H. Rept. 114-397 - HOUSING OPPORTUNITY THROUGH MODERNIZATION ACT OF 2015114th Congress (2015-2016)
Committee Report
| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.3700 |
| Committees: |
H. Rept. 114-397 - 114th Congress (2015-2016)
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House Report 114-397 - HOUSING OPPORTUNITY THROUGH MODERNIZATION ACT OF 2015
[House Report 114-397]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-397
======================================================================
HOUSING OPPORTUNITY THROUGH MODERNIZATION ACT OF 2015
_______
January 28, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 3700]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3700) to provide housing opportunities in the
United States through modernization of various housing
programs, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Housing Opportunity
Through Modernization Act of 2015''.
(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.
TITLE II--RURAL HOUSING
Sec. 201. Delegation of guaranteed rural housing loan approval.
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.
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.
Sec. 503. Data exchange standardization for improved interoperability.
TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
SEC. 101. INSPECTION OF DWELLING UNITS.
(a) In General.--Section 8(o)(8) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(8)) is amended--
(1) by striking subparagraph (A) and inserting the following
new subparagraph:
``(A) Initial inspection.--
``(i) In general.--For each dwelling unit for
which a housing assistance payment contract is
established under this subsection, the public
housing agency (or other entity pursuant to
paragraph (11)) shall inspect the unit before
any assistance payment is made to determine
whether the dwelling unit meets the housing
quality standards under subparagraph (B),
except as provided in clause (ii) or (iii) of
this subparagraph.
``(ii) Correction of non-life-threatening
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 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.
``(iii) Use 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 subparagraph (B). This clause
may not be construed to exempt any dwelling
unit from compliance with the requirements of
subparagraph (D).'';
(2) by redesignating subparagraph (G) as subparagraph (H);
and
(3) by inserting after subparagraph (F) the following new
subparagraph:
``(G) Enforcement of housing quality standards.--
``(i) Determination of noncompliance.--A
dwelling unit that is covered by a housing
assistance payments contract under this
subsection shall be considered, for purposes of
subparagraphs (D) and (F), to be in
noncompliance with the housing quality
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
``(III) the failure to comply is not
corrected--
``(aa) in the case of any
such failure that is a result
of life-threatening conditions,
within 24 hours after such
notice has been provided; and
``(bb) in the case of any
such failure that is a result
of non-life-threatening
conditions, within 30 days
after such notice has been
provided or such other
reasonable longer period as the
public housing agency may
establish.
``(ii) Withholding of assistance amounts
during correction.--The public housing agency
may withhold assistance amounts under this
subsection with respect to a dwelling unit for
which a notice pursuant to clause (i)(II), of
failure to comply with housing quality
standards under subparagraph (B) as determined
pursuant to an inspection conducted under
subparagraph (D) or (F), has been provided. If
the unit is brought into compliance with such
housing quality standards during the periods
referred to in clause (i)(III), the public
housing agency shall 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) Abatement of assistance amounts.--The
public housing agency shall abate all of the
assistance amounts under this subsection with
respect to a dwelling unit that is determined,
pursuant to clause (i) of this subparagraph, to
be in noncompliance with housing quality
standards under subparagraph (B). Upon
completion of repairs by the public housing
agency or the owner sufficient so that the
dwelling unit complies with such housing
quality standards, the agency shall recommence
payments under the housing assistance payments
contract to the owner of the dwelling unit.
``(iv) Notification.--If a public housing
agency providing assistance under this
subsection abates rental assistance payments
pursuant to clause (iii) with respect to a
dwelling unit, the agency shall, upon
commencement of such abatement--
``(I) notify the tenant and the owner
of the dwelling unit that--
``(aa) such abatement has
commenced; and
``(bb) if the dwelling unit
is not brought into compliance
with housing quality 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
``(II) issue the tenant the necessary
forms to allow the tenant to move to
another dwelling unit and transfer the
rental assistance to that unit.
``(v) Protection of tenants.--An owner of a
dwelling unit may not terminate the tenancy of
any tenant because of the withholding or
abatement of assistance pursuant to this
subparagraph. During the period that assistance
is abated pursuant to this subparagraph, the
tenant may terminate the tenancy by notifying
the owner.
``(vi) Termination of lease or assistance
payments contract.--If assistance amounts under
this 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 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.
``(III) Assistance in finding unit.--
The public housing agency may provide
assistance to the family in finding a
new residence, including use of up to
two months of any assistance amounts
withheld or abated pursuant to clause
(ii) or (iii), respectively, for costs
directly associated with relocation of
the family to a new residence, which
shall include security deposits as
necessary and may include
reimbursements for reasonable moving
expenses incurred by the household, as
established by the Secretary. The
agency may require that a family
receiving assistance for a security
deposit shall remit, to the extent of
such assistance, the amount of any
security deposit refunds made by the
owner of the dwelling unit for which
the lease was terminated.
``(viii) Tenant-caused damages.--If a public
housing agency determines that any damage to a
dwelling unit that results in a failure of the
dwelling unit to comply with housing quality
standards under subparagraph (B), other than
any damage resulting from ordinary use, was
caused by the tenant, any member of the
tenant's household, or any guest or other
person under the tenant's control, the agency
may waive the applicability of this
subparagraph, except that this clause shall not
exonerate a tenant from any liability otherwise
existing under applicable law for damages to
the premises caused by such tenant.
``(ix) Applicability.--This subparagraph
shall apply to any dwelling unit for which a
housing assistance payments contract is entered
into or renewed after the date of the
effectiveness of the regulations implementing
this subparagraph.''.
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement subsection (a) of this
section and such subsection shall take effect upon such issuance.
SEC. 102. INCOME REVIEWS.
(a) Income Reviews for Public Housing and Section 8 Programs.--
Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is
amended--
(1) in subsection (a)--
(A) in the second sentence of paragraph (1), by
striking ``at least annually'' and inserting ``pursuant
to paragraph (6)''; and
(B) by adding at the end the following new
paragraphs:
``(6) Reviews of family income.--
``(A) Frequency.--Reviews of family income for
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, 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) Use of current year income.--In determining
family income for initial occupancy or provision of
housing assistance pursuant to clause (i) of paragraph
(6)(A) or pursuant to reviews pursuant to clause (iii)
or (iv) of such paragraph, a public housing agency or
owner shall use the income of the family as estimated
by the agency or owner for the upcoming year.
``(B) Use of prior year income.--In determining
family income for annual reviews pursuant to paragraph
(6)(A)(ii), a public housing agency or owner shall,
except as otherwise provided in this paragraph and
paragraph (1), use the income of the family as
determined by the agency or owner for the preceding
year, taking into consideration any redetermination of
income during such prior year pursuant to clause (iii)
or (iv) of paragraph (6)(A).
``(C) Other income.--In determining the income for
any family based on the prior year's income, with
respect to prior year calculations of income not
subject to subparagraph (B), a public housing agency or
owner may make other adjustments as it considers
appropriate to reflect current income.
``(D) Safe harbor.--A public housing agency or owner
may, to the extent such information is available to the
public housing agency or owner, determine the family's
income prior to the application of any deductions based
on timely income determinations made for purposes of
other means-tested Federal public assistance programs
(including the program for block grants to States for
temporary 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 procedures to enable public housing agencies
and owners to have access to such income determinations
made by other means-tested Federal programs 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) 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) Certification Regarding Hardship Exception to Minimum Monthly
Rent.--Not later than the expiration of the 6-month period beginning on
the date of the enactment of this Act, the Secretary of Housing and
Urban Development shall submit to the Congress a certification that the
hardship and tenant 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) Income; Adjusted Income.--Section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by striking
paragraphs (4) and (5) and inserting the following new paragraphs:
``(4) Income.--The term `income' means, with respect to a
family, income received from all sources by each member of the
household who is 18 years of age or older or is the head of
household or spouse of the head of the household, plus unearned
income by or on behalf of each dependent who is less than 18
years of age, as determined in accordance with criteria
prescribed by the Secretary, in consultation with the Secretary
of Agriculture, subject to the following requirements:
``(A) Included amounts.--Such term includes recurring
gifts and receipts, actual income from assets, and
profit or loss from a business.
``(B) Excluded amounts.--Such term does not include--
``(i) any imputed return on assets, except to
the extent that net family assets exceed
$50,000, except that such amount (as it may
have been previously adjusted) shall be
adjusted for inflation annually by 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
``(II) in such amounts as the
Secretary may allow, for the cost of
room and board.
``(D) Educational savings accounts.--Income shall be
determined without regard to any amounts in or from, or
any benefits from, any Coverdell education savings
account under section 530 of the Internal Revenue Code
of 1986 or any qualified tuition program under section
529 of such Code.
``(E) Recordkeeping.--The Secretary may not require a
public housing agency or owner to maintain records of
any amounts excluded from income pursuant to this
subparagraph.
``(5) Adjusted income.--The term `adjusted income' means,
with respect to a family, the amount (as determined by the
public housing agency or owner) of the income of the members of
the family residing in a dwelling unit or the persons on a
lease, after any deductions from income as follows:
``(A) Elderly and disabled families.--$525 in the
case of any family that is an elderly family or a
disabled family.
``(B) Dependents.--In the case of any family, $525
for each member who--
``(i) is less than 18 years of age or
attending school or vocational training on a
full-time basis; or
``(ii) is a person who is 18 years of age or
older, resides in the household, and is
certified as disabled and unable to work by the
public housing agency of jurisdiction.
``(C) Child care.--The amount, if any, that exceeds 5
percent of annual family income that is used to pay for
unreimbursed child care expenses, which shall include
child care for preschool-age children, for before- and
after-care for children in school, and for other child
care necessary to enable a member of the family to be
employed or further his or her education.
``(D) Health and medical expenses.--The amount, if
any, by which 10 percent of annual family income is
exceeded by the sum of--
``(i) in the case of any elderly or disabled
family, any unreimbursed health and medical
care expenses; and
``(ii) any unreimbursed reasonable attendant
care and auxiliary apparatus expenses for each
handicapped member of the family, if determined
necessary by the public housing agency or owner
to enable any member of such family to be
employed.
The Secretary shall, by regulation, provide hardship
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) Permissive 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) Housing Choice Voucher Program.--Section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
(1) in paragraph (1)(D), by inserting before the period at
the end the following: ``, except that a public housing agency
may establish a payment standard of not more than 120 percent
of the fair market rent where necessary as a reasonable
accommodation for a person with a disability, without approval
of the Secretary. A public housing agency may use a payment
standard that is greater than 120 percent of the fair market
rent as a reasonable accommodation for a person with a
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 ``Annual
review'' and inserting ``Reviews'';
(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) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by
striking ``income'' each place such term appears and inserting ``annual
adjusted income''.
(f) Project-Based Housing.--Paragraph (3) of section 8(c) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by
striking the last sentence.
(g) Impact on Public Housing Revenues.--
(1) Adjustments to operating formula.--If the Secretary of
Housing and Urban Development determines that the application
of subsections (a) through (e) of this section results in a
material and disproportionate reduction in the rental income of
certain public housing agencies during the first year in which
such subsections are implemented, the Secretary may make
appropriate adjustments in the formula income for such year of
those agencies experiencing such a reduction.
(2) HUD reports on revenue and cost impact.--In each of the
first two years after the first year in which subsections (a)
through (e) are implemented, the Secretary of Housing and Urban
Development shall submit a report to Congress identifying and
calculating the impact of changes made by such subsections and
section 104 of this Act on the revenues and costs of operating
public housing units, the voucher 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) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement this section and this
section shall take effect after such issuance, except that this section
may only take effect upon the commencement of a calendar year.
SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER-INCOME
FAMILIES.
Subsection (a) of section 16 of the United States Housing Act of 1937
(42 U.S.C. 1437n(a)) is amended by adding at the end the following new
paragraph:
``(5) Limitations on tenancy for over-income families.--
``(A) Limitations.--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) Notice.--In the case of any family residing in
a dwelling unit of public housing whose income for a
year has exceeded the applicable income limitation
under subparagraph (C), upon the conclusion of such
year the public housing agency shall provide written
notice to such family of the requirements under
subparagraph (A).
``(C) Income limitation.--The income limitation under
this subparagraph shall be 120 percent of the median
income for the area, as determined by the Secretary
with adjustments for smaller and larger families,
except that the Secretary may establish income
limitations higher or lower than 120 percent of such
median income on the basis of the Secretary's findings
that such variations are necessary because of
prevailing levels of construction costs, or unusually
high or low family incomes, vacancy rates, or rental
costs.
``(D) Exception.--Subparagraph (A) shall not apply to
a family occupying a dwelling unit in public housing
pursuant to paragraph (5) of section 3(a) (42 U.S.C.
1437a(a)(5)).
``(E) Reports on over-income families and waiting
lists.--The Secretary shall require that each public
housing agency shall--
``(i) submit a report annually, in a format
required by the Secretary, that specifies--
``(I) the number of families
residing, as of the end of the year for
which the report is submitted, in
public housing administered by the
agency who had incomes exceeding the
applicable income limitation under
subparagraph (C); and
``(II) the number of families, as of
the end of such year, on the waiting
lists for admission to public housing
projects of the agency; and
``(ii) make the information reported pursuant
to clause (i) publicly available.''.
SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.
Section 16 of the United States Housing Act of 1937 (42 U.S.C. 1437n)
is amended by inserting after subsection (d) the following new
subsection:
``(e) Eligibility for Assistance Based on Assets.--
``(1) Limitation on assets.--Subject to paragraph (3) and
notwithstanding any other provision of this Act, a dwelling
unit assisted under this Act may not be rented and assistance
under this Act may not be provided, either initially or at each
recertification of family income, to any family--
``(A) whose net family assets exceed $100,000, as
such amount is adjusted annually by applying an
inflationary factor as the Secretary considers
appropriate; or
``(B) who has a present ownership interest in, a
legal right to reside in, and the effective legal
authority to sell, real property that is suitable for
occupancy by the family as a residence, except that the
prohibition under this subparagraph shall not apply
to--
``(i) any property for which the family is
receiving assistance under subsection (y) or
(o)(12) of section 8 of this Act;
``(ii) any person that is a victim of
domestic violence; or
``(iii) any family that is offering such
property for sale.
``(2) Net family assets.--
``(A) In general.--For purposes of this subsection,
the term `net family assets' means, for all members of
the household, the net cash value of all assets after
deducting reasonable costs that would be incurred in
disposing of real property, savings, stocks, bonds, and
other forms of capital investment. Such term does not
include interests in Indian trust land, equity in
property for which the family is receiving assistance
under subsection (y) or (o)(12) of section 8, equity
accounts in homeownership programs 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;
``(v) the value of any Coverdell education
savings account under section 530 of the
Internal Revenue Code of 1986 or any qualified
tuition program under section 529 of such Code;
and
``(vi) such other exclusions as the Secretary
may establish.
``(C) Trust funds.--In cases in which a trust fund
has been established and the trust is not revocable by,
or under the control of, any member of the family or
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) Net family assets.--A public housing agency or
owner may determine the net assets of a family, for
purposes of this section, based on a certification by
the family that the net assets of such family do not
exceed $50,000, as such amount is adjusted annually by
applying an inflationary factor as the Secretary
considers appropriate.
``(B) No current real property ownership.--A public
housing agency or owner may determine compliance with
paragraph (1)(B) based on a certification by the family
that such family does not have any current ownership
interest in any real property at the time the agency or
owner reviews the family's income.
``(C) Standardized forms.--The Secretary may develop
standardized forms for the certifications referred to
in subparagraphs (A) and (B).
``(4) Compliance for public housing dwelling units.--When
recertifying family income with respect to families residing in
public housing dwelling units, a public housing agency may, in
the discretion of the agency and only pursuant to a policy that
is set forth in the public housing agency plan under section 5A
for the agency, choose not to enforce the limitation under
paragraph (1).
``(5) Enforcement.--When recertifying the income of a family
residing in a dwelling unit assisted under this Act, a public
housing agency or owner may choose not to enforce the
limitation under paragraph (1) or may establish exceptions to
such limitation based on eligibility criteria, but only
pursuant to a policy that is set forth in the public housing
agency plan under section 5A for the agency or under a policy
adopted by the owner. Eligibility criteria for establishing
exceptions may provide for separate treatment based on family
type and may be based on different factors, such as age,
disability, income, the ability of the family to find suitable
alternative housing, and whether supportive services are being
provided.
``(6) Authority to delay evictions.--In the case of a family
residing in a dwelling unit assisted under this Act who does
not comply with the limitation under paragraph (1), the public
housing agency or project owner may delay eviction or
termination of the family based on such noncompliance for a
period of not more than 6 months.''.
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES.
Paragraph (11) of section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(11)) is amended--
(1) by striking ``(11) Leasing of units owned by pha.--If''
and inserting the following:
``(11) Leasing of units owned by pha.--
``(A) Inspections and rent determinations.--If''; and
(2) by adding at the end the following new subparagraph:
``(B) Units owned by pha.--For purposes of this
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) In general.--Subject to clause (ii), a
public housing agency may use for project-based
assistance under this paragraph not more than
20 percent of the authorized units for the
agency.
``(ii) Exception.--A public housing agency
may use up to an additional 10 percent of the
authorized units for the agency for project-
based assistance under this paragraph, to
provide units that house individuals and
families that meet the definition of homeless
under section 103 of the McKinney-Vento
Homeless 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) In general.--Except as provided in
clause (ii), not more than the greater of 25
dwelling units or 25 percent of the dwelling
units in any project may be assisted under a
housing assistance payment contract for
project-based assistance pursuant to this
paragraph. For purposes of this subparagraph,
the term `project' means a single building,
multiple contiguous buildings, or multiple
buildings on contiguous parcels of land.
``(ii) Exceptions.--
``(I) Certain families.--The
limitation under clause (i) shall not
apply to dwelling units assisted under
a contract that are exclusively made
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) Certain 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.
``(III) Certain contracts.--The
limitation under clause (i) shall not
apply with respect to contracts or
renewal of contracts under which a
greater percentage of the dwelling
units in a project were assisted under
a housing assistance payment contract
for project-based assistance pursuant
to this paragraph on the date of the
enactment of the Housing Opportunity
Through Modernization Act of 2015.
``(IV) Certain properties.--Any units
of project-based assistance under this
paragraph that are attached to units
previously subject to federally
required rent restrictions or receiving
other project-based assistance provided
by the Secretary shall not count toward
the percentage limitation imposed by
this subparagraph (D).
``(iii) Additional monitoring and oversight
requirements.--The Secretary may establish
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) Addition of eligible units.--Subject
to the limitations of subparagraphs (B) and
(D), the agency and the owner may add eligible
units within the same project to a housing
assistance payments contract at any time during
the term thereof without being subject to any
additional competitive selection procedures.
``(iii) Housing under construction or
recently constructed.--An agency may enter into
a housing assistance payments contract with an
owner for any unit that does not qualify as
existing housing and is under construction or
recently has been constructed whether or not
the agency has executed an agreement to enter
into a contract with the owner, provided that
the owner demonstrates compliance with
applicable requirements prior to execution of
the housing 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 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) Rent adjustments.--A housing assistance
payments contract pursuant to this paragraph entered
into after the date of the enactment of the Housing
Opportunity Through Modernization Act of 2015 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 site-based waiting lists as
specified in this subparagraph'';
(B) by striking the third sentence and inserting the
following: ``The agency or owner may establish
preferences or criteria for selection for a unit
assisted under this 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
(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 site-
based 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) Structure owned by agency.--A public housing
agency engaged in an initiative to improve, develop, or
replace a public housing property or site may attach
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) Special 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) Effective Date.--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) In General.--Paragraph (1) of section 8(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
(1) by inserting ``(A)'' after the paragraph designation;
(2) by striking the fourth, seventh, eighth, and ninth
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 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) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended
by inserting before the period at the end the following: ``, except
that no public housing agency shall be required as a result of a
reduction in the fair market rental to reduce the payment standard
applied to a family continuing to reside in a unit for which the family
was receiving assistance under this section at the time the fair market
rental was reduced. The Secretary shall allow public housing agencies
to request exception payment 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.
Section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) is amended by adding at the end the following new paragraph:
``(20) Collection of utility data.--
``(A) Publication.--The Secretary shall, to the
extent that data can be collected cost effectively,
regularly publish such data regarding utility
consumption and costs in local areas as the Secretary
determines will be useful for the establishment of
allowances for tenant-paid utilities for families
assisted under this subsection.
``(B) Use of data.--The Secretary shall provide such
data in a manner that--
``(i) avoids unnecessary administrative
burdens for public housing agencies and owners;
and
``(ii) protects families in various unit
sizes and building types, and using various
utilities, from high rent and utility cost
burdens relative to income.''.
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) Capital Fund Replacement Reserves.--Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amended--
(1) in subsection (j), by adding at the end the following new
paragraph:
``(7) Treatment of replacement reserve.--The 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.--
``(1) In 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) Transfer of operating funds.--In first establishing a
replacement reserve, the Secretary may allow public housing
agencies to transfer more than 20 percent of its operating
funds into its replacement reserve.
``(4) Expenditure.--Funds in a replacement reserve may be
used for purposes authorized by subsection (d)(1) and 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) Flexibility of Operating Fund Amounts.--Paragraph (1) of section
9(g) of the United States Housing Act of 1937 (42 U.S.C. 1437g(g)(1))
is amended--
(1) by striking ``(1)'' and all that follows through ``--Of''
and inserting the following:
``(1) Flexibility in use of funds.--
``(A) Flexibility for capital fund amounts.--Of'';
and
(2) by adding at the end the following new subparagraph:
``(B) Flexibility for operating fund amounts.--Of any
amounts appropriated for fiscal year 2016 or any fiscal
year thereafter that are allocated for fiscal year 2016
or any fiscal year thereafter from the Operating Fund
for any public housing agency, the agency may use not
more than 20 percent for activities that are eligible
under 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.''.
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) Coordination between public housing agencies and public
child welfare agencies.--The Secretary shall, not later than
the expiration of the 180-day period beginning on the date of
the enactment of the Housing Opportunity Through Modernization
Act of 2015 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).''.
TITLE II--RURAL HOUSING
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN APPROVAL.
Subsection (h) of section 502 of the Housing Act of 1949 (42 U.S.C.
1472(h)) is amended by adding at the end the following new paragraph:
``(18) Delegation of approval.--The Secretary may delegate,
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.''.
TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE INSURANCE FOR
CONDOMINIUMS.
Section 203 of the National Housing Act (12 U.S.C. 1709) is amended
by adding at the end the following new subsection:
``(y) Requirements for Mortgages for Condominiums.--
``(1) Project recertification requirements.--Notwithstanding
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) Commercial space requirements.--Notwithstanding any
other law, regulation, or guideline of the Secretary, including
chapter 2.1.3 of the Condominium Project Approval and
Processing Guide of the FHA, in providing for exceptions to the
requirement for the insurance of a mortgage on a 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) Transfer 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 C.F.R. 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 Home Loan Mortgage
Corporation. If the provisions of part 1228 of the Director of
the Federal Housing Finance Agency's regulations (12 C.F.R.
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) Establishment of percentage requirement.--Not
later than the expiration of the 90-day period
beginning on the date of the enactment of this
paragraph, the 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) Failure to act.--If the Secretary fails to
issue the guidance required under subparagraph (A)
before the expiration of the 90-day period specified in
such clause, the following provisions shall apply:
``(i) 35 percent requirement.--In order for a
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) Other considerations.--The Secretary
may increase the percentage applicable pursuant
to clause (i) to a condominium project on a
project-by-project or regional basis, and in
determining such percentage for a project shall
consider factors relating to the economy for
the locality in which such project is located
or specific to project, including the total
number of family units in the project.''.
TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF CARE PROGRAM.
(a) Definition.--Subtitle C of the McKinney-Vento Homeless Assistance
Act is amended--
(1) by redesignating sections 432 and 433 (42 U.S.C. 11387,
11388) as sections 433 and 434, respectively; and
(2) by inserting after section 431 (42 U.S.C. 11386e) the
following new section:
``SEC. 432. GEOGRAPHIC AREAS.
``(a) Requirement to Define.--For purposes of this subtitle, the term
`geographic area' shall have such meaning as the Secretary shall by
notice provide.
``(b) Issuance of Notice.--Not later than the expiration of the 90-
day period beginning on the date of the enactment of the Housing
Opportunity Through Modernization Act of 2015, the Secretary shall
issue a notice setting forth the definition required by subsection
(a).''.
(b) Clerical Amendment.--The table of contents in section 101(b) of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 note) is
amended by striking the items relating to sections 432 and 433 and
inserting the following new items:
``Sec. 432. Geographic areas.
``Sec. 433. Regulations.
``Sec. 434. Reports to Congress.''.
SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL REDEVELOPMENT
AUTHORITIES IN EMERGENCY 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) Transfer of Position to Office of the Secretary.--Section 4 of
the Department of Housing and Urban Development Act (42 U.S.C. 3533) is
amended by adding at the end the following new subsection:
``(h) Special Assistant for Veterans Affairs.--
``(1) Position.--There shall be in the Office of the
Secretary a Special Assistant for Veterans Affairs, who shall
report directly to the Secretary.
``(2) Appointment.--The Special Assistant for Veterans
Affairs shall be appointed based solely on merit and shall be
covered under the provisions of title 5, United States Code,
governing appointments in the competitive service.
``(3) Responsibilities.--The Special Assistant for Veterans
Affairs shall be responsible for--
``(A) ensuring veterans have fair access to housing
and homeless assistance under each program of the
Department providing either such assistance;
``(B) coordinating all programs and activities of the
Department relating to veterans;
``(C) serving as a liaison for the Department with
the Department of Veterans Affairs, including
establishing and maintaining relationships with the
Secretary of Veterans Affairs;
``(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 2015; and
``(G) carrying out such other duties as may be
assigned to the Special Assistant by the Secretary or
by law.''.
(b) Transfer of Position in Office of Deputy Assistant Secretary for
Special Needs.--On the date that the initial Special Assistant for
Veterans Affairs is appointed pursuant to section 4(h)(2) of the
Department of Housing and Urban Development Act, as added by subsection
(a) of this section, the position of Special Assistant for Veterans
Programs in the Office of the Deputy Assistant Secretary for Special
Needs of the Department of Housing and Urban Development shall be
terminated.
SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESSNESS.
(a) In General.--The Secretary of Housing and Urban Development 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:
(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.
TITLE V--MISCELLANEOUS
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM IN CERTAIN
FRAUD AND ABUSE PREVENTION MEASURES.
The Disaster Housing Assistance Program administered by the
Department of Housing and Urban Development shall be considered a
``program of the Department of Housing and Urban Development'' under
section 904 of the Stewart B. McKinney Homeless Assistance Amendments
Act of 1988 (42 U.S.C. 3544) for the purpose of income verifications.
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP HOMEOWNERSHIP
OPPORTUNITY PROGRAM.
Section 11 of the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting after subsection (f) the
following new subsection:
``(g) Energy Efficiency Requirements.--The Secretary may not require
any dwelling developed using amounts from a grant made under this
section to meet any energy efficiency standards other than the
standards applicable at such time pursuant to section 109 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) to
housing specified in subsection (a) of such section.''.
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED 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 INTEROPERABILITY.
``(a) Designation.--The Secretary shall, in consultation with an
interagency work group established by the Office of Management and
Budget, and considering State government perspectives, 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;
``(4) be consistent with and implement applicable accounting
principles;
``(5) be implemented in a manner that is cost- effective and
improves program efficiency and effectiveness; and
``(6) be capable of being continually upgraded as necessary.
``(c) Rules of Construction.--Nothing in this section requires a
change to existing data exchange standards for Federal reporting found
to be effective and efficient.''.
(b) Applicability.--
(1) In general.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Housing and Urban
Development shall issue a proposed rule to carry out the
amendments made by subsection (a).
(2) Requirements.--The rule shall--
(A) identify federally required data exchanges;
(B) include specification and timing of exchanges to
be standardized;
(C) address the factors used in determining whether
and when to standardize data exchanges;
(D) specify State implementation options; and
(E) describe future milestones.
Purpose and Summary
Introduced by Representative Luetkemeyer on October 7,
2015, H.R. 3700, the Housing Opportunity Through Modernization
Act of 2015, reforms certain Department of Housing and Urban
Development (HUD) and Rural Housing Service programs in order
to improve their effectiveness and provide enhanced opportunity
for program beneficiaries and the organizations that serve such
individuals.
H.R. 3700 enhances the implementation of HUD's existing
Section 8 voucher assistance and Public Housing programs, and
also achieves savings by modernizing outdated rules and
regulations which in some cases have not been updated in over a
generation. Thus, H.R. 3700 streamlines the inspection protocol
for rental assistance units, simplifies income review and
recertification policies for all assisted households, modifies
Federal Housing Administration (FHA) requirements for mortgage
insurance for condominiums, clarifies homeless assistance
program requirements, delegates rural housing loan approval
authority, and provides limited flexibility between public
housing operating and capital funds.
H.R. 3700 gives state and local housing agencies, and
private owners, enhanced flexibility in meeting key program
objectives such as reducing homelessness, improving access to
higher-opportunity neighborhoods, and addressing repair needs
in public housing.
In addition, H.R. 3700 reduces the lengthy process for the
certification and recertification of condominium buildings,
which can cost thousands of dollars for small condominium
boards, modifies the process for approving condominium
buildings with commercial space, aligns FHA's transfer fee
policy to that of the Federal Housing Finance Agency, and
changes the current standard owner-occupancy requirement from
50% to 35%.
Collectively, by improving program effectiveness while
ensuring that scarce resources are used to support those who
are most in need, these and other provisions within H.R. 3700
expand affordable homeownership opportunities for American
families.
Background and Need for Legislation
For many years, the federal government has provided
affordable housing for families of modest means. Federal
housing programs trace their roots to programs established in
the 1930s through which the federal government helped secure
lower rents for low- and middle income tenants. Today, HUD-
administered programs rely on housing properties that are owned
and managed at the local level by quasi-governmental public
housing authorities, which are under contract to the federal
government. Given this partnership between the federal
government and local housing authorities, federal housing
programs are governed in part by federal rules and regulations
and in part by local policies.
The federal government subsidizes affordable rental housing
through two formula grants--the Public Housing Capital Fund and
the Public Housing Operating Fund. These grants supplement
rents collected by public housing authorities. Public housing
authorities use the grants to meet their operation,
maintenance, and capital improvement needs. Families who live
in public housing generally pay rent equal to 30 percent of
their adjusted gross income. Today, roughly 1.2 million public
housing units receive federal funds.
By the early 1970s, construction programs for public
housing were increasingly criticized because they took too long
to complete and because they were expensive. Policymakers had
also become concerned that aging public housing units were
beginning to physically deteriorate and that public housing
communities might be contributing to social problems, including
by perpetuating intergenerational dependence on government
assistance, chronic poverty, and crime. In 1989, Congress
established a National Commission on Severely Distressed Public
Housing (Commission) to identify public housing projects that
were in a severe state of distress, assess strategies for
improvement, and develop a plan to improve public housing. In
1992, the Commission reported that public housing residents
lived in fear of crime, and that they suffered from high
unemployment and limited opportunities for employment,
insufficient resources to address the needs of residents, and
disincentives to self-sufficiency. The Commission also found
that some public housing units had deteriorated to the point
that they posed a physical danger to their residents. To
address these problems, the Commission recommended that (1)
public housing residents be provided with more social services;
(2) funding be increased for public housing capital needs; (3)
the operational performance of public housing authorities be
assessed; and (4) new forms of affordable housing public-
private partnerships be explored.
Even prior to the Commission's report, Congress and the
Executive Branch examined new ideas for delivering housing
subsidies to low-income families. The Housing and Community
Development Act of 1974 created the Housing Choice Voucher
Program, popularly known as the Section 8 program. The Section
8 program shifted funds from public-housing construction
projects to subsidizing rents for low-income families living in
privately-owned housing. The Section 8 program was designed to
respond to criticisms of earlier housing programs by providing
rental subsidies for tenants living in private units and
relying less heavily on new construction and housing in
concentrated public housing developments.
The Section 8 program provides housing assistance to
approximately two million low-income families and individuals
each year. Under the Section 8 program, tenants pay
approximately 30 percent of their income towards rent; the
balance of rent is paid by the federal government. The Section
8 program is itself comprised of two programs: the first
provides tenant-based rental assistance and the second provides
project-based rental assistance.
Tenant-based rental assistance vouchers are subsidies that
low-income families can use to pay part of their rent for
private-market housing; because families can move yet still
retain their vouchers, the subsidy is portable. By contrast,
project-based rental assistance is a subsidy attached to a unit
of privately-owned housing that houses low-income tenants; if
the family moves, the subsidy remains with the unit of housing.
The Section 8 program is administered by more than 3,000 local
public housing authorities, which receive payments from the
federal government.
Over the past decade, the Section 8 program has consumed an
increasingly large part of HUD's budget. In 2002, Section 8
accounted for 46 percent of HUD's annual budget. For fiscal
year 2015, the budget authority for the HUD division
responsible for administering Section 8--the Office of Public
and Indian Housing--was $26.401 billion, accounting for 58.21
percent of HUD's budget. Within the Office of Public and Indian
Housing, 99 percent of the FY 2015 funding was allocated to
contract renewals or formula grants, meaning HUD had little
flexibility or input regarding how the funds were spent.
Section 8 is consuming a larger part of HUD's budget
because more people are participating in the program and new
participants have lower incomes than legacy participants. The
subsidy provided by the federal government has increased for
new Section 8 participants, which has in turn increased Section
8's share of the HUD budget. This ever-increasing consumption
of HUD resources by the Section 8 program has concerned both
critics and advocates of the program. Many fear that unless the
Section 8 program is reformed, it will soon drain resources
from other HUD programs or it will require significant
increased funding notwithstanding diminishing program
effectiveness.
In addition to reforming the Section 8 program, H.R. 3700
remedies a byzantine condominium building approval process
administered the FHA. The FHA was created by the National
Housing Act of 1934 and primarily serves as a federal mortgage
insurance program for loans made by banks and other private
lenders. H.R. 3700 eases restrictions on the purchase of
condominiums using an FHA-insured mortgage, which for some can
be a low-cost housing opportunity in place of purchasing a more
expensive free-standing home. Specifically, H.R. 3700 updates
and clarifies the FHA's condominium approval regulations, which
will provide broader and more affordable financing options
particularly to low- and moderate income qualified homebuyers.
Hearings
The Committee on Financial Services' Subcommittee on
Housing and Insurance held a hearing examining matters relating
to H.R. 3700 on October 21, 2015.
Committee Consideration
The Committee on Financial Services met in open session on
December 8 and 9, 2015, and ordered H.R. 3700 to be reported
favorably to the House as amended by a recorded vote of 44 yeas
to 10 nays (recorded vote no. FC-76), a quorum being present.
An amendment in the nature of a substitute offered by
Representative Luetkemeyer was agreed to, as amended as set for
the below, by a voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. An
amendment to the amendment in the nature of a substitute
offered by Representative Luetkemeyer was agreed to be a
recorded vote of 43 yeas--10 nays (FC-74). An amendment to the
amendment in the nature of a substitute offered by
Representative Waters was not agreed to by a recorded vote of
21 yeas to 32 nays (FC-75). The third and final recorded vote
in Committee was a motion by Chairman Hensarling to report the
bill favorably to the House as amended. The motion was agreed
to by a recorded vote of 44 yeas to 10 nays (Record vote no.
FC-76), a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee states that H.R. 3700
updates HUD and Rural Housing Service rules to in order to
increase their effectiveness and better serve program
beneficiaries and organizations involved in assisting
beneficiaries.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 28, 2015.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3700, the Housing
Opportunity Through Modernization Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Elizabeth
Cove Delisle.
Sincerely,
Keith Hall.
Enclosure.
H.R. 3700--Housing Opportunity Through Modernization Act of 2015
Summary: H.R. 3700 would amend the United States Housing
Act of 1937 to change certain aspects of the Department of
Housing and Urban Development's (HUD's) rental assistance
programs. The bill would alter calculations of tenant income
and rent; make households that exceed new income and asset
limits ineligible for assistance; change requirements for
adjusting payment standards; and expand eligibility for the
Family Unification Program. The bill also would make changes to
Federal Housing Administration (FHA) requirements that affect
whether buyers of certain condominiums would be eligible to
receive mortgage insurance from the agency.
CBO estimates that implementing this legislation would
reduce spending subject to appropriation by $311 million over
the 2017-2021 period, assuming appropriations are consistent
with the estimate.
Enacting H.R. 3700 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply. CBO
estimates that enacting H.R. 3700 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2026.
H.R. 3700 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 3700 is shown in the following table.
