
Section 181(g)(1)(B) of the Housing and Community Development Act of 1992, Pub. L. 102-550, provides as follows:
"(B) Operating subsidies.— Section 303(b)(9) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437aaa-2(b)(9)) is amended
by inserting before the period at the end the following: `, and except that implementation grants may not be used under this paragraph to fund operating
expenses for scattered site public housing acquired under a homeownership program'.".
The amendment could not be executed and was probably intended to be made to this paragraph of the United States Housing Act of 1937.
291
207
(1) IN GENERAL.— Each recipient shall assure that contributions equal to not less
than 25 percent of the grant amount made available under this section, excluding any
amounts provided for post-sale operating expenses and replacement housing, shall be
provided from non-Federal sources to carry out the homeownership program.
(2) FORM.— Such contributions may be in the form of—
(A) cash contributions from non-Federal resources, which may not include
Federal tax expenditures or funds from a grant made under section 106(b) or
section 106(d) of the Housing and Community Development Act of 1974;
(B) payment of administrative expenses, as defined by the Secretary, from
non-Federal resources, including funds from a grant made under section 106(b) or
section 106(d) of the Housing and Community Development Act of 1974;
(C) the value of taxes, fees, or other charges that are normally and
customarily imposed but are waived, foregone, or deferred in a manner that
facilitates the implementation of a homeownership program assisted under this
subtitle;
(D) the value of land or other real property as appraised according to
procedures acceptable to the Secretary;
(E) the value of investment in on-site and off-site infrastructure required
for a homeownership program assisted under this subtitle; or
(F) such other in-kind contributions as the Secretary may approve.
Contributions for administrative expenses shall be recognized only up to an amount equal
to 7 percent of the total amount of grants made available under this section.
(3) REDUCTION OF REQUIREMENT.— The Secretary shall reduce the matching
requirement for homeownership programs carried out under this section in accordance
with the formula established under section 220(d) of the Cranston-Gonzalez National
Affordable Housing Act.
(d) APPLICATION.—
(1) FORM AND PROCEDURE.— An application for an implementation grant shall be
submitted by an applicant in such form and in accordance with such procedures as the
Secretary shall establish.
(2) MINIMUM REQUIREMENTS.— The Secretary shall require that an application
contain at a minimum—
(A) a request for an implementation grant, specifying the amount of the
grant requested and its proposed uses;
(B) if applicable, an application for assistance under section 8 of this Act,
which shall specify the proposed uses of such assistance and the period during
which the assistance will be needed;
(C) a description of the qualifications and experience of the applicant in
providing housing for low-income families;
(D) a description of the proposed homeownership program, consistent with
section 304 and the other requirements of this title, which shall specify the
activities proposed to be carried out and their estimated costs, identifying
reasonable schedules for carrying it out, and demonstrating that the program will
comply with the affordability requirements under section 304(b);
208
(E) identification and description of the public housing project or projects
involved, and a description of the composition of the tenants, including family size
and income;
(F) a description of and commitment for the resources that are expected to
be made available to provide the matching funding required under subsection (c)
and of other resources that are expected to be made available in support of the
homeownership program;
(G) identification and description of the financing proposed for any (i)
rehabilitation and (ii) acquisition (I) of the property, where applicable, by a
resident council or other entity for transfer to eligible families, and (II) by eligible
families of ownership interests in, or shares representing, units in the project;
(H) if the applicant is not a public housing agency, the proposed sales
price, if any, the basis for such price determination, and terms to the applicant;
(I) the estimated sales prices, if any, and terms to eligible families;
(J) any proposed restrictions on the resale of units under a homeownership
program;
(K) identification and description of the entity that will operate and manage
the property;
(L) a certification by the public official responsible for submitting the
comprehensive housing affordability strategy under section 105 of the CranstonGonzalez National Affordable Housing Act that the proposed activities are
consistent with the approved housing strategy of the State or unit of general local
government within which the project is located (or, during the first 12 months after
enactment of the Cranston-Gonzalez National Affordable Housing Act,292 that the
application is consistent with such other existing State or local housing plan or
strategy that the Secretary shall determine to be appropriate); and
(M) a certification that the applicant will comply with the requirements of
the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will
affirmatively further fair housing.
(e) SELECTION CRITERIA.— The Secretary shall establish selection criteria for a national
competition for assistance under this section, which shall include—
(1) the ability of the applicant to develop and carry out the proposed
homeownership program, taking into account the quality of any related ongoing program
of the applicant, and the extent of tenant interest in the development of a homeownership
program and community support;
(2) the feasibility of the homeownership program;
(3) the extent to which current tenants and other eligible families will be able to
afford the purchase;
(4) the quality and viability of the proposed homeownership program, including the
viability of the economic self-sufficiency plan;
(5) the extent to which funds for activities that do not qualify as eligible activities
will be provided in support of the homeownership program;
292
The date of enactment was November 28, 1990.
