Note: This document was edited by PHADA to include only Title V of H.R. 4194 -- the Quality Housing and Work Responsibility Act. The Fiscal Year 1999 HUD Appropriations (Title II of H.R. 4194) is also available.
H.R.4194
TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM
SEC. 501. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE- This title may be cited as the `Quality Housing and Work Responsibility Act of 1998'.
(b) TABLE OF CONTENTS- The table of contents for this title is as follows:
TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM
Sec. 501. Short title and table of contents.
Sec. 502. Findings and purposes.
Sec. 503. Effective date and regulations.
Subtitle A--General Provisions
Sec. 505. Declaration of policy and public housing agency organization.
Sec. 506. Definitions.
Sec. 507. Minimum rent.
Sec. 508. Determination of adjusted income and median income.
Sec. 509. Family self-sufficiency program.
Sec. 510. Prohibition on use of funds.
Sec. 511. Public housing agency plan.
Sec. 512. Community service and family self-sufficiency requirements.
Sec. 513. Income targeting.
Sec. 514. Repeal of Federal preferences.
Sec. 515. Joint ventures and consortia of public housing agencies; repeal of energy conservation provisions.
Sec. 516. Public housing agency mortgages and security interests.
Sec. 517. Mental health action plan.
Subtitle B--Public Housing
Part 1--Capital and Operating Assistance
Sec. 518. Contributions for lower income housing projects.
Sec. 519. Public housing capital and operating funds.
Sec. 520. Total development costs.
Sec. 521. Sanctions for improper use of amounts.
Sec. 522. Repeal of modernization fund.
Part 2--Admissions and Occupancy Requirements
Sec. 523. Family choice of rental payment.
Sec. 524. Occupancy by police officers and over-income families.
Sec. 525. Site-based waiting lists.
Sec. 526. Pet ownership.
Part 3--Management, Homeownership, and Demolition and Disposition
Sec. 529. Contract provisions.
Sec. 530. Housing quality requirements.
Sec. 531. Demolition and disposition of public housing.
Sec. 532. Resident councils and resident management corporations.
Sec. 533. Conversion of public housing to vouchers; repeal of family investment centers.
Sec. 534. Transfer of management of certain housing to independent manager at request of residents.
Sec. 535. Demolition, site revitalization, replacement housing, and tenant-based assistance grants for projects.
Sec. 536. Homeownership.
Sec. 537. Required conversion of distressed public housing to tenant-based assistance.
Sec. 538. Linking services to public housing residents.
Sec. 539. Mixed-finance public housing.
Subtitle C--Section 8 Rental and Homeownership Assistance
Sec. 545. Merger of certificate and voucher programs.
Sec. 546. Public housing agencies.
Sec. 547. Administrative fees.
Sec. 548. Law enforcement and security personnel in assisted housing.
Sec. 549. Advance notice to tenants of expiration, termination, or owner nonrenewal of assistance contract.
Sec. 550. Technical and conforming amendments.
Sec. 551. Funding and allocation.
Sec. 552. Treatment of common areas.
Sec. 553. Portability.
Sec. 554. Leasing to voucher holders.
Sec. 555. Homeownership option.
Sec. 556. Renewals.
Sec. 557. Manufactured housing demonstration program.
Sec. 558. Authorizations of appropriations.
Sec. 559. Rulemaking and implementation.
Subtitle D--Home Rule Flexible Grant Demonstration
Sec. 561. Home rule flexible grant demonstration program.
Subtitle E--Accountability and Oversight of Public Housing Agencies
Sec. 563. Study of alternative methods for evaluating public housing agencies.
Sec. 564. Public housing management assessment program.
Sec. 565. Expansion of powers for dealing with public housing agencies in substantial default.
Sec. 566. Audits.
Sec. 567. Advisory council for housing authority of New Orleans.
Sec. 568. Treatment of troubled PHA's.
Subtitle F--Safety and Security in Public and Assisted Housing
Sec. 575. Provisions applicable only to public housing and section 8 assistance.
Sec. 576. Screening of applicants for federally assisted housing.
Sec. 577. Termination of tenancy and assistance for illegal drug users and alcohol abusers in federally assisted housing.
Sec. 578. Ineligibility of dangerous sex offenders for admission to public housing.
Sec. 579. Definitions.
Subtitle G--Repeals and Related Provisions
Sec. 581. Annual report.
Sec. 582. Repeals relating to public housing and section 8 programs.
Sec. 583. Public housing flexibility in CHAS.
Sec. 584. Use of American products.
Sec. 585. GAO study on housing assistance program costs.
Sec. 586. Amendments to Public and Assisted Housing Drug Elimination Act of 1990.
Sec. 587. Review of drug elimination program contracts.
Sec. 588. Prohibition on use of assistance for employment relocation activities.
Sec. 589. Treatment of occupancy standards.
Sec. 590. Income eligibility for HOME and CDBG programs.
Sec. 591. Report on single family and multifamily homes.
Sec. 592. Use of assisted housing by aliens.
Sec. 593. Protection of senior homeowners under reverse mortgage program.
Sec. 594. Housing counseling.
Sec. 595. Native American housing assistance.
Sec. 596. CDBG public services cap.
Sec. 597. Moderate rehabilitation program.
Sec. 598. National cities in schools program.
Sec. 599. Tenant participation in multifamily housing projects.
Sec. 599A. Clarification regarding recreational vehicles.
Sec. 599B. Determination of low-income eligibility for homeownership assistance.
Sec. 599C. Amendments to rural housing programs.
Sec. 599D. Reauthorization of national flood insurance program.
Sec. 599E. Assistance for self-help housing providers
Sec. 599F. Special mortgage insurance assistance.
Sec. 599G. Rehabilitation demonstration grant program.
Sec. 599H. Assistance for certain localities.
SEC. 502. FINDINGS AND PURPOSES.
(a) FINDINGS- Congress finds that--
(1) there exists throughout the Nation a need for decent, safe, and affordable housing;
(2) the inventory of public housing units owned, assisted, or operated by public housing agencies, an asset in which the Federal Government has invested over $90,000,000,000, has traditionally provided rental housing that is affordable to low-income persons;
(3) despite serving this critical function, the public housing system is plagued by a series of problems, including the concentration of very poor people in very poor neighborhoods and disincentives for economic self-sufficiency;
(4) the Federal method of overseeing every aspect of public housing by detailed and complex statutes and regulations has aggravated the problem and has placed excessive administrative burdens on public housing agencies; and
(5) the interests of low-income persons, and the public interest, will best be served by a reformed public housing program that--
(A) consolidates many public housing programs into programs for the operation and capital needs of public housing;
(B) streamlines program requirements;
(C) vests in public housing agencies that perform well the maximum feasible authority, discretion, and control with appropriate accountability to public housing residents, localities, and the general public; and
(D) rewards employment and economic self-sufficiency of public housing residents.
(b) PURPOSES- The purpose of this title is to promote homes that are affordable to low-income families in safe and healthy environments, and thereby contribute to the supply of affordable housing, by--
(1) deregulating and decontrolling public housing agencies, thereby enabling them to perform as property and asset managers;
(2) providing for more flexible use of Federal assistance to public housing agencies, allowing the authorities to leverage and combine assistance amounts with amounts obtained from other sources;
(3) facilitating mixed income communities and decreasing concentrations of poverty in public housing;
(4) increasing accountability and rewarding effective management of public housing agencies;
(5) creating incentives and economic opportunities for residents of dwelling units assisted by public housing agencies to work, become self-sufficient, and transition out of public housing and federally assisted dwelling units;
(6) consolidating the voucher and certificate programs for rental assistance under section 8 of the United States Housing Act of 1937 into a single market-driven program that will assist in making tenant-based rental assistance under such section more successful at helping low-income families obtain affordable housing and will increase housing choice for low-income families; and
(7) remedying the problems of troubled public housing agencies and replacing or revitalizing severely distressed public housing projects.
SEC. 503. EFFECTIVE DATE AND REGULATIONS.
(a) IN GENERAL- The amendments under this title are made on the date of the enactment of this Act, but this title shall take effect, and the amendments made by this title shall apply beginning upon, October 1, 1999, except--
(1) as otherwise specifically provided in this title; or
(2) as otherwise specifically provided in any amendment made by this title.
The Secretary may, by notice, implement any provision of this title or any amendment made by this title before such date, except to the extent that such provision or amendment specifically provides otherwise.
(b) SAVINGS PROVISION- Notwithstanding any amendment under this title that is made (in accordance with subsection (a)) on the date of the enactment of this Act but applies beginning on October 1, 1999, the provisions of law amended by such amendment, as such provisions were in effect immediately before the making of such amendment, shall continue to apply during the period beginning on the date of the enactment of this Act and ending upon October 1, 1999, unless otherwise specifically provided by this title.
(c) TECHNICAL RECOMMENDATIONS- Not later than 9 months after the date of the enactment of this Act, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking and Financial Services of the House of Representatives, recommended technical and conforming legislative changes necessary to carry out this title and the amendments made by this title.
(d) LIST OF OBSOLETE DOCUMENTS- Not later than October 1, 1999, the Secretary of Housing and Urban Development shall cause to be published in the Federal Register a list of all rules, regulations, and orders (including all handbooks, notices, and related requirements) pertaining to public housing or section 8 tenant-based programs issued or promulgated under the United States Housing Act of 1937 before the date of the enactment of this Act that are or will be obsolete because of the enactment of this Act or are otherwise obsolete.
(e) PROTECTION OF CERTAIN REGULATIONS- No provision of this title may be construed to repeal the regulations of the Secretary regarding tenant participation and tenant opportunities in public housing (24 C.F.R. 964).
(g) EFFECTIVE DATE- This section shall take effect on the date of the enactment of this Act.
Subtitle A--General Provisions
SEC. 505. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.
Section 2 of the United States Housing Act of 1937 (42 U.S.C. 1437) is amended to read as follows:
`SEC. 2. DECLARATION OF POLICY AND PUBLIC HOUSING AGENCY ORGANIZATION.
`(a) DECLARATION OF POLICY- It is the policy of the United States--
`(1) to promote the general welfare of the Nation by employing the funds and credit of the Nation, as provided in this Act--
`(A) to assist States and political subdivisions of States to remedy the unsafe housing conditions and the acute shortage of decent and safe dwellings for low-income families;
`(B) to assist States and political subdivisions of States to address the shortage of housing affordable to low-income families; and
`(C) consistent with the objectives of this title, to vest in public housing agencies that perform well, the maximum amount of responsibility and flexibility in program administration, with appropriate accountability to public housing residents, localities, and the general public;
`(2) that the Federal Government cannot through its direct action alone provide for the housing of every American citizen, or even a majority of its citizens, but it is the responsibility of the Government to promote and protect the independent and collective actions of private citizens to develop housing and strengthen their own neighborhoods;
`(3) that the Federal Government should act where there is a serious need that private citizens or groups cannot or are not addressing responsibly; and
`(4) that our Nation should promote the goal of providing decent and affordable housing for all citizens through the efforts and encouragement of Federal, State, and local governments, and by the independent and collective actions of private citizens, organizations, and the private sector.