The costs of this legislation fall within budget functions 370
(housing) and 600 (income security).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------
2017 2018 2019 2020 2021 2017-2021
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Changes to Allowances:
Medical Expense Allowance:
Estimated Authorization Level..................... -144 -201 -211 -223 -236 -1,015
Estimated Outlays:................................ -79 -175 -207 -218 -230 -909
Childcare Allowance:
Estimated Authorization Level..................... -36 -49 -50 -51 -53 -239
Estimated Outlays................................. -20 -43 -49 -51 -52 -215
Elderly and Disabled Allowance:
Estimated Authorization Level..................... 66 88 88 105 105 452
Estimated Outlays................................. 36 78 88 97 105 404
Dependent Allowance:
Estimated Authorization Level..................... 34 46 46 71 71 268
Estimated Outlays................................. 19 41 46 60 71 237
Eligibility Changes:
Asset Eligibility
Estimated Authorization Level..................... 10 13 14 14 14 65
Estimated Outlays................................. 6 12 14 14 14 59
Income Limit in Public Housing:
Estimated Authorization Level..................... 8 10 11 11 12 52
Estimated Outlays................................. 4 9 11 11 11 46
Income Determination Changes:
Aid and Attendance Exclusion:
Estimated Authorization Level..................... 6 6 6 6 6 30
Estimated Outlays................................. 3 6 6 6 6 27
Imputed Return on Assets:
Estimated Authorization Level..................... 2 3 3 3 3 14
Estimated Outlays................................. 1 2 3 3 3 12
Other Housing Assistance Provisions:
Payment Standard for Rent:
Estimated Authorization Level..................... 24 24 25 26 27 125
Estimated Outlays................................. 13 24 25 25 26 113
Expansion of the Family Unification Program:
Estimated Authorization Level..................... 4 6 5 5 6 27
Estimated Outlays................................. 2 5 6 5 6 24
Moving Assistance:
Estimated Authorization Level..................... 1 2 2 2 2 8
Estimated Outlays................................. 1 1 2 2 2 7
Changes to FHA Insurance Requirementsa
Additional FHA Offsetting Collections:
Estimated Authorization Level..................... -25 -23 -21 -20 -18 -107
Estimated Outlays................................. -25 -23 -21 -20 -18 -107
Additional GNMA Offsetting Collections:
Estimated Authorization Level..................... -2 -2 -2 -2 -2 -10
Estimated Outlays................................. -2 -2 -2 -2 -2 -10
Total Changes:
Estimated Authorization Level................. -52 -77 -84 -53 -65 -331
Estimated Outlays............................. -41 -64 -80 -68 -58 -311
----------------------------------------------------------------------------------------------------------------
Notes:FHA = Federal Housing Administration; GNMA = Government National Mortgage Association. Components may not
sum to totals because of rounding.
aUsing the fair-value approach, CBO estimates that implementing H.R. 3700 would decrease offsetting collections
generated by FHA and GNMA by $117 million over the 2017-2021 period, assuming appropriation actions to allow
FHA to increase the amount of mortgage guarantees it provides by an amount sufficient to meet the increased
demand for mortgage guarantees under the bill. As shown in the table, using a FCRA approach, CBO estimates
that implementing H.R. 3700 would increase offsetting collections generated by FHA and GNMA by $117 million
over the 2017-2021 period.
Basis of estimate: For this estimate, CBO assumes that H.R.
3700 will be enacted by the end of fiscal year 2016, spending
will follow historical outlay patterns, and future
appropriations will be consistent with the bill. The bill would
require the changes to income determinations and allowances to
take effect at the start of a calendar year; CBO expects that
those changes would take effect beginning in January 2017. In
cases where the tenant rent contribution would change, CBO
assumes that appropriations will be adjusted to reflect the
costs of such changes. In addition, CBO assumes that these
changes would not affect the funding requirements for about
350,000 public housing or voucher units covered by Moving-to-
Work agreements because those public housing authorities (PHA)
are funded pursuant to their agreements, rather than the
standard administrative formulas.
Background
Almost 5 million households receive assistance through
HUD's various rental assistance programs, including the Section
8 Housing Choice Voucher program, public housing, and other
project-based subsidy programs. To be eligible for assistance,
family income must be below either 50 percent or 80 percent of
the area median income, depending on the program. Each program
has a minimum percentage of families receiving assistance who
must be below 30 percent of the area median income.
Tenants who receive assistance generally pay 30 percent of
their adjusted monthly income towards rent. Funding from HUD
covers the difference between what the tenant pays and the full
rent for the unit (up to certain limits). In the case of public
housing, HUD provides PHAs with operating and capital funding
that allows them to subsidize rents.
Families participating in HUD's rental assistance programs
have their incomes certified when they enter the program and at
least annually thereafter in most cases. Current law allows
various adjustments to income (called allowances) prior to
calculating a family's rent payment. Families may deduct
certain child care expenses and elderly and disabled households
may deduct any medical expenses that exceed 3 percent of
income. In addition, households may deduct $400 from gross
income if they include an elderly or disabled member, and all
households may deduct $480 for each dependent. As a result of
these deductions, the average adjusted income is approximately
8 percent lower than the average gross income.
Changes to allowances
This bill would change how allowances are used to lower
income to determine housing assistance; on net, CBO estimates
that implementing these provisions would reduce outlays by $483
million over the 2017-2021 period, assuming appropriation
actions consistent with the bill.
Medical Expense Allowance. Elderly and disabled families
can currently deduct the amount of unreimbursed medical
expenses that exceed 3 percent of the family's income. Based on
data provided by HUD, CBO estimates that 16 percent of families
claim an average allowance of $1,900 each (for a total of $1.3
billion). The bill would decrease the amount of medical
expenses that can be deducted to the amount that exceeds 10
percent of the family's income. CBO estimates that this change
would cut the number of families claiming medical expenses by
40 percent and the total amount claimed by about 45 percent.
CBO estimates that implementing that provision would reduce
discretionary spending by $909 million over the 2017-2021
period.
Child Care Allowance. Families may deduct any child care
expenses necessary to enable a member of the family to be
employed or attend school. Section 102 would only allow
families to deduct child care expenses that exceed 5 percent of
their annual family income. Based on data provided by HUD, CBO
estimates that about 4 percent of families (about 160,000)
claim child care allowances of about $3,300 each. CBO estimates
that implementing the new child care allowance would reduce
outlays by $215 million over the 2017-2021 period.
Elderly and Disabled Allowance. Section 102 would increase
the amount that can be deducted by elderly and disabled
households from $400 to $525, and would inflate that amount
each year, rounded down to the nearest multiple of $25. Based
on data provided by HUD, CBO estimates that this deduction is
claimed by just over half of households receiving assistance.
About 1 percent of families claiming the allowance would not
see any additional benefit from the increase because their
adjusted incomes are already at zero. CBO estimates that
increasing the elderly and disabled allowance would cost $404
million over the 2017-2021 period.
Dependent Allowance. The bill also would increase the
amount that can be deducted for dependents from $480 to $525,
and would inflate that amount each year, rounded down to the
nearest multiple of $25. Based on data provided by HUD, CBO
estimates that this allowance is currently claimed for about
3.7 million dependents. About 9 percent of families claiming
the allowance would not see any additional benefit from the
increase because their adjusted incomes are already at zero.
CBO estimates that increasing the dependent allowance would
cost $237 million over the 2017-2021 period.
Eligibility changes
H.R. 3700 would affect how household income and assets are
used to target assistance. On net, CBO estimates that
implementing these provisions would increase outlays by $105
million over the 2017-2021 period, assuming appropriation
actions consistent with those provisions.
Asset Eligibility. Section 104 would make households with
more than $100,000 in assets ineligible for assistance, but
would leave the enforcement of this provision up to the
discretion of the PHAs and property owners. Assets in
retirement accounts would be not be subject to the asset limit.
Based on data provided by HUD, CBO estimates that about 9,000
families would become ineligible for assistance under the bill.
Because there is unmet demand for participation in HUD's rental
assistance programs, CBO expects that families made ineligible
would be replaced by families on housing authority waiting
lists. Replacing those newly ineligible families (who have
higher than average incomes) with families with average income
would cost the government an additional $1,500 per family in
2017. CBO estimates that implementing that provision would cost
$59 million over the 2017-2021 period.
Income Eligibility. Under current law, families with income
over 80 percent of the area median income at their initial
certification are not eligible for assistance. Eligibility
tests are not done after the initial certification (most
incomes are certified each year to determine a tenant's rent
contribution); therefore, a family's income can rise above 80
percent of the area median and the family can continue to
receive assistance. Section 103 would require PHAs to terminate
assistance for households in public housing whose income
exceeds 120 percent of the median for two consecutive years.
Alternatively, the PHA could charge the household the market
rent for their unit.
Based on data provided by HUD, CBO estimates that
approximately 2,100 households that reside in public housing
would lose their subsidy. Because there is unmet demand for
participation in HUD's rental assistance programs, CBO expects
that families made ineligible would be replaced by families on
waiting lists maintained by housing authorities. Replacing
those newly ineligible families with families with average
income would cost the government an additional $4,900 per
family in 2017. CBO estimates that implementing that provision
would cost $46 million over the 2017-2021 period.
Income determination changes
Section 102 would require PHAs and property owners to
change the way they calculate income for determining housing
assistance. In total, those changes would increase spending
subject to appropriation by $39 million over the 2017-2021
period, assuming appropriation of the necessary amounts.
Aid and Attendance Exclusion. Section 102 would exclude
federal pensions of veterans who receive Aid and Attendance
(A&A) from the calculations of adjusted income. Doing so would
reduce affected veterans' rent contributions, thereby
increasing the cost of HUD's assistance payments. Based on data
from the Government Accountability Office, CBO estimates that
about 6 percent of households receiving assistance include a
veteran. Based on information from the Department of Veterans
Affairs, CBO estimates that less than 1 percent (about 1,600)
of those households include a veteran receiving A&A and that
those payments average about $16,000 per year. Excluding those
amounts from calculations of adjusted income would lower
tenants' rent contributions by about $6 million per year (once
fully phased in). CBO estimates that implementing that
provision would cost $27 million over the 2017-2021 period.
Imputed Return on Assets. Under current law, housing
authorities and property owners calculate a tenant's imputed
rate of return on any assets over $5,000 by using an interest
rate determined by HUD. If the imputed return on assets is
greater than actual income from assets, the imputed return is
included in the family's income. Section 102 would increase the
threshold for calculating imputed returns to $50,000. Based on
data provided by HUD, CBO estimates that about 1 percent of
families (about 40,000) have imputed income from assets that
would be excluded from their total income under the bill; asset
income counted for determining housing assistance would
decrease by about $8 million per year. CBO estimates that
excluding the imputed return on assets with a value of less
than $50,000 would cost $12 million over the 2017-2021 period.
Other housing assistance provisions
Payment Standard for Rent. Under current law, PHAs
generally must set a payment standard that is between 90 and
110 percent of the fair market rent. The standard, in
combination with a household's income, determines the amount of
the housing assistance payment (HAP) that the PHA pays to the
landlord. If the fair market rent in an area decreases, a PHA
that has set its payment standard at 110 percent would have to
decrease the HAP. Section 107 would allow a PHA to maintain the
HAP at the prior year's amount when the fair market rent in an
area decreases. Based on data from HUD, CBO estimates that
implementing this provision would cost $113 million over the
2017-2021 period.
Expansion of the Family Unification Program. Section 110
would make adults ages 22 to 24 who left foster care after age
16 eligible for Family Unification Program vouchers. Under
current law, only adults ages 18 to 21 who left foster care
after age 16 are eligible for those vouchers. In 2015, the
Congress appropriated about $6 million for that program. Based
on information from HUD, the department of Health and Human
Services, and studies on outcomes of adults that were
previously in foster care, CBO estimates that the Family
Unification Program served about 0.4 percent of eligible adults
in 2015. Assuming that the program serves the same proportion
of eligible adults ages 22 to 24 and adjusting for anticipated
inflation, CBO estimates that implementing that section would
cost $24 million over the 2017-2021 period.
Moving Assistance. Under current law, voucher payments that
are withheld because a unit failed inspection are retained by
the PHA; HUD's future payments to the PHA are then reduced by
the amount withheld. Section 101 would allow PHAs to use
voucher payments that are withheld because a unit failed
inspection to pay for the relocation costs of the tenant that
occupies the unit. Based on data provided by HUD and
information provided by PHAs, CBO expects that about 1,000
households would receive assistance to move each year and that
PHAs would provide about $1,500 per household. Thus, CBO
estimates that implementing this provision would cost $7
million over the 2017-2021 period.
Changes to FHA insurance requirement\1\
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\1\The budgetary effects of guarantees by FHA and the Government
National Mortgage Association (GNMA) are classified as discretionary
because new guarantees under those programs are subject to annual
appropriation actions. Under current law, the budgetary effects of
these activities are calculated under the Federal Credit Reform Act
(FCRA). As required in S. Con. Res. 11, the Concurrent Resolution on
the Budget for Fiscal Year 2016, CBO has also prepared a cost estimate
for this section of H.R. 3700 using a fair-value approach to estimating
the impact on FHA and GNMA. That alternative is discussed under the
heading, ``Additional Information.''
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H.R. 3700 would change certain requirements that determine
whether buyers of condominiums are eligible for FHA mortgage
guarantees. The bill would reduce the amount of units in a
condominium complex that must be owner occupied to qualify for
an FHA guarantee from 50 percent to 35 percent. The bill also
would eliminate a prohibition on providing FHA guarantees for
units that are subject to certain fees that are assessed to
owners who sell their condominiums.
Based on information provided by FHA and industry
representatives, CBO estimates that implementing H.R. 3700
would increase offsetting collections generated by FHA and the
Government National Mortgage Association (GNMA) by $117 million
over the 2017-2021 period, assuming appropriation actions to
allow FHA to increase the amount of mortgage guarantees it
provides by an amount sufficient to meet the increased demand
for mortgage guarantees under the bill. That estimate also
accounts for uncertainty regarding administrative actions that
may be taken by FHA under current law.
Additional FHA Offsetting Collections. CBO estimates that,
over the 2017-2021 period, implementing H.R. 3700 would
increase offsetting collections for FHA's single-family program
by $214 million. Those additional offsetting receipts would
stem from an increase in the volume of FHA loan guarantees. The
increase in the volume of guarantees would occur because
changes to FHA rules under the bill would allow additional
condominium buyers to qualify for FHA guarantees.
CBO estimates that under current law FHA will guarantee
about $1 trillion in new mortgages over the 2017-2021 period.
We estimate that, over the same period, enacting H.R. 3700
would increase mortgage guarantees from FHA's single-family
program by roughly $8 billion--an increase of about 0.75
percent. The combination of guarantee fees charged by FHA and
estimated defaults and mortgage prepayments over the next five
years yields an estimated average subsidy rate for FHA's
guarantees of -2.7 percent.\2\ Multiplying that subsidy rate by
the additional volume of mortgage guarantees expected to be
offered by FHA under the bill would result in additional
estimated offsetting collections of $214 million over the 2017-
2021 period. Because CBO estimates that there is a 50 percent
chance FHA will make similar rule changes under current law, we
estimate that new offsetting collections under the bill would
total $107 million over that period.
---------------------------------------------------------------------------
\2\A negative subsidy cost for a federal credit program can occur
if the net present value of upfront and annual fees charged for a loan
guarantee are greater than the estimated cost of a default on that
loan.
---------------------------------------------------------------------------
Additional GNMA Offsetting Collections. Through its
Mortgage-Backed Securities (MBS) program, GNMA is responsible
for guaranteeing securities backed by pools of mortgages that
are insured by federal agencies such as FHA. In exchange for a
fee paid by lenders or issuers of the securities, GNMA
guarantees the timely payment of scheduled principal and
interest due on the pooled mortgages that back those
securities. Because the value of the fees collected by GNMA is
estimated to exceed the cost of loan defaults in each year, CBO
estimates that the GNMA MBS program will have an average
subsidy rate of -0.28 percent over the 2017-2021 period,
resulting in net receipts collections to the federal
government.
CBO estimates that each year about 90 percent of the new
mortgage loan guarantees made by FHA would be included in
GNMA's MBS program. We also estimate that changes in FHA's
requirements for loan guarantees on condominiums under the bill
would increase FHA's loan-guarantee volume by $8 billion over
the next 5 years. Multiplying 90 percent of that amount by the
subsidy rate (-0.28 percent) results in additional offsetting
collections by GNMA's MBS program totaling $20 million over the
2017-2021 period. Because CBO estimates that there is a 50
percent chance that FHA will make similar rule changes under
current law, we estimate that implementing the bill would
increase offsetting collections from GNMA's MBS program by $10
million over that period.
Additional information: This section provides additional
information on the estimated effects of title III of H.R. 3700
on the fair-value costs of the FHA single-family, FHA
multifamily, and GNMA programs. CBO is required to provide this
information by S. Con. Res. 11. Under current law, the costs of
those programs are measured in the budget according to the
procedures established in the Federal Credit Reform Act (FCRA).
The fair-value approach is an alternative to the approach
specified in FCRA. Both the FCRA approach and the fair-value
approach rely on the same projections of future cash flows for
the guarantee programs, and both approaches take into account
the lifetime cost of the new guarantees made in a given year
(including the expected cost of defaults, net of fees
collected). The fair-value estimates differ from the FCRA
estimates by recognizing that the government's assumption of
financial risk has a cost that exceeds the average amount of
losses that would be expected from defaults. In practice, the
main difference between FCRA estimates and fair-value estimates
is the discount rates used to calculate the present value of
estimated future guarantee costs and receipts.
Using the fair-value approach, CBO estimates that
implementing H.R. 3700 would decrease offsetting collections
generated by FHA and GNMA by $117 million over the 2017-2021
period, assuming appropriation actions to allow FHA to increase
the amount of mortgage guarantees it provides by an amount
sufficient to meet the increased demand for mortgage guarantees
under the bill. Using a FCRA approach, CBO estimates that
implementing H.R. 3700 would increase offsetting collections
generated by FHA and GNMA by $117 million over the 2017-2021
period.
Pay-As-You-Go considerations: None.
Increase in long term direct spending and deficits: CBO
estimates that enacting H.R. 3700 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2026.
Intergovernmental and private-sector impact: H.R. 3700
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from housing assistance activities authorized in the
bill. Any costs those governments incur to comply with grant
requirements would result from conditions of federal
assistance.
Estimate prepared by: Federal costs: Elizabeth Cove Delisle
(for public housing) and Jeff LaFave (for FHA); Impact on
state, local, and tribal governments: J'nell Blanco Suchy;
Impact on the private sector: Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 3700 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee states that no provision of H.R. 3700 establishes
or reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee states that H.R. 3700 contains four directed
rulemakings.
Section-by-Section Analysis of the Legislation
TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
Section 101. Inspection of dwelling units
The section requires that a public housing authority (PHA)
must conduct an initial inspection prior to any Section 8
voucher housing assistance payment being made to a tenant. If
the unit has been inspected within the previous 24 months
through an alternative inspection method under a Federal,
State, or local housing program (including the HOME and Low-
Income Housing Tax Credit programs), the tenant may occupy the
unit for an interim period until the PHA determines, through an
inspection, that the unit meets the housing quality standards.
In the event that the unit does not meet the housing quality
standards as a result of non-life-threatening conditions, the
tenant may occupy the unit and the unit's owner has 30 days to
correct the deficiency.
A PHA can determine that a dwelling unit is in non-
compliance if (1) it fails inspection, (2) the PHA notifies the
unit's owner of its failure to comply, and (3) the failure to
comply is not corrected within 24 hours for a life-threatening
condition and within 30 days for a non-life-threatening
condition. Further, a PHA may withhold assistance payments
during the correction period for life-threatening and non-life-
threatening conditions and shall abate all assistance amounts
if the owner does not correct the deficiency during the
appropriate correction period. The PHA shall recommence housing
assistance payments to the owner once the deficiency is
corrected.
If a PHA abates assistance payments to the owner of the
unit for failure to comply with the housing quality standards,
the PHA must (1) notify the tenant that such abatement has
commenced and that the tenant will have to move if the dwelling
unit is not brought into compliance within 60 days and (2)
allow the tenant to move to another unit and transfer the
rental assistance to that unit. The owner of the unit may not
terminate the tenant's lease if the PHA withholds or abates
rental assistance payments. If the PHA abates assistance, the
tenant may terminate the lease by notifying the owner.
A PHA shall terminate the housing assistance payments
contract for the unit if during the abatement period the owner
does not correct the deficiency within 60 days after the
determination of non-compliance. Once a contract is terminated,
the PHA shall provide the affected tenant at least 90 days to
lease a new unit. If the family is unable to lease a new unit,
the PHA shall provide the tenant a preference for occupancy in
a unit that is owned or operated by the PHA. In addition, the
PHA may provide additional assistance to the tenants in finding
a new residence, including payments of security deposits for
the new unit and moving expenses. If the PHA determines that
any damage to the unit that results in the unit's failure to
comply with housing quality standards is due to tenant-caused
damages, the PHA does not have to provide relocation assistance
to the tenant or exonerate the tenant from liability for such
damages.
These provisions would take effect once HUD issues a notice
or regulations regarding implementation.
Section 102. Income reviews
This section provides that income reviews for assisted
families in dwelling units assisted under the U.S. Housing Act
of 1937 shall be made upon the initial provision of housing
assistance for the family and annually thereafter, unless the
family's adjusted annual income or deductions decrease by 10
percent.
In determining family income for initial occupancy, the PHA
or owner shall use the income of the family as estimated by the
agency or owner for the upcoming year. In determining family
income for annual reviews, a PHA or owner shall use the prior
year's income but take into consideration any redetermination
of income during the prior year. In addition, HUD shall, in
consultation with other appropriate agencies, develop
procedures to enable PHAs and owners to have access to income
determinations for families made by other means-tested Federal
programs that have comparable reliability. Also, no later than
six months after the bill is enacted, the Secretary shall
certify for Congress that the hardship provisions currently in
statute for minimum rents are enforced and will continue to
provide due consideration to the hardship circumstances of
persons receiving housing assistance.
In addition, this section defines ``income'' with respect
to assisted families as income received from all sources by
each member of the household who is 18 years or older, plus
unearned income by each dependent who is less than 18 years
old. Such term for income includes recurring gifts and
receipts, actual income from assets, and profit or loss from a
business. Excluded amounts for the definition of income are:
(1) any imputed return on assets below $50,000; (2) any amounts
that would be eligible for exclusion under section 1613(a)(7)
of the Social Security Act; (3) deferred disability benefits of
the Department of Veterans Affairs; (4) expenses related to aid
and attendance to veterans who are in need of regular aid and
attendance; and (5) any exclusions from income as established
by HUD. The income definition does not include earned income of
any dependent who is attending school or any scholarship
amounts related to school attendance. Income shall be
determined without regard to any amounts in or from any
Coverdell education savings accounts or any qualified tuition
program under section 529 of the Internal Revenue Code of 1986.
The HUD Secretary may not require a public housing agency or
owner to maintain records of any amounts excluded from income.
This section provides the following deductions for the
purposes of defining an assisted family's `adjusted income:'
(1) $525 for a family that is elderly or disabled; (2) $525 for
each dependent; (3) any amount that exceeds 5 percent of annual
family income that is used to pay for unreimbursed child care
expenses; and (4) any amount by which 10 percent of annual
family income is exceeded by the sum of unreimbursed health and
medical care expenses, unreimbursed attendant care, and
auxiliary apparatus expenses. The Secretary of HUD may provide
hardship exemptions for impacted families by regulation (such
regulations shall include a requirement to notify tenants
regarding any changes to the determination of adjusted income)
and shall establish procedures to ensure that additional
deductions as determined by the PHA does not materially
increase Federal expenditures. This section gives the PHA the
ability to establish a voucher payment standard of not more
than 120 percent of the fair market rent for a person with a
disability.
The section also provides conforming amendments for
enhanced vouchers and project-based housing. In addition, if
the Secretary of HUD determines that the income reviews under
this section results in a material and disproportionate
reduction in the rental income of certain PHAs, the Secretary
may make appropriate adjustments in the formula income for such
a reduction. This section requires that HUD submit a report to
Congress on the changes made by this provision.
Section 103. Limitation on public housing tenancy for over-income
families
Under this provision, for any tenant determined to have
income in excess of 120 percent of the area median income for
two consecutive years, a PHA would be required either to (1)
charge the tenant either the greater of the fair market rent or
the amount of taxpayer subsidy for the unit, or (2) terminate
the tenancy of such tenant not later than 6 months after the
tenant has exceeded the income limit for two years, as
determined by the PHA. The provision gives the Secretary of HUD
the ability to establish income limitations higher or lower
than 120 percent of median income for those areas where there
are unique local conditions, e.g. high cost or very-low-income
rental market areas.
Section 104. Limitation on eligibility for assistance based on assets
This section specifies that any dwelling unit assisted
under the U.S. Housing Act of 1937 may not be rented and
assistance may not be provided to any family whose net family
assets exceed $100,000, as adjusted for inflation, or a family
who has a present ownership interest in real property that is
suitable for occupancy by the family as a residence. Victims of
domestic violence, individuals using housing assistance for
homeownership opportunities, or a family that is offering such
property for sale are exempt from the limitations in this
section.
Net family assets is defined as 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. The term `net family assets'
does not include: (1) the value of personal property; (2) the
value of any retirement account; (3) real property for which
the family does not have the effective legal authority to sell;
(4) any amounts recovered in any civil action or settlement
based on a claim of malpractice, negligence that resulted in a
family member being disabled; and (5) other exclusions the HUD
Secretary may establish.
In the cases in which a trust fund has been established and
the trust is not revocable by any member of the family, the
value of the trust fund shall not be considered an asset of the
family if the fund continues to be held in trust. When
recertifying family income with respect to families residing in
public housing units, the PHA may chose not to enforce the
asset limitation in this provision.
Section 105. Units owned by public housing agencies
This provision defines the types of units owned by a PHA to
be any dwelling unit that is located in a project that is owned
by the PHA, by an entity wholly controlled by the PHA, or by a
limited liability company or limited partnership where the PHA
holds a controlling interest. Units will not be considered
owned by a PHA if the agency only holds an interest in the
ground lease, holds a security interest under a mortgage or
deed of trust on the unit or holds a non-controlling interest
in an entity that owns the unit.
Section 106. PHA project-based assistance
This section authorizes a PHA to attach vouchers to an
apartment, rather than a tenant, a.k.a. project base voucher
(PBV), up to a limit of 20 percent of its authorized voucher
allocation. It also enables a PHA to provide up to an
additional 10 percent of its authorized vouchers to create
units targeting homeless individuals and families, veterans,
elderly households or households with persons with
disabilities, or units in areas where vouchers are difficult to
use due to market conditions. Any units previously subject to
federally required rent restrictions or receiving another type
of long-term housing subsidy provided by the HUD Secretary
shall not count toward the 20 percent limitation.
The section also allows a PHA to provide PBV assistance to
properties where the assistance does not exceed 25 percent of
the units in a property or 25 units, whichever is greater.
These limits would not apply to units that are exclusively made
available to elderly families or to households eligible for
supportive services. Further, in areas where vouchers are
difficult to use, or in census tracts with a poverty rate of 20
percent or lower, PHAs may provide PBV assistance to up to 40
percent of units in a property. The limitations on the share of
units in a property that may have project-based assistance
would only apply to newly assisted properties. Units of PBV
assistance that are attached to units previously subject to
federally required rent restrictions or receiving other
project-based assistance would be exempted from this cap.
In addition, this section extends the permissible term of
PBV contracts from 15 to 20 years, and in the event of
insufficient funding would require PHAs to prioritize payments
for units subject to a PBV contract if other cost-saving
measures are available. The PHA and the owner may add eligible
units within the same project to a housing assistance payments
contract at any time during the term. In addition, the
provision further states that an agency may enter into a
housing assistance payments contract with an owner for housing
under construction or recently constructed. This section
extends tenant-based assistance for households to continue to
reside in the property or to choose to move in the event the
PBV contract is not extended or is terminated.
This section allows PHAs and owners to agree to limit the
amount of a requested rent increase to the operating cost
adjustment factor (OCAF) permitted for most properties with HUD
section 8 contracts. It also allows owners to request an
additional adjustment periodically subject to rent
reasonableness.
In addition, the section allows residents to place their
names on site-specific waiting lists managed by owners, in
addition to the waiting list established by the PHA. It allows
a PHA to provide PBV assistance to improve, develop, or replace
a public housing property or property that it controls or has
an ownership interest in without having to use a competitive
process, so long as it notifies residents and the public
through its annual plan.
This section clarifies that PHAs may use project-base HUD-
Veterans Affairs Supportive Housing (HUD-VASH) and Family
Unification Program (FUP) vouchers under the same policies and
procedures applicable to general purpose vouchers. This change
will facilitate the use of these vouchers--which provide stable
affordable homes for homeless veterans and families involved
with the child welfare system--for supportive housing and in
areas where there is a shortage of suitable rental units.
Section 107. Establishment of fair market rent
This provision modifies the public notice requirements for
proposed Fair Market Rents (FMRs) by moving the notifications
to the HUD-designated website with notice of the availability
of the data published in the Federal Register and eliminating
publication in the Federal Register. HUD would continue to be
required to publish in the Federal Register any proposed
substantial methodological changes in advance and allow
interested parties to request changes after final FMRs are
published. Housing agencies are permitted to request exception
payment standards subject to HUD established criteria. This
provision also provides that a PHA would not be required to
reduce any payment standard for a unit based on the fair market
rent determination if the family occupying the unit before the
FMR analysis continues to reside in the unit.
Section 108. Collection of utility data
This provision requires HUD to collect and publish utility
consumption data to assist in establishment of tenant-paid
utility allowances by PHAs, provided the data can be collected
in a cost effective manner. HUD must also establish guidelines
for use of the data in a manner that avoids unnecessary
administrative burdens for PHAs.
Section 109. Public housing Capital and Operating Funds
This provision permits PHAs to establish a replacement
reserve for capital fund activities. At the discretion of the
Secretary of HUD, a PHA may hold in the replacement reserve
funds originating from additional sources. Further, a PHA may
hold, in its replacement reserve, only the amounts necessary to
satisfy the anticipated capital needs of properties in its
public housing portfolio. By regulation, the Secretary of HUD
may establish a maximum reserve level that takes into
consideration the size of the PHA's public housing portfolio.
In establishing the replacement reserve, the Secretary of HUD
may allow the PHA to transfer more than 20 percent of its
operating funds into its replacement reserve. This provision
also gives PHAs the discretion to use up to 20 percent of their
operating funds for eligible capital fund activities, provided
that the use is outlined in the PHA's annual plan.
Section 110. Family Unification Program
This provision extends the period for which a young adult,
recently aging out of foster care, can use a family unification
housing voucher from 18 to 36 months and increases the maximum
age for an individual using a Family Unification Program (FUP)
voucher to 24 years of age. This provision also states that the
HUD Secretary shall, beginning 180 days after enactment, issue
guidance to improve coordination between PHAs and public child
welfare agencies in carrying out FUP. It requires that HUD
shall provide guidance on: (1) identifying eligible recipients
for assistance; (2) coordinating with other local youth and
family homeless assistance providers; (3) implementing housing
strategies to assist eligible families and youth; (4) aligning
system goals to improve outcomes for families and youth; and
(5) identifying resources that are available to eligible
families and youth to provide supportive services.
TITLE II--RURAL HOUSING
Section 201. Delegation of guaranteed rural housing loan approval
This provision amends Section 502(h) of the Housing Act of
1949 to authorize the Rural Housing Service single family
housing guaranteed loan program (GLP) to delegate loan approval
authority to preferred lenders, in accordance with standards
established by the Secretary of Agriculture.
TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
Section 301. Modification of FHA requirements for mortgage insurance
for condominiums
This section requires the Secretary of HUD to streamline
the FHA's condominium project certification requirements so
that re-certification is substantially less burdensome than
original certifications. More specifically, the Secretary must
consider lengthening the time between certification and re-
certifications. Also, this provision allows decisions on
exemptions to current FHA commercial space requirements to be
made at a HUD field office, and requires that any such
exemption take into account factors relating to the local
economy and specific condominium project. No later than 90 days
after the date of enactment, the Secretary of HUD shall issue
regulations to implement the commercial space exemption
requirements.
In addition, this section states that existing standards of
the Federal Housing Finance Agency (FHFA) relating to
encumbrances under private transfer fee covenants for Fannie
Mae and Freddie Mac shall apply to FHA insured condominium
mortgages. If the FHFA changes its existing standards for those
private transfer fee covenants after the date of enactment of
this provision, the Secretary of HUD shall adopt FHFA's
changes.
This section also requires that the Secretary of HUD shall,
by rule, notice, or mortgagee letter, issue guidance regarding
the percentage of units that must be occupied by the owners in
order for a condominium project to be acceptable to HUD for
insurance of a mortgage within such condominium property. If
the Secretary of HUD fails to issue guidance before the
expiration of the 90 day period, the following provisions shall
apply: (1) at least 35 percent of all family units must be
occupied by the owners who intend to meet such occupancy
requirement, and (2) the Secretary of HUD may increase the 35
percent requirement to a condominium project on a project-by-
project or regional basis, provided that in determining such
percentage for a project shall consider factors relating to the
economy for the locality in which such project is located.
TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
Section 401. Definition of geographic area for Continuum of Care
Program
This provision requires the Secretary of HUD to define the
term ``geographic area'' for purposes of the Continuum of Care
program.
Section 402. Inclusion of public housing agencies and local
redevelopment authorities in emergency solutions grants
This provision expands the scope of the Emergency Solutions
Grants (ESGs) distribution to PHAs and Local Redevelopment
Authorities (LRAs) so that any state receiving ESG funds can
distribute all or a portion of such assistance to private
nonprofits, PHAs or LRAs if the local government for the
locality in which the project is located approves the project.
Section 403. Special assistant for Veterans Affairs in the Department
of Housing and Urban Development
This provision requires HUD to transfer the position of
Special Assistant for Veterans Affairs from the HUD Office of
the Deputy Assistant Secretary for Special Needs to the Office
of the Secretary. There, the Special Assistant would be
responsible for ensuring that veterans have fair access to HUD
housing and homeless assistance programs, coordinate all HUD
programs and activities relating to veterans, and serve as a
HUD liaison with the Department of Veterans Affairs.
Section 404. Annual supplemental report on Veterans homelessness
This provision requires the Secretaries of HUD and Veterans
Affairs, in coordination with the U.S. Interagency Council on
Homelessness, to submit annual reports to particular
congressional committees regarding: the number of veterans
provided assistance by HUD programs, coordination of services
for veterans, and cost of administering programs to veterans.
TITLE V--MISCELLANEOUS
Section 501. Inclusion of Disaster Housing Assistance Program in
certain fraud and abuse prevention measures
This provision requires that all recipients of HUD Disaster
Assistance funds meet McKinney-Vento income verification and
matching requirements.
Section 502. Energy efficiency requirement under Self-Help Ownership
Opportunity program
This provision prohibits the Secretary of HUD from
requiring that any dwelling in the Self-Help Ownership
Opportunity Program (SHOP) be required to meet any energy
efficiency standards other than those contained in the
Cranston-Gonzalez National Affordable Housing Act.
Section 503. Data exchange standardization for improved
interoperability
This provision streamlines data exchange standards to
improve interoperability between state and federal agencies by
requiring the Secretary of HUD to, through consultation, create
data exchange standards such that agencies, such as HUD and
RHS, are using the same data sets when administering and
determining eligibility for its respective means-tested housing
programs. The Secretary of HUD must issue a proposed rule
within two years after enactment to identify federally-required
data exchanges, specify the timing of exchanges to be
standardized, address factors used in determining whether and
when to standardize data exchanges, specify state
implementation options, and outline future milestones.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
UNITED STATES HOUSING ACT OF 1937
TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING
* * * * * * *
rental payments; definitions
Sec. 3. (a)(1) Dwelling units assisted under this Act shall
be rented only to families who are low-income families at the
time of their initial occupancy of such units. Reviews of
family income shall be made [at least annually] pursuant to
paragraph (6) . Except as provided in paragraph (2) and subject
to the requirement under paragraph (3), a family shall pay as
rent for a dwelling unit assisted under this Act (other than a
family assisted under section 8(o) or (y) or paying rent under
section 8(c)(3)(B)) the highest of the following amounts,
rounded to the nearest dollar:
(A) 30 per centum of the family's monthly adjusted
income;
(B) 10 per centum of the family's monthly income; or
(C) if the family is receiving payments for welfare
assistance from a public agency and a part of such
payments, adjusted in accordance with the family's
actual housing costs, is specifically designated by
such agency to meet the family's housing costs, the
portion of such payments which is so designated.
(2) Rental payments for public housing families.--
(A) Authority for family to select.--
(i) In general.-- A family residing in a
public housing dwelling shall pay as monthly
rent for the unit the amount determined under
clause (i) or (ii) of subparagraph (B), subject
to the requirement under paragraph (3)
(relating to minimum rents). Each public
housing agency shall provide for each family
residing in a public housing dwelling unit
owned, assisted, or operated by the agency to
elect annually whether the rent paid by such
family shall be determined under clause (i) or
(ii) of subparagraph (B). A public housing
agency may not at any time fail to provide both
such rent options for any public housing
dwelling unit owned, assisted, or operated by
the agency.
(ii) Authority to retain flat and ceiling
rents.-- Notwithstanding clause (i) or any
other provision of law, any public housing
agency that is administering flat rents or
ceiling rents pursuant to any authority
referred to in section 519(d) of the Quality
Housing and Work Responsibility Act of 1998
before the effective day of such Act may
continue to charge rent in accordance with such
rent provisions after such effective date,
except that the agency shall provide for
families residing in public housing dwelling
units owned or operated by the agency to elect
annually whether to pay rent under such
provisions or in accordance with one of the
rent options referred to in subparagraph (A).
