Home > 105th Congressional Bills > S. 462 (rs) To reform and consolidate the public and assisted housing programs of the United States, and to redirect primary responsibility for these programs from the Federal Government to States and localities, and for other purposes. ...

S. 462 (rs) To reform and consolidate the public and assisted housing programs of the United States, and to redirect primary responsibility for these programs from the Federal Government to States and localities, and for other purposes. ...


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105th CONGRESS
  2d Session
                                 S. 462


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 21, 1998

      Referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 AN ACT


 
 To reform and consolidate the public and assisted housing programs of 
  the United States, and to redirect primary responsibility for these 
programs from the Federal Government to States and localities, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Public Housing 
Reform and Responsibility Act of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Effective date.
Sec. 5. Proposed regulations; technical recommendations.
Sec. 6. Elimination of obsolete documents.
Sec. 7. Annual reports.
                        TITLE I--PUBLIC HOUSING

Sec. 101. Declaration of policy.
Sec. 102. Membership on board of directors.
Sec. 103. Rental payments.
Sec. 104. Definitions.
Sec. 105. Contributions for lower income housing projects.
Sec. 106. Public housing agency plan.
Sec. 107. Contract provisions and requirements.
Sec. 108. Expansion of powers for dealing with public housing agencies 
                            in substantial default.
Sec. 109. Public housing site-based waiting lists.
Sec. 110. Public housing capital and operating funds.
Sec. 111. Community service and self-sufficiency.
Sec. 112. Repeal of energy conservation; consortia and joint ventures.
Sec. 113. Repeal of modernization fund.
Sec. 114. Eligibility for public and assisted housing.
Sec. 115. Demolition and disposition of public housing.
Sec. 116. Repeal of family investment centers; voucher system for 
                            public housing.
Sec. 117. Repeal of family self-sufficiency; homeownership 
                            opportunities.
Sec. 118. Revitalizing severely distressed public housing.
Sec. 119. Mixed-finance and mixed-ownership projects.
Sec. 120. Conversion of distressed public housing to tenant-based 
                            assistance.
Sec. 121. Public housing mortgages and security interests.
Sec. 122. Linking services to public housing residents.
Sec. 123. Prohibition on use of amounts.
Sec. 124. Pet ownership.
Sec. 125. City of Indianapolis flexible grant demonstration.
                 TITLE II--SECTION 8 RENTAL ASSISTANCE

Sec. 201. Merger of the certificate and voucher programs.
Sec. 202. Repeal of Federal preferences.
Sec. 203. Portability.
Sec. 204. Leasing to voucher holders.
Sec. 205. Homeownership option.
Sec. 206. Law enforcement and security personnel in public housing.
Sec. 207. Technical and conforming amendments.
Sec. 208. Implementation.
Sec. 209. Definition.
Sec. 210. Effective date.
Sec. 211. Recapture and reuse of annual contribution contract project 
                            reserves under the tenant-based assistance 
                            program.
     TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING

Sec. 301. Screening of applicants.
Sec. 302. Termination of tenancy and assistance.
Sec. 303. Lease requirements.
Sec. 304. Availability of criminal records for public housing resident 
                            screening and eviction.
Sec. 305. Definitions.
Sec. 306. Conforming amendments.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Public housing flexibility in the CHAS.
Sec. 402. Determination of income limits.
Sec. 403. Demolition of public housing.
Sec. 404. National Commission on Housing Assistance Program Costs.
Sec. 405. Technical correction of public housing agency opt-out 
                            authority.
Sec. 406. Review of drug elimination program contracts.
Sec. 407. Treatment of public housing agency repayment agreement.
Sec. 408. Ceiling rents for certain section 8 properties.
Sec. 409. Sense of Congress.
Sec. 410. Other repeals.
Sec. 411. Guarantee of loans for acquisition of property.
Sec. 412. Prohibition on use of assistance for employment relocation 
                            activities.
Sec. 413. Use of HOME funds for public housing modernization.
Sec. 414. Report on single family and multifamily homes.

