Public Law 114-201

PUBLIC LAW 114–201—JULY 29, 2016

HOUSING OPPORTUNITY THROUGH
MODERNIZATION ACT OF 2016

130 STAT. 782

PUBLIC LAW 114–201—JULY 29, 2016

Public Law 114–201
114th Congress
An Act
July 29, 2016
[H.R. 3700]
Housing
Opportunity
Through
Modernization
Act of 2016. 42
USC 1437
note.

To provide housing opportunities in the United States through modernization of
various housing programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the “Housing Opportunity
Through Modernization Act of 2016”.
(b) TABLE OF CONTENTS.—The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I—SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
Sec. 101. Inspection of dwelling units.
Sec. 102. Income reviews.
Sec. 103. Limitation on public housing tenancy for over-income families.
Sec. 104. Limitation on eligibility for assistance based on assets.
Sec. 105. Units owned by public housing agencies.
Sec. 106. PHA project-based assistance.
Sec. 107. Establishment of fair market rent.
Sec. 108. Collection of utility data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Family unification program for children aging out of foster care.
Sec. 111. Public housing heating guidelines.
Sec. 112. Use of vouchers for manufactured housing.
Sec. 113. Preference for United States citizens or nationals.
Sec. 114. Exception to public housing agency resident board member requirement.
TITLE II—RURAL HOUSING
Sec. 201. Delegation of guaranteed rural housing loan approval. Sec.
202. Guaranteed underwriting user fee.
TITLE III—FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
Sec. 301. Modification of FHA requirements for mortgage insurance for condominiums.
TITLE IV—HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
Sec. 401. Definition of geographic area for Continuum of Care Program.
Sec. 402. Inclusion of public housing agencies and local redevelopment authorities
in emergency solutions grants.
Sec. 403. Special assistant for Veterans Affairs in the Department of Housing and
Urban Development.
Sec. 404. Annual supplemental report on veterans homelessness.
Sec. 405. Reopening of public comment period for continuum of care program regulations.
TITLE V—MISCELLANEOUS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain fraud and abuse
prevention measures.
Sec. 502. Energy efficiency requirements under Self-Help Homeownership Opportunity
program.

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130 STAT. 783

Sec. 503. Data exchange standardization for improved interoperability.
TITLE VI—REPORTS
Sec. 601. Report on interagency family economic empowerment strategies. TITLE
VII—HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
Sec. 701. Formula and terms for allocations to prevent homelessness for individuals living
with HIV or AIDS.

TITLE I—SECTION 8 RENTAL
ASSISTANCE AND PUBLIC HOUSING
SEC. 101. INSPECTION OF DWELLING UNITS.

(a) I N G ENERAL .—Section 8(o)(8) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended—
(1) by striking subparagraph (A) and inserting the following
new subparagraph:
“(A) INITIAL INSPECTION.—
Determination.
“(i) I N GENERAL .—For each dwelling unit for which a
housing assistance payment contract is established under
this subsection, the public housing agency (or other entity
pursuant to paragraph (11)) shall inspect the unit before
any assistance payment is made to determine whether the
dwelling unit meets the housing quality standards under
subparagraph (B), except as provided in clause (ii) or (iii)
of this subparagraph.
“(ii) CORRECTION
OF
NON-LIFE-THREATENING
CONDITIONS .—In the case of any dwelling unit that is determined, pursuant to an inspection under clause (i), not
to meet the housing quality standards under subparagraph (B), assistance payments may be made for the
unit notwithstanding subparagraph (C) if failure to
meet such standards is a result only of non-life-threatening conditions, as such conditions are established
by the Secretary. A public housing agency making T i me pe r io d .
assistance payments pursuant to this clause for a
dwelling unit shall, 30 days after the beginning of the
period for which such payments are made, withhold any
assistance payments for the unit if any deficiency
resulting in noncompliance with the housing quality
standards has not been corrected by such time. The
public housing agency shall recommence assistance
payments when such deficiency has been corrected, and
may use any payments withheld to make assistance
payments relating to the period during which payments
were withheld.
“( ) U SE OF ALTERNATIVE INSPECTION METHOD FOR
INTERIM PERIOD .—In the case of any property that within
the previous 24 months has met the requirements of an
inspection that qualifies as an alternative inspection
method pursuant to subparagraph (E), a public housing
agency may authorize occupancy before the inspection
under clause (i) has been completed, and may make
assistance payments retroactive to the beginning of the
lease term after the unit has been determined pursuant to
an inspection under clause (i) to meet the housing quality
standards under

130 STAT. 784

PUBLIC LAW 114–201—JULY 29, 2016
subparagraph (B). This clause may not be construed to exempt
any dwelling unit from compliance with the requirements of
subparagraph (D).”;
(2) by redesignating subparagraph (G) as subparagraph (H);
and

Contracts.

Time periods.

(3) by inserting after subparagraph (F) the following new
subparagraph:
“(G) ENFORCEMENT OF HOUSING QUALITY STANDARDS.—
“(i) D ETERMINATION OF NONCOMPLIANCE .—A
dwelling unit that is covered by a housing assistance
payments contract under this subsection shall be
considered, for purposes of subparagraphs (D) and (F),
to be in noncompliance with the housing quality standards under subparagraph (B) if—
“(I) the public housing agency or an inspector
authorized by the State or unit of local government
determines upon inspection of the unit that the unit
fails to comply with such standards;
“(II) the agency or inspector notifies the owner
of the unit in writing of such failure to comply; and
“( ) the failure to comply is not corrected—
“(aa) in the case of any such failure that is
a result of life-threatening conditions, within 24
hours after such notice has been provided; and
“(bb) in the case of any such failure that
is a result of non-life-threatening conditions,
within 30 days after such notice has been provided or such other reasonable longer period as
the public housing agency may establish.
“(ii) W ITHHOLDING OF ASSISTANCE AMOUNTS
DURING CORRECTION .—The public housing agency may
withhold assistance amounts under this subsection with
respect to a dwelling unit for which a notice pursuant to
clause (i)(II), of failure to comply with housing quality
standards under subparagraph (B) as determined
pursuant to an inspection conducted under subparagraph
(D) or (F), has been provided. If the unit is brought into
compliance with such housing quality standards during
the periods referred to in clause (i)(III), the public
housing agency shall recommence assistance payments
and may use any amounts withheld during the correction
period to make assistance payments relating to the
period during which payments were withheld.
“(iii) A BATEMENT OF ASSISTANCE AMOUNTS .—The
public housing agency shall abate all of the assistance
amounts under this subsection with respect to a dwelling
unit that is determined, pursuant to clause (i) of this
subparagraph, to be in noncompliance with housing
quality standards under subparagraph (B). Upon
completion of repairs by the public housing agency or
the owner sufficient so that the dwelling unit complies
with such housing quality standards, the agency shall
recommence payments under the

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 785

housing assistance payments contract to the owner of the
dwelling unit.
“(iv) N OTIFICATION .—If a public housing agency
providing assistance under this subsection abates rental
assistance payments pursuant to clause (iii) with respect
to a dwelling unit, the agency shall, upon commencement
of such abatement—
“(I ) notify the tena nt and th e owner o f th e
dwelling unit that—
“(aa) such abatement has commenced; and
“(bb) if the dwelling unit is not brought Time period.
into compliance with housing quality standards within 60 days after the effective date
of the determination of noncompliance under
clause (i) or such reasonable longer period as
the agency may establish, the tenant will have
to move; and
“(I I)
issue the tenant the necessary
forms to allow the tenant to move to another
dwelling unit and transfer the rental assistance to
that unit.
“(v) P ROTECTION OF TENANTS .—An owner of a
dwelling unit may not terminate the tenancy of any
tenant because of the withholding or abatement of
assistance pursuant to this subparagraph. During the
period that assistance is abated pursuant to this
subparagraph, the tenant may terminate the tenancy by
notifying the owner.
“(vi) TERMINATION OF LEASE OR ASSISTANCE PAYMENTS CONTRACT.—If assistance amounts under this Time
period. section for a dwelling unit are abated pursuant to
clause (iii) and the owner does not correct the noncompliance within 60 days after the effective date of the
determination of noncompliance under clause (i), or such
other reasonable longer period as the public housing
agency may establish, the agency shall terminate the
housing assistance payments contract for the dwelling
unit.
“(vii) RELOCATION.—
“(I) LEASE OF NEW UNIT.—The agency shall Time
period. provide the family residing in such a dwelling
unit a period of 90 days or such longer period as the
public housing agency determines is reasonably
necessary to lease a new unit, beginning upon
termination of the contract, to lease a new residence
with tenant-based rental assistance under this
section.
“(II)
AVAILABILITY OF PUBLIC HOUSING
UNITS .— If the family is unable to lease such a new
residence during such period, the public housing
agency shall, at the option of the family, provide such
family a preference for occupancy in a dwelling unit
of public housing that is owned or operated by the
agency that first becomes available for occupancy
after the expiration of such period.
“(I) A SSISTANCE IN FINDING UNIT .—The
public housing agency may provide assistance to
the family in finding a new residence, including

130 STAT. 786

Determination.

Contracts.

Notice.
Regulations.
42 USC 1437f
note.

PUBLIC LAW 114–201—JULY 29, 2016

use of up to two months of any assistance amounts
withheld or abated pursuant to clause (ii) or (iii),
respectively, for costs directly associated with
relocation of the family to a new residence, which
shall include security deposits as necessary and may
include reimbursements for reasonable moving
expenses incurred by the household, as established
by the Secretary. The agency may require that a
family receiving assistance for a security deposit
shall remit, to the extent of such assistance, the
amount of any security deposit refunds made by the
owner of the dwelling unit for which the lease was
terminated.
“(viii) T ENANT - CAUSED DAMAGES .—If a public
housing agency determines that any damage to a dwelling
unit that results in a failure of the dwelling unit to comply
with housing quality standards under subparagraph (B),
other than any damage resulting from ordinary use, was
caused by the tenant, any member of the tenant’s
household, or any guest or other person under the tenant’s
control, the agency may waive the applicability of this
subparagraph, except that this clause shall not exonerate
a tenant from any liability otherwise existing under
applicable law for damages to the premises caused by
such tenant.
“(ix) A PPLICABILITY .—This subparagraph shall
apply to any dwelling unit for which a housing assistance payments contract is entered into or renewed after
the date of the effectiveness of the regulations
implementing this subparagraph.”.
(b) E FFECTIVE D ATE .—The Secretary of Housing and Urban
Development shall issue notice or regulations to implement subsection (a) of this section and such subsection shall take effect upon
such issuance.
SEC. 102. INCOME REVIEWS.