(B) Allowable rent structures.--
(i) Flat rents.-- Each public housing agency
shall establish, for each dwelling unit in
public housing owned or operated by the agency,
a flat rental amount for the dwelling unit,
which--
(I) shall not be lower than 80
percent of--
(aa) the applicable fair
market rental established under
section 8(c) of this Act; or
(bb) at the discretion of the
Secretary, such other
applicable fair market rental
established by the Secretary
that the Secretary determines
more accurately reflects local
market conditions and is based
on an applicable market area
that is geographically smaller
than the applicable market area
used for purposes of the
applicable fair market rental
under section 8(c);
except that a public housing
agency may apply to the
Secretary for exception
allowing for a flat rental
amount for a property that is
lower than the amount otherwise
determined pursuant to item
(aa) or (bb) and the Secretary
may grant such exception if the
Secretary determines that the
fair market rental for the
applicable market area pursuant
to item (aa) or (bb) does not
reflect the market value of the
property and the proposed lower
flat rental amount is based on
a market analysis of the
applicable market and complies
with subclause (II) and
(II) shall be designed in accordance
with subparagraph (D) so that the rent
structures do not create a disincentive
for continued residency in public
housing by families who are attempting
to become economically self-sufficient
through employment or who have attained
a level of self-sufficiency through
their own efforts.
If a new flat rental amount for a dwelling unit
will increase a family's existing rental
payment by more than 35 percent, the new flat
rental amount shall be phased in as necessary
to ensure that the family's existing rental
payment does not increase by more than 35
percent annually. The preceding sentence shall
not be construed to require establishment of
rental amounts equal to 80 percent of the fair
market rental in years when the fair market
rental falls from the prior year.
(ii) Income-based rents.--
(I) In general.-- The monthly rental
amount determined under this clause for
a family shall be an amount, determined
by the public housing agency, that does
not exceed the greatest of the amounts
(rounded to the nearest dollar)
determined under subparagraphs (A),
(B), and (C) of paragraph (1). This
clause may not be construed to require
a public housing agency to charge a
monthly rent in the maximum amount
permitted under this clause.
(II) Discretion.-- Subject to the
limitation on monthly rental amount
under subclause (I), a public housing
agency may, in its discretion,
implement a rent structure under this
clause requiring that a portion of the
rent be deposited to an escrow or
savings account, imposing ceiling
rents, or adopting income exclusions
(such as those set forth in section
3(b)(5)(B)), or may establish another
reasonable rent structure or amount.
(C) Switching rent determination methods because of
hardship circumstances.-- Notwithstanding subparagraph
(A), in the case of a family that has elected to pay
rent in the amount determined under subparagraph
(B)(i), a public housing agency shall immediately
provide for the family to pay rent in the amount
determined under subparagraph (B)(ii) during the period
for which such election was made upon a determination
that the family is unable to pay the amount determined
under subparagraph (B)(i) because of financial
hardship, including--
(i) situations in which the income of the
family has decreased because of changed
circumstances, loss of reduction of employment,
death in the family, and reduction in or loss
of income or other assistance;
(ii) an increase, because of changed
circumstances, in the family's expenses for
medical costs, child care, transportation,
education, or similar items; and
(iii) such other situations as may be
determined by the agency.
(D) Encouragement of self-sufficiency.-- The rental
policy developed by each public housing agency shall
encourage and reward employment and economic self-
sufficiency.
(E) Income reviews.-- Notwithstanding the second
sentence of paragraph (1), in the case of families that
are paying rent in the amount determined under
subparagraph (B)(i), the agency shall review the income
of such family not less than once every 3 years.
(3) Minimum rental amount.--
(A) Requirement.-- Notwithstanding paragraph (1) of
this subsection, the method for rent determination
elected pursuant to paragraph (2)(A) of this subsection
by a family residing in public housing, section 8(o)(2)
of this Act, or section 206(d) of the Housing and
Urban-Rural Recovery Act of 1983 (including paragraph
(5) of such section), the following entities shall
require the following families to pay a minimum monthly
rental amount (which amount shall include any amount
allowed for utilities) of not more than $50 per month,
as follows:
(i) Each public housing agency shall require
the payment of such minimum monthly rental
amount, which amount shall be determined by the
agency, by--
(I) each family residing in a
dwelling unit in public housing by the
agency;
(II) each family who is assisted
under the certificate or moderate
rehabilitation program under section 8;
and
(III) each family who is assisted
under the voucher program under section
8, and the agency shall reduce the
monthly assistance payment on behalf of
such family as may be necessary to
ensure payment of such minimum monthly
rental amount.
(ii) The Secretary shall require each family
who is assisted under any other program for
rental assistance under section 8 to pay such
minimum monthly rental amount, which amount
shall be determined by the Secretary.
(B) Exception for hardship circumstances.--
(i) In general.-- Notwithstanding
subparagraph (A), a public housing agency (or
the Secretary, in the case of a family
described in subparagraph (A)(ii)) shall
immediately grant an exemption from application
of the minimum monthly rental under such
subparagraph to any family unable to pay such
amount because of financial hardship, which
shall include situations in which (I) the
family has lost eligibility for or is awaiting
an eligibility determination for a Federal,
State, or local assistance program, including a
family that includes a member who is an alien
lawfully admitted for permanent residence under
the Immigration and Nationality Act who would
be entitled to public benefits but for title IV
of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996; (II)
the family would be evicted as a result of the
imposition of the minimum rent requirement
under subparagraph (A); (III) the income of the
family has decreased because of changed
circumstance, including loss of employment;
(IV) a death in the family has occurred; and
(V) other situations as may be determined by
the agency (or the Secretary, in the case of a
family described in subparagraph (A)(ii)).
(ii) Waiting period.-- If a resident requests
a hardship exemption under this subparagraph
and the public housing agency (or the
Secretary, in the case of a family described in
subparagraph (A)(ii)) reasonably determines the
hardship to be of a temporary nature, an
exemption shall not be granted during the 90-
day period beginning upon the making of a
request for the exemption. A resident may not
be evicted during such 90-day period for
nonpayment of rent. In such a case, if the
resident thereafter demonstrates that the
financial hardship is of a long-term basis, the
agency (or the Secretary) shall retroactively
exempt the resident from the applicability of
the minimum rent requirement for such 90-day
period.
(4) Occupancy by police officers.--
(A) In general.-- Subject to subparagraph (B)
and notwithstanding any other provision of law,
a public housing agency may, in accordance with
the public housing agency plan for the agency,
allow a police officer who is not otherwise
eligible for residence in public housing to
reside in a public housing dwelling unit. The
number and location of units occupied by police
officers under this paragraph and the terms and
conditions of their tenancies shall be
determined by the public housing agency.
(B) Increased security.-- A public housing
agency may take the actions authorized in
subparagraph (A) only for the purpose of
increasing security for the residents of a
public housing project.
(C) Definition.-- In this paragraph, the term
``police officer'' means any person determined
by a public housing agency to be, during the
period of residence of that person in public
housing, employed on a full-time basis as a
duly licensed professional police officer by a
Federal, State, or local government or by any
agency thereof (including a public housing
agency having an accredited police force).
(5) Occupancy by over-income families in certain
public housing.--
(A) Authority.-- Notwithstanding any other
provision of law, a public housing agency that
owns or operates less than 250 units may, on a
month-to-month basis, lease a dwelling unit in
a public housing project to an over-income
family in accordance with this paragraph, but
only if there are no eligible families applying
for housing assistance from the public housing
agency for that month and the agency provides
not less than 30-day public notice of the
availability of such assistance.
(B) Terms and conditions.-- The number and
location of dwelling units of a public housing
agency occupied under this paragraph by over-
income families, and the terms and conditions
of those tenancies, shall be determined by the
public housing agency, except that--
(i) notwithstanding paragraph (2),
rent for a unit shall be in an amount
that is not less than the costs to
operate the unit;
(ii) if an eligible family applies
for residence after an over-income
family moves in to the last available
unit, the over-income family shall
vacate the unit in accordance with
notice of termination of tenancy
provided by the agency, which shall be
provided not less than 30 days before
such termination; and
(iii) if a unit is vacant and there
is no one on the waiting list, the
public housing agency may allow an
over-income family to gain immediate
occupancy in the unit, while
simultaneously providing reasonable
public notice and outreach with regard
to availability of the unit.
(C) Definition.-- For purposes of this
paragraph, the term ``over-income family''
means an individual or family that is not a
low-income family at the time of initial
occupancy.
(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, 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) Use of current year income.-- In
determining family income for initial occupancy
or provision of housing assistance pursuant to
clause (i) of paragraph (6)(A) or pursuant to
reviews pursuant to clause (iii) or (iv) of
such paragraph, a public housing agency or
owner shall use the income of the family as
estimated by the agency or owner for the
upcoming year.
(B) Use of prior year income.-- In
determining family income for annual reviews
pursuant to paragraph (6)(A)(ii), a public
housing agency or owner shall, except as
otherwise provided in this paragraph and
paragraph (1), use the income of the family as
determined by the agency or owner for the
preceding year, taking into consideration any
redetermination of income during such prior
year pursuant to clause (iii) or (iv) of
paragraph (6)(A).
(C) Other income.-- In determining the income
for any family based on the prior year's
income, with respect to prior year calculations
of income not subject to subparagraph (B), a
public housing agency or owner may make other
adjustments as it considers appropriate to
reflect current income.
(D) Safe harbor.-- A public housing agency or
owner may, to the extent such information is
available to the public housing agency or
owner, determine the family's income prior to
the application of any deductions based on
timely income determinations made for purposes
of other means-tested Federal public assistance
programs (including the program for block
grants to States for temporary 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
procedures to enable public housing agencies
and owners to have access to such income
determinations made by other means-tested
Federal programs 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) 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.
(b) When used in this Act:
(1) The term ``low-income housing'' means decent, safe, and
sanitary dwellings assisted under this Act. The term ``public
housing'' means low-income housing, and all necessary
appurtenances thereto, assisted under this Act other than under
section 8. The term ``public housing'' includes dwelling units
in a mixed finance project that are assisted by a public
housing agency with capital or operating assistance. When used
in reference to public housing, the term ``low-income housing
project'' or ``project'' means (A) housing developed, acquired,
or assisted by a public housing agency under this Act, and (B)
the improvement of any such housing.
(2)(A) The term low-income families means those families
whose incomes do not exceed 80 per centum of the median income
for the area, as determined by the Secretary with adjustments
for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 80 per centum of
the median for the area on the basis of the Secretary's
findings that such variations are necessary because of
prevailing levels of construction costs or unusually high or
low family incomes.
(B) The term very low-income families means low-income
families whose incomes do not exceed 50 per centum of the
median family income for the area, as determined by the
Secretary with adjustments for smaller and larger families,
except that the Secretary may establish income ceilings higher
or lower than 50 per centum of the median for the area on the
basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes.
(C) The term extremely low-income families means very
low-income families whose incomes do not exceed the
higher of--
(i) the poverty guidelines updated
periodically by the Department of Health and
Human Services under the authority of section
673(2) of the Community Services Block Grant
Act applicable to a family of the size involved
(except that this clause shall not apply in the
case of public housing agencies or projects
located in Puerto Rico or any other territory
or possession of the United States); or
(ii) 30 percent of the median family income
for the area, as determined by the Secretary,
with adjustments for smaller and larger
families (except that the Secretary may
establish income ceilings higher or lower than
30 percent of the median for the area on the
basis of the Secretary's findings that such
variations are necessary because of unusually
high or low family incomes).
(D) Such ceilings shall be established in consultation with
the Secretary of Agriculture for any rural area, as defined in
section 520 of the Housing Act of 1949, taking into account the
subsidy characteristics and types of programs to which such
ceilings apply. In determining median incomes (of persons,
families, or households) for an area or establishing any
ceilings or limits based on income under this Act, the
Secretary shall determine or establish area median incomes and
income ceilings and limits for Westchester and Rockland
Counties, in the State of New York, as if each such county were
an area not contained within the metropolitan statistical area
in which it is located. In determining such area median incomes
or establishing such income ceilings or limits for the portion
of such metropolitan statistical area that does not include
Westchester or Rockland Counties, the Secretary shall determine
or establish area median incomes and income ceilings and limits
as if such portion included Westchester and Rockland Counties.
In determining areas that are designated as difficult
development areas for purposes of the low-income housing tax
credit, the Secretary shall include Westchester and Rockland
Counties, New York, in the New York City metropolitan area.
(3) Persons and families.--
(A) Single persons.-- The term ``families'' includes
families consisting of a single person in the case of
(i) an elderly person, (ii) a disabled person, (iii) a
displaced person, (iv) the remaining member of a tenant
family, and (v) any other single persons. In no event
may any single person under clause (v) of the first
sentence be provided a housing unit assisted under this
Act of 2 or more bedrooms.
(B) Families.-- The term ``families'' includes
families with children and, in the cases of elderly
families, near-elderly families, and disabled families,
means families whose heads (or their spouses), or whose
sole members, are elderly, near-elderly, or persons
with disabilities, respectively. The term includes, in
the cases of elderly families, near-elderly families,
and disabled families, 2 or more elderly persons, near-
elderly persons, or persons with disabilities living
together, and 1 or more such persons living with 1 or
more persons determined under the public housing agency
plan to be essential to their care or well-being.
(C) Absence of children.-- The temporary absence of a
child from the home due to placement in foster care
shall not be considered in determining family
composition and family size.
(D) Elderly person.-- The term ``elderly person''
means a person who is at least 62 years of age.
(E) Person with disabilities.-- The term ``person
with disabilities'' means a person who--
(i) has a disability as defined in section
223 of the Social Security Act,
(ii) is determined, pursuant to regulations
issued by the Secretary, to have a physical,
mental, or emotional impairment which (I) is
expected to be of long-continued and indefinite
duration, (II) substantially impedes his or her
ability to live independently, and (III) is of
such a nature that such ability could be
improved by more suitable housing conditions,
or
(iii) has a developmental disability as
defined in section 102 of the Developmental
Disabilities Assistance and Bill of Rights Act
of 2000.
Such term shall not exclude persons who have the
disease of acquired immunodeficiency syndrome or any
conditions arising from the etiologic agent for
acquired immunodeficiency syndrome. Notwithstanding any
other provision of law, no individual shall be
considered a person with disabilities, for purposes of
eligibility for low-income housing under this title,
solely on the basis of any drug or alcohol dependence.
The Secretary shall consult with other appropriate
Federal agencies to implement the preceding sentence.
(F) Displaced person.-- The term ``displaced person''
means a person displaced by governmental action, or a
person whose dwelling has been extensively damaged or
destroyed as a result of a disaster declared or
otherwise formally recognized pursuant to Federal
disaster relief laws.
(G) Near-elderly person.-- The term ``near-elderly
person'' means a person who is at least 50 years of age
but below the age of 62.
[(4) The term ``income'' means income from all sources of
each member of the household, as determined in accordance with
criteria prescribed by the Secretary, in consultation with the
Secretary of Agriculture, except that any amounts not actually
received by the family and any amounts which would be eligible
for exclusion under section 1613(a)(7) of the Social Security
Act (42 U.S.C. 1382b(a)(7)) or any deferred Department of
Veterans Affairs disability benefits that are received in a
lump sum amount or in prospective monthly amounts may not be
considered as income under this paragraph.
[(5) Adjusted income.--The term ``adjusted income'' means,
with respect to a family, the amount (as determined by the
public housing agency) of the income of the members of the
family residing in a dwelling unit or the persons on a lease,
after any income exclusions as follows:
[(A) Mandatory exclusions.-- In determining adjusted
income, a public housing agency shall exclude from the
annual income of a family the following amounts:
[(i) Elderly and disabled families.-- $400
for any elderly or disabled family.
[(ii) Medical expenses.-- The amount by which
3 percent of the annual family income is
exceeded by the sum of--
[(I) unreimbursed medical expenses of
any elderly family or disabled family;
[(II) unreimbursed medical expenses
of any family that is not covered under
subclause (I), except that this
subclause shall apply only to the
extent approved in appropriation Acts;
and
[(III) unreimbursed reasonable
attendant care and auxiliary apparatus
expenses for each handicapped member of
the family, to the extent necessary to
enable any member of such family
(including such handicapped member) to
be employed.
[(iii) Child care expenses.-- Any reasonable
child care expenses necessary to enable a
member of the family to be employed or to
further his or her education.
[(iv) Minors, students, and persons with
disabilities.-- $480 for each member of the
family residing in the household (other than
the head of the household or his or her spouse)
who is less than 18 years of age or is
attending school or vocational training on a
full-time basis, or who is 18 years of age or
older and is a person with disabilities.
[(v) Child support payments.-- Any payment
made by a member of the family for the support
and maintenance of any child who does not
reside in the household, except that the amount
excluded under this clause may not exceed $480
for each child for whom such payment is made;
except that this clause shall apply only to the
extent approved in appropriations Acts.
[(vi) Spousal support expenses.-- Any payment
made by a member of the family for the support
and maintenance of any spouse or former spouse
who does not reside in the household, except
that the amount excluded under this clause
shall not exceed the lesser of (I) the amount
that such family member has a legal obligation
to pay, or (II) $550 for each individual for
whom such payment is made; except that this
clause shall apply only to the extent approved
in appropriations Acts.
[(vii) Earned income of minors.-- The amount
of any earned income of a member of the family
who is not--
[(I) 18 years of age or older; and
[(II) the head of the household (or
the spouse of the head of the
household).
[(B) Permissive exclusions for public housing.-- In
determining adjusted income, a public housing agency
may, in the discretion of the agency, establish
exclusions from the annual income of a family residing
in a public housing dwelling unit. Such exclusions may
include the following amounts:
[(i) Excessive travel expenses.-- Excessive
travel expenses in an amount not to exceed $25
per family per week, for employment- or
education-related travel.
[(ii) Earned income.-- An amount of any
earned income of the family, established at the
discretion of the public housing agency, which
may be based on--
[(I) all earned income of the family,
[(II) the amount earned by particular
members of the family;
[(III) the amount earned by families
having certain characteristics; or
[(IV) the amount earned by families
or members during certain periods or
from certain sources.
[(iii) Others.-- Such other amounts for other
purposes, as the public housing agency may
establish.]
(4) Income.-- The term ``income'' means, with respect
to a family, income received from all sources by each
member of the household who is 18 years of age or older
or is the head of household or spouse of the head of
the household, plus unearned income by or on behalf of
each dependent who is less than 18 years of age, as
determined in accordance with criteria prescribed by
the Secretary, in consultation with the Secretary of
Agriculture, subject to the following requirements:
(A) Included amounts.-- Such term includes
recurring gifts and receipts, actual income
from assets, and profit or loss from a
business.
(B) Excluded amounts.-- Such term does not
include--
(i) any imputed return on assets,
except to the extent that net family
assets exceed $50,000, except that such
amount (as it may have been previously
adjusted) shall be adjusted for
inflation annually by 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
(II) in such amounts as the
Secretary may allow, for the
cost of room and board.
(D) Educational savings accounts.-- Income
shall be determined without regard to any
amounts in or from, or any benefits from, any
Coverdell education savings account under
section 530 of the Internal Revenue Code of
1986 or any qualified tuition program under
section 529 of such Code.
(E) Recordkeeping.-- The Secretary may not
require a public housing agency or owner to
maintain records of any amounts excluded from
income pursuant to this subparagraph.
(5) Adjusted income.-- The term ``adjusted income''
means, with respect to a family, the amount (as
determined by the public housing agency or owner) of
the income of the members of the family residing in a
dwelling unit or the persons on a lease, after any
deductions from income as follows:
(A) Elderly and disabled families.-- $525 in
the case of any family that is an elderly
family or a disabled family.
(B) Dependents.-- In the case of any family,
$525 for each member who--
(i) is less than 18 years of age or
attending school or vocational training
on a full-time basis; or
(ii) is a person who is 18 years of
age or older, resides in the household,
and is certified as disabled and unable
to work by the public housing agency of
jurisdiction.
(C) Child care.-- The amount, if any, that
exceeds 5 percent of annual family income that
is used to pay for unreimbursed child care
expenses, which shall include child care for
preschool-age children, for before- and after-
care for children in school, and for other
child care necessary to enable a member of the
family to be employed or further his or her
education.
(D) Health and medical expenses.-- The
amount, if any, by which 10 percent of annual
family income is exceeded by the sum of--
(i) in the case of any elderly or
disabled family, any unreimbursed
health and medical care expenses; and
(ii) any unreimbursed reasonable
attendant care and auxiliary apparatus
expenses for each handicapped member of
the family, if determined necessary by
the public housing agency or owner to
enable any member of such family to be
employed.
The Secretary shall, by regulation, provide
hardship 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) Permissive 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.
(6) Public housing agency.--
(A) In general.-- Except as provided in subparagraph
(B), the term ``public housing agency'' means any
State, county, municipality, or other governmental
entity or public body (or agency or instrumentality
thereof) which is authorized to engage in or assist in
the development or operation of public housing, or a
consortium of such entities or bodies as approved by
the Secretary.
(B) Section 8 program.-- For purposes of the program
for tenant-based assistance under section 8, such term
includes--
(i) a consortia of public housing agencies
that the Secretary determines has the capacity
and capability to administer a program for
assistance under such section in an efficient
manner;
(ii) any other public or private nonprofit
entity that, upon the effective date under
section 503(a) of the Quality Housing and Work
Responsibility Act of 1998, was administering
any program for tenant-based assistance under
section 8 of this Act (as in effect before the
effective date of such Act), pursuant to a
contract with the Secretary or a public housing
agency; and
(iii) with respect to any area in which no
public housing agency has been organized or
where the Secretary determines that a public
housing agency is unwilling or unable to
implement a program for tenant-based assistance
section 8, or is not performing effectively--
(I) the Secretary or another public
or private nonprofit entity that by
contract agrees to receive assistance
amounts under section 8 and enter into
housing assistance payments contracts
with owners and perform the other
functions of public housing agency
under section 8; or
(II) notwithstanding any provision of
State or local law, a public housing
agency for another area that contracts
with the Secretary to administer a
program for housing assistance under
section 8, without regard to any
otherwise applicable limitations on its
area of operation.
(7) The term ``State'' includes the several States, the
District of Columbia, the Commonwealth of Puerto Rico, the
territories and possessions of the United States, and the Trust
Territory of the Pacific Islands.
(8) The term ``Secretary'' means the Secretary of Housing and
Urban Development.
(9) Drug-related criminal activity.--The term ``drug-related
criminal activity'' means the illegal manufacture, sale,
distribution, use, or possession with intent to manufacture,
sell, distribute, or use, of a controlled substance (as such
term is defined in section 102 of the Controlled Substances
Act).
(10) Mixed-finance project.--The term ``mixed-finance
project'' means a public housing project that meets the
requirements of section 35.
(11) Public housing agency plan.--The term ``public housing
agency plan'' means the plan of a public housing agency
prepared in accordance with section 5A.
(12) Capital fund.--The term ``Capital Fund'' means the fund
established under section 9(d).
(13) Operating fund.--The term ``Operating Fund'' mean the
fund established under section 9(e).
(c) When used in reference to public housing:
(1) The term ``development'' means any or all undertakings
necessary for planning, land acquisition, demolition,
construction, or equipment, in connection with a low-income
housing project. The term ``development cost'' comprises the
costs incurred by a public housing agency in such undertakings
and their necessary financing (including the payment of
carrying charges), and in otherwise carrying out the
development of such project, but does not include the costs
associated with the demolition of or remediation of
environmental hazards associated with public housing units that
will not be replaced on the project site, or other
extraordinary site costs as determined by the Secretary.
Construction activity in connection with a low-income housing
project may be confined to the reconstruction, remodeling, or
repair of existing buildings.
(2) The term ``operation'' means any or all undertakings
appropriate for management, operation, services, maintenance,
security (including the cost of security personnel), or
financing in connection with a low-income housing project. The
term also means the financing of tenant programs and services
for families residing in low-income housing projects,
particularly where there is maximum feasible participation of
the tenants in the development and operation of such tenant
programs and services. As used in this paragraph, the term
``tenant programs and services'' includes the development and
maintenance of tenant organizations which participate in the
management of low-income housing projects; the training of
tenants to manage and operate such projects and the utilization
of their services in project management and operation;
counseling on household management, housekeeping, budgeting,
money management, child care, and similar matters; advice as to
resources for job training and placement, education, welfare,
health, and other community services; services which are
directly related to meeting tenant needs and providing a
wholesome living environment; and referral to appropriate
agencies in the community when necessary for the provision of
such services. To the maximum extent available and appropriate,
existing public and private agencies in the community shall be
used for the provision of such services.
(3) The term ``acquisition cost'' means the amount prudently
required to be expended by a public housing agency in acquiring
property for a low-income housing project.
[(d) Disallowance of Earned Income From Rent
Determinations.--
[(1) In general.-- Notwithstanding any other
provision of law, the rent payable under subsection (a)
by a family described in paragraph (3) of this
subsection may not be increased as a result of the
increased income due to such employment during the 12-
month period beginning on the date on which the
employment is commenced.
[(2) Phase-in of rent increases.-- Upon the
expiration of the 12-month period referred to in
paragraph (1), the rent payable by a family described
in paragraph (3) may be increased due to the continued
employment of the family member described in paragraph
(3)(B), except that during the 12-month period
beginning upon such expiration the amount of the
increase may not be greater than 50 percent of the
amount of the total rent increase that would be
applicable but for this paragraph.
[(3) Eligible families.-- A family described in this
paragraph is a family--
[(A) that--
[(i) occupies a dwelling unit in a
public housing project; or
[(ii) receives assistance under
section 8; and
[(B)(i) whose income increases as a result of
employment of a member of the family who was
previously unemployed for 1 or more years;
[(ii) whose earned income increases during
the participation of a family member in any
family self-sufficiency or other job training
program; or
[(iii) who is or was, within 6 months,
assisted under any State program for temporary
assistance for needy families funded under part
A of title IV of the Social Security Act and
whose earned income increases.
[(4) Applicability.-- This subsection and subsection
(e) shall apply beginning upon October 1, 1999, except
that this subsection and subsection (e) shall apply
with respect to any family described in paragraph
3(A)(ii) only to the extent provided in advance in
appropriations Acts.
[(e) Individual Savings Accounts.--
[(1) In general.-- In lieu of a disallowance of
earned income under subsection (d), upon the request of
a family that qualifies under subsection (d), a public
housing agency may establish an individual savings
account in accordance with this subsection for that
family.
[(2) Deposits to account.-- The public housing agency
shall deposit in any savings account established under
this subsection an amount equal to the total amount
that otherwise would be applied to the family's rent
payment under subsection (a) as a result of employment.
[(3) Withdrawal from account.-- Amounts deposited in
a savings account established under this subsection may
only be withdrawn by the family for the purpose of--
[(A) purchasing a home;
[(B) paying education costs of family
members;
[(C) moving out of public or assisted
housing; or
[(D) paying any other expense authorized by
the public housing agency for the purpose of
promoting the economic self-sufficiency of
residents of public and assisted housing.]
[(f)] (d) Availability of Income Matching Information.--
(1) Disclosure to pha.-- A public housing agency, or
the owner responsible for determining the participant's
eligibility or level of benefits, shall require any
family described in paragraph (2) who receives
information regarding income, earnings, wages, or
unemployment compensation from the Department of
Housing and Urban Development pursuant to income
verification procedures of the Department to disclose
such information, upon receipt of the information, to
the public housing agency that owns or operates the
public housing dwelling unit in which such family
resides or that provides the housing assistance under
this Act on behalf of such family, as applicable, or to
the owner responsible for determining the participant's
eligibility or level of benefits.
(2) Families covered.-- A family described in this
paragraph is a family that resides in a dwelling unit--
(A) that is a public housing dwelling unit;
(B) for which tenant-based assistance is
provided under section 8, or
(C) for which project-based assistance is provided
under section 8, section 202, or section 811.
* * * * * * *
lower income housing assistance
Sec. 8. (a) For the purpose of aiding lower-income families
in obtaining a decent place to live and of promoting
economically mixed housing, assistance payments may be made
with respect to existing housing in accordance with the
provisions of this section.
(b) Other Existing Housing Programs.--(1) In general.-- The
Secretary is authorized to enter into annual contributions
contracts with public housing agencies pursuant to which such
agencies may enter into contracts to make assistance payments
to owners of existing dwelling units in accordance with this
section. In areas where no public housing agency has been
organized or where the Secretary determines that a public
housing agency is unable to implement the provisions of this
section, the Secretary is authorized to enter into such
contracts and to perform the other functions assigned to a
public housing agency by this section.
(2) The Secretary is authorized to enter into annual
contributions contracts with public housing agencies for the
purpose of replacing public housing transferred in accordance
with title III of this Act. Each contract entered into under
this subsection shall be for a term of not more than 60 months.
(c)(1) (A) An assistance contract entered into pursuant to
this section shall establish the maximum monthly rent
(including utilities and all maintenance and management
charges) which the owner is entitled to receive for each
dwelling unit with respect to which such assistance payments
are to be made. The maximum monthly rent shall not exceed by
more than 10 per centum the fair market rental established by
the Secretary periodically but not less than annually for
existing or newly constructed rental dwelling units of various
sizes and types in the market area suitable for occupancy by
persons assisted under this section, except that the maximum
monthly rent may exceed the fair market rental (A) by more than
10 but not more than 20 per centum where the Secretary
determines that special circumstances warrant such higher
maximum rent or that such higher rent is necessary to the
implementation of a housing strategy as defined in section 105
of the Cranston-Gonzalez National Affordable Housing Act, or
(B) by such higher amount as may be requested by a tenant and
approved by the public housing agency in accordance with
paragraph (3)(B). In the case of newly constructed and
substantially rehabilitated units, the exception in the
preceding sentence shall not apply to more than 20 per centum
of the total amount of authority to enter into annual
contributions contracts for such units which is allocated to an
area and obligated with respect to any fiscal year beginning on
or after October 1, 1980. [Proposed fair market rentals for an
area shall be published in the Federal Register with reasonable
time for public comment, and shall become effective upon the
date of publication in final form in the Federal Register.]
Each fair market rental in effect under this subsection shall
be adjusted to be effective on October 1 of each year to
reflect changes, based on the most recent available data
trended so the rentals will be current for the year to which
they apply, of rents for existing or newly constructed rental
dwelling units, as the case may be, of various sizes and types
in the market area suitable for occupancy by persons assisted
under this section. Notwithstanding any other provision of this
section, after the date of enactment of the Housing and
Community Development Act of 1977, the Secretary shall prohibit
high-rise elevator projects for families with children unless
there is no practical alternative. [The Secretary shall
establish separate fair market rentals under this paragraph for
Westchester County in the State of New York.][The Secretary
shall also establish separate fair market rentals under this
paragraph for Monroe County in the Commonwealth of
Pennsylvania. In establishing fair market rentals for the
remaining portion of the market area in which Monroe County is
located, the Secretary shall establish the fair market rentals
as if such portion included Monroe County.] If units assisted
under this section are exempt from local rent control while
they are so assisted or otherwise, the maximum monthly rent for
such units shall be reasonable in comparison with other units
in the market area that are exempt from local rent control.
(B) Fair market rentals for an area shall be published not
less than annually by the Secretary on the site of the
Department 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.
(2)(A) The assistance contract shall provide for adjustment
annually or more frequently in the maximum monthly rents for
units covered by the contract to reflect changes in the fair
market rentals established in the housing area for similar
types and sizes of dwelling units or, if the Secretary
determines, on the basis of a reasonable formula. However,
where the maximum monthly rent, for a unit in a new
construction, substantial rehabilitation, or moderate
rehabilitation project, to be adjusted using an annual
adjustment factor exceeds the fair market rental for an
existing dwelling unit in the market area, the Secretary shall
adjust the rent only to the extent that the owner demonstrates
that the adjusted rent would not exceed the rent for an
unassisted unit of similar quality, type, and age in the same
market area, as determined by the Secretary. The immediately
foregoing sentence shall be effective only during fiscal year
1995, fiscal year 1996 prior to April 26, 1996, and fiscal
years 1997 and 1998, and during fiscal year 1999 and
thereafter. Except for assistance under the certificate
program, for any unit occupied by the same family at the time
of the last annual rental adjustment, where the assistance
contract provides for the adjustment of the maximum monthly
rent by applying an annual adjustment factor and where the rent
for a unit is otherwise eligible for an adjustment based on the
full amount of the factor, 0.01 shall be subtracted from the
amount of the factor, except that the factor shall not be
reduced to less than 1.0. In the case of assistance under the
certificate program, 0.01 shall be subtracted from the amount
of the annual adjustment factor (except that the factor shall
not be reduced to less than 1.0), and the adjusted rent shall
not exceed the rent for a comparable unassisted unit of similar
quality, type, and age in the market area. The immediately
foregoing two sentences shall be effective only during fiscal
year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal
years 1997 and 1998, and during fiscal year 1999 and
thereafter. In establishing annual adjustment factors for units
in new construction and substantial rehabilitation projects,
the Secretary shall take into account the fact that debt
service is a fixed expense. The immediately foregoing sentence
shall be effective only during fiscal year 1998.
(B) The contract shall further provide for the Secretary to
make additional adjustments in the maximum monthly rent for
units under contract to the extent he determines such
adjustments are necessary to reflect increases in the actual
and necessary expenses of owning and maintaining the units
which have resulted from substantial general increases in real
property taxes, utility rates, or similar costs which are not
adequately compensated for by the adjustment in the maximum
monthly rent authorized by subparagraph (A). The Secretary
shall make additional adjustments in the maximum monthly rent
for units under contract (subject to the availability of
appropriations for contract amendments) to the extent the
Secretary determines such adjustments are necessary to reflect
increases in the actual and necessary expenses of owning and
maintaining the units that have resulted from the expiration of
a real property tax exemption. Where the Secretary determines
that a project assisted under this section is located in a
community where drug-related criminal activity is generally
prevalent and the project's operating, maintenance, and capital
repair expenses have been substantially increased primarily as
a result of the prevalence of such drug-related activity, the
Secretary may (at the discretion of the Secretary and subject
to the availability of appropriations for contract amendments
for this purpose), on a project by project basis, provide
adjustments to the maximum monthly rents, to a level no greater
than 120 percent of the project rents, to cover the costs of
maintenance, security, capital repairs, and reserves required
for the owner to carry out a strategy acceptable to the
Secretary for addressing the problem of drug-related criminal
activity. Any rent comparability standard required under this
paragraph may be waived by the Secretary to so implement the
preceding sentence. The Secretary may (at the discretion of the
Secretary and subject to the availability of appropriations for
contract amendments), on a project by project basis for
projects receiving project-based assistance, provide
adjustments to the maximum monthly rents to cover the costs of
evaluating and reducing lead-based paint hazards, as defined in
section 1004 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992.
(C) Adjustments in the maximum rents under subparagraphs (A)
and (B) shall not result in material differences between the
rents charged for assisted units and unassisted units of
similar quality, type, and age in the same market area, as
determined by the Secretary. In implementing the limitation
established under the preceding sentence, the Secretary shall
establish regulations for conducting comparability studies for
projects where the Secretary has reason to believe that the
application of the formula adjustments under subparagraph (A)
would result in such material differences. The Secretary shall
conduct such studies upon the request of any owner of any
project, or as the Secretary determines to be appropriate by
establishing, to the extent practicable, a modified annual
adjustment factor for such market area, as the Secretary shall
designate, that is geographically smaller than the applicable
housing area used for the establishment of the annual
adjustment factor under subparagraph (A). The Secretary shall
establish such modified annual adjustment factor on the basis
of the results of a study conducted by the Secretary of the
rents charged, and any change in such rents over the previous
year, for assisted units and unassisted units of similar
quality, type, and age in the smaller market area. Where the
Secretary determines that such modified annual adjustment
factor cannot be established or that such factor when applied
to a particular project would result in material differences
between the rents charged for assisted units and unassisted
units of similar quality, type, and age in the same market
area, the Secretary may apply an alternative methodology for
conducting comparability studies in order to establish rents
that are not materially different from rents charged for
comparable unassisted units. If the Secretary or appropriate
State agency does not complete and submit to the project owner
a comparability study not later than 60 days before the
anniversary date of the assistance contract under this section,
the automatic annual adjustment factor shall be applied. The
Secretary may not reduce the contract rents in effect on or
after April 15, 1987, for newly constructed, substantially
rehabilitated, or moderately rehabilitated projects assisted
under this section (including projects assisted under this
section as in effect prior to November 30, 1983), unless the
project has been refinanced in a manner that reduces the
periodic payments of the owner. Any maximum monthly rent that
has been reduced by the Secretary after April 14, 1987, and
prior to the enactment of this sentence shall be restored to
the maximum monthly rent in effect on April 15, 1987. For any
project which has had its maximum monthly rents reduced after
April 14, 1987, the Secretary shall make assistance payments
(from amounts reserved for the original contract) to the owner
of such project in an amount equal to the difference between
the maximum monthly rents in effect on April 15, 1987, and the
reduced maximum monthly rents, multiplied by the number of
months that the reduced maximum monthly rents were in effect.
(3) The amount of the monthly assistance payment with respect
to any dwelling unit shall be the difference between the
maximum monthly rent which the contract provides that the owner
is to receive for the unit and the rent the family is required
to pay under section 3(a) of this Act. [Reviews of family
income shall be made no less frequently than annually.]
