II
110th CONGRESS
2d Session
S. 2684
IN THE SENATE OF THE UNITED STATES
March 3, 2008
Mr. Dodd (for himself, Mr. Schumer, Mr. Reed, Mr. Menendez, and Mr. Brown) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To reform the housing choice voucher program under section 8 of the United States Housing Act of 1937.
Short title; table of contents
Short title
This Act may be cited
as the Section 8 Voucher Reform Act of
2008
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Inspection of dwelling units.
Sec. 3. Rent reform and income reviews.
Sec. 4. Eligibility for assistance based on assets and income.
Sec. 5. Targeting assistance to low-income working families.
Sec. 6. Voucher renewal funding.
Sec. 7. Administrative fees.
Sec. 8. Homeownership.
Sec. 9. Performance assessments.
Sec. 10. PHA project-based assistance.
Sec. 11. Rent burdens.
Sec. 12. Establishment of fair market rent.
Sec. 13. Screening of applicants.
Sec. 14. Enhanced vouchers.
Sec. 15. Project-based preservation vouchers.
Sec. 16. Demonstration program waiver authority.
Sec. 17. Study to identify obstacles to using vouchers in federally subsidized housing projects.
Sec. 18. Collection of data on tenants in projects receiving tax credits.
Sec. 19. Agency authority for utility payments in certain circumstances.
Sec. 20. Access to HUD programs for persons with limited English proficiency.
Sec. 21. Authorization of appropriations.
Sec. 22. Effective date.
Inspection of dwelling units
Inspection of units by PHA's
Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended—
by striking subparagraph (A) and inserting the following new subparagraph:
Initial inspection
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.
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. 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, suspend any assistance payments for the unit if any deficiency resulting in noncompliance with the housing quality standards has not been corrected by such time, and may not resume such payments until each such deficiency has been corrected.
Projects receiving certain federal housing subsidies
In the case of any property that within the previous 12 months has been determined to meet Federal housing quality and safety standards under any Federal housing program inspection standard equivalent to the standards under the program under this subsection, including the program under section 42 of the Internal Revenue Code of 1986 or under subtitle A of title II of the Cranston Gonzalez National Affordable Housing Act, a public housing agency may—
authorize occupancy before the inspection under clause (i) has been completed; and
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), provided that such inspection is conducted pursuant to the requirements of subparagraph (C).
;
by striking subparagraph (D) and inserting the following new subparagraph:
Biennial inspections
Requirement
Each public housing agency providing assistance under this subsection (or other entity, as provided in paragraph (11)) shall make, for each assisted dwelling unit, inspections not less 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). The agency (or other entity) shall retain the records of the inspection for a reasonable time and shall make the records available upon request to the Secretary, the Inspector General for the Department of Housing and Urban Development, and any auditor conducting an audit under section 5(h).
Sufficient inspection
An inspection of a property shall be sufficient to comply with the inspection requirement under clause (i) if—
the inspection was conducted pursuant to requirements under a Federal, State, or local housing assistance program (including the HOME Investment Partnerships Program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) or the low-income housing tax credit under section 42 of the Internal Revenue Code of 1986); and
pursuant to such inspection, the property was determined to meet the standards or requirements regarding housing quality or safety applicable to units assisted under such program, and if a non-Federal standard was used, the public housing agency has certified to the Secretary that such standards or requirements provide the same protection to occupants of dwelling units meeting such standards or requirements as, or greater protection than, the housing quality standards under subparagraph (B).
; and
by adding at the end the following new subparagraph:
Interim inspections
Upon notification by a family on whose behalf tenant-based assistance is provided under this subsection, that the dwelling unit for which such assistance is provided does not comply with housing quality standards under subparagraph (B), the public housing agency shall inspect the dwelling unit—
in the case of a life threatening condition, within 24 hours of such notice; and
in the case of any non-life threatening condition, within 15 days of such notice.
Enforcement of housing quality standards
Determination of noncompliance
A dwelling unit that is covered by a housing assistance payments contract under this subsection shall be considered, for purposes of this subparagraph, to be in noncompliance with the housing quality standards under subparagraph (B) if—
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;
the agency or inspector notifies the owner of the unit in writing of such failure to comply; and
the failure to comply is not corrected—
in the case of any such failure that is a result of a life threatening condition, within 24 hours after receipt of such notice; and
in the case of any failure that is a result of a non-life threatening condition, within 30 days after provision of such notice, or such other reasonable period as the public housing agency may establish.
Abatement of assistance
In general
A public housing agency providing assistance under this subsection shall abate such assistance with respect to any assisted dwelling unit that is determined to be in noncompliance with the housing quality standards under subparagraph (B). Upon a showing by the owner of the unit that sufficient repairs to the unit have been completed so that the unit complies with such housing quality standards, the public housing agency may recommence payment of such assistance.
Use of abated assistance to pay for repairs
The public housing agency may use any assistance amounts abated pursuant to subclause (I) to make repairs or to contract for such repairs for life-threatening conditions, except that a contract to make repairs may not be entered into with the inspector for the dwelling unit.
Protection of tenants
If a public housing agency providing assistance under this subsection abates rental assistance payments under clause (ii), the public housing agency shall—
notify the tenant—
when such abatement begins; and
at the start of the abatement period that if the unit is not brought into compliance within 120 days, the tenant will have to move; and
issue the tenant the necessary forms to allow the tenant to move with their voucher to another housing unit; and
use funds that otherwise would have gone to pay the rental amount, for the reasonable moving expenses or security deposit costs of the tenant.
Right of the tenant to terminate tenancy
During any period that housing assistance payments are abated with respect to any assisted dwelling unit pursuant to this subparagraph, the tenant of such dwelling may terminate his or her tenancy without penalty by notifying the owner of the dwelling unit.
Limitation on authority of an owner
An owner of a dwelling unit that is considered to be in noncompliance with the housing quality standards under subparagraph (B) may not terminate the tenancy of a tenant, or refuse to renew a lease for such unit, as a result of an abatement order carried out by a public housing agency under clause (ii).
Termination of lease or assistance payments contracts
If a public housing agency providing assistance under this subsection abates rental assistance payments under clause (ii) and the owner of the unit does not correct the noncompliance within 120 days after the effective date of the determination of noncompliance under clause (i), the public housing agency shall terminate the housing assistance payment contract subject to clause (vii). The termination of the housing assistance payment contract shall terminate the lease agreement.
Relocation of tenants
120-day period to relocate
The public housing agency shall provide to the individual or family residing in any unit whose lease is terminated under clause (vi) at least 120 days beginning at the start of the abatement period to lease a new residence with tenant-based assistance under this paragraph.
Preference in case of relocation hardship
If the individual or family residing in any unit whose lease is terminated under clause (vi) is unable to lease a new residence pursuant to subclause (I), the public housing agency shall provide, at the option of the individual or family—
additional search time to such individual or family; or
preference for occupancy in a public housing unit owned or operated by the public housing agency.
Provision of reasonable relocation assistance
The public housing agency shall provide reasonable assistance to each individual or family residing in any unit whose lease is terminated under clause (vi) in finding a new residence, including the use of up to 2 months of any assistance abated pursuant to clause (ii) for relocation expenses, including moving expenses and security deposits. The public housing agency may require that an individual or family receiving assistance for a security deposit, remit, to the extent of such assistance, the amount of any security deposit refunded by the owner of the unit for which the lease was terminated.
Tenant caused damages
If a public housing agency determines that the noncompliance of a dwelling unit was caused by a tenant, member of the tenant’s family, or a guest of the tenant, the public housing agency may waive the applicability of this subparagraph.