`(b) PUBLIC HOUSING AGENCY ORGANIZATION-
`(1) REQUIRED MEMBERSHIP- Except as provided in paragraph (2), the membership of the board of directors or similar governing body of each public housing agency shall contain not less than 1 member--
`(A) who is directly assisted by the public housing agency; and
`(B) who may, if provided for in the public housing agency plan, be elected by the residents directly assisted by the public housing agency.
`(2) EXCEPTION- Paragraph (1) shall not apply to any public housing agency--
`(A) that is located in a State that requires the members of the board of directors or similar governing body of a public housing agency to be salaried and to serve on a full-time basis; or
`(B) with less than 300 public housing units, if--
`(i) the agency has provided reasonable notice to the resident advisory board of the opportunity of not less than 1 resident described in paragraph (1) to serve on the board of directors or similar governing body of the public housing agency pursuant to such paragraph; and
`(ii) within a reasonable time after receipt by the resident advisory board established by the agency pursuant to section 5A(e) of notice under clause (i), the public housing agency has not been notified of the intention of any resident to participate on the board of directors.
`(3) NONDISCRIMINATION- No person shall be prohibited from serving on the board of directors or similar governing body of a public housing agency because of the residence of that person in a public housing project or status as assisted under section 8.'.
SEC. 506. DEFINITIONS.
Section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended as follows:
(1) PUBLIC HOUSING- In paragraph (1), by inserting after the second sentence the following new sentence: `The term `public housing' includes dwelling units in a mixed finance project that are assisted by a public housing agency with capital or operating assistance.'.
(2) SINGLE PERSONS- In paragraph (3)--
(A) in subparagraph (A), by striking the third sentence; and
(B) in subparagraph (B), in the second sentence, by striking `regulations of the Secretary' and inserting `public housing agency plan'.
(3) PERSON WITH DISABILITIES- In paragraph (3)(E), by adding after the period at the end the following new sentences: `Notwithstanding any other provision of law, no individual shall be considered a person with disabilities, for purposes of eligibility for low-income housing under this title, solely on the basis of any drug or alcohol dependence. The Secretary shall consult with other appropriate Federal agencies to implement the preceding sentence.'.
(4) NEW TERMS- Section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by adding at the end the following new paragraphs:
`(9) DRUG-RELATED CRIMINAL ACTIVITY- The term `drug-related criminal activity' means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as such term is defined in section 102 of the Controlled Substances Act).
`(10) MIXED-FINANCE PROJECT- The term `mixed-finance project' means a public housing project that meets the requirements of section 35.
`(11) PUBLIC HOUSING AGENCY PLAN- The term `public housing agency plan' means the plan of a public housing agency prepared in accordance with section 5A.
`(12) CAPITAL FUND- The term `Capital Fund' means the fund established under section 9(d).
`(13) OPERATING FUND- The term `Operating Fund' means the fund established under section 9(e).'.
SEC. 507. MINIMUM RENT.
(a) IN GENERAL- Section 3(a) of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)) is amended by adding at the end the following new paragraph:
`(3) MINIMUM RENTAL AMOUNT-
`(A) REQUIREMENT- Notwithstanding paragraph (1) of this subsection, the method for rent determination elected pursuant to paragraph (2)(A) of this subsection by a family residing in public housing, section 8(o)(2) of this Act, or section 206(d) of the Housing and Urban-Rural Recovery Act of 1983 (including paragraph (5) of such section), the following entities shall require the following families to pay a minimum monthly rental amount (which amount shall include any amount allowed for utilities) of not more than $50 per month, as follows:
`(i) Each public housing agency shall require the payment of such minimum monthly rental amount, which amount shall be determined by the agency, by--
`(I) each family residing in a dwelling unit in public housing by the agency;
`(II) each family who is assisted under the certificate or moderate rehabilitation program under section 8; and
`(III) each family who is assisted under the voucher program under section 8, and the agency shall reduce the monthly assistance payment on behalf of such family as may be necessary to ensure payment of such minimum monthly rental amount.
`(ii) The Secretary shall require each family who is assisted under any other program for rental assistance under section 8 to pay such minimum monthly rental amount, which amount shall be determined by the Secretary.
`(B) EXCEPTION FOR HARDSHIP CIRCUMSTANCES-
`(i) IN GENERAL- Notwithstanding subparagraph (A), a public housing agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)) shall immediately grant an exemption from application of the minimum monthly rental under such subparagraph to any family unable to pay such amount because of financial hardship, which shall include situations in which (I) the family has lost eligibility for or is awaiting an eligibility determination for a Federal, State, or local assistance program, including a family that includes a member who is an alien lawfully admitted for permanent residence under the Immigration and Nationality Act who would be entitled to public benefits but for title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996; (II) the family would be evicted as a result of the imposition of the minimum rent requirement under subparagraph (A); (III) the income of the family has decreased because of changed circumstance, including loss of employment; (IV) a death in the family has occurred; and (V) other situations as may be determined by the agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)).
`(ii) WAITING PERIOD- If a resident requests a hardship exemption under this subparagraph and the public housing agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)) reasonably determines the hardship to be of a temporary nature, an exemption shall not be granted during the 90-day period beginning upon the making of a request for the exemption. A resident may not be evicted during such 90-day period for nonpayment of rent. In such a case, if the resident thereafter demonstrates that the financial hardship is of a long-term basis, the agency (or the Secretary) shall retroactively exempt the resident from the applicability of the minimum rent requirement for such 90-day period.'.
(b) REPEAL OF DUPLICATIVE PROVISIONS- Section 402 of the Balanced Budget Downpayment Act, I (Public Law 104-99; 110 Stat. 40) is amended by striking subsection (a).
(c) CONFORMING AMENDMENT- The third sentence of section 3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(1)) is amended by inserting `and subject to the requirement under paragraph (3)' before the first comma.
(d) EFFECTIVE DATE- The amendments under this section are made on, and shall apply beginning upon, the date of the enactment of this Act.
SEC. 508. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.
(a) ADJUSTED INCOME- Paragraph (5) of section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5) is amended to read as follows:
`(5) ADJUSTED INCOME- The term `adjusted income' means, with respect to a family, the amount (as determined by the public housing agency) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any income exclusions as follows:
`(A) MANDATORY EXCLUSIONS- In determining adjusted income, a public housing agency shall exclude from the annual income of a family the following amounts:
`(i) ELDERLY AND DISABLED FAMILIES- $400 for any elderly or disabled family.
`(ii) MEDICAL EXPENSES- The amount by which 3 percent of the annual family income is exceeded by the sum of--
`(I) unreimbursed medical expenses of any elderly family or disabled family;
`(II) unreimbursed medical expenses of any family that is not covered under subclause (I), except that this subclause shall apply only to the extent approved in appropriation Acts; and
`(III) unreimbursed reasonable attendant care and auxiliary apparatus expenses for each handicapped member of the family, to the extent necessary to enable any member of such family (including such handicapped member) to be employed.
`(iii) CHILD CARE EXPENSES- Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education.
`(iv) MINORS, STUDENTS, AND PERSONS WITH DISABILITIES- $480 for each member of the family residing in the household (other than the head of the household or his or her spouse) who is less than 18 years of age or is attending school or vocational training on a full-time basis, or who is 18 years of age or older and is a person with disabilities.
`(v) CHILD SUPPORT PAYMENTS- Any payment made by a member of the family for the support and maintenance of any child who does not reside in the household, except that the amount excluded under this clause may not exceed $480 for each child for whom such payment is made; except that this clause shall apply only to the extent approved in appropriations Acts.
`(vi) SPOUSAL SUPPORT EXPENSES- Any payment made by a member of the family for the support and maintenance of any spouse or former spouse who does not reside in the household, except that the amount excluded under this clause shall not exceed the lesser of (I) the amount that such family member has a legal obligation to pay, or (II) $550 for each individual for whom such payment is made; except that this clause shall apply only to the extent approved in appropriations Acts.
`(vii) EARNED INCOME OF MINORS- The amount of any earned income of a member of the family who is not--
`(I) 18 years of age or older; and
`(II) the head of the household (or the spouse of the head of the household).
`(B) PERMISSIVE EXCLUSIONS FOR PUBLIC HOUSING- In determining adjusted income, a public housing agency may, in the discretion of the agency, establish exclusions from the annual income of a family residing in a public housing dwelling unit. Such exclusions may include the following amounts:
`(i) EXCESSIVE TRAVEL EXPENSES- Excessive travel expenses in an amount not to exceed $25 per family per week, for employment- or education-related travel.
`(ii) EARNED INCOME- An amount of any earned income of the family, established at the discretion of the public housing agency, which may be based on--
`(I) all earned income of the family,
`(II) the amount earned by particular members of the family;
`(III) the amount earned by families having certain characteristics; or
`(IV) the amount earned by families or members during certain periods or from certain sources.
`(iii) OTHERS- Such other amounts for other purposes, as the public housing agency may establish.'.
(b) DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING RENT DETERMINATIONS-
(1) IN GENERAL- Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is amended--
(A) by striking the undesignated paragraph that follows subsection (c)(3) (as added by section 515(b) of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625; 104 Stat. 4199)); and
(B) by adding at the end the following new subsections:
`(d) DISALLOWANCE OF EARNED INCOME FROM RENT DETERMINATIONS-
`(1) IN GENERAL- Notwithstanding any other provision of law, the rent payable under subsection (a) by a family described in paragraph (3) of this subsection may not be increased as a result of the increased income due to such employment during the 12-month period beginning on the date on which the employment is commenced.
`(2) PHASE-IN OF RENT INCREASES- Upon the expiration of the 12-month period referred to in paragraph (1), the rent payable by a family described in paragraph (3) may be increased due to the continued employment of the family member described in paragraph (3)(B), except that during the 12-month period beginning upon such expiration the amount of the increase may not be greater than 50 percent of the amount of the total rent increase that would be applicable but for this paragraph.
`(3) ELIGIBLE FAMILIES- A family described in this paragraph is a family--
`(A) that--
`(i) occupies a dwelling unit in a public housing project; or
`(ii) receives assistance under section 8; and
`(B)(i) whose income increases as a result of employment of a member of the family who was previously unemployed for 1 or more years;
`(ii) whose earned income increases during the participation of a family member in any family self-sufficiency or other job training program; or
`(iii) who is or was, within 6 months, assisted under any State program for temporary assistance for needy families funded under part A of title IV of the Social Security Act and whose earned income increases.
`(4) APPLICABILITY- This subsection and subsection (e) shall apply beginning upon October 1, 1999, except that this subsection and subsection (e) shall apply with respect to any family described in paragraph 3(A)(ii) only to the extent provided in advance in appropriations Acts.
`(e) INDIVIDUAL SAVINGS ACCOUNTS-
`(1) IN GENERAL- In lieu of a disallowance of earned income under subsection (d), upon the request of a family that qualifies under subsection (d), a public housing agency may establish an individual savings account in accordance with this subsection for that family.
`(2) DEPOSITS TO ACCOUNT- The public housing agency shall deposit in any savings account established under this subsection an amount equal to the total amount that otherwise would be applied to the family's rent payment under subsection (a) as a result of employment.