(4) The assistance contract shall provide that assistance
payments may be made only with respect to a dwelling unit under
lease for occupancy by a family determined to be a lower income
family at the time it initially occupied such dwelling unit,
except that such payments may be made with respect to
unoccupied units for a period not exceeding sixty days (A) in
the event that a family vacates a dwelling unit before the
expiration date of the lease for occupancy or (B) where a good
faith effort is being made to fill an unoccupied unit, and,
subject to the provisions of the following sentence, such
payments may be made, in the case of a newly constructed or
substantially rehabilitated project, after such sixty-day
period in an amount equal to the debt service attributable to
such an unoccupied dwelling unit for a period not to exceed one
year, if a good faith effort is being made to fill the unit and
the unit provides decent, safe, and sanitary housing. No such
payment may be made after such sixty-day period if the
Secretary determines that the dwelling unit is in a project
which provides the owner with revenues exceeding the costs
incurred by such owner with respect to such project.
(5) The Secretary shall take such steps as may be necessary,
including the making of contracts for assistance payments in
amounts in excess of the amounts required at the time of the
initial renting of dwelling units, the reservation of annual
contributions authority for the purpose of amending housing
assistance contracts, or the allocation of a portion of new
authorizations for the purpose of amending housing assistance
contracts, to assure that assistance payments are increased on
a timely basis to cover increases in maximum monthly rents or
decreases in family incomes.
(8)(A) Not less than one year before termination of any
contract under which assistance payments are received under
this section, other than a contract for tenant-based assistance
under this section, an owner shall provide written notice to
the Secretary and the tenants involved of the proposed
termination. The notice shall also include a statement that, if
the Congress makes funds available, the owner and the Secretary
may agree to a renewal of the contract, thus avoiding
termination, and that in the event of termination the
Department of Housing and Urban Development will provide
tenant-based rental assistance to all eligible residents,
enabling them to choose the place they wish to rent, which is
likely to include the dwelling unit in which they currently
reside. Any contract covered by this paragraph that is renewed
may be renewed for a period of up to 1 year or any number or
years, with payments subject to the availability of
appropriations for any year.
(B) In the event the owner does not provide the notice
required, the owner may not evict the tenants or increase the
tenants' rent payment until such time as the owner has provided
the notice and 1 year has elapsed. The Secretary may allow the
owner to renew the terminating contract for a period of time
sufficient to give tenants 1 year of advance notice under such
terms and conditions as the Secretary may require.
(C) Any notice under this paragraph shall also comply with
any additional requirements established by the Secretary.
(D) For purposes of this paragraph, the term ``termination''
means the expiration of the assistance contract or an owner's
refusal to renew the assistance contract, and such term shall
include termination of the contract for business reasons.
(d)(1) Contracts to make assistance payments entered into by
a public housing agency with an owner of existing housing units
shall provide (with respect to any unit) that--
(A) the selection of tenants shall be the
function of the owner, subject to the annual
contributions contract between the Secretary
and the agency, except that with respect to the
certificate and moderate rehabilitation
programs only, for the purpose of selecting
families to be assisted, the public housing
agency may establish local preferences,
consistent with the public housing agency plan
submitted under section 5A (42 U.S.C. 1437c-1)
by the public housing agency;
(B)(i) the lease between the tenant and the owner
shall be for at least one year or the term of such
contract, whichever is shorter, and shall contain other
terms and conditions specified by the Secretary;
(ii) during the term of the lease, the owner shall
not terminate the tenancy except for serious or
repeated violation of the terms and conditions of the
lease, for violation of applicable Federal, State, or
local law, or for other good cause;
(iii) during the term of the lease, any criminal
activity that threatens the health, safety, or right to
peaceful enjoyment of the premises by other tenants,
any criminal activity that threatens the health,
safety, or right to peaceful enjoyment of their
residences by persons residing in the immediate
vicinity of the premises, or any drug-related criminal
activity on or near such premises, engaged in by a
tenant of any unit, any member of the tenant's
household, or any guest or other person under the
tenant's control, shall be cause for termination of
tenancy;
(iv) any termination of tenancy shall be preceded by
the owner's provision of written notice to the tenant
specifying the grounds for such action; and
(v) it shall be cause for termination of the
tenancy of a tenant if such tenant--
(I) is fleeing to avoid prosecution,
or custody or confinement after
conviction, under the laws of the place
from which the individual flees, for a
crime, or attempt to commit a crime,
which is a felony under the laws of the
place from which the individual flees,
or which, in the case of the State of
New Jersey, is a high misdemeanor under
the laws of such State; or
(II) is violating a condition of
probation or parole imposed under
Federal or State law;
(C) maintenance and replacement (including
redecoration) shall be in accordance with the standard
practice for the building concerned as established by
the owner and agreed to by the agency; and
(D) the agency and the owner shall carry out such
other appropriate terms and conditions as may be
mutually agreed to by them.
(2)(A) Each contract for an existing structure entered into
under this section shall be for a term of not less than one
month nor more than one hundred and eighty months. The
Secretary shall permit public housing agencies to enter into
contracts for assistance payments of less than 12 months
duration in order to avoid disruption in assistance to eligible
families if the annual contributions contract is within 1 year
of its expiration date.
(B)(i) In determining the amount of assistance provided under
an assistance contract for project-based assistance under this
paragraph or a contract for assistance for housing constructed
or substantially rehabilitated pursuant to assistance provided
under section 8(b)(2) of this Act (as such section existed
immediately before October 1, 1983), the Secretary may consider
and annually adjust, with respect to such project, for the cost
of employing or otherwise retaining the services of one or more
service coordinators under section 661 of the Housing and
Community Development Act of 1992 to coordinate the provision
of any services within the project for residents of the project
who are elderly or disabled families.
(ii) The budget authority available under section 5(c) for
assistance under this section is authorized to be increased by
$15,000,000 on or after October 1, 1992, and by $15,000,000 on
or after October 1, 1993. Amounts made available under this
subparagraph shall be used to provide additional amounts under
annual contributions contracts for assistance under this
section which shall be made available through assistance
contracts only for the purpose of providing service
coordinators under clause (i) for projects receiving project-
based assistance under this paragraph and to provide additional
amounts under contracts for assistance for projects constructed
or substantially rehabilitated pursuant to assistance provided
under section 8(b)(2) of this Act (as such section existed
immediately before October 1, 1983) only for such purpose.
(C) An assistance contract for project-based
assistance under this paragraph shall provide that the
owner shall ensure and maintain compliance with
subtitle C of title VI of the Housing and Community
Development Act of 1992 and any regulations issued
under such subtitle.
(D) An owner of a covered section 8 housing project
(as such term is defined in section 659 of the Housing
and Community Development Act of 1992) may give
preference for occupancy of dwelling units in the
project, and reserve units for occupancy, in accordance
with subtitle D of title VI of the Housing and
Community Development Act of 1992.
(3) Notwithstanding any other provision of law, with the
approval of the Secretary the public housing agency
administering a contract under this section with respect to
existing housing units may exercise all management and
maintenance responsibilities with respect to those units
pursuant to a contract between such agency and the owner of
such units.
(4) A public housing agency that serves more than one unit of
general local government may, at the discretion of the agency,
in allocating assistance under this section, give priority to
disabled families that are not elderly families.
(5) Calculation of limit.-- Any contract entered into
under section 514 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 shall be excluded
in computing the limit on project-based assistance
under this subsection.
(6) Treatment of common areas.--The Secretary may not provide
any assistance amounts pursuant to an existing contract for
project-based assistance under this section for a housing
project and may not enter into a new or renewal contract for
such assistance for a project unless the owner of the project
provides consent, to such local law enforcement agencies as the
Secretary determines appropriate, for law enforcement officers
of such agencies to enter common areas of the project at any
time and without advance notice upon a determination of
probable cause by such officers that criminal activity is
taking place in such areas.
(e)(1) Nothing in this Act shall be deemed to prohibit an
owner from pledging, or offering as security for any loan or
obligation, a contract for assistance payments entered into
pursuant to this section: Provided, That such security is in
connection with a project constructed or rehabilitated pursuant
to authority granted in this section, and the terms of the
financing or any refinancing have been approved by the
Secretary.
(f) As used in this section--
(1) the term ``owner'' means any private person or
entity, including a cooperative, an agency of the
Federal Government, or a public housing agency, having
the legal right to lease or sublease dwelling units;
(2) the terms ``rent'' or ``rental'' mean, with
respect to members of a cooperative, the charges under
the occupancy agreements between such members and the
cooperative;
(3) the term ``debt service'' means the required
payments for principal and interest made with respect
to a mortgage secured by housing assisted under this
Act;
(4) the term ``participating jurisdiction'' means a
State or unit of general local government designated by
the Secretary to be a participating jurisdiction under
title II of the Cranston-Gonzalez National Affordable
Housing Act;
(5) the term ``drug-related criminal activity'' means
the illegal manufacture, sale, distribution, use, or
possession with intent to manufacture, sell,
distribute, or use, of a controlled substance (as
defined in section 102 of the Controlled Substances Act
(21 U.S.C. 802));
(6) the term ``project-based assistance'' means
rental assistance under subsection (b) that is attached
to the structure pursuant to subsection (d)(2) or
(o)(13); and
(7) the term ``tenant-based assistance'' means rental
assistance under subsection (o) that is not project-
based assistance and that provides for the eligible
family to select suitable housing and to move to other
suitable housing.
(g) Notwithstanding any other provision of this Act,
assistance payments under this section may be provided, in
accordance with regulations prescribed by the Secretary, with
respect to some or all of the units in any project approved
pursuant to section 202 of the Housing Act of 1959.
(h) Sections 5(e) and 6 and any other provisions of this Act
which are inconsistent with the provisions of this section
shall not apply to contracts for assistance entered into under
this section.
(i) The Secretary may not consider the receipt by a public
housing agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing Act, or the
amount received, in approving assistance for the agency under
this section or determining the amount of such assistance to be
provided.
(k) The Secretary shall establish procedures which are
appropriate and necessary to assure that income data provided
to public housing agencies and owners by families applying for
or receiving assistance under this section is complete and
accurate. In establishing such procedures, the Secretary shall
randomly, regularly, and periodically select a sample of
families to authorize the Secretary to obtain information on
these families for the purpose of income verification, or to
allow those families to provide such information themselves.
Such information may include, but is not limited to, data
concerning unemployment compensation and Federal income
taxation and data relating to benefits made available under the
Social Security Act, the Food and Nutrition Act of 2008, or
title 38, United States Code. Any such information received
pursuant to this subsection shall remain confidential and shall
be used only for the purpose of verifying incomes in order to
determine eligibility of families for benefits (and the amount
of such benefits, if any) under this section.
(o) Voucher Program.--
(1) Authority.--
(A) In general.-- The Secretary may provide
assistance to public housing agencies for
tenant-based assistance using a payment
standard established in accordance with
subparagraph (B). The payment standard shall be
used to determine the monthly assistance that
may be paid for any family, as provided in
paragraph (2).
(B) Establishment of payment standard.--
Except as provided under subparagraph (D), the
payment standard for each size of dwelling unit
in a market area shall not exceed 110 percent
of the fair market rental established under
subsection (c) for the same size of dwelling
unit in the same market area and shall be not
less than 90 percent of that fair market
rental, 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) Set-aside.-- The Secretary may set aside
not more than 5 percent of the budget authority
made available for assistance under this
subsection as an adjustment pool. The Secretary
shall use amounts in the adjustment pool to
make adjusted payments to public housing
agencies under subparagraph (A), to ensure
continued affordability, if the Secretary
determines that additional assistance for such
purpose is necessary, based on documentation
submitted by a public housing agency.
(D) Approval.-- The Secretary may require a
public housing agency to submit the payment
standard of the public housing agency to the
Secretary for approval, if the payment standard
is less than 90 percent of the fair market
rental or exceeds 110 percent of the fair
market rental, 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 .
(E) Review.-- The Secretary--
(i) shall monitor rent burdens and
review any payment standard that
results in a significant percentage of
the families occupying units of any
size paying more than 30 percent of
adjusted income for rent; and
(ii) may require a public housing
agency to modify the payment standard
of the public housing agency based on
the results of that review.
(2) Amount of monthly assistance payment.-- Subject
to the requirement under section 3(a)(3) (relating to
minimum rental amount), the monthly assistance payment
for a family receiving assistance under this subsection
shall be determined as follows:
(A) Tenant-based assistance; rent not
exceeding payment standard.-- For a family
receiving tenant-based assistance, if the rent
for the family (including the amount allowed
for tenant-paid utilities) does not exceed the
applicable payment standard established under
paragraph (1), the monthly assistance payment
for the family shall be equal to the amount by
which the rent (including the amount allowed
for tenant-paid utilities) exceeds the greatest
of the following amounts, rounded to the
nearest dollar:
(i) 30 percent of the monthly
adjusted income of the family.
(ii) 10 percent of the monthly income
of the family.
(iii) If the family is receiving
payments for welfare assistance from a
public agency and a part of those
payments, adjusted in accordance with
the actual housing costs of the family,
is specifically designated by that
agency to meet the housing costs of the
family, the portion of those payments
that is so designated.
(B) Tenant-based assistance; rent exceeding
payment standard.-- For a family receiving
tenant-based assistance, if the rent for the
family (including the amount allowed for
tenant-paid utilities) exceeds the applicable
payment standard established under paragraph
(1), the monthly assistance payment for the
family shall be equal to the amount by which
the applicable payment standard exceeds the
greatest of amounts under clauses (i), (ii),
and (iii) of subparagraph (A).
(C) Families receiving project-based
assistance.-- For a family receiving project-
based assistance, the rent that the family is
required to pay shall be determined in
accordance with section 3(a)(1), and the amount
of the housing assistance payment shall be
determined in accordance with subsection (c)(3)
of this section.
(D) Utility allowance.--
(i) General.-- In determining the
monthly assistance payment for a family
under subparagraphs (A) and (B), the
amount allowed for tenant-paid
utilities shall not exceed the
appropriate utility allowance for the
family unit size as determined by the
public housing agency regardless of the
size of the dwelling unit leased by the
family.
(ii) Exception for families in
including persons with disabilities.--
Notwithstanding subparagraph (A), upon
request by a family that includes a
person with disabilities, the public
housing agency shall approve a utility
allowance that is higher than the
applicable amount on the utility
allowance schedule if a higher utility
allowance is needed as a reasonable
accommodation to make the program
accessible to and usable by the family
member with a disability.
(3) 40 percent limit.-- At the time a family
initially receives tenant-based assistance under this
section with respect to any dwelling unit, the total
amount that a family may be required to pay for rent
may not exceed 40 percent of the monthly adjusted
income of the family.
(4) Eligible families.-- To be eligible to receive
assistance under this subsection, a family shall, at
the time a family initially receives assistance under
this subsection, be a low-income family that is--
(A) a very low-income family;
(B) a family previously assisted under this
title;
(C) a low-income family that meets
eligibility criteria specified by the public
housing agency;
(D) a family that qualifies to receive a
voucher in connection with a homeownership
program approved under title IV of the
Cranston-Gonzalez National Affordable Housing
Act; or
(E) a family that qualifies to receive a
voucher under section 223 or 226 of the Low-
Income Housing Preservation and Resident
Homeownership Act of 1990.
(5) [Annual review] Reviews of family income.--
(A) In general.-- Reviews of family incomes
for purposes of this section shall be subject
to [the provisions of] paragraphs (1), (6), and
(7) of section 3(a) and to section 904 of the
Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 [and shall be conducted
upon the initial provision of housing
assistance for the family and thereafter not
less than annually.].
(B) Procedures.-- Each public housing agency
administering assistance under this subsection
shall establish procedures that are appropriate
and necessary to ensure that income data
provided to the agency and owners by families
applying for or receiving assistance from the
agency is complete and accurate. [Each public
housing agency shall, not less frequently than
annually, conduct a review of the family income
of each family receiving assistance under this
subsection.]
(6) Selection of families and disapproval of
owners.--
(A) Preferences.--
(i) Authority to establish.-- Each
public housing agency may establish a
system for making tenant-based
assistance under this subsection
available on behalf of eligible
families that provides preference for
such assistance to eligible families
having certain characteristics, which
may include a preference for families
residing in public housing who are
victims of a crime of violence (as such
term is defined in section 16 of title
18, United States Code) that has been
reported to an appropriate law
enforcement agency.
(ii) Content.-- Each system of
preferences established pursuant to
this subparagraph shall be based upon
local housing needs and priorities, as
determined by the public housing agency
using generally accepted data sources,
including any information obtained
pursuant to an opportunity for public
comment as provided under section 5A(f)
and under the requirements applicable
to the comprehensive housing
affordability strategy for the relevant
jurisdiction.
(B) Selection of tenants.-- Each housing
assistance payment contract entered into by the
public housing agency and the owner of a
dwelling unit) shall provide that the screening
and selection of families for those units shall
be the function of the owner. In addition, the
public housing agency may elect to screen
applicants for the program in accordance with
such requirements as the Secretary may
establish.
(C) PHA disapproval of owners.-- In addition
to other grounds authorized by the Secretary, a
public housing agency may elect not to enter
into a housing assistance payments contract
under this subsection with an owner who
refuses, or has a history of refusing, to take
action to terminate tenancy for activity
engaged in by the tenant, any member of the
tenant's household, any guest, or any other
person under the control of any member of the
household that--
(i) threatens the health or safety
of, or right to peaceful enjoyment of
the premises by, other tenants or
employees of the public housing agency,
owner, or other manager of the housing;
(ii) threatens the health or safety
of, or right to peaceful enjoyment of
the residences by, persons residing in
the immediate vicinity of the premises;
or
(iii) is drug-related or violent
criminal activity.
(7) Leases and tenancy.-- Each housing assistance
payment contract entered into by the public housing
agency and the owner of a dwelling unit--
(A) shall provide that the lease between the
tenant and the owner shall be for a term of not
less than 1 year, except that the public
housing agency may approve a shorter term for
an initial lease between the tenant and the
dwelling unit owner if the public housing
agency determines that such shorter term would
improve housing opportunities for the tenant
and if such shorter term is considered to be a
prevailing local market practice;
(B) shall provide that the dwelling unit
owner shall offer leases to tenants assisted
under this subsection that--
(i) are in a standard form used in
the locality by the dwelling unit
owner; and
(ii) contain terms and conditions
that--
(I) are consistent with State
and local law; and
(II) apply generally to
tenants in the property who are
not assisted under this
section;
(C) shall provide that during the term of the
lease, the owner shall not terminate the
tenancy except for serious or repeated
violation of the terms and conditions of the
lease, for violation of applicable Federal,
State, or local law, or for other good cause,
and in the case of an owner who is an immediate
successor in interest pursuant to foreclosure
during the term of the lease vacating the
property prior to sale shall not constitute
other good cause, except that the owner may
terminate the tenancy effective on the date of
transfer of the unit to the owner if the
owner--
(i) will occupy the unit as a primary
residence; and
(ii) has provided the tenant a notice
to vacate at least 90 days before the
effective date of such notice.;
(D) shall provide that during the term of the
lease, any criminal activity that threatens the
health, safety, or right to peaceful enjoyment
of the premises by other tenants, any criminal
activity that threatens the health, safety, or
right to peaceful enjoyment of their residences
by persons residing in the immediate vicinity
of the premises, or any violent or drug-related
criminal activity on or near such premises,
engaged in by a tenant of any unit, any member
of the tenant's household, or any guest or
other person under the tenant's control, shall
be cause for termination of tenancy;
(E) shall provide that any termination of
tenancy under this subsection shall be preceded
by the provision of written notice by the owner
to the tenant specifying the grounds for that
action, and any relief shall be consistent with
applicable State and local law; and
(F) may include any addenda required by the
Secretary to set forth the provisions of this
subsection. In the case of any foreclosure on
any federally-related mortgage loan (as that
term is defined in section 3 of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C.
2602)) or on any residential real property in
which a recipient of assistance under this
subsection resides, the immediate successor in
interest in such property pursuant to the
foreclosure shall assume such interest subject
to the lease between the prior owner and the
tenant and to the housing assistance payments
contract between the prior owner and the public
housing agency for the occupied unit, except
that this provision and the provisions related
to foreclosure in subparagraph (C) shall not
shall not affect any State or local law that
provides longer time periods or other
additional protections for tenants.
(8) Inspection of units by pha's.--
[(A) In general.-- Except as provided in
paragraph (11), for each dwelling unit for
which a housing assistance payment contract is
established under this subsection, the public
housing agency shall inspect the unit before
any assistance payment is made to determine
whether the dwelling unit meets the housing
quality standards under subparagraph (B).]
(A) Initial inspection.--
(i) In general.-- For each dwelling
unit for which a housing assistance
payment contract is established under
this subsection, the public housing
agency (or other entity pursuant to
paragraph (11)) shall inspect the unit
before any assistance payment is made
to determine whether the dwelling unit
meets the housing quality standards
under subparagraph (B), except as
provided in clause (ii) or (iii) of
this subparagraph.
(ii) Correction of non-life-
threatening 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 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.
(iii) Use 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 subparagraph (B). This clause may
not be construed to exempt any dwelling
unit from compliance with the
requirements of subparagraph (D).
(B) Housing quality standards.-- The housing
quality standards under this subparagraph are
standards for safe and habitable housing
established--
(i) by the Secretary for purposes of
this subsection; or
(ii) by local housing codes or by
codes adopted by public housing
agencies that--
(I) meet or exceed housing
quality standards, except that
the Secretary may waive the
requirement under this
subclause to significantly
increase access to affordable
housing and to expand housing
opportunities for families
assisted under this subsection,
except where such waiver could
adversely affect the health or
safety of families assisted
under this subsection; and
(II) do not severely restrict
housing choice
(C) Inspection.-- The determination required
under subparagraph (A) shall be made by the
public housing agency (or other entity, as
provided in paragraph (11)) pursuant to an
inspection of the dwelling unit conducted
before any assistance payment is made for the
unit. Inspections of dwelling units under this
subparagraph shall be made before the
expiration of the 15-day period beginning upon
a request by the resident or landlord to the
public housing agency or, in the case of any
public housing agency that provides assistance
under this subsection on behalf of more than
1250 families, before the expiration of a
reasonable period beginning upon such request.
The performance of the agency in meeting the
15-day inspection deadline shall be taken into
consideration in assessing the performance of
the agency.
(D) Biennial inspections.--
(i) Requirement.-- Each public
housing agency providing assistance
under this subsection (or other entity,
as provided in paragraph (11)) shall,
for each assisted dwelling unit, make
inspections not less often than
biennially during the term of the
housing assistance payments contract
for the unit to determine whether the
unit is maintained in accordance with
the requirements under subparagraph
(A).
(ii) Use of alternative inspection
method.-- The requirements under clause
(i) may be complied with by use of
inspections that qualify as an
alternative inspection method pursuant
to subparagraph (E).
(iii) Records.-- The public housing
agency (or other entity) shall retain
the records of the inspection for a
reasonable time, as determined by the
Secretary, and shall make the records
available upon request to the
Secretary, the Inspector General for
the Department of Housing and Urban
Development, and any auditor conducting
an audit under section 5(h).
(iv) Mixed-finance properties.-- The
Secretary may adjust the frequency of
inspections for mixed-finance
properties assisted with vouchers under
paragraph (13) to facilitate the use of
the alternative inspections in
subparagraph (E).
(E) Alternative inspection method.-- An
inspection of a property shall qualify as an
alternative inspection method for purposes of
this subparagraph if--
(i) the inspection was conducted
pursuant to requirements under a
Federal, State, or local housing
program (including the Home investment
partnership program under title II of
the Cranston-Gonzalez National
Affordable Housing Act and the low-
income housing tax credit program under
section 42 of the Internal Revenue Code
of 1986); and
(ii) pursuant to such inspection, the
property was determined to meet the
standards or requirements regarding
housing quality or safety applicable to
properties assisted under such program,
and, if a non-Federal standard or
requirement was used, the public
housing agency has certified to the
Secretary that such standard or
requirement provides the same (or
greater) protection to occupants of
dwelling units meeting such standard or
requirement as would the housing
quality standards under subparagraph
(B).
(F) Interim inspections.-- Upon notification
to the public housing agency, by a family (on
whose behalf tenant-based rental assistance is
provided under this subsection) or by a
government official, that the dwelling unit for
which such assistance is provided does not
comply with the housing quality standards under
subparagraph (B), the public housing agency
shall inspect the dwelling unit--
(i) in the case of any condition that
is life-threatening, within 24 hours
after the agency's receipt of such
notification, unless waived by the
Secretary in extraordinary
circumstances; and
(ii) in the case of any condition
that is not life-threatening, within a
reasonable time frame, as determined by
the Secretary.
(G) Enforcement of housing quality
standards.--
(i) Determination of noncompliance.--
A dwelling unit that is covered by a
housing assistance payments contract
under this subsection shall be
considered, for purposes of
subparagraphs (D) and (F), to be in
noncompliance with the housing quality
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
(III) the failure to comply
is not corrected--
(aa) in the case of
any such failure that
is a result of life-
threatening conditions,
within 24 hours after
such notice has been
provided; and
(bb) in the case of
any such failure that
is a result of non-
life-threatening
conditions, within 30
days after such notice
has been provided or
such other reasonable
longer period as the
public housing agency
may establish.
(ii) Withholding of assistance
amounts during correction.-- The public
housing agency may withhold assistance
amounts under this subsection with
respect to a dwelling unit for which a
notice pursuant to clause (i)(II), of
failure to comply with housing quality
standards under subparagraph (B) as
determined pursuant to an inspection
conducted under subparagraph (D) or
(F), has been provided. If the unit is
brought into compliance with such
housing quality standards during the
periods referred to in clause (i)(III),
the public housing agency shall
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) Abatement of assistance
amounts.-- The public housing agency
shall abate all of the assistance
amounts under this subsection with
respect to a dwelling unit that is
determined, pursuant to clause (i) of
this subparagraph, to be in
noncompliance with housing quality
standards under subparagraph (B). Upon
completion of repairs by the public
housing agency or the owner sufficient
so that the dwelling unit complies with
such housing quality standards, the
agency shall recommence payments under
the housing assistance payments
contract to the owner of the dwelling
unit.
(iv) Notification.-- If a public
housing agency providing assistance
under this subsection abates rental
assistance payments pursuant to clause
(iii) with respect to a dwelling unit,
the agency shall, upon commencement of
such abatement--
(I) notify the tenant and the
owner of the dwelling unit
that--
(aa) such abatement
has commenced; and
(bb) if the dwelling
unit is not brought
into compliance with
housing quality
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
(II) issue the tenant the
necessary forms to allow the
tenant to move to another
dwelling unit and transfer the
rental assistance to that unit.
(v) Protection of tenants.-- An owner
of a dwelling unit may not terminate
the tenancy of any tenant because of
the withholding or abatement of
assistance pursuant to this
subparagraph. During the period that
assistance is abated pursuant to this
subparagraph, the tenant may terminate
the tenancy by notifying the owner.
(vi) Termination of lease or
assistance payments contract.-- If
assistance amounts under this 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 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.
(III) Assistance in finding
unit.-- The public housing
agency may provide assistance
to the family in finding a new
residence, including use of up
to two months of any assistance
amounts withheld or abated
pursuant to clause (ii) or
(iii), respectively, for costs
directly associated with
relocation of the family to a
new residence, which shall
include security deposits as
necessary and may include
reimbursements for reasonable
moving expenses incurred by the
household, as established by
the Secretary. The agency may
require that a family receiving
assistance for a security
deposit shall remit, to the
extent of such assistance, the
amount of any security deposit
refunds made by the owner of
the dwelling unit for which the
lease was terminated.
(viii) Tenant-caused damages.-- If a
public housing agency determines that
any damage to a dwelling unit that
results in a failure of the dwelling
unit to comply with housing quality
standards under subparagraph (B), other
than any damage resulting from ordinary
use, was caused by the tenant, any
member of the tenant's household, or
any guest or other person under the
tenant's control, the agency may waive
the applicability of this subparagraph,
except that this clause shall not
exonerate a tenant from any liability
otherwise existing under applicable law
for damages to the premises caused by
such tenant.
(ix) Applicability.-- This
subparagraph shall apply to any
dwelling unit for which a housing
assistance payments contract is entered
into or renewed after the date of the
effectiveness of the regulations
implementing this subparagraph.
[(G)] (H) Inspection guidelines.-- The
Secretary shall establish procedural guidelines
and performance standards to facilitate
inspections of dwelling units and conform such
inspections with practices utilized in the
private housing market. Such guidelines and
standards shall take into consideration
variations in local laws and practices of
public housing agencies and shall provide
flexibility to authorities appropriate to
facilitate efficient provision of assistance
under this subsection.
(9) Vacated units.-- If an assisted family vacates a
dwelling unit for which rental assistance is provided
under a housing assistance payment contract before the
expiration of the term of the lease for the unit,
rental assistance pursuant to such contract may not be
provided for the unit after the month during which the
unit was vacated.
(10) Rent.--
(A) Reasonableness.-- The rent for dwelling
units for which a housing assistance payment
contract is established under this subsection
shall be reasonable in comparison with rents
charged for comparable dwelling units in the
private, unassisted local market.
(B) Negotiations.-- A public housing agency
(or other entity, as provided in paragraph
(11)) shall, at the request of a family
receiving tenant-based assistance under this
subsection, assist that family in negotiating a
reasonable rent with a dwelling unit owner. A
public housing agency (or such other entity)
shall review the rent for a unit under
consideration by the family (and all rent
increases for units under lease by the family)
to determine whether the rent (or rent
increase) requested by the owner is reasonable.
If a public housing agency (or other such
entity) determines that the rent (or rent
increase) for a dwelling unit is not
reasonable, the public housing agency (or other
such entity) shall not make housing assistance
payments to the owner under this subsection
with respect to that unit.
(C) Units exempt from local rent control.--
If a dwelling unit for which a housing
assistance payment contract is established
under this subsection is exempt from local rent
control provisions during the term of that
contract, the rent for that unit shall be
reasonable in comparison with other units in
the market area that are exempt from local rent
control provisions.
(D) Timely payments.-- Each public housing
agency shall make timely payment of any amounts
due to a dwelling unit owner under this
subsection. The housing assistance payment
contract between the owner and the public
housing agency may provide for penalties for
the late payment of amounts due under the
contract, which shall be imposed on the public
housing agency in accordance with generally
accepted practices in the local housing market.
(E) Penalties.-- Unless otherwise authorized
by the Secretary, each public housing agency
shall pay any penalties from administrative
fees collected by the public housing agency,
except that no penalty shall be imposed if the
late payment is due to factors that the
Secretary determines are beyond the control of
the public housing agency.
(F) Tax credit projects.-- In the case of a
dwelling unit receiving tax credits pursuant to
section 42 of the Internal Revenue Code of 1986
or for which assistance is provided under
subtitle A of title II of the Cranston Gonzalez
National Affordable Housing Act of 1990, for
which a housing assistance contract not subject
to paragraph (13) of this subsection is
established, rent reasonableness shall be
determined as otherwise provided by this
paragraph, except that--
(i) comparison with rent for units in
the private, unassisted local market
shall not be required if the rent is
equal to or less than the rent for
other comparable units receiving such
tax credits or assistance in the
project that are not occupied by
families assisted with tenant-based
assistance under this subsection; and
(ii) the rent shall not be considered
reasonable for purposes of this
paragraph if it exceeds the greater
of--
(I) the rents charged for
other comparable units
receiving such tax credits or
assistance in the project that
are not occupied by families
assisted with tenant-based
assistance under this
subsection; and
(II) the payment standard
established by the public
housing agency for a unit of
the size involved.
[(11) Leasing of units owned by pha.--If]
(11) Leasing of units owned by pha._
(A) Inspections and rent determinations._If
an eligible family assisted under this
subsection leases a dwelling unit (other than a
public housing dwelling unit) that is owned by
a public housing agency administering
assistance under this subsection, the Secretary
shall require the unit of general local
government or another entity approved by the
Secretary, to make inspections required under
paragraph (8) and rent determinations required
under paragraph (10). The agency shall be
responsible for any expenses of such
inspections and determinations.
(B) Units 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.
(12) Assistance for rental of manufactured housing.--
(A) In general.-- A public housing agency may
make assistance payments in accordance with
this subsection on behalf of a family that
utilizes a manufactured home as a principal
place of residence. Such payments may be made
only for the rental of the real property on
which the manufactured home owned by any such
family is located.
(B) Rent calculation.--
(i) Charges included.-- For
assistance pursuant to this paragraph,
the rent for the space on which a
manufactured home is located and with
respect to which assistance payments
are to be made shall include
maintenance and management charges and
tenant-paid utilities.
(ii) Payment standard.-- The public
housing agency shall establish a
payment standard for the purpose of
determining the monthly assistance that
may be paid for any family under this
paragraph. The payment standard may not
exceed an amount approved or
established by the Secretary.
(iii) Monthly assistance payment.--
The monthly assistance payment for a
family assisted under this paragraph
shall be determined in accordance with
paragraph (2).
(13) PHA project-based assistance.--
(A) In general.-- A public housing agency may
use amounts provided under an annual
contributions contract under this subsection to
enter into a housing assistance payment
contract with respect to an existing, newly
constructed, or rehabilitated [structure]
project , that is attached to the [structure]
project , subject to the limitations and
requirements of this paragraph.
[(B) Percentage limitation.-- Not more than
20 percent of the funding available for tenant-
based assistance under this section that is
administered by the agency may be attached to
structures pursuant to this paragraph.]
(B) Percentage limitation.--
(i) In general.-- Subject to clause
(ii), a public housing agency may use
for project-based assistance under this
paragraph not more than 20 percent of
the authorized units for the agency.
(ii) Exception.-- A public housing
agency may use up to an additional 10
percent of the authorized units for the
agency for project-based assistance
under this paragraph, to provide units
that house individuals and families
that meet the definition of homeless
under section 103 of the McKinney-Vento
Homeless 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.
(C) Consistency with pha plan and other
goals.-- A public housing agency may approve a
housing assistance payment contract pursuant to
this paragraph only if the contract is
consistent with--
(i) the public housing agency plan
for the agency approved under section
5A; and
(ii) the goal of deconcentrating
poverty and expanding housing and
economic opportunities.
[(D) Income mixing requirement.--
[(i) In general.-- Not more than 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.-- The limitation
under clause (i) shall not apply in the
case of assistance under a contract for
housing consisting of single family
properties or for dwelling units that
are specifically made available for
households comprised of elderly
families, disabled families, and
families receiving supportive
services.]
(D) Income-mixing requirement.--
(i) In general.-- Except as provided
in clause (ii), not more than the
greater of 25 dwelling units or 25
percent of the dwelling units in any
project may be assisted under a housing
assistance payment contract for
project-based assistance pursuant to
this paragraph. For purposes of this
subparagraph, the term ``project''
means a single building, multiple
contiguous buildings, or multiple
buildings on contiguous parcels of
land.
(ii) Exceptions.--
(I) Certain families.-- The
limitation under clause (i)
shall not apply to dwelling
units assisted under a contract
that are exclusively made
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) Certain 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.
(III) Certain contracts.--
The limitation under clause (i)
shall not apply with respect to
contracts or renewal of
contracts under which a greater
percentage of the dwelling
units in a project were
assisted under a housing
assistance payment contract for
project-based assistance
pursuant to this paragraph on
the date of the enactment of
the Housing Opportunity Through
Modernization Act of 2015.
(IV) Certain properties.--
Any units of project-based
assistance under this paragraph
that are attached to units
previously subject to federally
required rent restrictions or
receiving other project-based
assistance provided by the
Secretary shall not count
toward the percentage
limitation imposed by this
subparagraph (D).
(iii) Additional monitoring and
oversight requirements.-- The Secretary
may establish 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.
(E) Resident choice requirement.-- A housing
assistance payment contract pursuant to this
paragraph shall provide as follows:
(i) Mobility.-- Each low-income
family occupying a dwelling unit
assisted under the contract may move
from the housing at any time after the
family has occupied the dwelling unit
for 12 months.
(ii) Continued assistance.-- Upon
such a move, the public housing agency
shall provide the low-income family
with tenant-based rental assistance
under this section or such other
tenant-based rental assistance that is
subject to comparable income,
assistance, rent contribution,
affordability, and other requirements,
as the Secretary shall provide by
regulation. If such rental assistance
is not immediately available to fulfill
the requirement under the preceding
sentence with respect to a low-income
family, such requirement may be met by
providing the family priority to
receive the next voucher or other
tenant-based rental assistance amounts
that become available under the program
used to fulfill such requirement.
[(F) Contract term.-- A housing assistance
payment contract pursuant to this paragraph
between a public housing agency and the owner
of a structure may have a term of up to 15
years, subject to the availability of
sufficient appropriated funds for the purpose
of renewing expiring contracts for assistance
payments, as provided in appropriations Acts
and in the agency's annual contributions
contract with the Secretary, and to annual
compliance with the inspection requirements
under paragraph (8), except that the agency
shall not be required to make annual
inspections of each assisted unit in the
development. The contract may specify
additional conditions for its continuation. If
the units covered by the contract are owned by
the agency, the term of the contract shall be
agreed upon by the agency and the unit of
general local government or other entity
approved by the Secretary in the manner
provided under paragraph (11).]
(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) Addition of eligible units.--
Subject to the limitations of
subparagraphs (B) and (D), the agency
and the owner may add eligible units
within the same project to a housing
assistance payments contract at any
time during the term thereof without
being subject to any additional
competitive selection procedures.
(iii) Housing under construction or
recently constructed.-- An agency may
enter into a housing assistance
payments contract with an owner for any
unit that does not qualify as existing
housing and is under construction or
recently has been constructed whether
or not the agency has executed an
agreement to enter into a contract with
the owner, provided that the owner
demonstrates compliance with applicable
requirements prior to execution of the
housing 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 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.