209
(6) whether the approved comprehensive housing affordability strategy for the
jurisdiction within which the public housing project is located includes the proposed
homeownership program as one of the general priorities identified pursuant to section
105(b)(7) of the Cranston-Gonzalez National Affordable Housing Act;
(7) national geographic diversity among housing for which applicants are selected
to receive assistance; and
(8) the extent to which a sufficient supply of affordable rental housing exists in the
locality, so that the implementation of the homeownership program will not reduce the
number of such rental units available to residents currently residing in such units or eligible
for residency in such units.
(f) LOCATION WITHIN PARTICIPATING JURISDICTIONS.— The Secretary may approve
applications for grants under this title only for public housing projects located within the
boundaries of jurisdictions—
(1) which are participating jurisdictions under title III of the Cranston-Gonzalez
National Affordable Housing Act; or
(2) on behalf of which the agency responsible for affordable housing has submitted
a housing strategy or plan.
(g) APPROVAL.— The Secretary shall notify each applicant, not later than 6 months after
the date of the submission of the application, whether the application is approved or not
approved. The Secretary may approve the application for an implementation grant with a
statement that the application for the section 8 assistance for replacement housing and for
residents of the project not purchasing units is conditionally approved, subject to the availability
of appropriations in subsequent fiscal years.
SEC. 304. [42 U.S.C. 1437aaa-3] HOMEOWNERSHIP PROGRAM REQUIREMENTS.
(a) IN GENERAL.— A homeownership program under this title shall provide for acquisition
by eligible families of ownership interests in, or shares representing, at least one-half of the units
in a public housing project under any arrangement determined by the Secretary to be appropriate,
such as cooperative ownership (including limited equity cooperative ownership) and fee simple
ownership (including condominium ownership), for occupancy by the eligible families.
(b) AFFORDABILITY.— A homeownership program under this title shall provide for the
establishment of sales prices (including principal, insurance, taxes, and interest and closing costs)
for initial acquisition of the property from the public housing agency if the applicant is not a public
housing agency, and for sales to eligible families, such that an eligible family shall not be required
to expend more than 30 percent of the adjusted income of the family per month to complete a sale
under the homeownership program.
(c) PLAN.— A homeownership program under this title shall provide, and include a plan,
for—
(1) identifying and selecting eligible families to participate in the homeownership
program;
(2) providing relocation assistance to families who elect to move;
(3) ensuring continued affordability by tenants, homebuyers, and homeowners in
the project;
(4) providing ongoing training and counseling for homebuyers and homeowners;
and
210
(5) replacing units in eligible projects covered by a homeownership program.
(d) ACQUISITION AND REHABILITATION LIMITATIONS.— Acquisition or rehabilitation of
public housing projects under a homeownership program under this title may not consist of
acquisition or rehabilitation of less than the whole public housing project in a project consisting of
more than 1 building. The provisions of this subsection may be waived upon a finding by the
Secretary that the sale of less than all the buildings in a project is feasible and will not result in a
hardship to any tenants of the project who are not included in the homeownership program.
(e) FINANCING.—
(1) IN GENERAL.— The application shall identify and describe the proposed
financing for (A) any rehabilitation, and (B) acquisition (i) of the project, where
applicable, by an entity other than the public housing agency for transfer to eligible
families, and (ii) by eligible families of ownership interests in, or shares representing, units
in the project. Financing may include use of the implementation grant, sale for cash, or
other sources of financing (subject to applicable requirements), including conventional
mortgage loans and mortgage loans insured under title II of the National Housing Act.
(2) PROHIBITION AGAINST PLEDGES.— Property transferred under this title shall not
be pledged as collateral for debt or otherwise encumbered except when the Secretary
determines that—
(A) such encumbrance will not threaten the long-term availability of the
property for occupancy by low-income families;
(B) neither the Federal Government nor the public housing agency will be
exposed to undue risks related to action that may have to be taken pursuant to
paragraph (3);
(C) any debt obligation can be serviced from project income, including
operating assistance; and
(D) the proceeds of such encumbrance will be used only to meet housing
standards in accordance with subsection (f) or to make such additional capital
improvements as the Secretary determines to be consistent with the purposes of
this title.
(3) OPPORTUNITY TO CURE.— Any lender that provides financing in connection
with a homeownership program under this subtitle shall give the public housing agency,
resident management corporation, individual owner, or other appropriate entity a
reasonable opportunity to cure a financial default before foreclosing on the property, or
taking other action as a result of the default.
(f) HOUSING QUALITY STANDARDS.— The application shall include a plan ensuring that the
unit—
(1) will be free from any defects that pose a danger to health or safety before
transfer of an ownership interest in, or shares representing, a unit to an eligible family; and
(2) will, not later than 2 years after the transfer to an eligible family, meet minimum
housing standards established by the Secretary for the purposes of this title.
293
[(g)294 [Repealed.]]
293
Section 531(b) of the QHWRA repealed section 305(g). Additional information: "(b) Homeownership Replacement Plan.— (1) In general.—
Notwithstanding subsections (b) and (c) of section 1002 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), subsection (g) of section 304 of the United States Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)) is repealed.