(a) INCOME REVIEWS FOR PUBLIC
GRAMS.—Section 3 of the United States

HOUSING AND SECTION 8 PROHousing Act of 1937 (42 U.S.C.

1437a) is amended—
(1) in subsection (a)—
(A) in the second sentence of paragraph (1), by striking
“at least annually” and inserting “pursuant to paragraph (6)”;
and
(B) by adding at the end the following new paragraphs: “(6)
REVIEWS OF FAMILY INCOME.—
“(A) FREQUENCY.—Reviews of family income for purposes
of this section shall be made—
“(i) in the case of all families, upon the initial provision
of housing assistance for the family;
“(ii) annually thereafter, except as provided in paragraph
(1) with respect to fixed-income families;
“(iii) upon the request of the family, at any time
the income or deductions (under subsection (b)(5)) of
the family change by an amount that is estimated to
result in a decrease of 10 percent (or such lower
amount as the Secretary may, by notice, establish,

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 787

or permit the public housing agency or owner to establish) or
more in annual adjusted income; and
“(iv) at any time the income or deductions (under
subsection (b)(5)) of the family change by an amount
that is estimated to result in an increase of 10 percent or
more in annual adjusted income, or such other amount
as the Secretary may by notice establish, except that any
increase in the earned income of a family shall not be
considered for purposes of this clause (except that
earned income may be considered if the increase
corresponds to previous decreases under clause (iii)),
except that a public housing agency or owner may elect
not to conduct such review in the last three months of a
certification period.
“(B) IN GENERAL.—Reviews of family income for purposes of this section shall be subject to the provisions of
section 904 of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544).
“(7) CALCULATION OF INCOME.—
“(A) U SE OF CURRENT YEAR INCOME .—In determining
family income for initial occupancy or provision of housing
assistance pursuant to clause (i) of paragraph (6)(A) or
pursuant to reviews pursuant to clause (iii) or (iv) of such
paragraph, a public housing agency or owner shall use the
income of the family as estimated by the agency or owner for
the upcoming year.
“(B) U SE OF PRIOR YEAR INCOME .—In determining
family income for annual reviews pursuant to paragraph
(6)(A)(ii), a public housing agency or owner shall, except as
otherwise provided in this paragraph and paragraph (1), use
the income of the family as determined by the agency or
owner for the preceding year, taking into consideration any
redetermination of income during such prior year pursuant
to clause (iii) or (iv) of paragraph (6)(A).
“(C) O THER INCOME.—In determining the income for
any family based on the prior year’s income, with respect to
prior year calculations of income not subject to subparagraph
(B), a public housing agency or owner may make other
adjustments as it considers appropriate to reflect current
income.
“(D) S AFE HARBOR .—A public housing agency or owner
may, to the extent such information is available to the public
housing agency or owner, determine the family’s income prior
to the application of any deductions based on timely income
determinations made for purposes of other means-tested
Federal public assistance programs (including the program for
block grants to States for temporary assistance for needy
families under part A of title IV of the Social Security Act, a
program for Medicaid assistance under a State plan approved
under title XIX of the Social Security Act, and the
supplemental nutrition assistance program (as such term is
defined in section 3 of the Food and Nutrition Act of 2008 (7
U.S.C. 2012))). The Secretary shall, in consultation with other
appropriate Federal agencies, develop electronic procedures to
enable public housing agencies and owners to have access to
such benefit determinations made by other means-tested
Federal programs

Time period.

Consultation.
Procedures.

130 STAT. 788

Deadline.
Time period.
Effective date.

Definition.
Criteria.
Consultation.

PUBLIC LAW 114–201—JULY 29, 2016

that the Secretary determines to have comparable reliability.
Exchanges of such information shall be subject to the same
limitations and tenant protections provided under section 904
of the Stewart B. McKinney Homeless Assistance Act
Amendments of 1988 (42 U.S.C. 3544) with respect to
information obtained under the requirements of section 303(i)
of the Social Security Act (42 U.S.C. 503(i)).
“(E) E LECTRONIC INCOME VERIFICATION.—The Secretary
shall develop a mechanism for disclosing information to a
public housing agency for the purpose of verifying the
employment and income of individuals and families in
accordance with section 453(j)(7)(E) of the Social Security Act
(42 U.S.C. 653(j)(7)(E)), and shall ensure public housing
agencies have access to information contained in the ‘Do Not
Pay’ system established by section 5 of the Improper Payments
Elimination and Recovery Improvement Act of 2012 (Public
Law 112–248; 126 Stat. 2392).
“(F) PHA AND OWNER COMPLIANCE .—A public housing
agency or owner may not be considered to fail to comply with
this paragraph or paragraph (6) due solely to any de minimis
errors made by the agency or owner in calculating family
incomes.”;
(2) by striking subsections (d) and (e); and
(3) by redesignating subsection (f) as subsection (d).
(b) C ERTIFICATION R EGARDING H ARDSHIP E XCEPTION TO M IN IMUM M ONTHLY R ENT .—Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act, the
Secretary of Housing and Urban Development shall submit to the
Congress a certification that the hardship and tenant protection
provisions in clause (i) of section 3(a)(3)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(a)(3)(B)(i)) are being enforced
at such time and that the Secretary will continue to provide due
consideration to the hardship circumstances of persons assisted under
relevant programs of this Act.
(c) I NCOME ; A DJUSTED I NCOME .—Section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by
striking paragraphs (4) and (5) and inserting the following new
paragraphs:
“(4) I NCOME .—The term ‘income’ means, with respect to a
family, income received from all sources by each member of the
household who is 18 years of age or older or is the head of
household or spouse of the head of the household, plus unearned
income by or on behalf of each dependent who is less than 18
years of age, as determined in accordance with criteria
prescribed by the Secretary, in consultation with the Secretary
of Agriculture, subject to the following requirements:
“(A) I NCLUDED AMOUNTS .—Such term includes recurring gifts and receipts, actual income from assets, and profit
or loss from a business.
“( ) E XCLUDED AMOUNTS .—Such term does not
include—
“(i) any imputed return on assets, except to the
extent that net family assets exceed $50,000, except
that such amount (as it may have been previously
adjusted) shall be adjusted for inflation annually by

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 789

the Secretary in accordance with an inflationary index selected
by the Secretary;
“(ii) any amounts that would be eligible for exclusion
under section 1613(a)(7) of the Social Security Act (42 U.S.C.
1382b(a)(7));
“(iii) deferred disability benefits from the Department of Veterans Affairs that are received in a lump sum
amount or in prospective monthly amounts;
“(iv) any expenses related to aid and attendance
under section 1521 of title 38, United States Code, to
veterans who are in need of regular aid and attendance;
and
“(v) exclusions from income as established by the
Secretary by regulation or notice, or any amount required
by Federal law to be excluded from consideration as
income.
“(C) EARNED INCOME OF STUDENTS.—Such term does not
include—
“(i) earned income, up to an amount as the Secretary
may by regulation establish, of any dependent earned
during any period that such dependent is attending school
or vocational training on a full-time basis; or
“(ii) any grant-in-aid or scholarship amounts
related to such attendance used—
“(I) for the cost of tuition or books; or
“(III)
in such amounts as the Secretary may
allow, for the cost of room and board.
“(D) E DUCATIONAL SAVINGS ACCOUNTS .—Income shall
be determined without regard to any amounts in or from, or
any benefits from, any Coverdell education savings account
under section 530 of the Internal Revenue Code of 1986 or
any qualified tuition program under section 529 of such
Code.
“(E) R ECORDKEEPING .—The Secretary may not require a
public housing agency or owner to maintain records of any
amounts excluded from income pursuant to this subparagraph.
“(5) A DJUSTED INCOME .—The term ‘adjusted income’ means,
Definition. with respect to a family, the amount (as determined by
the
public housing agency or owner) of the income of the members
of the family residing in a dwelling unit or the persons on
a lease, after any deductions from income as follows:
“(A) ELDERLY AND DISABLED FAMILIES.—$525 in the case
of any family that is an elderly family or a disabled family.
“(B) M INORS , STUDENTS , AND PERSONS WITH DISABIL ITIES .—$480 for each member of the family residing in the
household (other than the head of the household or his or
her spouse) who is less than 18 years of age or is attending
school or vocational training on a full-time basis, or who
is 18 years of age or older and is a person with disabilities.
“(C) CHILD CARE.—Any reasonable child care expenses
necessary to enable a member of the family to be employed or to
further his or her education.

Determination.

130 STAT. 790

Regulation.

Notification.

Consultation.
Comment period.

Procedures.

Determination.
Applicability.
Regulation.