(G) Extension of contract term.-- A public
housing agency may enter into a contract with
the owner of a [structure] project assisted
under a housing assistance payment contract
pursuant to this paragraph to extend the term
of the underlying housing assistance payment
contract for such period as the agency
determines to be appropriate to achieve long-
term affordability of the housing or to expand
housing opportunities. Such contract may, at
the election of the public housing agency and
the owner of the [structure] project , specify
that such contract shall be extended for
renewal terms of up to [15 years] 20 years
each, if the agency makes the determination
required by this subparagraph and the owner is
in compliance with the terms of the contract.
Such a contract shall provide that the
extension of such term shall be contingent upon
the future availability of appropriated funds
for the purpose of renewing expiring contracts
for assistance payments, as provided in
appropriations Acts, and may obligate the owner
to have such extensions of the underlying
housing assistance payment contract accepted by
the owner and the successors in interest of the
owner. A public housing agency may agree to
enter into such a contract at the time it
enters into the initial agreement for a housing
assistance payment contract or at any time
thereafter that is before the expiration of the
housing assistance payment contract.
(H) Rent calculation.-- A housing assistance
payment contract pursuant to this paragraph
shall establish rents for each unit assisted in
an amount that does not exceed 110 percent of
the applicable fair market rental (or any
exception payment standard approved by the
Secretary pursuant to paragraph (1)(D)), except
that if a contract covers a dwelling unit that
has been allocated low-income housing tax
credits pursuant to section 42 of the Internal
Revenue Code of 1986 (26 U.S.C. 42) and is not
located in a qualified census tract (as such
term is defined in subsection (d) of such
section 42), the rent for such unit may be
established at any level that does not exceed
the rent charged for comparable units in the
building that also receive the low-income
housing tax credit but do not have additional
rental assistance, except that in the case of a
contract unit that has been allocated low-
income housing tax credits and for which the
rent limitation pursuant to such section 42 is
less than the amount that would otherwise be
permitted under this subparagraph, the rent for
such unit may, in the sole discretion of a
public housing agency, be established at the
higher section 8 rent, subject only to
paragraph (10)(A). The rents established by
housing assistance payment contracts pursuant
to this paragraph may vary from the payment
standards established by the public housing
agency pursuant to paragraph (1)(B), but shall
be subject to paragraph (10)(A).
[(I) Rent adjustments.-- A housing assistance
payments contract pursuant to this paragraph
shall provide for rent adjustments, except
that--
[(i) the adjusted rent for any unit
assisted shall be reasonable in
comparison with rents charged for
comparable dwelling units in the
private, unassisted, local market and
may not exceed the maximum rent
permitted under subparagraph (H),
except that 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 unit;
and
[(ii) the provisions of subsection
(c)(2)(C) shall not apply.]
(I) Rent adjustments.-- A housing assistance
payments contract pursuant to this paragraph
entered into after the date of the enactment of
the Housing Opportunity Through Modernization
Act of 2015 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.
(J) Tenant selection.-- A public housing
agency [shall] may select families to receive
project-based assistance pursuant to this
paragraph from its waiting list for assistance
under this subsection or may permit owners to
select applicants from site-based waiting lists
as specified in this subparagraph . Eligibility
for such project-based assistance shall be
subject to the provisions of section 16(b) that
apply to tenant-based assistance. [The agency
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.] 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. Any family
that rejects an offer of project-based
assistance under this paragraph or that is
rejected for admission to a [structure] project
by the owner or manager of a [structure]
project assisted under this paragraph shall
retain its place on the waiting list as if the
offer had not been made. [The owner or manager
of a structure 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.
Subject to its waiting list policies and
selection preferences, a public housing agency
may place on its waiting list a family referred
by the owner or manager of a structure and may
maintain a separate waiting list for assistance
under this paragraph, but only if all families
on the agency's waiting list for assistance
under this subsection are permitted to place
their names on the separate list.] 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 site-based
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.
(K) Vacated units.-- Notwithstanding
paragraph (9), a housing assistance payment
contract pursuant to this paragraph may provide
as follows:
(i) Payment for vacant units.-- That
the public housing agency may, in its
discretion, continue to provide
assistance under the contract, for a
reasonable period not exceeding 60
days, for a dwelling unit that becomes
vacant, but only: (I) if the vacancy
was not the fault of the owner of the
dwelling unit; and (II) the agency and
the owner take every reasonable action
to minimize the likelihood and extent
of any such vacancy. Rental assistance
may not be provided for a vacant unit
after the expiration of such period.
(ii) Reduction of contract.-- That,
if despite reasonable efforts of the
agency and the owner to fill a vacant
unit, no eligible family has agreed to
rent the unit within 120 days after the
owner has notified the agency of the
vacancy, the agency may reduce its
housing assistance payments contract
with the owner by the amount equivalent
to the remaining months of subsidy
attributable to the vacant unit.
Amounts deobligated pursuant to such a
contract provision shall be available
to the agency to provide assistance
under this subsection.
Eligible applicants for assistance under this
subsection may enforce provisions authorized by
this subparagraph.
(L) Use in cooperative housing and elevator
buildings.-- A public housing agency may enter
into a housing assistance payments contract
under this paragraph with respect to--
(i) dwelling units in cooperative
housing; and
(ii) notwithstanding subsection (c),
dwelling units in a high-rise elevator
project, including such a project that
is occupied by families with children,
without review and approval of the
contract by the Secretary.
(M) Reviews.--
(i) Subsidy layering.-- A subsidy
layering review in accordance with
section 102(d) of the Department of
Housing and Urban Development Reform
Act of 1989 (42 U.S.C. 3545(d)) shall
not be required for assistance under
this paragraph in the case of a housing
assistance payments contract for an
existing [structure] project , or if a
subsidy layering review has been
conducted by the applicable State or
local agency.
(ii) Environmental review.-- A public
housing agency shall not be required to
undertake any environmental review
before entering into a housing
assistance payments contract under this
paragraph for an existing [structure]
project , except to the extent such a
review is otherwise required by law or
regulation relating to funding other
than housing assistance payments .
(N) Structure owned by agency.-- A public
housing agency engaged in an initiative to
improve, develop, or replace a public housing
property or site may attach 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) Special 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.
(14) Inapplicability to tenant-based assistance.--
Subsection (c) shall not apply to tenant-based
assistance under this subsection.
(15) Homeownership option.--
(A) In general.-- A public housing agency
providing assistance under this subsection may,
at the option of the agency, provide assistance
for homeownership under subsection (y).
(B) Alternative administration.-- A public
housing agency may contract with a nonprofit
organization to administer a homeownership
program under subsection (y).
(16) Rental vouchers for relocation of witnesses and
victims of crime.--
(A) Witnesses.-- Of amounts made available
for assistance under this subsection in each
fiscal year, the Secretary, in consultation
with the Inspector General, shall make
available such sums as may be necessary for the
relocation of witnesses in connection with
efforts to combat crime in public and assisted
housing pursuant to requests from law
enforcement or prosecution agencies.
(B) Victims of crime.--
(i) In general.-- Of amounts made
available for assistance under this
section in each fiscal year, the
Secretary shall make available such
sums as may be necessary for the
relocation of families residing in
public housing who are victims of a
crime of violence (as that term is
defined in section 16 of title 18,
United States Code) that has been
reported to an appropriate law
enforcement agency.
(ii) Notice.-- A public housing
agency that receives amounts under this
subparagraph shall establish procedures
for providing notice of the
availability of that assistance to
families that may be eligible for that
assistance.
(17) Deed restrictions.-- Assistance under this
subsection may not be used in any manner that abrogates
any local deed restriction that applies to any housing
consisting of 1 to 4 dwelling units. This paragraph may
not be construed to affect the provisions or
applicability of the Fair Housing Act.
(18) Rental assistance for assisted living
facilities.--
(A) In general.-- A public housing agency may
make assistance payments on behalf of a family
that uses an assisted living facility as a
principal place of residence and that uses such
supportive services made available in the
facility as the agency may require. Such
payments may be made only for covering costs of
rental of the dwelling unit in the assisted
living facility and not for covering any
portion of the cost of residing in such
facility that is attributable to service
relating to assisted living.
(B) Rent calculation.--
(i) Charges included.-- For
assistance pursuant to this paragraph,
the rent of the dwelling unit that is
an assisted living facility with
respect to which assistance payments
are made shall include maintenance and
management charges related to the
dwelling unit and tenant-paid
utilities. Such rent shall not include
any charges attributable to services
relating to assisted living.
(ii) Payment standard.-- In
determining the monthly assistance that
may be paid under this paragraph on
behalf of any family residing in an
assisted living facility, the public
housing agency shall utilize the
payment standard established under
paragraph (1), for the market area in
which the assisted living facility is
located, for the applicable size
dwelling unit.
(iii) Monthly assistance payment.--
The monthly assistance payment for a
family assisted under this paragraph
shall be determined in accordance with
paragraph (2) (using the rent and
payment standard for the dwelling unit
as determined in accordance with this
subsection), except that a family may
be required at the time the family
initially receives such assistance to
pay rent in an amount exceeding 40
percent of the monthly adjusted income
of the family by such an amount or
percentage that is reasonable given the
services and amenities provided and as
the Secretary deems appropriate..
(C) Definition.-- For the purposes of this
paragraph, the term ``assisted living
facility'' has the meaning given that term in
section 232(b) of the National Housing Act (12
U.S.C. 1715w(b)), except that such a facility
may be contained within a portion of a larger
multifamily housing project.
(19) Rental vouchers for veterans affairs supported
housing program.--
(A) Set aside.-- Subject to subparagraph (C),
the Secretary shall set aside, from amounts
made available for rental assistance under this
subsection, the amounts specified in
subparagraph (B) for use only for providing
such assistance through a supported housing
program administered in conjunction with the
Department of Veterans Affairs. Such program
shall provide rental assistance on behalf of
homeless veterans who have chronic mental
illnesses or chronic substance use disorders,
shall require agreement of the veteran to
continued treatment for such mental illness or
substance use disorder as a condition of
receipt of such rental assistance, and shall
ensure such treatment and appropriate case
management for each veteran receiving such
rental assistance.
(B) Amount.-- The amount specified in this
subparagraph is--
(i) for fiscal year 2007, the amount
necessary to provide 500 vouchers for
rental assistance under this
subsection;
(ii) for fiscal year 2008, the amount
necessary to provide 1,000 vouchers for
rental assistance under this
subsection;
(iii) for fiscal year 2009, the
amount necessary to provide 1,500
vouchers for rental assistance under
this subsection;
(iv) for fiscal year 2010, the amount
necessary to provide 2,000 vouchers for
rental assistance under this
subsection; and
(v) for fiscal year 2011, the amount
necessary to provide 2,500 vouchers for
rental assistance under this
subsection.
(C) Funding through incremental assistance.--
In any fiscal year, to the extent that this
paragraph requires the Secretary to set aside
rental assistance amounts for use under this
paragraph in an amount that exceeds the amount
set aside in the preceding fiscal year, such
requirement shall be effective only to such
extent or in such amounts as are or have been
provided in appropriation Acts for such fiscal
year for incremental rental assistance under
this subsection.
(20) Collection of utility data.--
(A) Publication.-- The Secretary shall, to
the extent that data can be collected cost
effectively, regularly publish such data
regarding utility consumption and costs in
local areas as the Secretary determines will be
useful for the establishment of allowances for
tenant-paid utilities for families assisted
under this subsection.
(B) Use of data.-- The Secretary shall
provide such data in a manner that--
(i) avoids unnecessary administrative
burdens for public housing agencies and
owners; and
(ii) protects families in various
unit sizes and building types, and
using various utilities, from high rent
and utility cost burdens relative to
income.
(p) In order to assist elderly families (as defined in
section 3(b)(3)) who elect to live in a shared housing
arrangement in which they benefit as a result of sharing the
facilities of a dwelling with others in a manner that
effectively and efficiently meets their housing needs and
thereby reduces their costs of housing, the Secretary shall
permit assistance provided under the existing housing and
moderate rehabilitation programs to be used by such families in
such arrangements. In carrying out this subsection, the
Secretary shall issue minimum habitability standards for the
purpose of assuring decent, safe, and sanitary housing for such
families while taking into account the special circumstances of
shared housing.
(q) Administrative Fees.--
(1) Fee for ongoing costs of administration.--
(A) In general.-- The Secretary shall
establish fees for the costs of administering
the tenant-based assistance, certificate,
voucher, and moderate rehabilitation programs
under this section.
(B) Fiscal year 1999.--
(i) Calculation.-- For fiscal year
1999, the fee for each month for which
a dwelling unit is covered by an
assistance contract shall be--
(I) in the case of a public
housing agency that, on an
annual basis, is administering
a program for not more than 600
dwelling units, 7.65 percent of
the base amount; and
(II) in the case of an agency
that, on an annual basis, is
administering a program for
more than 600 dwelling units
(aa) for the first 600 units,
7.65 percent of the base
amount, and (bb) for any
additional dwelling units under
the program, 7.0 percent of the
base amount.
(ii) Base amount.-- For purposes of
this subparagraph, the base amount
shall be the higher of--
(I) the fair market rental
established under section 8(c)
of this Act (as in effect
immediately before the
effective date under section
503(a) of the Quality Housing
and Work Responsibility Act of
1998) for fiscal year 1993 for
a 2-bedroom existing rental
dwelling unit in the market
area of the agency, and
(II) the amount that is the
lesser of (aa) such fair market
rental for fiscal year 1994, or
(bb) 103.5 percent of the
amount determined under clause
(i),
adjusted based on changes in wage data
or other objectively measurable data
that reflect the costs of administering
the program, as determined by the
Secretary. The Secretary may require
that the base amount be not less than a
minimum amount and not more than a
maximum amount.
(C) Subsequent fiscal years.-- For subsequent
fiscal years, the Secretary shall publish a
notice in the Federal Register, for each
geographic area, establishing the amount of the
fee that would apply for public housing
agencies administering the program, based on
changes in wage data or other objectively
measurable data that reflect the costs of
administering the program, as determined by the
Secretary.
(D) Increase.-- The Secretary may increase
the fee if necessary to reflect the higher
costs of administering small programs and
programs operating over large geographic areas.
(E) Decrease.-- The Secretary may decrease
the fee for units owned by a public housing
agency to reflect reasonable costs of
administration.
(2) Fee for preliminary expenses.-- The Secretary
shall also establish reasonable fees (as determined by
the Secretary) for--
(A) the costs of preliminary expenses, in the
amount of $500, for a public housing agency,
except that such fee shall apply to an agency
only in the first year that the agency
administers a tenant-based assistance program
under this section, and only if, immediately
before the effective date under section 503(a)
of the Quality Housing and Work Responsibility
Act of 1998, the agency was not administering a
tenant-based assistance program under the
United States Housing Act of 1937 (as in effect
immediately before such effective date), in
connection with its initial increment of
assistance received;
(B) the costs incurred in assisting families
who experience difficulty (as determined by the
Secretary) in obtaining appropriate housing
under the programs; and
(C) extraordinary costs approved by the
Secretary.
(3) Transfer of fees in cases of concurrent
geographical jurisdiction.-- In each fiscal year, if
any public housing agency provides tenant-based
assistance under this section on behalf of a family who
uses such assistance for a dwelling unit that is
located within the jurisdiction of such agency but is
also within the jurisdiction of another public housing
agency, the Secretary shall take such steps as may be
necessary to ensure that the public housing agency that
provides the services for a family receives all or part
of the administrative fee under this section (as
appropriate).
(4) Applicability.-- This subsection shall apply to
fiscal year 1999 and fiscal years thereafter.
(r) Portability.--(1) In general.-- (A) Any family receiving
tenant-based assistance under subsection (o) may receive such
assistance to rent an eligible dwelling unit if the dwelling
unit to which the family moves is within any area in which a
program is being administered under this section.
(B)(i) Notwithstanding subparagraph (A) and subject to any
exceptions established under clause (ii) of this subparagraph,
a public housing agency may require that any family not living
within the jurisdiction of the public housing agency at the
time the family applies for assistance from the agency shall,
during the 12-month period beginning on the date of initial
receipt of housing assistance made available on behalf of the
family from such agency, lease and occupy an eligible dwelling
unit located within the jurisdiction served by the agency.
(ii) The Secretary may establish such exceptions to the
authority of public housing agencies established under clause
(i).
(2) The public housing agency having authority with respect
to the dwelling unit to which a family moves under this
subsection shall have the responsibility of carrying out the
provisions of this subsection with respect to the family.
(3) In providing assistance under subsection (o) for any
fiscal year, the Secretary shall give consideration to any
reduction in the number of resident families incurred by a
public housing agency in the preceding fiscal year as a result
of the provisions of this subsection. The Secretary shall
establish procedures for the compensation of public housing
agencies that issue vouchers to families that move into or out
of the jurisdiction of the public housing agency under
portability procedures. The Secretary may reserve amounts
available for assistance under subsection (o) to compensate
those public housing agencies.
(4) The provisions of this subsection may not be construed to
restrict any authority of the Secretary under any other
provision of law to provide for the portability of assistance
under this section.
(5) Lease violations.--A family may not receive a voucher
from a public housing agency and move to another jurisdiction
under the tenant-based assistance program if the family has
moved out of the assisted dwelling unit of the family in
violation of a lease, except that a family may receive a
voucher from a public housing agency and move to another
jurisdiction under the tenant-based assistance program if the
family has complied with all other obligations of the section 8
program and has moved out of the assisted dwelling unit in
order to protect the health or safety of an individual who is
or has been the victim of domestic violence, dating violence,
or stalking and who reasonably believed he or she was
imminently threatened by harm from further violence if he or
she remained in the assisted dwelling unit.
(s) In selecting families for the provision of assistance
under this section (including subsection (o)), a public housing
agency may not exclude or penalize a family solely because the
family resides in a public housing project.
(t) Enhanced Vouchers.--
(1) In general.-- Enhanced voucher assistance under
this subsection for a family shall be voucher
assistance under subsection (o), except that under such
enhanced voucher assistance--
(A) subject only to subparagraph (D), the
assisted family shall pay as rent no less than
the amount the family was paying on the date of
the eligibility event for the project in which
the family was residing on such date;
(B) the assisted family may elect to remain
in the same project in which the family was
residing on the date of the eligibility event
for the project, and if, during any period the
family makes such an election and continues to
so reside, the rent for the dwelling unit of
the family in such project exceeds the
applicable payment standard established
pursuant to subsection (o) for the unit, the
amount of rental assistance provided on behalf
of the family shall be determined using a
payment standard that is equal to the rent for
the dwelling unit (as such rent may be
increased from time-to-time), subject to
paragraph (10)(A) of subsection (o) and any
other reasonable limit prescribed by the
Secretary, except that a limit shall not be
considered reasonable for purposes of this
subparagraph if it adversely affects such
assisted families;
(C) subparagraph (B) of this paragraph shall
not apply and the payment standard for the
dwelling unit occupied by the family shall be
determined in accordance with subsection (o)
if--
(i) the assisted family moves, at any
time, from such project; or
(ii) the voucher is made available
for use by any family other than the
original family on behalf of whom the
voucher was provided; and
(D) if the [income] annual adjusted income of
the assisted family declines to a significant
extent, the percentage of [income] annual
adjusted income paid by the family for rent
shall not exceed the greater of 30 percent or
the percentage of [income] annual adjusted
income paid at the time of the eligibility
event for the project.
(2) Eligibility event.-- For purposes of this
subsection, the term ``eligibility event'' means, with
respect to a multifamily housing project, the
prepayment of the mortgage on such housing project, the
voluntary termination of the insurance contract for the
mortgage for such housing project (including any such
mortgage prepayment during fiscal year 1996 or a fiscal
year thereafter or any insurance contract voluntary
termination during fiscal year 1996 or a fiscal year
thereafter), the termination or expiration of the
contract for rental assistance under section 8 of the
United States Housing Act of 1937 for such housing
project (including any such termination or expiration
during fiscal years after fiscal year 1994 prior to the
effective date of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent
Agencies Appropriations Act, 2001), or the transaction
under which the project is preserved as affordable
housing, that, under paragraphs (3) and (4) of section
515(c), section 524(d) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note), section 223(f) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12
U.S.C. 4113(f)), or section 201(p) of the Housing and
Community Development Amendments of 1978 (12 U.S.C.
1715z-1a(p)), results in tenants in such housing
project being eligible for enhanced voucher assistance
under this subsection.
(3) Treatment of enhanced vouchers provided under
other authority.--
(A) In general.-- Notwithstanding any other
provision of law, any enhanced voucher
assistance provided under any authority
specified in subparagraph (B) shall (regardless
of the date that the amounts for providing such
assistance were made available) be treated, and
subject to the same requirements, as enhanced
voucher assistance under this subsection.
(B) Identification of other authority.-- The
authority specified in this subparagraph is the
authority under--
(i) the 10th, 11th, and 12th provisos
under the ``Preserving Existing Housing
Investment'' account in title II of the
Departments of Veterans Affairs and
Housing and Urban Development, and
Independent Agencies Appropriations
Act, 1997 (Public Law 104-204; 110
Stat. 2884), pursuant to such provisos,
the first proviso under the ``Housing
Certificate Fund'' account in title II
of the Departments of Veterans Affairs
and Housing and Urban Development, and
Independent Agencies Appropriations
Act, 1998 (Public Law 105-65; 111 Stat.
1351), or the first proviso under the
``Housing Certificate Fund'' account in
title II of the Departments of Veterans
Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1999 (Public Law
105-276; 112 Stat. 2469); and
(ii) paragraphs (3) and (4) of
section 515(c) of the Multifamily
Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C.
1437f note), as in effect before the
enactment of this Act.
(4) Authorization of appropriations.-- There are
authorized to be appropriated for each of fiscal years
2000, 2001, 2002, 2003, and 2004 such sums as may be
necessary for enhanced voucher assistance under this
subsection.
(u) In the case of low-income families living in rental
projects rehabilitated under section 17 of this Act or section
533 of the Housing Act of 1949 before rehabilitation--
(1) vouchers under this section shall be made for
families who are required to move out of their units
because of the physical rehabilitation activities or
because of overcrowding;
(2) at the discretion of each public housing agency
or other agency administering the allocation of
assistance or vouchers under this section may be made
for families who would have to pay more than 30 percent
of their adjusted income for rent after rehabilitation
whether they choose to remain in, or to move from, the
project; and
(3) the Secretary shall allocate assistance for
vouchers under this section to ensure that sufficient
resources are available to address the physical or
economic displacement, or potential economic
displacement, of existing tenants pursuant to
paragraphs (1) and (2).
(v) The Secretary may extend expiring contracts entered into
under this section for project-based loan management assistance
to the extent necessary to prevent displacement of low-income
families receiving such assistance as of September 30, 1996.
(x) Family Unification.--
(1) Increase in budget authority.-- The budget
authority available under section 5(c) for assistance
under section 8(b) is authorized to be increased by
$100,000,000 on or after October 1, 1992, and by
$104,200,000 on or after October 1, 1993.
(2) Use of funds.-- The amounts made available under
this subsection shall be used only in connection with
tenant-based assistance under section 8 on behalf of
(A) any family (i) who is otherwise eligible for such
assistance, and (ii) who the public child welfare
agency for the jurisdiction has certified is a family
for whom the lack of adequate housing is a primary
factor in the imminent placement of the family's child
or children in out-of-home care or the delayed
discharge of a child or children to the family from
out-of-home care and (B) for a period not to exceed
[18] 36 months, otherwise eligible youths who have
attained at least 18 years of age and not more than
[21] 24 years of age and who have left foster care, 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 at age 16 or older.
(3) Allocation.-- The amounts made available under
this subsection shall be allocated by the Secretary
through a national competition among applicants based
on demonstrated need for assistance under this
subsection. To be considered for assistance, an
applicant shall submit to the Secretary a written
proposal containing a report from the public child
welfare agency serving the jurisdiction of the
applicant that describes how a lack of adequate housing
in the jurisdiction is resulting in the initial or
prolonged separation of children from their families,
and how the applicant will coordinate with the public
child welfare agency to identify eligible families and
provide the families with assistance under this
subsection.
(4) Coordination between public housing agencies and
public child welfare agencies.-- The Secretary shall,
not later than the expiration of the 180-day period
beginning on the date of the enactment of the Housing
Opportunity Through Modernization Act of 2015 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).
[(4)] (5) Definitions.-- For purposes of this
subsection:
(A) Applicant.-- The term ``applicant'' means
a public housing agency or any other agency
responsible for administering assistance under
section 8.
(B) Public child welfare agency.-- The term
``public child welfare agency'' means the
public agency responsible under applicable
State law for determining that a child is at
imminent risk of placement in out-of-home care
or that a child in out-of-home care under the
supervision of the public agency may be
returned to his or her family.
(y) Homeownership Option.--
(1) Use of assistance for homeownership.-- A public
housing agency providing tenant-based assistance on
behalf of an eligible family under this section may
provide assistance for an eligible family that
purchases a dwelling unit (including a unit under a
lease-purchase agreement) that will be owned by 1 or
more members of the family, and will be occupied by the
family, if the family--
(A) is a first-time homeowner, or owns or is
acquiring shares in a cooperative;
(B) demonstrates that the family has income
from employment or other sources (other than
public assistance, except that the Secretary
may provide for the consideration of public
assistance in the case of an elderly family or
a disabled family), as determined in accordance
with requirements of the Secretary, that is not
less than twice the payment standard
established by the public housing agency (or
such other amount as may be established by the
Secretary);
(C) except as provided by the Secretary,
demonstrates at the time the family initially
receives tenant-based assistance under this
subsection that one or more adult members of
the family have achieved employment for the
period as the Secretary shall require;
(D) participates in a homeownership and
housing counseling program provided by the
agency; and
(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements
established by the Secretary.
(2) Determination of amount of assistance.--
(A) Monthly expenses not exceeding payment
standard.-- If the monthly homeownership
expenses, as determined in accordance with
requirements established by the Secretary, do
not exceed the payment standard, the monthly
assistance payment shall be the amount by which
the homeownership expenses exceed the highest
of the following amounts, rounded to the
nearest dollar:
(i) 30 percent of the monthly
adjusted income of the family.
(ii) 10 percent of the monthly income
of the family.
(iii) If the family is receiving
payments for welfare assistance from a
public agency, and a portion of those
payments, adjusted in accordance with
the actual housing costs of the family,
is specifically designated by that
agency to meet the housing costs of the
family, the portion of those payments
that is so designated.
(B) Monthly expenses exceed payment
standard.-- If the monthly homeownership
expenses, as determined in accordance with
requirements established by the Secretary,
exceed the payment standard, the monthly
assistance payment shall be the amount by which
the applicable payment standard exceeds the
highest of the amounts under clauses (i), (ii),
and (iii) of subparagraph (A).
(3) Inspections and contract conditions.--
(A) In general.-- Each contract for the
purchase of a unit to be assisted under this
section shall--
(i) provide for pre-purchase
inspection of the unit by an
independent professional; and
(ii) require that any cost of
necessary repairs be paid by the
seller.
(B) Annual inspections not required.-- The
requirement under subsection (o)(8)(A)(ii) for
annual inspections shall not apply to units
assisted under this section.
(4) Other authority of the secretary.-- The Secretary
may--
(A) limit the term of assistance for a family
assisted under this subsection; and
(B) modify the requirements of this
subsection as the Secretary determines to be
necessary to make appropriate adaptations for
lease-purchase agreements.
(5) Inapplicability of certain provisions.--
Assistance under this subsection shall not be subject
to the requirements of the following provisions:
(A) Subsection (c)(3)(B) of this section.
(B) Subsection (d)(1)(B)(i) of this section.
(C) Any other provisions of this section
governing maximum amounts payable to owners and
amounts payable by assisted families.
(D) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
(E) Any other provisions of this Act that are
inconsistent with the provisions of this
subsection.
(6) Reversion to rental status.--
(A) FHA-insured mortgages.-- If a family
receiving assistance under this subsection for
occupancy of a dwelling defaults under a
mortgage for the dwelling insured by the
Secretary under the National Housing Act, the
family may not continue to receive rental
assistance under this section unless the family
(i) transfers to the Secretary marketable title
to the dwelling, (ii) moves from the dwelling
within the period established or approved by
the Secretary, and (iii) agrees that any
amounts the family is required to pay to
reimburse the escrow account under section
23(d)(3) may be deducted by the public housing
agency from the assistance payment otherwise
payable on behalf of the family.
(B) Other mortgages.-- If a family receiving
assistance under this subsection defaults under
a mortgage not insured under the National
Housing Act, the family may not continue to
receive rental assistance under this section
unless it complies with requirements
established by the Secretary.
(C) All mortgages.-- A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
(7) Downpayment assistance.--
(A) Authority.-- A public housing agency may,
in lieu of providing monthly assistance
payments under this subsection on behalf of a
family eligible for such assistance and at the
discretion of the public housing agency,
provide assistance for the family in the form
of a single grant to be used only as a
contribution toward the downpayment required in
connection with the purchase of a dwelling for
fiscal year 2000 and each fiscal year
thereafter to the extent provided in advance in
appropriations Acts.
(B) Amount.-- The amount of a downpayment
grant on behalf of an assisted family may not
exceed the amount that is equal to the sum of
the assistance payments that would be made
during the first year of assistance on behalf
of the family, based upon the income of the
family at the time the grant is to be made.
(8) Definition of first-time homeowner.-- For
purposes of this subsection, the term ``first-time
homeowner'' means--
(A) a family, no member of which has had a
present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives
assistance for homeownership under this
subsection; and
(B) any other family, as the Secretary may
prescribe.
(z) Termination of Section 8 Contracts and Reuse of
Recaptured Budget Authority.--
(1) General authority.-- The Secretary may reuse any
budget authority, in whole or part, that is recaptured
on account of expiration or termination of a housing
assistance payments contract only for one or more of
the following:
(A) Tenant-based assistance.-- Pursuant to a
contract with a public housing agency, to
provide tenant-based assistance under this
section to families occupying units formerly
assisted under the terminated contract.
(B) Project-based assistance.-- Pursuant to a
contract with an owner, to attach assistance to
one or more structures under this section, for
relocation of families occupying units formerly
assisted under the terminated contract.
(2) Families occupying units formerly assisted under
terminated contract.-- Pursuant to paragraph (1), the
Secretary shall first make available tenant- or
project-based assistance to families occupying units
formerly assisted under the terminated contract. The
Secretary shall provide project-based assistance in
instances only where the use of tenant-based assistance
is determined to be infeasible by the Secretary.
(aa) Refinancing Incentive.--
(1) In general.-- The Secretary may pay all or a part
of the up front costs of refinancing for each project
that--
(A) is constructed, substantially
rehabilitated, or moderately rehabilitated
under this section;
(B) is subject to an assistance contract
under this section; and
(C) was subject to a mortgage that has been
refinanced under section 223(a)(7) or section
223(f) of the National Housing Act to lower the
periodic debt service payments of the owner.
(2) Share from reduced assistance payments.-- The
Secretary may pay the up front cost of refinancing
only--
(A) to the extent that funds accrue to the
Secretary from the reduced assistance payments
that results from the refinancing; and
(B) after the application of amounts in
accordance with section 1012 of the Stewart B.
McKinney Homeless Assistance Amendments Act of
1988.
(bb) Transfer, Reuse, and Rescission of Budget Authority.--
(1) Transfer of Budget Authority.-- If an assistance
contract under this section, other than a contract for
tenant-based assistance, is terminated or is not
renewed, or if the contract expires, the Secretary
shall, in order to provide continued assistance to
eligible families, including eligible families
receiving the benefit of the project-based assistance
at the time of the termination, transfer any budget
authority remaining in the contract to another
contract. The transfer shall be under such terms as the
Secretary may prescribe.
(2) Reuse and rescission of certain recaptured budget
authority.-- Notwithstanding paragraph (1), if a
project-based assistance contract for an eligible
multifamily housing project subject to actions
authorized under title I is terminated or amended as
part of restructuring under section 517 of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997, the Secretary shall recapture the budget
authority not required for the terminated or amended
contract and use such amounts as are necessary to
provide housing assistance for the same number of
families covered by such contract for the remaining
term of such contract, under a contract providing for
project-based or tenant-based assistance. The amount of
budget authority saved as a result of the shift to
project-based or tenant-based assistance shall be
rescinded.
(cc) Law Enforcement and Security Personnel.--
(1) In general.-- Notwithstanding any other provision
of this Act, in the case of assistance attached to a
structure, for the purpose of increasing security for
the residents of a project, an owner may admit, and
assistance under this section may be provided to,
police officers and other security personnel who are
not otherwise eligible for assistance under the Act.
(2) Rent requirements.-- With respect to any
assistance provided by an owner under this subsection,
the Secretary may--
(A) permit the owner to establish such rent
requirements and other terms and conditions of
occupancy that the Secretary considers to be
appropriate; and
(B) require the owner to submit an
application for those rent requirements, which
application shall include such information as
the Secretary, in the discretion of the
Secretary, determines to be necessary.
(3) Applicability.-- This subsection shall apply to
fiscal year 1999 and fiscal years thereafter.
(dd) Tenant-Based Contract Renewals.--Subject to amounts
provided in appropriation Acts, starting in fiscal year 1999,
the Secretary shall renew all expiring tenant-based annual
contribution contracts under this section by applying an
inflation factor based on local or regional factors to an
allocation baseline. The allocation baseline shall be
calculated by including, at a minimum, amounts sufficient to
ensure continued assistance for the actual number of families
assisted as of October 1, 1997, with appropriate upward
adjustments for incremental assistance and additional families
authorized subsequent to that date.
* * * * * * *
SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) Merger Into Capital Fund.--Except as otherwise provided
in the Quality Housing and Work Responsibility Act of 1998, any
assistance made available for public housing under section 14
of this Act before October 1, 1999, shall be merged into the
Capital Fund established under subsection (d).
(b) Merger Into Operating Fund.--Except as otherwise provided
in the Quality Housing and Work Responsibility Act of 1998, any
assistance made available for public housing under section 9 of
this Act before October 1, 1999, shall be merged into the
Operating Fund established under subsection (e).
(c) Allocation Amount.--
(1) In General.-- For fiscal year 2000 and each
fiscal year thereafter, the Secretary shall allocate
amounts in the Capital Fund and Operating Funds for
assistance for public housing agencies eligible for
such assistance. The Secretary shall determine the
amount of the allocation for each eligible agency,
which shall be, for any fiscal year beginning after the
effective date of the formulas described in subsections
(d)(2) and (e)(2)--
(A) for assistance from the Capital Fund, the
amount determined for the agency under the
formula under subsection (d)(2); and
(B) for assistance from the Operating Fund,
the amount determined for the agency under the
formula under subsection (e)(2).
(2) Funding.-- There are authorized to be
appropriated for assistance for public housing agencies
under this section the following amounts:
(A) Capital fund.-- For allocations of
assistance from the Capital Fund,
$3,000,000,000 for fiscal year 1999, and such
sums as may be necessary for fiscal years 2000,
2001, 2002, and 2003.
(B) Operating fund.-- For allocations of
assistance from the Operating Fund,
$2,900,000,000 for fiscal year 1999, and such
sums as may be necessary for each of fiscal
years 2000, 2001, 2002, and 2003.
(d) Capital Fund.--
(1) In general.-- The Secretary shall establish a
Capital Fund for the purpose of making assistance
available to public housing agencies to carry out
capital and management activities, including--
(A) the development, financing, and
modernization of public housing projects,
including the redesign, reconstruction, and
reconfiguration of public housing sites and
buildings (including accessibility
improvements) and the development of mixed-
finance projects;
(B) vacancy reduction;
(C) addressing deferred maintenance needs and
the replacement of obsolete utility systems and
dwelling equipment;
(D) planned code compliance;
(E) management improvements, including the
establishment and initial operation of computer
centers in and around public housing through a
Neighborhood Networks initiative, for the
purpose of enhancing the self-sufficiency,
employability, and economic self-reliance of
public housing residents by providing them with
onsite computer access and training resources;
(F) demolition and replacement;
(G) resident relocation;
(H) capital expenditures to facilitate
programs to improve the empowerment and
economic self-sufficiency of public housing
residents and to improve resident
participation;
(I) capital expenditures to improve the
security and safety of residents;
(J) homeownership activities, including
programs under section 32;
(K) improvement of energy and water-use
efficiency by installing fixtures and fittings
that conform to the American Society of
Mechanical Engineers/American National
Standards Institute standards A112.19.2-1998
and A112.18.1-2000, or any revision thereto,
applicable at the time of installation, and by
increasing energy efficiency and water
conservation by such other means as the
Secretary determines are appropriate; and
(L) integrated utility management and capital
planning to maximize energy conservation and
efficiency measures.
(2) Formula.-- The Secretary shall develop a formula
for determining the amount of assistance provided to
public housing agencies from the Capital Fund for a
fiscal year, which shall include a mechanism to reward
performance. The formula may take into account such
factors as--
(A) the number of public housing dwelling
units owned, assisted, or operated by the
public housing agency, the characteristics and
locations of the projects, and the
characteristics of the families served and to
be served (including the incomes of the
families);
(B) the need of the public housing agency to
carry out rehabilitation and modernization
activities, replacement housing, and
reconstruction, construction, and demolition
activities related to public housing dwelling
units owned, assisted, or operated by the
public housing agency, including backlog and
projected future needs of the agency;
(C) the cost of constructing and
rehabilitating property in the area;
(D) the need of the public housing agency to
carry out activities that provide a safe and
secure environment in public housing units
owned, assisted, or operated by the public
housing agency;
(E) any record by the public housing agency
of exemplary performance in the operation of
public housing, as indicated by the system of
performance indicators established pursuant to
section 6(j); and
(F) any other factors that the Secretary
determines to be appropriate.