Treatment of certain abatement assistance
Assistance amounts abated and used to make repairs or to contract for such repairs for life-threatening conditions pursuant to clause (ii)(II) or used for relocation assistance pursuant to clause (viii)(iv) shall be treated as costs which shall be considered in determining the allocation of renewal funding under subsection (dd)(2).
.
Leasing of units owned by PHA's
Section 8(o)(11) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(11)) is amended by striking the
Secretary shall require the unit of general local government or another entity
approved by the Secretary,
and inserting the public housing
agency shall arrange for a third party
.
Rent reform and income reviews
Rent for public housing and section 8 programs
Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)) is amended—
in subsection (a)—
in paragraph (1)
by inserting Low-income
occupancy requirement and rental payments.—
after
(1)
; and
by adding at the end the following new paragraphs:
Reviews of family income
Frequency
Reviews of family income for purposes of this section—
shall be made in the case of all families, upon the initial provision of housing assistance for the family;
shall be made annually thereafter, except as provided in subparagraph (B)(i);
shall be made 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 $1,000 (or such lower amount as the public housing agency or owner may, at the option of the agency or owner, establish) or more in annual adjusted income;
shall be made 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 $1,000 or more in annual adjusted income, 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 3 months of a certification period; and
may be made, in the discretion of the public housing agency, when the income of a family, including earned income, changes in an amount that is less than the amounts specified in clause (iii) or (iv), if the amount so specified for increases is not lower than the amount specified for decreases.
Fixed-income families
Self certification and 3-year review
In the case of any family described in clause (ii), after the initial review of the family’s income pursuant to subparagraph (A)(i), the public housing agency or owner shall not be required to conduct a review of the family’s income pursuant to subparagraph (A)(ii) for any year for which such family certifies, in accordance with such requirements as the Secretary shall establish, that the income of the family meets the requirements of clause (ii) of this subparagraph, except that the public housing agency or owner shall conduct a review of each such family’s income not less than once every 3 years.
Eligible families
A family described in this clause is a family who has an income, as of the most recent review pursuant to subparagraph (A) or clause (i) of this subparagraph, of which 90 percent or more consists of fixed income, as such term is defined in clause (iii).
Fixed income
For purposes of this subparagraph, the term fixed
income
includes income from—
the supplemental security income program under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act and payments pursuant to an agreement entered into under section 212(b) of Public Law 93–66;
Social Security payments;
Federal, State, local and private pension plans; and
other periodic payments received from annuities, insurance policies, retirement funds, disability or death benefits, and other similar types of periodic receipts.
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.
Calculation of income
Use of prior year’s or anticipated income
In determining the income of a family for purposes of paragraph (6)(A)(ii) or (6)(B)(i), a public housing agency or owner shall use the income of the family as determined by the agency or owner for the preceding year. In determining the income of a family under clauses (i), (iii), (iv), or (v) of paragraph (6)(A) a public housing agency or owner shall use the anticipated income of the family as estimated by the agency or owner for the coming year.
Inflationary adjustment for fixed income families
If, for any year, a public housing agency or owner determines the income for any family described in paragraph (6)(B)(ii), based on a review of the income of the family conducted during a preceding year, such income shall be adjusted by applying an inflationary factor as the Secretary shall, by regulation, establish.
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 for purposes of this section 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 Food Stamp Program as defined in section 3(h) of the Food Stamp Act of 1977). The Secretary shall work with other appropriate Federal agencies to develop procedures to enable public housing agencies and owners to have access to such income determinations made by other Federal programs.
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.
;
by striking subsections (d) and (e); and
by redesignating subsection (f) as subsection (d).
Income
Section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended—
by striking paragraph (4) and inserting the following new paragraph:
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:
Included amounts
Such term includes recurring gifts and receipts, actual income from assets, and profit or loss from a business.
Excluded amounts
Such term does not include any—
imputed return on assets;
amounts that would be eligible for exclusion under section 1613(a)(7) of the Social Security Act (42 U.S.C. 1382b(a)(7)); and
deferred Veterans Administration disability benefits that are received in a lump sum amount or in prospective monthly amounts.
Earned income of students
Such term does not include earned income of any dependent earned during any period that such dependent is attending school on a full-time basis or any grant-in-aid or scholarship amounts related to such attendance used for the cost of tuition or books.
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.
Other exclusions
Such term shall not include other exclusions from income as are established by the Secretary or any amount required by Federal law to be excluded from consideration as income. The Secretary may not require a public housing agency or owner to maintain records of any amounts excluded from income pursuant to this subparagraph.
; and
by striking paragraph (5) and inserting the following new paragraph:
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:
Elderly and disabled families
$700 in the case of any family that is an elderly family or a disabled family.
Dependents
In the case of any family that includes a member or members who—
are less than 18 years of age or attending school or vocational training on a full-time basis; or
is a person with disabilities who is 18 years of age or older and resides in the household,
Earned Income disregard
An amount equal to 10 percent of the lesser of the family’s earned income or $9,000.
Child care
The amount, if any, exceeding 5 percent of annual income used to pay for childcare for preschool age children, for before- or after-care for children in school, or for other childcare necessary to enable a member of the family to be employed or further his or her education.
Health and medical expenses
The amount, if any, by which 10 percent of annual family income is exceeded by the sum of—
in the case of any elderly or disabled family, any unreimbursed health and medical care expenses; and
any 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 to be employed.
Permissive deductions
Such additional deductions as a public housing agency or owner may, at its discretion, establish, except that the Secretary shall establish procedures to ensure that such deductions do not increase Federal expenditures.
.
Housing choice voucher program
Paragraph (5) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended—
in the paragraph
heading, by striking Annual review
and inserting
Reviews
;
in subparagraph (A)—
by striking
the provisions of
and inserting paragraphs (6) and (7) of
section 3(a) and to
; and
by striking
and shall be conducted upon the initial provision of housing assistance
for the family and thereafter not less than annually
; and
in subparagraph (B), by striking the second sentence.
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
and inserting annual adjusted income
.
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.
Impact on public housing revenues
Interaction with asset management rule
If a public housing agency determines that the application of the amendments made by this section results in a net reduction in the dwelling rental income of the public housing agency and such reduction in the first quarter of a calendar year is projected to be more than one-half percent of the net dwelling rents received by the public housing agency during the preceding calendar year, the public housing agency may, any time prior to April 15th of each year following the effective date of the amendments made by this section, certify to the Secretary of Housing and Urban Development the anticipated net reduction in annual dwelling rental income and the Secretary, within 45 days of receipt of such statement, shall reimburse the agency from funds appropriated for operating assistance under section 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)) if such funds are available. Each public housing agency so assisted shall maintain the books, documents, papers, and records supporting the certification submitted to the Secretary and such materials shall be available for review and audit by the Secretary and by the Comptroller General of the United States and their authorized representatives.
HUD reports on public housing revenue impact
For each of fiscal years 2009 and 2010, the Secretary of Housing and Urban Development shall submit a report to Congress identifying and calculating the impact of changes made by the amendments made by this section on the revenues and costs of operating public housing units.
Effective date
This subsection shall take effect during the first year that the amendments made by this section are effective.
Access to information
Section 904(2)(C) of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988 (42 U.S.C. 3544) is amended by striking the
period and inserting the following: , and each applicant or participant,
or the authorized representative thereof, shall have the opportunity to examine
all information obtained for purposes of verifying the applicant or
participant’s eligibility for or levels of benefits.
.
Eligibility for assistance based on assets and income
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:
Eligibility for assistance based on assets
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—
whose net family assets exceed $100,000, as such amount is adjusted annually by applying an inflationary factor as the Secretary considers appropriate; or
who has a present ownership interest in, and a legal right to reside in, real property that is suitable for occupancy as a residence, except that the prohibition under this subparagraph shall not apply to—
any property for which the family is receiving assistance under this Act;
any person that is a victim of domestic violence; or
any family that is making a good faith effort to sell such property.