PUBLIC LAW 114–201—JULY 29, 2016

“(D) H EALTH AND MEDICAL EXPENSES.—The amount, if
any, by which 10 percent of annual family income is exceeded
by the sum of—
“(i) in the case of any elderly or disabled family,
any unreimbursed health and medical care expenses;
and
“(ii)
any unreimbursed reasonable attendant
care and auxiliary apparatus expenses for each
handicapped member of the family, if determined
necessary by the public housing agency or owner to enable
any member of such family to be employed.
The Secretary shall, by regulation, provide hardship exemptions to the requirements of this subparagraph and
subparagraph (C) for impacted families who demonstrate an
inability to pay calculated rents because of financial
hardship. Such regulations shall include a requirement to
notify tenants regarding any changes to the determination of
adjusted income pursuant to such subparagraphs based on the
determination of the family’s claim of financial hardship
exemptions required by the preceding sentence. Such
regulations shall be promulgated in consultation with tenant
organizations, industry participants, and the Secretary of
Health and Human Services, with an adequate comment
period provided for interested parties.
“(E) P ERMISSIVE DEDUCTIONS .—Such additional deductions as a public housing agency may, at its discretion,
establish, except that the Secretary shall establish procedures
to ensure that such deductions do not materially increase
Federal expenditures.
The Secretary shall annually calculate the amounts of the
deductions under subparagraphs (A) and (B), as such amounts
may have been previously calculated, by applying an inflationary
factor as the Secretary shall, by regulation, establish, except that
the actual deduction determined for each year shall be established
by rounding such amount to the next lowest multiple of $25.”.
(d) H OUSING C HOICE V OUCHER P ROGRAM .—Section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended—
(1) in paragraph (1)(D), by inserting before the period at the
end the following: “, except that a public housing agency may
establish a payment standard of not more than 120 percent of the
fair market rent where necessary as a reasonable accommodation
for a person with a disability, without approval of the Secretary.
A public housing agency may use a payment standard that is
greater than 120 percent of the fair market rent as a reasonable
accommodation for a person with a disability, but only with the
approval of the Secretary. In connection with the use of any
increased payment standard established or approved pursuant to
either of the preceding two sentences as a reasonable
accommodation for a person with a disability, the Secretary may
not establish additional requirements regarding the amount of
adjusted income paid by such person for rent”; and
(2) in paragraph (5)—
(A) in the paragraph heading, by striking “A NNUAL
REVIEW” and inserting “R EVIEWS”;

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130 STAT. 791

(B) in subparagraph (A)—
(i) by striking “the provisions of’’ and inserting
“paragraphs (1), (6), and (7) of section 3(a) and to”;
and
(ii) by striking “and shall be conducted” and all that
follows through the end of the subparagraph and
inserting a period; and
(C) in subparagraph (B), by striking the second sentence.
(e) E NHANCED V OUCHER P ROGRAM .—Section 8(t)(1)(D) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is
amended by striking “income” each place such term appears and
inserting “annual adjusted income”.
(f) P ROJECT -B ASED H OUSING .—Paragraph (3) of section 8(c) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is
amended by striking the last sentence.
(g) IMPACT ON PUBLIC HOUSING REVENUES .—
(1) A DJUSTMENTS TO OPERATING FORMULA .—If the Secretary
of Housing and Urban Development determines that the
application of subsections (a) through (e) of this section results in
a material and disproportionate reduction in the rental income of
certain public housing agencies during the first year in which such
subsections are implemented, the Secretary may make appropriate
adjustments in the formula income for such year of those agencies
experiencing such a reduction.
(2) HUD REPORTS ON REVENUE AND COST IMPACT .—In each
of the first two years after the first year in which subsections (a)
through (e) are implemented, the Secretary of Housing and Urban
Development shall submit a report to Congress identifying and
calculating the impact of changes made by such subsections and
section 104 of this Act on the revenues and costs of operating
public housing units, the voucher program for rental assistance
under section 8 of the United States Housing Act of 1937, and the
program under such section 8 for project-based rental assistance.
If such report identifies a material reduction in the net income of
public housing agencies nationwide or a material increase in the
costs of funding the voucher program or the project-based
assistance program, the Secretary shall include in such report
recommendations for legislative changes to reduce or eliminate
such a reduction.
(h) E FFECTIVE D ATE .—The Secretary of Housing and Urban
Development shall issue notice or regulations to implement this
section and this section shall take effect after such issuance, except
that this section may only take effect upon the commencement of a
calendar year.
(i) STUDY ON IMPACT ON ELDERLY AND DISABLED FAMILIES OF
DECREASED DEDUCTIONS IN INCOME.—
(1) STUDY.—The Secretary of Housing and Urban Development shall conduct a study to determine the impacts, on rents paid
by elderly and disabled individuals and families assisted under the
section 8 rental assistance and public housing programs under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), of any
decreases in the amounts of any deductions from income (for
purposes of section 3(b) of such Act (42 U.S.C. 1437a(b))), as
compared to such deductions under such section 3(b) as in effect
before the effectiveness of this section, resulting from the
amendments made by this section.

42 USC 1437a
note.
Determination.

Time periods.

Recommenda
tions.

Notice.
Regulations.
42 USC 1437a
note.

Determination.

130 STAT. 792
Time period.

PUBLIC LAW 114–201—JULY 29, 2016
(2) R EPORT .—The Secretary shall submit to the Congress a
report setting forth the results of the study conducted pursuant
to paragraph (1) not later than the expiration of the 12-month
period beginning on the date of the enactment of this Act.
(3) E FFECTIVE DATE .—Notwithstanding subsection (h) of
this section, this subsection shall take effect on the date of the
enactment of this Act.

SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVERINCOME FAMILIES.

Regulations.

Deadline.

Determination.

Subsection (a) of section 16 of the United States Housing Act
of 1937 (42 U.S.C. 1437n(a)) is amended by adding at the end the
following new paragraph:
“(5) L IMITATIONS ON TENANCY FOR OVER - INCOME FAMILIES .—
“(A) L IMITATIONS .—Except as provided in subparagraph
(D), in the case of any family residing in a dwelling unit of
public housing whose income for the most recent two
consecutive years, as determined pursuant to income reviews
conducted pursuant to section 3(a)(6), has exceeded the
applicable income limitation under subparagraph (C), the
public housing agency shall—
“(i) notwithstanding any other provision of this Act,
charge such family as monthly rent for the unit occupied
by such family an amount equal to the greater of—
“(I) the applicable fair market rental established under section 8(c) for a dwelling unit in the
same market area of the same size; or
“(II) the amount of the monthly subsidy provided under this Act for the dwelling unit, which
shall include any amounts from the Operating Fund
and Capital Fund under section 9 used for the unit,
as determined by the agency in accordance with
regulations that the Secretary shall issue to carry
out this subclause; or
“(ii) terminate the tenancy of such family in public
housing not later than 6 months after the income determination
described in subparagraph (A).
“(B) N OTICE .—In the case of any family residing in a
dwelling unit of public housing whose income for a year has
exceeded the applicable income limitation under
subparagraph (C), upon the conclusion of such year the
public housing agency shall provide written notice to such
family of the requirements under subparagraph (A).
“(C) I NCOME LIMITATION .—The income limitation
under this subparagraph shall be 120 percent of the median
income for the area, as determined by the Secretary with
adjustments for smaller and larger families, except that the
Secretary may establish income limitations higher or lower
than 120 percent of such median income on the basis of the
Secretary’s findings that such variations are necessary
because of prevailing levels of construction costs, or
unusually high or low family incomes, vacancy rates, or
rental costs.

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130 STAT. 793

“(D) E XCEPTION .—Subparagraph (A) shall not apply to a
family occupying a dwelling unit in public housing pursuant
to paragraph (5) of section 3(a) (42 U.S.C. 1437a(a)(5)).
“(E) REPORTS ON OVER-INCOME FAMILIES AND WAITING
LISTS.—The Secretary shall require that each public housing
agency shall—
“(i) submit a report annually, in a format required by the
Secretary, that specifies—
“(I) the number of families residing, as of the
end of the year for which the report is submitted, in
public housing administered by the agency who had
incomes exceeding the applicable income limitation
under subparagraph (C); and
“(I) the number of families, as of the end of
such year, on the waiting lists for admission to
public housing projects of the agency; and
“(ii) make the information reported pursuant to clause (i)
publicly available.”.
Public
information.

SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON
ASSETS.

Section 16 of the United States Housing Act of 1937 (42 U.S.C.
1437n) is amended by inserting after subsection (d) the following new
subsection:
“(e) ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.—
“(1) L IMITATION ON ASSETS .—Subject to paragraph (3) and
notwithstanding any other provision of this Act, a dwelling unit
assisted under this Act may not be rented and assistance under
this Act may not be provided, either initially or at each
recertification of family income, to any family—
“(A) whose net family assets exceed $100,000, as such
amount is adjusted annually by applying an inflationary
factor as the Secretary considers appropriate; or
“(B) who has a present ownership interest in, a legal
right to reside in, and the effective legal authority to sell,
real property that is suitable for occupancy by the family as
a residence, except that the prohibition under this
subparagraph shall not apply to—
“(i) any property for which the family is receiving
assistance under subsection (y) or (o)(12) of section 8 of this
Act;
“(ii) any person that is a victim of domestic violence; or
“(iii) any family that is offering such property for
sale.
“(2) NET FAMILY ASSETS.—
“(A) I N G E N E R A L .—For purposes of this subsection, the
D e f i n i t i o n . term ‘net family assets’ means, for all members of
the household, the net cash value of all assets after deducting
reasonable costs that would be incurred in disposing of real
property, savings, stocks, bonds, and other forms of capital
investment. Such term does not include interests in Indian
trust land, equity in property for which the family is receiving
assistance under subsection (y) or (o)(12) of section 8, equity
accounts in homeownership programs

130 STAT. 794

Determination.