`(3) WITHDRAWAL FROM ACCOUNT- Amounts deposited in a savings account established under this subsection may only be withdrawn by the family for the purpose of--
`(A) purchasing a home;
`(B) paying education costs of family members;
`(C) moving out of public or assisted housing; or
`(D) paying any other expense authorized by the public housing agency for the purpose of promoting the economic self-sufficiency of residents of public and assisted housing.'.
(2) SAVINGS PROVISION- Notwithstanding the amendment made by paragraph (1), the provisions of the undesignated paragraph at the end of section 3(c)(3) of the United States Housing Act of 1937, as such section was in effect immediately before the enactment of this Act, shall continue to apply until the effective date under section 503 of this Act. Notwithstanding the amendment made by subsection (a) of this section, nor the applicability under section 402(f) of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) of the amendments made by such section 402, nor any repeal of such section 402(f), the provisions of section 3(b)(5)(G) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such section was in effect immediately before the date of the enactment of this Act, shall continue to apply until the effective date under section 503 of this Act.
(c) MEDIAN INCOME-
(1) IN GENERAL- Section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
(A) in the 4th sentence--
(i) by striking `County' and inserting `and Rockland Counties'; and
(ii) by inserting `each' before `such county';
(B) in the last sentence--
(i) by striking `County' the 1st place it appears and inserting `or Rockland Counties'; and
(ii) by striking `County' the 2d place it appears and inserting `and Rockland Counties'; and
(C) by adding at the end the following new sentences: `In determining areas that are designated as difficult development areas for purposes of the low-income housing tax credit, the Secretary shall include Westchester and Rockland Counties, New York, in the New York City metropolitan area.'.
(2) APPLICABILITY- The amendments made by this paragraph are made on, and shall apply beginning upon, the date of the enactment of this Act.
(d) AVAILABILITY OF INCOME MATCHING INFORMATION-
(1) AVAILABILITY- Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:
`(f) AVAILABILITY OF INCOME MATCHING INFORMATION-
`(1) DISCLOSURE TO PHA- A public housing agency shall require any family described in paragraph (2) who receives information regarding income, earnings, wages, or unemployment compensation from the Department of Housing and Urban Development pursuant to income verification procedures of the Department to disclose such information, upon receipt of the information, to the public housing agency that owns or operates the public housing dwelling unit in which such family resides or that provides the housing assistance under this Act on behalf of such family, as applicable.
`(2) FAMILIES COVERED- A family described in this paragraph is a family that resides in a dwelling unit--
`(A) that is a public housing dwelling unit; or
`(B) for which tenant-based assistance is provided under section 8.'.
(2) PROTECTION OF APPLICANTS AND PARTICIPANTS- Section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544) is amended--
(A) in subsection (b)--
(i) in paragraph (2), by striking `and' at the end;
(iii) in paragraph (3), by striking the period at the end and inserting `; and'; and
(ii) by adding at the end the following new paragraph:
`(4) only in the case of an applicant or participant that is a member of a family described in section 3(f)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(f)(2)), sign an agreement under which the applicant or participant agrees to provide to the appropriate public housing agency the information required under section 3(f)(1) of such Act for the sole purpose of the public housing agency verifying income information pertinent to the applicant's or participant's eligibility or level of benefits, and comply with such agreement.'; and
(B) in subsection (c)--
(i) in paragraph (2)(A), in the matter preceding clause (i)--
(I) by inserting before `or' the first place it appears the following: `, pursuant to section 3(d)(1) of the United States Housing Act of 1937 from the applicant or participant,'; and
(II) by inserting `or 3(d)(1)' after `such section 303(i)'; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by inserting `, section 3(d)(1) of the United States Housing Act of 1937,' after `Social Security Act';
(II) in subparagraph (A), by inserting `or agreement, as applicable,' after `consent';
(III) in subparagraph (B), by inserting `section 3(d)(1) of the United States Housing Act of 1937,' after `Social Security Act,'; and
(IV) in subparagraph (B), by inserting ` such section 3(d)(1),' after `such section 303(i),' each place it appears.
SEC. 509. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) IN GENERAL- Section 23 of the United States Housing Act of 1937 (42 U.S.C. 1437u(b)) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking `and' at the end;
(ii) in subparagraph (B), by striking the period at the end and inserting `, subject to the limitations in paragraph (4); and'; and
(iii) by adding at the end the following new subparagraph:
`(C) effective on the date of the enactment of the Quality Housing and Work Responsibility Act of 1998, to the extent an agency is not required to carry out a program pursuant to subparagraph (B) of this paragraph and paragraph (4), may carry out a local Family Self-Sufficiency program under this section.';
(B) in paragraph (3), by striking `Each' and inserting `Subject to paragraph (4), each';
(C) by redesignating paragraph (4) as paragraph (5); and
(D) by inserting after paragraph (3) the following new paragraph:
`(4) TERMINATION OF REQUIREMENT TO EXPAND PROGRAM-
`(A) IN GENERAL- Notwithstanding any other provision of law, a public housing agency that receives incremental assistance under subsection (b) or (o) of section 8 or that makes available new public housing dwelling units shall not be required, after the enactment of the Quality Housing and Work Responsibility Act of 1998, to provide assistance under a local Family Self-Sufficiency program under this section to any families not required to be assisted under subparagraph (B) of this paragraph.
`(B) CONTINUATION OF EXISTING OBLIGATIONS-
`(i) IN GENERAL- Each public housing agency that, before the enactment of the Quality Housing and Work Responsibility Act of 1998, was required under this section to carry out a local Family Self-Sufficiency program shall continue to operate such local program for the number of families determined under paragraph (3), subject only to the availability under appropriations Acts of sufficient amounts for housing assistance.
`(ii) REDUCTION- The number of families for which an agency is required under clause (i) to operate such local program shall be decreased by one for each family that, after enactment of the Quality Housing and Work Responsibility Act of 1998, fulfills its obligations under the contract of participation.';
(2) in subsection (d), by striking the second paragraph that is designated as paragraph (3) (relating to use of escrow savings accounts for section 8 homeownership; as added by section 185(b) of the Housing and Community Development Act of 1992 (Public Law 102-550; 106 Stat. 3747)); and
(3) in subsection (f)(1), by inserting `carrying out a local program under this section' after `Each public housing agency'.
(b) APPLICABILITY- The amendments made by this subsection are made on, and shall apply beginning upon, the date of the enactment of this Act.
SEC. 510. PROHIBITION ON USE OF FUNDS.
Section 5 of the United States Housing Act of 1937 (42 U.S.C. 1437c)) is amended by adding at the end the following new subsection:
`(l) PROHIBITION ON USE OF FUNDS- None of the funds made available to the Department of Housing and Urban Development to carry out this Act, which are obligated to State or local governments, public housing agencies, housing finance agencies, or other public or quasi-public housing agencies, shall be used to indemnify contractors or subcontractors of the government or agency against costs associated with judgments of infringement of intellectual property rights.'.
SEC. 511. PUBLIC HOUSING AGENCY PLAN.
(a) IN GENERAL- Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by inserting after section 5 the following new section:
`SEC. 5A. PUBLIC HOUSING AGENCY PLANS.
`(a) 5-YEAR PLAN-
`(1) IN GENERAL- Subject to paragraph (2), not less than once every 5 fiscal years, each public housing agency shall submit to the Secretary a plan that includes, with respect to the 5 fiscal years immediately following the date on which the plan is submitted--
`(A) a statement of the mission of the public housing agency for serving the needs of low-income and very low-income families in the jurisdiction of the public housing agency during such fiscal years; and
`(B) a statement of the goals and objectives of the public housing agency that will enable the public housing agency to serve the needs identified pursuant to subparagraph (A) during those fiscal years.
`(2) INITIAL PLAN- The initial 5-year plan submitted by a public housing agency under this subsection shall be submitted for the 5-year period beginning on October 1, 1999, or the first fiscal year thereafter for which the public housing agency initially receives assistance under this Act.
`(b) ANNUAL PLAN-
`(1) IN GENERAL- Effective beginning upon October 1, 1999, each public housing agency shall submit to the Secretary an annual public housing agency plan under this subsection for each fiscal year for which the public housing agency receives assistance under section 8(o) or 9.
`(2) UPDATES- For each fiscal year after the initial submission of an annual plan under this subsection by a public housing agency, the public housing agency may comply with requirements for submission of a plan under this subsection by submitting an update of the plan for the fiscal year.
`(c) PROCEDURES-
`(1) IN GENERAL- The Secretary shall establish requirements and procedures for submission and review of plans, including requirements for timing and form of submission, and for the contents of such plans.
`(2) CONTENTS- The procedures established under paragraph (1) shall provide that a public housing agency shall--
`(A) in developing the plan consult with the resident advisory board established under subsection (e); and
`(B) ensure that the plan under this section is consistent with the applicable comprehensive housing affordability strategy (or any consolidated plan incorporating such strategy) for the jurisdiction in which the public housing agency is located, in accordance with title I of the Cranston-Gonzalez National Affordable Housing Act, and contains a certification by the appropriate State or local official that the plan meets the requirements of this paragraph and a description of the manner in which the applicable contents of the public housing agency plan are consistent with the comprehensive housing affordability strategy.
`(d) CONTENTS- An annual public housing agency plan under subsection (b) for a public housing agency shall contain the following information relating to the upcoming fiscal year for which the assistance under this Act is to be made available:
`(1) NEEDS- A statement of the housing needs of low-income and very low-income families residing in the jurisdiction served by the public housing agency, and of other low-income and very low-income families on the waiting list of the agency (including housing needs of elderly families and disabled families), and the means by which the public housing agency intends, to the maximum extent practicable, to address those needs.
`(2) FINANCIAL RESOURCES- A statement of financial resources available to the agency and the planned uses of those resources.
`(3) ELIGIBILITY, SELECTION, AND ADMISSIONS POLICIES- A statement of the policies governing eligibility, selection, admissions (including any preferences), assignment, and occupancy of families with respect to public housing dwelling units and housing assistance under section 8(o), including--
`(A) the procedures for maintaining waiting lists for admissions to public housing projects of the agency, which may include a system of site-based waiting lists under section 6(r); and
`(B) the admissions policy under section 16(a)(3)(B) for deconcentration of lower-income families.
`(4) RENT DETERMINATION- A statement of the policies of the public housing agency governing rents charged for public housing dwelling units and rental contributions of families assisted under section 8(o).
`(5) OPERATION AND MANAGEMENT- A statement of the rules, standards, and policies of the public housing agency governing maintenance and management of housing owned, assisted, or operated by the public housing agency (which shall include measures necessary for the prevention or eradication of pest infestation, including by cockroaches), and management of the public housing agency and programs of the public housing agency.
`(6) GRIEVANCE PROCEDURE- A statement of the grievance procedures of the public housing agency.
`(7) CAPITAL IMPROVEMENTS- With respect to public housing projects owned, assisted, or operated by the public housing agency, a plan describing the capital improvements necessary to ensure long-term physical and social viability of the projects.
`(8) DEMOLITION AND DISPOSITION- With respect to public housing projects owned by the public housing agency--
`(A) a description of any housing for which the PHA will apply for demolition or disposition under section 18; and
`(B) a timetable for the demolition or disposition.
`(9) DESIGNATION OF HOUSING FOR ELDERLY AND DISABLED FAMILIES- With respect to public housing projects owned, assisted, or operated by the public housing agency, a description of any projects (or portions thereof) that the public housing agency has designated or will apply for designation for occupancy by elderly and disabled families in accordance with section 7.