Net family assets
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 real property to which the prohibition under paragraph (1)(B) does not apply, savings accounts in homeownership programs of the Department of Housing and Urban Development, or Family Self-Sufficiency program accounts.
Exclusions
Such term does not include—
necessary items of personal property, such as furniture and automobiles, as the public housing agency may determine for purposes of the voucher and public housing programs, and as the Secretary shall determine for purposes of other Federal housing programs;
the value of any retirement account;
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; and
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.
Trust funds
In cases where 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.
Self-certification
A public housing agency or owner may determine the net assets of a family, for purposes of this section, based on the amounts reported by the family at the time the agency or owner reviews the family’s income.
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).
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; and
continue to provide assistance to the family if the family rectifies its noncompliance with such limitation during the period of delay described under subparagraph (A).
.
Income
The United States Housing Act of 1937 is amended—
in section 3(a)(1)
(42 U.S.C. 1437a(a)(1)), by striking the first sentence and inserting the
following: Dwelling units assisted under this Act may be rented, and
assistance under this Act may be provided, whether initially or at time of
recertification, only to families who are low-income families at the time such
initial or continued assistance, respectively, is provided, except that
families residing in dwelling units as of the date of the enactment of the
Section 8 Voucher Reform Act of 2008 that, under agreements in effect on such
date of enactment, may have incomes up to 95 percent of local area median
income shall continue to be eligible for assistance at recertification as long
as they continue to comply with such income restrictions. Public housing
agencies and owners shall determine whether a family receiving assistance under
this Act is a low-income family at the time of recertification based on the
highest area median income determined by the Secretary for the area since the
family began receiving assistance under this Act. 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 prohibition under the preceding
sentence. When recertifying family income with respect to families residing in
dwelling units for which project-based assistance is provided, a project owner
may, in the owner’s discretion and only pursuant to a policy adopted by such
owner, choose not to enforce such prohibition. In the case of a family residing
in a dwelling unit assisted under this Act who does not comply with the
prohibition under the first sentence of this paragraph or the prohibition in
section 8(o)(4), 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 and may continue to provide assistance to the family if the
family rectifies its noncompliance with such limitation during this period of
delay.
;
in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking the matter preceding subparagraph (A) and inserting the following:
Eligible families
Assistance under this subsection may be provided, whether initially or at each recertification, only pursuant to subsection (t) to a family eligible for assistance under such subsection or to a family who at the time of such initial or continued assistance, respectively, is a low-income family that is—
; and
in section 8(c)(4) (42 U.S.C. 1437f(c)(4)),
by striking at the time it initially occupied such dwelling unit
and insert according to the restrictions under section
3(a)(1)
.
Targeting assistance to low-income working families
Vouchers
Section 16(b)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is amended—
by
inserting after do not exceed
the following: the higher
of (A) the poverty line (as such term is defined in section 673 of the Omnibus
Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision
required by such section) applicable to a family of the size involved, or
(B)
; and
by inserting
before the period at the end the following: ; and except that clause (A)
of this sentence shall not apply in the case of public housing agencies located
in Puerto Rico or any other territory or possession of the United
States
.
Public housing
Section 16(a)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437n(a)(2)(A)) is amended—
by inserting after
do not exceed
the following: the higher of (i) the
poverty line (as such term is defined in section 673 of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by
such section) applicable to a family of the size involved, or (ii)
;
and
by inserting
before the period at the end the following: ; and except that clause (i)
of this sentence shall not apply in the case of public housing agencies located
in Puerto Rico or any other territory or possession of the United
States
.
Project-based section 8 assistance
Section 16(b)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is amended—
by inserting after
do not exceed
the following: the higher of (A) the
poverty line (as such term is defined in section 673 of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by
such section) applicable to a family of the size involved, or (B)
;
and
by inserting
before the period at the end the following: ; and except that clause (A)
of this sentence shall not apply in the case of projects located in Puerto Rico
or any other territory or possession of the United States
.
Voucher renewal funding
In general
Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by striking subsection (dd) and inserting the following new subsection:
Tenant-based vouchers
Authorization of appropriations
There are authorized to be appropriated, for each of fiscal years 2009 through 2013, such sums as may be necessary for tenant-based assistance under subsection (o) for the following purposes:
To renew all expiring annual contributions contracts for tenant-based rental assistance.
To provide tenant-based rental assistance for—
relocation and replacement of housing units that are demolished or disposed of pursuant to the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104–134);
conversion of section 23 projects to assistance under this section;
the family unification program under subsection (x) of this section;
relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency;
enhanced vouchers authorized under subsection (t) of this section;
relocation and replacement of public housing units that are demolished or disposed of in connection with the HOPE VI program under section 24;
relocation and replacement of vouchers used to preserve public housing developed from sources other than under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g);
mandatory conversions of public housing to vouchers, pursuant to sections 33 of the United States Housing Act of 1937 (42 U.S.C. 1437z–5);
voluntary conversion of public housing to vouchers pursuant to section 22 of the United States Housing Act of 1937 (42 U.S.C. 1437t);
vouchers necessary to comply with a consent decree or court order;
relocation and replacement of public housing units that are demolished or disposed of pursuant to eminent domain, homeownership programs, in connection with a mixed-finance project under section 35 of the United States Housing Act of 1937 (42 U.S.C. 1437z–7), or otherwise;
vouchers to replace dwelling units that cease to receive project-based assistance under subsection (b), (c), (d), (e), or (v) of this section;
vouchers used to preserve public housing developed from sources other than under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g);
tenant protection assistance, including replacement and relocation assistance; and
emergency voucher assistance for the protection of victims of domestic violence, dating violence, sexual assault, or stalking.
Allocation of renewal funding among public housing agencies
From amounts appropriated for each year pursuant to paragraph (1)(A), the Secretary shall provide renewal funding for each public housing agency—
based on leasing and cost data from the preceding calendar year, as adjusted by an annual adjustment factor to be established by the Secretary, which shall be established using the smallest geographical areas for which data on changes in rental costs are annually available;
by making any adjustments necessary to provide for—
the first-time renewal of vouchers funded under paragraph (1)(B); and
any incremental vouchers funded in previous years;
by making any adjustments necessary for full-year funding of vouchers moved into or out of the jurisdiction of the public housing agency in the prior calendar year pursuant to the portability procedures under subsection (r)(2); and
by making such other adjustments as the Secretary considers appropriate, including adjustments necessary to address changes in voucher utilization rates and voucher costs related to natural and other major disasters.
Leasing and cost data
For purposes of subparagraph (A)(i), leasing and cost data shall be calculated annually by using the average for the preceding calendar year. Such leasing and cost data shall be adjusted to include vouchers that were set aside under a commitment to provide project-based assistance under subsection (o)(13) and to exclude amounts funded through advances under paragraph (3). Such leasing and cost data shall not include funds not appropriated for tenant-based assistance under section 8(o), unless the agency’s funding was prorated in the prior year and the agency used other funds to maintain vouchers in use.
Overleasing
For the purpose of determining allocations under subsection (A)(i), the leasing rate calculated for the prior calendar year may exceed an agency’s authorized voucher level, except that such calculation shall not include amounts resulting from a leasing rate in excess of 103 percent of an agency’s authorized vouchers in the prior year which results from the use of accumulated amounts, as referred to in paragraph (4)(A).
Moving to work
Notwithstanding subparagraphs (A) and (B), each public housing agency participating in any year in the moving to work demonstration under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note) shall be—
funded pursuant to its agreement under such program, if such agreement includes an alternate to the provisions of this subsection; and
subject to any pro rata adjustment made under subparagraph (E)(i).