SEC. 2. 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 and 
        operated by public housing agencies, an asset in which the 
        Federal Government has invested approximately $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 
        aggravates the problem and places excessive administrative 
        burdens on public housing agencies;
            (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 both public 
                housing residents and localities; and
                    (D) rewards employment and economic self-
                sufficiency of public housing residents; and
            (6) voucher and certificate programs under section 8 of the 
        United States Housing Act of 1937 are successful for 
        approximately 80 percent of applicants, and a consolidation of 
        the voucher and certificate programs into a single, market-
        driven program will assist in making section 8 tenant-based 
        assistance more successful in assisting low-income families in 
        obtaining affordable housing and will increase housing choice 
        for low-income families.
    (b) Purposes.--The purposes of this Act are--
            (1) to consolidate the various programs and activities 
        under the public housing programs administered by the Secretary 
        in a manner designed to reduce Federal overregulation;
            (2) to redirect the responsibility for a consolidated 
        program to States, localities, public housing agencies, and 
        public housing residents;
            (3) to require Federal action to overcome problems of 
        public housing agencies with severe management deficiencies; 
        and
            (4) to consolidate and streamline tenant-based assistance 
        programs.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Public housing agency.--The term ``public housing 
        agency'' has the same meaning as in section 3 of the United 
        States Housing Act of 1937.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 4. EFFECTIVE DATE.

    (a) In General.--Except with respect to any provision or amendment 
identified by the Secretary under subsection (b) and as otherwise 
specifically provided in this Act or the amendments made by this Act, 
this Act and the amendments made by this Act shall take effect on the 
date of enactment of this Act.
    (b) Exception.--
            (1) Determination.--Not later than 2 months after the date 
        of enactment of this Act, the Secretary shall identify any 
        provision of this Act, or any amendment made by this Act, the 
        implementation of which, in the determination of the 
        Secretary--
                    (A) requires a substantial exercise of discretion, 
                such that there exists a significant risk of 
                litigation;
                    (B) requires a need for uniform interpretation; or
                    (C) is otherwise problematic, such that immediate 
                implementation is inappropriate.
            (2) Notice.--
                    (A) In general.--Notwithstanding any other 
                provision of law, not later than 6 months after the 
                date on which the Secretary makes any identification 
                under paragraph (1), the Secretary shall implement each 
                provision or amendment so identified by notice 
                published in the Federal Register, which notice shall--
                            (i) include such requirements as may be 
                        necessary to implement the provision or 
                        amendment; and
                            (ii) invite public comments on those 
                        requirements.
                    (B) Effective date of notice.--The notice published 
                under paragraph (2) may, in the discretion of the 
                Secretary, take effect upon publication.
            (3) Final regulations.--Not later than 12 months after the 
        date of enactment of this Act, the Secretary shall issue such 
        final regulations as may be necessary, taking into account any 
        comments received under paragraph (2)(A)(ii), to implement each 
        provision or amendment identified under paragraph (1).

SEC. 5. PROPOSED REGULATIONS; TECHNICAL RECOMMENDATIONS.

    (a) Proposed Regulations.--Not later than 9 months after the date 
of enactment of this Act, the Secretary shall submit to Congress 
proposed regulations that the Secretary determines are necessary to 
carry out the United States Housing Act of 1937, as amended by this 
Act.
    (b) Technical Recommendations.--Not later than 9 months after the 
date of 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 Act and the amendments made by this 
Act.

SEC. 6. ELIMINATION OF OBSOLETE DOCUMENTS.

    Effective 1 year after the date of enactment of this Act, no rule, 
regulation, or order (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 enactment of this Act may be enforced by the 
Secretary.

SEC. 7. ANNUAL REPORTS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary shall submit a report to Congress 
on--
            (1) the impact of the amendments made by this Act on--
                    (A) the demographics of public housing residents 
                and families receiving tenant-based assistance under 
                the United States Housing Act of 1937; and
                    (B) the economic viability of public housing 
                agencies; and
            (2) the effectiveness of the rent policies established by 
        this Act and the amendments made by this Act on the employment 
        status and earned income of public housing residents.

                        TITLE I--PUBLIC HOUSING

SEC. 101. DECLARATION OF POLICY.

    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.

    ``It is the policy of the United States to promote the general 
welfare of the Nation by employing the funds and credit of the Nation, 
as provided in this title--
            ``(1) 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;
            ``(2) to assist States and political subdivisions of States 
        to address the shortage of housing affordable to low-income 
        families; and
            ``(3) 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 both public 
        housing residents and localities.''.

SEC. 102. MEMBERSHIP ON BOARD OF DIRECTORS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended--
            (1) by redesignating the second section designated as 
        section 27 (as added by section 903(b) of Public Law 104-193 
        (110 Stat. 2348)) as section 28; and
            (2) by adding at the end the following:

``SEC. 29. MEMBERSHIP ON BOARD OF DIRECTORS.

    ``(a) Required Membership.--Except as provided in subsection (b), 
the membership of the board of directors of each public housing agency 
shall contain not less than 1 member--
            ``(1) who is a resident who directly receives assistance 
        from the public housing agency; and
            ``(2) who may, if provided for in the public housing agency 
        plan (as developed with appropriate notice and opportunity for 
        comment by the resident advisory board) be elected by the 

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