`(10) CONVERSION OF PUBLIC HOUSING- With respect to public housing owned by a public housing agency--
`(A) a description of any building or buildings that the public housing agency is required to convert to tenant-based assistance under section 33 or that the public housing agency plans to voluntarily convert under section 22;
`(B) an analysis of the projects or buildings required to be converted under section 33; and
`(C) a statement of the amount of assistance received under this Act to be used for rental assistance or other housing assistance in connection with such conversion.
`(11) HOMEOWNERSHIP- A description of any homeownership programs of the agency under section 8(y) or for which the public housing agency has applied or will apply for approval under section 32.
`(12) COMMUNITY SERVICE AND SELF-SUFFICIENCY- A description of--
`(A) any programs relating to services and amenities provided or offered to assisted families;
`(B) any policies or programs of the public housing agency for the enhancement of the economic and social self-sufficiency of assisted families;
`(C) how the public housing agency will comply with the requirements of subsections (c) and (d) of section 12 (relating to community service and treatment of income changes resulting from welfare program requirements).
`(13) SAFETY AND CRIME PREVENTION- A plan established by the public housing agency, which shall be subject to the following requirements:
`(A) SAFETY MEASURES- The plan shall provide, on a project-by-project or jurisdiction-wide basis, for measures to ensure the safety of public housing residents.
`(B) ESTABLISHMENT- The plan shall be established in consultation with the police officer or officers in command for the appropriate precinct or police department.
`(C) CONTENT- The plan shall describe the need for measures to ensure the safety of public housing residents and for crime prevention measures, describe any such activities conducted or to be conducted by the agency, and provide for coordination between the agency and the appropriate police precincts for carrying out such measures and activities.
`(D) SECRETARIAL ACTION- If the Secretary determines, at any time, that the security needs of a project are not being adequately addressed by the plan, or that the local police precinct is not complying with the plan, the Secretary may mediate between the public housing agency and the local precinct to resolve any issues of conflict.
`(14) PETS- The requirements of the agency, pursuant to section 31, relating to pet ownership in public housing.
`(15) CIVIL RIGHTS CERTIFICATION- A certification by the public housing agency that the public housing agency will carry out the public housing agency plan in conformity with title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities Act of 1990, and will affirmatively further fair housing.
`(16) ANNUAL AUDIT- The results of the most recent fiscal year audit of the public housing agency under section 5(h)(2).
`(17) ASSET MANAGEMENT- A statement of how the agency will carry out its asset management functions with respect to the public housing inventory of the agency, including how the agency will plan for the long-term operating, capital investment, rehabilitation, modernization, disposition, and other needs for such inventory.
`(18) OTHER- Any other information required by law to be included in a public housing agency plan.
`(e) RESIDENT ADVISORY BOARD-
`(1) IN GENERAL- Except as provided in paragraph (3), each public housing agency shall establish 1 or more resident advisory boards in accordance with this subsection, the membership of which shall adequately reflect and represent the residents assisted by the public housing agency.
`(2) FUNCTIONS- Each resident advisory board established under this subsection by a public housing agency shall assist and make recommendations regarding the development of the public housing agency plan for the agency. The agency shall consider the recommendations of the resident advisory boards in preparing the final public housing agency plan, and shall include, in the public housing agency plan submitted to the Secretary under this section, a copy of the recommendations and a description of the manner in which the recommendations were addressed.
`(3) WAIVER- The Secretary may waive the requirements of this subsection with respect to the establishment of resident advisory boards for a public housing agency if the agency demonstrates to the satisfaction of the Secretary that there exist resident councils or other resident organizations of the public housing agency that--
`(A) adequately represent the interests of the residents of the public housing agency; and
`(B) have the ability to perform the functions described in paragraph (2).
`(1) IN GENERAL- In developing a public housing agency plan under this section, the board of directors or similar governing body of a public housing agency shall conduct a public hearing to discuss the public housing agency plan and to invite public comment regarding that plan. The hearing shall be conducted at a location that is convenient to residents.
`(2) AVAILABILITY OF INFORMATION AND NOTICE- Not later than 45 days before the date of a hearing conducted under paragraph (1), the public housing agency shall--
`(A) make the proposed public housing agency plan and all information relevant to the hearing and proposed plan available for inspection by the public at the principal office of the public housing agency during normal business hours; and
`(B) publish a notice informing the public that--
`(i) that the information is available as required under subparagraph (A); and
`(ii) that a public hearing under paragraph (1) will be conducted.
`(3) ADOPTION OF PLAN- A public housing agency may adopt a public housing agency plan and submit the plan to the Secretary in accordance with this section only after--
`(A) conducting a public hearing under paragraph (1);
`(B) considering all public comments received; and
`(C) making any appropriate changes in the public housing agency plan, in consultation with the resident advisory board.
`(4) ADVISORY BOARD CONSULTATION ENFORCEMENT- Pursuant to a written request made by the resident advisory board for a public housing agency that documents a failure on the part of the agency to provide adequate notice and opportunity for comment under this subsection and a finding by the Secretary of good cause within the time period provided for in subsection (i)(4), the Secretary may require the public housing agency to adequately remedy such failure before final approval of the public housing agency plan under this section.
`(g) AMENDMENTS AND MODIFICATIONS TO PLANS-
`(1) IN GENERAL- Except as provided in paragraph (2), nothing in this section shall preclude a public housing agency, after submitting a plan to the Secretary in accordance with this section, from amending or modifying any policy, rule, regulation, or plan of the public housing agency, except that a significant amendment or modification may not--
`(A) be adopted, other than at a duly called meeting of board of directors (or similar governing body) of the public housing agency that is open to the public; and
`(B) be implemented, until notification of the amendment or modification is provided to the Secretary and approved in accordance with subsection (i).
`(2) CONSISTENCY AND NOTICE- Each significant amendment or modification to a public housing agency plan submitted to the Secretary under this section shall--
`(A) meet the requirements under subsection (c)(2) (relating to consultation with resident advisory board and consistency with comprehensive housing affordability strategies); and
`(B) be subject to the notice and public hearing requirements of subsection (f).
`(h) SUBMISSION OF PLANS-
`(1) INITIAL SUBMISSION- Each public housing agency shall submit the initial plan required by this section, and any amendment or modification to the initial plan, to the Secretary at such time and in such form as the Secretary shall require.
`(2) ANNUAL SUBMISSION- Not later than 75 days before the start of the fiscal year of the public housing agency, after submission of the initial plan required by this section in accordance with subparagraph (A), each public housing agency shall annually submit to the Secretary a plan update, including any amendments or modifications to the public housing agency plan.
`(i) REVIEW AND DETERMINATION OF COMPLIANCE-
`(1) REVIEW- Subject to paragraph (2), after submission of the public housing agency plan or any amendment or modification to the plan to the Secretary, to the extent that the Secretary considers such action to be necessary to make determinations under this paragraph, the Secretary shall review the public housing agency plan (including any amendments or modifications thereto) and determine whether the contents of the plan--
`(A) set forth the information required by this section and this Act to be contained in a public housing agency plan;
`(B) are consistent with information and data available to the Secretary, including the approved comprehensive housing affordability strategy under title I of the Cranston-Gonzalez National Affordable Housing Act for the jurisdiction in which the public housing agency is located; and
`(C) are not prohibited by or inconsistent with any provision of this title or other applicable law.
`(2) ELEMENTS EXEMPTED FROM REVIEW- The Secretary may, by regulation, provide that one or more elements of a public housing agency plan shall be reviewed only if the element is challenged, except that the Secretary shall review the information submitted in each plan pursuant to paragraphs (3)(B), (8), and (15) of subsection (d).
`(3) DISAPPROVAL- The Secretary may disapprove a public housing agency plan (or any amendment or modification thereto) only if Secretary determines that the contents of the plan (or amendment or modification) do not comply with the requirements under subparagraph (A) through (C) of paragraph (1).
`(4) DETERMINATION OF COMPLIANCE-
`(A) IN GENERAL- Except as provided in subsection (j)(2), not later than 75 days after the date on which a public housing agency plan is submitted in accordance with this section, the Secretary shall make the determination under paragraph (1) and provide written notice to the public housing agency if the plan has been disapproved. If the Secretary disapproves the plan, the notice shall state with specificity the reasons for the disapproval.
`(B) FAILURE TO PROVIDE NOTICE OF DISAPPROVAL- In the case of a plan disapproved, if the Secretary does not provide notice of disapproval under subparagraph (A) before the expiration of the period described in subparagraph (A), the Secretary shall be considered, for purposes of this Act, to have made a determination that the plan complies with the requirements under this section and the agency shall be considered to have been notified of compliance upon the expiration of such period. The preceding sentence shall not preclude judicial review regarding such compliance pursuant to chapter 7 of title 5, United States Code, or an action regarding such compliance under section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983).
`(5) PUBLIC AVAILABILITY- A public housing agency shall make the approved plan of the agency available to the general public.
`(j) TROUBLED AND AT-RISK PHAS-
`(1) IN GENERAL- The Secretary may require, for each public housing agency that is at risk of being designated as troubled under section 6(j)(2) or is designated as troubled under section 6(j)(2), that the public housing agency plan for such agency include such additional information as the Secretary determines to be appropriate, in accordance with such standards as the Secretary may establish or in accordance with such determinations as the Secretary may make on an agency-by-agency basis.
`(2) TROUBLED AGENCIES- The Secretary shall provide explicit written approval or disapproval, in a timely manner, for a public housing agency plan submitted by any public housing agency designated by the Secretary as a troubled public housing agency under section 6(j)(2).
`(k) STREAMLINED PLAN- In carrying out this section, the Secretary may establish a streamlined public housing agency plan for--
`(A) public housing agencies that are determined by the Secretary to be high performing public housing agencies;
`(B) public housing agencies with less than 250 public housing units that have not been designated as troubled under section 6(j)(2); and
`(C) public housing agencies that only administer tenant-based assistance and that do not own or operate public housing.
`(l) COMPLIANCE WITH PLAN-
`(1) IN GENERAL- In providing assistance under this title, a public housing agency shall comply with the rules, standards, and policies established in the public housing agency plan of the public housing agency approved under this section.
`(2) INVESTIGATION AND ENFORCEMENT- In carrying out this title, the Secretary shall--
`(A) provide an appropriate response to any complaint concerning noncompliance by a public housing agency with the applicable public housing agency plan; and
`(B) if the Secretary determines, based on a finding of the Secretary or other information available to the Secretary, that a public housing agency is not complying with the applicable public housing agency plan, take such actions as the Secretary determines to be appropriate to ensure such compliance.'.
(b) IMPLEMENTATION-
(1) INTERIM RULE- Not later than 120 days after the date of the enactment of this Act, the Secretary shall issue an interim rule to require the submission of an interim public housing agency plan by each public housing agency, as required by section 5A of the United States Housing Act of 1937 (as added by subsection (a) of this section). The interim rule shall provide for a public comment period of not less than 60 days.
(2) FINAL REGULATIONS- Not later than 1 year after the date of the enactment of this Act, the Secretary shall issue final regulations implementing section 5A of the United States Housing Act of 1937 (as added by subsection (a) of this section).