211
(h) PROTECTION OF NON-PURCHASING FAMILIES.—
(1) IN GENERAL.— No tenant residing in a dwelling unit in a public housing project
on the date the Secretary approves an application for an implementation grant may be
evicted by reason of a homeownership program approved under this title.
(2) REPLACEMENT ASSISTANCE.— If the tenant decides not to purchase a unit, or is
not qualified to do so, the recipient shall, during the term of any operating assistance
under the implementation grant, permit each otherwise qualified tenant to continue to
reside in the project at rents that do not exceed levels consistent with section 3(a) of this
Act or, if an otherwise qualified tenant chooses to move (at any time during the term of
such operating assistance contract), the public housing agency shall, to the extent
approved in appropriations Acts, offer such tenant (A) a unit in another public housing
project, or (B) section 8 assistance for use in other housing.
(3) RELOCATION ASSISTANCE.— The recipient shall also inform each such tenant
that if the tenant chooses to move, the recipient will pay relocation assistance in
accordance with the approved homeownership program.
(4) OTHER RIGHTS.— Tenants renting a unit in a project transferred under this title
shall have all rights provided to tenants of public housing under this Act.
SEC. 305. [42 U.S.C. 1437aaa-4] OTHER PROGRAM REQUIREMENTS.
(a) SALE BY PUBLIC HOUSING AGENCY TO APPLICANT OR OTHER ENTITY REQUIRED.—
Where the Secretary approves an application providing for the transfer of the eligible project from
the public housing agency to another applicant, the public housing agency shall transfer the
project to such other applicant, in accordance with the approved homeownership program.
(b) PREFERENCES.— In selecting eligible families for homeownership, the recipient shall
give a first preference to otherwise qualified current tenants and a second preference to otherwise
qualified eligible families who have completed participation in an economic self-sufficiency
program specified by the Secretary.
(c) COST LIMITATIONS.— The Secretary may establish cost limitations on eligible activities
under this title, subject to the provisions of this title.
(d) ANNUAL CONTRIBUTIONS.— Notwithstanding the purchase of a public housing project
under this section, or the purchase of a unit in a public housing project by an eligible family, the
Secretary shall continue to pay annual contributions with respect to the project. Such
contributions may not exceed the maximum contributions authorized in section 5(a).
(e) OPERATING SUBSIDIES.— 295Operating subsidiesAmounts from an allocation from the
Operating Fund under section 9 of this Act shall not be available with respect to a public housing
project after the date of its sale by the public housing agency.
(f) USE OF PROCEEDS FROM SALES TO ELIGIBLE FAMILIES.— The entity that transfers
ownership interests in, or shares representing, units to eligible families, or another entity specified
in the approved application, shall use the proceeds, if any, from the initial sale for costs of the
(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."
294
Section 1002(b) of Public Law 104-19, approved July 27, 1995, repealed this subsection (relating to 1-for-1 replacement of public housing
dwelling units transferred). Subsection (d) of such section 1002 provides as follows:
"(d) Subsections (a), (b), and (c) shall be effective for applications for the demolition, disposition, or conversion to homeownership of public housing
approved by the Secretary, and other consolidation and relocation activities of public housing agencies undertaken, on, before, or after September 30,
1995 and on or before September 30, 1998.".
295
Section 519(c)(2) of the QHWRA amended section 305(e).
212
homeownership program, including operating expenses, improvements to the project, business
opportunities for low-income families, supportive services related to the homeownership program,
additional homeownership opportunities, and other activities approved by the Secretary.
(g) RESTRICTIONS ON RESALE BY HOMEOWNERS.—
(1) IN GENERAL.—
(A) TRANSFER PERMITTED.— A homeowner under a homeownership
program may transfer the homeowner's ownership interest in, or shares
representing, the unit, except that a homeownership program may establish
restrictions on the resale of units under the program.
(B) RIGHT TO PURCHASE.— Where a resident management corporation,
resident council, or cooperative has jurisdiction over the unit, the corporation,
council, or cooperative shall have the right to purchase the ownership interest in,
or shares representing, the unit from the homeowner for the amount specified in a
firm contract between the homeowner and a prospective buyer. If such an entity
does not have jurisdiction over the unit or elects not to purchase and if the
prospective buyer is not a low-income family, the public housing agency or the
implementation grant recipient shall have the right to purchase the ownership
interest in, or shares representing, the unit for the same amount.
(C) PROMISSORY NOTE REQUIRED.— The homeowner shall execute a
promissory note equal to the difference between the market value and the purchase
price, payable to the public housing agency or other entity designated in the
homeownership plan, together with a mortgage securing the obligation of the note.