(3) Conditions on use for development and
modernization.--
(A) Development.-- Except as otherwise
provided in this Act, any public housing
developed using amounts provided under this
subsection, or under section 14 as in effect
before the effective date under section 503(a)
of the Quality Housing and Work Responsibility
Act of 1998, shall be operated under the terms
and conditions applicable to public housing
during the 40-year period that begins on the
date on which the project (or stage of the
project) becomes available for occupancy.
(B) Modernization.-- Except as otherwise
provided in this Act, any public housing or
portion thereof that is modernized using
amounts provided under this subsection or under
section 14 (as in effect before the effective
date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998)
shall be maintained and operated under the
terms and conditions applicable to public
housing during the 20-year period that begins
on the latest date on which modernization is
completed.
(C) Applicability of latest expiration
date.-- Public housing subject to this
paragraph or to any other provision of law
mandating the operation of the housing as
public housing or under the terms and
conditions applicable to public housing for a
specified length of time, shall be maintained
and operated as required until the latest such
expiration date.
(e) Operating Fund.--
(1) In general.-- The Secretary shall establish an
Operating Fund for the purpose of making assistance
available to public housing agencies for the operation
and management of public housing, including--
(A) procedures and systems to maintain and
ensure the efficient management and operation
of public housing units (including amounts
sufficient to pay for the reasonable costs of
review by an independent auditor of the
documentation or other information maintained
pursuant to section 6(j)(6) by a public housing
agency or resident management corporation to
substantiate the performance of that agency or
corporation);
(B) activities to ensure a program of routine
preventative maintenance;
(C) anticrime and antidrug activities,
including the costs of providing adequate
security for public housing residents,
including above-baseline police service
agreements;
(D) activities related to the provision of
services, including service coordinators for
elderly persons or persons with disabilities;
(E) activities to provide for management and
participation in the management and policy
making of public housing by public housing
residents;
(F) the costs of insurance;
(G) the energy costs associated with public
housing units, with an emphasis on energy
conservation;
(H) the costs of administering a public
housing work program under section 12,
including the costs of any related insurance
needs;
(I) the costs of repaying, together with rent
contributions, debt incurred to finance the
rehabilitation and development of public
housing units, which shall be subject to such
reasonable requirements as the Secretary may
establish;
(J) the costs associated with the operation
and management of mixed finance projects, to
the extent appropriate; and
(K) the costs of operating computer centers
in public housing through a Neighborhood
Networks initiative described in subsection
(d)(1)(E), and of activities related to that
initiative.
(2) Formula.--
(A) In general.-- The Secretary shall
establish a formula for determining the amount
of assistance provided to public housing
agencies from the Operating Fund for a fiscal
year. The formula may take into account--
(i) standards for the costs of
operating and reasonable projections of
income, taking into account the
characteristics and locations of the
public housing projects and
characteristics of the families served
and to be served (including the incomes
of the families), or the costs of
providing comparable services as
determined in accordance with criteria
or a formula representing the
operations of a prototype well-managed
public housing project;
(ii) the number of public housing
dwelling units owned, assisted, or
operated by the public housing agency;
(iii) the number of public housing
dwelling units owned, assisted, or
operated by the public housing agency
that are chronically vacant and the
amount of assistance appropriate for
those units;
(iv) to the extent quantifiable, the
extent to which the public housing
agency provides programs and activities
designed to promote the economic self-
sufficiency and management skills of
public housing residents;
(v) the need of the public housing
agency to carry out anti-crime and
anti-drug activities, including
providing adequate security for public
housing residents;
(vi) the amount of public housing
rental income foregone by the public
housing agency as a result of escrow
savings accounts under section 23(d)(2)
for families participating in a family
self-sufficiency program of the agency
under such section 23; and
(vii) any other factors that the Secretary
determines to be appropriate.
(B) Incentive to increase certain rental
income.-- The formula shall provide an
incentive to encourage public housing agencies
to facilitate increases in earned income by
families in occupancy. Any such incentive shall
provide that the agency shall benefit from
increases in such rental income and that such
amounts accruing to the agency pursuant to such
benefit may be used only for low-income housing
or to benefit the residents of the public
housing agency.
(C) Treatment of savings.--
(i) In general.-- The treatment of
utility and waste management costs
under the formula shall provide that a
public housing agency shall receive the
full financial benefit from any
reduction in the cost of utilities or
waste management resulting from any
contract with a third party to
undertake energy conservation
improvements in one or more of its
public housing projects.
(ii) Third party contracts.--
Contracts described in clause (i) may
include contracts for equipment
conversions to less costly utility
sources, projects with resident-paid
utilities, and adjustments to frozen
base year consumption, including
systems repaired to meet applicable
building and safety codes and
adjustments for occupancy rates
increased by rehabilitation.
(iii) Term of contract.-- The total
term of a contract described in clause
(i) shall not exceed 20 years to allow
longer payback periods for retrofits,
including windows, heating system
replacements, wall insulation, site-
based generation, advanced energy
savings technologies, including
renewable energy generation, and other
such retrofits.
(iv) Existing contracts.-- The term
of a contract described in clause (i)
that, as of the date of enactment of
this clause, is in repayment and has a
term of not more than 12 years, may be
extended to a term of not more than 20
years to permit additional energy
conservation improvements without
requiring the reprocurement of energy
performance contractors.
(3) Condition on use.-- No portion of any public
housing project operated using amounts provided under
this subsection, or under this section as in effect
before the effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of 1998,
may be disposed of before the expiration of the 10-year
period beginning upon the conclusion of the fiscal year
for which such amounts were provided, except as
otherwise provided in this Act.
(f) Negotiated Rulemaking Procedure.--The formulas under
subsections (d)(2) and (e)(2) shall be developed according to
procedures for issuance of regulations under the negotiated
rulemaking procedure under subchapter III of chapter 5 of title
5, United States Code.
(g) Limitations on Use of Funds.--
(1) Flexibility [for capital fund amounts] in use of
funds .--
(A) Flexibility for capital fund amounts.--Of
any amounts appropriated for fiscal year 2000
or any fiscal year thereafter that are
allocated for fiscal year 2000 or any fiscal
year thereafter from the Capital Fund for any
public housing agency, the agency may use not
more than 20 percent for activities that are
eligible under subsection (e) for assistance
with amounts from the Operating Fund, but only
if the public housing agency plan for the
agency provides for such use.
(B) Flexibility for operating fund amounts.--
Of any amounts appropriated for fiscal year
2016 or any fiscal year thereafter that are
allocated for fiscal year 2016 or any fiscal
year thereafter from the Operating Fund for any
public housing agency, the agency may use not
more than 20 percent for activities that are
eligible under 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.
(2) Full flexibility for small pha's.-- Of any
amounts allocated for any fiscal year for any public
housing agency that owns or operates less than 250
public housing dwelling units, is not designated
pursuant to section 6(j)(2) as a troubled public
housing agency, and (in the determination of the
Secretary) is operating and maintaining its public
housing in a safe, clean, and healthy condition, the
agency may use any such amounts for any eligible
activities under subsections (d)(1) and (e)(1),
regardless of the fund from which the amounts were
allocated and provided. This subsection shall take
effect on the date of the enactment of the Quality
Housing and Work Responsibility Act of 1998.
(3) Limitation on new construction.--
(A) In general.-- Except as provided in
subparagraphs (B) and (C), a public housing
agency may not use any of the amounts allocated
for the agency from the Capital Fund or
Operating Fund for the purpose of constructing
any public housing unit, if such construction
would result in a net increase from the number
of public housing units owned, assisted, or
operated by the public housing agency on
October 1, 1999, including any public housing
units demolished as part of any revitalization
effort.
(B) Exception regarding use of assistance.--
A public housing agency may use amounts
allocated for the agency from the Capital Fund
or Operating Fund for the construction and
operation of housing units that are available
and affordable to low-income families in excess
of the limitations on new construction set
forth in subparagraph (A), but the formulas
established under subsections (d)(2) and (e)(2)
shall not provide additional funding for the
specific purpose of allowing construction and
operation of housing in excess of those
limitations (except to the extent provided in
subparagraph (C)).
(C) Exception regarding formulas.-- Subject
to reasonable limitations set by the Secretary,
the formulas established under subsections
(d)(2) and (e)(2) may provide additional
funding for the operation and modernization
costs (but not the initial development costs)
of housing in excess of amounts otherwise
permitted under this paragraph, and such
amounts may be so used, if--
(i) such units are part of a mixed-
finance project or otherwise leverage
significant additional private or
public investment; and
(ii) the estimated cost of the useful
life of the project is less than the
estimated cost of providing tenant-
based assistance under section 8(o) for
the same period of time.
(h) Technical Assistance.--To the extent amounts are provided
in advance in appropriations Acts, the Secretary may make
grants or enter into contracts or cooperative agreements in
accordance with this subsection for purposes of providing,
either directly or indirectly--
(1) technical assistance to public housing agencies,
resident councils, resident organizations, and resident
management corporations, including assistance relating
to monitoring and inspections;
(2) training for public housing agency employees and
residents;
(3) data collection and analysis;
(4) training, technical assistance, and education to
public housing agencies that are--
(A) at risk of being designated as troubled
under section 6(j), to assist such agencies
from being so designated; and
(B) designated as troubled under section
6(j), to assist such agencies in achieving the
removal of that designation;
(5) contract expertise;
(6) training and technical assistance to assist in
the oversight and management of public housing or
tenant-based assistance;
(7) clearinghouse services in furtherance of the
goals and activities of this subsection; and
(8) assistance in connection with the establishment
and operation of computer centers in public housing
through a Neighborhood Networks initiative described in
subsection (d)(1)(E).
As used in this subsection, the terms ``training'' and
``technical assistance'' shall include training or technical
assistance and the cost of necessary travel for participants in
such training or technical assistance, by or to officials and
employees of the Department and of public housing agencies, and
to residents and to other eligible grantees.
(i) Eligibility of Units Acquired From Proceeds of Sales
Under Demolition or Disposition Plan.--If a public housing
agency uses proceeds from the sale of units under a
homeownership program in accordance with section 32 to acquire
additional units to be sold to low-income families, the
additional units shall be counted as public housing for
purposes of determining the amount of the allocation to the
agency under this section until sale by the agency, but in no
case longer than 5 years.
(j) Penalty for Slow Expenditure of Capital Funds.--
(1) Obligation of amounts.-- Except as provided in
paragraph (4) and subject to paragraph (2), a public
housing agency shall obligate any assistance received
under this section not later than 24 months after, as
applicable--
(A) the date on which the funds become
available to the agency for obligation in the
case of modernization; or
(B) the date on which the agency accumulates
adequate funds to undertake modernization,
substantial rehabilitation, or new construction
of units.
(2) Extension of time period for obligation.-- The
Secretary--
(A) may, extend the time period under
paragraph (1) for a public housing agency, for
such period as the Secretary determines to be
necessary, if the Secretary determines that the
failure of the agency to obligate assistance in
a timely manner is attributable to--
(i) litigation;
(ii) obtaining approvals of the
Federal Government or a State or local
government;
(iii) complying with environmental
assessment and abatement requirements;
(iv) relocating residents;
(v) an event beyond the control of
the public housing agency; or
(vi) any other reason established by
the Secretary by notice published in
the Federal Register;
(B) shall disregard the requirements of
paragraph (1) with respect to any unobligated
amounts made available to a public housing
agency, to the extent that the total of such
amounts does not exceed 10 percent of the
original amount made available to the public
housing agency; and
(C) may, with the prior approval of the
Secretary, extend the time period under
paragraph (1), for an additional period not to
exceed 12 months, based on--
(i) the size of the public housing
agency;
(ii) the complexity of capital
program of the public housing agency;
(iii) any limitation on the ability
of the public housing agency to
obligate the amounts allocated for the
agency from the Capital Fund in a
timely manner as a result of State or
local law; or
(iv) such other factors as the
Secretary determines to be relevant.
(3) Effect of failure to comply.--
(A) Prohibition of new assistance.-- A public
housing agency shall not be awarded assistance
under this section for any month during any
fiscal year in which the public housing agency
has funds unobligated in violation of paragraph
(1) or (2).
(B) Withholding of assistance.-- During any
fiscal year described in subparagraph (A), the
Secretary shall withhold all assistance that
would otherwise be provided to the public
housing agency. If the public housing agency
cures its failure to comply during the year, it
shall be provided with the share attributable
to the months remaining in the year.
(C) Redistribution.-- The total amount of any
funds not provided public housing agencies by
operation of this paragraph shall be allocated
for agencies determined under section 6(j) to
be high-performing.
(4) Exception to obligation requirements.--
(A) In general.-- Subject to subparagraph
(B), if the Secretary has consented, before the
effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of
1998, to an obligation period for any agency
longer than provided under paragraph (1), a
public housing agency that obligates its funds
before the expiration of that period shall not
be considered to be in violation of paragraph
(1).
(B) Prior fiscal years.-- Notwithstanding
subparagraph (A), any funds appropriated to a
public housing agency for fiscal year 1997 or
prior fiscal years shall be fully obligated by
the public housing agency not later than
September 30, 1999.
(5) Expenditure of amounts.--
(A) In general.-- A public housing agency
shall spend any assistance received under this
section not later than 4 years (plus the period
of any extension approved by the Secretary
under paragraph (2)) after the date on which
funds become available to the agency for
obligation.
(B) Enforcement.-- The Secretary shall
enforce the requirement of subparagraph (A)
through default remedies up to and including
withdrawal of the funding.
(6) Right of recapture.-- Any obligation entered into
by a public housing agency shall be subject to the
right of the Secretary to recapture the obligated
amounts for violation by the public housing agency of
the requirements of this subsection.
(7) Treatment of replacement reserve.-- The
requirements of this subsection shall not apply to
funds held in replacement reserves established pursuant
to subsection (n).
(k) Treatment of Nonrental Income.--A public housing agency
that receives income from nonrental sources (as determined by
the Secretary) may retain and use such amounts without any
decrease in the amounts received under this section from the
Capital or Operating Fund. Any such nonrental amounts retained
shall be used only for low-income housing or to benefit the
residents assisted by the public housing agency.
(l) Provision of Only Capital or Operating Assistance.--
(1) Authority.-- In appropriate circumstances, as
determined by the Secretary, a public housing agency
may commit capital assistance only, or operating
assistance only, for public housing units, which
assistance shall be subject to all of the requirements
applicable to public housing except as otherwise
provided in this subsection.
(2) Exemptions.-- In the case of any public housing
unit assisted pursuant to the authority under paragraph
(1), the Secretary may, by regulation, reduce the
period under subsection (d)(3) or (e)(3), as
applicable, during which such units must be operated
under requirements applicable to public housing. In
cases in which there is commitment of operating
assistance but no commitment of capital assistance, the
Secretary may make section 8 requirements applicable,
as appropriate, by regulation.
(m) Treatment of Public Housing.--
(2) Reduction of asthma incidence.-- Notwithstanding
any other provision of this section, the New York City
Housing Authority may, in its sole discretion, from
amounts provided from the Operating and Capital Funds,
or from amounts provided for public housing before
amounts are made available from such Funds, use not
more than exceeding $500,000 per year for the purpose
of initiating, expanding or continuing a program for
the reduction of the incidence of asthma among
residents. The Secretary shall consult with the
Administrator of the Environmental Protection Agency
and the Secretary of Health and Human Services to
identify and consider sources of funding for the
reduction of the incidence of asthma among recipients
of assistance under this title.
(3) Services for elderly residents.-- Notwithstanding
any other provision of this section, the New York City
Housing Authority may, in its sole discretion, from
amounts provided from the Operating and Capital Funds,
or from amounts provided for public housing before the
amounts are made available from such Funds, use not
more than $600,000 per year for the purpose of
developing a comprehensive plan to address the need for
services for elderly residents. Such plan may be
developed by a partnership created by such Housing
Authority and may include the creation of a model
project for assisted living at one or more
developments. The model project may provide for
contracting with private parties for the delivery of
services.
(4) Effective date.-- This subsection shall apply to
fiscal year 1999 and each fiscal year thereafter.
(n) Establishment of Replacement Reserves.--
(1) In 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) Transfer of operating funds.-- In first
establishing a replacement reserve, the Secretary may
allow public housing agencies to transfer more than 20
percent of its operating funds into its replacement
reserve.
(4) Expenditure.-- Funds in a replacement reserve may
be used for purposes authorized by subsection (d)(1)
and 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.
* * * * * * *
eligibility for assisted housing
Sec. 16. (a) Income Eligibility for Public Housing.--
(1) Income mix within projects.-- A public housing
agency may establish and utilize income-mix criteria
for the selection of residents for dwelling units in
public housing projects, subject to the requirements of
this section.
(2) PHA income mix.--
(A) Targeting.-- Except as provided in
paragraph (4), of the public housing dwelling
units of a public housing agency made available
for occupancy in any fiscal year by eligible
families, not less than 40 percent shall be
occupied by families whose incomes at the time
of commencement of occupancy do not exceed 30
percent of the area median income, as
determined by the Secretary with adjustments
for smaller and larger families; except that
the Secretary may establish income ceilings
higher or lower than 30 percent of the area
median income on the basis of the Secretary's
findings that such variations are necessary
because of unusually high or low family
incomes.
(3) Prohibition of concentration of low-income
families.--
(A) Prohibition.-- A public housing agency
may not, in complying with the requirements
under paragraph (2), concentrate very low-
income families (or other families with
relatively low incomes) in public housing
dwelling units in certain public housing
projects or certain buildings within projects.
The Secretary shall review the income and
occupancy characteristics of the public housing
projects and the buildings of such projects of
such agencies to ensure compliance with the
provisions of this paragraph and paragraph (2).
(B) Deconcentration.--
(i) In general.-- A public housing
agency shall submit with its annual
public housing agency plan under
section 5A an admissions policy
designed to provide for deconcentration
of poverty and income-mixing by
bringing higher income tenants into
lower income projects and lower income
tenants into higher income projects.
This clause may not be construed to
impose or require any specific income
or racial quotas for any project or
projects.
(ii) Incentives.-- In implementing
the policy under clause (i), a public
housing agency may offer incentives for
eligible families having higher incomes
to occupy dwelling unit in projects
predominantly occupied by eligible
families having lower incomes, and
provide for occupancy of eligible
families having lower incomes in
projects predominantly occupied by
eligible families having higher
incomes.
(iii) Family choice.-- Incentives
referred to in clause (ii) may be made
available by a public housing agency
only in a manner that allows for the
eligible family to have the sole
discretion in determining whether to
accept the incentive and an agency may
not take any adverse action toward any
eligible family for choosing not to
accept an incentive and occupancy of a
project described in clause (i)(II),
Provided, That the skipping of a family
on a waiting list to reach another
family to implement the policy under
clause (i) shall not be considered an
adverse action. An agency implementing
an admissions policy under this
subparagraph shall implement the policy
in a manner that does not prevent or
interfere with the use of site-based
waiting lists authorized under section
6(s).
(4) Fungibility with tenant-based assistance.--
(A) Authority.-- Except as provided under
subparagraph (D), the number of public housing
dwelling units that a public housing agency
shall otherwise make available in accordance
with paragraph (2)(A) to comply with the
percentage requirement under such paragraph for
a fiscal year shall be reduced by the credit
number for the agency under subparagraph (B).
(B) Credit for exceeding tenant-based
assistance targeting requirement.-- Subject to
subparagraph (C), the credit number under this
subparagraph for a public housing agency for a
fiscal year shall be the number by which--
(i) the aggregate number of qualified
families who, in such fiscal year, are
initially provided tenant-based
assistance under section 8 by the
agency; exceeds
(ii) the number of qualified families
that is required for the agency to
comply with the percentage requirement
under subsection (b)(1) for such fiscal
year.
(C) Limitations on credit number.-- The
credit number under subparagraph (B) for a
public housing agency for a fiscal year may not
in any case exceed the lesser of--
(i) the number of dwelling units that
is equivalent to 10 percent of the
aggregate number of families initially
provided tenant-based assistance under
section 8 by the agency in such fiscal
year; or
(ii) the number of public housing
dwelling units of the agency that--
(I) are in projects that are
located in census tracts having
a poverty rate of 30 percent or
more; and
(II) are made available for
occupancy during such fiscal
year and are actually filled
only by families whose incomes
at the time of commencement of
such occupancy exceed 30
percent of the area median
income, as determined by the
Secretary with adjustments for
smaller and larger families.
(D) Fungibility floor.-- Notwithstanding any
authority under subparagraph (A), of the public
housing dwelling units of a public housing
agency made available for occupancy in any
fiscal year by eligible families, not less than
30 percent shall be occupied by families whose
incomes at the time of commencement of
occupancy do not exceed 30 percent of the area
median income, as determined by the Secretary
with adjustments for smaller and larger
families.
(E) Qualified family.-- For purposes of this
paragraph, the term ``qualified family'' means
a family having an income described in
subsection (b)(1).
(5) Limitations on tenancy for over-income
families.--
(A) Limitations.-- 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) Notice.-- In the case of any family
residing in a dwelling unit of public housing
whose income for a year has exceeded the
applicable income limitation under subparagraph
(C), upon the conclusion of such year the
public housing agency shall provide written
notice to such family of the requirements under
subparagraph (A).
(C) Income limitation.-- The income
limitation under this subparagraph shall be 120
percent of the median income for the area, as
determined by the Secretary with adjustments
for smaller and larger families, except that
the Secretary may establish income limitations
higher or lower than 120 percent of such median
income on the basis of the Secretary's findings
that such variations are necessary because of
prevailing levels of construction costs, or
unusually high or low family incomes, vacancy
rates, or rental costs.
(D) Exception.-- Subparagraph (A) shall not
apply to a family occupying a dwelling unit in
public housing pursuant to paragraph (5) of
section 3(a) (42 U.S.C. 1437a(a)(5)).
(E) Reports on over-income families and
waiting lists.-- The Secretary shall require
that each public housing agency shall--
(i) submit a report annually, in a
format required by the Secretary, that
specifies--
(I) the number of families
residing, as of the end of the
year for which the report is
submitted, in public housing
administered by the agency who
had incomes exceeding the
applicable income limitation
under subparagraph (C); and
(II) the number of families,
as of the end of such year, on
the waiting lists for admission
to public housing projects of
the agency; and
(ii) make the information reported
pursuant to clause (i) publicly
available.
(b) Income Eligibility for Tenant-Based Section 8
Assistance.--
(1) In general.-- Of the families initially provided
tenant-based assistance under section 8 by a public
housing agency in any fiscal year, not less than 75
percent shall be families whose incomes do not exceed
30 percent of the area median income, as determined by
the Secretary with adjustments for smaller and larger
families; except that the Secretary may establish
income ceilings higher or lower than 30 percent of the
area median income on the basis of the Secretary's
findings that such variations are necessary because of
unusually high or low family incomes.
(2) Jurisdictions served by multiple pha's.-- In the
case of any 2 or more public housing agencies that
administer tenant-based assistance under section 8 with
respect solely to identical geographical areas, such
agencies shall be treated as a single public housing
agency for purposes of paragraph (1).
(c) Income Eligibility for Project-Based Section 8
Assistance.--
(1) Pre-1981 act projects.-- Not more than 25 percent
of the dwelling units that were available for occupancy
under section 8 housing assistance payments contracts
under this Act before the effective date of the Housing
and Community Development Amendments of 1981, and which
will be leased on or after such effective date shall be
available for leasing by low-income families other than
very low-income families.
(2) Post-1981 act projects.-- Not more than 15
percent of the dwelling units which become available
for occupancy under section 8 housing assistance
payments contracts under this Act on or after the
effective date of the Housing and Community Development
Amendments of 1981 shall be available for leasing by
low-income families other than very low-income
families.
(3) Targeting.-- For each project assisted under a
contract for project-based assistance, of the dwelling
units that become available for occupancy in any fiscal
year that are assisted under the contract, not less
than 40 percent shall be available for leasing only by
extremely low-income families.
(4) Prohibition of skipping.-- In developing
admission procedures implementing paragraphs (1), (2),
and (3), the Secretary shall prohibit project owners
from selecting families for residence in an order
different from the order on the waiting list for the
purpose of selecting relatively higher income families
for residence. Nothing in this paragraph or this
subsection may be construed to prevent an owner of
housing assisted under a contract for project-based
assistance from establishing a preference for occupancy
in such housing for families containing a member who is
employed.
(5) Exception.-- The limitations established in
paragraphs (1), (2), and (3) shall not apply to
dwelling units made available under project-based
contracts under section 8 for the purpose of preventing
displacement, or ameliorating the effects of
displacement.
(6) Definition.-- For purposes of this subsection,
the term ``project-based assistance'' means assistance
under any of the following programs:
(A) The new construction or substantial
rehabilitation program under section 8(b)(2)
(as in effect before October 1, 1983).
(B) The property disposition program under
section 8(b) (as in effect before the effective
date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998).
(C) The loan management set-aside program
under subsections (b) and (v) of section 8.
(D) The project-based certificate program
under section 8(d)(2).
(E) The moderate rehabilitation program under
section 8(e)(2) (as in effect before October 1,
1991).
(F) The low-income housing preservation
program under Low-Income Housing Preservation
and Resident Homeownership Act of 1990 or the
provisions of the Emergency Low Income Housing
Preservation Act of 1987 (as in effect before
November 28, 1990).
(G) Section 8 (as in effect before the
effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of
1998), following conversion from assistance
under section 101 of the Housing and Urban
Development Act of 1965 or section 236(f)(2) of
the National Housing Act.
(d) Establishment of Different Standards.--Notwithstanding
subsection (a)(2) or (b)(1), if approved by the Secretary, a
public housing agency may for good cause establish and
implement, in accordance with the public housing agency plan,
an admission standard other than the standard under such
subsection.
(e) Eligibility for Assistance Based on Assets.--
(1) Limitation on assets.-- Subject to paragraph (3)
and notwithstanding any other provision of this Act, a
dwelling unit assisted under this Act may not be rented
and assistance under this Act may not be provided,
either initially or at each recertification of family
income, to any family--
(A) whose net family assets exceed $100,000,
as such amount is adjusted annually by applying
an inflationary factor as the Secretary
considers appropriate; or
(B) who has a present ownership interest in,
a legal right to reside in, and the effective
legal authority to sell, real property that is
suitable for occupancy by the family as a
residence, except that the prohibition under
this subparagraph shall not apply to--
(i) any property for which the family
is receiving assistance under
subsection (y) or (o)(12) of section 8
of this Act;
(ii) any person that is a victim of
domestic violence; or
(iii) any family that is offering
such property for sale.
(2) Net family assets.--
(A) In general.-- For purposes of this
subsection, the term ``net family assets''
means, for all members of the household, the
net cash value of all assets after deducting
reasonable costs that would be incurred in
disposing of real property, savings, stocks,
bonds, and other forms of capital investment.
Such term does not include interests in Indian
trust land, equity in property for which the
family is receiving assistance under subsection
(y) or (o)(12) of section 8, equity accounts in
homeownership programs 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;
(v) the value of any Coverdell
education savings account under section
530 of the Internal Revenue Code of
1986 or any qualified tuition program
under section 529 of such Code; and
(vi) such other exclusions as the
Secretary may establish.
(C) Trust funds.-- In cases in which a trust
fund has been established and the trust is not
revocable by, or under the control of, any
member of the family or 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) Net family assets.-- A public housing
agency or owner may determine the net assets of
a family, for purposes of this section, based
on a certification by the family that the net
assets of such family do not exceed $50,000, as
such amount is adjusted annually by applying an
inflationary factor as the Secretary considers
appropriate.
(B) No current real property ownership.-- A
public housing agency or owner may determine
compliance with paragraph (1)(B) based on a
certification by the family that such family
does not have any current ownership interest in
any real property at the time the agency or
owner reviews the family's income.
(C) Standardized forms.-- The Secretary may
develop standardized forms for the
certifications referred to in subparagraphs (A)
and (B).
(4) Compliance for public housing dwelling units.--
When recertifying family income with respect to
families residing in public housing dwelling units, a
public housing agency may, in the discretion of the
agency and only pursuant to a policy that is set forth
in the public housing agency plan under section 5A for
the agency, choose not to enforce the limitation under
paragraph (1).
(5) Enforcement.-- When recertifying the income of a
family residing in a dwelling unit assisted under this
Act, a public housing agency or owner may choose not to
enforce the limitation under paragraph (1) or may
establish exceptions to such limitation based on
eligibility criteria, but only pursuant to a policy
that is set forth in the public housing agency plan
under section 5A for the agency or under a policy
adopted by the owner. Eligibility criteria for
establishing exceptions may provide for separate
treatment based on family type and may be based on
different factors, such as age, disability, income, the
ability of the family to find suitable alternative
housing, and whether supportive services are being
provided.
(6) Authority to delay evictions.-- In the case of a
family residing in a dwelling unit assisted under this
Act who does not comply with the limitation under
paragraph (1), the public housing agency or project
owner may delay eviction or termination of the family
based on such noncompliance for a period of not more
than 6 months.
(f) Ineligibility of Individuals Convicted of Manufacturing
or Producing Methamphetamine On the Premises.--Notwithstanding
any other provision of law, a public housing agency shall
establish standards for occupancy in public housing dwelling
units and assistance under section 8 that--
(1) permanently prohibit occupancy in any public
housing dwelling unit by, and assistance under section
8 for, any person who has been convicted of
manufacturing or otherwise producing methamphetamine on
the premises in violation of any Federal or State law;
and
(2) immediately and permanently terminate the tenancy
in any public housing unit of, and the assistance under
section 8 for, any person who is convicted of
manufacturing or otherwise producing methamphetamine on
the premises in violation of any Federal or State law.
* * * * * * *
SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.
(a) Designation.--The Secretary shall, in consultation with
an interagency work group established by the Office of
Management and Budget, and considering State government
perspectives, 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;
(4) be consistent with and implement applicable
accounting principles;
(5) be implemented in a manner that is cost-
effective and improves program efficiency and
effectiveness; and
(6) be capable of being continually upgraded as
necessary.
(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.
* * * * * * *
----------
HOUSING ACT OF 1949
* * * * * * *
TITLE V--FARM HOUSING
* * * * * * *
loans for housing and buildings on adequate farms
Sec. 502. (a)(1) If the Secretary determines that an
applicant is eligible for assistance as provided in section 501
and that the applicant has the ability to repay in full the sum
to be loaned, with interest giving due consideration to the
income and earnings capacity of the applicant and his family
from the farm and other sources, and the maintenance of a
reasonable standard of living for the owner and the occupants
of said farm, a loan may be made by the Secretary to said
applicant for a period of not to exceed thirty-three years from
the making of the loan with interest. The Secretary may accept
the personal liability of any person with adequate repayment
ability who will cosign the applicant's note to compensate for
any deficiency in the applicant's repayment ability. At the
borrower's option, the borrower may prepay to the Secretary as
escrow agent, on terms and conditions prescribed by him, such
taxes, insurance, and other expenses as the Secretary may
require in accordance with section 501(e).
(2) The Secretary may extend the period of any loan made
under this section if the Secretary determines that such
extension is necessary to permit the making of such loan to any
person whose income does not exceed 60 per centum of the median
income for the area and who would otherwise be denied such loan
because the payments required under a shorter period would
exceed the financial capacity of such person. The aggregate
period for which any loan may be extended under this paragraph
may not exceed 5 years.
(3)(A) Notwithstanding any other provision of this title, a
loan may be made under this section for the purchase of a
dwelling located on land owned by a community land trust, if
the borrower and the loan otherwise meet the requirements
applicable to loans under this section.
(B) For purposes of this paragraph, the term ``community land
trust'' means a community housing development organization as
such term is defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (except that the requirements
under section 104(6)(C) and section 104(6)(D) shall not apply
for purposes of this paragraph)--
(i) that is not sponsored by a for-profit
organization;
(ii) that is established to carry out the activities
under clause (iii);
(iii) that--
(I) acquires parcels of land, held in
perpetuity, primarily for conveyance under
long-term ground leases;
(II) transfers ownership of any structural
improvements located on such leased parcels to
the lessees; and
(III) retains a preemptive option to purchase
any such structural improvement at a price
determined by formula that is designed to
ensure that the improvement remains affordable
to low- and moderate-income families in
perpetuity; and
(iv) that has its corporate membership open to any
adult resident of a particular geographic area
specified in the bylaws of the organization.
(b) The instruments under which the loan is made and the
security given shall--
(1) provide for security upon the applicant's equity
in the farm or such other security or collateral, if
any, as may be found necessary by the Secretary
reasonably to assure repayment of the indebtedness;
(2) provide for the repayment of principal and
interest in accordance with schedules and repayment
plans prescribed by the Secretary, except that any
prepayment of a loan made or insured under section 514
or 515 shall be subject to the provisions of subsection
(c);
(3) except for guaranteed loans, contain the
agreement of the borrower that he will, at the request
of the Secretary, proceed with diligence to refinance
the balance of the indebtedness through cooperative or
other responsible private credit sources whenever the
Secretary determines, in the light of the borrower's
circumstances, including his earning capacity and the
income from the farm, that he is able to do so upon
reasonable terms and conditions;
(4) be in such form and contain such covenants as the
Secretary shall prescribe to secure the payment of the
loan with interest, protect the security, and assure
that the farm will be maintained in repair and that
waste and exhaustion of the farm will be prevented.
(c)(1)(A) The Secretary may not accept an offer to prepay, or
request refinancing in accordance with subsection (b)(3) of,
any loan made or insured under section 514 or 515 of this title
pursuant to a contract entered into after December 21, 1979,
but before the date of the enactment of the Department of
Housing and Urban Development Reform Act of 1989, unless the
Secretary takes appropriate action which will obligate the
borrower (and successors in interest thereof) to utilize the
assisted housing and related facilities for the purposes
specified in section 514 or 515, as the case may be, for a
period of--
(i) fifteen years from the date on which the loan was
made in the case of a loan made or insured pursuant to
a contract entered into after December 21, 1979, but
before the date of the enactment of the Department of
Housing and Urban Development Reform Act of 1989, and
utilized for housing and related facilities which have
not received assistance under section 521 (a)(1)(B),
(a)(2), or (5) of this title or section 8 of the United
States Housing Act of 1937; or
(ii) twenty years from the date on which the loan was
made in the case of any or other such loan;
or until the Secretary determines (prior to the end of such
period) that there is no longer a need for such housing and
related facilities to be so utilized or that Federal or other
financial assistance provided to the residents of such housing
will no longer be provided.
(B) The Secretary may not accept an offer to prepay, or
request refinancing in accordance with subsection (b)(3) of,
any initial loan made or insured under section 515 pursuant to
a contract entered into on or after the date of the enactment
of the Department of Housing and Urban Development Reform Act
of 1989.
(2) If any loan which was made or insured under section 514
or 515 pursuant to a contract entered into prior to the date of
enactment of the Department of Housing and Urban Development
Reform Act of 1989, is prepaid or refinanced on or after the
date of enactment of the Housing and Community Development Act
of 1980, and tenants of the housing and related facilities
financed with such loan are displaced due to a change in the
use of the housing, or to an increase in rental or other
charges, as a result of such prepayment or refinancing, the
Secretary shall provide such tenants a priority for relocation
in alternative housing assisted pursuant to this title.
(3) Notice of offer to prepay.--Not less than 30 days after
receiving an offer to prepay any loan made or insured under
section 514 or 515, the Secretary shall provide written notice
of the offer or request to the tenants of the housing and
related facilities involved, to interested nonprofit
organizations, and to any appropriate State and local agencies.
(4)(A) Agreement by borrower to extend low income use.--
Before accepting any offer to prepay, or requesting refinancing
in accordance with subsection (b)(3) of, any loan made or
insured under section 514 or 515 pursuant to a contract entered
into prior to the date of enactment of the Department of
Housing and Urban Development Reform Act of 1989, the Secretary
shall make reasonable efforts to enter into an agreement with
the borrower under which the borrower will make a binding
commitment to extend the low income use of the assisted housing
and related facilities involved for not less than the 20-year
period beginning on the date on which the agreement is
executed.
(B) Assistance available to borrower to extend low income
use.--To the extent of amounts provided in appropriation Acts,
the agreement under subparagraph (A) may provide for 1 or more
of the following forms of assistance that the Secretary, after
taking into account local market conditions, determines to be
necessary to extend the low income use of the housing and
related facilities involved:
(i) Increase in the rate of return on investment.
(ii) Reduction of the interest rate on the loan
through the provision of interest credits under section
521(a)(1)(B), or additional assistance or an increase
in assistance provided under section 521(a)(5).
(iii) Additional rental assistance, or an increase in
assistance provided under existing contracts, under
section 521(a)(2) or under section 8 of the United
States Housing Act of 1937.