(3) FACTORS FOR CONSIDERATION- Before the publication of the final regulations under paragraph (2), in addition to public comments invited in connection with the publication of the interim rule, the Secretary shall--
(A) seek recommendations on the implementation of section 5A of the United States Housing Act of 1937 (as added by this subsection (a) of this section) from organizations representing--
(i) State or local public housing agencies;
(ii) residents, including resident management corporations; and
(iii) other appropriate parties; and
(B) convene not less than 2 public forums at which the persons or organizations making recommendations under subparagraph (A) may express views concerning the proposed disposition of the recommendations.
The Secretary shall publish in the final rule a summary of the recommendations made and public comments received and the Department of Housing and Urban Development's response to such recommendations and comments.
(c) AUDIT AND REVIEW; REPORT-
(1) AUDIT AND REVIEW- Not later than 1 year after the effective date of final regulations issued under subsection (b)(2), in order to determine the degree of compliance, by public housing agencies, with public housing agency plans approved under section 5A of the United States Housing Act of 1937 (as added by subsection (a) of this section), the Comptroller General of the United States shall conduct--
(A) a review of a representative sample of the public housing agency plans approved under such section 5A before such date; and
(B) an audit and review of the public housing agencies submitting such plans.
(2) REPORT- Not later than 2 years after the date on which public housing agency plans are initially required to be submitted under section 5A of the United States Housing Act of 1937 (as added by subsection (a) of this section) the Comptroller General of the United States shall submit to the Congress a report, which shall include--
(A) a description of the results of each audit and review under paragraph (1); and
(B) any recommendations for increasing compliance by public housing agencies with their public housing agency plans approved under section 5A of the United States Housing Act of 1937 (as added by subsection (a) of this section).
(d) CONTRACT PROVISIONS- Section 6(a) of the United States Housing Act of 1937 (42 U.S.C. 1437d(a)) is amended--
(1) in the first sentence, by inserting `, in a manner consistent with the public housing agency plan' before the period; and
(2) by striking the second sentence.
(e) APPLICABILITY- This section shall take effect, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act.
SEC. 512. COMMUNITY SERVICE AND FAMILY SELF-SUFFICIENCY REQUIREMENTS.
(a) IN GENERAL- Section 12 of the United States Housing Act of 1937 (42 U.S.C. 1437j) is amended--
(1) in the section heading, by inserting `AND COMMUNITY SERVICE REQUIREMENT' after `LABOR STANDARDS'; and
(2) by adding at the end the following new subsections:
`(c) COMMUNITY SERVICE REQUIREMENT-
`(1) IN GENERAL- Except as provided in paragraph (2) and notwithstanding any other provision of law, each adult resident of a public housing project shall--
`(A) contribute 8 hours per month of community service (not including political activities) within the community in which that adult resides; or
`(B) participate in an economic self-sufficiency program (as that term is defined in subsection (g)) for 8 hours per month.
`(2) EXEMPTIONS- The Secretary shall provide an exemption from the applicability of paragraph (1) for any individual who--
`(A) is 62 years of age or older;
`(B) is a blind or disabled individual, as defined under section 216(i)(1) or 1614 of the Social Security Act (42 U.S.C. 416(i)(1); 1382c), and who is unable to comply with this section, or is a primary caretaker of such individual;
`(C) is engaged in a work activity (as such term is defined in section 407(d) of the Social Security Act (42 U.S.C. 607(d)), as in effect on and after July 1, 1997));
`(D) meets the requirements for being exempted from having to engage in a work activity under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or under any other welfare program of the State in which the public housing agency is located, including a State-administered welfare-to-work program; or
`(E) is in a family receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or under any other welfare program of the State in which the public housing agency is located, including a State-administered welfare-to-work program, and has not been found by the State or other administering entity to be in noncompliance with such program.
`(3) ANNUAL DETERMINATIONS-
`(A) REQUIREMENT- For each public housing resident subject to the requirement under paragraph (1), the public housing agency shall, 30 days before the expiration of each lease term of the resident under section 6(l)(1), review and determine the compliance of the resident with the requirement under paragraph (1) of this subsection.
`(B) DUE PROCESS- Such determinations shall be made in accordance with the principles of due process and on a nondiscriminatory basis.
`(C) NONCOMPLIANCE- If an agency determines that a resident subject to the requirement under paragraph (1) has not complied with the requirement, the agency--
`(i) shall notify the resident--
`(I) of such noncompliance;
`(II) that the determination of noncompliance is subject to the administrative grievance procedure under subsection (k); and
`(III) that, unless the resident enters into an agreement under clause (ii) of this subparagraph, the resident's lease will not be renewed; and
`(ii) may not renew or extend the resident's lease upon expiration of the lease term and shall take such action as is necessary to terminate the tenancy of the household, unless the agency enters into an agreement, before the expiration of the lease term, with the resident providing for the resident to cure any noncompliance with the requirement under paragraph (1), by participating in an economic self-sufficiency program for or contributing to community service as many additional hours as the resident needs to comply in the aggregate with such requirement over the 12-month term of the lease.
`(4) INELIGIBILITY FOR OCCUPANCY FOR NONCOMPLIANCE- A public housing agency may not renew or extend any lease, or provide any new lease, for a dwelling unit in public housing for any household that includes an adult member who was subject to the requirement under paragraph (1) and failed to comply with the requirement.
`(5) INCLUSION IN PLAN- Each public housing agency shall include in its public housing agency plan a detailed description of the manner in which the agency intends to implement and administer this subsection.
`(6) GEOGRAPHIC LOCATION- The requirement under paragraph (1) may include community service or participation in an economic self-sufficiency program performed at a location not owned by the public housing agency.
`(7) PROHIBITION AGAINST REPLACEMENT OF EMPLOYEES- In carrying out this subsection, a public housing agency may not--
`(A) substitute community service or participation in an economic self-sufficiency program, as described in paragraph (1), for work performed by a public housing employee; or
`(B) supplant a job at any location at which community work requirements are fulfilled.
`(8) THIRD-PARTY COORDINATING- A public housing agency may administer the community service requirement under this subsection directly, through a resident organization, or through a contractor having experience in administering volunteer-based community service programs within the service area of the public housing agency. The Secretary may establish qualifications for such organizations and contractors.
`(d) TREATMENT OF INCOME CHANGES RESULTING FROM WELFARE PROGRAM REQUIREMENTS-
`(1) COVERED FAMILY- For purposes of this subsection, the term `covered family' means a family that (A) receives benefits for welfare or public assistance from a State or other public agency under a program for which the Federal, State, or local law relating to the program requires, as a condition of eligibility for assistance under the program, participation of a member of the family in an economic self-sufficiency program, and (B) resides in a public housing dwelling unit or is provided tenant-based assistance under section 8.
`(2) DECREASES IN INCOME FOR FAILURE TO COMPLY-
`(A) IN GENERAL- Notwithstanding the provisions of section 3(a) (relating to family rental contributions) or paragraph (4) or (5) of section 3(b) (relating to definition of income and adjusted income), if the welfare or public assistance benefits of a covered family are reduced under a Federal, State, or local law regarding such an assistance program because of any failure of any member of the family to comply with the conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement, the amount required to be paid by the family as a monthly contribution toward rent may not be decreased, during the period of the reduction, as a result of any decrease in the income of the family (to the extent that the decrease in income is a result of the benefits reduction).
`(B) NO REDUCTION BASED ON TIME LIMIT FOR ASSISTANCE- For purposes of this paragraph, a reduction in benefits as a result of the expiration of a lifetime time limit for a family receiving welfare or public assistance benefits shall not be considered to be a failure to comply with the conditions under the assistance program requiring participation in an economic self-sufficiency program or imposing a work activities requirement. This paragraph shall apply beginning upon the date of the enactment of the Quality Housing and Work Responsibility Act of 1998.
`(3) EFFECT OF FRAUD- Notwithstanding the provisions of section 3(a) (relating to family rental contributions) or paragraph (4) or (5) of section 3(b) (relating to definition of income and adjusted income), if the welfare or public assistance benefits of a covered family are reduced because of an act of fraud by a member of the family under the law or program, the amount required to be paid by the covered family as a monthly contribution toward rent may not be decreased, during the period of the reduction, as a result of any decrease in the income of the family (to the extent that the decrease in income is a result of the benefits reduction). This paragraph shall apply beginning upon the date of the enactment of the Quality Housing and Work Responsibility Act of 1998.
`(4) NOTICE- Paragraphs (2) and (3) shall not apply to any covered family before the public housing agency providing assistance under this Act on behalf of the family obtains written notification from the relevant welfare or public assistance agency specifying that the family's benefits have been reduced because of noncompliance with economic self-sufficiency program or work activities requirements or fraud, and the level of such reduction.
`(5) OCCUPANCY RIGHTS- This subsection may not be construed to authorize any public housing agency to establish any time limit on tenancy in a public housing dwelling unit or on receipt of tenant-based assistance under section 8.
`(6) REVIEW- Any covered family residing in public housing that is affected by the operation of this subsection shall have the right to review the determination under this subsection through the administrative grievance procedure established pursuant to section 6(k) for the public housing agency.
`(7) COOPERATION AGREEMENTS FOR ECONOMIC SELF-SUFFICIENCY ACTIVITIES-
`(A) REQUIREMENT- A public housing agency providing public housing dwelling units or tenant-based assistance under section 8 for covered families shall make its best efforts to enter into such cooperation agreements, with State, local, and other agencies providing assistance to covered families under welfare or public assistance programs, as may be necessary, to provide for such agencies to transfer information to facilitate administration of subsection (c) and paragraphs (2), (3), and (4) of this subsection and other information regarding rents, income, and assistance that may assist a public housing agency or welfare or public assistance agency in carrying out its functions.
`(B) CONTENTS- A public housing agency shall seek to include in a cooperation agreement under this paragraph requirements and provisions designed to target assistance under welfare and public assistance programs to families residing in public housing projects and families receiving tenant-based assistance under section 8, which may include providing for economic self-sufficiency services within such housing, providing for services designed to meet the unique employment-related needs of residents of such housing and recipients of such assistance, providing for placement of workfare positions on-site in such housing, and such other elements as may be appropriate.
`(C) CONFIDENTIALITY- This paragraph may not be construed to authorize any release of information prohibited by, or in contravention of, any other provision of Federal, State, or local law.
`(e) LEASE PROVISIONS- A public housing agency shall incorporate into leases under section 6(l) and into agreements for the provision of tenant-based assistance under section 8, provisions incorporating the conditions under subsection (d).
`(f) TREATMENT OF INCOME- Notwithstanding any other provision of this section, in determining the income of a family who resides in public housing or receives tenant-based assistance under section 8, a public housing agency shall consider any decrease in the income of a family that results from the reduction of any welfare or public assistance benefits received by the family under any Federal, State, or local law regarding a program for such assistance if the family (or a member thereof, as applicable) has complied with the conditions for receiving such assistance and is unable to obtain employment notwithstanding such compliance.