Pro rata allocation
Insufficient funds
To the extent that amounts made available for a fiscal year are not sufficient to provide each public housing agency with the full allocation for the agency determined pursuant to subparagraphs (A) and (D), the Secretary shall reduce such allocation for each agency on a pro rata basis, except that renewal funding of enhanced vouchers under section 8(t) shall not be subject to such proration.
Excess funds
To the extent that amounts made available for a fiscal year exceed the amount necessary to provide each housing agency with the full allocation for the agency determined pursuant to subparagraphs (A) and (D), such excess amounts shall be used for the purposes specified in subparagraphs (B) and (C) of paragraph (4).
Prompt funding allocation
The Secretary shall allocate all funds under this subsection for each year before the latter of (i) February 15, or (ii) the expiration of the 45-day period beginning upon the enactment of the appropriations Act funding such renewals.
Advances
Authority
During the last 3 months of each calendar year, the Secretary shall provide funds out of any appropriations made under paragraph (1) for the fiscal year beginning on October 1 of that calendar year, to any public housing agency, at the request of the agency, in an amount up to 2 percent of the allocation for the agency for such calendar year, subject to subparagraph (C).
Use
Amounts advanced under subparagraph (A) may be used to pay for additional voucher costs, including costs related to temporary overleasing.
Use of prior year amounts
During the last 3 months of a calendar year, if amounts previously provided to a public housing agency for tenant-based assistance for such year or for previous years remain unobligated and available to the agency—
the agency shall exhaust such amounts to cover any additional voucher costs under subparagraph (B) before amounts advanced under subparagraph (A) may be so used; and
the amount that may be advanced under subparagraph (A) to the agency shall be reduced by an amount equal to the total of such previously provided and unobligated amounts.
Repayment
Amounts advanced under subparagraph (A) in a calendar year shall be repaid to the Secretary in the subsequent calendar year by reducing the amounts made available for such agency for such subsequent calendar year pursuant to allocation under paragraph (2) by an amount equal to the amount so advanced to the agency.
Offset
In general
The Secretary shall offset, from amounts provided under the annual contributions contract for a public housing agency for a calendar year, all accumulated amounts allocated under paragraph (2) and from previous years that are unused by the agency at the end of each calendar year except—
with respect to the offset under this subparagraph at the end of 2008, an amount equal to 12.5 percent of the amount allocated to the public housing agency for such year pursuant to paragraph (2)(A);
with respect to the offset under this subparagraph at the end of 2009, an amount equal to 7.5 percent of the amount allocated to the public housing agency for such year pursuant to paragraph (2)(A); and
with respect to the offset under this subparagraph at the end of each of 2010, 2011, and 2012, an amount equal to 5 percent of such amount allocated to the agency for such year. Notwithstanding any other provision of law, each public housing agency may retain all amounts not authorized to be offset under this subparagraph, and may use such amounts for all authorized purposes. Funds initially allocated prior to the effective date of the Section 8 Voucher Reform Act of 2008 for the purposes specified in paragraph (1)(B) shall not be included in the calculation of accumulated amounts subject to offset under this paragraph.
Reallocation
Not later than May 1 of each calendar year, the Secretary shall—
calculate the aggregate savings due to the offset of unused amounts for the preceding year recaptured pursuant to subparagraph (A);
set aside such amounts as the Secretary considers likely to be needed to reimburse public housing agencies for increased costs related to portability and family self-sufficiency activities during such year, which amounts shall be made available for allocation upon submission of a request that meets criteria prescribed by the Secretary; and
reallocate all remaining amounts among public housing agencies, with priority given based on the extent to which an agency has utilized the amount allocated under paragraph (2) for the agency to serve eligible families, as well as the relative need of communities for additional assistance under this subsection.
Use
Amounts reallocated to a public housing agency pursuant to subparagraph (B)(iii) may be used only to increase voucher leasing rates to the level eligible for renewal funding under paragraph (2)(C).
.
Absorption of vouchers from other agencies
In general
Section 8(r)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437f(r)(2)) is amended—
by striking
The public housing agency
and inserting (A)
In
general.—The public housing agency
; and
by adding the end the following:
Absorption and priority
In general
The public housing agency shall—
absorb any family that moves under this subsection into its program for voucher assistance under this section after the initial month, except that the Secretary may limit the absorption of vouchers in excess of a public housing agency’s authorized level if the Secretary makes the determination under subparagraph (C) that there is insufficient funding for such vouchers in the current year; and
have priority to receive additional funding from the Secretary for the net additional cost of housing assistance provided pursuant to this requirement from amounts made available pursuant to subsection (dd)(4)(B) or otherwise, except that the obligation to absorb vouchers under subclause (I) does not override any provision of a judgement, consent decree, contract with the Secretary pursuant to section 3(b)(6), or any other similar arrangement under which the public housing agency administers voucher assistance under this section without regard to any other applicable limitation on the public housing agency’s area of operation.
No delay of vouchers for families on waiting list
The Secretary shall provide the funding required to carry out the activities under clause (i) as needed for a public housing agency to meet its obligation under this subparagraph without delaying issuance of vouchers to families on its waiting list.
Exception
If in any fiscal year, the Secretary does not have sufficient funds available under subsection (dd)(4)(B) or that otherwise may be used for the purposes of this subsection, the Secretary shall suspend the requirement described in subparagraph (B). Such suspension shall take effect no earlier than 60 days after the Secretary provides notice of the suspension by electronic mail to all public housing agencies and to the public by posting of the notice on the website of the Department. The obligation of the Secretary to fund vouchers absorbed under subparagraph (B) shall continue for all vouchers that are leased prior to the effective date of such suspension.
.
Transition
The amendments made by paragraph (1) shall take effect January 1, 2010, provided that in each calendar quarter of 2010 and 2011, a public housing agency shall absorb no more than one-eighth of the vouchers subject to absorption on such effective date of each public housing agency that is providing assistance for the vouchers on such effective date. Public housing agencies may by mutual agreement alter the absorption rate established in the previous sentence.
Report to Congress
Not later than May 1, 2009, the Secretary of Housing and Urban Development shall provide to Congress an estimate of the net additional cost to the Department of Housing and Urban Development in the first year of implementation of the new requirements added by the amendments made in paragraph (1), and of the savings likely to be available in 2010 and 2011 as a result of the reduction in the permitted level of retained funds under subsection (dd)(4)(A) of section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f(dd)(4)(A)).
Vouchers for persons with disabilities
The Secretary of Housing and Urban Development shall develop and issue, to public housing agencies that received voucher assistance under section 8(o) for non-elderly disabled families pursuant to appropriations Acts, guidance to ensure that, to the maximum extent practicable, such vouchers continue to be provided upon turnover to qualified non-elderly disabled families.
Administrative fees
In general
Section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended—
in paragraph (1)—
by amending subparagraphs (B) and (C) to read as follows:
Calculation
The fee under this subsection shall—
be payable to each public housing agency for each month for which a dwelling unit is covered by an assistance contract;
be based on the per unit fee payable to the agency in fiscal year 2003, updated for each subsequent year as specified in subsection (iv), unless the Secretary establishes by rulemaking a revised method of calculating the per unit fee for each agency, which method—
shall otherwise comply with this subparagraph; and
may include performance incentives, consistent with subsection (o)(21);
include an amount for the cost of issuing vouchers to new participants who lease units in the jurisdiction of the agency or in another jurisdiction under the procedures established in subsection (r);
be updated each year using an index of changes in wage data or other objectively measurable data that reflect the costs of administering the program for such assistance, as determined by the Secretary; and
include an amount for the cost of family self-sufficiency coordinators, as provided in section 23(h)(1).