(iv) An equity loan to the borrower under paragraphs
(1) and (2) of section 515(c) or under paragraphs (1)
and (2) of section 514(j), except that an equity loan
referred to in this clause may not be made available
after the date of the enactment of the Act entitled
``An Act making appropriations for Agriculture, Rural
Development, Food and Drug Administration, and Related
Agencies programs for the fiscal year ending September
30, 1997, and for other purposes'', unless the
Secretary determines that the other incentives
available under this subparagraph are not adequate to
provide a fair return on the investment of the
borrower, to prevent prepayment of the loan insured
under section 514 or 515, or to prevent the
displacement of tenants of the housing for which the
loan was made.
(v) Incremental rental assistance in connection with
loans under clauses (ii) and (iv) to the extent
necessary to avoid increases in the rental payments of
current tenants not receiving rental assistance under
section 521(a)(2) or under section 8 of the United
States Housing Act of 1937, or current tenants of
projects not assisted under section 521(a)(5).
(vi) In the case of a project that has received
rental assistance under section 8 of the United States
Housing Act of 1937, permitting the owner to receive
rent in excess of the amount determined necessary by
the Secretary to defray the cost of long-term repair or
maintenance of such a project.
(C) Approval of assistance.--The Secretary may approve
assistance under subparagraph (B) for assisted housing only if
the restrictive period has expired for any loan for the housing
made or insured under section 514 or 515 pursuant to a contract
entered into after December 21, 1979, but before the date of
the enactment of the Department of Housing and Urban
Development Reform Act of 1989, and the Secretary determines
that the combination of assistance provided--
(i) is necessary to provide a fair return on the
investment of the borrower; and
(ii) is the least costly alternative for the Federal
Govern- ment that is consistent with carrying out the
purposes of this subsection.
(5)(A) Offer to sell to nonprofit organizations and public
agencies.--
(i) In general.-- If the Secretary determines after a
reasonable period that an agreement will not be entered
into with a borrower under paragraph (4), the Secretary
shall require the borrower (except as provided in
subparagraph (G)) to offer to sell the assisted housing
and related facilities involved to any qualified
nonprofit organization or public agency at a fair
market value determined by 2 independent appraisers,
one of whom shall be selected by the Secretary and one
of whom shall be selected by the borrower. If the 2
appraisers fail to agree on the fair market value, the
Secretary and the borrower shall jointly select a third
appraiser, whose appraisal shall be binding on the
Secretary and the borrower.
(ii) Period for which requirement applicable.-- If,
upon the expiration of 180 days after an offer is made
to sell housing and related facilities under clause
(i), no qualified nonprofit organization or public
agency has made a bona fide offer to purchase, the
Secretary may accept the offer to prepay, or may
request refinancing in accordance with subsection
(b)(3) of, the loan. This clause shall apply only when
funds are available for purposes of carrying out a
transfer under this paragraph.
(B) Qualified nonprofit organizations and public agencies.--
(i) Local nonprofit organization or public agency.--
A local nonprofit organization or public agency may
purchase housing and related facilities under this
paragraph only if--
(I) the organization or agency is determined
by the Secretary to be capable of managing the
housing and related facilities (either directly
or through a contract) for the remaining useful
life of the housing and related facilities; and
(II) the organization or agency has entered
into an agreement that obligates it (and
successors in interest thereof) to maintain the
housing and related facilities as affordable
for very low-income families or persons and low
income families or persons for the remaining
useful life of the housing and related
facilities.
(ii) National or regional nonprofit organization.--
If the Secretary determines that there is no local
nonprofit organization or public agency qualified to
purchase the housing and related facilities involved,
the Secretary shall require the borrower to offer to
sell the assisted housing and related facilities to an
existing qualified national or regional nonprofit
organization.
(iii) Selection of qualified purchaser.-- The
Secretary shall promulgate regulations that establish
criteria for selecting a qualified nonprofit
organization or public agency to purchase housing and
related facilities when more than 1 such organization
or agency has made a bona fide offer. Such regulations
shall give a priority to those organizations or
agencies with the greatest experience in developing or
managing low income housing or community development
projects and with the longest record of service to the
community.
(C) Financing of sale.--To facilitate the sale described in
subparagraph (A), the Secretary shall--
(i) to the extent provided in appropriation Acts,
make an advance to the nonprofit organization or public
agency whose offer to purchase is accepted under this
paragraph to cover any direct costs (other than the
purchase price) incurred by the organization or agency
in purchasing and assuming responsibility for the
housing and related facilities involved;
(ii) approve the assumption, by the nonprofit
organization or public agency involved, of the loan
made or insured under section 514 or 515;
(iii) to the extent provided in appropriation Acts,
transfer any rental assistance payments that are
received under section 521(a)(2)(A) or under section 8
of the United States Housing Act of 1937, or any
assistance payments received under section 521(a)(5),
with respect to the housing and related facilities
involved; and
(iv) to the extent provided in appropriation Acts,
provide a loan under section 515(c)(3) to the nonprofit
organization or public agency whose offer to purchase
is accepted under this paragraph to enable the
organization or agency to purchase the housing and
related facilities involved.
(D) Rent limitation and assistance.--The Secretary shall, to
the extent provided in appropriation Acts, provide to each
nonprofit organization or public agency purchasing housing and
related facilities under this paragraph financial assistance
(in the form of monthly payments or forgiveness of debt) in an
amount necessary to ensure that the monthly rent payment made
by each low income family or person residing in the housing
does not exceed the maximum rent permitted under section
521(a)(2)(A) or, in the case of housing assisted under section
521(a)(5), does not exceed the rents established for the
project under such section.
(E) Restriction on subsequent transfers.--Except as provided
in subparagraph (B)(ii), the Secretary may not approve the
transfer of any housing and related facilities purchased under
this paragraph during the remaining useful life of the housing
and related facilities, unless the Secretary determines that--
(i) the transfer will further the provision of
housing and related facilities for low income families
or persons; or
(ii) there is no longer a need for such housing and
related facilities by low income families or persons.
(F) General restriction on prepayments and refinancings.--
Following the transfer of the maximum number of dwelling units
set forth in subparagraph (H)(i) in any fiscal year or the
maximum number of dwelling units for which budget authority is
available in any fiscal year, the Secretary may not accept in
such fiscal year any offer to prepay, or request refinancing in
accordance with subsection (b)(3) of, any loan made or insured
under section 514 or 515 pursuant to a contract entered into
prior to the date of enactment of the Department of Housing and
Urban Development Reform Act of 1989, except in accordance with
subparagraph (G). The limitation established in this
subparagraph shall not apply to an offer to prepay, or request
to refinance, if, following the date on which such offer or
request is made (or following the date of the enactment of the
Housing and Community Development Act of 1987, whichever occurs
later) a 15-month period expires during which no budget
authority is available to carry out this paragraph. For
purposes of this subparagraph, the Secretary shall allocate
budget authority under this paragraph in the order in which
offers to prepay, or request to refinance, are made.
(G) Exception.--This paragraph shall not apply to any offer
to prepay, or any request to refinance in accordance with
subsection (b)(3), any loan made or insured under section 514
or 515 pursuant to a contract entered into prior to the date of
enactment of the Department of Housing and Urban Development
Reform Act of 1989, if--
(i) the borrower enters into an agreement with the
Secretary that obligates the borrower (and successors
in interest thereof)--
(I) to utilize the assisted housing and
related facilities for the purposes specified
in section 514 or 515, as the case may be, for
a period determined by the Secretary (but not
less than the period described in paragraph
(1)(B) calculated from the date on which the
loan is made or insured); and
(II) upon termination of the period described
in paragraph (1)(B), to offer to sell the
assisted housing and related facilities to a
qualified nonprofit organization or public
agency in accordance with this paragraph; or
(ii) the Secretary determines that housing
opportunities of minorities will not be materially
affected as a result of the prepayment or refinancing,
and that--
(I) the borrower (and any successor in
interest thereof) are obligated to ensure that
tenants of the housing and related facilities
financed with the loan will not be displaced
due to a change in the use of the housing, or
to an increase in rental or other charges, as a
result of the prepayment or refinancing; or
(II) there is an adequate supply of safe,
decent, and affordable rental housing within
the market area of the housing and related
facilities and sufficient actions have been
taken to ensure that the rental housing will be
made available to each tenant upon
displacement.
(H) Funding.--
(i) Budget limitation.-- Not more than 5,000 dwelling
units may be transferred under this paragraph in any
fiscal year, and the budget authority that may be
provided under this paragraph for any fiscal year may
not exceed the amounts required to carry out this
paragraph with respect to such number.
(ii) Reimbursement of rural housing insurance fund.--
There are authorized to be appropriated to the Rural
Housing Insurance Fund such sums as may be necessary to
reimburse the Fund for financial assistance provided
under this paragraph, paragraph (4), and section
517(j)(7).
(I) Definitions.--For purposes of this paragraph:
(i) Local nonprofit organization.-- The term ``local
nonprofit organization'' means a nonprofit organization
that--
(I) has a broad based board reflecting
various interests in the community or trade
area; and
(II) is a non-for-profit charitable
organization whose principal purposes include
developing or managing low income housing or
community development projects.
(ii) Nonprofit organization.-- The term ``nonprofit
organization'' means any private organization--
(I) no part of the net earnings of which
inures to the benefit of any member, founder,
contributor, or individual;
(II) that is approved by the Secretary as to
financial responsibility; and
(III) that does not have among its officers
or directorate persons or parties with a
material interest (or persons or parties
related to any person or party with such an
interest) in loans financed under section 515
that have been prepaid.
(J) Regulations.--Notwithstanding section 534, the Secretary
shall issue final regulations to carry out this paragraph not
later than 60 days after the date of the enactment of the
Housing and Community Development Act of 1987. The Secretary
shall provide for the regulations to take effect not later than
45 days after the date on which the regulations are issued.
(d) On and after the effective date of the Rural Housing
Amendments of 1983--
(1) not less than 40 percent of the funds approved in
appropriation Acts for use under this section shall be
set aside and made available only for very low-income
families or persons; and
(2) not less than 30 percent of the funds allocated
to each State under this section shall be available
only for very low-income families or persons.
(e)(1) A loan which may be made or insured under this section
with respect to housing shall be made or insured with respect
to a manufactured home or with respect to a manufactured home
and lot, whether such home or such home and lot is real
property, personal property, or mixed real and personal
property, if--
(A) the manufactured home meets the standards
prescribed pursuant to title VI of the Housing and
Community Development Act of 1974;
(B) the manufactured home, or the manufactured home
and lot, meets the installation, structural, and site
requirements which would apply under title II of the
National Housing Act; and
(C) the manufactured home meets the energy conserving
requirements established under paragraph (2), or until
the energy conserving requirements are established
under paragraph (2), the manufactured home meets the
energy conserving requirements applicable to housing
other than manufactured housing financed under this
title.
(2) Energy conserving requirements established by the
Secretary for the purpose of paragraph (1)(C) shall--
(A) reduce the operating costs for a borrower by
maximizing the energy savings and be cost-effective
over the life of the manufactured home or the term of
the loan, whichever is shorter, taking into account
variations in climate, types of energy used, the cost
to modify the home to meet such requirements, and the
estimated value of the energy saved over the term of
the mortgage; and
(B) be established so that the increase in the annual
loan payment resulting from the added energy conserving
requirements in excess of those required by the
standards prescribed under title VI of the Housing and
Community Development Act of 1974 shall not exceed the
projected savings in annual energy costs.
(3) A loan that may be made or insured under this section
with respect to a manufactured home on a permanent foundation,
or a manufactured home on a permanent foundation and a lot,
shall be repayable over the same period as would be applicable
under section 203(b) of the National Housing Act.
(f) Remote Rural Areas.--
(1) Loan supplements.-- The Secretary may supplement
any loan under this section to finance housing located
in a remote rural area or on tribal allotted or Indian
trust land with a grant in an amount not greater than
the amount by which the reasonable land acquisition and
construction costs of the security property exceeds the
appraised value of such property.
(2) Prohibition.-- The Secretary may not refuse to
make, insure, or guarantee a loan that otherwise meets
the requirements under this section solely on the basis
that the housing involved is located in an area that is
excessively rural in character or excessively remote or
on tribal allotted or Indian trust land.
(g) Deferred Mortgage Demonstration.--
(1) Authority.-- With respect to families or persons
otherwise eligible for assistance under subsection (d)
but having incomes below the amount determined to
qualify for a loan under this section, the Secretary
may defer mortgage payments beyond the amount
affordable at 1 percent interest, taking into
consideration income, taxes and insurance. Deferred
mortgage payments shall be converted to payment status
when the ability of the borrower to repay improves.
Deferred amounts shall not exceed 25 percent of the
amount of the payment due at 1 percent interest and
shall be subject to recapture.
(2) Interest.-- Interest on principal deferred shall
be set at 1 percent and any interest payments deferred
under this subsection shall not be treated as principal
in calculating indebtedness.
(3) Funding.-- Subject to approval in appropriations
Acts, not more than 10 percent of the amount approved
for each of fiscal years 1993 and 1994 for loans under
this section may be used to carry out this subsection.
(h) Doug Bereuter Section 502 Single Family Housing Loan
Guarantee Program.--
(1) Short title.-- This subsection may be cited as
the ``Doug Bereuter Section 502 Single Family Housing
Loan Guarantee Act''.
(2) Authority.-- The Secretary shall, to the extent
provided in appropriation Acts, provide guaranteed
loans in accordance with this section, section 517(d),
and the last sentence of section 521(a)(1)(A), except
as modified by the provisions of this subsection. Loans
shall be guaranteed under this subsection in an amount
equal to 90 percent of the loan.
(3) Eligible borrowers.-- Loans guaranteed pursuant
to this subsection shall be made only to borrowers who
are low or moderate income families or persons, whose
incomes do not exceed 115 percent of the median income
of the area, as determined by the Secretary.
(4) Eligible housing.-- Loans may be guaranteed
pursuant to this subsection only if the loan is used to
acquire or construct a single-family residence that
is--
(A) to be used as the principal residence of
the borrower;
(B) eligible for assistance under this
section, section 203(b) of the National Housing
Act, or chapter 37 of title 38, United States
Code; and
(C) located in a rural area
(5) Priority and counseling for first-time
homebuyers.--
(A) In providing guaranteed loans under this
subsection, the Secretary shall give priority
to first-time homebuyers (as defined in
paragraph (17)).
(B) The Secretary may require that, as a
condition of receiving a guaranteed loan
pursuant to this subsection, a borrower who is
a first-time homebuyer successfully complete a
program of homeownership counseling under
section 106(a)(1)(iii) of the Housing and Urban
Development Act of 1968 and obtain
certification from the provider of the program
that the borrower is adequately prepared for
the obligations of homeownership.
(6) Eligible lenders.-- Guaranteed loans pursuant to
this subsection may be made only by lenders approved by
and meeting qualifications established by the
Secretary.
(7) Loan terms.-- Loans guaranteed pursuant to this
subsection shall--
(A) be made for a term not to exceed 30
years;
(B) involve a rate of interest that is fixed
over the term of the loan and does not exceed
the rate for loans guaranteed under chapter 37
of title 38, United States Code, or comparable
loans in the area that are not guaranteed; and
(C) involve a principal obligation (including
initial service charges, appraisal, inspection,
and other fees as the Secretary may approve)--
(i) for a first-time homebuyer, in
any amount not in excess of 100 percent
of the appraised value of the property
as of the date the loan is accepted or
the acquisition cost of the property,
whichever is less, plus the guarantee
fee as authorized by subsection (h)(7);
and
(ii) for any borrower other than a
first-time homebuyer, in an amount not
in excess of the percentage of the
property or the acquisition cost of the
property that the Secretary shall
determine, such percentage or cost in
any event not to exceed 100 percent of
the appraised value of the property as
of the date the loan is accepted or the
acquisition cost of the property,
whichever is less, plus the guarantee
fee as authorized by subsection (h)(7).
(8) Fees.-- Notwithstanding paragraph (14)(D), with
respect to a guaranteed loan issued or modified under
this subsection, the Secretary may collect from the
lender--
(A) at the time of issuance of the guarantee
or modification, a fee not to exceed 3.5
percent of the principal obligation of the
loan; and
(B) an annual fee not to exceed 0.5 percent
of the outstanding principal balance of the
loan for the life of the loan.
(9) Refinancing.-- Any guaranteed loan under this
subsection may be refinanced and extended in accordance
with terms and conditions that the Secretary shall
prescribe, but in no event for an additional amount or
term which exceeds the limitations under this
subsection.
(10) Nonassumption.-- Notwithstanding the transfer of
property for which a guaranteed loan under this
subsection was made, the borrower of a guaranteed loan
under this subsection may not be relieved of liability
with respect to the loan.
(11) Geographical targeting.-- In providing
guaranteed loans under this subsection, the Secretary
shall establish standards to target and give priority
to areas that have a demonstrated need for additional
sources of mortgage financing for low and moderate
income families.
(12) Allocation.-- The Secretary shall provide that,
in each fiscal year, guaranteed loans under this
subsection shall be allocated among the States on the
basis of the need of eligible borrowers in each State
for such loans in comparison with the need of eligible
borrowers for such loans among all States.
(13) Loss mitigation.-- Upon default or imminent
default of any mortgage guaranteed under this
subsection, mortgagees shall engage in loss mitigation
actions for the purpose of providing an alternative to
foreclosure (including actions such as special
forbearance, loan modification, pre-foreclosure sale,
deed in lieu of foreclosure, as required, support for
borrower housing counseling, subordinate lien
resolution, and borrower relocation), as provided for
by the Secretary.
(14) Payment of partial claims and mortgage
modifications.-- The Secretary may authorize the
modification of mortgages, and establish a program for
payment of a partial claim to a mortgagee that agrees
to apply the claim amount to payment of a mortgage on a
1- to 4-family residence, for mortgages that are in
default or face imminent default, as defined by the
Secretary. Any payment under such program directed to
the mortgagee shall be made at the sole discretion of
the Secretary and on terms and conditions acceptable to
the Secretary, except that--
(A) the amount of the partial claim payment
shall be in an amount determined by the
Secretary, and shall not exceed an amount
equivalent to 30 percent of the unpaid
principal balance of the mortgage and any costs
that are approved by the Secretary;
(B) the amount of the partial claim payment
shall be applied first to any outstanding
indebtedness on the mortgage, including any
arrearage, but may also include principal
reduction;
(C) the mortgagor shall agree to repay the
amount of the partial claim to the Secretary
upon terms and conditions acceptable to the
Secretary;
(D) expenses related to a partial claim or
modification are not to be charged to the
borrower;
(E) the Secretary may authorize compensation
to the mortgagee for lost income on monthly
mortgage payments due to interest rate
reduction;
(F) the Secretary may reimburse the mortgagee
from the appropriate guaranty fund in
connection with any activities that the
mortgagee is required to undertake concerning
repayment by the mortgagor of the amount owed
to the Secretary;
(G) the Secretary may authorize payments to
the mortgagee on behalf of the borrower, under
such terms and conditions as are defined by the
Secretary, based on successful performance
under the terms of the mortgage modification,
which shall be used to reduce the principal
obligation under the modified mortgage; and
(H) the Secretary may authorize the
modification of mortgages with terms extended
up to 40 years from the date of modification.
(15) Assignment.--
(A) Program authority.-- The Secretary may
establish a program for assignment to the
Secretary, upon request of the mortgagee, of a
mortgage on a 1- to 4-family residence
guaranteed under this chapter.
(B) Program requirements.--
(i) In general.-- The Secretary may
encourage loan modifications for
eligible delinquent mortgages or
mortgages facing imminent default, as
defined by the Secretary, through the
payment of the guaranty and assignment
of the mortgage to the Secretary and
the subsequent modification of the
terms of the mortgage according to a
loan modification approved under this
section.
(ii) Acceptance of assignment.-- The
Secretary may accept assignment of a
mortgage under a program under this
subsection only if--
(I) the mortgage is in
default or facing imminent
default;
(II) the mortgagee has
modified the mortgage or
qualified the mortgage for
modification sufficient to cure
the default and provide for
mortgage payments the mortgagor
is reasonably able to pay, at
interest rates not exceeding
current market interest rates;
and
(III) the Secretary arranges
for servicing of the assigned
mortgage by a mortgagee (which
may include the assigning
mortgagee) through procedures
that the Secretary has
determined to be in the best
interests of the appropriate
guaranty fund.
(C) Payment of guaranty.-- Under the program
under this paragraph, the Secretary may pay the
guaranty for a mortgage, in the amount
determined in accordance with paragraph (2),
without reduction for any amounts modified, but
only upon the assignment, transfer, and
delivery to the Secretary of all rights,
interest, claims, evidence, and records with
respect to the mortgage, as defined by the
Secretary.
(D) Disposition.-- After modification of a
mortgage pursuant to this paragraph, and
assignment of the mortgage, the Secretary may
provide guarantees under this subsection for
the mortgage. The Secretary may subsequently--
(i) re-assign the mortgage to the
mortgagee under terms and conditions as
are agreed to by the mortgagee and the
Secretary;
(ii) act as a Government National
Mortgage Association issuer, or
contract with an entity for such
purpose, in order to pool the mortgage
into a Government National Mortgage
Association security; or
(iii) re-sell the mortgage in
accordance with any program that has
been established for purchase by the
Federal Government of mortgages insured
under this title, and the Secretary may
coordinate standards for interest rate
reductions available for loan
modification with interest rates
established for such purchase.
(E) Loan servicing.-- In carrying out the
program under this subsection, the Secretary
may require the existing servicer of a mortgage
assigned to the Secretary under the program to
continue servicing the mortgage as an agent of
the Secretary during the period that the
Secretary acquires and holds the mortgage for
the purpose of modifying the terms of the
mortgage. If the mortgage is resold pursuant to
subparagraph (D)(iii), the Secretary may
provide for the existing servicer to continue
to service the mortgage or may engage another
entity to service the mortgage.
(16) Definitions.-- For purposes of this subsection:
(A) The term ``displaced homemaker'' means an
individual who--
(i) is an adult;
(ii) has not worked full-time full-
year in the labor force for a number of
years but has, during such years,
worked primarily without remuneration
to care for the home and family; and
(iii) is unemployed or underemployed
and is experiencing difficulty in
obtaining or upgrading employment.
(B) The term ``first-time homebuyer'' means
any individual who (and whose spouse) has had
no present ownership in a principal residence
during the 3-year period ending on the date of
purchase of the property acquired with a
guaranteed loan under this subsection except
that--
(i) any individual who is a displaced
homemaker may not be excluded from
consideration as a first-time homebuyer
under this subparagraph on the basis
that the individual, while a homemaker,
owned a home with his or her spouse or
resided in a home owned by the spouse;
and
(ii) any individual who is a single
parent may not be excluded from
consideration as a first-time homebuyer
under this subparagraph on the basis
that the individual, while married,
owned a home with his or her spouse or
resided in a home owned by the spouse.
(C) The term ``single parent'' means an
individual who--
(i) is unmarried or legally separated
from a spouse; and
(ii)(I) has 1 or more minor children
for whom the individual has custody or
joint custody; or
(II) is pregnant.
(D) The term ``State'' means the States of
the United States, the Commonwealth of Puerto
Rico, the District of Columbia, the
Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, the
Trust Territories of the Pacific, and any other
possession of the United States.
(17) Guarantees for refinancing loans.--
(A) In general.-- Upon the request of the
borrower, the Secretary shall, to the extent
provided in appropriation Acts and subject to
subparagraph (F), guarantee a loan that is made
to refinance an existing loan that is made
under this section or guaranteed under this
subsection, and that the Secretary determines
complies with the requirements of this
paragraph.
(B) Interest rate.-- To be eligible for a
guarantee under this paragraph, the refinancing
loan shall have a rate of interest that is
fixed over the term of the loan and does not
exceed the interest rate of the loan being
refinanced.
(C) Security.-- To be eligible for a
guarantee under this paragraph, the refinancing
loan shall be secured by the same single-family
residence as was the loan being refinanced,
which shall be owned by the borrower and
occupied by the borrower as the principal
residence of the borrower.
(D) Amount.-- To be eligible for a guarantee
under this paragraph, the principal obligation
under the refinancing loan shall not exceed an
amount equal to the sum of the balance of the
loan being refinanced and such closing costs as
may be authorized by the Secretary, which shall
include a discount not exceeding 200 basis
points and an origination fee not exceeding
such amount as the Secretary shall prescribe.
(E) Other requirements.-- The provisions of
the last sentence of paragraph (2) and
paragraphs (3), (6), (7)(A), (8), and (10)
shall apply to loans guaranteed under this
paragraph, and no other provisions of
paragraphs (2) through (13) shall apply to such
loans.
(F) Authority to establish limitation.-- The
Secretary may establish limitations on the
number of loans guaranteed under this
paragraph, which shall be based on market
conditions and other factors as the Secretary
considers appropriate.
(18) Delegation of approval.-- The Secretary may
delegate, 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.
* * * * * * *
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NATIONAL HOUSING ACT
* * * * * * *
TITLE II--MORTGAGE INSURANCE
* * * * * * *
insurance of mortgages
Sec. 203. (a) The Secretary is authorized, upon application
by the mortgagee, to insure as hereinafter provided any
mortgage offered to him which is eligible for insurance as
hereinafter provided, and, upon such terms as the Secretary may
prescribe, to make commitments for the insuring of such
mortgages prior to the date of their execution or disbursement
thereon.
(b) To be eligible for insurance under this section a
mortgage shall comply with the following:
(1) Have been made to, and be held by, a mortgagee
approved by the Secretary as responsible and able to
service the mortgage properly.
(2) Involve a principal obligation (including such
initial service charges, appraisal, inspection, and
other fees as the Secretary shall approve) in an
amount--
(A) not to exceed the lesser of--
(i) in the case of a 1-family
residence, 115 percent of the median 1-
family house price in the area, as
determined by the Secretary; and in the
case of a 2-, 3-, or 4-family
residence, the percentage of such
median price that bears the same ratio
to such median price as the dollar
amount limitation determined under the
sixth sentence of section 305(a)(2) of
the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454(a)(2))
for a 2-, 3-, or 4-family residence,
respectively, bears to the dollar
amount limitation determined under such
section for a 1-family residence; or
(ii) 150 percent of the dollar amount
limitation determined under the sixth
sentence of such section 305(a)(2) for
a residence of applicable size;
except that the dollar amount limitation in
effect under this subparagraph for any size
residence for any area may not be less than the
greater of: (I) the dollar amount limitation in
effect under this section for the area on
October 21, 1998; or (II) 65 percent of the
dollar amount limitation determined under the
sixth sentence of such section 305(a)(2) for a
residence of the applicable size; and
(B) not to exceed 100 percent of the
appraised value of the property.
For purposes of the preceding sentence, the term
``area'' means a metropolitan statistical area as
established by the Office of Management and Budget; and
the median 1-family house price for an area shall be
equal to the median 1-family house price of the county
within the area that has the highest such median price.
Notwithstanding any other provision of this
paragraph, the amount which may be insured under this
section may be increased by up to 20 percent if such
increase is necessary to account for the increased cost
of the residence due to the installation of a solar
energy system (as defined in subparagraph (3) of the
last paragraph of section 2(a) of this Act) therein.
Notwithstanding any other provision of this
paragraph, the Secretary may not insure, or enter into
a commitment to insure, a mortgage under this section
that is executed by a first-time homebuyer and that
involves a principal obligation (including such initial
service charges, appraisal, inspection, and other fees
as the Secretary shall approve) in excess of 97 percent
of the appraised value of the property unless the
mortgagor has completed a program of counseling with
respect to the responsibilities and financial
management involved in homeownership that is approved
by the Secretary; except that the Secretary may, in the
discretion of the Secretary, waive the applicability of
this requirement.
(3) Have a maturity satisfactory to the Secretary,
but not to exceed, in any event, thirty-five years (or
thirty years if such mortgage is not approved for
insurance prior to construction) from the date of the
beginning of amortization of the mortgage.
(4) Contain complete amortization provisions
satisfactory to the Secretary requiring periodic
payments by the mortgagor not in excess of his
reasonable ability to pay as determined by the
Secretary.
(5) Bear interest at such rate as may be agreed upon
by the mortgagor and the mortgagee.
(6) Provide, in a manner satisfactory to the
Secretary, for the application of the mortgagor's
periodic payments (exclusive of the amount allocated to
interest and to the premium charge which is required
for mortgage insurance as hereinafter provided) to
amortization of the principal of the mortgage.
(7) Contain such terms and provisions with respect to
insurance, repairs, alterations, payment of taxes,
default reserves, delinquency charges, foreclosure
proceedings, anticipation of maturity, additional and
secondary liens, and other matters as the Secretary may
in his discretion prescribe.
(9) Cash investment requirement.--
(A) In general.-- A mortgage insured under
this section shall be executed by a mortgagor
who shall have paid, in cash or its equivalent,
on account of the property an amount equal to
not less than 3.5 percent of the appraised
value of the property or such larger amount as
the Secretary may determine.
(B) Family members.-- For purposes of this
paragraph, the Secretary shall consider as cash
or its equivalent any amounts borrowed from a
family member (as such term is defined in
section 201), subject only to the requirements
that, in any case in which the repayment of
such borrowed amounts is secured by a lien
against the property, that--
(i) such lien shall be subordinate to
the mortgage; and
(ii) the sum of the principal
obligation of the mortgage and the
obligation secured by such lien may not
exceed 100 percent of the appraised
value of the property plus any initial
service charges, appraisal, inspection,
and other fees in connection with the
mortgage.
(C) Prohibited sources.-- In no case shall
the funds required by subparagraph (A) consist,
in whole or in part, of funds provided by any
of the following parties before, during, or
after closing of the property sale:
(i) The seller or any other person or
entity that financially benefits from
the transaction.
(ii) Any third party or entity that
is reimbursed, directly or indirectly,
by any of the parties described in
clause (i).
This subparagraph shall apply only to mortgages
for which the mortgagee has issued credit
approval for the borrower on or after October
1, 2008.
(c)(1) The Secretary is authorized to fix premium charge for
the insurance of mortgages under the separate sections of this
title but in the case of any mortgage such charge shall be not
less than an amount equivalent to one-fourth of 1 per centum
per annum nor more than an amount equivalent to 1 per centum
per annum of the amount of the principal obligation of the
mortgage outstanding at any time, without taking into account
delinquent payments or prepayments: Provided, That premium
charges fixed for insurance (1) under section 245, 247, 251,
252, or 253, or any other financing mechanism providing
alternative methods for repayment of a mortgage that is
determined by the Secretary to involve additional risk, or (2)
under subsection (n) are not required to be the same as the
premium charges for mortgages insured under the other
provisions of this section, but in no case shall premium
charges under subsection (n) exceed 1 per centum per annum:
Provided, That any reduced premium charge so fixed and computed
may, in the discretion of the Secretary, also be made
applicable in such manner as the Secretary shall prescribe to
each insured mortgage outstanding under the section or sections
involved at the time the reduced premium charge is fixed. Such
premium charges shall be payable by the mortgagee, either in
cash, or in debentures issued by the Secretary under this title
at par plus accrued interest, in such manner as may be
prescribed by the Secretary: Provided, That debentures
presented in payment of premium charges shall represent
obligations of the particular insurance fund or account to
which such premium charges are to be credited: Provided
further, That the Secretary may require the payment of one or
more such premium charges at the time the mortgage is insured,
at such discount rate as he may prescribe not in excess of the
interest rate specified in the mortgage. If the Secretary finds
upon the presentation of a mortgage for insurance and the
tender of the initial premium charge or charges so required
that the mortgage complies with the provisions of this section,
such mortgage may be accepted for insurance by endorsement or
otherwise as the Secretary may prescribe; but no mortgage shall
be accepted for insurance under this section unless the
Secretary finds that the project with respect to which the
mortgage is executed is economically sound. In the event that
the principal obligation of any mortgage accepted for insurance
under this title is paid in full prior to the maturity date,
the Secretary is further authorized in his discretion to
require the payment by the mortgagee of an adjusted premium
charge in such amount as the Secretary determines to be
equitable, but not in excess of the aggregate amount of the
premium charges that the mortgagee would otherwise have been
required to pay if the mortgage had continued to be insured
until such maturity date; and in the event that the principal
obligation is paid in full as herein set forth, the Secretary
is authorized to refund to the mortgagee for the account of the
mortgagor all, or such portion as he shall determine to be
equitable, of the current unearned premium charges theretofore
paid: Provided, That with respect to mortgages (1) for which
the Secretary requires, at the time the mortgage is insured,
the payment of a single premium charge to cover the total
premium obligation for the insurance of the mortgage, and (2)
on which the principal obligation is paid before the number of
years on which the premium with respect to a particular
mortgage was based, or the property is sold subject to the
mortgage or is sold and the mortgage is assumed prior to such
time, the Secretary shall provide for refunds, where
appropriate, of a portion of the premium paid and shall provide
for appropriate allocation of the premium cost among the
mortgagors over the term of the mortgage, in accordance with
procedures established by the Secretary which take into account
sound financial and actuarial considerations.
(2) Notwithstanding any other provision of this section, each
mortgage secured by a 1- to 4-family dwelling that is an
obligation of the Mutual Mortgage Insurance Fund shall be
subject to the following requirements:
(A) The Secretary shall establish and collect, at the
time of insurance, a single premium payment in an
amount not exceeding 3 percent of the amount of the
original insured principal obligation of the mortgage.
In the case of a mortgage for which the mortgagor is a
first-time homebuyer who completes a program of
counseling with respect to the responsibilities and
financial management involved in homeownership that is
approved by the Secretary, the premium payment under
this subparagraph shall not exceed 2.75 percent of the
amount of the original insured principal obligation of
the mortgage. Upon payment in full of the principal
obligation of a mortgage prior to the maturity date of
the mortgage, the Secretary shall refund all of the
unearned premium charges paid on the mortgage pursuant
to this subparagraph, provided that the mortgagor
refinances the unpaid principal obligation under title
II of this Act.
(B) In addition to the premium under subparagraph
(A), the Secretary may establish and collect annual
premium payments in an amount not exceeding 1.5 percent
of the remaining insured principal balance (excluding
the portion of the remaining balance attributable to
the premium collected under subparagraph (A) and
without taking into account delinquent payments or
prepayments) for the following periods:
(i) For any mortgage involving an original
principal obligation (excluding any premium
collected under subparagraph (A)) that is less
than 90 percent of the appraised value of the
property (as of the date the mortgage is
accepted for insurance), for the first 11 years
of the mortgage term.
(ii) For any mortage involving an original
principal obligation (excluding any premium
collected under subparagraph (A)) that is
greater than or equal to 90 percent of such
value, for the first 30 years of the mortgage
term; except that notwithstanding the matter
preceding clause (i), for any mortgage
involving an original principal obligation
(excluding any premium collected under
subparagraph (A)) that is greater than 95
percent of such value, the annual premium
collected during the 30-year period under this
clause may be in an amount not exceeding 1.55
percent of the remaining insured principal
balance (excluding the portion of the remaining
balance attributable to the premium collected
under subparagraph (A) and without taking into
account delinquent payments or prepayments).
(C)(i) In addition to the premiums under
subparagraphs (A) and (B), the Secretary shall
establish and collect annual premium payments for any
mortgage for which the Secretary collects an annual
premium payment under subparagraph (B), in an amount
described in clause (ii).
(ii)(I) Subject to subclause (II), with respect to a
mortgage, the amount described in this clause is 10
basis points of the remaining insured principal balance
(excluding the portion of the remaining balance
attributable to the premium collected under
subparagraph (A) and without taking into account
delinquent payments or prepayments).
(II) During the 2-year period beginning on the date
of enactment of this subparagraph, the Secretary shall
increase the number of basis points of the annual
premium payment collected under this subparagraph
incrementally, as determined appropriate by the
Secretary, until the number of basis points of the
annual premium payment collected under this
subparagraph is equal to the number described in
subclause (I).
(d)(1) Except as provided in paragraph (2) of this
subsection, notwithstanding provision of this title governing
maximum mortgage amounts for insuring a mortgage secured by a
one- to four-family dwelling, the maximum amount of the
mortgage determined under any such provision may be increased
by the amount of the mortgage insurance premium paid at the
time the mortgage is insured.
(2) The maximum amount of a mortgage determined under
subsection (b)(2)(B) of this section may not be increased as
provided in paragraph (1).
(e) Any contract of insurance heretofore or hereafter
executed by the Secretary under this title shall be conclusive
evidence of the eligibility of the loan or mortgage for
insurance, and the validility of any contract of insurance so
executed shall be incontestable in the hands of an approved
financial institution or approved mortgagee from the date of
the execution of such contract, except for fraud or
misrepresentation on the part of such approved financial
institution or approved mortgagee.
(f) Disclosure of Other Mortgage Products.--
(1) In general.-- In conjunction with any loan
insured under this section, an original lender shall
provide to each prospective borrower a disclosure
notice that provides a 1-page analysis of mortgage
products offered by that lender and for which the
borrower would qualify.
(2) Notice.-- The notice required under paragraph (1)
shall include--
(A) a generic analysis comparing the note
rate (and associated interest payments),
insurance premiums, and other costs and fees
that would be due over the life of the loan for
a loan insured by the Secretary under
subsection (b) with the note rates, insurance
premiums (if applicable), and other costs and
fees that would be expected to be due if the
mortgagor obtained instead other mortgage
products offered by the lender and for which
the borrower would qualify with a similar loan-
to-value ratio in connection with a
conventional mortgage (as that term is used in
section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2))
or section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)), as applicable), assuming
prevailing interest rates; and
(B) a statement regarding when the
requirement of the mortgagor to pay the
mortgage insurance premiums for a mortgage
insured under this section would terminate, or
a statement that the requirement shall
terminate only if the mortgage is refinanced,
paid off, or otherwise terminated.