`(g) DEFINITION- For purposes of this section, the term `economic self-sufficiency program' means any program designed to encourage, assist, train, or facilitate the economic independence of participants and their families or to provide work for participants, including programs for job training, employment counseling, work placement, basic skills training, education, workfare, financial or household management, apprenticeship, or other activities as the Secretary may provide.'.
(b) 1-YEAR LEASES- Section 6(l) of the United States Housing Act of 1937 (42 U.S.C. 1437d(l)) is amended--
(1) by redesignating paragraphs (1) through (6) as paragraphs (2) through (7), respectively;
(2) by redesignating paragraph (7) as paragraph (9); and
(3) by inserting before paragraph (2) the following new paragraph:
`(1) have a term of 12 months and shall be automatically renewed for all purposes except for noncompliance with the requirements under section 12(c) (relating to community service requirements); except that nothing in this title shall prevent a resident from seeking timely redress in court for failure to renew based on such noncompliance;'.
SEC. 513. INCOME TARGETING.
(a) IN GENERAL- Section 16 of the United States Housing Act of 1937 (42 U.S.C. 1437n) is amended by striking the section designation and all that follows through the end of subsection (d) and inserting the following:
`SEC. 16. (a) INCOME ELIGIBILITY FOR PUBLIC HOUSING-
`(1) INCOME MIX WITHIN PROJECTS- A public housing agency may establish and utilize income-mix criteria for the selection of residents for dwelling units in public housing projects, subject to the requirements of this section.
`(2) PHA INCOME MIX-
`(A) TARGETING- Except as provided in paragraph (4), of the public housing dwelling units of a public housing agency made available for occupancy in any fiscal year by eligible families, not less than 40 percent shall be occupied by families whose incomes at the time of commencement of occupancy do not exceed 30 percent of the area median income, as determined by the Secretary with adjustments for smaller and larger families.
`(3) PROHIBITION OF CONCENTRATION OF LOW-INCOME FAMILIES-
`(A) PROHIBITION- A public housing agency may not, in complying with the requirements under paragraph (2), concentrate very low-income families (or other families with relatively low incomes) in public housing dwelling units in certain public housing projects or certain buildings within projects. The Secretary shall review the income and occupancy characteristics of the public housing projects and the buildings of such projects of such agencies to ensure compliance with the provisions of this paragraph and paragraph (2).
`(B) DECONCENTRATION-
`(i) IN GENERAL- A public housing agency shall submit with its annual public housing agency plan under section 5A an admissions policy designed to provide for deconcentration of poverty and income-mixing by bringing higher income tenants into lower income projects and lower income tenants into higher income projects. This clause may not be construed to impose or require any specific income or racial quotas for any project or projects.
`(ii) INCENTIVES- In implementing the policy under clause (i), a public housing agency may offer incentives for eligible families having higher incomes to occupy dwelling unit in projects predominantly occupied by eligible families having lower incomes, and provide for occupancy of eligible families having lower incomes in projects predominantly occupied by eligible families having higher incomes.
`(iii) FAMILY CHOICE- Incentives referred to in clause (ii) may be made available by a public housing agency only in a manner that allows for the eligible family to have the sole discretion in determining whether to accept the incentive and an agency may not take any adverse action toward any eligible family for choosing not to accept an incentive and occupancy of a project described in clause (i)(II), Provided, That the skipping of a family on a waiting list to reach another family to implement the policy under clause (i) shall not be considered an adverse action. An agency implementing an admissions policy under this subparagraph shall implement the policy in a manner that does not prevent or interfere with the use of site-based waiting lists authorized under section 6(s).
`(4) FUNGIBILITY WITH TENANT-BASED ASSISTANCE-
`(A) AUTHORITY- Except as provided under subparagraph (D), the number of public housing dwelling units that a public housing agency shall otherwise make available in accordance with paragraph (2)(A) to comply with the percentage requirement under such paragraph for a fiscal year shall be reduced by the credit number for the agency under subparagraph (B).
`(B) CREDIT FOR EXCEEDING TENANT-BASED ASSISTANCE TARGETING REQUIREMENT- Subject to subparagraph (C), the credit number under this subparagraph for a public housing agency for a fiscal year shall be the number by which--
`(i) the aggregate number of qualified families who, in such fiscal year, are initially provided tenant-based assistance under section 8 by the agency; exceeds
`(ii) the number of qualified families that is required for the agency to comply with the percentage requirement under subsection (b)(1) for such fiscal year.
`(C) LIMITATIONS ON CREDIT NUMBER- The credit number under subparagraph (B) for a public housing agency for a fiscal year may not in any case exceed the lesser of--
`(i) the number of dwelling units that is equivalent to 10 percent of the aggregate number of families initially provided tenant-based assistance under section 8 by the agency in such fiscal year; or
`(ii) the number of public housing dwelling units of the agency that--
`(I) are in projects that are located in census tracts having a poverty rate of 30 percent or more; and
`(II) are made available for occupancy during such fiscal year and are actually filled only by families whose incomes at the time of commencement of such occupancy exceed 30 percent of the area median income, as determined by the Secretary with adjustments for smaller and larger families.
`(D) FUNGIBILITY FLOOR- Notwithstanding any authority under subparagraph (A), of the public housing dwelling units of a public housing agency made available for occupancy in any fiscal year by eligible families, not less than 30 percent shall be occupied by families whose incomes at the time of commencement of occupancy do not exceed 30 percent of the area median income, as determined by the Secretary with adjustments for smaller and larger families.
`(E) QUALIFIED FAMILY- For purposes of this paragraph, the term `qualified family' means a family having an income described in subsection (b)(1).
`(b) INCOME ELIGIBILITY FOR TENANT-BASED SECTION 8 ASSISTANCE-
`(1) IN GENERAL- Of the families initially provided tenant-based assistance under section 8 by a public housing agency in any fiscal year, not less than 75 percent shall be families whose incomes do not exceed 30 percent of the area median income, as determined by the Secretary with adjustments for smaller and larger families; except that the Secretary may establish income ceilings higher or lower than 30 percent of the area median income on the basis of the Secretary's findings that such variations are necessary because of unusually high or low family incomes.
`(2) JURISDICTIONS SERVED BY MULTIPLE PHA'S- In the case of any 2 or more public housing agencies that administer tenant-based assistance under section 8 with respect solely to identical geographical areas, such agencies shall be treated as a single public housing agency for purposes of paragraph (1).
`(c) INCOME ELIGIBILITY FOR PROJECT-BASED SECTION 8 ASSISTANCE-
`(1) PRE-1981 ACT PROJECTS- Not more than 25 percent of the dwelling units that were available for occupancy under section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will be leased on or after such effective date shall be available for leasing by low-income families other than very low-income families.
`(2) POST-1981 ACT PROJECTS- Not more than 15 percent of the dwelling units which become available for occupancy under section 8 housing assistance payments contracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by low-income families other than very low-income families.
`(3) TARGETING- For each project assisted under a contract for project-based assistance, of the dwelling units that become available for occupancy in any fiscal year that are assisted under the contract, not less than 40 percent
`(4) PROHIBITION OF SKIPPING- In developing admission procedures implementing paragraphs (1), (2), and (3), the Secretary shall prohibit project owners from selecting families for residence in an order different from the order on the waiting list for the purpose of selecting relatively higher income families for residence. Nothing in this paragraph or this subsection may be construed to prevent an owner of housing assisted under a contract for project-based assistance from establishing a preference for occupancy in such housing for families containing a member who is employed.
`(5) EXCEPTION- The limitations established in paragraphs (1), (2), and (3) shall not apply to dwelling units made available under project-based contracts under section 8 for the purpose of preventing displacement, or ameliorating the effects of displacement.
`(6) DEFINITION- For purposes of this subsection, the term `project-based assistance' means assistance under any of the following programs:
`(A) The new construction or substantial rehabilitation program under section 8(b)(2) (as in effect before October 1, 1983).
`(B) The property disposition program under section 8(b) (as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998).
`(C) The loan management set-aside program under subsections (b) and (v) of section 8.
`(D) The project-based certificate program under section 8(d)(2).
`(E) The moderate rehabilitation program under section 8(e)(2) (as in effect before October 1, 1991).
`(F) The low-income housing preservation program under Low-Income Housing Preservation and Resident Homeownership Act of 1990 or the provisions of the Emergency Low Income Housing Preservation Act of 1987 (as in effect before November 28, 1990).
`(G) Section 8 (as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998), following conversion from assistance under section 101 of the Housing and Urban Development Act of 1965 or section 236(f)(2) of the National Housing Act.
`(d) ESTABLISHMENT OF DIFFERENT STANDARDS- Notwithstanding subsection (a)(2) or (b)(1), if approved by the Secretary, a public housing agency may for good cause establish and implement, in accordance with the public housing agency plan, an admission standard other than the standard under such subsection.'.
(b) EFFECTIVE DATE- This section shall take effect on, and the amendments under this section are made on, and shall apply beginning upon, the date of the enactment of this Act.
SEC. 514. REPEAL OF FEDERAL PREFERENCES.
(a) PUBLIC HOUSING-
(1) IN GENERAL- Subparagraph (A) of section 6(c)(4) of the United States Housing Act of 1937 (42 U.S.C. 1437d)(c)(4)) is amended to read as follows:
`(A) making dwelling units in public housing available for occupancy, which shall provide that the public housing agency may establish a system for making dwelling units available that provides preference for such occupancy to families having certain characteristics; each system of preferences established pursuant to this subparagraph shall be based upon local housing needs and priorities, as determined by the public housing agency using generally accepted data sources, including any information obtained pursuant to an opportunity for public comment as provided under section 5A(f) and under the requirements applicable to the comprehensive housing affordability strategy for the relevant jurisdiction;'.
(2) CONFORMING AMENDMENTS-
(A) PUBLIC HOUSING ASSISTANCE FOR FOSTER CARE CHILDREN- Section 6(o) of the United States Housing Act of 1937 (42 U.S.C. 1437d(o)) is amended by striking `Subject' and all that follows through `, in' and inserting `In'.
(B) YOUTHBUILD PROGRAM- Section 455(a)(2)(D)(iii) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899d(a)(2)(D)(iii) is amended striking `section 6(c)(4)(A)' and inserting `any system of preferences established under section 6(c)(1)'.
(b) SECTION 8 EXISTING AND MODERATE REHABILITATION-
(1) IN GENERAL- Subparagraph (A) of section 8(d)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows:
`(A) the selection of tenants shall be the function of the owner, subject to the annual contributions contract between the Secretary and the agency, except that with respect to the certificate and moderate rehabilitation programs only, for the purpose of selecting families to be assisted, the public housing agency may establish local preferences, consistent with the public housing agency plan submitted under section 5A by the public housing agency;'.
(2) CONFORMING AMENDMENTS-
(A) LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP ACT OF 1990- The second sentence of section 226(b)(6)(B) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B)) is amended by striking `The requirement for giving preferences to certain categories of eligible families under sections 8(d)(1)(A) and 8(o)(3)' and inserting `Any system for preferences established under section 8(d)(1)(A) or 8(o)(6)(A)'.
(B) HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992- Section 655 of the Housing and Community Development Act of 1992 (42 U.S.C. 13615) is amended by striking `shall be given' and all that follows through the period at the end and inserting the following: `shall be given to disabled families according to any preferences established under any system established under section 8(d)(1)(A) by the public housing agency.'.