Publication
The Secretary shall cause to be published in the Federal Register the fee rate for each geographic area.
; and
by striking subparagraph (E); and
in paragraph (4),
by striking 1999
and inserting 2008
.
Administrative fees for family self-sufficiency program costs
Subsection (h) of section 23 of the United States Housing Act of 1937 (42 U.S.C. 1437u(h)) is amended by striking paragraph (1) and inserting the following new paragraph:
Section 8 fees
In general
The Secretary shall establish a fee under section 8(q) for the costs incurred in administering the self-sufficiency program under this section to assist families receiving voucher assistance through section 8(o).
Eligibility for fee
The fee shall provide funding for family self-sufficiency coordinators as follows:
Base fee
A public housing agency serving 25 or more participants in the Family Self-Sufficiency program under this section shall receive a fee equal to the costs of employing 1 full-time family self-sufficiency coordinator. An agency serving fewer than 25 such participants shall receive a prorated fee.
Additional fee
An agency that meets minimum performance standards shall receive an additional fee sufficient to cover the costs of employing a second family self-sufficiency coordinator if the agency has 75 or more participating families, and a third such coordinator if it has 125 or more participating families.
Previously funded agencies
An agency that received funding from the Department of Housing and Urban Development for more than 3 such coordinators in any of fiscal years 1998 through 2008 shall receive funding for the highest number of coordinators funded in a single fiscal year during that period, provided they meet applicable size and performance standards.
Initial year
For the first year in which a public housing agency exercises its right to develop a family self-sufficiency program for its residents, it shall be entitled to funding to cover the costs of up to 1 family self-sufficiency coordinator, based on the size specified in its action plan for such program.
State and regional agencies
For purposes of calculating the family self-sufficiency portion of the administrative fee under this subparagraph, each administratively distinct part of a State or regional public housing agency shall be treated as a separate agency.
Determination of number of coordinators
In determining whether a public housing agency meets a specific threshold for funding pursuant to this paragraph, the number of participants being served by the agency in its family self-sufficiency program shall be considered to be the average number of families enrolled in such agency’s program during the course of the most recent fiscal year for which the Department of Housing and Urban Development has data.
Proration
If insufficient funds are available in any fiscal year to fund all of the coordinators authorized under this section, the first priority shall be given to funding 1 coordinator at each agency with an existing family self-sufficiency program. The remaining funds shall be prorated based on the number of remaining coordinators to which each agency is entitled under this subparagraph.
Recapture
Any fees allocated under this subparagraph by the Secretary in a fiscal year that have not been spent by the end of the subsequent fiscal year shall be recaptured by the Secretary and shall be available for providing additional fees pursuant to subparagraph (B)(ii).
Performance Standards
Within 6 months after the date of the enactment of this paragraph, the Secretary shall publish a proposed rule specifying the performance standards applicable to funding under clauses (ii) and (iii) of subparagraph (B). Such standards shall include requirements applicable to the leveraging of in-kind services and other resources to support the goals of the family self-sufficiency program.
Data collection
Public housing agencies receiving funding under this paragraph shall collect and report to the Secretary, in such manner as the Secretary shall require, information on the performance of their family self-sufficiency programs.
Evaluation
The Secretary shall conduct a formal and scientific evaluation of the effectiveness of well-run family self-sufficiency programs, using random assignment of participants to the extent practicable. Not later than the expiration of the 4-year period beginning upon the enactment of this paragraph, the Secretary shall submit an interim evaluation report to Congress. Not later than the expiration of the 8-year period beginning upon such enactment, the Secretary shall submit a final evaluation report to Congress. There is authorized to be appropriated $10,000,000 to carry out the evaluation under this subparagraph.
Incentives for innovation and high performance
The Secretary may reserve up to 10 percent of the amounts made available for administrative fees under this paragraph to provide support to or reward family self-sufficiency programs that are particularly innovative or highly successful in achieving the goals of the program.
.
Repeal
Section 202 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (42 U.S.C. 1437f note; Public Law 104–204; 110 Stat. 2893) is hereby repealed.
Homeownership
Section 8 homeownership downpayment program
Section 8(y)(7) of the United States Housing Act of 1937 (42 U.S.C. 1437f(y)(7)) is amended by striking subparagraphs (A) and (B) and inserting the following new subparagraph:
In general
Subject to the provisions of this paragraph, in the case of a family on whose behalf rental assistance under section 8(o) has been provided for a period of not less than 12 months prior to the date of receipt of downpayment assistance under this paragraph, 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 agency, provide a downpayment assistance grant in accordance with subparagraph (B).
Grant requirements
A downpayment assistance grant under this paragraph—
shall be used by the family only as a contribution toward the downpayment and reasonable and customary closing costs required in connection with the purchase of a home;
shall be in the form of a single 1-time grant; and
may not exceed $10,000.
No effect on obtaining outside sources for downpayment assistance
This Act may not be construed to prohibit a public housing agency from providing downpayment assistance to families from sources other than a grant provided under this Act, or as determined by the public housing agency.
.
Use of vouchers for manufactured housing
Section 8(o)(12) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(12)) is amended—
in subparagraph (A), by striking the period at the end of the first sentence and all that follows through “of” in the second sentence and inserting “and rents”; and
in subparagraph (B)—
in clause (i), by
striking the rent
and all that follows and inserting the
following: “rent shall mean the sum of the monthly payments made by a family
assisted under this paragraph to amortize the cost of purchasing the
manufactured home, including any required insurance and property taxes, the
monthly amount allowed for tenant-paid utilities, and the monthly rent charged
for the real property on which the manufactured home is located, including
monthly management and maintenance charges.”;
by striking clause (ii); and
in clause (iii)—
by inserting after the period at the end the following: “If the amount of the monthly assistance payment for a family exceeds the monthly rent charged for the real property on which the manufactured home is located, including monthly management and maintenance charges, a public housing agency may pay the remainder to the family, lender, or utility company, or may choose to make a single payment to the family for the entire monthly assistance amount.”; and
by redesignating such clause as clause (ii).
Performance assessments
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:
Performance assessments
Establishment
The Secretary shall, by regulation, establish standards and procedures for assessing the performance of public housing agencies in carrying out the programs for tenant-based rental assistance under this subsection and for homeownership assistance under subsection (y).
Contents
The standards and procedures under this paragraph shall provide for assessment of the performance of public housing agencies in the following areas:
Quality of dwelling units obtained using such assistance.
Extent of utilization of assistance amounts provided to the agency and of authorized vouchers, adjusted for vouchers set aside to meet commitments under paragraph (13) and to take into account the time required for additional lease-up efforts resulting from absorption of a significant number or share of an agency's vouchers under subsection (r).
Timeliness and accuracy of reporting by the agency to the Secretary.
Effectiveness in carrying out policies to achieve deconcentration of poverty.
Reasonableness of rent burdens, consistent with public housing agency responsibilities under section 8(o)(1)(E)(iii).
Accurate calculations of rent, utility allowances, and subsidy payments.
Effectiveness in carrying out family self-sufficiency activities.
Timeliness of actions related to landlord participation.
Compliance with targeting requirements under section 16(b).
Such other areas as the Secretary considers appropriate.
Biennial assessment
Not later than 2 years after the date of enactment of this paragraph, and at least every 2 years thereafter, the Secretary, using the standards and procedures established under this paragraph, shall—
conduct an assessment of the performance of each public housing agency carrying out a program referred to in subparagraph (A);
make such assessment available to the public housing agency and to the public via the website of the Department of Housing and Urban Development; and
submit a report to Congress regarding the results of each such assessment.