(2) 6 YEARS OR LESS.— In the case of a transfer within 6 years of the acquisition
under the program, the homeownership program shall provide for appropriate restrictions
to assure that an eligible family may not receive any undue profit. The plan shall provide
for limiting the family's consideration for its interest in the property to the total of—
(A) the contribution to equity paid by the family;
(B) the value, as determined by such means as the Secretary shall determine
through regulation, of any improvements installed at the expense of the family
during the family's tenure as owner; and
(C) the appreciated value determined by an inflation allowance at a rate
which may be based on a cost-of-living index, an income index, or market index as
determined by the Secretary through regulation and agreed to by the purchaser and
the entity that transfers ownership interests in, or shares representing, units to
eligible families (or another entity specified in the approved application), at the
time of initial sale, and applied against the contribution to equity.
Such an entity may, at the time of initial sale, enter into an agreement with the family to
set a maximum amount which this appreciation may not exceed.
(3) 6-20 YEARS.— In the case of a transfer during the period beginning 6 years
after the acquisition and ending 20 years after the acquisition, the homeownership
program shall provide for the recapture by the Secretary or the program of an amount
equal to the amount of the declining balance on the note described in paragraph (1)(C).
(4) USE OF RECAPTURED FUNDS.— Fifty percent of any portion of the net sales
proceeds that may not be retained by the homeowner under the plan approved pursuant to
this subsection shall be paid to the entity that transferred ownership interests in, or shares
213
representing, units to eligible families, or another entity specified in the approved
application, for use for improvements to the project, business opportunities for lowincome families, supportive services related to the homeownership program, additional
homeownership opportunities, and other activities approved by the Secretary. The
remaining 50 percent shall be returned to the Secretary for use under this subtitle, subject
to limitations contained in appropriations Acts. Such entity shall keep and make available
to the Secretary all records necessary to calculate accurately payments due the Secretary
under this subsection.
(h) THIRD PARTY RIGHTS.— The requirements under this title regarding quality standards,
resale, or transfer of the ownership interest of a homeowner shall be judicially enforceable against
the grant recipient with respect to actions involving rehabilitation, and against purchasers of
property under this subsection or their successors in interest with respect to other actions by
affected low-income families, resident management corporations, resident councils, public housing
agencies, and any agency, corporation, or authority of the United States Government. The parties
specified in the preceding sentence shall be entitled to reasonable attorney fees upon prevailing in
any such judicial action.
(i) DOLLAR LIMITATION ON ECONOMIC DEVELOPMENT ACTIVITIES.— Not more than an
aggregate of $250,000 from amounts made available under sections 302 and 303 may be used for
economic development activities under sections 302(b)(6)296 and 303(b)(9) for any project.
(j) TIMELY HOMEOWNERSHIP.— Recipients shall transfer ownership of the property to
tenants within a specified period of time that the Secretary determines to be reasonable. During
the interim period when the property continues to be operated and managed as rental housing, the
recipient shall utilize written tenant selection policies and criteria that are consistent with the
public housing program and that are approved by the Secretary as consistent with the purpose of
improving housing opportunities for low-income families. The recipient shall promptly notify in
writing any rejected applicant of the grounds for any rejection.
(k) CAPABILITY OF RESIDENT MANAGEMENT CORPORATIONS AND RESIDENT COUNCILS.—
To be eligible to receive a grant under section 303, a resident management corporation or resident
council shall demonstrate to the Secretary its ability to manage public housing by having done so
effectively and efficiently for a period of not less than 3 years or by arranging for management by
a qualified management entity.
(l) RECORDS AND AUDIT OF RECIPIENTS OF ASSISTANCE.—
(1) IN GENERAL.— Each recipient shall keep such records as may be reasonably
necessary to fully disclose the amount and the disposition by such recipient of the
proceeds of assistance received under this title (and any proceeds from financing obtained
in accordance with subsection (b) or sales under subsections (f) and (g)(4)), the total cost
of the homeownership program in connection with which such assistance is given or used,
and the amount and nature of that portion of the program supplied by other sources, and
such other sources as will facilitate an effective audit.
(2) ACCESS BY THE SECRETARY.— The Secretary shall have access for the purpose
of audit and examination to any books, documents, papers, and records of the recipient
that are pertinent to assistance received under this title.
(3) ACCESS BY THE COMPTROLLER GENERAL.— The Comptroller General of the
United States, or any of the duly authorized representatives of the Comptroller General,
296
So in law. Probably intended to refer to section 302(b)(7).
214
shall also have access for the purpose of audit and examination to any books, documents,
papers, and records of the recipient that are pertinent to assistance received under this
title.
SEC. 306. [42 U.S.C. 1437aaa-5] DEFINITIONS.
For purposes of this title:
(1) The term "applicant" means the following entities that may represent the
tenants of the project:
(A) A public housing agency.
(B) A resident management corporation, established in accordance with
requirements of the Secretary under section 20.
(C) A resident council.
(D) A cooperative association.
(E) A public or private nonprofit organization.
(F) A public body, including an agency or instrumentality thereof.
(2) The term "eligible family" means—
(A) a family or individual who is a tenant in the public housing project on
the date the Secretary approves an implementation grant;
(B) a low-income family; or
(C) a family or individual who is assisted under a housing program
administered by the Secretary or the Secretary of Agriculture (not including any
non-low income families assisted under any mortgage insurance program
administered by either Secretary).