PUBLIC LAW 114–201—JULY 29, 2016
of the Department of Housing and Urban Development, or Family
Self Sufficiency accounts.
“(B) EXCLUSIONS .—Such term does not include—
“(i) the value of personal property, except for items
of personal property of significant value, as the Secretary
may establish or the public housing agency may
determine;
“(ii)
the value of any retirement account;
“(iii) real property for which the family does not
have the effective legal authority necessary to sell such
property;
“(iv) any amounts recovered in any civil action or
settlement based on a claim of malpractice, negligence, or other breach of duty owed to a member of
the family and arising out of law, that resulted in a
member of the family being disabled;
“(iii)
the value of any Coverdell education
savings account under section 530 of the Internal
Revenue Code of 1986 or any qualified tuition program
under section 529 of such Code; and
“(v) such other exclusions as the Secretary may
establish.
“(C) T RUST FUNDS .—In cases in which a trust fund has
been established and the trust is not revocable by, or under
the control of, any member of the family or household, the
value of the trust fund shall not be considered an asset of a
family if the fund continues to be held in trust. Any income
distributed from the trust fund shall be considered income
for purposes of section 3(b) and any calculations of annual
family income, except in the case of medical expenses for a
minor.
“(3) SELF-CERTIFICATION.—
“(A) N ET FAMILY ASSETS .—A public housing agency or
owner may determine the net assets of a family, for purposes
of this section, based on a certification by the family that the
net assets of such family do not exceed $50,000, as such
amount is adjusted annually by applying an inflationary
factor as the Secretary considers appropriate.
“(B) N O CURRENT REAL PROPERTY OWNERSHIP.—A
public housing agency or owner may determine compliance
with paragraph (1)(B) based on a certification by the family
that such family does not have any current ownership interest
in any real property at the time the agency or owner reviews
the family’s income.
“(A) STANDARDIZED FORMS.—The Secretary may develop
standardized forms for the certifications referred to in
subparagraphs (A) and (B).
“(4) C OMPLIANCE FOR PUBLIC HOUSING DWELLING UNITS .—
When recertifying family income with respect to families
residing in public housing dwelling units, a public housing
agency may, in the discretion of the agency and only pursuant to
a policy that is set forth in the public housing agency plan under
section 5A for the agency, choose not to enforce the limitation
under paragraph (1).
“(5) E NFORCEMENT .—When recertifying the income of a
family residing in a dwelling unit assisted under this Act,

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 795

a public housing agency or owner may choose not to enforce the
limitation under paragraph (1) or may establish exceptions to such
limitation based on eligibility criteria, but only pursuant to a
policy that is set forth in the public housing agency plan under
section 5A for the agency or under a policy adopted by the owner.
Eligibility criteria for establishing exceptions may provide for
separate treatment based on family type and may be based on
different factors, such as age, disability, income, the ability of the
family to find suitable alternative housing, and whether supportive
services are being provided.
“(6)
A UTHORITY TO DELAY EVICTIONS .—In the
case of a
family residing in a dwelling unit assisted under this Act who
does not comply with the limitation under paragraph (1), the
public housing agency or project owner may delay eviction or
termination of the family based on such noncompliance for a
period of not more than 6 months.
“(7)
VERIFYING INCOME.—
“(A) Beginning in fiscal year 2018, the Secretary shall
require public housing agencies to require each applicant
for, or recipient of, benefits under this Act to provide
authorization by the applicant or recipient (or by any other
person whose income or resources are material to the determination of the eligibility of the applicant or recipient for
such benefits) for the public housing agency to obtain
(subject to the cost reimbursement requirements of section
1115(a) of the Right to Financial Privacy Act) from any
financial institution (within the meaning of section 1101(1)
of such Act) any financial record (within the meaning of
section 1101(2) of such Act) held by the institution with
respect to the applicant or recipient (or any such other
person) whenever the public housing agency determines the
record is needed in connection with a determination with
respect to such eligibility or the amount of such benefits.
“(B) Notwithstanding section 1104(a)(1) of the Right to
Financial Privacy Act, an authorization provided by an
applicant or recipient (or any other person whose income or
resources are material to the determination of the eligibility
of the applicant or recipient) pursuant to subparagraph (A)
of this paragraph shall remain effective until the earliest
of—
“(i) the rendering of a final adverse decision on the
applicant’s application for eligibility for benefits under this
Act;
“(ii) the cessation of the recipient’s eligibility for benefits
under this Act; or
“(i) the express revocation by the applicant or
recipient (or such other person referred to in subparagraph
(A)) of the authorization, in a written notification to the
Secretary.
“(C)(i) An authorization obtained by the public housing
agency pursuant to this paragraph shall be considered to
meet the requirements of the Right to Financial Privacy Act
for purposes of section 1103(a) of such Act, and need not be
furnished to the financial institution, notwithstanding
section 1104(a) of such Act.

Time period.

Effective date.
Records.
Determination.

Notification.

130 STAT. 796

Notification.

PUBLIC LAW 114–201—JULY 29, 2016
“(ii) The certification requirements of section 1103(b)
of the Right to Financial Privacy Act shall not apply to
requests by the public housing agency pursuant to an
authorization provided under this clause.
“(iii) A request by the public housing agency pursuant to
an authorization provided under this clause is deemed to meet
the requirements of section 1104(a)(3) of the Right to
Financial Privacy Act and the flush language of section 1102
of such Act.
“(iv) The public housing agency shall inform any person who
provides authorization pursuant to this paragraph of the duration
and scope of the authorization.
“(D) If an applicant for, or recipient of, benefits under
this Act (or any such other person referred to in subparagraph
(A)) refuses to provide, or revokes, any authorization made
by the applicant or recipient for the public housing agency to
obtain from any financial institution any financial record, the
public housing agency may, on that basis, determine that the
applicant or recipient is ineligible for benefits under this
title.”.
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES.

Definition.

Paragraph (11) of section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)(11)) is amended—
(1) by striking “(11) L EASING OF UNITS OWNED BY PHA .—
If” and inserting the following:
“(11) LEASING OF UNITS OWNED BY PHA.—
“(A) INSPECTIONS AND RENT DETERMINATIONS .—If”; and
(2) by adding at the end the following new subparagraph:
“(B) U NITS OWNED BY PHA .—For purposes of this subsection, the term ‘owned by a public housing agency’ means,
with respect to a dwelling unit, that the dwelling unit is in a
project that is owned by such agency, by an entity wholly
controlled by such agency, or by a limited liability company
or limited partnership in which such agency (or an entity
wholly controlled by such agency) holds a controlling interest
in the managing member or general partner. A dwelling unit
shall not be deemed to be owned by a public housing agency
for purposes of this subsection because the agency holds a fee
interest as ground lessor in the property on which the unit is
situated, holds a security interest under a mortgage or deed of
trust on the unit, or holds a non-controlling interest in an
entity which owns the unit or in the managing member or
general partner of an entity which owns the unit.”.
SEC. 106. PHA PROJECT-BASED ASSISTANCE.

(a) IN GENERAL.—Paragraph (13) of section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended—
(1) by striking “structure” each place such term appears and
inserting “project”;
(2) by striking subparagraph (B) and inserting the following new
subparagraph:
“(B) PERCENTAGE LIMITATION.—
“(i) I N GENERAL .—Subject to clause (ii), a public
housing agency may use for project-based assistance
under this paragraph not more than 20 percent of the
authorized units for the agency.

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 797

“(ii) E XCEPTION .—A public housing agency may
use up to an additional 10 percent of the authorized units
for the agency for project-based assistance under this
paragraph, to provide units that house individuals and
families that meet the definition of homeless under
section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302), that house families with
veterans, that provide supportive housing to persons with
disabilities or elderly persons, or that are located in areas
where vouchers under this subsection are difficult to use,
as specified in subparagraph (D)(ii)(II). Any units of
project-based assistance that are attached to units
previously subject to federally required rent restrictions
or receiving another type of long-term housing subsidy
provided by the Secretary shall not count toward the
percentage limitation under clause (i) of this
subparagraph. The Secretary may, by regulation,
establish additional categories for the exception under
this clause.”;
(3) by striking subparagraph (D) and inserting the following new
subparagraph:
“(D) INCOME-MIXING REQUIREMENT.—
“(i) I N GENERAL .—Except as provided in clause
(ii), not more than the greater of 25 dwelling units or 25
percent of the dwelling units in any project may be
assisted under a housing assistance payment contract
for project-based assistance pursuant to this paragraph.
For purposes of this subparagraph, the term ‘project’
means a single building, multiple contiguous buildings,
or multiple buildings on contiguous parcels of land.
“(ii)
EXCEPTIONS.—
“(I) C ERTAIN FAMILIES .—The limitation under
clause (i) shall not apply to dwelling units assisted
under a contract that are exclusively made available
to elderly families or to households eligible for
supportive services that are made available to the
assisted residents of the project, according to
standards for such services the Secretary may
establish.
“(II) C ERTAIN AREAS .—With respect to areas in
which tenant-based vouchers for assistance under
this subsection are difficult to use, as determined by
the Secretary, and with respect to census tracts with
a poverty rate of 20 percent or less, clause (i) shall
be applied by substituting ‘40 percent’ for ‘25
percent’, and the Secretary may, by regulation,
establish additional conditions.
“(II) C ERTAIN CONTRACTS .—The limitation
under clause (i) shall not apply with respect to
contracts or renewal of contracts under which a
greater percentage of the dwelling units in a project
were assisted under a housing assistance payment
contract for project-based assistance pursuant to
this paragraph on the date of the enactment of the
Housing Opportunity Through Modernization Act
of 2016.

Regulations.

Definition.

Determination.
Applicability.
Regulations.