(C) MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS- Section 203(g)(2) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1701z-11(g)(2)) is amended by striking `the preferences for assistance under sections 6(c)(4)(A)(i), 8(d)(1)(A)(i), and 8(o)(3)(B)' and inserting `any system of preferences established pursuant to section 6(c)(4)(A), 8(d)(1)(A), or 8(o)(6)(A)'.
(D) OTHER REFERENCES- Subparagraph (D) of section 402(d)(6) of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437d note) is hereby repealed.
(c) SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION-
(1) PERMANENT REPEAL- Subsection (c) of section 545 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f note) is hereby repealed.
(2) PROHIBITION- Notwithstanding any other provision of law (including subsection (f) of this section), section 402(d)(4)(B) of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note) shall apply to fiscal year 1999 and thereafter.
(d) RENT SUPPLEMENTS- Subsection (k) of section 1010 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is hereby repealed.
(e) SENSE OF CONGRESS REGARDING PREFERENCE FOR ASSISTANCE FOR VICTIMS OF DOMESTIC VIOLENCE- It is the sense of Congress that, each public housing agency involved in the selection of eligible families for assistance under the United States Housing Act of 1937 (including residency in public housing and tenant-based assistance under section 8 of such Act) should, consistent with the public housing agency plan of the agency, consider preferences for individuals who are victims of domestic violence.
(f) TERMINATION OF TEMPORARY PROVISIONS- Section 402 of The Balanced Budget Downpayment Act, I, and the amendments made by such section shall cease to be effective on the date of the enactment of this Act. Notwithstanding the inclusion in this Act of any provision extending the effectiveness of such section or such amendments, such provision included in this Act shall not take effect.
(g) APPLICABILITY- This section shall take effect on, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act.
SEC. 515. JOINT VENTURES AND CONSORTIA OF PUBLIC HOUSING AGENCIES; REPEAL OF ENERGY CONSERVATION PROVISIONS.
Section 13 of the United States Housing Act of 1937 (42 U.S.C. 1437k) is amended to read as follows:
`SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDIARIES OF PUBLIC HOUSING AGENCIES.
`(a) CONSORTIA-
`(1) IN GENERAL- Any 2 or more public housing agencies may participate in a consortium for the purpose of administering any or all of the housing programs of those public housing agencies in accordance with this section.
`(2) EFFECT- With respect to any consortium described in paragraph (1)--
`(A) any assistance made available under this title to each of the public housing agencies participating in the consortium shall be paid to the consortium; and
`(B) all planning and reporting requirements imposed upon each public housing agency participating in the consortium with respect to the programs operated by the consortium shall be consolidated.
`(3) RESTRICTIONS-
`(A) AGREEMENT- Each consortium described in paragraph (1) shall be formed and operated in accordance with a consortium agreement, and shall be subject to the requirements of a joint public housing agency plan, which shall be submitted by the consortium in accordance with section 5A.
`(B) MINIMUM REQUIREMENTS- The Secretary shall specify minimum requirements relating to the formation and operation of consortia and the minimum contents of consortium agreements under this paragraph.
`(b) JOINT VENTURES-
`(1) IN GENERAL- Notwithstanding any other provision of law, a public housing agency, in accordance with the public housing agency plan, may--
`(A) form and operate wholly owned or controlled subsidiaries (which may be nonprofit corporations) and other affiliates, any of which may be directed, managed, or controlled by the same persons who constitute the board of directors or similar governing body of the public housing agency, or who serve as employees or staff of the public housing agency; or
`(B) enter into joint ventures, partnerships, or other business arrangements with, or contract with, any person, organization, entity, or governmental unit--
`(i) with respect to the administration of the programs of the public housing agency, including any program that is subject to this title; or
`(ii) for the purpose of providing or arranging for the provision of supportive or social services.
`(2) USE OF AND TREATMENT INCOME- Any income generated under paragraph (1)--
`(A) shall be used for low-income housing or to benefit the residents assisted by the public housing agency; and
`(B) shall not result in any decrease in any amount provided to the public housing agency under this title, except as otherwise provided under the formulas established under section 9(d)(2) and 9(e)(2).
`(3) AUDITS- The Comptroller General of the United States, the Secretary, or the Inspector General of the Department of Housing and Urban Development may conduct an audit of any activity undertaken under paragraph (1) at any time.'.
SEC. 516. PUBLIC HOUSING AGENCY MORTGAGES AND SECURITY INTERESTS.
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:
`SEC. 30. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.
`(a) GENERAL AUTHORIZATION- The Secretary may, upon such terms and conditions as the Secretary may prescribe, authorize a public housing agency to mortgage or otherwise grant a security interest in any public housing project or other property of the public housing agency.
`(b) TERMS AND CONDITIONS- In making any authorization under subsection (a), the Secretary may consider--
`(1) the ability of the public housing agency to use the proceeds of the mortgage or security interest for low-income housing uses;
`(2) the ability of the public housing agency to make payments on the mortgage or security interest; and
`(3) such other criteria as the Secretary may specify.
`(c) NO FEDERAL LIABILITY- No action taken under this section shall result in any liability to the Federal Government.'.
SEC. 517. MENTAL HEALTH ACTION PLAN.
The Secretary of Housing and Urban Development, in consultation with the Secretary of Health and Human Services, the Secretary of Labor, and appropriate State and local officials and representatives, shall--
(1) develop an action plan and list of recommendations for the improvement of means of providing severe mental illness treatment to families and individuals receiving housing assistance under the United States Housing Act of 1937, including public housing residents, residents of multifamily housing assisted with project-based assistance under section 8 of such Act, and recipients of tenant-based assistance under such section; and
(2) develop and disseminate a list of current practices among public housing agencies and owners of assisted housing that serve to benefit persons in need of mental health care.'.
Subtitle B--Public Housing
PART 1--CAPITAL AND OPERATING ASSISTANCE
SEC. 518. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.
(a) REPEALS-
(1) IN GENERAL- Section 5 of the United States Housing Act of 1937 (42 U.S.C. 1437c) is amended--
(A) by striking subsections (h) through (k); and
(B) by redesignating subsection (l), as added by the preceding provisions of this Act, as subsection (i).
(2) CONFORMING AMENDMENTS- The United States Housing Act of 1937 is amended--
(A) in section 21(d) (42 U.S.C. 1437s(d)), by striking `section 5(h) or'; and
(C) in section 307 (42 U.S.C. 1437aaa-6), by striking `section 5(h) and'.
(b) LOCAL NOTIFICATION- Section 5(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437c(e)(2)) is amended by inserting before the period at the end the following: `; the Secretary shall require that each such agreement shall provide that, notwithstanding any order, judgment, or decree of any court (including any settlement order), before making any amounts that are provided pursuant to any contract for contributions under this title available for use for the development of any housing or other property not previously used as public housing, the public housing agency shall (A) notify the chief executive officer (or other appropriate official) of the unit of general local government in which the public housing for which such amounts are to be so used is located (or to be located) of such use, and (B) pursuant to the request of such unit of general local government, provide such information as may reasonably be requested by such unit of general local government regarding the public housing to be so assisted (except to the extent otherwise prohibited by law)'.
SEC. 519. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) IN GENERAL- Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) is amended to read as follows:
`SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
`(a) MERGER INTO CAPITAL FUND- Except as otherwise provided in the Quality Housing and Work Responsibility Act of 1998, any assistance made available for public housing under section 14 of this Act before October 1, 1999, shall be merged into the Capital Fund established under subsection (d).
`(b) MERGER INTO OPERATING FUND- Except as otherwise provided in the Quality Housing and Work Responsibility Act of 1998, any assistance made available for public housing under section 9 of this Act before October 1, 1999, shall be merged into the Operating Fund established under subsection (e).
`(c) ALLOCATION AMOUNT-
`(1) IN GENERAL- For fiscal year 2000 and each fiscal year thereafter, the Secretary shall allocate amounts in the Capital Fund and Operating Funds for assistance for public housing agencies eligible for such assistance. The Secretary shall determine the amount of the allocation for each eligible agency, which shall be, for any fiscal year beginning after the effective date of the formulas described in subsections (d)(2) and (e)(2)--
`(A) for assistance from the Capital Fund, the amount determined for the agency under the formula under subsection (d)(2); and
`(B) for assistance from the Operating Fund, the amount determined for the agency under the formula under subsection (e)(2).
`(2) FUNDING- There are authorized to be appropriated for assistance for public housing agencies under this section the following amounts:
`(A) CAPITAL FUND- For allocations of assistance from the Capital Fund, $3,000,000,000 for fiscal year 1999, and such sums as may be necessary for fiscal years 2000, 2001, 2002, and 2003.
`(B) OPERATING FUND- For allocations of assistance from the Operating Fund, $2,900,000,000 for fiscal year 1999, and such sums as may be necessary for each of fiscal years 2000, 2001, 2002, and 2003.
`(d) CAPITAL FUND-
`(1) IN GENERAL- The Secretary shall establish a Capital Fund for the purpose of making assistance available to public housing agencies to carry out capital and management activities, including--
`(A) the development, financing, and modernization of public housing projects, including the redesign, reconstruction, and reconfiguration of public housing sites and buildings (including accessibility improvements) and the development of mixed-finance projects;
`(B) vacancy reduction;
`(C) addressing deferred maintenance needs and the replacement of obsolete utility systems and dwelling equipment;
`(D) planned code compliance;
`(E) management improvements;
`(F) demolition and replacement;
`(G) resident relocation;
`(H) capital expenditures to facilitate programs to improve the empowerment and economic self-sufficiency of public housing residents and to improve resident participation;
`(I) capital expenditures to improve the security and safety of residents; and
`(J) homeownership activities, including programs under section 32.
`(2) FORMULA- The Secretary shall develop a formula for determining the amount of assistance provided to public housing agencies from the Capital Fund for a fiscal year, which shall include a mechanism to reward performance. The formula may take into account such factors as--
`(A) the number of public housing dwelling units owned, assisted, or operated by the public housing agency, the characteristics and locations of the projects, and the characteristics of the families served and to be served (including the incomes of the families);
`(B) the need of the public housing agency to carry out rehabilitation and modernization activities, replacement housing, and reconstruction, construction, and demolition activities related to public housing dwelling units owned, assisted, or operated by the public housing agency, including backlog and projected future needs of the agency;
`(C) the cost of constructing and rehabilitating property in the area;
`(D) the need of the public housing agency to carry out activities that provide a safe and secure environment in public housing units owned, assisted, or operated by the public housing agency;
`(E) any record by the public housing agency of exemplary performance in the operation of public housing, as indicated by the system of performance indicators established pursuant to section 6(j); and
`(F) any other factors that the Secretary determines to be appropriate.
`(3) CONDITIONS ON USE FOR DEVELOPMENT AND MODERNIZATION-
`(A) DEVELOPMENT- Except as otherwise provided in this Act, any public housing developed using amounts provided under this subsection, or under section 14 as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, shall be operated under the terms and conditions applicable to public housing during the 40-year period that begins on the date on which the project (or stage of the project) becomes available for occupancy.