(3) The term "homeownership program" means a program for homeownership
meeting the requirements under this title.
(4) The term "recipient" means an applicant approved to receive a grant under this
title or such other entity specified in the approved application that will assume the
obligations of the recipient under this title.
(5) The term "resident council" means any incorporated nonprofit organization or
association that—
(A) is representative of the tenants of the housing;
(B) adopts written procedures providing for the election of officers on a
regular basis; and
(C) has a democratically elected governing board, elected by the tenants of
the housing.
297
SEC. 307. [42 U.S.C. 1437aaa-6] RELATIONSHIP TO OTHER HOMEOWNERSHIP
OPPORTUNITIES.
The program authorized under this title shall be in addition to any other public housing
homeownership and management opportunities, including opportunities under section 5(h) of this
Act.
SEC. 308. [42 U.S.C. 1437aaa-7] LIMITATION ON SELECTION CRITERIA.
297
The amendment made by Section 518(a)(2)(C) of the QHWRA could not be executed. The amendment strikes the text "section 5(h) and" from
section 307, which does not appear in section 307.
215
In establishing criteria for selecting applicants to receive assistance under this title, the
Secretary may not establish any selection criterion or criteria that grant or deny such assistance to
an applicant (or have the effect of granting or denying assistance) based on the implementation,
continuation, or discontinuation of any public policy, regulation, or law of any jurisdiction in
which the applicant or project is located.
SEC. 309. [42 U.S.C. 1437aaa-8] ANNUAL REPORT.
The Secretary shall annually submit to the Congress a report setting forth—
(1) the number, type, and cost of public housing units sold pursuant to this title;
(2) the income, race, gender, children, and other characteristics of families
participating (or not participating) in homeownership programs funded under this title;
(3) the amount and type of financial assistance provided under and in conjunction
with this title;
(4) the amount of financial assistance provided under this title that was needed to
ensure continued affordability and meet future maintenance and repair costs; and
(5) the recommendations of the Secretary for statutory and regulatory
improvements to the program.
298
TITLE IV— HOME RULE FLEXIBLE GRANT DEMONSTRATION
SEC. 401. PURPOSE.
The purpose of this title is to demonstrate the effectiveness of authorizing local
governments and municipalities, in coordination with the public housing agencies for such
jurisdictions—
(1) to receive and combine program allocations of covered housing assistance;
and
(2) to design creative approaches for providing and administering Federal
housing assistance based on the particular needs of the jurisdictions 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 costeffectiveness in Federal housing assistance expenditures;
(C) increase the stock of affordable housing and housing choices for lowincome families;
(D) increase homeownership among low-income families;
(E) reduce geographic concentration of assisted families;
(F) reduce homelessness through providing permanent housing solutions;
(G) improve program management; and
(H) achieve such other purposes with respect to low-income families, as
determined by the participating local governments and municipalities in
coordination with the public housing agencies;
298
Section 561 of the QHWRA added Title IV.
216
SEC. 402. FLEXIBLE GRANT PROGRAM.
(a) AUTHORITY AND USE.— The Secretary shall carry out a demonstration program in
accordance with the purposes under section 401 and the provisions of this title. A jurisdiction
approved by the Secretary for participation in the program may receive and combine and enter
into performance-based contracts for the use of amounts of covered housing assistance, in the
manner determined appropriate by the participating jurisdiction, during the period of the
jurisdiction's participation—
(1) to provide housing assistance and services for low-income families in a
manner that facilitates the transition of such families to work;
(2) to reduce homelessness through providing permanent housing solutions;
(3) to increase homeownership among low-income families; or
(4) for other housing purposes for low-income families determined by the
participating jurisdiction.
(b) PERIOD OF PARTICIPATION.— A jurisdiction may participate in the demonstration
program under this title for a period consisting of not less than 1 nor more than 5 fiscal years.
(c) PARTICIPATING JURISDICTIONS.—
(1) IN GENERAL.— Subject to paragraph (2), during the 4-year period consisting of
fiscal years 1999 through 2002, the Secretary may approve for participation in the
program under this title not more than an aggregate of 100 jurisdictions over the entire
term of the demonstration program. A jurisdiction that was approved for participation in
the demonstration program under this title in a fiscal year and that is continuing such
participation in any subsequent fiscal year shall count as a single jurisdiction for
purposes of the numerical limitation under this paragraph.
(2) EXCLUSION OF HIGH PERFORMING AGENCIES.— Notwithstanding any other
provision of this title other than paragraph (4) of this subsection, the Secretary may
approve for participation in the demonstration program under this title only jurisdictions
served by public housing agencies that—
(A) are not designated as high-performing agencies, pursuant to their
most recent scores under the public housing management assessment program
under section 6(j)(2) (or any successor assessment program for public housing
agencies), as of the time of approval; and
(B) have a most recent score under the public housing management
assessment program under section 6(j)(2) (or any successor assessment program
for public housing agencies), as of the time of approval, that is among the lowest
40 percent of the scores of all agencies.