Use of assessments to assist performance
The Secretary shall, by regulation and based upon the results of the assessments of public housing agencies conducted under this paragraph, establish procedures and mechanisms to assist poorly performing public housing agencies in becoming ably performing public housing agencies.
.
PHA project-based assistance
Section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended—
by striking subparagraph (B) and inserting the following new subparagraph:
Percentage limitation
In general
Subject to clause (ii), not more than 25 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.
Exception
An agency may attach up to an additional 5 percent of the funding available for tenant-based assistance under this section to structures pursuant to this paragraph for dwelling 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).
;
by striking subparagraph (D) and inserting the following new subparagraph:
Income mixing requirement
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.
Exceptions
Certain housing
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 only where comprehensive services are provided to special populations such as to individuals who were formerly homeless and other populations with special needs. For purposes of the preceding sentence, the term single family properties means buildings with no more than 4 dwelling units.
Certain areas
With respect to areas
in which fewer than 75 percent of families issued vouchers become participants
in the program, the public housing agency has established the payment standard
at 110 percent of the fair market rent for all census tracts in the area for
the previous 6 months, the public housing agency has requested a higher payment
standard, and the public housing agency grants an automatic extension of 90
days (or longer) to families with vouchers who are attempting to find housing,
clause (i) shall be applied by substituting 40 percent
for
25
percent
.
;
in the first
sentence of subparagraph (F), by striking 10 years
and inserting
15 years
;
in subparagraph (G)—
by inserting after
the period at the end of the first sentence the following: Such contract
may, at the election of the public housing agency and the owner of the
structure, specify that such contract shall be extended for renewal terms of up
to 15 years each, if the agency makes the determination required by this
subparagraph and the owner is in compliance with the terms of the
contract.
; and
by adding at the
end the following: 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.
;
in subparagraph
(H), by inserting before the period at the end of the first sentence the
following: , 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)
;
in
subparagraph (I)(i), by inserting before the semicolon the following: ,
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
;
in subparagraph (J)—
by striking the fifth and sixth sentences
and inserting the following: A public housing agency may establish and
utilize procedures for maintaining site-based waiting lists under which
applicants may apply directly at, or otherwise designate to the public housing
agency, the project or projects in which they seek to reside, except that all
applicants on the waiting list of an agency for assistance under this
subsection shall be permitted to place their names on such separate list. All
such procedures shall comply with title VI of the Civil Rights Act of 1964, the
Fair Housing Act, and other applicable civil rights laws. 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, or a family
on a site-based waiting list that complies with the requirements of this
subparagraph. A public housing agency shall fully disclose to each applicant
each option in the selection of a project in which to reside that is available
to the applicant.
; and
by inserting after the third sentence the
following new sentence: Any family who resides in a dwelling unit
proposed to be assisted under this paragraph, or in a unit to be replaced by a
proposed unit to be assisted under this paragraph shall be given an absolute
preference for selection for placement in the proposed unit, if the family is
otherwise eligible for assistance under this subsection.
; and
by adding at the end the following new subparagraphs:
Structure owned by agency
Notwithstanding any other provision of law, as part of an initiative to improve, redevelop, or replace a public housing site, a public housing agency may attach assistance to an existing, newly constructed, or rehabilitated structure in which the public housing agency has an ownership interest, without following a competitive process, provided that the agency includes such action in its public housing agency plan approved under section 5A and the units that will receive such assistance will not receive assistance under section 9. The preceding sentence shall not be construed to limit a public housing agency’s ability to attach assistance to structures under applicable law.
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—
dwelling units in cooperative housing; and
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.
Reviews
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 subparagraph in the case of a housing assistance payments contract for an existing structure, or if a subsidy layering review has been conducted by the applicable State or local agency.
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, except to the extent such a review is otherwise required by law or regulation.
Leases and tenancy
Assistance provided under this paragraph shall be subject to the provisions of paragraph (7), except that subparagraph (A) of such paragraph shall not apply.
Allowable transfers
To promote regional mobility and increase housing and economic opportunities through expanded use of project-based voucher assistance, a public housing agency may transfer a portion of its vouchers and related budget authority to a public housing agency that administers a program under this subsection in another jurisdiction in the same or contiguous metropolitan area or county. The Secretary shall encourage such voluntary agreements and promptly execute the necessary funding and contract modifications.
.
Rent burdens
Reviews
Section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by striking subparagraph (E) and inserting the following new subparagraph:
Reviews
Rent burdens
Monitor and report
The Secretary shall monitor rent burdens and submit a report to Congress annually on the percentage of families assisted under this subsection, occupying dwelling units of each size, that pay more than 30 percent of their adjusted incomes for rent and such percentage that pay more than 40 percent of their adjusted incomes for rent. Using information regularly reported by public housing agencies, the Secretary shall provide public housing agencies, on an annual basis, a report with the information described in the first sentence of this clause, and may require a public housing agency to modify a payment standard that results in a significant percentage of families assisted under this subsection, occupying dwelling units of any size, paying more than 30 percent of their adjusted incomes for rent. In implementing the requirements of this clause, the Secretary shall distinguish excessive rent burdens that result solely from the methods of determining a family’s rent contribution under section (3)(A)(3) or clauses (ii) or (iii) of paragraph (2)(A) of this subsection.
Public availability
Each public housing agency shall make publicly available the information on rent burdens provided by the Secretary pursuant to subclause (I), and, for agencies located in metropolitan areas, the information on concentration provided by the Secretary pursuant to clause (ii).
Concentration of poverty
The Secretary shall submit a report to Congress annually on the degree to which families of particular racial and ethnic groups assisted under this subsection in each metropolitan area are clustered in higher poverty areas, and the extent to which greater geographic distribution of such assisted families could be achieved, including by increasing payment standards for particular communities within such metropolitan areas.
Public housing agency responsibilities
If a public housing agency has a high degree of concentration of families of particular racial and ethnic groups clustered in a higher poverty area or if such agency has more than 5 percent of families residing in units assisted under this subsection who pay more than 40 percent of their adjusted incomes for rent—
the public housing agency shall adjust its payment standard or explain its reasons for not making such adjustment; and
the Secretary may not deny the request of the public housing agency to set a payment standard up to 120 percent of the fair market rent to remedy excessive rent burdens or undue concentration of families assisted under this subsection in lower rent, higher poverty sections of a metropolitan area, if the public housing agency—
has conducted a thorough review of its payment standards;
conducts a thorough review of its rent reasonableness policies and procedures, and properly conducts a review of its rent reasonableness on an ongoing basis;
has conducted outreach to landlords in all areas within the service area of the public housing agency;
provides search assistance to such families, if undue concentration is the reason for the adjustment of the payment standard;
has completed a review of utility allowances and burdens on such families; and
the public housing agency has, for the previous 6-month period, had its payment standards set at 110 percent of the fair market rent.
.
Public housing agency plan
Section 5A(d)(4) of the United States Housing Act of 1937 (42 U.S.C. 1437c–1(d)(4)) is amended by inserting before the period at the end the following: “, including the report with respect to the agency furnished by the Secretary pursuant to section 8(o)(1)(E) concerning rent burdens and, if applicable, geographic concentration of voucher holders, any changes in rent or other policies the public housing agency is making to address excessive rent burdens or concentration, and if the public housing agency is not adjusting its payment standard, its reasons for not doing so.”.
Rent burdens for persons with disabilities
Subparagraph (D) of section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended 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 seek approval of the Secretary to use a payment standard greater than 120 percent of the fair market rent as a reasonable accommodation for a person with a disability”.