130 STAT. 798

PUBLIC LAW 114–201—JULY 29, 2016
“(IV) C E R T A I N P R O P E R T I E S .—Any units of
project-based assistance under this paragraph that
are attached to units previously subject to federally
required rent restrictions or receiving other projectbased assistance provided by the Secretary shall not
count toward the percentage limitation imposed by
this subparagraph (D).
“(iii) A DDITIONAL MONITORING AND OVERS IGHT
REQUIREMENTS .—The Secretary may establish additional requirements for monitoring and oversight of
projects in which more than 40 percent of the dwelling
units are assisted under a housing assistance payment
contract for project-based assistance pursuant to this
paragraph.”;
(4) by striking subparagraph (F) and inserting the following new
subparagraph:
“(F) CONTRACT TERM.—
“(i) TERM.—A housing assistance payment contract
pursuant to this paragraph between a public housing
agency and the owner of a project may have a term of up
to 20 years, subject to—
“(I) the availability of sufficient appropriated
funds for the purpose of renewing expiring contracts
for assistance payments, as provided in
appropriation Acts and in the agency’s annual contributions contract with the Secretary, provided that
in the event of insufficient appropriated funds,
payments due under contracts under this paragraph
shall take priority if other cost-saving measures that
do not require the termination of an existing contract
are available to the agency; and
“(II) compliance with the inspection requirements under paragraph (8), except that the agency
shall not be required to make biennial inspections of
each assisted unit in the development.
“(ii) A DDITION OF ELIGIBLE UNITS .—Subject to the
limitations of subparagraphs (B) and (D), the agency and
the owner may add eligible units within the same project
to a housing assistance payments contract at any time
during the term thereof without being subject to any
additional competitive selection procedures.
“(iii) H OUSING UNDER CONSTRUCTION OR RECENTLY
CONSTRUCTED .—An agency may enter into a housing
assistance payments contract with an owner for any unit
that does not qualify as existing housing and is under
construction or recently has been constructed whether or
not the agency has executed an agreement to enter into a
contract with the owner, provided that the owner
demonstrates compliance with applicable requirements
prior to execution of the housing assistance payments
contract. This clause shall not subject a housing
assistance payments contract for existing housing under
this paragraph to such requirements or otherwise limit
the extent to which a unit may be assisted as existing
housing.
“(iv) ADDITIONAL CONDITIONS.—The contract may
specify additional conditions, including with respect

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 799

to continuation, termination, or expiration, and shall
specify that upon termination or expiration of the contract without extension, each assisted family may elect
to use its assistance under this subsection to remain in
the same project if its unit complies with the inspection
requirements under paragraph (8), the rent for the unit is
reasonable as required by paragraph (10)(A), and the
family pays its required share of the rent and the amount,
if any, by which the unit rent (including the amount
allowed for tenant-based utilities) exceeds the applicable
payment standard.”;
(5) in subparagraph (G), by striking “15 years” and inserting
“20 years”;
(6) by striking subparagraph (I) and inserting the following
new subparagraph:
“(I) R ENT ADJUSTMENTS .—A housing assistance pay Contracts.
ments contract pursuant to this paragraph entered into after
the date of the enactment of the Housing Opportunity
Through Modernization Act of 2016 shall provide for annual
rent adjustments upon the request of the owner, except that—
“(i) by agreement of the parties, a contract may
allow a public housing agency to adjust the rent for
covered units using an operating cost adjustment factor
established by the Secretary pursuant to section 524(c)
of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (which shall not result in a
negative adjustment), in which case the contract may
require an additional adjustment, if requested, up to the
reasonable rent periodically during the term of the
contract, and shall require such an adjustment, if
requested, upon extension pursuant to subparagraph (G);
“(ii)
the adjusted rent shall not exceed the maximum rent permitted under subparagraph (H);
“(iii)
the contract may provide that the
maximum rent permitted for a dwelling unit shall not
be less than the initial rent for the dwelling unit under
the initial housing assistance payments contract
covering the units; and
“(iv)
the provisions of subsection (c)(2)(C) shall
not apply.”;
(7) in subparagraph (J)—
(A) in the first sentence—
(i) by striking “shall” and inserting “may”; and
(ii) by inserting before the period the following:
“or may permit owners to select applicants from sitebased waiting lists as specified in this subparagraph”;
(B) by striking the third sentence and inserting the
following: “The agency or owner may establish preferences
or criteria for selection for a unit assisted under this paragraph that are consistent with the public housing agency plan
for the agency approved under section 5A and that give
preference to families who qualify for voluntary services,
including disability-specific services, offered in conjunction
with assisted units.”; and

130 STAT. 800
Procedures.

Disclosure.

Notification.
Public
information.

Notice.
Regulations.
42 USC 1437f
note.

PUBLIC LAW 114–201—JULY 29, 2016

(C) by striking the fifth and sixth sentences and inserting
the following: “A public housing agency may establish and
utilize procedures for owner-maintained site-based waiting
lists, under which applicants may apply at, or otherwise
designate to the public housing agency, the project or projects
in which they seek to reside, except that all eligible applicants
on the waiting list of an agency for assistance under this
subsection shall be permitted to place their names on such
separate list, subject to policies and procedures established
by the Secretary. All such procedures shall comply with title
VI of the Civil Rights Act of 1964, the Fair Housing Act,
section 504 of the Rehabilitation Act of 1973, and other
applicable civil rights laws. The owner or manager of a
project assisted under this paragraph shall not admit any
family to a dwelling unit assisted under a contract pursuant
to this paragraph other than a family referred by the public
housing agency from its waiting list, or a family on a sitebased waiting list that complies with the requirements of this
subparagraph. A public housing agency shall disclose to each
applicant all other options in the selection of a project in
which to reside that are provided by the public housing
agency and are available to the applicant.”;
(8) in subparagraph (M)(ii), by inserting before the period at the
end the following: “relating to funding other than housing assistance
payments”; and
(9) by adding at the end the following new subparagraphs:
“(N) S TRUCTURE OWNED BY AGENCY .—A public housing
agency engaged in an initiative to improve, develop, or
replace a public housing property or site may attach assistance
to an existing, newly constructed, or rehabilitated structure in
which the agency has an ownership interest or which the
agency has control of without following a competitive
process, provided that the agency has notified the public of its
intent through its public housing agency plan and subject to
the limitations and requirements of this paragraph.
“(O) S PECIAL PURPOSE VOUCHERS .—A public housing
agency that administers vouchers authorized under subsection (o)(19) or (x) of this section may provide such assistance in accordance with the limitations and requirements of
this paragraph, without additional requirements for approval
by the Secretary.”.
(b) E FFECTIVE D ATE .—The Secretary of Housing and Urban
Development shall issue notice or regulations to implement subsection (a) of this section and such subsection shall take effect upon
such issuance.
SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT.

(a) I N G ENERAL .—Paragraph (1) of section 8(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended—
(1) by inserting “(A)” after the paragraph designation;
(2) by striking the fourth, seventh, eighth, and ninth sentences; and
(3) by adding at the end the following:
“(B) Fair market rentals for an area shall be published not
less than annually by the Secretary on the site of the Department
Web posting.

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 801

on the World Wide Web and in any other manner specified by the
Secretary. Notice that such fair market rentals are being published
shall be published in the Federal Register, and such fair market rentals
shall become effective no earlier than 30 days after the date of such
publication. The Secretary shall establish a procedure for public
housing agencies and other interested parties to comment on such fair
market rentals and to request, within a time specified by the Secretary,
reevaluation of the fair market rentals in a jurisdiction before such
rentals become effective. The Secretary shall cause to be published
for comment in the Federal Register notices of proposed material
changes in the methodology for estimating fair market rentals and
notices specifying the final decisions regarding such proposed
substantial methodological changes and responses to public
comments.”.
(b) P AYMENT S TANDARD .—Subparagraph (B) of section 8(o)(1)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B))
is amended by inserting before the period at the end the following: “,
except that no public housing agency shall be required as a result of
a reduction in the fair market rental to reduce the payment standard
applied to a family continuing to reside in a unit for which the family
was receiving assistance under this section at the time the fair market
rental was reduced. The Secretary shall allow public housing agencies
to request exception payment standards within fair market rental areas
subject to criteria and procedures established by the Secretary”.
(c) EFFECTIVE DATE.—The amendments made by this section shall take
effect upon the date of the enactment of this Act.
SEC. 108. COLLECTION OF UTILITY DATA.

Notice.
Federal Register,
publication.
Effective date.
Time period.

Criteria.
Procedures.

42 USC 1437f
note.

Section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) is amended by adding at the end the following new
paragraph:
“(20) COLLECTION OF UTILITY DATA.—
“(A) P UBLICATION .—The Secretary shall, to the extent
that data can be collected cost effectively, regularly publish Determination.
such data regarding utility consumption and costs in local
areas as the Secretary determines will be useful for the
establishment of allowances for tenant-paid utilities for
families assisted under this subsection.
“(B) USE OF DATA.—The Secretary shall provide such data in
a manner that—
“(i) avoids unnecessary administrative burdens for
public housing agencies and owners; and
“(i) protects families in various unit sizes and
building types, and using various utilities, from high rent
and utility cost burdens relative to income.”.
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

(a) CAPITAL FUND REPLACEMENT RESERVES.—Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amended—
(1) in subsection (j), by adding at the end the following new
paragraph:
“(7) T REATMENT OF REPLACEMENT RESERVE .—The requirements of this subsection shall not apply to funds held in replacement reserves established pursuant to subsection (n).”; and
(2) by adding at the end the following new subsection: “(n)
ESTABLISHMENT OF REPLACEMENT RESERVES.—

130 STAT. 802

Determination.

Regulations.

PUBLIC LAW 114–201—JULY 29, 2016

“(1) I N GENERAL .—Public housing agencies shall be permitted
to establish a replacement reserve to fund any of the capital
activities listed in subsection (d)(1).
“(2) SOURCE AND AMOUNT OF FUNDS FOR REPLACEMENT
RESERVE .—At any time, a public housing agency may deposit funds
from such agency’s Capital Fund into a replacement reserve,
subject to the following:
“(A) At the discretion of the Secretary, public housing
agencies may transfer and hold in a replacement reserve funds
originating from additional sources.
“(B) No minimum transfer of funds to a replacement reserve
shall be required.
“(C) At any time, a public housing agency may not hold
in a replacement reserve more than the amount the public
housing authority has determined necessary to satisfy the
anticipated capital needs of properties in its portfolio assisted
under this section, as outlined in its Capital Fund 5-Year
Action Plan, or a comparable plan, as determined by the
Secretary.
“(D) The Secretary may establish, by regulation, a
maximum replacement reserve level or levels that are below
amounts determined under subparagraph (C), which may be
based upon the size of the portfolio assisted under this
section or other factors.
“(3) T RANSFER OF OPERATING FUNDS .—In first establishing
a replacement reserve, the Secretary may allow public housing
agencies to transfer more than 20 percent of its operating funds
into its replacement reserve.
“(4) E XPENDITURE .—Funds in a replacement reserve may be
used for purposes authorized by subsection (d)(1) and contained
in its Capital Fund 5-Year Action Plan.
“(5) MANAGEMENT AND REPORT.—The Secretary shall establish appropriate accounting and reporting requirements to
ensure that public housing agencies are spending funds on
eligible projects and that funds in the replacement reserve are
connected to capital needs.”.
(b) F LEXIBILITY OF O PERATING FUND AMOUNTS.—Paragraph (1)
of section 9(g) of the United States Housing Act of 1937 (42 U.S.C.
1437g(g)(1)) is amended—
(1) by striking “(1)” and all that follows through “—Of’’
and inserting the following:
“(1) FLEXIBILITY IN USE OF FUNDS .—
“(A) F LEXIBILITY FOR CAPITAL FUND AMOUNTS .—Of’’;
and
(2) by adding at the end the following new subparagraph:
“(B) F LEXIBILITY FOR OPERATING FUND AMOUNTS .—Of
any amounts appropriated for fiscal year 2016 or any fiscal
year thereafter that are allocated for fiscal year 2016 or any
fiscal year thereafter from the Operating Fund for any public
housing agency, the agency may use not more than 20
percent for activities that are eligible under subsection (d)
for assistance with amounts from the Capital Fund, but only
if the public housing plan under section 5A for the agency
provides for such use.”.