(3) LIMITATION ON TROUBLED AND NON-TROUBLED PHAS.— Of the jurisdictions
approved by the Secretary for participation in the demonstration program under this
title—
(A) not more than 55 may be jurisdictions served by a public housing
agency that, at the time of approval, is designated as a troubled agency under the
public housing management assessment program under section 6(j)(2) (or any
successor assessment program for public housing agencies); and
(B) not more than 45 may be jurisdictions served by a public housing
agency that, at the time of approval, is not designated as a troubled agency under
217
the public housing management assessment program under section 6(j)(2) (or any
successor assessment program for public housing agencies).
(4) EXCEPTION.— If the City of Indianapolis, Indiana submits an application for
participation in the program under this title and, upon review of the application under
section 406(b), the Secretary determines that such application is approvable under this
title, the Secretary shall approve such application, notwithstanding the second sentence
of section 406(b)(2). Such City shall count for purposes of the numerical limitations on
jurisdictions under paragraphs (1) and (3) of section 402(c), but the provisions of section
402(c)(2) (relating to exclusion of high-performing agencies) shall not apply to such
City.
SEC. 403. PROGRAM ALLOCATION AND COVERED HOUSING ASSISTANCE.
(a) PROGRAM ALLOCATION.— In each fiscal year, the amount made available to each
participating jurisdiction under the demonstration program under this title shall be equal to the
sum of the amounts of covered housing assistance that would otherwise be made available under
the provisions of this Act to the public housing agency for the jurisdiction.
(b) COVERED HOUSING ASSISTANCE.— For purposes of this title, the term "covered housing
assistance" means—
(1) operating assistance under section 9 (as in effect before the effective date
under section 503(a) of the Quality Housing and Work Responsibility Act of 1998);
(2) modernization assistance under section 14 (as in effect before the effective
date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998);
(3) assistance for the certificate and voucher programs under section 8 (as in
effect before the effective date under section 503(a) of the Quality Housing and Work
Responsibility Act of 1998);
(4) assistance from the Operating Fund under section 9(e);
(5) assistance from the Capital Fund under section 9(d); and
(6) tenant-based assistance under section 8 (as amended by the Quality Housing
and Work Responsibility Act of 1998).
SEC. 404. APPLICABILITY OF REQUIREMENTS UNDER PROGRAMS FOR COVERED
HOUSING ASSISTANCE.
(a) IN GENERAL.— In each fiscal year of the demonstration program under this title,
amounts made available to a participating jurisdiction under the demonstration program shall
be subject to the same terms and conditions as such amounts would be subject to if made
available under the provisions of this Act pursuant to which covered housing assistance is
otherwise made available under this Act to the public housing agency for the jurisdiction, except
that—
(1) the Secretary may waive any such term or condition identified by the
jurisdiction to the extent that the Secretary determines such action to be appropriate to
carry out the purposes of the demonstration program under this title; and
(2) the participating jurisdiction may combine the amounts made available and
use the amounts for any activity eligible under the programs under sections 8 and 9.
(b) NUMBER OF FAMILIES ASSISTED.— In carrying out the demonstration program under
this title, each participating jurisdiction shall assist substantially the same total number of
218
eligible low-income families as would have otherwise been served by the public housing agency
for the jurisdiction had the jurisdiction not participated in the demonstration program under this
title.
(c) PROTECTION OF RECIPIENTS.— This title may not be construed to authorize the
termination of assistance to any recipient receiving assistance under this Act before the date of
the enactment of this title as a result of the implementation of the demonstration program under
this title.
(d) EFFECT ON ABILITY TO COMPETE FOR OTHER PROGRAMS.— This title may not be
construed to affect the ability of any applying or participating jurisdiction (or a public housing
agency for any such jurisdiction) to compete or otherwise apply for or receive assistance under
any other housing assistance program administered by the Secretary.
SEC. 405. PROGRAM REQUIREMENTS.
(a) APPLICABILITY OF CERTAIN PROVISIONS.— Notwithstanding section 404(a)(1), the
Secretary may not waive, with respect to any participating jurisdiction, any of the following
provisions:
(1) The first sentence of paragraph (1) of section 3(a) (relating to eligibility of
low-income families).
(2) Section 16 (relating to income eligibility and targeting of assistance).
(3) Paragraph (2) of section 3(a) (relating to rental payments for public housing
families).
(4) Paragraphs (2) and (3) of section 8(o) (to the extent such paragraphs limit the
amount of rent paid by families assisted with tenant-based assistance).
(5) Section 18 (relating to demolition or disposition of public housing).
(b) COMPLIANCE WITH ASSISTANCE PLAN.— A participating jurisdiction shall provide
assistance using amounts received pursuant to this title in the manner set forth in the plan of the
jurisdiction approved by the Secretary under section 406(a)(2).
SEC. 406. APPLICATION.