Rent burdens for voucher holders in Low-Income Housing Tax Credit units
Section 8(o)(10)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(10)(A)) is amended by inserting before the period the following: “, except that in a unit receiving tax credits under section 42 of the Internal Revenue Code or assistance under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act for which a housing assistance contract not subject to paragraph (13) is established—
no comparison with rent for units in the private, unassisted local market shall be required if the rent is at or below the rent for other comparable units receiving such tax credits or assistance in the project that are not occupied by tenant-based voucher holders; and
the rent shall not be considered reasonable if it exceeds the higher of (I) the rents charged for other comparable units receiving such tax credits or assistance in the project that are not occupied by tenant-based voucher holders and (II) the payment standard established by the public housing agency for a unit of the particular size.
.
Establishment of fair market rent
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—
by inserting
(A)
after the paragraph designation;
by striking the seventh, eighth, and ninth sentences; and
by adding at the end the following:
The Secretary shall endeavor to define market areas for purposes of this paragraph in a manner that results in fair market rentals that are adequate to cover typical rental costs of units suitable for occupancy by persons assisted under this section in as wide a range of communities as is feasible, including communities with low poverty rates.
The Secretary at a minimum shall define a separate market area for each—
metropolitan city, as such term is defined in section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)), with more than 40,000 rental dwelling units; and
county or in the case of a county that includes a metropolitan city specified in subclause (I), for the remainder of that county located outside the boundaries of such metropolitan city.
Notwithstanding clause (ii), the Secretary may establish minimum fair market rents within each State to ensure that fair market rents in a State are adequate to cover the cost of standard quality housing in that State.
The Secretary shall, at the request of 1 or more public housing agency, establish a separate market area for part or all of the area under the jurisdiction of such agency, if—
the requested market area contains at least 20,000 rental dwelling units;
the areas contained in the requested market area are geographically contiguous and share similar housing market characteristics;
adequate data are available to establish a reliable fair market rental for the requested market area, and for the remainder of the market area in which it is currently located; and
establishing the requested market area would raise or lower the fair market rental by 10 percent or more at the time the requested market area is established.
The Secretary shall not reduce the fair market rental in a market area as a result of a change in the percentile of the distribution of market rents used to establish the fair market rental.
.
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
.
Screening of applicants
Subparagraph (B) of section 8(o)(6) of the United States Housing Act of 1937 (1437f(o)(6)(B)) is amended—
by inserting after the period at the end of
the second sentence the following: A public housing agency’s elective
screening shall be limited to criteria that are directly related to an
applicant’s ability to fulfill the obligations of an assisted lease and shall
consider mitigating circumstances related to such applicant. The requirements
of the prior sentence shall not limit the ability of a public housing agency to
deny assistance based on the applicant's criminal background or any other
permissible grounds for denial under subtitle F of title V of the Quality
Housing and Work Responsibility Act of 1998 (42 U.S.C. 13661 et seq., relating
to safety and security in public and assisted housing), subject to the
procedural requirements of this section. Any applicant or participant
determined to be ineligible for admission or continued participation to the
program shall be notified of the basis for such determination and provided,
within a reasonable time after the determination, an opportunity for an
informal hearing on such determination at which mitigating circumstances,
including remedial conduct subsequent to the conduct that is the basis of such
consideration.
; and
by adding at the
end the following: Public housing tenants requesting tenant-based
voucher assistance under this subsection to relocate from public housing as a
result of the demolition or disposition of public housing shall not be
considered new applicants under this paragraph and shall not be subject to
elective screening by the public housing agency.
.
Enhanced vouchers
In general
Section 8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)) is amended—
in the matter
preceding subparagraph (A), by inserting and shall not require that the
family requalify under the selection standards for a public housing agency in
order to be eligible for such assistance
after subsection
(o)
; and
by amending subparagraph (B) to read as follows:
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 regardless of unit and family size standards normally used by the administering public housing agency (except that tenants may be required to move to units of appropriate size if available on the premises), and the owner of the unit shall accept the enhanced voucher and terminate the tenancy only for serious or repeated violation of the terms and conditions of the lease or for violation of applicable law; 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;
.
Rulemaking
Not later than 6 months after the date of enactment of this Act, the Secretary of Housing and Urban Development shall promulgate regulations implementing the amendments made by subsection (a).
Project-based preservation vouchers
Enhanced vouchers
Section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437(t)(1)) is amended by adding at the end the following new paragraph:
Authorization of preservation project-based voucher assistance in lieu of enhanced voucher assistance
Notwithstanding any other provision of law, preservation project-based voucher assistance may be provided pursuant to subsection (o)(13)(Q) in lieu of enhanced voucher assistance at the request of the owner of the multifamily housing project, subject to the determinations of the public housing agency pursuant to clause (ii) of subsection (o)(13)(Q). Preservation project-based voucher assistance provided pursuant to subsection (o)(13)(Q) in lieu of enhanced voucher assistance shall be subject to the provisions of subsection (o)(13)(Q) and shall not be subject to the provisions of this subsection.
.
PHA project-based assistance
Section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended by adding at the end the following new subparagraph:
Preservation project-based voucher assistance
In general
The Secretary is authorized to provide assistance under this paragraph in lieu of enhanced voucher assistance under subsection (t) to a public housing agency that enters into a contract with an owner of a multifamily housing project upon the occurrence of an eligibility event with respect to the project as defined in subsection (t)(2). All owners of projects for which enhanced voucher assistance would otherwise be provided may request and receive a contract for preservation project-based voucher assistance at the project in lieu of enhanced voucher assistance upon the occurrence of an eligibility event with respect to the project, subject to the determinations of the public housing agency in clause (ii). The contract shall cover all of the units in the project for which enhanced voucher assistance would otherwise be provided under subsection (t).
Public housing agency determinations
Prior to entering into a contract pursuant to this subparagraph, the public housing agency shall have determined that (I) the housing to be assisted hereunder is economically viable, and that (II) there is significant demand for the housing, or the housing will contribute to a concerted community revitalization plan or to the goal of deconcentrating poverty and expanding housing and economic opportunities, or the continued affordability of the housing otherwise is an important asset to the community. The determinations of the public housing agency required in the previous sentence shall be in lieu of meeting the requirements of subparagraph (C).
Special rules
Funding provided for preservation project-based voucher assistance pursuant to this subparagraph shall be disregarded for the purpose of calculating the limitation on attaching funding to structures otherwise applicable to public housing agency project-based assistance pursuant to subparagraph (B). Assistance under this subparagraph shall not be subject to the requirements of subparagraph (D).
Eligibility
Notwithstanding any other provision of law, each family residing in a project on the date of the eligibility event that would otherwise be eligible for enhanced voucher assistance under subsection (t) shall be eligible for preservation project-based voucher assistance under this subparagraph.
.
Demonstration program waiver authority
Authority to enter into agreements
Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may enter into such agreements as may be necessary with the Social Security Administration and the Secretary of Health and Human Services to allow for the participation, in any demonstration program described in subsection (c), by the Department of Housing and Urban Development and the use under such program of housing choice vouchers under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
Waiver of income requirements
The Secretary of Housing and Urban Development may, to the extent necessary to allow rental assistance under section 8(o) of the United States Housing Act of 1937 to be provided on behalf of persons described in subsection (c) who participate in a demonstration program described in such subsection, and to allow such persons to be placed on a waiting list for such assistance, partially or wholly disregard increases in earned income for the purpose of rent calculations under section 3 for such persons.
Demonstration programs
A demonstration program described in this subsection is a demonstration program of a State that provides for persons with significant disabilities to be employed and continue to receive benefits under programs of the Department of Health and Human Services and the Social Security Administration, including the program of supplemental security income benefits under title XVI of the Social Security Act, disability insurance benefits under title II of such Act, and the State program for medical assistance (Medicaid) under title XIX of such Act.