`(B) MODERNIZATION- Except as otherwise provided in this Act, any public housing or portion thereof that is modernized using amounts provided under this subsection or under section 14 (as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998) shall be maintained and operated under the terms and conditions applicable to public housing during the 20-year period that begins on the latest date on which modernization is completed.
`(C) APPLICABILITY OF LATEST EXPIRATION DATE- Public housing subject to this paragraph or to any other provision of law mandating the operation of the housing as public housing or under the terms and conditions applicable to public housing for a specified length of time, shall be maintained and operated as required until the latest such expiration date.
`(e) OPERATING FUND-
`(1) IN GENERAL- The Secretary shall establish an Operating Fund for the purpose of making assistance available to public housing agencies for the operation and management of public housing, including--
`(A) procedures and systems to maintain and ensure the efficient management and operation of public housing units (including amounts sufficient to pay for the reasonable costs of review by an independent auditor of the documentation or other information maintained pursuant to section 6(j)(6) by a public housing agency or resident management corporation to substantiate the performance of that agency or corporation);
`(B) activities to ensure a program of routine preventative maintenance;
`(C) anticrime and antidrug activities, including the costs of providing adequate security for public housing residents, including above-baseline police service agreements;
`(D) activities related to the provision of services, including service coordinators for elderly persons or persons with disabilities;
`(E) activities to provide for management and participation in the management and policy making of public housing by public housing residents;
`(F) the costs of insurance;
`(G) the energy costs associated with public housing units, with an emphasis on energy conservation;
`(H) the costs of administering a public housing work program under section 12, including the costs of any related insurance needs;
`(I) the costs of repaying, together with rent contributions, debt incurred to finance the rehabilitation and development of public housing units, which shall be subject to such reasonable requirements as the Secretary may establish; and
`(J) the costs associated with the operation and management of mixed finance projects, to the extent appropriate.
`(2) FORMULA-
`(A) IN GENERAL- The Secretary shall establish a formula for determining the amount of assistance provided to public housing agencies from the Operating Fund for a fiscal year. The formula may take into account--
`(i) standards for the costs of operating and reasonable projections of income, taking into account the characteristics and locations of the public housing projects and characteristics of the families served and to be served (including the incomes of the families), or the costs of providing comparable services as determined in accordance with criteria or a formula representing the operations of a prototype well-managed public housing project;
`(ii) the number of public housing dwelling units owned, assisted, or operated by the public housing agency;
`(iii) the number of public housing dwelling units owned, assisted, or operated by the public housing agency that are chronically vacant and the amount of assistance appropriate for those units;
`(iv) to the extent quantifiable, the extent to which the public housing agency provides programs and activities designed to promote the economic self-sufficiency and management skills of public housing residents;
`(v) the need of the public housing agency to carry out anti-crime and anti-drug activities, including providing adequate security for public housing residents;
`(vi) the amount of public housing rental income foregone by the public housing agency as a result of escrow savings accounts under section 23(d)(2) for families participating in a family self-sufficiency program of the agency under such section 23; and
`(vii) any other factors that the Secretary determines to be appropriate.
`(B) INCENTIVE TO INCREASE CERTAIN RENTAL INCOME- The formula shall provide an incentive to encourage public housing agencies to facilitate increases in earned income by families in occupancy. Any such incentive shall provide that the agency shall benefit from increases in such rental income and that such amounts accruing to the agency pursuant to such benefit may be used only for low-income housing or to benefit the residents of the public housing agency.
`(C) TREATMENT OF SAVINGS- The treatment of utility and waste management costs under the formula shall provide that a public housing agency shall receive the full financial benefit from any reduction in the cost of utilities or waste management resulting from any contract with a third party to undertake energy conservation improvements in one or more of its public housing projects.
`(3) CONDITION ON USE- No portion of any public housing project operated using amounts provided under this subsection, or under this section as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, may be disposed of before the expiration of the 10-year period beginning upon the conclusion of the fiscal year for which such amounts were provided, except as otherwise provided in this Act.
`(f) NEGOTIATED RULEMAKING PROCEDURE- The formulas under subsections (d)(2) and (e)(2) shall be developed according to procedures for issuance of regulations under the negotiated rulemaking procedure under subchapter III of chapter 5 of title 5, United States Code.
`(g) LIMITATIONS ON USE OF FUNDS-
`(1) FLEXIBILITY FOR CAPITAL FUND AMOUNTS- Of any amounts appropriated for fiscal year 2000 or any fiscal year thereafter that are allocated for fiscal year 2000 or any fiscal year thereafter from the Capital Fund for any public housing agency, the agency may use not more than 20 percent for activities that are eligible under subsection (e) for assistance with amounts from the Operating Fund, but only if the public housing agency plan for the agency provides for such use.
`(2) FULL FLEXIBILITY FOR SMALL PHA'S- Of any amounts allocated for any fiscal year for any public housing agency that owns or operates less than 250 public housing dwelling units, is not designated pursuant to section 6(j)(2) as a troubled public housing agency, and (in the determination of the Secretary) is operating and maintaining its public housing in a safe, clean, and healthy condition, the agency may use any such amounts for any eligible activities under subsections (d)(1) and (e)(1), regardless of the fund from which the amounts were allocated and provided. This subsection shall take effect on the date of the enactment of the Quality Housing and Work Responsibility Act of 1998.
`(3) LIMITATION ON NEW CONSTRUCTION-
`(A) IN GENERAL- Except as provided in subparagraphs (B) and (C), a public housing agency may not use any of the amounts allocated for the agency from the Capital Fund or Operating Fund for the purpose of constructing any public housing unit, if such construction would result in a net increase from the number of public housing units owned, assisted, or operated by the public housing agency on October 1, 1999, including any public housing units demolished as part of any revitalization effort.
`(B) EXCEPTION REGARDING USE OF ASSISTANCE- A public housing agency may use amounts allocated for the agency from the Capital Fund or Operating Fund for the construction and operation of housing units that are available and affordable to low-income families in excess of the limitations on new construction set forth in subparagraph (A), but the formulas established under subsections (d)(2) and (e)(2) shall not provide additional funding for the specific purpose of allowing construction and operation of housing in excess of those limitations (except to the extent provided in subparagraph (C)).
`(C) EXCEPTION REGARDING FORMULAS- Subject to reasonable limitations set by the Secretary, the formulas established under subsections (d)(2) and (e)(2) may provide additional funding for the operation and modernization costs (but not the initial development costs) of housing in excess of amounts otherwise permitted under this paragraph, and such amounts may be so used, if--
`(i) such units are part of a mixed-finance project or otherwise leverage significant additional private or public investment; and
`(ii) the estimated cost of the useful life of the project is less than the estimated cost of providing tenant-based assistance under section 8(o) for the same period of time.
`(h) TECHNICAL ASSISTANCE- To the extent amounts are provided in advance in appropriations Acts, the Secretary may make grants or enter into contracts or cooperative agreements in accordance with this subsection for purposes of providing, either directly or indirectly--
`(1) technical assistance to public housing agencies, resident councils, resident organizations, and resident management corporations, including assistance relating to monitoring and inspections;
`(2) training for public housing agency employees and residents;
`(3) data collection and analysis;
`(4) training, technical assistance, and education to public housing agencies that are--
`(A) at risk of being designated as troubled under section 6(j), to assist such agencies from being so designated; and
`(B) designated as troubled under section 6(j), to assist such agencies in achieving the removal of that designation;
`(5) contract expertise;
`(6) training and technical assistance to assist in the oversight and management of public housing or tenant-based assistance; and
`(7) clearinghouse services in furtherance of the goals and activities of this subsection.
As used in this subsection, the terms `training' and `technical assistance' shall include training or technical assistance and the cost of necessary travel for participants in such training or technical assistance, by or to officials and employees of the Department and of public housing agencies, and to residents and to other eligible grantees.
`(i) ELIGIBILITY OF UNITS ACQUIRED FROM PROCEEDS OF SALES UNDER DEMOLITION OR DISPOSITION PLAN- If a public housing agency uses proceeds from the sale of units under a homeownership program in accordance with section 32 to acquire additional units to be sold to low-income families, the additional units shall be counted as public housing for purposes of determining the amount of the allocation to the agency under this section until sale by the agency, but in no case longer than 5 years.
`(j) PENALTY FOR SLOW EXPENDITURE OF CAPITAL FUNDS-
`(1) OBLIGATION OF AMOUNTS- Except as provided in paragraph (4) and subject to paragraph (2), a public housing agency shall obligate any assistance received under this section not later than 24 months after, as applicable--
`(A) the date on which the funds become available to the agency for obligation in the case of modernization; or
`(B) the date on which the agency accumulates adequate funds to undertake modernization, substantial rehabilitation, or new construction of units.
`(2) EXTENSION OF TIME PERIOD FOR OBLIGATION- The Secretary--
`(A) may, extend the time period under paragraph (1) for a public housing agency, for such period as the Secretary determines to be necessary, if the Secretary determines that the failure of the agency to obligate assistance in a timely manner is attributable to--
`(i) litigation;
`(ii) obtaining approvals of the Federal Government or a State or local government;
`(iii) complying with environmental assessment and abatement requirements;
`(iv) relocating residents;
`(v) an event beyond the control of the public housing agency; or
`(vi) any other reason established by the Secretary by notice published in the Federal Register;
`(B) shall disregard the requirements of paragraph (1) with respect to any unobligated amounts made available to a public housing agency, to the extent that the total of such amounts does not exceed 10 percent of the original amount made available to the public housing agency; and
`(C) may, with the prior approval of the Secretary, extend the time period under paragraph (1), for an additional period not to exceed 12 months, based on--
`(i) the size of the public housing agency;
`(ii) the complexity of capital program of the public housing agency;
`(iii) any limitation on the ability of the public housing agency to obligate the amounts allocated for the agency from the Capital Fund in a timely manner as a result of State or local law; or
`(iv) such other factors as the Secretary determines to be relevant.
`(3) EFFECT OF FAILURE TO COMPLY-
`(A) PROHIBITION OF NEW ASSISTANCE- A public housing agency shall not be awarded assistance under this section for any month during any fiscal year in which the public housing agency has funds unobligated in violation of paragraph (1) or (2).
`(B) WITHHOLDING OF ASSISTANCE- During any fiscal year described in subparagraph (A), the Secretary shall withhold all assistance that would otherwise be provided to the public housing agency. If the public housing agency cures its failure to comply during the year, it shall be provided with the share attributable to the months remaining in the year.
`(C) REDISTRIBUTION- The total amount of any funds not provided public housing agencies by operation of this paragraph shall be allocated for agencies determined under section 6(j) to be high-performing.
`(4) EXCEPTION TO OBLIGATION REQUIREMENTS-
`(A) IN GENERAL- Subject to subparagraph (B), if the Secretary has consented, before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, to an obligation period for any agency longer than provided under paragraph (1), a public housing agency that obligates its funds before the expiration of that period shall not be considered to be in violation of paragraph (1).
`(B) PRIOR FISCAL YEARS- Notwithstanding subparagraph (A), any funds appropriated to a public housing agency for fiscal year 1997 or prior fiscal years shall be fully obligated by the public housing agency not later than September 30, 1999.
`(5) EXPENDITURE OF AMOUNTS-
`(A) IN GENERAL- A public housing agency shall spend any assistance received under this section not later than 4 years (plus t