(a) IN GENERAL.— The Secretary shall provide for jurisdictions to submit applications for
approval to participate in the demonstration program under this title. An application—
(1) shall be submitted only after the jurisdiction provides for citizen participation
through a public hearing and, if appropriate, other means;
(2) shall include a plan for the provision of housing assistance with amounts
received pursuant to this title that—
(A) is developed by the jurisdiction;
(B) takes into consideration comments from the public hearing, any other
public comments on the proposed program, and comments from current and
prospective residents who would be affected; and
(C) identifies each term or condition for which the jurisdiction is
requesting waiver under section 404 (a)(1);
(3) shall describe how the plan for use of amounts will assist in meeting the
purposes of, and be used in accordance with, sections 401 and 402(a), respectively;
219
(4) shall propose standards for measuring performance in using assistance
provided pursuant to this title based on the performance standards under subsection
(b)(4);
(5) shall propose the length of the period for participation of the jurisdiction is in
the demonstration program under this title;
(6) shall—
(A) in the case of the application of any jurisdiction within whose
boundaries are areas subject to any other unit of general local government,
include the signed consent of the appropriate executive official of such unit to the
application; and
(B) in the case of the application of a consortia of units of general local
government (as provided under section 409(1)(B)), include the signed consent of
the appropriate executive officials of each unit included in the consortia;
(7) shall include information sufficient, in the determination of the Secretary—
(A) to demonstrate that the jurisdiction has or will have management and
administrative capacity sufficient to carry out the plan under paragraph (2),
including a demonstration that the applicant has a history of effectively
administering amounts provided under other programs of the Department of
Housing and Urban Development, such as the community development block
grant program, the HOME investment partnerships program, and the programs
for assistance for the homeless under the Stewart B. McKinney Homeless
Assistance Act;
(B) to demonstrate that carrying out the plan will not result in excessive
duplication of administrative efforts and costs, particularly with respect to
activities performed by public housing agencies operating within the boundaries
of the jurisdiction;
(C) to describe the function and activities to be carried out by such public
housing agencies affected by the plan; and
(D) to demonstrate that the amounts received by the jurisdiction will be
maintained separate from other funds available to the jurisdiction and will be
used only to carry out the plan;
(8) shall include information describing how the jurisdiction will make decisions
regarding asset management of housing for low-income families under programs for
covered housing assistance or assisted with grant amounts under this title;
(9) shall—
(A) clearly identify any State or local laws that will affect implementation
of the plan under paragraph (2) and any contractual rights and property interests
that may be affected by the plan;
(B) describe how the plan will be carried out with respect to such laws,
rights, and interests; and
(C) contain a legal memorandum sufficient to describe how the plan will
comply with such laws and how the plan will be carried out without violating or
impairing such rights and interests; and
220
(10) shall identify procedures for how the jurisdiction shall return to providing
covered assistance for the jurisdiction under the provisions of title I, in the case of
determination under subsection (b)(4)(B).
A plan required under paragraph (2) to be included in the application may be contained in a
memorandum of agreement or other document executed by a jurisdiction and public housing
agency, if such document is submitted together with the application.
(b) REVIEW, APPROVAL, AND PERFORMANCE STANDARDS.—
(1) REVIEW.— The Secretary shall review each application for participation in the
demonstration program under this title and shall determine and notify the jurisdiction
submitting the application, not later than 90 days after its submission, of whether the
application is approvable under this title. If the Secretary determines that the application
of a jurisdiction is approvable under this title, the Secretary shall provide affected public
housing agencies an opportunity to review and to provide written comments on the
application for a period of not less than 30 days after notification under the preceding
sentence. If the Secretary determines that an application is not approvable under this
title, the Secretary shall notify the jurisdiction submitting the application of the reasons
for such determination. Upon making a determination of whether an application is
approvable or nonapprovable under this title, the Secretary shall make such
determination publicly available in writing together with a written statement of the
reasons for such determination.
(2) APPROVAL.— The Secretary may approve jurisdictions for participation in the
demonstration program under this title, but only from among applications that the
Secretary has determined under paragraph are approvable under this title and only in
accordance with section 402(c). The Secretary shall base the selection of jurisdictions to
approve on the potential success, as evidenced by the application, in—
(A) achieving the goals set forth in the performance standards under
paragraph (4)(A); and
(B) increasing housing choices for low-income families.
(3) AGREEMENT.— The Secretary shall offer to enter into an agreement with each
jurisdiction approved for participation in the program under this title providing for
assistance pursuant to this title for a period in accordance with section 402(b) and
incorporating a requirement that the jurisdiction achieve a particular level of
performance in each of the areas for which performance standards are established under
paragraph (4)(A) of this subsection. If the Secretary and the jurisdiction enter into an
agreement, the Secretary shall provide any covered housing assistance for the
jurisdiction in the manner authorized under this title. The Secretary may not provide
covered housing assistance for a jurisdiction in the manner authorized under this title
unless the Secretary and jurisdiction enter into an agreement under this paragraph.