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 803

SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT
OF FOSTER CARE.

Section 8(x) of the United States Housing Act of 1937 (42 U.S.C.
1437f(x)) is amended—
(1) in paragraph (2)(B)—
(A) by striking “18 months” and inserting “36 months”;
(B) by striking “21 years of age” and inserting “24 years of
age”; and
(C) by inserting after “have left foster care” the following: “, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H) of
the Social Security Act, and is homeless or is at risk of
becoming homeless”;
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following new paragraph:
“(4) C OORDINATION BETWEEN PUBLIC HOUSING AGENCIES
AND PUBLIC CHILD WELFARE AGENCIES .—The Secretary shall, not
later than the expiration of the 180-day period beginning on the
date of the enactment of the Housing Opportunity Through
Modernization Act of 2016 and after consultation with other
appropriate Federal agencies, issue guidance to improve
coordination between public housing agencies and public child
welfare agencies in carrying out the program under this subsection,
which shall provide guidance on—
“(A) identifying eligible recipients for assistance under this
subsection;
“(B) coordinating with other local youth and family
providers in the community and participating in the Continuum of Care program established under subtitle C of title
IV of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11381 et seq.);
“(C) implementing housing strategies to assist eligible
families and youth;
“(D) aligning system goals to improve outcomes for
families and youth and reducing lapses in housing for
families and youth; and
“(E) identifying resources that are available to eligible
families and youth to provide supportive services available
through parts B and E of title IV of the Social Security Act (42
U.S.C. 621 et seq.; 670 et seq.) or that the head of household
of a family or youth may be entitled to receive under section
477 of the Social Security Act (42 U.S.C. 677).”.

Deadline.
Time period.
Effective date.
Consultation.
Guidance.

SEC. 111. PUBLIC HOUSING HEATING GUIDELINES.

Section 9 of the United States Housing Act of 1937 (42 U.S.C.
1437g), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new subsection:
“(o) P UBLIC H OUSING H EATING G UIDELINES .—The Secretary Publication.
shall publish model guidelines for minimum heating requirements
for public housing dwelling units operated by public housing agencies receiving assistance under this section.”.
SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING.

(a) IN GENERAL.—Section 8(o)(12) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(12)) is amended—

130 STAT. 804

Notice.
42 USC 1437f
note.

PUBLIC LAW 114–201—JULY 29, 2016

(1)in subparagraph (A), by striking the period at the end
of the first sentence and all that follows through “of’’ in the
second sentence and inserting “and rents”; and
(2)in subparagraph (B)—
(A) in clause (i), by striking “the rent” and all that
follows and inserting the following: “rent shall mean the
sum of the monthly payments made by a family assisted
under this paragraph to amortize the cost of purchasing the
manufactured home, including any required insurance and
property taxes, the monthly amount allowed for tenant-paid
utilities, and the monthly rent charged for the real property
on which the manufactured home is located, including
monthly management and maintenance charges.”;
(B) by striking clause (ii); and
(C) in clause (iii)—
(i) by inserting after the period at the end the
following: “If the amount of the monthly assistance
payment for a family exceeds the monthly rent charged
for the real property on which the manufactured home is
located, including monthly management and maintenance
charges, a public housing agency may pay the remainder
to the family, lender or utility company, or may choose
to make a single payment to the family for the entire
monthly assistance amount.”; and
(ii) by redesignating such clause as clause (ii).
(b) E FFECTIVE D ATE .—The Secretary of Housing and Urban
Development shall issue notice to implement the amendments made
by subsection (a) and such amendments shall take effect upon such
issuance.
SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS.

Section 214(a)(7) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(a)(7)) is amended by striking “such
alien” and all that follows through the period at the end and inserting
“any citizen or national of the United States shall be entitled to a
preference or priority in receiving financial assistance before any such
alien who is otherwise eligible for assistance.”.
SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD
MEMBER REQUIREMENT.

Establishment.

Subsection (b) of section 2 of the United States Housing Act of 1937
(42 U.S.C. 1437(b)) is amended—
(1) in paragraph (1), by striking “paragraph (2)” and inserting
“paragraphs (2) and (3)”;
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new paragraph:
“(3) EXCEPTION FOR CERTAIN JURISDICTIONS.—
“(A) EXCEPTION.—A covered agency (as such term is
defined in subparagraph (C) of this paragraph) shall not be required
to include on the board of directors or a similar governing board of
such agency a member described in paragraph (1).
“(B) A DVISORY BOARD REQUIREMENT .—Each covered
agency that administers Federal housing assistance under
section 8 (42 U.S.C. 1437f) that chooses not to include

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 805

a member described in paragraph (1) on the board of directors or a similar governing board of the agency shall establis h an a dv is o ry b oa rd o f no t le s s th an 6 res ide n ts o f
public housing or recipients of assistance under section
8 (42 U.S.C. 1437f) to provide advice and comment to
the agency or other administering entity on issues related
to public housing and section 8. Such advisory board shall
meet not less than quarterly.
“(C) C OVERED AGENCY OR ENTITY .—For purposes of Definition.
this paragraph, the term ‘covered agency’ means a public
housing agency or such other entity that administers Federal housing assistance for—
“(I) the Housing Authority of the county of Los
Angeles, California; or
“(ii) any of the States of Alaska, Iowa, and Mississippi.”.

TITLE II—RURAL HOUSING
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN
APPROVAL.

Subsection (h) of section 502 of the Housing Act of 1949 (42
U.S.C. 1472(h)) is amended by adding at the end the following
new paragraph:
“(18) D ELEGATION OF APPROVAL .—The Secretary may dele Standards.
gate, in part or in full, the Secretary’s authority to approve
and execute binding Rural Housing Service loan guarantees
pursuant to this subsection to certain preferred lenders, in
accordance with standards established by the Secretary.”.
SEC. 202. GUARANTEED UNDERWRITING USER FEE.

Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is
amended by adding at the end the following new subsection:
“(i) GUARANTEED UNDERWRITING USER FEE.—
“(1) A UTHORITY ; MAXIMUM AMOUNT .—The Secretary may
assess and collect a fee for a lender to access the automated
underwriting systems of the Department in connection with such
lender’s participation in the single family loan program under
this section and only in an amount necessary to cover the costs
of information technology enhancements, improvements,
maintenance, and development for automated underwriting
systems used in connection with the single family loan program
under this section, except that such fee shall not exceed $50 per
loan.
“(2) CREDITING; AVAILABILITY.—Any amounts collected from
such fees shall be credited to the Rural Development Expense Account
as offsetting collections and shall remain available until expended, in
the amounts provided in appropriation Acts, solely for expenses
described in paragraph (1).”.

130 STAT. 806

PUBLIC LAW 114–201—JULY 29, 2016

TITLE III—FHA MORTGAGE INSURANCE
FOR CONDOMINIUMS
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE
INSURANCE FOR CONDOMINIUMS.

Determination.

Deadline.
Time period.
Effective date.
Regulations.
Standards.
Penalties.
Applicability.

Section 203 of the National Housing Act (12 U.S.C. 1709) is
amended by adding at the end the following new subsection:
“(y) REQUIREMENTS FOR MORTGAGES FOR CONDOMINIUMS.—
“(1) PROJECT RECERTIFICATION REQUIREMENTS.—Notwith-standing
any other law, regulation, or guideline of the Secretary, including chapter 2.4 of the Condominium Project Approval
and Processing Guide of the FHA, the Secretary shall streamline
the project certification requirements that are applicable to the
insurance under this section for mortgages
for condominium projects so that recertifications are substantially
less burdensome than certifications. The Secretary shall consider
lengthening the time between certifications for approved properties,
and allowing updating of information
rather than resubmission.
“(2) C OMMERCIAL SPACE REQUIREMENTS .—Notwithstanding any
other law, regulation, or guideline of the Secretary, including chapter
2.1.3 of the Condominium Project Approval and Processing Guide of
the FHA, in providing for exceptions
to the requirement for the insurance of a mortgage on a condominium property under this section regarding the percentage of the
floor space of a condominium property that may be used for
nonresidential or commercial purposes, the Secretary
shall provide that—
“(A)
any request for such an exception and the determination of the disposition of such request may be made, at the option
of the requester, under the direct endorsement
lender review and approval process or under the HUD review and
approval process through the applicable field office of the Department;
and
“(B)
in determining whether to allow such an exception
for a condominium property, factors relating to the economy for the
locality in which such project is located or specific to project, including
the total number of family units in the project, shall be considered.
Not later than the expiration of the 90-day period beginning on the
date of the enactment of this paragraph, the Secretary shall issue
regulations to implement this paragraph, which shall include any
standards, training requirements, and remedies and penalties that the Secretary considers appropriate.
“(3) T RANSFER FEES .—Notwithstanding any other law, regulation, or guideline of the Secretary, including chapter 1.8.8 of the
Condominium Project Approval and Processing Guide
of the FHA and section 203.41 of the Secretary’s regulations (24 CFR
203.41), existing standards of the Federal Housing Finance Agency
relating to encumbrances under private transfer fee covenants shall
apply to the insurance of mortgages
by the Secretary under this section to the same extent and in the
same manner that such standards apply to the purchasing,
investing in, and otherwise dealing in mortgages by the Federal
National Mortgage Association and the Federal
Federal Register, Home Loan Mortgage Corporation. If the provisions of part
publication.