(g)(1) The Secretary may insure a mortgage under this title
that is secured by a 1- to 4-family dwelling, or approve a
substitute mortgagor with respect to any such mortgage, only if
the mortgagor is to occupy the dwelling as his or her principal
residence or as a secondary residence, as determined by the
Secretary. In making this determination with respect to the
occupancy of secondary residences, the Secretary may not insure
mortgages with respect to such residences unless the Secretary
determines that it is necessary to avoid undue hardship to the
mortgagor. In no event may a secondary residence under this
subsection include a vacation home, as determined by the
Secretary.
(2) The occupancy requirement established in paragraph (1)
shall not apply to any mortgagor (or co-mortgagor, as
appropriate) that is--
(A) a public entity, as provided in section 214 or
247, or any other State or local government or an
agency thereof;
(B) a private nonprofit or public entity, as provided
in section 221(h) or 235(j), or other private nonprofit
organization that is exempt from taxation under section
501(c)(3) of the Internal Revenue Code of 1986 and
intends to sell or lease the mortgage property to low
or moderate-income persons, as determined by the
Secretary;
(C) an Indian tribe, as provided in section 248;
(D) a serviceperson who is unable to meet such
requirement because of his or her duty assignment, as
provided in section 216 or subsection (b)(4) or (f) of
section 222;
(E) a mortgagor or co-mortgagor under subsection (k);
or
(F) a mortgagor that, pursuant to section 223(a)(7),
is refinancing an existing mortgage insured under this
Act for not more than the outstanding balance of the
existing mortgage, if the amount of the monthly payment
due under the refinancing mortgage is less than the
amount due under the existing mortgage for the month in
which the refinancing mortgage is executed.
(3) For purposes of this subsection, the term ``substitute
mortgagor'' means a person who, upon the release by a mortgagee
of a previous mortgagor from personal liability on the mortgage
note, assumes such liability and agrees to pay the mortgage
debt.
(h) Notwithstanding any other provision of this section, the
Secretary is authorized to insure any mortgage which involves a
principal obligation not in excess of the applicable maximum
dollar limit under subsection (b) and not in excess of 100 per
centum of the appraised value of a property upon which there is
located a dwelling designed principally for a single-family
residence, where the mortgagor establishes (to the satisfaction
of the Secretary) that his home which he occupied as an owner
or as a tenant was destroyed or damaged to such an extent that
reconstruction is required as a result of a flood, fire,
hurricane, earthquake, storm, or other catastrophe, which the
President, pursuant to Robert T. Stafford Disaster Relief and
Emergency Assistance Act, has determined to be a major
disaster. In any case in which the single family residence to
be insured under this subsection is within a jurisdiction in
which the President has declared a major disaster to have
occurred, the Secretary is authorized, for a temporary period
not to exceed 18 months from the date of such Presidential
declaration, to enter into agreements to insure a mortgage
which involves a principal obligation of up to 100 percent of
the dollar limitation determined under section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act for single family
residence, and not in excess of 100 percent of the appraised
value.
(j) Loans secured by mortgages insured under this section
shall not be taken into account in determining the amount of
real estate loans which a national bank may make in relation to
its capital and surplus or its time and savings deposits.
(k)(1) The Secretary may, in order to assist in the
rehabilitation of one- to four-family structures used primarily
for residential purposes, insure and make commitments to insure
rehabilitation loans (including advances made during
rehabilitation) made by financial institutions. Such
commitments to insure and such insurance shall be made upon
such terms and conditions which the Secretary may prescribe and
which are consistent with the provisions of subsections (b),
(c), (e), (i) and (j) of this section, except as modified by
the provisions of this subsection.
(2) For the purpose of this subsection--
(A) the term ``rehabilitation loan'' means a loan,
advance of credit, or purchase of an obligation
representing a loan or advance of credit, made for the
purpose of financing--
(i) the rehabilitation of an existing one- to
four-unit structure which will be used
primarily for residential purposes;
(ii) the rehabilitation of such a structure
and the refinancing of the outstanding
indebtedness on such structure and the real
property on which the structure is located; or
(iii) the rehabilitation of such a structure
and the purchase of the structure and the real
property on which it is located; and
(B) the term ``rehabilitation'' means the improvement
(including improvements designed to meet cost-effective
energy conservation standards prescribed by the
Secretary) or repair of a structure, or facilities in
connection with a structure, and may include the
provision of such sanitary or other facilities as are
required by applicable codes, a community development
plan, or a statewide property insurance plan to be
provided by the owner or tenant of the project. The
term ``rehabilitation'' may also include measures to
evaluate and reduce lead-based paint hazards, as such
terms are defined in section 1004 of the Residential
Lead-Based Paint Hazard Reduction Act of 1992.
(3) To be eligible for insurance under this subsection, a
rehabilitation loan shall--
(A) involve a principal obligation (including such
initial service charges, appraisal, inspection, and
other fees as the Secretary shall approve) in an amount
which does not exceed, when added to any outstanding
indebtedness of the borrower which is secured by the
structure and the property on which it is located, the
amount specified in subsection (b)(2); except that, in
determining the amount of the principal obligation for
purposes of this subsection, the Secretary shall
establish as the appraised value of the property an
amount not to exceed the sum of the estimated cost of
rehabilitation and the Secretary's estimate of the
value of the property before rehabilitation;
(B) bear interest at such rate as may be agreed upon
by the borrower and the financial institution;
(C) be an acceptable risk, as determined by the
Secretary; and
(D) comply with such other terms, conditions, and
restrictions as the Secretary may prescribe.
(4) Any rehabilitation loan insured under this subsection may
be refinanced and extended in accordance with such terms and
conditions as the Secretary may prescribe, but in no event for
an additional amount or term which exceeds the maximum provided
for in this subsection.
(5) All funds received and all disbursements made pursuant to
the authority established by this subsection shall be credited
or charged as appropriate, to the Mutual Mortgage Insurance
Fund, and insurance benefits shall be paid in cash out of such
Fund or in debentures executed in the name of such Fund.
Insurance benefits paid with respect to loans secured by a
first mortgage and insured under this subsection shall be paid
in accordance with section 204. Insurance benefits paid with
respect to loans secured by a mortgage other than a first
mortgage and insured under this subsection shall be paid in
accordance with paragraphs (6) and (7) of section 220(h),
except that reference to ``this subsection'' in such paragraphs
shall be construed as referring to this subsection.
(6) The Secretary is authorized, for a temporary
period not to exceed 18 months from the date on which
the President has declared a major disaster to have
occurred, to enter into agreements to insure a
rehabilitation loan under this subsection which
involves a principal obligation of up to 100 percent of
the dollar limitation determined under section
305(a)(2) of the Federal Home Loan Mortgage Corporation
Act for a residence of the applicable size, if such
loan is secured by a structure and property that are
within a jurisdiction in which the President has
declared such disaster, pursuant to the Robert T.
Stafford Disaster Relief and Emergency Assistance Act,
and if such loan otherwise conforms to the loan-to-
value ratio and other requirements of this subsection.
(n)(1) The Secretary is authorized to insure under this
section any mortgage meeting the requirements of subsection (b)
of this section, except as modified by this subsection. To be
eligible, the mortgage shall involve a dwelling unit in a
cooperative housing project which is covered by a blanket
mortgage insured under this Act or the construction of which
was completed more than a year prior to the application for the
mortgage insurance. The mortgage amount as determined under the
other provisions of subsection (b) of this section shall be
reduced by an amount equal to the portion of the unpaid balance
of the blanket mortgage covering the project which is
attributable (as of the date the mortgage is accepted for
insurance) to such unit.
(2) For the purpose of this subsection--
(A) The terms ``home mortgage'' and ``mortgage''
include a first or subordinate mortgage or lien given
(in accordance with the laws of the State where the
property is located and accompanied by such security
and other undertakings as may be required under
regulations of the Secretary) to secure a loan made to
finance the purchase of stock or membership in a
cooperative ownership housing corporation the permanent
occupancy of the dwelling units of which is restricted
to members of such corporation, where the purchase of
such stock or membership will entitle the purchaser to
the permanent occupancy of one of such units.
(B) The terms ``appraised value of the property'',
``value of the property'', and ``value'' include the
appraised value of a dwelling unit in a cooperative
housing project of the type described in subparagraph
(A) where the purchase of the stock or membership
involved will entitle the purchaser to the permanent
occupancy of that unit; and the term ``property''
includes a dwelling unit in such a cooperative project.
(C) The terms ``mortgagor'' includes a person or
persons giving a first or subordinate mortgage or lien
(of the type described in subparagraph (A)) to secure a
loan to finance the purchase of stock or membership in
a cooperative housing corporation.
(r) The Secretary shall take appropriate actions to reduce
losses under the single-family mortgage insurance programs
carried out under this title. Such actions shall include--
(1) an annual review by the Secretary of the rate of
early serious defaults and claims, in accordance with
section 533;
(2) requiring that at least one person acquiring
ownership of a one- to four-family residential property
encumbered by a mortgage insured under this title be
determined to be credit-worthy under standards
prescribed by the Secretary, whether or not such person
assumes personal liability under the mortgage (except
that acquisitions by devise or descent shall not be
subject to this requirement);
(3) in any case where personal liability under a
mortgage is assumed, requiring that the original
mortgagor be advised of the procedures by which he or
she may be released from liability; and
(4) providing counseling, either directly or through
third parties, to delinquent mortgagors whose mortgages
are insured under this section 203 (12 U.S.C. 1709),
using the Fund to pay for such counseling.
In any case where the homeowner does not request a release from
liability, the purchaser and the homeowner shall have joint and
several liability for any default for a period of 5 years
following the date of the assumption. After the close of such
5-year period, only the purchaser shall be liable for any
default on the mortgage unless the mortgage is in default at
the time of the expiration of the 5-year period.
(t)(1) Each mortgagee (or servicer) with respect to a
mortgage under this section shall provide each mortgagor of
such mortgagee (or servicer) written notice, not less than
annually, containing a statement of the amount outstanding for
prepayment of the principal amount of the mortgage and
describing any requirements the mortgagor must fulfill to
prevent the accrual of any interest on such principal amount
after the date of any prepayment. This paragraph shall apply to
any insured mortgage outstanding on or after the expiration of
the 90-day period beginning on the date of effectiveness of
final regulations implementing this paragraph.
(2) Each mortgagee (or servicer) with respect to a mortgage
under this section shall, at or before closing with respect to
any such mortgage, provide the mortgagor with written notice
(in such form as the Secretary shall prescribe, by regulation,
before the expiration of the 90-day period beginning upon the
date of the enactment of the Cranston-Gonzalez National
Affordable Housing Act) describing any requirements the
mortgagor must fulfill upon prepayment of the principal amount
of the mortgage to prevent the accrual of any interest on the
principal amount after the date of such prepayment. This
paragraph shall apply to any mortgage executed after the
expiration of the period under paragraph (1).
(u)(1) No mortgagee may make or hold mortgages insured under
this section if the customary lending practices of the
mortgagee, as determined by the Secretary pursuant to section
539, provide for a variation in mortgage charge rates that
exceeds 2 percent for insured mortgages made by the mortgagee
on dwellings located within an area. The Secretary shall ensure
that any permissible variations in the mortgage charge rates of
any mortgagee are based only on actual variations in fees or
costs to the mortgagee to make the loan.
(2) For purposes of this subsection--
(A) the term ``area'' means a metropolitan
statistical area as established by the Office of
Management and Budget;
(B) the term ``mortgage charges'' includes the
interest rate, discount points, loan origination fee,
and any other amount charged to a mortgagor with
respect to an insured mortgage; and
(C) the term ``mortgage charge rate'' means the
amount of mortgage charges for an insured mortgage
expressed as a percentage of the initial principal
amount of the mortgage.
(v) The insurance of a mortgage under this section in
connection with the assistance provided under section 8(y) of
the United States Housing Act of 1937 shall be the obligation
of the Mutual Mortgage Insurance Fund.
(w) Annual Report.--The Secretary of Housing and Urban
Development shall submit to the Congress an annual report on
the single family mortgage insurance program under this
section. Each report shall set forth--
(1) an analysis of the income groups served by the
single family insurance program, including--
(A) the percentage of borrowers whose incomes
do not exceed 100 percent of the median income
for the area;
(B) the percentage of borrowers whose incomes
do not exceed 80 percent of the median income
for the area; and
(C) the percentage of borrowers whose incomes
do not exceed 60 percent of the median income
for the area;
(2) an analysis of the percentage of minority
borrowers annually assisted by the program; the
percentage of central city borrowers assisted and the
percentage of rural borrowers assisted by the program;
(3) the extent to which the Secretary in carrying out
the program has employed methods to ensure that needs
of low and moderate income families, underserved areas,
and historically disadvantaged groups are served by the
program; and
(4) the current impediments to having the program
serve low and moderate income borrowers; borrowers from
central city areas; borrowers from rural areas; and
minority borrowers.
(x) Management Deficiencies Report.--
(1) In general.-- Not later than 60 days after the
date of the enactment of this subsection, and annually
thereafter, the Secretary shall submit to Congress a
report on the plan of the Secretary to address each
material weakness, reportable condition, and
noncompliance with an applicable law or regulation (as
defined by the Director of the Office of Management and
Budget) identified in the most recent audited financial
statement of the Federal Housing Administration
submitted under section 3515 of title 31, United States
Code.
(2) Contents of annual report.-- Each report
submitted under paragraph (1) shall include--
(A) an estimate of the resources, including
staff, information systems, and contract
assistance, required to address each material
weakness, reportable condition, and
noncompliance with an applicable law or
regulation described in paragraph (1), and the
costs associated with those resources;
(B) an estimated timetable for addressing
each material weakness, reportable condition,
and noncompliance with an applicable law or
regulation described in paragraph (1); and
(C) the progress of the Secretary in
implementing the plan of the Secretary included
in the report submitted under paragraph (1) for
the preceding year, except that this
subparagraph does not apply to the initial
report submitted under paragraph (1).
(y) Requirements for Mortgages for Condominiums.--
(1) Project recertification requirements.--
Notwithstanding 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) Commercial space requirements.-- Notwithstanding
any other law, regulation, or guideline of the
Secretary, including chapter 2.1.3 of the Condominium
Project Approval and Processing Guide of the FHA, in
providing for exceptions to the requirement for the
insurance of a mortgage on a 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) Transfer 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 C.F.R. 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 Home Loan Mortgage Corporation. If the
provisions of part 1228 of the Director of the Federal
Housing Finance Agency's regulations (12 C.F.R. 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) Establishment of percentage
requirement.-- Not later than the expiration of
the 90-day period beginning on the date of the
enactment of this paragraph, the 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) Failure to act.-- If the Secretary fails
to issue the guidance required under
subparagraph (A) before the expiration of the
90-day period specified in such clause, the
following provisions shall apply:
(i) 35 percent requirement.-- In
order for a 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) Other considerations.-- The
Secretary may increase the percentage
applicable pursuant to clause (i) to a
condominium project on a project-by-
project or regional basis, and in
determining such percentage for a
project shall consider factors relating
to the economy for the locality in
which such project is located or
specific to project, including the
total number of family units in the
project.
* * * * * * *
----------
MCKINNEY-VENTO HOMELESS ASSISTANCE ACT
* * * * * * *
SECTION 101. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``McKinney-
Vento Homeless Assistance Act''.
(b) Table Of Contents.--
* * * * * * *
TITLE IV--HOUSING ASSISTANCE
* * * * * * *
Subtitle C--Continuum of Care Program
Sec. 421. Purposes.
* * * * * * *
[Sec. 432. Regulations.
[Sec. 433. Reports to Congress.]
Sec. 432. Geographic areas.
Sec. 433. Regulations.
Sec. 434. Reports to Congress.
* * * * * * *
TITLE IV--HOUSING ASSISTANCE
* * * * * * *
Subtitle B--Emergency Solutions Grants Program
* * * * * * *
SEC. 414. ALLOCATION AND DISTRIBUTION OF ASSISTANCE.
(a) In General.--The Secretary shall allocate assistance
under this subtitle to metropolitan cities, urban counties, and
States (for distribution to local governments and private
nonprofit organizations in the States) in a manner that ensures
that the percentage of the total amount available under this
subtitle for any fiscal year that is allocated to any State,
metropolitan city, or urban county is equal to the percentage
of the total amount available for section 106 of the Housing
and Community Development Act of 1974 for such prior fiscal
year that is allocated to such State, metropolitan city, or
urban county.
(b) Minimum Allocation Requirement.--If, under the allocation
provisions applicable under this subtitle, any metropolitan
city or urban county would receive a grant of less than 0.05
percent of the amounts appropriated under section 408 and made
available to carry out this subtitle for any fiscal year, such
amount shall instead be reallocated to the State, except that
any city that is located in a State that does not have counties
as local governments, that has a population greater than 40,000
but less than 50,000 as used in determining the fiscal year
1987 community development block grant program allocation, and
that was allocated in excess of $1,000,000 in community
development block grant funds in fiscal year 1987, shall
receive directly the amount allocated to such city under
subsection (a).
(c) Distributions to Nonprofit Organizations, Public Housing
Agencies, and Local Redevelopment Authorities.--Any local
government receiving assistance under this subtitle may
distribute all or a portion of such assistance to private
nonprofit organizations providing assistance to homeless
individuals, 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)
. Any State receiving assistance under this subtitle may
distribute all or a portion of such assistance to private
nonprofit organizations providing assistance to homeless
individuals, if the local government for the locality in which
the project is located certifies that it approves of the
project.
(d) Reallocation of Funds.--
(1) The Secretary shall, not less than twice during
each fiscal year, reallocate any assistance provided
under this subtitle that is unused or returned or that
becomes available under subsection (b).
(2) If a city or county eligible for a grant under
subsection (a) fails to obtain approval of its
comprehensive plan during the 90-day period following
the date funds authorized by this subtitle first become
available for allocation during any fiscal year, the
amount that the city or county would have received
shall be available to the State in which the city or
county is located if the State has obtained approval of
its comprehensive plan. Any amounts that cannot be
allocated to a State under the preceding sentence shall
be reallocated to other States, counties, and cities
that demonstrate extraordinary need or large numbers of
homeless individuals, as determined by the Secretary.
(3) If a State or Indian tribe fails to obtain
approval of its comprehensive plan during the 90-day
period following the date funds authorized by this
subtitle first become available for allocation during
any fiscal year, the amount that the State or Indian
tribe would have received shall be reallocated to other
States and to cities and counties as applicable, that
demonstrate extraordinary need or large numbers of
homeless individuals, as determined by the Secretary.
(e) Allocations to Territories.--In addition to the other
allocations required in this section, the Secretary shall (for
amounts appropriated after the date of enactment of this Act)
allocate assistance under this subtitle to the Virgin Islands,
Guam, American Samoa, the Northern Mariana Islands, the Trust
Territory of the Pacific Islands, and any other territory or
possession of the United States, in accordance with an
allocation formula established by the Secretary.
* * * * * * *
Subtitle C--Continuum of Care Program
* * * * * * *
SEC. 432. GEOGRAPHIC AREAS.
(a) Requirement to Define.--For purposes of this subtitle,
the term ``geographic area'' shall have such meaning as the
Secretary shall by notice provide.
(b) Issuance of Notice.--Not later than the expiration of the
90-day period beginning on the date of the enactment of the
Housing Opportunity Through Modernization Act of 2015, the
Secretary shall issue a notice setting forth the definition
required by subsection (a).
SEC. [432.] 433. REGULATIONS.
Not later than the expiration of the 90-day period beginning
on the date of the enactment of the Housing and Community
Development Act of 1992, the Secretary shall issue interim
regulations to carry out this subtitle, which shall take effect
upon issuance. The Secretary shall issue final regulations to
carry out this subtitle after notice and opportunity for public
comment regarding the interim regulations, pursuant to the
provisions of section 553 of title 5, United States Code
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
section). The duration of the period for public comment shall
not be less than 60 days, and the final regulations shall be
issued not later than the expiration of the 60-day period
beginning upon the conclusion of the comment period and shall
take effect upon issuance.
SEC. [433.] 434. REPORTS TO CONGRESS.
The Secretary shall submit a report to the Congress annually,
summarizing the activities carried out under this subtitle and
setting forth the findings, conclusions, and recommendations of
the Secretary as a result of the activities. The report shall
be submitted not later than 4 months after the end of each
fiscal year (except that, in the case of fiscal year 1993, the
report shall be submitted not later than 6 months after the end
of the fiscal year).
* * * * * * *
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT
* * * * * * *
under secretary and other officers and offices
Sec. 4. (a)(1) There shall be in the Department a Deputy
Secretary, 7 Assistant Secretaries, and a general counsel, who
shall be appointed by the President by and with the advice and
consent of the Senate, and who shall perform such functions,
powers, and duties as the Secretary shall prescribe from time
to time.
(2) There shall be in the Department an Assistant Secretary
for Public Affairs, who shall be appointed by the President and
shall perform such functions, powers, and duties as the
Secretary shall prescribe from time to time.
(b) There shall be in the Department a Federal Housing
Commissioner, who shall be one of the Assistant Secretaries,
who shall head a Federal Housing Administration within the
Department, who shall have such duties and powers as may be
prescribed by the Secretary, and who shall administer, under
the supervision and direction of the Secretary, departmental
programs relating to the private mortgage market. The Secretary
shall ensure, to the extent practicable, that managers of
Federal Housing Administration programs, at each level of the
Department, shall be accountable for program operation, risk
management, management of cash and other Federal assets, and
program financing related to activities over which such
managers have responsibility.
(c) There shall be in the Department a Director of Urban
Program Coordination, who shall be designated by the Secretary.
He shall assist the Secretary in carrying out his
responsibilities to the President with respect to achieving
maximum coordination of the programs of the various departments
and agencies of the Government which have a major impact on
community development. In providing such assistance, the
Director shall make such studies of urban and community
problems as the Secretary shall request, and shall develop
recommendations relating to the administration of Federal
programs affecting such problems, particularly with respect to
achieving effective cooperation among the Federal, State, and
local agencies concerned. Subject to the direction of the
Secretary, the Director shall, in carrying out his
responsibilities, (1) establish and maintain close liaison with
the Federal departments and agencies concerned, and (2) consult
with State, local, and regional officials, and consider their
recommendations with respect to such programs.
(d) There shall be in the Department an Assistant to the
Secretary, designated by the Secretary, who shall be
responsible for providing information and advice to nonprofit
organizations desiring to sponsor housing projects assisted
under programs administered by the Department.
(e)(1)(A) There shall be in the Department a Special
Assistant for Indian and Alaska Native Programs, who shall be
located in the Office of the Assistant Secretary for Public and
Indian Housing. The Special Assistant for Indian and Alaska
Native Programs shall be designated by the Secretary not later
than 60 days after the date of enactment of this subsection.
(B) The Special Assistant for Indian and Alaska Native
Programs 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.
(C) The Special Assistant for Indian and Alaska Native
Programs shall be responsible for--
(i) administering, in coordination with the relevant
office in the Department, the provision of housing
assistance to Indian tribes or Indian housing
authorities under each program of the Department that
provides for such assistance;
(ii) administering the community development block
grant program for Indian tribes under title I of the
Housing and Community Development Act of 1974 and the
provision of assistance to Indian tribes under such
Act;
(iii) directing, coordinating, and assisting in
managing any regional offices of the Department that
administer Indian programs to the extent of such
programs; and
(iv) coordinating all programs of the Department
relating to Indian and Alaska Native housing and
community development.
(D) The Secretary shall include in the annual report under
section 8 a description of the extent of the housing needs for
Indian families and community development needs of Indian
tribes in the United States and the activities of the
Department, and extent of such activities, in meeting such
needs.
(2) The Secretary shall, not later than December 1 of each
year, submit to Congress an annual report which shall include--
(A) a description of his actions during the current
year and a projection of his activities during the
succeeding years;
(B) estimate of the cost of the projected activities
for succeeding fiscal years;
(C) a statistical report on the conditions of Indian
and Alaska Native housing; and
(D) recommendations for such legislative,
administrative, and other actions, as he deems
appropriate.
(f) There shall be in the Department a Federal Housing
Administration Comptroller, designated by the Secretary, who
shall be responsible for overseeing the financial operations of
the Federal Housing Administration.
(g) Office of Housing Counseling.--
(1) Establishment.-- There is established, in the
Department, the Office of Housing Counseling.
(2) Director.-- There is established the position of
Director of Housing Counseling. The Director shall be
the head of the Office of Housing Counseling and shall
be appointed by, and shall report to, the Secretary.
Such position shall be a career-reserved position in
the Senior Executive Service.
(3) Functions.--
(A) In general.-- The Director shall have
primary responsibility within the Department
for all activities and matters relating to
homeownership counseling and rental housing
counseling, including--
(i) research, grant administration,
public outreach, and policy development
relating to such counseling; and
(ii) establishment, coordination, and
administration of all regulations,
requirements, standards, and
performance measures under programs and
laws administered by the Department
that relate to housing counseling,
homeownership counseling (including
maintenance of homes), mortgage-related
counseling (including home equity
conversion mortgages and credit
protection options to avoid
foreclosure), and rental housing
counseling, including the requirements,
standards, and performance measures
relating to housing counseling.
(B) Specific functions.-- The Director shall
carry out the functions assigned to the
Director and the Office under this section and
any other provisions of law. Such functions
shall include establishing rules necessary
for--
(i) the counseling procedures under
section 106(g)(1) of the Housing and
Urban Development Act of 1968 (12
U.S.C. 1701x(h)(1));
(ii) carrying out all other functions
of the Secretary under section 106(g)
of the Housing and Urban Development
Act of 1968, including the
establishment, operation, and
publication of the availability of the
toll-free telephone number under
paragraph (2) of such section;
(iii) contributing to the
distribution of home buying information
booklets pursuant to section 5 of the
Real Estate Settlement Procedures Act
of 1974 (12 U.S.C. 2604);
(iv) carrying out the certification
program under section 106(e) of the
Housing and Urban Development Act of
1968 (12 U.S.C. 1701x(e));
(v) carrying out the assistance
program under section 106(a)(4) of the
Housing and Urban Development Act of
1968, including criteria for selection
of applications to receive assistance;
(vi) carrying out any functions
regarding abusive, deceptive, or
unscrupulous lending practices relating
to residential mortgage loans that the
Secretary considers appropriate, which
shall include conducting the study
under section 6 of the Expand and
Preserve Home Ownership Through
Counseling Act;
(vii) providing for operation of the
advisory committee established under
paragraph (4) of this subsection;
(viii) collaborating with community-
based organizations with expertise in
the field of housing counseling; and
(ix) providing for the building of
capacity to provide housing counseling
services in areas that lack sufficient
services, including underdeveloped
areas that lack basic water and sewer
systems, electricity services, and
safe, sanitary housing.
(4) Advisory committee.--
(A) In general.-- The Secretary shall appoint
an advisory committee to provide advice
regarding the carrying out of the functions of
the Director.
(B) Members.-- Such advisory committee shall
consist of not more than 12 individuals, and
the membership of the committee shall equally
represent the mortgage and real estate
industry, including consumers and housing
counseling agencies certified by the Secretary.
(C) Terms.-- Except as provided in
subparagraph (D), each member of the advisory
committee shall be appointed for a term of 3
years. Members may be reappointed at the
discretion of the Secretary.
(D) Terms of initial appointees.-- As
designated by the Secretary at the time of
appointment, of the members first appointed to
the advisory committee, 4 shall be appointed
for a term of 1 year and 4 shall be appointed
for a term of 2 years.
(E) Prohibition of pay; travel expenses.--
Members of the advisory committee shall serve
without pay, but shall receive travel expenses,
including per diem in lieu of subsistence, in
accordance with applicable provisions under
subchapter I of chapter 57 of title 5, United
States Code.
(F) Advisory role only.-- The advisory
committee shall have no role in reviewing or
awarding housing counseling grants.
(5) Scope of homeownership counseling.-- In carrying
out the responsibilities of the Director, the Director
shall ensure that homeownership counseling provided by,
in connection with, or pursuant to any function,
activity, or program of the Department addresses the
entire process of homeownership, including the decision
to purchase a home, the selection and purchase of a
home, issues arising during or affecting the period of
ownership of a home (including refinancing, default and
foreclosure, and other financial decisions), and the
sale or other disposition of a home.
(h) Special Assistant for Veterans Affairs.--
(1) Position.-- There shall be in the Office of the
Secretary a Special Assistant for Veterans Affairs, who
shall report directly to the Secretary.
(2) Appointment.-- The Special Assistant for Veterans
Affairs shall be appointed based solely on merit and
shall be covered under the provisions of title 5,
United States Code, governing appointments in the
competitive service.
(3) Responsibilities.-- The Special Assistant for
Veterans Affairs shall be responsible for--
(A) ensuring veterans have fair access to
housing and homeless assistance under each
program of the Department providing either such
assistance;
(B) coordinating all programs and activities
of the Department relating to veterans;
(C) serving as a liaison for the Department
with the Department of Veterans Affairs,
including establishing and maintaining
relationships with the Secretary of Veterans
Affairs;
(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 2015; and
(G) carrying out such other duties as may be
assigned to the Special Assistant by the
Secretary or by law.
* * * * * * *
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SECTION 11 OF THE HOUSING OPPORTUNITY PROGRAM EXTENSION ACT OF 1996
SEC. 11. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.
(a) Grant Authority.--The Secretary of Housing and Urban
Development may, to the extent amounts are available to carry
out this section and the requirements of this section are met,
make grants for use in accordance with this section to national
and regional organizations and consortia that have experience
in providing or facilitating self-help housing homeownership
opportunities.
(b) Goals and Accountability.--In making grants under this
section, the Secretary shall take such actions as may be
necessary to ensure that--
(1) assistance provided under this section is used to
facilitate and encourage innovative homeownership
opportunities through the provision of self-help
housing, under which the homeowner contributes a
significant amount of sweat equity toward the
construction of the new dwellings;
(2) assistance provided under this section for land
acquisition and infrastructure development results in
the development of not less than 4,000 new dwellings;
(3) the dwellings constructed in connection with
assistance provided under this section are quality
dwellings that comply with local building and safety
codes and standards and are available at prices below
the prevailing market prices;
(4) the provision of assistance under this section
establishes and fosters a partnership between the
Federal Government and organizations and consortia,
resulting in efficient development of affordable
housing with minimal governmental intervention, limited
governmental regulation, and significant involvement by
private entities;
(5) activities to develop housing assisted pursuant
to this section involve community participation in
which volunteers assist in the construction of
dwellings; and
(6) dwellings are developed in connection with
assistance under this section on a geographically
diverse basis, which includes areas having high housing
costs, rural areas, and areas underserved by other
homeownership opportunities that are populated by low-
income families unable to otherwise afford housing.
If, at any time, the Secretary determines that the goals under
this subsection cannot be met by providing assistance in
accordance with the terms of this section, the Secretary shall
immediately notify the applicable Committees in writing of such
determination and any proposed changes for such goals or this
section.
(c) National Competition.--The Secretary shall select
organizations and consortia referred to in subsection (a) to
receive grants through a national competitive process, which
the Secretary shall establish.
(d) Use.--
(1) Purpose.-- Amounts from grants made under this
section, including any recaptured amounts, shall be
used only for eligible expenses in connection with
developing new decent, safe, and sanitary nonluxury
dwellings in the United States for families and persons
who otherwise would be unable to afford to purchase a
dwelling.
(2) Eligible expenses.-- For purposes of paragraph
(1), the term ``eligible expenses'' means costs only
for the following activities:
(A) Land acquisition.-- Acquiring land
(including financing and closing costs), which
may include reimbursing an organization,
consortium, or affiliate, upon approval of any
required environmental review, for nongrant
amounts of the organization, consortium, or
affiliate advanced before such review to
acquire land.
(B) Infrastructure improvement.-- Installing,
extending, constructing, rehabilitating, or
otherwise improving utilities and other
infrastructure.
Such term does not include any costs for the
rehabilitation, improvement, or construction of
dwellings.
(e) Establishment of Grant Fund.--
(1) In general.-- Any amounts from any grant made
under this section shall be deposited by the grantee
organization or consortium in a fund that is
established by such organization or consortium for such
amounts, administered by such organization or
consortium, and available for use only for the purposes
under subsection (d). Any interest, fees, or other
earnings of the fund shall be deposited in the fund and
shall be considered grant amounts for purposes of this
section.
(2) Assistance to affiliates.-- Any organization or
consortia that receives a grant under this section may
use amounts in the fund established for such
organization or consortia pursuant to paragraph (1) for
the purposes under subsection (d) by providing
assistance from the fund to local affiliates of such
organization or consortia.
(f) Requirements for Assistance.--The Secretary may make a
grant to an organization or consortium under subsection (a)
only pursuant to--
(1) an expression of interest by such organization or
consortia to the Secretary for a grant for such
purposes;
(2) a determination by the Secretary that the
organization or consortia has the capability and has
obtained financial commitments (or has the capacity to
obtain financial commitments) necessary to--
(A) develop not less than 30 dwellings in
connection with the grant amounts; and
(B) otherwise comply with a grant agreement
under subsection (i); and
(3) a grant agreement entered into under subsection
(i).
(g) Energy Efficiency Requirements.--The Secretary may not
require any dwelling developed using amounts from a grant made
under this section to meet any energy efficiency standards
other than the standards applicable at such time pursuant to
section 109 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12709) to housing specified in
subsection (a) of such section.
(h) Geographical Diversity.--In making grants under
subsection (a), the Secretary shall ensure that grants are
provided and grant amounts are used in a manner that results in
national geographic diversity among housing developed using
grant amounts under this section.
(i) Grant Agreement.--A grant under this section shall be
made only pursuant to a grant agreement entered into by the
Secretary and the organization or consortia receiving the
grant, which shall--
(1) require such organization or consortia to use
grant amounts only as provided in this section;
(2) provide for the organization or consortia to
develop a specific and reasonable number of dwellings
using the grant amounts, which number shall be
established taking into consideration costs and
economic conditions in the areas in which the dwellings
will be developed, but in no case shall be less than
30;
(3) require the organization or consortia to use the
grant amounts in a manner that leverages other sources
of funding (other than grants under this section),
including private or public funds, in developing the
dwellings;
(4) require the organization or consortia to comply
with the other provisions of this section;
(5) provide that the Secretary shall recapture any
grant amounts provided to the organization or consortia
that are not used within 24 months after such amounts
are first disbursed to the organization or consortia,
except that such period shall be 36 months in the case
of grant amounts from amounts made available for fiscal
year 1996 to carry out this section, and in the case of
a grant amounts provided to a local affiliate of the
organization or consortia that is developing five or
more dwellings in connection with such grant amounts;
and
(6) contain such other terms as the Secretary may
require to provide for compliance with subsection (b)
and the requirements of this section.
(j) Fulfillment of Grant Agreement.--If the Secretary
determines that an organization or consortia awarded a grant
under this section has not, within 24 months after grant
amounts are first made available to the organization or
consortia (or, in the case of grant amounts from amounts made
available for fiscal year 1996 to carry out this section and
grant amounts provided to a local affiliate of the organization
or consortia that is developing five or more dwellings in
connection with such grant amounts, within 36 months),
substantially fulfilled the obligations under the grant
agreement, including development of the appropriate number of
dwellings under the agreement, the Secretary shall use any such
undisbursed amounts remaining from such grant for other grants
in accordance with this section.
(k) Records and Audits.--During the period beginning upon the
making of a grant under this section and ending upon close-out
of the grant under subsection (l)--
(1) the organization awarded the grant shall keep
such records and adopt such administrative practices as
the Secretary may require to ensure compliance with the
provisions of this section and the grant agreement; and
(2) the Secretary and the Comptroller General of the
United States, and any of their duly authorized
representatives, shall have access for the purpose of
audit and examination to any books, documents, papers,
and records of the grantee organization or consortia
and its affiliates that are pertinent to the grant made
under this section.
(l) Close-Out.--The Secretary shall close out a grant made
under this section upon determining that the aggregate amount
of any assistance provided from the fund established under
subsection (e)(1) by the grantee organization or consortium
exceeds the amount of the grant. For purposes of this
paragraph, any interest, fees, and other earnings of the fund
shall be excluded from the amount of the grant.
(m) Environmental Review.--A grant under this section shall
be considered to be funds for a special project for purposes of
section 305(c) of the Multifamily Housing Property Disposition
Reform Act of 1994.
(n) Report to Congress.--Not later than 90 days after close-
out of all grants under this section is completed, the
Secretary shall submit a report to the applicable Committees
describing the grants made under this section, the grantees,
the housing developed in connection with the grant amounts, and
the purposes for which the grant amounts were used.
(o) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Applicable committees.-- The term ``applicable
Committees'' means the Committee on Banking and
Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of
the Senate.
(2) Secretary.-- The term ``Secretary'' means the
Secretary of Housing and Urban Development.
(3) United states.-- The term ``United States''
includes the States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, Guam, the
Virgin Islands, American Samoa, and any other territory
or possession of the United States.
(p) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as may be
necessary for fiscal year 2001.
(q) Regulations.--The Secretary shall issue any final
regulations necessary to carry out this section not later than
30 days after the date of the enactment of this Act. The
regulations shall take effect upon issuance and may not exceed,
in length, 5 full pages in the Federal Register.
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