Study to identify obstacles to using vouchers in federally subsidized housing projects
Study
The Comptroller General of the United States shall conduct a study of (1) the housing voucher program authorized under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), and (2) other federally subsidized housing programs, to determine whether any statutory, regulatory, or administrative provisions of the housing voucher program or of other federally subsidized housing programs, or policies and practices of housing owners or public housing agencies or other agencies, may have the effect of making occupancy by voucher holders in federally subsidized housing projects more difficult to obtain than occupancy by non-voucher holders. In conducting the study required under this subsection the Comptroller General shall determine if any gaps exist in the statute, regulations, or administration of the housing voucher program or of other federally subsidized housing programs and policies and practices of housing owners or public housing agencies or other agencies that, if addressed, could eliminate or reduce obstacles to voucher holders in seeking occupancy in federally subsidized housing projects. Such study shall include data on the use of housing vouchers in federally subsidized housing projects.
Definition
As
used in this section, the term federally subsidized housing
projects
includes projects assisted pursuant to the HOME investment
partnerships program under title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12721 et seq.) and those projects receiving
the benefit of low-income housing credits under section 42 of the Internal
Revenue Code of 1986 (26 U.S.C. 42).
Report
Not later than 6 months after the date of enactment of this Act, the Comptroller General shall report to Congress the findings from the study required under subsection (a) and any recommendations for statutory, regulatory, or administrative changes.
Collection of data on tenants in projects receiving tax credits
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:
Collection of data on tenants in projects receiving tax credits
In general
State agencies administering credits under section 42 of the Internal Revenue Code shall furnish to the Secretary of Housing and Urban Development, not less than annually, data concerning the race, ethnicity, family composition, age, income, use of rental assistance under section 8(o) of the United States Housing Act of 1937 or other similar assistance, disability status, and monthly rental payments of households residing in each property receiving such credits. State agencies shall, to the extent feasible, collect such data through existing reporting processes and in a manner that minimizes burdens on property owners. In the case of a household continuing to reside in the same unit, such data may rely on information provided by the household in a previous year for categories of information that are not subject to change or if information for the current year is not readily available to the owner of the property.
Standards and definitions
The Secretary of Housing and Urban Development shall—
by rule, establish standards and definitions for the data collected under subsection (a);
provide States with technical assistance in establishing systems to compile and submit such data; and
in coordination with other Federal agencies administering housing programs, establish procedures to minimize duplicative reporting requirements for properties assisted under multiple housing programs.
Public availability of reports
The Secretary of Housing and Urban Development shall compile and make publicly available not less than annually the data furnished by State agencies under subsection (a).
Authorization of appropriations
There are authorized to be appropriated $2,500,000 for fiscal year 2009 and $900,000 for each of the fiscal years 2010 to 2013 to cover the cost of the activities required under subsections (b) and (c).
.
Agency authority for utility payments in certain circumstances
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:
Authority of public housing agencies to make direct payments for utilities when owner fails to pay
In general
If the owner has failed to pay for utilities that are the responsibility of the owner under the lease or applicable law, the public housing agency is authorized to utilize subsidy payments otherwise due the owner to pay for continued utility service to avoid hardship to program participants.
Notice
Before making utility payments as described in subparagraph (A), the public housing agency shall take reasonable steps to notify the owner that it intends to make payments to a utility provider in lieu of payments to the owner, except prior notification shall not be required in any case in which the unit will be or has been rendered uninhabitable due to the termination or threat of termination of service, in which case the public housing agency shall notify the owner within a reasonable time after making such payment.
.
Access to HUD programs for persons with limited English proficiency
HUD responsibilities
To allow the Department of Housing and Urban Development to better serve persons with limited proficiency in the English language by providing technical assistance to recipients of Federal funds, the Secretary of Housing and Urban Development shall take the following actions:
Task force
Within 90 days after the enactment of this Act, convene a
task force comprised of appropriate industry groups, recipients of funds from
the Department of Housing and Urban Development (in this section referred to as
the Department
), community-based organizations that serve
individuals with limited English proficiency, civil rights groups, and
stakeholders, which shall identify a list of vital documents, including
Department and certain property and other documents, to be competently
translated to improve access to federally conducted and federally assisted
programs and activities for individuals with limited English proficiency. The
task force shall meet not less frequently than twice per year.
Translations
Within 6 months after identification of documents pursuant to paragraph (1), produce translations of the documents identified in all necessary languages and make such translations available as part of the library of forms available on the website of the Department and as part of the clearinghouse developed pursuant to paragraph (4).
Plan
Develop and carry out a plan that includes providing resources of the Department to assist recipients of Federal funds to improve access to programs and activities for individuals with limited English proficiency, which plan shall include the elements described in paragraph (4).
Housing information resource center
Develop and maintain a housing information resource center to facilitate the provision of language services by providers of housing services to individuals with limited English proficiency. Information provided by such center shall be made available in printed form and through the Internet. The resources provided by the center shall include the following:
Translation of written materials
The center may provide, directly or through contract, vital documents from competent translation services for providers of housing services.
Toll-free customer service telephone number
The center shall provide a 24-hour toll-free interpretation service telephone line, by which recipients of funds of the Department and individuals with limited English proficiency may—
obtain information about federally conducted or federally assisted housing programs of the Department;
obtain assistance with applying for or accessing such housing programs and understanding Federal notices written in English; and
communicate with housing providers. and learn how to access additional language services.
Document clearinghouse
The center shall collect and evaluate for accuracy or develop, and make available, templates and documents that are necessary for consumers, relevant industry representatives, and other stakeholders of the Department, to access, make educated decisions, and communicate effectively about their housing, including—
administrative and property documents;
legally binding documents;
consumer education and outreach materials;
documents regarding rights and responsibilities of any party; and
remedies available to consumers.
Study of language assistance programs
The center shall conduct a study that evaluates best-practices models for all programs of the Department that promote language assistance and strategies to improve language services for individuals with limited English proficiency. Not later than 18 months after the date of the enactment of this Act, the center shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, which shall provide recommendations for implementation, specific to programs of the Department, and information and templates that could be made available to all recipients of grants from the Department.
Cultural and linguistic competence materials
The center shall provide information relating to culturally and linguistically competent housing services for populations with limited English proficiency.
Authorization of appropriations
There are authorized to be appropriated such sums as may be necessary to carry out subsection (a).
Report
Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, and annually thereafter, the Secretary of Housing and Urban Development shall submit a report regarding its compliance with the requirements under subsection (a) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
Authorization of appropriations
There is authorized to be appropriated the amount necessary for each of fiscal years 2009 through 2013 to provide public housing agencies with incremental tenant-based assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) sufficient to assist 20,000 incremental dwelling units in each such fiscal year. A preference for allocation of such incremental tenant-based assistance, as part of the competitive process required by section 213(d) of the Housing and Community Development Act of 1974 (42 U.S.C. 1439(d)), is to be given to (1) preserving affordable housing, including State public housing, and other housing that needs operating support in order to remain affordable, and (2) entities that are providing voucher assistance on a regional basis.
Effective date
In general
Except as otherwise specifically provided in this Act, this Act and the amendments made by this Act, shall take effect on January 1, 2009.
Exception
Rent reforms
Sections 3, 4, and 12 of this Act, and the amendments made by such sections, shall take effect beginning of the first day of fiscal year 2010, and shall apply to each fiscal year thereafter.
Notification requirement
Beginning on the date of enactment of this Act, public housing agencies and owners of dwelling units assisted under title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) shall notify tenants as soon as possible of the—
major changes made by the amendments in sections 3 and 4, and how such changes affect the current tenants occupying such units; and
potential effects of such changes on current tenants in general.