Notice.
Deadline.

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 807

1228 of the Director of the Federal Housing Finance Agency’s
regulations (12 CFR part 1228) are amended or otherwise
changed after the date of the enactment of this paragraph, the
Secretary of Housing and Urban Development shall adopt any
such amendments or changes for purposes of this paragraph,
unless the Secretary causes to be published in the Federal
Register a notice explaining why the Secretary will disregard
such amendments or changes within 90 days after the effective
date of such amendments or changes.
“(4) OWNER-OCCUPANCY REQUIREMENT.—
“(A) E STABLISHMENT OF PERCENTAGE REQUIREMENT .—
Not later than the expiration of the 90-day period beginning
on the date of the enactment of this paragraph, the Secretary
shall, by rule, notice, or mortgagee letter, issue guidance
regarding the percentage of units that must be occupied by
the owners as a principal residence or a secondary residence
(as such terms are defined by the Secretary), or must have
been sold to owners who intend to meet such occupancy
requirements, including justifications for the percentage
requirements, in order for a condominium project to be
acceptable to the Secretary for insurance under this section
of a mortgage within such condominium property.
“(B) F AILURE TO ACT .—If the Secretary fails to issue
Applicability.

the guidance required under subparagraph (A) before the
expiration of the 90-day period specified in such clause,
the following provisions shall apply:
“(i)
35 PERCENT REQUIREMENT .—In order
for a condominium project to be acceptable to the
Secretary for insurance under this section, at least 35
percent of all family units (including units not covered
by FHA-insured mortgages) must be occupied by the
owners as a principal residence or a secondary residence
(as such terms are defined by the Secretary), or must
have been sold to owners who intend to meet such
occupancy requirement.
“(ii)
O THER
CONSIDERATIONS .—The
Secretary may increase the percentage applicable
pursuant to clause (i) to a condominium project on a
project-by-project or regional basis, and in determining
such percentage for a project shall consider factors
relating to the economy for the locality in which such
project is located or specific to project, including the
total number of family units in the project.”.

TITLE IV—HOUSING REFORMS FOR THE
HOMELESS AND FOR VETERANS
SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF
CARE PROGRAM.

(a) DEFINITION.—Subtitle C of the McKinney-Vento Homeless
Assistance Act is amended—
(1) by redesignating sections 432 and 433 (42 U.S.C. 11387,
11388) as sections 433 and 434, respectively; and
(2) by inserting after section 431 (42 U.S.C. 11386e) the following
new section:

Deadline.
Time period.
Effective date.
Regulations.
Notice.
Guidance.

130 STAT. 808

PUBLIC LAW 114–201—JULY 29, 2016

42 USC 11386f.

“SEC. 432. GEOGRAPHIC AREAS.

Notice.

“(a) REQUIREMENT TO DEFINE.—For purposes of this subtitle, the term
‘geographic area’ shall have such meaning as the Secretary shall by notice
provide.
“(b) I SSUANCE OF N OTICE .—Not later than the expiration of the
90-day period beginning on the date of the enactment of the
Housing Opportunity Through Modernization Act of 2016, the Secretary shall issue a notice setting forth the definition required by
subsection (a).”.
(b) C LERICAL A MENDMENT .—The table of contents in section
101(b) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11301 note) is amended by striking the items relating to sections 432
and 433 and inserting the following new items:

Deadline.
Time period.
Effective date.

“Sec. 432. Geographic areas.
“Sec. 433. Regulations.
“Sec. 434. Reports to Congress.”.

SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL
REDEVELOPMENT AUTHORITIES IN EMERGENCY SOLUTIONS GRANTS.

Section 414(c) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11373(c)) is amended—
(1) in the subsection heading, by inserting “, PUBLIC HOUSING
AGENCIES, AND LOCAL REDEVELOPMENT AUTHORITIES” after
“ORGANIZATIONS”; and
(2) in the first sentence, by inserting before the period at the
end the following: “, to public housing agencies (as defined under
section 3(b)(6) of the United States Housing Act of 1937), or to
local redevelopment authorities (as defined under State law)”.
SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

(a) T RANSFER OF P OSITION TO O FFICE OF THE S ECRETARY .—
Section 4 of the Department of Housing and Urban Development Act
(42 U.S.C. 3533) is amended by adding at the end the following new
subsection:
“(h) SPECIAL ASSISTANT FOR VETERANS AFFAIRS.—
“(1) P OSITION .—There shall be in the Office of the Secretary
a Special Assistant for Veterans Affairs, who shall report directly
to the Secretary.
“(2) A PPOINTMENT .—The Special Assistant for Veterans
Affairs shall be appointed based solely on merit and shall be
covered under the provisions of title 5, United States Code,
governing appointments in the competitive service.
“(3) RESPONSIBILITIES.—The Special Assistant for Veterans
Affairs shall be responsible for—
“(A) ensuring veterans have fair access to housing and
homeless assistance under each program of the Department
providing either such assistance;
“(B) coordinating all programs and activities of the
Department relating to veterans;
“(C) serving as a liaison for the Department with the
Department of Veterans Affairs, including establishing and
maintaining relationships with the Secretary of Veterans Affairs;

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 809

“(D) serving as a liaison for the Department, and establishing and maintaining relationships with the United States
Interagency Council on Homelessness and officials of State,
local, regional, and nongovernmental organizations
concerned with veterans;
“(E) providing information and advice regarding—
“(i) sponsoring housing projects for veterans
assisted under programs administered by the Department;
or
“(ii) assisting veterans in obtaining housing or
homeless assistance under programs administered by the
Department;
“(F) coordinating with the Secretary of Housing and Urban
Development and the Secretary of Veterans Affairs in carrying out
section 404 of the Housing Opportunity Through Modernization
Act of 2016;
“(G) collaborating with the Department of Veterans
Affairs on making joint recommendations to the Congress,
the Secretary of Housing and Urban Development, and the
Secretary of Veterans Affairs on how to better coordinate and
improve services to veterans under both Department of
Housing and Urban Development and Department of Veteran
Affairs veterans housing programs, including ways to
improve the Independent Living Program of the Department
of Veteran Affairs; and
“(H) carrying out such other duties as may be assigned
to the Special Assistant by the Secretary or by law.”.
(b) T RANSFER OF P OSITION IN O FFICE OF D EPUTY A SSISTANT 42 USC 3533
S ECRETARY FOR S PECIAL N EEDS .—On the date that the initial Special note.
Assistant for Veterans Affairs is appointed pursuant to section 4(h)(2) Termination.
of the Department of Housing and Urban Development Act, as added
by subsection (a) of this section, the position of Special Assistant for
Veterans Programs in the Office of the Deputy Assistant Secretary for
Special Needs of the Department of Housing and Urban Development
shall be terminated.
SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESS- 42 USC 11313
note.
NESS.

(a) I N G ENERAL .—The Secretary of Housing and Urban Develop- Coordination.
ment and the Secretary of Veterans Affairs, in coordination with the
United States Interagency Council on Homelessness, shall submit
annually to the Committees of the Congress specified in subsection
(b), together with the annual reports required by such Secretaries
under section 203(c)(1) of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11313(c)(1)), a supplemental report that includes the
following information with respect to the preceding year:
(1) The same information, for such preceding year, that was
included with respect to 2010 in the report by the Secretary of
Housing and Urban Development and the Secretary of Veterans
Affairs entitled “Veterans Homelessness: A Supplemental Report
to the 2010 Annual Homeless Assessment Report to Congress”.
(2) Information regarding the activities of the Department of
Housing and Urban Development relating to veterans during such
preceding year, as follows:

130 STAT. 810

Summary.

PUBLIC LAW 114–201—JULY 29, 2016

(A) The number of veterans provided assistance under
the housing choice voucher program for Veterans Affairs
supported housing under section 8(o)(19) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), the
socioeconomic characteristics of such homeless veterans, and
the number, types, and locations of entities contracted under
such section to administer the vouchers.
(B) A summary description of the special considerations
made for veterans under public housing agency plans submitted
pursuant to section 5A of the United States Housing Act of
1937 (42 U.S.C. 1437c–1) and under comprehensive housing
affordability strategies submitted pursuant to section 105 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12705).
(C) A description of the activities of the Special Assistant for Veterans Affairs of the Department of Housing and
Urban Development.
(D) A description of the efforts of the Department of
Housing and Urban Development and the other members of
the United States Interagency Council on Homelessness to
coordinate the delivery of housing and services to veterans.
(E) The cost to the Department of Housing and Urban
Development of administering the programs and activities relating
to veterans.
(F) Any other information that the Secretary of Housing
and Urban Development and the Secretary of Veterans
Affairs consider relevant in assessing the programs and
activities of the Department of Housing and Urban
Development relating to veterans.
(b) COMMITTEES.—The Committees of the Congress specified in this
subsection are as follows:
(1) The Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) The Committee on Veterans’ Affairs of the Senate.
(3) The Committee on Appropriations of the Senate.
(4) The Committee on Financial Services of the House of
Representatives.
(5) The Committee on Veterans’ Affairs of the House of
Representatives.
(6) The Committee on Appropriations of the House of Representatives.
SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM
OF CARE PROGRAM REGULATIONS.

Deadline.
Time period.
Effective date.