(4) PERFORMANCE STANDARDS.—
(A) ESTABLISHMENT.— The Secretary and each participating jurisdiction
may collectively establish standards for evaluating the performance of the
participating jurisdiction in meeting the purposes under section 401 of this title,
which may include standards for—
(i) moving dependent low-income families to economic selfsufficiency;
221
(ii) reducing the per-family cost of providing housing assistance;
(iii) expanding the stock of affordable housing and housing
choices for low-income families;
(iv) improving program management;
(v) increasing the number of homeownership opportunities for lowincome families;
(vi) reducing homelessness through providing permanent housing
resources;
(vii) reducing geographic concentration of assisted families; and
(viii) any other performance goals that the Secretary and the
participating jurisdiction may establish.
(B) FAILURE TO COMPLY.— If, at any time during the participation of a
jurisdiction in the program under this title, the Secretary determines that the
jurisdiction is not sufficiently meeting, or making progress toward meeting, the
levels of performance incorporated into the agreement of the jurisdiction
pursuant to subparagraph (A), the Secretary shall terminate the participation of
the jurisdiction in the program under this title and require the implementation of
the procedures included in the application of the jurisdiction pursuant to
subsection (a)(10).
(5) TROUBLED AGENCIES.— The Secretary may establish requirements for the
approval of applications under this section submitted by public housing agencies
designated under section 6(j)(2) as troubled, which may include additional or different
criteria determined by the Secretary to be more appropriate for such agencies.
(c) STATUS OF PHAS.— This title may not be construed to require any change in the legal
status of any public housing agency or in any legal relationship between a jurisdiction and a
public housing agency as a condition of participation in the program under this title.
(d) PHA PLANS.— In carrying out this title, the Secretary may provide for a streamlined
public housing agency plan and planning process under section 5A for participating
jurisdictions.
SEC. 407. TRAINING.
The Secretary, in consultation with representatives of public and assisted housing
interests, may provide training and technical assistance relating to providing assistance under
this title and may conduct detailed evaluations of up to 30 jurisdictions for the purpose of
identifying replicable program models that are successful at carrying out the purposes of this
title.
SEC. 408. ACCOUNTABILITY.
(a) MAINTENANCE OF RECORDS.— Each participating jurisdiction shall maintain such
records as the Secretary may require to—
(1) document the amounts received by the jurisdiction under this Act and the
disposition of such amounts under the demonstration program under this title;
(2) ensure compliance by the jurisdiction with this title; and
(3) evaluate the performance of the jurisdiction under the demonstration program
under this title.
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(b) REPORTS.— Each participating jurisdiction shall annually submit to the Secretary a
report in a form and at a time specified by the Secretary, which shall include—
(1) documentation of the use of amounts made available to the jurisdiction under
this title;
(2) any information as the Secretary may request to assist the Secretary in
evaluating the demonstration program under this title; and
(3) a description and analysis of the effect of assisted activities in addressing the
objectives of the demonstration program under this title.
(c) ACCESS TO DOCUMENTS BY 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 a participating
jurisdiction that relate to the demonstration program under this title.
(d) PERFORMANCE REVIEW AND EVALUATION.—
(1) PERFORMANCE REVIEW.— Based on the performance standards established
under section 406(b)(4), the Secretary shall monitor the performance of participating
jurisdictions in providing assistance under this title.
(2) STATUS REPORT.— Not later than 60 days after the conclusion of the second
year of the demonstration program under this title, the Secretary shall submit to
Congress an interim report on the status of the demonstration program and the progress
each participating jurisdiction in achieving the purposes of the demonstration program
under section 401.
SEC. 409. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) JURISDICTION.— The term "jurisdiction" means—
(A) a unit of general local government (as such term is defined in section
104 of the Cranston-Gonzalez National Affordable Housing Act) that has
boundaries, for purposes of carrying out this title, that—
(i) wholly contain the area within which a public housing agency is
authorized to operate; and
(ii) do not contain any areas contained within the boundaries of
any other participating jurisdiction; and
(B) a consortia of such units of general local government, organized for
purposes of this title.
(2) PARTICIPATING JURISDICTION.— The term "participating jurisdiction" means,
with respect to a period for which such an agreement is made, a jurisdiction that has
entered into an agreement under section 406(b)(3) to receive assistance pursuant to this
title for such fiscal year.
SEC. 410. TERMINATION AND EVALUATION.
(a) TERMINATION.— The demonstration program under this title shall terminate not less
than 2 and not more than 5 years after the date on which the demonstration program is
commenced.
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(b) EVALUATION.— Not later than 6 months after the termination of the demonstration
program under this title, the Secretary shall submit to the Congress a final report, which shall
include—
(1) an evaluation the effectiveness of the activities carried out under the
demonstration program; and
(2) any findings and recommendations of the Secretary for any appropriate
legislative action.
SEC. 411. APPLICABILITY.
This title shall take effect on the date of the enactment of the Quality Housing and Work
Responsibility Act of 1998.
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| File Type | application/pdf |
| File Title | USHA19371.PDF |
| Author | KET |
| File Modified | 2016-02-17 |
| File Created | 1999-06-03 |