Not later than the expiration of the 30-day period beginning on
the date of the enactment of this Act, the Secretary of Housing and
Urban Development shall re-open the period for public comment
regarding the Secretary’s interim rule entitled “Homeless Emergency
Assistance and Rapid Transition to Housing: Continuum of Care
Program”, published in the Federal Register on July 31, 2012 (77
Fed. Reg. 45422; Docket No. FR–5476–I–01). Upon reopening, such
comment period shall remain open for a period of not fewer than 60
days.

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 811

TITLE V—MISCELLANEOUS
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM 42 USC 3544 IN
CERTAIN FRAUD AND ABUSE PREVENTION MEASURES. note.

The Disaster Housing Assistance Program administered by the
Department of Housing and Urban Development shall be considered a
“program of the Department of Housing and Urban Development” under
section 904 of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544) for the purpose of income
verifications.
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP
HOMEOWNERSHIP OPPORTUNITY PROGRAM.

Section 11 of the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting after subsection (f) the
following new subsection:
“(g) E NERGY EFFICIENCY REQUIREMENTS.—The Secretary may not
require any dwelling developed using amounts from a grant made under
this section to meet any energy efficiency standards other than the
standards applicable at such time pursuant to section 109 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709)
to housing specified in subsection (a) of such section.”.
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

(a) DATA EXCHANGE STANDARDIZATION.—Title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the
end the following new section:
“SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPER42 USC 1437z–9.
ABILITY.

“(a) D ESIGNATION .—The Secretary shall, in consultation with an Consultation.
interagency work group established by the Office of Management and
Budget, and considering State government perspectives, designate data
exchange standards to govern, under this Act—
“(1) necessary categories of information that State agencies
operating related programs are required under applicable law to
electronically exchange with another State agency; and
“(2) Federal reporting and data exchange required under applicable
law.
“(b) REQUIREMENTS.—The data exchange standards required by
subsection (a) shall, to the maximum extent practicable—
“(1) incorporate a widely accepted, nonproprietary, searchable, computer-readable format, such as the eXtensible Markup
Language;
“(2) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National
Information Exchange Model;
“(3) incorporate interoperable standards developed and maintained
by Federal entities with authority over contracting and financial
assistance;
“(0) be consistent with and implement applicable accounting
principles;
“(4) be implemented in a manner that is cost- effective and
improves program efficiency and effectiveness; and
“(5) be capable of being continually upgraded as necessary.

130 STAT. 812

42 USC 1437z–9
note.
Deadline.
Regulations.

PUBLIC LAW 114–201—JULY 29, 2016

“(c) RULES OF CONSTRUCTION.—Nothing in this section requires a
change to existing data exchange standards for Federal reporting found to be
effective and efficient.”.
(b) APPLICABILITY.—
(1) I N GENERAL .—Not later than 2 years after the date of
the enactment of this Act, the Secretary of Housing and Urban
Development shall issue a proposed rule to carry out the
amendments made by subsection (a).
(1) R EQUIREMENTS .—The rule shall—
(A) identify federally required data exchanges;
(B) include specification and timing of exchanges to be
standardized;
(C) address the factors used in determining whether and when
to standardize data exchanges;
(D) specify State implementation options; and
(E) describe future milestones.

TITLE VI—REPORTS
42 USC 3536a
note.

SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC EMPOWERMENT STRATEGIES.

Consultation.

The Secretary of Housing and Urban Development, in consultation with the Secretary of Labor, shall submit a report to the Congress
annually that describes—
(1) any interagency strategies of such Departments that are
designed to improve family economic empowerment by linking
housing assistance with essential supportive services, such as
employment counseling and training, financial education and
growth, childcare, transportation, meals, youth recreational
activities, and other supportive services; and
(2) any actions taken in the preceding year to carry out such
strategies and the extent of progress achieved by such actions.

TITLE VII—HOUSING OPPORTUNITIES
FOR PERSONS WITH AIDS
SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT
HOMELESSNESS FOR INDIVIDUALS LIVING WITH HIV OR
AIDS.

(a) I N G ENERAL .—Subsection (c) of section 854 of the AIDS
Housing Opportunity Act (42 U.S.C. 12903(c)) is amended by—
(1) redesignating paragraph (3) as paragraph (5); and
(2) striking paragraphs (1) and (2) and inserting the following:
“(1) ALLOCATION OF RESOURCES.—
“(A) A LLOCATION FORMULA .—The Secretary shall allocate 90 percent of the amount approved in appropriations Acts
under section 863 among States and metropolitan statistical
areas as follows:
“(I) 75 percent of such amounts among—
“(I) cities that are the most populous unit of
general local government in a metropolitan statistical area with a population greater than 500,000,
as determined on the basis of the most recent

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 813

census, and with more than 2,000 individuals living with
HIV or AIDS, using the data specified in subparagraph
(B); and
“(II) States with more than 2,000 individuals living
with HIV or AIDS outside of metropolitan statistical
areas.
“(ii) 25 percent of such amounts among States and
metropolitan statistical areas based on the method
described in subparagraph (C).
“(B) S OURCE OF DATA .—For purposes of allocating
amounts under this paragraph for any fiscal year, the number
of individuals living with HIV or AIDS shall be the number
of such individuals as confirmed by the Director of the
Centers for Disease Control and Prevention, as of December
31 of the most recent calendar year for which such data is
available.
“(C) A L L O C A T I O N U N D E R S U B P A R A G R A P H ( A ) ( i i ) . — F o r
purposes of allocating amounts under subparagraph (A)(ii),
the Secretary shall develop a method that accounts for—
“(I) differences in housing costs among States and
metropolitan statistical areas based on the fair market
rental established pursuant to section 8(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)) or another
methodology established by the Secretary through
regulation; and
“(ii) differences in poverty rates among States and
metropolitan statistical areas based on area poverty
indexes or another methodology established by the Secretary through regulation.
“(2) MAINTAINING GRANTS.—
“(A) CONTINUED ELIGIBILITY OF FISCAL YEAR 2016
GRANTEES.—A grantee that received an allocation in fiscal
year 2016 shall continue to be eligible for allocations
under paragraph (1) in subsequent fiscal years, subject to—
“(I) the amounts available from appropriations Acts under
section 863;
“(ii) approval by the Secretary of the most recent
comprehensive housing affordability strategy for the grantee
approved under section 105; and
“(iii) the requirements of subparagraph (C).
“(B) ADJUSTMENTS.—Allocations to grantees described in
subparagraph (A) shall be adjusted annually based on the
administrative provisions included in fiscal year 2016
appropriations Acts.
“(C) R EDETERMINATION OF CONTINUED ELIGIBILITY .— Time period.
The Secretary shall redetermine the continued eligibility
of a grantee that received an allocation in fiscal year 2016
at least once during the 10-year period following fiscal
year 2016.
“(D) A DJUSTMENT TO GRANTS .—For each of fiscal years
2017, 2018, 2019, 2020, and 2021, the Secretary shall ensure
that a grantee that received an allocation in the prior fiscal
year does not receive an allocation that is 5 percent less than
or 10 percent greater than the amount allocated to such
grantee in the preceding fiscal year.
“(3) ALTERNATIVE GRANTEES.—
Contracts.

130 STAT. 814

Contracts.

Determination.

PUBLIC LAW 114–201—JULY 29, 2016

“(A) REQUIREMENTS.—The Secretary may award funds
reserved for a grantee eligible under paragraph (1) to an alternative
grantee if—
“(I) the grantee submits to the Secretary a written
agreement between the grantee and the alternative grantee that
describes how the alternative grantee will take actions
consistent with the applicable comprehensive housing
affordability strategy approved under section 105 of this Act;
“(ii) the Secretary approves the written agreement
described in clause (I) and agrees to award funds to the
alternative grantee; and
“(iii) the written agreement does not exceed a term of
10 years.
“(B) RENEWAL.—An agreement approved pursuant to
subparagraph (A) may be renewed by the parties with the approval
of the Secretary.
“(C) D EFINITION .—In this paragraph, the term ‘alternative grantee’ means a public housing agency (as defined in
section 3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b))), a unified funding agency (as defined in
section 401 of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11360)), a State, a unit of general local
government, or an instrumentality of State or local government.
“(4) R EALLOCATIONS .—If a State or metropolitan statistical
area declines an allocation under paragraph (1)(A), or the Secretary determines, in accordance with criteria specified in regulation, that a State or metropolitan statistical area that is eligible
for an allocation under paragraph (1)(A) is unable to properly
administer such allocation, the Secretary shall reallocate any
funds reserved for such State or metropolitan statistical area as
follows:
“(A) For funds reserved for a State—
“(I) to eligible metropolitan statistical areas within the
State on a pro rata basis; or
“(ii) if there is no eligible metropolitan statistical
areas within a State, to metropolitan cities and urban
counties within the State that are eligible for grant
under section 106 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5306), on a pro
rata basis.
“(B) For funds reserved for a metropolitan statistical
area, to the State in which the metropolitan statistical area
is located.
“(C) If the Secretary is unable to make a reallocation
under subparagraph (A) or (B), the Secretary shall make such
funds available on a pro rata basis under the formula in
paragraph (1)(A).”.
(b) AMENDMENT TO DEFINITIONS.—Section 853 of the AIDS Housing
Opportunity Act (42 U.S.C. 12902) is amended—
(1) in paragraph (1), by inserting “or ‘AIDS’’’ before “means”;
and
(2) by inserting at the end the following new paragraphs:
“(15) The term ‘HIV’ means infection with the human
immunodeficiency virus.

PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 815

“(16) The term ‘individuals living with HIV or AIDS’ means, with
respect to the counting of cases in a geographic area during a period of
time, the sum of—
“(A) the number of living non-AIDS cases of HIV in the area;
and
“(B) the number of living cases of AIDS in the area.”.
Approved July 29, 2016.

LEGISLATIVE HISTORY—H.R. 3700:
HOUSE REPORTS: No. 114–397 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 162 (2016):
Feb. 2, considered and passed House.
July 14, considered and passed Senate.

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